-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N+2T5oRTAowywQWUvgg3nlx6Opb3dKIFPZlkLnsZZVvkGmOZNw8deomg7ja5/ZLR n26m2as2PckejKTQGNbU2Q== 0000950144-02-012541.txt : 20021209 0000950144-02-012541.hdr.sgml : 20021209 20021206173453 ACCESSION NUMBER: 0000950144-02-012541 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020930 FILED AS OF DATE: 20021209 EFFECTIVENESS DATE: 20021209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONS FUND TRUST CENTRAL INDEX KEY: 0000769100 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04305 FILM NUMBER: 02851521 BUSINESS ADDRESS: STREET 1: 1 BANK OF AMERICA PLAZA CITY: CHARLOTTE STATE: NC ZIP: 28255 BUSINESS PHONE: 8003217854 MAIL ADDRESS: STREET 1: ONE BANK OF AMERICA PLAZA CITY: CHARLOTTE STATE: NC ZIP: 28255 FORMER COMPANY: FORMER CONFORMED NAME: MARKETMASTER TRUST DATE OF NAME CHANGE: 19920203 FORMER COMPANY: FORMER CONFORMED NAME: MARKETMASTER TRUST/DE/ DATE OF NAME CHANGE: 19920407 FORMER COMPANY: FORMER CONFORMED NAME: NATIONS FUND DATE OF NAME CHANGE: 19921228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONS INSTITUTIONAL RESERVES CENTRAL INDEX KEY: 0000859750 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06030 FILM NUMBER: 02851522 BUSINESS ADDRESS: STREET 1: ONE NATIONSBANK PLZ CITY: CHARLOTTE STATE: NC ZIP: 28255 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: ONE NATIONSBANK PLAZA CITY: CHARLOTTE STATE: NC ZIP: 28255 FORMER COMPANY: FORMER CONFORMED NAME: SEI CAPITOL FUNDS DATE OF NAME CHANGE: 19900318 FORMER COMPANY: FORMER CONFORMED NAME: CAPITOL MUTUAL FUNDS DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONS FUNDS TRUST CENTRAL INDEX KEY: 0001097519 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09645 FILM NUMBER: 02851523 BUSINESS ADDRESS: STREET 1: ONE BANK OF AMERICA PLAZA CITY: CHARLOTTE STATE: NC ZIP: 28255 BUSINESS PHONE: 8003217854 MAIL ADDRESS: STREET 1: ONE BANKOF AMERICA PLAZA CITY: CHARLOTTE STATE: NC ZIP: 28255 N-30D 1 g78792nv30d.txt NATIONS FUND TRUST (MUNI BOND SAR) Nations Short-Term Municipal Income Fund Nations Intermediate Municipal Bond Fund Nations Municipal Income Fund Nations CA Intermediate Municipal Bond Fund Nations CA Municipal Bond Fund Nations FL Intermediate Municipal Bond Fund Nations FL Municipal Bond Fund Nations GA Intermediate Municipal Bond Fund Nations KS Municipal Income Fund Nations MD Intermediate Municipal Bond Fund MUNICIPAL BOND FUNDS Nations NC Intermediate --------------------------------- Municipal Bond Fund Semiannual report for the period ended September 30, 2002 Nations SC Intermediate Municipal Bond Fund Nations TN Intermediate Municipal Bond Fund Nations TX Intermediate Municipal Bond Fund Nations VA Intermediate Municipal Bond Fund [NATIONS FUNDS LOGO] 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 Corporation, 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, LLC. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE PRESIDENTS' MESSAGE Dear Shareholder: The six-month period ended September 30, 2002, echoed stock investors' weariness of recurrent bear market battles. We now know this current economic slump, which many attributed to the events of September 11, 2001, was actually well underway beginning in March of 2001. The three major stock market indices -- the Dow Jones Industrial Average, Standard & Poor's 500 Composite Stock Price Index and Nasdaq Composite Index(1)-- posted remarkably poor returns for the period. Bonds, represented by the Lehman Aggregate Bond Index(2), however, produced slightly positive returns for the same period. HISTORICAL PERSPECTIVE While equity markets suffered a dismal six months, today's economy is vastly different from the Great Depression and the severe bear market of 1973 and 1974. The Depression was marked by 25% unemployment, significant price declines and a contracting money supply, while the mid-70s saw high inflation due to the oil embargo and lofty interest rates. In contrast, today unemployment, inflation and interest rates are low and the money supply is increasing. We feel these conditions may provide a stimulus for future economic growth. The Federal Reserve Board (the Fed) left interest rates unchanged during the period, stating in August that they felt demand is growing at a moderate pace. Policymakers, however, alluded to the risk of a possible attack against Iraq as weighing on the economy -- a risk that has supplanted that of corporate governance and accounting irregularities that were issues facing the markets and economy earlier in the summer. These geopolitical and military risks have caused the Fed to continue to assess the risks to the economy as weakness as opposed to inflation. THINK BEFORE YOU REACT History has shown us that patient investors have generally been rewarded by the long-term performance of the stock markets despite the occasional severe market volatility. We believe investors with a three- to five-year investment time horizon or longer should be invested in the market, but with a diversified portfolio. We believe that a carefully selected portfolio of stocks and bonds is a sensible way to reduce some of the risk associated with investing. Market declines like we have experienced recently are never easy to live through. As painful as these drops can be in the short term, they often create tremendous opportunity, setting the stage for tomorrow's gains. By reacting to frightening headlines and selling-off investments, investors may be selling at market lows, in addition to missing out on potential gains when the markets recover. We encourage you to partner with your investment professional to review your financial goals not just during volatile times, but on a more regular basis. (1)The Dow Jones Industrial Average is a price-weighted index of 30 of the largest, most widely held stocks traded on the New York Stock Exchange. The Standard & Poor's 500 Composite Stock Price Index is an unmanaged index of 500 widely held common stocks. The Nasdaq Composite Index tracks the performance of domestic common stocks traded on the regular Nasdaq market as well as National Market System traded foreign stocks and ADRs. The indices are unavailable for investment and do not reflect fees, broker commissions or other expenses of investing. (2)The Lehman Aggregate Bond Index is an unmanaged index made up of the Lehman Government/Corporate Index, the Asset-Backed Securities Index and the Mortgage-Backed Securities Index and includes U.S. government agency and U.S. Treasury securities, corporate bonds and mortgage-backed securities. All dividends are reinvested. The indices are unavailable for investment and do not reflect fees, brokerage commissions or other expenses of investing. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. PRESIDENTS' MESSAGE CONTINUED... OUR NEAR-TERM OUTLOOK We believe, in the short run, it is reasonable to think that the market will continue to be volatile. The threat of war with Iraq continues to weigh on the market. A prolonged military conflict in the Middle East extending over several months could further undermine business and consumer confidence. Domestically, bankruptcies, accounting scandals and the subsequent arrest and indictments of members of senior management of a number of well-known companies, of course, compound the market's lack of confidence. Investors need to be patient until unrealistic earnings projections have been corrected, the Iraqi situation is resolved and the economy regains its momentum. QUESTIONS OR COMMENTS Should you have any questions or comments on your semiannual report, please contact your investment professional or call us at 1.800.321.7854. If you do not have an investment professional and would like us to put you in contact with one, just let us know. You can visit us online anytime at www.nationsfunds.com for the most current performance as well as other information about your fund. Thank you for being a part of the Nations Funds family. Sincerely, /S/ A. MAX WALKER A. MAX WALKER PRESIDENT AND CHAIRMAN OF THE BOARD NATIONS FUNDS /S/ ROBERT H. GORDON ROBERT H. GORDON PRESIDENT BANC OF AMERICA ADVISORS, LLC September 30, 2002 P.S. On November 6, 2002, the Fed lowered the federal funds rate by 50 basis points to 1.25%. TABLE OF CONTENTS FINANCIAL STATEMENTS Statements of net assets Nations Short-Term Municipal Income Fund 3 Nations Intermediate Municipal Bond Fund 19 Nations Municipal Income Fund 57 Nations CA Intermediate Municipal Bond Fund 73 Nations CA Municipal Bond Fund 78 Nations FL Intermediate Municipal Bond Fund 87 Nations FL Municipal Bond Fund 95 Nations GA Intermediate Municipal Bond Fund 99 Nations KS Municipal Income Fund 106 Nations MD Intermediate Municipal Bond Fund 111 Nations NC Intermediate Municipal Bond Fund 120 Nations SC Intermediate Municipal Bond Fund 128 Nations TN Intermediate Municipal Bond Fund 135 Nations TX Intermediate Municipal Bond Fund 140 Nations VA Intermediate Municipal Bond Fund 147 Statements of operations 158 Statements of changes in net assets 162 Schedules of capital stock activity 168 Financial highlights 184 Notes to financial statements 214
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[This page intentionally left blank.] NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 94.6% ALABAMA -- 1.2% $ 1,000 Alabama State, Public School and College Authority, Revenue, Series 1996, (MBIA Insured), 5.250% 11/01/05................................... Aaa AAA $ 1,100 2,000 Alabama, 21st Century Authority Settlement Revenue, 5.250% 12/01/07................................... Aa1 A 2,143 2,000 Butler, Alabama, Industrial Development Board, PCR Refunding, (James River Project) Series 1993, 5.500% 12/01/05................................... Baa3 NR 1,943 1,000 Huntsville, Alabama, GO Refunding, Series 2002F, 4.000% 08/01/05................................... Aa2 AA 1,058 3,085 Montgomery, Alabama, Downtown Redevelopment Authority Lease Revenue Refunding, (State of Alabama Project) Series 2002, 5.000% 10/01/07................................... Aaa AAA 3,439 1,140 Montgomery, Alabama, Water Works and Sewer Board, Water and Sewer System Revenue Refunding, Series 2002A, (AMBAC Insured), 5.000% 09/01/04................................... Aaa AAA 1,211 -------- 10,894 -------- ALASKA -- 2.3% 1,000 Alaska, Student Loan Corporation, Revenue, Series 1995A, AMT, (AMBAC Insured), 5.250% 07/01/03................................... Aaa AAA 1,023 4,600 Anchorage, Alaska, Electric Utility Revenue Refunding, Senior Lien, Series 1999, (MBIA Insured), 5.000% 06/01/06................................... Aaa AAA 5,044 1,450 Anchorage, Alaska, GO, Series 2002A, (MBIA Insured), 4.000% 06/01/04................................... Aaa AAA 1,506 4,890 Anchorage, Alaska, GO, Series 2002A, (MBIA Insured), 4.000% 06/01/06................................... Aaa AAA 5,196
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ ALASKA -- (CONTINUED) $ 2,250 Anchorage, Alaska, Telephone Utilities Revenue Refunding, Series 1994A, (AMBAC Insured), 4.500% 12/01/02................................... Aaa AAA $ 2,262 1,500 North Slope Borough, Alaska, GO, Series 2001A, (MBIA Insured), 4.680%& 06/30/07.................................. Aaa AAA 1,311 5,000 Valdez, Alaska, Marine Terminal Revenue Refunding, (Arco Transportation Alaska, Inc. Project) Series 1994B, (Atlantic Richfield Company Guarantee), Mandatory Put 01/01/03 @ 100, 3.100% 05/01/31................................... VMIG1 A1+ 5,015 -------- 21,357 -------- ARIZONA -- 2.5% 6,250 Arizona State, Transportation Board Excise Tax Revenue, (Maricopa County Regional Area Road Fund Project) Series 2002, 5.000% 12/15/05................................... Aa2 AA 6,843 1,370 Arizona State, Transportation Board Highway Revenue Refunding, Series 1993A, 5.000% 07/01/09................................... Aa2 AA 1,536 3,000 Coconino County, Arizona, Pollution Control Corporation Revenue, (Arizona Public Service Company Project) Series 1999, (Bank One Arizona N.A. LOC), Mandatory Put 04/07/03 @ 100, 4.000% 04/01/34................................... P1 A1 3,000 1,035 Maricopa County, Arizona, Unified School District Number 48, GO Refunding, Series 1991B, 6.300% 07/01/04................................... Aa2 AA 1,119
SEE NOTES TO FINANCIAL STATEMENTS. 3 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ ARIZONA -- (CONTINUED) $ 5,480 Northern Arizona University, Revenue Refunding, Series 2002, (FGIC Insured), 4.000% 06/01/04................................... Aaa AAA $ 5,692 5,000 Salt River, Arizona, Agriculture Improvement and Power District Electric System Revenue Refunding, (Salt River Project) Series 2001A, 5.000% 01/01/05................................... Aa2 AA 5,357 -------- 23,547 -------- ARKANSAS -- 2.3% 2,500 Arkansas State, Development Finance Authority, Facilities Revenue, (Waste Management Inc. Project) Series 2001, AMT, Mandatory Put 08/01/03 @ 100, 3.500% 08/01/21................................... NR BBB 2,504 8,550 Arkansas State, GO, Series 2001A, 4.000% 08/01/05................................... Aa2 AA 9,060 4,500 Crossett, Arkansas, PCR, (Georgia Pacific Corporation Project) Series 1984, 4.875% 10/01/07................................... Ba1 NR 4,172 5,000 Pope County, Arkansas, Revenue Refunding, (Entergy Arkansas Incorporated Project) Series 2001, AMT, Mandatory Put 09/01/05 @ 100, 5.050% 09/01/28................................... Baa3 BBB- 5,237 -------- 20,973 -------- CALIFORNIA -- 1.2% 8,725 California State, GO, Series 2000A-10-Reg-D, (Bayerishce Hypotheken-Und Vereinsbank SBPA), 1.840% 03/01/03................................... VMIG1 NR 8,725 2,015 Riverside County, California, Asset Leasing Corporation Leasehold Revenue, Series 1993C, Mandatory Put 12/01/02 @ 100, 7.940% 06/01/19................................... Aa3 A1 2,033 -------- 10,758 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ COLORADO -- 1.0% $ 2,275 Denver City and County, Colorado, Airport Revenue Refunding, Series 2001D, AMT, (FSA Insured), 5.000% 11/15/05................................... Aaa AAA $ 2,470 1,605 Denver City and County, Colorado, Art Museum, GO, Series 2002 4.500% 08/01/04................................... Aa1 AA+ 1,687 4,695 Thornton, Colorado, GO Refunding, Series 2002, (FSA Insured) 4.000% 12/01/04................................... Aaa AAA 4,927 -------- 9,084 -------- CONNECTICUT -- 0.6% 2,525 Connecticut State GO, Series 1999A, 5.000% 06/15/05................................... Aa2 AA 2,741 1,000 Connecticut State, GO, Series 1996, 6.000% 05/15/03................................... Aa2 AA 1,028 2,025 Connecticut State, Special Tax Obligation, Revenue Refunding, (Transportation Infrastructure Project) Series 2001B, 5.000% 10/01/04................................... Aa3 AA- 2,161 -------- 5,930 -------- DELAWARE -- 0.1% 1,330 Wilmington, Delaware, GO, (AMBAC Insured), 3.250% 12/01/03................................... Aaa AAA 1,358 -------- DISTRICT OF COLUMBIA -- 0.8% 3,000 District Columbia, Revenue, (Field School Project) Series 2001A, (First Union National Bank LOC), 1.650% 07/01/31................................... NR A1 3,000 2,200 Metropolitan Washington, District of Columbia, Airport Authority, Virginia General Airport Revenue, Series 1992A, AMT, (MBIA Insured), 6.500% 10/01/05................................... Aaa AAA 2,244 2,085 Metropolitan Washington, District of Columbia, Airport Authority, Virginia General Airport Revenue, Series 1997B, AMT, (FGIC Insured), 5.750% 10/01/03................................... Aaa AAA 2,168 -------- 7,412 --------
SEE NOTES TO FINANCIAL STATEMENTS. 4 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- 5.8% $ 5,000 Alachua County, Florida, Health Facilities Authority, Health Facilities Revenue, (Shands Teaching Hospital Project) Series 2002A, (SunTrust Bank LOC), 2.050% 12/01/12................................... VMIG1 NR $ 5,000 2,500 Dade County, Florida Aviation Revenue, Series 1984A, (Morgan Guaranty Trust LOC), 1.650% 10/01/09++................................. VMIG1 A1+ 2,500 2,500 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (Altamonte Project) Series 1994C, Mandatory Put 12/01/03 @ 100, 7.000% 12/01/24................................... NR BBB+ 2,573 1,240 Greater Orlando Aviation Authority, Orlando, Florida, Airport Facilities Revenue Refunding, Series 2002C, (MBIA Insured), 5.250% 10/01/07................................... Aaa AAA 1,399 3,500 Hillsborough County, Florida, Industrial Development Authority, IDR, (Goodwill Industries Suncoast Project) Series 2001, (SunTrust Bank LOC), 1.700% 11/01/21................................... VMIG1 NR 3,500 7,000 Hillsborough County, Florida, Industrial Development Authority, PCR Refunding, (Tampa Electric Company Project) Series 1993, Mandatory Put 08/01/07 @ 100, 4.250% 11/01/20................................... NR BBB 7,119 1,000 Jacksonville, Florida, Electric Authority Revenue Refunding, (St. John River-Issue 2 Project) Series 1993, 5.000% 10/01/05................................... Aa2 AA 1,027 2,000 Jacksonville, Florida, Guaranteed Entitlement Improvement, Revenue Refunding, Series 2002, (FGIC Insured), 3.000% 10/01/03................................... Aaa AAA 2,031
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $ 2,000 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), Prerefunded 10/01/05 @ 101, 5.375% 10/01/18................................... Aaa AAA $ 2,229 5,000 Jea, Florida, St. Johns River Power Park Systems Revenue Refunding, Series 2002, 5.000% 10/01/06................................... Aa2 AA 5,531 1,380 Kissimmee, Florida, Utilities Authority Electric System Revenue Refunding, Series 2001, (AMBAC Insured), 5.000% 10/01/06................................... Aaa NR 1,529 5,000 Miami-Dade County, Florida, Aviation Revenue Refunding, Series 1998A, AMT, 5.250% 10/01/07................................... Aaa AAA 5,560 3,870 Miami-Dade County, Florida, Aviation Revenue, Series 2000-SG141, (FGIC Insured, Societe Generale SPA), 1.750% 10/01/29................................... NR A1+ 3,870 4,250 Pinellas County, Florida, Capital Improvement Revenue, Series 2000, 4.500% 01/01/06............. Aa3 AA- 4,573 1,000 Pinellas County, Florida, Research Recovery Revenue, Series 1996, AMT, (MBIA Insured), 5.100% 10/01/03................................... Aaa AAA 1,034 880 St. Johns County, Florida, Industrial Development Authority, Hospital Revenue, (Flagler Hospital Project) Series 1992, 5.800% 08/01/03................................... A2 A- 900 3,000 Tampa, Florida, Utility Tax and Special Revenue Refunding, Series 2001, (AMBAC Insured), 6.000% 10/01/05................................... Aaa AAA 3,360 -------- 53,735 --------
SEE NOTES TO FINANCIAL STATEMENTS. 5 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ GEORGIA -- 10.1% $ 2,000 Athens-Clarke County, Georgia, Unified Government Authority, Revenue, (University of Georgia Athletic Association Project) Series 2001, (SunTrust Bank LOC), 2.050% 09/01/31................................... VMIG1 NR $ 2,000 20,000 Burke County, Georgia, Development Authority, PCR, (Oglethorpe Power Corporation) Series 1993A, (FGIC Insured, Bayerische Landesbank SBA), 1.650% 01/01/16................................... VMIG1 A1+ 20,000 2,200 Burke County, Georgia, Development Authority, PCR, (Georgia Power Company Plant Vogtle Project) Series 2000, Mandatory Put 03/03/03 @ 100, 1.750% 09/01/30................................... A2 A1 2,198 3,415 Clayton County, Georgia Housing Authority, Multifamily Housing Revenue Refunding, (Tara Court II Apartments Project) Series 2001, (FNMA Liquidity Facility), Mandatory Put 12/01/11 @ 100, 4.350% 12/01/31................................... NR AAA 3,562 2,000 Coweta County, Georgia, GO School District, Sales Tax, Series 2002, (State Aid Withholding), 5.000% 08/01/07................................... Aa2 NR 2,229 1,200 Coweta County, Georgia, School District Sales Tax, GO, Series 2002, (State Aid Withholding), 4.000% 08/01/07................................... Aa2 NR 1,283 1,300 Dalton, Georgia, Building Authority, Revenue, Series 2001, 5.000% 07/01/03................................... Aa3 A+ 1,334 2,000 Dalton, Georgia, Building Authority, Revenue, Series 2001, 5.000% 07/01/05................................... Aa3 A+ 2,168
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ GEORGIA -- (CONTINUED) $ 2,300 DeKalb County, Georgia, Development Authority, Industrial Development Revenue, (Rock-Tenn Converting Company Project) Series 1995, (SunTrust Bank, Atlanta), 1.800% 04/01/10................................... Aa2 NR $ 2,300 6,185 DeKalb County, Georgia, GO, Special Recreation Tax District, Series 2001, 5.000% 12/01/06................................... Aaa AA+ 6,878 1,000 Douglas County, Georgia, Development Authority, (Parks and Recreations Project) Series 2002, 3.000% 09/01/03................................... Aa2 NR 1,014 2,600 Fayette County, Georgia, School District, GO, Series 2001, (State Aid Withholding), 5.250% 03/01/09................................... Aa3 AA 2,947 6,500 Forsyth County, Georgia, Development Authority, Revenue, (Pinecrest Academy Inc. Project) Series 2000, (SunTrust Bank LOC), 1.600% 09/01/25................................... VMIG1 NR 6,500 6,230 Georgia State, GO, Series 1998D, 5.250% 10/01/04................................... Aaa AAA 6,675 2,500 Georgia, George L. Smith II World Congress Center Authority, Revenue Refunding, (Domed Stadium Project) Series 2000, AMT, (MBIA Insured), 6.000% 07/01/05................................... Aaa AAA 2,760 2,000 Georgia, Municipal Electric Authority Power Revenue, Series 1993D, (MBIA Insured), 4.600% 01/01/03................................... Aaa AAA 2,015 2,685 Gwinnett County, Georgia, Development Authority, IDR, (Maltese Signs Inc. Project) Series 2000, AMT, (Suntrust Banks Inc. LOC), 1.850% 02/01/15................................... VMIG1 NR 2,685 3,000 Houston County, Georgia, School District, GO, Series 2002, (State Aid Withholding), 4.000% 09/01/06................................... Aa2 AA 3,202
SEE NOTES TO FINANCIAL STATEMENTS. 6 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ GEORGIA -- (CONTINUED) $ 1,785 Marietta, Georgia, GO Refunding, Series 2002 3.000% 06/01/03................................... Aa3 AA $ 1,803 3,750 Monroe County, Georgia, Development Authority, PCR, (Georgia Power Company Plant Scherer Project) Series 2001, (AMBAC Insured), Mandatory Put 12/01/08 @ 100, 4.200% 01/01/12................................... Aaa AAA 3,982 7,000 Richmond County, Georgia, Development Authority, IDR Refunding, (Archer Daniels Midland Project) Series 1993, 5.300% 05/01/05................................... NR A+ 7,584 6,000 Richmond County, Georgia, GO, Board of Education, Series 2002, (State Aid Withholding) 5.000% 11/01/05................................... Aa2 AA 6,562 2,450 Savannah, Georgia, Hospital Authority, Hospital Improvement Revenue, (St. Joseph's Hospital Project) Series 1993, Prerefunded 07/01/03 @ 102, 6.125% 07/01/12................................... A2 NR 2,583 -------- 94,264 -------- GUAM -- 0.4% 3,820 Guam, Airport Authority, Revenue, Series 1993A, 6.375% 10/01/10................................... NR BBB- 3,932 -------- HAWAII -- 0.3% 2,500 Hawaii State, GO Refunding, Series 2002CY, (FSA Insured), 5.250% 02/01/07................................... Aaa AAA 2,783 -------- IDAHO -- 1.1% 10,500 Idaho, Housing and Financial Assistant, (Single Family Mortgage Project) Series 2002B-I, (Bayerische Landesbank Girozentrale Liquidity Facility), 1.800% 07/01/33................................... NR NR 10,500 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ ILLINOIS -- 5.9% $ 1,260 Broadview, Illinois, Tax Increment Revenue, Series 1999, 4.750% 07/01/05................................... NR NR $ 1,312 1,250 Chicago, Illinois, O'Hare International Airport Revenue Refunding, Second Lien, Series 1193C, (MBIA Insured), 4.900% 01/01/07................................... Aaa AAA 1,322 3,195 Chicago, Illinois, Single Family Mortgage Revenue, Series 2001, AMT, (FNMA/GNMA/FHLMC COLL, Merrill Lynch Capital Services SBA), 1.800% 04/01/21................................... NR A1+ 3,195 1,500 Cook County, Illinois, GO, Series 1993B, (MBIA Insured), 5.300% 11/15/07................................... Aaa AAA 1,590 5,580 Cook County, Illinois, Township High School District Number 211 Palatine and Schaumb GO, Series 2001, 5.000% 12/01/05................................... NR AA 6,099 1,400 Evanston, Illinois, GO Refunding, Series 2002C, 5.000% 01/01/06................................... Aaa NR 1,525 1,500 Illinois State, GO, Series 2001, 5.000% 04/01/05................................... Aa2 AA 1,615 4,500 Illinois State, GO, Series 2001, 5.000% 11/01/05................................... Aa2 AA 4,913 3,000 Illinois State, GO, Series 2001, (FGIC Insured), 4.000% 11/01/04................................... Aaa AAA 3,141 4,600 Illinois, Development Finance Authority, Revenue Refunding, (Olin Corporation Project) Series 2002A, 4.500% 06/01/04................................... Baa3 BBB 4,620 7,155 Illinois, Educational Facilities Authority, Revenue, (National Louis University) Series 1999A, (American National B&T LOC), 1.680% 06/01/29................................... NR A1 7,155
SEE NOTES TO FINANCIAL STATEMENTS. 7 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ ILLINOIS -- (CONTINUED) $ 2,500 Illinois, Educational Facilities Authority, Revenue, (University of Chicago Project) Series 1998B, Mandatory Put 07/01/04 @ 100, 4.400% 07/01/25................................... Aa1 AA $ 2,609 2,500 Illinois, Educational Facilities Authority, Revenue, (University of Chicago Project) Series 2001B-1, Mandatory Put 07/01/03 @ 100, 2.700% 07/01/36................................... Aa1 AA 2,518 4,900 Illinois, Health Facilities Authority, Revenue, (Rockford Memorial Hospital Group Project) Series 1994, (AMBAC Insured), 1.400% 09/16/24................................... Aaa AAA 4,900 1,125 Kane MC Henry Cook And DeKalb County, Illinois, (United School District Number 300 Project) Series 2002, (AMBAC Insured), 1.160%& 12/01/03.................................. Aaa NR 1,103 1,100 Rosemont, Illinois, GO, Series 1991B, (FGIC Insured), 6.400% 02/01/03................................... Aaa AAA 1,118 1,000 Schaumberg, Illinois, GO, Series 2002A 5.000% 01/01/07................................... Aa1 AA+ 1,101 2,975 Will County, Illinois, GO, Community Unity School District 365, Capital Appreciation Bond, Series 2002, (FSA Insured), 2.070%& 11/01/04.................................. Aaa AAA 2,859 1,540 Winnebago Boone Etc County, Illinois, GO, Series 1999, (FSA Insured), 5.750% 01/01/03................................... Aaa NR 1,557 -------- 54,252 -------- INDIANA -- 2.6% 1,585 Fort Wayne, Indiana, Sewage Works Improvements, Revenue Refunding, Series 2002B, (AMBAC Insured), 5.000% 08/01/06................................... Aaa NR 1,743
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ INDIANA -- (CONTINUED) $ 1,450 Fremont, Indiana, Middle School Building Corporation, Revenue Refunding, Series 1994A, (AMBAC Insured), 4.650% 07/15/04................................... Aaa AAA $ 1,518 1,620 Indianapolis, Indiana, Letters of Credit, Improvement Board Book, Series 2001A, 4.500% 07/01/04................................... NR AA 1,699 5,400 Merrillville, Indiana, Community School Corporation, Tax Anticipation Notes, Series 2002, 2.500% 12/31/02................................... NR NR 5,410 1,500 Rockport, Indiana, PCR Refunding, (AEP Generating Company Project) Series 1995A, Mandatory Put 07/13/06 @ 100, 4.050% 07/01/25................................... Aaa AAA 1,591 2,500 Rockport, Indiana, PCR Refunding, (AEP Generating Company Project) Series 1995B, (AMBAC Insured, Bank of New York SBPA), Mandatory Put 07/13/06 @ 100, 4.050% 07/01/25................................... Aaa AAA 2,651 9,300 Tippecano, Indiana, Independent School Corporation, Temporary Loan Notes, Series 2002, 2.100% 12/27/02................................... NR NR 9,308 -------- 23,920 -------- IOWA -- 0.1% 1,000 Des Moines, Iowa, GO Refunding, Series 1996F, 5.000% 06/01/06................................... Aa2 AA+ 1,076 -------- KANSAS -- 1.1% 5,000 Burlington, Kansas, Environmental Improvement Revenue Refunding, (Power and Light Project) Series 1998C, Mandatory Put 10/01/07 @ 100, 4.750% 09/01/15................................... A2 BBB 5,107
SEE NOTES TO FINANCIAL STATEMENTS. 8 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ KANSAS -- (CONTINUED) $ 1,000 Johnson County, Kansas, Unified School District Number 512, GO, Series 1997, 4.200% 10/01/02................................... Aa1 AA $ 1,000 1,100 Johnson County, Kansas, Water District No. 001, Water Revenue, Series 1996A, 5.250% 12/01/06................................... Aa1 AAA 1,232 3,125 Shawnee County, Kansas, GO Refunding Improvement, Series 2002, (FSA Insured), 4.000% 09/01/04................................... Aaa NR 3,264 -------- 10,603 -------- KENTUCKY -- 0.3% 1,945 Kentucky State, Property and Buildings Community, Revenue Refunding, (Number 74 Project) Series 2002, 5.000% 08/01/05................................... Aaa AAA 2,114 1,000 Kentucky State, Property and Buildings Community, Revenue Refunding, (Number 74 Project) Series 2002, 5.250% 02/01/07................................... Aaa AAA 1,115 -------- 3,229 -------- LOUISIANA -- 1.6% 5,000 Calcasieu Parish, Lousiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06................................... Baa2 BBB 5,299 2,000 De Soto Parish, Louisiana, PCR Refunding, (International Paper Company Project) Series 1993A, 5.050% 12/01/02................................... Baa2 BBB 2,007 3,000 Louisiana State, Energy and Power Authority, Revenue Refunding, (Power Project) Series 2000, (FSA Insured), 5.250% 01/01/06................................... Aaa AAA 3,291
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ LOUISIANA -- (CONTINUED) $ 2,000 Louisiana State, Gas and Fuels Tax Revenue Refunding, Series 1999A, (FSA Insured), 5.000% 11/15/04................................... Aaa AAA $ 2,137 1,650 Louisiana, Public Facilities Authority, Hospital Revenue Refunding, Series 1998B, (MBIA Insured), 1.450% 07/18/16................................... Aaa AAA 1,650 -------- 14,384 -------- MAINE -- 0.4% 3,500 Baileyville, Maine, PCR, (Georgia-Pacific Corporation Project) Series 1998, 4.750% 06/01/05................................... Ba1 NR 3,310 -------- MASSACHUSETTS -- 0.2% 1,495 Massachusetts State, Industrial Financing Agency Revenue, Series 1994, Prerefunded 11/15/03 @ 102, 7.100% 11/15/18................................... Aaa AAA 1,618 -------- MICHIGAN -- 1.9% 1,000 Kent County, Michigan, Airport Facilities Revenue, (Kent County International Airport Project) Series 1995, AMT, Prerefunded 01/01/05 @ 102, 6.100% 01/01/25................................... Aaa AAA 1,109 1,000 Michigan State, Hospital Finance Authority, Revenue, (Ascension Health Credit Project) Series 1999B, Mandatory Put 11/15/05 @ 100, 5.200% 11/15/33................................... Aa2 AA 1,097 1,800 Michigan State, Hospital Finance Authority, Revenue, Mandatory Put 11/15/06 @ 100, 5.300% 11/15/33................................... Aa2 AA 1,994 5,900 Michigan State, Housing Development Authority, Rental Housing Revenue, Series 2000B, (MBIA Insured, Morgan Guaranty Trust), 1.650% 04/01/24................................... VMIG1 A1+ 5,900
SEE NOTES TO FINANCIAL STATEMENTS. 9 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MICHIGAN -- (CONTINUED) $ 1,900 Michigan, Municipal Bond Authority, Revenue, Clean Water Revolving Fund, Series 2001, 5.000% 10/01/08................................... Aaa AAA $ 2,127 5,330 Oakland, Michigan University of Michigan, Revenue, Series 2001, (FGIC Insured), 1.700% 03/01/31................................... VMIG1 NR 5,330 -------- 17,557 -------- MINNESOTA -- 2.0% 2,200 Minneapolis, Minnesota, GO, Convention Center, Series 2002, 4.000% 12/01/07................................... Aa1 AAA 2,364 10,000 Minnesota State, GO, Series 2001 5.000% 10/01/03................................... Aaa AAA 10,351 5,000 Minnesota State, GO, Series 2001 5.000% 08/01/06................................... Aaa AAA 5,524 -------- 18,239 -------- MISSISSIPPI -- 1.8% 2,820 Jackson, Mississippi, Redevelopment Authority, Urban Renewal Revenue, (Jackson Medical Mall Foundation Project) Series 1997A, (Bank One Louisiana LOC), 4.600% 11/01/12................................... NR A1 2,826 6,000 Mississippi State, Gaming County Highway Improvements Project, GO, Series 2001B, 5.000% 10/01/06................................... Aa3 AA 6,638 5,255 Mississippi State, GO Refunding, Series 2002C, 4.500% 08/15/04................................... Aa3 AA 5,530 1,210 Mississippi State, GO, (Capital Improvement), Series 1995B, 6.000% 08/01/04................................... Aa3 AA 1,305 -------- 16,299 -------- MISSOURI -- 2.6% 5,765 Missouri State, Board of Public State Office Buildings Special Obligation, Revenue Refunding, Series 2001B, 4.000% 12/01/05................................... Aa1 AA+ 6,141
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MISSOURI -- (CONTINUED) $ 3,516 Missouri State, Environmental and Energy Resouce Authority, Environmental Improvement Revenue, (Kansas City Power and Light Project) Series 1993, Mandatory Put 09/01/04 @ 100, 3.900% 01/02/12................................... A2 A2 $ 3,603 1,000 Missouri State, Environmental Improvement and Energy Resource Authority, PCR Refunding, (Associated Electrical Cooperation - Thomas Hill Project) Series 1996, 5.750% 12/01/02................................... A1 AA 1,007 2,250 Missouri State, Health and Educational Facilities Authority, Revenue, (Saint Lukes Episcopal- Presbyterian Hospital Project) Series 2001, (FSA Insured), 3.850% 12/01/05................................... Aaa AAA 2,378 2,470 Missouri State, Health and Educational Facilities Authority, Revenue, (Saint Lukes Episcopal- Presbyterian Hospital Project) Series 2001, (FSA Insured), 4.000% 12/01/06................................... Aaa AAA 2,629 4,000 Missouri State, Health and Educational Facilities Revenue, (SSM Health Care Project) Series 2002A, 5.000% 06/01/07................................... NR AA- 4,341 3,725 St. Louis, Missouri, Industrial Development Authority, Multi-Family Housing Revenue, (JVL Renaisannce II LP Project) Series 2002B, (U.S. Bank N.A.) 2.000% 02/01/04................................... Aa2 NR 3,719 -------- 23,818 --------
SEE NOTES TO FINANCIAL STATEMENTS. 10 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NEVADA -- 1.4% $ 3,690 Clark County, Nevada, Airport Refunding GO, Series 1993, 5.250% 06/01/07................................... Aaa AAA $ 3,816 1,035 Henderson, Nevada, GO Refunding, Series 2001, 4.000% 06/01/05................................... Aa3 AA- 1,091 7,000 Nevada State Highway Improvement Revenue, Series 2000A, 5.000% 12/01/08................................... Aa3 AA 7,838 -------- 12,745 -------- NEW HAMPSHIRE -- 0.4% 3,500 New Hampshire State, Business Financial Authority PCR Refunding, (United Illuminating Company) Series 1997A, AMT, Mandatory Put 02/01/04 @ 100, 3.750% 07/01/27................................... A3 NR 3,516 -------- NEW MEXICO -- 1.6% 5,915 New Mexico State, GO Refunding, Series 2001B, 5.000% 09/01/06................................... Aa1 AA+ 6,528 1,000 New Mexico State, GO, (Capital Project), Series 1999, 4.250% 09/01/03................................... Aa1 AA+ 1,025 2,900 New Mexico State, Hospital Equipment Loan Council Hospital Revenue, (Presbyterian Healthcare Project) Series 2001A, 4.600% 08/01/08................................... A1 A+ 3,086 3,500 New Mexico State, Severance Tax Revenue, Series 2002, 4.500% 07/01/05................................... Aa2 AA 3,747 -------- 14,386 -------- NEW YORK -- 1.1% 2,000 New York City, New York, Transitional Finance Authority, Revenue Refunding, (Future Tax Secondary Project) Series 2002A, 5.000% 11/01/05................................... Aa2 AA+ 2,185
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NEW YORK -- (CONTINUED) $ 3,000 New York, New York, GO Refunding, Series 2002B, 5.000% 08/01/06................................... A2 A $ 3,261 4,150 New York, New York, Series 1998A, 5.000% 08/01/05................................... A2 A 4,464 -------- 9,910 -------- NORTH CAROLINA -- 3.1% 1,000 Cabarrus County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, (Cannon Memorial YMCA Project) Series 2002, (Wachovia Bank N.A. LOC), 1.650% 08/01/23................................... VMIG1 NR 1,000 5,000 Charlotte, North Carolina, GO Refunding, Series 2002D, 3.000% 07/01/04................................... Aaa AAA 5,124 3,600 Charlotte, North Carolina, GO, Series 1996, Prerefunded 05/01/06 @ 102, 5.500% 05/01/14................................... Aaa AAA 4,091 1,720 Durham and Wake County, North Carolina, Special Apartment District, GO Refunding, Series 1992, 5.750% 04/01/03................................... Aaa AAA 1,735 1,000 Durham, North Carolina, GO Refunding, Series 1992, 5.700% 02/01/05................................... Aaa AAA 1,019 1,005 North Carolina, Medical Care Commission, Gaston Health Care Hospital Revenue, Series 1998, 4.500% 02/15/05................................... A1 A+ 1,059 1,560 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.300% 08/15/03................................... Baa2 NR 1,585
SEE NOTES TO FINANCIAL STATEMENTS. 11 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $ 1,630 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.400% 08/15/04................................... Baa2 NR $ 1,681 1,725 North Carolina, Medical Care Commission, Hospital Revenue, (Gaston Health Care Project) Series 1998, 4.300% 02/15/03................................... A1 A+ 1,741 1,125 Rutherford County, North Carolina, Certificates of Participation, Series 2002, 4.500% 09/01/06................................... Aaa AAA 1,221 2,800 University of North Carolina, Revenue Refunding, Series 2002B, 5.000% 12/01/06................................... Aa1 AA+ 3,107 2,410 Winston-Salem, North Carolina, GO Refunding, Series 1991, 10.000% 06/01/04.................................. Aaa AAA 2,738 2,550 Winston-Salem, North Carolina Risk Acceptance Management Corporation Certificates of Participation, Series 1988, (Wachovia Bank, N.A. SBPA), 1.700% 07/01/09**................................. VMIG1 A1 2,550 -------- 28,651 -------- OHIO -- 3.4% 1,545 Akron/Bath/Copely, Ohio, Joint Township Hospital District, Revenue, (Summa Health Systems Project) Series 1993A, 5.300% 11/15/02................................... Baa1 NR 1,550 2,000 Dayton, Ohio, Special Facilities Revenue Refunding, Series 1993, 6.050% 10/01/09...................... NR BB+ 1,754 2,100 Lucas County, Ohio, GO, Series 1997, 5.300% 12/01/05................................... A1 A+ 2,311 2,000 Ohio State GO, Series 2001B, 4.000% 11/01/05................................... Aa1 AA+ 2,127 2,190 Ohio State Revenue, Series 2002, 4.500% 06/15/06................................... Aa3 AA 2,370
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ OHIO -- (CONTINUED) $10,000 Ohio State, Higher Educational Capital Facilities, Series 2002A-II, 5.000% 12/01/07................................... Aa2 AA $ 11,202 5,000 Ohio State, Public Facilities Commission, Revenue, (Higher Education Capital Facilities Project) Series 1996 II-A, 4.375% 11/01/05................................... Aaa AAA 5,367 4,000 Ohio State, State Building Authority, (Arts Facility Building Project) Series 1996, 5.000% 10/01/06................................... Aa2 AA 4,428 -------- 31,109 -------- OKLAHOMA -- 0.9% 1,545 Oklahoma State, Industry Authority, Revenue Refunding, (Integris Baptist Medical Center Project) Series 1995D, 5.000% 08/15/03................................... Aaa AAA 1,590 2,000 Oklahoma, Housing Development Authority, Revenue, Series 2000A, (FHLMC COLL), 5.100% 11/01/05................................... Aa3 NR 2,172 2,385 Tulsa County, Oklahoma, Independent School District Number 001, GO, Series 2000A, 5.000% 03/01/03................................... Aa2 AA 2,420 2,000 Tulsa, Oklahoma, Public Facilities Authority Solid Waste Steam and Electric Revenue Refunding, (Ogden Martin System Tulsa Project) Series 1994, (AMBAC Insured), 5.250% 11/01/02................................... Aaa AAA 2,006 -------- 8,188 -------- PENNSYLVANIA -- 3.4% 5,075 Chester County, Pennsylvania, GO Refunding, Series 1995B, Prerefunded 11/15/05 @ 100, 5.625% 11/15/16................................... Aa2 AA 5,668
SEE NOTES TO FINANCIAL STATEMENTS. 12 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ PENNSYLVANIA -- (CONTINUED) $ 8,450 Chester County, Pennsylvania, Industrial Development Authority, Revenue, (Malvern Prep School Project) Series 2001, (First Union National Bank LOC), 1.700% 04/01/31................................... NR NR $ 8,450 1,535 Delaware County, Pennsylvania Authority, Health Care Revenue, Series 1993B, Prerefunded 11/15/05 @ 100, 6.000% 11/15/07................................... Aaa NR 1,636 3,000 Pennsylvania State, Certificates of Participation, Series 1993, 1.680% 07/01/07................................... Aaa AAA 3,000 3,000 Philadelphia, Pennsylvania, School District, GO Refunding, Series 1998B, (MBIA Insured State Aid Withholding), 5.000% 10/01/06................................... Aaa AAA 3,318 5,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue, (MBIA-IBC Insured), 5.500% 06/15/06................................... Aaa AAA 5,587 1,415 Southeastern Pennsylvania, Transportation Authority, Pennsylvania Special Revenue, Unrefunded Balance, (Series) 1995A, (FGIC Insured), 6.500% 03/01/04................................... Aaa AAA 1,512 2,200 Washington County, Pennsylvania, Industrial Development Authority, PCR, (West Pennsylvania Power Company Project) Series 1993F, (MBIA-IBC Insured), 4.950% 03/01/03................................... Aaa AAA 2,232 -------- 31,403 -------- SOUTH CAROLINA -- 2.4% 1,950 Aiken County, South Carolina, Construction School District, GO, Series 2000, (SCSDE), 5.125% 04/01/03................................... Aa1 AA+ 1,986
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $ 1,370 Greenville, South Carolina, Hospital System Authority, Hospital Facilities Revenue Refunding, Series 1993C, 5.250% 05/01/03................................... Aa3 AA $ 1,396 3,965 Richland County, South Carolina, PCR Refunding, (Union Camp Corporation Project) Series 1992C, 5.875% 11/01/02................................... Baa2 BBB 3,977 1,000 South Carolina State Public Service Authority Revenue, Series 1999A, (MBIA Insured), 5.000% 01/01/05................................... Aaa AAA 1,072 2,370 South Carolina State, Education Assistance Authority Revenue Refunding, (Guaranteed Student Loan Senior Lien Project) Series 1993A-3, AMT, (GTD STD LNS), 5.200% 09/01/05................................... NR AAA 2,474 2,385 South Carolina, Jobs Economic Development Authority, Economic Development Revenue, (Bennettsville Printing Project) Series 1995, (First Union National Bank LOC), 1.750% 09/01/10................................... NR A1 2,385 910 South Carolina, Jobs Economic Development Authority, Economic Development Revenue, (Valley Proteins Inc. Project) Series 1995, (Harris Bank LOC), 1.750% 04/01/10................................... NR A1+ 910 5,000 South Carolina, Jobs Economic Development Authority, Economic Development Revenue, (Waste Management South Carolina Inc. Project) Series 2001, AMT, Mandatory Put 11/01/04 @ 100, 4.100% 11/01/16................................... NR BBB 5,003
SEE NOTES TO FINANCIAL STATEMENTS. 13 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $ 1,000 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 6.125% 12/15/02................................... Baa2 BBB $ 1,004 1,000 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 6.300% 12/15/03................................... Baa2 BBB 1,025 1,030 South Carolina, Jobs Economic Development Authority, IDR, Series 1998, (First Union National Bank LOC), 1.850% 09/01/19................................... NR NR 1,030 -------- 22,262 -------- SOUTH DAKOTA -- 0.1% 1,100 Rapid City, South Dakota, Sales Tax Revenue Refunding, Series 2002, (AMBAC Insured), 5.500% 06/01/05................................... Aaa NR 1,204 -------- TENNESSEE -- 1.1% 1,335 Franklin, Tennesse, GO Refunding, Special School District, Series 2002, 4.500% 06/01/06................................... Aa2 NR 1,442 5,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 2001, 5.000% 09/01/09................................... Baa2 BBB 5,287 3,000 Shelby County, Tennessee, Health Development and Housing Facility Board Revenue, (Arbors of Germantown Project) Series 1994, Mandatory Put 07/01/04 @ 100, 4.750% 07/01/24................................... Baa2 BBB 3,078 -------- 9,807 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- 15.0% $ 1,000 Arlington, Texas, Waterworks and Sewer Revenue, (AMBAC Insured), 5.500% 06/01/04................................... Aaa AAA $ 1,063 2,000 Austin, Texas, Airport System, Revenue Unrefunded, Balance Prior Lien, Series 1995A, (MBIA Insured), 5.500% 11/15/06................................... Aaa AAA 2,207 3,000 Austin, Texas, GO Refunding, 5.250% 09/01/08................................... Aa2 AA+ 3,391 2,830 Austin, Texas, GO, Series 1995, Prerefunded 09/01/05 @ 100, 5.500% 09/01/12................................... Aa2 AA+ 3,129 4,000 Austin, Texas, Utilities System Revenue Refunding, Series 1992A, (MBIA Insured), 6.000% 11/15/06................................... Aaa AAA 4,581 2,275 Austin, Texas, Utilities System Revenue Refunding, Series 1993A, (FGIC-TCRS Insured), 5.375% 05/15/05................................... Aaa AAA 2,374 3,000 Austin, Texas, Water and Wastewater System Revenue Refunding, Series 2001A&B, (FSA Insured), 6.500% 05/15/05................................... Aaa AAA 3,352 1,000 Brazos River Authority, Texas, PCR Refunding, (Texas Electric Company Project) Series 2001A, AMT, Mandatory Put 04/01/04 @ 100, 4.950% 10/01/30................................... NR BBB+ 1,016 7,950 Brazos River Authority, Texas, PCR Refunding, (Texas Electric Company Project) Series 2001B, Mandatory Put 11/01/06 @ 100, 4.750% 05/01/29................................... Baa1 BBB+ 8,188 2,000 Brazos River Authority, Texas, PCR Refunding, (Texas Utilities Electric Company Project) Series 1999A, AMT, Mandatory Put 04/01/03 @ 100, 4.800% 04/01/33................................... Baa1 NR 2,011
SEE NOTES TO FINANCIAL STATEMENTS. 14 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 1,000 Central Texas, Higher Education Authority, Revenue Refunding, Series 1993, AMT, (GTD STD LNS), 5.200% 12/01/04................................... Aaa NR $ 1,062 1,000 Clear Creek, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 1.526%& 02/15/03.................................. Aaa AAA 994 1,000 Corpus Christi, Texas, Utilities System Revenue Refunding, Series 2002, (Financial Security Assurance), 4.000% 07/15/07................................... Aaa AAA 1,064 4,620 Dallas, Fort Worth, Texas, International Airport Revenue Refunding, Series 2002A, (MBIA Insured), 5.000% 11/01/06................................... Aaa AAA 5,043 1,000 Dallas, Texas, Independent School District, GO Refunding, Series 2002, (PSF-GTD), 1.526%& 02/15/03.................................. Aaa AAA 994 1,230 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.600% 08/15/05................................... Aaa AAA 1,273 4,920 Dallas, Texas, Independent School District, GO, Series 1995, (PSF-GTD), Prerefunded 8/15/02 @ 100, 5.750% 08/15/13................................... Aaa AAA 5,468 1,000 Dallas, Texas, Waterworks and Sewer System Revenue Refunding, Series 2001, 5.000% 10/01/06................................... Aa2 AA+ 1,105 1,330 Fort Bend, Texas, GO, Independent School District, Series 2002, (PSF-GTD), 5.000% 08/15/07................................... NR AAA 1,478 4,000 Gulf Coast Waste Disposal Authority, Texas Environmental Facility Revenue Refunding, (Occidental Chemical Corporation Project) Series 2001, 4.200% 11/01/06................................... Baa2 BBB 4,111
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 1,115 Harris County, Texas, Flood Control District, GO, Series 1992A, 5.800% 10/01/03................................... Aa1 AA+ $ 1,115 4,000 Harris County, Texas, Health Facilities Development Authority, Hospital Revenue, (Memorial Hospital Systems Project) Series 1997A, (MBIA Insured), 4.875% 06/01/05................................... Aaa AAA 4,285 2,000 Harris County, Texas, Health Facilities Development Corporation Revenue, (St. Lukes Episcopal Hospital Project) Series 2001A, 5.250% 02/15/06................................... NR AA- 2,170 1,845 Houston, Texas, GO Refunding, Series 1998A, 5.000% 03/01/05................................... Aa3 AA- 1,983 6,445 Keller, Texas, Independent School District, GO, Series 1993, (PSF-GTD), Prerefunded 02/15/06 @ 100, 5.500% 08/15/13................................... Aaa NR 7,162 1,225 Lubbock, Texas, GO Refunding, Series 2002, (MBIA Insured), 4.750% 02/15/05................................... Aaa AAA 1,308 3,750 Matagorda County, Texas Naval District No 1, PCR Refunding, (Central Power & Light Company Project) Series 1999A, Mandatory Put 11/01/03 @ 100, 3.750% 05/01/30................................... Baa2 BBB+ 3,789 1,000 Mesquite, Texas, Independent School District, GO Refunding, Series 1997A (PSF-GTD), 5.000% 08/15/04................................... Aaa AAA 1,061 5,000 Red River Authority, Texas, Education Financing Revenue, (Parish Day School Project) Series 2001A, (Allied Irish Bank plc-LOC), Mandatory Put 12/01/04 @ 100, 3.400% 12/01/31................................... VMIG1 NR 5,139
SEE NOTES TO FINANCIAL STATEMENTS. 15 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 4,940 Red River Authority, Texas, PCR Refunding, (Hoechst Celanese Corporation Project) Series 1994, 5.200% 05/01/07................................... Baa2 BBB $ 5,090 2,800 Richardson, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 5.000% 02/15/03................................... Aaa AAA 2,836 3,265 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, 5.000% 10/01/07................................... Baa2 BBB- 3,459 3,990 Sam Rayburn, Texas, Municipal Power Agency, Taxable Revenue Refunding, Series 2002, 5.600% 10/01/05................................... Baa2 BBB- 4,169 3,000 San Antonio, Texas, Electric and Gas, Unrefunded Balance, Series 1994, 4.700% 02/01/05................................... Aa1 AA+ 3,173 8,900 San Antonio, Texas, GO Refunding, Series 2001, 5.000% 08/01/07................................... Aa2 AA+ 9,892 1,000 San Antonio, Texas, GO, 5.000% 08/01/06................................... Aa2 AA+ 1,101 1,000 San Antonio, Texas, Water System Revenue, Series 2002A, (FSA Insured), 5.000% 05/15/06................................... Aaa AAA 1,095 1,725 Socorro, Texas, GO Refunding, Independent School District, Series 2002, (PSF-GTD), 5.000% 08/15/06................................... NR AAA 1,899 3,030 Texas A&M University, Revenue, Series 1996, 5.750% 05/15/05................................... Aa1 AA+ 3,328 10,000 Texas State GO, Series 2002, (Lehman Liquidity LLC SBPA), 1.800%++ 08/29/03................................. P1 NR 10,000 2,000 Texas State, College Student Loan Authority, Revenue, Series 1995, AMT, 5.300% 08/01/03................................... Aa1 AA 2,059 4,000 University of Texas, Permian University Revenue Refunding, Series 2002A, 5.000% 07/01/06................................... Aaa AAA 4,392
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 2,500 University of Texas, Permian University Revenue Refunding, Series 2002A, 5.000% 07/01/08................................... Aaa AAA $ 2,784 2,555 University of Texas, University Financing Systems Revenue, Series 2001C, 4.000% 08/15/05................................... Aaa AAA 2,705 -------- 139,898 -------- UTAH -- 1.4% 2,000 Utah County, Utah, Hospital Revenue, (IHC Health Services Inc. Project) Series 2002, 5.000% 05/15/05................................... Aa2 AA+ 2,136 10,000 Utah State, GO, Series 2001B, 4.500% 07/01/04................................... Aaa AAA 10,501 -------- 12,637 -------- VERMONT -- 0.6% 5,650 Vermont, Educational and Health Building Financing Agency, Revenue Refunding, (Hospital Medical Center Project) Series 1994, (FGIC Insured), 1.500% 09/12/13................................... Aaa AAA 5,650 -------- VIRGINIA -- 3.0% 2,000 Arlington County, Virginia Industrial Development Authority, Hospital Facilities Revenue, (Virginia Hospital Center Project) Series 2001, 5.500% 07/01/05................................... A2 NR 2,167 4,000 Fairfax County, Virginia, Economic Development Authority, Resource Recovery, Revenue Refunding, Series 1998A, AMT, (AMBAC Insured), 5.950% 02/01/07................................... Aaa AAA 4,530 4,500 Henrico County, Virginia, Industrial Development Authority Revenue, Series 1992, 1.600% 08/23/27................................... Aaa AAA 4,500
SEE NOTES TO FINANCIAL STATEMENTS. 16 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ VIRGINIA -- (CONTINUED) $ 4,000 Metropolitan, Washington, District of Columbia, Airports Authority, Virginia General Airport Revenue, Series 1997B, (FGIC Insured), AMT, 6.000% 10/01/06................................... Aaa AAA $ 4,515 3,350 Richmond, Virginia, GO, Series 2000, (FSA Insured), 5.125% 01/15/04................................... Aaa AAA 3,503 1,500 Virginia State, GO, Series 1993B, 5.200% 12/01/09................................... Aaa AAA 1,588 2,910 Virginia State, Public School Authority, Revenue Refunding, Series 1993, (State Aid Withholdings), 5.250% 01/01/09................................... Aa1 AA 3,088 460 Virginia, Education Loan Authority, Guaranteed Student Loan Revenue, Series 1992G, AMT, (GTD STD LNS), 6.625% 09/01/03................................... Aaa NR 478 1,635 Virginia, Port Authority CommonWealth Revenue, Series 1996, AMT, 5.750% 07/01/04................................... Aa1 AA+ 1,747 1,730 Virginia, Port Authority CommonWealth Revenue, Series 1996, AMT, 5.750% 07/01/05................................... Aa1 AA+ 1,903 -------- 28,019 -------- WASHINGTON -- 2.5% 2,040 King County, Washington, School District No. 401, Highline Public Schools, GO Refunding, Series 2002, (School Bond GTY), 4.000% 12/01/05................................... Aa1 AA+ 2,166 2,190 King County, Washington, School District Number 405 Bellevue, GO, Series 2002 4.000% 12/01/04................................... Aa1 AA+ 2,295 2,605 Seattle, Washington, GO, Series 2001, 4.000% 08/01/05................................... Aa1 AAA 2,754
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ WASHINGTON -- (CONTINUED) $ 1,765 Spokane County, Washington, School District Number 354 Mead, GO Refunding, Series 1993, (MBIA Insured), 5.100% 12/01/05................................... Aaa AAA $ 1,910 3,655 Washington State, GO Refunding, Series 2002R-A, 5.000% 09/01/06................................... Aa1 AA+ 4,028 1,500 Washington State, GO, Series 2001B, 5.000% 09/01/06................................... Aa1 AA+ 1,653 5,000 Washington State, GO, Series 2001R-A, 5.250% 09/01/05................................... Aa1 AA+ 5,471 3,000 Washington State, Health Care Facility Authority Revenue, (Fred Hutchinson Cancer Research Project) Series 2001, (AMBAC Insured), 1.420% 01/01/27................................... Aaa AAA 3,000 -------- 23,277 -------- WEST VIRGINIA -- 0.4% 3,625 Cabell County, West Virginia, Board of Education GO Refunding, Series 1997, 5.500% 05/01/04................................... NR AA- 3,836 -------- WISCONSIN -- 2.6% 5,000 Kaukauna, Wisconsin, PCR, Refunding, (International Paper Project) Series 1997A, 5.150% 07/01/06................................... Baa2 BBB 5,228 5,000 Marinette County, Wisconsin, BAN, Series 2002, 3.350% 09/01/04................................... MIG1 NR 5,076 1,000 Milwaukee, Wisconsin, Metropolitan Sewer District, GO, Series 1992A, 6.125% 10/01/03................................... Aa1 AA+ 1,046 2,250 Wisconsin State, GO Refunding, Series 1993, 4.900% 11/01/06................................... Aa3 AA- 2,480 5,600 Wisconsin State, GO Refunding, Series 1998, 5.000% 05/01/05................................... Aa3 AA- 6,042
SEE NOTES TO FINANCIAL STATEMENTS. 17 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ WISCONSIN -- (CONTINUED) $ 4,045 Wisconsin State, GO, Series 2001A, 6.000% 05/01/04................................... Aa3 AA- $ 4,318 -------- 24,190 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $860,213)............................................ 875,520 --------
SHARES (000) - ---------- INVESTMENT COMPANIES -- 4.4% (Cost $40,854) 40,854 Nations Tax-Exempt Reserves, Trust Class#................ 40,854 ---------- TOTAL INVESTMENTS (Cost $901,066*)................................ 99.0% 916,374 ---------- OTHER ASSETS AND LIABILITIES (NET)................ 1.0% Cash..................................................... $ 1 Receivable for Fund shares sold.......................... 12,885 Dividends receivable..................................... 55 Interest receivable...................................... 10,030 Payable for Fund shares redeemed......................... (2,115) Investment advisory fee payable.......................... (98) Administration fee payable............................... (147) Shareholder servicing and distribution fees payable...... (92) Distributions payable.................................... (1,303) Payable for investment securities purchased.............. (10,039) Accrued Trustees' fees and expenses...................... (50) Accrued expenses and other liabilities................... (97) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................. 9,030 ---------- NET ASSETS........................................ 100.0% $ 925,404 ========== NET ASSETS CONSIST OF: Undistributed net investment income...................... $ 141 Accumulated net realized loss on investments sold........ (655) Net unrealized appreciation of investments............... 15,308 Paid-in capital.......................................... 910,610 ---------- NET ASSETS............................................... $ 925,404 ==========
VALUE ---------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($662,639,013 / 63,890,952 shares outstanding)......... $10.37 ========== INVESTOR A SHARES: Net asset value and redemption price per share ($188,670,971 / 18,189,027 shares outstanding)......... $10.37 ========== Maximum sales charge..................................... 1.00% Maximum offering price per share......................... $10.47 INVESTOR B SHARES: Net asset value and offering price per share** ($1,843,618 / 177,755 shares outstanding).............. $10.37 ========== INVESTOR C SHARES: Net asset value and offering price per share** ($72,250,195 / 6,966,345 shares outstanding)........... $10.37 ==========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. ++Floating rate note. The interest rate shown reflects the rate in effect at September 30, 2002. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Short-Term Municipal Income Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Industrial Development Revenue/Pollution Control Revenue 13.01%
SEE NOTES TO FINANCIAL STATEMENTS. 18 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.0% ALABAMA -- 1.5% $ 2,000 Alabama State, Public School and College Authority, GO Refunding, 5.000% 12/01/05................................... Aa3 NR $ 2,106 3,265 Alabama, Special Care Facilities Financing Authority, Hospital Revenue, (Charity Obligation Group Project) Series 1999A, (MBIA Insured, Escrowed to Maturity), 4.625% 11/01/10................................... Aaa NR 3,564 2,500 Birmingham, Alabama, Industrial Water Board, Industrial Water Supply Revenue, Series 1978, (MBIA Insured), 6.000% 07/01/07................................... NR AAA 2,902 935 Birmingham, Alabama, Medical Clinic Board Revenue, (Baptist Medical Centers Project) Series 1979, 8.300% 07/01/08................................... Aaa AAA 1,090 2,500 Birmingham, Alabama, Revenue, (Baptist Medical Center of Birmingham Project) Series 1993A, (MBIA Insured), 5.500% 08/15/05................................... Aaa AAA 2,581 9,240 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1992, AMT, 7.000% 06/01/22................................... Baa2 BBB 9,443 5,750 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1993A, AMT, 6.375% 03/01/29................................... Baa2 BBB 5,849
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ALABAMA -- (CONTINUED) $ 2,320 Prichard, Alabama, Waterworks and Sewer Board, Water and Sewer Revenue Refunding, Series 1994, (AMBAC Insured), 5.650% 11/15/04................................... Aaa AAA $ 2,510 ---------- 30,045 ---------- ALASKA -- 2.2% 3,000 Alaska State, Housing Finance Corporation Revenue, Series 1992A, (GO of Corporation), 6.000% 12/01/05................................... Aa2 AA- 3,289 1,965 Alaska State, Housing Finance Corporation Revenue, Series 1995A, (MBIA, FHA/VA/FNMA Mortgages), 5.800% 12/01/12................................... Aaa AAA 2,070 1,505 Alaska State, Housing Finance Corporation, Revenue, Series 1995A, (MBIA Insured), 5.400% 06/01/08................................... Aaa AAA 1,596 3,345 Alaska, Industrial Development and Export Authority, Revenue Refunding, Series 1998A, AMT, (MBIA Insured), 5.250% 04/01/12................................... Aaa AAA 3,606 895 Alaska, Industrial Development and Export Authority, Revenue, Series 1995A, (GO of Authority LOC), 6.000% 04/01/05................................... A2 A- 964 1,000 Alaska, Municipal Bond Bank Authority, GO Refunding, Series 1993A, 5.250% 12/01/03................................... A2 A 1,037 1,790 Alaska, Municipal Bond Bank Authority, GO Refunding, Series 1993A, 5.650% 12/01/07................................... A2 A 1,865 3,280 Alaska, Student Loan Corporation, Revenue, Series 1995A, AMT, (AMBAC Insured), 5.250% 07/01/03................................... Aaa AAA 3,356
SEE NOTES TO FINANCIAL STATEMENTS. 19 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ALASKA -- (CONTINUED) $1,250 Alaska, Student Loan Corporation, Revenue, Series 1997A, AMT, (AMBAC Insured), 5.200% 07/01/06................................... Aaa AAA $ 1,350 2,000 Anchorage, Alaska, Electric Utility Revenue, Senior Lien, (Municipal Light and Power Project) Series 1996C, (AMBAC Insured), 5.300% 12/01/11................................... Aaa AAA 2,238 10,600 Anchorage, Alaska, GO Refunding, Series 2002, (MBIA Insured), 5.250% 07/01/10................................... Aaa AAA 12,057 1,100 Anchorage, Alaska, GO, Series 1994, (MBIA Insured), Prerefunded 07/01/04 @ 102, 5.600% 07/01/07................................... Aaa AAA 1,198 2,000 Anchorage, Alaska, GO, Series 1996A, (AMBAC Insured), Prerefunded 08/01/06 @ 100, 5.100% 08/01/07................................... Aaa AAA 2,221 1,205 Anchorage, Alaska, GO, Unrefunded Balance, Series 1995B, (FGIC Insured), 5.125% 10/01/07................................... Aaa AAA 1,312 500 Anchorage, Alaska, Telephone Utilities Revenue Refunding, Series 1994A, (AMBAC Insured), Prerefunded 12/01/02 @ 102, 5.000% 12/01/08................................... Aaa AAA 513 3,500 Fairbanks, Alaska, North Star Borough GO Refunding, Series 1993S, (MBIA Insured), 5.450% 03/01/06................................... Aaa AAA 3,873 1,000 Fairbanks, Alaska, North Star Borough GO Refunding, Series 1993S, (MBIA Insured), 5.500% 03/01/08................................... Aaa AAA 1,131 ---------- 43,676 ----------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ARIZONA -- 3.1% $ 1,000 Apache County, Arizona, Public Finance Corporation, Certificates of Participation, Series 1994, 5.500% 05/01/07................................... A1 AA- $ 1,012 500 Arizona State, Power Authority, Power Reserves Revenue, 5.000% 10/01/10................................... Aa2 AA 562 500 Arizona State, Transportation Board Excise Tax Revenue, (Maricopa County Regional Area Project) Series 1995B, (AMBAC Insured), 6.000% 07/01/05................................... Aaa AAA 555 1,500 Arizona, Educational Loan Marketing Corporation, Educational Loan Revenue, 6.300% 12/01/08................................... NR NR 1,558 1,500 Arizona, Health Facilities Authority, Hospital Systems Revenue Refunding, (Samaritan Health Systems Project) Series 1993, (MBIA Insured), 5.400% 12/01/05................................... Aaa AAA 1,666 4,060 Greenlee County, Arizona, Industrial Development Authority, PCR Refunding, (Phelps Dodge Corporation Project) Series 1994, 5.450% 06/01/09................................... Baa3 BBB- 3,941 4,160 Maricopa County, Arizona, Industrial Development Authority, Health Facilities Revenue, (Catholic Healthcare West Project) Series 1998A, 4.350% 07/01/04................................... Baa2 BBB 4,262
SEE NOTES TO FINANCIAL STATEMENTS. 20 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 500 Maricopa County, Arizona, Industrial Development Authority, Single Family Mortgage Revenue, Series 2001-1B, (GNMA/FHLMC COLL, Fannie Mae Liquidity Facility), 5.000% 09/01/28................................... NR AAA $ 536 500 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue, Series 2001, (AMBAC Insured), 5.500% 07/01/10................................... Aaa NR 578 1,000 Maricopa County, Arizona, School District Number 028 Kyrene Elementary, GO, Series 1995B, (FGIC Insured), Prerefunded 07/01/04 @ 100, 5.900% 07/01/10................................... Aaa AAA 1,075 500 Maricopa County, Arizona, Unified School District Number 041 Gilbert, GO Refunding, Series 2001, (FSA Insured), 5.800% 07/01/14................................... Aaa AAA 603 1,500 Maricopa County, Arizona, Unified School District Number 097, GO, (Deer Valley Project) Series 1998F, (MBIA Insured), 5.000% 07/01/11................................... Aaa NR 1,641 1,000 Mesa, Arizona, Industrial Development Authority, Student Revenue, (ASU East/ Maricopa College Project) Series 2001A, 6.000% 07/01/21................................... NR BBB- 1,015 1,500 Mesa, Arizona, Street and Highway Revenue, Series 2000, (FSA Insured), 5.250% 07/01/18................................... Aaa AAA 1,619
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 910 Mohave County, Arizona, Elementary School District Number 016 Mohave Valley GO, Series 1997, (MBIA Insured), 6.900% 07/01/07................................... Aaa AAA $ 1,088 4,710 Phoenix, Arizona, Civic Improvement Corporation, Airport Revenue Refunding, Senior Lien, Series 1999A, AMT, (FGIC Insured), 5.500% 07/01/11................................... Aaa AAA 5,377 1,000 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue, Senior Lien, (Municipal Courthouse Project) Series 1999A, 5.500% 07/01/12................................... Aa2 AA+ 1,140 500 Phoenix, Arizona, Civic Improvement Corporation, Refunding Revenue, Senior Lien, AMT, 5.250% 07/01/06................................... Aa2 AA+ 550 1,000 Phoenix, Arizona, Industrial Development Authority, Government Office Lease Revenue, (Capital Mall LLC Project) Series 2000, (AMBAC Insured), 5.200% 09/15/16................................... Aaa AAA 1,103 1,190 Phoenix, Arizona, Industrial Development Authority, Multi-Family Housing Revenue, (Heather Ridge Apartments Project) Series 1998A, (FNMA COLL), 5.200% 12/15/21................................... NR AAA 1,201
SEE NOTES TO FINANCIAL STATEMENTS. 21 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 375 Phoenix, Arizona, Industrial Development Authority, Single Family Mortgage Revenue, Series 2000-1B, (GNMA/FNMA/FHLMC COLL), 7.650% 12/01/24................................... NR AAA $ 427 1,000 Phoenix, Arizona, Street and Highway User Revenue Refunding, 4.600% 07/01/11................................... A1 A+ 1,074 2,125 Pima County, Arizona, Unified School District, GO, Series 1995G, (MBIA Insured), 7.300% 07/01/05................................... Aaa AAA 2,435 500 Pinal County, Arizona, Unified School District Number 43 Apache Junction, GO, Series 1996A, (FGIC Insured), Prerefunded 07/01/06 @ 101, 5.800% 07/01/11................................... Aaa AAA 572 1,500 Salt River, Arizona, Agricultural Improvement and Power District, Electric Systems Revenue Refunding, (Salt River Project) Series 1993B, 5.050% 01/01/06................................... Aa2 AA 1,636 8,685 Salt River, Arizona, Agricultural Improvement and Power District, Electric Systems Revenue Refunding, (Salt River Project) Series 2001A, 5.250% 01/01/06................................... Aa2 AA 9,529 4,710 Salt River, Arizona, Agriculture Improvement and Power District, Electric Systems Revenue Refunding, (Salt River Project) Series 1993B, 5.200% 01/01/08................................... Aa2 AA 5,266
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 730 Salt River, Arizona, Agriculture Improvement and Power District, Electric Systems Revenue Refunding, (Salt River Project) Series 1993B, Prerefunded 01/01/03 @ 102, 5.250% 01/01/11................................... Aaa AA $ 752 130 Salt River, Arizona, Agriculture Improvement and Power District, Electric Systems Revenue, (Salt River Project) Series 1992, 6.000% 01/01/13................................... Aa2 AA 133 270 Salt River, Arizona, Agriculture Improvement and Power District, Electric Systems Revenue, Unrefunded Balance, (Salt River Project) Series 1993B, 5.250% 01/01/11................................... Aa2 AA 278 2,985 Tucson and Pima County, Arizona, Industrial Development Authority, Single Family Mortgage Revenue, Series 2001A-1, AMT, (GNMA/FNMA/FHLMC COLL), 4.650% 07/01/21................................... NR AAA 3,213 500 Tucson, Arizona, Airport Authority, Revenue, Series 2001, AMT, (AMBAC Insured), 5.500% 06/01/12................................... Aaa AAA 565 1,000 Tucson, Arizona, GO Refunding, Series 1995, (FGIC Insured), 5.600% 07/01/07................................... Aaa AAA 1,104
SEE NOTES TO FINANCIAL STATEMENTS. 22 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 1,995 Tuscon & Pima County, Arizona, Industrial Development Authority, Single Family Mortgage Revenue, Series 2001A1, AMT, (GNMA/FNMA/FHLMC COLL), 4.650% 01/01/34................................... NR AAA $ 2,192 1,235 Yuma County, Arizona, Jail District Revenue, Series 1996, (AMBAC Insured), 5.300% 07/01/09................................... Aaa AAA 1,344 1,000 Yuma, Arizona, Municipal Property Corporation, Municipal Facilities Revenue, Series 2001, (AMBAC Insured), 5.000% 07/01/17................................... Aaa AAA 1,068 ---------- 62,670 ---------- ARKANSAS -- 1.4% 8,725 Arkansas State, Federal Highway Grant Anticipation GO, Series 2001A, 5.250% 08/01/09................................... Aa2 AA 9,953 10,000 Arkansas State, GO, Series 2000A, 5.500% 08/01/11................................... Aa2 AA 11,362 7,000 Hot Springs, Arkansas, IDR Refunding, (Willamette Industries Project) Series 1991, 6.650% 12/01/02................................... NR BBB 7,050 ---------- 28,365 ---------- CALIFORNIA -- 1.8% 6,000 ABAG Finance Authority for Non-Profit Corporations, California, Multi-Family Revenue Refunding, Series 2000B, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.250% 08/15/30................................... Baa3 BBB- 6,520 2,000 California State, GO, Series 1990, 7.000% 08/01/04................................... A1 A+ 2,191
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 1,540 California State, GO, Series 2000, 5.250% 06/01/15................................... A1 A+ $ 1,686 3,265 California State, GO, Series 2000, 5.000% 12/01/16................................... A1 A+ 3,495 1,000 California, Industry Urban Development Agency, Refunding Tax Allocation, (Transition Distribution Project) Series 1992-3, Prerefunded 11/01/02 @ 100.625, 6.900% 11/01/07................................... NR A- 1,011 295 California, Statewide Communities Development Authority, Certificates of Participation Revenue, (Cedar - Sinai Medical Center Project) Series 1992, 6.250% 08/01/03................................... A3 NR 302 3,115 California, Statewide Communities Development Authority, Certificates of Participation, (The Internext Group Project) Series 1999, 4.000% 04/01/03................................... NR BBB 3,142 5,500 California, Statewide Communities Development Authority, Revenue Certificates of Participation, Series 1993, 5.400% 11/01/15................................... A3 NR 5,681 10,000 Los Angeles, California, Unified School District, Series 1998B, 5.000% 07/01/18................................... Aaa AAA 10,679 400 Southern California, Public Power Authority, Power Project Revenue, Unrefunded Balance, Series 1989, 7.000% 07/01/05................................... A2 A 402 ---------- 35,109 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 23 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- COLORADO -- 2.5% $ 1,000 Adams County, Colorado, School District Number 012, GO, Series 1997, (FGIC Insured, State Aid Withholding), 5.250% 12/15/09................................... Aaa AAA $ 1,128 3,635 Aurora Centretech Metropolitan District, Colorado, GO Refunding, Series 1998C, (BNP Paribas LOC), Mandatory Put 12/01/08 @ 100, 4.875% 12/01/28................................... NR AA- 3,886 2,445 Boulder Larimer and Weld Counties, Colorado State, Vrain Valley School District, GO, Series 1997, (FGIC Insured), 5.000% 12/15/10................................... Aaa AAA 2,709 10,000 Colorado, E-470 Public Highway Authority, Revenue, Series 1997B, (MBIA Insured), 9.730%& 09/01/12.................................. Aaa AAA 6,884 4,000 Colorado, Northwest Parkway Public Highway Authority, Revenue, Series 2001C, 4.501%& 06/15/21.................................. Aaa AAA 2,783 3,075 Denver, Colorado, City and County Airport Revenue Refunding, Series 2000A, AMT, (AMBAC Insured), 6.000% 11/15/15................................... Aaa AAA 3,523 10,300 Denver, Colorado, City and County Airport Revenue, Series 1995C, (MBIA Insured), 6.500% 11/15/12................................... Aaa AAA 12,696 5,570 Denver, Colorado, City and County Excise Tax Revenue Refunding, Series 1999A, (FSA Insured), 5.375% 09/01/11................................... Aaa AAA 6,276
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- COLORADO -- (CONTINUED) $ 1,630 Denver, Colorado, Health and Hospital Authority, Healthcare Revenue, Series 2001A, 6.000% 12/01/23................................... Baa2 BBB+ $ 1,693 7,385 Douglas County, Colorado, School District Number 1, Douglas and Elbert Counties, GO, Series 2001, (MBIA Insured, State Aid Withholding), 5.250% 12/15/13................................... Aaa AAA 8,419 ---------- 49,997 ---------- CONNECTICUT -- 0.8% 6,465 Connecticut State, Housing Finance Authority, Revenue, (Housing Mortgage Finance Program) Series 1997D-2, AMT, 5.600% 11/15/21..................... Aaa AAA 6,791 9,800 Stamford, Connecticut, Housing Authority, Multifamily Revenue Refunding, (Fairfield Apartments Project) Series 1998, AMT, Mandatory Put 12/01/08 @ 100, 4.750% 12/01/28................................... A3 BBB+ 9,732 ---------- 16,523 ---------- DISTRICT OF COLUMBIA -- 0.7% 1,375 District Columbia, Revenue, (George University Project) Series 1988C, (MBIA Insured), 4.850% 04/01/09................................... Aaa AAA 1,519 2,000 District Columbia, Water and Sewer Authority, Public Utility Revenue, Series 1998, (FSA Insured), 5.500% 10/01/11................................... Aaa AAA 2,322 1,000 District of Columbia, Hospital Revenue Refunding, (Medlantic Healthcare Group Project) Series 1997A, (MBIA Insured), 6.000% 08/15/06................................... Aaa AAA 1,143
SEE NOTES TO FINANCIAL STATEMENTS. 24 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA -- (CONTINUED) $ 1,350 District of Columbia, Hospital Revenue Refunding, (Medlantic Healthcare Group Project) Series 1997A, (MBIA Insured), 6.000% 08/15/07................................... Aaa AAA $ 1,568 3,050 District of Columbia, Revenue, (Georgetown University Project) Series 1988C, (MBIA Insured), 5.050% 04/01/11................................... Aaa AAA 3,403 2,000 District of Columbia, Revenue, (The Smithsonian Institute Project) Series 1997, 5.000% 02/01/17................................... Aaa AAA 2,113 1,500 Metropolitan Washington, District of Columbia, Airport Revenue, Series 1994A, AMT, (MBIA Insured), 5.600% 10/01/06................................... Aaa AAA 1,616 ---------- 13,684 ---------- FLORIDA -- 5.1% 1,000 Casselberry, Florida, Utility System Revenue Refunding, Series 1994, (FGIC Insured), 5.050% 10/01/07................................... Aaa AAA 1,023 1,000 Deerfield Beach, Florida, Water and Sewer Revenue Refunding, Series 1992, (FGIC Insured), 6.125% 10/01/03................................... Aaa AAA 1,025 2,700 Duval County, Florida, Housing Finance Authority, Multi-Family Housing Revenue Refunding, (United Dominion Realty Trust - Greentree Place Project) Series 1995, Mandatory Put 04/01/15 @ 100, 6.750% 04/01/25................................... NR BBB- 2,850
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 4,450 Duval County, Florida, Housing Finance Authority, Multi-Family Mortgage Revenue Refunding, (The Cove Project) Series 1992, 6.100% 10/01/02................................... NR AAA $ 4,450 4,370 Escambia County, Florida, Housing Finance Authority, Single-Family Mortgage, Revenue, Series 1999, AMT, (FNMA/GNMA COLL), 4.500% 10/01/09................................... Aaa NR 4,634 2,500 Florida State, Board of Education, Capital Outlay Refunding GO, Series 1995D, 4.750% 06/01/07................................... Aa2 AA+ 2,685 3,990 Florida State, Board of Education, Capital Outlay Refunding GO, Series 1998B, 5.250% 06/01/11................................... Aa2 AA+ 4,589 3,035 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1995A, Prerefunded 01/01/05 @ 101, 5.400% 01/01/06................................... Aa2 AA+ 3,308 5,575 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.500% 06/01/06................................... Aa2 AA+ 6,225 4,000 Florida State, Division of Bond Financing, Department of General Services, Revenue, (Department of Natural Resources - Preservation 2000 Project) Series 1995A, (AMBAC Insured), Prerefunded 07/01/05 @ 101, 5.500% 07/01/06................................... Aaa AAA 4,438
SEE NOTES TO FINANCIAL STATEMENTS. 25 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 7,440 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (Altamonte Project) Series 1994C, Mandatory Put 12/01/03 @ 100, 7.000% 12/01/24................................... NR BBB+ $ 7,658 2,000 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (United Dominion Realty Trust - Andover Project) Series 1996E, AMT, Mandatory Put 05/01/08 @ 100, 6.350% 05/01/26................................... NR BBB+ 2,099 4,695 Florida, Ports Financing Commission Revenue, State Transportation Trust Fund, Series 1996, (MBIA Insured), 6.000% 06/01/06................................... Aaa AAA 5,262 4,000 Jacksonville, Florida, Electric Authority, Revenue Refunding, (St. John River Project) Series 1993-10, 6.500% 10/01/03................................... Aa2 AA 4,139 2,500 Lakeland, Florida, Electrical and Water Revenue, Series 1996, Prerefunded 10/01/06 @ 102, 5.500% 10/01/26................................... NR AAA 2,872 2,000 Lee County, Florida, Water and Sewer Revenue, Series 1999A, (AMBAC Insured), 4.750% 10/01/19................................... Aaa AAA 2,074 1,000 Manatee County, Florida, Public Utilities Revenue Refunding, Series 1991B, (MBIA Insured), 6.300% 10/01/02................................... Aaa AAA 1,000
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,000 Manatee County, Florida, Public Utilities Revenue Refunding, Series 1991B, (MBIA Insured), 6.400% 10/01/03................................... Aaa AAA $ 1,024 5,000 Miami-Dade County, Florida, Aviation Revenue Refunding, Series 1998A, AMT, 5.250% 10/01/07................................... Aaa AAA 5,560 4,075 North Broward, Florida, Hospital District Revenue Refunding, Series 1997, 5.250% 01/15/11................................... Aaa AAA 4,500 2,000 Orange County, Florida, Public Facilities Revenue, Series 1994A, (AMBAC Insured), 5.450% 10/01/05................................... Aaa AAA 2,178 3,060 Orlando and Orange County, Florida, Expressway Authority, Revenue Refunding, Senior Lien, Series 1993, (AMBAC Insured), 5.375% 07/01/08................................... Aaa AAA 3,207 2,300 Orlando and Orange County, Florida, Expressway Authority, Revenue, Series 1988, (AMBAC Insured), 7.625% 07/01/18................................... Aaa AAA 2,550 1,000 Osceola County, Florida, Transportation Revenue, (Osceola Parkway Project) Series 1992, (MBIA Insured), 5.850% 04/01/06................................... Aaa AAA 1,024 1,000 Palm Beach County, Florida, Criminal Justice Facilities Revenue, Series 1994, (FGIC Insured), Prerefunded 06/01/04 @ 102, 5.850% 06/01/07................................... Aaa AAA 1,090
SEE NOTES TO FINANCIAL STATEMENTS. 26 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 7,000 Pinellas County, Florida, Housing Authority, Housing Revenue, (Affordable Housing Project), Series 2001, (FSA Insured), 4.600% 12/01/10................................... Aaa AAA $ 7,610 5,000 Tampa, Florida, Health Systems Revenue, (Catholic Health East Project) Series 1998A-1, (MBIA Insured), 5.500% 11/15/13................................... Aaa AAA 5,814 4,000 Tampa, Florida, Health Systems Revenue, (Catholic Health East Project) Series 1998A-1, (MBIA Insured), 5.500% 11/15/14................................... Aaa AAA 4,647 2,000 Tampa, Florida, Water and Sewer Revenue, Series 1987, 6.800% 10/01/07................................... NR AAA 2,269 ---------- 101,804 ---------- GEORGIA -- 1.4% 3,500 Cartersville, Georgia, Development Authority, Sewer Facilities Revenue Refunding, (Anheuser-Busch Companies, Inc. Project) Series 1997, AMT, 5.625% 05/01/09................................... A1 A+ 3,922 5,635 DeKalb County, Georgia, Special Recreation Tax District, GO, 5.000% 12/01/13................................... Aaa AA+ 6,416 5,000 Fulton and DeKalb Counties, Georgia, Hospital Authority, GO Refunding Certificates, (Grady Memorial Hospital Project) Series 1993, (MBIA Insured), 5.250% 01/01/04................................... Aaa AAA 5,225
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 3,000 Fulton County, Georgia, Building Authority, Revenue Refunding, (County Government and Health Facilities Project) Series 1992A, 6.125% 01/01/10................................... Aa3 AA $ 3,092 1,105 Fulton County, Georgia, Development Authority, Revenue, (Clark Atlanta University Project) Series 1995, (CONNIE LEE Insured), 5.100% 01/01/05................................... NR AAA 1,188 1,000 Georgia State, GO, Series 1991C, 6.500% 04/01/04................................... Aaa AAA 1,072 4,400 Georgia State, GO, Series 1997C, 6.250% 08/01/09................................... Aaa AAA 5,281 1,000 Georgia, Municipal Electric Authority, Power Revenue Refunding, Series 1993A, (GO of Participants), 4.900% 01/01/03................................... A2 A+ 1,009 ---------- 27,205 ---------- HAWAII -- 0.6% 1,000 Hawaii State, Department Budget and Finance Special Purpose Revenue, (Kapiolani Health Care Systems Project) Series 1993, 6.400% 07/01/13................................... Baa1 BBB+ 1,031 2,000 Hawaii State, GO Refunding, Series 1997, (FGIC Insured), 5.000% 03/01/04................................... Aaa AAA 2,094 4,680 Honolulu City and County, Hawaii, GO Refunding, Series 1990A, 7.350% 07/01/04................................... Aa3 AA- 5,126 2,500 Honolulu City and County, Hawaii, GO Refunding, Series 1990A, 7.350% 07/01/07................................... Aa3 AA- 3,006 ---------- 11,257 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 27 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- IDAHO -- 0.0%+ $ 65 Idaho, Housing Agency, Single Family Mortgage Revenue, Series 1989D-2, (FHA/VA Mortgages), 7.850% 01/01/21................................... NR AA $ 65 205 Idaho, Housing Agency, Single Family Mortgage Revenue, Series 1990A, (FHA/VA Mortgages), 7.500% 07/01/24................................... NR AA 209 90 Idaho, Housing Agency, Single Family Mortgage Revenue, Series 1990C-1, (FHA/VA Mortgages), 7.650% 07/01/10................................... Aa1 AA 90 ---------- 364 ---------- ILLINOIS -- 9.4% 2,370 Chicago, Illinois, Board of Education GO, Series 1997, (AMBAC Insured), 5.250% 12/01/05................................... Aaa AAA 2,608 5,195 Chicago, Illinois, City Colleges Chicago Capital Improvement GO, Series 1999, (FGIC Insured), 6.000% 01/01/11................................... Aaa AAA 6,112 1,000 Chicago, Illinois, Emergency Telephone Systems GO, Series 1998, (FGIC Insured), 5.550% 01/01/08................................... Aaa AAA 1,140 2,000 Chicago, Illinois, Equipment Notes GO, Series 1998, (FGIC Insured), 5.000% 01/01/08................................... Aaa AAA 2,203 2,500 Chicago, Illinois, Gas Supply Revenue, (Peoples Gas Light and Coke Project) Series 1985A, 6.875% 03/01/15................................... Aa3 A- 2,560 5,650 Chicago, Illinois, GO Refunding, Series 1999, (FGIC Insured), 5.000% 01/01/15................................... Aaa AAA 6,078 7,105 Chicago, Illinois, GO Refunding, Series 1999, (FGIC Insured), 5.250% 01/01/18................................... Aaa AAA 8,007
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $10,000 Chicago, Illinois, GO Refunding, Series 1999A, (FGIC Insured), 5.000% 01/01/08................................... Aaa AAA $ 11,016 5,000 Chicago, Illinois, Housing Authority, Capital Program Revenue, Series 2001, 5.375% 07/01/13................................... Aa3 AA 5,410 3,750 Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Capital Improvement GO, Series 1993, 5.000% 12/01/02................................... Aaa AA+ 3,772 1,500 Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago GO Refunding, 5.250% 12/01/04................................... Aaa AA+ 1,613 1,000 Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago, Capital Improvement Bonds GO, 6.750% 01/01/04................................... Aaa AA+ 1,063 5,640 Chicago, Illinois, O'Hare International Airport Revenue Refunding, Series 1993C, (MBIA Insured), 5.000% 01/01/11................................... Aaa AAA 6,280 10,000 Chicago, Illinois, O'Hare International Airport Revenue Refunding, Series 1999, (AMBAC Insured), 5.500% 01/01/12................................... Aaa AAA 11,104 10,200 Chicago, Illinois, Park District, GO, Series 1995, 6.600% 11/15/14................................... Aa3 AA 11,607 1,135 Chicago, Illinois, Park District, GO, Series 1997, (AMBAC Insured), 5.250% 01/01/09................................... Aaa AAA 1,251 1,195 Chicago, Illinois, Park District, GO, Series 1997, (AMBAC Insured), 5.250% 01/01/10................................... Aaa AAA 1,314
SEE NOTES TO FINANCIAL STATEMENTS. 28 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,260 Chicago, Illinois, Park District, GO, Series 1997, (AMBAC Insured), 5.250% 01/01/11................................... Aaa AAA $ 1,386 1,325 Chicago, Illinois, Park District, GO, Series 1997, (AMBAC Insured), 5.250% 01/01/12................................... Aaa AAA 1,457 1,000 Chicago, Illinois, Public Building Commission Revenue, Chicago Transit Authority, Series 1995, (AMBAC Insured), Prerefunded 01/01/05 @ 100, 6.600% 01/01/15................................... Aaa AAA 1,107 1,160 Chicago, Illinois, School Finance Authority, GO, Series 1994A, (MBIA Insured), 4.900% 06/01/05................................... Aaa AAA 1,242 2,000 Chicago, Illinois, Water Revenue Refunding, Series 1992, (AMBAC Insured), 5.600% 11/01/04................................... Aaa AAA 2,047 1,490 Chicago, Illinois, Water Revenue Refunding, Series 1993, (FGIC Insured), 5.100% 11/01/08................................... Aaa AAA 1,669 4,000 Chicago, Illinois, Water Revenue, Series 1992, (AMBAC Insured), 5.400% 11/01/02................................... Aaa AAA 4,013 2,100 Cook and Lake Counties, Illinois, Northwest Water Commission, Water Revenue, Series 1993, (MBIA Insured), 5.000% 05/01/08................................... Aaa AAA 2,141 1,000 Cook County, Illinois, Capital Improvement GO, Series 1996, (FGIC Insured), 5.400% 11/15/07................................... Aaa AAA 1,119 2,000 Cook County, Illinois, Community College District Number 508, Certificates of Participation, Series 1990, (FGIC Insured), 8.750% 01/01/07................................... Aaa AAA 2,490
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 2,265 Cook County, Illinois, School District Number 135, GO Refunding, Series 1995, (FGIC Insured), 5.450% 12/01/08................................... Aaa AAA $ 2,543 2,350 Cook County, Illinois, School District Number 135, GO Refunding, Series 1995, (FGIC Insured), 5.550% 12/01/09................................... Aaa AAA 2,626 1,145 Du Page County, Illinois, School District, GO, Series 1997, (FGIC Insured), 6.750% 02/01/11................................... Aaa NR 1,420 6,850 Illinois State, GO, Series 2000, Prerefunded 06/01/10 @ 100, 5.750% 06/01/15................................... Aaa AAA 8,065 12,500 Illinois State, Sales Tax Revenue Refunding, Series 1993S, 6.000% 06/15/03................................... Aa2 AAA 12,890 5,025 Illinois, Development Financial Authority, Solid Waste Disposal Revenue, (Waste Management Inc. Project) Series 1997, AMT, 5.050% 01/01/10................................... NR BBB 4,950 1,400 Illinois, Educational Facilities Authority, Revenue Refunding, (University of Chicago Project) Series 1993C, 5.000% 07/01/06................................... Aa1 AA 1,463 1,000 Illinois, Educational Facilities Authority, Revenue, (Northwestern University Project) Series 1993, 5.000% 12/01/02................................... Aa1 AA+ 1,006 1,030 Illinois, Educational Facilities Authority, Revenue, (Shedd Aquarium Society Project) Series 1997, (AMBAC Insured), 5.150% 07/01/09................................... Aaa AAA 1,155
SEE NOTES TO FINANCIAL STATEMENTS. 29 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $1,025 Illinois, Educational Facilities Authority, Revenue, (Shedd Aquarium Society Project) Series 1997, (AMBAC Insured), 5.250% 07/01/10................................... Aaa AAA $ 1,151 1,145 Illinois, Educational Facilities Authority, Revenue, (Shedd Aquarium Society Project) Series 1997, (AMBAC Insured), 5.300% 07/01/11................................... Aaa AAA 1,287 3,000 Illinois, Educational Facilities Authority, Revenue, (University of Chicago Project) Series 1998B, Mandatory Put 07/01/04 @ 100, 4.400% 07/01/25................................... Aa1 AA 3,131 635 Illinois, Health Facilities Authority, Revenue, (Franciscan Sisters Health Care Hospital) Series 1994A, (MBIA Insured), 6.500% 09/01/05................................... Aaa AAA 719 6,320 Illinois, Health Facilities Authority, Revenue, (Highland Park Hospital Project) Series 1991B, (FGIC Insured), Prerefunded 10/01/07 @ 102, 5.900% 10/01/12................................... Aaa AAA 7,449 1,400 Illinois, Health Facilities Authority, Revenue, (Northwestern Memorial Hospital) Series 1994A, 5.300% 08/15/03................................... Aa2 AA+ 1,442 1,700 Illinois, Health Facilities Authority, Revenue, (Northwestern Memorial Hospital) Series 1994A, 5.400% 08/15/04................................... Aa2 AA+ 1,808 2,400 Illinois, Metropolitan Pier and Exposition Authority, Revenue, Series 1992, (MBIA-IBC Insured), 6.500% 06/01/05................................... Aaa AAA 2,685
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,580 Illinois, Metropolitan Pier and Exposition Authority, Revenue, Series 1996A, (AMBAC Insured), 6.000% 12/15/06................................... Aaa AAA $ 1,813 6,985 Illinois, Northwest Municipal Junction Action, Water Agency and Supply Systems Revenue, Series 1997, (MBIA Insured), 5.125% 05/01/11................................... Aaa AAA 7,771 1,670 Illinois, University Housing and Auxillary Facilities Systems Revenue, Series 1996, (MBIA Insured), 5.000% 10/01/07................................... Aaa AAA 1,852 1,120 Kane County, Illinois, Public Building Commission, Community College Facilities Revenue Refunding, (Elgin Community College 509 Project) Series 1993A, (FGIC Insured), 5.300% 12/01/07................................... Aaa AAA 1,147 1,210 Kane County, Illinois, Public Building Commission, Community College Facilities Revenue Refunding, (Elgin Community College 509 Project) Series 1993A, (FGIC Insured), 5.300% 12/01/08................................... Aaa AAA 1,240 1,000 Lake County, Illinois, Warren Township High School District Number 121 Gurnee, GO Refunding, Series 1995, (FGIC Insured), 5.050% 01/01/07................................... Aaa AAA 1,085 530 Lansing, Illinois, Sales Tax Increment Revenue Refunding, (Landings Redevelopment Project) Series 1992, 6.500% 12/01/02................................... NR BBB 534
SEE NOTES TO FINANCIAL STATEMENTS. 30 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,005 McLean County, Illinois, School District Number 087 Bloomington, GO, 5.000% 02/01/04................................... Aa2 NR $ 1,016 3,300 Regional Transportation Authority of Illinois, Revenue, Series 1994A, (AMBAC Insured), 5.800% 06/01/05................................... Aaa AAA 3,576 1,750 Regional Transportation of Illinois Authority, Series 1994C, (FGIC Insured, GO of Authority), 7.750% 06/01/11................................... Aaa AAA 2,316 2,000 Rosemont, Illinois, Series 1991A, (FGIC Insured), 6.750% 02/01/08................................... Aaa AAA 2,034 1,800 Southern Illinois University, Housing and Auxillary Facilities Systems Revenue, Series 1996A, (MBIA Insured), 5.100% 04/01/05................................... Aaa AAA 1,941 2,250 Springfield, Illinois, Electric Revenue, Senior Lien, 6.500% 03/01/07................................... Aa3 A+ 2,611 1,000 Waukegan, Illinois, GO, Series 1992, (MBIA Insured), 6.550% 12/30/05................................... Aaa AAA 1,012 ---------- 187,547 ---------- INDIANA -- 3.1% 1,685 Carmel, Indiana, High School Building Corporation, Refunding Revenue, Series 1994, (MBIA Insured, State Aid Withholding), 5.250% 07/15/09................................... Aaa AAA 1,816 1,200 Clay, Indiana, School Building Corporation, Refunding Revenue, Series 1993, (MBIA Insured, State Aid Withholding), Prerefunded 01/01/03 @ 102, 6.000% 07/01/06................................... Aaa AAA 1,238
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- INDIANA -- (CONTINUED) $ 2,500 Columbus, Indiana, Four Star School Building Revenue, Series 1995, (MBIA Insured, State Aid Withholding), 5.700% 01/15/08................................... Aaa AAA $ 2,794 1,575 Hamilton County, Indiana, County Option Income Tax Revenue, Series 1998, (FSA Insured), 5.250% 07/10/12................................... Aaa AAA 1,746 1,140 Hamilton, Southeastern Indiana, North Del School Building Corporation, Revenue, Series 1996, (AMBAC Insured, State Aid Withholding), 5.300% 07/15/11................................... Aaa AAA 1,271 1,385 Hamilton, Southeastern Indiana, Consolidated School Building Corporation, Revenue, Series 1995, (AMBAC Insured, State Aid Withholding), Prerefunded 07/15/05 @ 102, 5.750% 07/15/09................................... Aaa AAA 1,561 3,170 Hamilton, Southeastern Indiana, Consolidated School Building Corporation, Revenue, Series 1996, (AMBAC Insured, State Aid Withholding), 5.500% 01/15/12................................... Aaa AAA 3,511 6,000 Indiana State, Development Finance Authority, PCR Refunding, (Southern Indiana Gas and Electric Project) Series 1998C, AMT, Mandatory Put 03/01/06 @ 100, 5.000% 03/01/30................................... A2 BBB+ 6,275 1,100 Indiana, Bond Bank Revenue, (State Revolving Fund Project) Series 1995A, 6.875% 02/01/12................................... NR AAA 1,235
SEE NOTES TO FINANCIAL STATEMENTS. 31 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- INDIANA -- (CONTINUED) $ 4,390 Indiana, Health Facilities Financing Authority, Hospital Revenue, (Clarian Health Partners, Inc. Project) Series 1996A, 5.000% 02/15/04................................... Aa3 AA $ 4,566 2,880 Indiana, Health Facilities Financing Authority, Hospital Revenue, (Methodist Hospital of Indiana, Inc. Project) Series 1992A, (Escrowed to Maturity), 5.750% 09/01/15................................... NR AA- 2,938 1,035 Indiana, Ivy Tech State College Revenue, Series 1997E, (AMBAC Insured), 5.000% 07/01/07................................... Aaa AAA 1,146 1,000 Indiana, Ivy Tech State College Revenue, Series 1997E, (AMBAC Insured), 5.050% 07/01/09................................... Aaa AAA 1,101 3,000 Indiana, Municipal Power Agency, Power Supply Systems Revenue Refunding, Series 1993B, (MBIA Insured), 5.375% 01/01/03................................... Aaa AAA 3,029 1,000 Indiana, Transportation Financing Authority, Highway Revenue, Series 1998A, (MBIA Insured), 5.250% 12/01/13................................... Aaa AAA 1,121 1,500 Indiana, Transportation Financing Authority, Highway Revenue, Series 1998A, (MBIA Insured), 5.250% 12/01/14................................... Aaa AAA 1,660 1,000 Indiana, University of Indiana Revenue, Series 1998K, 5.800% 08/01/11................................... Aa2 AA 1,117 1,000 Indiana, University of Indiana Revenue, Series 1998K, 5.900% 08/01/12................................... Aa2 AA 1,077 1,520 Indiana, University of Indiana Revenue, Series 1998L, 5.000% 08/01/09................................... Aa2 AA 1,669
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- INDIANA -- (CONTINUED) $ 2,510 Indiana, University of Indiana Revenue, Series 1998L, 5.000% 08/01/10................................... Aa2 AA $ 2,730 1,360 Indianapolis, Indiana, Airport Authority, Revenue Refunding, Series 1996A, (FGIC Insured), 5.000% 07/01/04................................... Aaa AAA 1,436 2,500 Indianapolis, Indiana, Airport Authority, Special Facilities Revenue, (Federal Express Corporation Project) Series 1994, AMT, 7.100% 01/15/17................................... Baa2 BBB 2,681 1,800 Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue, Series 1993A, 5.550% 01/10/06................................... Aaa AAA 1,856 1,000 Marion County, Indiana, Hospital Authority, Hospital Facilities Revenue, (Community Hospital Indianapolis Project) Series 1983, 6.000% 05/01/04................................... Aaa AAA 1,045 1,140 Pike Township, Indianapolis, School Building Corporation, Refunding Revenue, Series 1993, (State Aid Withholding), 4.800% 08/01/05................................... A1 AA 1,165 1,000 Plymouth, Indiana, Multi School Building Refunding Revenue, Series 1995, (MBIA Insured, State Aid Withholding), 5.550% 07/01/09................................... Aaa AAA 1,095 1,005 Shelby County, Indiana, Jail Building Corporation, Refunding Revenue, Series 1996, (MBIA Insured), 5.300% 07/15/07................................... Aaa AAA 1,111 1,045 Shelby County, Indiana, Jail Building Corporation, Refunding Revenue, Series 1996, (MBIA Insured), 5.400% 07/15/08................................... Aaa AAA 1,164
SEE NOTES TO FINANCIAL STATEMENTS. 32 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- INDIANA -- (CONTINUED) $ 525 St. Joseph County, Indiana, Hospital Authority, Hospital Facilities Revenue, (St. Joseph Hospital South Bend) Series 1979, 8.500% 12/01/04................................... Aaa AAA $ 567 1,000 Tippecanoe County, Indiana, School Building Corporation, Revenue, Series 1994, (MBIA Insured, State Aid Withholding), Prerefunded 01/15/04 @ 102, 5.800% 07/15/09................................... Aaa AAA 1,074 1,085 Westfield, Indiana, Housing Building Corporation, Refunding Revenue, Series 1998, (AMBAC Insured, State Aid Withholding), 5.100% 01/05/12................................... Aaa AAA 1,195 1,185 Westfield, Indiana, Housing Building Corporation, Refunding Revenue, Series 1998, (AMBAC Insured, State Aid Withholding), 5.100% 07/05/12................................... Aaa AAA 1,305 1,745 Westfield, Indiana, Housing Building Corporation, Refunding Revenue, Series 1998, (AMBAC Insured, State Aid Withholding), 5.250% 01/05/14................................... Aaa AAA 1,909 ---------- 61,204 ---------- IOWA -- 0.6% 9,650 Iowa, Student Loan Liquidity Corporation, Student Loan Revenue Refunding, Series 1998J, AMT, (AMBAC Insured), 4.800% 06/01/09................................... Aaa AAA 10,313
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- IOWA -- (CONTINUED) $ 1,000 Polk County, Iowa, GO Refunding, Series 1993, (FGIC Insured), 5.100% 12/01/03................................... Aaa AAA $ 1,042 ---------- 11,355 ---------- KANSAS -- 1.2% 5,000 Kansas State, Department of Transportation, Highway Revenue, Series 1992, 7.250% 03/01/05................................... Aa2 AA+ 5,642 5,000 Kansas State, Development Finance Authority, Revenue, (Board of Regents - Rehabilitation Project) Series 1997G-2, (AMBAC Insured), 5.500% 10/01/06................................... Aaa AAA 5,631 4,500 Kansas State, Development Finance Authority, Revenue, Series 1998A, 4.800% 06/01/13................................... NR A- 4,846 2,175 Labette County, Kansas, Single-Family Mortgage Revenue, Zero Coupon Capital Accumulator Bonds, Series 1982, (Escrowed to Maturity), 11.920%& 12/01/14................................. Aaa A- 1,319 5,000 Wichita, Kansas, Hospital Revenue Refunding, Series 2001-III, 6.250% 11/15/18................................... NR A+ 5,658 ---------- 23,096 ---------- KENTUCKY -- 0.4% 4,000 Carroll County, Kentucky, Collateralized PCR, (Kentucky Utilities Company Project) Series 1992A, (COLL Insured), 7.450% 09/15/16................................... A1 A 4,098 180 Kentucky State, Turnpike Authority, Toll Road Revenue, Series 1986A, Prerefunded 07/01/06 @ 100, 5.500% 07/01/07................................... Aa3 AA- 202
SEE NOTES TO FINANCIAL STATEMENTS. 33 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- KENTUCKY -- (CONTINUED) $ 3,625 Kentucky, Housing Corporation Revenue, Series 1993B, (FHA/VA/FNMA Mortgages), 4.850% 07/01/04................................... Aaa AAA $ 3,792 ---------- 8,092 ---------- LOUISIANA -- 0.6% 2,000 Jefferson Parish, Louisiana, Home Mortgage Authority, Series 1995A, (GNMA/FNMA Insured), 6.200% 12/01/20................................... NR AAA 2,161 605 Louisiana, Public Facilities Authority, Revenue, Single Family Mortgage Public, Series 1991A, (POOL Insured), 7.375% 10/01/12................................... Aa2 NR 618 6,000 Plaquemines, Louisiana, Port Harbor and Terminal District Marine, Terminal Facility Revenue Refunding, Series 2001, 5.000% 09/01/07................................... Baa2 BBB- 6,289 3,700 Plaquemines, Louisiana, Port Harbour and District Marine Terminal Facilities Revenue Refunding, (Electro-Coal Project) Series 2001B, 5.000% 09/01/07................................... A3 BBB- 3,878 ---------- 12,946 ---------- MAINE -- 0.1% 2,000 Maine, Municipal Bond Bank Revenue Refunding, Series 1993A, (GO of Bond Bank), 5.300% 11/01/06................................... Aa1 AAA 2,089 ---------- MARYLAND -- 1.1% 1,500 Baltimore, Maryland, Port Facilities Revenue, (E.I. duPont de Nemours and Company Project) Series 1985, 6.500% 12/01/10................................... Aa3 AA- 1,551
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MARYLAND -- (CONTINUED) $ 2,300 Maryland State, Energy Financing Administration, Solid Waste Disposal Revenue, (Whellabrator Water Projects) Series 1996, 5.550% 12/01/02................................... NR A- $ 2,313 10,925 Maryland State, Transportation Department Revenue, Series 2002 5.500% 02/01/10................................... Aa2 AA 12,655 35 Prince Georges County, Maryland, Solid Waste Management System Revenue, Series 1993, (FSA Insured), Prerefunded 06/15/03 @ 102, 5.200% 06/15/06................................... Aaa AAA 37 3,465 Prince Georges County, Maryland, Solid Waste Management System Revenue, Unrefunded Balance, Series 1993, 5.200% 06/15/06................................... Aaa AAA 3,626 2,500 Washington County, Maryland, Suburban Sanitation District Authority, Water Supply GO Refunding, Series 1993, 4.900% 12/01/05................................... Aaa AAA 2,643 ---------- 22,825 ---------- MASSACHUSETTS -- 3.1% 3,000 Massachusetts Bay, Transportation Authority, Revenue Refunding, Series 1993A, (MBIA-IBC Insured, GO of Authority, State GTD), 5.500% 03/01/09................................... Aaa AAA 3,433 5,000 Massachusetts State, GO Refunding, Series 1993C, 5.000% 08/01/07................................... Aa2 AA- 5,240 11,840 Massachusetts State, GO Refunding, Series 1993C, (AMBAC Insured), 4.950% 08/01/05................................... Aaa AAA 12,402
SEE NOTES TO FINANCIAL STATEMENTS. 34 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MASSACHUSETTS -- (CONTINUED) $ 8,000 Massachusetts State, GO Refunding, Series 1996A, 5.000% 11/01/09................................... Aa2 AA- $ 8,788 6,800 Massachusetts State, Industrial Financing Agency, Recovery Revenue, (Ogden Haverhill Project) Series 1998A, 5.350% 12/01/10................................... NR BBB 6,384 1,000 Massachusetts State, Industrial Financing Agency, Revenue, (Babson College Issue Project) Series 1998A, (MBIA Insured), 5.000% 10/01/18................................... Aaa AAA 1,054 6,000 Massachusetts State, Water Resources Authority, General Revenue Refunding, Series 1993B, 5.125% 03/01/04................................... Aa3 AA 6,206 3,235 Massachusetts, Educational Financing Authority, Education Loan Revenue Refunding, Series 1999A, (AMBAC Insured), 4.100% 07/01/05................................... Aaa AAA 3,407 3,490 Massachusetts, Educational Financing Authority, Educational Loan Revenue Refunding, Series 1999A, AMT, (AMBAC Insured), 4.750% 07/01/11................................... Aaa AAA 3,752 3,300 Massachusetts, Educational Financing Authority, Educational Revenue, Series 1998C, AMT, (MBIA Insured), 4.600% 12/01/08................................... Aaa AAA 3,535 2,930 Massachusetts, Educational Financing Authority, Educational Revenue, Series 1998C, AMT, (MBIA Insured), 4.700% 12/01/09................................... Aaa AAA 3,133
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MASSACHUSETTS -- (CONTINUED) $ 2,000 Massachusetts, University of Lowell Building Authority, Revenue, Series 1995A, (AMBAC Insured), 5.700% 11/01/09................................... Aaa AAA $ 2,251 2,000 New England Education Loan Marketing Company of Massachusetts, Student Loan Revenue Refunding, Series 1993A, AMT, 5.700% 07/01/05................................... Aa2 AA 2,161 ---------- 61,746 ---------- MICHIGAN -- 2.4% 1,895 Chippewa Valley, Michigan, Schools Refunding GO, Series 1994, (FGIC Q-SBLF Insured), 5.000% 05/01/08................................... Aaa AAA 2,027 1,000 Chippewa Valley, Michigan, Schools Refunding GO, Series 1994, (FGIC Q-SBLF Insured), 5.100% 05/01/09................................... Aaa AAA 1,068 7,500 Detroit, Michigan, Convention Facilities, Revenue Refunding, (Cobo Hall Expansion Project) Series 1993, (FSA Insured), 5.100% 09/30/04................................... Aaa AAA 8,008 2,000 Detroit, Michigan, GO Refunding, Series 1995B, 7.000% 04/01/04................................... Baa1 A- 2,152 1,000 Detroit, Michigan, Water Supply Systems Refunding Revenue, Series 1995B, (MBIA Insured), 5.300% 07/01/09................................... Aaa AAA 1,139 1,205 Grand Rapids, Michigan, Building Authority, Revenue, 5.000% 04/01/12................................... Aa2 AA 1,357 1,000 Grand Rapids, Michigan, Building Authority, Revenue, 5.000% 04/01/13................................... Aa2 AA 1,128 1,415 Grand Rapids, Michigan, Building Authority, Revenue, 5.000% 04/01/14................................... Aa2 AA 1,592
SEE NOTES TO FINANCIAL STATEMENTS. 35 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MICHIGAN -- (CONTINUED) $ 1,000 Lansing, Michigan, Tax Increment Finance GO, 6.000% 10/01/02................................... A1 AA+ $ 1,000 5,000 Michigan State, Hospital Finance Authority, Revenue, (Ascension Health Credit Project) Series 1999A, 5.750% 11/15/18................................... Aaa AAA 5,455 7,000 Michigan State, Hospital Finance Authority, Revenue, (Ascension Health Credit Project) Series 1999B, Mandatory Put 11/15/04 @ 100, 5.050% 11/15/33................................... Aa2 AA 7,469 4,000 Michigan, Greater Detroit Resource Recovery Authority, Revenue Refunding, Series 1996A, (AMBAC Insured), 5.500% 12/13/03................................... Aaa AAA 4,185 2,000 Michigan, Higher Education Student Loan Revenue Refunding, Series 1993-XII, (AMBAC Insured, GTD STD LNS), 5.000% 10/01/04................................... Aaa AAA 2,094 1,000 Pinckney, Michigan, Community Schools Refunding GO, Series 1993, (FGIC Q-SBLF Insured), 5.000% 05/01/07................................... Aaa AAA 1,040 3,195 Royal Oak, Michigan, Hospital Financing Authority, Hospital Revenue, (William Beaumont Hospital Project) Series 1997, 3.717%& 11/15/07.................................. Aa3 AA- 2,645 2,000 Royal Oak, Michigan, Hospital Financing Authority, Hospital Revenue, (William Beaumont Hospital Project) Series 1997K, 3.397%& 11/15/06.................................. Aa3 AA- 1,741 1,850 South Lake, Michigan, Schools GO, Series 1997, (FGIC Q-SBLF Insured), 5.250% 05/01/12................................... Aaa AAA 2,046
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MICHIGAN -- (CONTINUED) $ 1,000 Van Dyke, Michigan, Public Schools Refunding GO, Series 1996, (FGIC Q-SBLF Insured), 5.100% 05/01/09................................... Aaa AAA $ 1,096 1,000 Ypsilanti, Michigan, School District Refunding, Series 1996, (FGIC-Q-SBLF Insured), Prerefunded 05/01/07 @ 100, 5.400% 05/01/09................................... Aaa AAA 1,130 ---------- 48,372 ---------- MINNESOTA -- 1.0% 4,600 Minneapolis and St. Paul, Minnesota, MetroAirport Commission Airport Revenue, AMT, Series 1999B, (FGIC Insured), 5.000% 01/01/07................................... Aaa AAA 5,001 6,285 Minneapolis and St. Paul, Minnesota, MetroAirport Commission Airport Revenue, Series 2001D, AMT, (FGIC Insured), 5.750% 01/01/13................................... Aaa AAA 7,199 2,000 Minneapolis, Minnesota, Special School District Number 001, GO, Series 1997, (SD Credit Program), 5.000% 02/01/05................................... Aa1 AA+ 2,150 2,150 Southern Minnesota Municipal Power Agency, Power Supply Systems Revenue, Refunded Balance, Series 1992B, 5.800% 01/01/07................................... Aaa AAA 2,214 3,850 Southern Minnesota Municipal Power Agency, Power Supply Systems Revenue, Unrefunded Balance, Series 1992B, Prerefunded 01/01/03 @ 102, 5.800% 01/01/07................................... A2 A+ 3,969 ---------- 20,533 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 36 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MISSISSIPPI -- 0.6% $ 7,000 Mississippi State, GO Refunding, Series 2000, 5.000% 12/01/08................................... Aa3 AA $ 7,863 1,000 Mississippi State, University Educational Building Corporation, Revenue, Series 1998, (AMBAC Insured), 5.250% 08/01/12................................... Aaa NR 1,127 1,000 Mississippi State, University Educational Building Corporation, Revenue, Series 1998, (MBIA Insured), 5.250% 08/01/13................................... Aaa NR 1,124 2,370 Mississippi, Higher Education Authority, Revenue, Series 1992C, AMT, (GTD STD LNS), 6.400% 01/01/03................................... NR A 2,393 ---------- 12,507 ---------- MISSOURI -- 0.4% 1,590 Kansas City, Missouri, Water Revenue, Series 1994, 5.900% 12/01/05................................... Aa3 AA 1,726 2,980 Missouri State, Environmental Improvement and Energy Resource Authority, PCR Refunding, (Associated Electrical Cooperation - Thomas Hill Project) Series 1996, 5.500% 12/01/05................................... A1 AA 3,284 2,000 Missouri State, Health and Educational Facilities Authority, Health Facilities Revenue, (BJC Health Systems Project) Series 1994A, 5.900% 05/15/04................................... Aa3 NR 2,136 ---------- 7,146 ----------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- MONTANA -- 0.6% $ 7,000 Forsyth, Montana, PCR Refunding, (Portland General Electric Company Project) Series 1998A, Mandatory Put 05/01/03 @ 100, 4.600% 05/01/33................................... Baa3 BBB $ 6,627 4,475 Lewis and Clark County, Montana, Environmental Facilities Revenue, (Asarco, Inc. Project) Series 1998, AMT, 5.850% 10/01/33................................... Ca C 1,208 4,000 Montana State, Board Inventory Payroll Tax Revenue, (Workers Compensation Project) Series 1991, (MBIA Insured), 6.750% 06/01/07................................... Aaa AAA 4,687 ---------- 12,522 ---------- NEBRASKA -- 0.1% 1,000 Lincoln, Nebraska, Electric Systems Revenue Refunding, Series 1993A, 5.000% 09/01/06................................... Aa2 AA+ 1,051 ---------- NEVADA -- 1.8% 1,500 Clark County, Nevada, Las Vegas Convention and Visitors GO, Series 1993, (MBIA Insured), 5.100% 07/01/06................................... Aaa AAA 1,554 1,365 Clark County, Nevada, Passenger Facility Charge Revenue, Las Vegas/Macarran International Airport, Series 1995A, (MBIA Insured), 5.750% 07/01/08................................... Aaa AAA 1,480 6,175 Clark County, Nevada, School District, GO Refunding, Series 1993B, (FGIC Insured), 5.375% 05/01/05................................... Aaa AAA 6,372 10,000 Clark County, Nevada, School District, GO Refunding, Series 2002A, (FSA Insured, SCH BD GTY), 5.000% 06/15/10................................... Aaa AAA 11,184
SEE NOTES TO FINANCIAL STATEMENTS. 37 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NEVADA -- (CONTINUED) $ 1,180 Henderson, Nevada, Series 1997A, (MBIA Insured), 5.100% 06/01/08................................... Aaa AAA $ 1,303 440 Las Vegas Valley, Nevada, Water District, GO, Unrefunded Balance, Series 1992, (MBIA Insured), 5.700% 09/01/06................................... Aaa AAA 442 1,000 Nevada State, GO Refunding, (New Municipal Bond Bank Project) Series 1987C, 7.625% 11/01/03................................... Aaa AAA 1,025 1,000 Nevada State, GO, (Municipal Bond Bank Project Number 28-31) Series 1989C, 7.000% 01/01/03................................... Aaa AAA 1,014 2,000 Nevada State, GO, (Nevada Municipal Bond Bank Project) Series 1989C, 7.200% 01/01/06................................... Aaa AAA 2,049 6,570 Nevada State, GO, Series 1998A, 5.250% 05/15/16................................... Aa2 AA 7,187 1,350 Washoe County, Nevada, GO Refunding, (Reno/Sparks Convention Project) Series 1995, (MBIA Insured), 5.375% 07/01/08................................... Aaa AAA 1,482 ---------- 35,092 ---------- NEW JERSEY -- 2.0% 4,000 Bergen County, New Jersey, Utilities Authority, Water PCR, Series 1992B, (FGIC Insured), 5.500% 12/15/02................................... Aaa AAA 4,034 3,340 New Jersey State Housing and Mortgage Finance Agency, Revenue, (Home Buyer Project) Series 1999, AMT, 5.300% 04/01/08................................... Aaa AAA 3,622
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NEW JERSEY -- (CONTINUED) $ 3,440 New Jersey State Housing and Mortgage Finance Agency, Revenue, (Home Buyer Project) Series 1999, AMT, 5.400% 04/01/09................................... Aaa AAA $ 3,735 5,000 New Jersey State, GO Refunding, Series 1992D, 5.500% 02/15/04................................... Aa2 AA 5,267 5,000 New Jersey State, GO Refunding, Series 2001H, 5.250% 07/01/14................................... Aa2 AA 5,754 10,000 New Jersey State, Transportation Trust Fund Authority, Transportation Systems Revenue, Series 1997A, 5.000% 06/15/14................................... Aa3 AA- 10,716 3,840 New Jersey State, Transportation Trust Fund Authority, Transportations System Revenue, Unrefunded Balance, Series 1995A, (MBIA Insured), 5.500% 06/15/11................................... Aaa AAA 4,264 2,430 New Jersey State, Turnpike Authority, Revenue Refunding, Series 1972G, 5.750% 01/01/09................................... Aaa AAA 2,748 ---------- 40,140 ---------- NEW MEXICO -- 2.2% 3,000 Bernalillo County, New Mexico, Gross Receipts Tax Revenue Refunding, Series 1998, 5.250% 04/01/27................................... Aa3 AA 3,298 2,225 Farmington, New Mexico, Utility Systems Revenue, Series 1992, (FGIC Insured), 5.800% 05/15/07................................... Aaa AAA 2,276 1,475 Farmington, New Mexico, Utility Systems Revenue, Unrefunded Balance, Series 1992, (FGIC Insured), 5.800% 05/15/07................................... Aaa AAA 1,510
SEE NOTES TO FINANCIAL STATEMENTS. 38 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NEW MEXICO -- (CONTINUED) $13,500 Lordburg, New Mexico, PCR Refunding, (Phelps Dodge Corporation Project) Series 1993, 6.500% 04/01/13................................... Baa3 BBB- $ 13,479 40 New Mexico, Mortgage Finance Authority, Single Family Mortgage Revenue Refunding, Series 1992A-2, (GEMIC Insured), 6.850% 07/01/12................................... Aaa AAA 40 3,970 New Mexico, Mortgage Finance Authority, Single Family Mortgage Revenue, Series 2001B-2, AMT, (GNMA/FNMA/FHLMC COLL), 6.200% 09/01/32................................... NR AAA 4,431 2,850 New Mexico, Mortgage Finance Authority, Single Family Mortgage Revenue, Series 2002B-2, AMT, (GNMA/FNMA/FHLMC COLL), 3.500% 03/01/33................................... NR AAA 3,138 2,500 New Mexico, Mortgage Finance Authority, Single Family Mortgage Revenue, Series 2002PG-A-2, (GNMA/FNMA/FHLMC COLL), 4.000% 03/01/33................................... NR AAA 2,741 1,045 New Mexico, Mortgage Finance Authority, Single-Family Mortgage Revenue, Series 1997C-2, AMT, (GNMA/FNMA/FHLMC COLL), 5.950% 07/01/17................................... Aaa NR 1,106 1,760 New Mexico, Mortgage Finance Authority, Single-Family Mortgage Revenue, Series 1997E-2, AMT, (GNMA/FNMA/FHLMC COLL), 5.600% 07/01/17................................... NR AAA 1,843
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NEW MEXICO -- (CONTINUED) $ 6,000 New Mexico, State, Highway Community Tax Revenue, Series 2000A, 6.000% 06/15/10................................... Aa2 AA+ $ 7,128 2,000 Santa Fe, New Mexico, Gross Receipts Tax Revenue, Series 1997A, (AMBAC Insured), 5.000% 06/01/08................................... Aaa AAA 2,224 ---------- 43,214 ---------- NEW YORK -- 4.9% 8,500 Dutchess County, New York, Industrial Development Agency, Industrial Development Revenue, (IBM Project) Series 1999, AMT, Mandatory Put 12/01/09 @ 100, 5.450% 12/01/29................................... A1 A+ 9,458 10,000 New York City, New York, Transitional Finance Authority, Revenue Refunding, Future Tax Secured, Series 2002A, 5.500% 11/01/26................................... Aa2 AA+ 11,596 5,000 New York State, Dormitory Authority, Revenue, (City University Project) Series 1993B, 5.250% 07/01/06................................... A3 AA- 5,525 5,850 New York State, Dormitory Authority, Revenue, (State Educational Facilities Project) Series 1993A, 5.250% 05/15/15................................... A3 AA- 6,700 5,000 New York State, Dormitory Authority, Revenue, Series 2002B, Mandatory Put 05/15/12 @ 100, 5.250% 11/15/23................................... NR AA- 5,614 7,000 New York State, Dormitory Authority, State University Educational Facilities Revenue, Series 1993A, 5.400% 05/15/04................................... A3 AA- 7,414
SEE NOTES TO FINANCIAL STATEMENTS. 39 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NEW YORK -- (CONTINUED) $ 1,000 New York State, Tollway Authority, Highway and Bridge Trust Fund Revenue, Series 1995A, (MBIA Insured), Prerefunded 04/01/05 @ 102, 5.600% 04/01/10................................... Aaa AAA $ 1,115 4,510 New York State, Tollway Authority, Service Contract Revenue, (Local Highway and Bridge Project), 5.500% 04/01/13................................... A3 AA- 5,226 7,000 New York, New York City Municipal Water Finance Authority, Water and Sewer System Revenue, Series 2000B, 5.125% 06/15/31................................... Aa2 AA 7,271 1,000 New York, New York, GO, Series 1986C, (FGIC-TCRS Insured), 7.250% 02/01/06................................... Aaa AAA 1,019 2,260 New York, New York, GO, Series 1993E, (MBIA-IBC Insured), Prerefunded 05/15/03 @ 101.5, 5.800% 05/15/05................................... Aaa AAA 2,354 3,900 New York, New York, GO, Series 1994A, 7.000% 08/01/03................................... A2 A 4,069 855 New York, New York, GO, Series 1995D, Prerefunded 02/15/05 @ 101, 5.750% 02/15/07................................... Aaa A 945 3,500 New York, New York, GO, Series 1997, (MBIA Insured), 6.250% 04/15/07................................... Aaa AAA 4,053 1,700 New York, New York, GO, Series 1997L, (MBIA Insured), 8.000% 08/01/06................................... Aaa AAA 2,049 10,250 New York, New York, GO, Series 2002G, 5.250% 08/01/07................................... A2 A 11,337 7,645 New York, New York, GO, Unrefunded Balance, Series 1995D, 5.750% 02/15/07................................... A2 A 8,219
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NEW YORK -- (CONTINUED) $ 3,000 Niagara County, New York, Individual Development Agency, Solid Waste Disposal Revenue, Series 2001B, AMT, Mandatory Put 11/15/13 @ 100, 5.550% 11/15/24................................... Baa1 BBB $ 3,179 ---------- 97,143 ---------- NORTH CAROLINA -- 1.5% 4,300 Cary, North Carolina, Water and Public Improvement, GO, Series 2001, 5.000% 03/01/13................................... Aaa AAA 4,806 3,000 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 6.000% 07/01/24................................... Aaa AAA 3,331 2,000 Cumberland County, North Carolina, GO, Series 1998, (FGIC Insured), 5.000% 03/01/17................................... Aaa AAA 2,141 1,850 North Carolina, Housing Finance Agency, (Single-Family Program) Series 1997RR, AMT, (FHA Insured), 5.850% 09/01/28................................... Aa2 AA 1,933 4,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp, Inc. Project) Series 1996, 5.125% 05/01/16................................... A1 AA- 4,139 3,135 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Pitt County Memorial Hospital Project) Series 1998A, 4.400% 12/01/08................................... Aa3 AA- 3,355 3,000 North Carolina, Medical Care Commission, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1998B, 5.000% 12/01/18................................... Aa3 AA- 3,117
SEE NOTES TO FINANCIAL STATEMENTS. 40 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $ 5,000 North Carolina, Medical Care Community Hospital Revenue, (Duke University Hospital Project) Series 1996C, (MBIA-IBC Insured), 5.250% 06/01/26................................... Aaa AAA $ 5,125 1,200 Winston-Salem, North Carolina, Water and Sewer Systems Revenue Refunding, Series 1997, 4.600% 06/01/11................................... Aa2 AAA 1,283 ---------- 29,230 ---------- OHIO -- 2.8% 6,135 Lorain County, Ohio, Hospital Revenue Refunding, (Catholic Healthcare Project) Series 2001A, 5.625% 10/01/14................................... A1 AA- 6,798 3,000 Lorain County, Ohio, Hospital Revenue, (Catholic Healthcare Partnerships Project) Series 2001A, 5.625% 10/01/15................................... A1 AA- 3,300 3,000 Lorain County, Ohio, Hospital Revenue, (Catholic Healthcare Partnerships Project) Series 2001A, 5.625% 10/01/16................................... A1 AA- 3,286 6,060 Montgomery County, Ohio, Hospital Revenue, (Kettering Medical Center Project) Series 1999, 6.500% 04/01/13................................... Baa1 BBB+ 6,688 8,000 Ohio State Revenue, Series 2002, 4.500% 06/15/06................................... Aa3 AA 8,658 1,000 Ohio State, Building Authority, State Facilities Administration Building Fund Revenue, Series 1994A, (MBIA Insured), Prerefunded 10/01/04 @ 102, 6.000% 10/01/09................................... Aaa AAA 1,106 5,000 Ohio State, Common Schools, GO, Series 2001A, 5.000% 06/15/12................................... Aa1 AA+ 5,549
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- OHIO -- (CONTINUED) $ 8,150 Ohio State, Common Schools, GO, Series 2002B, 4.000% 09/15/08................................... Aa1 AA+ $ 8,701 1,000 Ohio State, Public Facilities Commission, Revenue (Higher Education Capital Facilities Project) Series 1997-IIA, 5.000% 05/01/05................................... Aa2 AA 1,080 2,500 Ohio State, Public Facilities Commission, Revenue, (Higher Education Capital Facilities Project) Series 1995A-II, (AMBAC Insured), 5.200% 05/01/05................................... Aaa AAA 2,710 2,380 Ohio State, University Revenue Refunding, Series 1992-A2, 5.700% 12/01/05................................... Aa2 AA 2,444 1,500 Ohio State, Water Development Authority, Revenue (Improvement Pure Water Project) Series 1992, (MBIA Insured), 5.600% 12/01/02................................... Aaa AAA 1,511 1,560 Ohio, Housing Finance Agency, Mortgage Revenue, (Residential Project) Series 1998B-2, AMT, (GNMA COLL), 4.800% 09/01/07................................... Aaa NR 1,674 2,500 Scioto County, Ohio, Marine Terminal Revenue Refunding, (Norfolk Southern Corporation Project) Series 1998, 5.300% 08/15/13................................... Baa1 BBB 2,570 ---------- 56,075 ---------- OKLAHOMA -- 0.5% 4,670 Oklahoma City, Oklahoma, Airport Trust Revenue, Series 2000B, AMT, (FSA Insured), 5.375% 07/01/11................................... Aaa AAA 5,176
SEE NOTES TO FINANCIAL STATEMENTS. 41 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- OKLAHOMA -- (CONTINUED) $ 5,000 Oklahoma, Development Finance Authority, Revenue Refunding, (Hillcrest Healthcare Center Inc. Project) Series 1999A, 5.625% 08/15/19................................... B2 B- $ 3,961 1,250 Tulsa, Oklahoma, GO, Series 1996 5.125% 05/01/05................................... Aa2 AA 1,314 ---------- 10,451 ---------- OREGON -- 1.2% 300 Josephine County, Oregon, School District Number 007, GO, Series 1995, (FGIC Insured), 5.750% 06/01/06................................... Aaa AAA 338 200 Lane County, Oregon, School District Number 019 Springfield, GO Refunding, Series 1997, (FGIC Insured), 6.000% 10/15/10................................... Aaa AAA 240 100 Multnomah County, Oregon, School District Number 1J, Portland GO, Series 1996, 5.000% 06/01/04................................... Aa3 A+ 106 10,000 Oregon State, Department Administrative Services, Certificates of Participation, Series 2002C, (MBIA Insured), 5.250% 11/01/10................................... Aaa AAA 11,482 300 Oregon State, GO, (Elderly and Disabled Housing Project) Series 1996B, 5.700% 08/01/16................................... Aa2 AA 322 115 Oregon State, GO, (Elderly and Disabled Housing Project) Series 1997A, 5.050% 08/01/11................................... Aa2 AA 124 80 Oregon State, Housing and Community Services, Department Mortgage Revenue, (Single Family Mortgage Project) Series 1996A, 5.500% 07/01/08................................... Aa2 NR 87
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- OREGON -- (CONTINUED) $ 190 Oregon State, Housing and Community Services, Department Mortgage Revenue, (Single Family Mortgage Project) Series 1997H, 5.150% 07/01/09................................... Aa2 NR $ 202 95 Oregon State, Housing and Community Services, Department Mortgage Revenue, (Single Family Mortgage Project) Series 1998D, 4.600% 07/01/07................................... Aa2 NR 101 290 Oregon State, Housing and Community Services, Department Mortgage Revenue, (Single Family Mortgage Project) Series 2000H, (FHA/VA), 5.550% 07/01/21................................... Aa2 NR 303 100 Oregon, Health Sciences University Revenue, Series 1995B, (MBIA Insured), 5.000% 07/01/08................................... Aaa AAA 109 135 Oregon, State Department Administrative Services, Certificates of Participation, Series 1996B, (MBIA Insured), 5.100% 11/01/06................................... Aaa AAA 151 400 Oregon, State Department Administrative Services, Certificates of Participation, Series 2000, (AMBAC Insured), 5.500% 05/01/07................................... Aaa AAA 454 2,275 Port Morrow, Oregon, PCR Refunding, (Portland General Electric Company) Series 1998A, Mandatory Put 05/01/03 @ 100, 4.600% 05/01/33................................... Baa2 BBB 2,154
SEE NOTES TO FINANCIAL STATEMENTS. 42 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- OREGON -- (CONTINUED) $ 2,200 Port Oregon, Oregon, Airport Revenue, (Portland International Airport) Series 1996-11, (FGIC Insured), 5.200% 07/01/06................................... Aaa AAA $ 2,412 4,300 Portland, Oregon, Sewer Systems Revenue, Series 1994A, 5.450% 06/01/03................................... A1 A+ 4,414 ---------- 22,999 ---------- PENNSYLVANIA -- 3.7% 5,000 Allegheny County, Pennsylvania, Airport Revenue Refunding, (Pittsburgh International Airport Project) Series 1997A-1, AMT, (MBIA Insured), 5.750% 01/01/08................................... Aaa AAA 5,607 1,055 Central Dauphin, Pennsylvania, School District, GO, Series 1998, (FGIC Insured, State Aid Withholding), 5.000% 06/01/12................................... Aaa AAA 1,159 1,500 Central Dauphin, Pennsylvania, School District, GO, Series 1998AA, (MBIA Insured, State Aid Withholding), 5.000% 12/01/13................................... Aaa AAA 1,646 2,600 Delaware County, Pennsylvania Authority, Health Care Revenue, Series 1993B, Prerefunded 11/15/05 @ 100, 6.000% 11/15/07................................... Aaa NR 2,771 15,000 Delaware Valley, Pennsylvania, Regional Financing Authority, Local Government Revenue, Series 2002, 5.500% 07/01/12................................... Aa2 AA- 17,499
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $ 1,350 Ligonier Valley, Pennsylvania, School District, GO Refunding, Series 1998, (FSA Insured, State Aid Withholding), 5.000% 03/01/13................................... Aaa AAA $ 1,466 2,000 Pennsylvania State, GO Refunding, Series 1997, (AMBAC Insured), 5.125% 09/15/06................................... Aaa AAA 2,222 1,000 Pennsylvania State, GO, Series 1995, (AMBAC Insured), 5.000% 11/15/09................................... Aaa AAA 1,097 10,000 Pennsylvania State, GO, Series 2001, 5.125% 01/15/16................................... Aa2 AA 10,942 9,180 Pennsylvania, Housing Finance Agency, Single-Family Mortgage Revenue, Series 1997A-61, AMT, 5.450% 10/01/21................................... Aa2 AA+ 9,495 1,740 Pennsylvania, Saucon Valley School District, GO, Series 1998, (AMBAC Insured, State Aid Withholding), 5.150% 10/15/13................................... Aaa AAA 1,908 1,830 Pennsylvania, Saucon Valley School District, GO, Series 1998, (AMBAC Insured, State Aid Withholding), 5.200% 10/15/14................................... Aaa AAA 1,991 2,500 Philadelphia, Pennsylvania, Industrial Development Authority, IDR Refunding, (Ashland Oil Inc. Project) Series 1993, 5.700% 06/01/05................................... Baa2 NR 2,669
SEE NOTES TO FINANCIAL STATEMENTS. 43 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $ 780 Scranton, Pennsylvania, School District, GO, Prerefunded, Series 1998, (AMBAC Insured, State Aid Withholding), 4.750% 04/01/08................................... Aaa AAA $ 858 235 Scranton, Pennsylvania, School District, GO, Unrefunded Balance, Series 1998, (AMBAC Insured, State Aid Withholding), 4.750% 04/01/08................................... Aaa AAA 258 595 Scranton, Pennsylvania, School District, GO, Unrefunded Balance, Series 1998, (AMBAC Insured, State Aid Withholding), 5.200% 04/01/11................................... Aaa AAA 655 1,895 Scranton, Pennsylvania, School District, GO, Unrefunded Balance, Series 1998, (AMBAC Insured, State Aid Withholding), Prerefunded 04/01/08 @ 100, 5.200% 04/01/11................................... Aaa AAA 2,139 1,175 Tunkhannock, Pennsylvania, Area School District, GO, Series 1998, (AMBAC Insured, State Aid Withholding), 5.100% 07/15/12................................... Aaa NR 1,284 1,245 Tunkhannock, Pennsylvania, Area School District, GO, Series 1998, (AMBAC Insured, State Aid Withholding), 5.150% 07/15/14................................... Aaa NR 1,345
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $ 1,845 Tyrone, Pennsylvania, Area School District, GO, Series 1998, (MBIA State Aid Withholding), 5.000% 09/15/13................................... Aaa AAA $ 2,019 5,400 Westmoreland County, Pennsylvania, Industrial Development Authority Revenue, (Valley Landfill Project) Series 1993, Mandatory Put 05/01/09 @ 100, 5.100% 05/01/18................................... NR BBB 5,400 ---------- 74,430 ---------- PUERTO RICO -- 0.1% 1,000 Puerto Rico, Electric Power Authority, Power Revenue Refunding, Series 1995Z, 5.250% 07/01/07................................... Baa1 A- 1,103 ---------- RHODE ISLAND -- 0.0%+ 55 Rhode Island State, GO, Series 1992A, 5.400% 08/01/06................................... Aa3 AA- 56 ---------- SOUTH CAROLINA -- 1.5% 2,195 Cherokee County, South Carolina, School District Number 001, GO, Series 1997, (SCSDE), 5.500% 03/01/06................................... Aa1 AA+ 2,437 3,600 Cherokee County, South Carolina, School District Number 001, GO, Series 1997, (SCSDE), 5.000% 03/01/16................................... Aa1 AA+ 3,861 3,210 Greenville Hospital Systems of South Carolina, Hospital Facilities Revenue, Series 1996B, (GTY- AGMT), 5.500% 05/01/08................................... Aa3 AA 3,508 5,160 Piedmont Municipal Power Agency, South Carolina, Electric Revenue, Series 1996B, (FGIC Insured), 6.000% 01/01/07................................... Aaa AAA 5,842
SEE NOTES TO FINANCIAL STATEMENTS. 44 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $ 2,580 Piedmont Municipal Power Agency, South Carolina, Electric Revenue, Unrefunded Balance, Series 1991A, (FGIC Insured), 6.125% 01/01/03................................... Aaa AAA $ 2,607 3,665 Richland County, South Carolina, Solid Waste Disposal Facilities Revenue, (Union Camp Corporation Project) Series 1992A, AMT, 6.750% 05/01/22................................... Baa2 BBB 3,747 8,890 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24................................... Baa2 BBB 8,448 ---------- 30,450 ---------- SOUTH DAKOTA -- 0.8% 11,000 Education Loans Inc., South Dakota, Student Loan Revenue, Series 1998, AMT, (GTD STD LNS), 4.950% 06/01/10................................... Aaa NR 11,821 2,000 South Dakota State, Building Authority, Lease Revenue, Series 1996A, (AMBAC Insured), 5.750% 12/01/05................................... Aaa AAA 2,229 1,565 South Dakota State, Health and Educational Facilities Authority, Revenue, (Rapid City Regional Hospital Project), 7.750% 09/01/07................................... Aaa AAA 1,819 ---------- 15,869 ---------- TENNESSEE -- 2.8% 1,940 Fayetteville and Lincoln, Tennessee, Industrial Development Board Revenue, (Franke Inc. Project) Series 1997, (Corestate Bank N.A. LOC), 5.250% 06/01/04................................... Aa3 NR 2,034
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 5,000 Knox County, Tennessee, GO Refunding, Series 2001, 5.000% 04/01/09................................... Aa2 AA $ 5,574 5,000 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (University Health System Inc. Project) Series 1999, 5.625% 04/01/29................................... Baa1 NR 4,990 6,270 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22................................... Baa3 BBB- 6,290 1,000 Memphis, Tennessee, Electric System Revenue Refunding, Series 1992, 5.800% 01/01/03................................... Aa2 AA+ 1,011 5,680 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities and Project Revenue Refunding, (Federal Express Corporation Project) Series 1997, 5.350% 09/01/12................................... Baa2 BBB 6,092 5,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 2001, 5.000% 09/01/09................................... Baa2 BBB 5,287 1,925 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1992B, 5.625% 05/15/03................................... Aa3 AA 1,970
SEE NOTES TO FINANCIAL STATEMENTS. 45 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 1,000 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/08................................... Aaa AAA $ 1,174 6,450 Shelby County, Tennessee, GO Refunding, Series 1997B, 5.500% 08/01/08................................... Aa2 AA+ 7,378 8,000 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (St. Jude's Childrens Research Project) Series 1999, 5.375% 07/01/24................................... NR AA 8,372 1,190 Tennessee State, Housing Development Agency, Revenue, Series 1998, AMT, 4.950% 07/01/10................................... Aa2 AA 1,264 4,000 Tennessee, Gas Revenue, (Tennergy Corporation Project) Series 1999, (MBIA Insured), 5.000% 06/01/05................................... Aaa AAA 4,327 ---------- 55,763 ---------- TEXAS -- 12.7% 2,175 Aldine, Texas, Independent School District, GO Refunding, Series 1997, (PSF-GTD), 4.310%& 02/15/07.................................. Aaa AAA 1,923 210 Austin, Texas, Utilities System Revenue, Unrefunded Balance, Series 1992A, (MBIA Insured), 6.000% 11/15/02................................... Aaa AAA 211 1,025 Austin, Texas, Water and Sewer Revenue, Series 1997, (FSA Insured), 6.000% 11/15/02................................... Aaa AAA 1,031
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 2,585 Belton, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 5.250% 08/15/08................................... Aaa AAA $ 2,913 1,500 Birdville, Texas, Independent School District, GO Refunding, Series 1997B, (PSF-GTD Insured), 5.000% 02/15/07................................... Aaa AAA 1,653 975 Brazos, Texas, Higher Education Authority Inc., Revenue Refunding, Senior Lien, Series 1994A-2, AMT, (GTD STD LNS), 6.050% 06/01/03................................... Aaa NR 978 2,575 Carrollton, Texas, Farmers Branch Independent School District, GO, Series 1996, (PSF-GTD), Prerefunded 02/15/06 @ 100, 5.700% 02/15/17................................... Aaa AAA 2,877 1,455 Coppell, Texas, Waterworks and Sewer System Revenue, Series 2001, 5.000% 09/01/09................................... Aaa AAA 1,599 7,300 Dallas, Texas, Waterworks & Sewer Systems, Revenue Refunding, Series 2001 5.000% 10/01/16................................... Aa2 AA+ 7,844 1,485 Duncanville, Texas, Independent School District GO Refunding, Series 1993, (PSF-GTD Insured), 5.200% 02/15/09................................... Aaa AAA 1,665 1,750 El Paso, Texas, Airport Revenue, (El Paso International Airport Project) Series 1996, (FGIC Insured), 5.300% 08/15/06................................... Aaa AAA 1,790
SEE NOTES TO FINANCIAL STATEMENTS. 46 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 2,190 Fort Worth, Texas, Higher Education Financial Corporation, Higher Education Revenue, (Texas Christian University Project) Series 1997, 5.000% 03/15/17................................... Aa3 AA- $ 2,330 1,050 Galena Park, Texas, Independent School District, GO, Series 1997, (PSF-GTD), 5.000% 08/15/21................................... Aaa NR 1,076 3,000 Galveston, Texas, Special Contract Revenue Refunding, (Farmland Industries Inc. Project) Series 1998, 5.500% 05/01/15................................... B3 NR 2,126 3,120 Garland, Texas, Certificates of Obligation, GO, Series 2000, 5.500% 02/15/12................................... Aa2 AA 3,510 10,650 Guadalupe Blanco River Authority, Texas, Sewer and Solid Waste Disposal Facility, Revenue, (E.I. duPont de Nemours and Company Project) Series 1999, AMT, 5.500% 05/01/29................................... Aa3 AA- 11,095 1,000 Harris County, Texas, Certificates of Obligation GO, 6.000% 12/15/10................................... Aa1 AA+ 1,197 1,055 Harris County, Texas, Criminal Justice Center GO, 5.400% 10/01/10................................... Aa1 AA+ 1,169 2,730 Harris County, Texas, GO, Series 1996, 5.150% 10/01/07................................... Aa1 AA+ 2,999 1,000 Harris County, Texas, GO, Series 1996, 5.375% 10/01/09................................... Aa1 AA+ 1,109 10,990 Harris County, Texas, GO, Series 2001, 5.000% 10/01/12................................... Aa1 AA+ 12,298
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 2,350 Harris County, Texas, Health Facilities Development Authority, Hospital Revenue Refunding, (Texas Childrens Hospital Project) Series 1995, (MBIA Insured, Escrowed to Maturity), 6.000% 10/01/05................................... Aaa AAA $ 2,640 5,000 Harris County, Texas, Health Facilities Development Authority, Revenue, Series 1999A, (MBIA Insured), 5.375% 07/01/19................................... Aaa AAA 5,277 5,790 Harris County, Texas, Health Facility Development Corporation, Revenue, Series 1999A, (MBIA Insured), 5.625% 07/01/11................................... Aaa AAA 6,488 7,000 Houston, Texas, Airport System Revenue, Sub-Lien, Series 1998B, AMT, (FGIC Insured), 5.250% 07/01/12................................... Aaa AAA 7,561 6,755 Houston, Texas, Airport System Revenue, Sub-Lien, Series 2000A, AMT, (FSA Insured), 6.000% 07/01/09................................... Aaa AAA 7,773 5,000 Houston, Texas, Airport Systems Revenue, Sub-lien, Series 2002, (FSA Insured), 5.000% 07/01/27................................... Aaa AAA 5,139 7,320 Houston, Texas, GO, Series 2001A, (FSA Insured), 5.500% 03/01/10................................... Aaa AAA 8,387 13,625 Houston, Texas, Water and Sewer Systems Revenue Refunding, Series 2002B, (AMBAC Insured), 5.500% 12/01/06................................... Aaa AAA 15,358 1,510 Houston, Texas, Water and Sewer Systems Revenue, Unrefunded Balance, Series 1992, 6.000% 12/01/04................................... A2 A+ 1,550
SEE NOTES TO FINANCIAL STATEMENTS. 47 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 6,215 Houston, Texas, Water Systems Revenue, Series 1979, 6.400% 12/01/14................................... Aaa AAA $ 7,381 4,000 Jefferson County, Texas, Health Facilities Development Corporation Revenue, (Baptist Hospitals Project) Series 2001, (AMBAC Insured), 5.200% 08/15/21................................... Aaa AAA 4,177 1,680 Keller, Texas, Independent School District, GO, Series 1993, (PSF-GTD Insured) Prerefunded 2/15/06 @ 100, 5.600% 08/15/07................................... Aaa NR 1,872 1,000 Lewisville, Texas, Independent School District, GO, Series 1997, (PSF-GTD), 6.750% 08/15/08................................... Aaa NR 1,205 6,470 Lubbock, Texas, Health Facilities Development Revenue, (St. Joseph Health Systems Project) Series 1998, (FSA-CR Insured), 5.000% 07/01/06................................... Aaa AAA 7,048 15 Mesquite, Texas, Housing Finance Corporation, Single Family Mortgage Revenue, Series 1983, 9.750% 09/01/05................................... NR BBB 15 5 Mesquite, Texas, Housing Finance Corporation, Single Family Mortgage Revenue, Series 1983, 10.750% 09/01/14.................................. NR BBB 5 1,700 Midlothian, Texas, Independent School District, GO Refunding, Series 1995, (PSF-GTD Insured), 5.200% 02/15/13................................... Aaa AAA 1,838
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 5,210 North Central Texas, Health Facilities Development Corporation, Revenue Refunding, (Baylor Healthcare Systems Project) Series 1995, (AMBAC-TCRS Insured), 5.500% 05/15/13................................... Aaa AAA $ 5,678 5,000 North Central, Texas, Health Facilities Development Corporation, Health Facilities Revenue, (Presbyterian Healthcare Residential Project) Series 1996B, (MBIA Insured), 5.500% 06/01/16................................... Aaa AAA 5,876 1,245 Pasadena, Texas, Independent School District, GO, Series 1998, (PSF-GTD), 5.000% 02/15/11................................... Aaa NR 1,338 4,000 Plano, Texas, Independent School District, GO Refunding, Series 2001, (PSF-GTD Insured), 5.000% 02/15/09................................... Aaa AAA 4,439 6,000 Red River Authority, Texas, PCR Refunding, Series 1991, (AMBAC Insured), 5.200% 07/01/11................................... Aaa AAA 6,501 2,110 Richardson, Texas, GO Refunding, Series 1998, 5.250% 02/15/07................................... Aa1 AA+ 2,350 8,355 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 5.500% 10/01/11................................... Baa2 BBB- 8,898 5,000 San Antonio, Texas, Electric and Gas Revenue Refunding, Series 2002, 5.000% 02/01/10................................... Aa1 AA+ 5,567
SEE NOTES TO FINANCIAL STATEMENTS. 48 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 8,000 San Antonio, Texas, General Improvement District, GO Refunding, 5.000% 08/01/10................................... Aa2 AA+ $ 8,958 1,060 San Benito, Texas, Consolidated Independent School, GO Refunding, Series 1996, (PSF-GTD Insured), 5.000% 08/01/07................................... Aaa NR 1,154 4,805 Tarrant County, Texas, Health Facilities Development Corporation, Health Systems Revenue, (Texas Health Resources Systems Project) Series 1997A, (MBIA Insured), 5.750% 02/15/10................................... Aaa AAA 5,380 5,000 Tarrant County, Texas, Health Facilities Development Corporation, Health Systems Revenue, (Texas Health Resources Systems Project) Series 1997A, (MBIA Insured), 5.250% 02/15/17................................... Aaa AAA 5,304 3,200 Texas A&M University, Financing Systems Revenue, Series 1995, 5.950% 05/15/05................................... Aa1 AA+ 3,531 6,800 Texas State, GO Refunding, Texas Public Financing Authority, Series 1996B, 5.300% 10/01/07................................... Aa1 AA 7,509 5,000 Texas State, Turnpike Authority, Dallas North Tollway Revenue, (President George Bush Turnpike Project) Series 1995, (FGIC Insured), 5.000% 01/01/25................................... Aaa AAA 5,083 1,000 Texas State, Veterans Housing Assistance, GO, Series 1994B-4, AMT, 6.100% 12/01/06................................... Aa1 AA 1,040
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $10,910 Texas State, Water Development GO, Series 1997D, 5.000% 08/01/19................................... Aa1 AA $ 11,259 2,000 Texas, Municipal Power Agency, Revenue Refunding, Series 1994, (FGIC Insured), 5.000% 09/01/08................................... Aaa AAA 2,112 2,000 Texas, Municipal Power Agency, Revenue Refunding, Series 1994, (FGIC Insured), 5.000% 09/01/09................................... Aaa AAA 2,114 2,000 Texas, Southwest Higher Education Authority Inc., Higher Education Revenue Refunding, (Southern Methodist University Project) Series 1995, (FSA Insured), 5.125% 10/01/16................................... Aaa AAA 2,169 500 Texas, United Independent School District, GO, Series 1995, (PSF-GTD Insured), 5.500% 08/15/08................................... Aaa AAA 558 4,500 Travis County, Texas, Health Facilities Development Corporation, Revenue, (Ascension Health Credit Project) Series 1999A, (AMBAC Insured), 5.875% 11/15/24................................... Aaa AAA 4,947 4,000 Travis County, Texas, Housing Finance Authority, Multi-Family Housing Revenue, (Lakeview Apartments Project) Series 2001A, 6.250% 07/01/22................................... A3 NR 4,090 1,900 West University Place, Texas, GO Refunding, Series 1998, (MBIA Insured), 5.100% 02/01/12................................... Aaa AAA 2,077 ---------- 255,039 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 49 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- UTAH -- 1.9% $ 2,145 Cache County, Utah, School District, (Utah School Board Guaranty Program) GO Refunding, Series 1997, (SCH BD GTY), 5.500% 06/15/07................................... NR AAA $ 2,430 1,000 Iron County, Utah, School District, GO, Series 1994, (MBIA Insured), 6.000% 01/15/06................................... Aaa AAA 1,085 11,100 Tooele County, Utah, Hazardous Waste Treatment Revenue, (Union Pacific Project) Series 1992, AMT, 5.700% 11/01/26................................... Baa3 BBB 11,157 10,000 Utah State, GO Refunding, Series 2002B, 5.375% 07/01/11................................... Aaa AAA 11,591 355 Utah State, Housing Finance Agency, Single Family Mortgage Revenue, Series 1996, (FHA/VA Mortgages), 5.750% 07/01/07................................... Aaa AA 388 2,500 Utah State, Student Loan Revenue, Series 1995N, AMT, (AMBAC Insured, GTD STD LNS), 5.900% 11/01/07................................... Aaa AAA 2,732 5,000 Utah, Intermountain Power Agency, Power Supply Revenue Refunding, Series 1993C, 5.000% 07/01/05................................... A1 A+ 5,203 630 Utah, Intermountain Power Agency, Power Supply Revenue, Series 1993A, 5.000% 07/01/04................................... A1 A+ 658 370 Utah, Intermountain Power Agency, Power Supply Revenue, Series 1993A, 5.000% 07/01/04................................... A1 A+ 386
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- UTAH -- (CONTINUED) $ 2,500 Utah, Intermountain Power Agency, Power Supply Revenue, Series 1993B, 5.375% 07/01/08................................... A1 A+ $ 2,590 ---------- 38,220 ---------- VERMONT -- 0.1% 1,000 Vermont, Municipal Bond Bank, Revenue, Series 1996-1, (AMBAC Insured, GO of Bond Bank), 5.700% 12/01/10................................... Aaa AAA 1,142 ---------- VIRGINIA -- 2.0% 6,170 Chesapeake, Virginia, GO Refunding, Series 1993, 5.000% 12/01/03................................... Aa2 AA 6,420 975 Chesterfield County, Virginia, Improvement GO Refunding, Series 1991, 6.250% 07/15/05................................... Aaa AAA 1,010 2,500 Newport News, Virginia, GO Refunding, Series 1993B, (State Aid Withholding), 5.400% 11/01/06................................... Aa2 AA 2,654 5,240 Norfolk, Virginia, GO Refunding, Series 1994, (State Aid Withholding), 5.200% 06/01/07................................... A1 AA 5,593 3,000 Virginia Beach, Virginia, GO Refunding, Series 1993, 5.100% 07/15/05................................... Aa1 AA+ 3,268 1,000 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1996C-2, 5.950% 07/01/09................................... Aa1 AA+ 1,088 1,000 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1996C-2, 6.000% 07/01/10................................... Aa1 AA+ 1,084
SEE NOTES TO FINANCIAL STATEMENTS. 50 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1996C-2, 6.050% 07/01/11................................... Aa1 AA+ $ 1,082 1,500 Virginia State, Public Facilities GO, Series 1993A, 5.400% 06/01/05................................... Aaa AAA 1,569 7,000 Virginia State, Public School Authority, Revenue Refunding, Series 1993B, (State Aid Withholding), 5.250% 01/01/07................................... Aa1 AA 7,450 7,300 Virginia, Pocahontas Parkway Association Toll Road, Revenue, Series 1998B, 8.620%& 08/15/15.................................. Baa3 BBB- 2,463 9,100 Virginia, Pocahontas Parkway Association Toll Road, Revenue, Series 1998B, 8.620%& 08/15/19.................................. Baa3 BBB- 2,190 5,000 Virginia, Pocahontas Parkway Association, Toll Road Revenue, Series 1998A, 5.000% 08/15/10................................... Baa3 BBB- 4,261 ---------- 40,132 ---------- WASHINGTON -- 6.7% 1,830 Chelan County, Washington, Public Utilities District No. 001, Constructive Systems Revenue, Series 1988A, 5.900% 07/01/13................................... Aa2 AA 1,916 2,655 Chelan County, Washington, Public Utilities District No. 1, Hydro Conservative Systems Revenue, Series 1997A, AMT, Mandatory Put 07/01/07 @ 100, 4.850% 07/01/32................................... Aa2 AA 2,824 1,755 Clark County, Washington, School District Number 037 Vancouver, GO Refunding, 5.400% 12/01/05................................... Aa3 NR 1,866
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,255 Clark County, Washington, School District Number 037 Vancouver, GO Refunding, 5.500% 12/01/07................................... Aa3 NR $ 1,335 1,805 Clark County, Washington, School District Number 117 Camas, GO Refunding, Series 1998, (AMBAC Insured), 5.000% 12/01/12................................... Aaa NR 2,032 2,165 Conservation and Renewable Energy Systems, Washington, Conservation Project Revenue, Series 1994, 6.200% 10/01/08................................... Aa1 AA- 2,394 1,140 Jefferson County, Washington, School District No. 49, GO, (FSA Insured), 5.000% 12/01/07................................... Aaa NR 1,271 1,000 King County, Washington, GO Refunding, Series 1998B, 4.750% 01/01/17................................... Aa1 AA+ 1,035 3,000 King County, Washington, GO, Series 1997D, 5.550% 12/01/08................................... Aa1 AA+ 3,433 1,000 King County, Washington, GO, Series 1997D, 5.750% 12/01/11................................... Aa1 AA+ 1,160 1,500 King County, Washington, School District No. 210, GO, (FGIC Insured), 5.400% 12/01/04................................... Aaa AAA 1,616 1,310 King County, Washington, School District Number 415, GO, (FSA Insured), 5.200% 06/01/05................................... Aaa AAA 1,422 1,000 Kitsap County, Washington, School District No. 400 North Kitsap, GO, Series 1993, (FGIC Insured), Prerefunded 06/01/05 @ 100, 5.250% 06/01/06................................... Aaa AAA 1,090
SEE NOTES TO FINANCIAL STATEMENTS. 51 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,000 Kitsap County, Washington, Sewer Revenue, Series 1996, (MBIA Insured), Crossover Refunded 07/01/06 @ 100, 5.600% 07/01/08................................... Aaa AAA $ 1,116 1,000 Lewis County, Washington, Public Utilities District No. 001, Revenue, Series 1993, 5.500% 10/01/09................................... Aa1 AA- 1,041 2,500 Northwest, Washington, Revenue, (Energy Wind Project), Series 2001B, 6.000% 07/01/23................................... Baa1 NR 2,547 5,000 Port Seattle, Washington, Passenger Facility Charge Revenue, Series 1998, AMT, (AMBAC Insured), 5.250% 12/01/09................................... Aaa AAA 5,519 3,205 Port Seattle, Washington, Revenue, Series 1996-B, AMT, (FGIC Insured), 5.100% 09/01/05................................... Aaa AAA 3,467 3,780 Port Seattle, Washington, Revenue, Series 1996-B, AMT, (FGIC Insured), 6.000% 09/01/08................................... Aaa AAA 4,336 1,000 Seattle, Washington, Municipal Light and Power Revenue Refunding, Series 1993, 5.000% 05/01/04................................... Aa3 A+ 1,049 10,365 Seattle, Washington, Municipal Light and Power Revenue Refunding, Series 2001 5.250% 03/01/11................................... Aaa AAA 11,750 1,400 Seattle, Washington, Water Systems Revenue Refunding, Series 1993, 5.500% 06/01/18................................... Aa2 AA 1,455
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,500 Skagit County, Washington, Conservative School District No. 320, GO, Series 1994, Prerefunded 12/01/04 @ 100, 6.850% 12/01/10................................... Aaa AAA $ 1,668 530 Snohomish County, Washington, School District Number 002 Everett, GO, Series 1993, (MBIA Insured), Prerefunded 12/01/03 @ 102, 6.000% 12/01/06................................... Aaa AAA 568 935 Snohomish County, Washington, School District Number 002 Everett, GO, Series 1993, Unrefunded Balance, (MBIA Insured), 6.000% 12/01/06................................... Aaa AAA 1,001 445 Snohomish County, Washington, School District Number 002 Everett, GO, Series 1993, Unrefunded Balance, (MBIA Insured), 5.850% 12/01/05................................... Aaa AAA 476 555 Snohomish County, Washington, School District Number 002 Everett, GO, Series 1993, (MBIA Insured), Prerefunded 12/01/03 @ 102, 5.850% 12/01/05................................... Aaa AAA 594 1,000 Spokane County, Washington, School District Number 081 Spokane, GO Refunding, Series 1992, 6.000% 12/01/03................................... Aa2 AA 1,051 1,975 Spokane County, Washington, School District Number 354 Mead, GO, Series 1998, (FGIC Insured), 5.000% 12/01/09................................... Aaa AAA 2,212
SEE NOTES TO FINANCIAL STATEMENTS. 52 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 7,800 Spokane County, Washington, School District Number 354 Mead, GO, Series 1998, (FGIC Insured), 5.500% 12/01/10................................... Aaa AAA $ 9,026 1,600 Spokane County, Washington, School District Number 354 Mead, GO, Series 1998, (FGIC Insured), 5.250% 12/01/11................................... Aaa AAA 1,831 1,500 Tacoma, Washington, Electric Systems Revenue Refunding, Series 1994, (FGIC Insured), 5.800% 01/01/04................................... Aaa AAA 1,577 2,195 Tacoma, Washington, Electric Systems Revenue, Series 1992, (AMBAC Insured), 5.900% 01/01/05................................... Aaa AAA 2,247 305 Tacoma, Washington, Electric Systems Revenue, Series 1994, (FGIC Insured), 6.000% 01/01/06................................... Aaa AAA 327 695 Tacoma, Washington, Electric Systems Revenue, Series 1994, (FGIC Insured), Prerefunded 01/01/04 @ 102, 6.000% 01/01/06................................... Aaa AAA 747 1,000 Vancouver, Washington, Water and Sewer Revenue, Series 1995, (FGIC Insured), Prerefunded 06/01/05 @ 100, 5.850% 06/01/11................................... Aaa AAA 1,106 2,000 Vancouver, Washington, Water and Sewer Revenue, Series 1997, (MBIA Insured), 5.000% 06/01/05................................... Aaa AAA 2,161 10,000 Washington State, GO Refunding, Series 1993R-93B, 5.125% 10/01/04................................... Aa1 AA+ 10,669 6,645 Washington State, GO Refunding, Series 1997R-98A, 5.000% 07/01/15................................... Aa1 AA+ 7,126
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 3,260 Washington State, GO, Series 1997E, 5.000% 07/01/22................................... Aa1 AA+ $ 3,329 3,330 Washington State, GO, Series 1998C, 5.500% 07/01/09................................... Aa1 AA+ 3,817 5,150 Washington State, Public Power Supply Systems Revenue Refunding, (Nuclear Project Number 1) Series 1996A, (AMBAC Insured), 6.000% 07/01/05................................... Aaa AAA 5,711 1,150 Washington State, Public Power Supply Systems Revenue Refunding, Series 1993A, 5.800% 07/01/07................................... Aa1 AA- 1,302 3,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1993B, (FSA Insured), 5.400% 07/01/05................................... Aaa AAA 3,279 8,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1996A, (AMBAC Insured), 5.500% 07/01/04................................... Aaa AAA 8,523 2,000 Washington State, Public Power Suppy Systems Revenue Refunding, (Nuclear Number 1 Project) Series 1993A, 5.250% 07/01/03................................... Aaa AAA 2,056 2,000 Washington State, Public Power Suppy Systems Revenue Refunding, (Nuclear Number 1 Project) Series 1996A, (MBIA Insured), 6.000% 07/01/06................................... Aaa AAA 2,265 325 Washington State, Public Power Suppy Systems Revenue Refunding, (Nuclear Number 3 Project) Series 1990B, (FSA-CR Insured), 7.375% 07/01/04................................... Aaa AAA 332
SEE NOTES TO FINANCIAL STATEMENTS. 53 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,500 Washington State, Public Power Suppy Systems Revenue Refunding, (Nuclear Number 3 Project) Series 1997A, 5.000% 07/01/06................................... Aaa AAA $ 1,646 1,085 Whatcom County, Washington, School District Number 502 Ferndale, GO Refunding, Series 1998B, (FGIC Insured), 5.000% 12/01/05................................... Aaa NR 1,186 ---------- 133,507 ---------- WEST VIRGINIA -- 0.7% 3,980 West Virginia State, Hospital Finance Authority, Hospital Revenue Refunding, (Charleston Area Medical Center Project) Series 1993A, 6.500% 09/01/23................................... A2 NR 4,949 1,000 West Virginia State, Hospital Finance Authority, Hospital Revenue Refunding, (Charleston Area Medical Center Project) Series 1995A, (MBIA Insured), 5.750% 09/01/13................................... Aaa AAA 1,116 6,500 West Virginia State, Hospital Financing Authority Revenue, (Charleston Area Medical Center Project) Series 2000A, 6.750% 09/01/22................................... A2 NR 7,262 ---------- 13,327 ---------- WISCONSIN -- 2.5% 2,500 Milwaukee County, Wisconsin, GO, Series 2001A, 5.000% 10/01/12................................... Aa3 AA 2,796 2,500 Milwaukee County, Wisconsin, GO, Series 2001A, 5.000% 10/01/13................................... Aa3 AA 2,769
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WISCONSIN -- (CONTINUED) $ 5,790 Milwaukee, Wisconsin, Metropolitan Sewer District, GO Refunding, Series 1997A, 5.125% 10/01/16................................... Aa1 AA+ $ 6,283 1,815 Portage, Wisconsin, Community School District, GO Refunding, Series 1996, (AMBAC Insured), 5.050% 04/01/08................................... Aaa AAA 1,947 1,000 Portage, Wisconsin, Community School District, GO Refunding, Series 1996, (AMBAC Insured), 5.250% 04/01/10................................... Aaa AAA 1,075 1,000 Winneconne, Wisconsin, Community School District, GO Refunding, Series 1998, (FSA Insured), 4.900% 04/01/10................................... Aaa NR 1,083 1,050 Winneconne, Wisconsin, Community School District, GO Refunding, Series 1998, (FSA Insured), 5.000% 04/01/11................................... Aaa NR 1,145 1,100 Winneconne, Wisconsin, Community School District, GO Refunding, Series 1998, (FSA Insured), 5.000% 04/01/12................................... Aaa NR 1,199 235 Wisconsin State, GO Refunding, Series 1995-2, 5.200% 11/01/07................................... Aa3 AA- 257 4,745 Wisconsin State, GO, Series 1996A, 5.000% 05/01/16................................... Aa3 AA- 5,069 4,525 Wisconsin State, GO, Series 2002A, 5.000% 05/01/07................................... Aa3 AA- 5,007 8,000 Wisconsin State, Petroleum Revenue, Series 2000A, 5.750% 07/01/08................................... Aa3 AA- 8,721
SEE NOTES TO FINANCIAL STATEMENTS. 54 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WISCONSIN -- (CONTINUED) $10,000 Wisconsin, Badger TOB Asset Securitization Corporation, Asset Backed Revenue, Series 2002, 6.000% 06/01/17................................... A1 A $ 10,175 2,735 Wisconsin, Housing and Economic Development Authority, Revenue, Series 1997G, 5.350% 03/01/12................................... Aa2 AA 2,904 ---------- 50,430 ---------- WYOMING -- 0.8% 3,700 Natrona County, Wyoming, Hospital Revenue Refunding, (Wyoming Medical Center Project) Series 1998, (AMBAC Insured), 5.250% 09/15/06................................... Aaa AAA 4,085 1,000 Wyoming, Building Corporation Revenue, Series 1998, 5.000% 10/01/03................................... Aaa AAA 1,034 1,275 Wyoming, Building Corporation Revenue, Series 1998, (AMBAC Insured), 5.200% 10/01/11................................... Aaa AAA 1,426 2,935 Wyoming, Community Development Authority, Mutli- Family Mortgage Revenue, (Aspen Court Apartments Project) Series 1999A, (Bank One Arizona N.A. LOC), Mandatory Put 12/01/08 @ 100, 4.750% 12/01/30................................... NR A+ 2,993 1,000 Wyoming, Community Development Authority, Single Family Mortgage Revenue, Series 1991A, (FHA Mortgages), 7.100% 06/01/05................................... Aa2 AA 1,008
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - -------------------------------------------------------------------------------------------------- WYOMING -- (CONTINUED) $ 1,000 Wyoming, Community Development Authority, Single Family Mortgage Revenue, Series 1991A, (FHA Mortgages), 7.200% 06/01/06................................... Aa2 AA $ 1,007 5,000 Wyoming, Student Loan Corporation Student Loan Revenue Revenue, Series 1997B, (GTD STD LNS), 5.000% 12/01/06................................... NR AA 5,394 ---------- 16,947 ---------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $1,857,747)..................................................... 1,974,489 ----------
SHARES (000) - --------- INVESTMENT COMPANIES -- 0.8% (Cost $15,675) 15,675 Nations Tax-Exempt Reserves, Trust Class#................ 15,675 ---------- TOTAL INVESTMENTS (Cost $1,873,422*).............................. 99.8% 1,990,164 ---------- OTHER ASSETS AND LIABILITIES (NET)................ 0.2% Receivable for Fund shares sold.......................... $ 4,150 Dividends receivable..................................... 35 Interest receivable...................................... 28,271 Payable for Fund shares redeemed......................... (11,002) Investment advisory fee payable.......................... (416) Administration fee payable............................... (327) Shareholder servicing and distribution fees payable...... (16) Due to custodian......................................... (10) Distributions payable.................................... (6,741) Payable for investment securities purchased.............. (8,633) Accrued Trustees' fees and expenses...................... (52) Accrued expenses and other liabilities................... (325) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................................... 4,934 ---------- NET ASSETS........................................ 100.0% $1,995,098 ========== NET ASSETS CONSIST OF: Undistributed net investment income...................... $ 2,396 Accumulated net realized gain on investments sold........ 3,314 Net unrealized appreciation of investments............... 116,742 Paid-in capital.......................................... 1,872,646 ---------- NET ASSETS............................................... $1,995,098 ==========
SEE NOTES TO FINANCIAL STATEMENTS. 55 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - ---------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($1,941,657,108 / 185,557,100 shares outstanding)...... $10.46 ========== INVESTOR A SHARES: Net asset value and redemption price per share ($43,134,886 / 4,123,319 shares outstanding)........... $10.46 ========== Maximum sales charge..................................... 3.25% Maximum offering price per share......................... $10.81 INVESTOR B SHARES: Net asset value and offering price per share** ($5,439,161 / 519,966 shares outstanding).............. $10.46 ========== INVESTOR C SHARES: Net asset value and offering price per share** ($4,866,374 / 465,155 shares outstanding).............. $10.46 ==========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. +Amount represents less than 0.01% #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 11.25% MBIA 12.79%
Nations Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Transportation Revenue 10.22%
SEE NOTES TO FINANCIAL STATEMENTS. 56 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 98.4% ALABAMA -- 3.3% $ 3,000 Butler County, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (James River Corporation of Virginia Project) Series 1994, AMT, 8.000% 09/01/28................................... NR BBB- $ 3,052 1,100 Huntsville, Alabama, GO, Series 1995A, 5.750% 02/01/14................................... Aa2 AA 1,197 8,500 Huntsville, Alabama, Health Care Authority, Revenue, Series 2001A, 5.750% 06/01/31................................... A2 NR 8,773 3,600 Jefferson County, Alabama, Sewer Revenue Refunding, Series 1997A, (FGIC Insured), 5.625% 02/01/18................................... Aaa AAA 3,957 2,000 Jefferson County, Alabama, Sewer Revenue Refunding, Series 1997A, (FGIC Insured), 5.625% 02/01/22................................... Aaa AAA 2,123 1,000 Mcintosh, Alabama, Industrial Development Board, Environmental Improvement Revenue, Series 1998C, 5.375% 06/01/28................................... A2 A 1,015 9,750 Phoenix County, Alabama, Industrial Development Board, Environmental Import Revenue Refunding, (Mead Coated Board Project) Series 1998B, (GTY-AGMT), 5.250% 04/01/28................................... Baa2 BBB 8,825 -------- 28,942 -------- ALASKA -- 2.6% 2,500 Alaska, Student Loan Corporation, Student Loan Revenue, Series 1999A, AMT, (AMBAC Insured), 4.900% 07/01/08................................... Aaa AAA 2,696 1,000 Anchorage, Alaska, Electric Utilities Revenue Refunding, Senior Lien, Series 1993, (MBIA Insured), 8.000% 12/01/09................................... Aaa AAA 1,308
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- ALASKA -- (CONTINUED) $ 7,000 Anchorage, Alaska, Electric Utilities Revenue, Senior Lien, Series 1996B, (MBIA Insured), 5.500% 02/01/26................................... Aaa AAA $ 7,375 1,000 North Slope Borough, Alaska, Capital Appreciation GO, Series 1995A, (MBIA Insured), 2.490%& 06/30/06.................................. Aaa AAA 911 15,000 North Slope Borough, Alaska, Capital Appreciation GO, Series 2000B, (MBIA Insured), 3.710%& 06/30/11.................................. Aaa AAA 10,874 -------- 23,164 -------- ARIZONA -- 1.0% 1,000 Maricopa County, Arizona, Unified School District Number 48, GO Refunding, Series 1991B, 6.300% 07/01/04................................... Aa2 AA 1,081 1,300 Maricopa County, Arizona, Unified School District Number 48, GO Refunding, Series 1993B, 4.600% 07/01/11................................... Aa2 AA 1,341 3,000 Maricopa County, Arizona, Unified School District Number 48, GO, Series 1995, 5.000% 07/01/14................................... Aa2 AA 3,208 5,000 Tucson and Pima County, Arizona, Industrial Development Authority, Single-Family Mortgage Revenue, Series 1983A, 4.050%& 12/01/14.................................. Aaa AAA 3,069 -------- 8,699 -------- ARKANSAS -- 1.1% 1,300 Arkansas State, Development Finance Authority, Revolving Loan Fund, Wastewater Systems Revenue, Series 1996A, Prerefunded 06/01/06 @ 101, 5.700% 12/01/12................................... NR AA 1,477 3,425 Blytheville, Arkansas, Solid Waste Recycling and Sewer Treatment Revenue, (Nucor Corporation Project) Series 1993, AMT, 6.375% 01/01/23................................... A1 A+ 3,509
SEE NOTES TO FINANCIAL STATEMENTS. 57 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- ARKANSAS -- (CONTINUED) $ 5,100 Crossett, Arkansas, PCR, (Georgia Pacific Corporation Project) Series 1984, 4.875% 10/01/07................................... Ba1 NR $ 4,728 -------- 9,714 -------- CALIFORNIA -- 2.8% 5,000 ABAG Finance Authority for Non-Profit Corporations, California, Multi-Family Revenue Refunding, Series 2000A, AMT, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.400% 08/15/30................................... Baa3 BBB- 5,418 2,000 ABAG Finance Authority for Non-Profit Corporations, California, Multi-Family Revenue Refunding, Series 2000B, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.250% 08/15/30................................... Baa3 BBB- 2,173 1,000 California State, GO, Series 1983, 9.000% 10/01/03................................... A1 AA- 1,073 1,000 California State, GO, Series 1983, 9.000% 04/01/05................................... NR AA- 1,170 1,000 California State, GO, Series 1989, 7.200% 04/01/05................................... A1 A+ 1,128 1,600 California State, GO, Series 1989, 7.100% 03/01/07................................... A1 A+ 1,897 4,000 California State, GO, Series 1990, 7.000% 08/01/04................................... A1 A+ 4,381 3,300 California State, GO, Series 1990, 7.000% 08/01/05................................... A1 A+ 3,756 2,500 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding, (AMBAC Insured), 6.750% 07/01/11................................... Aaa AAA 3,219 -------- 24,215 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- COLORADO -- 0.5% $ 1,500 Arapahoe County, Colorado, Capital Improvement Transportation Federal Highway Revenue, Series 1986E-470, Prerefunded 08/31/05 @ 103, 6.900% 08/31/15................................... Aaa AAA $ 1,761 2,500 Douglas County, Colorado, Sales and Use Tax Revenue, Series 1996, (MBIA Insured), 5.500% 10/15/11................................... Aaa AAA 2,780 -------- 4,541 -------- CONNECTICUT -- 0.6% 5,000 Connecticut State, Health and Educational Facilities Authority, Revenue, (Eastern Connecticut Health Network Project) Series 2000A, 6.000% 07/01/25................................... NR AA 5,637 -------- DISTRICT OF COLUMBIA -- 3.5% 9,000 District of Columbia, Hospital Revenue Refunding, (Medlantic Healthcare Group Project) Series 1997A, (MBIA Insured), Prerefunded 08/15/07 @ 102, 5.375% 08/15/15................................... Aaa AAA 10,177 3,985 District of Columbia, Revenue Refunding, (Howard University Project) Series 1996, (MBIA Insured), 5.750% 10/01/17................................... Aaa AAA 4,473 4,200 District of Columbia, Revenue, (Association of American Medical Colleges Project) Series 1997A, (AMBAC Insured), 5.375% 02/15/17................................... Aaa AAA 4,685 10,400 District of Columbia, Revenue, (Carnegie Endowment Project) Series 1996, 5.750% 11/15/26................................... Aa3 NR 11,019 -------- 30,354 --------
SEE NOTES TO FINANCIAL STATEMENTS. 58 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- FLORIDA -- 2.2% $ 1,735 Florida State, Board of Education, Capital Outlay GO, Unrefunded Balance, Series 1985, 9.125% 06/01/14................................... Aa2 AA+ $ 2,496 10,000 Jea, Florida, St. John's River Power Parkway Systems Revenue Refunding, Series 2002, 5.250% 10/01/13................................... Aa2 AA 11,392 5,000 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24................................... Aaa AAA 5,033 -------- 18,921 -------- GEORGIA -- 7.9% 5,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 2000A, (FGIC Insured), 5.600% 01/01/30................................... Aaa AAA 5,408 5,000 Atlanta, Georgia, Water and Wastewater Revenue, Series 2001A, (MBIA Insured), 5.000% 11/01/39................................... Aaa AAA 5,158 3,000 Chatham County, Georgia, Hospital Medical Authority, Revenue, (Memorial Health Medical Center Project) Series 2001A, 6.125% 01/01/24................................... A3 A- 3,211 1,000 DeKalb County, Georgia, School District GO, Series 1993A, 6.250% 07/01/09................................... Aa2 AA 1,198 1,500 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18................................... Ba1 BBB- 1,223 4,750 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Josephs Hospital Project) Series 1994, 5.500% 10/01/18................................... Aaa NR 4,970
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 1,435 Gainesville & Hall County, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Northeast Georgia Health System Income Project) Series 2001, 5.000% 05/15/11................................... NR A- $ 1,528 1,610 Gainesville & Hall County, Georgia, Hospital Authority, Revenue Anticipation Ceritificates, (Northeast Georgia Health System Income Project) Series 2001, 5.000% 05/15/12................................... NR A- 1,701 1,560 Gainesville & Hall County, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Northeast Georgia Health System Income Project) Series 2001, 5.000% 05/15/13................................... NR A- 1,627 1,600 Georgia State, GO, Series 1991C, 6.500% 04/01/04................................... Aaa AAA 1,716 3,000 Georgia State, GO, Series 1992B, 6.250% 03/01/11................................... Aaa AAA 3,653 1,700 Georgia State, GO, Series 1993F, 6.500% 12/01/05................................... Aaa AAA 1,940 3,000 Georgia State, GO, Series 1996B, 6.250% 04/01/07................................... Aaa AAA 3,486 6,445 Georgia State, GO, Series 1998B, 5.500% 07/01/10................................... Aaa AAA 7,494 9,605 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1999B-2, AMT, 6.100% 06/01/31................................... Aa2 AAA 10,157 1,945 Henry County, Georgia, School District GO, Series 1994, (MBIA Insured), Prerefunded 08/01/04 @ 102, 6.000% 08/01/14................................... Aaa AAA 2,139 1,000 Metropolitan Atlanta, Rapid Transit Authority of Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 6.000% 07/01/04................................... Aaa AAA 1,075
SEE NOTES TO FINANCIAL STATEMENTS. 59 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 1,000 Metropolitan Atlanta, Rapid Transit Authority of Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 6.100% 07/01/05................................... Aaa AAA $ 1,113 2,000 Metropolitan Atlanta, Rapid Transit Authority of Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 6.250% 07/01/20................................... Aaa AAA 2,515 2,000 Monroe County, Georgia Development Authority, PCR, (Oglethorpe Power Corporation Project) Series 1992A, 6.800% 01/01/11................................... A3 A 2,415 3,000 Savannah, Georgia, Hospital Authority, Hospital Improvement Revenue Refunding, (Candler Hospital Project) Series 1992, Prerefunded 01/01/03 @ 102, 7.000% 01/01/23................................... Ba1 BB 3,101 2,690 Union County, Georgia, Housing Authority, Multi-Family Housing Revenue Refunding, (Hidden Lake Apartments Ltd. Project) Series 1994A, (FHA/FNMA COLL), 7.125% 12/01/25................................... Aaa NR 2,828 -------- 69,656 -------- HAWAII -- 0.2% 1,180 Honolulu City and County, Hawaii, GO Refunding, Series 1993B, 8.000% 10/01/10................................... Aa3 AA- 1,558 -------- ILLINOIS -- 12.4% 1,600 Chicago, Illinois, GO, Series 1993, (FGIC Insured), 5.375% 01/01/13................................... Aaa AAA 1,697 3,000 Chicago, Illinois, Metropolitan Water Reclamation District GO, Series 1993, 5.500% 12/01/12................................... Aaa AA+ 3,555 3,385 Chicago, Illinois, Metropolitan Water Reclamation District, Capital Improvement GO, Series 1991, 6.900% 01/01/07................................... Aaa AA+ 3,983
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 3,000 Chicago, Illinois, O'Hare International Airport, Revenue Refunding, Second Lien, Series 1993C, (MBIA Insured), 5.000% 01/01/18................................... Aaa AAA $ 3,132 2,640 Chicago, Illinois, O'Hare International Airport, Revenue Refunding, Senior Lien, Series 1993A, 5.000% 01/01/16................................... A1 A+ 2,656 13,000 Chicago, Illinois, O'Hare International Airport, Revenue, Refunding Second Lien, Series 1999, AMT, (AMBAC Insured), 5.500% 01/01/10................................... Aaa AAA 14,573 1,500 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue Refunding, (American Airlines Inc. Project) Series 1994, (GTY-AGMT), 8.200% 12/01/24................................... B2 BB- 675 2,000 Chicago, Illinois, Park District, GO, Series 1996, (MBIA Insured), 5.500% 01/01/16................................... Aaa AAA 2,213 4,800 Chicago, Illinois, Water Revenue, Senior Lien, Series 2000, (AMBAC Insured), 5.750% 11/01/10................................... Aaa AAA 5,640 2,800 Cook County, Illinois, Forest Preserve District, Zoo GO, Series 1996, (MBIA Insured), Prerefunded 11/01/06 @ 101, 5.800% 11/01/16................................... Aaa AAA 3,230 4,500 Cook County, Illinois, GO, Series 1996, (FGIC Insured), Prerefunded 11/15/06 @ 101, 5.900% 11/15/16................................... Aaa AAA 5,214 5,000 Cook County, Illinois, GO, Series 1997A, (MBIA Insured), 5.625% 11/15/22................................... Aaa AAA 5,465 2,565 Du Page County, Illinois, GO, Series 1993, 5.600% 01/01/21................................... Aaa AAA 2,984
SEE NOTES TO FINANCIAL STATEMENTS. 60 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,700 Glendale Heights, Illinois, Hospital Revenue Refunding, (Glendale Heights Project) Series 1985B, 7.100% 12/01/15................................... Aaa AAA $ 2,116 3,700 Illinois State, GO, Series 1993, 5.500% 08/01/18................................... Aa2 AA 3,896 2,400 Illinois State, GO, Series 1994, 5.800% 04/01/19................................... Aa2 AA 2,598 4,785 Illinois State, GO, Series 1995, (MBIA Insured), Prerefunded 02/01/05 @ 102, 6.000% 02/01/16................................... Aaa NR 5,341 3,000 Illinois State, Metropolitan Pier and Exposition Authority, Dedicated Tax Revenue Refunding, (McCormick Place Expansion Project) Series 2002B, (MBIA Insured), 5.000% 06/15/21................................... Aaa AAA 3,152 1,500 Illinois State, Sales Tax Revenue, Series 1994V, Prerefunded 06/15/05 @ 102, 6.375% 06/15/17................................... Aa2 AAA 1,710 2,200 Illinois State, Sales Tax Revenue, Series 1994V, Prerefunded 06/15/05 @ 102, 6.375% 06/15/20................................... Aa2 AAA 2,509 1,000 Illinois, Development Finance Authority, PCR Refunding, (Commonwealth Edison Company Project) Series 1994D, (AMBAC Insured), 6.750% 03/01/15................................... Aaa AAA 1,129 1,800 Illinois, Educational Facilities Authority, Revenue, (Northwestern University Project) Series 1993, 5.375% 12/01/21................................... Aa1 AA+ 1,857 6,500 Illinois, Educational Facilities Authority, Student Housing Advancement Funding Revenue, (University Center Project) Series 2002, 6.625% 05/01/17................................... Baa2 NR 7,093
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- ILLINOIS -- (CONTINUED) $11,640 Illinois, Metropolitan Pier & Exposition Authority, Dedicated State Tax Revenue, Unrefunded Balance, Series 1993A, (FGIC Insured), 3.940%& 06/15/13.................................. Aaa AAA $ 7,665 1,535 McHenry County, Illinois, Community Unit School District Number 200 GO, Series 1996A, (FSA Insured), 5.750% 01/01/13................................... Aaa AAA 1,729 8,750 Metropolitan Pier & Exposition Authority, Illinois, Dedicated State Tax Revenue, Series 1993, (FGIC Insured), 3.990%& 06/15/13.................................. Aaa AAA 5,732 2,680 Southern Illinois, Capital Appreciation University Revenue, (Housing and Auxiliary Facilities Systems Program) Series 1997, (MBIA Insured), 2.480%& 04/01/06.................................. Aaa AAA 2,458 5,000 Will County, Illinois, Student Housing Revenue, (Joliet Junior College Project) Series 2002A, 6.750% 09/01/33................................... NR NR 4,955 -------- 108,957 -------- INDIANA -- 2.1% 2,500 Franklin, Indiana, Economic Development Revenue Refunding, (Hoover Universal, Inc. Project) Series 1994, (GTY-AGMT), 6.100% 12/01/04................................... A2 A- 2,711 1,000 Hamilton/Southeastern Indiana, North Delaware School Building Corporation, First Mortgage Revenue, Series 1996, (AMBAC Insured, State Aid Withholding), 5.000% 07/15/07................................... Aaa AAA 1,108
SEE NOTES TO FINANCIAL STATEMENTS. 61 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- INDIANA -- (CONTINUED) $ 1,000 Hamilton/Southeastern Indiana, North Delaware School Building Corporation, First Mortgage Revenue, Series 1996, (AMBAC Insured, State Aid Withholding), 5.100% 07/15/09................................... Aaa AAA $ 1,109 6,340 Indiana, Health Facilities Financing Authority, Hospital Revenue, (Charity Obligation Group Project) Series 1997D, Prerefunded 11/01/07 @ 100, 5.000% 11/01/26................................... Aaa NR 6,916 2,000 Indiana, Health Facilities Financing Authority, Hospital Revenue, (Clarian Health Partners, Inc. Project) Series 1996A, 5.500% 02/15/16................................... Aa3 AA 2,121 2,000 Indiana, Ivy Tech State College, Revenue, Series 1997E, (AMBAC Insured), 5.125% 07/01/12................................... Aaa AAA 2,204 2,000 St. Joseph County, Indiana, Educational Facilities Revenue, (University of Notre Dame - Du Lac Project) Series 1996, 5.500% 03/01/26................................... Aaa NR 2,110 -------- 18,279 -------- IOWA -- 0.3% 2,750 Iowa, Student Loan Liquidity Corporation, Student Loan Revenue Refunding, Series 1998J, AMT, (AMBAC Insured), 4.800% 06/01/09................................... Aaa AAA 2,939 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- KANSAS -- 1.1% $ 2,000 Kansas City, Kansas, Utility System Improvement Revenue Refunding, Series 1994, (FGIC Insured), 6.250% 09/01/14................................... Aaa AAA $ 2,203 9,670 Sedgwick County, Kansas, Unified School District No 259, Witchita, GO, Series 2002, (FSA Insured), 2.500% 10/01/17................................... Aaa AAA 7,835 -------- 10,038 -------- KENTUCKY -- 0.1% 1,000 Kentucky State, Turnpike Authority, Economic Development Revenue Refunding, (Revitalization Project) Series 1993, (AMBAC Insured), 5.500% 07/01/08................................... Aaa AAA 1,142 -------- LOUISIANA -- 0.7% 3,400 East Baton Rouge Parish, Louisiana, Revenue Refunding, (Pacific Corporation Project) Series 1998, AMT, 5.350% 09/01/11................................... Ba1 NR 2,979 3,000 Plaquemines, Louisiana, Port Harbour and District Marine Terminal Facilities Revenue Refunding, (Electro-Coal Project) Series 2001B, 5.000% 09/01/07................................... A3 BBB- 3,144 -------- 6,123 -------- MARYLAND -- 0.4% 3,000 Maryland State, Economic Development Corporation, Student Housing Revenue, (Salisbury Collegiate Housing Project) Series 1999A, 6.000% 06/01/30................................... Baa3 NR 3,171 --------
SEE NOTES TO FINANCIAL STATEMENTS. 62 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MASSACHUSETTS -- 0.7% $ 3,000 Massachusetts State, Water Resources Authority, General Revenue, Series 1993C, (AMBAC Insured), 5.250% 12/01/15................................... Aaa AAA $ 3,457 2,500 Massachusetts State, Water Resources Authority, General Revenue, Series 1994A, (MBIA Insured), Prerefunded 08/01/04 @ 101.5, 5.900% 08/01/16................................... Aaa AAA 2,733 -------- 6,190 -------- MICHIGAN -- 2.0% 1,670 Byron Center, Michigan, Public Schools GO, Series 1995, (MBIA Insured), Prerefunded 05/01/05 @ 101, 5.970% 05/01/15................................... Aaa AAA 1,863 1,000 Detroit, Michigan, GO Refunding, Series 1995B, 6.375% 04/01/07................................... Baa1 A- 1,090 1,700 Hudsonville, Michigan, Public Schools, Series 1994B, (FGIC Insured), Prerefunded 05/01/04 @ 102, 6.000% 05/01/14................................... Aaa AAA 1,851 1,000 Leslie, Michigan, Public Schools Ingham and Jackson Counties, GO Refunding, Series 1995, (AMBAC Insured), Prerefunded 05/01/05 @ 101, 6.000% 05/01/15................................... Aaa AAA 1,116 3,000 Michigan State, Comprehensive Transportation Revenue Refunding, Series 1996A, (MBIA Insured), 5.250% 08/01/13................................... Aaa AAA 3,309 3,435 Michigan State, Environmental Protection Program GO, Series 1992, 6.250% 11/01/12................................... Aaa AAA 4,175
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MICHIGAN -- (CONTINUED) $ 2,000 Michigan State, Trunk Line Revenue, Series 1994A, (FGIC-TCRS Insured), Prerefunded 11/15/04 @ 102, 5.625% 11/15/14................................... Aaa AAA $ 2,208 2,060 River Roughe, Michigan, School District, GO, Series 2002, (FGIC Insured), 5.250% 05/01/13................................... Aaa AAA 2,351 -------- 17,963 -------- MISSISSIPPI -- 0.7% 3,000 Lowndes County, Mississippi, Solid Waste Disposal PCR Refunding, (Weyerhaeuser Company Project) Series 1992A, 6.800% 04/01/22................................... Baa2 BBB 3,447 2,200 Mississippi, Hospital Equipment and Facilities Improvement Authority, Revenue Refunding, (North Mississippi Health Services Project) Series 1993-1, (AMBAC Insured), 5.400% 05/15/04................................... Aaa AAA 2,293 -------- 5,740 -------- MISSOURI -- 4.0% 1,000 Independence, Missouri, School District, GO, Series 1991, 6.250% 03/01/11................................... A3 NR 1,201 1,450 Jefferson City, Missouri, School District, Series 1991A, 6.700% 03/01/11................................... Aa2 NR 1,770 1,500 Kansas City, Missouri, Water Revenue, Series 1994D, Prerefunded 12/01/04 @ 100, 6.600% 12/01/14................................... Aa3 AA 1,660 3,425 Missouri State, Environmental Improvement and Energy Resource Authority, PCR Refunding, (Associated Electrical Cooperation Thomas Hill Project) Series 1996, 5.500% 12/01/10................................... A1 AA 3,836
SEE NOTES TO FINANCIAL STATEMENTS. 63 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MISSOURI -- (CONTINUED) $ 2,000 Missouri State, Environmental Improvement and Energy Resource Authority, PCR Refunding, (Associated Electrical Cooperation Thomas Hill Project) Series 1996, 5.500% 12/01/11................................... A1 AA $ 2,240 3,290 Missouri State, Environmental Improvement and Energy Resource Authority, Water PCR, Series 1995C, Prerefunded 01/01/05 @ 101, 6.000% 01/01/16................................... Aaa NR 3,630 4,065 Missouri State, GO, Series 1995, 5.600% 04/01/15................................... Aaa AAA 4,463 2,000 Missouri State, Health and Educational Facilities Authority Revenue, (SSM Health Care Corporation Project) Series 2002A, 5.000% 06/01/11................................... NR AA- 2,171 2,500 Missouri State, Health and Educational Facilities Authority Revenue, (SSM Health Care Project) Series 2002A, 5.250% 06/01/12................................... NR AA- 2,757 955 Missouri State, Housing Development Commission, Single-Family Mortgage Revenue, (Homeowner Loan Project) Series 1995A, AMT, (GNMA/FHA/VA COLL), 6.100% 09/01/14................................... NR AAA 1,004 1,625 Missouri State, Water Pollution Control GO, Series 1995A, 5.600% 04/01/15................................... Aaa AAA 1,784 3,500 Sikeston, Missouri, Electrical Revenue Refunding, Series 1992, (MBIA Insured), 6.100% 06/01/07................................... Aaa AAA 4,054
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MISSOURI -- (CONTINUED) $ 1,400 St. Louis, Missouri, Industrial Development Authority, PCR Refunding, (Anheuser Busch Company Project) Series 1991, 6.650% 05/01/16................................... A1 A+ $ 1,784 2,240 University City, Missouri, GO, Series 1994, (MBIA Insured), Prerefunded 02/15/04 @ 100, 6.200% 02/15/14................................... Aaa AAA 2,381 -------- 34,735 -------- MONTANA -- 0.2% 8,000 Lewis and Clark County, Montana, Environmental Facilities Revenue, (Asarco, Inc. Project) Series 1998, AMT, 5.850% 10/01/33................................... Ca C 2,159 -------- NEBRASKA -- 0.2% 1,600 Omaha, Nebraska, Public Power District, Electric Revenue, Series 1992B, 6.200% 02/01/17................................... Aa2 NR 1,962 -------- NEVADA -- 1.4% 3,000 Las Vegas and Clark County, Nevada, Library District GO, Series 1993, (FGIC Insured), Prerefunded 02/01/03 @ 101, 6.000% 02/01/12................................... Aaa AAA 3,075 4,000 Nevada State, GO, Series 1995A, 5.500% 11/01/16................................... Aa2 AA 4,398 2,625 Nevada State, GO, Series 1995A, 5.500% 11/01/17................................... Aa2 AA 2,894 2,000 Nevada State, Municipal Board GO, (Bank Project Number 40-41) Series 1993A, 6.375% 12/01/17................................... NR AAA 2,054 -------- 12,421 -------- NEW HAMPSHIRE -- 0.5% 4,000 New Hampshire, Higher Education and Health Facility Authority, Revenue, (Nashua Memorial Hospital Project) Series 1993, 6.000% 10/01/23................................... NR A- 4,049 --------
SEE NOTES TO FINANCIAL STATEMENTS. 64 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- NEW JERSEY -- 0.4% $ 2,500 New Jersey State, GO, Series 1986B, 6.250% 01/15/05................................... Aa2 AA $ 2,750 890 New Jersey State, Highway Authority, Garden State Parkway Generated Revenue, Series 1971, 6.500% 01/01/11................................... Aaa AAA 1,033 -------- 3,783 -------- NEW MEXICO -- 0.2% 1,495 New Mexico, Mortgage Finance Authority, Single-Family Mortgage Revenue, Series 1997C-2, AMT, (GNMA/FNMA/FHLMC COLL), 6.050% 07/01/28................................... Aaa NR 1,563 -------- NEW YORK -- 3.0% 5,000 Albany, New York, Industrial Development Agency, Civic Facility Revenue, (Charitable Leadership Project) Series 2002A, 6.000% 07/01/19................................... Baa3 NR 5,213 1,555 New York City, New York, Industrial Development Agency Civic Facilities Revenue, (Polytechnic University Project) Series 2000, 5.300% 11/01/09................................... Baa3 BBB- 1,657 3,520 New York City, New York, Municipal Water Finance Authority, Water and Sewer Revenue, Series 2001D, 5.250% 06/15/25................................... Aa2 AA 3,726 1,250 New York City, New York, Municipal Water Finance Authority, Water and Sewer Systems Revenue, Series 1997B, 5.750% 06/15/29................................... Aa2 AA 1,389 7,250 New York City, New York, Transitional Finance Authority, Revenue Refunding, Future Tax Secured, Series 2002A, 5.500% 11/01/26................................... Aa2 AA+ 8,407 1,000 New York State, Dormitory Authority, Revenue, Series 2002B, Mandatory Put 05/15/12 @ 100, 5.250% 11/15/23................................... NR AA- 1,123
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- NEW YORK -- (CONTINUED) $ 2,390 New York State, Local Government Assistance Corporation, Revenue, Series 1995A, 6.000% 04/01/16................................... A1 AA- $ 2,652 1,750 New York, New York, City Municipal Water Financing Authority, Water and Sewer Systems Revenue, Series 1998D, 4.750% 06/15/12................................... Aa2 AA 1,881 -------- 26,048 -------- NORTH CAROLINA -- 1.0% 2,425 Haywood County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding, (Champion International Corporation Project) Series 1999, AMT, 6.400% 11/01/24................................... Baa2 NR 2,559 5,450 New Hanover County, North Carolina, GO, Series 2001, 5.000% 06/01/20................................... Aa2 AA- 5,856 -------- 8,415 -------- OHIO -- 2.0% 4,990 Dayton, Ohio, Special Facilities Revenue Refunding, (Air Freight Corporation Project) Series 1993F, 6.050% 10/01/09................................... NR BB+ 4,376 9,500 Dayton, Ohio, Special Facilities Revenue, (Air Freight Corporation Project) Series 1988D, AMT, 6.200% 10/01/09................................... NR BB+ 8,406 3,025 Lakota, Ohio, School District GO, Series 1994, (AMBAC Insured), Prerefunded 12/01/05 @ 100, 6.250% 12/01/14................................... Aaa AAA 3,441 1,000 Lucas County, Ohio, Hospital Revenue, (Flower Hospital Project) Series 1993, Prerefunded 12/01/04 @ 101, 6.125% 12/01/13................................... NR NR 1,097 -------- 17,320 --------
SEE NOTES TO FINANCIAL STATEMENTS. 65 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- OKLAHOMA -- 0.3% $ 3,000 Oklahoma, Development Finance Authority, Revenue Refunding, (Hillcrest Healthcare Center Inc. Project) Series 1999A, 5.000% 08/15/08................................... B2 B- $ 2,453 -------- PENNSYLVANIA -- 1.2% 1,725 Philadelphia, Pennsylvania, Hospital and Higher Education Facilities Authority, Hospital Revenue, (Frankford Hospital Project) Series 1993A, 6.000% 06/01/14................................... A3 NR 1,804 3,125 Philadelphia, Pennsylvania, Hospital and Higher Education Facilities Authority, Hospital Revenue, (Frankford Hospital Project) Series 1993A, 6.000% 06/01/23................................... A3 NR 3,217 4,800 Philadelphia, Pennsylvania, Industrial Development Authority, IDR Refunding, (Ashland Oil Inc. Project) Series 1993, 5.700% 06/01/05................................... Baa2 NR 5,125 -------- 10,146 -------- SOUTH CAROLINA -- 4.8% 5,000 Georgetown County, South Carolina, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, (GTY-AGMT), 5.950% 03/15/14................................... Baa2 BBB 5,372 5,000 Greenville, South Carolina, Hospital Facilities Revenue, Series 2001, 5.500% 05/01/26................................... Aaa AAA 5,390 3,095 South Carolina State, Public Service Authority, Revenue Refunding, Series 2002D, (FSA Insured), 5.000% 01/01/18................................... Aaa AAA 3,323 8,085 South Carolina State, State School Facilities, GO, Series 2001A, 3.500% 01/01/16................................... Aaa AAA 7,688
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $ 1,430 South Carolina, State Housing Finance and Development Authority, Revenue, (Homeownership Mortgage Purchase Project) Series 1994A, 6.375% 07/01/16................................... Aa2 AA $ 1,502 3,500 South Carolina, State Public Services Authority, Revenue Refunding, Series 1995B, (FGIC Insured), 5.875% 01/01/19................................... Aaa AAA 3,877 2,000 Spartanburg County, South Carolina, Solid Waste Disposal Facilities Revenue, (BMW U.S. Capital Corporation Project) Series 1994, AMT, (GTY-AGMT), 7.550% 11/01/24................................... A1 NR 2,197 8,500 Tobacco Settlement Management Revenue, Series 2001B, 6.375% 05/15/28................................... A1 A 8,600 4,000 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24................................... Baa2 BBB 3,801 -------- 41,750 -------- TENNESSEE -- 3.1% 5,500 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (University Health Systems Inc. Project) Series 1999, 5.750% 04/01/19................................... Baa1 NR 5,673 3,000 Maury County, Tennessee, Industrial Development Board, Multi-Model PCR Refunding, (General Motors Corporation - Saturn Corporation Project) Series 1994, 6.500% 09/01/24................................... A3 BBB+ 3,240
SEE NOTES TO FINANCIAL STATEMENTS. 66 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 4,000 Maury County, Tennessee, Industrial Development Board, Solid Waste Disposal Revenue, Occidental Petroleum Corporation, AMT, (GTD-AGMT), 6.250% 08/01/18................................... Baa2 BBB- $ 4,121 2,750 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22................................... Baa3 BBB- 2,759 1,000 Memphis, Tennessee, GO Refunding, Series 1996, 5.200% 11/01/10................................... Aa2 AA 1,101 5,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 2001, 5.000% 09/01/09................................... Baa2 BBB 5,287 2,500 Metropolitan Government, Nashville and Davidson County, Tennessee, Water and Sewer Systems Revenue Refunding, Series 1993, (FGIC Insured), 5.200% 01/01/13................................... Aaa AAA 2,854 2,000 Metropolitan Government, Nashville and Davidson County, Tennessee, Water and Sewer Systems Revenue Refunding, Series 1996, (MBIA Insured), 5.500% 01/01/14................................... Aaa AAA 2,230 -------- 27,265 -------- TEXAS -- 9.9% 2,000 Arlington, Texas, Independent School District, GO, Series 1991, (PSF-GTD), 6.500% 08/15/03................................... Aaa NR 2,085 2,470 Beaumont, Texas, Independent School District GO, Series 1996, (PSF-GTD), 5.000% 02/15/17................................... Aaa AAA 2,621
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 1,540 Bexar, Texas, Metropolitan Water District, Waterworks Revenue, Series 1995, (MBIA Insured), Prerefunded 05/01/05 @ 102, 6.000% 05/01/15................................... Aaa AAA $ 1,734 2,070 Bexar, Texas, Metropolitan Water District, Waterworks Revenue, Unrefunded Balance, Series 1995, (MBIA Insured), 6.000% 05/01/15................................... Aaa AAA 2,303 7,600 Brazos River Authority, Texas, PCR Refunding, (Texas Utilities Electric Company Project) Series 1995B, AMT, Mandatory Put 06/19/06 @ 100, 5.050% 06/01/30................................... Baa1 BBB+ 7,840 1,000 Brazos River Authority, Texas, Revenue Refunding, (Houston Light and Power Company Project) Series 1992B, (MBIA Insured), 6.375% 04/01/12................................... Aaa AAA 1,024 1,540 Comal, Texas, Independent School District GO, Series 1996A, (PSF-GTD), Prerefunded 02/01/06 @ 100, 5.600% 02/01/10................................... Aaa AAA 1,714 4,805 Cypress-Fairbanks, Texas, Independent School District GO, Unrefunded Balance, Series 1993A, (PSF-GTD), 5.500% 02/15/11................................... Aaa AAA 4,868 1,750 Dallas County, Texas, GO, Series 1996, 5.250% 08/15/16................................... Aaa AAA 1,912 4,250 Dallas-Fort Worth, Texas, International Airport Facilities Improvement, Corporate Revenue Refunding, (American Airlines Project) Series 2000C, AMT, Mandatory Put 11/01/07 @ 100, 6.150% 05/01/29................................... B2 BB- 2,341
SEE NOTES TO FINANCIAL STATEMENTS. 67 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 2,220 Grand Prairie, Texas, Independent School District, GO Refunding, Series 2002, (PSF-GTD), 5.000% 02/15/22................................... Aaa AAA $ 2,301 9,075 Harris County, Texas, GO, Refunding, Series 2002, (MBIA Insured), 4.740%& 08/15/19.................................. Aaa AAA 4,116 1,000 Harris County, Texas, GO, Series 1984, 7.800% 01/01/03................................... Aaa AAA 1,016 3,335 Harris County, Texas, Health Facilities Development Authority, Hospital Revenue, (Memorial Herman Hospital Systems Project) Series 1998, (FSA Insured), 5.500% 06/01/11................................... Aaa AAA 3,825 5,000 Houston, Texas, Airport Systems Revenue, Series 1998B, AMT, (FGIC Insured), 5.000% 07/01/16................................... Aaa AAA 5,173 5,000 Lubbock, Texas, Health Facilities Development Authority, Corporate Revenue, (St. Joseph Health Systems Project) Series 1998, (FSA Insured), 5.000% 07/01/07................................... Aaa AAA 5,481 4,155 McKinney, Texas, Independent School District, GO, Series 2001, (PSF-GTD), 5.125% 02/15/17................................... Aaa AAA 4,476 2,000 North Central Texas, Health Facilities Development Corporation, Hospital Revenue, (Presbyterian Healthcare Project) Series 1991A, 6.625% 06/01/11................................... Aaa NR 2,411 4,000 Port of Bay City Authority, Texas, Matagorda County Revenue, (Hoechst Celanese Corporation Project), Series 1996, AMT, 6.500% 05/01/26................................... Baa2 BBB 4,041 2,500 Red River Authority, Texas, PCR Refunding, Series 1991, (AMBAC Insured), 5.200% 07/01/11................................... Aaa AAA 2,709
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 5,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 6.000% 10/01/16................................... Baa2 BBB- $ 5,361 3,000 San Antonio, Texas, Electric and Gas Revenue, Series 1995, (MBIA Insured), 5.375% 02/01/18................................... Aaa AAA 3,235 2,000 San Antonio, Texas, GO, Series 1996, 5.250% 08/01/15................................... Aa2 AA+ 2,142 2,855 Spring Branch, Texas, Independent School District GO, Series 1995, (PSF-GTD), Prerefunded 02/01/05 @ 100, 6.000% 02/01/17................................... Aaa AAA 3,131 2,000 Texas City, Texas, IDR Refunding, (Atlantic Richfield Company Project) Series 1990, 7.375% 10/01/20................................... Aa2 AA+ 2,685 3,000 Texas State, GO Refunding, Series 1996B, Prerefunded 10/01/06 @ 100, 5.750% 10/01/15................................... Aa1 AAA 3,420 1,000 Texas State, GO, Series 1996, 5.500% 08/01/15................................... Aa1 AA 1,103 1,500 Texas State, University System Financing Refunding Revenue, Series 2002, (FSA Insured), 5.000% 03/15/17................................... Aaa AAA 1,606 -------- 86,674 -------- UTAH -- 1.8% 2,000 Emery County, Utah, PCR Refunding, (Pacificorp Project) Series 1993A, (AMBAC Insured), 5.650% 11/01/23................................... Aaa AAA 2,094 5,500 Murray City, Utah, Hospital Revenue Refunding, (IHC Health Services, Inc. Project) Series 1996, (MBIA Insured), 5.000% 05/15/22................................... Aaa AAA 5,572 1,835 Provo, Utah, Electric Revenue, Series 1980, 10.125% 04/01/15.................................. Aaa AAA 2,627
SEE NOTES TO FINANCIAL STATEMENTS. 68 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- UTAH -- (CONTINUED) $ 3,000 Salt Lake City, Utah, Water and Sewer Revenue, Series 1994, (AMBAC Insured), Prerefunded 02/01/04 @ 100, 6.100% 02/01/14................................... Aaa AAA $ 3,180 2,500 Utah, County Hospital Revenue, Series 1997, (MBIA Insured), 5.250% 08/15/26................................... Aaa AAA 2,568 -------- 16,041 -------- VERMONT -- 0.3% 1,985 Vermont, Municipal Bond Bank, Revenue, Series 1996-1, (AMBAC Insured), 5.750% 12/01/15................................... Aaa AAA 2,265 -------- VIRGINIA -- 0.7% 2,830 Fairfax County, Virginia, Water and Sewer Authority, Water Revenue, Unrefunded Balance, Series 1992, 6.000% 04/01/22................................... Aa1 AAA 3,218 1,000 Norfolk, Virginia, Capital Improvement GO, Series 1997, (FGIC Insured), 5.375% 06/01/15................................... Aaa AAA 1,110 1,600 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995, (MBIA Insured), 5.700% 01/01/14................................... Aaa AAA 1,678 -------- 6,006 -------- WASHINGTON -- 12.6% 8,500 Chelan County, Washington, Development Corporation, PCR Refunding, (Alcoa, Inc. Project) Series 1995, 5.850% 12/01/31................................... A2 A+ 8,993 2,310 Chelan County, Washington, Public Utilities District Division III, Revenue, Series 1997A, AMT, Mandatory Put 07/01/20 @ 100, 5.600% 07/01/32................................... Aa2 AA 2,394
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 2,480 Clark County, Washington, Sewer Revenue, Series 1996, (MBIA Insured), Prerefunded 12/01/06 @ 100, 5.800% 12/01/11................................... Aaa AAA $ 2,844 1,035 King County, Washington, Library Systems GO, Series 1992, 6.150% 12/01/10................................... Aa3 AA- 1,201 2,000 King County, Washington, School District No. 403 Renton, GO, Series 1998, 5.250% 06/01/15................................... Aa3 AA- 2,178 2,000 King County, Washington, School District Number 415, GO, Series 1996, (FSA Insured), Prerefunded 06/01/06 @ 100, 5.800% 06/01/13................................... Aaa AAA 2,261 3,000 King County, Washington, Sewer GO Refunding, Series 1996C, 5.250% 01/01/17................................... Aa1 AA+ 3,214 8,500 Pilchuck, Washington, Public Development Corporation, Special Airport Facilities Revenue, (Tramco Inc. Project) Series 1993, AMT, 6.000% 08/01/23................................... Baa1 BBB+ 8,438 2,405 Port Seattle, Washington, GO, Series 2000, AMT, 6.000% 12/01/11................................... Aa1 AA+ 2,784 1,600 Seattle, Washington, GO Refunding, Series 1993, 5.650% 01/01/20................................... Aa3 AA 1,644 4,365 Seattle, Washington, GO, Series 1996A, 5.625% 01/15/10................................... Aa1 AAA 4,793 1,795 Seattle, Washington, GO, Series 1997, 5.300% 08/01/17................................... Aa1 AAA 1,957 2,530 Seattle, Washington, Municipal Light and Power Revenue, Series 1994, Prerefunded 07/01/04 @ 102, 6.625% 07/01/16................................... Aa3 A+ 2,799 6,100 Seattle, Washington, Water Systems Revenue Refunding, Series 1993, 5.500% 06/01/18................................... Aa2 AA 6,338
SEE NOTES TO FINANCIAL STATEMENTS. 69 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,525 Skagit County, Washington, School District Number 320, GO Refunding, Series 1996, (FGIC Insured), 5.500% 12/01/12................................... Aaa AAA $ 1,701 2,000 Tacoma, Washington, Conservation Systems Project Revenue, Series 1994, 6.600% 01/01/15................................... Aa1 AA- 2,196 2,000 Tacoma, Washington, Electric System Revenue, Series 1997, (AMBAC Insured), 5.250% 01/01/15................................... Aaa AAA 2,196 12,700 Washington State, GO, Series 1990A, 6.750% 02/01/15................................... Aa1 AA+ 16,304 1,155 Washington State, GO, Series 1992A, 6.250% 02/01/11................................... Aa1 AA+ 1,372 17,845 Washington State, GO, Series 2000A, 5.625% 07/01/21................................... Aa1 AA+ 19,513 2,955 Washington State, GO, Unrefunded Balance, Series 1992-93A, 5.750% 10/01/12................................... Aa1 AA+ 3,476 3,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1993B, (FSA Insured), 5.400% 07/01/05................................... Aaa AAA 3,279 5,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1996A, (MBIA Insured), 5.750% 07/01/11................................... Aaa AAA 5,650 255 Washington State, Public Power Supply Systems Revenue, (Nuclear Project Number 1) Series 1990B, Prerefunded 07/01/04 @ 100, 7.250% 07/01/09................................... Aa1 AA- 322 1,145 Washington State, Public Power Supply Systems Revenue, (Nuclear Project Number 1) Series 1990B, Unrefunded 07/01/04 @ 100, 7.250% 07/01/09................................... Aa1 AA- 1,366
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 95 Washington State, Public Power Supply Systems Revenue, (Nuclear Project Number 2) Series 1990A, Prerefunded 07/01/04 @ 100, 7.250% 07/01/06................................... Aa1 AA- $ 111 1,505 Washington State, Public Power Supply Systems Revenue, (Nuclear Project Number 2) Series 1990A, Prerefunded 07/01/04 @ 100, 7.250% 07/01/06................................... Aa1 AA- 1,783 -------- 111,107 -------- WEST VIRGINIA -- 0.5% 1,450 Jefferson County, West Virginia, Board of Education, GO, Series 1989, (FGIC Insured), 6.850% 07/01/07................................... Aaa AAA 1,738 1,560 Jefferson County, West Virginia, Board of Education, GO, Series 1989, (FGIC Insured), 6.850% 07/01/08................................... Aaa AAA 1,905 1,000 West Virginia University, State University Systems Revenue, (Marshall University Library Project) Series 1996, (AMBAC Insured), 5.750% 04/01/16................................... Aaa AAA 1,114 -------- 4,757 -------- WISCONSIN -- 2.6% 3,000 Menomonee Falls, Wisconsin, Sewer Systems Revenue, Series 1996A, (AMBAC Insured), 5.650% 05/01/16................................... Aaa AAA 3,335 2,170 Nekoosa, Wisconsin, PCR, (Nekoosa Papers Inc. Project) Series 1999A, 5.350% 07/01/15................................... Ba1 NR 1,774 4,500 Nekoosa, Wisconsin, PCR, (Nekoosa Papers Inc. Project) Series 1999B, 5.500% 07/01/15............ Ba1 NR 3,733 1,000 Wisconsin State, GO Refunding, Series 1993-1, 5.800% 11/01/08................................... Aa3 AA- 1,163
SEE NOTES TO FINANCIAL STATEMENTS. 70 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- WISCONSIN -- (CONTINUED) $ 4,000 Wisconsin State, Health and Educational Facilities Authority, Revenue, (Aurora Health Care Inc. Project) Series 1999A, 5.600% 02/15/29................................... NR BBB+ $ 3,861 3,500 Wisconsin State, Health and Educational Facilities Authority, Revenue, (Aurora Health Care Project) Series 1999B, 5.500% 02/15/15................................... NR BBB+ 3,555 5,500 Wisconsin State, Health and Educational Facilities Authority, Revenue, (Aurora Health Care Project) Series 1999B, 5.625% 02/15/20................................... NR BBB+ 5,429 -------- 22,850 -------- WYOMING -- 1.5% 2,300 Campbell County, Wyoming, School District Number 001-Gillette, GO, Series 1996, (SCH BD GTY), 5.550% 06/01/06................................... Aaa AAA 2,561 10,000 Wyoming, Student Loan Corporation, Revenue Refunding, Series 1999A, 6.250% 06/01/29................................... NR AA 10,667 -------- 13,228 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $796,128).................................................. 862,940 --------
SHARES VALUE (000) (000) - -------------------------------------------------------------------------------- INVESTMENT COMPANIES -- 2.1% (Cost $18,074) 18,074 Nations Tax-Exempt Reserves, Trust Class#........................................... $ 18,074 -------- TOTAL INVESTMENTS (Cost $814,202*)................................ 100.5% 881,014 -------- OTHER ASSETS AND LIABILITIES (NET)................ (0.5)% Cash..................................................... $ 1 Receivable for investment securities sold................ 1,475 Receivable for Fund shares sold.......................... 770 Dividends receivable..................................... 14 Interest receivable...................................... 13,139 Payable for Fund shares redeemed......................... (986) Investment advisory fee payable.......................... (230) Administration fee payable............................... (144) Shareholder servicing and distribution fees payable...... (20) Distributions payable.................................... (3,198) Payable for investment securities purchased.............. (14,992) Accrued Trustees' fees and expenses...................... (52) Accrued expenses and other liabilities................... (258) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................. (4,481) -------- NET ASSETS........................................ 100.0% $876,533 ======== NET ASSETS CONSIST OF: Undistributed net investment income...................... $ 1,982 Accumulated net realized loss on investments sold........ (11,328) Net unrealized appreciation of investments............... 66,812 Paid-in capital.......................................... 819,067 -------- NET ASSETS............................................... $876,533 ========
SEE NOTES TO FINANCIAL STATEMENTS. 71 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - -------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($814,529,424 / 72,547,446 shares outstanding).................................... $11.23 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($49,892,556 / 4,445,547 shares outstanding)........... $11.22 ======== Maximum sales charge..................................... 4.75% Maximum offering price per share......................... $11.78 INVESTOR B SHARES: Net asset value and offering price per share** ($10,238,636 / 912,093 shares outstanding)............. $11.23 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($1,872,587 / 166,791 shares outstanding).............. $11.23 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Municipal Income Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): MBIA 13.40%
Nations Municipal Income Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Industrial Development Revenue/Pollution Control Revenue 12.18% Pre-Refunded 14.91%
SEE NOTES TO FINANCIAL STATEMENTS. 72 NATIONS FUNDS Nations California Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 101.6% CALIFORNIA -- 96.3% $1,250 ABAG Finance Authority for Non-Profit Corporations, California, Certificates of Participation Refunding, (Episcopal Homes Foundation Project) Series 1998, 5.000% 07/01/07................................... NR A- $ 1,348 2,000 ABAG Finance Authority for Non-Profit Corporations, California, Multi-Family Revenue Refunding, Series 2000B, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.250% 08/15/30................................... Baa3 BBB- 2,173 700 ABAG Finance Authority for Non-Profit Corporations, Certificates of Participation Refunding, (American Baptist Homes Project) Series 1998A, 5.500% 10/01/07................................... NR BB+ 715 2,200 Alameda County, California, Certificates of Participation Refunding, (Santa Rita Jail Project) Series 1993, (MBIA Insured), 5.375% 06/01/09................................... Aaa AAA 2,570 1,000 Alameda County, California, Certificates of Participation Refunding, Series 2001A, (MBIA Insured), 4.250% 12/01/11................................... Aaa NR 1,099 1,000 Anaheim, California, Public Financing Authority, Lease Revenue, (Public Improvements Project) Series 1997C, (FSA Insured), 6.000% 09/01/11................................... Aaa AAA 1,234 1,690 California Health Facilities Finance Authority, Revenue, (Catholic Health Corporation Project) Series 1994A, (MBIA Insured), 5.600% 11/15/04................................... Aaa AAA 1,840
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $2,000 California Health Facilities Finance Authority, Revenue, (Kaiser Permanente Project) Series 1998A, 5.250% 06/01/12................................... Aaa AAA $ 2,276 1,000 California Health Facilities Finance Authority, Revenue, (Sisters Providence Project) Series 1996, 5.500% 10/01/05................................... Aa3 AA- 1,110 1,000 California Health Facilities Financing Authority, Revenue, (Cedars-Sinai Medical Center Project) Series 1999A, 6.125% 12/01/19................................... A3 NR 1,117 1,040 California Infrastructure & Economic Development Bank Revenue, (American Center for Wine, Food, Arts Project) Series 1999, (ACA Insured), 5.250% 12/01/08................................... NR A 1,156 2,765 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project Revenue) Series 1997S, 5.000% 12/01/06................................... Aa2 AA 3,123 1,000 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project) Series 1992J-2, 6.000% 12/01/06................................... Aa2 AA 1,165 20 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project) Series 1998T, 5.500% 12/01/08................................... Aa2 AA 24 1,100 California State, GO, (For Previous Veterans Project) Series 2000BU, 4.350% 12/01/07................................... A1 AA- 1,177 3,000 California State, GO, Series 1997BL, AMT, 5.300% 12/01/12................................... A1 AA- 3,250 2,000 California State, GO, Series 2000, 5.250% 10/01/15................................... A1 A+ 2,197
SEE NOTES TO FINANCIAL STATEMENTS. 73 NATIONS FUNDS Nations California Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $1,000 California Statewide Communities Development Authority, Certificates of Participation Refunding, (Cedars-Sinai Medical Center) Series 1993, 4.700% 11/01/03................................... A3 NR $ 1,030 1,940 California Statewide Communities Development Authority, Certificates of Participation, (Catholic Healthcare West Project) Series 1999, 6.000% 07/01/09................................... Baa2 BBB 2,155 1,000 California Statewide Communities Development Authority, Solid Waste Facilities Revenue, (Waste Management Inc. Project) Series 2001, AMT, (Waste Management Inc. GTY-AGMT), Mandatory Put 04/01/04 @ 100, 4.950% 04/01/11................................... NR BBB 1,018 2,025 Culver City, California, Redevelopment Finance Authority Revenue Refunding, Series 1993, (AMBAC Insured), 5.500% 11/01/14................................... Aaa AAA 2,424 1,500 East Bay Municipal Utilities District, California, Water Systems Revenue Refunding, Series 1993, (MBIA Insured), 5.000% 06/01/06................................... Aaa AAA 1,673 2,000 East Bay-Delta, California, Housing & Finance Authority Revenue, Series 2001A, (MBIA Insured), 4.250% 06/01/05................................... Aaa AAA 2,115 1,280 Fontana, California, Redevelopment Agency Tax Allocation Refunding, (Jurupa Hills Redevelopment Project) Series 1999A, 4.625% 10/01/05................................... NR BBB+ 1,371
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $1,750 Foothill/Eastern Corridor Agency, California, Toll Road Revenue, Series 1995A, Prerefunded 01/01/10 @ 102, 3.387%& 01/01/13.................................. Aaa AAA $ 1,929 5,000 Inland Empire, California, Solid Waste Authority, Revenue, (Landfill Improvement Financing Project) Series 1996B, AMT, (FSA Insured), 6.250% 08/01/11................................... Aaa AAA 5,922 1,700 Kern, California, High School District, GO Refunding, Series 1996A, (MBIA Insured), 6.100% 08/01/07................................... Aaa AAA 2,004 3,000 Long Beach, California, Harbor Revenue, Series 1995, AMT, (MBIA Insured), 8.000% 05/15/04................................... Aaa AAA 3,306 690 Los Angeles County, California, Certificates of Participation, (Marina Del Rey Project) Series 1993A, 6.250% 07/01/03................................... NR NR 709 1,500 Los Angeles County, California, Public Works Financing Authority, Revenue, (Regional Park and Open Space District Project) Series 1997A, 5.375% 10/01/07................................... Aa3 AA 1,731 1,400 Los Angeles County, California, Transition Commission Sales Tax Revenue, Series 1992A, 6.400% 07/01/06................................... A1 A+ 1,621 3,500 Los Angeles, California, Unified School District GO, Series 2000D, 5.500% 07/01/09................................... Aa3 AA- 4,122 2,880 Los Angeles, California, Wastewater Systems Revenue Refunding, Series 1993A, (MBIA Insured), 5.300% 06/01/04................................... Aaa AAA 3,012 1,300 Los Angeles, California, Water & Power Revenue, Series 2001A, (MBIA-IBC Insured), 5.250% 07/01/15................................... Aaa AAA 1,464
SEE NOTES TO FINANCIAL STATEMENTS. 74 NATIONS FUNDS Nations California Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $1,640 Modesto, California, Irrigation District, Certificates of Participation Refunding, Series 1999A, (AMBAC Insured), 2.050%& 07/01/06.................................. Aaa AAA $ 1,519 3,000 Oakland, California, J.T. Powers Financing Authority, Lease Revenue Refunding, (Oakland Convention Centers) Series 2001, (AMBAC Insured), 5.500% 10/01/11................................... Aaa AAA 3,583 3,700 Oakland, California, Redevelopment Agency Tax Allocation Refunding, (Center District Redevelopment Project) Series 1992, (AMBAC Insured), 5.500% 02/01/14................................... Aaa AAA 4,391 1,000 Orange County, California, Public Financing Authority, Waste Management Systems Revenue Refunding, Series 1997, (AMBAC Insured), 5.500% 12/01/06................................... Aaa NR 1,131 1,000 Orange County, California, Public Financing Authority, Waste Management Systems Revenue Refunding, Series 1997, (AMBAC Insured), 5.750% 12/01/10................................... Aaa NR 1,185 1,375 Orange County, California, Revenue Refunding, Series 1995A, (MBIA Insured, Motor Vehicle Fee Withholding), 5.600% 06/01/07................................... Aaa AAA 1,586 3,575 Orange County, California, Water District, Certificates of Participation, Series 1993A, 5.000% 08/15/03................................... Aa2 AA 3,684 545 Port Oakland, California, Port Revenue, Series 1990D, (MBIA Insured), 7.000% 11/01/02................................... Aaa AAA 548
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $1,000 Port Oakland, California, Revenue, Series 2000K, AMT, (FGIC Insured), 5.500% 11/01/08................................... Aaa AAA $ 1,152 4,000 Sacramento County, California, Sanitation District Financing Authority, Revenue, Series 2000A, 5.000% 12/01/08................................... Aa3 AA 4,608 1,000 Sacramento, California, City Financing Authority, Lease Revenue, Series 1993B, 5.200% 11/01/07................................... A2 AA- 1,130 4,260 Sacramento, California, Cogeneration Authority, Revenue Refunding, (Cogeneration Project) Series 1998, (MBIA Insured), 5.250% 07/01/09................................... Aaa AAA 4,884 2,500 Sacramento, California, Power Authority, Revenue, (Cogeneration Project) Series 1995, (MBIA-IBC Insured), 5.875% 07/01/15................................... Aaa AAA 2,863 2,000 San Diego, California, MTDB Authority Lease Revenue Refunding, Series 1994, 5.250% 09/01/04................................... Aa3 AA- 2,141 3,440 San Francisco, California, Bay Area Rapid Transportation District, Sales Tax Revenue, Series 1998, 5.500% 07/01/09................................... Aa3 AA- 3,995 2,365 San Francisco, California, City and County Airport Commission, International Airport Revenue, Series 1998-16A, AMT, (FSA Insured), 5.500% 05/01/07................................... Aaa AAA 2,672 2,490 San Francisco, California, City and County Airport Commission, International Airport Revenue, Series 1998-22, AMT, (AMBAC Insured), 6.000% 05/01/07................................... Aaa AAA 2,866
SEE NOTES TO FINANCIAL STATEMENTS. 75 NATIONS FUNDS Nations California Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $1,000 San Juan, California, Unified School District GO, Series 2000, (FGIC Insured), 5.000% 08/01/09................................... Aaa AAA $ 1,150 3,955 San Ramon Valley, California, Unified School District, GO, Series 1998A, (FGIC Insured), 1.770%& 07/01/05.................................. Aaa AAA 3,768 3,285 Santa Magarita/Dana Point Authority, California, Revenue, Series 1997A, (AMBAC Insured), 5.500% 08/01/11................................... Aaa AAA 3,772 3,000 Southern California, Public Power Authority, Power Project Revenue, Series 1989, 6.750% 07/01/13................................... A2 A 3,845 -------- 121,653 -------- PUERTO RICO -- 5.3% 3,970 Puerto Rico, Commonwealth Highway & Transportation Authority, Transportation Revenue, Series 2002F, 5.000% 07/01/05................................... Baa1 A 4,295 2,000 Puerto Rico, Electric Power Authority, Power Revenue, Series 1997AA, (MBIA Insured), 6.250% 07/01/10................................... Aaa AAA 2,445 -------- 6,740 TOTAL MUNICIPAL BONDS AND NOTES (Cost $118,723)....................................................... 128,393 --------
SHARES VALUE (000) (000) - ----------------------------------------------------------------------------------- INVESTMENT COMPANIES -- 1.9% (Cost $2,357) 2,357 Nations Tax-Exempt Reserves, Trust Class#..................... $ 2,357 -------- TOTAL INVESTMENTS (Cost $121,080*).................................. 103.5% 130,750 -------- OTHER ASSETS AND LIABILITIES (NET).................. (3.5)% Receivable for investment securities sold..................... $ 3,234 Receivable for Fund shares sold............................... 312 Dividends receivable.......................................... 3 Interest receivable........................................... 1,796 Payable for Fund shares redeemed.............................. (9,296) Investment advisory fee payable............................... (11) Administration fee payable.................................... (22) Distributions payable......................................... (399) Accrued Trustees' fees and expenses........................... (2) Accrued expenses and other liabilities........................ (27) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... (4,412) -------- NET ASSETS.......................................... 100.0% $126,338 ======== NET ASSETS CONSIST OF: Accumulated net realized gain on investments sold............. $ 513 Net unrealized appreciation of investments.................... 9,670 Paid-in capital............................................... 116,155 -------- NET ASSETS.................................................... $126,338 ========
SEE NOTES TO FINANCIAL STATEMENTS. 76 NATIONS FUNDS Nations California Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($124,489,618 / 12,202,237 shares outstanding).............. $10.20 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($1,205,452 / 118,008 shares outstanding)................... $10.22 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $10.56 INVESTOR B SHARES: Net asset value and offering price per share** ($151,651 / 14,849 shares outstanding)...................... $10.21 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($490,871 / 48,021 shares outstanding)...................... $10.22 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations California Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 16.52% MBIA 24.86%
Nations California Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Electric Revenue 12.27% Lease Revenue 10.43% Special Tax 11.01% Transportation Revenue 13.03% Water Revenue 13.30%
SEE NOTES TO FINANCIAL STATEMENTS. 77 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 97.2% CALIFORNIA -- 90.9% $ 2,000 ABAG Finance Authority for Non-Profit Corporations, California, Certificates of Participation Refunding, (Episcopal Homes Foundation Project) Series 1998, 4.625% 07/01/04................................... NR A- $ 2,084 2,000 ABAG Finance Authority for Non-Profit Corporations, California, Multi-Family Revenue Refunding, Series 2000A, AMT, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.400% 08/15/30................................... Baa3 BBB- 2,167 2,000 ABAG Finance Authority for Non-Profit Corporations, California, Multi-Family Revenue Refunding, Series 2000B, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.250% 08/15/30................................... Baa3 BBB- 2,173 3,000 Alameda County, California, Certificates of Participation, Refunding, (Santa Rita Jail Project) Series 1993, (MBIA Insured), Prerefunded 12/01/03 @ 102, 5.700% 12/01/14................................... Aaa AAA 3,211 2,000 Anaheim, California, GO, Unified School District, Series 2002, (FSA Insured), 5.000% 08/01/25................................... Aaa AAA 2,095 5,000 Beverly Hills, California, Public Financing Authority, Lease Revenue, (Capital Imports Project) Series 1998A, 5.000% 06/01/23................................... Aa3 AA 5,188 1,185 Bodega Bay, California, Fire Protection District, Certificates of Participation, (Fire Station Project) Series 1996, 6.450% 10/01/31................................... NR BBB 1,331
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,000 California Educational Facilities Authority Revenue, (Pooled College and University Project) Series 1999B, 5.250% 04/01/24................................... Baa3 NR $ 999 5,000 California Health Facilities Financing Authority Revenue Refunding, Insured Health Facilities, (Mark Twain Project) Series 1996, (MBIA Insured), 6.000% 07/01/16................................... Aaa AAA 5,745 1,000 California Health Facilities Financing Authority Revenue, (Kaiser Permanente Project) Series 1998B, 5.250% 10/01/13................................... A3 A 1,069 3,500 California Health Facilities Financing Authority, Revenue, (Cedars-Sinai Medical Center Project) Series 1999A, 6.125% 12/01/19................................... A3 NR 3,909 3,000 California Health Facilities Financing Authority, Revenue, (Kaiser Permanente Project) Series 1998A, (FSA Insured), 5.000% 06/01/24................................... Aaa AAA 3,096 1,510 California Housing Finance Agency Revenue, Multi- Unit Rental Housing, Series 1992B-II, 6.700% 08/01/15................................... Aa3 A+ 1,542 2,000 California Housing Finance Agency, Home Mortgage Revenue, Series 1994F-3, AMT, (MBIA/FHA/VA Insured), 6.100% 08/01/15................................... Aaa AAA 2,080 2,750 California Housing Finance Agency, Home Mortgage Revenue, Series 1997I, AMT, (MBIA Insured), 5.650% 08/01/17................................... Aaa AAA 2,928 4,970 California Housing Finance Agency, Home Mortgage Revenue, Series 1997I, AMT, (MBIA Insured), 5.750% 02/01/29................................... Aaa AAA 5,207 14,535 California Housing Finance Agency, Revenue, Series 2001M, AMT, (FSA Insured), 5.430%& 08/01/32.................................. Aaa AAA 2,590
SEE NOTES TO FINANCIAL STATEMENTS. 78 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 2,050 California Housing Finance Agency, Single-Family Mortgage Revenue, Series 1997B-3, Class I, AMT, (FHA Insured), 5.400% 08/01/28................................... Aaa AAA $ 2,115 2,500 California Infrastructure & Economic Development Bank Revenue, (Kaiser Hospital Assistant I-LLC Project) Series 2001A, 5.550% 08/01/31................................... NR A 2,644 2,000 California Maritime Infrastructure Authority Airport Revenue, San Diego Unified Port District Airport, Series 1995, (AMBAC Insured), 5.500% 11/01/05................................... Aaa AAA 2,216 1,000 California Pollution Control Financing Authority, PCR, (Southern California Edison Company Project) Series 1992B, AMT, 6.400% 12/01/24................................... Ba2 BB 992 3,000 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project) Series 1993L, 5.700% 12/01/16................................... Aa2 AA 3,121 8,000 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project) Series 1997S, 5.000% 12/01/17................................... Aa2 AA 8,574 2,600 California State, GO, (FGIC Insured), 5.250% 09/01/30................................... Aaa AAA 2,752 2,000 California State, GO, (For Previous Veterans Project) Series 2000BJ, AMT, 5.650% 12/01/24................................... A1 AA- 2,100 1,675 California State, GO, Series 1991, 6.600% 02/01/10................................... A1 A+ 2,024 1,000 California State, GO, Series 1993, 5.500% 04/01/13................................... A1 A+ 1,179 20 California State, GO, Series 1995, Prerefunded 03/01/05 @ 101, 5.750% 03/01/09................................... A1 A+ 22
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 10 California State, GO, Series 1995, Prerefunded 03/01/05@ 101, 5.750% 03/01/09................................... A1 A+ $ 11 2,000 California State, GO, Series 2000, 5.250% 09/01/24................................... A1 A+ 2,103 3,000 California State, GO, Series 2000, 5.625% 05/01/26................................... A1 A+ 3,285 65 California State, GO, Unrefunded Balance, 5.750% 03/01/09................................... A1 A+ 70 4,000 California State, Public Works Board, Lease Revenue, (Department of Corrections State Prison Project) Series 1993E, 5.500% 06/01/19................................... A2 A 4,165 2,000 California Statewide Communities Development Authority, Muti-Family Revenue Refunding, (Quail Ridge Apartments Project) Series 2002E-1, 5.375% 07/01/32................................... NR A 2,029 6,675 California, Statewide Communities Development Authority, Apartment Development Revenue Refunding, (Irvine Apartment Communities Project) Series 1998A-4, Mandatory Put 05/15/13 @ 100, 5.250% 05/15/25................................... Baa2 BBB 7,079 1,835 California, Statewide Communities Development Authority, Certificates of Participation, Series 1999, (FSA Insured), 5.500% 08/15/19................................... Aaa AAA 2,061 2,000 California, Statewide Communities Development Authority, Multi-Family Revenue Refunding, (Archstone/Oakridge Housing Project) Series 1999E, Mandatory Put 06/01/08 @100, 5.300% 06/01/29................................... Baa1 BBB+ 2,116
SEE NOTES TO FINANCIAL STATEMENTS. 79 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 3,000 California, Statewide Communities Development Authority, Revenue Certificates of Participation, (St. Joseph Health Systems Project) Series 1993, 5.500% 07/01/23................................... Aa3 AA- $ 3,074 2,500 California, Statewide Communities Development Authority, Revenue Certificates of Participation, Series 1993, 5.400% 11/01/15................................... A3 NR 2,582 3,000 California, Statewide Communities Development Authority, Revenue, Certificates of Participation, (John Muir/Mount Diablo Health Systems Project) Series 1997, (MBIA Insured), 5.125% 08/15/17................................... Aaa AAA 3,266 1,500 Coachella Valley, California, Park and Recreation District Improvement Board Revenue Refunding, (Reassessment District 94-1-INDIO Project) Series 1994, (MBIA Insured), Prerefunded 09/02/04 @ 102, 6.200% 09/02/16................................... Aaa AAA 1,668 1,615 Central Valley, California, Financing Authority, Cogeneration Project Revenue Refunding, (Carson Ice-General Project) Series 1998, (MBIA Insured), 5.250% 07/01/12................................... Aaa AAA 1,827 4,000 Central Valley, California, Financing Authority, Cogeneration Project Revenue, (Carson Ice Project) Series 1993, 6.000% 07/01/09................................... NR BBB 4,143 440 Chino, California, Unified School District, Certificates of Participation, (Land Acquisition Project) Series 1994A, (FSA Insured), Prerefunded 09/01/04 @ 102, 6.600% 09/01/14................................... Aaa AAA 492
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 2,000 Daly City, California, Housing Development Finance Agency, Mobile Home Park Revenue, (Francisan Acquisition Project) Series 2002A, 5.850% 12/15/32................................... NR A- $ 2,103 850 Del Mar, California, Race Track Authority, Revenue Refunding, Series 1996, 6.000% 08/15/06................................... NR NR 899 1,400 Del Mar, California, Race Track Authority, Revenue Refunding, Series 1996, 6.000% 08/15/08................................... NR NR 1,536 1,000 Del Mar, California, Race Track Authority, Revenue Refunding, Series 1996, 6.200% 08/15/11................................... NR NR 1,109 2,000 East Bay Municipal Utilities District, California, Water Systems Revenue Refunding, Series 1996, (FGIC Insured), 5.000% 06/01/16................................... Aaa AAA 2,177 2,750 East Bay Municipal Utilities District, California, Water Systems Revenue, Series 2001, (MBIA Insured), 5.000% 06/01/26................................... Aaa AAA 2,866 1,000 Eastern Municipal Water District, California, Water and Sewer Certificates of Participation, Series 1991, (FGIC Insured), 6.750% 07/01/12................................... Aaa AAA 1,280 2,500 Elsinore Valley Municipal Water District, California, Certificates of Participation Refunding, Series 1992A, (FGIC Insured), 6.000% 07/01/12................................... Aaa AAA 3,101 925 Emeryville, California, Public Financing Authority, Revenue, Unrefunded Balance, (Redevelopment Project) Series 1993A, 6.500% 05/01/21................................... NR BBB+ 945
SEE NOTES TO FINANCIAL STATEMENTS. 80 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 3,000 Escondido JT Powers Financing Authority, California, Lease Revenue, (California Center for the Arts Project) Series 1995, (AMBAC Insured), 6.000% 09/01/18................................... Aaa AAA $ 3,377 4,000 Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding, Series 1999, 5.750% 01/15/40................................... Baa3 BBB- 4,145 2,000 Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding, Series 1999, (MBIA Insured), 5.125% 01/15/15................................... Aaa AAA 2,213 2,000 Foothill/Eastern Corridor Agency, California, Toll Road Revenue, Sr. Lien, Series 1995, (MBIA-IBC Insured), 5.000% 01/01/35................................... Aaa AAA 2,063 2,000 Foothill/Eastern Corridor Agency, California, Toll Road Revenue, Sr. Lien, Series 1995A, Prerefunded 01/01/10 @ 100, 6.000% 01/01/16................................... Aaa AAA 2,414 1,965 Fremont, California, Public Financing Authority, Revenue, (Local Improvement District 39R Project) Series 1996, 6.000% 09/01/11................................... NR NR 2,019 5,000 Fresno, California, Sewer Revenue, Series 1993A-1, (AMBAC Insured), 6.250% 09/01/14................................... Aaa AAA 6,325 1,000 Industry California Urban Development Agency, Tax Allocation Refunding, (Transportation Distribution Project) Series 1992-3, Prerefunded 11/01/02 @ 101.75, 6.900% 11/01/16................................... NR A- 1,022 2,000 Inland Empire, California, Solid Waste Authority, Revenue, (Landfill Improvement Financing Project) Series 1996B, AMT, (FSA Insured), 6.250% 08/01/11................................... Aaa AAA 2,368
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,000 Lafayette, California, GO, 6.000% 07/15/25................................... NR AA $ 1,050 1,995 Lafayette, California, GO, Series 2002, 5.125% 07/15/25................................... NR AA 2,117 3,050 Larkspur, California, School District GO, Series 2000A, 5.250% 08/01/25................................... Aa3 AA 3,252 3,000 Long Beach, California, Harbor Revenue, Series 1995, Amt, (MBIA Insured), 5.375% 05/15/20................................... Aaa AAA 3,136 3,000 Long Beach, California, Harbor Revenue, Series 2000A, AMT, 5.375% 05/15/24................................... Aa3 AA- 3,189 6,000 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue, Series 2000A, (FGIC Insured), 5.250% 07/01/30................................... Aaa AAA 6,376 2,500 Los Angeles County, California, Public Works Financing Authority. Lease Revenue, (Multiple Capital Facilities Project VI) Series 2000A, (AMBAC Insured), 5.625% 05/01/26................................... Aaa AAA 2,731 3,000 Los Angeles, California, Convention and Exhibition Center Authority, Lease Revenue Refunding, Series 1993A, (MBIA-IBC Insured), 6.000% 08/15/10................................... Aaa AAA 3,648 3,000 Los Angeles, California, Department of Water and Power, Waterworks Revenue, Series 2001A, 5.125% 07/01/41................................... Aa3 AA 3,123 120 Los Angeles, California, Department Water and Power Electric Plant Revenue, Prerefunded 09/01/03 @ 102, 5.750% 09/01/12................................... Aaa AA- 127 125 Los Angeles, California, Department Water and Power Electric Plant Revenue, Series 1993, 5.750% 09/01/12................................... Aa3 AA- 132
SEE NOTES TO FINANCIAL STATEMENTS. 81 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,255 Los Angeles, California, Department Water and Power Electric Plant Revenue, Unrefunded Balance, 5.750% 09/01/12................................... Aa3 AA- $ 1,307 3,000 Los Angeles, California, Department Water and Power Waterworks Revenue, Series 2001A, (FGIC-TCRS Insured), 5.125% 07/01/41................................... Aaa AAA 3,134 3,000 Los Angeles, California, GO, Series 1999B, Prerefunded 09/01/09 @ 101, 5.250% 09/01/14................................... AA2 AA 3,536 3,750 Los Angeles, California, Parking Revenue, Series 1999A, (AMBAC Insured), 5.250% 05/01/29................................... Aaa AAA 3,966 1,500 Los Angeles, California, Waste Water Systems Revenue Refunding, Series 1993A, (MBIA Insured), 5.800% 06/01/21................................... Aaa AAA 1,558 1,000 M-S-R Public Power Agency, California Revenue Refunding, (San Juan Project) Series 1993F, 6.000% 07/01/08................................... Aaa AAA 1,054 1,115 Manhattan Beach, California, Unified School District Certificates of Participation, Series 1995A, (MBIA Insured), Prerefunded 08/01/05 @ 102, 5.750% 08/01/20................................... Aaa AAA 1,272 3,635 Metropolitan Water District of Southern California, Waterworks Revenue Refunding, Series 1993A, 5.750% 07/01/21................................... Aa2 AA 4,361 2,865 Metropolitan Water District of Southern California, Waterworks Revenue, Series 1993A, 5.750% 07/01/21................................... Aa2 AA 3,415
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 2,500 Metropolitan Water District, Southern California Waterworks Revenue, Series 1995A, (MBIA Insured), Prerefunded 07/01/05 @ 102, 5.500% 07/01/25................................... Aaa AAA $ 2,826 2,000 Metropolitan Water District, Southern California, Waterworks Revenue, Series 1997A, 5.000% 07/01/26................................... Aa2 AA 2,065 2,000 Monterey County, California, Certificates of Participation, Series 2001, 5.000% 08/01/32................................... Aaa NR 2,076 1,000 Natomas, California, Unified School District, GO, Series 1993A, (MBIA Insured), 5.750% 09/01/17................................... Aaa AAA 1,035 2,500 Northridge Water District, California, Revenue, Certificates of Participation, Series 1996, (AMBAC Insured), 5.250% 02/01/18................................... Aaa AAA 2,717 2,095 Oak Park, California, Unified School District, GO, Series 2000, (FSA Insured), 3.930%& 05/01/14.................................. Aaa AAA 1,335 1,000 Oakland, California, State Building Authority, Lease Revenue, (Elihu M. Harris Project) Series 1998A, (AMBAC Insured), 5.000% 04/01/17................................... Aaa AAA 1,066 3,000 Orange County, California, Airport Revenue Refunding, Series 1997, AMT, (MBIA Insured), 5.500% 07/01/10................................... Aaa AAA 3,353 2,500 Pasadena, California, Community Development Commission, Multi-Family Housing Revenue, (Civic Center Project) Series 1991A, AMT, (FSA Insured), 6.400% 12/01/12................................... Aaa AAA 2,558
SEE NOTES TO FINANCIAL STATEMENTS. 82 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 5,270 Pleasanton-Suisun City, California, Home Financing Authority, Home Mortgage Revenue, Municipal Multiplier, Series 1984A, (MBIA VEREX Insured), 4.320%& 10/01/16.................................. Aaa AAA $ 2,897 510 Pomona, California, Public Financing Authority Revenue, Series 1994L, Prerefunded 02/01/04@102, (CAPMAC-ITC Insured), 5.750% 02/01/20................................... NR AAA 550 1,135 Pomona, California, Public Financing Authority Revenue, Unrefunded Balance, Series 1994L, (CAPMAC-ITC Insured), 5.750% 02/01/20................................... NR AAA 1,207 7,500 Port Oakland, California, Port Revenue Refunding, Series 1997H, AMT, (MBIA Insured), 5.500% 11/01/15................................... Aaa AAA 8,278 2,500 Poway, California, Certificates of Participation Refunding, (Poinsettia Mobilehome Park Project) Series 1992, (FSA Insured), 6.375% 06/01/18................................... Aaa AAA 2,569 4,000 Rancho, California, Water District, Financing Authority, Revenue Refunding, Series 1995, (FGIC Insured), 5.900% 11/01/15................................... Aaa AAA 4,541 2,000 Sacramento County, California, Financing Authority, Revenue, Series 2001, 5.000% 12/01/26................................... Aaa AAA 2,084 3,000 Sacramento County, California, Sanitation District Financing Authority, Revenue, Series 1993, Prerefunded 12/01/18 @ 100, 4.750% 12/01/23................................... Aaa AA 3,063 295 Sacramento, California, Municipal Utility District Electric Revenue, Unrefunded Balance, Series 1994I, (MBIA Insured), 6.000% 01/01/24................................... Aaa AAA 314
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,000 Sacramento, California, Municipal Utility District Electric Revenue Refunding, Series 2001P, (FSA Insured), 5.250% 08/15/20................................... Aaa AAA $ 1,089 145 Sacramento, California, Municipal Utility District Electric Revenue, Series 1994I, (MBIA Insured) Prerefunded 01/01/04 @ 102, 6.000% 01/01/24................................... Aaa AAA 156 2,000 Sacramento, California, Municipal Utility District Electric Revenue, Series 2001N, (MBIA Insured), 5.000% 08/15/28................................... Aaa AAA 2,083 2,900 Sacramento, California, Power Authority Revenue, (Cogeneration Project) Series 1995, 5.875% 07/01/15................................... NR BBB- 3,096 2,000 San Diego County, California, Water Authority, Water Revenue Certificates of Participation, Series 1998A, 5.125% 05/01/16................................... Aa3 AA 2,193 1,400 San Diego, California, Public Facilities Financing Authority, Sewer Revenue, Series 1999B, (FGIC Insured), 5.000% 05/15/29................................... Aaa AAA 1,455 2,000 San Diego, California, Special Tax, Community Facilities District No. 1, Series 1995B, Prerefunded 09/01/05 @ 102, 7.000% 09/01/15................................... NR NR 2,359 1,800 San Francisco, California, City and County Airport Commission, International Airport Revenue, Series 1995-7B, (FGIC Insured), 6.150% 05/01/16................................... Aaa AAA 1,943 2,000 San Francisco Bay Area, California, Rapid Transportation District, Sales Tax Revenue, Series 2001, (AMBAC Insured), 5.000% 07/01/26................................... Aaa AAA 2,085
SEE NOTES TO FINANCIAL STATEMENTS. 83 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 2,250 San Francisco, California, City and County Airport Commission, International Airport Revenue Refunding, Series 2001-27B, (FGIC Insured), 5.000% 05/01/21................................... Aaa AAA $ 2,375 3,000 San Francisco, California, City and County Airport Commission, International Airport Revenue, Series 1996-2-10A, AMT, (MBIA Insured), 5.700% 05/01/26................................... Aaa AAA 3,228 835 San Francisco, California, City and County Airports Commission, International Airport Revenue, Series 1993-2, Unrefunded Balance, (MBIA Insured), 6.750% 05/01/13................................... Aaa AAA 873 2,000 San Francisco, California, City and County Sewer Revenue Refunding, (AMBAC Insured), 5.500% 10/01/15................................... Aaa AAA 2,046 1,750 San Joaquin County, California, Certificates of Participation, (Capital Facilities Project) Series 1993, (MBIA Insured), 5.500% 11/15/13................................... Aaa AAA 2,099 1,455 San Joaquin Hills, California, Transportation Corridor Agency, Toll Road Revenue, Sr. Lien, Series 1993, 7.400% 01/01/07................................... Aaa AAA 1,778 3,670 San Jose Redevelopment Agency, California, Tax Allocation, (Merged Area Redevelopment Project) Series 1993, (MBIA Insured), 6.000% 08/01/15................................... Aaa AAA 4,547 1,000 San Juan, California, M-S-R Public Power Agency, Revenue Refunding, (San Juan Project) Series 2001I, (MBIA Insured), 5.000% 07/01/12................................... Aaa AAA 1,139
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 2,715 San Mateo County, California, JT Powers Authority, Lease Revenue Refunding, Series 1999A, (FSA Insured), 5.000% 07/15/29................................... Aaa AAA $ 2,823 2,000 San Mateo County, California, JT Powers Authority, Lease Revenue, (Capital Project) Series 1997A, (FSA Insured), 5.125% 07/15/32................................... Aaa AAA 2,083 2,000 Saratoga, California, GO, (Saratoga Community Library Project), Series 2001, (MBIA Insured), 5.250% 08/01/31................................... Aaa AAA 2,128 1,000 Southern California Rapid Transit District, Certificates of Participation, (Workers Compensation Fund Project) Series 1990, (MBIA Insured), 6.000% 07/01/10................................... Aaa AAA 1,024 1,000 Southern California, Public Power Authority, Power Project Revenue Refunding, (Palo Verde Project) Series 1993A, 5.500% 07/01/12................................... A2 AA- 1,045 4,000 Southern California, Public Power Authority, Power Project Revenue, Series 1989, 6.750% 07/01/13................................... A2 A 5,127 1,500 Sulphur Springs, California, Unified School District Special Tax, (Community Facility District) Series 2002-1-A, 6.000% 09/01/33................................... NR NR 1,510 2,965 Tahoe Truckee, California, Unified School District, GO, District No. 2, Series 1999A, (FGIC Insured), 5.000%& 08/01/24.................................. Aaa AAA 1,009 3,780 Tahoe Truckee, California, Unified School District, GO, Series 1999A, (FGIC Insured), 4.960%& 08/01/23.................................. Aaa AAA 1,362
SEE NOTES TO FINANCIAL STATEMENTS. 84 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,000 Torrance, California, Hospital Revenue, (Torrance Memorial Medical Center Project) Series 2001A, 5.500% 06/01/31................................... A1 A+ $ 1,047 1,000 Tri City, California, Hospital District Revenue, Series 1991, (FSA Insured), 6.000% 02/01/22................................... Aaa AAA 1,003 1,220 Union City, California, Community Redevelopment Agency, Tax Allocation, (Community Redevelopment Project) Series 1993, (AMBAC Insured), 5.850% 10/01/23................................... Aaa AAA 1,280 8,500 University of California, Hospital Revenue, (University of California Medical Center Project) Series 1996, (AMBAC Insured), 5.750% 07/01/24................................... Aaa AAA 9,272 3,000 University of California, Hospital Revenue, (University of California Medical Center Project) Series 1996, (AMBAC Insured), 6.000% 07/01/26................................... Aaa AAA 3,360 1,610 West Contra Costa, California, Unified School District GO Refunding, Series 2001A, (MBIA Insured), 5.600% 02/01/20................................... Aaa AAA 1,907 5,000 West Covina, California, Redevelopment Agency, Community Facilities District Special Tax Refunding, (Fashion Plaza Project) Series 1996, 6.000% 09/01/17................................... NR AA 6,027
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,025 Westwood, California, Unified School District, GO, Series 1996, 6.500% 08/01/21...................... NR BBB $ 1,094 -------- 331,749 -------- PUERTO RICO -- 6.3% 2,250 Puerto Rico, Commonwealth Highway and Transportation Authority, Transportation Revenue, Series 1998A, (MBIA-IBC Insured), 4.750% 07/01/38................................... Aaa AAA 2,295 1,500 Puerto Rico, Commonwealth Infrastructure Financing Authority, Special Obligation, Series 2000A, 5.500% 10/01/32................................... Aaa AAA 1,668 3,000 Puerto Rico, Commonwealth, GO, Public Improvement, Series 2001A, 5.375% 07/01/28................................... Baa1 A- 3,184 8,000 Puerto Rico, Electric Power Authority, Power Revenue, Series 2000HH, (FSA Insured), 5.250% 07/01/29................................... Aaa AAA 8,519 5,000 Puerto Rico, Electric Power Authority, Revenue, 6.000% 07/01/14................................... Baa1 A- 5,409 1,750 Puerto Rico, Public Financing Corporation Commonwealth Revenue, Series 1998A, 5.000% 06/01/26................................... Baa3 BBB+ 1,790 -------- 22,865 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $322,216)....................................................... 354,614 --------
SEE NOTES TO FINANCIAL STATEMENTS. 85 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
SHARES VALUE (000) (000) - ----------------------------------------------------------------------------------- INVESTMENT COMPANIES - 0.4% (Cost $1,443) 1,443 Nations Tax-Exempt Reserves, Trust Class#................................................ 1,443 -------- TOTAL INVESTMENTS (Cost $323,659*).................................. 97.6% 356,057 -------- OTHER ASSETS AND LIABILITIES (NET).................. 2.4% Receivable for Fund shares sold............................... $ 6,087 Dividends receivable.......................................... 2 Interest receivable........................................... 4,591 Payable for Fund shares redeemed.............................. (632) Investment advisory fee payable............................... (99) Administration fee payable.................................... (58) Shareholder servicing and distribution fees payable........... (41) Distributions payable......................................... (942) Accrued Trustees' fees and expenses........................... (41) Accrued expenses and other liabilities........................ (60) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)........................................... 8,807 -------- NET ASSETS.......................................... 100.0% $364,864 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 567 Accumulated net realized gain on investments sold............. 69 Net unrealized appreciation of investments.................... 32,398 Paid-in capital............................................... 331,830 -------- NET ASSETS.................................................... $364,864 ========
VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($202,432,141 / 26,156,761 shares outstanding).............. $7.74 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($148,199,870 / 19,114,390 shares outstanding).............................. $7.75 ======== Maximum sales charge.......................................... 4.75% Maximum offering price per share.............................. $8.14 INVESTOR B SHARES: Net asset value and offering price per share** ($9,204,447 / 1,186,655 shares outstanding)................. $7.76 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($5,027,515 / 650,514 shares outstanding)................... $7.73 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations California Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 10.34% MBIA 21.71%
Nations California Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 10.82% Housing Revenue 11.35% Lease Revenue 10.98% Pre-Refunded 10.02% Transportation Revenue 11.37% Water Revenue 14.95%
SEE NOTES TO FINANCIAL STATEMENTS. 86 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 100.6% FLORIDA -- 93.1% $2,000 Alachua County, Florida, Health Facilities Authority, Revenue, (Shands Hospital at the University of Florida Project) Series 1992, (MBIA Insured), 6.100% 12/01/05................................... Aaa AAA $ 2,015 1,000 Bay County, Florida, PCR Refunding, (International Paper Company Project) Series 1998A, 5.100% 09/01/12................................... Baa2 BBB 1,050 1,000 Bay Medical Center, Florida, Hospital Revenue Refunding, (Bay Medical Center Project) Series 1996, (AMBAC Insured), 5.000% 10/01/05................................... Aaa AAA 1,091 2,000 Bay Medical Center, Florida, Hospital Revenue Refunding, (Bay Medical Center Project) Series 1996, (AMBAC Insured), 5.450% 10/01/12................................... Aaa AAA 2,253 1,470 Boca Raton, Florida, GO, Series 2000, 5.000% 07/01/13................................... Aaa AAA 1,628 2,000 Boca Raton, Florida, Water and Sewer Revenue Refunding, Series 1992, 5.600% 10/01/04................................... Aa1 AA+ 2,020 1,000 Brevard County, Florida, Health Facilities Authority, Revenue Refunding, (Wuesthoff Memorial Hospital Project) Series 1996, (MBIA Insured), 6.250% 04/01/06................................... Aaa AAA 1,135 2,000 Broward County, Florida, Solid Waste Systems Revenue, Series 1993A, (MBIA Insured), 5.500% 07/01/04................................... Aaa AAA 2,097 3,715 Capital Trust Agency, Florida, Multi-Family Housing Revenue, (River Bend Apartments Project), Series 2002A, 5.500% 10/01/22................................... A3 NR 3,718
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $3,300 Capital Trust Agency, Florida, Multi-Family Housing Revenue, (Shadow Run Project) Series 2000A, (FNMA COLL), Mandatory Put 11/01/10 @ 100, 5.150% 11/01/30................................... Aaa NR $ 3,649 2,275 Clearwater, Florida, Water and Sewer Authority, Revenue Refunding, Series 1998, (FGIC Insured), 3.800%& 12/01/11.................................. Aaa AAA 1,611 1,000 Clearwater, Florida, Water and Sewer Authority, Revenue Refunding, Series 1998, (FGIC Insured), 4.060%& 12/01/13.................................. Aaa AAA 632 3,000 Clearwater, Florida, Water and Sewer Authority, Revenue, Series 1993, (AMBAC Insured), 5.000% 12/01/02................................... Aaa AAA 3,018 2,250 Collier County, Florida, Housing Finance Authority, Multi-Family Housing Revenue, (Goodlette Arms Project) Series 2002A-1, (FNMA COLL), Mandatory Put 02/15/12 @ 100, 4.900% 02/15/32................................... Aaa NR 2,444 1,000 Dade County, Florida, Aviation Revenue Refunding, Series 1994B, AMT, (AMBAC Insured), 6.300% 10/01/05................................... Aaa AAA 1,105 3,650 Dade County, Florida, Aviation Revenue, (Miami International Airport Project) Series 1997B, AMT, (FSA Insured), 5.000% 10/01/06................................... Aaa AAA 3,998 2,000 Delray Beach, Florida, Water and Sewer Revenue Refunding, Series 1993A, (AMBAC Insured), 5.000% 10/01/02................................... Aaa AAA 2,000
SEE NOTES TO FINANCIAL STATEMENTS. 87 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,000 Delray Beach, Florida, Water and Sewer Revenue Refunding, Series 1993A, (AMBAC Insured), 5.000% 10/01/03................................... Aaa AAA $ 1,035 1,565 Dunes, Florida, Community Development District, Revenue Refunding, (Intracoastal Waterway Bridge Project) Series 1993, 5.300% 10/01/03................................... NR BBB 1,612 1,900 Dunes, Florida, Community Development District, Revenue Refunding, (Intracoastal Waterway Bridge Project) Series 1993, 5.400% 10/01/04................................... NR BBB 1,993 1,750 Duval County, Florida, Housing Finance Authority, Multi-Family Mortgage Revenue Refunding, (The Cove Project) Series 1992, 6.100% 10/01/02................................... NR AAA 1,750 1,910 Escambia County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue, (Multi-County Program) Series 2000A, AMT, (MBIA/FHA/VA Insured), 6.300% 10/01/20................................... Aaa NR 2,077 1,700 Escambia County, Florida, Utilities Authority, Systems Revenue, Series 1996, (FGIC Insured), 5.625% 01/01/21................................... Aaa AAA 1,817 4,000 Florida State, Board of Education, Lottery Revenue, Series 2001B, 5.000% 07/01/20................................... Aaa AAA 4,244 1,000 Florida State, Board of Education, Public Education Capital Outlay GO Refunding, Series 1993A, 5.000% 06/01/08................................... Aa2 AA+ 1,115
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $3,000 Florida State, Board of Education, Public Education Capital Outlay GO Refunding, Series 1995A, 5.500% 06/01/14................................... Aa2 AA+ $ 3,277 4,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1993D, 5.200% 06/01/11................................... Aa2 AA+ 4,125 2,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.000% 06/01/18................................... Aa2 AA+ 2,081 5,000 Florida State, Department of Environmental Protection & Preservation, Revenue, (Florida Forever Project), Series 2001B, (MBIA Insured), 5.000% 07/01/09................................... Aaa AAA 5,612 1,500 Florida State, Department of Transportation GO, (Right of Way Bridge Project) Series 1996, 5.375% 07/01/26................................... Aa2 AA+ 1,558 5,495 Florida State, Division of Bond Financing, Department of General Services Revenue, (Department of Natural Resources -- Preservation 2000 Project) Series 1993A, (FSA Insured), Prerefunded 07/01/03 @ 101, 5.300% 07/01/06................................... Aaa AAA 5,707 2,000 Florida, Greater Orlando Aviation Authority, Revenue Refunding, Series 1992B, (FGIC Insured), 6.200% 10/01/03................................... Aaa AAA 2,040 2,500 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (Altamonte Project) Series 1994C, Mandatory Put 12/01/03 @ 100, 7.000% 12/01/24................................... NR BBB+ 2,573
SEE NOTES TO FINANCIAL STATEMENTS. 88 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,000 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (United Dominion Realty Trust -- Andover Project) Series 1996E, AMT, Mandatory Put 05/01/08 @ 100, 6.350% 05/01/26................................... NR BBB+ $ 1,050 720 Florida, Housing Finance Agency, Revenue Refunding, (The Vineyards Project) Series 1995H, 5.875% 11/01/05................................... NR BBB- 743 1,000 Florida, Housing Finance Agency, Revenue Refunding, (The Vineyards Project) Series 1995H, 6.400% 11/01/15................................... NR BBB- 1,053 2,105 Florida, Housing Finance Corporation, Revenue, (Homeowner Mortgage Project) Series 1998-1, (MBIA Insured), 4.950% 07/01/11................................... Aaa AAA 2,231 1,000 Florida, Ports Financing Commission, Revenue, (State Transportation Trust Fund Project) Series 1996, AMT, (MBIA Insured), 5.375% 06/01/16................................... Aaa AAA 1,064 1,000 Gainesville, Florida, Utility Systems Revenue, Series 1996A, 5.750% 10/01/07................................... Aa3 AA 1,151 2,000 Greater Orlando, Aviation Authority, Revenue Refunding, Series 1992D, (AMBAC Insured), 5.600% 10/01/02................................... Aaa AAA 2,000 1,375 Hialeah, Florida, Capital Improvement Revenue, Series 1993, 5.500% 10/01/18................................... Baa1 NR 1,407 3,170 Hillsborough County, Florida, Aviation Authority, Revenue Refunding, (Tampa International Airport Project) Series 1997A, AMT, (AMBAC Insured), 5.750% 10/01/07................................... Aaa AAA 3,544
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,000 Hillsborough County, Florida, Capital Improvement Revenue Refunding, (County Center Project) Series 1996B, (MBIA Insured), 5.000% 07/01/11................................... Aaa AAA $ 1,097 1,000 Hillsborough County, Florida, Industrial Development Authority, PCR Refunding, (Tampa Electric Company Project) Series 1992, Mandatory Put 08/01/07 @ 100, 4.000% 05/15/18................................... NR BBB 1,006 4,000 Hillsborough County, Florida, Industrial Development Authority, PCR, (Tampa Electrical Company Project) Series 2002, 5.100% 10/01/13................................... A2 BBB 4,292 1,500 Indian River County, Florida, School District, GO Refunding, Series 1993, (FSA Insured), 5.000% 04/01/03................................... Aaa AAA 1,527 785 Indian River County, Florida, School District, GO, Series 1993, (FSA Insured), Prerefunded 4/01/03 @ 102 5.000% 04/01/04................................... Aaa AAA 814 745 Indian River County, Florida, School District, GO, Series 1993, (FSA Insured), Prerefunded 4/01/03 @ 102, 5.100% 04/01/05................................... Aaa AAA 773 1,015 Indian River County, Florida, School District, GO, Unrefunded Balance, Series 1993 5.000% 04/01/04................................... Aaa AAA 1,052 1,005 Indian River County, Florida, School District, GO, Unrefunded Balance, Series 1993, 5.100% 04/01/05................................... Aaa AAA 1,043 1,000 Indian River County, Florida, Water and Sewer Revenue Refunding, Series 1993A, (FGIC Insured), 5.200% 09/01/05................................... Aaa AAA 1,094
SEE NOTES TO FINANCIAL STATEMENTS. 89 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,800 Jackonsville, Florida, Economic Development Communities Health Care Facilities Revenue, (Mayo Clinic Jacksonville Project) Series 2001A, 5.500% 11/15/36................................... VMIG1 AA $ 1,905 2,000 Jacksonville, Florida, Electric Systems Authority, Revenue Refunding, Series 1995-11, 5.375% 10/01/15................................... Aa2 AA 2,145 1,000 Jacksonville, Florida, Electric Systems Authority, Revenue, Series 1993A, 5.200% 10/01/02................................... Aa2 AA 1,000 1,000 Jacksonville, Florida, Excise Tax Revenue Refunding, Series 1995A, (FGIC Insured), 5.000% 10/01/09................................... Aaa AAA 1,126 3,450 Jacksonville, Florida, GTD, Entitlement Improvement Revenue Refunding, Series 2002, (FGIC Insured), 5.375% 10/01/18................................... Aaa AAA 3,856 4,200 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue, Series 1997B, 5.400% 08/15/18................................... Aaa NR 4,485 3,000 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), Prerefunded 10/01/05 @ 101, 5.375% 10/01/18................................... Aaa AAA 3,344 2,500 Jea, Florida, St. John's River Power Parkway Systems Revenue Refunding, Series 2002, 5.250% 10/01/13................................... Aa2 AA 2,848 1,000 Lakeland, Florida, Electricity and Water Revenue Refunding, Series 1990, (AMBAC Insured), 3.187%& 10/01/09.................................. Aaa AAA 801
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $2,000 Lakeland, Florida, Electricity and Water Revenue Refunding, Series 1992, 5.625% 10/01/04................................... A1 AA- $ 2,160 1,000 Lakeland, Florida, Water and Waste Water Revenue, Refunding and Improvement, Series 2002, 5.000% 10/01/27................................... Aa3 AA- 1,034 2,025 Marion County, Florida, Hospital District, Revenue Refunding, Series 1999, 5.250% 10/01/11................................... A2 NR 2,181 1,555 Melbourne, Florida, Water and Sewer Revenue, Series 2002B, (FGIC Insured), 4.360%& 10/01/16.................................. Aaa AAA 850 1,590 Melbourne, Florida, Water and Sewer Revenue, Series 2002B, (FGIC Insured), 4.480%& 10/01/17.................................. Aaa AAA 818 1,500 Miami Beach, Florida, GO Refunding, Series 1993, (FGIC Insured), 5.300% 09/01/03................................... Aaa AAA 1,553 1,810 Miami Beach, Florida, Water and Sewer Revenue, Series 1995, (FSA Insured), 5.375% 09/01/15................................... Aaa AAA 1,999 2,000 Miami, Florida, GO Refunding, Series 1992, (FGIC Insured), 5.600% 12/01/03................................... Aaa AAA 2,096 1,500 Miami-Dade County, Florida, Aviation Revenue Refunding, Series 1998A, AMT, 5.250% 10/01/07................................... Aaa AAA 1,668 5,365 Miami-Dade County, Florida, Special Obligation Revenue Refunding, Series 1997A, (MBIA Insured), 4.940%& 10/01/19.................................. Aaa AAA 2,273 1,060 Orange County, Florida, Health Facilities Authority, Revenue Refunding, (Lakeside Alternatives, Inc. Project) Series 1995, 6.250% 07/01/05................................... NR BBB 1,089
SEE NOTES TO FINANCIAL STATEMENTS. 90 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $4,640 Orange County, Florida, Health Facilities Authority, Revenue, (Orlando Regional Healthcare Project) Series 1996A, (MBIA Insured), 6.250% 10/01/08................................... Aaa AAA $ 5,553 1,405 Orange County, Florida, Health Facilities Authority, Revenue, Series 1993A, (MBIA Insured), 5.400% 11/01/02................................... Aaa AAA 1,410 2,800 Orange County, Florida, Health Facilities Authority, Revenue, Series 1993B, (MBIA Insured), 4.400% 10/01/02................................... Aaa AAA 2,800 555 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16................................... Aaa AAA 692 1,445 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16................................... Aaa AAA 1,821 1,165 Orange County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue, Series 1997A, AMT, (GNMA/FNMA COLL), 5.900% 09/01/19................................... NR AAA 1,234 8,000 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24................................... Aaa AAA 8,053 3,000 Orlando and Orange County, Florida, Expressway Authority, Revenue Refunding, Senior Lien, Series 1993, (AMBAC Insured), 5.000% 07/01/03................................... Aaa AAA 3,080
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $2,000 Orlando and Orange County, Florida, Expressway Authority, Revenue, Junior Lien, Series 1990, (FGIC Insured), 6.500% 07/01/10................................... Aaa AAA $ 2,450 1,000 Orlando, Florida, Greater Orlando Aviation Authority, Airport Facilities Revenue Refunding, Series 1997, AMT, (FGIC Insured), 5.125% 10/01/12................................... Aaa AAA 1,071 3,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding, Series 1992, 5.600% 10/01/03................................... Aa1 AA 3,123 2,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding, Series 1993B, Prerefunded 10/01/03 @ 102, 5.400% 10/01/08................................... Aa2 AA- 2,117 5,865 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding, Series 2001 5.000% 10/01/09................................... Aa1 AA 6,599 2,000 Palm Beach County, Florida, GO Refunding, Series 1998, 5.500% 12/01/11................................... Aa1 AAA 2,354 1,750 Palm Beach County, Florida, GO, Series 1994, 6.875% 12/01/03................................... Aa1 AAA 1,857 1,300 Palm Beach County, Florida, GO, Series 1994, 7.000% 12/01/04................................... Aa1 AAA 1,446 1,000 Palm Beach County, Florida, Health Facilities Authority, Hospital Revenue, (Good Samaritans Health System Project) Series 1993, 6.100% 10/01/05................................... Aaa NR 1,062
SEE NOTES TO FINANCIAL STATEMENTS. 91 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $4,050 Palm Beach County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue Refunding, Series 1999A, AMT, (GNMA/FNMA COLL), 4.850% 04/01/32................................... Aaa NR $ 4,339 2,000 Palm Beach County, Florida, Stadium Facilities Revenue, Series 1996, (MBIA Insured), 5.250% 12/01/16................................... Aaa AAA 2,232 2,070 Pembroke Pines, Florida, Consolidated Utilities Systems Revenue, Series 1992, (FGIC Insured), 6.250% 09/01/07................................... Aaa AAA 2,373 1,400 Pinellas County, Florida, Health Facilities Authority, Hospital Revenue, (Morton Plant Hospital Association Project) Series 1993, (MBIA Insured), 4.900% 11/15/02................................... Aaa AAA 1,406 2,000 Reedy Creek, Florida, GO, Series 1995A, (MBIA Insured), Prerefunded 06/01/05 @ 100, 5.750% 06/01/15................................... Aaa AAA 2,207 1,650 Sarasota County, Florida, Public Hospital Board, Revenue Refunding, (Sarasota Memorial Hospital Project) Series 1997B, (MBIA Insured), 5.000% 10/01/07................................... Aaa NR 1,841 1,750 Sarasota County, Florida, Public Hospital Board, Revenue Refunding, (Sarasota Memorial Hospital Project) Series 1998B, (MBIA Insured), 5.250% 07/01/11................................... Aaa AAA 2,007 1,000 Sarasota, Florida, Water and Sewer Utility Revenue Refunding, Series 1992, (FGIC Insured), 6.000% 10/01/02................................... Aaa AAA 1,000 1,000 South Broward, Florida, Hospital District, Revenue, Series 2002, 5.500% 05/01/22................................... A1 A+ 1,039
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $3,000 South Broward, Florida, Hospital District, Revenue, Series 2002, 5.600% 05/01/27................................... A1 A $ 3,124 2,000 St. Lucie County, Florida, School District, GO Refunding, Series 1992, (AMBAC Insured), 6.000% 07/01/03................................... Aaa AAA 2,047 1,000 St. Lucie County, Florida, School District, GO, Series 1997, (FGIC Insured), 5.875% 02/01/07................................... Aaa AAA 1,140 1,000 Tallahassee, Florida, Health Facilities Revenue Refunding, (Tallahassee Memorial Regional Medical Center Project) Series 1992A, (MBIA Insured), 5.750% 12/01/04................................... Aaa AAA 1,027 1,000 Tallahassee, Florida, Health Facilities Revenue Refunding, (Tallahassee Memorial Regional Medical Center Project) Series 1992B, (MBIA Insured), 5.750% 12/01/04................................... Aaa AAA 1,027 1,000 Tampa, Florida, Capital Improvement Authority, Hospital Revenue, (H. Lee Moffitt Cancer Project) Series 1999A, 4.875% 07/01/13................................... A3 A 1,037 2,000 Tampa, Florida, Health Systems Revenue, (Catholic Health Project) Series 1998A-1, (MBIA Insured), 4.875% 11/15/15................................... Aaa AAA 2,106 3,170 Tampa, Florida, Sports Authority, Local Optional Sales Tax Revenue, (Stadium Project) Series 1997, (MBIA Insured), 6.000% 01/01/07................................... Aaa AAA 3,623 3,000 Tampa, Florida, Tax Allocation, (Cigarette-H. Lee Moffitt Cancer Project) Series 1999, (AMBAC Insured), 5.000% 03/01/07................................... Aaa AAA 3,320
SEE NOTES TO FINANCIAL STATEMENTS. 92 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,000 Tampa, Florida, Water and Sewer Revenue, Series 1993A, (FGIC Insured), 5.000% 10/01/02................................... Aaa AAA $ 1,000 1,025 Venice, Florida, Health Facilities Revenue, (Venice Hospital Inc. Project) Series 1994, 5.300% 12/01/02................................... Aaa NR 1,032 1,000 Volusia County, Florida, Educational Facilities Authority, Educational Facilities Revenue, (Embry-Riddle Aeronautical University Project) Series 1996A, 6.125% 10/15/26................................... Baa2 NR 1,068 -------- 230,969 -------- GEORGIA -- 1.5% 2,000 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18................................... Ba1 BBB- 1,631 2,000 Marietta, Georgia, Housing Authority, Multifamily Revenue Refunding, (Wood Glen-RMKT Housing Project) Series 1994, Mandatory Put 07/01/04 @ 100, 4.750% 07/01/24................................... Baa2 BBB 2,007 -------- 3,638 -------- ILLINOIS -- 0.5% 1,620 Champaign County, Illinois, Community Unit School District No. 116 Urbana, GO, Series 1999C, (FGIC Insured), Prerefunded 01/01/09 @ 94.829, 3.363%& 01/01/10.................................. Aaa AAA 1,247 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- 2.0% $1,000 Calhoun County, South Carolina, Solid Waste Disposal Facility Revenue, (Carolina Eastman Company Project) Series 1992, AMT, 6.750% 05/01/17................................... A2 BBB+ $ 1,279 2,700 South Carolina State, Capital Improvement GO, Series 2001A, 3.500% 01/01/16................................... Aaa AAA 2,567 1,000 Tobacco Settlement Management Revenue, Series 2001B, 6.375% 05/15/28................................... A1 A 1,012 -------- 4,858 -------- TEXAS -- 1.6% 2,000 Dallas-Fort Worth, Texas, International Airport Facilities Improvement, Corporate Revenue Refunding, (American Airlines Project) Series 2000C, AMT, Mandatory Put 11/01/07 @ 100, 6.150% 05/01/29................................... B2 BB- 1,101 4,000 Texas State, Turnpike Authority, Dallas North Tollway Revenue, (President George Bush Turnpike Project) Series 1996, (AMBAC Insured), 3.720%& 01/01/11.................................. Aaa AAA 2,951 -------- 4,052 -------- VIRGINIA -- 1.9% 4,180 Arlington County, Virginia, Industrial Development Authority, Hospital Facility Revenue, (Virginia Hospital Arlington Health Systems Project), Series 2001, 5.500% 07/01/14................................... A2 NR 4,613 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $235,052)....................................................... 249,377 --------
SEE NOTES TO FINANCIAL STATEMENTS. 93 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
SHARES VALUE (000) (000) - ----------------------------------------------------------------------------------- INVESTMENT COMPANIES -- 0.3% (Cost $827) 827 Nations Tax-Exempt Reserves, Trust Class#..................... $ 827 -------- TOTAL INVESTMENTS (Cost $235,879*).................................. 100.9% 250,204 -------- OTHER ASSETS AND LIABILITIES (NET).................. (0.9)% Cash.......................................................... $ 1 Receivable for Fund shares sold............................... 458 Dividends receivable.......................................... 3 Interest receivable........................................... 4,295 Payable for Fund shares redeemed.............................. (363) Investment advisory fee payable............................... (40) Administration fee payable.................................... (40) Shareholder servicing and distribution fees payable........... (12) Distributions payable......................................... (819) Payable for investment securities purchased................... (5,613) Accrued Trustees' fees and expenses........................... (49) Accrued expenses and other liabilities........................ (136) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... (2,315) -------- NET ASSETS.......................................... 100.0% $247,889 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 211 Accumulated net realized loss on investments sold............. (841) Net unrealized appreciation of investments.................... 14,325 Paid-in capital............................................... 234,194 -------- NET ASSETS.................................................... $247,889 ======== VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($222,869,277 / 20,361,253 shares outstanding).............. $10.95 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($13,685,092 / 1,251,156 shares outstanding)................ $10.94 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $11.31 INVESTOR B SHARES: Net asset value and offering price per share** ($7,977,547 / 728,743 shares outstanding)................... $10.95 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($3,356,785 / 306,347 shares outstanding)................... $10.96 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Florida Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 14.64% MBIA 19.06%
Nations Florida Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 12.74% Housing Revenue 11.65% Pre-Refunded 15.16% Special Tax 11.22% Transportation Revenue 10.34%
SEE NOTES TO FINANCIAL STATEMENTS. 94 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 93.6% FLORIDA -- 87.1% $ 735 Alachua County, Florida, Health Facilities Authority, Revenue Refunding, (Santa Fe Healthcare Facilities, Inc. Project) Series 1993, 6.000% 11/15/09................................... Baa1 AAA $ 826 1,375 Bay County, Florida, PCR Refunding, (International Paper Company Project) Series 1998A, 5.100% 09/01/12................................... Baa2 BBB 1,444 2,550 Brevard County, Florida, Health Facilities Authority, Revenue, (Holmes Regional Medical Center, Inc. Project) Series 1996, (MBIA Insured), 5.625% 10/01/14................................... Aaa AAA 2,862 1,000 Canaveral, Florida, Port Authority, Port Improvement Revenue Refunding, Series 1996B, (FGIC Insured), 5.700% 06/01/13................................... Aaa AAA 1,125 1,000 Capital Trust Agency, Florida, Multi-Family Housing Revenue, (Shadow Run Project) Series 2000A, (FNMA COLL), Mandatory Put 11/01/10 @ 100, 5.150% 11/01/30................................... Aaa NR 1,106 2,250 Charlotte County, Florida, Utility Revenue Refunding, Series 1996A, (FGIC Insured), 5.625% 10/01/16................................... Aaa AAA 2,546 2,675 Collier County, Florida, Health Facilities Authority, Revenue Refunding, (Moorings, Inc. Project) Series 1994, 7.000% 12/01/19................................... NR A- 2,925 1,000 Collier County, Florida, Housing Finance Authority, Multi-Family Housing Revenue, (Goodlette Arms Project) Series 2002A-1, (FNMA COLL), Mandatory Put 02/15/12 @ 100, 4.900% 02/15/32................................... Aaa NR 1,086
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $2,500 Dade County, Florida, Aviation Revenue, Series 1996A, AMT, (MBIA Insured), 5.750% 10/01/12................................... Aaa AAA $ 2,751 1,935 Escambia County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue, (Multi-County Program) Series 2000A, AMT, (MBIA/FHA/VA Insured), 6.300% 10/01/20................................... Aaa NR 2,104 3,000 Florida State, Board of Education, Capital Outlay GO, Series 1997A, 5.000% 01/01/17................................... Aa2 AA+ 3,149 1,000 Florida State, Board of Education, Lottery Revenue, Series 2001B, 5.000% 07/01/20................................... Aaa AAA 1,061 1,000 Florida State, Board of Education, Public Education Capital Outlay GO Refunding, Series 1993A, 5.000% 06/01/08................................... Aa2 AA+ 1,115 2,500 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.250% 06/01/16................................... Aa2 AA+ 2,722 1,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.000% 06/01/18................................... Aa2 AA+ 1,040 2,830 Florida, Housing Finance Agency, Revenue, (Homeowner Mortgage Project) Series 1997-2, AMT, (MBIA Insured), 5.750% 07/01/14................................... Aaa AAA 3,022 1,525 Florida, Housing Finance Agency, Revenue, (Homeowner Mortgage Project) Series 1998-1, (MBIA Insured), 4.950% 01/01/11................................... Aaa AAA 1,616 3,000 Gainesville, Florida, Utility Systems Revenue, Series 1992B, 6.500% 10/01/11................................... Aa3 AA 3,758
SEE NOTES TO FINANCIAL STATEMENTS. 95 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,500 Hillsborough County, Florida, Industrial Development Authority, PCR, (Tampa Electric Company Project) Series 2002, 5.500% 10/01/23................................... A2 BBB $ 1,571 3,720 Jacksonville, Florida, GTD, Entitlement Revenue Refunding and Improvement, Series 2002, (FGIC Insured), 5.375% 10/01/19................................... Aaa AAA 4,129 5,000 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), Prerefunded 10/01/05 @ 101, 5.650% 10/01/14................................... Aaa AAA 5,612 2,500 Jea, Florida, St. John's River Power Parkway Systems Revenue Refunding, Series 2002, 5.250% 10/01/13................................... Aa2 AA 2,848 4,000 Lakeland, Florida, Water and Waste Water Revenue, Refunding and Improvement, Series 2002, 5.000% 10/01/27................................... Aa3 AA- 4,135 2,430 Leon County, Florida, Capital Improvement Revenue, Series 1997, (AMBAC Insured), 5.250% 10/01/17................................... Aaa AAA 2,639 2,370 Miami Beach, Florida, Water and Sewer Revenue, Series 1995, (FSA Insured), 5.375% 09/01/15................................... Aaa AAA 2,617 3,500 Miami-Dade County, Florida, Aviation Revenue, Series 1998C, AMT, (MBIA Insured), 5.250% 10/01/15................................... Aaa AAA 3,742 4,950 Miami-Dade County, Florida, Special Obligation Revenue, Series 1997C, 5.369%& 10/01/28.................................. Aaa AAA 1,202 2,000 North Broward, Florida, Hospital District, Revenue Refunding, Series 1997, (MBIA Insured), 5.250% 01/15/17................................... Aaa AAA 2,152
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $5,000 Okaloosa County, Florida, Gas Distribution Revenue Refunding, Series 1994, (MBIA Insured), Prerefunded 10/01/04 @ 102, 6.875% 10/01/19................................... Aaa AAA $ 5,618 1,260 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16................................... Aaa AAA 1,571 3,260 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16................................... Aaa AAA 4,109 3,000 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24................................... Aaa AAA 3,020 2,950 Orlando, Florida, Greater Orlando Aviation Authority, Airport Facilities Revenue, Series 1999A, AMT, (FGIC Insured), 5.250% 10/01/10................................... Aaa AAA 3,300 1,800 Orlando, Florida, Utilities Commission, Water and Electric Utilities Revenue Refunding, Series 1989D, 6.750% 10/01/17................................... Aa2 AA- 2,317 1,500 Orlando, Florida, Utilities Commission, Water and Electric Utilities Revenue Refunding, Series 1994A, 5.000% 10/01/20................................... Aa2 AA- 1,535 940 Palm Beach County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue Refunding, Series 1999A, AMT, (GNMA/FNMA COLL), 4.850% 04/01/32................................... Aaa NR 1,007 5,065 Palm Beach County, Florida, Solid Waste Authority, Revenue, Unrefunded Balance, Series 1997A, (AMBAC Insured), 6.000% 10/01/10................................... Aaa AAA 6,043
SEE NOTES TO FINANCIAL STATEMENTS. 96 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $2,000 Pensacola, Florida, Airport Revenue, Series 1997B, AMT, (MBIA Insured), 5.625% 10/01/14................................... Aaa AAA $ 2,210 1,000 Polk County, Florida, Industrial Development Authority, Solid Waste Disposal Facilities Revenue, (Tampa Electric Company Project) Series 1996, AMT, 5.850% 12/01/30................................... A2 BBB 1,059 1,000 South Broward, Florida, Hospital District, Revenue, Series 2002, 5.600% 05/01/27................................... A1 A+ 1,041 4,000 South Miami, Florida, Health Facilities Authority, Hospital Revenue Refunding, (Baptist Health Systems Obligation Group Project) Series 1995, (MBIA Insured), 5.375% 10/01/16................................... Aaa AAA 4,426 2,500 Sunrise Lakes, Florida, Phase 4 Recreational District, GO, Series 1995A, Prerefunded 08/01/05 @ 102, 6.750% 08/01/24................................... NR BBB- 2,883 1,000 Tampa, Florida, Sports Authority, Local Optional Sales Tax Revenue, (Stadium Project) Series 1997, (MBIA Insured), 5.125% 01/01/12................................... Aaa AAA 1,097 2,000 Tampa, Florida, Sports Authority, Local Optional Sales Tax Revenue, (Stadium Project) Series 1997, (MBIA Insured), 5.250% 01/01/17................................... Aaa AAA 2,151 2,500 Tampa, Florida, Sports Authority, Sales Tax Revenue, (Tampa Bay Arena Project) Series 1995, (MBIA Insured), 5.750% 10/01/15................................... Aaa AAA 3,005
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ FLORIDA -- (CONTINUED) $1,000 Tampa, Florida, Tax Allocation, (H. Lee Moffitt Cancer Project) Series 1999, (AMBAC Insured), 4.875% 03/01/06................................... Aaa AAA $ 1,091 2,380 Volusia County, Florida, Educational Facilities Authority, Educational Facilities Revenue, (Embry-Riddle Aeronautical University Project) Series 1999A, 5.750% 10/15/29................................... Baa2 NR 2,510 -------- 116,898 -------- LOUISIANA -- 0.8% 1,000 Calcasieu Parish, Louisiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06................................... Baa2 BBB 1,060 -------- PUERTO RICO -- 4.9% 4,190 Puerto Rico Commonwealth, GO, Series 1997, (MBIA Insured), 6.500% 07/01/15................................... Aaa AAA 5,403 1,000 Puerto Rico, Industrial Tourist Educational Medical and Environmental Authority, Control Facilities Hospital Revenue, (Hospital Auxilio Mutuo Obligation Group Project) Series 1995A, (MBIA Insured), 6.250% 07/01/16................................... Aaa AAA 1,109 -------- 6,512 -------- SOUTH CAROLINA -- 0.8% 1,000 Tobacco Settlement Management Revenue, Series 2001B, 6.375% 05/15/28................................... A1 A 1,012 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $111,599)....................................................... 125,482 --------
SEE NOTES TO FINANCIAL STATEMENTS. 97 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
SHARES VALUE (000) (000) - ----------------------------------------------------------------------------------- INVESTMENT COMPANIES -- 4.4% (Cost $5,937) 5,937 Nations Tax-Exempt Reserves, Trust Class#..................... 5,937 -------- TOTAL INVESTMENTS (Cost $117,536*).................................. 98.0% 131,419 -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............ 2.0% Receivable for Fund shares sold............................... $ 896 Dividends receivable.......................................... 3 Interest receivable........................................... 2,387 Payable for Fund shares redeemed.............................. (26) Investment advisory fee payable............................... (30) Administration fee payable.................................... (22) Shareholder servicing and distribution fees payable........... (19) Distributions payable......................................... (379) Accrued Trustees' fees and expenses........................... (48) Accrued expenses and other liabilities........................ (64) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... 2,698 -------- NET ASSETS.......................................... 100.0% $134,117 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 323 Accumulated net realized gain on investments sold............. 1,867 Net unrealized appreciation of investments.................... 13,883 Paid-in capital............................................... 118,044 -------- NET ASSETS.................................................... $134,117 ======== VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($76,433,372 / 7,350,185 shares outstanding)................ $10.40 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($45,598,125 / 4,384,727 shares outstanding)................ $10.40 ======== Maximum sales charge.......................................... 4.75% Maximum offering price per share.............................. $10.92 INVESTOR B SHARES: Net asset value and offering price per share** ($11,617,761 / 1,117,462 shares outstanding)................ $10.40 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($467,480 / 45,002 shares outstanding)...................... $10.39 ========
- --------------- * Federal income tax information (see Note 7). ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. & Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Florida Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): MBIA 33.36% Nations Florida Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 10.39% Pre-Refunded 14.20% Special Tax 10.81%
SEE NOTES TO FINANCIAL STATEMENTS. 98 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.4% GEORGIA -- 93.9% $1,000 Alpharetta, Georgia, GO, Series 1992, 6.000% 05/01/03........ Aa2 AA $ 1,026 1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 1996, (AMBAC Insured), 5.000% 01/01/03........ Aaa AAA 1,009 1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 1996, (AMBAC Insured), 6.000% 01/01/03........ Aaa AAA 1,011 5,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 2000A, (FGIC Insured), 5.600% 01/01/30 (a).... Aaa AAA 5,408 2,000 Atlanta, Georgia, Urban Residential Finance Authority, Multi-Family Revenue Refunding, (Housing City Plaza Project) Series 1998, AMT, (FNMA COLL), Mandatory Put 12/01/08 @ 100, 4.550% 12/01/28........ NR AAA 2,104 940 Atlanta, Georgia, Water and Wastewater, Revenue, Series 1999A, (FGIC Insured), Prerefunded, 5.000% 11/01/38........ Aaa AAA 968 1,060 Atlanta, Georgia, Water and Wastewater, Revenue, Unrefunded Balance, Series 1999A, (FGIC Insured), Prerefunded 05/01/09 @ 101, 5.000% 11/01/38........ Aaa AAA 1,201 2,750 Bibb County, Georgia, GO, Series 1993, 5.500% 01/01/08........ Aa3 AA 2,832 1,000 Brunswick and Glynn County, Georgia, Development Authority, Revenue Refunding, (Georgia- Pacific Corporation Project) Series 1998, AMT, 5.550% 03/01/26........ BA1 NR 759
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,055 Bulloch County, Georgia, Development Authority, Student Housing Lease Revenue, (Georgia Southern University Project), Series 2002, 3.750% 08/01/10........ Aaa NR $ 1,096 1,090 Bulloch County, Georgia, Development Authority, Student Housing Lease Revenue, (Georgia Southern University Project), Series 2002, 4.000% 08/01/11........ Aaa NR 1,148 1,500 Burke County, Georgia, Development Authority, PCR, (Oglethorpe Power Corporation Project) Series 1994B, 4.700% 01/01/04........ A3 A 1,550 2,000 Cartersville, Georgia, Development Authority, Sewer Facilities Revenue Refunding, (Anheuser-Busch Companies, Inc. Project) Series 1997, AMT, 5.625% 05/01/09........ A1 A+ 2,241 1,000 Cartersville, Georgia, Development Authority, Sewer Facilities Revenue Refunding, (Anheuser-Busch Companies, Inc. Project) Series 1997, AMT, 6.125% 05/01/27........ A1 A+ 1,068 3,000 Chatham County, Georgia, Hospital Medical Authority, Revenue, (Memorial Health Medical Center Project) Series 2001A, 6.125% 01/01/24........ A3 A- 3,211 1,000 Cherokee County, Georgia, School System GO, Series 1993, (AMBAC Insured), 5.875% 02/01/09........ Aaa AAA 1,142 575 Cherokee County, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993, (MBIA Insured), 5.300% 08/01/09........ Aaa AAA 639
SEE NOTES TO FINANCIAL STATEMENTS. 99 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Clarke County, Georgia, Hospital Authority, Revenue, (Athens Regional Medical Center Project) Series 1993, (MBIA Insured), Prerefunded 01/01/03 @ 102, 5.750% 01/01/08........ Aaa AAA $ 1,031 1,000 Clarke County, Georgia, School District, GO Refunding, Series 1993, (FGIC Insured), 5.100% 07/01/04........ Aaa AAA 1,060 3,985 Clayton County, Georgia Housing Authority, Multifamily Housing Revenue Refunding, (Tara Court II Apartments Project) Series 2001, (FNMA Liquidity Facility), Mandatory Put 12/01/11 @ 100, 4.350% 12/01/31........ NR AAA 4,156 3,190 Clayton County, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Southern Regional Medical Center Project) Series 1998A, (MBIA Insured), 5.250% 08/01/09........ Aaa AAA 3,598 1,000 Clayton County, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993, (MBIA Insured), 5.400% 05/01/07........ Aaa AAA 1,042 2,000 Clayton County, Georgia, Water and Sewer Authority, Revenue, Series 2000, 6.250% 05/01/17........ Aa3 AA 2,395 1,000 Clayton County, Georgia, Water and Sewer Authority, Revenue, Series 2000, 5.600% 05/01/18........ Aa3 AA 1,120 2,000 Cobb County and Marietta, Georgia, Water Authority, Revenue Refunding, Series 1993, 5.000% 11/01/03........ Aa1 AAA 2,075 5,195 Cobb County and Marietta, Georgia, Water Authority, Revenue, Series 2002, 5.125% 11/01/20........ Aaa AAA 5,657
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Cobb County, Georgia, Detention Buildings and Facilities GO, Series 1993, 5.300% 01/01/08........ Aaa AAA $ 1,029 1,200 Cobb County, Georgia, Kennestone Hospital Authority, Revenue, Series 1992A, 5.600% 04/01/05........ Aa2 AA- 1,227 1,000 Cobb County, Georgia, Kennestone Hospital Authority, Revenue, Series 1992A, 5.700% 04/01/06........ Aa2 AA- 1,023 2,000 Cobb County, Georgia, School District, GO, Series 1991B, 6.150% 02/01/03........ Aa1 AA 2,031 2,000 Cobb County, Georgia, School District, GO, Series 1995, 4.800% 02/01/04........ Aa1 AA 2,061 1,000 Cobb County, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993A, 5.400% 07/01/08........ Aaa AAA 1,048 2,250 Columbus, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1992, (FGIC Insured), 6.000% 05/01/03........ Aaa AAA 2,304 1,000 Columbus, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993, 5.100% 05/01/03........ A1 A+ 1,020 5,000 DeKalb County, Georgia, Development Authority, Revenue, (Emory University Project) Series 1994A, 6.000% 10/01/14........ Aa2 AA 5,494 1,000 DeKalb County, Georgia, School District, GO Refunding, Series 1993, 5.000% 07/01/03........ Aa2 AA 1,026 1,000 Downtown Savannah Authority, Georgia, Revenue Refunding, (Chatham County Project) Series 1993A, 5.000% 01/01/11........ A1 AA 1,027
SEE NOTES TO FINANCIAL STATEMENTS. 100 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $2,490 East Point, Georgia, Building Authority, Revenue, Series 2000, (FSA Insured), 4.620%& 02/01/18....... Aaa AAA $ 1,127 5,440 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18........ Ba1 BBB- 4,436 2,000 Forsyth County, Georgia, School District, GO, Series 1999, 6.000% 02/01/15........ Aa2 AA- 2,351 2,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Joseph Hospital Project) Series 1994, 4.900% 10/01/03........ Aaa NR 2,068 2,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Joseph Hospital Project) Series 1994, 5.500% 10/01/14........ Aaa NR 2,180 2,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, Health Systems Revenue, (Catholic Health East Project) Series 1998A, (MBIA Insured), 4.600% 11/15/09........ Aaa AAA 2,175 1,000 Fulton and DeKalb Counties, Georgia, Hospital Authority, GO Refunding Certificates, (Grady Memorial Hospital Project) Series 1993, (MBIA Insured), 5.250% 01/01/04........ Aaa AAA 1,045 1,025 Fulton County, Georgia, Building Authority, Revenue, (County Government and Health Facilities Project) Series 1992A, 5.700% 01/01/04........ Aa3 AA 1,056 500 Fulton County, Georgia, Development Authority, Revenue, (Clark Atlanta University Project) Series 1995, (CONNIE LEE Insured), 5.125% 01/01/10........ NR AAA 548
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,735 Fulton County, Georgia, Development Authority, Revenue, (Georgia Tech Foundation Facilities Project) Series 1997A, 5.000% 09/01/17........ Aa1 AA+ $ 1,831 2,900 Fulton County, Georgia, Housing Authority, Multi-Family Housing Revenue, (Concorde Place Apartments Project) Series 1996A, AMT, Prerefunded 07/01/08 @ 100, 6.375% 01/01/27........ NR AAA 3,422 1,500 Fulton County, Georgia, School District, GO Refunding, Series 1991, 6.250% 05/01/04........ Aa2 AA 1,608 1,000 Gainesville & Hall County, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Northeast Georgia Health System Incorporated Project) Series 2001, 5.000% 05/15/15........ NR A- 1,025 2,000 Gainesville & Hall County, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Northeast Georgia Health System Incorporated Project) Series 2001, 5.250% 05/15/18........ NR A- 2,045 1,000 Gainesville and Hall County, Georgia, Hospital Authority, Revenue, Certificates of Anticipation, (Northeast Georgia Health System Incorporated Project) Series 2001, 5.500% 05/15/31........ NR A- 1,013 1,500 Georgia State, GO Refunding, Series 1992A, 6.250% 03/01/06........ Aaa AAA 1,702 1,200 Georgia State, GO, Series 1992B, 6.000% 03/01/04........ Aaa AAA 1,274 2,750 Georgia State, GO, Series 1993C, 6.500% 07/01/05........ Aaa AAA 3,093 3,000 Georgia State, GO, Series 1999D, 5.800% 11/01/13........ Aaa AAA 3,516
SEE NOTES TO FINANCIAL STATEMENTS. 101 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 765 Georgia State, Housing and Finance Authority, Revenue, (Home Ownership Program) Series 1992B, AMT, 6.600% 06/01/25........ NR AA+ $ 794 725 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1998B-3, 4.400% 06/01/17........ Aa2 AAA 752 1,040 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1999B-2, AMT, 6.100% 06/01/31........ Aa2 AAA 1,100 1,000 Georgia State, Tollway Authority, Revenue Refunding, (Georgia 400 Project) Series 1998, 5.000% 07/01/07........ Aaa AAA 1,116 2,380 Georgia, George L. Smith II World Congress Center Authority, Revenue Refunding, (Domed Stadium Project) Series 2000, AMT, (MBIA Insured), 6.000% 07/01/05........ Aaa AAA 2,628 1,250 Georgia, Municipal Association Inc., Certificate of Participation, (City Court Atlanta Project), Series 2002, (AMBAC), 5.250% 12/01/26........ Aaa AAA 1,326 1,500 Georgia, Municipal Gas Authority, Gas Tax Revenue, (Southern Storage Gas Project) Series 1994, 6.000% 07/01/04........ NR A- 1,609 1,000 Griffin-Spalding County, Georgia, School System, GO, Series 1996, (State Aid Withholding, FSA Insured), 5.250% 02/01/10........ Aaa AAA 1,011 2,000 Gwinnett County, Georgia, GO, Series 2002, 4.000% 01/01/11........ Aaa AAA 2,112 1,370 Gwinnett County, Georgia, Water and Sewer Authority, Series 2002, (CNTY GTD), 4.750% 08/01/15........ Aaa AAA 1,476
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Hall County, Georgia, School District, GO Refunding, Series 1992B, 6.300% 12/01/05........ A1 NR $ 1,135 2,000 Hall County, Georgia, School District, GO, Series 1994, (AMBAC Insured), Prerefunded 12/01/04 @ 102, 6.700% 12/01/14........ Aaa AAA 2,257 1,000 Henry City and County, Georgia, Water and Sewer Authority, Improvement Revenue Refunding, Series 1993A, 5.000% 02/01/07........ A2 NR 1,050 1,550 Henry County, Georgia, Hospital Authority, Revenue, (Henry Medical Center Project) Series 1997, (AMBAC Insured), Prerefunded 07/01/07 @ 102, 5.250% 07/01/09........ Aaa AAA 1,771 3,000 Henry County, Georgia, Hospital Authority, Revenue, (Henry Medical Center Project) Series 1997, (AMBAC Insured), 6.000% 07/01/29........ Aaa AAA 3,404 2,000 Houston County, Georgia, School District, GO, Series 1996, (State Aid Withholding, MBIA Insured), 5.500% 03/01/16........ Aaa AAA 2,029 2,000 Houston County, Georgia, School District, GO, Series 2002, (State Aid Withholding), 4.000% 09/01/06........ Aa2 AA 2,135 500 Lawrenceville, Georgia, Housing Authority, Multi-Family Housing Revenue, (Knollwood Park, LP Project) Series 1997, AMT, (FNMA COLL), Mandatory Put 06/01/15 @ 100, 6.250% 12/01/29........ NR AAA 581 1,000 Macon, Georgia, Water Authority, Water and Sewer Revenue Refunding, Series 1994A, 4.700% 10/01/04........ Aa3 AA- 1,060
SEE NOTES TO FINANCIAL STATEMENTS. 102 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Macon-Bibb County, Georgia, Industrial Authority, Industrial Revenue, (Weyerhaeuser Company Project) Series 1982, 9.000% 10/01/07........ Baa2 BBB $ 1,303 2,000 Marietta, Georgia, Housing Authority, Multifamily Revenue Refunding, (Wood Glen-RMKT Housing Project) Series 1994, Mandatory Put 07/01/04 @ 100, 4.750% 07/01/24........ Baa2 BBB 2,007 1,000 Meriwether County, Georgia, School District, GO, Series 1996, (State Aid Withholding, FSA Insured), 5.500% 02/01/16........ Aaa AAA 1,117 3,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 5.900% 07/01/03........ Aaa AAA 3,099 540 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1983D, 7.000% 07/01/11........ Aaa AAA 693 2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1998B, (MBIA Insured), 5.100% 07/01/13........ Aaa AAA 2,764 3,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1998B, (MBIA Insured), 5.100% 07/01/15........ Aaa AAA 3,256 5,000 Monroe County, Georgia, Development Authority, PCR, (Georgia Power Company Plant Scherer Project) Series 2001, (AMBAC Insured), Mandatory Put 12/01/08 @ 100, 4.200% 01/01/12........ Aaa AAA 5,309 1,000 Monroe County, Georgia, Development Authority, PCR, (Oglethorpe Power Corporation Project) Series 1992A, 6.800% 01/01/12........ A3 A 1,237
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,100 Paulding County, Georgia, School District, GO, Series 1992A, 6.400% 02/01/04........ A2 A $ 1,169 500 Peach County, Georgia, School District, GO, Series 1994, (State Aid Withholding, MBIA Insured), 6.500% 02/01/08........ Aaa AAA 591 1,000 Private Colleges and Universities Facilities Authority, Georgia, Revenue, (Agnes Scott College Project) Series 1999, (MBIA Insured), 4.800% 06/01/16........ Aaa AAA 1,057 1,000 Richmond County, Georgia, Board of Education, GO Refunding, Series 1993, (FGIC Insured), 4.700% 11/01/06........ Aaa AAA 1,050 3,000 Richmond County, Georgia, Development Authority, Environmental Improvement Revenue, (International Paper Company Project) Series 2001A, 5.150% 03/01/15........ Baa2 BBB 3,023 3,000 Roswell, Georgia, GO, Series 1995, 5.600% 02/01/10........ Aaa AAA 3,320 2,000 Roswell, Georgia, GO, Series 2000, 5.500% 02/01/12........ Aaa AAA 2,277 1,250 Savannah, Georgia, Hospital Authority, Revenue Refunding, (Candler Hospital Project) Series 1992, Prerefunded 01/01/03 @ 102, 7.000% 01/01/11........ Ba1 BB 1,292 1,225 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs - Candler Health Systems Project) Series 1998A, (FSA Insured), 5.250% 07/01/11........ Aaa NR 1,354 1,310 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs - Candler Health Systems Project) Series 1998A, (FSA Insured), 5.250% 07/01/12........ Aaa NR 1,438
SEE NOTES TO FINANCIAL STATEMENTS. 103 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs - Candler Health Systems Project) Series 1998B, (FSA Insured), 5.250% 07/01/10........ Aaa NR $ 1,111 1,000 Savannah, Georgia, Water and Sewer Improvement Revenue Refunding, Series 1993, 5.100% 12/01/09........ Aa3 AA+ 1,025 500 Union County, Georgia, Housing Authority, Multi-Family Housing Revenue Refunding, (Hidden Lake Apartments Ltd. Project) Series 1994A, (FHA/FNMA COLL), 7.125% 12/01/25........ Aaa NR 526 -------- 176,716 -------- ARKANSAS -- 1.0% 2,000 Crossett, Arkansas, PCR, (Georgia Pacific Corporation Project) Series 1984, 4.875% 10/01/07........ Ba1 NR 1,854 -------- LOUISIANA -- 1.7% 2,000 Calcasieu Parish, Louisiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06........ Baa2 BBB 2,120 1,000 Plaquemines, Louisiana, Port Harbour and District Marine Terminal Facilities Revenue Refunding, (Electro-Coal Project) Series 2001B, 5.000% 09/01/07........ A3 BBB- 1,048 -------- 3,168 -------- SOUTH CAROLINA -- 1.1% 2,000 Tobacco Settlement Management Revenue, Series 2001B, 6.375% 05/15/28........ A1 A 2,023 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - --------------------------------------------------------------------- TEXAS -- 1.7% $1,000 Brazos River Authority, Texas, PCR Refunding, (Texas Electric Company Project) Series 2001A, AMT, Mandatory Put 04/01/04 @ 100, 4.950% 10/01/30........ NR BBB+ $ 1,016 2,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 6.000% 10/01/16........ Baa2 BBB- 2,145 -------- 3,161 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $175,656)............................ 186,922 --------
SHARES (000) - --------- INVESTMENT COMPANIES -- 2.5% (Cost $4,658) 4,658 Nations Tax-Exempt Reserves, Trust Class#..................... 4,658 -------- TOTAL INVESTMENTS (Cost $180,314*).................................. 101.9% 191,580 -------- OTHER ASSETS AND LIABILITIES (NET).................. (1.9)% Cash.......................................................... $ 2 Receivable for Fund shares sold............................... 250 Dividends receivable.......................................... 5 Interest receivable........................................... 2,703 Payable for Fund shares redeemed.............................. (1,317) Investment advisory fee payable............................... (29) Administration fee payable.................................... (31) Shareholder servicing and distribution fees payable........... (18) Distributions payable......................................... (598) Payable for investment securities purchased................... (4,317) Accrued Trustees' fees and expenses........................... (94) Accrued expenses and other liabilities........................ (68) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... (3,512) -------- NET ASSETS.......................................... 100% $188,068 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 251 Accumulated net realized loss on investments sold............. (983) Net unrealized appreciation of investments.................... 11,266 Paid-in capital............................................... 177,534 -------- NET ASSETS.................................................... $188,068 ========
SEE NOTES TO FINANCIAL STATEMENTS. 104 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - -------------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($155,488,517 / 14,057,827 shares outstanding).............. $11.06 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($14,459,468 / 1,307,105 shares outstanding)................ $11.06 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $11.43 INVESTOR B SHARES: Net asset value and offering price per share** ($14,102,802 / 1,274,709 shares outstanding)................ $11.06 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($4,017,302 / 363,169 shares outstanding)................... $11.06 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Georgia Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 10.81% MBIA 11.62%
Nations Georgia Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 12.58% Water Revenue 12.17%
SEE NOTES TO FINANCIAL STATEMENTS. 105 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 98.3% KANSAS -- 82.4% $ 2,000 Burlington, Kansas, Environmental Improvement Revenue Refunding, (Power and Light Project) Series 1998C, Mandatory Put 10/01/07 @ 100, 4.750% 09/01/15................................... A2 BBB $ 2,043 1,045 Douglas County, Kansas, GO, Series 1999, 4.550% 08/01/05................................... Aa3 NR 1,124 1,000 Douglas County, Kansas, Unified School District Number 497, GO, Series 1995A, Crossover Refunded 09/01/03 @ 100, 5.700% 09/01/05................................... Aa3 NR 1,035 1,185 Johnson County, Kansas, Unified School District Number 223, GO Refunding, Series 1994, (AMBAC Insured), 5.500% 09/01/04................................... Aaa AAA 1,271 1,705 Johnson County, Kansas, Unified School District Number 229, GO Refunding, Series 1993A, (FGIC Insured), 5.400% 10/01/04................................... Aaa AAA 1,768 1,180 Johnson County, Kansas, Unified School District Number 229, GO, Series 1994A, 6.250% 10/01/03................................... Aa1 AA 1,236 1,130 Johnson County, Kansas, Unified School District Number 231, GO Refunding, Series 1998A, (FGIC Insured), 4.600% 10/01/09................................... Aaa AAA 1,231 1,260 Johnson County, Kansas, Unified School District Number 231, GO Refunding, Series 1998A, (FGIC Insured), 4.700% 10/01/10................................... Aaa AAA 1,366 750 Johnson County, Kansas, Unified School District Number 233, GO Refunding, Series 1994, (AMBAC Insured), Prerefunded 09/01/04 @ 100, 5.500% 09/01/05................................... Aaa AAA 806
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- KANSAS -- (CONTINUED) $ 750 Johnson County, Kansas, Unified School District Number 233, GO Refunding, Series 1994, (AMBAC Insured), Prerefunded 09/01/04 @ 100, 5.625% 09/01/07................................... Aaa AAA $ 808 1,380 Johnson County, Kansas, Unified School District Number 233, GO Refunding, Series 2001C, (FGIC Insured), 5.000% 09/01/05................................... Aaa AAA 1,503 2,760 Johnson County, Kansas, Unified School District Number 233, GO, Series 1999A, (FGIC Insured), 5.375% 09/01/14................................... Aaa NR 3,072 1,250 Johnson County, Kansas, Unified School District Number 512, Shawnee Mission, GO Refunding, Series 1996B, 4.850% 10/01/08................................... Aa1 AA 1,362 1,510 Johnson County, Kansas, Unified School District Number 512, Shawnee Mission, GO, Series 1995, 5.200% 10/01/07................................... Aa1 AA 1,648 1,380 Johnson County, Kansas, Unified School District Number 512, Shawnee Mission, GO, Series 1995, 5.200% 10/01/08................................... Aa1 AA 1,506 500 Johnson County, Kansas, Water District Number 001, Water Revenue Refunding, Series 1993, 4.750% 06/01/04................................... Aa1 AAA 518 720 Johnson County, Kansas, Water District Number 001, Water Revenue Refunding, Series 1993, 4.750% 12/01/04................................... Aa1 AAA 745 750 Johnson County, Kansas, Water District Number 001, Water Revenue Refunding, Series 1993, 4.800% 06/01/05................................... Aa1 AAA 776 1,000 Johnson County, Kansas, Water District Number 001, Water Revenue, Series 2001, 5.000% 12/01/12................................... Aa1 AAA 1,129
SEE NOTES TO FINANCIAL STATEMENTS. 106 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- KANSAS -- (CONTINUED) $ 595 Junction City, Kansas, Water and Sewer Revenue, Series 1996A, (MBIA Insured), Prerefunded 09/01/05 @ 101, 4.900% 09/01/07................................... Aaa AAA $ 654 2,230 Kansas City, Kansas, Utilities System Revenue, Series 1994, (FGIC Insured), Prerefunded 09/01/04 @ 102, 6.375% 09/01/23................................... Aaa AAA 2,476 1,055 Kansas State, Department of Transportation, Highway Revenue, Series 1994, 4.800% 09/01/08................................... Aa2 AA+ 1,171 735 Kansas State, Development Financing Authority, Health Facilities Revenue, (Hays Medical Center Inc. Project) Series 1997B, (MBIA Insured), 4.800% 11/15/04................................... Aaa NR 783 670 Kansas State, Development Financing Authority, Health Facilities Revenue, (Hays Medical Center Inc. Project) Series 1997B, (MBIA Insured), 4.900% 11/15/05................................... Aaa NR 730 510 Kansas State, Development Financing Authority, Health Facilities Revenue, (Hays Medical Center Inc. Project) Series 1997B, (MBIA Insured), 5.000% 11/15/06................................... Aaa NR 565 4,190 Kansas State, Development Financing Authority, Health Facilities Revenue, (Sisters of Charity Project) Series 2000J, 6.250% 12/01/28................................... Aa2 AA 4,746 620 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996N, (MBIA Insured), 4.700% 11/15/05................................... Aaa AAA 670 675 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996N, (MBIA Insured), 4.750% 11/15/06................................... Aaa AAA 738
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- KANSAS -- (CONTINUED) $ 605 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996P, (MBIA Insured), 4.700% 11/15/05................................... Aaa AAA $ 654 630 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996P, (MBIA Insured), 4.750% 11/15/06................................... Aaa AAA 688 740 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project) Series 1996F, (MBIA Insured), 5.600% 11/15/07................................... Aaa AAA 823 500 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project) Series 1996F, (MBIA Insured), 5.750% 11/15/09................................... Aaa AAA 549 730 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project) Series 1996G, (MBIA Insured), Prerefunded 11/15/06 @ 100, 5.750% 11/15/09................................... Aaa AAA 833 890 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project), Series 1996G, (MBIA Insured), Prerefunded 11/15/06 @ 100, 5.700% 11/15/08................................... Aaa AAA 1,014 10,000 Kansas State, Development Financing Authority, Revenue, (Board of Regents Rehabilitation Project) Series 1997G-2, 5.000% 10/01/10................................... Aaa AAA 10,980
SEE NOTES TO FINANCIAL STATEMENTS. 107 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- KANSAS -- (CONTINUED) $ 1,020 Kansas State, Development Financing Authority, Revenue, (Kansas State Projects) Series 2001, (AMBAC Insured), 5.500% 03/01/16................................... Aaa AAA $ 1,147 2,000 Kansas State, Development Financing Authority, Revenue, (Regents-Wichita University Project) Series 2000B, (AMBAC Insured), 5.900% 04/01/15................................... Aaa AAA 2,313 955 Kansas State, Development Financing Authority, Revenue, (Sisters of Charity Leavenworth Project) Series 1998, 5.000% 12/01/14................................... Aaa AAA 1,017 1,000 Kansas State, Development Financing Authority, Revenue, (Water Pollution Control Project) Series 1993-II, 5.400% 11/01/03................................... Aa1 AA+ 1,042 1,150 Kansas, University Hospital Authority, Revenue, (Kansas University Health System Project) Series 1999A, (AMBAC Insured), 5.250% 09/01/11................................... Aaa AAA 1,287 1,265 Kansas, University Hospital Authority, Revenue, (Kansas University Health System Project) Series 1999A, (AMBAC Insured), 5.350% 09/01/12................................... Aaa AAA 1,423 1,525 Kansas, University Hospital Authority, Revenue, (Kansas University Health System Project) Series 1999A, (AMBAC Insured), 5.400% 09/01/13................................... Aaa AAA 1,716 2,000 Leavenworth County, Kansas, GO, Series 1997A, (AMBAC Insured), 4.900% 12/01/06................................... Aaa AAA 2,214 1,065 Montgomery County, Kansas, Unified School District, Series 2002, (FGIC Insured), 6.250% 04/01/12................................... Aaa AAA 1,313
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- KANSAS -- (CONTINUED) $ 860 Reno County, Kansas, Unified School District Number 313, GO, Series 1996B, (FSA Insured), 5.900% 09/01/08................................... Aaa AAA $ 1,005 925 Reno County, Kansas, Unified School District Number 313, GO, Series 1996B, (FSA Insured), 5.900% 09/01/09................................... Aaa AAA 1,092 995 Reno County, Kansas, Unified School District Number 313, GO, Series 1996B, (FSA Insured), 5.900% 09/01/10................................... Aaa AAA 1,183 500 Salina, Kansas, Hospital Revenue Refunding, (Asbury-Salina Regional Medical Center Project) Series 1993, (AMBAC Insured), 5.100% 10/01/06................................... Aaa AAA 517 1,010 Saline County, Kansas, Unified School District Number 305 Salina, GO Refunding, Series 1999, (FSA Insured), Prerefunded 09/01/08 @ 100, 5.250% 09/01/13................................... Aaa NR 1,151 1,000 Sedgwick County, Kansas, Unified School District Number 265 Goddard, GO, Series 1994, (FSA Insured), 5.350% 10/01/04................................... Aaa AAA 1,073 1,000 Sedgwick County, Kansas, Unified School District Number 265 Goddard, GO, Series 1994, (FSA Insured), Prerefunded 10/01/04 @ 100, 5.400% 10/01/05................................... Aaa AAA 1,076 1,250 Sedgwick County, Kansas, Unified School District Number 265 Goddard, GO, Series 1994, (FSA Insured), Prerefunded 10/01/04 @ 100, 5.500% 10/01/06................................... Aaa AAA 1,347 625 Shawnee County, Kansas, GO Refunding & Improvement, Series 1998A, 5.000% 09/01/08................................... A1 NR 700
SEE NOTES TO FINANCIAL STATEMENTS. 108 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- KANSAS -- (CONTINUED) $ 1,660 Shawnee County, Kansas, GO Refunding & Improvement, Series 2002, (FSA Insured), 5.250% 09/01/17................................... Aaa NR $ 1,843 500 Shawnee County, Kansas, Health Care Facilities Revenue Refunding, (Menninger Foundation Project) Series 1995, (FSA Insured), 5.000% 08/15/07................................... Aaa AAA 541 500 Shawnee County, Kansas, Health Care Facilities Revenue Refunding, (Menninger Foundation Project) Series 1995, (FSA Insured), 5.100% 08/15/09................................... Aaa AAA 540 895 Shawnee County, Kansas, Unified School District Number 345 Seaman, GO, Series 1994, (MBIA Insured), Prerefunded 09/01/04 @ 100, 5.400% 09/01/06................................... Aaa AAA 960 950 Shawnee County, Kansas, Unified School District Number 345 Seaman, GO, Series 1994, (MBIA Insured), Prerefunded 09/01/04 @ 100, 5.500% 09/01/07................................... Aaa AAA 1,021 1,000 Shawnee County, Kansas, Unified School District Number 501 Topeka, GO, Series 2002, 5.000% 02/01/14................................... Aa3 NR 1,107 1,170 Wichita, Kansas, Water and Sewer Utility Revenue Refunding, Series 1998, (FGIC Insured), 4.150% 10/01/05................................... Aaa NR 1,247 ------- 82,896 ------- ALASKA -- 1.6% 2,000 North Slope Borough, Alaska, Capital Appreciation GO, Series 2000B, (MBIA Insured), 3.400%& 06/30/09.................................. Aaa AAA 1,593 -------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- ARIZONA -- 1.8% $ 1,600 Arizona School Facilities Board Revenue, State School Improvement, Series 2002, 5.250% 07/01/14................................... Aaa AAA $ 1,817 ------- OHIO -- 1.7% 1,000 Dayton, Ohio, Special Facilities Revenue Refunding, (Air Freight Corporation Project) Series 1993F, 6.050% 10/01/09................................... NR BB+ 877 1,000 Dayton, Ohio, Special Facilities Revenue, (Air Freight Corporation Project) Series 1988D, AMT, 6.200% 10/01/09................................... NR BB+ 885 ------- 1,762 ------- OKLAHOMA -- 2.2% 2,000 Oklahoma, Housing Development Authority, Revenue, Series 2000A, (FHLMC COLL), 5.100% 11/01/05................................... Aa3 NR 2,172 ------- SOUTH CAROLINA -- 2.5% 2,000 Calhoun County, South Carolina, Solid Waste Disposal Facility Revenue, (Carolina Eastman Company Project) Series 1992, AMT, 6.750% 05/01/17................................... A2 BBB+ 2,557 ------- TEXAS -- 5.0% 1,000 Dallas-Fort Worth, Texas, International Airport Facilities Improvement, Corporate Revenue Refunding, (American Airlines Project) Series 2000C, AMT, Mandatory Put 11/01/07 @ 100, 6.150% 05/01/29................................... B2 BB- 551 2,200 Sabine River, Texas, Pollution Control Authority, Revenue Refunding, (Texas University Electric Company Project) Series 2001A, Mandatory Put 11/01/11 @ 100, 5.500% 05/01/22................................... Baa1 BBB+ 2,263
SEE NOTES TO FINANCIAL STATEMENTS. 109 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ----------------------------------------------------------------------------------------------- TEXAS -- (CONTINUED) $ 4,330 Waxahachie, Texas, Independent School District, GO, Series 2002, (PSF-GTD), 4.550%& 08/15/17.................................. Aaa NR $ 2,217 ------- 5,031 ------- WASHINGTON -- 1.1% 1,000 Energy Northwest Washington, Electric Revenue Refunding, Series 2002A, (MBIA Insured), 5.750% 07/01/18................................... Aaa AAA 1,143 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $92,117)........................................................ 98,971 -------
SHARES (000) - ------ INVESTMENT COMPANIES -- 0.1% (Cost $108) 108 Nations Tax-Exempt Reserves, Trust Class#..................... 108 -------- TOTAL INVESTMENTS (Cost $92,225*)................................... 98.4% 99,079 -------- OTHER ASSETS AND LIABILITIES (NET)................................. 1.6% Cash.......................................................... $ 1 Receivable for investment securities sold..................... 550 Receivable for Fund shares sold............................... 100 Interest receivable........................................... 1,519 Payable for Fund shares redeemed.............................. (104) Investment advisory fee payable............................... (19) Administration fee payable.................................... (16) Shareholder servicing and distribution fees payable........... (1) Distributions payable......................................... (312) Accrued Trustees' fees and expenses........................... (27) Accrued expenses and other liabilities........................ (48) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)........................................... 1,643 -------- NET ASSETS.......................................... 100.0% $100,722 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 113 Accumulated net realized loss on investments sold............. (44) Net unrealized appreciation of investments.................... 6,854 Paid-in capital............................................... 93,799 -------- NET ASSETS.................................................... $100,722 VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($93,924,469 / 8,866,140 shares outstanding)................ $10.59 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($6,668,611 / 629,648 shares outstanding)................... $10.59 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $10.95 INVESTOR B SHARES: Net asset value and offering price per share** ($26,320 / 2,488 shares outstanding)........................ $10.58 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($102,915 / 9,739 shares outstanding)....................... $10.57 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Kansas Municipal Income Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 13.41% FGIC 13.88% MBIA 13.32% FSA 10.77%
Nations Kansas Municipal Income Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 17.86% Lease Revenue 10.90% Pre-Refunded 15.62%
SEE NOTES TO FINANCIAL STATEMENTS. 110 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 98.6% MARYLAND -- 81.7% $ 500 Anne Arundel County, Maryland, Consolidated General Improvement GO Refunding, Series 1995, 5.300% 04/01/10................................... Aa1 AA+ $ 547 1,000 Anne Arundel County, Maryland, Consolidated General Improvement GO, Series 1993, 5.125% 07/15/08................................... Aa1 AA+ 1,048 500 Anne Arundel County, Maryland, Consolidated General Improvement GO, Series 1993, 5.250% 07/15/11................................... Aa1 AA+ 524 2,855 Anne Arundel County, Maryland, GO, Series 1995, 5.200% 04/01/08................................... Aa1 AA+ 3,106 2,075 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1991C, (FGIC Insured), 6.375% 10/15/07................................... Aaa AAA 2,466 1,000 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1993A, (AMBAC Insured), 5.300% 10/15/06................................... Aaa AAA 1,040 1,740 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1997A, (FGIC Insured), 5.300% 10/15/16................................... Aaa AAA 1,946 1,000 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1998B, (FGIC Insured), 6.500% 10/15/08................................... Aaa AAA 1,153 1,000 Baltimore, Maryland, Convention Center Revenue Refunding, Series 1998, (MBIA Insured), 5.000% 09/01/06................................... Aaa AAA 1,108 1,725 Baltimore, Maryland, Exchanged Revenue, Series 1996A, (FGIC Insured), 5.900% 07/01/10................................... Aaa AAA 2,051 1,000 Baltimore, Maryland, GO, Series 1989B, (MBIA Insured), 7.000% 10/15/04................................... Aaa AAA 1,109
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $1,000 Baltimore, Maryland, GO, Series 1989B, (MBIA Insured), 7.050% 10/15/07................................... Aaa AAA $ 1,220 1,750 Baltimore, Maryland, Port Facilities Revenue, (E.I. duPont de Nemours and Company Project) Series 1985, 6.500% 12/01/10................................... Aa3 AA- 1,810 1,000 Baltimore, Maryland, Revenue Refunding, (Wastewater Projects) Series 1993A, (MBIA Insured), 5.100% 07/01/04................................... Aaa AAA 1,061 800 Calvert County, Maryland, PCR Refunding, (Baltimore Gas and Electric Company Project) Series 1993, 5.550% 07/15/14................................... A2 BBB+ 838 250 Cumberland, Maryland, GO Refunding, Series 1994A, (FGIC Insured), 5.250% 05/01/21................................... Aaa AAA 259 1,000 Harford County, Maryland, GO, Series 1997, 5.500% 12/01/07................................... Aa1 AA 1,151 20 Howard County, Maryland, Consolidated Public Improvement GO, Series 1993A, Prerefunded 08/15/05 @ 100, 5.250% 08/15/06................................... Aaa AAA 22 1,500 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/16................................... Aaa AAA 1,656 1,900 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/17................................... Aaa AAA 2,059 2,000 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/18................................... Aaa AAA 2,167 3,900 Howard County, Maryland, Consolidated Public Improvement GO, Series 2002A, 5.000% 08/15/09................................... Aaa AAA 4,404
SEE NOTES TO FINANCIAL STATEMENTS. 111 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $1,115 Howard County, Maryland, Public Improvement GO, Unrefunded Balance, Series 1993A, 5.250% 08/15/06................................... Aaa AAA $ 1,174 1,530 Laurel, Maryland, Public Improvement GO Refunding, 1996A, (FGIC Insured), 5.000% 10/01/11................................... Aaa AAA 1,687 1,200 Maryland State, Certificates of Participation Revenue, (Aviation Administration Facilities Project) Series 1999, AMT, 4.750% 05/01/07................................... Aa3 AA+ 1,305 500 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Residential Project) Series 1998B, AMT, 4.950% 09/01/11................................... Aa2 NR 530 810 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Residential Project) Series 2000A, 5.500% 09/01/12................................... Aa2 NR 877 1,000 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Single-Family Program) Series 1997-1, (FHA COLL), 4.950% 04/01/07................................... Aa2 NR 1,083 4,000 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Single-Family Program) Series 1998-3, AMT, 4.500% 04/01/08................................... Aa2 NR 4,255
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $1,685 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Single-Family Program) Series 1998-3, AMT, 4.700% 04/01/10................................... Aa2 NR $ 1,797 2,410 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999D, AMT, 5.375% 09/01/24................................... Aa2 NR 2,486 3,000 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999H, AMT, 6.000% 09/01/17................................... Aa2 NR 3,237 1,265 Maryland State, Department of Transportation, Series 2002, 5.500% 02/01/11................................... Aa2 AA 1,478 5,000 Maryland State, Department of Transportation, Series 2002, 5.500% 02/01/14................................... Aa2 AA 5,888 495 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.300% 06/01/08................................... Baa2 NR 504 575 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.600% 06/01/11................................... Baa2 NR 596
SEE NOTES TO FINANCIAL STATEMENTS. 112 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $4,000 Maryland State, Economic Development Corporation, Student Housing Revenue, (Salisbury Collegiate Housing Project) Series 1999A, 5.750% 06/01/29................................... Baa3 NR $ 4,087 1,650 Maryland State, Economic Development Corporation, Student Housing Revenue, (Salisbury Collegiate Housing Project) Series 1999A, 6.000% 06/01/30................................... Baa3 NR 1,744 860 Maryland State, Economic Development Corporation, Student Housing Revenue, Series 1999A, 5.600% 06/01/10................................... Baa3 NR 888 1,000 Maryland State, Economic Development Corporation, Student Housing Revenue, Series 1999A, 5.700% 06/01/12................................... Baa3 NR 1,032 815 Maryland State, Economic Development Corporation, Student Housing Revenue, Series 1999A, 6.000% 06/01/19................................... Baa3 NR 866 1,000 Maryland State, GO, Series 1998, 5.000% 07/15/11................................... Aaa AAA 1,111 2,700 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.250% 07/01/04................................... A1 AA- 2,828 1,500 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.400% 07/01/06................................... A1 AA- 1,570 3,050 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.500% 07/01/07................................... A1 AA- 3,196
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $ 300 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.600% 07/01/09................................... A1 AA- $ 315 1,000 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (University of Maryland Medical Systems Project) Series 1993, (FGIC Insured), 5.200% 07/01/04................................... Aaa AAA 1,047 510 Maryland State, Health and Higher Education Facilities Authority, Revenue, (College of Notre Dame Project) Series 1998, (MBIA Insured), 4.600% 10/01/14................................... Aaa AAA 560 1,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Howard County General Hospital Project) Series 1993, 5.500% 07/01/13................................... Aaa NR 1,045 1,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Howard County General Hospital Project) Series 1993, 5.500% 07/01/21................................... Aaa NR 1,045 2,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (John Hopkins Hospital Redevelopment Project) Series 1979, 5.750% 07/01/09................................... Aaa AAA 2,350 1,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Johns Hopkins Medical Project) Series 1998, 5.000% 07/01/29................................... Aaa AAA 1,028
SEE NOTES TO FINANCIAL STATEMENTS. 113 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $4,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Johns Hopkins University Project) Series 1999, Prerefunded 07/01/09 @ 101, 6.000% 07/01/39................................... Aa2 AA $ 4,791 1,100 Maryland State, Industrial Development Financing Authority, Revenue Refunding, (American Center for Physics Facilities Project) Series 2001, (GTY AGMT), 3.650% 12/15/05................................... Aa3 NR 1,162 500 Maryland State, Stadium Authority, Lease Revenue, (Ocean City Convention Center Project) Series 1995, 5.375% 12/15/13................................... Aa2 AA+ 553 1,000 Maryland State, State and Local Facilities Loan GO, Series 1995-2, 5.000% 10/15/04................................... Aaa AAA 1,069 1,550 Maryland State, State and Local Facilities Loan GO, Series 1996-2, 5.250% 06/15/11................................... Aaa AAA 1,731 1,000 Maryland State, State and Local Facilities Loan GO, Series 1999-2, 5.000% 07/15/07................................... Aaa AAA 1,118 5,500 Maryland State, State and Local Facilities Loan GO, Series 2000, 5.500% 08/01/09................................... Aaa AAA 6,380 2,970 Maryland State, State and Local Facilities Loan GO, Series 2000, 5.750% 08/01/11................................... Aaa AAA 3,517 2,245 Maryland State, State and Local Facilities Loan GO, Series 2002, 5.500% 03/01/13................................... Aaa AAA 2,647 3,000 Maryland State, Transportation Authority, (Baltimore/Washington International Airport Project) Series 2002A, (AMBAC Insured), 4.500% 03/01/15................................... Aaa AAA 3,198
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $ 760 Maryland State, Transportation Authority, Revenue, (Transportation Facilities Project) Series 1978, 6.800% 07/01/16................................... Aaa AAA $ 937 300 Maryland State, Transportation Authority, Revenue, (Transportation Facilities Project) Series 1992, 5.750% 07/01/15................................... A1 A+ 301 4,000 Maryland State, Transportation Authority, Transportation Revenue, Series 1992, 5.700% 07/01/05................................... A1 A+ 4,420 2,800 Maryland State, Transportation Authority, Transportation Revenue, Series 1992, 5.800% 07/01/06................................... A1 A+ 3,169 2,000 Montgomery County, Maryland, Consolidated Public Improvement GO Refunding, Series 1992A, 5.600% 07/01/04................................... Aaa AAA 2,139 1,000 Montgomery County, Maryland, Consolidated Public Improvement GO Refunding, Series 1992A, 5.750% 07/01/06................................... Aaa AAA 1,131 1,500 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1992A, 5.800% 07/01/07................................... Aaa AAA 1,729 3,500 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1993A, 4.900% 10/01/07................................... Aaa AAA 3,686 1,000 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1997A, 5.375% 05/01/08................................... Aaa AAA 1,134 1,000 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1997A, Prerefunded 05/01/07 @ 102, 5.375% 05/01/13................................... Aaa AAA 1,147
SEE NOTES TO FINANCIAL STATEMENTS. 114 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $1,000 Montgomery County, Maryland, Economic Development Revenue, (Trinity Health Care Group Project) Series 2001, 5.500% 12/01/16................................... Aa3 AA- $ 1,117 1,000 Montgomery County, Maryland, GO Refunding, Series 2001, 5.250% 10/01/14................................... Aaa AAA 1,141 1,500 Montgomery County, Maryland, Housing Opportunities Commission, Multi-Family Mortgage Revenue, Series 2000A, 6.100% 07/01/30................................... Aaa NR 1,622 1,500 Northeast Maryland, Solid Waste Disposal Authority, Revenue, (Montgomery County Resource Recreation Project) Series 1993A, AMT, 6.000% 07/01/07................................... A2 NR 1,667 935 Northeast Maryland, Solid Waste Disposal Authority, Revenue, (Ogden Martin Systems - Montgomery County Residential Receivables Project) Series 1993A, AMT, 6.300% 07/01/16................................... A2 NR 975 2,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1999, 5.000% 10/01/12................................... Aaa AAA 2,246 3,300 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1999, (FSA Insured), 5.125% 10/01/16................................... Aaa AAA 3,652 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.125% 10/01/08................................... Aa3 AA 1,135 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.125% 10/01/10................................... Aa3 AA 1,144
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $3,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.250% 10/01/18................................... Aa3 AA $ 3,275 2,500 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.250% 10/01/19................................... Aa3 AA 2,730 4,825 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2001, (FGIC Insured), 5.250% 12/01/11................................... Aaa AAA 5,622 3,970 Prince Georges County, Maryland, Construction Public Improvements GO, Series 1995, (MBIA Insured), 5.500% 01/01/10................................... Aaa AAA 4,363 4,650 Prince Georges County, Maryland, GO, Construction Public Improvements, Series 2001, (FGIC Insured), 5.250% 12/01/12................................... Aaa AAA 5,409 330 Prince Georges County, Maryland, Housing Authority, Single-Family Mortgage Revenue, Series 2000A, AMT, 6.150% 08/01/19................................... NR AAA 356 1,500 Prince Georges County, Maryland, PCR Refunding, (Potomac Electric Power Project) Series 1995, 5.750% 03/15/10................................... A1 A- 1,752 2,000 Prince Georges County, Maryland, Solid Waste Management Systems Authority, Revenue Refunding, Series 1993, (FSA Insured), 5.100% 06/15/05................................... Aaa AAA 2,092 500 Prince Georges County, Maryland, Storm Water Management, GO, Series 1993, 5.500% 03/15/13................................... Aa2 AA 518 1,200 Queen Annes County, Maryland, School and Public Facilities GO, Series 2000, 5.250% 01/15/14................................... Aaa AAA 1,341
SEE NOTES TO FINANCIAL STATEMENTS. 115 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $1,000 Rockville, Maryland, GO Refunding, Series 1993, 4.750% 04/15/05................................... Aa1 AA+ $ 1,017 1,000 St. Mary's County, Maryland, GO, Series 1995, (MBIA Insured), 5.700% 03/01/08................................... Aaa AAA 1,107 2,000 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue Refunding, Series 1993C, 4.900% 10/01/08................................... Aa3 AA+ 2,085 3,520 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/13................................... Aa3 AA+ 3,916 3,115 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/14................................... Aa3 AA+ 3,467 1,000 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1997A, 5.125% 04/01/13................................... Aa3 AA+ 1,102 1,975 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 2000A, 5.000% 10/01/08................................... Aa3 AA+ 2,229 2,575 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 2000A, 5.250% 10/01/11................................... Aa3 AA+ 2,932 1,000 Washington County, Maryland, Consolidated Public Improvement GO Refunding, Series 1993, (FGIC Insured), 5.250% 01/01/06................................... Aaa AAA 1,030 1,000 Washington County, Maryland, Sanitation District, GO Refunding, Series 1993F, (FGIC Insured), 5.250% 01/01/06................................... Aaa AAA 1,030 1,000 Washington Suburban Sanitation District Authority, Maryland, General Construction GO, Series 2000, 5.250% 06/01/22................................... Aaa AAA 1,075
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MARYLAND -- (CONTINUED) $3,440 Washington Suburban Sanitation District Authority, Maryland, Water Supply GO Refunding, Series 1993, 5.100% 12/01/07................................... Aaa AAA $ 3,654 2,050 Washington Suburban Sanitation District Authority, Maryland, Water Supply GO, Series 2001, 4.125% 06/01/05................................... Aaa AAA 2,178 1,290 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 4.800% 12/01/10................................... Aaa AAA 1,415 1,355 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 4.900% 12/01/11................................... Aaa AAA 1,498 1,425 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 5.000% 12/01/12................................... Aaa AAA 1,589 -------- 203,794 -------- ALABAMA -- 1.2% 3,000 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1992, AMT, 7.000% 06/01/22................................... Baa2 BBB 3,066 -------- ARKANSAS -- 1.5% 4,000 Crossett, Arkansas, PCR, (Georgia Pacific Corporation Project) Series 1984, 4.875% 10/01/07................................... Ba1 NR 3,708 -------- DISTRICT OF COLUMBIA -- 1.0% 2,000 Washington, District of Columbia, Metropolitan Area Transportation Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.000% 07/01/06................................... Aaa AAA 2,119
SEE NOTES TO FINANCIAL STATEMENTS. 116 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA -- (CONTINUED) $ 350 Washington, District of Columbia, Metropolitan Area Transportation Authority, Revenue Refunding, Series 1993, (FGIC Insured), 6.000% 07/01/10................................... Aaa AAA $ 418 -------- 2,537 -------- GUAM -- 0.2% 600 Guam, Government GO, Series 1993A, 5.200% 11/15/08................................... NR BB 597 -------- ILLINOIS -- 0.8% 1,990 Will County, Illinois, Student Housing Revenue, (Joliet Junior College Project) Series 2002A, 6.625% 09/01/23................................... NR NR 1,969 -------- KANSAS -- 0.4% 1,000 Burlington, Kansas, Environmental Improvement Revenue Refunding, (Power and Light Project) Series 1998K, Mandatory Put 10/01/07 @ 100, 4.750% 09/01/15................................... A2 BBB 1,021 -------- MICHIGAN -- 0.9% 2,000 Southfield, Michigan, Library Building Authority, GO, Series 2000, (MBIA Insured), 5.500% 05/01/24................................... Aaa AAA 2,139 -------- MISSISSIPPI -- 2.0% 1,000 Mississippi State, Hospital Facilities and Equipment Authority, Revenue, (Forrest County General Hospital Project) Series 2000, (FSA Insured), 5.625% 01/01/20................................... Aaa NR 1,099
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MISSISSIPPI -- (CONTINUED) $3,100 Mississippi State, Hospital Facilities and Equipment Authority, Revenue, (Forrest County General Hospital Project) Series 2000, (FSA Insured), 5.500% 01/01/24................................... Aaa NR $ 3,318 500 Warren County, Mississippi, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, AMT, 6.700% 08/01/18................................... Baa2 BBB 533 -------- 4,950 -------- OKLAHOMA -- 0.6% 2,000 Tulsa, Oklahoma, Municipal Airport Transportation Revenue Refunding, Series 2000B, AMT, Mandatory Put 12/01/08 @ 100, 6.000% 06/01/35................................... B2 BB- 1,521 -------- PUERTO RICO -- 0.1% 310 Puerto Rico, Housing Bank and Finance Agency, Single-Family Mortgage Revenue, (Affordable Housing Mortgage - Portfolio I) Series 1995, AMT, (GNMA/FNMA/FHLMC COLL), 6.100% 10/01/15................................... Aaa AAA 327 -------- TENNESSEE -- 1.4% 1,355 Maury County, Tennessee, Industrial Development Board, Multi-Model PCR Refunding, (General Motors Corporation - Saturn Corporation Project) Series 1994, 6.500% 09/01/24................................... A3 BBB+ 1,464
SEE NOTES TO FINANCIAL STATEMENTS. 117 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TENNESSEE -- (CONTINUED) $2,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 2001, 5.000% 09/01/09................................... Baa2 BBB $ 2,115 -------- 3,579 -------- TEXAS -- 4.9% 2,000 Brazos River Authority, Texas, PCR Refunding, (Texas Electric Company Project) Series 2001A, AMT, Mandatory Put 04/01/04 @ 100, 4.950% 10/01/30................................... NR BBB+ 2,032 1,000 Houston, Texas, Independent School District, GO Refunding, Series 1999A, (PSF-GTD), 5.000% 02/15/24................................... Aaa AAA 1,021 2,300 Sabine River, Texas, Pollution Control Authority, Revenue Refunding, (Texas University Electric Company Project) Series 2001A, Mandatory Put 11/01/11 @ 100, 5.500% 05/01/22................................... Baa1 BBB+ 2,366 2,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 6.000% 10/01/16................................... Baa2 BBB- 2,145 2,000 Texas State, Water Development Board, Revenue, Series 1997, 5.000% 07/15/12................................... Aaa AAA 2,201 2,395 Travis County, Texas, Housing Financial Authority, Multifamily Housing Revenue, (Lakeview Apartments Project) Series 2001A, 5.500% 07/01/11................................... A3 NR 2,484 -------- 12,249 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ VIRGINIA -- 0.7% $1,775 Virginia State, Commonwealth Transportation Board, Transportation Revenue, (US Route 58 Corridor Development Project) Series 1993PG-B, 5.350% 05/15/09................................... Aa1 AA+ $ 1,849 -------- WASHINGTON -- 1.2% 2,700 Washington Suburban Sanitation District Authority, Maryland, GO Refunding, Series 2001, 5.000% 06/01/08................................... Aaa AAA 3,032 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $228,375)....................................................... $246,338 --------
SHARES (000) ------- INVESTMENT COMPANIES -- 0.4% (Cost $1,061) 1,061 Nations Tax-Exempt Reserves, Trust Class# $ 1,061 -------- TOTAL INVESTMENTS (Cost $229,436*).................................. 99.0% 247,399 -------- OTHER ASSETS AND LIABILITIES (NET).................. 1.0% Cash.......................................................... $ 2 Receivable for Fund shares sold............................... 70 Dividends receivable.......................................... 1 Interest receivable........................................... 3,732 Payable for Fund shares redeemed.............................. (427) Investment advisory fee payable............................... (40) Administration fee payable.................................... (41) Shareholder servicing and distribution fees payable........... (27) Distributions payable......................................... (706) Accrued Trustees' fees and expenses........................... (97) Accrued expenses and other liabilities........................ (72) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... 2,395 -------- NET ASSETS.......................................... 100.0% $249,794 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 166 Accumulated net realized loss on investments sold............. (232) Net unrealized appreciation of investments.................... 17,963 Paid-in capital............................................... 231,897 -------- NET ASSETS.................................................... $249,794 ========
SEE NOTES TO FINANCIAL STATEMENTS. 118 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - -------------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($197,053,635 / 17,318,530 shares outstanding).............. $11.38 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($26,270,150 / 2,308,909 shares outstanding)............................... $11.38 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $11.76 ======== INVESTOR B SHARES: Net asset value and offering price per share** ($24,068,795 / 2,114,805 shares outstanding)............................... $11.38 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($2,401,737 / 211,093 shares outstanding)................................. $11.38 ========
- --------------- * Federal income tax information (see Note 7). ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Maryland Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): FGIC 10.50%
Nations Maryland Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Education Revenue 11.95% Housing Revenue 12.03%
SEE NOTES TO FINANCIAL STATEMENTS. 119 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 98.8% NORTH CAROLINA -- 96.1% $1,000 Brunswick County, North Carolina, Certificates of Participation, Series 2000, 5.500% 06/01/20................................... Aaa AAA $ 1,097 1,000 Buncombe County, North Carolina, GO Refunding, Series 1993, Prerefunded 07/01/02 @ 102, 5.000% 03/01/03................................... Aa2 AA 1,015 2,000 Cabarrus County, North Carolina, Certificates of Participation, Installment Financing Contract, Series 2001, 5.500% 04/01/13................................... Aa3 AA- 2,299 1,500 Cabarrus County, North Carolina, GO, (MBIA Insured), 5.300% 02/01/13................................... Aaa AAA 1,670 1,200 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 4.750% 07/01/05................................... Aaa AAA 1,283 1,275 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 4.850% 07/01/06................................... Aaa AAA 1,379 1,260 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 5.000% 07/01/07................................... Aaa AAA 1,377 1,000 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 6.000% 07/01/24................................... Aaa AAA 1,110 1,000 Charlotte, North Carolina, GO Refunding, Series 1993, 4.500% 02/01/03................................... Aaa AAA 1,010 1,295 Charlotte, North Carolina, GO Refunding, Series 1995, 5.000% 06/01/07................................... Aaa AAA 1,406 1,000 Charlotte, North Carolina, GO, Series 2000, 5.500% 06/01/12................................... Aaa AAA 1,158 1,570 Charlotte, North Carolina, GO, Series 2002C, 5.000% 07/01/20................................... Aaa AAA 1,675
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,265 Charlotte, North Carolina, GO, Series 2002C, 5.000% 07/01/22................................... Aaa AAA $ 1,331 1,000 Charlotte, North Carolina, Water and Sewer GO, Series 1994, Prerefunded 02/01/04 @ 102, 5.800% 02/01/16................................... Aaa AAA 1,076 1,670 Charlotte, North Carolina, Water and Sewer GO, Series 1996, 5.500% 05/01/06................................... Aaa AAA 1,867 1,855 Charlotte, North Carolina, Water and Sewer GO, Series 1998, 4.750% 02/01/12................................... Aaa AAA 2,026 2,545 Charlotte, North Carolina, Water and Sewer Systems Revenue, Series 1999, 5.375% 06/01/19................................... Aa1 AAA 2,947 2,000 Charlotte-Mecklenburg Hospital Authority, Revenue, (Carolinas Healthcare System Project) Series 1997A, 5.000% 01/15/17................................... Aa3 AA 2,082 3,000 Charlotte-Mecklenburg Hospital Authority, Revenue, (Carolinas Healthcare System Project) Series 1997A, 5.125% 01/15/22................................... Aa3 AA 3,087 1,000 Cleveland County, North Carolina, GO Refunding, Series 1993, (FGIC Insured), 5.100% 06/01/05................................... Aaa AAA 1,033 1,490 Concord, North Carolina, Certificate of Participation, Series 2001, (MBIA Insured), 5.000% 06/01/17................................... Aaa AAA 1,600 500 Concord, North Carolina, GO Refunding, Series 1992, 6.200% 06/01/05................................... Aa2 AA- 509 1,000 Concord, North Carolina, Utilities System Revenue, Series 1993, (MBIA Insured), 5.200% 12/01/02................................... Aaa AAA 1,006
SEE NOTES TO FINANCIAL STATEMENTS. 120 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,000 Craven County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, PCR Refunding, (Weyerhaeuser Company Project) Series 1992, 6.350% 01/01/10................................... NR BBB $ 1,024 2,120 Cumberland County, North Carolina, GO Refunding, Series 1998, (FGIC Insured), 4.750% 02/01/10................................... Aaa AAA 2,298 1,000 Cumberland County, North Carolina, GO, Series 1998, (FGIC Insured), 5.000% 03/01/17................................... Aaa AAA 1,070 2,300 Durham and Wake County, North Carolina, Special Apartment District, GO Refunding, Series 1993, 5.000% 04/01/03................................... Aaa AAA 2,339 2,000 Durham County, North Carolina, GO Refunding, Series 2002, 5.000% 03/01/07................................... Aaa AAA 2,218 1,000 Durham County, North Carolina, GO, Series 2002B, 5.000% 04/01/15................................... Aaa AAA 1,103 1,000 Durham, North Carolina, Water and Sewer Utility System, Revenue, Series 2001, 5.250% 06/01/16................................... Aa3 AA 1,108 1,150 Fayetteville, North Carolina, Public Works Commission, Revenue Refunding, Series 1997, (FSA Insured), 5.250% 03/01/07................................... Aaa AAA 1,282 2,000 Forsyth County, North Carolina, GO Refunding, Series 1993A, 4.750% 03/01/06................................... Aaa AAA 2,098 1,500 Gaston County, North Carolina, GO, Series 2002, (AMBAC Insured), 5.250% 06/01/20................................... Aaa AAA 1,649
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,000 Greensboro, North Carolina, Combined Enterprise Systems Revenue, Series 1998A, 5.000% 06/01/18................................... Aa3 AA- $ 1,051 1,305 Greensboro, North Carolina, Enterprise Systems Revenue, Series 1998A, 5.500% 06/01/08................................... Aa3 AA- 1,487 1,000 Greensboro, North Carolina, Public Improvement GO, Series 1998, 4.700% 04/01/10................................... Aa1 AAA 1,088 2,000 Greenville, North Carolina, Combined Enterprise Systems Revenue, Series 1994, 6.000% 09/01/10................................... A2 A+ 2,192 1,000 Greenville, North Carolina, Utilities Commission Revenue, Series 2000A, (MBIA Insured), 5.500% 09/01/19................................... Aaa AAA 1,107 1,025 Guilford County, North Carolina, Public Improvement GO, Series 2000B, 5.000% 10/01/06................................... Aa1 AAA 1,136 4,000 Haywood County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding, (Champion International Corporation Project) Series 1999, AMT, 6.400% 11/01/24................................... Baa2 NR 4,220 2,000 Haywood County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1993, AMT, 5.500% 10/01/18................................... Baa2 BBB 2,000 1,275 High Point, North Carolina, Water and Sewer GO, Series 2002, (MBIA Insured), 4.500% 06/01/14................................... Aaa AAA 1,375
SEE NOTES TO FINANCIAL STATEMENTS. 121 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,955 Iredell County, North Carolina, Public Facilities Corporate Installment Payment Revenue, (School Projects) Series 2000, (AMBAC Insured), 5.500% 06/01/09................................... Aaa NR $ 2,243 2,180 Iredell County, North Carolina, Public Facilities Corporate Installment Payment Revenue, (School Projects) Series 2000, (AMBAC Insured), 5.125% 06/01/18................................... Aaa NR 2,340 1,305 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/12................................... Aaa AAA 1,496 1,925 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/15................................... Aaa AAA 2,203 2,700 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/16................................... Aaa AAA 3,090 390 Lower Cape Fear, North Carolina, Water and Sewer Authority, Revenue, Series 1993, AMT, 5.200% 03/01/04................................... A2 BBB 403 1,300 Martin County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Weyerhaeuser Company Project) Series 1993, AMT, 5.650% 12/01/23................................... Baa2 BBB 1,277 1,000 Mecklenburg County, North Carolina, GO Refunding, Series 1993, 4.250% 04/01/05................................... Aaa AAA 1,060 1,000 Mecklenburg County, North Carolina, GO Refunding, Series 1993, 6.000% 04/01/11................................... Aaa AAA 1,205
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,800 Mecklenburg County, North Carolina, GO, Series 2000D, 5.000% 04/01/11................................... Aaa AAA $ 2,019 1,170 Mecklenburg County, North Carolina, GO, Series 2001A, 5.000% 04/01/16................................... Aaa AAA 1,285 3,000 Mecklenburg County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Fluor Corporation Project) Series 1993, 5.250% 12/01/09................................... NR A 3,064 1,000 Monroe, North Carolina, Combined Enterprise Systems, Revenue, Series 1994, Prerefunded 03/01/04 @ 102, 6.000% 03/01/14................................... A3 A 1,081 1,000 Morganton, North Carolina, Water and Sewer GO, Series 1995, (FGIC Insured), 5.600% 06/01/10................................... Aaa AAA 1,109 1,195 Morganton, North Carolina, Water and Sewer GO, Series 1995, (FGIC Insured), 5.700% 06/01/11................................... Aaa AAA 1,329 2,220 New Hanover County, North Carolina, GO, Series 1995, 5.500% 03/01/10................................... Aa2 AA- 2,439 1,750 New Hanover County, North Carolina, GO, Series 2001, 4.600% 06/01/14................................... Aa2 AA- 1,897 2,000 New Hanover County, North Carolina, GO, Series 2001, 5.000% 06/01/17................................... Aa2 AA- 2,184 1,000 New Hanover County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Occidental Petroleum Corporation Project) Series 1994, AMT, 6.500% 08/01/14................................... Baa2 BBB 1,024
SEE NOTES TO FINANCIAL STATEMENTS. 122 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $2,750 North Carolina Medical Care Commission, Hospital Revenue, (Gaston Memorial Hospital Project) Series 1995, 5.400% 02/15/11................................... A1 A+ $ 2,945 4,725 North Carolina State, GO, Series 1994A, 4.700% 02/01/10................................... Aa1 AAA 4,912 4,000 North Carolina State, GO, Series 1997A, 5.100% 03/01/06................................... Aa1 AAA 4,392 5,000 North Carolina State, GO, Series 2001A, 4.750% 03/01/14................................... Aa1 AAA 5,463 1,000 North Carolina, Appalachian State University, Revenue Refunding, (Utility Systems Project) Series 1998, (MBIA Insured), 5.000% 05/15/12................................... Aaa AAA 1,128 1,000 North Carolina, Appalachian State University, Revenue Refunding, Series 1998, (MBIA Insured), 5.000% 05/15/18................................... Aaa AAA 1,057 2,165 North Carolina, Eastern Municipal Power Authority, Revenue, Series 1986A, 5.000% 01/01/17................................... Aaa BBB 2,404 1,680 North Carolina, Housing Finance Agency, (Home Ownership Project) Series 2000A-8, AMT, 5.950% 07/01/10................................... Aa2 AA 1,806 1,165 North Carolina, Housing Finance Agency, (Home Ownership Project) Series 2000A-8, AMT, 6.050% 07/01/12................................... Aa2 AA 1,247 1,000 North Carolina, Housing Finance Agency, (Home Ownership Project) Series 2002A-14, AMT (AMBAC Insured), 4.400% 07/01/10................................... Aaa AAA 1,049 1,950 North Carolina, Housing Finance Agency, Multi- Family Housing Revenue Refunding, Series 1992B, (FHA COLL), 6.900% 07/01/24................................... Aa2 NR 1,994
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,210 North Carolina, Housing Finance Agency, Revenue, (Home Ownership Project) Series 1998A-2, AMT, 5.200% 01/01/20................................... Aa2 AA $ 1,237 975 North Carolina, Housing Finance Agency, Revenue, (Home Ownership Project) Series 1999A-6, AMT, 6.000% 01/01/16................................... Aa2 AA 1,046 1,500 North Carolina, Housing Finance Agency, Revenue, Series 1999A-3, AMT, 5.150% 01/01/19................................... Aa2 AA 1,539 3,925 North Carolina, Housing Finance Agency, Single-Family Housing Revenue, (Home Ownership Project) Series 1998A-1, AMT, 5.350% 01/01/17................................... Aa2 AA 4,095 695 North Carolina, Housing Finance Agency, Single-Family Housing Revenue, Series 1994Y, 6.300% 09/01/15................................... Aa2 AA 722 2,475 North Carolina, Housing Finance Agency, Student Housing Revenue, (Appalachian Student Housing Project) Series 2000A, (First Union National Bank LOC), Mandatory Put 09/01/03 @ 100, 4.750% 07/01/31................................... Aa3 NR 2,524 2,985 North Carolina, Housing Financing Agency, Series 1999A-5, AMT, 5.550% 01/01/19................................... Aa2 AA 3,108 2,605 North Carolina, Medical Care Commission, Health Care Facilities Revenue Refunding, (Novant Health, Inc. Project) Series 1998A, (MBIA Insured), 5.000% 10/01/08................................... Aaa AAA 2,915
SEE NOTES TO FINANCIAL STATEMENTS. 123 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $2,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue Refunding, (Presbyterian Health Care Services Project) Series 1993, 5.250% 10/01/04................................... A1 AA- $ 2,105 1,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue Refunding, (Presbyterian Health Care Services Project) Series 1993, 5.300% 10/01/05................................... A1 AA- 1,050 3,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue Refunding, (Presbyterian Health Care Services Project) Series 1993, 5.500% 10/01/14................................... A1 AA- 3,103 2,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp Inc. Project) Series 1996, 5.100% 05/01/07................................... A1 AA- 2,189 1,715 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp Inc. Project) Series 1996, 5.125% 05/01/08................................... A1 AA- 1,857 2,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Duke University Hospital Project) Series 1996C, 5.250% 06/01/17................................... Aa3 NR 2,064 2,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Gaston Memorial Hospital Project) Series 1995, (AMBAC-TCRS Insured), 5.000% 02/15/05................................... Aaa AAA 2,149
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,130 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Gaston Memorial Hospital Project) Series 1995, (AMBAC-TCRS Insured), 5.250% 02/15/07................................... Aaa AAA $ 1,252 660 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.600% 08/15/06................................... Baa2 NR 689 1,500 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Moore Regal Hospital Project) Series 1993, 5.200% 10/01/13................................... Aa3 AA 1,576 1,500 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Pitt County Memorial Hospital Project) Series 1998B, 4.750% 12/01/28................................... Aa3 AA- 1,478 1,620 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Rex Hospital, Inc. Project) Series 1993, Prerefunded 06/01/03 @ 102, 5.600% 06/01/04................................... Aaa A+ 1,697 4,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Rex Hospital, Inc. Project) Series 1993, Prerefunded 06/01/03 @ 102, 6.250% 06/01/17................................... Aaa A+ 4,206 1,000 North Carolina, Medical Care Commission, Hospital Revenue Refunding, (Stanley Memorial Hospital Project) Series 1996, (AMBAC Insured), 5.250% 10/01/06................................... Aaa AAA 1,115
SEE NOTES TO FINANCIAL STATEMENTS. 124 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,000 North Carolina, Medical Care Commission, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1998B, 5.000% 12/01/18................................... Aa3 AA- $ 1,039 1,000 North Carolina, Medical Care Community Hospital Revenue, (Northeast Medical Center Project) Series 2002A, (AMBAC Insured), 5.000% 11/01/10................................... Aaa AAA 1,127 1,000 North Carolina, Municipal Power Agency Number 1, Revenue Refunding, (Catawba Electric Project) Series 1992, (FGIC Insured), 6.200% 01/01/18................................... Aaa AAA 1,031 2,000 North Carolina, Municipal Power Agency Number 1, Revenue, Series 1992, (MBIA-IBC Insured), 7.250% 01/01/07................................... Aaa AAA 2,377 1,000 North Carolina, State Education Assistance Authority, Revenue, Series 1995A, AMT, (GTD STD LNS), 5.300% 07/01/03................................... A2 NR 1,022 1,500 Onslow County, North Carolina, Combined Enterprise Systems, Revenue, Series 1994, (MBIA Insured), 5.875% 06/01/09................................... Aaa AAA 1,629 1,625 Orange County, North Carolina, GO, Series 1994, Prerefunded 02/01/04 @ 102, 5.500% 02/01/12................................... Aa1 AA+ 1,742 1,000 Orange County, North Carolina, GO, Series 1994, Prerefunded 02/01/04 @ 102, 5.500% 02/01/14................................... Aa1 AA+ 1,072 1,000 Orange County, North Carolina, GO, Series 2000, 5.300% 04/01/17................................... Aa1 AA+ 1,105
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $4,645 Orange County, North Carolina, GO, Series 2000, 5.300% 04/01/18................................... Aa1 AA+ $ 5,131 1,390 Pitt County, North Carolina, Certificates of Participation, (School Facilities Project) Series 2000B, 5.750% 04/01/16................................... Aaa AAA 1,586 1,000 Pitt County, North Carolina, Certificates of Participation, (School Facilities Project) Series 2000B, 5.500% 04/01/25................................... Aaa AAA 1,076 1,240 Pitt County, North Carolina, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1995, 5.375% 12/01/10................................... Aaa NR 1,389 1,000 Pitt County, North Carolina, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1995, 5.250% 12/01/21................................... Aaa NR 1,059 1,000 Raleigh, North Carolina, Combined Enterprise System Revenue, Series 1996, 5.250% 03/01/07................................... Aa1 AAA 1,118 1,910 Raleigh, North Carolina, GO, Series 1996, 5.300% 06/01/16................................... Aaa AAA 2,116 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.200% 06/01/12................................... Aaa AAA 1,120 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.300% 06/01/13................................... Aaa AAA 1,120 1,595 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.500% 06/01/14................................... Aaa AAA 1,799
SEE NOTES TO FINANCIAL STATEMENTS. 125 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.500% 06/01/15................................... Aaa AAA $ 1,128 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.750% 06/01/22 (a)............................... Aaa AAA 1,101 1,000 Robeson County, North Carolina, Industrial Facilities, PCR Refunding, (Campbell Soup Company Project) Series 1991, 6.400% 12/01/06................................... NR A 1,155 1,000 Rockingham, North Carolina, Certificates of Participation, Series 2002, (AMBAC Insured), 5.000% 04/01/10................................... Aaa AAA 1,119 1,690 University of North Carolina, Chapel Hill, Hospital Revenue Refunding, Series 1999, (AMBAC Insured), 5.250% 02/15/12................................... Aaa AAA 1,891 1,000 University of North Carolina, Charlotte, Revenue Refunding, (Housing and Dining Systems Project) Series 1993M, (MBIA Insured), Prerefunded 02/01/04 @ 102, 4.800% 01/01/04................................... Aaa AAA 1,040 3,000 University of North Carolina, Revenue Refunding, Series 2002B, 5.000% 12/01/06................................... Aa1 AA+ 3,329 1,000 Wake County, North Carolina, GO Refunding, Series 1993, 4.700% 04/01/05................................... Aaa AAA 1,024 3,835 Wake County, North Carolina, GO, Series 1996, 4.600% 03/01/11................................... Aaa AAA 4,067 3,065 Wake County, North Carolina, Hospital Revenue, Series 1993, (MBIA Insured), 5.125% 10/01/26................................... Aaa AAA 3,347
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ NORTH CAROLINA -- (CONTINUED) $1,000 Wake County, North Carolina, Public Improvement GO, Series 1994, 4.600% 02/01/06................................... Aaa AAA $ 1,044 5,000 Wake County, North Carolina, Public Improvement GO, Series 1994, 4.800% 02/01/10................................... Aaa AAA 5,271 1,200 Wayne County, North Carolina, GO Refunding, Series 1993, (MBIA Insured), 4.900% 04/01/05................................... Aaa AAA 1,290 1,000 Wilmington, North Carolina, Public Improvement GO, Series 1997A, (FGIC Insured), 5.000% 04/01/11................................... Aaa AAA 1,107 1,000 Wilmington, North Carolina, Public Improvement GO, Series 1997A, (FGIC Insured), 5.000% 04/01/13................................... Aaa AAA 1,100 1,000 Wilmington, North Carolina, Water Authority, GO, Series 1994, 5.700% 06/01/15................................... Aa3 AA- 1,088 1,000 Wilson, North Carolina, GO, Series 2000, (AMBAC Insured), 5.100% 06/01/14................................... Aaa AAA 1,109 -------- 232,617 -------- PUERTO RICO -- 0.5% 1,000 Puerto Rico, Electric Power Authority, Power Revenue Refunding, Series 1995Y, (MBIA Insured), 7.000% 07/01/07................................... Aaa AAA 1,209 -------- SOUTH CAROLINA -- 0.8% 1,500 Calhoun County, South Carolina, Solid Waste Disposal Facility Revenue, (Carolina Eastman Company Project) Series 1992, AMT, 6.750% 05/01/17................................... A2 BBB+ 1,918 --------
SEE NOTES TO FINANCIAL STATEMENTS. 126 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- 0.9% $2,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, 5.000% 10/01/07................................... Baa2 BBB- $ 2,119 -------- WASHINGTON -- 0.5% 1,150 Washington State, Public Power Supply Systems, Revenue Refunding, Series 1993A, (MBIA-IBC Insured), 5.800% 07/01/07................................... Aaa AAA 1,313 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $221,151)....................................................... 239,176 --------
SHARES (000) - --------- INVESTMENT COMPANIES -- 0.3% (Cost $642) 642 Nations Tax-Exempt Reserves, Trust Class#........................................... 642 -------- TOTAL INVESTMENTS (Cost $221,793*)................................ 99.1% 239,818 -------- OTHER ASSETS AND LIABILITIES (NET)................ 0.9% Receivable for investment securities sold................ $ 1,000 Receivable for Fund shares sold.......................... 449 Dividends receivable..................................... 2 Interest receivable...................................... 3,411 Payable for Fund shares redeemed......................... (481) Investment advisory fee payable.......................... (40) Administration fee payable............................... (40) Shareholder servicing and distribution fees payable...... (22) Distributions payable.................................... (746) Payable for investment securities purchased.............. (1,097) Accrued Trustees' fees and expenses...................... (93) Accrued expenses and other liabilities................... (78) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................. 2,265 -------- NET ASSETS........................................ 100.0% $242,083 ======== NET ASSETS CONSIST OF: Undistributed net investment income...................... $ 727 Accumulated net realized loss on investments sold........ (1,004) Net unrealized appreciation of investments............... 18,025 Paid-in capital.......................................... 224,335 -------- NET ASSETS............................................... $242,083 ========
VALUE - -------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($200,780,499 / 18,372,069 shares outstanding)......... $10.93 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($19,309,474 / 1,766,448 shares outstanding)........... $10.93 ======== Maximum sales charge..................................... 3.25% Maximum offering price per share......................... $11.30 INVESTOR B SHARES: Net asset value and offering price per share** ($20,847,386 / 1,907,900 shares outstanding)........... $10.93 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($1,145,327 / 104,770 shares outstanding).............. $10.93 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations North Carolina Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): MBIA 11.6%
Nations North Carolina Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 17.2%
SEE NOTES TO FINANCIAL STATEMENTS. 127 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 97.4% SOUTH CAROLINA -- 92.8% $1,100 Anderson County, South Carolina, GO Revenue Refunding, Series 1992, 6.400% 04/01/03................................... Aa3 AA- $ 1,126 1,300 Anderson County, South Carolina, GO Revenue Refunding, Series 1992, 6.500% 04/01/04................................... Aa3 AA- 1,331 1,240 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.200% 07/01/03................................... Aaa AAA 1,274 1,000 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.500% 07/01/06................................... Aaa AAA 1,049 1,500 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.600% 07/01/07................................... Aaa AAA 1,574 1,000 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.600% 07/01/08................................... Aaa AAA 1,050 1,725 Beaufort County, South Carolina, School District, GO, Series 2000B, (SCSDE), 5.500% 03/01/16................................... Aa1 AA+ 1,931 1,200 Beaufort County, South Carolina, School District, GO, Series 2000C, (SCSDE), 5.125% 03/01/12................................... Aa1 AA+ 1,325 1,000 Berkeley County, South Carolina, Refunding and Improvement Authority, GO, Series 1993, (FGIC Insured), 5.300% 05/01/04................................... Aaa AAA 1,041 1,000 Berkeley County, South Carolina, Refunding and Improvement Authority, GO, Series 1993, (FGIC Insured), 5.400% 05/01/05................................... Aaa AAA 1,042
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $1,000 Berkeley County, South Carolina, Refunding and Improvement Authority, GO, Series 1993, (FGIC Insured), 5.500% 05/01/06................................... Aaa AAA $ 1,043 2,500 Berkeley County, South Carolina, School District, GO, Series 2000, (SCSDE), 5.000% 04/01/21................................... Aa1 AA+ 2,616 1,345 Brookland Cayce, South Carolina, School District No. 002, GO, Series 2002, (FSA SCSDE insured), 4.000% 03/01/14................................... Aaa AAA 1,380 1,650 Brookland Cayce, South Carolina, School District No. 002, GO, Series 2002, (FSA SCSDE insured), 4.000% 03/01/15................................... Aaa AAA 1,671 2,000 Calhoun County, South Carolina, Solid Waste Disposal Facility Revenue, (Carolina Eastman Company Project) Series 1992, AMT, 6.750% 05/01/17................................... A2 BBB+ 2,557 1,000 Camden, South Carolina, Combined Public Utilities Revenue Refunding and Improvement, Series 1997, (MBIA Insured), 5.500% 03/01/17................................... Aaa AAA 1,105 3,000 Charleston County, South Carolina, Hospital Facilities, Revenue Refunding and Improvement, (Bon Secours Health Systems Project) Series 1993, (FSA Insured), 5.500% 08/15/10................................... Aaa AAA 3,150 500 Charleston County, South Carolina, Hospital Facilities, Revenue Refunding and Improvement, (Bon Secours Health Systems Project) Series 1993, (FSA Insured), 5.625% 08/15/25................................... Aaa AAA 526
SEE NOTES TO FINANCIAL STATEMENTS. 128 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $1,000 Charleston County, South Carolina, Hospital Facilities, Revenue Refunding and Improvement, (Medical Society Health Project) Series 1992, (MBIA Insured), 6.000% 10/01/09................................... Aaa AAA $ 1,020 2,370 Charleston County, South Carolina, Hospital Facilities, Revenue, (Care Alliance Health Services Project) Series 1999A, (FSA Insured), 5.125% 08/15/15................................... Aaa AAA 2,664 4,500 Charleston County, South Carolina, Hospital Facilities, Revenue, (University Medical Association) Series 1999B, 1.500% 05/15/27................................... Aaa AAA 4,500 1,000 Charleston County, South Carolina, Public Improvement Authority, GO, Series 1994, (State Aid Withholding), Prerefunded 06/01/06 @ 100, 5.500% 06/01/14................................... Aa1 AA+ 1,120 1,000 Charleston County, South Carolina, Revenue, (Care Alliance Health Services Project) Series 1999A, (FSA Insured), 5.000% 08/15/12................................... Aaa AAA 1,089 1,040 Charleston County, South Carolina, Solid Waste User Fee Revenue, Series 1994, (MBIA Insured), 5.800% 01/01/06................................... Aaa AAA 1,144 5,105 Charleston, South Carolina, Waterworks and Sewer Capital Improvement Revenue Refunding, Series 1998, 5.250% 01/01/08................................... Aa3 AA- 5,720 7,500 Charleston, South Carolina, Waterworks and Sewer Capital Improvement Revenue Refunding, Series 1998, (FGIC Insured), 4.500% 01/01/24................................... Aaa AAA 7,330 1,000 Columbia, South Carolina, Parking Facilities Revenue Refunding, Series 1994, (AMBAC Insured), 5.750% 12/01/09................................... Aaa AAA 1,102
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $7,000 Columbia, South Carolina, Waterworks and Sewer Systems Revenue Refunding, Series 1993, 5.500% 02/01/09................................... Aa2 AA $ 7,995 2,200 Columbia, South Carolina, Waterworks and Sewer Systems Revenue, Series 1991, 1.489%& 02/01/03.................................. Aa2 AA 2,189 1,750 Darlington County, South Carolina, IDR, (Nucor Corporation Project) Series 1993A, AMT, 5.750% 08/01/23................................... A1 A+ 1,799 1,500 Darlington County, South Carolina, IDR, (Sonoco Products Company Project) Series 1995, AMT, 6.125% 06/01/25................................... A2 A- 1,571 2,000 Darlington County, South Carolina, PCR, (Carolina Power and Light - Annual Tender Project) Series 1983, 6.600% 11/01/10................................... A2 BBB+ 2,066 1,000 Darlington County, South Carolina, PCR, (Carolina Power and Light - Annual Tender Project) Series 1983, (MBIA-IBC Insured), 6.600% 11/01/10................................... Aaa AAA 1,034 1,250 Florence, South Carolina, Water and Sewer Revenue Refunding, Series 1993, (AMBAC Insured), 5.150% 03/01/06................................... Aaa AAA 1,293 500 Georgetown County, South Carolina, Environmental Revenue, (International Paper Company Project) Series 1997A, AMT, 5.700% 10/01/21................................... Baa2 BBB 497 5,000 Georgetown County, South Carolina, PCR Refunding, (International Paper Company Project) Series 1999A, 5.125% 02/01/12................................... Baa2 BBB 5,176
SEE NOTES TO FINANCIAL STATEMENTS. 129 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $2,480 Georgetown County, South Carolina, School District, GO, Series 2000, (SCSDE), 5.500% 03/01/09................................... Aa1 AA+ $ 2,847 1,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1993C, 5.300% 05/01/04................................... Aa3 AA 1,039 4,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1993C, 5.400% 05/01/05................................... Aa3 AA 4,149 2,400 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1993C, 5.500% 05/01/11................................... Aa3 AA 2,470 1,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1996A, (GTY-AGMT), 5.400% 05/01/07................................... Aa3 AA 1,099 4,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1996B, (GTY-AGMT), 5.250% 05/01/17................................... Aa3 AA 4,141 1,385 Greenville, South Carolina, Hospital Facilities Revenue, Series 2001, 5.500% 05/01/26................................... Aaa AAA 1,493 2,000 Greenville, South Carolina, Water Utility Improvement Waterworks Revenue, Series 1997, 6.000% 02/01/06................................... Aa1 AAA 2,250 1,000 Greenville, South Carolina, Water Utility Improvement Waterworks Revenue, Series 1997, 6.000% 02/01/08................................... Aa1 AAA 1,147 1,500 Greenville, South Carolina, Water Utility Improvement, Waterworks Revenue, Series 1997, 5.500% 02/01/22................................... Aa1 AAA 1,601 1,885 Greenwood, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1993, (AMBAC Insured), 5.500% 12/01/06................................... Aaa AAA 2,007
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $2,000 Greenwood, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1993, (AMBAC Insured), 5.500% 12/01/07................................... Aaa AAA $ 2,127 1,060 Greenwood, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1993, (AMBAC Insured), 5.500% 12/01/08................................... Aaa AAA 1,129 1,000 Hilton Head Island, South Carolina, GO, Series 2001, 5.000% 03/01/13................................... Aa3 AA 1,094 1,100 Horry County, South Carolina, Hospital Facilities Revenue, (Conway Hospital, Inc. Project) Series 1998, (AMBAC Insured), 4.750% 07/01/10................................... Aaa AAA 1,184 1,200 Horry County, South Carolina, Hospital Facilities Revenue, (Conway Hospital, Inc. Project) Series 1998, (AMBAC Insured), 4.875% 07/01/11................................... Aaa AAA 1,293 1,275 Horry County, South Carolina, School District, GO, Series 1995B, (MBIA Insured, SCSDE), 5.700% 03/01/16................................... Aaa AAA 1,307 1,180 Lexington County, South Carolina, Health Services District, Revenue Refunding, (Health Service District and Lexmed, Inc. Project) Series 1997, (FSA Insured), 5.500% 11/01/06................................... Aaa AAA 1,320 3,000 Lexington County, South Carolina, Health Services District, Revenue Refunding, Series 1997, (FSA Insured), 5.125% 11/01/21................................... Aaa AAA 3,118 2,000 Lexington, South Carolina, Water and Sewer Authority, Revenue, Series 1997, Prerefunded 10/01/14 @ 100, 5.450% 04/01/19................................... NR AA 2,276
SEE NOTES TO FINANCIAL STATEMENTS. 130 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $1,575 Medical University, South Carolina, Hospital Facilities Revenue, Series 1999, 5.500% 07/01/09................................... Baa2 BBB+ $ 1,814 1,980 Mount Pleasant, South Carolina, Water and Sewer Revenue Refunding and Improvement, Series 2002, (FGIC Insured), 5.250% 12/01/16................................... Aaa AAA 2,208 2,500 Myrtle Beach, South Carolina, Water and Sewer Improvement Revenue Refunding, Series 1993, (MBIA Insured), 5.000% 03/01/03................................... Aaa AAA 2,536 1,750 North Charleston, South Carolina, GO Refunding, Series 1993, 5.600% 08/01/07................................... A2 AA- 1,841 1,725 North Charleston, South Carolina, GO Refunding, Series 1993, 5.750% 08/01/08................................... A2 AA- 1,818 3,040 North Charleston, South Carolina, Sewer District, Revenue Refunding, Series 2002, (FSA Insured), 5.500% 07/01/17................................... Aaa AAA 3,481 1,000 Oconee County, South Carolina, School District, GO, Series 1994, (MBIA Insured), 5.100% 01/01/13................................... Aaa AAA 1,056 1,600 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding, Series 1992, (MBIA Insured), 6.000% 01/01/05................................... Aaa AAA 1,750 5,000 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding, Series 1996B, (MBIA Insured), 5.250% 01/01/09................................... Aaa AAA 5,461 2,020 Richland County, South Carolina, GO Refunding, Series 1994B, (State Aid Withholding), 4.750% 03/01/03................................... Aa1 AA 2,048 2,120 Richland County, South Carolina, GO Refunding, Series 1994B, (State Aid Withholding), 4.850% 03/01/04................................... Aa1 AA 2,196
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $2,250 Richland County, South Carolina, GO Refunding, Series 1994B, (State Aid Withholding), 4.950% 03/01/05................................... Aa1 AA $ 2,332 3,000 Richland County, South Carolina, PCR Refunding, (Union Camp Corporation Project) Series 1992C, 5.875% 11/01/02................................... Baa2 BBB 3,009 6,000 Richland County, South Carolina, School District Number 1, GO, Series 1996, (SCSDE), 4.625% 03/01/22................................... Aa1 AA+ 6,018 1,590 Richland County, South Carolina, School District Number 2, GO Refunding, Series 1994A, (MBIA Insured, SCSDE), 4.900% 03/01/04................................... Aaa AAA 1,663 1,655 Richland County, South Carolina, School District Number 2, GO Refunding, Series 1994A, (MBIA Insured, SCSDE), 5.000% 03/01/05................................... Aaa AAA 1,762 1,000 Rock Hill, South Carolina, Combined Public Utility Systems Revenue, Series 1991, (FGIC Insured), 6.200% 01/01/03................................... Aaa AAA 1,012 6,135 South Carolina State, Capital Improvement GO, Series 1996A, 3.500% 07/01/06................................... Aaa AAA 6,436 3,350 South Carolina State, Capital Improvement GO, Series 2001A, 3.500% 01/01/15................................... Aaa AAA 3,239 1,000 South Carolina State, Capital Improvement GO, Series 2001A, 3.500% 01/01/16................................... Aaa AAA 951 1,245 South Carolina State, GO, Series 2000A, 4.800% 03/01/09................................... Aaa AAA 1,380 5,000 South Carolina State, Housing Finance and Development Authority, Multi-Family Housing Revenue, (United Dominion Realty Trust Project) Series 1994, AMT, Mandatory Put 05/01/04 @ 100, 6.500% 05/01/24................................... NR BBB- 5,056
SEE NOTES TO FINANCIAL STATEMENTS. 131 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $2,070 South Carolina State, Housing Finance and Development Authority, Rental Housing Revenue, (Windsor Shores Project) Series 1993B, (FHA Insured), 5.600% 07/01/16................................... NR AA $ 2,095 4,145 South Carolina State, Housing Finance and Development Authority, Revenue Refunding, Series 1992A, (FNMA/FHA COLL), 6.800% 11/15/11................................... Aaa NR 4,233 1,250 South Carolina State, Jobs Economic Development Authority, Hospital Facility Revenue, (Georgetown Memorial Hospital Project) Series 2001, 5.250% 02/01/21................................... NR AA 1,307 3,495 South Carolina State, Port Authority, Revenue, Series 1991, AMT, (AMBAC Insured), 6.750% 07/01/21................................... Aaa AAA 3,578 4,565 South Carolina State, Port Authority, Revenue, Series 1998, AMT, (FSA Insured), 5.250% 07/01/13................................... Aaa AAA 4,923 1,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 1993A, 5.200% 07/01/03................................... Aa2 AA- 1,027 1,500 South Carolina State, Public Service Authority, Revenue Refunding, Series 1993A, (MBIA Insured), 5.300% 07/01/05................................... Aaa AAA 1,544 2,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 1993C, (AMBAC Insured), 5.100% 01/01/11................................... Aaa AAA 2,058 2,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 2002D, (FSA Insured), 5.000% 01/01/18................................... Aaa AAA 2,148
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $2,000 South Carolina State, Public Service Authority, Revenue, Series 1999A, (MBIA Insured), 5.625% 01/01/13................................... Aaa AAA $ 2,297 5,000 South Carolina, Educational Facilities for Non-Profit Institutions, Revenue, (Furman University Project) Series 1996A, (MBIA Insured), 5.500% 10/01/26................................... Aaa AAA 5,291 1,500 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Oconee Memorial Hospital, Inc. Project) Series 1995, (CONNIE LEE Insured), 6.150% 03/01/15................................... NR AAA 1,637 5,500 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 7.125% 12/15/15................................... Baa2 BBB 6,041 6,500 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (South Carolina Baptist Hospital Project) Series 1993, (AMBAC Insured), 5.450% 08/01/15................................... Aaa AAA 6,721 4,375 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Series 1999, (FSA Insured), 5.300% 02/01/14................................... Aaa AAA 4,755 3,340 South Carolina, Transportation Infrastructure Book Revenue, Junior Lien, Series 2001B, (AMBAC Insured), 5.250% 10/01/13................................... Aaa NR 3,777 1,000 South Carolina, Transportation Infrastructure Revenue, Series 1998A, (MBIA Insured), 5.000% 10/01/12................................... Aaa AAA 1,106
SEE NOTES TO FINANCIAL STATEMENTS. 132 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $1,000 South Carolina, Transportation Infrastructure Revenue, Series 1998A, (MBIA Insured), 4.500% 10/01/17................................... Aaa AAA $ 1,025 1,025 Spartanburg County, South Carolina, GO, Series 1992, 5.800% 02/01/05................................... Aa2 AA 1,060 1,005 Spartanburg County, South Carolina, GO, Series 1992, 5.700% 02/01/06................................... Aa2 AA 1,039 1,000 Spartanburg County, South Carolina, GO, Series 1992, 5.700% 02/01/09................................... Aa2 AA 1,033 1,000 Spartanburg County, South Carolina, Health Services District, Hospital Revenue Refunding, Series 1997B, (MBIA Insured), 5.125% 04/15/17................................... Aaa AAA 1,042 1,275 Spartanburg County, South Carolina, School District Number 007, GO, Series 2001, (SCSDE), 4.000% 03/01/12................................... Aa1 AA+ 1,341 3,240 Spartanburg County, South Carolina, School District Number 007, GO, Series 2001, (SCSDE), 4.125% 03/01/13................................... Aa1 AA+ 3,421 1,250 Spartanburg, South Carolina, Sanitary Sewer District, Sewer System Revenue Refunding, Series 1999B, (MBIA Insured), 5.000% 03/01/26................................... Aaa AAA 1,289 2,850 Spartanburg, South Carolina, Sewer District, Sewer Systems Revenue, Series 1997, AMT, (MBIA Insured), Prerefunded 06/01/07 @ 101, 5.500% 06/01/27................................... Aaa AAA 3,263 4,000 Tobacco Settlement Management Revenue, Series 2001B, 6.375% 05/15/28................................... A1 A 4,047 1,000 West Columbia, South Carolina, Water and Sewer Revenue Refunding, Series 1992, (MBIA Insured), 6.300% 10/01/07................................... Aaa AAA 1,020
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ SOUTH CAROLINA -- (CONTINUED) $1,000 Western Carolina, Regional Sewer Systems Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.500% 03/01/10................................... Aaa AAA $ 1,035 4,700 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24................................... Baa2 BBB 4,467 -------- 253,878 -------- GEORGIA -- 1.1% 3,000 Marietta, Georgia, Housing Authority, Multifamily Revenue Refunding, (Wood Glen-RMKT Housing Project) Series 1994, Mandatory Put 07/01/04 @ 100, 4.750% 07/01/24................................... Baa2 BBB 3,010 -------- ILLINOIS -- 0.8% 2,000 Illinois, Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue Refunding, (McCormick Plant Expansion) Series 2002B, (MBIA Insured), 5.750% 06/15/23................................... Aaa AAA 2,255 -------- TEXAS -- 2.7% 1,000 Brazos River Authority, Texas, PCR Refunding, (Texas Electric Company Project) Series 2001A, AMT, Mandatory Put 04/01/04 @ 100, 4.950% 10/01/30................................... NR BBB+ 1,016 2,000 Brazos River Authority, Texas, PCR Refunding, (Texas Electric Company Project) Series 2001B, Mandatory Put 11/01/06 @ 100, 4.750% 05/01/29................................... Baa1 BBB+ 2,060
SEE NOTES TO FINANCIAL STATEMENTS. 133 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $2,000 Dallas-Fort Worth, Texas, International Airport Facilities Improvement, Corporate Revenue Refunding, (American Airlines Project) Series 2000C, AMT, Mandatory Put 11/01/07 @ 100, 6.150% 05/01/29................................... B2 BB- $ 1,101 3,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 6.000% 10/01/16................................... Baa2 BBB- 3,217 -------- 7,394 --------
TOTAL MUNICIPAL BONDS AND NOTES (Cost $248,326)............................................. 266,537 -------- SHARES (000) - ------ INVESTMENT COMPANIES -- 2.9% (Cost $7,838) 7,838 Nations Tax-Exempt Reserves, Trust Class#..................... 7,838 -------- TOTAL INVESTMENTS (Cost $256,164*).................................. 100.3% 274,375 -------- OTHER ASSETS AND LIABILITIES (NET).................. (0.3)% Receivable for Fund shares sold............................... 1,077 Dividends receivable.......................................... 9 Interest receivable........................................... 3,495 Payable for Fund shares redeemed.............................. (2,006) Investment advisory fee payable............................... (46) Administration fee payable.................................... (45) Shareholder servicing and distribution fees payable........... (22) Due to custodian.............................................. (16) Distributions payable......................................... (907) Payable for investment securities purchased................... (2,116) Accrued Trustees' fees and expenses........................... (94) Accrued expenses and other liabilities........................ (93) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... (764) -------- NET ASSETS.......................................... 100.0% $273,611 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 883 Accumulated net realized gain on investments sold............. 288 Net unrealized appreciation of investments.................... 18,211 Paid-in capital............................................... 254,229 -------- NET ASSETS.................................................... $273,611 ========
VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($227,193,588 / 20,895,691 shares outstanding).............. $10.87 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($23,809,901 / 2,190,221 shares outstanding)................ $10.87 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $11.24 INVESTOR B SHARES: Net asset value and offering price per share** ($14,450,546 / 1,328,953 shares outstanding)................ $10.87 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($8,157,187 / 750,034 shares outstanding)................... $10.88 ========
- --------------- *Federal income tax information (see Note 7). ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations South Carolina Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): FSA 11.05% MBIA 13.39%
Nations South Carolina Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 18.71% Water Revenue 16.83%
SEE NOTES TO FINANCIAL STATEMENTS. 134 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 95.6% TENNESSEE -- 93.6% $1,535 Anderson County, Tennessee, GO Refunding, Series 2001, (FSA Insured), 5.000% 04/01/13....... Aaa AAA $ 1,695 1,000 Anderson County, Tennessee, Health and Educational Facilities Board, Revenue Refunding, (Methodist Medical Center - Oak Ridge Project) Series 1993, 5.400% 07/01/04....... A1 NR 1,012 500 Blount County, Tennessee, Public Building Authority, Public Facility Revenue, Series 1998, (FGIC Insured), 5.000% 04/01/19....... Aaa AAA 526 1,300 Chattanooga, Tennessee, GO Refunding, Series 2002, 4.500% 09/01/04....... Aa2 AA 1,370 1,075 Chattanooga, Tennessee, GO Refunding, Series 2002A, 5.000% 11/01/06....... NR AA 1,191 1,700 Chattanooga-Hamilton County, Tennessee, Hospital Authority, Revenue Refunding, (Erlanger Medical Center Project) Series 1993, (FSA Insured), 5.375% 10/01/04....... Aaa AAA 1,821 1,250 Chattanooga-Hamilton County, Tennessee, Hospital Authority, Revenue Refunding, (Erlanger Medical Center Project) Series 1993, (FSA Insured), 5.500% 10/01/07....... Aaa AAA 1,409 500 Hamilton County, Tennessee, GO Refunding, Series 1998B, 5.100% 08/01/24....... Aa1 NR 544 575 Humphreys County, Tennessee, Industrial Development Board, Solid Waste Disposal Revenue, (E.I. duPont de Nemours and Company Project) Series 1994, AMT, 6.700% 05/01/24....... Aa3 AA- 616
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $2,000 Knox County, Tennessee, Health Educational and Housing Facilities Board, Hospital Facilities Improvement Revenue Refunding, (Baptist Health System of East Tennessee, Inc. Project) Series 1996, (CONNIE LEE Insured), 5.500% 04/15/11....... Aaa AAA $ 2,179 500 Knox County, Tennessee, Health Educational and Housing Facilities Board, Hospital Facilities Revenue, (Sanders Alliance Project) Series 1993A, (MBIA Insured), 4.900% 01/01/05....... Aaa AAA 528 300 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue Refunding, (Fort Sanders Alliance Project) Series 1993, (MBIA Insured), 7.250% 01/01/09....... Aaa AAA 366 1,500 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (University Health Systems Inc. Project) Series 1999, 5.750% 04/01/19....... Baa1 NR 1,547 1,250 Knox County, Tennessee, Public Improvement GO, Series 1998, 4.750% 04/01/19....... Aa2 AA 1,277 1,330 Lawrenceburg, Tennessee, Public Building Authority, Water and Sewer GO, Series 2001B, (FSA Insured), 5.500% 07/01/16....... Aaa AAA 1,500 200 Loudon County, Tennessee, Industrial Development Board, Solid Waste Disposal Revenue, (Kimberly-Clark Corporation Project) Series 1993, AMT, 6.200% 02/01/23....... Aa2 AA 205
SEE NOTES TO FINANCIAL STATEMENTS. 135 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $3,000 Maury County, Tennessee, Industrial Development Board, Multi-Model PCR Refunding, (General Motors Corporation - Saturn Corporation Project) Series 1994, 6.500% 09/01/24....... A3 BBB+ $ 3,241 1,000 Maury County, Tennessee, Industrial Development Board, Solid Waste Disposal Revenue, Occidental Petroleum Corporation, AMT, (GTD-AGMT), 6.250% 08/01/18....... Baa2 BBB- 1,030 1,250 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22....... Baa3 BBB- 1,254 1,000 Memphis, Tennessee, Electric System Revenue Refunding, Series 1992, 6.000% 01/01/05....... Aa2 AA+ 1,093 2,500 Memphis, Tennessee, GO, Series 2000, 5.000% 04/01/17....... Aa2 AA 2,642 1,500 Memphis, Tennessee, Water Division, Revenue Refunding, Series 1992, 5.900% 01/01/04....... Aaa AAA 1,579 500 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities and Project Revenue Refunding, (Federal Express Corporation Project) Series 1997, 5.350% 09/01/12....... Baa2 BBB 536 1,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 2002, 5.050% 09/01/12....... Baa2 BBB 1,064
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 350 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1996A, Prerefunded 05/15/06 @ 102, 5.625% 05/15/14....... Aa3 AA $ 399 2,000 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1998B, 5.500% 05/15/13....... Aa3 AA 2,343 1,000 Metropolitan Government, Nashville and Davidson County, Tennessee, GO Refunding, Series 1993, 5.250% 05/15/07....... Aa2 AA 1,120 595 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/09....... Aaa AAA 705 500 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/16....... Aaa AAA 609 505 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/08....... Aaa AAA 593
SEE NOTES TO FINANCIAL STATEMENTS. 136 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $1,000 Metropolitan Government, Nashville and Davidson County, Tennessee, Multi-Family Housing Revenue, (Enchantment, Inc. - Welch Bend Apartments Project) Series 1996A, (FNMA COLL), Mandatory Put 01/01/07 @ 100, 5.500% 01/01/27....... NR AAA $ 1,101 1,645 Rutherford County, Tennessee, Public Improvement GO, Series 1996, 6.000% 04/01/06....... Aa2 AA 1,855 1,280 Shelby County, Tennessee, GO Refunding, Series 1996B, 5.200% 12/01/09....... Aa2 AA+ 1,426 1,000 Shelby County, Tennessee, GO Refunding, Series 1999B, 5.250% 04/01/11....... Aa2 AA+ 1,143 1,000 Shelby County, Tennessee, Health Development and Housing Facility Board Revenue, (Arbors of Germantown Project) Series 1994, Mandatory Put 07/01/04 @ 100, 4.750% 07/01/24....... Baa2 BBB 1,026 520 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (Lebonheur Childrens Medical Center Project) Series 1993D, (MBIA Insured), 5.300% 08/15/04....... Aaa AAA 556 490 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (Methodist Health Systems) Series 1995, (MBIA Insured), 6.250% 08/01/09....... Aaa AAA 589 2,000 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (St. Jude's Childrens Research Project) Series 1999, 5.375% 07/01/24....... NR AA 2,093
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 10 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, Unrefunded Balance, (Methodist Health Systems Project) Series 1995, (MBIA Insured) 6.250% 08/01/09....... Aaa AAA $ 12 400 Shelby County, Tennessee, Public Improvement GO Refunding, Series 1999A, 4.750% 05/01/21....... Aa2 AA+ 406 500 Shelby County, Tennessee, Public Improvement GO, Series 1996A, 5.625% 06/01/06....... Aa2 AA+ 560 250 Sumner County, Tennessee, Health Educational and Housing Facilities Board, Revenue Refunding, (Sumner Regional Health Systems, Inc. Project) Series 1994, 7.000% 11/01/03....... NR A- 263 1,000 Sumner County, Tennessee, Resource Authority, Revenue, Series 1993, (AMBAC Insured), 5.125% 08/01/03....... Aaa AAA 1,030 1,500 Tennergy Corporation, Tennessee, Gas Revenue, Series 1999, (MBIA Insured), 5.000% 06/01/07....... Aaa AAA 1,664 1,000 Tennessee State, GO, Series 1994A, Prerefunded 03/01/04 @ 101.5, 5.200% 03/01/05....... Aa2 AA 1,066 1,000 Tennessee State, GO, Series 1995A, 7.000% 03/01/03....... Aa2 AA 1,023 250 Tennessee State, Local Development Authority, Revenue Refunding, (State Loan Program) Series 1993A, 5.750% 03/01/11....... A1 AA 259 1,120 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1997, AMT, 2.319%& 07/01/03...... Aa2 AA 1,101
SEE NOTES TO FINANCIAL STATEMENTS. 137 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------- TENNESSEE -- (CONTINUED) $1,215 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1997, AMT, 2.390%& 07/01/04...... Aa2 AA $ 1,165 2,500 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1997-3A, AMT, 3.670%& 01/01/08...... Aa2 AA 2,065 1,085 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1998, AMT, 4.750% 07/01/08....... Aa2 AA 1,159 1,135 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1998, AMT, 4.850% 07/01/09....... Aa2 AA 1,208 1,200 Williamson County, Tennessee, GO, Series 2000, 5.350% 03/01/17....... Aa1 NR 1,376 ------- 60,140 ------- MISSOURI - 2.0% 1,275 West Plains, Missouri, Industrial Development Authority, Hospital Revenue, (Ozarks Medical Center Project) Series 1997, 5.250% 11/15/07....... NR BB+ 1,274 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $56,987)............................ 61,414 -------
SHARES VALUE (000) (000) - ----------------------------------------------------------------------------------- INVESTMENT COMPANIES - 3.9% (Cost $2,537) 2,537 Nations Tax-Exempt Reserves, Trust Class#................... $ 2,537 ------- TOTAL INVESTMENTS (Cost $59,524*)................................. 99.5% 63,951 ------- OTHER ASSETS AND LIABILITIES (NET)................ 0.5% Cash........................................................ $ 1 Receivable for Fund shares sold............................. 51 Dividends receivable........................................ 3 Interest receivable......................................... 885 Payable for Fund shares redeemed............................ (277) Investment advisory fee payable............................. (4) Administration fee payable.................................. (11) Shareholder servicing and distribution fees payable......... (8) Distributions payable....................................... (162) Accrued Trustees' fees and expenses......................... (91) Accrued expenses and other liabilities...................... (44) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET).................... 343 ------- NET ASSETS........................................ 100.0% $64,294 ======= NET ASSETS CONSIST OF: Undistributed net investment income......................... $ 23 Accumulated net realized loss on investments sold........... (314) Net unrealized appreciation of investments.................. 4,427 Paid-in capital............................................. 60,158 ------- NET ASSETS.................................................. $64,294 =======
SEE NOTES TO FINANCIAL STATEMENTS. 138 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - ----------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($43,938,790 / 4,087,859 shares outstanding).............. $10.75 ======= INVESTOR A SHARES: Net asset value and redemption price per share ($14,014,475 / 1,303,866 shares outstanding).............. $10.75 ======= Maximum sales charge........................................ 3.25% Maximum offering price per share............................ $11.11 INVESTOR B SHARES: Net asset value and offering price per share** ($5,172,051 / 481,150 shares outstanding).............................................. $10.75 ======= INVESTOR C SHARES: Net asset value and offering price per share** ($1,168,190 / 109,206 shares outstanding).............................................. $10.70 =======
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Tennessee Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Hospital Revenue 20.64% Housing Revenue 13.73%
SEE NOTES TO FINANCIAL STATEMENTS. 139 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 98.7% TEXAS -- 89.2% $ 1,000 Alamo, Texas, Community College District, Revenue, (FSA Insured), 5.375% 11/01/16................................... Aaa AAA $ 1,113 1,775 Arlington, Texas, Independent School District, GO, Unrefunded Balance, Series 1992, (PSF-GTD), 6.100% 02/15/05................................... Aaa NR 1,782 2,000 Austin, Texas, Electric Utility System Revenue Refunding, Series 2002, (FSA Insured), 5.500% 11/15/12................................... Aaa AAA 2,340 5,750 Austin, Texas, GO Refunding, Series 1993, 5.500% 09/01/04................................... Aa2 AA+ 6,163 3,905 Austin, Texas, Public Improvement GO, Series 2001 5.000% 09/01/13................................... Aa2 AA+ 4,322 500 Austin, Texas, Public Improvement, GO, Series 1999, 5.375% 09/01/18................................... Aa2 AA+ 547 4,275 Austin, Texas, Utility System Revenue Refunding, Series 1992, (AMBAC Insured), 6.250% 11/15/03................................... Aaa AAA 4,386 3,000 Austin, Texas, Utility System Revenue Refunding, Series 1992, (AMBAC Insured), 6.250% 11/15/05................................... Aaa AAA 3,078 965 Brazos, Texas, Higher Education Authority Inc., Revenue Refunding, Senior Lien, Series 1994A-2, AMT, (GTD STD LNS), 6.050% 06/01/03................................... Aaa NR 968 4,365 Cass County, Texas, Industrial Development Corporation, Environmental Revenue, (International Paper Corporation Project) Series 1997A, AMT, (GTY-AGMT), 6.250% 04/01/21................................... Baa2 BBB 4,490 4,115 Cedar Hill, Texas, Independent School District, GO, Prerefunded, Series 2000, (PSF-GTD), 4.190%& 08/15/16.................................. NR AAA 1,971
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 2,840 Cedar Hill, Texas, Independent School District, GO, Prerefunded, Series 2000, (PSF-GTD), 4.070%& 08/15/17.................................. NR AAA $ 1,281 3,525 Clear Creek, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.375% 02/01/06................................... Aaa AAA 3,605 1,000 Corpus Christi, Texas, Utility System Revenue Refunding, Series 2002, (FSA Insured), 5.000% 07/15/14................................... Aaa AAA 1,099 1,045 Dallas County, Texas, GO, Series 2000, 5.000% 08/15/09................................... Aaa AAA 1,172 2,860 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.600% 08/15/05................................... Aaa AAA 2,961 2,940 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.700% 08/15/06................................... Aaa AAA 3,046 1,510 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), Prerefunded 08/15/03 @ 100, 5.700% 08/15/06................................... NR AAA 1,565 1,300 Dallas, Texas, Waterworks and Sewer System Revenue Refunding, Series 2001, 5.000% 10/01/12................................... Aa2 AA+ 1,447 1,000 Dallas, Texas, Waterworks and Sewer System Revenue Refunding, Series 2002, 5.500% 10/01/12................................... Aa2 AA+ 1,157 5,000 Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding, (Dallas-Fort Worth Airport Project) Series 1994A, (MBIA Insured), 5.400% 11/01/03................................... Aaa AAA 5,204 500 Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding, Series 1994A, (MBIA Insured), 6.000% 11/01/09................................... Aaa AAA 543
SEE NOTES TO FINANCIAL STATEMENTS. 140 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 400 Fort Worth, Texas, Higher Education Financial Corporation, Higher Education Revenue, (Texas Christian University Project) Series 1997, 5.000% 03/15/17................................... Aa3 AA- $ 425 500 Grand Prairie, Texas, Independent School District, GO Refunding, Series 1996, (PSF-GTD), 5.200% 02/15/24................................... Aaa AAA 509 1,000 Grapevine, Texas, GO, Series 2000, (FGIC Insured), 5.800% 08/15/19................................... Aaa AAA 1,143 1,875 Gulf Coast Waste Disposal Authority, Texas, Bayport Area System, Revenue, Series 2002, (AMBAC Insured), 5.000% 10/01/12................................... Aaa AAA 2,109 1,400 Harris County, Texas, GO, Series 1995 5.000% 10/01/17................................... Aa1 AA+ 1,487 3,155 Harris County, Texas, Health Facilities Development Authority, Revenue, (Memorial Hospital Systems Project) Series 1997A, (MBIA Insured), 6.000% 06/01/10................................... Aaa AAA 3,676 2,000 Harris County, Texas, Health Facilities Development Authority, Revenue, Series 1999A, 5.500% 07/01/09................................... Aaa AAA 2,244 500 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue, (Texas Childrens Hospital Project) Series 1995, 5.500% 10/01/19................................... Aa2 AA 560 2,000 Harris County, Texas, Health Facilities Development Corporation, Revenue, (Christus Health Project) Series 1999A, (MBIA Insured), 5.500% 07/01/10................................... Aaa AAA 2,238
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 2,780 Harris County, Texas, Health Facilities Development Corporation, Revenue, (St. Lukes Episcopal Hospital Project) Series 2001A, 5.625% 02/15/16................................... NR AA- $ 3,056 750 Harris County, Texas, Port Houston Authority, Revenue Refunding, Series 2000B, AMT, 5.500% 10/01/07................................... Aa1 AA+ 838 4,000 Harris County, Texas, Toll Road Revenue Refunding, Senior Lien, Series 1994, (FGIC Insured), 5.000% 08/15/16................................... Aaa AAA 4,260 3,580 Harris County, Texas, Toll Road Revenue Refunding, Senior Lien, Series 1994, (FGIC Insured), 5.375% 08/15/20................................... Aaa AAA 3,717 1,000 Houston, Texas, Community College System, Revenue Refunding, Junior Lien, (Student Fee Project) Series 2001A, 5.375% 04/15/15................................... Aaa AAA 1,114 1,195 Houston, Texas, Hotel Occupancy Tax and Special Revenue, Series 2001B, (AMBAC Insured), 5.250% 09/01/19................................... Aaa AAA 1,287 1,265 Houston, Texas, Hotel Occupancy Tax and Special Revenue, Series 2001B, (AMBAC Insured), 5.250% 09/01/20................................... Aaa AAA 1,357 4,000 Houston, Texas, Independent School District, GO Refunding, Series 1993, (PSF-GTD), 5.400% 08/15/07................................... Aaa AAA 4,132 8,000 Houston, Texas, Water and Sewer Systems Revenue Refunding, Junior Lien, Series 1997A, (FGIC Insured), 5.375% 12/01/27................................... Aaa AAA 8,366
SEE NOTES TO FINANCIAL STATEMENTS. 141 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $10,000 Houston, Texas, Water and Sewer Systems Revenue, Junior Lien, Series 1996A, (FGIC Insured), 5.250% 12/01/25................................... Aaa AAA $ 10,345 6,145 Houston, Texas, Water and Sewer Systems Revenue, Unrefunded Balance, Prior Lien, Series 1992B, 5.900% 12/01/03................................... A2 A+ 6,310 2,000 Klein, Texas, Independent School District, GO, Series 1999A, (PSF-GTD), 5.125% 08/01/15................................... Aaa AAA 2,196 5,000 Mesquite, Texas, Independent School District 1, GO Refunding, Series 1993, (PSF-GTD), 5.300% 08/15/06................................... Aaa AAA 5,324 5,000 North Central, Texas, Health Facilities Development Corporation, Health Facilities Revenue, (Presbyterian Healthcare Residential Project) Series 1996B, (MBIA Insured), 5.500% 06/01/16................................... Aaa AAA 5,876 3,000 North Central, Texas, Health Facilities Development Corporation, Revenue Refunding, (Baylor Health Care Systems Project) Series 1995, 5.500% 05/15/13................................... Aa3 AA- 3,217 1,000 North Harris Montgomery Community College District, Texas, GO Refunding, Series 2002, (FGIC Insured), 5.375% 02/15/16................................... Aaa AAA 1,116 1,500 North Harris Montgomery Community College District, Texas, GO, Series 2001, (MBIA Insured), 5.375% 02/15/16................................... Aaa AAA 1,668 1,500 Pearland, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.500% 02/15/20................................... Aaa AAA 1,645
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 1,835 Plano, Texas, Independent School District, GO, Series 1995, (PSF-GTD), 7.000% 02/15/05................................... Aaa AAA $ 2,058 4,000 Red River Authority, Texas, PCR Refunding, Series 1991, (AMBAC Insured), 5.200% 07/01/11................................... Aaa AAA 4,334 5,600 Round Rock, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.000% 08/01/18................................... Aaa AAA 5,973 3,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 6.000% 10/01/16................................... Baa2 BBB- 3,217 2,250 San Antonio, Texas, Electric and Gas Systems Revenue Refunding, Series 2002, 5.250% 02/01/12................................... Aa1 AA+ 2,567 1,000 San Antonio, Texas, Independent School District, GO, (PSF-GTD), 5.500% 08/15/24................................... Aaa AAA 1,066 500 Socorro, Texas, Independent School District, GO, Series 1998, (PSF-GTD), 5.250% 08/15/28................................... Aaa AAA 517 1,260 South Texas, Community College District, GO, Series 2002, (AMBAC Insured), 5.250% 08/15/10................................... Aaa AAA 1,432 1,000 Tarrant County, Texas, Health Facilities Development Corporation, Health Systems Revenue, (Harris Methodist Health Systems Project) Series 1994, (MBIA-IBC Insured), 6.000% 09/01/10................................... Aaa AAA 1,185 3,300 Tarrant County, Texas, Health Facilities Development Corporation, Health Systems Revenue, (Texas Health Resources Systems Project) Series 1997A, (MBIA Insured), 5.750% 02/15/08................................... Aaa AAA 3,712
SEE NOTES TO FINANCIAL STATEMENTS. 142 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 1,355 Tarrant County, Texas, Hospital District Revenue, Series 2002, (MBIA Insured), 5.500% 08/15/13................................... Aaa AAA $ 1,544 1,000 Texas State, College Student Loan Authority, GO, Series 1994, AMT, 5.750% 08/01/11................................... Aa1 AA 1,036 1,000 Texas State, College Student Loan Authority, GO, Series 1996, AMT, 5.000% 08/01/12................................... Aa1 AA 1,042 1,425 Texas State, College Student Loan Authority, GO, Series 1997, AMT, (GTD STD LNS), 5.000% 08/01/05................................... Aa1 AA 1,536 6,835 Texas State, College Student Loan Authority, GO, Series 1997, AMT, (GTD STD LNS), 5.250% 08/01/07................................... Aa1 AA 7,552 3,565 Texas State, College Student Loan Authority, GO, Series 1999, AMT, 5.000% 08/01/07................................... Aa1 AA 3,892 5,000 Texas State, GO Refunding, Series 1992A, 5.800% 10/01/04................................... Aa1 AA 5,402 455 Texas State, GO, Series 1999, 5.250% 08/01/21................................... Aa1 AA 479 5,000 Texas State, Public Finance Authority, Building Revenue Refunding, Series 1992B, (AMBAC Insured), 6.100% 02/01/04................................... Aaa AAA 5,293 1,200 Texas State, Public Finance Authority, GO Refunding, Series 1996C, 6.000% 10/01/06................................... NR AA 1,370 3,500 Texas State, Texas A&M University, Revenue, Series 1999, 5.500% 05/15/20................................... Aa1 AA+ 3,850 3,250 Texas State, Turnpike Authority of Dallas, North Tollway Revenue, (President George Bush Turnpike Project) Series 1996, (AMBAC Insured), 3.400%& 01/01/09.................................. Aaa AAA 2,632 375 Texas State, Veterans Housing Assistance, GO Refunding, Series 1994C, 6.400% 12/01/09................................... Aa1 AA 394
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 3,000 Texas State, Water Development Board, Revenue, Series 1997, 5.000% 07/15/12................................... Aaa AAA $ 3,302 1,500 Texas State, Water Development Board, Revenue, Series 1999B, 5.625% 07/15/21................................... Aaa AAA 1,653 1,850 Texas State, Water Development GO, Series 1997, 5.500% 08/01/07................................... Aa1 AA 2,100 5,000 Texas State, Water Development GO, Series 1997, 5.250% 08/01/28................................... Aa1 AA 5,146 2,500 Texas State, Water Financial Assistance, GO, Series 1999, (MBIA Insured), 5.500% 08/01/29................................... Aaa AAA 2,650 15,000 Texas, Municipal Power Agency, Revenue Refunding, Series 1993, (MBIA Insured), 5.250% 09/01/05................................... Aaa AAA 15,650 500 Travis County, Texas, Health Facilities Development Corporation, Revenue, (Ascension Health Credit Project) Series 1999A, (AMBAC Insured), 5.875% 11/15/24................................... Aaa AAA 550 4,085 Travis County, Texas, Health Facilities Development Corporation, Revenue, (Ascension Health Credit Project) Series 1999A, (MBIA Insured), 5.750% 11/15/09................................... Aaa AAA 4,710 3,500 Travis County, Texas, Limited Tax GO Refunding, Series 1992A, (MBIA Insured), 5.600% 03/01/04................................... Aaa AAA 3,557 1,500 Travis County, Texas, Limited Tax GO Refunding, Series 1992A, (MBIA Insured), 5.750% 03/01/06................................... Aaa AAA 1,526 1,000 Trinity River Authority, Texas, PCR, (Texas Instruments Inc. Project) Series 1996, AMT, 6.200% 03/01/20................................... NR A 1,068
SEE NOTES TO FINANCIAL STATEMENTS. 143 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ TEXAS -- (CONTINUED) $ 3,885 Trinity River Authority, Texas, Ten Mile Revenue, Series 1992, (AMBAC Insured), 5.700% 08/01/03................................... Aaa AAA $ 3,898 2,500 University of Texas, University Financing Systems Revenue, Series 2001B, 5.375% 08/15/15................................... Aaa AAA 2,804 5,365 Waxahachie, Texas, GO, Independent School District, Capital Appreciation, Prerefunded 08/15/10 @ 63.473, Series 2000, (PSF-GTD), 3.650%& 08/15/17.................................. Aaa NR 2,561 4,545 Waxahachie, Texas, GO, Independent School District, Capital Appreciation, Prerefunded 08/15/10 @ 72.803, Series 2000, (PSF-GTD), 3.650%& 08/15/15.................................. Aaa NR 2,489 210 Waxahachie, Texas, GO, Independent School District, Capital Appreciation, Unrefunded Balance, Series 2000, (PSF-GTD), 4.300%& 08/15/15.................................. Aaa NR 109 245 Waxahachie, Texas, GO, Independent School District, Capital Appreciation, Unrefunded Balance, Series 2000, (PSF-GTD), 4.540%& 08/15/17.................................. Aaa NR 109 1,440 West University Place, Texas, GO Refunding Permanent Improvement, Series 2002 5.500% 02/01/15................................... Aa2 AA- 1,644 -------- 252,064 -------- ALABAMA -- 1.7% 3,000 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1992, AMT, 7.000% 06/01/22................................... Baa2 BBB 3,066
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ ALABAMA -- (CONTINUED) $ 1,750 Mobile, Alabama, Industrial Development Board, Environmental Improvement Revenue, (International Paper Company Project) Series 2000A, AMT, 6.700% 03/01/24................................... Baa1 BBB $ 1,878 -------- 4,944 -------- FLORIDA -- 0.8% 1,000 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (United Dominion Realty Trust - Andover Project) Series 1996E, AMT, Mandatory Put 05/01/08 @ 100, 6.350% 05/01/26................................... NR BBB+ 1,050 1,100 Hillsborough County, Florida, Industrial Development Authority, PCR Refunding, (Tampa Electric Company Project) Series 1992, Mandatory Put 08/01/07 @ 100, 4.000% 05/15/18................................... NR BBB 1,107 -------- 2,157 -------- GEORGIA -- 0.4% 1,000 Marietta, Georgia, Housing Authority, Multifamily Revenue Refunding, (Wood Glen-RMKT Housing Project) Series 1994, Mandatory Put 07/01/04 @ 100, 4.750% 07/01/24................................... Baa2 BBB 1,003 -------- ILLINOIS -- 0.6% 1,500 Kane County, Illinois, Forest Preservation District, GO, Series 1999, 5.375% 12/30/14................................... Aa3 AA 1,673 -------- MAINE -- 0.4% 1,000 Bucksport, Maine, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1985, 6.250% 05/01/10................................... NR BBB 1,021 --------
SEE NOTES TO FINANCIAL STATEMENTS. 144 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ MISSISSIPPI -- 1.0% $ 2,600 Warren County, Mississippi, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, AMT, 6.700% 08/01/18................................... Baa2 BBB $ 2,772 -------- OHIO -- 0.4% 1,000 Lucas County, Ohio, Hospital Revenue, (Flower Hospital Project) Series 1993, Prerefunded 12/01/04 @ 101, 6.125% 12/01/13................................... NR NR 1,097 -------- OKLAHOMA -- 0.5% 1,400 Oklahoma, Housing Development Authority, Revenue, Series 2000A, (FHLMC COLL), 5.100% 11/01/05................................... Aa3 NR 1,521 -------- SOUTH CAROLINA -- 0.7% 1,500 Calhoun County, South Carolina, Solid Waste Disposal Facility Revenue, (Carolina Eastman Company Project) Series 1992, AMT, 6.750% 05/01/17................................... A2 BBB+ 1,918 -------- TENNESSEE -- 1.7% 3,135 Chattanooga-Hamilton County, Tennessee, Hospital Authority, Revenue Refunding, (Erlanger Medical Center Project) Series 1993, (FSA Insured), 5.500% 10/01/07................................... Aaa AAA 3,535 1,000 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1998B, 5.500% 05/15/13................................... Aa3 AA 1,171 -------- 4,706 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------------ WASHINGTON -- 1.3% $ 2,425 Washington State, GO, Series 1995C, 5.450% 07/01/07................................... Aa1 AA+ $ 2,645 1,000 Washington State, Motor Vehicle Fuel Tax, GO Refunding, Series 2001R-B, 5.000% 09/01/09................................... Aa1 AA+ 1,118 -------- 3,763 --------
TOTAL MUNICIPAL BONDS AND NOTES (Cost $257,644)............................................. 278,639 -------- SHARES (000) ------- INVESTMENT COMPANIES -- 0.6% (Cost $1,719) 1,719 Nations Tax-Exempt Reserves, Trust Class#..................... 1,719 -------- TOTAL INVESTMENTS (Cost $259,363*).................................. 99.3% 280,358 -------- OTHER ASSETS AND LIABILITIES (NET).................. 0.7% Cash.......................................................... $ 2 Receivable for Fund shares sold............................... 133 Dividends receivable.......................................... 5 Interest receivable........................................... 3,329 Payable for Fund shares redeemed.............................. (311) Investment advisory fee payable............................... (47) Administration fee payable.................................... (46) Shareholder servicing and distribution fees payable........... (6) Distributions payable......................................... (1,018) Accrued Trustees' fees and expenses........................... (92) Accrued expenses and other liabilities........................ (101) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)........................................... 1,848 -------- NET ASSETS.......................................... 100.0% $282,206 ======== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 446 Accumulated net realized loss on investments sold............. (4,079) Net unrealized appreciation of investments.................... 20,995 Paid-in capital............................................... 264,844 -------- NET ASSETS.................................................... $282,206 ========
SEE NOTES TO FINANCIAL STATEMENTS. 145 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
VALUE - -------------------------------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($270,534,030 / 25,571,076 shares outstanding).............. $10.58 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($5,334,098 / 504,229 shares outstanding)................... $10.58 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $10.94 INVESTOR B SHARES: Net asset value and offering price per share** ($6,247,752 / 590,474 shares outstanding)................... $10.58 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($90,598 / 8,563 shares outstanding)........................ $10.58 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. &Zero coupon security. The rate shown reflects the yield to maturity. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Texas Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at September 30, 2002 (as a percentage of net assets): AMBAC 10.76% FGIC 10.26% MBIA 19.04% PSF-GTD 14.83%
Nations Texas Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Electric Revenue 11.21% Hospital Revenue 10.16% Water Revenue 13.09%
SEE NOTES TO FINANCIAL STATEMENTS. 146 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 97.4% VIRGINIA -- 85.3% $ 2,000 Alexandria, Virginia, Redevelopment and Housing Authority, Multi-Family Housing Mortgage Revenue, (Buckingham Village Apartments Project) Series 1996A, AMT, 6.050% 07/01/16................................... NR A+ $ 2,086 1,000 Amherst, Virginia, Industrial Development Authority, Revenue Refunding, (Georgia-Pacific Corporation Project) Series 1998, AMT, 5.250% 02/01/11................................... Ba1 NR 876 3,285 Arlington County, Virginia, GO Refunding, Series 1993, 6.000% 06/01/12................................... Aaa AAA 3,987 1,000 Arlington County, Virginia, GO, Series 1993, 5.000% 07/15/03................................... Aaa AAA 1,028 3,865 Arlington County, Virginia, GO, Series 1999, (State Aid Withholding), 5.250% 06/01/16................................... Aaa AAA 4,262 3,000 Arlington County, Virginia, Industrial Development Authority, Facilities Revenue Refunding, (Lee Gardens Housing Corporation-Housing Mortgage - Woodbury Park Apartments Project) Series 1998A, 5.450% 01/01/29................................... NR A 3,036 1,000 Arlington County, Virginia, Industrial Development Authority, Facilities Revenue, (The Nature Conservancy Project) Series 1997A, 5.450% 07/01/27................................... Aa1 NR 1,060 2,250 Arlington County, Virginia, Industrial Development Authority, Hospital Facilities Revenue, (Virginia Hospital Center Project) Series 2001, 5.250% 07/01/21................................... A2 NR 2,313
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 2,000 Arlington County, Virginia, Industrial Development Authority, IDR Refunding, (Ogden Martin Systems Project) Series 1998A, (FSA Insured), 5.250% 01/01/05................................... Aaa AAA $ 2,156 3,280 Arlington County, Virginia, Industrial Development Authority, Revenue, (Ogden Martin Systems of Union-Alexandria/ Arlington Project) Series 1998B, AMT, (FSA Insured), 5.250% 01/01/09................................... Aaa AAA 3,631 1,855 Arlington County, Virginia, Industrial Development Authority, Revenue, (Ogden Martin Systems of Union-Alexandria/ Arlington Project) Series 1998B, AMT, (FSA Insured), 5.250% 01/01/10................................... Aaa AAA 2,040 2,000 Brunswick County, Virginia, Industrial Development Authority, Correctional Facility Lease Revenue, Series 1996, (MBIA Insured), 5.250% 07/01/04................................... Aaa AAA 2,125 1,000 Charlottesville-Albemarle, Virginia, Airport Authority, Revenue Refunding, Series 1995, AMT, 6.125% 12/01/09................................... NR BBB 1,064 6,195 Chesapeake, Virginia, GO Refunding, Series 1993, 5.125% 12/01/05................................... Aa2 AA 6,816 1,000 Chesapeake, Virginia, GO, Series 1998, (State Aid Withholding), 4.650% 08/01/11................................... Aa2 AA 1,091 1,000 Chesapeake, Virginia, Water and Sewer GO, Series 1995A, 5.375% 12/01/20................................... Aa2 AA 1,089 2,000 Chesapeake, Virginia, Water and Sewer GO, Series 1995A, (State Aid Withholding), 7.000% 12/01/09................................... Aa2 AA 2,347
SEE NOTES TO FINANCIAL STATEMENTS. 147 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Chesterfield County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1992, 6.200% 11/01/05................................... Aaa AAA $ 1,024 500 Covington-Allegheny County, Virginia, IDR Refunding, (Westvaco Corporation Project) Series 1994, 6.650% 09/01/18................................... Baa2 BBB 509 1,320 Covington-Allegheny County, Virginia, Industrial Development Authority, PCR Refunding, (Westvaco Corporation Project) Series 1994, 5.900% 03/01/05................................... Baa2 BBB 1,341 11,585 Fairfax County, Virginia, Economic Development Authority, Resource Recovery, Revenue Refunding, Series 1998A, AMT, (AMBAC Insured), 5.950% 02/01/07................................... Aaa AAA 13,119 3,385 Fairfax County, Virginia, Economic Development Authority, Resource Recovery, Revenue Refunding, Series 1998A, AMT, (AMBAC Insured), 6.050% 02/01/09................................... Aaa AAA 3,926 3,000 Fairfax County, Virginia, GO, Public Improvement, Series 1997, (State Aid Withholding), 5.250% 06/01/17................................... Aaa AAA 3,267 1,000 Fairfax County, Virginia, GO, Series 1998, (State Aid Withholding), 4.800% 04/01/10................................... Aa1 AA+ 1,100 5,000 Fairfax County, Virginia, GO, Series 2002A, (State Aid Withholding), 5.000% 06/01/10................................... Aaa AAA 5,636 500 Fairfax County, Virginia, Industrial Development Authority, Health Care Revenue Refunding, (Inova Health Systems Project) Series 1996, 5.500% 08/15/10................................... Aa2 AA 545
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 2,000 Fairfax County, Virginia, Public Improvement GO, Series 1997A, 6.000% 06/01/04................................... Aaa AAA $ 2,145 1,000 Fairfax County, Virginia, Public Improvement GO, Series 1999B, 5.500% 12/01/16................................... Aaa AAA 1,138 3,000 Fairfax County, Virginia, Sewer Revenue Refunding, Series 1993, (AMBAC Insured), 5.500% 11/15/09................................... Aaa AAA 3,182 1,000 Fairfax County, Virginia, Water and Sewer Authority, Refunding, Series 1993, (AMBAC Insured), 5.500% 11/15/13................................... Aaa AAA 1,058 3,135 Fairfax County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1993, (AMBAC Insured), 5.100% 11/15/04................................... Aaa AAA 3,317 3,000 Fairfax County, Virginia, Water and Sewer Authority, Water Revenue, Series 2000, 5.625% 04/01/25................................... Aa1 AAA 3,268 3,000 Fairfax County, Virginia, Water and Sewer Authority, Water Revenue, Unrefunded Balance, Series 1992, 6.000% 04/01/22................................... Aa1 AAA 3,411 800 Giles County, Virginia, Industrial Development Authority, Exempt Facilities Revenue, (Hoechst Celanese Corporation Project) Series 1995, AMT, 5.950% 12/01/25................................... Baa2 BBB 765 3,000 Giles County, Virginia, Industrial Development Authority, Solid Waste Disposal Facilities Revenue, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.625% 12/01/22................................... Baa2 BBB 3,042
SEE NOTES TO FINANCIAL STATEMENTS. 148 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 5,000 Goochland County, Virginia, Industrial Development Authority, (Old Dominion Electric Cooperative Project) Series 1998, AMT, 4.250% 12/01/02................................... NR NR $ 5,015 1,200 Halifax County, Virginia, Industrial Development Authority, Hospital Revenue Refunding, (Halifax Regional Hospital, Inc. Project) Series 1998, 4.900% 09/01/10................................... NR A 1,231 400 Halifax County, Virginia, Industrial Development Authority, Hospital Revenue Refunding, (Halifax Regional Hospital, Inc. Project) Series 1998, 5.250% 09/01/17................................... NR A 405 500 Hanover County, Virginia, Industrial Development Authority, Revenue, (Bon Secours Health Systems Project) Series 1995, (MBIA Insured), 5.500% 08/15/25................................... Aaa AAA 527 1,000 Hanover County, Virginia, Industrial Development Authority, Revenue, (Memorial Regional Medical Center Project) Series 1995, (MBIA Insured), 5.500% 08/15/25................................... Aaa AAA 1,053 500 Henrico County, Virginia, Industrial Development Authority, Public Facilities Lease Revenue, Series 1994, Prerefunded 08/01/05 @ 102, 7.000% 08/01/13................................... Aa2 AA 582 3,500 Henrico County, Virginia, Industrial Development Authority, Solid Waste Revenue, (Browning-Ferris Project) Series 1995, AMT, (GTY-AGMT), Mandatory Put 12/01/05 @ 100, 5.300% 12/01/11................................... B1 BB- 3,326 500 Henry County, Virginia, GO, Series 1994, 5.750% 07/15/07................................... A2 A 545
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,915 James City and County, Virginia, GO, Series 1995, (FGIC Insured, State Aid Withholding), 5.000% 12/15/08................................... Aaa AAA $ 2,129 700 James City and County, Virginia, GO, Series 1995, (FGIC Insured, State Aid Withholding), 5.250% 12/15/14................................... Aaa AAA 773 1,000 Leesburg, Virginia, GO Refunding, Series 1993, 5.500% 08/01/06................................... A1 A+ 1,053 2,000 Loudoun County, Virginia, Improvement GO Refunding, Series 1993A, (State Aid Withholding), 5.000% 10/01/02................................... Aa1 AA+ 2,000 1,500 Loudoun County, Virginia, Industrial Development Authority, Hospital Revenue, (Loudoun Hospital Center Project) Series 1995, (FSA Insured), 5.500% 06/01/08................................... Aaa AAA 1,624 1,765 Loudoun County, Virginia, Industrial Development Authority, Hospital Revenue, (Loudoun Hospital Center Project) Series 1995, (FSA Insured), 5.600% 06/01/09................................... Aaa AAA 1,904 500 Loudoun County, Virginia, Industrial Development Authority, Hospital Revenue, (Loudoun Hospital Center Project) Series 1995, (FSA Insured), 5.800% 06/01/20................................... Aaa AAA 530 5,000 Loudoun County, Virginia, Industrial Development Authority, Revenue, (Air Force Retired Officers -- Falcons Landing Project) Series 1994A, Prerefunded 11/01/04 @ 103, 8.750% 11/01/24................................... Aaa AAA 5,873
SEE NOTES TO FINANCIAL STATEMENTS. 149 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 510 Loudoun County, Virginia, Public Improvement GO, Series 2001C, (State Aid Withholding), 5.000% 11/01/14................................... Aa1 AA+ $ 570 2,960 Loudoun County, Virginia, Public Improvement GO, Series 2001C, (State Aid Withholding), 5.000% 11/01/15................................... Aa1 AA+ 3,281 2,710 Loudoun County, Virginia, Public Improvement GO, Series 2001C, (State Aid Withholding), 5.000% 11/01/16................................... Aa1 AA+ 2,975 1,140 Lynchburg, Virginia, Public Improvement GO, Series 1997, 5.400% 05/01/17................................... Aa3 AA 1,246 1,000 Medical College of Virginia, Hospital Authority, General Revenue, Series 1998, (MBIA Insured), 4.800% 07/01/11................................... Aaa AAA 1,100 2,000 Montgomery County, Virginia, Industrial Development Lease Authority, Revenue, Series 2000B, (AMBAC Insured), 5.500% 01/15/22................................... Aaa AAA 2,192 1,000 Newport News, Virginia, GO, Series 1998, 5.000% 03/01/18................................... Aa2 AA 1,060 5,000 Newport News, Virginia, Public Improvement GO Refunding, Series 1993B, (State Aid Withholding), 5.200% 11/01/04................................... Aa2 AA 5,290 1,000 Newport News, Virginia, Water and Sewer Authority, GO Refunding, Series 1993B, (State Aid Withholding), 5.100% 11/01/03................................... Aa2 AA 1,039 3,500 Norfolk, Virginia, Capital Improvement GO Refunding, Series 1998, (FGIC Insured, State Aid Withholding), 5.000% 07/01/11................................... Aaa AAA 3,877
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 2,250 Norfolk, Virginia, Redevelopment and Housing Authority, Educational Facilities Revenue, (Tidewater Community College Campus Project) Series 1995, 5.875% 11/01/15................................... Aa1 AA+ $ 2,537 2,000 Norfolk, Virginia, Water Revenue, Series 1995, (MBIA Insured), 5.700% 11/01/10................................... Aaa AAA 2,248 1,000 Portsmouth, Virginia, GO Refunding, Series 1993, 5.250% 08/01/04................................... A1 AA- 1,050 3,710 Portsmouth, Virginia, Public Improvement GO Refunding, Series 2001A, (FGIC Insured), 5.500% 06/01/17................................... Aaa AAA 4,139 1,260 Prince William County, Virginia, Industrial Development Authority, Hospital Revenue Refunding, (Potomac Hospital Corporation Project) Series 1995, 6.550% 10/01/05................................... Aaa NR 1,350 1,300 Prince William County, Virginia, Industrial Development Authority, Hospital Revenue Refunding, (Prince William Hospital Project) Series 1993, 5.625% 04/01/12................................... A2 NR 1,335 1,000 Prince William County, Virginia, Industrial Development Authority, Lease Revenue, (ATCC Project) Series 1996, 6.000% 02/01/14................................... Aa3 NR 1,061 500 Prince William County, Virginia, Park Authority, Revenue, Series 1994, Prerefunded 10/15/04 @ 102, 6.875% 10/15/16................................... NR NR 562 1,000 Prince William County, Virginia, Park Authority, Water and Sewer Systems, Revenue Refunding, Series 1994, Prerefunded 10/15/04 @ 102, 6.300% 10/15/07................................... NR NR 1,112
SEE NOTES TO FINANCIAL STATEMENTS. 150 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 3,000 Prince William County, Virginia, Service Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.000% 07/01/21................................... Aaa AAA $ 3,055 1,000 Richmond, Virginia, GO Refunding, Series 1995B, (FGIC Insured, State Aid Withholding), 5.000% 01/15/21................................... Aaa AAA 1,046 1,430 Richmond, Virginia, Public Improvement GO, Series 1993B, (State Aid Withholding), 5.500% 07/15/09................................... A1 AA 1,653 2,855 Richmond, Virginia, Public Improvement, GO Refunding, Series 1999A, (FSA Insured), 5.000% 01/15/19................................... Aaa AAA 3,022 1,115 Roanoke County, Virginia, IDR, (Hollins College Project) Series 1998, 5.200% 03/15/17................................... NR A 1,185 4,000 Roanoke, Virginia, Industrial Development Authority Hospital Revenue, (Carilion Health System Project) Series 2002A, 5.250% 07/01/12................................... Aaa AAA 4,549 1,100 Spotsylvania County, Virginia, GO Refunding, Series 1998, (FSA Insured), 4.375% 07/15/05................................... Aaa AAA 1,177 1,900 Spotsylvania County, Virginia, GO Refunding, Series 1998, (FSA Insured), 4.400% 07/15/06................................... Aaa AAA 2,055 2,000 Spotsylvania County, Virginia, GO Refunding, Series 1998, (FSA Insured), 4.400% 07/15/07................................... Aaa AAA 2,178 3,535 Staunton, Virginia, Industrial Development Authority, Educational Facilities Revenue, (Mary Baldwin College Project) Series 1996, 6.600% 11/01/14................................... NR NR 3,778
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,035 Suffolk Virginia, GO, Unrefunded Balance, Series 1993, 5.750% 08/01/08................................... Aa2 AA- $ 1,092 5,800 Suffolk, Virginia, Redevelopment and Housing Authority, Multi-Family Housing Revenue Refunding, (Windsor Ltd. Partnership Project) Series 2001, (FNMA Insured), Mandatory Put 07/01/11 @ 100, 4.850% 07/01/31................................... Aaa NR 6,303 1,110 Suffolk, Virginia, GO Refunding, Series 1993, 5.400% 08/01/04................................... Aa2 AA- 1,167 2,300 Virginia Beach, Virginia, GO Refunding, Series 1993, 5.400% 07/15/08................................... Aa1 AA+ 2,627 500 Virginia Beach, Virginia, Public Improvement GO Refunding, Series 1994, (State Aid Withholding), 5.750% 11/01/08................................... Aa1 AA+ 553 3,060 Virginia Beach, Virginia, Public Improvement GO, Series 2000, 5.500% 03/01/17................................... Aa1 AA+ 3,412 3,805 Virginia Beach, Virginia, Public Improvement GO, Series 2000, 5.500% 03/01/18................................... Aa1 AA+ 4,242 1,790 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/17................................... Aa3 AA 1,958 1,935 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/18................................... Aa3 AA 2,103 2,035 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/19................................... Aa3 AA 2,212 2,145 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/20................................... Aa3 AA 2,316
SEE NOTES TO FINANCIAL STATEMENTS. 151 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,270 Virginia College Building Authority, Virginia Educational Facilities Revenue, (21st Century Catalogue and Equipment Program Project) Series 2002A, 5.000% 02/01/15................................... Aa1 AA+ $ 1,395 5,000 Virginia College Building Authority, Virginia Educational Facilities Revenue, (University Richmond Project) Series 2002A, Mandatory Put 03/01/09 @ 100, 5.000% 03/01/32................................... Aa1 AA 5,537 1,000 Virginia Commonwealth, Transportation Board, Transportation Program Revenue, (Oak Grove Connector Project) Series 1997A, 5.250% 05/15/22................................... Aa1 AA+ 1,048 3,375 Virginia Commonwealth, Transportation Board, Transportation Revenue Refunding, (Route 58 Corridor Project) Series 1997C, (MBIA Insured), 5.000% 05/15/13................................... Aaa AAA 3,705 1,245 Virginia Commonwealth, Transportation Board, Transportation Revenue Refunding, (U.S. Route 58 Corridor Project) Series 1997C, 5.125% 05/15/19................................... Aa1 AA+ 1,308 2,465 Virginia Port Authority, Virginia, Commonwealth Port Fund Revenue, Series 1996, AMT, 5.550% 07/01/12................................... Aa1 AA+ 2,647 1,000 Virginia Port Authority, Virginia, Commonwealth Port Fund Revenue, Series 1997, AMT, (MBIA Insured), 5.650% 07/01/17................................... Aaa AAA 1,081 1,210 Virginia Port Authority, Virginia, Port Facilities Revenue, Series 1997, AMT, (MBIA Insured), 6.000% 07/01/07................................... Aaa AAA 1,382
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 3,000 Virginia State, Commonwealth Transportation Board Authority, Transportation Revenue Refunding, (U.S. Route 58 Corridor Development Program) Series 1993A, 4.900% 05/15/03................................... Aa1 AA+ $ 3,063 5,390 Virginia State, Commonwealth Transportation Board Authority, Transportation Revenue Refunding, (U.S. Route 58 Corridor Development Program) Series 1993A, 5.500% 05/15/09................................... Aa1 AA+ 5,619 2,345 Virginia State, Commonwealth Transportation Board Authority, Transportation Revenue, (Northern Virginia Transportation District Project) Series 1996A, 5.125% 05/15/21................................... Aa1 AA+ 2,451 2,105 Virginia State, Commonwealth Transportation Board Authority, Transportation Revenue, (U.S. Route 58 Corridor Development Program) Series 1993B, 5.100% 05/15/05................................... Aa1 AA+ 2,194 2,000 Virginia State, Commonwealth Transportation Board, Transportation Revenue, (US Route 58 Corridor Development Project) Series 1993PG-B, 5.350% 05/15/09................................... Aa1 AA+ 2,083 1,430 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995D-3, 6.000% 01/01/12................................... Aa1 AA+ 1,506 1,470 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995D-3, 6.000% 07/01/12................................... Aa1 AA+ 1,548
SEE NOTES TO FINANCIAL STATEMENTS. 152 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,695 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995D-3, 6.100% 01/01/15................................... Aa1 AA+ $ 1,777 3,595 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 2000B-3, 5.950% 07/01/14................................... Aa1 AA+ 3,971 2,455 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 2000B-4, 5.500% 01/01/15................................... Aa1 AA+ 2,639 1,035 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 2001D-D-1, 4.750% 07/01/12................................... Aa1 AA+ 1,115 2,655 Virginia State, Housing, Housing Development Authority, Revenue, (Rental Housing Project) Series 2000B, AMT, 5.875% 08/01/15 (a)............................... Aa1 AA+ 2,881 2,540 Virginia State, Public School Authority, Revenue Refunding, (School Financing Project) Series 1998A, 4.875% 08/01/14................................... Aa1 AA+ 2,724 1,480 Virginia State, Public School Authority, Revenue Refunding, Series 1993B, (State Aid Withholding), 5.100% 01/01/05................................... Aa1 AA 1,571 2,195 Virginia State, Public School Authority, Revenue, Series 1993A, (State Aid Withholding), 5.400% 01/01/08................................... Aa1 AA 2,260 640 Virginia State, Public School Authority, Revenue, Series 1994A, (State Aid Withholding), 6.125% 08/01/11................................... Aa1 AA 702
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 6,000 Virginia State, Public School Authority, Special Obligation Chesapeake School Financing, Series 1995, (State Aid Withholding), 5.600% 06/01/12................................... Aa3 AA $ 6,645 1,070 Virginia State, Residential Authority, Infrastructure Revenue, Series 2000A, (MBIA Insured), 5.500% 05/01/21................................... Aaa AAA 1,183 1,120 Virginia State, Resource Authority, Infrastructure Revenue, Series 2000A, (MBIA Insured), 5.500% 05/01/22................................... Aaa AAA 1,231 2,970 Virginia State, Resource Authority, Sewer Systems Revenue Refunding, (Harrisonburg-Rockingham Project) Series 1998, 5.000% 05/01/18................................... NR AA 3,144 1,750 Virginia State, Resource Authority, Sewer Systems Revenue, (Hopewell Regional Wastewater Facilities Project) Series 1995A, AMT, 6.000% 10/01/15................................... NR AA 1,890 2,000 Virginia State, Resource Authority, Systems Revenue Refunding, Series 1998, 5.000% 05/01/22................................... NR AA 2,076 2,470 Virginia State, Resource Authority, Water and Sewer Systems Revenue Refunding, (Washington County Service Project) Series 1993, 5.150% 10/01/07................................... NR AA 2,609 500 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Fauquier County Water and Sanitation Project) Series 1994C, 6.125% 05/01/14................................... NR AA 543 1,020 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Suffolk Project) Series 1996A, 5.500% 04/01/17................................... NR AA 1,129
SEE NOTES TO FINANCIAL STATEMENTS. 153 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Sussex Service Authority Project) Series 1998, 4.625% 10/01/18................................... NR AA $ 1,024 1,000 Virginia, Biotechnology Research Park Authority, Lease Revenue, (Biotech Two Project) Series 1996, 5.300% 09/01/13................................... Aa1 AA+ 1,107 2,350 Virginia, Biotechnology Research Park Authority, Lease Revenue, (Biotechnology Two Project) Series 1996, 5.750% 09/01/05................................... Aa1 AA+ 2,610 2,475 Virginia, Chesapeake Bay Bridge and Tunnel Commission District, Revenue, Series 1995, (FGIC Insured), Prerefunded 07/01/05 @ 102, 5.875% 07/01/10................................... Aaa AAA 2,795 2,300 Virginia, College Building Authority, Virginia Educational Facilities Revenue, (Public Higher Education Financing Program) Series 1999A, 5.375% 09/01/12................................... Aa1 AA+ 2,599 5,000 Virginia, Southeastern Public Service Authority, Revenue Refunding, Series 1993A, (MBIA Insured), 5.100% 07/01/08................................... Aaa AAA 5,613 1,000 Washington County, Virginia, Industrial Development Authority, Hospital Facility Revenue Refunding, (Johnston Memorial Hospital Project) Series 1995, Prerefunded 07/01/05 @ 102, 6.000% 07/01/14................................... A2 NR 1,128
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 4,050 West Point, Virginia, Industrial Development Authority, Solid Waste Disposal Revenue, (Chesapeake Corporation Project) Series 1994A, AMT, 6.375% 03/01/19................................... B1 BB $ 3,431 -------- 308,041 -------- ALABAMA -- 0.6% 2,000 Mobile, Alabama, Industrial Development Board, PCR Refunding, (International Paper Company Project) Series 1998B, 4.750% 04/01/10................................... Baa2 BBB 2,027 -------- ARIZONA -- 0.6% 2,030 Arizona School Facilities Board Revenue, State School Improvement, Series 2002, 5.250% 07/01/14................................... Aaa AAA 2,305 -------- CONNECTICUT -- 0.6% 1,900 Connecticut State, GO, Series 2001G, 5.000% 12/15/11................................... Aa2 AA 2,168 -------- DISTRICT OF COLUMBIA -- 0.6% 1,000 Metropolitan Washington, District of Columbia, Airport Authority, Virginia General Airport Revenue Refunding, Series 1998B, AMT, (MBIA Insured), 5.250% 10/01/10................................... Aaa AAA 1,098 1,000 Metropolitan Washington, District of Columbia, Airport Authority, Virginia General Airport Revenue, Series 1992A, AMT, (MBIA Insured), 6.500% 10/01/05................................... Aaa AAA 1,020 -------- 2,118 --------
SEE NOTES TO FINANCIAL STATEMENTS. 154 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- FLORIDA -- 0.4% $ 1,195 Miami-Dade County, Florida, Health Authority, Hospital Revenue Refunding, (Miami Childrens Hospital Project) Series 2001, (AMBAC Insured), 4.375% 08/15/10................................... Aaa AAA $ 1,291 -------- GEORGIA -- 0.4% 1,450 Richmond County, Georgia, Development Authority, Environmental Improvement Revenue, (International Paper Company Project) Series 2001A, 5.150% 03/01/15................................... Baa2 BBB 1,461 -------- ILLINOIS -- 1.9% 4,500 Illinois, Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue Refunding, (McCormick Plant Expansion) Series 2002B, (MBIA Insured), 5.250% 06/15/11................................... Aaa AAA 5,130 1,990 Will County, Illinois, Student Housing Revenue, (Joliet Junior College Project) Series 2002A, 6.625% 09/01/23................................... NR NR 1,969 -------- 7,099 -------- KANSAS -- 0.6% 2,000 Burlington, Kansas, Environmental Improvement Revenue Refunding, (Power and Light Project) Series 1998K, Mandatory Put 10/01/07 @ 100, 4.750% 09/01/15................................... A2 BBB 2,043 -------- MAINE -- 0.7% 2,500 Baileyville, Maine, PCR, (Georgia-Pacific Corporation Project) Series 1998, 4.750% 06/01/05................................... Ba1 NR 2,364 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- MICHIGAN -- 0.6% $ 2,000 Southfield, Michigan, Library Building Authority, GO, Series 2000, (MBIA Insured), 5.500% 05/01/24................................... Aaa AAA $ 2,139 -------- MISSISSIPPI -- 0.5% 1,285 Mississippi State, Hospital Facilities and Equipment Authority, Revenue, (Forrest County General Hospital Project) Series 2000, (FSA Insured), 5.625% 01/01/20................................... Aaa NR 1,412 500 Warren County, Mississippi, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, AMT, 6.700% 08/01/18.......................................... Baa2 BBB 533 -------- 1,945 -------- NEW YORK -- 0.6% 2,005 New York City, New York, Industrial Development Agency, Civic Facility Revenue, (Polytechnic University Project) Series 2000, 5.750% 11/01/10................................... Baa3 BBB- 2,196 -------- SOUTH CAROLINA -- 0.7% 2,000 Calhoun County, South Carolina, Solid Waste Disposal Facility Revenue, (Carolina Eastman Company Project) Series 1992, AMT, 6.750% 05/01/17................................... A2 BBB+ 2,557 -------- TENNESSEE -- 0.6% 2,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 2001, 5.000% 09/01/09................................... Baa2 BBB 2,115 --------
SEE NOTES TO FINANCIAL STATEMENTS. 155 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED)
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) - ------------------------------------------------------------------------------------------- TEXAS -- 0.6% $ 2,000 Sam Rayburn, Texas, Municipal Power Agency, Revenue Refunding, Series 2002, 6.000% 10/01/16................................... Baa2 BBB- $ 2,145 -------- WASHINGTON -- 1.8% 1,000 Energy Northwest Washington, Electric Revenue Refunding, Series 2002A, (MBIA Insured), 5.750% 07/01/18................................... Aaa AAA 1,143 5,035 Washington State, Motor Vehicle Fuel Tax, GO, Series 1997F, 5.375% 07/01/22................................... Aa1 AA+ 5,239 -------- 6,382 -------- WISCONSIN -- 0.3% 1,000 Wisconsin State, Health and Educational Facilities Revenue, (Agnesian Healthcare Project) Series 2001, 6.000% 07/01/21................................... A3 A- 1,049 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $327,255)................................................... 351,445 --------
SHARES (000) - --------- INVESTMENT COMPANIES -- 1.6% (Cost $5,698) 5,698 Nations Tax-Exempt Reserves, Trust Class#..................... 5,698 -------- TOTAL INVESTMENTS (Cost $332,953*).................................. 99.0% 357,143 -------- OTHER ASSETS AND LIABILITIES (NET).................. 1.0% Cash.......................................................... $ 9 Receivable for Fund shares sold............................... 448 Dividends receivable.......................................... 2 Interest receivable........................................... 5,100 Payable for Fund shares redeemed.............................. (638) Investment advisory fee payable............................... (63) Administration fee payable.................................... (59) Shareholder servicing and distribution fees payable........... (28) Distributions payable......................................... (1,046) Accrued Trustees' fees and expenses........................... (102) Accrued expenses and other liabilities........................ (107) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)...................... 3,516 -------- NET ASSETS.......................................... 100.0% $360,659 ========
VALUE (000) - -------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 639 Accumulated net realized loss on investments sold............. (729) Net unrealized appreciation of investments.................... 24,190 Paid-in capital............................................... 336,559 -------- NET ASSETS.................................................... $360,659 ======== PRIMARY A SHARES: Net asset value, offering and redemption price per share ($285,425,883 / 25,330,486 shares outstanding)................................................ $11.27 ======== INVESTOR A SHARES: Net asset value and redemption price per share ($54,259,802 / 4,815,366 shares outstanding)................ $11.27 ======== Maximum sales charge.......................................... 3.25% Maximum offering price per share.............................. $11.65 INVESTOR B SHARES: Net asset value and offering price per share** ($19,211,311 / 1,704,718 shares outstanding)................ $11.27 ======== INVESTOR C SHARES: Net asset value and offering price per share** ($1,761,681 / 156,347 shares outstanding)................... $11.27 ========
- --------------- *Federal income tax information (see Note 7). **The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. #Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, LLC. Nations Virginia Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at September 30, 2002 (as a percentage of net assets): Water Revenue 12.34%
SEE NOTES TO FINANCIAL STATEMENTS. 156 NATIONS FUNDS STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2002 (UNAUDITED) ABBREVIATIONS: AMBAC American Municipal Bond Assurance Corporation AMBAC-TCRS American Municipal Bond Assurance Corporation -- Transferable Custodial Receipts AMT Alternative Minimum Tax CONNIE LEE College Construction Loan Insurance Association FGIC Financial Guaranty Insurance Company FHLMC COLL Federal Home Loan Mortgage Corporation collateral FHA Federal Housing Authority FHA COLL Federal Housing Authority collateral FNMA COLL Federal National Mortgage Association collateral FSA Financial Security Assurance GO General Obligation GNMA COLL Government National Mortgage Association collateral GTY-AGMT Guarantee Agreement GTD STD LNS Guaranteed Student Loans IDR Industrial Development Revenue LOC Letter of Credit MBIA Municipal Bond Insurance Association MBIA-IBC Municipal Bond Insurance Association -- Insured Bond Certificate NR Not Rated PCR Pollution Control Revenue PSF-GTD Permanent School Fund Guarantee SCSDE South Carolina School District Enhancement SCH BD GTY School Bond Guarantee VA COLL Veterans Administration collateral VA Veterans Administration
SEE NOTES TO FINANCIAL STATEMENTS. 157 NATIONS FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) For the six months ended September 30, 2002
SHORT-TERM INTERMEDIATE MUNICIPAL MUNICIPAL INCOME BOND --------------------------------- (IN THOUSANDS) INVESTMENT INCOME: Interest.................................................... $ 10,216 $ 34,244 Dividend income from affiliated funds....................... 231 217 -------------- -------------- 10,447 34,461 -------------- -------------- EXPENSES: Investment advisory fee..................................... 1,037 2,826 Administration fee.......................................... 760 1,554 Transfer agent fees......................................... 84 197 Custodian fees.............................................. 9 38 Legal and audit fees........................................ 43 48 Trustees' fees and expenses................................. 7 7 Interest expense............................................ -- -- Registration and filing fees................................ 56 66 Printing expense............................................ 20 34 Other....................................................... 22 46 -------------- -------------- Subtotal................................................ 2,038 4,816 Shareholder servicing and distribution fees: Investor A Shares......................................... 183 42 Investor B Shares......................................... 10 23 Investor C Shares......................................... 283 14 -------------- -------------- Total expenses.......................................... 2,514 4,895 Fees waived and/or expenses reimbursed by investment advisor, administrator and/or distributor................. (657) (1,283) -------------- -------------- Net expenses............................................ 1,857 3,612 -------------- -------------- NET INVESTMENT INCOME/(LOSS)................................ 8,590 30,849 -------------- -------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on investments..................... (242) 3,315 Net change in unrealized appreciation/(depreciation) of investments............................................... 15,892 63,779 -------------- -------------- Net realized and unrealized gain/(loss) on investments...... 15,650 67,094 -------------- -------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 24,240 $ 97,943 ============== ==============
- --------------- * Amount represents less than $500. (a)California Intermediate Municipal Bond Fund commenced operations on August 19, 2002. SEE NOTES TO FINANCIAL STATEMENTS. 158 NATIONS FUNDS STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
CALIFORNIA FLORIDA GEORGIA INTERMEDIATE CALIFORNIA INTERMEDIATE FLORIDA INTERMEDIATE MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL INCOME BOND(A) BOND BOND BOND BOND - ------------------------------------------------------------------------------------------------------- $ 23,897 $ 653 $ 6,573 $ 5,878 $ 3,407 $ 4,472 103 4 18 28 11 17 -------------- -------------- -------------- -------------- -------------- -------------- 24,000 657 6,591 5,906 3,418 4,489 -------------- -------------- -------------- -------------- -------------- -------------- 2,172 63 634 473 326 356 956 35 279 260 144 196 143 6 35 38 22 27 29 2 7 8 5 6 46 11 38 40 36 36 7 2 7 7 7 7 --* -- --* -- --* --* 59 3 6 1 1 1 31 8 17 13 14 14 35 1 11 13 6 10 -------------- -------------- -------------- -------------- -------------- -------------- 3,478 131 1,034 853 561 653 62 --* 184 13 55 18 48 --* 42 35 55 61 8 --* 19 13 2 14 -------------- -------------- -------------- -------------- -------------- -------------- 3,596 131 1,279 914 673 746 (871) (51) (273) (262) (169) (208) -------------- -------------- -------------- -------------- -------------- -------------- 2,725 80 1,006 652 504 538 -------------- -------------- -------------- -------------- -------------- -------------- 21,275 577 5,585 5,254 2,914 3,951 -------------- -------------- -------------- -------------- -------------- -------------- (10,086) 513 143 207 1,866 199 40,988 2,152 16,958 8,422 6,177 5,839 -------------- -------------- -------------- -------------- -------------- -------------- 30,902 2,665 17,101 8,629 8,043 6,038 -------------- -------------- -------------- -------------- -------------- -------------- $ 52,177 $ 3,242 $ 22,686 $ 13,883 $ 10,957 $ 9,989 ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 159 NATIONS FUNDS STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED) For the six months ended September 30, 2002
MARYLAND KANSAS INTERMEDIATE MUNICIPAL MUNICIPAL INCOME BOND --------------------------------- (IN THOUSANDS) INVESTMENT INCOME: Interest.................................................... $ 2,364 $ 5,657 Dividend income from affiliated funds....................... 8 14 -------------- -------------- 2,372 5,671 -------------- -------------- EXPENSES: Investment advisory fee..................................... 246 473 Administration fee.......................................... 108 260 Transfer agent fees......................................... 17 36 Custodian fees.............................................. 3 8 Legal and audit fees........................................ 35 38 Trustees' fees and expenses................................. 7 7 Interest expense............................................ --* --* Registration and filing fees................................ 5 5 Printing expense............................................ 10 16 Other....................................................... 8 13 -------------- -------------- Subtotal................................................ 439 856 Shareholder servicing and distribution fees: Investor A Shares......................................... 4 30 Investor B Shares......................................... --* 98 Investor C Shares......................................... --* 10 -------------- -------------- Total expenses.......................................... 443 994 Fees waived and/or expenses reimbursed by investment advisor, administrator and/or distributor................. (144) (264) -------------- -------------- Net expenses............................................ 299 730 -------------- -------------- NET INVESTMENT INCOME/(LOSS)................................ 2,073 4,941 -------------- -------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on investments..................... (43) 413 Net change in unrealized appreciation/(depreciation) of investments............................................... 4,418 10,866 -------------- -------------- Net realized and unrealized gain/(loss) on investments...... 4,375 11,279 -------------- -------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 6,448 $ 16,220 ============== ==============
- --------------- *Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 160 NATIONS FUNDS STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
NORTH CAROLINA SOUTH CAROLINA TENNESSEE TEXAS VIRGINIA INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND BOND - -------------------------------------------------------------------------------------- $ 5,556 $ 6,777 $ 1,447 $ 7,220 $ 8,283 50 42 17 42 33 -------------- -------------- -------------- -------------- -------------- 5,606 6,819 1,464 7,262 8,316 -------------- -------------- -------------- -------------- -------------- 464 523 122 562 674 255 288 67 309 370 35 40 9 45 51 8 9 2 10 11 38 39 32 41 41 7 7 7 7 7 -- -- -- --* --* 1 1 3 7 1 15 15 10 14 18 13 13 4 11 15 -------------- -------------- -------------- -------------- -------------- 836 935 256 1,006 1,188 21 25 16 7 63 87 66 20 27 81 5 24 4 --* 7 -------------- -------------- -------------- -------------- -------------- 949 1,050 296 1,040 1,339 (256) (282) (104) (304) (346) -------------- -------------- -------------- -------------- -------------- 693 768 192 736 993 -------------- -------------- -------------- -------------- -------------- 4,913 6,051 1,272 6,526 7,323 -------------- -------------- -------------- -------------- -------------- 459 527 45 (281) 302 10,217 8,420 2,793 10,718 14,192 -------------- -------------- -------------- -------------- -------------- 10,676 8,947 2,838 10,437 14,494 -------------- -------------- -------------- -------------- -------------- $ 15,589 $ 14,998 $ 4,110 $ 16,963 $ 21,817 ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 161 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS
SHORT-TERM INTERMEDIATE MUNICIPAL INCOME MUNICIPAL INCOME --------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 ----------------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)....................... $ 8,590 $ 9,004 $ 30,849 $ 55,465 Net realized gain/(loss) on investments............ (242) (14) 3,315 3,825 Net change in unrealized appreciation/(depreciation) of investments....... 15,892 (2,703) 63,779 (22,442) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations.................................. 24,240 6,287 97,943 36,848 Distributions to shareholders from net investment income: Primary A Shares................................. (6,388) (6,582) (30,022) (54,029) Investor A Shares................................ (1,733) (2,088) (704) (1,236) Investor B Shares................................ (16) (71) (77) (111) Investor C Shares................................ (454) (248) (47) (47) Distributions to shareholders from net realized gains on investments: Primary A Shares................................. -- -- (223) -- Investor A Shares................................ -- -- (5) -- Investor B Shares................................ -- -- (1) -- Investor C Shares................................ -- -- --* -- Net increase/(decrease) in net assets from Fund share transactions............................... 376,415 402,545 732,691 (5,822) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets.............. 392,064 399,843 799,555 (24,397) NET ASSETS: Beginning of period................................ 533,340 133,497 1,195,543 1,219,940 -------------- -------------- -------------- -------------- End of period...................................... $ 925,404 $ 533,340 $ 1,995,098 $ 1,195,543 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period........................................... $ 141 $ 142 $ 2,396 $ 2,397 ============== ============== ============== ==============
- --------------- * Amount represents less than $500. (a)California Intermediate Municipal Bond Fund commenced operations August 19, 2002. SEE NOTES TO FINANCIAL STATEMENTS. 162 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
CALIFORNIA INTERMEDIATE CALIFORNIA MUNICIPAL INCOME MUNICIPAL BOND(A) MUNICIPAL BOND - ----------------------------------- ----------------------- ------------------------------- SIX MONTHS PERIOD SIX MONTHS ENDED ENDED ENDED 9/30/02 YEAR ENDED 9/30/02 9/30/02 YEAR ENDED (UNAUDITED) 3/31/02 (UNAUDITED) (UNAUDITED) 3/31/02 - ----------------------------------------------------------------------------------------------- $ 21,275 $ 45,372 $ 577 $ 5,585 $ 9,228 (10,086) 998 513 143 56 40,988 (25,049) 2,152 16,958 (4,341) -------------- -------------- -------------- -------------- -------------- 52,177 21,321 3,242 22,686 4,943 (19,891) (42,656) (575) (2,150) (2,323) (1,167) (2,281) (2) (3,214) (6,589) (187) (351) --* (153) (236) (30) (52) --* (68) (82) -- -- -- -- (162) -- -- -- -- (583) -- -- -- -- (23) -- -- -- -- (7) (20,693) (40,107) 123,673 133,670 25,668 -------------- -------------- -------------- -------------- -------------- 10,209 (64,126) 126,338 150,771 20,606 866,324 930,450 -- 214,093 193,487 -------------- -------------- -------------- -------------- -------------- $ 876,533 $ 866,324 $ 126,338 $ 364,864 $ 214,093 ============== ============== ============== ============== ============== $ 1,982 $ 1,982 $ -- $ 567 $ 567 ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 163 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FLORIDA INTERMEDIATE FLORIDA MUNICIPAL BOND MUNICIPAL BOND --------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 ----------------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)....................... $ 5,254 $ 10,995 $ 2,914 $ 6,490 Net realized gain/(loss) on investments............ 207 341 1,866 948 Net change in unrealized appreciation/(depreciation) of investments....... 8,422 (3,484) 6,177 (2,554) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations.................................. 13,883 7,852 10,957 4,884 Distributions to shareholders from net investment income: Primary A Shares................................. (4,870) (10,465) (1,740) (4,009) Investor A Shares................................ (219) (317) (967) (2,075) Investor B Shares................................ (121) (186) (199) (395) Investor C Shares................................ (44) (18) (7) (6) Distributions to shareholders from net realized gains on investments: Primary A Shares................................. -- -- (250) (394) Investor A Shares................................ -- -- (147) (216) Investor B Shares................................ -- -- (36) (49) Investor C Shares................................ -- -- (1) (1) Net increase/(decrease) in net assets from Fund share transactions............................... 10,986 (18,953) (3,109) (16,359) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets.............. 19,615 (22,087) 4,501 (18,620) NET ASSETS: Beginning of period................................ 228,274 250,361 129,616 148,236 -------------- -------------- -------------- -------------- End of period...................................... $ 247,889 $ 228,274 $ 134,117 $ 129,616 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period........................................... $ 211 $ 211 $ 323 $ 322 ============== ============== ============== ==============
- --------------- *Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 164 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
GEORGIA INTERMEDIATE KANSAS MARYLAND INTERMEDIATE MUNICIPAL BOND MUNICIPAL INCOME MUNICIPAL BOND - ----------------------------------- ------------------------------- ------------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 - ------------------------------------------------------------------------------------------------------- $ 3,951 $ 6,976 $ 2,073 $ 4,682 $ 4,941 $ 9,001 199 (45) (43) 215 413 747 5,839 (1,887) 4,418 (1,921) 10,866 (3,847) -------------- -------------- -------------- -------------- -------------- -------------- 9,989 5,044 6,448 2,976 16,220 5,901 (3,371) (6,131) (2,015) (4,569) (4,093) (7,993) (314) (561) (56) (106) (491) (785) (217) (247) --* (7) (324) (191) (49) (36) (1) -- (33) (26) -- -- (208) (80) -- -- -- -- (4) (1) -- -- -- -- --* -- -- -- -- -- -- -- -- -- 26,336 10,052 (5,088) (8,701) 37,383 3,023 -------------- -------------- -------------- -------------- -------------- -------------- 32,374 8,121 (924) (10,488) 48,662 (71) 155,694 147,573 101,646 112,134 201,132 201,203 -------------- -------------- -------------- -------------- -------------- -------------- $ 188,068 $ 155,694 $ 100,722 $ 101,646 $ 249,794 $ 201,132 ============== ============== ============== ============== ============== ============== $ 251 $ 251 $ 113 $ 112 $ 166 $ 166 ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 165 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND MUNICIPAL BOND --------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 ----------------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)....................... $ 4,913 $ 9,047 $ 6,051 $ 11,864 Net realized gain/(loss) on investments............ 459 412 527 306 Net change in unrealized appreciation/(depreciation) of investments....... 10,217 (3,257) 8,420 (3,275) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations.................................. 15,589 6,202 14,998 8,895 Distributions to shareholders from net investment income: Primary A Shares................................. (4,270) (8,353) (5,272) (10,631) Investor A Shares................................ (336) (481) (446) (814) Investor B Shares................................ (291) (199) (245) (288) Investor C Shares................................ (15) (8) (88) (122) Distributions to shareholders from net realized gains on investments: Primary A Shares................................. -- -- -- -- Investor A Shares................................ -- -- -- -- Investor B Shares................................ -- -- -- -- Investor C Shares................................ -- -- -- -- Net increase/(decrease) in net assets from Fund share transactions............................... 36,109 2,338 27,718 (5,285) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets.............. 46,786 (501) 36,665 (8,245) NET ASSETS: Beginning of period................................ 195,297 195,798 236,946 245,191 -------------- -------------- -------------- -------------- End of period...................................... $ 242,083 $ 195,297 $ 273,611 $ 236,946 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period........................................... $ 727 $ 726 $ 883 $ 883 ============== ============== ============== ==============
- --------------- *Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 166 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA INTERMEDIATE MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND ------------------------------- ------------------------------- ------------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED 9/30/02 YEAR ENDED (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 (UNAUDITED) 3/31/02 --------------------------------------------------------------------------------------------------- $ 1,272 $ 2,212 $ 6,526 $ 13,836 $ 7,323 $ 13,636 45 -- (281) 698 302 1,164 2,793 (514) 10,718 (4,954) 14,192 (4,717) -------------- -------------- -------------- -------------- -------------- -------------- 4,110 1,698 16,963 9,580 21,817 10,083 (928) (1,801) (6,307) (13,499) (5,967) (11,366) (264) (360) (120) (252) (1,054) (1,914) (66) (49) (98) (81) (279) (318) (12) (2) (2) --* (23) (27) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 9,019 4,625 (1,004) (16,417) 53,172 (9,537) -------------- -------------- -------------- -------------- -------------- -------------- 11,859 4,111 9,432 (20,669) 67,666 (13,079) 52,435 48,324 272,774 293,443 292,993 306,072 -------------- -------------- -------------- -------------- -------------- -------------- $ 64,294 $ 52,435 $ 282,206 $ 272,774 $ 360,659 $ 292,993 ============== ============== ============== ============== ============== ============== $ 23 $ 21 $ 446 $ 447 $ 639 $ 639 ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 167 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY
SHORT-TERM MUNICIPAL INCOME SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 35,840 $368,716 32,832 $334,597 Issued as reinvestment of dividends....................... 50 511 23 237 Redeemed.................................................. (7,969) (81,929) (7,243) (73,714) ------ -------- ------ -------- Net increase/(decrease)................................... 27,921 $287,298 25,612 $261,120 ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 7,694 $ 79,193 11,719 $119,451 Issued as reinvestment of dividends....................... 136 1,424 165 1,674 Redeemed.................................................. (2,005) (20,563) (1,849) (18,808) ------ -------- ------ -------- Net increase/(decrease)................................... 5,825 $ 60,054 10,035 $102,317 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... -- $ -- -- $ -- Issued as reinvestment of dividends....................... 1 13 6 62 Redeemed.................................................. (9) (98) (162) (1,645) ------ -------- ------ -------- Net increase/(decrease)................................... (8) $ (85) (156) $ (1,583) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 3,290 $ 33,793 4,160 $ 42,433 Issued as reinvestment of dividends....................... 32 316 17 175 Redeemed.................................................. (484) (4,961) (189) (1,917) ------ -------- ------ -------- Net increase/(decrease)................................... 2,838 $ 29,148 3,988 $ 40,691 ====== ======== ====== ======== Total net increase/(decrease)............................. 36,576 $376,415 39,479 $402,545 ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 168 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 -------------------- -------------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 13,833 $ 141,372 19,140 $ 194,388 Issued in exchange for net assets of: Bank of America Arizona Tax-Exempt Fund (see Note 8)...... 3,037 31,309 -- -- Bank of America National Intermediate Tax-Exempt Bond Fund (see Note 8)............................................ 35,674 367,794 -- -- Bank of America National Short-Intermediate Tax-Exempt Fund (see Note 8)....................................... 28,819 297,125 -- -- Bank of America Oregon Tax-Exempt Income Fund (see Note 8)...................................................... 1,078 11,110 -- -- Issued as reinvestment of dividends....................... 33 340 85 862 Redeemed.................................................. (12,969) (132,924) (20,960) (212,768) ------- --------- ------- --------- Net increase/(decrease)................................... 69,505 $ 716,126 (1,735) $ (17,518) ======= ========= ======= ========= INVESTOR A SHARES: Sold...................................................... 4,023 $ 41,304 2,076 $ 21,030 Issued as reinvestment of dividends....................... 27 284 40 423 Redeemed.................................................. (2,814) (28,870) (1,270) (12,907) ------- --------- ------- --------- Net increase/(decrease)................................... 1,236 $ 12,718 846 $ 8,546 ======= ========= ======= ========= INVESTOR B SHARES: Sold...................................................... 137 $ 1,408 215 $ 2,189 Issued as reinvestment of dividends....................... 5 46 5 53 Redeemed.................................................. (33) (332) (61) (622) ------- --------- ------- --------- Net increase/(decrease)................................... 109 $ 1,122 159 $ 1,620 ======= ========= ======= ========= INVESTOR C SHARES: Sold...................................................... 279 $ 2,876 261 $ 2,668 Issued as reinvestment of dividends....................... 3 27 3 32 Redeemed.................................................. (17) (178) (116) (1,170) ------- --------- ------- --------- Net increase/(decrease)................................... 265 $ 2,725 148 $ 1,530 ======= ========= ======= ========= Total net increase/(decrease)............................. 71,115 $ 732,691 (582) $ (5,822) ======= ========= ======= =========
SEE NOTES TO FINANCIAL STATEMENTS. 169 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
MUNICIPAL INCOME SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 -------------------- -------------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 7,391 $ 81,589 15,205 $ 167,595 Issued as reinvestment of dividends....................... 19 207 38 424 Redeemed.................................................. (9,173) (101,133) (20,093) (221,779) ------- --------- ------- --------- Net increase/(decrease)................................... (1,763) $ (19,337) (4,850) $ (53,760) ======= ========= ======= ========= INVESTOR A SHARES: Sold...................................................... 3,999 $ 44,074 7,190 $ 79,183 Issued as reinvestment of dividends....................... 61 670 126 1,392 Redeemed.................................................. (4,301) (47,408) (6,095) (67,366) ------- --------- ------- --------- Net increase/(decrease)................................... $ (241) $ (2,664) 1,221 $ 13,209 ======= ========= ======= ========= INVESTOR B SHARES: Sold...................................................... 112 $ 1,240 177 $ 1,955 Issued as reinvestment of dividends....................... 10 108 18 197 Redeemed.................................................. (51) (564) (156) (1,721) ------- --------- ------- --------- Net increase/(decrease)................................... 71 $ 784 39 $ 431 ======= ========= ======= ========= INVESTOR C SHARES: Sold...................................................... 51 $ 572 20 $ 220 Issued as reinvestment of dividends....................... 2 25 4 42 Redeemed.................................................. (7) (73) (22) (249) ------- --------- ------- --------- Net increase/(decrease)................................... 46 $ 524 2 $ 13 ======= ========= ======= ========= Total net increase/(decrease)............................. (1,887) $ (20,693) (3,588) $ (40,107) ======= ========= ======= =========
SEE NOTES TO FINANCIAL STATEMENTS. 170 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
CALIFORNIA INTERMEDIATE MUNICIPAL BOND PERIOD ENDED SEPTEMBER 30, 2002 (UNAUDITED) ------------------------ SHARES DOLLARS ------------------------ (IN THOUSANDS) PRIMARY A SHARES:+ Sold...................................................... 236 $ 2,381 Issued in exchange for net assets of Bank of America Shorter-Term California Tax-Exempt Fund (see Note 8)............................................ 13,038 130,380 Issued as reinvestment of dividends....................... -- -- Redeemed.................................................. (1,072) (10,924) ------ -------- Net increase/(decrease)................................... 12,202 $121,837 ====== ======== INVESTOR A SHARES:+ Sold...................................................... 118 $ 1,195 Issued as reinvestment of dividends....................... --* 2 Redeemed.................................................. --* --* ------ -------- Net increase/(decrease)................................... 118 $ 1,197 ====== ======== INVESTOR B SHARES:+ Sold...................................................... 15 $ 149 Issued as reinvestment of dividends....................... --* --* Redeemed.................................................. --* --* ------ -------- Net increase/(decrease)................................... 15 $ 149 ====== ======== INVESTOR C SHARES:+ Sold...................................................... 48 $ 490 Issued as reinvestment of dividends....................... -- -- Redeemed.................................................. -- -- ------ -------- Net increase/(decrease)................................... 48 $ 490 ====== ======== Total net increase/(decrease)............................. 12,383 $123,673 ====== ========
- --------------- + Primary A, Investor A, Investor B and Investor C shares commenced operations on August 19, 2002, September 9, 2002, August 28, 2002, and September 11, 2002 respectively. *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 171 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
CALIFORNIA MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ----------------- SHARES DOLLARS SHARES DOLLARS ----------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 3,297 $ 24,889 4,210 $31,174 Issued in exchange for net assets of Bank of America Longer-Term California Tax-Exempt Fund (see Note 8)..... 16,257 122,576 -- -- Issued as reinvestment of dividends....................... 10 77 18 132 Redeemed.................................................. (1,349) (10,161) (1,287) (9,526) ------ -------- ------ ------- Net increase/(decrease)................................... 18,215 $137,381 2,941 $21,780 ====== ======== ====== ======= INVESTOR A SHARES: Sold...................................................... 4,083 $ 30,204 8,737 $65,024 Issued as reinvestment of dividends....................... 236 1,771 540 3,997 Redeemed.................................................. (5,174) (38,432) (9,303) (69,166) ------ -------- ------ ------- Net increase/(decrease)................................... (855) $ (6,457) (26) $ (145) ====== ======== ====== ======= INVESTOR B SHARES: Sold...................................................... 191 $ 1,424 360 $ 2,668 Issued as reinvestment of dividends....................... 14 102 24 179 Redeemed.................................................. (41) (307) (129) (956) ------ -------- ------ ------- Net increase/(decrease)................................... 164 $ 1,219 255 $ 1,891 ====== ======== ====== ======= INVESTOR C SHARES: Sold...................................................... 246 $ 1,857 380 $ 2,810 Issued as reinvestment of dividends....................... 6 50 9 67 Redeemed.................................................. (51) (380) (100) (735) ------ -------- ------ ------- Net increase/(decrease)................................... 201 $ 1,527 289 $ 2,142 ====== ======== ====== ======= Total net increase/(decrease)............................. 17,725 $133,670 3,459 $25,668 ====== ======== ====== =======
SEE NOTES TO FINANCIAL STATEMENTS. 172 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
FLORIDA INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,857 $ 30,774 4,172 $ 44,624 Issued as reinvestment of dividends....................... 1 13 1 10 Redeemed.................................................. (2,581) (27,753) (6,566) (70,243) ------ -------- ------ -------- Net increase/(decrease)................................... 277 $ 3,034 (2,393) $(25,609) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 720 $ 7,763 768 $ 8,208 Issued as reinvestment of dividends....................... 9 98 13 136 Redeemed.................................................. (287) (3,085) (470) (5,007) ------ -------- ------ -------- Net increase/(decrease)................................... 442 $ 4,776 311 $ 3,337 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 214 $ 2,296 171 $ 1,829 Issued as reinvestment of dividends....................... 7 74 12 132 Redeemed.................................................. (32) (342) (57) (610) ------ -------- ------ -------- Net increase/(decrease)................................... 189 $ 2,028 126 $ 1,351 ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 112 $ 1,212 276 $ 2,961 Issued as reinvestment of dividends....................... 1 17 1 11 Redeemed.................................................. (7) (81) (93) (1,004) ------ -------- ------ -------- Net increase/(decrease)................................... 106 $ 1,148 184 $ 1,968 ====== ======== ====== ======== Total net increase/(decrease)............................. 1,014 $ 10,986 (1,772) $(18,953) ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 173 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
FLORIDA MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------- ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 649 $ 6,540 1,052 $ 10,469 Issued as reinvestment of dividends....................... 5 50 10 99 Redeemed.................................................. (978) (9,830) (2,636) (26,255) ---- ------- ------ -------- Net increase/(decrease)................................... (324) $(3,240) (1,574) $(15,687) ==== ======= ====== ======== INVESTOR A SHARES: Sold...................................................... 400 $ 4,005 848 $ 8,447 Issued as reinvestment of dividends....................... 53 533 170 1,700 Redeemed.................................................. (513) (5,128) (1,084) (10,826) ---- ------- ------ -------- Net increase/(decrease)................................... (60) $ (590) (66) $ (679) ==== ======= ====== ======== INVESTOR B SHARES: Sold...................................................... 119 $ 1,189 179 $ 1,789 Issued as reinvestment of dividends....................... 12 118 22 216 Redeemed.................................................. (75) (752) (222) (2,217) ---- ------- ------ -------- Net increase/(decrease)................................... 56 $ 555 (21) $ (212) ==== ======= ====== ======== INVESTOR C SHARES: Sold...................................................... 20 $ 203 23 $ 231 Issued as reinvestment of dividends....................... --* --* --* 1 Redeemed.................................................. (4) (37) (1) (13) ---- ------- ------ -------- Net increase/(decrease)................................... 16 $ 166 22 $ 219 ==== ======= ====== ======== Total net increase/(decrease)............................. (312) $(3,109) (1,639) $(16,359) ==== ======= ====== ========
- --------------- *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 174 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
GEORGIA INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 1,859 $ 20,203 2,350 $ 25,409 Issued in exchange for Primary A Shares of Nations Georgia Municipal Bond Fund (see Note 8)........................ 1,425 15,392 -- -- Issued as reinvestment of dividends....................... 1 8 1 14 Redeemed.................................................. (1,823) (19,795) (1,596) (17,293) ------ -------- ------ -------- Net increase/(decrease)................................... 1,462 $ 15,808 755 $ 8,130 ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 466 $ 5,051 539 $ 5,844 Issued in exchange for Investor A Shares of Nations Georgia Municipal Bond Fund (see Note 8)................ 110 1,184 -- -- Issued as reinvestment of dividends....................... 22 244 40 432 Redeemed.................................................. (487) (5,310) (479) (5,186) ------ -------- ------ -------- Net increase/(decrease)................................... 111 $ 1,169 100 $ 1,090 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 38 $ 423 87 $ 937 Issued in exchange for Investor B Shares of Nations Georgia Municipal Bond Fund (see Note 8)................ 658 7,105 -- -- Issued as reinvestment of dividends....................... 10 108 8 86 Redeemed.................................................. (74) (800) (78) (843) ------ -------- ------ -------- Net increase/(decrease)................................... 632 $ 6,836 17 $ 180 ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 212 $ 2,311 67 $ 733 Issued in exchange for Investor C Shares of Nations Georgia Municipal Bond Fund (see Note 8)................ 24 259 -- -- Issued as reinvestment of dividends....................... 4 40 3 33 Redeemed.................................................. (8) (87) (11) (114) ------ -------- ------ -------- Net increase/(decrease)................................... 232 $ 2,523 59 $ 652 ====== ======== ====== ======== Total net increase/(decrease)............................. 2,437 $ 26,336 931 $ 10,052 ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 175 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
KANSAS MUNICIPAL INCOME SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 328 $ 3,392 681 $ 7,028 Issued as reinvestment of dividends....................... 8 81 16 160 Redeemed.................................................. (1,168) (12,096) (1,766) (18,158) ------ -------- ------ -------- Net increase/(decrease)................................... (832) $ (8,623) (1,069) $(10,970) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 470 $ 4,958 392 $ 4,029 Issued as reinvestment of dividends....................... 4 36 4 47 Redeemed.................................................. (152) (1,560) (152) (1,574) ------ -------- ------ -------- Net increase/(decrease)................................... 322 $ 3,434 244 $ 2,502 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... -- $ -- 2 $ 25 Issued as reinvestment of dividends....................... --* --* 1 6 Redeemed.................................................. -- -- (26) (264) ------ -------- ------ -------- Net increase/(decrease)................................... --* $ --* (23) $ (233) ====== ======== ====== ======== INVESTOR C SHARES:+ Sold...................................................... 9 $ 100 -- $ -- Issued as reinvestment of dividends....................... 1 1 -- -- Redeemed.................................................. -- -- -- -- ------ -------- ------ -------- Net increase/(decrease)................................... 10 $ 101 -- $ -- ====== ======== ====== ======== Total net increase/(decrease)............................. (500) $ (5,088) (848) $ (8,701) ====== ======== ====== ========
- --------------- + Investor C Shares commenced operations on July 9, 2002. *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 176 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
MARYLAND INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 965 $ 10,753 3,415 $ 37,615 Issued in exchange for Primary A Shares of Nations Maryland Municipal Bond (see Note 8).................... 1,651 18,132 -- -- Issued as reinvestment of dividends....................... 9 97 14 153 Redeemed.................................................. (1,223) (13,623) (3,710) (40,787) ------ -------- ------ -------- Net increase/(decrease)................................... 1,402 $ 15,359 (281) $ (3,019) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 243 $ 2,695 519 $ 5,699 Issued in exchange for Investor A Shares of Nations Maryland Municipal Bond (see Note 8).................... 291 3,196 -- -- Issued as reinvestment of dividends....................... 30 336 50 552 Redeemed.................................................. (170) (1,881) (242) (2,675) ------ -------- ------ -------- Net increase/(decrease)................................... 394 $ 4,346 327 $ 3,576 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 74 $ 829 143 $ 1,570 Issued in exchange for Investor B Shares of Nations Maryland Municipal Bond (see Note 8).................... 1,586 17,414 -- -- Issued as reinvestment of dividends....................... 21 233 13 150 Redeemed.................................................. (149) (1,649) (39) (432) ------ -------- ------ -------- Net increase/(decrease)................................... 1,532 $ 16,827 117 $ 1,288 ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 41 $ 447 109 $ 1,199 Issued in exchange for Investor C Shares of Nations Maryland Municipal Bond (see Note 8).................... 36 399 -- -- Issued as reinvestment of dividends....................... 2 26 2 23 Redeemed.................................................. (2) (21) (4) (44) ------ -------- ------ -------- Net increase/(decrease)................................... 77 $ 851 107 $ 1,178 ====== ======== ====== ======== Total net increase/(decrease)............................. 3,405 $ 37,383 270 $ 3,023 ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 177 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,351 $ 25,139 2,618 $ 27,760 Issued in exchange for Primary A Shares of Nations North Carolina Municipal Bond (see Note 8).................... 2,127 22,457 -- -- Issued as reinvestment of dividends....................... 1 11 13 137 Redeemed.................................................. (3,038) (32,575) (2,720) (28,762) ------ -------- ------ -------- Net increase/(decrease)................................... 1,441 $ 15,032 (89) $ (865) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 430 $ 4,612 273 $ 2,873 Issued in exchange for Investor A Shares of Nations North Carolina Municipal Bond (see Note 8).................... 385 4,062 -- -- Issued as reinvestment of dividends....................... 22 231 28 295 Redeemed.................................................. (218) (2,338) (129) (1,370) ------ -------- ------ -------- Net increase/(decrease)................................... 619 $ 6,567 172 $ 1,798 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 28 $ 300 148 $ 1,567 Issued in exchange for Investor B Shares of Nations North Carolina Municipal Bond (see Note 8).................... 1,443 15,236 -- -- Issued as reinvestment of dividends....................... 20 210 15 158 Redeemed.................................................. (150) (1,604) (93) (985) ------ -------- ------ -------- Net increase/(decrease)................................... 1,341 $ 14,142 70 $ 740 ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 33 $ 359 64 $ 680 Issued in exchange for Investor C Shares of Nations North Carolina Municipal Bond (see Note 8).................... 5 50 -- -- Issued as reinvestment of dividends....................... --* 3 --* 5 Redeemed.................................................. (4) (44) (2) (20) ------ -------- ------ -------- Net increase/(decrease)................................... 34 $ 368 62 $ 665 ====== ======== ====== ======== Total net increase/(decrease)............................. 3,435 $ 36,109 215 $ 2,338 ====== ======== ====== ========
- --------------- *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 178 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 1,637 $ 17,490 3,137 $ 33,350 Issued in exchange for Primary A Shares of Nations South Carolina Municipal Bond (see Note 8).................... 1,589 16,840 -- -- Issued as reinvestment of dividends....................... 6 71 7 82 Redeemed.................................................. (2,104) (22,497) (3,825) (40,691) ------ -------- ------ -------- Net increase/(decrease)................................... 1,128 $ 11,904 (681) $ (7,259) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 561 $ 6,026 363 $ 3,856 Issued in exchange for Investor A Shares of Nations South Carolina Municipal Bond (see Note 8).................... 98 1,035 -- -- Issued as reinvestment of dividends....................... 19 199 29 310 Redeemed.................................................. (182) (1,933) (430) (4,581) ------ -------- ------ -------- Net increase/(decrease)................................... 496 $ 5,327 (38) $ (415) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 40 $ 426 109 $ 1,161 Issued in exchange for Investor B Shares of Nations South Carolina Municipal Bond (see Note 8).................... 665 7,048 -- -- Issued as reinvestment of dividends....................... 14 150 16 172 Redeemed.................................................. (132) (1,415) (49) (521) ------ -------- ------ -------- Net increase/(decrease)................................... 587 $ 6,209 76 $ 812 ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 348 $ 3,762 201 $ 2,126 Issued in exchange for Investor C Shares of Nations South Carolina Municipal Bond (see Note 8).................... 63 671 -- -- Issued as reinvestment of dividends....................... 4 42 6 69 Redeemed.................................................. (18) (197) (58) (618) ------ -------- ------ -------- Net increase/(decrease)................................... 397 $ 4,278 149 $ 1,577 ====== ======== ====== ======== Total net increase/(decrease)............................. 2,608 $ 27,718 (494) $ (5,285) ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 179 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
TENNESSEE INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------- ----------------- SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 277 $ 2,884 759 $ 7,881 Issued in exchange for Primary A Shares of Nations Tennessee Municipal Bond (see Note 8)................... 410 4,264 -- -- Issued as reinvestment of dividends....................... 4 37 9 94 Redeemed.................................................. (582) (6,086) (548) (5,707) ---- ------- ---- ------- Net increase/(decrease)................................... 109 $ 1,099 220 $ 2,268 ==== ======= ==== ======= INVESTOR A SHARES: Sold...................................................... 339 $ 3,545 288 $ 2,991 Issued in exchange for Investor A Shares of Nations Tennessee Municipal Bond (see Note 8)................... 131 1,362 -- -- Issued as reinvestment of dividends....................... 17 182 28 292 Redeemed.................................................. (154) (1,622) (113) (1,169) ---- ------- ---- ------- Net increase/(decrease)................................... 333 $ 3,467 203 $ 2,114 ==== ======= ==== ======= INVESTOR B SHARES: Sold...................................................... 81 $ 857 10 $ 106 Issued in exchange for Investor B Shares of Nations Tennessee Municipal Bond (see Note 8)................... 280 2,907 -- -- Issued as reinvestment of dividends....................... 4 45 3 35 Redeemed.................................................. (16) (169) (21) (223) ---- ------- ---- ------- Net increase/(decrease)................................... 349 $ 3,640 (8) $ (82) ==== ======= ==== ======= INVESTOR C SHARES: Sold...................................................... 63 $ 660 31 $ 323 Issued in exchange for Investor C Shares of Nations Tennessee Municipal Bond (see Note 8)................... 27 280 -- -- Issued as reinvestment of dividends....................... 1 9 --* 2 Redeemed.................................................. (13) (136) --* --* ---- ------- ---- ------- Net increase/(decrease)................................... 78 $ 813 31 $ 325 ==== ======= ==== ======= Total net increase/(decrease)............................. 869 $ 9,019 446 $ 4,625 ==== ======= ==== =======
- --------------- *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 180 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
TEXAS INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 599 $ 6,207 2,407 $ 24,835 Issued in exchange for Primary A Shares of Nations Texas Municipal Bond (see Note 8)............................. 698 7,182 -- -- Issued as reinvestment of dividends....................... 1 12 2 23 Redeemed.................................................. (1,814) (18,788) (4,044) (41,784) ------ -------- ------ -------- Net increase/(decrease)................................... (516) $ (5,387) (1,635) $(16,926) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 104 $ 1,082 472 $ 4,870 Issued in exchange for Investor A Shares of Nations Texas Municipal Bond (see Note 8)............................. 34 351 -- -- Issued as reinvestment of dividends....................... 6 57 9 98 Redeemed.................................................. (112) (1,168) (429) (4,422) ------ -------- ------ -------- Net increase/(decrease)................................... 32 $ 322 52 $ 546 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 2 $ 27 2 $ 26 Issued in exchange for Investor B Shares of Nations Texas Municipal Bond (see Note 8)............................. 458 4,709 -- -- Issued as reinvestment of dividends....................... 5 52 6 59 Redeemed.................................................. (73) (757) (17) (177) ------ -------- ------ -------- Net increase/(decrease)................................... 392 $ 4,031 (9) $ (92) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 1 $ 9 5 $ 55 Issued in exchange for Investor C Shares of Nations Texas Municipal Bond (see Note 8)............................. 2 20 -- -- Issued as reinvestment of dividends....................... --* 1 --* --* Redeemed.................................................. --* --* --* --* ------ -------- ------ -------- Net increase/(decrease)................................... 3 $ 30 5 $ 55 ====== ======== ====== ======== Total net increase/(decrease)............................. (89) $ (1,004) (1,587) $(16,417) ====== ======== ====== ========
- --------------- *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 181 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
VIRGINIA INTERMEDIATE MUNICIPAL BOND SIX MONTHS ENDED SEPTEMBER 30, 2002 YEAR ENDED (UNAUDITED) MARCH 31, 2002 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,997 $ 32,994 3,889 $ 42,475 Issued in exchange for Primary A Shares of Nations Virginia Municipal Bond (see Note 8).................... 2,035 22,225 -- -- Issued as reinvestment of dividends....................... 4 46 9 98 Redeemed.................................................. (1,712) (18,867) (5,038) (54,978) ------ -------- ------ -------- Net increase/(decrease)................................... 3,324 $ 36,398 (1,140) $(12,405) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 533 $ 5,874 577 $ 6,308 Issued in exchange for Investor A Shares of Nations Virginia Municipal Bond (see Note 8).................... 137 1,501 -- -- Issued as reinvestment of dividends....................... 66 736 118 1,293 Redeemed.................................................. (154) (1,710) (460) (5,031) ------ -------- ------ -------- Net increase/(decrease)................................... 582 $ 6,401 235 $ 2,570 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 99 $ 1,101 73 $ 799 Issued in exchange for Investor B Shares of Nations Virginia Municipal Bond (see Note 8).................... 823 8,985 -- -- Issued as reinvestment of dividends....................... 17 190 20 216 Redeemed.................................................. (67) (737) (72) (780) ------ -------- ------ -------- Net increase/(decrease)................................... 872 $ 9,539 21 $ 235 ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 69 $ 764 21 $ 229 Issued in exchange for Investor C Shares of Nations Virginia Municipal Bond (see Note 8).................... 5 56 -- -- Issued as reinvestment of dividends....................... 2 16 2 22 Redeemed.................................................. --* (2) (17) (188) ------ -------- ------ -------- Net increase/(decrease)................................... 76 $ 834 6 $ 63 ====== ======== ====== ======== Total net increase/(decrease)............................. 4,854 $ 53,172 (878) $ (9,537) ====== ======== ====== ========
- --------------- *Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 182 [This page intentionally left blank] 183 NATIONS FUNDS FINANCIAL HIGHLIGHTS For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS NET ASSET VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT END OF OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME PERIOD ------------------------------------------------------------------------------------- SHORT-TERM MUNICIPAL INCOME PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.13 $0.13 $ 0.25 $0.38 $(0.14) $10.37 Year ended 3/31/2002*#.................... 10.14 0.34 0.01 0.35 (0.36) 10.13 Year ended 3/31/2001#..................... 9.94 0.44 0.20 0.64 (0.44) 10.14 Year ended 3/31/2000#..................... 10.10 0.41 (0.16) 0.25 (0.41) 9.94 Year ended 3/31/1999#..................... 10.05 0.41 0.05 0.46 (0.41) 10.10 Year ended 3/31/1998...................... 9.95 0.42 0.10 0.52 (0.42) 10.05 INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.13 $0.12 $ 0.24 $0.36 $(0.12) $10.37 Year ended 3/31/2002*#.................... 10.14 0.30 0.03 0.33 (0.34) 10.13 Year ended 3/31/2001#..................... 9.94 0.41 0.21 0.62 (0.42) 10.14 Year ended 3/31/2000#..................... 10.10 0.39 (0.16) 0.23 (0.39) 9.94 Year ended 3/31/1999#..................... 10.05 0.39 0.05 0.44 (0.39) 10.10 Year ended 3/31/1998...................... 9.95 0.40 0.10 0.50 (0.40) 10.05 INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.13 $0.09 $ 0.24 $0.33 $(0.09) $10.37 Year ended 3/31/2002*#.................... 10.14 0.27 (0.02) 0.25 (0.26) 10.13 Year ended 3/31/2001#..................... 9.94 0.34 0.20 0.54 (0.34) 10.14 Year ended 3/31/2000#..................... 10.10 0.36 (0.16) 0.20 (0.36) 9.94 Year ended 3/31/1999#..................... 10.05 0.38 0.05 0.43 (0.38) 10.10 Year ended 3/31/1998...................... 9.95 0.39 0.10 0.49 (0.39) 10.05 INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.13 $0.08 $ 0.25 $0.33 $(0.09) $10.37 Year ended 3/31/2002*#.................... 10.14 0.19 0.06 0.25 (0.26) 10.13 Year ended 3/31/2001#..................... 9.94 0.34 0.20 0.54 (0.34) 10.14 Year ended 3/31/2000#..................... 10.10 0.32 (0.16) 0.16 (0.32) 9.94 Year ended 3/31/1999#..................... 10.05 0.40 0.02 0.42 (0.37) 10.10 Year ended 3/31/1998...................... 9.95 0.39 0.10 0.49 (0.39) 10.05
- --------------- * Effective April 1, 2001, the Short-Term Municipal Income Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.33% to 3.37%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.08% to 3.12%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 2.33% to 2.37%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 2.33% to 2.37%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 184 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF NET ASSETS OPERATING INVESTMENT OPERATING END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - -------------------------------------------------------------------------------- 3.74% $662,639 0.40%+ 2.63%+ 4% 0.59%+ 3.54 364,372 0.40(a) 3.37 12 0.63 6.61 105,004 0.40(a) 4.41 38 0.66 2.58 94,393 0.40(a) 4.16 90 0.77 4.71 79,002 0.40(a) 4.11 53 0.80 5.33 70,740 0.40(a) 4.17 94 0.77 3.61% $188,671 0.65%+ 2.36%+ 4% 0.84%+ 3.27 125,262 0.65(a) 3.12 12 0.88 6.34 23,613 0.65(a) 4.16 38 0.91 2.35 22,415 0.63(a) 3.93 90 1.02 4.50 35,805 0.60(a) 3.91 53 1.05 5.12 23,580 0.60(a) 3.97 94 0.97 3.22% $ 1,844 1.40%+ 1.63%+ 4% 1.59%+ 2.51 1,884 1.40(a) 2.37 12 1.63 5.56 3,463 1.40(a) 3.41 38 1.66 1.99 7,030 0.94(a) 3.62 90 1.77 4.34 13,931 0.75(a) 3.76 53 1.80 4.96 13,753 0.75(a) 3.82 94 1.12 3.21% $ 72,250 1.40%+ 1.63%+ 4% 1.59%+ 2.47 41,822 1.40(a) 2.37 12 1.63 5.55 1,417 1.40(a) 3.41 38 1.66 1.57 1,616 1.40(a) 3.16 90 1.77 4.29 2,583 0.83(a) 3.68 53 1.80 4.99 1,388 0.75(a) 3.82 94 1.12
SEE NOTES TO FINANCIAL STATEMENTS. 185 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.00 $0.22 $ 0.47 $ 0.69 $(0.23) Year ended 3/31/2002*#.................... 10.15 0.47 (0.15) 0.32 (0.47) Year ended 3/31/2001...................... 9.78 0.47 0.37 0.84 (0.47) Year ended 3/31/2000#..................... 10.30 0.47 (0.50) (0.03) (0.47) Year ended 3/31/1999...................... 10.30 0.47 0.07 0.54 (0.47) Year ended 3/31/1998...................... 10.01 0.48 0.33 0.81 (0.48) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.00 $0.22 $ 0.45 $ 0.67 $(0.21) Year ended 3/31/2002*#.................... 10.15 0.45 (0.16) 0.29 (0.44) Year ended 3/31/2001...................... 9.78 0.46 0.36 0.82 (0.45) Year ended 3/31/2000#..................... 10.30 0.45 (0.50) (0.05) (0.45) Year ended 3/31/1999...................... 10.30 0.45 0.07 0.52 (0.45) Year ended 3/31/1998...................... 10.01 0.46 0.33 0.79 (0.46) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.00 $0.17 $ 0.46 $ 0.63 $(0.17) Year ended 3/31/2002*#.................... 10.15 0.36 (0.14) 0.22 (0.37) Year ended 3/31/2001...................... 9.78 0.37 0.37 0.74 (0.37) Year ended 3/31/2000#..................... 10.30 0.38 (0.50) (0.12) (0.38) Year ended 3/31/1999...................... 10.30 0.39 0.07 0.46 (0.39) Year ended 3/31/1998...................... 10.01 0.41 0.33 0.74 (0.41) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.00 $0.17 $ 0.46 $ 0.63 $(0.17) Year ended 3/31/2002*#.................... 10.16 0.35 (0.14) 0.21 (0.37) Year ended 3/31/2001...................... 9.78 0.37 0.38 0.75 (0.37) Year ended 3/31/2000#..................... 10.30 0.38 (0.50) (0.12) (0.38) Year ended 3/31/1999...................... 10.30 0.40 0.09 0.49 (0.42) Year ended 3/31/1998...................... 10.01 0.42 0.33 0.75 (0.42) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $(0.00)## Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000#..................... (0.02) Year ended 3/31/1999...................... (0.07) Year ended 3/31/1998...................... (0.04) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $(0.00)## Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000#..................... (0.02) Year ended 3/31/1999...................... (0.07) Year ended 3/31/1998...................... (0.04) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $(0.00)## Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000#..................... (0.02) Year ended 3/31/1999...................... (0.07) Year ended 3/31/1998...................... (0.04) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $(0.00)## Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000#..................... (0.02) Year ended 3/31/1999...................... (0.07) Year ended 3/31/1998...................... (0.04)
- --------------- * Effective April 1, 2001, the Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.53% to 4.61%. Investor A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.28% to 4.36%. Investor B Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.53% to 3.61%. Investor C Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.53% to 3.61%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. ## Amount represents less than $(0.01) per share. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 186 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.23) $10.46 6.94% $1,941,657 0.50%+ 4.36%+ 7% 0.68%+ (0.47) 10.00 3.17 1,160,559 0.50(a) 4.61 14 0.68 (0.47) 10.15 8.81 1,196,121 0.50(a) 4.73 17 0.68 (0.49) 9.78 (0.27) 849,966 0.50(a) 4.75 30 0.70 (0.54) 10.30 5.33 918,367 0.50(a) 4.55 40 0.68 (0.52) 10.30 8.20 867,154 0.50(a) 4.65 47 0.74 $(0.21) $10.46 6.81% $ 43,135 0.75%+ 4.11%+ 7% 0.93%+ (0.44) 10.00 2.91 28,868 0.75(a) 4.36 14 0.93 (0.45) 10.15 8.54 20,728 0.75(a) 4.48 17 0.93 (0.47) 9.78 (0.49) 19,782 0.73(a) 4.52 30 0.95 (0.52) 10.30 5.12 16,149 0.70(a) 4.35 40 0.93 (0.50) 10.30 7.99 6,487 0.70(a) 4.45 47 0.94 $(0.17) $10.46 6.41% $ 5,439 1.50%+ 3.36%+ 7% 1.68%+ (0.37) 10.00 2.14 4,110 1.50(a) 3.61 14 1.68 (0.37) 10.15 7.74 2,563 1.50(a) 3.73 17 1.68 (0.40) 9.78 (1.18) 2,733 1.42(a) 3.83 30 1.70 (0.46) 10.30 4.49 2,556 1.30(a) 3.75 40 1.68 (0.45) 10.30 7.50 2,023 1.20(a) 3.95 47 1.44 $(0.17) $10.46 6.40% $ 4,866 1.50%+ 3.36%+ 7% 1.68%+ (0.37) 10.00 2.03 2,006 1.50(a) 3.61 14 1.68 (0.37) 10.16 7.84 528 1.50(a) 3.73 17 1.68 (0.40) 9.78 (1.19) 539 1.50(a) 3.75 30 1.70 (0.49) 10.30 4.80 1,511 1.21(a) 3.84 40 1.68 (0.46) 10.30 7.62 1,590 1.20(a) 3.95 47 1.44
SEE NOTES TO FINANCIAL STATEMENTS. 187 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- MUNICIPAL INCOME PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.83 $0.27 $ 0.40 $ 0.67 $(0.27) Year ended 3/31/2002*#.................... 11.14 0.55 (0.31) 0.24 (0.55) Year ended 3/31/2001#..................... 10.69 0.56 0.45 1.01 (0.56) Year ended 3/31/2000#..................... 11.48 0.54 (0.78) (0.24) (0.54) Year ended 3/31/1999...................... 11.46 0.54 0.07 0.61 (0.54) Year ended 3/31/1998...................... 10.89 0.57 0.62 1.19 (0.57) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.83 $0.26 $ 0.39 $ 0.65 $(0.26) Year ended 3/31/2002*#.................... 11.14 0.53 (0.31) 0.22 (0.53) Year ended 3/31/2001#..................... 10.68 0.53 0.46 0.99 (0.53) Year ended 3/31/2000#..................... 11.48 0.52 (0.79) (0.27) (0.52) Year ended 3/31/1999...................... 11.46 0.52 0.07 0.59 (0.52) Year ended 3/31/1998...................... 10.89 0.54 0.62 1.16 (0.54) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.83 $0.22 $ 0.40 $ 0.62 $(0.22) Year ended 3/31/2002*#.................... 11.13 0.44 (0.30) 0.14 (0.44) Year ended 3/31/2001#..................... 10.69 0.45 0.44 0.89 (0.45) Year ended 3/31/2000#..................... 11.48 0.44 (0.78) (0.34) (0.44) Year ended 3/31/1999...................... 11.46 0.44 0.08 0.52 (0.45) Year ended 3/31/1998...................... 10.89 0.48 0.62 1.10 (0.48) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.84 $0.22 $ 0.39 $ 0.61 $(0.22) Year ended 3/31/2002*#.................... 11.14 0.44 (0.30) 0.14 (0.44) Year ended 3/31/2001#..................... 10.69 0.45 0.45 0.90 (0.45) Year ended 3/31/2000#..................... 11.48 0.44 (0.78) (0.34) (0.44) Year ended 3/31/1999...................... 11.46 0.46 0.07 0.53 (0.46) Year ended 3/31/1998...................... 10.89 0.49 0.62 1.11 (0.49) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- MUNICIPAL INCOME PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.05) Year ended 3/31/1998...................... (0.05) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.05) Year ended 3/31/1998...................... (0.05) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.05) Year ended 3/31/1998...................... (0.05) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.05) Year ended 3/31/1998...................... (0.05)
- --------------- * Effective April 1, 2001, the Municipal Income Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.95% to 5.01%. Investor A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.70% to 4.76%. Investor B Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.95% to 4.01%. Investor C Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.95% to 4.01%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 188 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.27) $11.23 6.27% $814,528 0.60%+(a) 4.92%+ 11% 0.80%+ (0.55) 10.83 2.21 805,149 0.60(a) 5.01 13 0.79 (0.56) 11.14 9.80 881,611 0.60(a) 5.13 18 0.79 (0.55) 10.69 (2.08) 552,650 0.60(a) 4.99 36 0.82 (0.59) 11.48 5.42 635,629 0.60(a) 4.71 11 0.80 (0.62) 11.46 11.12 456,485 0.60(a) 4.97 38 0.84 $(0.26) $11.22 6.05% $ 49,893 0.85%+(a) 4.67%+ 11% 1.05%+ (0.53) 10.83 1.95 50,765 0.85(a) 4.76 13 1.04 (0.53) 11.14 9.55 38,591 0.83(a) 4.90 18 1.04 (0.53) 10.68 (2.28) 35,937 0.83(a) 4.76 36 1.07 (0.57) 11.48 5.21 28,625 0.80(a) 4.51 11 1.05 (0.59) 11.46 10.89 19,226 0.80(a) 4.77 38 1.04 $(0.22) $11.23 5.74% $ 10,239 1.60%+(a) 3.92%+ 11% 1.80%+ (0.44) 10.83 1.28 9,116 1.60(a) 4.01 13 1.79 (0.45) 11.13 8.62 8,930 1.60(a) 4.13 18 1.79 (0.45) 10.69 (2.99) 8,795 1.53(a) 4.06 36 1.82 (0.50) 11.48 4.53 13,810 1.45(a) 3.86 11 1.80 (0.53) 11.46 10.23 15,383 1.42(a) 4.15 38 1.66 $(0.22) $11.23 5.65% $ 1,873 1.60%+(a) 3.92%+ 11% 1.80%+ (0.44) 10.84 1.28 1,294 1.60(a) 4.01 13 1.79 (0.45) 11.14 8.71 1,318 1.60(a) 4.13 18 1.79 (0.45) 10.69 (3.03) 1,418 1.60(a) 3.99 36 1.82 (0.51) 11.48 4.64 2,150 1.36(a) 3.95 11 1.80 (0.54) 11.46 10.37 2,444 1.33(a) 4.24 38 1.57
SEE NOTES TO FINANCIAL STATEMENTS. 189 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS NET ASSET VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT END OF OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME PERIOD ------------------------------------------------------------------------------------- CALIFORNIA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES* Period ended 9/30/2002# (unaudited)....... $10.00 $0.05 $0.19 $0.24 $(0.04) $10.20 INVESTOR A SHARES* Period ended 9/30/2002# (unaudited)....... $10.00 $0.02 $0.22 $0.24 $(0.02) $10.22 INVESTOR B SHARES* Period ended 9/30/2002# (unaudited)....... $10.00 $0.02 $0.21 $0.23 $(0.02) $10.21 INVESTOR C SHARES* Period ended 9/30/2002# (unaudited)....... $10.00 $0.02 $0.22 $0.24 $(0.02) $10.22
- --------------- * California Intermediate Municipal Bond Primary A, Investor A, Investor B and Investor C shares commenced operations on August 19, 2002, September 9, 2002, August 29, 2002, and September 11, 2002 respectively. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. SEE NOTES TO FINANCIAL STATEMENTS. 190 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF NET ASSETS OPERATING INVESTMENT OPERATING END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ----------------------------------------------------------------------------------- 2.44% $124,490 0.50%+ 3.68%+ 6% 0.83%+ 0.96% $ 1,205 0.75%+ 3.43%+ 6% 1.08%+ 1.93% $ 152 1.50%+ 2.68%+ 6% 1.83%+ 0.99% $ 491 1.50%+ 2.68%+ 6% 1.83%+
SEE NOTES TO FINANCIAL STATEMENTS. 191 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ----------------------------------------------------------------------------------------- CALIFORNIA MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)....................... $7.28 $0.16 $ 0.47 $ 0.63 $(0.17) $ -- Year ended 3/31/2002*#.............. 7.45 0.35 (0.14) 0.21 (0.35) (0.03) Year ended 3/31/2001#............... 7.13 0.37 0.33 0.70 (0.36) (0.02) Period ended 3/31/2000***........... 7.51 0.30 (0.36) (0.06) (0.30) (0.02) INVESTOR A SHARES** Six months ended 9/30/2002# (unaudited)....................... $7.29 $0.16 $ 0.46 $ 0.62 $(0.16) $ -- Year ended 3/31/2002*#.............. 7.47 0.33 (0.15) 0.18 (0.33) (0.03) Year ended 3/31/2001#............... 7.14 0.35 0.34 0.69 (0.34) (0.02) Period ended 3/31/2000.............. 7.50 0.31 (0.34) (0.03) (0.31) (0.02) Period ended 5/14/1999.............. 7.60 0.07 (0.10) (0.03) (0.07) -- Year ended 2/28/1999................ 7.64 0.34 0.10 0.44 (0.34) (0.14) Year ended 2/28/1998................ 7.35 0.35 0.29 0.64 (0.35) -- Year ended 2/28/1997***............. 7.45 0.36 (0.05) 0.31 (0.36) (0.05) INVESTOR B SHARES** Six months ended 9/30/2002# (unaudited)....................... $7.29 $0.14 $ 0.47 $ 0.61 $(0.14) $ -- Year ended 3/31/2002*#.............. 7.47 0.27 (0.14) 0.13 (0.28) (0.03) Year ended 3/31/2001#............... 7.14 0.30 0.34 0.64 (0.29) (0.02) Period ended 3/31/2000.............. 7.51 0.27 (0.35) (0.08) (0.27) (0.02) Period ended 5/14/1999.............. 7.61 0.06 (0.10) (0.04) (0.06) -- Period ended 2/28/1999****.......... 7.61 0.16 0.14 0.30 (0.16) (0.14) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)....................... $7.27 $0.13 $ 0.47 $ 0.60 $(0.14) $ -- Year ended 3/31/2002*#.............. 7.44 0.27 (0.13) 0.14 (0.28) (0.03) Year ended 3/31/2001#............... 7.12 0.30 0.33 0.63 (0.29) (0.02) Period ended 3/31/2000****.......... 7.31 0.19 (0.17) 0.02 (0.19) (0.02)
- --------------- * Effective April 1, 2001, the California Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.69% to 4.71%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.44% to 4.46%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.69% to 3.71%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.69% to 3.71%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. ** The financial information for the fiscal periods through May 14, 1999 reflect the financial information for the Pacific Horizon California Municipal Bond Fund A and B Shares, which were reorganized into the California Municipal Bond Investor A and Investor B Shares, respectively, as of May 21, 1999. Prior to May 21, 1999, the Fund's investment adviser was Bank of America National Trust and Savings Association. Effective May 21, 1999, its investment adviser became Banc of America Advisors, LLC and its investment sub-adviser became Banc of America Capital Management, LLC. *** As of July 22, 1996, the Fund designated the existing series of shares as "A" Shares. ****California Municipal Bond Primary A, Investor B and Investor C Shares commenced operations on May 21, 1999, July 15, 1998 and July 29, 1999, respectively. # Per share net investment income has been calculated using the monthly average shares method. (a) The effect of interest expense on the operating expense ratio was less than 0.01%. (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. 192 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - -------------------------------------------------------------------------------------------------------------------- $(0.17) $7.74 8.79% $202,432 0.60%+(a) 4.56%+ 2% 0.81%+ (0.38) 7.28 2.85 57,803 0.60 4.71 8 0.85 (0.38) 7.45 10.05 37,285 0.60(a) 5.04 20 0.82 (0.32) 7.13 (0.66) 21,654 0.60+(a) 4.70+ 34 0.79+ $(0.16) $7.75 8.65% $148,200 0.85%+(a) 4.31%+ 2% 1.06%+ (0.36) 7.29 2.45 145,567 0.85 4.46 8 1.10 (0.36) 7.47 9.93 149,282 0.83(a) 4.81 20 1.07 (0.33) 7.14 (0.46) 157,672 0.80+(a) 4.50+ 34 1.04+ (0.07) 7.50 (0.42) 206,000 0.93+ 4.40+ 1 0.96+ (0.48) 7.60 5.94 219,000 0.93 4.42 42 0.93 (0.35) 7.64 9.18 214,000 0.90(b) 4.74 28 1.06(b) (0.41) 7.35 4.29 221,000 0.90(b) 4.88 34 1.10(b) $(0.14) $7.76 8.38% $ 9,204 1.60%+(a) 3.56%+ 2% 1.81%+ (0.31) 7.29 1.68 7,458 1.60 3.71 8 1.85 (0.31) 7.47 9.15 5,729 1.55(a) 4.09 20 1.82 (0.29) 7.14 (1.16) 4,206 1.45+(a) 3.85+ 34 1.79+ (0.06) 7.51 (0.57) 3,000 1.66+ 3.63+ 1 1.69+ (0.30) 7.61 4.09 2,000 1.70+(b) 3.67+ 42 1.71+(b) $(0.14) $7.73 8.26% $ 5,028 1.60%+(a) 3.56%+ 2% 1.81%+ (0.31) 7.27 1.82 3,265 1.60 3.71 8 1.85% (0.31) 7.44 8.97 1,191 1.60(a) 4.04 20 1.82 (0.21) 7.12 0.30 258 1.60+(a) 3.70+ 34 1.79+
SEE NOTES TO FINANCIAL STATEMENTS. 193 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS NET ASSET VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT END OF OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME PERIOD ----------------------------------------------------------------------------------------- FLORIDA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)...................... $10.55 $0.23 $ 0.41 $ 0.64 $(0.24) $10.95 Year ended 3/31/2002*#............. 10.70 0.50 (0.15) 0.35 (0.50) 10.55 Year ended 3/31/2001............... 10.34 0.50 0.37 0.87 (0.51) 10.70 Year ended 3/31/2000#.............. 10.79 0.50 (0.45) 0.05 (0.50) 10.34 Year ended 3/31/1999............... 10.77 0.50 0.02 0.52 (0.50) 10.79 Year ended 3/31/1998............... 10.40 0.50 0.37 0.87 (0.50) 10.77 INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)...................... $10.54 $0.22 $ 0.41 $ 0.63 $(0.23) $10.94 Year ended 3/31/2002*#............. 10.69 0.47 (0.15) 0.32 (0.47) 10.54 Year ended 3/31/2001............... 10.33 0.48 0.36 0.84 (0.48) 10.69 Year ended 3/31/2000#.............. 10.79 0.48 (0.46) 0.02 (0.48) 10.33 Year ended 3/31/1999............... 10.77 0.48 0.02 0.50 (0.48) 10.79 Year ended 3/31/1998............... 10.40 0.48 0.37 0.85 (0.48) 10.77 INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)...................... $10.55 $0.19 $ 0.40 $ 0.59 $(0.19) $10.95 Year ended 3/31/2002*#............. 10.70 0.39 (0.15) 0.24 (0.39) 10.55 Year ended 3/31/2001............... 10.34 0.40 0.36 0.76 (0.40) 10.70 Year ended 3/31/2000#.............. 10.79 0.41 (0.45) (0.04) (0.41) 10.34 Year ended 3/31/1999............... 10.77 0.42 0.02 0.44 (0.42) 10.79 Year ended 3/31/1998............... 10.40 0.43 0.37 0.80 (0.43) 10.77 INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)...................... $10.56 $0.18 $ 0.41 $ 0.59 $(0.19) $10.96 Year ended 3/31/2002*#............. 10.72 0.31 (0.08) 0.23 (0.39) 10.56 Year ended 3/31/2001............... 10.36 0.40 0.36 0.76 (0.40) 10.72 Year ended 3/31/2000#.............. 10.79 0.40 (0.43) (0.03) (0.40) 10.36 Year ended 3/31/1999............... 10.77 0.41 0.03 0.44 (0.42) 10.79 Year ended 3/31/1998#.............. 10.40 0.43 0.37 0.80 (0.43) 10.77
- --------------- * Effective April 1, 2001, the Florida Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.61% to 4.65%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.36% to 4.40%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.61% to 3.65%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.61% to 3.65%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 194 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF NET ASSETS OPERATING INVESTMENT OPERATING END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS - --------------------------------------------------------------------------------- 6.15% $222,869 0.50%+ 4.49%+ 7% 0.72%+ 3.28 211,928 0.50(a) 4.65 15 0.73 8.59 240,441 0.50(a) 4.82 6 0.71 0.54 207,704 0.50(a) 4.80 12 0.74 4.95 234,530 0.50 4.65 14 0.72 8.55 203,710 0.50(a) 4.74 13 0.76 6.02% $ 13,685 0.75%+ 4.24%+ 7% 0.97%+ 3.03 8,530 0.75(a) 4.40 15 0.98 8.33 5,319 0.75(a) 4.57 6 0.96 0.22 9,695 0.73(a) 4.57 12 0.99 4.74 12,783 0.70 4.45 14 0.97 8.34 7,205 0.70(a) 4.54 13 0.96 5.62% $ 7,978 1.50%+ 3.49%+ 7% 1.72%+ 2.26 5,700 1.50(a) 3.65 15 1.73 7.52 4,429 1.50(a) 3.82 6 1.71 (0.38) 4,639 1.41(a) 3.89 12 1.74 4.11 5,090 1.30 3.85 14 1.72 7.80 3,606 1.20(a) 4.04 13 1.46 5.60% $ 3,357 1.50%+ 3.49%+ 7% 1.72%+ 2.12 2,116 1.50(a) 3.65 15 1.73 7.49 172 1.50(a) 3.82 6 1.71 (0.26) 117 1.50(a) 3.80 12 1.74 4.10 1,416 1.36 3.79 14 1.72 7.80 188 1.20(a) 4.04 13 1.46
SEE NOTES TO FINANCIAL STATEMENTS. 195 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ----------------------------------------------------------------------------------------- FLORIDA MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)....................... $9.81 $0.23 $ 0.62 $ 0.85 $(0.23) $(0.03) Year ended 3/31/2002*#.............. 9.98 0.47 (0.12) 0.35 (0.47) (0.05) Year ended 3/31/2001................ 9.53 0.48 0.46 0.94 (0.48) (0.01) Year ended 3/31/2000................ 9.99 0.48 (0.46) 0.02 (0.48) -- Year ended 3/31/1999................ 9.99 0.48 0.00 0.48 (0.48) -- Year ended 3/31/1998................ 9.48 0.48 0.51 0.99 (0.48) -- INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)....................... $9.81 $0.22 $ 0.62 $ 0.84 $(0.22) $(0.03) Year ended 3/31/2002*#.............. 9.98 0.45 (0.12) 0.33 (0.45) (0.05) Year ended 3/31/2001................ 9.53 0.45 0.46 0.91 (0.45) (0.01) Year ended 3/31/2000................ 9.99 0.46 (0.46) -- (0.46) -- Year ended 3/31/1999................ 9.99 0.46 0.00 0.46 (0.46) -- Year ended 3/31/1998................ 9.48 0.46 0.51 0.97 (0.46) -- INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)....................... $9.81 $0.18 $ 0.62 $ 0.80 $(0.18) $(0.03) Year ended 3/31/2002*#.............. 9.98 0.37 (0.12) 0.25 (0.37) (0.05) Year ended 3/31/2001................ 9.53 0.38 0.46 0.84 (0.38) (0.01) Year ended 3/31/2000................ 9.99 0.39 (0.46) (0.07) (0.39) -- Year ended 3/31/1999................ 9.99 0.40 0.00 0.40 (0.40) -- Year ended 3/31/1998................ 9.48 0.40 0.51 0.91 (0.40) -- INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)....................... $9.80 $0.18 $ 0.62 $ 0.80 $(0.18) $(0.03) Year ended 3/31/2002*#.............. 9.97 0.36 (0.11) 0.25 (0.37) (0.05) Year ended 3/31/2001................ 9.53 0.37 0.46 0.83 (0.38) (0.01) Year ended 3/31/2000................ 9.99 0.38 (0.46) (0.08) (0.38) -- Year ended 3/31/1999#............... 9.99 0.37 0.03 0.40 (0.40) -- Year ended 3/31/1998#............... 9.48 0.41 0.51 0.92 (0.41) --
- --------------- * Effective April 1, 2001, the Florida Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.71% to 4.76%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.46% to 4.51%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.71% to 3.76%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.71% to 3.76%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 196 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.26) $10.40 8.86% $76,433 0.60%+(a) 4.63%+ 11% 0.86%+ (0.52) 9.81 3.55 75,300 0.60(a) 4.76 5 0.87 (0.49) 9.98 10.13 92,327 0.60(a) 4.93 7 0.83 (0.48) 9.53 0.26 79,335 0.60(a) 4.98 18 0.86 (0.48) 9.99 4.90 77,197 0.60(a) 4.80 16 0.85 (0.48) 9.99 10.60 27,378 0.60(a) 4.85 19 0.90 $(0.25) $10.40 8.72% $45,598 0.85%+(a) 4.38%+ 11% 1.11%+ (0.50) 9.81 3.29 43,619 0.85(a) 4.51 5 1.12 (0.46) 9.98 9.86 45,034 0.85(a) 4.68 7 1.08 (0.46) 9.53 0.04 49,439 0.83(a) 4.75 18 1.11 (0.46) 9.99 4.69 65,373 0.80(a) 4.60 16 1.10 (0.46) 9.99 10.38 2,027 0.80(a) 4.65 19 1.10 $(0.21) $10.40 8.32% $11,618 1.60%+(a) 3.63%+ 11% 1.86%+ (0.42) 9.81 2.52 10,419 1.60(a) 3.76 5 1.87 (0.39) 9.98 9.05 10,811 1.60(a) 3.93 7 1.83 (0.39) 9.53 (0.67) 12,802 1.53(a) 4.05 18 1.86 (0.40) 9.99 4.01 15,435 1.45(a) 3.95 16 1.85 (0.40) 9.99 9.71 17,048 1.42(a) 4.03 19 1.72 $(0.21) $10.39 8.32% $ 468 1.60%+(a) 3.63%+ 11% 1.86%+ (0.42) 9.80 2.51 278 1.60(a) 3.76 5 1.87 (0.39) 9.97 8.92 64 1.60(a) 3.93 7 1.83 (0.38) 9.53 (0.73) 23 1.60(a) 3.98 18 1.86 (0.40) 9.99 4.01 23 1.53(a) 3.87 16 1.85 (0.41) 9.99 9.83 3 1.33(a) 4.12 19 1.63
SEE NOTES TO FINANCIAL STATEMENTS. 197 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ----------------------------------------------------------------------------------------- GEORGIA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)....................... $10.69 $0.25 $ 0.37 $ 0.62 $(0.25) $ -- Year ended 3/31/2002*#.............. 10.82 0.50 (0.13) 0.37 (0.50) -- Year ended 3/31/2001................ 10.42 0.51 0.40 0.91 (0.51) -- Year ended 3/31/2000................ 10.94 0.50 (0.51) (0.01) (0.50) (0.01) Year ended 3/31/1999................ 10.92 0.49 0.07 0.56 (0.50) (0.04) Year ended 3/31/1998................ 10.58 0.49 0.38 0.87 (0.49) (0.04) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)....................... $10.69 $0.24 $ 0.36 $ 0.60 $(0.23) $ -- Year ended 3/31/2002*#.............. 10.82 0.48 (0.13) 0.35 (0.48) -- Year ended 3/31/2001................ 10.42 0.48 0.40 0.88 (0.48) -- Year ended 3/31/2000................ 10.94 0.48 (0.52) (0.04) (0.47) (0.01) Year ended 3/31/1999................ 10.92 0.47 0.06 0.53 (0.47) (0.04) Year ended 3/31/1998................ 10.58 0.47 0.38 0.85 (0.47) (0.04) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)....................... $10.69 $0.19 $ 0.37 $ 0.56 $(0.19) $ -- Year ended 3/31/2002*#.............. 10.82 0.39 (0.12) 0.27 (0.40) -- Year ended 3/31/2001................ 10.42 0.40 0.40 0.80 (0.40) -- Year ended 3/31/2000................ 10.94 0.40 (0.51) (0.11) (0.40) (0.01) Year ended 3/31/1999................ 10.92 0.41 0.06 0.47 (0.41) (0.04) Year ended 3/31/1998................ 10.58 0.42 0.38 0.80 (0.42) (0.04) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)....................... $10.69 $0.19 $ 0.37 $ 0.56 $(0.19) $ -- Year ended 3/31/2002*#.............. 10.82 0.39 (0.12) 0.27 (0.40) -- Year ended 3/31/2001................ 10.42 0.40 0.40 0.80 (0.40) -- Year ended 3/31/2000................ 10.94 0.39 (0.51) (0.12) (0.39) (0.01) Year ended 3/31/1999................ 10.92 0.41 0.05 0.46 (0.40) (0.04) Year ended 3/31/1998#............... 10.58 0.42 0.38 0.80 (0.42) (0.04)
- --------------- * Effective April 1, 2001, the Georgia Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.61% to 4.65%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.36% to 4.40%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.61% to 3.65%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.61% to 3.65%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 198 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.25) $11.06 5.84% $155,489 0.50%+(a) 4.54%+ 4% 0.73%+ (0.50) 10.69 3.50 134,638 0.50(a) 4.65 6 0.76 (0.51) 10.82 8.93 128,158 0.50(a) 4.80 10 0.73 (0.51) 10.42 (0.02) 121,948 0.50(a) 4.69 28 0.78 (0.54) 10.94 5.20 132,016 0.50 4.51 14 0.73 (0.53) 10.92 8.45 125,654 0.50 4.54 25 0.75 $(0.23) $11.06 5.70% $ 14,459 0.75%+(a) 4.29%+ 4% 0.98%+ (0.48) 10.69 3.24 12,791 0.75(a) 4.40 6 1.01 (0.48) 10.82 8.66 11,872 0.75(a) 4.55 10 0.98 (0.48) 10.42 (0.27) 13,244 0.73(a) 4.46 28 1.03 (0.51) 10.94 4.99 19,674 0.70 4.31 14 0.98 (0.51) 10.92 8.24 9,446 0.70 4.34 25 0.95 $(0.19) $11.06 5.31% $ 14,103 1.50%+(a) 3.54%+ 4% 1.73%+ (0.40) 10.69 2.47 6,865 1.50(a) 3.65 6 1.76 (0.40) 10.82 7.85 6,773 1.50(a) 3.80 10 1.73 (0.41) 10.42 (0.96) 6,812 1.41(a) 3.78 28 1.78 (0.45) 10.94 4.37 8,310 1.30 3.71 14 1.73 (0.46) 10.92 7.70 7,378 1.20 3.84 25 1.45 $(0.19) $11.06 5.30% $ 4,017 1.50%+(a) 3.54%+ 4% 1.73%+ (0.40) 10.69 2.46 1,400 1.50(a) 3.65 6 1.76 (0.40) 10.82 7.96 770 1.50(a) 3.80 10 1.73 (0.40) 10.42 (1.13) 764 1.50(a) 3.69 28 1.78 (0.44) 10.94 4.35 886 1.31 3.70 14 1.73 (0.46) 10.92 7.70 1,034 1.20 3.84 25 1.45
SEE NOTES TO FINANCIAL STATEMENTS. 199 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- KANSAS MUNICIPAL INCOME PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.16 $0.22 $ 0.45 $0.67 $(0.22) Year ended 3/31/2002*#.................... 10.33 0.45 (0.16) 0.29 (0.45) Period ended 3/31/2001**#................. 10.00 0.46 0.18 0.64 (0.31) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.15 $0.18 $ 0.49 $0.67 $(0.21) Year ended 3/31/2002*#.................... 10.33 0.43 (0.17) 0.26 (0.43) Period ended 3/31/2001**#................. 10.00 0.47 0.13 0.60 (0.27) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.14 $0.17 $ 0.46 $0.63 $(0.17) Year ended 3/31/2002*#.................... 10.32 0.35 (0.17) 0.18 (0.35) Period ended 3/31/2001**#................. 10.00 0.33 0.19 0.52 (0.20) INVESTOR C SHARES Period ended 9/30/2002**# (unaudited)..... $10.00 $0.07 $ 0.57 $0.64 $(0.07) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- KANSAS MUNICIPAL INCOME PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $(0.02) Year ended 3/31/2002*#.................... (0.01) Period ended 3/31/2001**#................. 0.00 INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $(0.02) Year ended 3/31/2002*#.................... (0.01) Period ended 3/31/2001**#................. 0.00 INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $(0.02) Year ended 3/31/2002*#.................... (0.01) Period ended 3/31/2001**#................. 0.00 INVESTOR C SHARES Period ended 9/30/2002**# (unaudited)..... $ --
- --------------- * Effective April 1, 2001, the Kansas Municipal Income Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.39% to 4.40.%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.14% to 4.15%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.39% to 3.40%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. **Kansas Municipal Income Primary A, Investor A, Investor B and Investor C Shares commenced operations on July 17, 2000, August 14, 2000, August 29, 2000 and July 9, 2002, respectively. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 200 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.24) $10.59 6.69% $ 93,924 0.60%+(a) 4.22%+ 16% 0.89%+ (0.46) 10.16 2.84 98,506 0.60(a) 4.40 13 0.91 (0.31) 10.33 6.60 111,226 0.60+(a) 4.44+(a) 17 0.93+ $(0.23) $10.59 6.66% $ 6,669 0.85%+(a) 3.97%+ 16% 1.14%+ (0.44) 10.15 2.49 3,115 0.85(a) 4.15 13 1.16 (0.27) 10.33 5.66 646 0.85+(a) 4.19+(a) 17 1.18+ $(0.19) $10.58 6.27% $ 26 1.60%+(a) 3.22%+ 16% 1.89%+ (0.36) 10.14 1.62 25 1.60(a) 3.40 13 1.91 (0.20) 10.32 4.78 262 1.60+(a) 3.44+(a) 17 1.93+ $(0.07) $10.57 2.93% $ 103 1.60%+(a) 3.22%+ 16% 1.89%+
SEE NOTES TO FINANCIAL STATEMENTS. 201 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- MARYLAND INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.84 $0.24 $ 0.54 $ 0.78 $(0.24) Year ended 3/31/2002*#.................... 11.01 0.50 (0.17) 0.33 (0.50) Year ended 3/31/2001#..................... 10.58 0.51 0.43 0.94 (0.51) Year ended 3/31/2000...................... 11.07 0.50 (0.48) 0.02 (0.50) Year ended 3/31/1999...................... 11.01 0.50 0.06 0.56 (0.50) Year ended 3/31/1998...................... 10.70 0.51 0.31 0.82 (0.51) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.84 $0.23 $ 0.54 $ 0.77 $(0.23) Year ended 3/31/2002*#.................... 11.01 0.47 (0.17) 0.30 (0.47) Year ended 3/31/2001#..................... 10.58 0.48 0.43 0.91 (0.48) Year ended 3/31/2000...................... 11.07 0.47 (0.48) (0.01) (0.47) Year ended 3/31/1999...................... 11.01 0.48 0.06 0.54 (0.48) Year ended 3/31/1998...................... 10.70 0.49 0.31 0.80 (0.49) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.84 $0.19 $ 0.53 $ 0.72 $(0.18) Year ended 3/31/2002*#.................... 11.01 0.38 (0.16) 0.22 (0.39) Year ended 3/31/2001#..................... 10.58 0.40 0.43 0.83 (0.40) Year ended 3/31/2000...................... 11.07 0.40 (0.48) (0.08) (0.40) Year ended 3/31/1999...................... 11.01 0.41 0.06 0.47 (0.41) Year ended 3/31/1998...................... 10.70 0.43 0.31 0.74 (0.43) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.84 $0.19 $ 0.53 $ 0.72 $(0.18) Year ended 3/31/2002*#.................... 11.01 0.35 (0.13) 0.22 (0.39) Year ended 3/31/2001#..................... 10.58 0.40 0.43 0.83 (0.40) Year ended 3/31/2000...................... 11.07 0.39 (0.48) (0.09) (0.39) Year ended 3/31/1999...................... 11.01 0.41 0.06 0.47 (0.41) Year ended 3/31/1998...................... 10.70 0.43 0.31 0.74 (0.43) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- MARYLAND INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... --
- --------------- * Effective April 1, 2001, the Maryland Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.49% to 4.54%. Investor A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.24% to 4.29%. Investor B Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.49% to 3.54%. Investor C Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.49% to 3.54%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 202 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.24) $11.38 7.26% $197,054 0.50%+(a) 4.30%+ 8% 0.72%+ (0.50) 10.84 3.02 172,600 0.50(a) 4.54 16 0.74 (0.51) 11.01 9.08 178,304 0.50 4.72 13 0.71 (0.51) 10.58 0.17 169,218 0.50 4.65 21 0.76 (0.50) 11.07 5.17 183,356 0.50 4.51 22 0.74 (0.51) 11.01 7.83 84,715 0.50 4.63 12 0.80 $(0.23) $11.38 7.12% $ 26,270 0.75%+(a) 4.05%+ 8% 0.97%+ (0.47) 10.84 2.76 20,760 0.75(a) 4.29 16 0.99 (0.48) 11.01 8.81 17,478 0.75 4.47 13 0.96 (0.48) 10.58 (0.06) 16,454 0.73 4.42 21 1.01 (0.48) 11.07 4.96 17,166 0.70 4.31 22 0.99 (0.49) 11.01 7.61 15,558 0.70 4.43 12 1.00 $(0.18) $11.38 6.72% $ 24,069 1.50%+(a) 3.30%+ 8% 1.72%+ (0.39) 10.84 1.99 6,318 1.50(a) 3.54 16 1.74 (0.40) 11.01 8.01 5,120 1.50 3.72 13 1.71 (0.41) 10.58 (0.74) 5,662 1.42 3.73 21 1.76 (0.41) 11.07 4.33 5,989 1.30 3.71 22 1.74 (0.43) 11.01 7.07 4,804 1.20 3.93 12 1.50 $(0.18) $11.38 6.72% $ 2,402 1.50%+(a) 3.30%+ 8% 1.72%+ (0.39) 10.84 1.98 1,454 1.50(a) 3.54 16 1.74 (0.40) 11.01 8.01 301 1.50 3.72 13 1.71 (0.40) 10.58 (0.82) 335 1.50 3.65 21 1.76 (0.41) 11.07 4.31 561 1.32 3.69 22 1.74 (0.43) 11.01 7.07 840 1.20 3.93 12 1.50
SEE NOTES TO FINANCIAL STATEMENTS. 203 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.43 $0.23 $ 0.50 $ 0.73 $(0.23) Year ended 3/31/2002*#.................... 10.58 0.49 (0.16) 0.33 (0.48) Year ended 3/31/2001#..................... 10.21 0.49 0.37 0.86 (0.49) Year ended 3/31/2000...................... 10.71 0.48 (0.48) 0.00 (0.48) Year ended 3/31/1999...................... 10.70 0.49 0.04 0.53 (0.49) Year ended 3/31/1998...................... 10.34 0.49 0.36 0.85 (0.49) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.44 $0.22 $ 0.49 $ 0.71 $(0.22) Year ended 3/31/2002*#.................... 10.58 0.46 (0.14) 0.32 (0.46) Year ended 3/31/2001#..................... 10.21 0.47 0.36 0.83 (0.46) Year ended 3/31/2000...................... 10.71 0.46 (0.48) (0.02) (0.46) Year ended 3/31/1999...................... 10.70 0.47 0.04 0.51 (0.47) Year ended 3/31/1998...................... 10.34 0.47 (0.36) 0.83 (0.47) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.43 $0.19 $ 0.49 $ 0.68 $(0.18) Year ended 3/31/2002*#.................... 10.58 0.38 (0.15) 0.23 (0.38) Year ended 3/31/2001#..................... 10.21 0.38 0.37 0.75 (0.38) Year ended 3/31/2000...................... 10.71 0.39 (0.48) (0.09) (0.39) Year ended 3/31/1999...................... 10.70 0.40 0.04 0.44 (0.40) Year ended 3/31/1998...................... 10.34 0.42 0.36 0.78 (0.42) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.44 $0.18 $ 0.49 $ 0.67 $(0.18) Year ended 3/31/2002*#.................... 10.58 0.34 (0.10) 0.24 (0.38) Year ended 3/31/2001#..................... 10.21 0.39 0.36 0.75 (0.38) Year ended 3/31/2000...................... 10.71 0.38 (0.48) (0.10) (0.38) Year ended 3/31/1999...................... 10.70 0.42 0.02 0.44 (0.40) Year ended 3/31/1998...................... 10.34 0.42 0.36 0.78 (0.42) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.02) Year ended 3/31/1999...................... (0.03) Year ended 3/31/1998...................... -- INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.02) Year ended 3/31/1999...................... (0.03) Year ended 3/31/1998...................... -- INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.02) Year ended 3/31/1999...................... (0.03) Year ended 3/31/1998...................... -- INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000...................... (0.02) Year ended 3/31/1999...................... (0.03) Year ended 3/31/1998...................... --
- --------------- * Effective April 1, 2001, the North Carolina Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.48% to 4.58%. Investor A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.23% to 4.33%. Investor B Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.48% to 3.58%. Investor C Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.48% to 3.58%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 204 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.23) $10.93 7.08% $200,781 0.50%+ 4.33%+ 8% 0.72%+ (0.48) 10.43 3.20 176,671 0.50(a) 4.58 13 0.74 (0.49) 10.58 8.61 180,126 0.50(a) 4.71 19 0.71 (0.50) 10.21 0.05 175,650 0.50(a) 4.67 19 0.76 (0.52) 10.71 5.03 193,398 0.50 4.57 16 0.71 (0.49) 10.70 8.39 179,729 0.50(a) 4.69 21 0.76 $(0.22) $10.93 6.85% $ 19,310 0.75%+ 4.08%+ 8% 0.97%+ (0.46) 10.44 3.04 11,975 0.75(a) 4.33 13 0.99 (0.46) 10.58 8.34 10,332 0.75(a) 4.46 19 0.96 (0.48) 10.21 (0.18) 9,684 0.73(a) 4.44 19 1.01 (0.50) 10.71 4.82 10,099 0.70 4.37 16 0.96 (0.47) 10.70 8.17 8,572 0.70(a) 4.49 21 0.96 $(0.18) $10.93 6.55% $ 20,847 1.50%+ 3.33%+ 8% 1.72%+ (0.38) 10.43 2.17 5,917 1.50(a) 3.58 13 1.74 (0.38) 10.58 7.54 5,261 1.50(a) 3.71 19 1.71 (0.41) 10.21 (0.87) 5,212 1.41(a) 3.76 19 1.76 (0.43) 10.71 4.20 6,671 1.30 3.77 16 1.71 (0.42) 10.70 7.64 6,859 1.20(a) 3.99 21 1.46 $(0.18) $10.93 6.44% $ 1,145 1.50%+ 3.33%+ 8% 1.72%+ (0.38) 10.44 2.25 734 1.50(a) 3.58 13 1.74 (0.38) 10.58 7.54 79 1.50(a) 3.71 19 1.71 (0.40) 10.21 (0.95) 88 1.50(a) 3.67 19 1.76 (0.43) 10.71 4.18 109 1.31 3.76 16 1.71 (0.42) 10.70 7.64 822 1.20(a) 3.99 21 1.46
SEE NOTES TO FINANCIAL STATEMENTS. 205 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.50 $0.25 $ 0.37 $ 0.62 $(0.25) Year ended 3/31/2002*#.................... 10.64 0.52 (0.14) 0.38 (0.52) Year ended 3/31/2001#..................... 10.27 0.52 0.37 0.89 (0.52) Year ended 3/31/2000#..................... 10.79 0.51 (0.51) -- (0.51) Year ended 3/31/1999...................... 10.79 0.51 0.04 0.55 (0.51) Year ended 3/31/1998...................... 10.50 0.52 0.29 0.81 (0.52) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.50 $0.24 $ 0.37 $ 0.61 $(0.24) Year ended 3/31/2002*#.................... 10.64 0.50 (0.14) 0.36 (0.50) Year ended 3/31/2001#..................... 10.27 0.49 0.37 0.86 (0.49) Year ended 3/31/2000#..................... 10.79 0.49 (0.51) (0.02) (0.49) Year ended 3/31/1999...................... 10.79 0.49 0.04 0.53 (0.49) Year ended 3/31/1998...................... 10.50 0.50 0.29 0.79 (0.50) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.50 $0.21 $ 0.36 $ 0.57 $(0.20) Year ended 3/31/2002*#.................... 10.64 0.42 (0.14) 0.28 (0.42) Year ended 3/31/2001#..................... 10.27 0.41 0.37 0.78 (0.41) Year ended 3/31/2000#..................... 10.79 0.41 (0.51) (0.10) (0..41) Year ended 3/31/1999...................... 10.79 0.43 0.04 0.47 (0.43) Year ended 3/31/1998...................... 10.50 0.44 0.29 0.73 (0.44) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.51 $0.21 $ 0.36 $ 0.57 $(0.20) Year ended 3/31/2002*#.................... 10.64 0.41 (0.12) 0.29 (0.42) Year ended 3/31/2001#..................... 10.27 0.41 0.37 0.78 (0.41) Year ended 3/31/2000#..................... 10.79 0.40 (0.51) (0.11) (0.40) Year ended 3/31/1999...................... 10.79 0.42 0.04 0.46 (0.42) Year ended 3/31/1998...................... 10.50 0.44 0.29 0.73 (0.44) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... (0.00)## INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... (0.00)## INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... (0.00)## INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... (0.00)##
- --------------- * Effective April 1, 2001, the South Carolina Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.02, decrease net realized and unrealized gains or losses per share by $0.02 and increase the ratio of net investment income to average net assets from 4.78% to 4.92%. Investor A Shares -- increase net investment income per share by $0.02, decrease net realized and unrealized gains or losses per share by $0.02 and increase the ratio of net investment income to average net assets from 4.53% to 4.67%. Investor B Shares -- increase net investment income per share by $0.02, decrease net realized and unrealized gains or losses per share by $0.02 and increase the ratio of net investment income to average net assets from 3.78% to 3.92%. Investor C Shares -- increase net investment income per share by $0.02, decrease net realized and unrealized gains or losses per share by $0.02 and increase the ratio of net investment income to average net assets from 3.78% to 3.92%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the average shares method. ## Amount represents less than $0.01 per share. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 206 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.25) $10.87 5.99% $227,194 0.50%+ 4.72%+ 9% 0.72%+ (0.52) 10.50 3.65 207,645 0.50(a) 4.92 8 0.73 (0.52) 10.64 8.85 217,513 0.50(a) 4.95 9 0.70 (0.52) 10.27 0.09 204,854 0.50(a) 4.88 14 0.74 (0.55) 10.79 5.22 239,195 0.50(a) 4.75 9 0.69 (0.52) 10.79 7.88 253,090 0.50(a) 4.86 16 0.75 $(0.24) $10.87 5.86% $ 23,810 0.75%+ 4.47%+ 9% 0.97%+ (0.50) 10.50 3.39 17,791 0.75(a) 4.67 8 0.98 (0.49) 10.64 8.58 18,420 0.75(a) 4.70 9 0.95 (0.50) 10.27 (0.14) 17,396 0.73(a) 4.65 14 0.99 (0.53) 10.79 5.01 18,729 0.70(a) 4.55 9 0.94 (0.50) 10.79 7.67 13,945 0.70(a) 4.66 16 0.95 $(0.20) $10.87 5.47% $ 14,450 1.50%+ 3.72%+ 9% 1.72%+ (0.42) 10.50 2.62 7,797 1.50(a) 3.92 8 1.73 (0.41) 10.64 7.78 7,083 1.50(a) 3.95 9 1.70 (0.42) 10.27 (0.82) 7,310 1.41(a) 3.97 14 1.74 (0.47) 10.79 4.39 8,542 1.30(a) 3.95 9 1.69 (0.44) 10.79 7.13 6,819 1.20(a) 4.16 16 1.45 $(0.20) $10.88 5.46% $ 8,157 1.50%+ 3.72%+ 9% 1.72%+ (0.42) 10.51 2.71 3,713 1.50(a) 3.92 8 1.73 (0.41) 10.64 7.78 2,175 1.50(a) 3.95 9 1.70 (0.41) 10.27 (0.91) 2,755 1.50(a) 3.88 14 1.74 (0.46) 10.79 4.36 3,102 1.32(a) 3.93 9 1.69 (0.44) 10.79 7.13 2,698 1.20(a) 4.16 16 1.45
SEE NOTES TO FINANCIAL STATEMENTS. 207 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- TENNESSEE INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.25 $0.23 $ 0.50 $ 0.73 $(0.23) Year ended 3/31/2002*#.................... 10.35 0.46 (0.10) 0.36 (0.46) Year ended 3/31/2001#..................... 9.91 0.48 0.44 0.92 (0.48) Year ended 3/31/2000#..................... 10.46 0.47 (0.54) (0.07) (0.47) Year ended 3/31/1999...................... 10.40 0.47 0.06 0.53 (0.47) Year ended 3/31/1998...................... 10.08 0.47 0.32 0.79 (0.47) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.25 $0.21 $ 0.50 $ 0.71 $(0.21) Year ended 3/31/2002*#.................... 10.35 0.43 (0.09) 0.34 (0.44) Year ended 3/31/2001#..................... 9.91 0.45 0.44 0.89 (0.45) Year ended 3/31/2000#..................... 10.46 0.44 (0.54) (0.10) (0.44) Year ended 3/31/1999...................... 10.40 0.45 0.06 0.51 (0.45) Year ended 3/31/1998...................... 10.08 0.45 0.32 0.77 (0.45) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.26 $0.18 $ 0.48 $ 0.66 $(0.17) Year ended 3/31/2002*#.................... 10.35 0.36 (0.09) 0.27 (0.36) Year ended 3/31/2001#..................... 9.91 0.38 0.44 0.82 (0.38) Year ended 3/31/2000#..................... 10.46 0.38 (0.54) (0.16) (0.38) Year ended 3/31/1999...................... 10.40 0.38 0.06 0.44 (0.38) Year ended 3/31/1998...................... 10.08 0.40 0.32 0.72 (0.40) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.21 $0.17 $ 0.49 $ 0.66 $(0.17) Year ended 3/31/2002*#.................... 10.31 0.30 (0.04) 0.26 (0.36) Year ended 3/31/2001#..................... 9.87 0.42 0.40 0.82 (0.38) Year ended 3/31/2000#..................... 10.45 0.39 (0.57) (0.18) (0.39) Year ended 3/31/1999...................... 10.40 0.39 0.05 0.44 (0.39) Year ended 3/31/1998...................... 10.08 0.40 0.32 0.72 (0.40) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- TENNESSEE INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.01) Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... --
- --------------- * Effective April 1, 2001, the Tennessee Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.44% to 4.45%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.19% to 4.20%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.44% to 3.45%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.44% to 3.45%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 208 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.23) $10.75 7.15% $43,939 0.50%+ 4.29%+ 3% 0.84%+ (0.46) 10.25 3.54 40,807 0.50 4.45 0 0.93 (0.48) 10.35 9.53 38,928 0.50(a) 4.77 10 0.84 (0.48) 9.91 (0.67) 37,736 0.50(a) 4.62 49 0.94 (0.47) 10.46 5.18 42,826 0.50 4.48 22 0.85 (0.47) 10.40 7.99 39,091 0.50(a) 4.58 38 0.84 $(0.21) $10.75 7.01% $14,015 0.75%+ 4.04%+ 3% 1.09%+ (0.44) 10.25 3.28 9,955 0.75 4.20 0 1.18 (0.45) 10.35 9.25 7,945 0.75(a) 4.52 10 1.09 (0.45) 9.91 (0.90) 7,810 0.73(a) 4.39 49 1.19 (0.45) 10.46 4.97 9,242 0.70 4.28 22 1.10 (0.45) 10.40 7.77 8,061 0.70(a) 4.38 38 1.04 $(0.17) $10.75 6.51% $ 5,172 1.50%+ 3.29%+ 3% 1.84%+ (0.36) 10.26 2.61 1,351 1.50 3.45 0 1.93 (0.38) 10.35 8.44 1,448 1.50(a) 3.77 10 1.84 (0.39) 9.91 (1.58) 1,783 1.41(a) 3.71 49 1.94 (0.38) 10.46 4.34 3,007 1.30 3.68 22 1.85 (0.40) 10.40 7.24 2,924 1.20(a) 3.88 38 1.54 $(0.17) $10.70 6.53% $ 1,168 1.50%+ 3.29%+ 3% 1.84%+ (0.36) 10.21 2.52 322 1.50 3.45 0 1.93 (0.38) 10.31 8.46 3 1.50(a) 3.77 10 1.84 (0.40) 9.87 (1.96) 3 1.50(a) 3.62 49 1.94 (0.39) 10.45 4.28 33 1.11 3.87 22 1.85 (0.40) 10.40 7.29 3 1.20(a) 3.88 38 1.54
SEE NOTES TO FINANCIAL STATEMENTS. 209 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- TEXAS INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.19 $0.24 $ 0.39 $ 0.63 $(0.24) Year ended 3/31/2002*#.................... 10.35 0.50 (0.16) 0.34 (0.50) Year ended 3/31/2001...................... 10.00 0.51 0.35 0.86 (0.51) Year ended 3/31/2000...................... 10.48 0.49 (0.48) 0.01 (0.49) Year ended 3/31/1999...................... 10.50 0.49 0.02 0.51 (0.49) Year ended 3/31/1998...................... 10.18 0.49 0.32 0.81 (0.49) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.19 $0.23 $ 0.39 $ 0.62 $(0.23) Year ended 3/31/2002*#.................... 10.35 0.48 (0.16) 0.32 (0.48) Year ended 3/31/2001...................... 10.00 0.48 0.35 0.83 (0.48) Year ended 3/31/2000...................... 10.48 0.47 (0.48) (0.01) (0.47) Year ended 3/31/1999...................... 10.50 0.47 0.02 0.49 (0.47) Year ended 3/31/1998...................... 10.18 0.47 0.32 0.79 (0.47) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.19 $0.19 $ 0.39 $ 0.58 $(0.19) Year ended 3/31/2002*#.................... 10.35 0.40 (0.16) 0.24 (0.40) Year ended 3/31/2001...................... 10.00 0.40 0.35 0.75 (0.40) Year ended 3/31/2000...................... 10.48 0.40 (0.48) (0.08) (0.40) Year ended 3/31/1999...................... 10.50 0.41 0.02 0.43 (0.41) Year ended 3/31/1998...................... 10.18 0.42 0.32 0.74 (0.42) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.18 $0.19 $ 0.40 $ 0.59 $(0.19) Year ended 3/31/2002*#.................... 10.35 0.24 (0.02) 0.22 (0.39) Year ended 3/31/2001...................... 10.00 0.40 0.35 0.75 (0.40) Year ended 3/31/2000...................... 10.48 0.38 (0.48) (0.10) (0.38) Year ended 3/31/1999#..................... 10.50 0.40 0.02 0.42 (0.40) Year ended 3/31/1998...................... 10.18 0.42 0.32 0.74 (0.42) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- TEXAS INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000...................... (0.00)## Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... -- INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000...................... (0.00)## Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... -- INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000...................... (0.00)## Year ended 3/31/1999...................... (0.04) Year ended 3/31/1998...................... -- INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001...................... -- Year ended 3/31/2000...................... (0.00)## Year ended 3/31/1999#..................... (0.04) Year ended 3/31/1998...................... --
- --------------- * Effective April 1, 2001, the Texas Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.84% to 4.87%. Investor A Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 4.59% to 4.62%. Investor B Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.84% to 3.87%. Investor C Shares -- increase net investment income per share by $0.00, decrease net realized and unrealized gains or losses per share by $0.00 and increase the ratio of net investment income to average net assets from 3.84% to 3.87%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. ## Amount represents less than $0.01 per share. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 210 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.24) $10.58 6.27% $270,534 0.50%+(a) 4.67%+ 13% 0.72%+ (0.50) 10.19 3.36 265,882 0.50(a) 4.87 5 0.72 (0.51) 10.35 8.78 286,949 0.50(a) 5.00 6 0.70 (0.49) 10.00 0.17 326,323 0.50(a) 4.84 33 0.72 (0.53) 10.48 4.98 391,431 0.50 4.66 22 0.68 (0.49) 10.50 8.09 385,770 0.50 4.74 19 0.75 $(0.23) $10.58 6.14% $ 5,334 0.75%+(a) 4.42%+ 13% 0.97%+ (0.48) 10.19 3.10 4,813 0.75(a) 4.62 5 0.97 (0.48) 10.35 8.52 4,346 0.75(a) 4.75 6 0.95 (0.47) 10.00 (0.06) 6,075 0.73(a) 4.61 33 0.97 (0.51) 10.48 4.77 6,909 0.70 4.46 22 0.93 (0.47) 10.50 7.87 2,666 0.70 4.54 19 0.95 $(0.19) $10.58 5.75% $ 6,248 1.50%+(a) 3.67%+ 13% 1.72%+ (0.40) 10.19 2.33 2,021 1.50(a) 3.87 5 1.72 (0.40) 10.35 7.71 2,145 1.50(a) 4.00 6 1.70 (0.40) 10.00 (0.74) 2,005 1.42(a) 3.92 33 1.72 (0.45) 10.48 4.15 2,137 1.30 3.86 22 1.68 (0.42) 10.50 7.34 2,184 1.20 4.04 19 1.45 $(0.19) $10.58 5.84% $ 90 1.50%+(a) 3.67%+ 13% 1.72%+ (0.39) 10.18 2.16 58 1.50(a) 3.87 5 1.72 (0.40) 10.35 7.69 3 1.50(a) 4.00 6 1.70 (0.38) 10.00 (0.86) 3 1.50(a) 3.84 33 1.72 (0.44) 10.48 4.14 3 1.33 3.83 22 1.68 (0.42) 10.50 7.34 293 1.20 4.04 19 1.45
SEE NOTES TO FINANCIAL STATEMENTS. 211 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS VALUE NET AND UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ------------------------------------------------------------------------- VIRGINIA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $10.79 $0.25 $ 0.48 $ 0.73 $(0.25) Year ended 3/31/2002*#.................... 10.92 0.50 (0.13) 0.37 (0.50) Year ended 3/31/2001#..................... 10.51 0.50 0.41 0.91 (0.50) Year ended 3/31/2000#..................... 10.98 0.50 (0.47) 0.03 (0.50) Year ended 3/31/1999...................... 10.92 0.50 0.06 0.56 (0.50) Year ended 3/31/1998...................... 10.59 0.51 0.33 0.84 (0.51) INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $10.79 $0.23 $ 0.48 $ 0.71 $(0.23) Year ended 3/31/2002*#.................... 10.92 0.47 (0.13) 0.34 (0.47) Year ended 3/31/2001#..................... 10.51 0.48 0.41 0.89 (0.48) Year ended 3/31/2000#..................... 10.98 0.47 (0.47) 0.00 (0.47) Year ended 3/31/1999#..................... 10.92 0.47 0.07 0.54 (0.48) Year ended 3/31/1998...................... 10.59 0.49 0.33 0.82 (0.49) INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $10.79 $0.20 $ 0.47 $ 0.67 $(0.19) Year ended 3/31/2002*#.................... 10.92 0.39 (0.13) 0.26 (0.39) Year ended 3/31/2001#..................... 10.51 0.40 0.41 0.81 (0.40) Year ended 3/31/2000#..................... 10.98 0.40 (0.47) (0.07) (0.40) Year ended 3/31/1999...................... 10.92 0.41 0.06 0.47 (0.41) Year ended 3/31/1998#..................... 10.59 0.44 0.33 0.77 (0.44) INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $10.79 $0.19 $ 0.48 $ 0.67 $(0.19) Year ended 3/31/2002*#.................... 10.92 0.39 (0.13) 0.26 (0.39) Year ended 3/31/2001#..................... 10.51 0.40 0.41 0.81 (0.40) Year ended 3/31/2000#..................... 10.98 0.39 (0.47) (0.08) (0.39) Year ended 3/31/1999#..................... 10.92 0.39 0.08 0.47 (0.41) Year ended 3/31/1998#..................... 10.59 0.44 0.33 0.77 (0.44) DISTRIBUTIONS FROM NET REALIZED GAINS ------------- VIRGINIA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.00)## Year ended 3/31/1999...................... -- Year ended 3/31/1998...................... -- INVESTOR A SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.00)## Year ended 3/31/1999#..................... -- Year ended 3/31/1998...................... -- INVESTOR B SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.00)## Year ended 3/31/1999...................... -- Year ended 3/31/1998#..................... -- INVESTOR C SHARES Six months ended 9/30/2002# (unaudited)... $ -- Year ended 3/31/2002*#.................... -- Year ended 3/31/2001#..................... -- Year ended 3/31/2000#..................... (0.00)## Year ended 3/31/1999#..................... -- Year ended 3/31/1998#..................... --
- --------------- * Effective April 1, 2001, the Virginia Intermediate Municipal Bond Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended March 31, 2002 on each of the classes was: Primary A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.49% to 4.58%. Investor A Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 4.24% to 4.33%. Investor B Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.49% to 3.58%. Investor C Shares -- increase net investment income per share by $0.01, decrease net realized and unrealized gains or losses per share by $0.01 and increase the ratio of net investment income to average net assets from 3.49% to 3.58%. Per share amounts and ratios for the period ended March 31, 2001 have not been restated to reflect this change in presentation. + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. # Per share net investment income has been calculated using the monthly average shares method. ## Amount represents less than $0.01 per share. (a)The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 212 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS - ------------------------------------------------------------------------------------------------------------ $(0.25) $11.27 6.79% $285,426 0.50%+(a) 4.44%+ 3% 0.71%+ (0.50) 10.79 3.44 237,459 0.50(a) 4.58 10 0.72 (0.50) 10.92 8.92 252,741 0.50 4.73 9 0.70 (0.50) 10.51 0.29 228,698 0.50(a) 4.66 23 0.73 (0.50) 10.98 5.21 227,299 0.50(a) 4.54 5 0.70 (0.51) 10.92 8.12 170,969 0.50(a) 4.77 21 0.74 $(0.23) $11.27 6.66% $ 54,260 0.75%+(a) 4.19%+ 3% 0.96%+ (0.47) 10.79 3.18 45,678 0.75(a) 4.33 10 0.97 (0.48) 10.92 8.65 43,655 0.75 4.48 9 0.95 (0.47) 10.51 0.06 46,663 0.73(a) 4.43 23 0.98 (0.48) 10.98 5.00 56,733 0.70(a) 4.34 5 0.95 (0.49) 10.92 7.91 54,080 0.70(a) 4.57 21 0.94 $(0.19) $11.27 6.26% $ 19,211 1.50%+(a) 3.44%+ 3% 1.71%+ (0.39) 10.79 2.40 8,987 1.50(a) 3.58 10 1.72 (0.40) 10.92 7.85 8,859 1.50 3.73 9 1.70 (0.40) 10.51 (0.63) 9,073 1.41(a) 3.75 23 1.73 (0.41) 10.98 4.38 10,296 1.30(a) 3.74 5 1.70 (0.44) 10.92 7.37 9,643 1.20(a) 4.07 21 1.44 $(0.19) $11.27 6.25% $ 1,762 1.50%+(a) 3.44%+ 3% 1.71%+ (0.39) 10.79 2.41 869 1.50(a) 3.58 10 1.72 (0.40) 10.92 7.84 817 1.50 3.73 9 1.70 (0.39) 10.51 (0.71) 759 1.50(a) 3.66 23 1.73 (0.41) 10.98 4.36 1,100 1.34(a) 3.70 5 1.70 (0.44) 10.92 7.37 1,949 1.20(a) 4.07 21 1.44
SEE NOTES TO FINANCIAL STATEMENTS. 213 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Nations Funds Trust ("Funds Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. At September 30, 2002, Funds Trust offered sixty-one separate portfolios. These financial statements pertain only to the municipal bond portfolios of Funds Trust: Short-Term Municipal Income Fund, Intermediate Municipal Bond Fund, Municipal Income Fund, California Intermediate Municipal Bond Fund, California Municipal Bond Fund, Florida Intermediate Municipal Bond Fund, Florida Municipal Bond Fund, Georgia Intermediate Municipal Bond Fund, Kansas Municipal Income Fund, Maryland Intermediate Municipal Bond Fund, North Carolina Intermediate Municipal Bond Fund, South Carolina Intermediate Municipal Bond Fund, Tennessee Intermediate Municipal Bond Fund, Texas Intermediate Municipal Bond Fund and Virginia Intermediate Municipal Bond Fund (each a "Fund" and collectively, the "Funds"). Financial statements for the other portfolios of Funds Trust are presented under separate cover. The Funds currently offer four classes of shares: Primary A Shares, Investor A Shares, Investor B Shares and Investor C Shares. Shareholders of a Fund have equal voting rights on matters affecting all shareholders of the Fund. In addition, each class of shares of a Fund has exclusive voting rights on matters that relate solely to that class and separate voting rights on matters in which the interests of one class differ from the interests of any other class. 1. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. Securities valuation: Securities are generally valued by an independent pricing service. These valuations are based upon a matrix pricing system and/or appraisals which take into consideration such factors as yields, security prices, maturities, redemption features and credit ratings on comparable securities. Certain securities may be valued based upon quotes provided by one or more principal market makers. Restricted securities, securities for which market quotations are not readily available, and certain other assets may be valued under procedures adopted by the Boards of Trustees. Short-term investments that mature in 60 days or less are valued at amortized cost, which approximates current market value. Investments in other Nations Funds are valued at their net asset value as determined by the applicable Nations Funds' prospectus. A Fund's municipal holdings may include obligations of issuers that rely in whole or in part for payment of interest and principal on state specific revenues, real property taxes, revenues from particular institutions, such as healthcare institutions, or obligations secured by mortgages on real property. Consequently, the impact of changes in state law or regulations or the economic conditions in a particular state should be considered. When-issued/delayed delivery securities: 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. Securities transactions and investment income: Securities transactions are recorded on trade date. Realized gains and losses are computed based on the specific identification of securities sold. Interest income, adjusted for accretion of discounts and amortization of premiums, is earned from settlement date and recorded on an accrual basis. Dividend income is recorded on ex- dividend date. Each Fund's investment income and realized and unrealized gains and losses are allocated among its share classes based upon the relative net assets of each class of shares. Dividends and distributions to shareholders: It is the policy of each Fund to declare dividends from net investment income daily and to pay such dividends monthly. Each Fund will distribute net realized capital gains (including net short-term capital gains) at least annually after the fiscal year in which the capital gains were earned, unless offset by any available capital loss carryforward. Income distributions and capital gain distributions on a Fund level are determined in accordance with federal income tax regulations which may differ from accounting principles generally accepted in the United States of America. Federal income tax: Each Fund intends to continue to qualify as a regulated investment company by complying with the applicable requirements of the Internal Revenue Code of 1986, as amended, and by distributing 214 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) substantially all of its earnings to its shareholders. Therefore, no provision is made for federal income or excise taxes. Expenses: General expenses of Funds Trust are allocated to the Funds based upon their relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund or class of shares are charged to such Fund or class. 2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS Funds Trust has entered into an investment advisory agreement (the "Investment Advisory Agreement") with Banc of America Advisors, LLC ("BA Advisors"), a wholly-owned subsidiary of Bank of America, N.A. ("Bank of America"), which in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a bank holding company organized as a Delaware corporation, pursuant to which BA Advisors provides investment advisory services to the Funds. Under the terms of the Investment Advisory Agreement, BA Advisors is entitled to receive an advisory fee, calculated daily and payable monthly, based on the following annual rates multiplied by the average daily net assets of each Fund:
ANNUAL RATE ----------- Short-Term Municipal Income................. 0.30% Intermediate Municipal Bond and nine single-state Intermediate Municipal Bond Funds..................................... 0.40% Municipal Income and three single-state Municipal Bond/Income Funds............... 0.50%
Funds Trust has entered into a sub-advisory agreement with BA Advisors and Banc of America Capital Management, LLC ("BACAP"), a wholly-owned subsidiary of Bank of America, pursuant to which BACAP is entitled to receive a sub-advisory fee from BA Advisors at the maximum annual rate of 0.07% of each Fund's average daily net assets. Stephens Inc. ("Stephens") and BA Advisors serve as co-administrators Funds Trust. Under the co-administration agreements, Stephens and BA Advisors are currently entitled to receive a combined fee, computed daily and paid monthly, at the maximum annual rate of 0.22% of each Fund's average daily net assets. The Bank of New York ("BNY") serves as sub-administrator of Funds Trust pursuant to agreements with BA Advisors. For the six months ended September 30, 2002, Stephens and BA Advisors earned 0.05% and 0.11%, respectively, of the Funds' average daily net assets for their co-administration services. BA Advisors, and/or the sub-adviser and/or Stephens may, from time to time, reduce their fees payable by each Fund. During the six months ended September 30, 2002 and until July 31, 2003, BA Advisors, and/or the sub-adviser and/or Stephens have agreed to reimburse expenses and/or waive fees to the extent that total expenses (excluding shareholder servicing and distribution fees), as a percentage of the respective Fund's average daily net assets, exceed the following annual rates:
ANNUAL RATE ----------- Short-Term Municipal Income................. 0.40% Intermediate Municipal Bond and nine single-state Intermediate Municipal Bond Funds..................................... 0.50% Municipal Income and three single-state Municipal Bond/Income Funds............... 0.60%
BA Advisors is entitled to recover from the Funds (except Kansas Municipal Income Fund) any fees waived or expenses reimbursed by BA Advisors during the three year period following such waiver or reimbursement, to the extent that such recovery would not cause the affected fund to exceed the expense limitations in effect at the time of recovery. At September 30, 2002, the amounts potentially recoverable by BA Advisors pursuant to this arrangement are as follows:
POTENTIAL AMOUNT TO RECOVER WITHIN 3 YEARS FUND AS OF 9/30/02 - ------------------------------------------------------------- Short-Term Municipal Income.......... $ 568,949 Intermediate Municipal Bond.......... 1,095,706 Municipal Income..................... 730,843 California Intermediate Municipal Bond............................... 51,016 California Municipal Bond............ 231,329 Florida Intermediate Municipal Bond............................... 220,105 Florida Municipal Bond............... 141,315 Georgia Intermediate Municipal Bond............................... 177,054 Maryland Intermediate Municipal Bond............................... 225,388 North Carolina Intermediate Municipal Bond............................... 218,592 South Carolina Intermediate Municipal Bond............................... 239,108 Tennessee Intermediate Municipal Bond............................... 89,401 Texas Intermediate Municipal Bond.... 255,563 Virginia Intermediate Municipal Bond............................... 295,137
BNY serves as the custodian of Funds Trust's assets. PFPC Inc. ("PFPC") serves as the transfer agent for the Funds' shares. Bank of America serves as the sub-transfer agent for the Primary A Shares of the Funds. For the six months ended September 30, 2002, Bank of 215 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) America earned approximately $19,845 for providing such services. Stephens serves as distributor of the Funds' shares. For the six months ended September 30, 2002, the Funds were informed that the distributor received the following:
FRONT END SALES CHARGE CONTINGENT DEFERRED SALES CHARGE (000) (000) --------- -------------------------------- FUND INVESTOR A INVESTOR A INVESTOR B INVESTOR C - ------------------------------------------------------------------------ Short-Term Municipal Income............. $ 98 $26 $-- $14 Intermediate Municipal Bond..... 6 5 1 1 Municipal Income..... 13 3 5 --* California Intermediate Municipal Bond..... 5 -- -- -- California Municipal Bond............... 100 --* 8 -- Florida Intermediate Municipal Bond..... 70 -- 1 --* Florida Municipal Bond............... 25 -- 2 -- Georgia Intermediate Municipal Bond..... 15 -- 4 --* Kansas Municipal Income............. 8 -- -- -- Maryland Intermediate Municipal Bond..... 29 -- 6 -- North Carolina Intermediate Municipal Bond..... 10 -- 7 -- South Carolina Intermediate Municipal Bond..... 73 --* 4 --* Tennessee Intermediate Municipal Bond..... 12 -- --* --* Texas Intermediate Municipal Bond..... -- -- 1 -- Virginia Intermediate Municipal Bond..... 49 -- 2 --
- --------------- *Amount represents less than $500. No officer, director or employee of Bank of America, BA Advisors or BACAP, or any affiliate thereof, receives any compensation from Funds Trust for serving as Trustee or Officer of Funds Trust. Funds Trust's eligible Trustees may participate in a non-qualified deferred compensation plan which may be terminated at any time. All benefits provided under this plan are unfunded and any payments to plan participants are paid solely out of the Funds' assets. Income earned on the plan participants' deferral account is based on the rate of return of the eligible mutual funds selected by the participants or, if no funds are selected, on the rate of return of Nations Treasury Reserves, another portfolio of Funds Trust. The expense for the deferred compensation plan is included in "Trustees' fees and expenses" in the Statements of operations. The liability for the deferred compensation plan is included in "Accrued Trustees' fees and expenses" in the Statement of net assets. Funds Trust previously offered a retirement plan to the Trustees, which was terminated on January 1, 2002. Funds Trust's eligible Trustees had the option of a rollover into the deferred compensation plan on January 1, 2002 or a lump sum distribution, including interest, on January 1, 2003. The liability for the retirement plan is included in "Accrued Trustees' fees and expenses" in the Statement of net assets. Certain Funds have made daily investments of cash balances in Nations Tax-Exempt Reserves, another portfolio of Funds Trust, pursuant to an exemptive order received from the Securities and Exchange Commission. The income earned by each Fund from such investments is included in its Statement of operations as "Dividend income from affiliated funds". A significant portion of each Fund's Primary A Shares represents investments by fiduciary accounts over which Bank of America has either sole or joint investment discretion. 3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS Funds Trust has adopted shareholder servicing plans and distribution plans for the Investor B and Investor C Shares of each Fund and a combined distribution and shareholder servicing plan for Investor A Shares of each Fund. The shareholder servicing plans permit the Funds to compensate or reimburse servicing agents for shareholder services provided by the servicing agents. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Funds to compensate or reimburse the distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes' shares. Payments are made at an annual rate, as a percentage of average daily net assets, set from time to time by the Boards of Trustees, and are charged as expenses of each Fund directly to the applicable class. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of Bank of America and BA Advisors. 216 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) For the six months ended September 30, 2002, the annual rates in effect and plan limits, as a percentage of average daily net assets, were as follows:
CURRENT PLAN RATE LIMIT --------------- Investor A Combined Distribution and Shareholder Servicing Plan............ 0.25%* 0.25% Investor B and Investor C Shareholder Servicing Plans....................... 0.25% 0.25% Investor B and Investor C Distribution Plans................................. 0.75% 0.75%
- --------------- *Short-Term Municipal Income pays its shareholder servicing fees under a separate shareholder servicing plan. 4. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, excluding long-term U.S. government securities and short-term investments, for the six months ended September 30, 2002 were as follows:
PURCHASES SALES (000) (000) -------------------- Short-Term Municipal Income....... $381,372 $ 25,340 Intermediate Municipal Bond....... 169,812 96,474 Municipal Income.................. 96,066 105,664 California Intermediate Municipal Bond............................ 5,371 7,464 California Municipal Bond......... 13,760 5,653 Florida Intermediate Municipal Bond............................ 35,261 16,600 Florida Municipal Bond............ 14,351 24,233 Georgia Intermediate Municipal Bond............................ 18,471 7,018 Kansas Municipal Income........... 15,156 16,903 Maryland Intermediate Municipal Bond............................ 23,185 19,051 North Carolina Intermediate Municipal Bond.................. 31,544 18,597 South Carolina Intermediate Municipal Bond.................. 34,539 21,810 Tennessee Intermediate Municipal Bond............................ 3,175 1,834 Texas Intermediate Municipal Bond............................ 34,443 38,536 Virginia Intermediate Municipal Bond............................ 34,093 11,139
There were no purchases and sales of long-term U.S. government securities for the six months ended September 30, 2002. 5. SHARES OF BENEFICIAL INTEREST As of September 30, 2002, an unlimited number of shares of beneficial interest without par value were authorized for Funds Trust. Funds Trust's Declaration of Trust authorizes the Boards of Trustees to classify or reclassify any authorized but unissued shares into one or more additional classes or series of shares. See Schedules of capital stock activity. 6. LINES OF CREDIT Funds Trust participates with other Nations Funds in a $1 billion uncommitted line of credit provided by BNY under a line of credit agreement (the "Agreement"). Advances under the Agreement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at a specified Federal Funds rate plus 0.50% on an annualized basis. Each participating Fund maintains a ratio of net assets (not including amounts borrowed pursuant to the Agreement) to the aggregate amount of indebtedness pursuant to the Agreement of no less than 4 to 1. At September 30, 2002, there were no loans outstanding under this Agreement. For the six months ended September 30, 2002, borrowings by the Funds under the Agreement were as follows:
AVERAGE AMOUNT AVERAGE OUTSTANDING INTEREST FUND (000) RATE - ------------------------------------------------------------ Municipal Income.................... $31 2.20% California Municipal Bond........... 2 2.30 Florida Municipal Bond.............. 1 2.25 Georgia Intermediate Municipal Bond.............................. 8 2.20 Kansas Municipal Income............. 4 2.23 Maryland Intermediate Municipal Bond.............................. --* 2.24 Texas Intermediate Municipal Bond... 3 2.31 Virginia Intermediate Municipal Bond.............................. 11 2.27
- --------------- *Amount represents less than $500. The average amount outstanding was calculated based on daily balances in the period. 217 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 7. INCOME TAXES Information on the tax components of capital as of September 30, 2002 is as follows:
NET TAX UNREALIZED COST OF APPRECIATION/ INVESTMENTS GROSS TAX GROSS TAX (DEPRECIATION) FOR TAX UNREALIZED UNREALIZED ON PURPOSES APPRECIATION DEPRECIATION INVESTMENTS FUND (000) (000) (000) (000) - ------------------------------------------------------------------------------------------------------------------------ Short-Term Municipal Income................................. $ 901,066 $ 16,105 $ (797) $ 15,308 Intermediate Municipal Bond................................. 1,873,422 125,279 (8,537) 116,742 Municipal Income............................................ 814,202 79,286 (12,474) 66,812 California Intermediate Municipal Bond...................... 121,080 9,670 -- 9,670 California Municipal Bond................................... 323,659 32,398 --* 32,398 Florida Intermediate Municipal Bond......................... 235,879 15,441 (1,116) 14,325 Florida Municipal Bond...................................... 117,536 13,883 -- 13,883 Georgia Intermediate Municipal Bond......................... 180,314 12,271 (1,005) 11,266 Kansas Municipal Income..................................... 92,225 7,556 (702) 6,854 Maryland Intermediate Municipal Bond........................ 229,436 18,734 (771) 17,963 North Carolina Intermediate Municipal Bond.................. 221,793 18,025 -- 18,025 South Carolina Intermediate Municipal Bond.................. 256,164 19,112 (901) 18,211 Tennessee Intermediate Municipal Bond....................... 59,524 4,452 (25) 4,427 Texas Intermediate Municipal Bond........................... 259,363 21,055 (60) 20,995 Virginia Intermediate Municipal Bond........................ 332,953 24,974 (784) 24,190
- --------------- *Amount represents less than $500. At March 31, 2002, the following Funds had available for federal income tax purposes unused capital losses as follows:
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING IN 2004 IN 2005 IN 2008 IN 2009 IN 2010 FUND (000) (000) (000) (000) (000) - ------------------------------------------------------------------------------------------------------------------ Short-Term Municipal Income................................. $ 25 -- -- $ 360 $15 Municipal Income............................................ -- -- $502 734 -- Florida Intermediate Municipal Bond......................... 285 $22 717 24 -- Georgia Intermediate Municipal Bond......................... -- -- 516 608 58 Maryland Intermediate Municipal Bond........................ -- -- -- 643 -- North Carolina Intermediate Municipal Bond.................. -- -- -- 1,463 -- South Carolina Intermediate Municipal Bond.................. -- -- -- 239 -- Tennessee Intermediate Municipal Bond....................... -- -- 315 44 -- Texas Intermediate Municipal Bond........................... -- -- 338 3,460 -- Virginia Intermediate Municipal Bond........................ -- -- -- 1,032 --
During the year ended March 31, 2002, the following Funds utilized capital losses as follows:
CAPITAL LOSSES UTILIZED FUND (000) - ---------------------------------------------------------- Intermediate Municipal Bond............... $2,772 Municipal Income.......................... 900 Florida Intermediate Municipal Bond....... 213 Maryland Intermediate Municipal Bond...... 744 North Carolina Intermediate Municipal Bond.................................... 415 South Carolina Intermediate Municipal Bond.................................... 315 Texas Intermediate Municipal Bond......... 698 Virginia Intermediate Municipal Bond...... 1,153
Under the current tax law, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended March 31, 2002, the following Funds elected to defer losses occurring between November 1, 2001 and March 31, 2002 under these rules, as follows:
CAPITAL LOSSES DEFERRED FUND (000) - ---------------------------------------------------------- Short-Term Municipal Income............... $13 California Municipal Bond................. 74
Such deferred losses will be treated as arising on the first day of the fiscal year ending March 31, 2003. 218 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 8. REORGANIZATIONS FUND REORGANIZATION On May 10, 2002, certain Funds, as listed below (each an "Acquiring Fund"), acquired the assets and assumed the liabilities of certain Funds listed below (each an "Acquired Fund"), in a tax-free reorganization in exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired Fund's shareholders. The number and value of shares issued by the Acquiring Fund are presented in the Schedules of capital stock activity. Net assets and unrealized appreciation/(depreciation) as of the reorganization date were as follows:
TOTAL NET ASSETS ACQUIRED FUND TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND UNREALIZED OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION APPRECIATION ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000) - --------------------------------------------------------------------------------------------------------------------- Georgia Intermediate Georgia Municipal Bond Municipal Bond $23,940 $153,547 $177,487 $1,033 Maryland Intermediate Maryland Municipal Bond Municipal Bond 39,141 203,873 243,014 2,176 North Carolina Intermediate North Carolina Municipal Bond Municipal Bond 41,805 198,749 240,554 2,158 South Carolina Intermediate South Carolina Municipal Bond Municipal Bond 25,594 240,434 266,028 1,515 Tennessee Intermediate Tennessee Municipal Bond Municipal Bond 8,813 53,262 62,075 411 Texas Intermediate Texas Municipal Bond Municipal Bond 12,262 275,678 287,940 906 Virginia Intermediate Virginia Municipal Bond Municipal Bond 32,767 297,423 330,190 1,288
CHANGE OF REGISTERED INVESTMENT COMPANY On May 10, 2002, each fund listed in the left column below (each a "Fund") reorganized into a newly created successor fund listed in the right column below, that is substantially identical to the existing Fund. The acquisition was accomplished by a tax-free exchange of shares of each Fund for shares of equal value of the newly created successor fund. The financial statements of the successor funds reflect the historical financial results of the Fund prior to the reorganization.
FUND REORGANIZED INTO A NEWLY CREATED SUCCESSOR FUND - ------------------------------------------------------------------------------------------------------------- Georgia Intermediate Municipal Bond Georgia Intermediate Municipal Bond Maryland Intermediate Municipal Bond Maryland Intermediate Municipal Bond North Carolina Intermediate Municipal Bond North Carolina Intermediate Municipal Bond South Carolina Intermediate Municipal Bond South Carolina Intermediate Municipal Bond Tennessee Intermediate Municipal Bond Tennessee Intermediate Municipal Bond Texas Intermediate Municipal Bond Texas Intermediate Municipal Bond Virginia Intermediate Municipal Bond Virginia Intermediate Municipal Bond Short-Term Municipal Income Short-Term Municipal Income Intermediate Municipal Bond Intermediate Municipal Bond Municipal Income Municipal Income Florida Intermediate Municipal Bond Florida Intermediate Municipal Bond Florida Municipal Bond Florida Municipal Bond
On May 17, 2002, the California Municipal Bond Fund (the "Fund") reorganized into a newly created successor fund that is substantially identical to the existing Fund. The acquisition was accomplished by a tax-free exchange of shares of 219 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) the Fund for shares of equal value of the newly created successor fund. The financial statements of the successor fund reflect the historical financial results of the Fund prior to the reorganization. CONVERSION OF COMMON TRUST FUNDS On August 16, 2002, certain Funds, as listed below (each an "Acquiring Fund"), acquired the net assets of certain common trust funds, managed by Bank of America, also listed below (each an "Acquired Fund"), in a tax-free exchange for shares of the Acquiring Fund. The number and value of shares issued by the Acquiring Fund are presented in the Schedules of capital stock activity. Net assets and unrealized appreciation as of the conversion date were as follows:
TOTAL NET ASSETS OF ACQUIRED FUND TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND UNREALIZED ACQUIRED FUND ACQUIRING FUND AFTER CONVERSION APPRECIATION ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000) - ----------------------------------------------------------------------------------------------------------------------------- Intermediate Bank of America Oregon Municipal Bond Tax-Exempt Income Fund $11,110 $1,264,040 $1,275,150 $ 586 Intermediate Bank of America Arizona Municipal Bond Tax-Exempt Fund 31,309 1,264,040 1,295,349 1,410 Bank of America National Intermediate Intermediate Tax-Exempt Municipal Bond Bond Fund 367,794 1,264,040 1,631,834 17,039 Bank of America National Intermediate Short-Intermediate Municipal Bond Tax-Exempt Fund 297,125 1,264,040 1,561,165 15,339 California Bank of America Shorter- Intermediate Term California Municipal Bond Tax-Exempt Fund 130,380 0 130,380 7,518 Bank of America Longer- California Term California Municipal Bond Tax-Exempt Fund 122,576 229,347 351,923 8,475
9. SUBSEQUENT EVENT On October 8, 2002, the Board of Trustees of each Fund approved the replacement of Stephens with BA Advisors as the exclusive distributor of the shares of the Funds. In addition, on November 21, 2002, the Board of Trustees approved the termination of Stephens as the co-administrator with BA Advisors (which will result in BA Advisors being the sole administrator to the Funds) and approved the assumption by BACAP of BA Advisors' role as the primary investment adviser to the Funds. The transition in service providers is expected to occur on or about January 1, 2003. It is also anticipated that BA Advisors will change its name to BACAP Distributors, LLC on or about January 1, 2003. 220 [This page intentionally left blank.] THE NATIONS FUNDS FAMILY OF FUNDS Within each category, the funds are listed from aggressive to conservative. Lower risk/reward potential SPECIALTY FUNDS INDEX FUNDS Nations SmallCap Index Fund Nations MidCap Index Fund Nations LargeCap Index Fund Nations Managed Index Fund ASSET ALLOCATION PORTFOLIOS Nations LifeGoal Growth Portfolio Nations LifeGoal Balanced Growth Portfolio Nations LifeGoal Income and Growth Portfolio OTHER SPECIALTIES Nations Financial Services Fund Nations Convertible Securities Fund MONEY MARKET FUNDS Nations Cash Reserves Nations Money Market Reserves Nations Government Reserves Nations Treasury Reserves Nations Tax-Exempt Reserves Nations Municipal Reserves Nations California Tax-Exempt Reserves Nations New York Tax-Exempt Reserves FIXED INCOME FUNDS TAXABLE INCOME FUNDS Nations High Yield Bond Fund Nations Strategic Income Fund Nations Bond Fund Nations Intermediate Bond Fund Nations Government Securities Fund Nations Short-Intermediate Government Fund Nations Short-Term Income Fund TAX-EXEMPT INCOME FUNDS Nations Municipal Income Fund Nations State-Specific Long-Term Municipal Bond Funds (CA, FL) Nations Intermediate Municipal Bond Fund Nations State-Specific Intermediate Municipal Bond Funds (CA, FL, GA, KS, MD, NC, SC, TN, TX, VA) Nations Short-Term Municipal Income Fund STOCK FUNDS GROWTH FUNDS Nations Small Company Fund Nations Marsico 21st Century Fund Nations MidCap Growth Fund Nations Marsico Focused Equities Fund Nations Marsico Growth Fund Nations Capital Growth Fund Nations Strategic Growth Fund BLEND FUNDS Nations Asset Allocation Fund VALUE FUNDS Nations SmallCap Value Fund Nations MidCap Value Fund Nations Value Fund Nations LargeCap Value Fund Nations Classic Value Fund Higher reward/risk potential INTERNATIONAL/GLOBAL FUNDS Nations Emerging Markets Fund Nations Marsico International Opportunities Fund Nations International Equity Fund Nations International Value Fund* Nations Global Value Fund *As of June 3, 2002, Nations International Value Fund was closed to new or additional investments except in limited circumstances. Please refer to the Fund's most recent prospectus for more information. MUNISAR (9/02) -----END PRIVACY-ENHANCED MESSAGE-----