<PAGE> 1
NATIONS RESERVES
MONEY MARKET FUNDS
ANNUAL REPORT
FOR THE YEAR ENDED
MARCH 31, 2000
Nations Cash Reserves
Nations Money Market Reserves
Nations Treasury Reserves
Nations Government Reserves
Nations Municipal Reserves
Nations California Tax Exempt Reserves
[GRAPHIC: PHOTO COLLAGE WITH KEYBOARD AND WATCH]
[NATIONS FUNDS LOGO]
<PAGE> 2
This Report is submitted for the general information of shareholders of Nations
Funds. This material must be preceded or accompanied by a current Nations Funds
prospectus.
Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of
America N.A., is not a bank, and securities offered by it are not guaranteed by
any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC.
Nations Funds Investment adviser: Banc of America Advisors, Inc.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 3
NATIONS RESERVES MONEY MARKET FUNDS
Dear Shareholder:
We are pleased to present the annual financial report for Nations Reserves money
market funds. This report contains important financial data regarding your
investment for the period ended March 31, 2000. We hope you will take a moment
to review this information.
TRANSITIONING INTO THE NEW MILLENNIUM
The transition into the new millennium coincided with a rapidly expanding U.S.
economy and higher short-term interest rates. Although the economy continued to
show strong growth, it was not accompanied by increases in inflation that are
typical in times of expansion. Individual participants in the economy generally
continued to prosper as jobs were plentiful and real estate and equity markets
reported record highs.
From June 1999 to March 2000, the Federal Open Market Committee engineered five
interest rate increases in .25% increments. These increases brought the Federal
Funds rate from a low of 4.75% to 6.00% at the end of March -- a level designed
to help control our economy's rapid growth and address inflationary concerns.
During this period, the Nations Reserves money market funds were generally able
to take advantage of the steepening yield curve by purchasing longer duration
securities. Our portfolio management teams continuously analyzed the underlying
securities in each portfolio in seeking to ensure that only the highest quality,
top performing securities were selected. This value-added approach enabled the
funds to provide shareholders with the opportunity to maximize their earnings
potential while maintaining principal stability.
LOOKING FORWARD
Growth in early 2000 is continuing on the same pace. We anticipate a further
expansion in economic activity for the balance of the year. Recent volatility in
the equity markets suggests that economic activity might moderate from current
levels. However, household conditions such as wealth, jobs and consumer
confidence are still conducive, in our view, to a period of economic expansion.
It is our belief that the Federal Reserve Board will continue to drive
short-term rates higher in an effort to moderate growth and quell inflationary
risks. Our portfolio management teams will continue to monitor economic
conditions in order to strategically position the portfolios to take advantage
of possible opportunities in the market. Our quantitative and qualitative
approach to managing the funds should help to ensure that each shareholder
enjoys the potential advantages of stable, liquid and competitive yielding
products as interest rates continue to rise.
SERVING YOUR SHORT-TERM INVESTMENT NEEDS
We are committed to providing competitive products and services for your
short-term investment and cash management needs. Nations Reserves money market
funds are managed daily by teams of investment professionals, giving you
convenient access to major sectors of the money markets. Dedicated marketing
efforts consistently focus on new ways to make doing business easier. Our
Nations Reserves' sales teams, intermediaries and client service center are
available to assist you with day-to-day investment information.
We appreciate your business and thank you for choosing Nations Reserves money
market funds to help you with your short-term investment needs.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman of the Board
Nations Reserves
/s/ Robert H. Gordon
Robert H. Gordon
President, Banc of America Advisors, Inc.
March 31, 2000
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH MONEY
MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE,
IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN MONEY MARKET FUNDS.
Sources for economic and statistical data: Banc of America Capital Management,
Inc.
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TABLE OF CONTENTS
<TABLE>
<S> <C>
FINANCIAL STATEMENTS
Statements of net assets 2
Nations Cash Reserves 2
Nations Money Market Reserves 7
Nations Treasury Reserves 10
Nations Government Reserves 12
Nations Municipal Reserves 13
Nations California Tax Exempt Reserves 26
Statements of operations 36
Statements of changes in net assets 38
Statement of cash flows 42
Schedules of capital stock activity 43
Financial highlights 50
Notes to financial statements 62
</TABLE>
<TABLE>
<S> <C>
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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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NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 34.3%
BANK NOTES -- 9.8%
$ 100,000 American Express Centurion Bank
6.310%+ 04/01/00++.............. $ 100,000
Bank One, N.A.
100,000 5.995%+ 04/20/00++................ 99,950
100,000 6.190% 10/16/00................... 99,969
260,000 Chase Manhattan Bank USA, N.A.
6.030%+ 04/25/00++.............. 259,975
200,000 First Union Corporation
6.310%+ 04/03/00++.............. 200,000
First Union National Bank
80,000 6.300%+ 04/03/00++................ 80,000
100,000 6.330%+ 04/03/00++................ 100,000
100,000 6.390%+ 04/03/00++................ 100,000
125,000 6.410%+ 04/03/00++................ 125,000
150,000 6.490%+ 04/03/00++................ 150,000
250,000 6.160%+ 05/16/00++................ 250,000
200,000 6.750% 02/08/01................... 200,000
100,000 6.800% 02/20/01................... 100,000
310,000 Fleet Bank, N.A.
6.040%+ 04/26/00++................ 309,930
53,000 Key Bank, N.A.
5.650% 06/26/00................... 52,992
National City Bank
200,000 6.735%+ 04/04/00++................ 199,952
100,000 6.151%+ 04/29/00++................ 99,961
175,000 6.730% 02/09/01................... 174,929
150,000 Northern Rock plc
6.134%+ 06/14/00++##.............. 150,000
SouthTrust Bank, N.A.
300,000 6.030%+ 04/30/00++................ 299,896
425,000 6.080%+ 05/08/00++................ 424,846
-----------
3,577,400
-----------
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 0.5%
200,000 First Union National Bank
6.750% 03/16/01................... 200,000
-----------
CERTIFICATES OF DEPOSIT -- YANKEE -- 7.7%
150,000 Barclays Bank plc, (New York)
6.680% 02/12/01................... 149,938
Commerzbank AG, (New York)
75,000 5.770% 07/03/00................... 74,993
125,000 6.700% 02/20/01................... 124,947
150,000 6.750% 02/22/01................... 149,936
75,000 6.790% 03/28/01................... 74,972
125,000 Credit Locale de France/Credit
Communal de Belgique, (New York)
5.960% 10/02/00................. 124,841
Deutsche Bank AG, (New York)
100,000 6.150% 10/10/00................... 99,975
275,000 6.700% 02/28/01................... 274,881
250,000 6.700% 03/14/01................... 249,887
National Bank of Canada, (New
York)
50,000 5.150% 04/26/00................... 49,998
100,000 5.570% 06/05/00................... 99,997
40,000 5.730% 06/28/00................... 39,998
75,000 6.035% 09/25/00................... 74,990
175,000 6.750% 02/09/01................... 174,943
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CERTIFICATES OF
DEPOSIT -- YANKEE -- (CONTINUED)
Rabobank Nederland, (New York)
$ 100,000 6.490% 01/29/01................... $ 99,961
125,000 6.600% 02/01/01................... 124,950
100,000 6.750% 02/22/01................... 99,975
100,000 Societe Generale, (New York)
5.921%+ 04/14/00++.............. 99,998
50,000 United Bank of Switzerland, (New
York)
5.510% 06/05/00................. 49,997
Westdeutsche Landesbank,
Girozentrale
250,000 6.050% 05/23/00................... 250,000
350,000 6.100% 06/15/00................... 349,999
-----------
2,839,176
-----------
TIME DEPOSITS -- EURO -- 16.3%
1,400,000 Bank One, N.A.
6.320% 04/03/00................... 1,400,000
175,000 Canadian Imperial Bank of Commerce
6.125% 04/03/00................. 175,000
1,200,000 Chase Manhattan Bank USA, N.A.
6.313% 04/03/00................. 1,200,000
400,000 Credit Agricole
6.313% 04/03/00................. 400,000
1,100,000 Deutsche Bank
6.313% 04/03/00................. 1,100,000
Societe Generale
35,000 6.000% 04/03/00................... 35,000
125,000 6.188% 04/03/00................... 125,000
1,450,000 6.250% 04/03/00................... 1,449,999
75,000 Westdeutsche Landesbank,
Girozentrale
6.250% 04/03/00................. 75,000
-----------
5,959,999
-----------
TOTAL BANK OBLIGATIONS
(Cost $12,576,575).............. 12,576,575
-----------
CORPORATE OBLIGATIONS -- 55.6%
COMMERCIAL PAPER -- 38.8%
Amstel Funding Corporation
70,000 Discount note 06/14/00#......... 69,122
130,000 Discount note 06/15/00#........... 128,348
Aon Corporation
90,000 Discount note 06/14/00............ 88,862
50,112 Discount note 06/21/00............ 49,420
200,000 Asset Securitization Cooperative
Corporation
Discount note 06/27/00#......... 197,100
100,000 Associates Corporation of North
America
Discount note 04/03/00.......... 99,965
85,110 Atlantis One Funding Corporation
Discount note 05/17/00#......... 84,450
200,000 Bear, Stearns and Company, Inc.
Discount note 04/19/00.......... 199,444
Beta Finance, Inc.
50,000 Discount note 06/09/00#........... 49,423
36,000 Discount note 06/12/00#........... 35,567
164,900 Caisse Des Depots et Consignations
Discount note 04/03/00#......... 164,843
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 7
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$ 96,500 CC (USA) Inc.
Discount note 06/30/00#......... $ 95,016
134,000 Citibank Capital Markets Assets
LLC
Discount note 05/22/00#......... 132,870
Corporate Asset Funding Company
100,000 Discount note 05/17/00#........... 99,227
100,000 Discount note 05/24/00#........... 99,108
100,000 Discount note 06/28/00#........... 98,528
Corporate Receivables Corporation
100,000 Discount note 04/03/00#........... 99,965
100,000 Discount note 05/10/00#........... 99,342
200,000 Discount note 05/19/00#........... 198,387
100,000 Discount note 06/28/00#........... 98,528
750,000 Countrywide Home Loans, Inc.
Discount note 04/03/00.......... 749,738
Edison Securitization LLC
99,943 Discount note 05/15/00#........... 99,203
166,478 Discount note 05/18/00#........... 165,185
46,859 Discount note 05/22/00#........... 46,465
150,000 Discount note 06/20/00#........... 147,963
150,000 Discount note 06/21/00#........... 147,938
Falcon Asset Securitization
Corporation
78,350 Discount note 04/26/00#........... 78,026
195,890 Discount note 04/27/00#........... 195,041
168,105 Discount note 05/04/00#........... 167,168
120,965 Discount note 05/08/00#........... 120,212
183,955 Discount note 05/09/00#........... 182,777
70,000 Discount note 05/10/00#........... 69,537
Finova Capital Corporation
127,000 Discount note 05/16/00............ 126,052
80,000 Discount note 05/18/00............ 79,374
Galaxy Funding Corporation
80,000 Discount note 04/13/00#........... 79,842
200,000 Discount note 06/14/00#........... 197,492
100,000 Discount note 06/15/00#........... 98,741
320,000 Discount note 06/28/00#........... 315,166
GE Capital International Funding
Inc.
50,000 Discount note 05/03/00#........... 49,736
200,000 Discount note 05/04/00#........... 198,927
349,608 Discount note 05/08/00#........... 347,431
87,644 Discount note 05/10/00#........... 87,083
300,000 Discount note 05/16/00#........... 297,731
General Electric Capital
Corporation
375,000 Discount note 04/03/00............ 374,869
125,000 Discount note 05/17/00............ 124,058
50,000 Greyhawk Funding LLC
Discount note 06/19/00#......... 49,342
53,025 International Securitization
Corporation
Discount note 05/10/00#......... 52,675
945,000 Koch Industries Inc.
Discount note 04/03/00#......... 944,672
50,000 Lehman Brothers Holdings Inc.
Discount note 05/04/00.......... 49,724
MCI WorldCom, Inc.
75,000 Discount note 05/10/00#........... 74,513
125,000 Discount note 05/15/00#........... 124,084
150,000 Mitsubishi International
Corporation
Discount note 04/03/00.......... 149,947
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
MOAT Funding LLC
$ 75,866 Discount note 04/03/00#........... $ 75,841
125,000 Discount note 04/04/00#........... 124,939
100,000 Discount note 05/04/00#........... 99,453
75,529 Discount note 05/10/00#........... 75,031
50,000 Discount note 06/06/00#........... 49,451
50,000 Discount note 06/07/00#........... 49,442
100,000 Discount note 06/08/00#........... 98,838
400,000 Discount note 06/14/00#........... 394,984
75,000 Discount note 06/15/00#........... 74,059
200,000 Morgan Stanley Dean Witter and
Company
Discount note 06/08/00.......... 197,733
229,000 Moriarty Ltd.
Discount note 06/15/00#......... 226,138
Ness LLC
100,000 Discount note 04/28/00#........... 99,579
80,000 Discount note 06/09/00#........... 79,080
82,056 Park Avenue Receivables
Discount note 05/04/00#......... 81,599
Salomon Smith Barney Holdings Inc.
250,000 Discount note 05/09/00............ 248,401
250,000 Discount note 05/11/00............ 248,317
Sigma Finance, Inc.
103,500 Discount note 05/19/00#........... 102,679
100,000 Discount note 06/20/00#........... 98,640
130,550 Surrey Funding Corporation
Discount note 04/05/00#......... 130,464
139,969 Thames Asset Global Securitization
6.060%+ 04/15/00++#............. 139,968
Tulip Funding Corporation
59,670 Discount note 06/13/00#........... 58,943
95,201 Discount note 06/14/00#........... 94,023
100,000 Discount note 06/28/00#........... 98,497
1,700,000 UBS Finance (Delaware) Inc.
Discount note 04/03/00.......... 1,699,410
Variable Funding Capital
Corporation
281,037 Discount note 04/03/00#........... 280,939
200,000 Discount note 05/10/00#........... 198,687
200,000 Discount note 05/11/00#........... 198,649
Victory Receivables Corporation
48,057 Discount note 05/24/00#........... 47,635
56,694 Discount note 06/14/00#........... 55,983
53,496 Discount note 06/15/00#........... 52,825
49,616 Discount note 06/22/00#........... 48,924
WCP Funding Inc.
50,000 Discount note 05/19/00#........... 49,595
100,000 Discount note 05/24/00#........... 99,108
100,000 Discount note 06/19/00#........... 98,679
50,000 Windmill Funding Corporation
Discount note 06/15/00#......... 49,374
Xerox Corporation
85,000 Discount note 04/03/00............ 84,970
150,000 Discount note 04/03/00............ 149,948
-----------
14,239,052
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 16.8%
Abbey National Treasury Services
plc
$ 20,000 5.050% 04/17/00................... $ 19,999
100,000 5.185% 05/12/00................... 99,993
American Honda Finance Corporation
100,000 5.980%+ 04/10/00++##.............. 99,999
75,000 6.119%+ 06/06/00++##.............. 74,964
25,000 6.120%+ 06/07/00++##.............. 24,988
Bear, Stearns and Company, Inc.
250,000 6.330%+ 04/01/00++................ 250,000
100,000 6.194%+ 04/24/00++................ 100,000
150,000 6.183%+ 04/30/00++................ 150,000
125,000 6.110%+ 05/08/00++................ 125,000
70,000 5.750% 06/28/00................... 70,000
140,000 6.120% 09/07/00................... 140,000
100,000 6.560% 01/11/01................... 100,000
50,000 Credit Suisse First Boston, Inc.
6.300%+ 04/01/00++##............ 49,999
Ford Motor Credit Company
200,000 6.058%+ 05/18/00++................ 199,937
175,000 6.060%+ 06/12/00++................ 174,929
General Electric Capital
Corporation
45,000 6.041%+ 05/03/00++................ 45,000
125,000 6.049%+ 05/12/00++................ 125,000
450,000 6.054%+ 06/14/00++................ 449,723
70,000 5.750% 07/28/00................... 69,993
Goldman Sachs Group, Inc.
200,000 6.160% 05/02/00(++)............... 200,000
150,000 6.090% 05/15/00##(++)............. 150,000
200,000 6.200% 07/06/00##(++)............. 200,000
100,000 6.000% 08/07/00................... 100,000
100,000 6.100% 08/21/00................... 100,000
250,000 6.100% 09/25/00................... 250,000
GTE Corporation
300,000 6.175%+ 06/12/00++................ 299,962
500,000 6.160%+ 06/13/00++................ 499,728
K2 (USA) LLC
52,000 6.825%+ 04/04/00++##.............. 52,000
100,000 5.994%+ 04/15/00++##.............. 100,000
50,000 5.260% 05/08/00##................. 50,000
50,000 5.300% 05/22/00##................. 50,000
Keycorp
40,000 6.240%+ 04/23/00++................ 40,000
100,000 6.165%+ 04/27/00++................ 99,975
Lehman Brothers Holdings Inc.
200,000 6.313%+ 04/24/00++................ 200,000
175,000 6.160%+ 05/22/00++................ 175,000
75,000 6.182% 08/04/00................... 75,000
50,000 6.375% 10/23/00................... 49,999
Links Finance LLC
25,000 6.105%+ 04/22/00++##.............. 25,000
25,000 6.110%+ 05/16/00++##.............. 24,998
25,000 6.290% 10/18/00##................. 25,000
25,000 6.290% 10/19/00##................. 25,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Sigma Finance, Inc.
$ 100,000 6.315%+ 04/01/00++##.............. $ 100,000
100,000 5.960%+ 04/10/00++##.............. 100,000
50,000 5.280% 05/11/00##................. 50,000
125,000 5.440% 05/24/00##................. 125,000
100,000 5.500% 06/02/00##................. 100,000
60,000 5.800% 07/24/00##................. 60,000
150,000 6.870% 03/30/01##................. 149,979
250,000 SMM Trust Series 1999-B
6.150%+ 06/13/00++##(++)........ 250,000
75,000 SMM Trust Series 1999-I
6.110%+ 05/26/00++##(++)........ 75,000
-----------
6,171,165
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $20,410,217).............. 20,410,217
-----------
FUNDING AGREEMENTS -- 1.6%
Allstate Life Insurance Company
25,000 5.974%+ 04/01/00++(++)............ 25,000
25,000 5.974%+ 04/01/00++(++)............ 25,000
75,000 Commonwealth Life Insurance
Company Inc.
6.400%+ 04/01/00++(++).......... 75,000
First Allmerica Financial Life
Insurance Company
50,000 6.349%+ 04/01/00++(++)............ 50,000
50,000 6.186%+ 05/15/00++(++)............ 50,000
50,000 6.480%+ 06/22/00++(++)............ 50,000
25,000 GE Life and Annuity Assurance
Company
5.911%+ 04/07/00++(++).......... 25,000
Jackson National Life Insurance
Company
50,000 6.100%+ 04/01/00++(++)............ 50,000
50,000 6.230%+ 06/14/00++(++)............ 50,000
25,000 Monumental Life Insurance Company
5.950%+ 04/01/00++(++).......... 25,000
150,000 New York Life Insurance Company
6.121%+ 04/07/00++(++).......... 150,000
-----------
TOTAL FUNDING AGREEMENTS
(Cost $575,000)................. 575,000
-----------
MUNICIPAL BONDS AND NOTES -- 0.5%
28,800 Illinois Student Assistance
Commission Revenue, Series
1990B, (GTD STD LNS, First
National Bank of Chicago LOC),
6.120%+ 04/05/00++.............. 28,800
-----------
18,400 Missouri State Economic
Development Export Revenue,
(Biocraft Labs, Inc. Project)
Series 1989, (PNC Bank LOC),
6.200%+ 04/05/00++.............. 18,400
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 140,000 Virginia State Housing Development
Authority Commonwealth Revenue,
Series 1996E,
6.200%+ 04/05/00++.............. $ 140,000
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $187,200)................. 187,200
-----------
REPURCHASE AGREEMENTS -- 8.8%
19,973 Agreement with the Bank of New
York,
6.000% dated 03/31/00 to be
repurchased at $19,983 on
04/03/00 collateralized by:
$20,373 U.S. Treasury Note,
5.375%-6.500% due
11/30/01-02/15/10............... 19,973
250,000 Agreement with J.P. Morgan
Securities Inc., 6.300% dated
03/31/00 to be repurchased at
$250,131 on 04/03/00
collateralized by: $16,997
Tennessee Valley Authority
Strips, 6.000%-8.250% due
05/01/00-04/15/42; $1,205 SLMA
5.785%-6.050% due
09/14/00-04/19/01; $30,556 U.S.
Treasury Strips, Interest Only,
due 07/15/20-01/15/30; $42,852
FNMA,
5.120%-9.050% due 04/10/00-
09/15/09; $2,374 FHLMC,
5.500%-7.120% due 05/15/02-
08/15/12; $161,018 FHLB,
0.000%-9.550% due 04/07/00-
12/07/28........................ 250,000
800,000 Agreement with J.P. Morgan
Securities Inc., 6.320% dated
03/31/00 to be repurchased at
$800,421 on 04/03/00
collateralized by: $110,000
Toronto Dominion Bank, 6.210%
due 07/20/00; $12,000 Svenska
Handelsbanken, 6.390% due
09/22/00; $200,000 Santander
Financial, zero coupon due
07/31/00; $23,000 Natwest Plc,
6.140% due 07/10/00; $26,625
Marsh USA, Inc., zero coupon due
07/19/00; $98,000 International
Nederland US Funding
Corporation, 6.250% due
07/31/00; $120,000 Dexia Finance
Company, zero coupon due
06/29/00; $80,000 Barclays Bank
New York, 6.480% due 09/29/00;
$50,000 Bank of Nova Scotia,
6.430% due 09/28/00; $102,800
Asset Portfolio Funding, zero
coupon due 05/15/00............. 800,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 50,000 Agreement with Lehman Brothers
Inc., 6.250% dated 03/31/00 to
be repurchased at $50,026 on
04/03/00 collateralized by:
$50,996 GNMA II 6.375%-9.000%
due 11/28/24-03/20/27........... $ 50,000
500,000 Agreement with Lehman Brothers
Inc., 6.300% dated 03/31/00 to
be repurchased at $500,263 on
04/03/00 collateralized by:
$43,293 FHLB, 7.750% due
02/22/05; $264,706 FNMA,
5.625%-7.380% due
01/12/01-09/11/06; $201,891
FFCB, 5.400%-5.940% due
05/01/00-10/02/00............... 500,000
300,000 Agreement with Lehman Brothers
Inc., 6.370% dated 03/31/00 to
be repurchased at $300,159 on
04/03/00 collateralized by:
$141,673 U.S. Treasury Bonds,
6.750%-13.375% due
05/15/01-08/15/26; $164,328 U.S.
Treasury Notes, 4.625%-8.500%
due 07/31/00-05/15/07........... 300,000
800,000 Agreement with Salomon Smith
Barney Inc., 6.250% dated
03/31/00 to be repurchased at
$800,417 on 04/03/00
collateralized by: $510,127 U.S.
Treasury Note, 5.875%-6.375% due
10/31/01-01/31/02; $112,286
FNMA, 5.750% due
04/20/00-03/15/09; $227,054
FHLMC 5.390%-8.115% due
11/05/03-01/31/05; $483,180
FHLB, 4.985%-7.210% due
04/24/00-08/11/17............... 800,000
500,000 Agreement with Salomon Smith
Barney Inc., 6.370% dated
03/31/00 to be repurchased at
$500,265 on 04/03/00
collateralized by: $510,127 U.S.
Treasury Note, 5.875%-6.375% due
10/31/01-01/31/02; $112,286
FNMA, 5.750% due
04/20/00-03/15/09; $227,054
FHLMC 5.390%-8.115% due
11/05/03-01/31/05; $483,180
FHLB, 4.985%-7.210% due
04/24/00-08/11/17............... 500,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,219,973)............... 3,219,973
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.0%++
536 AIM Liquid Asset Portfolio....... $ 536
474 AIM Prime Fund................... 474
1,484 Dreyfus Cash Management Plus
Fund........................... 1,484
-----------
TOTAL INVESTMENT COMPANIES
(Cost $2,494).................. 2,494
-----------
TOTAL INVESTMENTS
(Cost $36,971,459*)..... 100.8% 36,971,459
-----------
OTHER ASSETS AND
LIABILITIES (NET)....... (0.8)%
Receivable for Fund shares
sold........................... $ 116,534
Interest receivable.............. 154,145
Investment advisory fee
payable........................ (7,196)
Administration fee payable....... (1,468)
Shareholder servicing and
distribution fees payable...... (9,425)
Due to custodian................. (16)
Distributions payable............ (164,141)
Accrued Trustees'/Directors' fees
and expenses................... (123)
Payable to transfer agent........ (394,635)
Accrued expenses and other
liabilities.................... (4,458)
-----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).............. (310,783)
-----------
NET ASSETS................ 100.0% $36,660,676
===========
NET ASSETS CONSIST OF:
Undistributed net investment
income......................... $ 27
Accumulated net realized loss on
investments sold............... (2,601)
Paid-in capital.................. 36,663,250
-----------
NET ASSETS....................... $36,660,676
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($8,642,608,418 / 8,643,601,152
shares outstanding)............ $1.00
-----
-----
TRUST CLASS SHARES:
($1,719,142,262 / 1,719,142,243
shares outstanding)............ $1.00
-----
-----
LIQUIDITY CLASS SHARES:
($1,396,968,843 / 1,396,966,970
shares outstanding)............ $1.00
-----
-----
ADVISER CLASS SHARES:
($4,780,345,939 / 4,781,074,407
shares outstanding)............ $1.00
-----
-----
INVESTOR CLASS SHARES:
($7,068,117,298 / 7,068,927,261
shares outstanding)............ $1.00
-----
-----
MARKET CLASS SHARES:
($2,779,001,560 / 2,779,000,010
shares outstanding)............ $1.00
-----
-----
DAILY CLASS SHARES:
($9,753,000,351 / 9,753,508,179
shares outstanding)............ $1.00
-----
-----
SERVICE CLASS SHARES:
($512,318,274 / 512,356,086
shares outstanding)............ $1.00
-----
-----
INVESTOR B SHARES:
($8,827,645 / 8,827,646 shares
outstanding)................... $1.00
-----
-----
INVESTOR C SHARES:
($345,199 / 345,199 shares
outstanding)................... $1.00
-----
-----
</TABLE>
---------------
* Aggregate cost for Federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at March 31, 2000.
++ Reset date. Interest rates reset either daily, weekly or monthly.
()(++) Restricted security (Note 5).
# Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
++ Amount represents less than 0.1%.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
BANK OBLIGATIONS -- 26.0%
BANK NOTES -- 4.9%
$ 50,000 Bank One, N.A.
5.995%+ 04/20/00++................. $ 49,975
50,000 Chase Manhattan Bank USA, N.A.
6.030%+ 04/25/00++................. 49,995
20,000 First Union National Bank
6.300%+ 04/01/00++................. 20,000
50,000 Fleet Bank, N.A.
6.040%+ 04/26/00++................. 49,989
5,000 Key Bank, N.A.
5.650% 06/26/00.................... 4,999
50,000 National City Bank
6.735%+ 04/04/00++................. 49,988
50,000 Northern Rock plc
6.134%+ 06/14/00++##............... 50,000
50,000 SouthTrust Bank, N.A.
6.080%+ 05/08/00++................. 49,982
----------
324,928
----------
CERTIFICATES OF
DEPOSIT -- YANKEE -- 8.4%
50,000 Abbey National Treasury Services plc
6.470% 01/18/01.................... 49,981
10,000 National Bank of Canada, (New York)
5.150% 04/26/00.................... 10,000
50,000 National Westminster Bank plc
6.470% 01/18/01.................... 49,981
Rabobank Nederland, (New York)
50,000 6.460% 01/10/01...................... 49,982
50,000 6.475% 01/18/01...................... 49,981
50,000 6.490% 01/29/01...................... 49,980
50,000 6.600% 02/01/01...................... 49,980
Westdeutsche Landesbank, Girozentrale
50,000 6.050% 05/23/00...................... 50,000
200,000 6.230% 06/30/00...................... 199,999
----------
559,884
----------
TIME DEPOSITS -- EURO -- 12.7%
200,000 Banc One N.A.
6.300% 04/03/00.................... 200,000
150,000 Chase Manhattan Bank USA, N.A.
6.313% 04/03/00.................... 150,000
100,000 Credit Agricole
6.313% 04/03/00.................... 100,000
200,000 Deutsche Bank
6.313% 04/03/00.................... 200,000
200,000 Societe Generale
6.250% 04/03/00.................... 200,001
----------
850,001
----------
TOTAL BANK OBLIGATIONS
(Cost $1,734,813).................. 1,734,813
----------
CORPORATE OBLIGATIONS -- 73.7%
COMMERCIAL PAPER -- 52.3%
Amstel Funding Corporation
100,000 Discount note 06/15/00#.............. 98,729
100,000 Discount note 06/30/00#.............. 98,475
Asset Securitization Cooperative
Corporation
73,000 Discount note 06/15/00#.............. 72,088
50,000 Discount note 06/27/00#.............. 49,275
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- (CONTINUED)
Barton Capital Corporation
$ 27,756 Discount note 04/12/00#.............. $ 27,706
73,109 Discount note 05/22/00#.............. 72,493
52,437 Discount note 06/08/00#.............. 51,843
30,000 Bavaria TRR Corporation
Discount note 07/26/00#............ 29,422
15,000 Bear, Stearns and Company, Inc.
Discount note 04/19/00............. 14,958
Beta Finance, Inc.
24,000 Discount note 06/08/00#.............. 23,728
20,000 Discount note 06/09/00#.............. 19,769
25,000 Discount note 06/12/00#.............. 24,700
11,000 CC (USA) Inc.
5.870% 04/06/00#................... 10,991
Citibank Capital Markets Assets LLC
100,000 Discount note 05/16/00#.............. 99,244
75,000 Discount note 05/22/00#.............. 74,368
Corporate Receivables Corporation
50,000 Discount note 05/11/00#.............. 49,664
75,000 Discount note 05/22/00#.............. 74,369
186,249 Edison Securitization LLC
Discount note 05/22/00#............ 184,662
50,000 Fortis Banque SA
Discount note 06/09/00#............ 49,425
Galaxy Funding Corporation
130,000 Discount note 05/04/00#.............. 129,287
97,500 Discount note 06/15/00#.............. 96,271
200,000 General Electric Capital Corporation
Discount note 04/03/00............. 199,929
Greyhawk Funding LLC
116,000 Discount note 05/04/00#.............. 115,368
50,000 Discount note 06/05/00#.............. 49,460
75,000 Discount note 06/12/00#.............. 74,102
70,000 Discount note 06/14/00#.............. 69,138
International Securitization
Corporation
58,570 Discount note 05/25/00#.............. 58,046
30,483 Discount note 06/20/00#.............. 30,066
K2 (USA) LLC
13,000 Discount note 04/04/00#.............. 12,994
12,000 Discount note 05/11/00#.............. 11,920
MOAT Funding LLC
50,000 Discount note 05/04/00#.............. 49,726
100,000 Discount note 06/14/00#.............. 98,746
150,000 Discount note 06/19/00#.............. 147,986
Morgan Stanley Dean Witter and
50,000 Company
Discount note 06/08/00.............
49,433
Ness LLC
60,000 Discount note 05/04/00#.............. 59,671
20,000 Discount note 05/12/00#.............. 19,868
30,000 Discount note 06/01/00#.............. 29,695
130,000 Discount note 06/05/00#.............. 128,589
Tulip Funding Corporation
25,000 Discount note 06/13/00#.............. 24,695
50,000 Discount note 06/14/00#.............. 49,381
149,375 Discount note 06/27/00#.............. 147,155
15,000 Discount note 06/28/00#.............. 14,775
200,000 UBS Finance (Delaware) Inc.
Discount note 04/03/00............. 199,930
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- (CONTINUED)
$100,000 Unifunding Inc.
Discount note 06/08/00............. $ 98,867
38,057 Variable Funding Capital Corporation
Discount note 04/03/00#............ 38,044
Victory Receivables Corporation
30,645 Discount note 05/10/00#.............. 30,448
30,060 Discount note 06/12/00#.............. 29,699
100,000 WCP Funding Inc.
Discount note 05/16/00#............ 99,244
Windmill Funding Corporation
25,000 Discount note 05/17/00#.............. 24,807
25,000 Discount note 05/24/00#.............. 24,781
50,000 Discount note 06/08/00#.............. 49,434
25,000 Discount note 06/12/00#.............. 24,701
25,000 Discount note 06/15/00#.............. 24,687
50,000 World Omni Vehicle Leasing, Inc.
Discount note 05/04/00#............ 49,728
----------
3,486,580
----------
CORPORATE BONDS AND NOTES -- 21.4%
10,000 Abbey National Treasury Services plc
5.050% 04/17/00.................... 10,000
American Honda Finance Corporation
13,000 6.110%+ 05/24/00++##................. 12,992
50,000 6.120%+ 06/07/00++##................. 49,976
Associates Corporation of North
11,500 America
6.375% 08/15/00....................
11,510
25,000 AT&T Corporation
5.990%+ 04/13/00++................. 24,997
75,000 Bank One Corporation
6.180%+ 06/08/00++................. 75,016
Bayerische Landesbank
50,000 6.051%+ 04/29/00++................... 49,976
50,000 6.030%+ 06/15/00++................... 49,957
Bear, Stearns and Company, Inc.
5,050 6.090%+ 04/10/00++................... 5,047
5,000 5.750% 06/28/00...................... 5,000
10,000 6.120% 09/07/00...................... 10,000
30,000 First National Bank of Chicago
6.460%+ 04/01/00++................. 30,000
50,000 First Union National Bank
6.490%+ 04/01/00++................. 50,000
Ford Motor Credit Company
25,000 6.058%+ 05/18/00++................... 24,992
75,000 6.060%+ 06/13/00++................... 74,970
General Electric Capital Corporation
30,000 6.041%+ 05/03/00++................... 30,000
25,000 6.049%+ 05/12/00++................... 25,000
General Motors Acceptance Corporation
25,000 6.290%+ 04/01/00++................... 24,983
5,000 6.625% 04/17/00...................... 5,002
10,000 6.625% 06/08/00...................... 10,017
50,000 6.054%+ 06/14/00++................... 49,969
Goldman Sachs Group, Inc.
100,000 6.090% 05/15/00##.................... 100,000
125,000 6.200% 07/06/00##.................... 125,000
10,000 J.P. Morgan Securities Inc.
5.600% 06/23/00.................... 10,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
K2 (USA) LLC
$ 45,000 6.140%+ 06/16/00++##................. $ 45,000
50,000 6.800% 02/15/01##.................... 50,000
Links Finance LLC
35,000 6.140%+ 04/18/00++##................. 35,000
25,000 6.105%+ 04/22/00++##................. 25,000
30,000 Merrill Lynch and Company
6.298%+ 06/27/00++................. 29,998
75,000 National Bank of Canada
6.075%+ 05/22/00++................. 74,979
Sigma Finance, Inc.
50,000 6.315%+ 04/01/00++##................. 50,000
50,000 5.960%+ 04/10/00++##................. 50,000
50,000 6.125%+ 06/15/00++##................. 50,000
50,000 SMM Trust Series 1999-B
6.150%+ 06/13/00++##(++)........... 50,000
50,000 SMM Trust Series 1999-E
6.021%+ 04/05/00++(++)............. 50,000
45,000 SMM Trust Series 1999-J
6.210%+ 06/13/00++(++)............. 45,000
10,000 Xerox Corporation
5.635% 07/14/00.................... 9,998
----------
1,429,379
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,915,959).................... 4,915,959
----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
REPURCHASE AGREEMENTS -- 7.7%
Agreement with J.P. Morgan
250,000 Securities Inc., 6.300% dated
03/31/00 to be repurchased at
$250,131 on 04/03/00
collateralized by: $1,663 SLMA
due 04/03/00; $8,557 FHLMC,
6.000%-6.800% due
01/15/04-12/30/13; $163,200 FHLB,
4.675%-7.250% due
04/10/00-11/05/18; $81,583 FNMA
4.675%-6.800% due
04/05/00-01/15/30................ 250,000
14,432 Agreement with Lehman Brothers
Inc., 6.000% dated 03/31/00 to be
repurchased at $14,439 on
04/03/00 collateralized by:
$4,239 U.S. Treasury Bond,
13.875% due 05/15/11; $10,482
U.S. Treasury Note, 5.000%-6.500%
due 04/30/01-08/31/01............ 14,432
150,000 Agreement with Lehman Brothers
Inc., 6.300% dated 03/31/00 to be
repurchased at $150,079 on
04/03/00 collateralized by:
$50,164 FHLB, 6.750% due
02/01/02; $102,836 FNMA, 6.250%
due 07/15/04-05/15/29............ 150,000
100,000 Agreement with Salomon Smith Barney
Inc., 6.250% dated 03/31/00 to be
repurchased at $100,052 on
04/03/00 collateralized by:
$102,041 U.S. Treasury Note,
4.625%-5.875% due
12/31/00-02/15/04................ 100,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $514,432).................... 514,432
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
(000)
------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $7,165,204*).......... 107.4% $7,165,204
----------
OTHER ASSETS AND
LIABILITIES (NET)......... (7.4)%
Receivable for Fund shares sold.... $ 21,354
Interest receivable................ 17,293
Investment advisory fee payable.... (77)
Administration fee payable......... (120)
Shareholder servicing and
distribution
fees payable.....................
(617)
Distributions payable.............. (29,379)
Accrued Trustees'/Directors' fees
and expenses..................... (25)
Payable to transfer agent.......... (499,757)
Accrued expenses and other
liabilities...................... (1,618)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ (492,946)
----------
NET ASSETS.................. 100.0% $6,672,258
==========
NET ASSETS CONSIST OF:
Undistributed net investment
income........................... $ 4
Accumulated net realized gain on
investments sold................. 24
Paid-in capital.................... 6,672,230
----------
NET ASSETS......................... $6,672,258
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($4,064,349,096 / 4,064,325,843
shares outstanding).............. $1.00
-----
-----
TRUST CLASS SHARES:
($37,831 / 37,831 shares
outstanding)..................... $1.00
-----
-----
LIQUIDITY CLASS SHARES:
($946,156,226 / 946,154,100 shares
outstanding)..................... $1.00
-----
-----
ADVISER CLASS SHARES:
($553,727,951 / 553,726,548 shares
outstanding)..................... $1.00
-----
-----
INVESTOR CLASS SHARES:
($1,014 / 1,014 shares
outstanding)..................... $1.00
-----
-----
MARKET CLASS SHARES:
($1,021,001,443 / 1,021,000,010
shares outstanding).............. $1.00
-----
-----
DAILY CLASS SHARES:
($4,524,929 / 4,524,894 shares
outstanding)..................... $1.00
-----
-----
SERVICE CLASS SHARES:
($80,500,164 / 80,500,010 shares
outstanding)..................... $1.00
-----
-----
INVESTOR B SHARES:
($1,940,249 / 1,940,237 shares
outstanding)..................... $1.00
-----
-----
INVESTOR C SHARES:
($19,186 / 19,186 shares
outstanding)..................... $1.00
-----
-----
</TABLE>
---------------
* Aggregate cost for Federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at March 31, 2000.
++ Reset date. Interest rates reset either daily, weekly or monthly.
(++) Restricted security (Note 5).
# Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 34.2%
U.S. TREASURY BILLS -- 3.8%
$ 175,000 Discount note 04/27/00(+)......... $ 174,279
75,000 Discount note 06/08/00(+)......... 74,238
-----------
248,517
-----------
U.S. TREASURY NOTES -- 30.4%
175,000 5.625% 04/30/00( 7/8)............. 174,978
80,000 6.375% 05/15/00( 7/8)............. 80,120
130,000 5.500% 05/31/00( 7/8)............. 130,007
230,000 5.375% 06/30/00( 7/8)............. 229,907
150,000 5.875% 06/30/00( 7/8)............. 150,109
200,000 5.375% 07/31/00( 7/8)............. 199,961
225,000 6.000% 08/15/00................... 224,870
125,000 5.125% 08/31/00................... 124,583
316,000 6.250% 08/31/00( 7/8)............. 316,626
155,000 4.000% 10/31/00( 7/8)............. 153,324
150,000 5.750% 11/15/00................... 149,564
50,000 5.375% 02/15/01................... 49,562
-----------
1,983,611
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,232,128)............... 2,232,128
-----------
REPURCHASE AGREEMENTS -- 87.2%
1,660,000 Agreement with ABN AMRO Inc.,
6.100% dated 03/31/00 to be
repurchased at $1,660,844 on
04/03/00 collateralized by:
$752,115 U.S. Treasury Strips,
Interest Only, due
08/15/05-02/15/08; $562,316 U.S.
Treasury Notes, 3.625%-3.875%
due 07/15/02-01/15/09; $369,773
U.S. Treasury Bonds,
3.625%-3.875% due
11/15/14-04/15/29............... 1,659,999
125,000 Agreement with Barclays Capital
Inc., 6.100% dated 03/31/00 to
be repurchased at $125,064 on
04/03/00 collateralized by:
$127,501 U.S. Treasury Bill, due
09/07/00........................ 125,000
150,000 Agreement with Barclays Capital
Inc., 6.300% dated 03/31/00 to
be repurchased at $150,079 on
04/03/00 collateralized by:
$153,000 U.S. Treasury Notes,
5.500%-6.000% due
08/15/00-08/31/01............... 150,000
331,000 Agreement with Bear, Stearns and
Company, Inc., 6.200% dated
03/31/00 to be repurchased at
$331,171 on 04/03/00
collateralized by: $218,234
GNMA, 6.000%-8.500% due
08/15/00-03/15/30; $126,719 GNMA
II, 5.000%-8.500% due
08/20/29-03/20/30............... 331,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 200,000 Agreement with Deutsche Bank
Securities, Inc., 5.920%, with a
final maturity date of 05/15/00.
Interest receivable at March 31,
2000 was $559, collateralized
by: $66,913 U.S. Treasury Note,
6.250% due 08/31/02; $63,338
U.S. Treasury Bond, 13.375% due
08/15/01; $73,749 U.S. Treasury
Bill due 05/25/00-
08/24/00( 7/8)( 7/8)............ $ 200,000
331,000 Agreement with First Union Capital
Markets, 6.125% dated 03/31/00
to be repurchased at $331,169 on
04/03/00 collateralized by:
$237,366 GNMA, 5.500%-13.000%
due 09/15/00-03/15/30; $100,254
GNMA II, 5.500%-12.000% due
08/20/01-03/20/30............... 331,000
300,000 Agreement with Goldman Sachs and
Company, 6.150% dated 03/31/00
to be repurchased at $300,154 on
04/03/00 collateralized by:
$289,371 GNMA, 5.500%-10.000%
due 09/15/06-01/15/30; $16,629
GNMA II, 5.500%-9.750% due
09/15/03-01/20/30............... 300,000
331,000 Agreement with J.P. Morgan
Securities Inc., 6.150% dated
03/31/00 to be repurchased at
$331,170 on 04/03/00
collateralized by: $334,947
GNMA, 6.500%-9.500% due
06/15/09-07/15/29; $2,673 GNMA
II, 6.500%-8.500% due
12/20/01-02/20/30............... 331,000
100,000 Agreement with Lehman Brothers
Inc., 5.960%, with a final
maturity date of 05/16/00.
Interest receivable at March 31,
2000 was $132, collateralized
by: $22,589 GNMA II, 7.125% due
11/20/24; $79,395 U.S. Treasury
Bond, 10.750% due
08/15/05( 7/8)( 7/8)............ 100,000
200,000 Agreement with Lehman Brothers
Inc., 5.960%, with a final
maturity date of 05/16/00.
Interest receivable at March 31,
2000 was $298, collateralized
by: $203,900 U.S. Treasury Bond,
5.250%-10.750% due
08/15/05-02/15/29( 7/8)( 7/8)... 200,000
260,000 Agreement with Salomon Smith
Barney Inc., 6.120% dated
03/31/00 to be repurchased at
$260,133 on 04/30/00
collateralized by: $231,101
GNMA, 6.500%-9.00% due 12/15/17-
10/15/29; $34,099 GNMA II, 7.5%
due 9/20/29..................... 260,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$1,388,197 Agreement with Salomon Smith
Barney, Inc. Interest is payable
monthly. The agreement is
terminable by the Fund daily.
The final maturity date of the
agreement is 04/03/00
collateralized by: $625,523 U.S.
Treasury Strips, Interest Only,
05/15/00-11/15/27; $462,170 U.S.
Treasury Notes, 6.125% due
11/15/01-08/15/07; $809 U.S.
Treasury Strip, TIGR, Interest
Receipt, 11.750% due 02/15/04;
$308,615 U.S. Treasury Strips,
Principal Only,
04/15/00-11/15/28; $19,533 U.S.
Treasury Note, 11.750% due
11/15/14++...................... $ 1,388,197
331,000 Agreement with Westdeutsche
Landesbank, Girozentrale, 6.200%
dated 03/31/00 to be repurchased
at $331,171 on 04/03/00
collateralized by: $337,620
GNMA, 6.500%-7.000% due
05/15/29-07/15/29............... 331,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,707,196)............... 5,707,196
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C> <C>
INVESTMENT COMPANIES--0.1%
1,556 AIM Treasury Fund.................. 1,556
3,012 Dreyfus Treasury Cash Management
Fund............................. 3,012
-----------
TOTAL INVESTMENT COMPANIES
(Cost $4,568).................... 4,568
-----------
TOTAL INVESTMENTS
(Cost $7,943,892*)........ 121.5% 7,943,892
-----------
OTHER ASSETS AND
LIABILITIES (NET)......... (21.5)%
Receivable for Fund shares sold.... $ 14,867
Interest receivable................ 27,653
Payable for reverse repurchase
agreements....................... (1,388,197)
Investment advisory fee payable.... (1,630)
Administration fee payable......... (282)
Shareholder servicing and
distribution fees payable........ (1,730)
Distributions payable.............. (31,350)
Accrued Trustees'/Directors' fees
and expenses..................... (67)
Payable to transfer agent.......... (26,864)
Accrued expenses and other
liabilities...................... (459)
-----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................ (1,408,059)
-----------
NET ASSETS.................. 100.0% $ 6,535,833
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................. $ (144)
Paid-in capital.................... 6,535,977
-----------
NET ASSETS......................... $ 6,535,833
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($1,026,684,575 / 1,026,922,640
shares outstanding).............. $1.00
-----
-----
TRUST CLASS SHARES:
($506,338,599 / 506,338,447 shares
outstanding)..................... $1.00
-----
-----
LIQUIDITY CLASS SHARES:
($364,761,112 / 364,779,409 shares
outstanding)..................... $1.00
-----
-----
ADVISER CLASS SHARES:
($1,460,965,826 / 1,461,484,258
shares outstanding).............. $1.00
-----
-----
INVESTOR CLASS SHARES:
($573,261,154 / 573,467,781 shares
outstanding)..................... $1.00
-----
-----
MARKET CLASS SHARES:
($1,511,931,638 / 1,512,000,010
shares outstanding).............. $1.00
-----
-----
DAILY CLASS SHARES:
($847,775,578 / 847,881,372 shares
outstanding)..................... $1.00
-----
-----
SERVICE CLASS SHARES:
($244,034,721 / 244,056,365 shares
outstanding)..................... $1.00
-----
-----
INVESTOR B SHARES:
($79,886 / 79,886 shares
outstanding)..................... $1.00
-----
-----
</TABLE>
---------------
* Aggregate cost for Federal tax purposes.
( 7/8) Denotes security, or a portion thereof, subject to repurchase under
reverse repurchase agreement as of March 31, 2000.
( 7/8)( 7/8) Restricted security (Note 5).
++ Security segregated as collateral for reverse repurchase agreement.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS RESERVES MONEY MARKET FUNDS
Nations Government Reserves
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 101.4%
FEDERAL FARM CREDIT BANK
(FFCB) -- 2.5%
$ 25,000 5.753%+ 04/01/00++................. $ 24,997
20,000 6.350% 02/01/01.................... 19,968
----------
44,965
----------
FEDERAL HOME LOAN BANK (FHLB) --
85.5%
98,270 Discount note 04/03/00............. 98,237
12,000 6.155%+ 04/03/00++................. 12,000
75,000 6.210%+ 04/03/00++................. 74,990
100,000 5.786%+ 04/04/00++................. 99,977
200,000 5.841%+ 04/04/00++................. 199,931
50,000 5.819%+ 04/12/00++................. 49,993
170,000 5.956%+ 04/21/00++................. 169,976
12,000 5.050% 04/26/00.................... 12,000
100,000 5.960%+ 04/27/00++................. 99,983
5,000 5.020% 05/12/00.................... 4,999
26,730 5.415% 06/14/00.................... 26,722
250,000 Discount note 06/23/00............. 246,548
96,500 Discount note 06/28/00............. 95,082
175,000 Discount note 06/28/00............. 172,362
15,310 5.500% 07/14/00.................... 15,300
15,000 5.710% 08/09/00.................... 14,999
25,000 5.750% 09/01/00.................... 24,994
15,000 5.875% 09/07/00.................... 14,998
25,000 5.705% 10/06/00.................... 24,978
40,000 6.500% 03/15/01.................... 39,963
30,000 6.660% 04/06/01.................... 29,976
----------
1,528,008
----------
STUDENT LOAN MARKETING ASSOCIATION
(SLMA) -- 13.4%
75,000 6.535%+ 04/04/00++................. 74,988
40,000 6.585%+ 04/04/00++................. 39,994
125,000 6.647%+ 04/04/00++................. 124,969
----------
239,951
----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $1,812,924)................ 1,812,924
----------
TOTAL INVESTMENTS
(Cost $1,812,924*)........ 101.4% 1,812,924
----------
OTHER ASSETS AND LIABILITIES
(NET)..................... (1.4)%
Cash............................... $ 1
Receivable for Fund shares sold.... 5,587
Interest receivable................ 9,285
Investment advisory fee payable.... (283)
Administration fee payable......... (30)
Shareholder servicing and
distribution fees payable........ (438)
Distributions payable.............. (8,253)
Payable for investment securities
purchased........................ (29,976)
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
------------------------------------------------------------
------------------------------------------------------------
<C> <S> <C> <C>
Accrued Trustees'/Directors' fees
and expenses..................... $ (25)
Payable to transfer agent.......... (150)
Accrued expenses and other
liabilities...................... (153)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ (24,435)
----------
NET ASSETS.................. 100.0% $1,788,489
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................. $ (665)
Paid-in capital.................... 1,789,154
----------
NET ASSETS......................... $1,788,489
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($381,336,388 / 381,485,941 shares
outstanding)..................... $1.00
-----
-----
TRUST CLASS SHARES:
($125,504,070 / 125,504,207
shares outstanding).............. $1.00
-----
-----
LIQUIDITY CLASS SHARES:
($140,327,775 / 140,327,906
shares outstanding).............. $1.00
-----
-----
ADVISER CLASS SHARES:
($477,205,103 / 477,519,398
shares outstanding).............. $1.00
-----
-----
INVESTOR CLASS SHARES:
($111,741,201 / 112,049,701
shares outstanding).............. $1.00
-----
-----
MARKET CLASS SHARES:
($369,999,563 / 370,000,010
shares outstanding).............. $1.00
-----
-----
DAILY CLASS SHARES:
($171,520,896 / 171,521,162
shares outstanding).............. $1.00
-----
-----
SERVICE CLASS SHARES:
($10,000,004 / 10,000,010 shares
outstanding)..................... $1.00
-----
-----
INVESTOR B SHARES:
($108,074 / 108,074 shares
outstanding)..................... $1.00
-----
-----
INVESTOR C SHARES:
($746,010 / 746,010 shares
outstanding)..................... $1.00
-----
-----
</TABLE>
---------------
* Aggregate cost for Federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at March 31, 2000.
++ Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 99.6%
ALABAMA -- 1.1%
$ 335 Arab, Alabama Industrial
Development Board IDR, (Syncro
Corporation Project) Series 1992,
AMT, (SouthTrust Bank, N.A. LOC),
3.950% 06/01/02**#............... $ 335
9,250 Birmingham, Alabama Private
Educational Building Authority
Revenue, (The Altamont School
Project) Series 1998, (AmSouth
Bank of Alabama LOC),
3.900% 04/01/13**................ 9,250
575 Foley, Alabama Industrial
Development Board IDR, (Vulcan
Inc. Project) Series 1985,
(AmSouth Bank of Alabama LOC),
4.100% 12/01/00**#............... 575
2,560 Phenix County, Alabama Industrial
Development Board Environmental
Improvement Revenue, (Mead Coated
Board, Inc. Project) Series
1993A, AMT, (Toronto Dominion
Bank LOC),
4.100% 06/01/28**................ 2,560
3,900 Phenix County, Alabama Industrial
Development Board Environmental
Improvement Revenue, (Mead Coated
Board, Inc. Project) Series 1996,
AMT, (Hypo Vereinsbank LOC),
4.100% 03/01/31**................ 3,900
----------
16,620
----------
ALASKA -- 1.8%
16,700 Alaska Industrial Development and
Export Authority Exempt
Facilities Revenue, (AMAX Gold,
Inc. Project) Series 1997, AMT,
(UBS AG LOC),
3.900% 05/01/09**................ 16,700
9,995 Alaska State Housing Finance
Corporation Housing Revenue,
Series 1998, P-Floats PA-332,
(MBIA Insured,
Merrill Lynch SBPA),
3.960% 12/01/19**#(++)........... 9,995
----------
26,695
----------
ARIZONA -- 1.0%
14,700 Apache County, Arizona Industrial
Development Authority Revenue,
(Tucson Electric Power Company
Project) Series 1983A, (Toronto
Dominion Bank LOC),
3.900% 12/15/18**................ 14,700
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
ARIZONA -- (CONTINUED)
$ 1,000 Pinal County, Arizona Industrial
Development Authority PCR
Refunding, (Magna Copper Company
Project) Series 1992, (Banque
Nationale de Paris LOC),
3.850% 12/01/11**................ $ 1,000
----------
15,700
----------
ARKANSAS -- 0.8%
1,200 Arkansas State Development Finance
Authority Higher Education
Capital Asset Revenue, Series
1985,
(FGIC Insured, Citibank SBPA),
3.900% 12/01/15**................ 1,200
11,500 Crossett, Arkansas PCR Refunding,
(Georgia-Pacific Corporation
Project) Series 1998, (SunTrust
Bank LOC),
3.950% 08/01/04**#............... 11,500
----------
12,700
----------
CALIFORNIA -- 1.5%
20,000 California Higher Education Loan
Authority Inc. Student Loan
Revenue, Series 1987, (Student
Loan Marketing LOC), Mandatory
Tender 07/01/00,
3.500% 07/01/02.................. 20,000
800 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (American
Airlines - Los Angeles
International Airport Project)
Series 1984C, (Wachovia Bank of
Georgia LOC),
4.100% 12/01/24**................ 800
2,500 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (LAX Two
Corporation - Los Angeles
International Airport Project)
Series 1985, (Societe Generale
LOC),
4.100% 12/01/25**................ 2,500
----------
23,300
----------
COLORADO -- 1.5%
1,105 Colorado Health Facilities
Authority Revenue, (Goodwill
Industries, Inc. Project) Series
1994, (Bank One of Colorado, N.A.
LOC),
4.000% 12/01/04**#............... 1,105
5,270 Colorado Housing Finance Authority
Revenue Refunding, Series 1996B,
(FNMA Collateral Agreement),
3.950% 10/15/16**................ 5,270
2,895 Colorado Post-Secondary Educational
Facilities Authority Economic
Development Revenue, (U.S.
Swimming, Inc. Project) Series
1996, (Bank One, N.A. LOC),
4.000% 06/01/11**#............... 2,895
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
COLORADO -- (CONTINUED)
$ 975 Larimer County, Colorado Industrial
Development Revenue Refunding,
(Ultimate Support Systems
Project) Series 1995A, (Bank One
of Colorado, N.A. LOC),
4.000% 06/01/10**#............... $ 975
3,000 Moffat County, Colorado PCR,
(PacifiCorp Project) Series 1994,
AMT, (AMBAC Insured, Bank of New
York SBPA),
4.000% 05/01/13**................ 3,000
8,300 Moffat County, Colorado PCR,
(Tri-State Colorado - Utah
Electric Cooperative Project)
Series 1984, (AMBAC Insured,
Societe Generale SBPA),
3.950% 07/01/10**................ 8,300
800 Pitkin County, Colorado Industrial
Development, Revenue Refunding,
(Aspen Skiing Project) Series
1994A, (First National Bank
Chicago),
4.000% 04/01/16**................ 800
----------
22,345
----------
DELAWARE -- 5.5%
6,425 Delaware State Economic Development
Authority Hospital Billing
Revenue, Series 1985, (MBIA
Insured, Morgan Stanley SBPA),
3.900% 12/01/15**................ 6,425
42,350 Delaware State Economic Development
Authority Hospital Billing
Revenue, Series 1985B, (MBIA
Insured, Morgan Stanley SBPA),
3.900% 12/01/15**................ 42,350
18,600 Delaware State Economic Development
Authority IDR, (Star Enterprise -
Delaware Clean Power Project)
Series 1997A, AMT, (Canadian
Imperial Bank of Commerce LOC),
4.000% 08/01/29**................ 18,600
15,000 Delaware State Economic Development
Authority IDR, (Star Enterprise -
Delaware Clean Power Project)
Series 1997C, AMT, (Canadian
Imperial Bank of Commerce LOC),
3.990% 08/01/29**................ 15,000
----------
82,375
----------
DISTRICT OF COLUMBIA -- 0.6%
7,500 District of Columbia GO, Series
1992A-3, (Societe Generale LOC),
4.000% 10/01/07**................ 7,500
1,000 District of Columbia GO, Series
1992A-5, (Bank of Nova Scotia
LOC),
4.000% 10/01/07**................ 1,000
----------
8,500
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
FLORIDA -- 3.6%
$ 2,775 Brevard County, Florida Housing
Finance Authority Multi-Family
Housing Revenue, (Malabar Lakes,
Ltd. Project) Series 1993A, (US
Bank, N.A. LOC),
3.900% 12/01/10**#............... $ 2,775
9,100 Collier County, Florida Industrial
Development Authority Health Care
Facilities Revenue, Series 1999A,
(First Union National Bank LOC),
4.000% 11/01/19**................ 9,100
20,000 Florida State Turnpike Authority
Turnpike Revenue, Series 1999-1,
(MBIA Insured, Chase Manhattan
Bank SBPA),
3.960% 07/01/19**##.............. 20,000
4,200 Florida University Athletic
Association Inc. Capital
Improvement Revenue, (University
of Florida Project) Series 1999,
(SunTrust Bank of Central Florida
LOC),
4.100% 02/01/20**................ 4,200
1,760 Fort Walton Beach, Florida IDR,
(Burton Golf, Inc. Project)
Series 1996, AMT, (Columbus Bank
and Trust LOC),
4.200% 10/01/11**#............... 1,760
3,000 Palm Beach County, Florida Economic
Development Revenue, (YMCA
Boynton Beach Project) Series
1999, (SunTrust Bank of South
Florida LOC),
3.950% 01/01/24**#............... 3,000
9,000 Polk County, Florida Industrial
Development Authority Revenue,
(Farmland Hydro, LP Project)
Series 1998, AMT, (Rabobank
Nederland LOC),
4.000% 02/01/29**................ 9,000
3,890 St. Lucie County, Florida PCR,
(Florida Power and Light Company
Project) Series 1993,
3.900% 01/01/26**................ 3,890
----------
53,725
----------
GEORGIA -- 10.1%
7,525 Clayton County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Chateau
Forest Apartments Project) Series
1990E, (FSA Insured, Societe
Generale SBPA),
3.900% 01/01/21**................ 7,525
3,945 Clayton County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Ten Oaks
Apartments Project) Series 1990F,
(FSA Insured, Societe Generale
SBPA),
3.900% 01/01/21**................ 3,945
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$ 2,000 Cobb County, Georgia Development
Authority Revenue Refunding,
(Highlands Park Associates
Project) Series 1998, (SunTrust
Bank LOC),
3.950% 08/01/08**#............... $ 2,000
1,900 Cobb County, Georgia Residential
Care Facilities for the Elderly
Authority Revenue Refunding,
(Presbyterian Village Austell
Project) Series 1998, (SunTrust
Bank LOC),
3.950% 08/01/15**#............... 1,900
13,700 Columbia County, Georgia
Residential Care Facilities for
the Elderly Authority Revenue,
(Augusta Residential Center on
Aging Project) Series 1994,
(SunTrust Bank LOC),
3.950% 01/01/21**#............... 13,700
7,500 DeKalb County, Georgia Development
Authority IDR, (The Paideia
School Inc. Project) Series 2000,
(SunTrust
Bank LOC),
3.950% 02/01/20**#............... 7,500
3,000 DeKalb County, Georgia Development
Authority Revenue, (Marist
School, Inc. Project) Series
1999, (SunTrust
Bank LOC),
3.950% 03/01/24**#............... 3,000
6,050 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Camden Brook
Project) Series 1995, (FNMA
Collateral Agreement),
3.900% 06/15/25**................ 6,050
14,935 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Wood Terrace
Apartments Project) Series 1995,
(FNMA Collateral Agreement),
3.900% 12/15/15**................ 14,935
1,400 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue, (Cedar Creek Apartments
Project) Series 1995, AMT,
(General Electric Capital
Corporation Guarantee),
4.100% 12/01/20**#............... 1,400
4,800 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue, (Crow Wood Arbor
Associates, Ltd. Project)
Series 1985, (Wachovia Bank of
North Carolina LOC),
3.950% 12/01/07**#............... 4,800
3,500 Fulton County, Georgia Development
Authority Revenue, (Georgia Tech
Athletic Association, Inc.
Project) Series 1995, (SunTrust
Bank LOC),
3.950% 07/01/14**#............... 3,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$ 3,000 Fulton County, Georgia Development
Authority Revenue, (Lovett School
Project) Series 1997, (SunTrust
Bank LOC),
3.950% 04/01/17**#............... $ 3,000
15,000 Gainesville, Georgia Redevelopment
Authority Educational Facilities
Revenue, (Riverside Military
Project) Series 1999, (Wachovia
Bank N.A. LOC),
3.950% 07/01/24**#............... 15,000
1,150 Municipal Electric Authority of
Georgia Subordinated Revenue,
(Georgia MEAG Project Number One)
Series 1994D, (ABN-AMRO Bank N.V.
LOC),
3.900% 01/01/22**................ 1,150
17,560 Municipal Electric Authority of
Georgia Subordinated Revenue,
(Georgia MEAG Project Number One)
Series 1994E, (ABN-AMRO Bank N.V.
LOC),
3.900% 01/01/26**................ 17,560
1,600 Putnam County, Georgia Development
Authority PCR, (Georgia Power
Company Plant Project) Series
1997-2,
4.000% 09/01/29**................ 1,600
5,800 Richmond County, Georgia
Development Authority Solid Waste
Disposal Revenue, (Evergreen
Nylon Project) Series 1999, AMT,
(Banque Nationale de Paris LOC),
3.950% 07/01/32**................ 5,800
10,000 Richmond County, Georgia Hospital
Authority Revenue Anticipation
Certificates, (University Health
Services, Inc. Project) Series
1999, (SunTrust Bank LOC),
3.950% 01/01/19**................ 10,000
2,765 Rockdale County, Georgia Water and
Sewer Authority Revenue, Series
1999B, (MBIA Insured),
4.250% 07/01/00.................. 2,768
7,000 Smyrna, Georgia Housing Authority
Multi-Family Housing Revenue,
(Hills of Post Village Series
Project) Series 1995, (FNMA
Collateral Agreement),
3.900% 06/01/25**#............... 7,000
18,400 Smyrna, Georgia Housing Authority
Multi-Family Housing Revenue,
(Post Apartment Homes - Post
Valley, LP Project) Series 1995,
(FNMA
Collateral Agreement),
3.900% 06/01/25**#............... 18,400
----------
152,533
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
IDAHO -- 1.7%
$ 14,000 Idaho State GO, Series 1999,
4.250% 06/30/00.................. $ 14,028
12,400 Power County, Idaho PCR,
(FMC Corporation Project)
Series 1985, (Wachovia Bank of
North Carolina LOC),
4.000% 12/01/10**................ 12,400
----------
26,428
----------
ILLINOIS -- 11.5%
1,135 Chicago, Illinois IDR, (Guernsey
Bel Inc. Project) Series 1996A,
AMT, (LaSalle National Bank LOC),
4.000% 12/01/16**................ 1,135
1,100 Chicago, Illinois O'Hare
International Airport Authority
Industrial Revenue, (American
Airlines, Inc. Project) Series
1983C, (Royal Bank of
Canada LOC),
4.000% 12/01/17**................ 1,100
2,600 Chicago, Illinois O'Hare
International Airport Authority
Industrial Revenue, (American
Airlines, Inc. Project) Series
1983D, (Royal Bank of
Canada LOC),
4.000% 12/01/17**................ 2,600
5,500 Chicago, Illinois O'Hare
International Airport Authority
Revenue, (American Airlines, Inc.
Project) Series 1983B, (Royal
Bank of Canada LOC),
4.000% 12/01/17**................ 5,500
13,000 Chicago, Illinois O'Hare
International Airport Revenue,
(General Airport Project) Second
Lien, Series 1984A, (Societe
Generale LOC),
3.850% 01/01/15**................ 13,000
4,355 Elmhurst, Illinois Hospital
Revenue, (Joint Commission
Accredidation Healthcare Project)
Series 1988, (Dexia Credit Local
de France LOC),
3.850% 07/01/18**................ 4,355
870 Illinois Development Finance
Authority IDR, (Randolph Pickle
Corporation Project) Series 1992,
AMT, (American National Bank &
Trust Company LOC),
4.150% 06/01/12**................ 870
2,800 Illinois Development Finance
Authority IDR, (Unique Building
Corporation Project) Series 1989,
AMT, (American National Bank &
Trust Company LOC),
4.150% 05/01/09**................ 2,800
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
ILLINOIS -- (CONTINUED)
$ 32,100 Illinois Development Finance
Authority Revenue, (Lyric Opera
of Chicago Project) Series 1994,
(Northern Trust Company LOC, Bank
One of Michigan LOC, Harris Trust
& Savings Bank LOC, Caisse
Nationale de Credit Agricole
LOC),
3.900% 12/01/28**................ $ 32,100
1,900 Illinois Development Finance
Authority Revenue, (Park Ridge
Youth Campus Project) Series
1998, (Northern Trust Company
LOC),
4.000% 09/01/18**#............... 1,900
12,200 Illinois Development Finance
Authority Revenue, (YMCA of
Metropolitan Chicago Project)
Series 1996A, (Harris Trust &
Savings Bank LOC),
3.900% 06/01/26**................ 12,200
5,600 Illinois Educational Facilities
Authority Revenue, (Chicago
Historical Society Project)
Series 1985, (Northern Trust
Company LOC),
3.900% 12/01/25**#............... 5,600
Illinois Educational Facilities
Authority Revenue, (DePaul
University Project) Series
1992CP-1, (Northern Trust LOC),
3.900% 04/01/26**................ 4,000
12,800 Illinois Educational Facilities
Authority Revenue, (John F.
Kennedy Healthcare Foundation
Project) Series 1995, (Lasalle
National Bank LOC),
4.000% 12/01/25**................ 12,800
1,400 Illinois Educational Facilities
Authority Revenue, (Northwestern
University Project) Series 1985,
(First National Bank of Chicago
SBPA),
3.950% 12/01/25**................ 1,400
15,485 Illinois Educational Facilities
Authority Revenue, (University
Pooled Financing Program) Series
1985, (FGIC Insured, First
National Bank of Chicago SBPA),
3.950% 12/01/05**#............... 15,485
1,500 Illinois Health Facilities
Authority Revenue, (Central
Dupage-Healthcorp Project) Series
1990, (First National Bank of
Chicago LOC),
4.050% 11/01/20**................ 1,500
10,000 Illinois Health Facilities
Authority Revenue, (Evanston
Hospital Corporation Project)
Series 1985B,
3.650% 08/15/00**#............... 10,000
23,000 Illinois Health Facilities
Authority Revenue, (Evanston
Hospital Corporation Project)
Series 1988,
4.200% 11/15/00**................ 23,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
ILLINOIS -- (CONTINUED)
$ 8,000 Illinois Health Facilities
Authority Revenue, (Revolving
Fund Pooled Project) Series
1985C, (First National Bank of
Chicago LOC),
3.900% 08/01/15**................ $ 8,000
1,500 Lombard Village, Illinois
Industrial Projects Revenue
Refunding, (B&H Partnership
Project) Series 1995, (Comerica
Bank LOC),
4.200% 10/01/13**................ 1,500
3,900 Madison County, Illinois
Environmental Improvement
Revenue, (Shell Oil Company
Project) Series 1997A, AMT,
4.050% 03/01/33**................ 3,900
9,200 Orland Park, Illinois Industrial
Development Revenue, (Panduit
Corporation Project) Series 1996,
AMT, (Wachovia Bank of Georgia
LOC),
4.000% 04/01/31**#............... 9,200
----------
173,945
----------
INDIANA -- 1.7%
340 Auburn, Indiana Economic
Development Revenue, (R.J. Tower
Corporation Project) Series 1988,
AMT, (Comerica Bank LOC),
4.100% 09/01/00**................ 340
2,400 Indiana Health Facilities Financing
Authority Hospital Revenue,
(Deaconess Hospital Inc. Project)
Series 1992, (First National Bank
of Chicago LOC),
3.850% 01/01/22**................ 2,400
1,815 Indiana Health Facilities Financing
Authority Revenue Refunding,
(Cardinal Center, Inc. Project)
Series 1996A, (Key Bank N.A.
LOC),
4.000% 12/01/16**#............... 1,815
8,000 Indiana State Hospital Equipment
Financing Authority Revenue,
Series 1985A, (MBIA Insured, Bank
One of Michigan SBPA),
3.900% 12/01/15**#............... 8,000
2,700 Indianapolis, Indiana Economic
Development Revenue, (Edgcomb
Metals Company Project) Series
1983, (Wells Fargo Bank LOC),
3.900% 12/01/08**................ 2,700
530 Kendallville, Indiana Industrial
Revenue, (McCray Memorial
Hospital Project) Series 1994,
(Bank One of
Michigan LOC),
4.000% 01/01/04**#............... 530
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INDIANA -- (CONTINUED)
$ 800 Princeton, Indiana PCR Refunding,
(PSI Energy, Inc. Project) Series
1996, (Canadian Imperial Bank of
Commerce LOC),
4.000% 03/01/19**................ $ 800
3,365 Rockport, Indiana PCR Refunding,
(AEP Generating Company Project)
Series 1995B, (AMBAC Insured,
Bank of New York SBPA),
4.000% 07/01/25**................ 3,365
2,900 Rockport, Indiana PCR, (Indiana and
Michigan Electric Company
Project) Series 1985A, (UBS AG
LOC),
3.950% 08/01/14**#............... 2,900
3,100 Whiting, Indiana Sewer and Solid
Waste Disposal Revenue, (Amoco
Oil Company Project) Series 1996,
AMT, (BP Amoco plc Guarantee),
4.050% 01/01/26**#............... 3,100
----------
25,950
----------
IOWA -- 0.3%
4,700 Iowa Higher Education Loan
Authority Revenue, Series 1985,
(MBIA Insured, Chase Manhattan
SBPA),
3.950% 12/01/15**................ 4,700
----------
KANSAS -- 0.5%
7,500 Kansas Industrial Development
Finance Authority Revenue, (PQ
Corporation Project) Series 1988,
(Bank of
New York LOC),
4.050% 08/01/15**#............... 7,500
----------
KENTUCKY -- 0.8%
1,024 Jefferson County, Kentucky IDR,
(Belknap, Inc. Project) Series
1984, (National City Bank,
Kentucky LOC),
4.050% 12/01/14**#............... 1,024
1,355 Jefferson County, Kentucky
Industrial Building Revenue,
(Seven Counties Services, Inc.
Project) Series 1996, (Bank One
of Kentucky, N.A. LOC),
4.000% 06/01/11**#............... 1,355
1,050 Jeffersontown, Kentucky Industrial
Building Revenue, (Raque Food
Systems, Inc. Project) Series
1995, AMT, (PNC Bank, N.A. LOC),
4.100% 04/01/20**#............... 1,050
1,500 Kentucky Development Finance
Authority Revenue, Series 1985A,
(FGIC Insured, Landesbank Hessen
Thueringen SBPA),
3.900% 12/01/15**................ 1,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
KENTUCKY -- (CONTINUED)
$ 2,700 Lexington-Fayette County, Kentucky
Urban County Airport Corporation
Revenue, (First Mortgage Project)
Series 1994A, AMT, (Dexia Credit
Local de France LOC),
4.100% 04/01/24**................ $ 2,700
4,400 Louisville and Jefferson County,
Kentucky Convention Center GO,
Series 1996PT-69, (FSA Insured,
Merrill Lynch SBPA),
3.960% 07/01/24**##.............. 4,400
----------
12,029
----------
LOUISIANA -- 3.2%
10,000 Ascension Parish, Louisiana PCR
Refunding, (Borden, Inc. Project)
Series 1992, (Credit Suisse First
Boston LOC),
3.850% 12/01/09**................ 10,000
3,700 Ascension Parish, Louisiana PCR,
(Shell Oil Company Project)
Series 1993,
4.000% 09/01/23**................ 3,700
2,900 Calcasieu Parish Inc., Louisiana
Industrial Development Board
Environmental Revenue, (Citgo
Petroleum Corporation Project)
Series 1994, AMT, (Banque
Nationale de Paris LOC),
4.100% 12/01/24**................ 2,900
2,000 Calcasieu Parish Inc., Louisiana
Industrial Development Board
Environmental Revenue, (Citgo
Petroleum Corporation Project)
Series 1996, AMT, (ABN-AMRO Bank
N.V.),
4.100% 07/01/26**................ 2,000
5,400 Lake Charles, Louisiana Harbor and
Terminal District Revenue, (Citgo
Petroleum Corporation Project)
Series 1984, (Westdeutsche
Landesbank Girozentrale LOC),
3.900% 08/01/07**................ 5,400
20,000 Louisiana State Public Facilities
Authority Hospital Revenue,
(Willis-Knighton Medical Center
Project) Series 1997, (AMBAC
Insured, Dexia Credit Local de
France SBPA),
4.000% 09/01/27**................ 20,000
5,000 Plaquemines, Louisiana Port Harbor
and Terminal District Port
Facilities Revenue,
(International Marine Terminals
Project) Series 1984A, (KBC Bank
N.V. LOC), Mandatory
Put 03/15/00,
4.200% 03/15/06.................. 5,000
----------
49,000
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
MARYLAND -- 2.5%
$ 3,000 Baltimore County, Maryland Economic
Development Revenue, (Notre Dame
Preparatory School Project)
Series 1998, (Crestar Bank LOC),
3.950% 06/01/24**#............... $ 3,000
34,700 Baltimore, Maryland Industrial
Development Authority IDR,
(Baltimore Capital Acquisition
Project) Series 1986, (Bayerische
Landesbank LOC),
3.850% 08/01/16**................ 34,700
----------
37,700
----------
MASSACHUSETTS -- 1.3%
17,565 Massachusetts GO, Series 1999,
(FGIC Insured, Morgan Guaranty
Trust SBPA),
3.820% 06/01/07**##.............. 17,565
2,000 Massachusetts State Water Resource
Authority Revenue, Series 1990A,
7.625% 04/01/00.................. 2,040
----------
19,605
----------
MICHIGAN -- 1.0%
2,000 Michigan Municipal Bond Authority
Revenue, Series 1999A-1,
4.000% 06/30/00.................. 2,003
3,500 Michigan State Housing Development
Authority Housing Revenue, (Shoal
Creek Project) Series 1985,
(Wachovia Bank LOC),
3.900% 10/01/07**................ 3,500
4,000 Michigan State Job Development
Authority Revenue, (Gordon Food
Service Inc. Project) Series
1985, (Rabobank Nederland LOC),
3.900% 08/01/15**................ 4,000
2,000 Michigan State Strategic Funding
Ltd. Revenue Refunding, (Detroit
Edison Company Project) Series
1995, (Barclays Bank, PLC LOC),
4.000% 09/01/30**................ 2,000
1,000 University of Michigan Hospital
Revenue, (University of Michigan
Project) Series 1995A,
4.000% 12/01/27**................ 1,000
1,200 University of Michigan, Hospital
Revenue Refunding, (University of
Michigan Hospitals Project)
Series 1992A,
4.000% 12/01/19**................ 1,200
1,000 University of Michigan, Hospital
Revenue, (University of Michigan
Project) Series 1998A-1,
4.000% 12/01/21**................ 1,000
----------
14,703
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
MINNESOTA -- 0.4%
$ 6,160 Minneapolis, Minnesota Housing
Development Revenue Refunding,
(Symphony Place Project) Series
1988, (Freddie Mac Company LOC),
3.850% 12/01/14**................ $ 6,160
----------
MISSOURI -- 5.2%
35,900 Missouri State Development Finance
Board Lease Revenue, Transamerica
Life and Annuity, Series 1999,
(Missouri Association of
Utilities Lease Pool TransAmerica
Life and
Annuity GIC),
4.000% 12/01/22**................ 35,900
5,000 Missouri State Environmental
Improvement and Energy Resources
Authority PCR, (Union Electric
Company Project) Series 1985B,
(Westdeutsche Landesbank LOC),
3.950% 04/24/00.................. 5,000
1,700 Missouri State Health and
Educational Facilities Authority
Facilities Revenue, (Washington
University Project) Series 1985B,
(Morgan Guaranty
Trust SBPA),
3.900% 09/01/10**................ 1,700
6,500 Missouri State Health and
Educational Facilities Authority
Health Facilities Revenue
Refunding, (Sisters of Mercy
Health Care System Project)
Series 1992B, (ABN-AMRO N.V.
Chicago SBPA),
3.900% 06/01/14**................ 6,500
25,900 Missouri State Health and
Educational Facilities Authority
Revenue, (Stowers Institute of
Medical Research), Series 1998A,
(Morgan Guaranty Trust),
3.900% 04/01/38**................ 25,900
3,070 St. Charles County, Missouri
Industrial Development Authority
IDR, (AH Land Development Company
Project) Series 1996, AMT,
(Commerce
Bank LOC),
4.200% 06/01/11**................ 3,070
----------
78,070
----------
MONTANA -- 0.2%
3,500 Forsyth, Montana PCR, (Pacificorp
Colstrip Project) Series 1986,
AMT, (Deutsche Bank A.G. LOC),
4.100% 12/01/16**................ 3,500
----------
NEBRASKA -- 0.6%
9,695 Nebraska Help Inc. Student Loan
Revenue, Series 1986B, AMT,
(SLMA Guarantee),
4.000% 12/01/16**................ 9,695
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
NEVADA -- 1.1%
$ 5,750 Clark County, Nevada IDR, (Nevada
Cogeneration Association I
Project) Series 1991, AMT,
(Canadian Imperial Bank of
Commerce LOC),
4.100% 11/01/21**................ $ 5,750
5,650 Clark County, Nevada IDR, (Nevada
Cogeneration Association II
Project) Series 1990, AMT,
(Canadian Imperial Bank of
Commerce LOC),
4.100% 11/01/20**................ 5,650
5,500 Nevada Housing Division Multi-Unit
Housing Revenue, Series 1999A,
AMT, (US Bank N.A. LOC),
3.950% 10/01/30**................ 5,500
----------
16,900
----------
NEW MEXICO -- 0.4%
5,900 Dona Ana County, New Mexico IDR,
(Foamex Products, Inc. Project)
Series 1985, (Bank of
Nova Scotia LOC),
3.900% 11/01/13**#............... 5,900
----------
NORTH CAROLINA -- 1.9%
10,000 North Carolina Medical Care
Commission Retirement Community
Revenue, Series 1996, (Lasalle
National Bank LOC),
3.950% 11/15/09**................ 10,000
9,900 North Carolina Medical Care
Community Health Care Facilities
Revenue, (Randolph Hospital Inc.
Project), Series 1999, (Wachovia
Bank N.A. LOC),
3.900% 03/01/24**#............... 9,900
800 North Carolina Medical Care
Community Hospital Revenue,
(Moses H. Cone Memorial Hospital
Project) Series 1995, (Wachovia
Bank SBPA),
3.950% 09/01/02**................ 800
8,500 Robeson County, North Carolina
Industrial Facilities and PCR
Financing Authority Revenue,
(Culp Inc. Project) Series 1997,
AMT, (Wachovia Bank of North
Carolina LOC),
4.000% 06/01/14**#............... 8,500
----------
29,200
----------
OHIO -- 2.0%
920 Centerville, Ohio Health Care
Revenue, (Bethany Lutheran
Village Hospital Project) Series
1994, (PNC Bank of Ohio, N.A.
LOC),
4.000% 11/01/13**#............... 920
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
OHIO -- (CONTINUED)
$ 5,000 Clinton County, Ohio Airport
Facilities Revenue Refunding,
(Wilmington Air Park, Inc.
Project) Series 1991, (Wachovia
Bank of North Carolina LOC),
3.950% 06/01/11**#............... $ 5,000
855 Cuyahoga County, Ohio IDR
Refunding, (Pleasant Lakes
Associates Project) Series 1995,
(Key Bank, N.A. LOC),
4.000% 05/01/11**#............... 855
895 Greene County, Ohio IDR, (FC,
Ltd. - AFC Stamping Project)
Series 1995, AMT, (Key Bank, N.A.
LOC),
4.150% 09/01/16**#............... 895
10,000 Lucas County, Ohio Facilities
Improvement Revenue, (Toledo
Zoological Society Project)
Series 1997, (Key Bank, N.A.
LOC),
3.900% 10/01/05**#............... 10,000
1,860 Lucas County, Ohio IDR, (Dynamic
Dies, Inc. Project) Series 1997,
AMT, (National City Bank LOC),
4.100% 07/01/09**................ 1,860
2,279 Ohio Housing Finance Agency Multi-
Family Housing Revenue, (Kenwood
Congregation - Retirement
Project) Series 1985, (Morgan
Guaranty Trust LOC),
3.950% 12/01/15**................ 2,279
5,000 Ohio State Air Quality Development
Authority Revenue Refunding,
(Ohio Edison Project) Series
1988A, (Toronto Dominion Bank
LOC),
4.100% 02/01/15.................. 4,996
2,000 Ohio State Water Development
Authority Solid Waste Disposal
Revenue, (The Timken Company
Project) Series 1997, AMT,
(Wachovia Bank of North Carolina
LOC),
3.950% 07/01/32**................ 2,000
1,050 Summit County, Ohio IDR, (Oliver
Printing Company, Inc. Project)
Series 1997, AMT, (Bank One of
Akron, N.A. LOC),
4.100% 02/01/07**#............... 1,050
1,040 Toledo-Lucas County, Ohio Port
Authority Facilities Improvement
Revenue, (YMCA of Greater Toledo
Project) Series 1996, (Fifth
Third Bank of Northwestern Ohio
LOC),
3.900% 12/01/21**#............... 1,040
----------
30,895
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
OKLAHOMA -- 0.2%
$ 3,100 Oklahoma State Industrial Authority
Revenue Refunding, (Integris
Baptist Medical Center Inc.
Project), Series 1999B, (MBIA
Insured, Morgan Guaranty SBPA),
3.950% 08/15/29**................ $ 3,100
----------
OREGON -- 0.1%
2,100 Port of Portland, Oregon Special
Obligation Revenue, (Horizon Air
Industries, Inc. Project) Series
1997, AMT, (Bank of Montreal
LOC),
4.100% 06/15/27**................ 2,100
----------
PENNSYLVANIA -- 3.8%
7,300 Delaware County, Pennsylvania
Industrial Development Authority
PCR, (BP Exploration and Oil,
Inc. Project) Series 1985, (BP
Amoco
plc Guarantee),
4.000% 12/01/09**................ 7,300
1,100 Delaware County, Pennsylvania,
Industrial Development Authority,
PCR, (BP Exploration and Oil Inc.
Project) Series 1995,
4.000% 10/01/19**................ 1,100
2,790 Elk County, Pennsylvania Industrial
Development Authority Revenue,
(Clarion Sintered Metals Project)
Series 1998, AMT, (PNC Bank,
N.A. LOC),
4.100% 03/01/09**#............... 2,790
9,200 Emmaus, Pennsylvania General
Authority Revenue, Series 1989B,
(Bayerische Landesbank LOC),
3.900% 03/01/24**................ 9,200
6,270 Hatfield Township, Pennsylvania
Industrial Development Authority
Revenue, (H&N Packaging Project)
Series 1999A, AMT, (Commerzbank
LOC),
4.100% 04/01/19**#............... 6,270
2,590 Pennsylvania Energy Development
Authority Revenue, (B&W Ebensburg
Project), Series 1986, AMT,
(Landesbank Hessen-Thueringen
Girozentrale LOC),
3.900% 12/01/11**................ 2,590
10,500 Philadelphia, Pennsylvania
Redevelopment Authority Revenue,
(Southwark Plaza, LP Project)
Series 1997A, (PNC Bank, N.A.
LOC),
4.000% 12/01/03**................ 10,500
14,700 Quakertown, Pennsylvania General
Authority Revenue, (Pooled
Financing Program) Series 1996A,
(PNC Bank, N.A. LOC),
4.000% 07/01/26**................ 14,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
PENNSYLVANIA -- (CONTINUED)
$ 1,760 Schuylkill County, Pennsylvania
Industrial Development Authority
Revenue, (Bon-Ton Stores Project)
Series 1992, AMT, (PNC Bank, N.A.
LOC),
4.100% 02/01/12**#............... $ 1,760
1,240 Schuylkill County, Pennsylvania
Industrial Development Authority
Revenue, (S. Grumbacher and Son
Project) Series 1990, (PNC Bank,
N.A. LOC),
4.000% 02/01/12**#............... 1,240
----------
57,450
----------
SOUTH CAROLINA -- 5.3%
4,000 Anderson County, South Carolina
IDR, (Mikron Corporation Project)
Series 1998, AMT, (UBS AG LOC),
4.100% 11/01/12**#............... 4,000
6,000 Berkeley County, South Carolina
Exempt Facilities Industrial
Revenue, (Amoco Chemical
Corporation Project) Series 1997,
AMT, (Amoco
Corporation Guarantee),
4.050% 04/01/27**................ 6,000
24,000 Charleston County, South Carolina
School District BAN, Series 1999,
4.000% 05/01/00.................. 24,008
1,000 Cherokee County, South Carolina
Industrial Revenue Refunding,
(Holmberg Electronic Corporation
Project) Series 1989, (Wachovia
Bank of North Carolina, N.A.
LOC),
4.300% 11/01/04**#............... 1,000
5,000 Greenville County, South Carolina
Industrial Revenue, (Edgcomb
Metals Company Project) Series
1984, (Wells Fargo Bank LOC),
3.900% 08/01/09**#............... 5,000
1,620 South Carolina Jobs Economic
Development Authority Development
Revenue, (Spartanburg YMCA
Project) Series 1996, (First
Union
National Bank LOC),
3.950% 06/01/18**#............... 1,620
3,100 South Carolina Jobs Economic
Development Authority Health
Facilities Revenue, (Greenville
Baptist Retirement Community
Project) Series 1997, (Wachovia
Bank of
North Carolina LOC),
3.950% 10/01/19**#............... 3,100
3,500 South Carolina Jobs Economic
Development Authority IDR, (Banks
Construction Company Project)
Series 1999, AMT, (Wachovia Bank
N.A. LOC),
4.050% 05/01/09**#............... 3,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 700 South Carolina Jobs Economic
Development Authority IDR,
(Chambers Oakridge Landfill
Project) Series 1990, AMT,
(Morgan Guaranty Trust LOC),
4.000% 12/01/01**#............... $ 700
30,000 South Carolina Jobs Economic
Development Authority Revenue,
P-Floats-PT328, (St. Francis
Hospital-Bon Secours Project),
Series 1999, (Merrill Lynch
Guarantee,
Merrill Lynch SBPA),
4.110% 01/01/01**##(++).......... 30,000
700 York County, South Carolina PCR,
(National Rural Utilities
Cooperative - North Carolina
Electricities Project) Series
1984N-2, (CFC Insured),
3.950% 09/15/14**................ 700
----------
79,628
----------
SOUTH DAKOTA -- 0.0%
630 South Dakota Economic Development
Financing Authority IDR
Refunding, (Lomar Development
Company Project) Series 1996B,
AMT, (US Bank, N.A. LOC),
4.200% 08/01/08**#............... 630
----------
TENNESSEE -- 5.9%
8,500 Bristol, Tennessee Health and
Education Facilities Revenue,
Series 1995A, (FGIC Insured,
Citibank SBPA),
3.950% 02/28/14**##(++).......... 8,500
26,900 Chattanooga-Hamilton County,
Tennessee Hospital Authority
Revenue Refunding, (Erlanger
Medical Center Project) Series
1987, (Morgan Guaranty Trust
LOC),
4.000% 10/01/17**................ 26,900
2,000 Dickson County, Tennessee
Industrial Development Board
Revenue, (The Jackson
Foundation-Renaissance Learning
Center Project) Series 1997,
(SunTrust Bank of Nashville LOC),
3.950% 11/01/12**#............... 2,000
6,485 Franklin County, Tennessee Health
and Educational Facilities Board
Revenue, (University of the South
Project) Series 1998B, (AmSouth
Bank of Alabama LOC),
3.900% 09/01/18**................ 6,485
1,190 Jefferson City, Tennessee IDR, (BA
Properties Project) Series 1994,
AMT, (American National Bank &
Trust Company LOC),
4.000% 11/01/24**................ 1,190
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
TENNESSEE -- (CONTINUED)
$ 7,420 Memphis, Tennessee Center City
Revenue Finance Corporation
Multi-Family Housing Revenue,
(Riverset Apartments) Series
1998PT-1019, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
4.140% 10/01/19**##(++).......... $ 7,420
9,110 Metropolitan Government Nashville
and Davidson County, Tennessee
Health and Education Facilities
Board Revenue, (Adventist/Sunbelt
Retirement Project) Series 1996A,
(SunTrust Bank Central Florida
LOC),
3.950% 11/15/26**................ 9,110
2,900 Metropolitan Nashville, Tennessee
Airport Authority Special
Facilities Revenue, (American
Airlines, Inc. Project) Series
1995A, (Credit Suisse First
Boston LOC),
4.100% 10/01/12**................ 2,900
4,400 Metropolitan Nashville, Tennessee
Airport Authority Special
Facilities Revenue, (American
Airlines, Inc. Project) Series
1995B, (Bayerische
Landesbank LOC),
4.100% 10/01/12**................ 4,400
3,700 Monroe County, Tennessee Industrial
Development Board IDR, (American
Transit Corporation Project)
Series 1986, (BankBoston LOC),
4.000% 08/01/06**#............... 3,700
1,500 Springfield, Tennessee Industrial
Development Board Revenue, (All
American Homes of Tennessee
Project) Series 1994, AMT, (Bank
One of Michigan LOC),
4.100% 11/01/09**#............... 1,500
14,400 Tennessee Volunteer State Student
Funding Corporation Student Loan
Revenue, Series 1998A-2, AMT,
(State Street Bank and Trust
LOC),
3.950% 12/01/23**................ 14,400
----------
88,505
----------
TEXAS -- 11.9%
16,180 Dallas-Fort Worth, Texas
International Airport Facility
Revenue, (Airport Facilities
Flight safety Project) Series
1999, AMT, (OBH,
Inc. Guarantee),
4.050% 07/01/32**#............... 16,180
6,700 Grand Prairie, Texas Housing
Finance Multi-Family Housing
Revenue, Series 1993, (General
Electric Credit Corporation
Guarantee),
3.900% 06/01/10**................ 6,700
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 2,300 Grapevine, Texas Industrial
Development Corporation Airport
Revenue, (Southern Air
Transportation Project) Series
1993, (Bank One Texas N.A. LOC),
3.950% 03/01/10**................ $ 2,300
1,200 Grapevine, Texas Industrial
Development Corporation Revenue,
(American Airlines, Inc. Project)
Series 1984A-2, (Morgan Guaranty
Trust LOC),
4.100% 12/01/24**................ 1,200
3,100 Grapevine, Texas Industrial
Development Corporation Revenue,
(American Airlines, Inc. Project)
Series 1984B-3, (Morgan Guaranty
Trust LOC),
4.100% 12/01/24**................ 3,100
1,200 Grapevine, Texas Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984A-4, (Bayerische
Landesbank LOC),
4.100% 12/01/24**................ 1,200
4,100 Guadalupe-Blanco, Texas River
Authority Revenue Refunding,
(Central Power & Light Company
Project) Series 1995, (ABN AMRO
Bank N.V. LOC),
4.000% 11/01/15**................ 4,100
7,600 Gulf Coast, Texas Industrial
Development Authority Marine
Terminal Revenue, (Amoco Oil
Company Project) Series 1993,
AMT, (BP Amoco plc Guarantee),
4.050% 04/01/28**................ 7,600
3,400 Gulf Coast, Texas Waste Disposal
Authority PCR, (Amoco Oil Company
Project) Series 1994, AMT, (BP
Amoco plc Guarantee),
4.050% 06/01/24**................ 3,400
4,000 Gulf Coast, Texas Waste Disposal
Authority Texas Environmental
Facilities Revenue, (Amoco Oil
Company Project) Series 1997,
AMT, (BP Amoco plc Guarantee),
4.050% 01/01/26**................ 4,000
3,600 Harris County, Texas Health
Facilities Development Revenue,
(Methodist Hospital Project)
Series 1994, (Morgan Guaranty
Trust SBPA, Methodist Hospital
SBPA),
3.950% 12/01/25**................ 3,600
500 Lone Star, Texas Airport
Improvement Authority Revenue,
(American Airlines, Inc. Project)
Series 1984A-2, (Royal Bank of
Canada LOC),
4.100% 12/01/14**................ 500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 500 Lone Star, Texas Airport
Improvement Authority Revenue,
(American Airlines, Inc. Project)
Series 1984A-4, (Royal Bank of
Canada LOC),
4.100% 12/01/14**................ $ 500
900 Lone Star, Texas, Airport
Improvement Authority Revenue,
(American Airlines, Inc. Project)
Series 1984B-5, (Royal Bank of
Canada LOC),
4.100% 12/01/14**................ 900
3,500 McAllen, Texas Health Facilities
Development Revenue, (McAllen
Associates Number One Project)
Series 1984, (PNC Bank, N.A.
LOC),
4.000% 12/01/24**................ 3,500
1,200 Nueces County, Texas Health
Facilities Development
Corporation Revenue, (Driscoll
Foundation Childrens Hospital
Project) Series 1985, (Bank One
of Texas, N.A. LOC),
3.950% 07/01/15**................ 1,200
3,300 Panhandle-Plains, Texas Higher
Education Authority Student Loan
Revenue, Series 1991B, AMT,
(Student Loan Marketing
Guarantee),
3.900% 06/01/21**................ 3,300
5,000 Panhandle-Plains, Texas Higher
Education Authority Student Loan
Revenue, Series 1997Y, AMT,
(Student Loan Marketing
Guarantee),
3.900% 10/01/02**................ 5,000
6,000 Port of Corpus Christi, Texas
Industrial Development
Corporation Environmental
Facilities Revenue, (Citgo
Petroleum Corporation Project)
Series 1998, AMT, (Bank One
Oklahoma N.A. LOC),
4.100% 08/01/28**................ 6,000
4,650 Sabine River Authority, Texas PCR
Refunding, (Texas Utilities
Electric Company Project) Series
1996, (AMBAC Insured, Bank of
New York SBPA),
4.000% 03/01/26**................ 4,650
500 Sabine River Authority, Texas PCR,
(Texas Utilities Electric Company
Project) Series 1995A, AMT,
(Morgan Guaranty Trust LOC),
4.100% 04/01/30**................ 500
8,000 Sulphur Springs, Texas IDR, (Hon
Industries Inc., Project) Series
1985, (Northern Trust Company
LOC),
3.950% 12/01/13**#............... 8,000
30,000 Texas Municipal Gas Corporation Gas
Reserves Revenue, Sr. Lien,
Series 1998, (FSA Insured,
Societe Generale SBPA),
3.850% 01/15/23**................ 30,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 60,000 Texas State TRAN, Series 1999A,
4.500% 08/31/00.................. $ 60,192
1,000 Trinity River, Texas Industrial
Development Authority Revenue,
(Toys R Us - Nytex Inc. Project)
Series 1984, (Bankers Trust
Company LOC),
4.025% 11/01/14**#............... 1,000
----------
178,622
----------
UTAH -- 0.9%
9,900 Intermountain Power Agency,
Municipal Trust Receipts, Utah
Power Supply Revenue, Series
1996CMC4, (FSA Insured, Chase
Manhattan SBPA),
3.950% 07/01/03**#(++)........... 9,900
3,200 West Valley City, Utah Industrial
Development Authority Revenue,
(Johnson Matthey Inc. Project)
Series 1987, (HSC Bank of USA
LOC),
3.950% 12/01/11**................ 3,200
----------
13,100
----------
VERMONT -- 1.2%
7,455 Vermont Educational and Health
Buildings Financing Agency
Revenue, (Middlebury College
Project) Series 1988A,
3.850% 11/01/00**................ 7,455
10,300 Vermont Industrial Development
Authority Revenue, (Ryegate Wood
Energy Company Project) Series
1990, AMT, (ABN AMRO Bank N.V.
LOC),
3.950% 12/01/15**................ 10,300
----------
17,755
----------
VIRGINIA -- 1.8%
5,600 Albemarle County, Virginia
Industrial Development Authority
Health Services Revenue,
(University of Virginia Health
Services Foundation Project)
Series 1996, (First Union
National Bank LOC),
3.900% 02/01/26**................ 5,600
6,825 Madison County, Virginia Industrial
Development Authority Revenue,
(Madison Wood Preservers Project)
Series 1998, AMT, (Wachovia Bank
of North Carolina LOC),
4.050% 06/01/13**#............... 6,825
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 13,080 Virginia Beach, Virginia
Development Authority
Multi-Family Housing Revenue,
(Briawood Apartments) Series
1999, (Merrill Lynch Guarantee,
Merrill Lynch SBPA)
4.110% 04/01/23**##(++).......... $ 13,080
1,075 Winchester, Virginia Industrial
Development Authority Revenue,
(Midwesco Filter Resource, Inc.
Project) Series 1995, (Harris
Trust &
Savings Bank LOC),
4.200% 08/01/07**................ 1,075
----------
26,580
----------
WASHINGTON -- 0.2%
700 Port of Skagit County, Washington
Industrial Development
Corporation Revenue, (Cascade
Clear Water Company Project)
Series 1995, AMT, (Key Bank N.A.
LOC),
4.200% 12/01/20**#............... 700
2,000 Washington State Housing Finance
Commission Single-Family Housing
Revenue, Series 1999, (Bayerische
Hypotheken GIC),
3.800% 10/10/00**................ 2,000
----------
2,700
----------
WEST VIRGINIA -- 0.7%
800 Ohio County, West Virginia IDR,
(Ohio Valley - Clarksburg Drug
Company Project) Series 1986,
AMT, (PNC Bank of Ohio, N.A.
LOC),
4.100% 12/01/01**#............... 800
10,000 Pleasants County, West Virginia
County Commission IDR, (Simex,
Inc. Building Project) Series
1999, AMT, (PNC Bank N.A. LOC),
4.100% 12/01/19**................ 10,000
----------
10,800
----------
WISCONSIN -- 3.7%
13,500 Kenosha, Wisconsin Unified School
District No. 001 TRAN, Series
1999A, (Monumental Life GIC),
4.150% 10/06/00..................
13,527
8,000 Menomonee Falls, Wisconsin School
District TRAN, Series 1999,
4.200% 08/26/00.................. 8,011
11,000 Mequon and Thiensville GO,
Wisconsin School District TRAN,
Series 1999,
4.200% 09/29/00.................. 11,018
880 Milwaukee, Wisconsin IDR, (Mandel
Company Project) Series 1997,
AMT, (US Bank, N.A. LOC),
4.200% 04/01/07**................ 880
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
WISCONSIN -- (CONTINUED)
$ 4,300 Pleasant Prairie, Wisconsin IDR,
(Nucon Corporation Project)
Series 1995, AMT, (American
National Bank & Trust Company
LOC),
4.000% 02/01/22**#............... $ 4,300
3,750 Sun Prairie, Wisconsin Area School
District TRAN, Series 1999,
4.000% 08/23/00.................. 3,755
14,270 Wisconsin State Health and
Educational Facilities Authority
Revenue, (St. Luke's Medical
Center Project) Series 1987,
(First National Bank of Chicago
LOC),
3.950% 12/01/17**#............... 14,270
----------
55,761
----------
WYOMING -- 0.1%
1,200 Lincoln County, Wyoming PCR, (Exxon
Project) Series 1984D,
3.950% 11/01/14**................ 1,200
----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $1,504,304).................. 1,504,304
----------
<CAPTION>
SHARES
(000)
---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.0%++
50 AIM Tax-Exempt Fund................ 50
25 Federated Tax-Exempt Money Market
Fund............................. 25
----------
TOTAL INVESTMENT COMPANIES
(Cost $75)......................... 75
----------
TOTAL INVESTMENTS
(Cost $1,504,379*).......... 99.6% 1,504,379
----------
OTHER ASSETS AND
LIABILITIES (NET)......... 0.4%
Cash............................... $ 46
Receivable for Fund shares sold.... 1,865
Interest receivable................ 9,197
Receivable from investment
advisor.......................... 5
Administration fee payable......... (26)
Shareholder servicing and
distribution fees payable........ (376)
Distributions payable.............. (4,299)
Accrued Trustees'/Directors' fees
and expenses..................... (25)
Accrued expenses and other
liabilities...................... (164)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................ 6,223
----------
NET ASSETS.................. 100.0% $1,510,602
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
(000)
------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................. $ (187)
Paid-in capital.................... 1,510,789
----------
NET ASSETS......................... $1,510,602
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($172,693,421 / 172,886,304
shares outstanding).............. $1.00
-----
-----
TRUST CLASS SHARES:
($526,831,089 / 526,829,335
shares outstanding).............. $1.00
-----
-----
LIQUIDITY CLASS SHARES:
($89,049,862 / 89,049,744
shares outstanding).............. $1.00
-----
-----
ADVISER CLASS SHARES:
($77,511,378 / 77,569,295
shares outstanding).............. $1.00
-----
-----
INVESTOR CLASS SHARES:
($64,782,256 / 64,827,479
shares outstanding).............. $1.00
-----
-----
MARKET CLASS SHARES:
($148,999,851 / 149,000,010
shares outstanding).............. $1.00
-----
-----
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<C> <S> <C> <C>
DAILY CLASS SHARES:
($429,643,655 / 429,649,886
shares outstanding).............. $1.00
-----
-----
SERVICE CLASS SHARES:
($1,000,010 / 1,000,010
shares outstanding).............. $1.00
-----
-----
INVESTOR B SHARES:
($90,854 / 90,854
shares outstanding).............. $1.00
-----
-----
</TABLE>
---------------
* Aggregate cost for Federal tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at March 31, 2000. These securities are subject to demand features of
either one, seven or thirty days.
(++) Restricted security (Note 5).
# Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
++ Amount represents less than 0.1%.
Nations Municipal Reserves Fund had the following industry concentrations
greater than 10% at March 31, 2000 (as a percentage of net assets):
HealthCare Revenue 18.3%
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 99.4%
CALIFORNIA -- 93.9%
$ 7,740 Alameda County, California Corridor
Transportation Authority Revenue,
Series 1999CMC-1,
3.450% 04/01/07**##................ $ 7,740
1,685 Alameda County, California Industrial
Development Authority Revenue,
(Adeline Association Project)
Series 1997A, AMT,
3.400% 11/01/27**.................. 1,685
1,075 Alameda County, California Industrial
Development Authority Revenue,
(Plyproperties Project)
Series 1997A, AMT,
3.400% 05/01/27**.................. 1,075
1,800 Alameda County, California Industrial
Development Authority Revenue,
Series 1998, AMT,
3.400% 03/01/28**.................. 1,800
10,000 Alameda County, California Public
Financing Authority Revenue,
(Alameda Point and Improvement
Project) Series 1999A,
3.200% 09/01/12**.................. 10,000
3,000 Anaheim, California Housing Authority
Multi-Family Housing Revenue
Refunding, (Park Vista Apartments)
Series 1993A,
3.300% 12/15/23**.................. 3,000
5,500 Anaheim, California Unified High
School District Certificates of
Participation, (School Faculty
Bridging Funding Project) Series
1999, (FSA Insured, First Union
National Bank SBPA),
3.250% 09/01/13**.................. 5,500
1,400 California Department of Water
Resources, Water Revenue, Series 1,
3.350% 06/07/00.................... 1,400
3,037 California Department of Water
Resources, Water Revenue, Series 1,
3.450% 07/13/00.................... 3,037
20,000 California GO,
2.750% 04/10/00.................... 20,000
20,000 California GO,
2.750% 05/11/00.................... 20,000
25,000 California GO,
2.700% 05/17/00.................... 25,000
15,100 California GO,
3.500% 04/01/04**(++).............. 15,100
10,000 California GO,
3.460% 02/01/06**##................ 10,000
8,380 California GO,
3.460% 10/01/24**##................ 8,380
17,000 California Golden Empire Schools
Financing Authority Lease Revenue,
(Kern High School District Project)
Series 1999, (Canadian Imperial
Bank of Commerce LOC),
3.200% 08/01/29**.................. 17,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$10,995 California Health Facilities Finance
Authority Revenue, Series
1998CMC-6,
3.450% 12/01/07**##................ $ 10,995
6,365 California Health Facilities Finance
Authority Revenue, Series 1999,
3.860% 12/01/25**##................ 6,365
3,250 California Health Facilities
Financing Authority Revenue,
(Adventist Health Systems Project)
Series 1998A,
3.450% 09/01/28**.................. 3,250
4,100 California Health Facilities
Financing Authority Revenue,
(Adventist Health Systems Project)
Series 1998B,
3.450% 09/01/28**.................. 4,100
5,050 California Health Facilities
Financing Authority, Revenue
Refunding, (St. Joseph Health
Systems Project)
Series 1985A,
3.450% 07/01/12**.................. 5,050
11,950 California Housing Finance Agency
Housing Revenue,
3.610% 08/01/10**##................ 11,950
2,000 California Housing Finance Agency
Multi-Unit Rental Housing Revenue,
Series 1992A, (MBIA Insured),
3.800% 08/01/07**.................. 2,000
3,145 California Housing Finance Agency
Multi-Unit Rental Housing Revenue,
Series 1992A, (MBIA Insured),
3.800% 08/01/08**.................. 3,145
3,545 California Housing Finance Agency
Revenue, Series 1993PA-58,
3.360% 02/01/24**##................ 3,545
18,210 California Housing Finance Agency,
(Single-Family Mortgage Program)
Series 1999E-II, AMT,
3.400% 08/01/00.................... 18,210
14,500 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1996B, AMT, (Rabobank
Nederland LOC),
3.250% 12/01/16**.................. 14,500
10,600 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1996F, (Banque Nationale de
Paris LOC),
3.450% 11/01/26**.................. 10,600
2,100 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1997A, (Toronto Dominion
Bank LOC),
3.450% 12/01/18**.................. 2,100
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 8,700 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1997B, AMT, (Deutsche Bank
A.G. LOC),
3.400% 11/01/26**.................. $ 8,700
91,600 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1997C, AMT, (KBC Bank N.V.
LOC),
3.500% 11/01/26**.................. 91,600
7,000 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985B,
3.150% 03/01/08**.................. 7,000
4,200 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985B,
3.350% 03/01/08**.................. 4,200
15,100 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985B,
3.400% 03/01/08**.................. 15,100
20,000 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985C,
3.100% 03/01/08**.................. 20,000
3,500 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985C,
3.100% 03/01/08**.................. 3,500
13,350 California Pollution Control
Financing Authority PCR, (Southern
California Edison Project) Series
1985D,
3.250% 03/01/08**.................. 13,350
24,000 California Pollution Control
Financing Authority Resource
Recovery Revenue, (Atlantic
Richfield Company Project) Series
1994A,
3.400% 12/01/24**.................. 24,000
1,800 California Pollution Control
Financing Authority Solid Waste
Disposal Revenue, (Santa Clara
Valley Industries Project) Series
1998A, AMT,
3.400% 03/01/18**.................. 1,800
3,600 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1996A, AMT, (UBS AG LOC),
3.250% 12/01/16**.................. 3,600
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$19,970 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project)
Series 1996G,
3.400% 02/01/16**.................. $ 19,970
3,000 California Pollution Control
Financing Authority, PCR Refunding,
(Shell Oil Company Project) Series
1991A,
3.400% 10/01/09**.................. 3,000
5,700 California Pollution Control
Financing Authority, PCR Refunding,
(Shell Oil Company Project) Series
1991C,
3.400% 11/01/00**.................. 5,700
3,790 California Pollution Control
Financing Authority, PCR, (Chevron
USA, Inc. Project) Series 1984,
3.100% 05/15/02**.................. 3,790
1,000 California Pollution Control
Financing Authority, PCR, (Pacific
Gas & Electric Corporation Project)
Series 1996, (Morgan Guaranty Trust
LOC),
3.650% 11/01/26**.................. 1,000
3,875 California Pollution Control
Financing Authority, Resource
Recovery PCR, (Delano Project)
Series 1990, AMT, (ABN-AMRO Bank
N.V. LOC),
3.500% 08/01/19**.................. 3,875
2,400 California Pollution Control
Financing Authority, Resource
Recovery PCR, (Delano Project)
Series 1990, AMT, (ABN-AMRO Bank
N.V. LOC),
3.500% 08/01/19**.................. 2,400
5,200 California Pollution Control
Financing Authority, Resource
Recovery PCR, (Delano Project)
Series 1991, AMT,
3.500% 08/01/19**.................. 5,200
17,270 California State Department of Water
Resources,
3.460% 12/01/29**.................. 17,270
1,100 California State Economic Development
Financing Authority IDR, (Calco LLC
Project) Series 1997, (Wells Fargo
Bank N.A. LOC),
3.350% 04/01/27**.................. 1,100
1,950 California State Economic Development
Financing Authority IDR, (Volk
Enterprises, Inc. Project) Series
1996, (Harris Trust & Savings Bank
LOC),
3.200% 06/01/21**.................. 1,950
8,385 California State Floating Rate
Receipts,
Series 1997SG-95,
3.360% 09/01/16**##................ 8,385
35,000 California State GO, Floating Rate
Receipts, Series 1998PT-1072,
3.360% 02/01/21**.................. 35,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 3,975 California State GO, Municipal Trust
Receipts, Series 1996SGB-7, (FGIC-
TCRS Insured),
3.460% 09/01/21**##................ $ 3,975
15,950 California State GO, Municipal Trust
Receipts, Series 1997SGA-54, (AMBAC
Insured, Societe Generale SBPA),
3.530% 06/01/21**##................ 15,950
2,300 California Statewide Communities
Development Authority Certificates
of Participation, (University
Retirement Community at Davis
Project)
Series 1998, (Bank of Scotland
LOC),
3.450% 11/15/28**.................. 2,300
1,000 California Statewide Communities
Development Authority Lease
Revenue, Floating Rate Receipts,
Series 1999PA-457,
3.610% 10/01/33**(++).............. 1,000
4,600 California Statewide Communities
Development Authority Multi-Family
Housing Revenue, (Pittsburg Plaza
Apartments) Series 1997K, AMT,
3.250% 09/01/27**.................. 4,600
1,000 California Statewide Communities
Development Authority Multi-Family
Revenue, (Greenback Manor
Apartments Project)
Series 1998A, AMT,
3.250% 02/01/28**.................. 1,000
6,240 California Statewide Communities
Development Authority Multi-Family
Revenue, Floating Rate Receipt,
Series 1999PT-1161,
3.610% 12/01/41**##................ 6,240
2,500 California Statewide Communities
Development Authority Revenue
Certificates of Participation, (St.
Joseph Health Systems Project)
Series 1993,
3.200% 07/01/08**.................. 2,500
8,000 California Statewide Communities
Development Authority Solid Waste
Facilities Revenue, (Chevron USA
Inc. Project) Series 1994, AMT,
(GTY-AGMT, Chevron Corporation),
3.400% 12/15/24**.................. 8,000
25,940 California Statewide Communities
Development Authority Special
Facilities Revenue, Series 1999,
3.610% 10/01/34**(++).............. 25,940
2,120 California Statewide Communities
Development Authority,
5.400% 10/01/00.................... 2,137
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 7,000 California Statewide Communities
Development Authority, Certificates
of Participation, (St. Joseph's
Health Systems Project) Series
1994,
3.450% 07/01/24**.................. $ 7,000
900 California Statewide Communities
Development Authority, Certificates
of Participation, (Sutter Health
Obligation Group Project) Series
1995,
3.400% 07/01/15**.................. 900
7,800 California, Health Facilities
Financing Authority, Revenue, (St.
Joseph's Health Systems Project),
Series 1991B,
3.450% 07/01/09**.................. 7,800
2,000 California, Health Facilities
Financing Authority, Revenue, (St.
Joseph's Healthcare Systems
Project)
Series 1985B,
3.450% 07/01/13**.................. 2,000
1,800 Camarillo, California Multi-Family
Housing Revenue, (Ponderosa Senior
Housing-Heritage Park)
Series 1989A, AMT, (FNMA Collateral
Agreement),
3.250% 07/15/19**.................. 1,800
25,420 Castaic Lake, California Water Agency
Certificates of Participation,
(Water Systems Improvement Project)
Series 1990,
7.350% 08/01/00.................... 26,241
21,000 Chula Vista, California IDR, (San
Diego Gas & Electric Company
Project)
Series 1992C, AMT,
3.300% 08/08/00**.................. 21,000
3,300 Chula Vista, California IDR, (San
Diego Gas and Electric Company
Project)
Series 1996B, AMT,
3.750% 12/01/21**.................. 3,300
3,000 Chula Vista, California Industrial
Development Revenue,
Series 1992C, AMT,
3.050% 12/01/27**.................. 3,000
7,040 Chula Vista, California Multi-Family
Housing Revenue, (Terra Nova
Project) Series 1992A, (Dresdner
Bank AG LOC),
3.150% 03/01/05**.................. 7,040
8,230 Contra Costa County, California
Multi-Family Housing Revenue,
Series 1999,
3.610% 12/01/41**##................ 8,230
3,020 Duarte, California Certificates of
Participation, (Hope National
Medical Center Project) Series
1993,
5.500% 04/01/00.................... 3,020
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 4,185 Eastern Municipal Water District,
California Water and Sewer Revenue
Certificates of Participation,
Series 1993B, (FGIC Insured),
3.150% 07/01/20**.................. $ 4,185
9,665 Fremont, California Multi-Family
Housing Revenue, (Mission Wells
Project) Series 1985E,
3.250% 09/01/14**.................. 9,665
15,800 Hayward, California Multi-Family
Housing Revenue, (Shorewood
Project) Series 1984A, (FGIC
Insured),
3.150% 08/01/14**.................. 15,800
4,760 Indio, California Multi-Family
Housing Revenue, (Western Federal
Savings Project) Series 1985,
(Wells Fargo and Company LOC),
3.300% 06/01/05**.................. 4,760
1,800 Irvine Ranch, California Water
District Revenue, Series 1985,
3.400% 10/01/05**.................. 1,800
1,800 Irvine Ranch, California Water
District Revenue, Series 1985,
(Landesbank Hessen-Thueringen LOC),
3.400% 10/01/10**.................. 1,800
3,500 Irvine Ranch, California Water
District Revenue, Series 1991,
3.400% 08/01/16**.................. 3,500
15,000 Irvine Ranch, California, Water
District, GO, (Capital Improvement
District Project) Series 1989,
3.600% 06/01/15**.................. 15,000
3,300 Irvine, California Revenue
Improvement Bond Act of 1915,
(Assessment District No. 87-8
Project) Series 1999,
3.400% 09/02/24**.................. 3,300
1,200 Irvine, California Special Assessment
Improvement Bond Act 1915,
(Assessment District No. 89
Project)
Series 1990-10, (National
Westminster LOC),
3.400% 09/02/15**.................. 1,200
13,000 Long Beach, California GO,
3.610% 05/15/15**##................ 13,000
18,400 Long Beach, California Harbor
Revenue,
Series 1994A, AMT,
3.450% 03/04/23**.................. 18,400
9,995 Long Beach, California Revenue,
Municipal Securities Trust
Receipts,
Series 1998CMC-1,
3.550% 05/15/07**##................ 9,995
10,060 Los Angeles County, California
Capital Asset Lease Corporation,
Revenue,
3.200% 06/05/00**.................. 10,060
18,250 Los Angeles County, California
Certificates of Participation,
(Schools Pooled Financing Program)
Series 1999A, (FSA Insured),
4.000% 06/30/00.................... 18,288
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 5,500 Los Angeles County, California
Metropolitan Transportation
Authority Revenue, Series
1996SGB-3, (FSA Insured),
3.460% 07/01/16**##................ $ 5,500
2,100 Los Angeles County, California
Metropolitan Transportation
Authority Sales Tax Revenue, Series
1996-54,
3.360% 07/01/17**##................ 2,100
13,355 Los Angeles County, California
Metropolitan Transportation
Authority Sales Tax Revenue,
Series 1998CMC-2,
3.450% 07/01/07**##................ 13,355
8,700 Los Angeles County, California
Pension Obligation Revenue
Refunding,
Series 1996B, (AMBAC Insured, Dexia
Credit Local de France SPA),
3.190% 06/30/07**.................. 8,700
5,400 Los Angeles County, California
Pension Obligation Revenue
Refunding,
Series 1996C, (AMBAC Insured, Bank
of Nova Scotia SPA),
3.150% 06/30/07**.................. 5,400
8,900 Los Angeles County, California
Transportation Commission Sales Tax
Revenue Refunding, Series 1992A,
(FGIC Insured, Bayerische
Landesbank SPA),
3.150% 07/01/12**.................. 8,900
50,000 Los Angeles, California Department of
Water and Power, Electric Plant
Revenue, Series 2000B-2,
3.300% 02/01/10**.................. 50,000
15,000 Los Angeles, California Department of
Water and Power, Electric Plant
Revenue, Series 2000E-2,
3.200% 02/01/10**.................. 15,000
8,000 Los Angeles, California GO TRAN,
Series 1999,
4.000% 06/30/00.................... 8,013
20,000 Los Angeles, California GO TRAN,
Series 1999,
4.000% 06/30/00.................... 20,031
2,000 Los Angeles, California Industrial
Development Authority IDR, (Delta
Tau Data Systems, Inc. Project)
Series 1998, AMT,
3.400% 08/01/23**.................. 2,000
17,700 Los Angeles, California Multi-Family
Housing Revenue, (Fountain Park
Project) Series 1999P, AMT,
3.300% 04/15/33**.................. 17,700
19,200 Los Angeles, California Unified
School District Certificates of
Participation, (Belmont Learning
Complex Project)
Series 1997A, (Commerzbank A.G.
LOC),
3.200% 12/01/17**.................. 19,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 2,000 Los Angeles, California Wastewater
Systems Revenue, Series 1990B,
Prerefunded,
7.150% 06/01/00.................... $ 2,053
21,000 Metropolitan Water District of
Southern California Waterworks
Revenue Refunding, Series 1996A,
(AMBAC Insured),
3.150% 06/01/23**.................. 21,000
4,750 Metropolitan Water District of
Southern California Waterworks
Revenue,
Series 1999,
3.360% 01/01/18**##................ 4,750
3,800 Monterey County, California Financing
Authority Revenue, (Reclamation and
Distribution Projects) Series 1995,
(Dexia Credit Local de France LOC),
3.200% 09/01/36**.................. 3,800
16,500 Mountain View, California
Multi-Family Housing Revenue,
(Mariposa Project)
Series 1985A, (FGIC Insured),
3.150% 03/01/17**.................. 16,500
25,000 Newport Beach, California Revenue,
(Hoag Memorial Hospital Project)
Series 1999B,
3.150% 12/01/29**.................. 25,000
12,400 Orange County, California Apartment
Development Revenue Refunding,
(Aliso Creek Project) Series 1992B,
3.200% 11/01/22**.................. 12,400
11,800 Orange County, California Apartment
Development Revenue Refunding,
(Bluffs Apartments Project)
Series 1999C,
3.250% 12/01/29**.................. 11,800
31,000 Orange County, California Apartment
Development Revenue, (Bear Brand
Apartments Project) Series 1985Z,
(KBC Bank N.V. LOC),
3.200% 11/01/07**.................. 31,000
20,000 Orange County, California Housing
Authority Apartment Development
Revenue Refunding, (Oasis
Martinique Project) Series 1998I,
(FNMA Collateral Agreement),
3.300% 06/15/28**.................. 20,000
3,000 Orange County, California Sanitation
Districts Certificates of
Participation,
Series 1992C, (FGIC Insured),
3.450% 08/01/17**.................. 3,000
4,200 Orange County, California Special
Assessment Improvement Bond,
(Assessment District No. 88
Project)
Series 1988-1, (Societe Generale
LOC),
3.450% 09/02/18**.................. 4,200
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 1,250 Paramount, California Unified School
District Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997,
3.250% 09/01/08**.................. $ 1,250
1,925 Paramount, California Unified School
District Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997,
3.250% 09/01/15**.................. 1,925
1,940 Paramount, California Unified School
District Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997,
3.250% 09/01/27**.................. 1,940
455 Pomona, California Public Financing
Authority Revenue, (Water
Facilities Project) Series 1999AA,
(FSA Insured),
3.500% 05/01/00.................... 455
4,200 Rancho, California Water District
Financing Authority Revenue,
Series 1998A, (FGIC Insured),
3.150% 08/15/29**.................. 4,200
10,000 Regents of the University of
California
3.350% 06/08/00.................... 10,000
7,848 Riverside County, California
Certificates of Participation,
(Riverside County Public Facilities
Project) Series 1985B,
3.150% 12/01/15**.................. 7,848
9,400 Riverside County, California
Community Facilities District
Special Tax Revenue Refunding,
Series 1997, (KBC Bank N.V. LOC),
3.200% 09/01/14**.................. 9,400
2,025 Riverside County, California
Industrial Development Authority
IDR, (Merrick Engineering, Inc.
Project) Series 1997, AMT, (Wells
Fargo Bank N.A. LOC),
3.350% 03/01/27**.................. 2,025
11,500 Riverside County, California Special
Tax Refunding, (Community
Facilities District No. 89 Project)
Series 1998-5, (AMBAC Insured),
3.250% 09/01/28**.................. 11,500
1,325 Riverside County, California Teeter
Obligation Notes,
3.000% 05/22/00.................... 1,325
6,800 Riverside, California Electric
Revenue,
Series 1998, (AMBAC Insured),
3.450% 10/01/11**##................ 6,800
6,800 Sacramento County, California Housing
Authority Multi-Family Housing
Revenue Refunding, (Peter P.
Bollinger Investment Company,
Ashford Project) Series 1996D,
(FNMA Collateral Agreement),
3.150% 07/15/29**.................. 6,800
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 4,500 Sacramento County, California Housing
Authority Multi-Family Housing
Revenue, (California Place
Apartments Project) Series 1997B,
AMT, (Bank One Arizona, N.A. LOC),
3.350% 05/01/27**.................. $ 4,500
5,100 Sacramento County, California Multi-
Family Housing Revenue,
Series 1985B, (Bank One Arizona,
N.A. LOC), 3.250% 04/15/07**....... 5,100
4,713 Sacramento Municipal Utilities
District, California,
3.200% 07/27/00**.................. 4,713
7,000 Sacramento Municipal Utilities
District, California, Series 1,
3.250% 04/04/00.................... 7,000
16,000 Sacramento, Municipal Utilities
District, California,
3.050% 06/09/00.................... 16,000
2,500 San Bernardino County, California
Certificates of Participation,
Series 1995, Prerefunded,
3.360% 08/01/28**##................ 2,500
15,000 San Bernardino County, California GO
TRAN, Series 1999,
3.750% 09/29/00.................... 15,027
8,000 San Diego County, California GO TRAN,
Series 1999,
5.000% 09/29/00.................... 8,062
5,000 San Diego County, California Teeter
Obligation Notes,
3.450% 07/13/00.................... 5,000
13,885 San Diego, California Area Local
Government Certificates of
Participation TRAN, Series 1999A,
4.000% 06/30/00.................... 13,912
7,750 San Diego, California Area Local
Government Certificates of
Participation,
4.500% 09/29/00.................... 7,777
5,000 San Diego, California GO, TAN,
Series 1999A,
4.250% 09/29/00.................... 5,021
10,200 San Diego, California Industrial
Development Authority Revenue, (San
Diego Gas and Electric Project)
Series A,
3.000% 09/01/20**.................. 10,200
14,300 San Francisco City and County,
California Airport Commission
International Airport Revenue,
Municipal Trust Receipts, Series
1997SGA-50, AMT, (MBIA Insured),
3.530% 05/01/16**##................ 14,300
5,345 San Francisco City and County,
California Airport Commission
International Airport Revenue,
Series 1996,
3.360% 05/01/21**##................ 5,345
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 9,775 San Francisco City and County,
California Airport Commission
International Airport Revenue,
Series 1997,
3.360% 05/01/20**##................ $ 9,775
30,700 San Francisco City and County,
California Redevelopment Agency
Multi-Family Housing Revenue, (3rd
and Mission Street Project) Series
1999C, (Bayerische Hypo-Und
Vereinsbank LOC),
3.200% 07/01/34**.................. 30,700
6,735 San Francisco, California Airport
Subordinate Certificates of
Participation, Series A, AMT,
3.350% 07/25/00.................... 6,735
5,500 San Francisco, California Bay Area
Rapid Transit Finance Authority,
3.200% 06/15/00.................... 5,500
3,500 San Francisco, California Bay Area
Rapid Transit Finance Authority,
Series A,
3.200% 04/04/00.................... 3,500
1,000 San Francisco, California Bay Area
Transit Finance Authority
Corporation,
Series A,
3.150% 06/13/00.................... 1,000
10,425 San Leandro, California Multi-Family
Housing Revenue, (Parkside Project)
Series 1989A, (FNMA Collateral
Agreement),
3.200% 07/15/18**.................. 10,425
3,000 Santa Ana, California Health
Facilities Revenue, (Town and
Country Project)
Series 1990, (Banque Nationale de
Paris LOC),
3.450% 10/01/20**.................. 3,000
16,405 Santa Clara, California Electric
Revenue,
Series 1985A,
3.300% 07/01/10**.................. 16,405
13,700 Simi Valley, California Community
Development Agency Multi-Family
Housing Revenue, Series 1985A,
3.150% 05/01/10**.................. 13,700
55,000 South Coast, California Local
Education Agencies GO TRAN, Series
1999, (MBIA Insured),
4.000% 06/30/00.................... 55,089
7,800 Southern California Metropolitan
Water District,
3.300% 04/05/00.................... 7,800
5,000 Southern California Metropolitan
Water District,
2.800% 04/06/00.................... 5,000
20,300 Southern California Metropolitan
Water District,
3.550% 04/10/00.................... 20,300
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 2,000 Southern California Metropolitan
Water District,
3.300% 05/02/00.................... $ 2,000
20,000 Southern California Metropolitan
Water District,
3.300% 05/03/00.................... 20,000
8,300 Southern California Metropolitan
Water District,
3.200% 07/11/00.................... 8,300
26,670 Southern California Public Power
Authority Revenue Refunding, (Palo
Verde Project) Series 1996C, (AMBAC
Insured),
3.150% 07/01/17**.................. 26,670
4,030 Southern Kern, California Unified
School District Certificates of
Participation, (Building Program)
Series 1998A, (FSA Insured),
3.200% 09/01/26**.................. 4,030
11,300 University of California Revenue,
Series 1998PT-1057,
3.360% 09/01/19**##................ 11,300
3,700 University of California Revenue,
Series 1999,
3.360% 09/01/16**##................ 3,700
1,950 Western Riverside County, California
Regional Wastewater Authority,
Revenue, Series 1996,
3.400% 04/01/28**.................. 1,950
----------
1,631,949
----------
PUERTO RICO -- 5.5%
12,300 Puerto Rico Commonwealth Government
Development Board, Revenue
Refunding, Series 1985, (MBIA
Insured),
3.150% 12/01/15**.................. 12,300
10,995 Puerto Rico Commonwealth
Infrastructure Financing Authority
Special Municipal Security Trust
Receipts, Series 1998CMC-3,
3.600% 07/01/12**##................ 10,995
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
PUERTO RICO -- (CONTINUED)
$ 6,000 Puerto Rico Government Development
Bond,
3.300% 04/11/00.................... $ 6,000
20,843 Puerto Rico Government Development
Bond,
3.300% 04/12/00.................... 20,843
35,000 Puerto Rico Government Development
Bond,
3.250% 04/13/00.................... 35,000
11,200 Puerto Rico Government Development
Bond,
3.200% 05/10/00.................... 11,200
----------
96,338
----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $1,728,287).................. 1,728,287
----------
TOTAL INVESTMENTS
(Cost $1,728,287*).......... 99.4% 1,728,287
----------
OTHER ASSETS AND
LIABILITIES (NET)........... 0.6%
Cash................................. $ 11
Receivable for Fund shares sold...... 2,913
Interest receivable.................. 12,437
Investment advisory fee payable...... (141)
Shareholder servicing and
distribution fees payable.......... (611)
Distributions payable................ (3,844)
Accrued Trustees'/Directors' fees and
expenses........................... (15)
Accrued expenses and other
liabilities........................ (151)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................. 10,599
----------
NET ASSETS.................... 100.0% $1,738,886
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
(000)
--------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income............................. $ 60
Accumulated net realized loss on
investments sold................... (142)
Paid-in capital...................... 1,738,968
----------
NET ASSETS........................... $1,738,886
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
TRUST CLASS SHARES:
($394,837,444 / 394,855,937 shares
outstanding)....................... $1.00
-----
-----
ADVISER CLASS SHARES:
($360,319,134 / 360,375,728 shares
outstanding)....................... $1.00
-----
-----
INVESTOR CLASS SHARES:
($284,040,489 / 284,077,108 shares
outstanding)....................... $1.00
-----
-----
DAILY CLASS SHARES:
($699,688,698 / 699,722,290 shares
outstanding)....................... $1.00
-----
-----
</TABLE>
---------------
* Aggregate cost for Federal tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at March 31, 2000. These securities are subject to demand features of
either one, seven or thirty days.
(++) Restricted security (Note 5).
## Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
Nations California Tax-Exempt Reserves Fund had the following industry
concentrations greater than 10% at March 31, 2000 (as a percentage of net
assets):
Multi-family housing revenue 15.0%
Pollution control revenue 13.2%
Public facilities revenue 12.7%
Power revenue 10.4%
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance
Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CFC Cooperative Finance Corporation
FGIC Financial Guaranty Insurance Corporation
FGIC-TCRS Financial Guaranty Insurance Corporation --
Transferable Custodial Receipts
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GO General Obligation
GTD STD LNS Guaranteed Student Loans
GTY-AGMT Guarantee Agreement
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
SLMA Student Loan Marketing Association
TAN Tax Anticipation Note
TRAN Tax and Revenue Anticipation Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
This page is intentionally left blank.
35
<PAGE> 40
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS
For the period ended March 31, 2000
<TABLE>
CASH MONEY MARKET
RESERVES RESERVES
-----------------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 1,504,149 $ 186,050
-------------- --------------
EXPENSES:
Investment advisory fee..................................... 41,917 5,119
Administration fee.......................................... 26,796 3,220
Transfer agent fees......................................... 517 78
Custodian fees.............................................. 1,572 215
Trustees' fees and expenses................................. 25 25
Registration and filing fees................................ 4,009 1,457
Legal and audit fees........................................ 430 139
Interest expense............................................ 321 89
Other....................................................... 908 419
-------------- --------------
Subtotal................................................ 76,495 10,761
Shareholder servicing and distribution fees:
Trust Class Shares........................................ 1,455 --
Liquidity Class Shares.................................... 14,352 1,126
Adviser Class Shares...................................... 9,604 361
Investor Class Shares..................................... 11,330 --
Market Class Shares....................................... 9,993 3,907
Daily Class Shares........................................ 38,074 19
Service Class Shares...................................... 3,210 128
Investor B Shares......................................... 35 6
Investor C Shares......................................... 2 --*
Special management fees (Investor Shares)................... -- --
-------------- --------------
Total expenses.......................................... 164,550 16,308
Fees waived by investment advisor, administrator and/or
distributor............................................... (34,106) (5,140)
Fees reduced by credits allowed by the custodian............ (117) (16)
-------------- --------------
Net expenses............................................ 130,327 11,152
-------------- --------------
NET INVESTMENT INCOME....................................... 1,373,822 174,898
-------------- --------------
Net realized gain/(loss) on investments..................... --* 37
-------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 1,373,822 $ 174,935
============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax
Exempt Reserves on May 14, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
CALIFORNIA TAX EXEMPT RESERVES
------------------------------------
FOR THE PERIOD FOR THE PERIOD
TREASURY GOVERNMENT MUNICIPAL MAY 15, 1999 TO MARCH 1, 1999 TO
RESERVES RESERVES RESERVES MARCH 31, 2000 MAY 14, 1999(A)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 315,610 $ 91,388 $ 45,647 $ 46,569 $ 9,732
-------------- -------------- -------------- ---------------- -----------------
9,456 2,674 2,034 2,236 324
5,969 1,686 1,307 1,503 324
82 28 23 23 --
368 115 78 85 63
25 25 25 25 17
580 194 207 86 49
134 109 100 67 19
26 2 -- -- --
146 66 113 367 83
-------------- -------------- -------------- ---------------- -----------------
16,786 4,899 3,887 4,392 879
514 105 447 311 --
2,767 947 923 -- --
3,627 960 222 807 348
1,276 503 254 1,139 --
6,287 1,641 686 -- --
3,734 793 1,610 3,039 717
1,263 30 4 -- --
--* --* --* -- --
-- 1 -- -- --
-- -- -- -- 385
-------------- -------------- -------------- ---------------- -----------------
36,254 9,879 8,033 9,688 2,329
(7,097) (2,295) (2,029) (1,235) (385)
(7) (10) -- -- --
-------------- -------------- -------------- ---------------- -----------------
29,150 7,574 6,004 8,453 1,944
-------------- -------------- -------------- ---------------- -----------------
286,460 83,814 39,643 38,116 7,788
-------------- -------------- -------------- ---------------- -----------------
2 (2) 5 (83) --
-------------- -------------- -------------- ---------------- -----------------
$ 286,462 $ 83,812 $ 39,648 $ 38,033 $ 7,788
============== ============== ============== ================ =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
CASH RESERVES
------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED
3/31/00 3/31/99(A) 4/30/98
------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 1,373,822 $ 342,035 $ 204,354
Net realized gain/(loss) on investments..................... --* (17) 30
-------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 1,373,822 342,018 204,384
Distributions to shareholders from net investment income:
Capital Class Shares...................................... (414,318) (192,707) (122,110)
Trust Class Shares........................................ (76,641) -- --
Liquidity Class Shares.................................... (87,223) (62,927) (29,597)
Adviser Class Shares...................................... (197,413) (35,908) (27,433)
Investor Class Shares..................................... (165,797) -- --
Market Class Shares....................................... (109,461) (50,493) (25,214)
Daily Class Shares........................................ (308,509) -- --
Service Class Shares...................................... (14,305) -- --
Investor B Shares......................................... (147) -- --
Investor C Shares......................................... (8) -- --
Net increase/(decrease) in net assets from shares of
beneficial interest transactions.......................... 28,501,193 2,678,152 2,796,684
-------------- -------------- --------------
Net increase/(decrease) in net assets....................... 28,501,193 2,678,135 2,796,714
NET ASSETS:
Beginning of period......................................... 8,159,483 5,481,348 2,684,634
-------------- -------------- --------------
End of period............................................... $ 36,660,676 $ 8,159,483 $ 5,481,348
============== ============== ==============
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................ $ 27 $ 27 $ --
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 through
March 31, 1999.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 15. The numbers reflected are for the period May 16, 1998 through March
31, 1999.
(c) Represents financial information for the period December 1, 1997 to May 15,
1998 for The Emerald Prime Advantage Institutional Fund, which was
reorganized into Money Market Reserves on May 22, 1998. Certain amounts
have been reclassified to conform to the current period's presentation.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
MONEY MARKET RESERVES
TREASURY RESERVES
---------------------------------------------------- ------------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
3/31/00 3/31/99(B) 5/15/98(C) 3/31/00 3/31/99(A) 4/30/98
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 174,898 $ 32,383 $ 3,563 $ 286,460 $ 89,136 $ 49,848
37 1 -- 2 (2) --
-------------- -------------- -------------- -------------- -------------- --------------
174,935 32,384 3,563 286,462 89,134 49,848
(116,028) (11,499) (3,563) (60,453) (23,600) (13,736)
--* -- -- (25,621) -- --
(7,507) (38) -- (15,194) (16,510) (13,290)
(8,010) (220) -- (69,878) (13,783) (12,530)
--* -- -- (17,605) -- --
(42,564) (20,626) -- (64,280) (35,243) (10,292)
(154) -- -- (28,194) -- --
(609) -- -- (5,233) -- --
(26) -- -- (2) -- --
--* -- -- -- -- --
5,195,291 1,358,049 (59,028) 3,333,918 1,724,192 649,521
-------------- -------------- -------------- -------------- -------------- --------------
5,195,328 1,358,050 (59,028) 3,333,920 1,724,190 649,521
1,476,930 118,880 177,908 3,201,913 1,477,723 828,202
-------------- -------------- -------------- -------------- -------------- --------------
$ 6,672,258 $ 1,476,930 $ 118,880 $ 6,535,833 $ 3,201,913 $ 1,477,723
================== ============== ============== ============== ============== ==============
$ 4 $ 4 $ 4 $ -- $ -- $ --
================== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
GOVERNMENT RESERVES
-----------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED
3/31/00 3/31/99(A) 4/30/98
-----------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 83,814 $ 27,860 $ 24,685
Net realized gain/(loss) on investments..................... (2) 2 --
-------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 83,812 27,862 24,685
Distributions to shareholders from net investment income:
Capital Class Shares...................................... (23,268) (8,013) (9,042)
Trust Class Shares........................................ (5,300) -- --
Liquidity Class Shares.................................... (5,772) (2,138) (1,783)
Adviser Class Shares...................................... (19,122) (4,419) (2,427)
Investor Class Shares..................................... (6,724) -- --
Market Class Shares....................................... (17,190) (13,290) (11,433)
Daily Class Shares........................................ (6,296) -- --
Service Class Shares...................................... (135) -- --
Investor B Shares......................................... (2) -- --
Investor C Shares......................................... (5) -- --
Net increase/(decrease) in net assets from shares of
beneficial interest transactions.......................... 1,076,543 143,903 192,840
-------------- -------------- --------------
Net increase/(decrease) in net assets....................... 1,076,541 143,905 192,840
NET ASSETS
Beginning of period......................................... 711,948 568,043 375,203
-------------- -------------- --------------
End of period............................................... $ 1,788,489 $ 711,948 $ 568,043
============== ============== ==============
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................ $ -- $ -- $ --
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 through March
31, 1999.
(b) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax
Exempt Reserves on May 14, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
MUNICIPAL RESERVES
CALIFORNIA TAX EXEMPT RESERVES
---------------------------------------------------- ------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED
3/31/00 3/31/99(A) 4/30/98 3/31/00 5/14/99(B) 2/28/99(B)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 39,643 $ 9,267 $ 8,161 $ 38,116 $ 7,788 $ 39,877
5 (1) -- (83) -- (3)
-------------- -------------- -------------- -------------- -------------- --------------
39,648 9,266 8,161 38,033 7,788 39,874
(5,572) (3,033) (2,352) -- -- --
(14,226) -- -- (8,899) -- --
(3,373) (1,555) (1,798) -- -- --
(2,695) (1,437) (948) (8,424) (3,459) (18,045)
(2,088) -- -- (7,183) (2,671) (15,175)
(4,309) (3,242) (3,063) -- -- --
(7,370) -- -- (13,611) (1,658) (6,658)
(10) -- -- -- -- --
--* -- -- -- -- --
-- -- -- -- -- --
1,105,502 155,836 49,287 266,711 (112,293) 142,918
-------------- -------------- -------------- -------------- -------------- --------------
1,105,507 155,835 49,287 266,627 (112,293) 142,914
405,095 249,260 199,973 1,472,259 1,584,552 1,441,638
-------------- -------------- -------------- -------------- -------------- --------------
$ 1,510,602 $ 405,095 $ 249,260 $ 1,738,886 $ 1,472,259 $ 1,584,552
============== ============== ============== ============== ============== ==============
$ -- $ -- $ -- $ 60 $ 61 $ 61
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 46
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENT OF CASH FLOWS
For the year ended March 31, 2000
<TABLE>
<CAPTION>
TREASURY RESERVES
(000)
-------------------------
<S> <C> <C>
Cash flows from operating and investing activities:
Investment income received................................ $ 294,713
Payment of operating expenses............................. (26,087)
Net proceeds from reverse repurchase agreements
outstanding............................................. 944,520
Net purchases of short-term investments................... (1,786,086)
------------
Cash used by operating and investing activities............. $(572,940)
Cash flows from financing activities:
Proceeds from Fund shares sold+........................... 65,492,435
Payment on shares redeemed................................ (64,797,984)
Distributions paid*....................................... (121,475)
Interest expense.......................................... (26)
------------
Cash provided by financing activities....................... 572,950
---------
Increase in cash.......................................... $ 10
Cash at beginning of period............................... (10)
---------
Cash at end of period..................................... $ --
=========
RECONCILIATION OF NET DECREASE IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from operations........ $ 286,462
Increase in investments................................... $ (1,789,508)
Increase in payable for reverse repurchase agreement
transactions............................................ 944,520
Increase in interest and dividends receivable............. (17,508)
Decrease in other assets.................................. 148
Increase in accrued expenses and other payables........... 2,920
Interest expense (financing activity) included in
operations.............................................. 26
------------
Cash used by operating and investing activities............. $(572,940)
=========
</TABLE>
---------------
* Non-cash activities include reinvestment of dividends of $141,984.
+ Non-cash activities include shares issued in exchange for shares of Pacific
Horizon Treasury Fund of $3,144,071.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY*
<TABLE>
<CAPTION>
CASH RESERVES
------------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2000(B) MARCH 31, 1999(A) APRIL 30, 1998
-------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $122,820,854 $41,082,851 $27,029,347
Issued in exchange for Horizon Shares of Pacific Horizon
Prime Fund (Note 8)...................................... 3,443,782 -- --
Issued as reinvestment of dividends........................ 213,947 76,006 64,512
Redeemed................................................... (122,215,403) (39,830,977) (25,726,549)
------------ ----------- -----------
Net increase/(decrease).................................... $ 4,263,180 $ 1,327,880 $ 1,367,310
============ =========== ===========
TRUST CLASS SHARES:
Sold....................................................... $ 6,430,202 $ -- $ --
Issued as reinvestment of dividends........................ 39 -- --
Redeemed................................................... (4,711,099) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 1,719,142 $ -- $ --
============ =========== ===========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 15,520,344 $ 9,418,989 $ 8,183,907
Issued as reinvestment of dividends........................ 52,021 42,070 18,291
Redeemed................................................... (15,598,778) (9,145,542) (7,514,186)
------------ ----------- -----------
Net increase/(decrease).................................... $ (26,413) $ 315,517 $ 688,012
============ =========== ===========
ADVISER CLASS SHARES:
Sold....................................................... $ 57,106,751 $ 4,388,779 $ 3,993,186
Issued in exchange for Horizon Service Shares of Pacific
Horizon Prime Fund (Note 8).............................. 3,971,137 -- --
Issued as reinvestment of dividends........................ 150,094 32,287 20,314
Redeemed................................................... (57,317,806) (4,223,311) (3,588,638)
------------ ----------- -----------
Net increase/(decrease).................................... $ 3,910,176 $ 197,755 $ 424,862
============ =========== ===========
INVESTOR CLASS SHARES:
Sold....................................................... $ 15,821,010 $ -- $ --
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Prime Fund (Note 8).............................. 2,543,535 -- --
Issued as reinvestment of dividends........................ 155,909 -- --
Redeemed................................................... (11,452,337) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 7,068,117 $ -- $ --
============ =========== ===========
MARKET CLASS SHARES:
Sold....................................................... $ 4,232,500 $ 1,898,000 $ 1,504,300
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (2,940,000) (1,061,000) (1,187,800)
------------ ----------- -----------
Net increase/(decrease).................................... $ 1,292,500 $ 837,000 $ 316,500
============ =========== ===========
DAILY CLASS SHARES:
Sold....................................................... $ 63,799,324 $ -- $ --
Issued in exchange for S Shares of Pacific Horizon Prime
Fund (Note 8)............................................ 1,587,435 -- --
Issued in exchange for X Shares of Pacific Horizon Prime
Fund (Note 8)............................................ 2,180,033 -- --
Issued as reinvestment of dividends........................ 300,855 -- --
Redeemed................................................... (58,114,647) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 9,753,000 $ -- $ --
============ =========== ===========
SERVICE CLASS SHARES:
Sold....................................................... $ 7,517,812 $ -- $ --
Issued in exchange for Y Shares of Pacific Horizon Prime
Fund (Note 8)............................................ 237,185 -- --
Issued as reinvestment of dividends........................ 7,920 -- --
Redeemed................................................... (7,250,599) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 512,318 $ -- $ --
============ =========== ===========
INVESTOR B SHARES:
Sold....................................................... $ 17,877 $ -- $ --
Issued as reinvestment of dividends........................ 128 -- --
Redeemed................................................... (9,177) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 8,828 $ -- $ --
============ =========== ===========
INVESTOR C SHARES:
Sold....................................................... $ 1,398 $ -- $ --
Issued as reinvestment of dividends........................ 6 -- --
Redeemed................................................... (1,059) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 345 $ -- $ --
============ =========== ===========
Total net increase/(decrease).............................. $ 28,501,193 $ 2,678,152 $ 2,796,684
============ =========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 through March
31, 1999.
(b) Cash Reserves Trust Class, Investor Class, Daily Class, Service Class,
Investor B Shares and Investor C Shares were first offered on May 17, 1999,
April 12, 1999, April 12, 1999, April 28, 1999, October 4, 1999 and October
5, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
Money Market Reserves
---------------------------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
MARCH 31, 2000(C) MARCH 31, 1999(A) MAY 15, 1998(B)
--------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 47,793,102 $ 2,271,169 $ 188,673
Issued as reinvestment of dividends........................ 80,886 5,977 --
Redeemed................................................... (44,405,146) (1,800,552) (247,701)
------------ ----------- ---------
Net increase/(decrease).................................... $ 3,468,842 $ 476,594 $ (59,028)
============ =========== =========
TRUST CLASS SHARES:
Sold....................................................... $ 38 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... -- -- --
------------ ----------- ---------
Net increase/(decrease).................................... $ 38 $ -- $ --
============ =========== =========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 2,774,560 $ 38,821 $ --
Issued as reinvestment of dividends........................ 6,835 32 --
Redeemed................................................... (1,836,319) (37,775) --
------------ ----------- ---------
Net increase/(decrease).................................... $ 945,076 $ 1,078 $ --
============ =========== =========
ADVISER CLASS SHARES:
Sold....................................................... $ 2,686,635 $ 83,156 $ --
Issued as reinvestment of dividends........................ 6,832 46 --
Redeemed................................................... (2,146,117) (76,825) --
------------ ----------- ---------
Net increase/(decrease).................................... $ 547,350 $ 6,377 $ --
============ =========== =========
INVESTOR CLASS SHARES:
Sold....................................................... $ 1 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... -- -- --
------------ ----------- ---------
Net increase/(decrease).................................... $ 1 $ -- $ --
============ =========== =========
MARKET CLASS SHARES:
Sold....................................................... $ 1,714,300 $ 1,771,500 $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (1,567,300) (897,500) --
------------ ----------- ---------
Net increase/(decrease).................................... $ 147,000 $ 874,000 $ --
============ =========== =========
DAILY CLASS SHARES:
Sold....................................................... $ 15,330 $ -- $ --
Issued as reinvestment of dividends........................ 152 -- --
Redeemed................................................... (10,957) -- --
------------ ----------- ---------
Net increase/(decrease).................................... $ 4,525 $ -- $ --
============ =========== =========
SERVICE CLASS SHARES:
Sold....................................................... $ 144,210 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (63,710) -- --
------------ ----------- ---------
Net increase/(decrease).................................... $ 80,500 $ -- $ --
============ =========== =========
INVESTOR B SHARES:
Sold....................................................... $ 3,658 $ -- $ --
Issued as reinvestment of dividends........................ 24 -- --
Redeemed................................................... (1,742) -- --
------------ ----------- ---------
Net increase/(decrease).................................... $ 1,940 $ -- $ --
============ =========== =========
INVESTOR C SHARES:
Sold....................................................... $ 515 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (496) -- --
------------ ----------- ---------
Net increase/(decrease).................................... $ 19 $ -- $ --
============ =========== =========
Total net increase/(decrease).............................. $ 5,195,291 $ 1,358,049 $ (59,028)
============ =========== =========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 15. The numbers reflected are for the period May 16, 1998 through March
31, 1999.
(b) Represents financial information for the period December 1, 1997 to May 15,
1998 for the Emerald Prime Advantage Institutional Fund, which was organized
into Money Market Reserves on May 22, 1998.
(c) Money Market Reserves Trust Class, Investor Class, Daily Class, Service
Class, Investor B Shares and Investor C Shares were first offered on March
22, 2000, March 3, 2000, July 21, 1999, May 18, 1999, October 5, 1999 and
January 6, 2000, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
TREASURY RESERVES
---------------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2000(B) MARCH 31, 1999(A) APRIL 30, 1998
--------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 9,167,835 $ 3,598,873 $ 1,816,628
Issued in exchange for Institutional Shares of Emerald
Treasury Advantage Fund (Note 8)......................... -- 144,375 --
Issued in exchange for Horizon Shares of Pacific Horizon
Treasury Fund (Note 8)................................... 513,598 -- --
Issued as reinvestment of dividends........................ 40,314 14,110 4,525
Redeemed................................................... (10,077,751) (2,620,829) (2,044,082)
------------ ----------- -----------
Net increase/(decrease).................................... $ (356,004) $ 1,136,529 $ (222,929)
============ =========== ===========
TRUST CLASS SHARES:
Sold....................................................... $ 3,540,751 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (3,034,413) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 506,338 $ -- $ --
============ =========== ===========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 2,222,465 $ 2,173,677 $ 2,905,975
Issued as reinvestment of dividends........................ 8,575 10,916 10,849
Redeemed................................................... (2,170,666) (2,623,599) (2,254,978)
------------ ----------- -----------
Net increase/(decrease).................................... $ 60,374 $ (439,006) $ 661,846
============ =========== ===========
ADVISER CLASS SHARES:
Sold....................................................... $ 25,468,043 $ 2,611,240 $ 2,542,456
Issued in exchange for Horizon Service Shares of Pacific
Horizon Treasury Fund (Note 8)........................... 1,727,418 -- --
Issued as reinvestment of dividends........................ 50,763 10,096 9,722
Redeemed................................................... (26,130,165) (2,499,169) (2,483,674)
------------ ----------- -----------
Net increase/(decrease).................................... $ 1,116,059 $ 122,167 $ 68,504
============ =========== ===========
INVESTOR CLASS SHARES:
Sold....................................................... $ 2,089,505 $ -- $ --
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Treasury Fund (Note 8)........................... 293,535 -- --
Issued as reinvestment of dividends........................ 12,983 -- --
Redeemed................................................... (1,822,762) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 573,261 $ -- $ --
============ =========== ===========
MARKET CLASS SHARES:
Sold....................................................... $ 2,703,000 $ 1,773,805 $ 903,800
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (2,361,000) (869,303) (761,700)
------------ ----------- -----------
Net increase/(decrease).................................... $ 342,000 $ 904,502 $ 142,100
============ =========== ===========
DAILY CLASS SHARES:
Sold....................................................... $ 17,039,452 $ -- $ --
Issued in exchange for X Shares of Pacific Horizon Treasury
Fund (Note 8)............................................ 503,310 -- --
Issued as reinvestment of dividends........................ 26,680 -- --
Redeemed................................................... (16,721,667) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 847,775 $ -- $ --
============ =========== ===========
SERVICE CLASS SHARES:
Sold....................................................... $ 2,616,632 $ -- $ --
Issued in exchange for Y Shares of Pacific Horizon Treasury
Fund (Note 8)............................................ 106,210 -- --
Issued as reinvestment of dividends........................ 2,668 -- --
Redeemed................................................... (2,481,475) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 244,035 $ -- $ --
============ =========== ===========
INVESTOR B SHARES
Sold....................................................... $ 78 $ -- $ --
Issued as reinvestment of dividends........................ 2 -- --
Redeemed................................................... -- -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 80 $ -- $ --
============ =========== ===========
Total net increase/(decrease).............................. $ 3,333,918 $ 1,724,192 $ 649,521
============ =========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 to March 31,
1999.
(b) Treasury Reserves Trust Class, Investor Class, Daily Class, Service Class
and Investor B shares were first offered on May 17, 1999, April 12, 1999,
April 12, 1999, May 17, 1999 and October 15, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT RESERVES
---------------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2000(B) MARCH 31, 1999(A) APRIL 30, 1998
---------------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 2,727,353 $ 1,223,748 $ 1,207,038
Issued in exchange for Horizon Shares of: (Note 8) Pacific
Horizon Government Fund.................................. 143,953 -- --
Pacific Horizon Treasury Only Fund....................... 22,370 -- --
Issued as reinvestment of dividends........................ 18,463 6,798 6,640
Redeemed................................................... (2,760,363) (1,191,593) (1,148,448)
----------- ----------- -----------
Net increase/(decrease).................................... $ 151,776 $ 38,953 $ 65,230
=========== =========== ===========
TRUST CLASS SHARES:
Sold....................................................... $ 638,160 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (512,656) -- --
----------- ----------- -----------
Net increase/(decrease).................................... $ 125,504 $ -- $ --
=========== =========== ===========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 1,203,931 $ 745,526 $ 655,655
Issued as reinvestment of dividends........................ 4,795 2,006 1,718
Redeemed................................................... (1,127,949) (720,754) (631,082)
----------- ----------- -----------
Net increase/(decrease).................................... $ 80,777 $ 26,778 $ 26,291
=========== =========== ===========
ADVISER CLASS SHARES:
Sold....................................................... $ 1,869,514 $ 747,826 $ 392,891
Issued in exchange for Horizon Service Shares of: (Note 8)
Pacific Horizon Government Fund.......................... 182,672 -- --
Pacific Horizon Treasury Only Fund....................... 277,586 -- --
Issued as reinvestment of dividends........................ 18,700 3,471 1,934
Redeemed................................................... (1,960,102) (732,625) (349,506)
----------- ----------- -----------
Net increase/(decrease).................................... $ 388,370 $ 18,672 $ 45,319
=========== =========== ===========
INVESTOR CLASS SHARES:
Sold....................................................... $ 642,355 $ -- $ --
Issued in exchange for Pacific Horizon Shares of: (Note 8)
Pacific Horizon Government Fund.......................... 145,185 -- --
Pacific Horizon Treasury Only Fund....................... 123,908 -- --
Issued as reinvestment of dividends........................ 5,984 -- --
Redeemed................................................... (805,691) -- --
----------- ----------- -----------
Net increase/(decrease).................................... $ 111,741 $ -- $ --
=========== =========== ===========
MARKET CLASS SHARES:
Sold....................................................... $ 806,000 $ 542,300 $ 799,150
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (770,000) (482,800) (743,150)
----------- ----------- -----------
Net increase/(decrease).................................... $ 36,000 $ 59,500 $ 56,000
=========== =========== ===========
DAILY CLASS SHARES:
Sold....................................................... $ 682,291 $ -- $ --
Issued as reinvestment of dividends........................ 6,296 -- --
Redeemed................................................... (517,066) -- --
----------- ----------- -----------
Net increase/(decrease).................................... $ 171,521 $ -- $ --
=========== =========== ===========
SERVICE CLASS SHARES:
Sold....................................................... $ 26,700 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (16,700) -- --
----------- ----------- -----------
Net increase/(decrease).................................... $ 10,000 $ -- $ --
=========== =========== ===========
INVESTOR B SHARES
Sold....................................................... $ 196 $ -- $ --
Issued as reinvestment of dividends........................ 2 -- --
Redeemed................................................... (90) -- --
----------- ----------- -----------
Net increase/(decrease).................................... $ 108 $ -- $ --
=========== =========== ===========
INVESTOR C SHARES
Sold....................................................... $ 817 $ -- $ --
Issued as reinvestment of dividends........................ 4 -- --
Redeemed................................................... (75) -- --
----------- ----------- -----------
Net increase/(decrease).................................... $ 746 $ -- $ --
=========== =========== ===========
Total net increase/(decrease).............................. $ 1,076,543 $ 143,903 $ 192,840
=========== =========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 to March 31,
1999.
(b) Government Reserves Trust Class, Investor Class, Daily Class, Service Class,
Investor B Shares and Investor C Shares were first offered on May 17, 1999,
April 12, 1999, April 12, 1999, June 8, 1999, November 2, 1999 and December
21, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL RESERVES
--------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, MARCH 31, APRIL 30,
2000(B) 1999(A) 1998
---------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 1,263,836 $ 342,200 $ 344,665
Issued in exchange for Horizon Shares of Pacific Horizon
Tax Exempt Fund (Note 8)................................. 328,296 -- --
Issued as reinvestment of dividends........................ 1,494 853 195
Redeemed................................................... (1,555,201) (283,035) (330,310)
------------ --------- ---------
Net increase/(decrease).................................... $ 38,425 $ 60,018 $ 14,550
============ ========= =========
TRUST CLASS SHARES:
Sold....................................................... $ 1,809,173 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (1,282,344) -- --
------------ --------- ---------
Net increase/(decrease).................................... $ 526,829 $ -- $ --
============ ========= =========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 461,685 $ 341,064 $ 702,167
Issued as reinvestment of dividends........................ 3,275 1,447 1,606
Redeemed................................................... (444,304) (327,192) (705,376)
------------ --------- ---------
Net increase/(decrease).................................... $ 20,656 $ 15,319 $ (1,603)
============ ========= =========
ADVISER CLASS SHARES:
Sold....................................................... $ 385,433 $ 397,229 $ 275,459
Issued in exchange for Horizon Service Shares of Pacific
Horizon Tax Exempt Fund (Note 8)......................... 217,928 -- --
Issued as reinvestment of dividends........................ 2,609 1,302 875
Redeemed................................................... (583,893) (373,032) (253,694)
------------ --------- ---------
Net increase/(decrease).................................... $ 22,077 $ 25,499 $ 22,640
============ ========= =========
INVESTOR CLASS SHARES:
Sold....................................................... $ 319,498 $ -- $ --
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Tax Exempt Fund (Note 8)......................... 150,443 -- --
Issued as reinvestment of dividends........................ 2,042 -- --
Redeemed................................................... (407,201) -- --
------------ --------- ---------
Net increase/(decrease).................................... $ 64,782 $ -- $ --
============ ========= =========
MARKET CLASS SHARES:
Sold....................................................... $ 528,500 $ 246,570 $ 326,000
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (526,500) (191,570) (312,300)
------------ --------- ---------
Net increase/(decrease).................................... $ 2,000 $ 55,000 $ 13,700
============ ========= =========
DAILY CLASS SHARES:
Sold....................................................... $ 760,267 $ -- $ --
Issued in exchange for S Shares of Pacific Horizon Tax
Exempt Fund (Note 8)..................................... 57,381 -- --
Issued as reinvestment of dividends........................ 7,359 -- --
Redeemed................................................... (395,365) -- --
------------ --------- ---------
Net increase/(decrease).................................... $ 429,642 $ -- $ --
============ ========= =========
SERVICE CLASS SHARES:
Sold....................................................... $ 3,000 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (2,000) -- --
------------ --------- ---------
Net increase/(decrease).................................... $ 1,000 $ -- $ --
============ ========= =========
INVESTOR B SHARES
Sold....................................................... $ 100 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (9) -- --
------------ --------- ---------
Net increase/(decrease).................................... $ 91 $ -- $ --
============ ========= =========
Total net increase/(decrease).............................. $ 1,105,502 $ 155,836 $ 49,287
============ ========= =========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 to March 31,
1999.
(b) Municipal Reserves Trust Class, Investor Class, Daily Class, Service Class
and Investor B Shares were first offered on May 17, 1999, April 12, 1999,
April 12, 1999, January 21, 2000 and December 27, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 52
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
CALIFORNIA TAX EXEMPT RESERVES
----------------------------------------------------
PERIOD ENDED PERIOD ENDED YEAR ENDED
MARCH 31, MAY 14, FEBRUARY 28,
2000(B) 1999(A) 1999(A)
--------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
TRUST CLASS SHARES:
Sold...................................................... $ 1,050,171 $ -- $ --
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (655,315) -- --
------------ --------- -----------
Net increase/(decrease)................................... $ 394,856 $ -- $ --
============ ========= ===========
ADVISER CLASS SHARES:
Sold...................................................... $ 1,308,639 $ 360,557 $ 1,819,932
Issued as reinvestment of dividends....................... 8,051 1,134 7,687
Redeemed.................................................. (1,592,374) (434,617) (1,790,234)
------------ --------- -----------
Net increase/(decrease)................................... $ (275,684) $ (72,926) $ 37,385
============ ========= ===========
INVESTOR CLASS SHARES:
Sold...................................................... $ 962,357 $ 484,932 $ 1,025,796
Issued as reinvestment of dividends....................... 8,632 2,092 15,042
Redeemed.................................................. (1,189,554) (523,636) (1,099,335)
------------ --------- -----------
Net increase/(decrease)................................... $ (218,565) $ (36,612) $ (58,497)
============ ========= ===========
DAILY CLASS SHARES:
Sold...................................................... $ 1,791,638 $ 160,950 $ 601,549
Issued as reinvestment of dividends....................... 11,724 1,318 6,656
Redeemed.................................................. (1,437,258) (165,023) (444,175)
------------ --------- -----------
Net increase/(decrease)................................... $ 366,104 $ (2,755) $ 164,030
============ ========= ===========
Total net increase/(decrease)............................. $ 266,711 $(112,293) $ 142,918
============ ========= ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax
Exempt Reserves on May 15, 1999.
(b) California Tax Exempt Reserves Trust Class was first offered on May 24,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
[This page intentionally left blank.]
49
<PAGE> 54
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-----------------------------------------------
<S> <C> <C> <C>
CASH RESERVES
CAPITAL CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0532 $(0.0532)
Period ended 3/31/1999(a)................................... 1.00 0.0484 (0.0484)
Year ended 4/30/1998........................................ 1.00 0.0554 (0.0554)
Year ended 4/30/1997........................................ 1.00 0.0531 (0.0531)
Year ended 4/30/1996........................................ 1.00 0.0570 (0.0570)
Year ended 4/30/1995........................................ 1.00 0.0480 (0.0480)
TRUST CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0463 $(0.0463)
LIQUIDITY CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0517 $(0.0517)
Period ended 3/31/1999(a)................................... 1.00 0.0470 (0.0470)
Year ended 4/30/1998........................................ 1.00 0.0539 (0.0539)
Year ended 4/30/1997........................................ 1.00 0.0516 (0.0516)
Year ended 4/30/1996........................................ 1.00 0.0555 (0.0555)
Year ended 4/30/1995........................................ 1.00 0.0471 (0.0471)
ADVISER CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0507 $(0.0507)
Period ended 3/31/1999(a)................................... 1.00 0.0461 (0.0461)
Year ended 4/30/1998........................................ 1.00 0.0529 (0.0529)
Year ended 4/30/1997........................................ 1.00 0.0506 (0.0506)
Year ended 4/30/1996........................................ 1.00 0.0545 (0.0545)
Period ended 4/30/1995*..................................... 1.00 0.0316 (0.0316)
INVESTOR CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0484 $(0.0484)
MARKET CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0487 $(0.0487)
Period ended 3/31/1999(a)................................... 1.00 0.0447 (0.0447)
Year ended 4/30/1998........................................ 1.00 0.0519 (0.0519)
Period ended 4/30/1997*..................................... 1.00 0.0493 (0.0493)
DAILY CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0459 $(0.0459)
SERVICE CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0404 $(0.0404)
INVESTOR B SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0225 $(0.0225)
INVESTOR C SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0223 $(0.0223)
</TABLE>
---------------
* Cash Reserves Trust Class, Adviser Class, Investor Class, Market Class,
Daily Class, Service Class, Investor B and Investor C Shares commenced
operations on May 17, 1999, September 22, 1994, April 12, 1999, May 3, 1996,
April 12, 1999, April 28, 1999, October 4, 1999 and October 5, 1999,
respectively.
** The effect of interest expense on the operating expense ratio was less than
0.01%.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 55
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1.00$..... 5.46% $8,642,609 0.20%**(b) 5.37% 0.29%(b)
1.00..... 4.95 4,379,430 0.20+(b) 5.24+ 0.43+(b)
1.00..... 5.70 3,051,559 0.20*** 5.54 0.44
1.00..... 5.44 1,684,233 0.20 5.32 0.45
1.00..... 5.84 607,643 0.20 5.53 0.51
1.00..... 4.91 134,064 0.29 4.96 0.52
1.00$..... 4.72% $1,719,142 0.30%+**(b) 5.27%+ 0.39%+(b)
1.00$..... 5.30% $1,396,969 0.35%**(b) 5.22% 1.14%(b)
1.00..... 4.80 1,423,382 0.35+(b) 5.09+ 1.28+(b)
1.00..... 5.53 1,107,869 0.35** 5.39 1.29
1.00..... 5.28 419,851 0.35 5.17 0.60
1.00..... 5.70 35,477 0.35 5.38 0.66
1.00..... 4.81 2 0.38 4.87 0.61
1.00$..... 5.19% $4,780,346 0.45%**(b) 5.12% 0.54%(b)
1.00..... 4.71 870,170 0.45+(b) 4.99+ 0.68+(b)
1.00..... 5.43 672,417 0.45** 5.29 0.69
1.00..... 5.19 247,551 0.45 5.07 0.70
1.00..... 5.58 397,809 0.45 5.28 0.76
1.00..... 3.20 47,682 0.54+ 4.71+ 0.77+
1.00$..... 4.94% $7,068,117 0.55%+**(b) 5.02%+ 0.64%+(b)
1.00$..... 4.98% $2,779,002 0.65%**(b) 4.92% 0.74%(b)
1.00..... 4.56 1,486,502 0.61+(b) 4.83+ 0.88+(b)
1.00..... 5.33 649,503 0.55** 5.19 0.89
1.00..... 5.04 333,000 0.55+ 4.97+ 0.80+
1.00$..... 4.69% $9,753,000 0.80%+**(b) 4.77%+ 0.89%+(b)
1.00$..... 4.11% $ 512,318 1.20%+**(b) 4.37%+ 1.29%+(b)
1.00$..... 2.28% $ 8,828 1.30%+**(b) 4.27%+ 1.39%+(b)
1.00$..... 2.25% $ 345 1.30%+**(b) 4.27%+ 1.39%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-----------------------------------------------
<S> <C> <C> <C>
MONEY MARKET RESERVES
CAPITAL CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0535 $(0.0535)
Period ended 3/31/1999*(a).................................. 1.00 0.0438 (0.0438)
Period ended 5/15/1998...................................... 1.00 0.0252 (0.0252)
Year ended 11/30/1997....................................... 1.00 0.0545 (0.0545)
Year ended 11/30/1996....................................... 1.00 0.0516 (0.0516)
Year ended 11/30/1995....................................... 1.00 0.0561 (0.0561)
TRUST CLASS SHARES
Period ended 3/31/2000**.................................... $1.00 $0.0016 $(0.0016)
LIQUIDITY CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0520 $(0.0520)
Period ended 3/31/1999**(a)................................. 1.00 0.0281 (0.0281)
ADVISER CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0548 $(0.0548)
Period ended 3/31/1999**(a)................................. 1.00 0.0344 (0.0344)
INVESTOR CLASS SHARES
Period ended 3/31/2000**.................................... $1.00 $0.0043 $(0.0043)
MARKET CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0490 $(0.0490)
Period ended 3/31/1999**(a)................................. 1.00 0.0214 (0.0214)
DAILY CLASS SHARES
Period ended 3/31/2000**.................................... $1.00 $0.0346 $(0.0346)
SERVICE CLASS SHARES
Period ended 3/31/2000**.................................... $1.00 $0.0386 $(0.0386)
INVESTOR B SHARES
Period ended 3/31/2000**.................................... $1.00 $0.0227 $(0.0227)
INVESTOR C SHARES
Period ended 3/31/2000**.................................... $1.00 $0.0112 $(0.0112)
</TABLE>
---------------
* The financial information for the fiscal periods through May 15, 1998
reflect the financial information for the Emerald Prime Advantage
Institutional Fund, which was reorganized into Capital Class Shares as of
May 22, 1998.
** Money Market Reserves Trust Class, Liquidity Class, Adviser Class, Investor
Class, Market Class, Daily Class, Service Class, Investor B and Investor C
Shares commenced operations on March 22, 2000, August 7, 1998, July 2, 1998,
March 3, 2000, October 9, 1998, July 21, 1999, May 18, 1999, October 5, 1999
and January 6, 2000, respectively.
*** The effect of interest expense on the operating expense ratio was less than
0.01%.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 57
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1.00$..... 5.48% $4,064,349 0.20%***(b) 5.64% 0.33%(b)
1.00..... 4.47 595,482 0.20+(b) 4.87+ 0.46+(b)
1.00..... 2.55 118,880 0.20+ 5.54+ 0.27+
1.00..... 5.58 177,908 0.20 5.45 0.28
1.00..... 5.29 133,044 0.35 5.16 0.35
1.00..... 5.76 131,089 0.40 5.60 0.46
1.00$..... 0.16% $ 38 0.30%+***(b) 5.54%+ 0.43%+(b)
1.00$..... 5.32% $ 946,156 0.35%***(b) 5.49% 1.18%(b)
1.00..... 2.87 1,078 0.35+(b) 4.72+ 1.31+(b)
1.00$..... 5.62% $ 553,728 0.45%***(b) 5.39% 0.58%(b)
1.00..... 3.46 6,377 0.45+(b) 4.62+ 0.71+(b)
1.00$..... 0.43% $ 1 0.55%+***(b) 5.29%+ 0.68%+(b)
1.00$..... 5.01% $1,021,002 0.65%***(b) 5.19% 0.78%(b)
1.00..... 2.14 873,993 0.65+(b) 4.42+ 0.91+(b)
1.00$..... 3.51% $ 4,525 0.80%+***(b) 5.04%+ 0.93%+(b)
1.00$..... 3.93% $ 80,500 1.20%+***(b) 4.64%+ 1.33%+(b)
1.00$..... 2.29% $ 1,940 1.30%+***(b) 4.54%+ 1.43%+(b)
1.00$..... 1.12% $ 19 1.30%+***(b) 4.54%+ 1.43%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 58
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-----------------------------------------------
<S> <C> <C> <C>
TREASURY RESERVES
CAPITAL CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0504 $(0.0504)
Period ended 3/31/1999(a)................................... 1.00 0.0462 (0.0462)
Year ended 4/30/1998........................................ 1.00 0.0541 (0.0541)
Year ended 4/30/1997........................................ 1.00 0.0519 (0.0519)
Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556)
Year ended 4/30/1995........................................ 1.00 0.0480 (0.0480)
TRUST CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0436 $(0.0436)
LIQUIDITY CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0489 $(0.0489)
Period ended 3/31/1999(a)................................... 1.00 0.0448 (0.0448)
Year ended 4/30/1998........................................ 1.00 0.0526 (0.0526)
Year ended 4/30/1997........................................ 1.00 0.0504 (0.0504)
Year ended 4/30/1996........................................ 1.00 0.0541 (0.0541)
Year ended 4/30/1995........................................ 1.00 0.0462 (0.0462)
ADVISER CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0479 $(0.0479)
Period ended 3/31/1999(a)................................... 1.00 0.0439 (0.0439)
Year ended 4/30/1998........................................ 1.00 0.0516 (0.0516)
Year ended 4/30/1997........................................ 1.00 0.0494 (0.0494)
Year ended 4/30/1996........................................ 1.00 0.0531 (0.0531)
Period ended 4/30/1995*..................................... 1.00 0.0308 (0.0308)
INVESTOR CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0455 $(0.0455)
MARKET CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0459 $(0.0459)
Period ended 3/31/1999(a)................................... 1.00 0.0423 (0.0423)
Year ended 4/30/1998........................................ 1.00 0.0505 (0.0505)
Period ended 4/30/1997*..................................... 1.00 0.0481 (0.0481)
DAILY CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0431 $(0.0431)
SERVICE CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0358 $(0.0358)
INVESTOR B SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0192 $(0.0192)
</TABLE>
---------------
* Treasury Reserves Trust Class, Adviser Class, Investor Class, Market Class,
Daily Class, Service Class and Investor B Shares commenced operations on May
17, 1999, September 22, 1994, April 12, 1999, May 3, 1996, April 12, 1999,
May 17, 1999 and October 15, 1999, respectively.
** The effect of interest expense on the operating expense ratio was less than
0.01%.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the deduction
of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 59
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 5.15% $1,026,684 0.20%**(b) 5.06% 0.28%(b)
1.00 4.72 1,382,688 0.20+(b) 4.99+ 0.45+(b)
1.00 5.55 246,058 0.20 5.41 0.45
1.00 5.30 468,975 0.20 5.20 0.46
1.00 5.71 304,342 0.20 5.50 0.51
1.00 4.91 251,694 0.20 4.79 0.50
$1.00 4.45% $ 506,339 0.30%+**(b) 4.96%+ 0.38%+(b)
$1.00 5.00% $ 364,761 0.35%**(b) 4.91% 1.18%(b)
1.00 4.58 304,387 0.35+(b) 4.84+ 1.35+(b)
1.00 5.38 743,410 0.35 5.26 1.35
1.00 5.15 81,575 0.35 5.05 0.61
1.00 5.57 11,804 0.35 5.35 0.66
1.00 4.71 674 0.49 4.50 0.79
$1.00 4.89% $1,460,966 0.45%**(b) 4.81% 0.53%(b)
1.00 4.48 344,906 0.45+(b) 4.74+ 0.70+(b)
1.00 5.28 222,760 0.45 5.16 0.70
1.00 5.06 154,256 0.45 4.95 0.71
1.00 5.45 175,691 0.45 5.25 0.76
1.00 3.11 55,762 0.45+ 4.54+ 0.75+
$1.00 4.65% $ 573,261 0.55%+**(b) 4.71%+ 0.63%+(b)
$1.00 4.68% $1,511,932 0.65%**(b) 4.61% 0.73%(b)
1.00 4.31 1,169,932 0.62+(b) 4.57+ 0.90+(b)
1.00 5.18 265,495 0.55 5.06 0.90
1.00 4.92 123,396 0.55+ 4.85+ 0.81+
$1.00 4.40% $ 847,775 0.80%+**(b) 4.46%+ 0.88%+(b)
$1.00 3.63% $ 244,035 1.20%+**(b) 4.06%+ 1.28%+(b)
$1.00 1.94% $ 80 1.30%+**(b) 3.96%+ 1.38%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 60
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-----------------------------------------------
<S> <C> <C> <C>
GOVERNMENT RESERVES
CAPITAL CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0516 $(0.0516)
Period ended 3/31/1999(a) 1.00 0.0468 (0.0468)
Year ended 4/30/1998........................................ 1.00 0.0543 (0.0543)
Year ended 4/30/1997........................................ 1.00 0.0520 (0.0520)
Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556)
Year ended 4/30/1995........................................ 1.00 0.0463 (0.0463)
TRUST CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0448 $(0.0448)
LIQUIDITY CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0501 $(0.0501)
Period ended 3/31/1999(a)................................... 1.00 0.0454 (0.0454)
Year ended 4/30/1998........................................ 1.00 0.0528 (0.0528)
Year ended 4/30/1997........................................ 1.00 0.0505 (0.0505)
Year ended 4/30/1996........................................ 1.00 0.0537 (0.0537)
Year ended 4/30/1995........................................ 1.00 0.0453 (0.0453)
ADVISER CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0491 $(0.0491)
Period ended 3/31/1999(a)................................... 1.00 0.0445 (0.0445)
Year ended 4/30/1998........................................ 1.00 0.0518 (0.0518)
Year ended 4/30/1997........................................ 1.00 0.0495 (0.0495)
Year ended 4/30/1996........................................ 1.00 0.0527 (0.0527)
Period ended 4/30/1995*..................................... 1.00 0.0299 (0.0299)
INVESTOR CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0467 $(0.0467)
MARKET CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0471 $(0.0471)
Period ended 3/31/1999(a)................................... 1.00 0.0431 (0.0431)
Year ended 4/30/1998........................................ 1.00 0.0508 (0.0508)
Period ended 4/30/1997*..................................... 1.00 0.0482 (0.0482)
DAILY CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0443 $(0.0443)
SERVICE CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0348 $(0.0348)
INVESTOR B SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0185 $(0.0185)
INVESTOR C SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0126 $(0.0126)
</TABLE>
---------------
* Government Reserves Trust Class, Adviser Class, Investor Class, Market Class,
Daily Class, Service Class, Investor B and Investor C Shares commenced
operations on May 17, 1999, September 22, 1994, April 12, 1999, May 3, 1996,
April 12, 1999, June 8, 1999, November 2, 1999 and December 21, 1999,
respectively.
** The effect of interest expense on the operating expense ratio was less than
0.01%.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the deduction
of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 61
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 5.28% $381,336 0.20%**(b) 5.26% 0.29%(b)
1.00 4.78 229,561 0.20+(b) 5.05+ 0.44+(b)
1.00 5.57 190,607 0.20 5.43 0.45
1.00 5.33 125,377 0.20(b) 5.22 0.49(b)
1.00 5.71 58,121 0.20 5.48 0.53
1.00 4.72 2 0.32 4.35 0.54
$1.00 4.57% $125,504 0.30%+**(b) 5.16%+ 0.39%+(b)
$1.00 5.12% $140,328 0.35%**(b) 5.11% 1.14%(b)
1.00 4.63 59,551 0.35+(b) 4.90+ 1.29+(b)
1.00 5.40 32,773 0.35 5.28 1.30
1.00 5.19 6,482 0.35(b) 5.07 0.64(b)
1.00 5.51 129 0.35 5.33 0.68
1.00 4.59 2 0.40 4.27 0.62
$1.00 5.02% $477,205 0.45%**(b) 5.01% 0.54%(b)
1.00 4.54 88,836 0.45+(b) 4.80+ 0.69+(b)
1.00 5.30 70,164 0.45 5.18 0.70
1.00 5.07 24,845 0.45(b) 4.97 0.74(b)
1.00 5.39 108,168 0.45 5.23 0.78
1.00 3.04 99,246 0.57+ 4.10+ 0.79+
$1.00 4.77% $111,741 0.55%+**(b) 4.91%+ 0.64%+(b)
$1.00 4.81% $370,000 0.65%**(b) 4.81% 0.74%(b)
1.00 4.39 334,000 0.61+(b) 4.64+ 0.89+(b)
1.00 5.20 274,499 0.55 5.08 0.90
1.00 4.93 218,499 0.55+(b) 4.87+ 0.84+(b)
$1.00 4.52% $171,521 0.80%+**(b) 4.66%+ 0.89%+(b)
$1.00 3.53% $ 10,000 1.20%+**(b) 4.26%+ 1.29%+(b)
$1.00 1.86% $ 108 1.30%+**(b) 4.16%+ 1.39%+(b)
$1.00 1.26% $ 746 1.30%+**(b) 4.16%+ 1.39%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 62
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-----------------------------------------------
<S> <C> <C> <C>
MUNICIPAL RESERVES
CAPITAL CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0329 $(0.0329)
Period ended 3/31/1999(a)................................... 1.00 0.0292 (0.0292)
Year ended 4/30/1998........................................ 1.00 0.0353 (0.0353)
Year ended 4/30/1997........................................ 1.00 0.0337 (0.0337)
Year ended 4/30/1996........................................ 1.00 0.0362 (0.0362)
Year ended 4/30/1995........................................ 1.00 0.0313 (0.0313)
TRUST CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0280 $(0.0280)
LIQUIDITY CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0314 $(0.0314)
Period ended 3/31/1999(a)................................... 1.00 0.0278 (0.0278)
Year ended 4/30/1998........................................ 1.00 0.0341 (0.0341)
Year ended 4/30/1997........................................ 1.00 0.0323 (0.0323)
Year ended 4/30/1996........................................ 1.00 0.0347 (0.0347)
Year ended 4/30/1995........................................ 1.00 0.0304 (0.0304)
ADVISER CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0304 $(0.0304)
Period ended 3/31/1999(a)................................... 1.00 0.0270 (0.0270)
Year ended 4/30/1998........................................ 1.00 0.0332 (0.0332)
Year ended 4/30/1997........................................ 1.00 0.0313 (0.0313)
Year ended 4/30/1996........................................ 1.00 0.0337 (0.0337)
Period ended 4/30/1995*..................................... 1.00 0.0199 (0.0199)
INVESTOR CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0287 $(0.0287)
MARKET CLASS SHARES
Year ended 3/31/2000........................................ $1.00 $0.0284 $(0.0284)
Period ended 3/31/1999(a)................................... 1.00 0.0254 (0.0254)
Year ended 4/30/1998........................................ 1.00 0.0318 (0.0318)
Period ended 4/30/1997*..................................... 1.00 0.0301 (0.0301)
DAILY CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0262 $(0.0262)
SERVICE CLASS SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0048 $(0.0048)
INVESTOR B SHARES
Period ended 3/31/2000*..................................... $1.00 $0.0062 $(0.0062)
</TABLE>
---------------
* Municipal Reserves Trust Class, Adviser Class, Investor Class, Market Class,
Daily Class, Service Class and Investor B Shares commenced operations on May
17, 1999, September 22, 1994, April 12, 1999, May 3, 1996, April 12, 1999,
January 21, 2000 and December 27, 1999, respectively.
** The effect of interest expense on the operating expense ratio was 0.02%.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 63
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1.00$..... 3.34% $172,693 0.20% 3.29% 0.30%
1.00..... 2.96 134,268 0.20+ 3.10+ 0.48+
1.00..... 3.61 74,251 0.20** 3.53 0.48
1.00..... 3.44 59,701 0.20 3.38 0.52
1.00..... 3.70 48,482 0.20 3.61 0.58
1.00..... 3.19 32,353 0.23 3.36 0.59
1.00$..... 2.83% $526,831 0.30%+ 3.19%+ 0.40%+
1.00$..... 3.18% $ 89,050 0.35% 3.14% 1.15%
1.00..... 2.81 68,393 0.35+ 2.95+ 1.33+
1.00..... 3.43 53,074 0.35** 3.38 1.33
1.00..... 3.29 54,677 0.35 3.23 0.67
1.00..... 3.52 6,734 0.35 3.46 0.73
1.00..... 3.09 2,591 0.33 3.26 0.69
1.00$..... 3.08% $ 77,511 0.45% 3.04% 0.55%
1.00..... 2.73 55,434 0.45+ 2.85+ 0.73+
1.00..... 3.34 29,936 0.45** 3.28 0.73
1.00..... 3.19 7,296 0.45 3.13 0.77
1.00..... 3.43 55,511 0.45 3.36 0.83
1.00..... 2.02 64,123 0.48+ 3.11+ 0.84+
1.00$..... 2.90% $ 64,782 0.55%+ 2.94%+ 0.65%+
1.00$..... 2.87% $149,000 0.65% 2.84% 0.75%
1.00..... 2.57 146,999 0.61+ 2.69+ 0.93+
1.00..... 3.24 92,000 0.55** 3.18 0.93
1.00..... 3.06 78,300 0.55+ 3.03+ 0.87+
1.00$..... 2.65% $429,644 0.80%+ 2.69%+ 0.90%+
1.00$..... 0.48% $ 1,000 1.20%+ 2.29%+ 1.30%+
1.00$..... 0.62% $ 91 1.30%+ 2.19%+ 1.40%+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 64
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED DIVIDENDS
VALUE NET AND UNREALIZED FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS INCOME
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX EXEMPT RESERVES
TRUST CLASS SHARES
Period ended 3/31/2000**.............................. $1.00 $ 0.0239 -- $(0.0239)
ADVISER CLASS SHARES
Period ended 3/31/2000................................ $1.00 $ 0.0232 -- $(0.0232)
Period ended 5/14/1999*............................... 1.00 0.0052 -- (0.0052)
Year ended 2/28/1999.................................. 1.00 0.0268 -- (0.0268)
Year ended 2/28/1998.................................. 1.00 0.0309 -- (0.0309)
Year ended 2/28/1997.................................. 1.00 0.0291 -- (0.0291)
Year ended 2/29/1996.................................. 1.00 0.0331 $ 0.0001 (0.0331)
INVESTOR CLASS SHARES
Period ended 3/31/2000................................ $1.00 $ 0.0223 -- $(0.0223)
Period ended 5/14/1999*............................... 1.00 0.0051 -- (0.0051)
Year ended 2/28/1999.................................. 1.00 0.0261 -- (0.0261)
Year ended 2/28/1998.................................. 1.00 0.0302 -- (0.0302)
Year ended 2/28/1997.................................. 1.00 0.0284 -- (0.0284)
Year ended 2/29/1996.................................. 1.00 0.0324 $(0.0001) (0.0324)
DAILY CLASS SHARES
Period ended 3/31/2000................................ $1.00 $ 0.0201 -- $(0.0201)
Period ended 5/14/1999*............................... 1.00 0.0045 -- (0.0045)
Year ended 2/28/1999.................................. 1.00 0.0238 -- (0.0238)
Year ended 2/28/1998.................................. 1.00 0.0279 -- (0.0279)
Period ended 2/28/1997**.............................. 1.00 0.0107 -- (0.0107)
</TABLE>
---------------
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund Horizon Service, S, X and Pacific Horizon
Shares, which were reorganized into the California Tax Exempt Reserves
Adviser Class, Daily Class, Daily Class and Investor Class Shares,
respectively, as of May 21, 1999. Prior to May 21, 1999, the Fund's
investment adviser was Bank of America National Trust and Savings
Association. Effective May 21, 1999, its investment adviser became Banc of
America Advisors, Inc. and its investment sub-adviser became Banc of America
Capital Management, Inc.
** California Tax Exempt Reserves Trust Class and Daily Class Shares commenced
operations on May 24, 1999 and October 2, 1996, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 65
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO EXPENSES TO
END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1.00$..... 2.41% $394,837 0.30%+ 2.70%+ 0.38%+
1.00$..... 2.32% $360,319 0.45%+ 2.55%+ 0.53%+
1.00..... 0.52 636,000 0.50+ 2.49+ 0.52+
1.00..... 2.71 709,000 0.49(a) 2.65 0.49(a)
1.00..... 3.13 671,000 0.50(a) 3.06 0.50(a)
1.00..... 2.95 472,000 0.50(a) 2.92 0.50(a)
1.00..... 3.36 203,000 0.55(a) 3.43 0.55(a)
1.00$..... 2.23% $284,041 0.55%+ 2.45%+ 0.63%+
1.00..... 0.50 503,000 0.58+ 2.43+ 0.62+
1.00..... 2.64 539,000 0.56(a) 2.61 0.59(a)
1.00..... 3.06 598,000 0.57(a) 3.01 0.60(a)
1.00..... 2.88 493,000 0.57(a) 2.83 0.60(a)
1.00..... 3.29 528,000 0.62(a) 3.35 0.63(a)
1.00$..... 2.01% $699,689 0.80%+ 2.20%+ 0.88%+
1.00..... 0.45 334,000 0.80+ 2.21+ 0.82+
1.00..... 2.41 336,000 0.79(a) 2.35 0.79(a)
1.00..... 2.83 172,000 0.80(a) 2.80 0.80(a)
1.00..... 1.09 29,000 0.80+(a) 2.66+ 0.80+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 66
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS
Nations Reserves ("Reserves"), formerly known as Nations Institutional Reserves,
is registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company. At March 31, 2000, Reserves offered
sixteen separate portfolios. These financial statements pertain only to the six
money market portfolios of Reserves: Nations Cash Reserves, Nations Money Market
Reserves, Nations Treasury Reserves, Nations Government Reserves, Nations
Municipal Reserves and Nations California Tax Exempt Reserves (individually, a
"Portfolio", and collectively, the "Portfolios"). Financial statements for the
other portfolios of Reserves are presented under separate cover. At March 31,
2000, the Portfolios offered ten classes of shares: Capital Class Shares, Trust
Class Shares, Liquidity Class Shares, Adviser Class Shares, Investor Class
Shares, Market Class Shares, Daily Class Shares, Service Class Shares, Investor
B Shares and Investor C Shares. Shareholders of a Portfolio have equal voting
rights on matters affecting all shareholders of the Portfolio. In addition, each
class of shares of a Portfolio has exclusive voting rights on matters that
relate solely to that class and separate voting rights on matters in which the
interests of one class differ from the interests of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Portfolios in the
preparation of their financial statements.
Securities valuation: Securities are valued on the basis of amortized cost,
which approximates current market value. Amortized cost valuation involves
initially valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or accretion premium, as long as the
effect of fluctuating interest rates on the market value of the instrument is
not significant. Restricted securities and certain other assets may be valued
under procedures adopted by the Board of Trustees.
Repurchase agreements: Each Portfolio may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, a Portfolio
takes possession of an underlying debt obligation subject to an obligation of
the seller to repurchase, and the obligation of the Portfolio to resell, the
underlying debt obligation at an agreed-upon price and date, thereby determining
the yield during the Portfolio's holding period. This arrangement results in a
fixed rate of return that is not subject to market fluctuations during the
Portfolio's holding period. The value of the collateral is at least equal at all
times to the total amount of the repurchase obligations, including interest.
Generally, in the event of counterparty default, the Portfolio has the right to
use the collateral to offset losses incurred. There would be a potential loss to
the Portfolio in the event the Portfolio is delayed or prevented from exercising
its right to dispose of the collateral securities, including the risk of a
possible decline in the value of the underlying securities during the period the
Portfolio seeks to assert its right. The Portfolios' investment adviser and
sub-adviser, under the oversight of the Board of Trustees, monitor the value of
collateral received as well as the creditworthiness of those banks and dealers
with which the Portfolios enter into repurchase agreements to evaluate potential
risks.
Reverse repurchase agreements: Nations Cash Reserves, Nations Treasury Reserves
and Nations Government Reserves may enter into reverse repurchase agreements
with institutions that the Portfolios' investment adviser and sub-adviser have
determined are creditworthy. Under the terms of a typical reverse repurchase
agreement, a Portfolio sells securities and agrees to repurchase them at a
mutually agreed upon date and price. At the time the Portfolio enters into a
reverse repurchase agreement, it establishes a segregated account with its
custodian bank in which it will maintain cash, U.S. Government securities or
other appropriate liquid securities at least equal in value to the Portfolio's
obligations arising under the reverse repurchase agreement. Reverse repurchase
agreements involve the risk that the market value of the securities purchased
with the proceeds from the sale of securities received by the Portfolio may
decline below the price of the securities that the Portfolio is obligated to
repurchase. Securities subject to repurchase under reverse repurchase agreements
are designated in the Statements of net assets.
At March 31, 2000, Treasury Reserves had reverse repurchase agreements
outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount....................... $1,388,196,887
Maturity Date......................... 04/03/00
Market Value of Assets Sold Under $1,375,000,000
Agreements..........................
</TABLE>
The average daily balance of Treasury Reserves' reverse repurchase agreements
during the year ended March 31, 2000 was $861,196,131. Cash Reserves and
Government
62
<PAGE> 67
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Reserves did not enter into any reverse repurchase agreements during the year
ended March 31, 2000.
The proceeds received by Treasury Reserves under the reverse repurchase
agreements were reinvested in a tri-party repurchase agreement. Net fees earned
during the year ended March 31, 2000, representing the difference between
interest rates on the reverse repurchase and repurchase agreements, amounted to
$1,225,285 and have been included in interest income in the Statements of
operations.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums calculated ratably, is
earned from settlement date and recorded on an accrual basis. Dividend income is
recorded on ex-dividend date. Each Portfolio's investment income and realized
and unrealized gains and losses are allocated among its classes based upon the
relative net assets of each class of shares.
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 Portfolio
to declare dividends from net investment income daily and to pay such dividends
monthly. Each Portfolio will distribute net realized short-term capital gains
annually after the fiscal year in which the capital gains were earned or more
frequently to maintain a net asset value of $1.00 per share, unless offset by
any available capital loss carryforward. Income distributions and capital gain
distributions on a Portfolio level are determined in accordance with federal
income tax regulations which may differ from generally accepted accounting
principles.
Certain reclassifications are made to each Portfolio's capital accounts to
reflect income and gains available for distribution (or available capital loss
carryforwards) under Federal income tax regulations. These reclassifications are
due to different book and tax accounting for dividend reclassifications.
Reclassifications for the period ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
INCREASE/
(DECREASE) INCREASE/
INCREASE/ UNDISTRIBUTED (DECREASE)
(DECREASE) NET ACCUMULATED
PAID-IN INVESTMENT NET REALIZED
CAPITAL INCOME GAIN/(LOSS)
(000) (000) (000)
-----------------------------------------
<S> <C> <C> <C>
Cash Reserves......... $ -- $ -- $ --
Money Market
Reserves............ -- -- --
Treasury Reserves..... -- -- --
Government Reserves... -- --* --*
Municipal Reserves.... -- -- --
California Tax Exempt
Reserves............ -- -- --
</TABLE>
---------------
* Amount represents less than $500.
Federal income tax: Each Portfolio intends to continue to qualify as a
regulated investment company by complying with the applicable requirements of
the Internal Revenue Code of 1986, as amended, and by distributing substantially
all of its earnings to its shareholders. Therefore, no provision is made for
Federal income or excise taxes.
Expenses: General expenses of Reserves are allocated to the Portfolios based
upon their relative net assets or other expense allocation methodologies
determined by the nature of the expense. Expenses directly attributable to a
Portfolio or class of shares are charged to such Portfolio or class.
Cash flow information: Cash, as used in the Statement of cash flows, is the
amount reported in the Statements of net assets and represents cash on hand at a
Portfolio's custodian. Reserves issues and redeems shares, invests in
securities, and distributes dividends from net investment income and net capital
gains (which are either paid in cash or reinvested at the discretion of
shareholders). These activities are reported in the Statements of changes in net
assets. Information on cash payments is presented in the Statement of cash
flows.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Reserves has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI"), a wholly-
owned subsidiary of Bank of America, N.A. ("Bank of America"), which in turn is
a wholly-owned banking subsidiary of Bank of America Corporation, a bank holding
company organized as a Delaware corporation,
63
<PAGE> 68
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
pursuant to which BAAI provides investment advisory services to the Portfolios.
Under the terms of the Investment Advisory Agreement, BAAI is currently entitled
to receive an advisory fee, calculated daily and payable monthly, at the maximum
annual rate of 0.15% of each Portfolio's average daily net assets. Effective May
14, 1999, the maximum advisory fee payable by the Portfolios decreased by 0.15%
of the Portfolios' average daily net assets.
Reserves has entered into a sub-advisory agreement with BAAI and Banc of America
Capital Management, Inc. ("BACAP") (formerly known as TradeStreet Investment
Associates, Inc.), a wholly-owned subsidiary of Bank of America, pursuant to
which BACAP is entitled to receive a sub-advisory fee from BAAI at the maximum
annual rate of 0.033% of each Portfolio's average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of Reserves.
Under the co-administration agreements, Stephens and BAAI are entitled to
receive a combined fee, computed daily and paid monthly, at the annual rate of
0.10% of each Portfolio's average daily net assets. The Bank of New York ("BNY")
serves as sub-administrator of Reserves pursuant to an agreement with BAAI. For
the period ended March 31, 2000, Stephens earned $3,035,177 from the Portfolios
for its co-administration services and BAAI earned $1,165,872 for its
co-administration services.
BAAI and/or the sub-adviser and Stephens may, from time to time, reduce their
fees payable by each Portfolio. Effective August 1, 1999, BAAI and/or the
sub-adviser and Stephens agreed to reimburse expenses and/or waive their fees
until July 31, 2000 to the extent that total expenses (excluding shareholder
servicing and distribution fees) exceed an annual rate of 0.20% of each
Portfolio's average daily net assets. Prior to that date, BAAI and/or the sub-
adviser and Stephens had voluntarily agreed to reimburse expenses and/or waive
their fees to maintain these total expense limits.
BNY also serves as the custodian of Reserves' assets. For the period ended March
31, 2000, expenses of certain Portfolios were reduced by $150,281 under expense
offset arrangements with BNY. The Portfolios could have invested a portion of
the assets utilized in connection with the expense offset arrangements in an
income producing asset if they had not entered into such arrangements. Municipal
Reserves and California Tax Exempt Reserves do not participate in the expense
offset arrangements.
Effective December 1, 1999, First Data Investor Services Group, Inc. ("First
Data"), the transfer agent for the Portfolios' shares, was acquired by PFPC Inc.
("PFPC"). PFPC provides the same services as the transfer agent for the
Portfolios' shares as were previously provided by First Data. Bank of America
serves as the sub-transfer agent for the Capital and Trust Class Shares of the
Portfolios. Stephens serves as distributor of the Portfolios' shares.
Reserves eligible Trustees may participate in non-qualified deferred
compensation and retirement plans which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Portfolios' assets. Income earned on
each plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of the Nations Treasury Fund, a portfolio of Nations Fund,
Inc. The expense for the deferred compensation and retirement plans is included
in "Trustees' fees and expenses" in the Statements of operations.
Certain other affiliated Nations Funds have made daily investments of cash
balances in Cash Reserves, pursuant to an exemptive order received from the
Securities and Exchange Commission. At March 31, 2000, approximately 0.06% of
the net assets of the Cash Reserves was held by other affiliated Nations Funds.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
Reserves has adopted distribution plans pursuant to Rule 12b-1 under the 1940
Act for Liquidity Class Shares ("Liquidity Class Shares Plan"), Market Class
Shares ("Market Class Shares Plan"), Daily Class Shares ("Daily Class Shares
Plan"), Investor Class Shares ("Investor Class Shares Plan"), Investor B Shares
("Investor B Shares Plan"), Investor C Shares ("Investor C Shares Plan") and
Service Class Shares ("Service Class Shares Plan") of the Portfolios. Under the
Liquidity Class Shares Plan, Reserves may reimburse Stephens for actual expenses
incurred by Stephens in connection with its distribution efforts up to 0.30% of
the average daily net assets of the Liquidity Class Shares of the Portfolios.
Under the Market Class Shares Plan, Reserves may compensate or reimburse
Stephens for distribution activities or expenses up to 0.20% of the average
daily net assets of the Market Class Shares of the Portfolios. Under the Daily
Class Shares Plan, Reserves may reimburse Stephens for actual expenses incurred
by Stephens in connection with its distribution efforts up to 0.35% of the
average daily net assets of the Daily Class
64
<PAGE> 69
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Shares of the Portfolios. Under the Investor Class Shares Plan, Reserves may
reimburse Stephens for actual expenses incurred by Stephens in connection with
its distribution efforts up to 0.10% of the average daily net assets of the
Investor Class Shares of the Portfolios. Under the Investor B Shares Plan,
Investor C Shares Plan and Service Class Shares Plan, Reserves may reimburse
Stephens for actual expenses incurred by Stephens in connection with its
distribution efforts up to 0.75% of the average daily net assets of the Service
Class Shares, Investor B Shares, Investor C Shares of the Portfolios,
respectively.
Currently, Reserves is not reimbursing Stephens for distribution expenses for
Liquidity Class Shares. Unreimbursed expenses incurred by Stephens in a given
year may not be recovered by Stephens in subsequent years.
In addition, the Liquidity Class Shares Plan permits Reserves to pay Stephens an
annual fee of up to 0.30% of the average daily net assets of the Liquidity Class
Shares of the Cash Reserves, Money Market Reserves, Government Reserves,
Municipal Reserves and California Tax-Exempt Reserves and 0.35% of the average
daily net assets of Treasury Reserves. Stephens may use this fee to compensate
certain financial institutions, with which it has entered into servicing and/or
distribution agreements, that provide administrative and/or distribution
services to Liquidity Class shareholders. Currently, Reserves is not
compensating Stephens for providing such services.
Reserves also has adopted shareholder servicing plans ("Servicing Plans") for
the Liquidity, Adviser, Market, Daily, Investor, Investor B, Investor C and
Service Class Shares of the Portfolios. Under the Servicing Plans, a Portfolio
may pay servicing agents that have entered into a shareholder servicing
agreement with Reserves for certain shareholder support services that are
provided by the servicing agents to holders of the classes' shares. Payments
under the Servicing Plans will not exceed 0.25%, on an annualized basis, of the
average daily net assets of the classes' shares and are charged as expenses of
each Portfolio directly to the applicable class.
Reserves also has adopted shareholder administration plans ("Administration
Plans") for the Investor B, Investor C and Trust Class Shares of the Portfolios.
Under the Administration Plans, a Portfolio may pay servicing agents that have
entered into a shareholder servicing agreement with Reserves for certain
shareholder support services that are provided by the servicing agents to
holders of the classes' shares. Payments under the Administration Plans will not
exceed 0.10%, on an annualized basis, of the average daily net assets of the
classes' shares and are charged as expenses of each Portfolio directly to the
applicable class.
At March 31, 2000, the rates in effect, as a percentage of average daily net
assets, were as follows:
<TABLE>
<CAPTION>
CURRENT PLAN(S)
RATE LIMIT
--------------------
<S> <C> <C>
Distribution Plan:
Liquidity Class:
Treasury Reserves................ 0.00% 0.65%
Other Funds...................... 0.00% 0.60%
Investor Class..................... 0.10% 0.10%
Market Class....................... 0.20% 0.20%
Daily Class........................ 0.35% 0.35%
Service Class, Investor B and
Investor C Shares................ 0.75% 0.75%
Shareholder Servicing Plan:
Liquidity Class.................. 0.15% 0.25%
Adviser, Investor, Market, Daily,
Service Class, Investor B and
Investor C Shares.............. 0.25% 0.25%
Shareholder Administration Plan:
Trust Investor B and Investor C
Class.......................... 0.10% 0.10%
</TABLE>
A substantial portion of the expenses incurred pursuant to these plans is paid
to affiliates of Bank of America and BAAI.
4. SHARES OF BENEFICIAL INTEREST
At March 31, 2000, an unlimited number of shares of beneficial interest without
par value was authorized for Reserves. Reserves' Declaration of Trust authorizes
the Board of Trustees to classify or reclassify any authorized, but unissued
shares into one or more additional classes or series of shares. See Schedules of
capital stock activity.
5. RESTRICTED SECURITIES
Certain securities may be subject to legal restrictions and may be difficult to
sell. No Portfolio will invest more than 10% of the value of its net assets in
securities that are considered illiquid.
The following securities are considered both illiquid and restricted as to
resale. Accordingly, they are valued at their fair value under procedures
adopted by the Board of Trustees.
65
<PAGE> 70
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
CASH RESERVES
<TABLE>
<CAPTION>
VALUE FAIR PERCENTAGE HISTORICAL
PAR VALUE PER VALUE OF NET COST
ACQUISITION 3/31/00 UNIT 3/31/00 ASSETS 3/31/00
SECURITY DATE (000) 3/31/00 (000) 3/31/00 (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Allstate Life Insurance Company:
5.974% 04/01/00+.................................. 11/01/99 $ 25,000 $1.00 $ 25,000 0.1% $ 25,000
5.974% 04/01/00+.................................. 12/01/99 25,000 1.00 25,000 0.1 25,000
Commonwealth Life Insurance Company:
6.400% 04/01/00+.................................. 02/05/98 75,000 1.00 75,000 0.2 75,000
First Allmerica Financial Life Insurance Company:
6.349% 04/01/00+.................................. 02/25/99 50,000 1.00 50,000 0.1 50,000
6.186% 05/15/00+.................................. 05/14/98 50,000 1.00 50,000 0.1 50,000
6.480% 06/22/00+.................................. 09/22/98 50,000 1.00 50,000 0.1 50,000
GE Life and Annuity Assurance Company:
5.911% 04/07/00+.................................. 02/28/99 25,000 1.00 25,000 0.1 25,000
Goldman Sachs Group, Inc.:
6.160% 05/02/00................................... 11/15/99 200,000 1.00 200,000 0.5 200,000
6.090% 05/15/00................................... 03/01/00 150,000 1.00 150,000 0.4 150,000
6.200% 07/06/00................................... 03/01/00 200,000 1.00 200,000 0.5 200,000
Jackson National Life Insurance Company:
6.100% 04/01/00+.................................. 12/27/99 50,000 1.00 50,000 0.1 50,000
6.230% 06/14/00+.................................. 06/14/96 50,000 1.00 50,000 0.1 50,000
Monumental Life Insurance Company:
5.950% 04/01/00+.................................. 05/09/96 25,000 1.00 25,000 0.1 25,000
New York Life Insurance Company:
6.121% 04/07/00+.................................. 11/15/99 150,000 1.00 150,000 0.4 50,000
SMM Trust, Series 1999-B:
6.110% 05/26/00+.................................. 05/27/99 75,000 1.00 75,000 0.2 75,000
6.150% 06/13/00+.................................. 03/10/00 250,000 1.00 250,000 0.7 250,000
</TABLE>
---------------
+ Reset date
MONEY MARKET RESERVES
<TABLE>
<CAPTION>
VALUE FAIR PERCENTAGE HISTORICAL
PAR VALUE PER VALUE OF NET COST
ACQUISITION 3/31/00 UNIT 3/31/00 ASSETS 3/31/00
SECURITY DATE (000) 3/31/00 (000) 3/31/00 (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMM Trust Series 1999-B:
6.150% 06/13/00................................... 03/14/00 $ 50,000 $1.00 $ 50,000 0.7% $ 50,000
SMM Trust Series 1999-E:
6.021% 04/05/00................................... 05/21/99 50,000 1.00 50,000 0.7 50,000
SMM Trust Series 1999-J:
6.210% 06/13/00................................... 12/13/99 45,000 1.00 45,000 0.6 45,000
</TABLE>
TREASURY RESERVES
<TABLE>
<CAPTION>
VALUE FAIR PERCENTAGE HISTORICAL
PAR VALUE PER VALUE OF NET COST
ACQUISITION 3/31/00 UNIT 3/31/00 ASSETS 3/31/00
SECURITY DATE (000) 3/31/00 (000) 3/31/00 (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Repurchase Agreement with Deutsche Bank Securities,
Inc.,
5.920% 05/15/00................................... 03/15/00 $200,000 $1.00 $200,000 3.0% $200,000
Repurchase Agreement with Lehman Brothers, Inc.,
5.960% 05/16/00................................... 03/24/00 100,000 1.00 100,000 1.5 100,000
5.960% 05/16/00................................... 03/23/00 200,000 1.00 200,000 3.0 200,000
</TABLE>
66
<PAGE> 71
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MUNICIPAL RESERVES
<TABLE>
<CAPTION>
VALUE FAIR PERCENTAGE HISTORICAL
PAR VALUE PER VALUE OF NET COST
ACQUISITION 3/31/00 UNIT 3/31/00 ASSETS 3/31/00
SECURITY DATE (000) 3/31/00 (000) 3/31/00 (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alaska State Housing Finance Corporation, Housing
Revenue, Series 1998, P-Floats PA-332, (MBIA
Insured, Merrill Lynch SBPA),
3.960% 12/01/19................................... 07/06/98 $ 9,995 $1.00 $ 9,995 0.7% $ 9,995
Bristol, Tennessee, Health and Education Facilities,
Revenue, Series 1995A, (FGIC Insured, Citibank
SBPA),
3.950% 03/01/14................................... 05/18/98 8,500 1.00 8,500 0.6 8,500
Intermountain Power Agency, Municipal Trust
Receipts, Utah, Power Supply Revenue, Series 1996,
CMC4 (FSA Insured, Chase Manhattan SBPA),
3.950% 07/01/03................................... 05/18/98 9,900 1.00 9,900 0.7 9,900
Memphis, Tennessee Center City Revenue Finance
Corporation Multi-Family Housing Revenue, (Riverset
Apartments) Series 1998 - PT1019, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
4.140% 10/01/19................................... 02/02/00 7,420 1.00 7,420 0.5 7,420
South Carolina Jobs Economic Development Authority
Revenue, P-Floats - PT328, (St. Francis
Hospital - Bon Secours Project) Series 1999,
(Merrill Lynch Guarantee, Merrill Lynch SBPA),
4.110% 01/01/01................................... 02/03/00 30,000 1.00 30,000 2.0 30,000
Virginia Beach, Virginia Development Authority
Multi-Family Housing Revenue, (Briarwood Apartments)
Series 1999, (Merrill Lynch Guarantee, Merrill Lynch
SBPA),
4.110% 04/01/23................................... 10/15/99 13,080 1.00 13,080 0.9 13,080
</TABLE>
CALIFORNIA TAX EXEMPT RESERVES
<TABLE>
<CAPTION>
VALUE FAIR PERCENTAGE HISTORICAL
PAR VALUE PER VALUE OF NET COST
ACQUISITION 3/31/00 UNIT 3/31/00 ASSETS 3/31/00
SECURITY DATE (000) 3/31/00 (000) 3/31/00 (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
California Statewide Communities Development
Authority, Lease Revenue, Floating Rate Receipts,
Series 1999 - PA457
3.650% 10/01/33................................... 06/04/99 $ 1,000 $1.00 $ 1,000 0.6% $ 1,000
California Statewide Communities Development
Authority, Special Facilities Revenue, Series 1999,
3.650% 10/01/34................................... 03/08/99 25,940 1.00 25,940 1.5 25,940
California, GO,
3.150% 04/01/04................................... 04/15/99 15,100 1.00 15,100 0.9 15,100
</TABLE>
6. LINES OF CREDIT
Reserves participates with other Nations Funds in an uncommitted line of credit
provided by BNY under a line of credit agreement (the "Agreement"). Advances
under the Agreement may be made for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. Interest on borrowings is payable at a specified
Federal Funds rate plus 0.50% on an annualized basis. Each participating
Portfolio maintains a ratio of no less than 4 to 1 net assets (not including
amounts borrowed pursuant to the Agreement) to aggregate amount of indebtedness
pursuant to the Agreement.
67
<PAGE> 72
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the period ended March 31, 2000, borrowings by the Portfolios under the
Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
PORTFOLIO (000) RATE
-----------------------------------------------------------
<S> <C> <C>
Cash Reserves..................... $5,059 5.76%
Money Market Reserves............. 1,513 5.86
Treasury Reserves................. 443 5.83
Government Reserves............... 29 5.71
</TABLE>
The average amount outstanding was calculated based on daily balances in the
period.
Reserves also participates with other Nations Funds in a committed line of
credit provided by BNY. Interest on borrowings under the committed line is
payable at a specified Federal Funds rate plus 0.50% on an annualized basis. A
facility fee of 0.09% per annum of the total amounts available under the line of
credit is charged, of which each Portfolio has agreed to pay its pro rata share.
This fee is paid quarterly in arrears. Each participating Portfolio is required
to maintain an asset coverage ratio of at least 300% under the terms of the
arrangement. For the period ended March 31, 2000, there were no borrowings by
the Portfolios under the committed line of credit.
7. CAPITAL LOSS CARRYFORWARD
At March 31, 2000, the Portfolios had available for Federal income tax purposes
the following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2001 2002 2003 2004 2005 2006 2007 2008
(000) (000) (000) (000) (000) (000) (000) (000)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Reserves............................. -- $2,581 -- -- -- -- $17 $--
Treasury Reserves......................... $11 9 $3 $39 $54 $26 2 --
Government Reserves....................... -- 607 -- -- -- 20 36 --
Municipal Reserves........................ 66 19 38 31 15 18 1 --
California Tax Exempt Reserves............ -- -- 4 -- 52 --* -- 87
</TABLE>
----------------------
* Amount represents less than $500.
At March 31, 2000, the following Portfolios utilized capital losses during the
period as follows:
<TABLE>
<CAPTION>
CAPITAL
PORTFOLIO LOSSES UTILIZED
--------- (000)
-----------------------------------------------------------------------------
<S> <C>
Cash Reserves............................................... $ 2
Money Market Reserves....................................... 13
Treasury Reserves........................................... 2
Municipal Reserves.......................................... 5
</TABLE>
Under current tax law, capital losses realized after October 31 may be deferred
and treated as occurring on the first day of the following fiscal year.
For the fiscal year ended March 31, 2000, the following Portfolios have elected
to defer losses occurring between November 1, 1999 and March 31, 2000 under
these rules, as follows:
<TABLE>
<CAPTION>
CAPITAL
PORTFOLIO LOSSES DEFERRED
--------- (000)
-----------------------------------------------------------------------------
<S> <C>
Cash Reserves............................................... $3
Government Reserves......................................... 4
</TABLE>
68
<PAGE> 73
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
8. REORGANIZATIONS
On May 15, 1998, Treasury Reserves (the "Acquiring Fund"), acquired the assets
and certain liabilities of The Emerald Treasury Advantage Institutional Fund
(the "Acquired Fund") in a tax-free reorganization in exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Fund's shareholders. The value of shares issued by the Acquiring Fund is
presented in the Schedules of capital stock activity. Net assets as of the
reorganization date of the Acquired Fund and Acquiring Fund prior to
acquisition, and the Acquiring Fund immediately after acquisition, were
$144,375,000, $1,630,778,000 and $1,775,153,000, respectively.
On May 22, 1998, Money Market Reserves (the "Acquiring Fund"), a newly
established Portfolio, acquired the assets and certain liabilities of The
Emerald Prime Advantage Institutional Fund (the "Acquired Fund") pursuant to a
plan of reorganization approved by the Acquired Fund's shareholders. The
acquisition was accomplished by a tax-free exchange of shares of the Acquiring
Fund in an amount equal to the value of the outstanding shares of the Acquired
Fund. The financial statements of the Acquiring Fund reflect the historical
financial results of the Acquired Fund prior to the reorganization.
Additionally, the fiscal year end of the Acquired Fund for financial reporting
purposes was changed to coincide with that of the Trust.
ACQUISITION OF THE PACIFIC HORIZON FUNDS
On May 14, 1999, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets and liabilities of the Pacific Horizon Funds, also listed
below (each an "Acquired Fund"), in a tax-free reorganization in exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
each Acquired Fund's shareholders. The number and value of shares issued by the
Acquiring Fund are presented in the Schedules of capital stock activity. Net
assets and unrealized appreciation as of the reorganization date were as
follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Reserves Pacific Horizon Prime Fund $13,963,107 $9,973,934 $23,937,041
Treasury Reserves Pacific Horizon Treasury Fund 3,144,071 2,533,049 5,677,120
Government Reserves Pacific Horizon Government Fund 471,810 759,789 1,231,599
Government Reserves Pacific Horizon Treasury Only
Fund 423,864 759,789 1,183,653
Municipal Reserves Pacific Horizon Tax Exempt Fund 754,048 380,361 1,134,409
</TABLE>
On May 21, 1999, California Tax-Exempt Reserves (the "Acquiring Fund"), a newly
established portfolio, acquired the assets and liabilities of the Pacific
Horizon California Tax-Exempt Money Market Fund (the "Acquired Fund") pursuant
to a plan of reorganization approved by its shareholders. The acquisition was
accomplished by a tax-free exchange of shares of Acquiring Fund in an amount
equal to the outstanding shares of the Acquired Fund. The financial statements
of the Acquiring Fund reflect the historical financial results of the Acquired
Fund prior to the reorganization.
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS
---------------------------------------------------------------------------
<S> <C>
California Tax-Exempt Money Market Nations California Tax Exempt Reserves
Horizon Service Shares Adviser Class Shares
Pacific Horizon Shares Investor Class Shares
S Shares Daily Class Shares
X Shares Daily Class Shares
</TABLE>
69
<PAGE> 74
NATIONS RESERVES MONEY MARKET FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS INSTITUTIONAL RESERVES
In our opinion, the accompanying statements of net assets, and the related
statements of operations, of cash flows for Nations Treasury Reserves and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Nations Cash Reserves, Nations
Money Market Reserves, Nations Treasury Reserves, Nations Government Reserves,
Nations Municipal Reserves and Nations California Tax Exempt Reserves (formerly
Pacific Horizon California Tax-Exempt Money Market Fund) (each a series of
Nations Institutional Reserves, hereafter referred to as the "Trust") at March
31, 2000, and the results of each of their operations, the cash flows for
Nations Treasury Reserves, the changes in each of their net assets and the
financial highlights for each of the periods indicated, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at March 31, 2000 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above. The statements of changes in
net assets of Nations Money Market Reserves for the period December 1, 1997
through May 15, 1998 and the financial highlights for the periods indicated were
audited by other independent accountants whose report dated July 1, 1998
expressed an unqualified opinion on those statements.
PricewaterhouseCoopers LLP
New York, New York
May 19, 2000
70
<PAGE> 75
NATIONS RESERVES MONEY MARKET FUNDS
TAX INFORMATION (UNAUDITED)
For the period ended March 31, 2000, all of the distributions made from
investment income of Nations Municipal Reserves and Nations California Tax
Exempt Reserves are tax exempt for regular Federal income tax purposes. A
portion of this income may be subject to Federal Alternative Minimum Tax.
71
<PAGE> 76
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<PAGE> 78
P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.626.2275 (Institutional Investors)
Toll free 1.800.321.7854 (Individual Investors)
NATIONS FUNDS
RESERVESAR (3/00)
