N-30D 1 g68299n-30d.txt MUNI FUNDS 1 [GRAPHIC: PHOTO OF TRAFFIC CLOVERLEAF] Nations Short-Term Municipal Income Fund Nations Intermediate Municipal Bond Fund Nations Municipal Income Fund Nations CA Municipal Bond Fund Nations FL Intermediate Municipal Bond Fund Nations FL Municipal Bond Fund Nations GA Intermediate Municipal Bond Fund Nations GA Municipal Bond Fund Nations KS Municipal Income Fund Nations MD Intermediate Municipal Bond Fund Nations MD Municipal Bond Fund Nations NC Intermediate Municipal Bond Fund Nations NC Municipal Bond Fund Nations SC Intermediate Municipal Bond Fund Nations SC Municipal Bond Fund Nations TN Intermediate Municipal Bond Fund Nations TN Municipal Bond Fund Nations TX Intermediate Municipal Bond Fund Nations TX Municipal Bond Fund Nations VA Intermediate Municipal Bond Fund Nations VA Municipal Bond Fund MUNICIPAL BOND FUNDS ANNUAL REPORT FOR THE YEAR ENDED MARCH 31, 2001 [NATIONS FUNDS LOGO] 2 This Report is submitted for the general information of shareholders of Nations Funds. This material must be preceded or accompanied by a current Nations Funds prospectus. Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of America N.A., is not a bank, and securities offered by it are not guaranteed by any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC. Nations Funds Investment adviser: Banc of America Advisors, Inc. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE 3 PRESIDENTS' MESSAGE Dear Shareholder: The 12-month period ending March 31, 2001 marked one of the most difficult periods for investors in recent memory. As an investor, you've probably asked yourself many times over "When will it end?" The U.S. stock market has taken investors on a very wild ride during the past year and, more so, during the first quarter of 2001. After reaching all-time highs in early 2000, each of the three major stock market indexes -- the Dow Jones Industrial Average, Standard & Poor's 500 Composite Stock Price Index (S&P 500) and Nasdaq Composite Index (Nasdaq)(1) -- all ended the year 2000 in negative territory. To make matters worse, after some modest gains in January 2001, each of these indexes declined to levels not seen since 1998. It was the first time in a long time that both the S&P 500 and Nasdaq entered bear market territory -- defined by a loss of more than 20% from an index's 52-week high. International stock markets also felt the impact of the U.S. economic slowdown. The year 2000 marked the first time since 1992 that international stocks -- represented by the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index(2) -- finished the year in the minus column, down 14%. Bond investors were the only group to have anything to cheer about, as bonds -- represented by the Lehman Aggregate Bond Index(3) -- ended 2000 ahead of the S&P 500 by more than 20%. Not only that, it was the first time in a decade that bonds outperformed stocks. Now more than ever we need to be reminded of the fact that investing generally is a long-term proposition -- one that requires patience and perseverance during volatile times. With that long-term view in mind, here are some points to note. DOWNTURNS CAN ALSO EQUAL OPPORTUNITY While many stocks were flying high in 1999 and 2000, especially in the technology sector, several Wall Street experts were warning that many of these stocks were overvalued. This warning has now come to fruition, as many of these high-flying growth stocks of yesterday now appear to be today's value opportunities. We've always been told to "buy low" and now may be a good opportunity to buy some of the most widely regarded companies in corporate America at a discount. DIVERSIFICATION IS KEY A carefully selected portfolio of stocks, bonds and money market instruments is a sensible way to reduce some of the risk associated with investing. Since different investments respond differently to the same economic conditions, we believe it makes even more sense to maintain a diversified portfolio through uncertain times. It's times like these that can prove the effectiveness of asset allocation. (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 index consisting 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. All indexes are unmanaged and unavailable for investment. (2)The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged, capitalization-weighted index consisting of securities listed on exchanges in European, Australasian and Far Eastern markets. It is unavailable for investment. (3)The Lehman Aggregate Bond Index is an unmanaged index composed of the Government/Corporate Bond Index, the Asset-Backed Securities Index and the Mortgage-Backed Securities Index, and includes U.S. Treasury issues, agency issues, corporate bond issues and mortgage-backed issues. It includes reinvestment of dividends and is unavailable for investment. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 4 PRESIDENTS' MESSAGE CONTINUED... BRIGHTER DAYS MAY BE AHEAD The U.S. economy has been slowing down and we think it will continue to do so for the near future. In addition, the markets will continue to be rocked by reports of lower corporate earnings. However, the Federal Reserve Board has done its part in aiding the economy by reducing interest rates aggressively this year. The markets react to this sort of news almost instantly, but it's important to note that rate cuts take time to have a lasting effect on the economy -- some times up to four quarters before any real impact can be measured. Please read through your report to see what your Managers of Distinction have to say about the markets, the economy and how your investment in Nation Funds has fared over the past 12 months. We encourage you to then have a conversation with your investment professional to discuss how you can take advantage of the current market environment as it relates to your long-term investment goals. We remain committed to providing you with world-class investment management and competitive products to help you reach your long-term goals. Should you have any questions or comments on your annual report, please contact your investment professional or call us at 1.800.321.7854. You can also visit us online at www.nations-funds.com. Thank you for being a part of the Nations Funds family. Sincerely, /s/ A. Max Walker A. MAX WALKER PRESIDENT AND CHAIRMAN OF THE BOARD NATIONS FUNDS /S/ ROBERT H. GORDON ROBERT H. GORDON PRESIDENT BANC OF AMERICA ADVISORS, INC. March 31, 2001 5 TABLE OF CONTENTS ECONOMIC OVERVIEW 3 MUNICIPAL BOND MARKET OVERVIEW 5 PORTFOLIO COMMENTARY Nations Short-Term Municipal Income Fund 6 Nations Intermediate Municipal Bond Fund 10 Nations Municipal Income Fund 14 Nations CA Municipal Bond Fund 18 Nations FL Intermediate Municipal Bond Fund 23 Nations FL Municipal Bond Fund 27 Nations GA Intermediate Municipal Bond Fund 31 Nations GA Municipal Bond Fund 36 Nations KS Municipal Income Fund 41 Nations MD Intermediate Municipal Bond Fund 45 Nations MD Municipal Bond Fund 49 Nations NC Intermediate Municipal Bond Fund 53 Nations NC Municipal Bond Fund 57 Nations SC Intermediate Municipal Bond Fund 61 Nations SC Municipal Bond Fund 66 Nations TN Intermediate Municipal Bond Fund 71 Nations TN Municipal Bond Fund 75 Nations TX Intermediate Municipal Bond Fund 79 Nations TX Municipal Bond Fund 83 Nations VA Intermediate Municipal Bond Fund 87 Nations VA Municipal Bond Fund 91 FINANCIAL STATEMENTS Statements of net assets 95 Statements of operations 228 Statements of changes in net assets 232 Schedules of capital stock activity 240 Financial highlights 262 Notes to financial statements 304
------------------------------------------------------------------------------ NATIONS FUNDS RECOGNIZED FOR [DALBAR LOGO] OUTSTANDING INTERMEDIARY AND DALBAR, Inc. is a well-respected SHAREHOLDER SERVICE research firm that measures customer service levels and IN RECOGNITION OF ITS COMMITMENT TO establishes benchmarks in the PROVIDE INVESTMENT PROFESSIONALS financial services industry. AND SHAREHOLDERS WITH THE HIGHEST LEVEL OF SERVICE IN THE MUTUAL FUND INDUSTRY, NATIONS FUNDS RECEIVED BOTH THE DALBAR INTERMEDIARY SERVICE AWARD AND MUTUAL FUND SERVICE AWARD IN 2000. ------------------------------------------------------------------------------
6 (This page intentionally left blank) 7 ECONOMIC OVERVIEW BANC OF AMERICA CAPITAL MANAGEMENT* THE YEAR IN REVIEW The U.S. economy slowed dramatically in the year ended March 31, 2001, which weighed heavily on corporate profit performance and stock prices. The pendulum in the equity market swung from euphoria to pessimism, with hard-hit technology stocks responsible for much of the pull. Conversely, the fixed-income market recorded impressive gains, as weary investors scrambled for the security and liquidity of bonds. The stock market's performance during the past year was hardly uniform. The Standard & Poor's 500 Composite Stock Price Index** suffered a 22% loss in total return over the 12-month period, while the tech-heavy Nasdaq Composite Index*** plummeted 60%. Value strategies generally trumped growth approaches, reversing the trend of the past four years and highlighting the importance of diversification. While the broad market suffered a setback over the past year, investors achieved double-digit rates of return in several sectors, including utilities, transportation, consumer staples, health care and financial services. The energy sector also yielded a positive return. Joining the technology sector in the red were basic materials, capital goods, consumer cyclicals and communications. Fixed-income products provided a safe haven for investors, as slowing economic activity, interest-rate cuts by the Federal Reserve Board, and a strong U.S. dollar drove bond prices higher. Both U.S. Treasury securities and corporate bonds delivered double-digit returns to their holders in the 12 months ending March 31, 2001. The performance of the U.S. economy provided the backdrop for this rapid change in market sentiment. U.S. real GDP (gross domestic product) growth skidded from an explosive 8% at the end of 1999 to a mere 1% at the close of 2000. Three primary forces caused the slowdown: the Fed's aggressive tightening of interest rates to contain inflationary pressures; a sharp run-up in energy prices; and a rapid response by companies to control inventories amidst slowing consumer demand. As 2001 began, companies started to pare back earnings expectations, leaving investors questioning when a turning point might appear. The abrupt slowdown in the economy caught everyone, even the Federal Reserve, by surprise. To arrest a possible slide into recession, U.S. monetary policymakers slashed interest rates by a full 150 basis points -- or one and one-half percent -- in the first quarter of 2001.+ Other interest rates had already started to fall in anticipation of these reductions and in response to weaker growth. The yield on 10- *Banc of America Capital Management is the investment management group of Bank of America, N.A. and includes Banc of America Capital Management, Inc., investment sub-adviser to many Nations Funds, and other non-bank affiliates of Bank of America. **The Standard & Poor's 500 Composite Stock Price Index is a market-capitalization weighted index that measures the market value of 400 industrial stocks, 60 transportation and utility company stocks and 40 financial issues. It is unmanaged and unavailable for investment. ***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. It is unmanaged and unavailable for investment. +Since March 31, 2001, the Federal Reserve Board reduced the Federal Funds rate by 1.00%. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 3 8 ECONOMIC OVERVIEW CONTINUED... year Treasury notes plummeted to less than 5.00% in March 2001 from around 6.25% a year earlier. The tight linkages among various countries and the dominance of U.S. multinational companies have caused the effects of the U.S. economic slowdown to be felt worldwide. The capital markets in Asia, Europe and Latin America have all reflected the weakening demand from U.S. consumers and businesses. The world has managed to escape a global economic crisis during the past year, however, despite a major devaluation by Turkey, a recession in Argentina and growing weakness in Japan. Meanwhile, the ongoing strength of the U.S. dollar has reflected global investors' confidence in the long-term prospects of the U.S. economy. THE YEAR AHEAD As the second quarter of 2001 began, questions persisted as to whether the U.S. economy was headed for recession. While the manufacturing sector experienced a severe decline, with weakness spreading to other areas, housing remained strong and auto sales have performed better than expected. Some of the key forces causing the economic weakness have also, at least partially, reversed course. Monetary policy has shifted to an active easing, crude oil and natural gas prices have receded from their highs, and the inventory correction is well underway. While it appears that a recession may still be avoided, significant risks persist. Concerns about the job market could cause consumers to be more frugal; companies could make aggressive cuts in capital spending or global weakness could intensify. Nevertheless, in our view, the U.S. economy should be able to recover by the end of 2001. Look for inflation to remain relatively subdued, which will be welcome news for investors. Although the current slowdown may temper near-term productivity performance, we believe longer-term trends will remain favorable. U.S. economic policy should work to help restore better growth rates. The Federal Reserve Board can be expected to reduce interest rates until the economy shows clear signs of stabilizing. Proposed tax cuts should provide some relief to consumers and businesses. We anticipate corporate profit numbers to be extremely weak in the first half of 2001, but look forward to better numbers late in the year and into 2002. The stock market may begin to reflect better expectations well before they actually materialize. On balance, the transition of a $10 trillion U.S. economy from a track of extremely rapid to more sustainable growth has been treacherous. However, we look for better news to unfold over the next 12 months. Investors who are diversified and retain a long-term investment horizon may find a number of rewarding opportunities in the coming year. LYNN REASER, PH.D. CHIEF ECONOMIST AND SENIOR MARKET STRATEGIST BANC OF AMERICA CAPITAL MANAGEMENT March 31, 2001 4 9 MUNICIPAL BOND MARKET OVERVIEW The municipal bond market posted exceptional returns over the 12-month period ended March 31, 2001, returning 10.92% as measured by the Lehman 10-Year Municipal Bond Index*. On a taxable-equivalent basis, municipal securities as an asset class outperformed many equity benchmarks and all major taxable fixed income asset classes for the one and three-year time periods. The municipal market over the past 12-months can best be described as a tale of two markets. The first of the two markets included general obligation, essential service and insured bonds. This market was characterized by decreasing credit spreads, rating upgrades, high demand and low volatility. The second of the two markets included uninsured hospitals, industrial revenue bonds, housing bonds and resource recovery bonds. This market was characterized by widening credit spreads, rating downgrades, very little market performance and virtually no demand resulting in very low liquidity. Investors who added higher-income securities, or those from the second market, to their portfolios last year paid the price this year as those securities were generally among the worst performing municipal securities for most of 2000. In the first quarter of 2001, hospital, industrial revenue and resource recovery bonds led the way in terms of performance as the low absolute level of interest rates forced many yield conscious investors to once again focus on the less favored portions of the municipal market. Demand for municipals outpaced supply for the last three quarters of 2000 as many retail investors sought higher-quality bonds with good structure. Credit upgrades have been largely concentrated in the essential service, education and transportation sectors, while the hospital sector continues to experience a higher proportion of downgrades. Through the first quarter of 2001, the supply of municipal bonds has been especially heavy as issuers seek to take advantage of the low absolute level of interest rates. As the market continues into 2001, demand for municipals should remain relatively strong from crossover buyers who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include the slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues. MUNICIPAL FIXED INCOME MANAGEMENT TEAM BANC OF AMERICA CAPITAL MANAGEMENT, INC. March 31, 2001 *The Lehman 10-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment-grade bonds with maturities of 9 to 12 years. It is unavailable for investment. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 5 10 NATIONS SHORT-TERM MUNICIPAL INCOME FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS SHORT-TERM MUNICIPAL INCOME FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, we aim to limit The Fund seeks high current income the Fund's exposure to any single credit or market sector. exempt from federal income tax In addition, we use a combination of investment strategies, consistent with minimal including duration management (managing the Fund's fluctuation of principal. sensitivity to interest rates), market sector selection and PERFORMANCE REVIEW individual credit reviews. We also seek to limit the For the 12-month period ended distribution of capital gains when appropriate. As a March 31, 2001, Nations Short-Term short-term portfolio, the Fund seeks to maintain an average Municipal Income Fund Investor A dollar-weighted maturity of less than three years and a Shares provided shareholders with duration between one and one-quarter and two and a total return of 6.34%.** three-quarters years. PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** With a total return of 6.34%, Nations Short-Term Municipal Income Fund (Investor A Shares) outperformed its peer group, the Lipper Short Municipal Debt Funds Average, which returned 6.00% for the 12-month period ended March 31, 2001. The Fund benefited from an overweight in higher yield revenue bonds and comparable duration stance relative to its peers in a declining rate environment. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Over the next 12 months, the more traditional sectors in the municipal bond market may come under financial strain, as the downturn in the domestic economy puts stress on state and local government's financial resources. While we do not anticipate a recession, even a "soft landing" can be detrimental to certain parts of the country. State and local governments are likely to have trouble adapting to
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 1.00%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds included in the Lipper Short Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of less than three years. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 6 11 NATIONS SHORT-TERM MUNICIPAL INCOME FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued fewer financial resources and increasing infrastructure needs. This combination is likely to have an impact on the creditworthiness of the asset class. Last year's slightly inverted and/or flat yield curve reversed itself as the Federal Reserve Board began to cut short-term interest rates in January 2001. Bonds with maturities of 10 years or less have dropped dramatically while longer term bonds have declined only modestly, thus producing a normal (i.e., positive), steeper yield curve. A steeper yield curve is generally a precursor to a rising interest rate environment. The municipal bond market may also face the potential for lower tax rates as the Bush administration seeks to reduce income tax rates. The full impact of a tax cut is likely to be somewhat muted, as it is most certain to be phased in over a period of time. However, lower marginal tax rates do diminish the value of tax-exempt income over time. While municipal securities generally provide attractive returns over time with low volatility, the near-term may prove to be challenging. High levels of supply, deteriorating credit conditions, and declining tax rates may be difficult for the market to handle.
7 12 NATIONS SHORT-TERM MUNICIPAL INCOME FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Hospital 15.00 General obligation 21.00 Other 10.90 Industrial development revenue/Pollution control revenue 26.30 Prerefunded 9.70 Housing 4.90 Transportation 4.10 Capital improvement 3.30 Education 2.50 Electric 2.30
TOP 10 HOLDINGS ------------------------------------------------- 1 Wake County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Carolina Power and Light Project) Series 1994A, 3.500% 05/01/24 3.7% ------------------------------------------------- 2 Pinellas County, Florida, Capital Improvement Revenue, Series 2000, 4.500% 01/01/06 3.3% ------------------------------------------------- 3 Atlanta, Georgia, Urban Residential Finance Authority, College Facilities Revenue, (Morris Brown College Project) Series 1991, Prerefunded 12/01/01 @ 103, 9.500% 12/01/11 2.8% ------------------------------------------------- 4 Baileyville, Maine, PCR, (Georgia-Pacific Corporation Project) Series 1998, 4.750% 06/01/05 2.7% ------------------------------------------------- 5 Ohio, Housing Financing Agency, Mortgage Revenue, Series 2000D, AMT, (GNMA COLL), 4.800% 09/01/02 2.6% ------------------------------------------------- 6 Richmond, Virginia, GO, Series 2000, (FSA Insured), 5.125% 01/15/04 2.6% ------------------------------------------------- 7 Glendale, Arizona, Water and Sewer Revenue, Series 2000, (FGIC Insured), 4.750% 07/01/02 2.3% ------------------------------------------------- 8 Richland County, South Carolina, PCR Refunding, (Union Camp Corporation Project) Series 1992C, 5.875% 11/01/02 2.3% ------------------------------------------------- 9 Calcasieu Parish, Lousiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06 2.2% ------------------------------------------------- 10 Richardson, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 5.000% 02/15/03 2.2% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 8 13 NATIONS SHORT-TERM MUNICIPAL INCOME FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (11/2/93 through 3/31/01) 4.31% 4.17%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Short-Term Municipal Income Fund from the inception of the share class. The Lehman 3-Year Municipal Bond Index is a broad- based, unmanaged, total return index composed of investment grade bonds with maturities of 2 to 3 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS SHORT-TERM MUNICIPAL LEHMAN 3-YEAR MUNICIPAL BOND INCOME FUND $13,532 INDEX $14,253 ---------------------------- ---------------------------- Nov. 2 1993 9900.00 10000.00 1993 10005.00 10092.00 9910.00 9957.00 9967.00 10065.00 10051.00 10160.00 1994 10032.00 10161.00 10319.00 10445.00 10535.00 10667.00 10664.00 10894.00 1995 10840.00 11062.00 10888.00 11124.00 10959.00 11214.00 11109.00 11362.00 1996 11271.00 11554.00 11319.00 11600.00 11471.00 11815.00 11644.00 12017.00 1997 11783.00 12187.00 11899.00 12313.00 12018.00 12452.00 12198.00 12699.00 1998 12317.00 12822.00 12435.00 12964.00 12457.00 12908.00 12528.00 13036.00 1999 12601.00 13074.00 12727.00 13205.00 12871.00 13388.00 13058.00 13604.00 2000 13276.00 13888.00 Mar. 31 2001 13532.00 14253.00
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS SHORT-TERM MUNICIPAL LEHMAN 3-YEAR MUNICIPAL BOND INCOME FUND $13,668 INDEX $14,253 ---------------------------- ---------------------------- Nov. 2 1993 10000.00 10000.00 1993 10106.00 10092.00 10010.00 9957.00 10068.00 10065.00 10153.00 10160.00 1994 10133.00 10161.00 10423.00 10445.00 10641.00 10667.00 10772.00 10894.00 1995 10950.00 11062.00 10998.00 11124.00 11069.00 11214.00 11221.00 11362.00 1996 11385.00 11554.00 11434.00 11600.00 11587.00 11815.00 11762.00 12017.00 1997 11902.00 12187.00 12020.00 12313.00 12140.00 12452.00 12321.00 12699.00 1998 12441.00 12822.00 12561.00 12964.00 12584.00 12908.00 12655.00 13036.00 1999 12729.00 13074.00 12856.00 13205.00 12999.00 13388.00 13188.00 13604.00 2000 13409.00 13888.00 Mar. 31 2001 13668.00 14253.00
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 10/7/93 11/2/93 10/12/93 5/19/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 6.61% 6.34% 5.28% 5.56% 0.56% 5.55% 4.55% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.62% 4.38% 4.04% 3.96% 3.02% 3.79% 3.79% 5 YEARS 4.67% 4.45% 4.24% 4.12% 3.78% 4.03% 4.03% SINCE INCEPTION 4.48% 4.31% 4.17% 3.99% 3.99% 4.27% 4.27%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 1.00%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 9 14 NATIONS INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk, and lower quality, investment sub-adviser to the Fund. grade issues for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, we aim to limit The Fund seeks high current income the Fund's exposure to any single credit or market sector. exempt from federal income tax In addition, we use a combination of investment strategies, consistent with moderate including duration management (managing the Fund's fluctuation of principal. sensitivity to interest rates), market sector selection and PERFORMANCE REVIEW individual credit reviews. We also seek to limit the For the 12-month period ended distribution of capital gains when appropriate. As an March 31, 2001, Nations intermediate-term portfolio, the Fund seeks to maintain an Intermediate Municipal Bond Fund average dollar-weighted maturity of between three and ten Investor A Shares provided years and a duration between three and six years. shareholders with a total return PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** of 8.54%.** With a total return of 8.54%, Nations Intermediate Municipal Bond Fund (Investor A Shares) underperformed its peer group, the Lipper Intermediate Municipal Debt Funds Average, which returned 9.03% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group, which was offset by an overweighting in health care and industrial revenue issues which underperformed. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Over the next 12 months, the more traditional sectors in the municipal bond market may come under financial strain, as the downturn in the domestic economy puts stress on state and local government's financial resources. While we do not anticipate a recession, even a "soft landing" can be detrimental to certain parts of the country. State and local governments are likely to have trouble adapting to
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchase of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 10 15 NATIONS INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued fewer financial resources and increasing infrastructure needs. This combination is likely to have an impact on the creditworthiness of the asset class. Last year's slightly inverted and/or flat yield curve reversed itself as the Federal Reserve Board began to cut short-term interest rates in January 2001. Bonds with maturities of 10 years or less have dropped dramatically while longer term bonds have declined only modestly, thus producing a normal (i.e., positive), steeper yield curve. A steeper yield curve is generally a precursor to a rising interest rate environment. The municipal bond market may also face the potential for lower tax rates as the Bush administration seeks to reduce income tax rates. The full impact of a tax cut is likely to be somewhat muted as it is most certain to be phased in over a period of time. However, lower marginal tax rates do diminish the value of tax-exempt income over time. While municipal securities generally provide attractive returns over time with low volatility, the near term may prove to be challenging. High levels of supply, deteriorating credit conditions, and declining tax rates may be difficult for the market to handle.
11 16 NATIONS INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] General obligation 33.20 Other 11.50 Hospital 9.70 Industrial development revenue/Pollution control revenue 8.40 Prerefunded 7.20 Electric 6.80 Transportation 6.50 Water 5.70 Student loan 5.60 Housing 5.40
TOP 10 HOLDINGS ------------------------------------------------- 1 Illinois State, Sales Tax Revenue Refunding, Series 1993S, 6.000% 06/15/03 1.1% ------------------------------------------------- 2 Massachusetts State, GO Refunding, Series 1993C, (AMBAC Insured), 4.950% 08/01/05 1.0% ------------------------------------------------- 3 Chicago, Illinois, Park District, GO, Series 1995, 6.600% 11/15/14 0.9% ------------------------------------------------- 4 Education Loans Inc., South Dakota, Student Loan Revenue, Series 1998, AMT, (GTD STD LNS), 4.950% 06/01/10 0.9% ------------------------------------------------- 5 Arkansas State, GO, Series 2000A, 5.500% 08/01/11 0.9% ------------------------------------------------- 6 Texas State, Water Development GO, Series 1997D, 5.000% 08/01/19 0.9% ------------------------------------------------- 7 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 0.9% ------------------------------------------------- 8 Washington State, GO Refunding, Series 1993R-93B, 5.125% 10/01/04 0.9% ------------------------------------------------- 9 Iowa, Student Loan Liquidity Corporation, Student Loan Revenue, (Iowa College Student Aid Project) Series 1997B, AMT, 4.900% 12/01/05 0.9% ------------------------------------------------- 10 Pennsylvania State, GO, Series 2001, 5.125% 01/15/16 0.8% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 12 17 NATIONS INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (8/17/93 through 3/31/01) 4.82% 4.36%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad- based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS INTERMEDIATE MUNICIPAL LEHMAN 7-YEAR MUNICIPAL BOND BOND FUND $13,847 INDEX $15,431 ------------------------------ ---------------------------- Aug. 17 1993 9675 10000 9857 10289 1993 9978 10413 9570 10021 9620 10126 9656 10223 1994 9501 10125 10066 10658 10310 10960 10569 11273 1995 10882 11557 10813 11515 10870 11566 11072 11773 1996 11299 12061 11290 12048 11602 12379 11858 12710 1997 12108 12987 12194 13146 12337 13298 12666 13720 1998 12744 13806 12818 13923 12608 13687 12610 13799 1999 12556 13786 12753 14006 12905 14234 13159 14559 2000 13551 15040 Mar. 31 2001 13847 15431
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS INTERMEDIATE MUNICIPAL LEHMAN 7-YEAR MUNICIPAL BOND BOND FUND $14,313 INDEX $15,431 ------------------------------ ---------------------------- Aug. 17 1993 10000 10000 10188 10289 1993 10313 10413 9891 10021 9943 10126 9981 10223 1994 9820 10125 10404 10658 10656 10960 10924 11273 1995 11248 11557 11176 11515 11235 11566 11444 11773 1996 11679 12061 11669 12048 11992 12379 12257 12710 1997 12516 12987 12604 13146 12752 13298 13092 13720 1998 13172 13806 13248 13923 13031 13687 13033 13799 1999 12977 13786 13181 14006 13339 14234 13602 14559 2000 14006 15040 Mar. 31 2001 14313 15431
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 7/30/93 8/17/93 12/2/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.81% 8.54% 5.00% 7.74% 4.74% 7.84% 6.84% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.56% 4.32% 3.17% 3.62% 3.31% 3.75% 3.75% 5 YEARS 5.29% 5.07% 4.37% 4.48% 4.48% 4.59% 4.59% SINCE INCEPTION 5.16% 4.82% 4.36% 4.30% 4.30% 5.71% 5.71%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 13 18 NATIONS MUNICIPAL INCOME FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS MUNICIPAL INCOME FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, we aim to limit The Fund seeks high current income the Fund's exposure to any single credit or market sector. exempt from federal income tax In addition, we use a combination of investment strategies, with the potential for principal including duration management (managing the Fund's fluctuation associated with sensitivity to interest rates), market sector selection and investments in long-term municipal individual credit reviews. We also seek to limit the securities. distribution of capital gains when appropriate. As a PERFORMANCE REVIEW long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity of greater than seven years and a March 31, 2001, Nations Municipal duration of greater than six years. Income Fund Investor A Shares PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** provided shareholders with a total With a total return of 9.55%, Nations Municipal Income Fund return of 9.55%.** (Investor A Shares) underperformed its peer group, the Lipper General Municipal Debt Funds Average, which returned 9.91% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group, which was offset by an overweighting in health care and industrial revenue issues which underperformed. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Over the next 12 months, the more traditional sectors in the municipal bond market may come under financial strain, as the downturn in the domestic economy puts stress on state and local government's financial resources. While we do not anticipate a recession, even a "soft landing" can be detrimental to certain parts of the country. State and local governments are likely to have trouble adapting to fewer financial resources and increasing infrastructure needs. This combination is likely to have an impact on the creditworthiness of the asset class.
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchase of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper General Municipal Debt Funds Average invest at least 65% of their assets in municipal debt issues in the top four credit ratings. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 14 19 NATIONS MUNICIPAL INCOME FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* continued Last year's slightly inverted and/or flat yield curve reversed itself as the Federal Reserve Board began to cut short-term interest rates in January 2001. Bonds with maturities of 10 years or less have dropped dramatically in yield while longer term bonds have declined only modestly, thus producing a normal (i.e., positive), steeper yield curve. A steeper yield curve is generally a precursor to a rising interest rate environment. The municipal bond market may also face the potential for lower tax rates as the Bush administration seeks to reduce income tax rates. The full impact of a tax cut is likely to be somewhat muted as it is most certain to be phased in over a period of time. However, lower marginal tax rates do diminish the value of tax-exempt income over time. While municipal securities generally provide attractive returns over time with low volatility, the near-term may prove to be challenging. High levels of supply, deteriorating credit conditions, and declining tax rates may be difficult for the market to handle.
15 20 NATIONS MUNICIPAL INCOME FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Housing 3.30 Education 4.30 Electric 5.10 Transportation 5.30 Water 8.00 Prerefunded 11.40 Hospital 11.60 Industrial development revenue/Pollution control revenue 19.00 Other 5.80 General obligation 26.20
TOP 10 HOLDINGS ------------------------------------------------- 1 Washington State, GO, Series 2000A, 5.625% 07/01/21 2.0% ------------------------------------------------- 2 Washington State, GO, Series 1990A, 6.750% 02/01/15 1.7% ------------------------------------------------- 3 Murray City, Utah, Hospital Revenue Refunding, (IHC Health Services, Inc. Project) Series 1996, (MBIA Insured), 5.000% 05/15/22 1.6% ------------------------------------------------- 4 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Second Lien, Series 1999, AMT, (AMBAC Insured), 5.500% 01/01/10 1.5% ------------------------------------------------- 5 District of Columbia, Revenue, (Carnegie Endowment Project) Series 1996, 5.750% 11/15/26 1.2% ------------------------------------------------- 6 Dayton, Ohio, Special Facilities Revenue, (Air Freight Corporation Project) Series 1988D, AMT, 6.200% 10/01/09 1.1% ------------------------------------------------- 7 Wyoming, Student Loan Corporation, Revenue Refunding, Series 1999A, 6.250% 6/01/29 1.1% ------------------------------------------------- 8 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1999B-2, AMT, 6.100% 06/01/31 1.1% ------------------------------------------------- 9 Chelan County, Washington, Development Corporation, PCR Refunding, (Alcoa, Inc. Project) Series 1995, 5.850% 12/01/31 1.1% ------------------------------------------------- 10 Montgomery County, Ohio, Hospital Revenue, Series 1999, 6.750% 04/01/22 1.1% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 16 21 NATIONS MUNICIPAL INCOME FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
10-YEAR NAV** MOP* (3/31/91 through 3/31/01) 6.81% 6.29%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Municipal Income Fund over the last 10 years. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS MUNICIPAL INCOME FUND LEHMAN MUNICIPAL BOND INDEX $18,404 $20,261 ----------------------------- --------------------------- Mar. 31 1991 9525 10000 9665 10214 10069 10611 1991 10473 10967 10440 11000 10863 11417 11111 11720 1992 11333 11934 11790 12376 12258 12781 12731 13213 1993 12844 13398 11991 12662 12091 12802 12098 12890 1994 11866 12706 12810 13604 13133 13932 13522 14332 1995 14155 14924 13926 14745 14056 14857 14429 15197 1996 14791 15584 14735 15547 15251 16083 15729 16567 1997 16173 17016 16343 17212 16565 17474 17060 18010 1998 17108 18118 17194 18279 16846 17958 16663 17886 1999 16376 17746 16804 18266 17002 18542 17408 18991 2000 17981 19821 Mar. 31 2001 18404 20261
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS MUNICIPAL INCOME FUND LEHMAN MUNICIPAL BOND INDEX $19,325 $20,261 ----------------------------- --------------------------- Mar. 31 1991 10000 10000 10147 10214 10571 10611 1991 10995 10967 10961 11000 11405 11417 11665 11720 1992 11898 11934 12378 12376 12869 12781 13366 13213 1993 13485 13398 12589 12662 12694 12802 12702 12890 1994 12458 12706 13449 13604 13788 13932 14196 14332 1995 14861 14924 14620 14745 14757 14857 15148 15197 1996 15529 15584 15470 15547 16011 16083 16514 16567 1997 16980 17016 17158 17212 17391 17474 17911 18010 1998 17961 18118 18051 18279 17687 17958 17494 17886 1999 17193 17746 17642 18266 17850 18542 18276 18991 2000 18878 19821 Mar. 31 2001 19325 20261
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 2/1/91 2/1/91 6/7/93 6/17/92 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 9.80% 9.55% 4.37% 8.62% 4.62% 8.71% 7.71% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.26% 4.05% 2.38% 3.27% 2.35% 3.32% 3.32% 5 YEARS 5.96% 5.74% 4.72% 5.03% 4.86% 5.13% 5.13% 10 YEARS 6.99% 6.81% 6.29% -- -- -- -- SINCE INCEPTION 6.96% 6.79% 6.27% 4.87% 4.87% 5.68% 5.68%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 17 22 NATIONS CALIFORNIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS CALIFORNIA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks as high a level of the universe of California municipal securities, we aim to current interest income free of limit the Fund's exposure to any single credit or market federal income tax and California sector. In addition, we use a combination of investment state personal income tax as is strategies, including duration management (managing the consistent with prudent investment Fund's sensitivity to interest rates), market sector management and preservation of selection and individual credit reviews. We also seek to capital. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations California duration of more than six years. Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Shares provided shareholders with With a total return of 9.93%, Nations California Municipal a total return of 9.93%.** Bond Fund (Investor A Shares) underperformed its peer group, the Lipper California Municipal Debt Funds Average, which returned 10.41% for the 12-month period ended March 31, 2001. The Fund maintained a more conservative duration than its peers during a period in which interest rates declined. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA? The state of California is rated "Aa2" by Moody's Investors Services, Inc, "A+" by Standard & Poor's Corporation (S&P) and "AA" by Fitch IBCA, Inc. (Fitch). California is the largest state in the nation, accounting for approximately 13% of the nation's total gross domestic product and 12% of the nation's population. The state's economy is deep and diverse. Major industries include trade, high technology manufacturing, biotechnology, entertainment and services.
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper California Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in California. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 18 23 NATIONS CALIFORNIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* continued The year 2000 was another strong year for the state. Unemployment reached a new low of 4.9% and job growth of 3.2% outpaced the nation by more than two times. Job gains were broad based and affected nearly all segments of the economy. The strong economy led to a continued rise in state revenues, particularly from stock options and capital gains. Following several years of strong revenue growth and conservative budgeting, California's general fund ended FY2000 with a record cash surplus of $9.35 billion, equal to 14% of expenditures. Through March 2001, general fund receipts were running equal to budget, although personal income tax receipts appear to be softening. However, the state is now in the midst of an economic slowdown following several years of an economic boom, with weakness in the high tech sector and rising energy prices threatening to slow consumer spending and push up unemployment rates. The state is also in the midst of an energy crisis, created by tight electricity supplies, the bankruptcy filing of its largest investor-owned utility and the near insolvency of its second largest utility. The state has been purchasing power on behalf of its investor-owned utilities to ensure electricity continues to flow to California residences and businesses since January 2001 by drawing down its general fund cash reserves. The state's spending on power threatens to deplete its cash reserves built up during the economic boom years and reduce funds available to pay for other state services and spending needs. The state plans to replenish the general fund through the issuance of bonds this summer, backed by consumer electricity rates. However, the state continues to have sizable exposure to the volatile electricity spot market despite attempts to lock in prices under contracts and faces the risk that a continued rise in spot market prices could lead to further consumer rate increases and/or additional cash outflows from the general fund. The unreliability of the state's tight power supplies threatens to further slow economic growth. Power blackouts this summer appear likely due to low hydroelectric power supplies in the Northwest, aging generation facilities, demand growth throughout the West, and inadequate transmission capacity between Southern and Northern California. WHAT IS YOUR OUTLOOK FOR CALIFORNIA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? California's economic downturn is expected to be brief and mild and is not expected to lead to a recession. Job growth for 2001 is expected to slow to 2.2%, although rising energy prices and potential rolling blackouts this summer threaten to weaken the economy further. Local government units could be affected by possible state budget cutbacks in local aid and other impacts of the economic slowdown. However, in general, local government units have strengthened their financial position over the past several years and therefore should be able to weather the changes in the near term. The state's credit quality will largely be impacted by its ability to resolve the energy crisis, stem the outflow of cash used to purchase power and manage its budget in a slower economic environment. We believe the state has significant financial flexibility to manage these challenges over the longer-term,
19 24 NATIONS CALIFORNIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* continued although in the near term the price of its bonds may be subject to volatility. Other longer-term challenges include health care, affordable housing and infrastructure needs. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
P.S. Subsequent to the Fund's fiscal year end, the state was downgraded from "AA" by S&P and placed on watch for a possible downgrade by Fitch. 20 25 NATIONS CALIFORNIA MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Prerefunded 3.90 General obligation 7.60 Hospital 8.80 Housing 9.20 Electric 9.60 Special tax 10.20 Transportation 10.40 Other 6.80 Lease 18.50 Water 15.00
TOP 10 HOLDINGS ------------------------------------------------- 1 Fresno, California, Sewer Revenue, Series 1993A-1, (AMBAC Insured), 6.250% 09/01/14 3.1% ------------------------------------------------- 2 Puerto Rico, Electric Power Authority, Revenue, 6.000% 07/01/14 2.8% ------------------------------------------------- 3 Port Oakland, California, Port Revenue Refunding, Series 1997H, AMT, (MBIA Insured), 5.500% 11/01/15 2.7% ------------------------------------------------- 4 Beverly Hills, California, Public Financing Authority, Lease Revenue, (Capital Imports Project) Series 1998A, 5.000% 06/01/23 2.6% ------------------------------------------------- 5 San Jose Redevelopment Agency, California, Tax Allocation, (Merged Area Redevelopment Project) Series 1993, (MBIA Insured), 6.000% 08/01/15 2.2% ------------------------------------------------- 6 University of California, Hospital Revenue, (University of California Medical Center Project) Series 1996, (AMBAC Insured), 5.750% 07/01/24 2.2% ------------------------------------------------- 7 California State, Public Works Board, Lease Revenue, (Department of Corrections State Prison Project) Series 1993E, 5.500% 06/01/19 2.1% ------------------------------------------------- 8 Puerto Rico, Electric Power Authority, Power Revenue, Series 2000HH, (FSA Insured), 5.250% 07/01/29 2.1% ------------------------------------------------- 9 Los Angeles, California, Parking Revenue, Series 1999A, (AMBAC Insured), 5.250% 05/01/29 2.0% ------------------------------------------------- 10 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue, Series 2000A, (FGIC Insured), 5.250% 07/01/30 1.8% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 21 26 NATIONS CALIFORNIA MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
10-YEAR NAV** MOP* (3/31/91 through 3/31/01) 6.73% 6.22%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations California Municipal Bond Fund over the last 10 years. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS CALIFORNIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX $18279 $20261 --------------------------------- --------------------------- Mar. 31 1991 9425 10000 9640 10000 10023 10214 10293 10611 10341 10967 10750 11000 10999 11417 1992 11175 11720 11664 11934 12066 12376 12507 12781 12572 13213 11919 13398 11978 12662 12054 12802 1994 11807 12890 12601 13604 12802 13932 13079 14332 13754 14924 13461 14745 13572 14857 13909 15197 1996 14271 15584 14131 15547 14601 16083 15076 16567 15486 17016 15641 17212 15878 17474 16422 18010 1998 16497 18118 16675 18279 16243 17958 16078 17886 15888 17746 16447 18266 16700 18542 17160 18991 2000 17853 19821 Mar. 31 2001 18279 20261
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS CALIFORNIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $19,184 $20,261 --------------------------------- --------------------------- Mar. 31, 1991 10000 10000 10228 10000 10634 10214 10921 10611 10971 10967 11406 11000 11670 11417 1992 11857 11720 12375 11934 12802 12376 13270 12781 13339 13213 12646 13398 12708 12662 12790 12802 1994 12527 12890 13369 13604 13583 13932 13877 14332 14593 14924 14282 14745 14400 14857 14757 15197 1996 15141 15584 14993 15547 15492 16083 15996 16567 16341 17016 16595 17212 16847 17474 17423 18010 1998 17503 18118 17693 18279 17234 17958 17059 17886 16857 17746 17451 18266 17719 18542 18207 18991 2000 18942 19821 Mar. 31 2001 19184 20261
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B++ INVESTOR C PRIMARY A+ NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 5/21/99 3/30/84 7/15/98 7/29/99 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 10.05% 9.93% 4.65% 9.15% 4.15% 8.97% 7.97% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.99% 4.95% 3.26% 4.18% 3.26% -- -- 5 YEARS 6.10% 6.08% 5.06% 5.61% 5.28% -- -- 10 YEARS 6.75% 6.73% 6.22% 6.50% 6.50% -- -- SINCE INCEPTION 7.67% 7.66% 7.35% 7.52% 7.52% 5.46% 5.46%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. +Primary A Shares commenced operations on May 21, 1999 and have no performance prior to that date. Performance prior to May 21, 1999 is that of Investor A Shares at NAV, which reflect 12b-1 fees of 0.25%. These 12b-1 fees are not applicable to Primary A Shares. Inception date for Investor A Shares is March 30, 1984. ++Investor B Shares commenced operations on July 15, 1998 and have no performance prior to that date. Performance prior to July 15, 1998 is that of Investor A Shares at NAV, which reflect 12b-1 fees of 0.25%. If Investor B Shares 12b-1 fees had been reflected, total returns would have been lower. Inception date for Investor A Shares is March 30, 1984. 22 27 NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management Team of Banc of America Capital The Fund balances its investments between high quality, Management, Inc., investment investment grade issues through which it seeks to reduce sub-adviser to the Fund. credit and liquidity risk and lower quality, investment grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio generally within The Fund seeks high current income the universe of Florida municipal securities, we aim to exempt from federal income and the limit the Fund's exposure to any single credit or market Florida state intangibles taxes sector. In addition, we use a combination of investment consistent with moderate strategies, including duration management (managing the fluctuation of principal. Fund's sensitivity to interest rates), market sector selection and individual credit reviews. We also seek to PERFORMANCE REVIEW limit the distribution of capital gains when appropriate. As For the 12-month period ended an intermediate-term portfolio, the Fund seeks to maintain March 31, 2001, Nations Florida an average dollar-weighted maturity between three and ten Intermediate Municipal Bond Fund years and a duration of between three and six years. Investor A Shares provided PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** shareholders with a total return of 8.33%.** With a total return of 8.33%, Nations Florida Intermediate Municipal Bond Fund (Investor A Shares) underperformed its peer group, the Lipper Florida Intermediate Municipal Debt Funds Average, which returned 8.62% for the 12-month period ended March 31, 2001. The Fund's underperformance was a result of having a slightly shorter duration over the period than its peers and credit spread widening in health care and industrial revenue bond positions. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN FLORIDA? The state of Florida has been rated by Moody's Investors Services, Inc. ("Aa2"), Standard & Poor's Corporation ("AA+"), and Fitch IBCA, Inc. ("AA"). The key factors included in these ratings are a constitutionally dedicated second lien pledge of gross receipts tax revenues from electric, natural gas and the telecommunications industry's sales. However, the bonds are general obligations of the state and payable from any source of revenue available to the state. Strengthening the narrow base of
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Florida Intermediate Municipal Debt Funds Average invest at least 65% of their assets in municipal debt issues that are exempt from taxation in Florida, with dollar-weighted average maturities of five to ten years. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 23 28 NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued taxation provided by the second lien gross receipt tax, is a growing and diversifying economy with excellent prospects for future growth. The state currently (as of June 2000) has a budget stabilization reserve equal to 5% of revenues and a working capital reserve of 3.7% of revenues for a total reserve of 8.7% or $847 million. This is a very high level. These reserves are scheduled to rise to $940 million in the 2002 budget. Both an expanding economy and an influx of retirees have brought substantial population growth. Large numbers of retirees have brought stable sources of income -- transfer payments -- which help to insulate the state's economy from business cycles. WHAT IS YOUR OUTLOOK FOR FLORIDA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key challenges are rapid population growth requiring infrastructure spending -- particularly for schools. These needs ideally should be met without impairing finances. In part to address these needs, the state has established a public education bond program -- funded with a first and second lien on the utility gross receipts tax. More recently Medicaid costs have been rising due to increases in the prescribed drug benefit and new enrollees. However, the state has a long history of coping successfully with growth pressures and cost containment issues, as evidenced by their ability to accumulate large reserves, and we expect this success should continue. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
24 29 NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Industrial development revenue/Pollution control revenue 8.00 Hospital 12.10 Other 14.80 General obligation 14.80 Transportation 12.80 Housing 10.20 Prerefunded 8.10 Water 6.20 Special tax 7.70 Electric 5.30
TOP 10 HOLDINGS ------------------------------------------------- 1 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24 3.7% ------------------------------------------------- 2 Florida State, Division of Bond Financing, Department of General Services Revenue, (Department of Natural Resources -- Preservation 2000 Project) Series 1993A, (FSA Insured), 5.300% 07/01/06 2.3% ------------------------------------------------- 3 Orange County, Florida, Health Facilities Authority, Revenue, (Orlando Regional Healthcare Project) Series 1996A, (MBIA Insured), 6.250% 10/01/08 2.1% ------------------------------------------------- 4 Palm Beach County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue Refunding, Series 1999A, AMT, (GNMA/FNMA COLL), 4.850% 04/01/32 1.8% ------------------------------------------------- 5 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue, Series 1997B, 5.400% 08/15/18 1.7% ------------------------------------------------- 6 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (Altamonte Project) Series 1994C, Mandatory Put 12/01/03 @ 100, 7.000% 12/01/24 1.7% ------------------------------------------------- 7 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1993D, 5.200% 06/01/11 1.6% ------------------------------------------------- 8 Dade County, Florida, Aviation Revenue, (Miami International Airport Project) Series 1997B, AMT, (FSA Insured), 5.000% 10/01/06 1.5% ------------------------------------------------- 9 Hillsborough County, Florida, IDR Refunding, (Tampa Electric Company Project) Series 1992, 8.000% 05/01/22 1.5% ------------------------------------------------- 10 Escambia County, Florida, PCR, (Champion International Corporation Project) Series 1996, AMT, 6.400% 09/01/30 1.5% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 25 30 NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (12/14/92 through 3/31/01) 5.41% 4.99%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Florida Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS FLORIDA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $14,974 INDEX $16,502 ---------------------------- ---------------------------- Dec. 14 1992 9675 10000 1992 9712 10082 10042 10405 10340 10693 10656 11003 1993 10793 11136 10330 10716 10409 10829 10460 10933 1994 10329 10828 10928 11397 11190 11721 11445 12055 1995 11784 12359 11692 12314 11734 12369 11937 12590 1996 12201 12898 12162 12884 12489 13238 12796 13592 1997 13054 13888 13176 14058 13327 14221 13652 14672 1998 13728 14764 13800 14889 13605 14636 13580 14756 1999 13605 14743 13831 14978 13986 15222 14245 15569 2000 14688 16084 Mar. 31 2001 14974 16502
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS FLORIDA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $15,484 INDEX $16,502 ---------------------------- ---------------------------- Dec. 14 1992 10000 10000 1992 10038 10082 10379 10405 10688 10693 11014 11003 1993 11156 11136 10677 10716 10758 10829 10811 10933 1994 10676 10828 11295 11397 11566 11721 11830 12055 1995 12180 12359 12085 12314 12128 12369 12338 12590 1996 12611 12898 12571 12884 12909 13238 13226 13592 1997 13492 13888 13619 14058 13774 14221 14110 14672 1998 14189 14764 14263 14889 14062 14636 14035 14756 1999 14062 14743 14295 14978 14462 15222 14729 15569 2000 15187 16084 Mar. 31 2001 15484 16502
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 12/11/92 12/14/92 6/7/93 12/17/92 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.59% 8.33% 4.78% 7.52% 4.52% 7.49% 6.49% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.64% 4.37% 3.24% 3.70% 3.39% 3.73% 3.73% 5 YEARS 5.33% 5.08% 4.39% 4.51% 4.51% 4.53% 4.53% SINCE INCEPTION 5.62% 5.41% 4.99% 4.54% 4.54% 4.91% 4.91%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 26 31 NATIONS FLORIDA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS FLORIDA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Florida municipal securities, we aim to exempt from federal income and the limit the Fund's exposure to any single credit or market Florida state intangibles taxes sector. In addition, we use a combination of investment with the potential for principal strategies, including duration management (managing the fluctuation associated with Fund's sensitivity to interest rates), market sector investments in long-term municipal selection and individual credit reviews. We also seek to securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations Florida duration of more than six years. Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Shares provided shareholders with With a total return of 9.86%, Nations Florida Municipal Bond a total return of 9.86%.** Fund (Investor A Shares) outperformed its peer group, the Lipper Florida Municipal Debt Funds Average, which returned 9.78% for the 12-month period ended March 31, 2001. The Fund benefited from having a modestly longer duration than its peer group during the period as interest rates declined. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN FLORIDA? The state of Florida has been rated by Moody's Investors Services, Inc. ("Aa2"), Standard & Poor's Corporation ("AA+"), and Fitch IBCA, Inc. ("AA"). The key factors included in these ratings are a constitutionally dedicated second lien pledge of gross receipts tax revenues from electric, natural gas and the telecommunications industry's sales. However, the bonds are general obligations of the state and payable
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Florida Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in Florida. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 27 32 NATIONS FLORIDA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued from any source of revenue available to the state. Strengthening the narrow base of taxation, provided by the second lien gross receipt tax, are a growing and diversifying economy with excellent prospects for future growth. As of June 2000, the state had a budget stabilization reserve equal to 5% of revenues and a working capital reserve of 3.7% of revenues for a total reserve of 8.7% or $847 million. This is a very high level. These reserves are schedule to rise to $940 million in the 2002 budget. Both an expanding economy and an influx of retirees have brought substantial population growth. Large numbers of retirees have brought stable sources of income -- transfer payments -- which help to insulate the state's economy from business cycles. WHAT IS YOUR OUTLOOK FOR FLORIDA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key challenges are rapid population growth requiring infrastructure spending -- particularly for schools. These needs ideally should be met without impairing finances. In part to address these needs, the state has established a public education bond program -- funded with a first and second lien on the utility gross receipts tax. More recently, Medicaid costs have been rising due to increases in the prescribed drug benefit and new enrollees. However, the state has a long history of coping successfully with growth pressures and cost containment issues, as evidenced by their ability to accumulate large reserves, and we believe this success should continue. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
28 33 NATIONS FLORIDA MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] General obligation 11.4 Hospital 14.6 Other 11.5 Special tax 13.6 Transportation 11.9 Electric 8.8 Prerefunded 10.4 Industrial development revenue/Pollution control revenue 7.1 Resource recovery 3.9 Housing 6.8
TOP 10 HOLDINGS ------------------------------------------------- 1 Palm Beach County, Florida, Solid Waste Authority, Revenue, Unrefunded Balance, Series 1997A, (AMBAC Insured), 6.000% 10/01/10 3.9% ------------------------------------------------- 2 Okaloosa County, Florida, Gas Distribution Revenue Refunding, Series 1994, (MBIA Insured), Prerefunded 10/01/04 @ 102, 6.875% 10/01/19 3.8% ------------------------------------------------- 3 Collier County, Florida, Health Facilities Authority, Revenue Refunding, (Moorings, Inc. Project) Series 1994, 7.000% 12/01/19 3.6% ------------------------------------------------- 4 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), 5.650% 10/01/14 3.6% ------------------------------------------------- 5 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), 5.375% 10/01/18 3.4% ------------------------------------------------- 6 Puerto Rico Commonwealth, GO, Series 1997, (MBIA Insured), 6.500% 07/01/15 3.4% ------------------------------------------------- 7 Pinellas County, Florida, Capital Improvement Revenue, Series 2000, 4.500% 01/01/06 2.8% ------------------------------------------------- 8 South Miami, Florida, Health Facilities Authority, Hospital Revenue Refunding, (Baptist Health Systems Obligation Group Project) Series 1995, (MBIA Insured), 5.375% 10/01/16 2.8% ------------------------------------------------- 9 Guam, Airport Authority, Revenue, Series 1993A, 6.375% 10/01/10 2.7% ------------------------------------------------- 10 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16 2.6% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 29 34 NATIONS FLORIDA MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (12/10/93 through 3/31/01) 5.00% 4.30%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Florida Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS FLORIDA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $13,603 $15,441 ------------------------------ --------------------------- Dec. 10 1993 9525 10000 1993 9522 10211 8760 9650 8828 9757 8839 9824 1994 8739 9683 9452 10368 9699 10618 9941 10923 1995 10456 11374 10194 11237 10287 11323 10525 11582 1996 10766 11877 10713 11849 11071 12258 11407 12627 1997 11704 12969 11826 13118 11963 13317 12343 13726 1998 12364 13808 12380 13931 12148 13686 12042 13631 1999 12019 13525 12384 13921 12525 14132 12781 14474 2000 13346 15106 Mar. 31 2001 13603 15441
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS FLORIDA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $14,284 $15,441 ------------------------------ --------------------------- Dec. 10 1993 10000 10000 1993 9997 10211 9197 9650 9268 9757 9280 9824 1994 9174 9683 9923 10368 10183 10618 10436 10923 1995 10977 11374 10703 11237 10800 11323 11050 11582 1996 11303 11877 11247 11849 11623 12258 11976 12627 1997 11288 12969 12415 13118 12559 13317 12959 13726 1998 12981 13808 12998 13931 12755 13686 12643 13631 1999 12619 13525 13002 13921 13152 14132 13420 14474 2000 14014 15108 Mar. 31 2001 14284 15441
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 12/13/93 12/10/93 10/22/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 10.13% 9.86% 4.59% 9.05% 5.05% 8.92% 7.92% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 5.02% 4.78% 3.09% 4.05% 3.12% 3.99% 3.99% 5 YEARS 6.17% 5.94% 4.92% 5.25% 5.09% 5.29% 5.29% SINCE INCEPTION 5.31% 5.00% 4.30% 4.33% 4.33% 7.03% 7.03%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 30 35 NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Georgia municipal securities, we aim to exempt from federal and Georgia limit the Fund's exposure to any single credit or market state income taxes consistent with sector. In addition, we use a combination of investment moderate fluctuation of principal. strategies, including duration management (managing the PERFORMANCE REVIEW Fund's sensitivity to interest rates), market sector For the 12-month period ended selection and individual credit reviews. We also seek to March 31, 2001, Nations Georgia limit the distribution of capital gains when appropriate. As Intermediate Municipal Bond Fund an intermediate-term portfolio, the Fund seeks to maintain Investor A Shares provided an average dollar-weighted maturity of between three and ten shareholders with a total return years and a duration of between three and six years. of 8.66%.** PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** With a total return of 8.66%, Nations Georgia Intermediate Municipal Bond Fund (Investor A Shares) basically matched its peer group average, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group, which was offset by an overweighting in health care and industrial revenue issues which underperformed. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN GEORGIA? The state of Georgia has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), and Fitch IBCA, Inc. ("AAA"). The state of Georgia has earned the second highest rating from Standard & Poor's Corporation ("AA+"). The key economic factors included in these rating are a prolonged history of diversified economic growth coupled with a high level of job creation.
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 31 36 NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued Employment growth recently has been in the 2.0% to 2.5% range, which is a strong level. This is due in large measure to growth in the services sector. In January of 2001 overall job growth was 2.0% despite signs of a national economic slowdown. While the city of Atlanta has emerged as the pre-eminent economic center in the southeast region, growth and diversification have occurred throughout the state. As a reflection of this success, Georgia has had one of the fastest population growth rates in the country. Georgia has a long term history of stable economic and population growth. Additionally the state has contributed to growth in the surrounding region. A long-term positive trend is population growth in excess of national benchmarks -- due in large part to job formation and quality of life issues. Long-term shifts in economic sector composition from agriculture to services such as FIRE (Finance, Insurance and Real Estate) and manufacturing are all credit positives. One effect of this shift is to replace relatively low paying agriculture sector jobs with more higher paying service and manufacturing jobs. Health service is another sector that has added relatively higher paying jobs at a significant rate. The growth in health services and FIRE sectors adds significant diversification and stability to the Georgia economy -- all credit positives. The state's financial performance has been quite good. Recent budget surpluses due to economic growth and sound management have allowed the state to accumulate sizeable reserve funds. These reserve funds serve as a cushion against economic cycling. Preliminary estimates for fiscal year 2000 show tax collections up about 8.5% from 1999. For fiscal 2001 the state is budgeting for revenue growth of 7.5% a year -- a target we believe is attainable. An additional source of funds at the state level will be from the issuance of tobacco settlement bonds to be used for various purposes such as healthcare and economic development. WHAT IS YOUR OUTLOOK FOR GEORGIA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key challenges for the state and its local government units are dealing with rapid population growth and keeping financial performance stable -- including maintaining substantial financial reserve levels and continuing on a diversified economic growth path. Rapid population growth requires capital expenditures for infrastructure such as roads, water, sewer and education. Planning and spending to meet these needs requires a long-term view encompassing both pay-as-you-go spending and borrowing. We believe the state will likely meet these long-term challenges successfully. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable
32 37 NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
33 38 NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] General obligations 30.5 Other 4.9 Prerefunded 12.4 Industrial development revenue/Pollution control revenue 15.2 Transportation 9.5 Hospital 8.5 Water 9.3 Electric 2.1 Education 5.7 Housing 1.9
TOP 10 HOLDINGS ------------------------------------------------- 1 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18 4.1% ------------------------------------------------- 2 DeKalb County, Georgia, Development Authority, Revenue, (Emory University Project) Series 1994A, 6.000% 10/01/14 2.9% ------------------------------------------------- 3 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 2000A, (FGIC Insured), 5.600% 01/01/30 2.8% ------------------------------------------------- 4 Georgia, George L. Smith II World Congress Center Authority, Revenue Refunding, (Domed Stadium Project) Series 2000, AMT, (MBIA Insured), 6.000% 07/01/05 2.8% ------------------------------------------------- 5 Clayton County, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Southern Regional Medical Center Project) Series 1998A, (MBIA Insured), 5.250% 08/01/09 2.3% ------------------------------------------------- 6 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 2.2% ------------------------------------------------- 7 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 5.900% 07/01/03 2.1% ------------------------------------------------- 8 Georgia State, GO, Series 1993C, 6.500% 07/01/05 2.1% ------------------------------------------------- 9 Bibb County, Georgia, GO, Series 1993, 5.500% 01/01/08 1.9% ------------------------------------------------- 10 Cartersville, Georgia, Development Authority, Sewer Facilities Revenue Refunding, (Anheuser-Busch Companies, Inc. Project) Series 1997, AMT, 5.625% 05/01/09 1.8% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 34 39 NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (5/4/92 through 3/31/01) 5.73% 5.33%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Georgia Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS GEORGIA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $15,883 INDEX $17,543 ---------------------------- ---------------------------- May 4 1992 9675 10000 9951 10264 10199 10545 1992 10397 10718 10740 11061 11049 11368 11417 11697 1993 11529 11839 10996 11392 11080 11512 11130 11623 1994 10977 11511 11583 12116 11872 12461 12143 12816 1995 12522 13139 12394 13091 12441 13149 12679 13384 1996 12954 13712 12905 13697 13248 14074 13577 14450 1997 13859 14765 13970 14945 14125 15118 14528 15597 1998 14605 15696 14666 15829 14421 15560 14443 15688 1999 14376 15673 14625 15923 14802 16182 15102 16551 2000 15522 17099 Mar. 31 2001 15883 17543
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS GEORGIA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $16,424 INDEX $17,543 ---------------------------- ---------------------------- May 4 1992 10000 10000 10285 10264 10541 10545 1992 10747 10718 11101 11061 11420 11368 11800 11697 1993 11916 11839 11365 11392 11452 11512 11504 11623 1994 11346 11511 11972 12116 12271 12461 12551 12816 1995 12943 13139 12811 13091 12859 13149 13105 13384 1996 13389 13712 13338 13697 13893 14074 14033 14450 1997 14325 14765 14439 14945 14599 15118 15016 15597 1998 15095 15696 15159 15829 14906 15560 14928 15688 1999 14860 15673 15117 15923 15305 16182 15516 16551 2000 16050 17099 Mar. 31 2001 16424 17543
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 3/1/92 5/4/92 6/7/93 6/17/92 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.93% 8.66% 5.13% 7.85% 4.85% 7.96% 6.96% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.64% 4.40% 3.24% 3.69% 3.38% 3.66% 3.66% 5 YEARS 5.33% 5.10% 4.40% 4.50% 4.50% 4.48% 4.48% SINCE INCEPTION 5.91% 5.73% 5.33% 4.46% 4.46% 5.02% 5.02%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 35 40 NATIONS GEORGIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS GEORGIA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Georgia municipal securities, we aim to exempt from federal and Georgia limit the Fund's exposure to any single credit or market state income taxes with the sector. In addition, we use a combination of investment potential for principal strategies, including duration management (managing the fluctuation associated with Fund's sensitivity to interest rates), market sector investments in long-term municipal selection and individual credit reviews. We also seek to securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations Georgia duration of more than six years. Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Shares provided shareholders with With a total return of 10.11%, Nations Georgia Municipal a total return of 10.11%.** Bond Fund (Investor A Shares) sought to track its peer group average, the Lipper Georgia Municipal Debt Funds Average, which returned 10.32% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group while credit spreads widened on its health care and industrial revenue positions. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN GEORGIA? The state of Georgia has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), and Fitch IBCA, Inc. ("AAA"), and the second highest rating from Standard & Poor's Corporation ("AA+"). The key economic factors included in these ratings are a prolonged history of diversified economic growth coupled with a high level of job creation.
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Georgia Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in Georgia. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 36 41 NATIONS GEORGIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued Employment growth recently has been in the 2.0% to 2.5% range, which is a strong level. This is due in large measure to growth in the services sector. In January of 2001 overall job growth was at 2.0% despite signs of a national economic slowdown. While the city of Atlanta has emerged as the pre-eminent economic center in the southeast region, growth and diversification have occurred throughout the state. As a reflection of this success Georgia has had one of the fastest population growth rates in the country. Georgia has a long term history of stable economic and population growth. Additionally the state has contributed to growth in the surrounding region. A long-term positive trend is population growth in excess of national benchmarks -- due in large part to job formation and quality of life issues. Long-term shifts in economic sector composition from agriculture to services such as FIRE (Finance, Insurance and Real Estate) and manufacturing are all credit positives. One effect of this shift is to replace relatively low paying agriculture sector jobs with more higher paying service and manufacturing jobs. Health service is another sector that has added relatively higher paying jobs at a significant rate. The growth in health services and FIRE sectors adds significant diversification and stability to the Georgia economy -- all credit positives. The state's financial performance has been quite good. Recent budget surpluses due to economic growth and sound management have allowed the state to accumulate sizeable reserve funds. These reserve funds serve as a cushion against economic cycling. Preliminary estimates for fiscal year 2000 show tax collections up about 8.5% from 1999. For fiscal 2001, the state is budgeting for revenue growth of 7.5% a year -- a target we believe is attainable. An additional source of funds at the state level will be from the issuance of tobacco settlement bonds to be used for various purposes such as healthcare and economic development. WHAT IS YOUR OUTLOOK FOR GEORGIA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key challenges for the state and its local government units are dealing with rapid population growth and keeping financial performance stable -- including maintaining substantial financial reserve levels and continuing on a diversified economic growth path. Rapid population growth requires capital expenditures for infrastructure such as roads, water, sewer and education. Planning and spending to meet these needs requires a long-term view encompassing both pay-as-you-go spending and borrowing. We believe the state will likely meet these long-term challenges successfully. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from
37 42 NATIONS GEORGIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
38 43 NATIONS GEORGIA MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Lease 3.3 Transportation 7.3 Prerefunded 7.4 Hospital 7.6 Water 8.1 Education 12.5 Housing 11.4 Other 12.7 General obligation 19.2 Industrial development revenue/Pollution control revenue 10.5
TOP 10 HOLDINGS ------------------------------------------------- 1 Fulton County, Georgia, Water and Sewer Revenue, Series 1998, 4.750% 01/01/20 4.4% ------------------------------------------------- 2 Georgia State, GO, Series 1999D, 5.800% 11/01/13 3.9% ------------------------------------------------- 3 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1999B-2, AMT, 6.100% 06/01/31 3.9% ------------------------------------------------- 4 Forsyth County, Georgia, School District, GO, Series 1999, 6.000% 02/01/15 3.9% ------------------------------------------------- 5 Henry County, Georgia, Hospital Authority, Revenue, (Henry Medical Center Project) Series 1997, (AMBAC Insured), 6.000% 07/01/29 3.8% ------------------------------------------------- 6 Georgia, George L. Smith II World Congress Center Authority, Revenue Refunding, (Domed Stadium Project) Series 2000, AMT, (MBIA Insured), 6.000% 07/01/05 3.8% ------------------------------------------------- 7 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Joseph Hospital Project) Series 1994, 5.500% 10/01/14 3.8% ------------------------------------------------- 8 DeKalb County, Georgia, Development Authority, Revenue, (Emory University Project) Series 1994A, 6.000% 10/01/14 3.8% ------------------------------------------------- 9 Roswell, Georgia, GO, Series 1995, 5.600% 02/01/10 3.7% ------------------------------------------------- 10 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs -- Candler Health Systems Project) Series 1998B, (FSA Insured), 5.250% 07/01/10 3.7% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 39 44 NATIONS GEORGIA MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (12/30/93 through 3/31/01) 4.93% 4.22%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Georgia Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS GEORGIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $13,496 $15,122 ------------------------------ --------------------------- Dec. 30 1993 9525 10000 8818 9451 8891 9555 8845 9621 1994 8705 9483 9397 10154 9633 10398 9905 10697 1995 10396 11139 10171 11005 10226 11089 10480 11343 1996 10729 11632 10685 11604 11050 12004 11340 12366 1997 11646 12701 11776 12847 11946 13042 12342 13442 1998 12377 13523 12444 13643 12219 13403 12092 13350 1999 11913 13246 12257 13634 12377 13840 12693 14174 2000 13226 14794 Mar. 31 2001 13496 15122
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS GEORGIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $14,172 $15,122 ------------------------------ --------------------------- Dec. 30 1993 10000 10000 9268 9451 9334 9555 9286 9621 1994 9139 9483 9865 10154 10114 10398 10399 10697 1995 10915 11139 10678 11005 10736 11089 11003 11343 1996 11264 11632 11217 11604 11601 12004 11905 12366 1997 12227 12701 12363 12847 12541 13042 12958 13442 1998 12994 13523 13064 13643 12828 13403 12694 13350 1999 12506 13246 12868 13634 12996 13840 13328 14174 2000 13890 14794 Mar. 31 2001 14172 15122
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 1/13/94 12/30/93 10/21/93 11/3/94 ------------------------------------------------------------------------------------------------------------------------------ 1 YEAR PERFORMANCE 10.38% 10.11% 4.83% 9.29% 5.29% 9.29% 8.29% ------------------------------------------------------------------------------------------------------------------------------ AVERAGE ANNUAL RETURNS 3 YEARS 4.89% 4.65% 2.97% 3.92% 2.99% 3.88% 3.88% 5 YEARS 6.06% 5.82% 4.81% 5.14% 4.98% 5.18% 5.18% SINCE INCEPTION 5.12% 4.93% 4.22% 4.28% 4.28% 7.00% 7.00%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 40 45 NATIONS KANSAS MUNICIPAL INCOME FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS KANSAS MUNICIPAL INCOME FUND'S PERFORMANCE FROM INCEPTION ON AUGUST 14, 2000 THROUGH THE PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Kansas municipal securities, we aim to limit exempt from federal and Kansas the Fund's exposure to any single credit or market sector. state income taxes consistent with In addition, we use a combination of investment strategies, moderate fluctuation of principal. including duration management (managing the Fund's PERFORMANCE REVIEW sensitivity to interest rates), market sector selection and For the period from the Fund's individual credit reviews. We also seek to limit the inception on August 14, 2000 distribution of capital gains when appropriate. As an through March 31, 2001, Nations intermediate-term portfolio, the Fund seeks to maintain an Kansas Municipal Income Fund average dollar-weighted maturity of between three and ten Investor A Shares provided years and a duration of between three and eight years. shareholders with a total return PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** of 5.66%.** With a total return of 5.66%, Nations Kansas Municipal Income Fund (Investor A Shares) outperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 2.06% from the Fund's inception through the period ended March 31, 2001. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN KANSAS? The state of Kansas does not directly issue bonds backed by a general obligation pledge and therefore does not have a general obligation rating. If the state borrowed directly under this pledge we believe its rating would be very high due to its strong creditworthiness. For instance, the state Department of Transportation, an agency of the state, which borrows to fulfill state goals is rated "Aa2" by Moody's Investor Services, Inc. and "AA+" by Standard & Poor's Corporation. The state economy
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 41 46 NATIONS KANSAS MUNICIPAL INCOME FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued has a long history of stable economic growth due in large part to its broad diversification over many sectors. The largest sector employment sector in the state is services at 26% of the total, followed by trade at 24%, then government at 18% and manufacturing at 16%. The largest 15 employers in the state also show significant diversification with local, state and federal government being the largest. Private sector employers on the list are Sprint, Boeing, Raytheon, IBP (Iowa Beef Packing), Farmland Industries, Cessna Aircraft, GM and others. The state has a history of sound finances but recently there has been some stress. For fiscal year 2000 there was an operating deficit of $164 million. This deficit was due in large part to an income tax cut mitigated by spending reductions. For fiscal year 2001 the state is budgeting a $50 million surplus which should bring the general fund balance to $378 million or 8.7% of expenditures -- a very strong level. WHAT IS YOUR OUTLOOK FOR KANSAS AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? The state has recognized the key issues of balancing the need to provide government services while looking to bring the budget back into balance and maintain strong cash reserves. We believe the state will likely meet these challenges successfully. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
42 47 NATIONS KANSAS MUNICIPAL INCOME FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Housing 1.9 Education 4 Transportation 4.8 Industrial development revenue/Pollution control revenue 7.1 Prerefunded 8.6 Lease 9.3 Water 11.4 Other 3.1 Hospital 18.8 General obligation 31
TOP 10 HOLDINGS ------------------------------------------------- 1 Kansas State, Development Financing Authority, Revenue, (Board of Regents Rehab Project) Series 1997G-2, 5.000% 10/01/10 9.3% ------------------------------------------------- 2 Kansas State, Development Financing Authority, Health Facilities Revenue, (Sisters of Charity Project) Series 2000J, 6.250% 12/01/28 4.0% ------------------------------------------------- 3 Kansas State, Development Financing Authority, Revenue, (Public Water Supply Revolving Project) Series 1997, (AMBAC Insured), 5.000% 04/01/20 3.3% ------------------------------------------------- 4 Houston, Texas, Airport Systems Revenue, Sub Lien, Series 2000A, AMT, (FSA Insured), 5.625% 07/01/30 2.7% ------------------------------------------------- 5 Johnson County, Kansas, Unified School District Number 233, GO, Series 1999A, (FGIC Insured), 5.375% 09/01/14 2.6% ------------------------------------------------- 6 Kansas State, Development Financing Authority, Revenue, (Public Water Supply Revolving Project) Series 1997, (AMBAC Insured), 5.000% 04/01/17 2.5% ------------------------------------------------- 7 Kansas City, Kansas, Utilities System Revenue, Series 1994, (FGIC Insured), Prerefunded 09/01/04 @ 102, 6.375% 09/01/23 2.2% ------------------------------------------------- 8 Chicago, Illinois, Water Revenue, Capital Appreciation, Series 1997, (FGIC Insured), 4.610% 11/01/10 2.1% ------------------------------------------------- 9 Leavenworth County, Kansas, GO, Series 1997A, (AMBAC Insured), 4.900% 12/01/06 1.9% ------------------------------------------------- 10 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 1.8% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 43 48 NATIONS KANSAS MUNICIPAL INCOME FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT CUMULATIVE TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (8/14/00 through 3/31/01) 5.66% 2.20%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Kansas Municipal Income Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS KANSAS MUNICIPAL INCOME LEHMAN 7-YEAR MUNICIPAL BOND FUND $10,219 INDEX $10,707 ------------------------------- ---------------------------- Aug. 14 2000 10000 10000 9687 10101 2000 10019 10435 Mar. 31 2001 10219 10707
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS KANSAS MUNICIPAL INCOME LEHMAN 7-YEAR MUNICIPAL BOND FUND $10,566 INDEX $10,707 ------------------------------- ---------------------------- Aug. 14 2000 10000 10000 10015 10101 2000 10358 10435 Mar. 31 2001 10566 10707
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B PRIMARY A NAV** MOP* NAV** CDSC*** Inception date 7/16/00 8/14/00 8/29/00 ------------------------------------------------------------------------------------------------------------------------------- CUMULATIVE RETURNS SINCE INCEPTION 6.60% 5.66% 2.20% 4.78% -0.22%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 44 49 NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Maryland municipal securities, we aim to exempt from federal and Maryland limit the Fund's exposure to any single credit or market state income taxes consistent with sector. In addition, we use a combination of investment moderate fluctuation of principal. strategies, including duration management (managing the PERFORMANCE REVIEW Fund's sensitivity to interest rates), market sector For the 12-month period ended selection and individual credit reviews. We also seek to March 31, 2001, Nations Maryland limit the distribution of capital gains when appropriate. As Intermediate Municipal Bond Fund an intermediate-term portfolio, the Fund seeks to maintain Investor A Shares provided an average dollar-weighted maturity of between three and 10 shareholders with a total return years and a duration of between three and six years. of 8.81%.** PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** With a total return of 8.81%, Nations Maryland Intermediate Municipal Bond Fund (Investor A Shares) significantly outperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the 12-month period ended March 31, 2001. The Fund benefited from having a slightly longer duration than its peer group during the period. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN MARYLAND? The state of Maryland has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). Maryland has an in-depth and diverse economy. Economic growth has been led by the service and construction sectors most recently. The January 2001 unemployment rate was 3.6%, and the economy still seems to be adding jobs. The federal government has historically played a large and
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 45 50 NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued positive role in Maryland's economy. While the impact of the federal government is centered in Montgomery County (a northern suburb of Washington, D.C.), the federal presence is also significant in many other parts of the state. Federal job sites are located throughout the state, including areas north of Baltimore and from Frederick among others. Key statewide long-term trends are historically reasonable debt levels, (e.g., per capita state debt is currently only $967) coupled with a rapid maturity schedule -- all strong positives. Maryland has a diverse economy. The percentage of employment in the most important sectors include services 34%, wholesale and retail trade 23.1% and government 18.3%. These numbers indicate a healthy level of diversification without an overreliance on the federal government. The presence of the federal government, however, is a strong credit positive -- despite some historic volatility. The state of Maryland's finances have been historically sound. For the last several years the state has been operating at a surplus. For fiscal 2000 the general fund produced a surplus of $392 million and a total general fund balance of $2.3 billion or 19.9% of expenditures. This is a sizeable reserve, with a substantial amount available to cushion the state through a recession or another negative or unusual event. WHAT IS YOUR OUTLOOK FOR MARYLAND AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? A key challenge for the state and its local government units is to maintain infrastructure and economic development related spending without compromising finances. Specifically, education standards and spending must be maintained for the state to attract and retain workers. Other areas are roads, water and sewer and the criminal justice system. Over the long-term, we believe the state can effectively meet these challenges. Through the first quarter of 2001, the supply of municipal bonds has been especially heavy as issuers seek to take advantage of the low absolute level of interest rates. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
46 51 NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Resource recovery 1 Industrial development revenue/Pollution control revenue 4 Water 5.4 Education 6.8 Hospital 6.9 Prerefunded 7.7 Transportation 8.2 Other 4.5 Housing 15.7 General obligation 39.8
TOP 10 HOLDINGS ------------------------------------------------- 1 Maryland State, Transportation Authority, Transportation Revenue, Series 1992, 5.700% 07/01/05 2.1% ------------------------------------------------- 2 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Single-Family Program) Series 1998-3, AMT, 4.500% 04/01/08 2.0% ------------------------------------------------- 3 Maryland State, Community Development Administration, Development Revenue, (Lexington Terrace Senior Housing, LP Project) Series 1998B, AMT, 3.900% 10/01/02 1.9% ------------------------------------------------- 4 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1993A, 4.900% 10/01/07 1.8% ------------------------------------------------- 5 Washington Suburban Sanitation District Authority, Maryland, Water Supply GO Refunding, Series 1993, 5.100% 12/01/07 1.8% ------------------------------------------------- 6 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/14 1.6% ------------------------------------------------- 7 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.500% 07/01/07 1.6% ------------------------------------------------- 8 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999A, AMT, 5.350% 07/01/41 1.6% ------------------------------------------------- 9 Mississippi State, Hospital Facilities and Equipment Authority, Revenue, (Forrest County General Hospital Project) Series 2000, (FSA Insured), 5.500% 01/01/24 1.6% ------------------------------------------------- 10 Montgomery County, Maryland, GO, Series 1991B, Prerefunded 10/01/01 @ 102, 6.100% 10/01/05 1.5% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 47 52 NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
10-YEAR NAV** MOP* (3/31/91 through 3/31/01) 5.69% 5.34%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Maryland Intermediate Municipal Bond Fund over the last 10 years. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS MARYLAND INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $16,830 INDEX $19,287 ----------------------------- ---------------------------- Mar. 31 1991 9675 10000 9827 10172 10112 10559 1991 10422 10907 10434 10898 10761 11284 10991 11593 1992 11158 11783 11488 12160 11792 12497 12164 12860 1993 12275 13015 11718 12525 11809 12656 11842 12778 1994 11697 12655 12349 13321 12679 13699 12965 14089 1995 13291 14444 13217 14392 13243 14456 13469 14714 1996 13746 15075 13696 15058 14045 15472 14358 15886 1997 14647 16232 14739 16430 14900 16621 15296 17147 1998 15392 17255 15471 17402 15257 17106 15256 17247 1999 15231 17231 15461 17505 15655 17790 15965 18196 2000 16491 18798 Mar. 31 2001 16830 19287
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS MARYLAND INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $17,387 INDEX $19,287 ----------------------------- ---------------------------- Mar. 31 1991 10000 10000 10157 10172 10452 10559 1991 10772 10907 10784 10898 11123 11284 11360 11593 1992 11532 11783 11874 12160 12188 12497 12572 12860 1993 12687 13015 12112 12525 12205 12656 12240 12778 1994 12090 12655 12764 13321 13104 13699 13401 14089 1995 13737 14444 13661 14392 13687 14456 13921 14714 1996 14208 15075 14156 15058 14517 15472 14840 15886 1997 15139 16232 15234 16430 15400 16621 15810 17147 1998 15909 17255 15990 17402 15770 17106 15768 17247 1999 15743 17231 15981 17505 16180 17790 16501 18196 2000 17045 18798 Mar. 31 2001 17387 19287
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 9/1/90 9/1/90 6/8/93 6/17/92 ------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 9.08% 8.81% 5.23% 8.01% 5.01% 8.01% 7.01% ------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.75% 4.51% 3.37% 3.81% 3.50% 3.77% 3.77% 5 YEARS 5.17% 4.94% 4.26% 4.35% 4.35% 4.33% 4.33% 10 YEARS 5.87% 5.69% 5.34% -- -- -- -- SINCE INCEPTION 6.17% 5.99% 5.66% 4.33% 4.33% 4.72% 4.72%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 48 53 NATIONS MARYLAND MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS MARYLAND MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Maryland municipal securities, we aim to exempt from federal and Maryland limit the Fund's exposure to any single credit or market state income taxes with the sector. In addition, we use a combination of investment potential for principal strategies, including duration management (managing the fluctuation associated with Fund's sensitivity to interest rates), market sector investments in long-term municipal selection and individual credit reviews. We also seek to securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations Maryland duration of more than six years. Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Shares provided shareholders with With a total return of 10.62%, Nations Maryland Municipal a total return of 10.62%.** Bond Fund (Investor A Shares) significantly outperformed its peer group, the Lipper Maryland Municipal Debt Funds Average, which returned 9.53% for the 12-month period ended March 31, 2001. The Fund benefited from a longer duration stance than its peers during a period of declining interest rates. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN MARYLAND? The state of Maryland has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). Maryland has an in-depth and diverse economy. Economic growth has been lead by the service and construction sectors most recently. The January 2001 unemployment rate was 3.6% and the economy still seems to be adding jobs. The federal government has historically played a large and positive role in Maryland's economy. While the impact of the federal government is
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Maryland Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in Maryland. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 49 54 NATIONS MARYLAND MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued centered in Montgomery County (a northern suburb of Washington, D.C.), the federal presence is also significant in many other parts of the state. The state of Maryland's finances have been historically sound. For the last several years the state has been operating at a surplus. For fiscal 2000 the general fund produced a surplus of $392 million and a total general fund balance of $2.3 billion or 19.9% of expenditures. This is a sizeable reserve, with a substantial amount available to cushion the state through a recession or another negative or unusual event. WHAT IS YOUR OUTLOOK FOR MARYLAND AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? A key challenge for the state and its local government units is to maintain infrastructure and economic development related spending without compromising finances. Specifically, education standards and spending must be maintained for the state to attract and retain workers. Other areas are roads, water and sewer and the criminal justice system. Over the long term, we believe the state can effectively meet these challenges. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
50 55 NATIONS MARYLAND MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Other 5 Lease 1.3 Transportation 1.8 Prerefunded 2.3 Electric 3.5 Resource recovery 3.8 Industrial development revenue/Pollution control revenue 6.4 Housing 14.1 Education 22.1 General obligation 39.7
TOP 10 HOLDINGS ------------------------------------------------- 1 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/13 6.7% ------------------------------------------------- 2 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Johns Hopkins University Project) Series 1999, 6.000% 07/01/39 5.5% ------------------------------------------------- 3 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/17 4.9% ------------------------------------------------- 4 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.750% 06/01/29 4.7% ------------------------------------------------- 5 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1992A, 5.800% 07/01/07 4.2% ------------------------------------------------- 6 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation -- Saturn Corporation Project) Series 1994, 6.500% 09/01/24 3.6% ------------------------------------------------- 7 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 4.800% 12/01/10 3.4% ------------------------------------------------- 8 Maryland State, State and Local Facilities Loan GO, Series 2000, 5.750% 08/01/11 2.9% ------------------------------------------------- 9 Harford County, Maryland, GO, Series 1997, 5.500% 12/01/07 2.8% ------------------------------------------------- 10 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 2000A, 5.250% 10/01/11 2.7% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 51 56 NATIONS MARYLAND MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (11/4/93 through 3/31/01) 5.13% 4.43%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Maryland Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS MARYLAND MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $13,788 $15,305 ------------------------------- --------------------------- Nov. 4 1993 9525 10000 1993 9767 10121 8993 9565 9034 9671 9015 9737 1994 8863 9598 9580 10277 9794 10524 10044 10826 1995 10551 11273 10319 11138 10384 11223 10619 11480 1996 10868 11773 10832 11744 11167 12150 11514 12515 1997 11846 12854 11960 13002 12110 13200 12458 13605 1998 12499 13687 12523 13809 12296 13565 12257 13511 1999 12198 13406 12462 13799 12621 14007 12939 14346 2000 13506 14973 Mar. 31 2000 13788 15305
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS MARYLAND MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $14,477 $15,305 ------------------------------- --------------------------- Nov. 4 1993 10000 10000 1993 10254 10121 9442 9565 9484 9671 9464 9737 1994 9305 9598 10057 10277 10283 10524 10545 10826 1995 11077 11273 10834 11138 10902 11223 11148 11480 1996 11410 11773 11373 11744 11724 12150 12089 12515 1997 12437 12854 12556 13002 12714 13200 13079 13605 1998 13122 13687 13147 13809 12909 13565 12868 13511 1999 12806 13406 13083 13799 13252 14007 13586 14346 2000 14181 14973 Mar. 31 2000 14477 15305
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 9/20/94 11/4/93 10/21/93 11/3/94 ------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 10.90% 10.62% 5.32% 9.80% 5.80% 9.69% 8.69% ------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 5.09% 4.85% 3.15% 4.12% 3.19% 4.07% 4.07% 5 YEARS 6.20% 5.97% 4.94% 5.28% 5.12% 5.34% 5.34% SINCE INCEPTION 6.87% 5.13% 4.43% 4.17% 4.17% 6.92% 6.92%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 52 57 NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of North Carolina municipal securities, we aim exempt from federal and North to limit the Fund's exposure to any single credit or market Carolina state income taxes sector. In addition, we use a combination of investment consistent with moderate strategies, including duration management (managing the fluctuation of principal. Fund's sensitivity to interest rates), market sector PERFORMANCE REVIEW selection and individual credit reviews. We also seek to For the 12-month period ended limit the distribution of capital gains when appropriate. As March 31, 2001, Nations North an intermediate-term portfolio, the Fund seeks to maintain Carolina Intermediate Municipal an average dollar-weighted maturity of between three and ten Bond Fund Investor A Shares years and a duration of between three and six years. provided shareholders with a total PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** return of 8.34%.** With a total return of 8.34%, Nations North Carolina Intermediate Municipal Bond Fund (Investor A Shares) slightly underperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group, which was offset by an overweighting in health care and industrial revenue issues which underperformed. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN NORTH CAROLINA? The state of North Carolina has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). Some of the factors that are encompassed in these ratings are long-term diverse growth in the state's economy
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 53 58 NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued which has significantly reduced reliance on textiles and manufacturing. The most significant growth has occurred in three sectors: banking/finance, services and trade. However, other areas have participated in this growth such as the high technology industry in the Raleigh Research Triangle Park. Also reflected in these ratings are very strong financial performance. The state has a long-standing track record of successful financial management. Recently, there have been a series of one-time problems -- such as issues surrounding lawsuit settlements and increased Medicaid expenses. In response to these challenges the Governor has taken aggressive action. We believe these actions will ultimately prove adequate to keep finances strong for the long term. WHAT IS YOUR OUTLOOK FOR NORTH CAROLINA AND THE MUNICIPAL BOND MARKET? Paying for infrastructure such as roads, water and sewer facilities by the state and its local governments without damaging financial operations remains a concern. Of particular importance is the continued funding of education in order to attract new employees from out of state. Due to very low unemployment rates in the state, it is important to maintain this steady flow of workers into the state and provide training for the current labor pool. Based on past performance of the economy and the state and its local government units, we believe that these goals can be largely achieved going forward. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
54 59 NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] 2.4% Electric 3.7% Industrial development revenue/Pollution control revenue 4.8% Education 5.0% Water 6.1% Lease 10.0% Housing 12.3% Prerefunded 17.6% Hospital 32.7% General Obligation 5.4% Other
TOP 10 HOLDINGS ------------------------------------------------- 1 North Carolina State, GO, Series 2001A, 4.750% 03/01/14 2.6% ------------------------------------------------- 2 Orange County, North Carolina, GO, Series 2000, 5.300% 04/01/18 2.5% ------------------------------------------------- 3 Charlotte-Mecklenburg Hospital Authority, Revenue, (Carolinas Healthcare System Project) Series 1997A, 5.125% 01/15/22 2.2% ------------------------------------------------- 4 North Carolina State, GO, Series 1997A, 5.100% 03/01/06 2.2% ------------------------------------------------- 5 North Carolina, Housing Finance Agency, Single-Family Housing Revenue, (Home Ownership Project) Series 1998A-1, AMT, 5.350% 01/01/17 2.1% ------------------------------------------------- 6 University of North Carolina, University Utilities Systems Revenue Refunding, Series 1993, 5.200% 08/01/06 1.9% ------------------------------------------------- 7 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 1.7% ------------------------------------------------- 8 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 1.6% ------------------------------------------------- 9 North Carolina, Medical Care Commission, Health Care Facilities Revenue Refunding, (Presbyterian Health Care Services Project) Series 1993, 5.500% 10/01/14 1.6% ------------------------------------------------- 10 North Carolina, Housing Financing Agency, Series 1999A-5, AMT, 5.550% 01/01/19 1.5% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 55 60 NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (12/14/92 through 3/31/01) 5.25% 4.83%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations North Carolina Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND $14,786 INDEX $16,502 -------------------------------- ---------------------------- Dec. 14 1992 9675 10000 1992 9703 10082 10020 10405 10314 10693 10631 11003 1993 10701 11136 10265 10716 10320 10829 10368 10933 1994 10243 10828 10835 11397 11090 11721 11371 12055 1995 11668 12359 11570 12314 11628 12369 11847 12590 1996 12094 12898 12062 12884 12395 13238 12687 13592 1997 12942 13888 13048 14058 13185 14221 13530 14672 1998 13609 14764 13675 14889 13453 14636 13447 14756 1999 13392 14743 13650 14978 13791 15222 14069 15569 2000 14504 16084 Mar. 31 2001 14786 16502
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND $15,288 INDEX $16,502 -------------------------------- ---------------------------- Dec. 14 1992 10000 10000 10028 10082 10357 10405 10660 10693 10988 11003 1993 11060 11136 10610 10716 10666 10829 10716 10933 10587 10828 11199 11397 11463 11721 11753 12055 1995 12060 12359 11958 12314 12018 12369 12245 12590 12500 12898 12468 12884 12812 13238 13113 13592 1997 13376 13888 13486 14058 13628 14221 13985 14672 14066 14764 14135 14889 13906 14636 13899 14756 1999 13842 14743 14109 14978 14259 15222 14547 15569 2000 14996 16084 Mar. 31 2001 15288 16502
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 12/11/92 12/14/92 6/7/93 12/16/92 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.61% 8.34% 4.85% 7.54% 4.54% 7.54% 6.54% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.50% 4.27% 3.12% 3.57% 3.26% 3.53% 3.53% 5 YEARS 5.26% 5.03% 4.34% 4.44% 4.44% 4.42% 4.42% SINCE INCEPTION 5.47% 5.25% 4.83% 4.41% 4.41% 4.73% 4.73%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 56 61 NATIONS NORTH CAROLINA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS NORTH CAROLINA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of North Carolina municipal securities, we aim exempt from federal and North to limit the Fund's exposure to any single credit or market Carolina state income taxes with sector. In addition, we use a combination of investment the potential for principal strategies, including duration management (managing the fluctuation associated with Fund's sensitivity to interest rates), market sector investments in long-term municipal selection and individual credit reviews. We also seek to securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations North duration of more than six years. Carolina Municipal Bond Fund PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Investor A Shares provided With a total return of 9.88%, Nations North Carolina shareholders with a total return Municipal Bond Fund (Investor A Shares) modestly of 9.88%.** underperformed its peer group, the Lipper North Carolina Municipal Debt Funds Average, which returned 9.93% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group while credit spreads widened on its health care and industrial revenue positions. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN NORTH CAROLINA? The state of North Carolina has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). Some of the factors that are encompassed in these ratings are long-term diverse growth in the state's economy
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper North Carolina Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in North Carolina. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 57 62 NATIONS NORTH CAROLINA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued which has significantly reduced reliance on textiles and manufacturing. The most significant growth has occurred in three sectors: banking/finance, services and trade. However, other areas have participated in this growth such as the high technology industry in the Raleigh Research Triangle Park. Also reflected in these ratings are very strong financial performance. The state has a long-standing track record of successful financial management. Recently, there have been a series of one-time problems -- such as issues surrounding lawsuit settlements and increased Medicaid expenses. In response to these challenges the Governor has taken aggressive action. We believe these actions will ultimately prove adequate to keep finances strong for the long term. WHAT IS YOUR OUTLOOK FOR NORTH CAROLINA AND THE MUNICIPAL BOND MARKET? Paying for infrastructure such as roads, water and sewer facilities by the state and its local governments without damaging financial operations remains a concern. Of particular importance is the continued funding of education in order to attract new employees from out of state. Due to very low unemployment rates in the state, it is important to maintain this steady flow of workers into the state and provide training for the current labor pool. Based on past performance of the economy and the state and its local government units we believe that these goals can be largely achieved going forward. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
58 63 NATIONS NORTH CAROLINA MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] General obligation 29.3 Other 2.2 Industrial development revenue/Pollution control revenue 19.1 Hospital 11.7 Prerefunded 10 Water 9.8 Lease 7.6 Electric 5 Housing 2.9 Education 2.4
TOP 10 HOLDINGS ------------------------------------------------- 1 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/15 5.0% ------------------------------------------------- 2 Mecklenburg County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Fluor Corporation Project) Series 1993, 5.250% 12/01/09 4.9% ------------------------------------------------- 3 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 4.5% ------------------------------------------------- 4 Charlotte, North Carolina, GO, Series 2000, 5.500% 06/01/12 4.2% ------------------------------------------------- 5 Onslow County, North Carolina, Combined Enterprise Systems, Revenue, Series 1994, (MBIA Insured), 5.875% 06/01/09 3.9% ------------------------------------------------- 6 Greensboro, North Carolina, Enterprise Systems Revenue, Series 1998A, 5.500% 06/01/08 3.4% ------------------------------------------------- 7 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Pitt County Memorial Hospital Project) Series 1998B, 4.750% 12/01/28 3.2% ------------------------------------------------- 8 North Carolina, Housing Finance Agency, Revenue, (Home Ownership Project) Series 1998A-2, AMT, 5.200% 01/01/20 2.9% ------------------------------------------------- 9 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Gaston Memorial Hospital Project) Series 1995, (AMBAC-TCRS Insured), 5.250% 02/15/07 2.9% ------------------------------------------------- 10 Mecklenburg County, North Carolina, GO Refunding, Series 1993, 6.000% 04/01/11 2.7% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 59 64 NATIONS NORTH CAROLINA MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (11/1/93 through 3/31/01) 4.91% 4.22%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations North Carolina Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND LEHMAN MUNICIPAL BOND INDEX -------------------------------- --------------------------- Nov. 1 1993 9525 10000 1993 9673 10121 8919 9565 8931 9671 8923 9737 1994 8781 9598 9518 10277 9737 10524 9980 10826 1995 10550 11273 10282 11138 10328 11223 10575 11480 1996 10814 11773 10758 11744 11114 12150 11461 12515 1997 11771 12854 11903 13002 12072 13200 12424 13605 1998 12473 13687 12520 13809 12280 13565 12176 13511 1999 12047 13406 12369 13799 12488 14007 12794 14346 2000 13293 14973 Mar. 31 2001 13588 15305
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND LEHMAN MUNICIPAL BOND INDEX -------------------------------- --------------------------- Nov. 1 1993 10000 10000 1993 10155 10121 9364 9565 9375 9671 9365 9737 1994 9219 9598 9993 10277 10223 10524 10477 10826 1995 11076 11273 10794 11138 10843 11223 11102 11480 1996 11353 11773 11294 11744 11668 12150 12033 12515 1997 12358 12854 12486 13002 12674 13200 13044 13605 1998 13095 13687 13145 13809 12893 13565 12784 13511 1999 12649 13406 12987 13799 13114 14007 13436 14346 2000 13959 14973 Mar. 31 2001 14270 15305
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 1/11/94 11/1/93 10/21/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 10.15% 9.88% 4.71% 9.06% 5.06% 9.18% 8.18% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.76% 4.53% 2.84% 3.80% 2.87% 3.79% 3.79% 5 YEARS 5.97% 5.74% 4.72% 5.06% 4.89% 5.13% 5.13% SINCE INCEPTION 5.00% 4.91% 4.22% 4.21% 4.21% 6.96% 6.96%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 60 65 NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management Team of Banc of America Capital The Fund balances its investments between high quality, Management, Inc., investment investment grade issues through which it seeks to reduce sub-adviser to the Fund. credit and liquidity risk and lower quality, investment grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of South Carolina municipal securities, we aim exempt from federal and South to limit the Fund's exposure to any single credit or market Carolina state income taxes sector. In addition, we use a combination of investment consistent with moderate strategies, including duration management (managing the fluctuation of principal. Fund's sensitivity to interest rates), market sector selection and individual credit reviews. We also seek to PERFORMANCE REVIEW limit the distribution of capital gains when appropriate. As For the 12-month period ended an intermediate-term portfolio, the Fund seeks to maintain March 31, 2001, Nations South an average dollar-weighted maturity of between three and ten Carolina Intermediate Municipal years and a duration of between three and six years. Bond Fund Investor A Shares provided shareholders with a total PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** return of 8.58%.** With a total return of 8.58%, Nations South Carolina Intermediate Municipal Bond Fund (Investor A Shares) slightly underperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the 12-month period ended March 31, 2001. The Fund benefited by having a moderately longer duration than its peer group, which was offset by an overweighting in health care and industrial revenue issues which underperformed. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN SOUTH CAROLINA? The state of South Carolina has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), Standard & Poor's Corporation "AAA", and Fitch IBCA, Inc. "AAA". South Carolina has been consistently diversifying its economy by reducing its reliance on textile manufacturing and
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 61 66 NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued agriculture. The state has been a participant in the overall growth of the southeast region. Contributing to this growth has been a low cost of living and low wages which have served to attract manufacturing employment. A recent development in the state that relates to credit is the recent sale of about $900 million in Tobacco MSA (Master Settlement Agreement) Bonds, the proceeds of which represent a new source of money for infrastructure/quality of life spending. We view this as a positive development, as this will be new money that will not have to be repaid by the state directly, since the funds for debt service will come from major tobacco companies through the MSA. Major uses of these funds are senior citizens prescription drug benefits, water and wastewater projects and other local projects administered by the Office of Local Government of the Division of Regional Development of the Budget and Control Board. A key credit strength, in our opinion, is the high level of diversity in the state's economy. The four largest sectors, by employment, are manufacturing at 18.2%, services 25.1%, government 17.0% and wholesale and retail trade at 23.9%. This is a good level of diversification, which limits vulnerability to any one sector. In addition, the construction sector makes up 6.2% indicating that this sector is doing well with positive implications long term for other economic sectors as new infrastructure will be coming "on-line" leading to further economic activity. The state has also historically maintained very conservative debt levels with the per capita amount of $461 being extremely low. An additional credit strength is South Carolina's history of sound financial management. The state's fiscal 1999 general fund operating surplus was $191 million and for 2000 this operating surplus was $55.3 million. This increased the total general fund balance for 2000 to $421.4 million or 6.9% of expenditures. This is a very high level for a state to achieve and should provide a strong cushion during a recession. WHAT IS YOUR OUTLOOK FOR SOUTH CAROLINA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? An important challenge for the state and its local government units is to bolster education. This would serve many purposes but from an economic standpoint it would provide trained workers for a low unemployment economy and serve as an inducement to workers to relocate from other areas. A well-educated and trained work force will further aid in diversifying the state's economy. Another challenge is to maintain tight control of finances and to insure the maintenance of adequate financial reserves to help weather a recession. We believe the state will largely achieve these goals over the long term. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable
62 67 NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
63 68 NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Education 1.7 Transportation 2.3 Prerefunded 4.6 Housing 4.9 Water 20.7 Electric 9.5 Other 1.3 General obligation 23.3 Hospital 22.4 Industrial development revenue/Pollution control revenue 9.3
TOP 10 HOLDINGS ------------------------------------------------- 1 Charleston, South Carolina, Waterworks and Sewer Capital Improvement Revenue Refunding, Series 1998, (FGIC Insured), 4.500% 01/01/24 3.5% ------------------------------------------------- 2 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (South Carolina Baptist Hospital Project) Series 1993, (AMBAC Insured), 5.450% 08/01/15 2.7% ------------------------------------------------- 3 South Carolina State, Capital Improvement GO, Series 1996A, 3.500% 07/01/06 2.5% ------------------------------------------------- 4 Columbia, South Carolina, Waterworks and Sewer Systems Revenue Refunding, Series 1993, 5.500% 02/01/09 2.4% ------------------------------------------------- 5 Richland County, South Carolina, School District Number 1, GO, Series 1996, (SCSDE), 4.625% 03/01/22 2.3% ------------------------------------------------- 6 Charleston, South Carolina, Waterworks and Sewer Capital Improvement Revenue Refunding, Series 1998, 5.250% 01/01/08 2.2% ------------------------------------------------- 7 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 2.1% ------------------------------------------------- 8 Lexington County, South Carolina, Health Services District, Revenue Refunding, Series 1997, (FSA Insured), 5.125% 11/01/21 2.0% ------------------------------------------------- 9 South Carolina State, Housing Finance and Development Authority, Revenue Refunding, Series 1992A, (FNMA/FHA COLL), 6.800% 11/15/11 1.9% ------------------------------------------------- 10 South Carolina State, Port Authority, Revenue, Series 1998, AMT, (FSA Insured), 5.250% 07/01/13 1.9% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 64 69 NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (5/5/92 through 3/31/01) 5.61% 5.21%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations South Carolina Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND $15,719 INDEX $17,543 -------------------------------- ---------------------------- May 5 1992 9675 10000 9882 10264 10097 10545 1992 10252 10718 10579 11061 10841 11368 11148 11697 1993 11262 11839 10865 11392 10931 11512 11005 11623 1994 10912 11511 11477 12116 11758 12461 12020 12816 1995 12378 13139 12277 13091 12328 13149 12577 13384 1996 12844 13712 12830 13697 13149 14074 13412 14450 1997 13693 14765 13812 14945 13986 15118 14342 15597 1998 14421 15696 14504 15829 14292 15560 14267 15688 1999 14231 15673 14484 15923 14651 16182 14941 16551 2000 15425 17099 Mar. 31 2001 15719 17543
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND $16,255 INDEX $17,543 -------------------------------- ---------------------------- May 5 1992 10000 10000 10214 10264 10437 10545 1992 10596 10718 10934 11061 11206 11368 11523 11697 1993 11640 11839 11233 11392 11298 11512 11376 11623 1994 11278 11511 11862 12116 12153 12461 12424 12816 1995 12794 13139 12689 13091 12740 13149 13000 13384 1996 13275 13712 13261 13697 13591 14074 13863 14450 1997 14153 14765 14276 14945 14456 15118 14824 15597 1998 14906 15696 14991 15829 14772 15560 14746 15688 1999 14709 15673 14970 15923 15150 16182 15449 16551 2000 15948 17099 Mar. 31 2001 16255 17543
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 1/6/92 5/5/92 6/8/93 6/17/92 ------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.85% 8.58% 5.10% 7.78% 4.78% 7.78% 6.78% ------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.66% 4.42% 3.29% 3.72% 3.41% 3.68% 3.68% 5 YEARS 5.30% 5.08% 4.40% 4.49% 4.49% 4.47% 4.47% SINCE INCEPTION 5.76% 5.61% 5.21% 4.52% 4.52% 4.96% 4.96%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 65 70 NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of South Carolina municipal securities, we aim exempt from federal and South to limit the Fund's exposure to any single credit or market Carolina state income taxes with sector. In addition, we use a combination of investment the potential for principal strategies, including duration management (managing the fluctuation associated with Fund's sensitivity to interest rates), market sector investments in long-term municipal selection and individual credit reviews. We also seek to securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations South duration of more than six years. Carolina Municipal Bond Fund PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Investor A Shares provided With a total return of 10.52%, Nations South Carolina shareholders with a total return Municipal Bond Fund (Investor A Shares) outperformed its of 10.52%.** peer group, the Lipper South Carolina Municipal Debt Funds Average, which returned 10.11% for the 12-month period ended March 31, 2001. The Fund benefited from a longer duration stance than its peers in a declining interest rate environment. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN SOUTH CAROLINA? The state of South Carolina has earned the highest possible credit rating from Moody's Investors Services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). South Carolina has been consistently diversifying its economy by reducing its reliance on textile manufacturing and agriculture. The state has been a participant in the overall growth of the southeast
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper South Carolina Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in South Carolina. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 66 71 NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued region. Contributing to this growth has been a low cost of living and low wages which have served to attract manufacturing employment. A recent development in the state that relates to credit is the recent sale of about $900 million in Tobacco MSA (Master Settlement Agreement) Bonds, the proceeds of which represent a new source of money for infrastructure/quality of life spending. We view this as a positive development, as this will be new money that will not have to be repaid by the state directly, since the funds for debt service will come from major tobacco companies through the MSA. Major uses of these funds are senior citizens prescription drug benefits, water and wastewater projects and other local projects administered by the Office of Local Government of the Division of Regional Development of the Budget and Control Board. A key credit strength, in our opinion, is the high level of diversity in the state's economy. The four largest sectors, by employment, are manufacturing at 18.2%, services 25.1%, government 17.0% and wholesale and retail trade at 23.9%. This is a good level of diversification, which limits vulnerability to any one sector. In addition, the construction sector makes up 6.2% indicating that this sector is doing well with positive implications long term for other economic sectors as new infrastructure will be coming "on-line" leading to further economic activity. The state has also historically maintained very conservative debt levels with the per capita amount of $461 being extremely low. An additional credit strength is South Carolina's history of sound financial management. The state's fiscal 1999 general fund operating surplus was $191 million and for 2000 this operating surplus was $55.3 million. This increased the total general fund balance for 2000 to $421.4 million or 6.9% of expenditures. This is a very high level for a state to achieve and should provide a strong cushion during a recession. WHAT IS YOUR OUTLOOK FOR SOUTH CAROLINA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? An important challenge for the state and its local government units is to bolster education. This would serve many purposes but from an economic standpoint it would provide trained workers for a low unemployment economy and serve as an inducement to workers to relocate from other areas. A well-educated and trained work force will further aid in diversifying the state's economy. Another challenge is to maintain tight control of finances and to insure the maintenance of adequate financial reserves to help weather a recession. We believe the state will largely achieve these goals over the long term. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable
67 72 NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
68 73 NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Industrial development revenue/Pollution control revenue 25.60 Water 22.30 Other 0.80 Hospital 26.60 Electric 11.20 General obligation 7.70 Transportation 2.90 Education 2.90
TOP 10 HOLDINGS ------------------------------------------------- 1 Columbia, South Carolina, Waterworks and Sewer Systems Revenue, Series 1991, 3.740% 02/01/03 7.1% ------------------------------------------------- 2 Spartanburg, South Carolina, Sanitary Sewer District, Sewer System Revenue Refunding, Series 1999B, (MBIA Insured), 5.000% 03/01/26 6.2% ------------------------------------------------- 3 South Carolina State, Public Service Authority, Revenue, Series 1999A, (MBIA Insured), 5.625% 01/01/13 6.2% ------------------------------------------------- 4 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Series 1999, (FSA Insured), 5.300% 02/01/14 5.9% ------------------------------------------------- 5 Greenville, South Carolina, Hospital Facilities Revenue, Series 1996B, (GTY AGMT), 5.250% 05/01/23 5.6% ------------------------------------------------- 6 Georgetown County, South Carolina, PCR Refunding, (International Paper Company Project) Series 1999A, 5.125% 02/01/12 5.5% ------------------------------------------------- 7 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24 5.3% ------------------------------------------------- 8 Darlington County, South Carolina, IDR, (Nucor Corporation Project) Series 1993A, AMT, 5.750% 08/01/23 5.0% ------------------------------------------------- 9 South Carolina State, Capital Improvement, GO, Series 2001A, 3.500% 01/01/16 4.8% ------------------------------------------------- 10 Medical University, South Carolina, Hospital Facilities Revenue, Series 1999 5.500% 07/01/09 4.7% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 69 74 NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (11/8/93 through 3/31/01) 5.52% 4.83%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations South Carolina Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS SOUTH CAROLINA MUNICIPAL LEHMAN MUNICIPAL BOND INDEX BOND FUND $14,172 $15,305 -------------------------------- --------------------------- Nov. 8 1993 9525 10000 1993 9753 10121 9199 9565 9241 9671 9244 9737 1994 9144 9598 9863 10277 10109 10524 10390 10826 1995 10918 11273 10688 11138 10773 11223 11029 11480 1996 11274 11773 11234 11744 11598 12150 11897 12515 1997 12224 12854 12336 13002 12537 13200 12885 13605 1998 12867 13687 12943 13809 12680 13565 12569 13511 1999 12427 13406 12821 13799 12965 14007 13306 14346 2000 13869 14973 Mar. 31 2001 14172 15305
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS SOUTH CAROLINA MUNICIPAL LEHMAN MUNICIPAL BOND INDEX BOND FUND $14,875 $15,305 -------------------------------- --------------------------- Nov. 8 1993 10000 10000 10239 10121 9657 9565 9702 9671 9705 9737 1994 9600 9598 10355 10277 10613 10524 10908 10826 1995 11463 11273 11221 11138 11310 11223 11579 11480 1996 11637 11773 11794 11744 12176 12150 12490 12515 1997 12834 12854 12951 13002 13162 13200 13528 13605 1998 13509 13687 13588 13809 13312 13565 13195 13511 1999 13046 13406 13459 13799 13608 14007 13967 14346 2000 14557 14973 Mar. 31 2001 14875 15305
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 12/27/93 11/8/93 10/21/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 10.90% 10.52% 5.23% 9.80% 5.80% 9.80% 8.80% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 5.00% 4.73% 3.05% 4.03% 3.10% 4.00% 4.00% 5 YEARS 6.05% 5.80% 4.77% 5.14% 4.97% 5.20% 5.20% SINCE INCEPTION 5.54% 5.52% 4.83% 4.68% 4.68% 6.97% 6.97%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 70 75 NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Tennessee municipal securities, we aim to exempt from federal income tax and limit the Fund's exposure to any single credit or market the Tennessee Hall Income Tax on sector. In addition, we use a combination of investment unearned income consistent with strategies, including duration management (managing the moderate fluctuation of principal. Fund's sensitivity to interest rates), market sector PERFORMANCE REVIEW selection and individual credit reviews. We also seek to For the 12-month period ended limit the distribution of capital gains when appropriate. As March 31, 2001, Nations Tennessee an intermediate-term portfolio, the Fund seeks to maintain Intermediate Municipal Bond Fund an average dollar-weighted maturity of between three and ten Investor A Shares provided years and a duration of between three and six years. shareholders with a total return PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** of 9.25%**. With a total return of 9.25%, Nations Tennessee Intermediate Municipal Bond Fund (Investor A Shares) outperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the 12-month period ended March 31, 2001. The Fund benefited from a longer duration than its peer group and a significant number of non-callable bonds, which typically outperform in declining rate environments. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TENNESSEE? The state of Tennessee is rated "Aa1" by Moody's Investors Services, Inc. and "AA+" by Standard & Poor's Corporation. However, the state's ratings are currently under some pressure, in our opinion, due to its financial performance. Financial pressures have recently surfaced -- for example, the general fund experienced an operating deficit in fiscal year 1999. A series of "one-shots" (one
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 71 76 NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued time or non-recurring sources of revenue) were used to close the gap. A surplus of about $51 million is currently expected for fiscal year 2000 -- this surplus is after a small shortfall in expected sales tax collections. Again, these results were in part achieved by resorting to "one shots." Currently, the state has balanced its budget estimates for fiscal year 2001. However, financial pressures are ongoing due to programs such as TennCare (state Medicaid equivalent), education and salary increases for state employees. The state is currently considering alternatives such as tax reform, a tax on personal incomes, as well as expenditure and program cuts to restore the state to a long-term balanced budget. The Governor has also established a committee to examine TennCare. This committee is expected to report in 2001. The state economy remains fundamentally strong with low unemployment and stable and diversified growth. Recent unemployment rates have been in the low 4% range -- a good performance. The leading sectors in the state's economy, by employment, are wholesale and retail trade at 23.7%, manufacturing at 18.1%, services at 27.2% and government at 14.5%. This is a good level of diversification, which helps insure that the state's economy is not over reliant on any one sector. Another positive trend in the state's economy is an ongoing long-term trend away from textile and apparel manufacturing into services trade and durable manufacturing, i.e., automobiles. This trend has improved economic diversification and made the state's economy less vulnerable to recessions. The fundamental strength in the economy is, in our opinion, an important credit strength and we believe the state will remain a high quality credit in the long term. WHAT IS YOUR OUTLOOK FOR TENNESSEE AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? In the short term, the state must re-establish revenue and spending levels that will produce a balance budget. In the long run the state must maintain these fiscal practices and continue to experience stable diversified economic growth. In our opinion, the state should be able to meet these challenges. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
72 77 NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Prerefunded 1.1 Resource recovery 2.2 Education 2.9 Electric 5.4 Water 5.7 General obligation 28.7 Other 1.5 Hospital 23.5 Housing 15.5 Industrial development revenue/Pollution control revenue 13.5
TOP 10 HOLDINGS ------------------------------------------------- 1 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation - Saturn Corporation Project) Series 1994, 6.500% 09/01/24 5.5% ------------------------------------------------- 2 Memphis, Tennessee, GO, Series 2000, 5.000% 04/01/17 4.4% ------------------------------------------------- 3 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (St. Jude's Childrens Research Project) Series 1999, 5.375% 07/01/24 4.1% ------------------------------------------------- 4 Tennessee, Housing Development Agency, Homeownership Revenue, Series 1997-3A, AMT, 4.750% 01/01/08 3.8% ------------------------------------------------- 5 Rutherford County, Tennessee, Public Improvement GO, Series 1996, 6.000% 04/01/06 3.7% ------------------------------------------------- 6 McMinn County, Tennessee, Industrial Development Board, PCR Refunding, (Bowater Inc. Project) Series 1991, 6.850% 04/01/01 3.7% ------------------------------------------------- 7 Chattanooga-Hamilton County, Tennessee, Hospital Authority, Revenue Refunding, (Erlanger Medical Center Project) Series 1993, (FSA Insured), 5.375% 10/01/04 3.7% ------------------------------------------------- 8 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1998B, 5.500% 05/15/13 3.6% ------------------------------------------------- 9 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 3.5% ------------------------------------------------- 10 Memphis, Tennessee, Water Division, Revenue Refunding, Series 1992, 5.900% 01/01/04 3.3% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 73 78 NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (4/2/93 through 3/31/01) 4.95% 4.51%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Tennessee Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS TENNESSEE INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $14,228 INDEX $15,860 ------------------------------ ---------------------------- Apr. 2 1993 9675 10000 9900 10277 10205 10575 1993 10326 10703 9889 10299 9956 10408 9998 10508 1994 9846 10407 10413 10954 10657 11265 10892 11586 1995 11218 11878 11141 11835 11194 11888 11386 12100 1996 11636 12397 11623 12383 11914 12724 12172 13063 1997 12416 13348 12526 13511 12663 13668 12997 14101 1998 13061 14190 13147 14310 12945 14067 12919 14183 1999 12870 14170 13029 14395 13174 14630 13433 14963 2000 13886 15459 Mar. 31 2001 14228 15860
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS TENNESSEE INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND MUNICIPAL BOND FUND $14,712 INDEX $15,860 ------------------------------ ---------------------------- Apr. 2 1993 10000.00 10000.00 10233.00 10277.00 10548.00 10575.00 1993 10673.00 10703.00 10221.00 10299.00 10291.00 10408.00 10334.00 10508.00 1994 10177.00 10407.00 10763.00 10954.00 11015.00 11265.00 11258.00 11586.00 1995 11595.00 11878.00 11515.00 11835.00 11570.00 11888.00 11768.00 12100.00 1996 12027.00 12397.00 12014.00 12383.00 12314.00 12724.00 12581.00 13063.00 1997 12833.00 13348.00 12947.00 13511.00 13088.00 13668.00 13434.00 14101.00 1998 13600.00 14190.00 13589.00 14310.00 13380.00 14067.00 13353.00 14183.00 1999 13302.00 14170.00 13467.00 14395.00 13622.00 14630.00 13889.00 14963.00 2000 14357.00 15459.00 Mar. 31 2001 14712.00 15860.00
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 4/13/93 4/2/93 6/10/93 11/3/94 ------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 9.53% 9.25% 5.73% 8.44% 5.44% 8.46% 7.46% ------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.59% 4.36% 3.21% 3.65% 3.34% 3.50% 3.50% 5 YEARS 5.25% 5.02% 4.33% 4.43% 4.43% 4.37% 4.37% SINCE INCEPTION 5.09% 4.95% 4.51% 4.42% 4.42% 5.53% 5.53%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 74 79 NATIONS TENNESSEE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS TENNESSEE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Tennesse municipal securities, we aim to exempt from federal income tax and limit the Fund's exposure to any single credit or market the Tennessee Hall Income Tax on sector. In addition, we use a combination of investment unearned income with the potential strategies, including duration management (managing the for principal fluctuation Fund's sensitivity to interest rates), market sector associated with investments in selection and individual credit reviews. We also seek to long-term municipal securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations Tennessee duration of more than six years. Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Shares provided shareholders with With a total return of 10.82%, Nations Tennessee Municipal a total return of 10.82%.** Bond Fund (Investor A Shares) significantly outperformed its peer group, the Lipper Tennessee Municipal Debt Funds Average, which returned 9.81% for the 12-month period ended March 31, 2001. The Fund benefited from a longer duration than its peer group and a significant number of non-callable bonds, which typically outperform in declining rate environments. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TENNESSEE? The state of Tennessee is rated "Aa1" by Moody's Investors Services, Inc. and "AA+" by Standard & Poor's Corporation. However, the state's ratings are currently under some pressure, in our opinion, due to its financial performance. Financial pressures have recently surfaced -- for example, the general fund
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Tennessee Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in Tennessee. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 75 80 NATIONS TENNESSEE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued experienced an operating deficit in fiscal year 1999. A series of "one-shots" (one time or non-recurring sources of revenue) were used to close the gap. A surplus of about $51 million is currently expected for fiscal year 2000 -- this surplus is after a small shortfall in expected sales tax collections. Again, these results were in part achieved by resorting to "one shots". Currently, the state has balanced its budget estimates for fiscal year 2001. However, financial pressures are ongoing due to programs such as TennCare (state Medicaid equivalent), education and salary increases for state employees. The state is currently considering alternatives such as tax reform; a tax on personal incomes as well as expenditure and program cuts to restore the state to a long-term balanced budget. The Governor has also established a committee to examine TennCare. This committee is expected to report in 2001. The state economy remains fundamentally strong with low unemployment and stable and diversified growth. Recent unemployment rates have been in the low 4% range -- a good performance. The leading sectors in the state's economy, by employment, are wholesale and retail trade at 23.7%, manufacturing at 18.1%, services at 27.2% and government at 14.5%. This is a good level of diversification, which helps insure that the state's economy is not over reliant on any one sector. Another positive trend in the state's economy is an ongoing long-term trend away from textile and apparel manufacturing into services trade and durable manufacturing, i.e., automobiles. This trend has improved economic diversification and made the state's economy less vulnerable to recessions. The fundamental strength in the economy is, in our opinion, an important credit strength and we believe the state will remain a high quality credit in the long term. WHAT IS YOUR OUTLOOK FOR TENNESSEE AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? In the short-term the state must re-establish revenue and spending levels that will produce a balance budget. In the long run the state must maintain these fiscal practices and continue to experience stable diversified economic growth. In our opinion, the state should be able to meet these challenges. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
76 81 NATIONS TENNESSEE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Prerefunded 2.8 Water 3.1 Electric 6.6 Housing 7 Education 8.8 Hospital 17.5 Other 10.7 General obligation 23 Industrial development revenue/Pollution control revenue 20.5
TOP 10 HOLDINGS ------------------------------------------------- 1 Hamilton County, Tennessee, GO Refunding, Series 1998B, 5.100% 08/01/24 7.2% ------------------------------------------------- 2 Humphreys County, Tennessee, Industrial Development Board, Solid Waste Disposal, (E.I. duPont de Nemours and Company Project) Series 1994, AMT, 6.700% 05/01/24 6.1% ------------------------------------------------- 3 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 5.5% ------------------------------------------------- 4 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation - Saturn Corporation Project) Series 1994, 6.500% 09/01/24 5.2% ------------------------------------------------- 5 Williamson County, Tennessee, GO, Series 2000, 5.350% 03/01/17 5.1% ------------------------------------------------- 6 Blount County, Tennessee, Public Building Authority, Public Facility Revenue, Series 1998, (FGIC Insured), 5.000% 04/01/19 4.8% ------------------------------------------------- 7 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities and Project Revenue Refunding, (Federal Express Corporation Project) Series 1997, 5.350% 09/01/12 4.8% ------------------------------------------------- 8 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (University Health Systems Inc. Project) Series 1999, 5.750% 04/01/19 4.7% ------------------------------------------------- 9 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1998B, 5.500% 05/15/13 4.2% ------------------------------------------------- 10 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 4.1% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 77 82 NATIONS TENNESSEE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (11/2/93 through 3/31/01) 5.42% 4.73%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Tennessee Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS TENNESSEE MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $14,087 $15,305 -------------------------------- --------------------------- Nov. 2 1993 9525 10000 1993 9692 10121 9071 9565 9133 9671 9156 9737 1994 9045 9598 9762 10277 9976 10524 10246 10826 1995 10782 11273 10592 11138 10650 11223 10889 11480 1996 11165 11773 11123 11744 11496 12150 11849 12515 1997 12175 12854 12262 13002 12434 13200 12819 13605 1998 12849 13687 12915 13809 12640 13565 12505 13511 1999 12367 13406 12710 13799 12864 14007 13192 14346 2000 13770 14973 Mar. 31 2001 14087 15305
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS TENNESSEE MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $14,087 $15,305 -------------------------------- --------------------------- Nov. 2 1993 9525 10000 1993 9692 10121 9071 9565 9133 9671 9156 9737 1994 9045 9598 9762 10277 9976 10524 10246 10826 1995 10782 11273 10592 11138 10650 11223 10889 11480 1996 11165 11773 11123 11744 11496 12150 11849 12515 1997 12175 12854 12262 13002 12434 13200 12819 13605 1998 12849 13687 12915 13809 12640 13565 12505 13511 1999 12367 13406 12710 13799 12864 14007 13192 14346 2000 13770 14973 Mar. 31 2001 14087 15305
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 3/2/94 11/2/93 10/21/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 11.10% 10.82% 5.59% 10.00% 6.00% 10.00% 9.00% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.96% 4.73% 3.04% 4.00% 3.06% 3.97% 3.97% 5 YEARS 6.09% 5.86% 4.84% 5.18% 5.02% 5.23% 5.23% SINCE INCEPTION 6.09% 5.42% 4.73% 4.59% 4.59% 7.06% 7.06%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 78 83 NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Texas municipal securities, we aim to limit exempt from federal income tax the Fund's exposure to any single credit or market sector. consistent with moderate In addition, we use a combination of investment strategies, fluctuation of principal. including duration management (managing the Fund's PERFORMANCE REVIEW sensitivity to interest rates), market sector selection and For the 12-month period ended individual credit reviews. We also seek to limit the March 31, 2001, Nations Texas distribution of capital gains when appropriate. As an Intermediate Municipal Bond Fund intermediate-term portfolio, the Fund seeks to maintain an Investor A Shares provided average dollar-weighted maturity of between three and ten shareholders with a total return years and a duration of between three and six years. of 8.52%.** PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** With a total return of 8.52%, Nations Texas Intermediate Municipal Bond Fund (Investor A Shares) slightly underperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the 12-month period ended March 31, 2001. This Fund's peer group is composed of single state funds from many states which have significant state taxes and thereby provide higher levels of demand for their in-state bonds. Texas, with no state income tax, coupled with a large supply of new issues during the period, underperformed as a state segment. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TEXAS? The state of Texas is currently rated "Aa1" by Moody's Investors Services, Inc., "AA" by Standard & Poor's Corporation and "AA+" by Fitch IBCA, Inc. Reflected in these ratings are a diverse economy showing long-term growth patterns, excellent financial performance and a manageable debt burden. Over the last ten to fifteen years the Texas economy has achieved a significant level of diversification away from the oil/gas sector which caused so much difficulty in the
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 79 84 NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued mid-80s. This new level of diversification is shown in the growth of the Maquiladora program in the Rio Grande River Valley, the high technology sector, medical and other services -- to name only a few examples. Careful financial management has allowed the state to produce significant cash surpluses over the last several years. The state closed fiscal year 1999 with a general fund cash balance of $4.3 billion and closed fiscal year 2000 with a lower general fund cash balance of $3.8 billion -- still a substantial number. A recent state Comptroller report estimated revenue growth for the 2001-2002 biennium (Texas uses a two year budget) at 8% and for the period 2002-2003 a slower, but still strong 6% rate. WHAT IS YOUR OUTLOOK FOR TEXAS AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key areas for the state of Texas and its local government units to deal with are Medicaid (mostly for prescription drugs), correctional facilities, education and transportation. These collective issues will have to be addressed without negatively impacting finances. However, the state's track record of accomplishing most of its goals, we believe, bears well for the future. For example after considerable spending by the state of Texas for these purposes the state of Texas per capita debt level is still relatively low. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
80 85 NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] General obligation 42.60 Other 3.10 Water 11.50 Electric 10.10 Hospital 10.00 Industrial development revenue/Pollution control revenue 8.50 Prerefunded 8.30 Transportation 2.90 Lease 1.80 Education 1.20
TOP 10 HOLDINGS ------------------------------------------------- 1 Texas, Municipal Power Agency, Revenue Refunding, Series 1993, (MBIA Insured), 5.250% 09/01/05 5.3% ------------------------------------------------- 2 Houston, Texas, Water and Sewer Systems Revenue, Junior Lien, Series 1996A, (FGIC Insured), 5.250% 12/01/25 3.4% ------------------------------------------------- 3 Houston, Texas, Water and Sewer Systems Revenue Refunding, Junior Lien, Series 1997A, (FGIC Insured), 5.375% 12/01/27 2.8% ------------------------------------------------- 4 North Central, Texas, Health Facilities Development Corporation, Revenue Refunding, (Baylor Health Care Systems Project) Series 1995, 5.500% 05/15/13 2.5% ------------------------------------------------- 5 Texas State, College Student Loan Authority, GO, Series 1997, (GTD STD LNS), AMT, 5.250% 08/01/07 2.5% ------------------------------------------------- 6 Red River Authority, Texas, PCR, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.875% 04/01/17 2.3% ------------------------------------------------- 7 Houston, Texas, Water and Sewer Systems Revenue, Unrefunded Balance, Prior Lien, Series 1992B, 5.900% 12/01/03 2.2% ------------------------------------------------- 8 Texas, Municipal Power Agency, Revenue Refunding, Series 1992, (MBIA Insured), Prerefunded 09/01/02 @ 102, 5.900% 09/01/04 2.2% ------------------------------------------------- 9 Austin, Texas, GO Refunding, Series 1993, 5.500% 09/01/04 2.1% ------------------------------------------------- 10 North Central Texas, Health Facilities Development Corporation, Health Facilities Revenue, (Presbyterian Healthcare Residential Project) Series 1996B, (MBIA Insured), 5.500% 06/01/16 1.8% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 81 86 NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (2/4/93 through 3/31/01) 4.89% 4.47%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Texas Intermediate Municipal Bond Fund from the inception of the share class. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND] Nations Texas Intermediate Municipal Bond Fund $14,281 Feb. 4 1993 9675 9770 9996 10269 1993 10365 9948 10053 10119 1994 10001 10489 10701 10946 1995 11271 11184 11216 11431 1996 11658 11650 11942 12228 1997 12464 12567 12698 13037 1998 13111 13166 12958 12967 1999 12927 13158 13320 13575 2000 13997 Mar. 31 2001 14281 Lehman 7-Year Municipal Bond Index $16,133 Feb. 4 1993 10000 10172 10454 10757 1993 10887 10477 10587 10688 1994 10586 11142 11459 11786 1995 12082 12039 12092 12308 1996 12610 12596 12942 13288 1997 13578 13743 13903 14344 1998 14434 14557 14309 14426 1999 14413 14643 14881 15221 2000 15724 Mar. 31 2001 16133
[INVESTOR A SHARES AT NAV** RETURN CHART] Nations Texas Intermediate Municipal Bond Fund $14,760 Feb. 4 1993 10000 10098 10332 10614 1993 10713 10282 10390 10458 1994 10337 10341 11080 11313 1995 11649 11580 11593 11815 1996 12060 12041 12343 12638 1997 12882 12989 13124 13475 1998 13552 13608 13393 13402 1999 13361 13600 13766 14030 2000 14466 Mar. 31 2001 14760 Lehman 7-Year Municipal Bond Index $14,643 Feb. 4 1993 10000 10172 10454 10757 1993 10887 10477 10587 10688 1994 10586 11142 11459 11786 1995 12082 12039 12092 12308 1996 12610 12596 12942 13288 1997 13578 13743 13903 14344 1998 14434 14557 14309 14426 1999 14413 14643 14881 15221 2000 15724 Mar. 31 2001 16133
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 1/12/93 2/4/93 6/22/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.78% 8.52% 4.95% 7.71% 4.71% 7.69% 6.69% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.59% 4.35% 3.22% 3.65% 3.34% 3.60% 3.60% 5 YEARS 5.24% 5.01% 4.32% 4.42% 4.42% 4.39% 4.39% SINCE INCEPTION 5.30% 4.89% 4.47% 4.27% 4.27% 5.43% 5.43%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 82 87 NATIONS TEXAS MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS TEXAS MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Texas municipal securities, we aim to limit exempt from federal income tax the Fund's exposure to any single credit or market sector. with the potential for principal In addition, we use a combination of investment strategies, fluctuation associated with including duration management (managing the Fund's investments in long-term municipal sensitivity to interest rates), market sector selection and securities. individual credit reviews. We also seek to limit the PERFORMANCE REVIEW distribution of capital gains when appropriate. As a For the 12-month period ended long-term portfolio, the Fund seeks to maintain an average March 31, 2001, Nations Texas dollar-weighted maturity greater than seven years and a Municipal Bond Fund Investor A duration of more than six years Shares provided shareholders with PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** a total return of 10.37%.** With a total return of 10.37%, Nations Texas Municipal Bond Fund (Investor A Shares) outperformed its peer group, the Lipper Texas Municipal Debt Funds Average, which returned 9.97% for the 12-month period ended March 31, 2001. The Fund benefited from a longer duration stance than its peers in a declining interest rate environment. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TEXAS? The state of Texas is currently rated "Aa1" by Moody's Investors Services, Inc., "AA" by Standard & Poor's Corporation and "AA+" by Fitch IBCA, Inc. Reflected in these ratings are a diverse economy showing long-term growth patterns, excellent financial performance and a manageable debt burden. Over the last ten to fifteen years the Texas economy has achieved a significant level of diversification away from the oil/gas sector which caused so much difficulty in the mid-80s. This new level of diversification is shown in the growth of the
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Texas Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in Texas. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 83 88 NATIONS TEXAS MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued Maquiladora program in the Rio Grande River Valley, the high technology sector, medical and other services -- to name only a few examples. Careful financial management has allowed the state to produce significant cash surpluses over the last several years. The state closed fiscal year 1999 with a general fund cash balance of $4.3 billion and closed fiscal year 2000 with a lower general fund cash balance of $3.8 billion -- still a substantial number. A recent state Comptroller report estimated revenue growth for the 2001 - 2002 biennium (Texas uses a two year budget) at 8% and for the period 2002 - 2003 a slower, but still strong 6% rate. WHAT IS YOUR OUTLOOK FOR TEXAS AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key areas for the state of Texas and its local government units to deal with are Medicaid (mostly for prescription drugs), correctional facilities, education and transportation. These collective issues will have to be addressed without negatively impacting finances. However, the state's track record of accomplishing most of its goals, we believe, bears well for the future. For example after considerable spending by the state of Texas for these purposes the state of Texas per capita debt level is still relatively low. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
84 89 NATIONS TEXAS MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] General obligation 42.50 Other 7.20 Prerefunded 19.80 Transportation 9.70 Industrial development revenue/Pollution control revenue 7.50 Education 6.50 Hospital 3.80 Water 3.00
TOP 10 HOLDINGS ------------------------------------------------- 1 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 8.2% ------------------------------------------------- 2 Lucas County, Ohio, Hospital Revenue, (Flower Hospital Project) Series 1993, Prerefunded 12/01/04 @ 101, 6.125% 12/01/13 7.9% ------------------------------------------------- 3 Harris County, Texas, Port Houston Authority, Revenue Refunding, Series 2000B, AMT, 5.500% 10/01/07 5.8% ------------------------------------------------- 4 Round Rock, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.000% 08/01/18 4.3% ------------------------------------------------- 5 Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding, Series 1994A, (MBIA Insured), 6.000% 11/01/09 3.9% ------------------------------------------------- 6 Travis County, Texas, Health Facilities Development Corporation, Revenue, (Ascension Health Credit Project) Series 1999A, (AMBAC Insured), 5.875% 11/15/24 3.8% ------------------------------------------------- 7 Trinity River Authority, Texas, PCR, (Texas Instruments Inc. Project) Series 1996, AMT, 6.200% 03/01/20 3.8% ------------------------------------------------- 8 Texas State, College Student Loan Authority, GO, Series 1994, AMT, 5.750% 08/01/11 3.8% ------------------------------------------------- 9 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue, (Texas Childrens Hospital Project) Series 1995, 5.500% 10/01/19 3.7% ------------------------------------------------- 10 Austin, Texas, Public Improvement, GO, Series 1999, 5.375% 09/01/18 3.7% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 85 90 NATIONS TEXAS MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (12/17/93 through 3/31/01) 5.15% 4.46%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Texas Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND] Nations Texas Municipal Bond Fund $13,741 Dec. 17 1993 9525 1993 9551 8857 8907 8895 1994 8745 9442 9681 9942 1995 10458 10268 10371 10572 1996 10834 10759 11106 11468 1997 11789 11931 12077 12442 1998 12518 12553 12294 12211 1999 12078 12446 12606 12869 2000 13481 Mar. 31 2001 13741 Lehman Municipal Bond Index $15,441 Dec. 17 1993 10000 1993 10211 9650 9757 9824 1994 9683 10368 10618 10923 1995 11374 11237 11323 11582 1996 11877 11849 12258 12627 1997 12969 13118 13317 13726 1998 13808 13931 13686 13631 1999 13525 13921 14132 14474 2000 15106 Mar. 31 2001 15441
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS TEXAS MUNICIPAL BOND FUND LEHMAN MUNICIPAL BOND INDEX $14,420 $15,441 --------------------------------- --------------------------- Dec. 17 1993 10000 10000 1993 10027 10211 9299 9650 9351 9757 9339 9824 1994 9181 9683 9913 10368 10184 10618 10438 10923 1995 10980 11374 10780 11237 10888 11323 11099 11582 1996 11374 11877 11296 11849 11660 12258 12040 12627 1997 12377 12969 12526 13118 12679 13317 13062 13726 1998 13142 13808 13179 13931 12908 13686 12820 13631 1999 12680 13525 13067 13921 13229 14132 13504 14474 2000 14146 15106 Mar. 31 2001 14420 15441
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 2/3/94 12/17/93 10/21/93 11/3/94 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 10.64% 10.37% 5.09% 9.55% 5.55% 9.55% 8.55% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 5.04% 4.80% 3.12% 4.07% 3.14% 4.05% 4.05% 5 YEARS 6.22% 5.99% 4.97% 5.30% 5.14% 5.36% 5.36% SINCE INCEPTION 5.24% 5.15% 4.46% 4.38% 4.38% 7.13% 7.13%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 86 91 NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Virginia municipal securities, we aim to exempt from federal and Virginia limit the Fund's exposure to any single credit or market state income taxes consistent with sector. In addition, we use a combination of investment moderate fluctuation of principal. strategies, including duration management (managing the PERFORMANCE REVIEW Fund's sensitivity to interest rates), market sector For the 12-month period ended selection and individual credit reviews. We also seek to March 31, 2001, Nations Virginia limit the distribution of capital gains when appropriate. As Intermediate Municipal Bond Fund an intermediate-term portfolio, the Fund seeks to maintain Investor A Shares provided an average dollar-weighted maturity of between three and ten shareholders with a total return years and a duration of between three and six years. of 8.65%.** PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** With a total return of 8.65%, Nations Virginia Intermediate Municipal Bond Fund (Investor A Shares) tracked its peer group, the Lipper Virginia Intermediate Municipal Debt Funds Average, which returned 8.66% for the 12-month period ended March 31, 2001. The Fund matched the Lipper Other States Intermediate Municipal Debt Funds Average, which returned 8.65% for the same period. The Lipper Virginia Intermediate Municipal Debt Funds Average is composed of only two actual funds with multiple share classes, so a comparison to other single state intermediate funds is appropriate. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN VIRGINIA? The Commonwealth of Virginia has earned the highest possible credit rating from Moody's Investors services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). Some of the factors reflected in these
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 3.25%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Virginia Intermediate Municipal Debt Funds Average invest at least 65% of their assets in municipal debt issues that are exempt from taxation in Florida, with dollar-weighted average maturities of five to ten years. Funds in the Lipper Other States Intermediate Municipal Debt Funds Average invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified state basis. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 87 92 NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued ratings are very strong financial management, a diverse and growing economy, relatively high wealth and income levels and a manageable debt burden after having made significant progress in providing for infrastructure spending needs due to high growth. The Commonwealth has a history of sound fiscal management. Estimated financial operating results for the general fund for 2001 are still uncertain due to a possible repeal of the automobile tax and a generalized slowing of other revenue. However, from a long-term perspective, finances are expected to remain strong, in our opinion. We believe the highly diverse economy should recover quickly from a downturn and the Commonwealth has substantial reserves for this contingency. For example, the revenue stabilization fund and reserve currently holds an estimated $600 million -- or about 5% of estimated 2001 expenses. WHAT IS YOUR OUTLOOK FOR VIRGINIA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key long-term challenges for the Commonwealth and its local government units will be maintaining diverse economic growth, meeting infrastructure needs such as schools, roads, water, and sewer while at the same time continuing to preserve sound finances. We believe the Commonwealth and its local government units will achieve a significant measure of success in meeting these long-term challenges. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
88 93 NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Industrial development revenue/Pollution control revenue 5.70 Prerefunded 8.10 Resource recovery 9.90 Transportation 10.90 Water 17.00 Other 6.50 General obligation 27.50 Housing 5.90 Education 4.90 Hospital 3.60
TOP 10 HOLDINGS ------------------------------------------------- 1 Fairfax County, Virginia, Economic Development Authority, Resource Recovery, Revenue Refunding, Series 1998A, AMT, (AMBAC Insured), 5.950% 02/01/07 5.6% ------------------------------------------------- 2 Chesapeake, Virginia, GO Refunding, Series 1993, 5.125% 12/01/05 2.2% ------------------------------------------------- 3 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 2.0% ------------------------------------------------- 4 Virginia State, Transportation Board Authority, Transportation Revenue Refunding, (U.S. Route 58 Corridor Development Program) Series 1993A, 5.500% 05/15/09 1.8% ------------------------------------------------- 5 Virginia State, Transportation Board Authority, Transportation Contract Revenue, (Northern Virginia Transportation District Project) Series 1996A, 5.125% 05/15/21 1.7% ------------------------------------------------- 6 Virginia, Southeastern Public Service Authority, Revenue Refunding, Series 1993A, (MBIA Insured), 5.100% 07/01/08 1.7% ------------------------------------------------- 7 Newport News, Virginia, Public Improvement GO Refunding, Series 1993B, (State Aid Withholding), 5.200% 11/01/04 1.7% ------------------------------------------------- 8 Washington State, Motor Vehicle Fuel Tax, GO, Series 1997F, 5.375% 07/01/22 1.7% ------------------------------------------------- 9 Goochland County, Virginia, Industrial Development Authority, (Old Dominion Electric Cooperative Project) Series 1998, AMT, 4.250% 12/01/02 1.6% ------------------------------------------------- 10 Arlington, Virginia, GO, Series 1999, (State Aid Withholding), 5.250% 06/01/16 1.3% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 89 94 NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
10-YEAR NAV** MOP* (3/31/91 through 3/31/01) 5.66% 5.32%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Virginia Intermediate Municipal Bond Fund over the last 10 years. The Lehman 7-Year Municipal Bond Index is a broad-based, unmanaged, total return index composed of investment grade bonds with maturities of 7 to 8 years. It is unavailable for investment. The Lehman 7-Year Municipal Bond Index measures the performance of the municipal bonds comprising the index for the period beginning on 12/31/89. Please note, however, that Investor A Shares commenced operations on 12/5/89. Therefore, the performance illustrated by the Lehman 7-Year Municipal Bond Index includes the performance of the Lehman 10-Year Municipal Bond Index for the period preceding 12/31/89. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS VIRGINIA|INTERMEDIATE|MUNICIPAL|BOND LEHMAN|7-YEAR|MUNICIPAL|BOND FUND|$16,785 INDEX|$19,287 ------------------------------------ ---------------------------- Mar. 31 1991 9675 10000 9813 10172 10084 10559 1991 10403 10907 10391 10898 10720 11284 10955 11593 1992 11117 11783 11429 12160 11771 12497 12102 12860 1993 12219 13015 11718 12525 11796 12656 11818 12778 1994 11674 12655 12279 13321 12601 13699 12868 14089 1995 13211 14444 13138 14392 13190 14456 13394 14714 1996 13688 15075 13625 15058 13990 15472 14295 15886 1997 14594 16232 14702 16430 14880 16621 15277 17147 1998 15360 17255 15438 17402 15194 17106 15205 17247 1999 15173 17231 15448 17505 15625 17790 15938 18196 2000 16451 18798 Mar. 31 2001 16785 19287
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS VIRGINIA|INTERMEDIATE|MUNICIPAL|BOND LEHMAN|7-YEAR|MUNICIPAL|BOND FUND|$17,345 INDEX|$19,287 ------------------------------------ ---------------------------- Mar. 31 1991 10000 10000 10143 10172 10423 10559 1991 10752 10907 10740 10898 11080 11284 11323 11593 1992 11490 11783 11813 12160 12166 12497 12508 12860 1993 12629 13015 12112 12525 12193 12656 12215 12778 1994 12066 12655 12692 13321 13024 13699 13301 14089 1995 13654 14444 13579 14392 13634 14456 13843 14714 1996 14148 15075 14083 15058 14160 15472 14776 15886 1997 15084 16232 15196 16430 15380 16621 15791 17147 1998 15876 17255 15957 17402 15705 17106 15716 17247 1999 15683 17231 15967 17505 16150 17790 16473 18196 2000 17004 18798 Mar. 31 2001 17345 19287
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 9/20/89 12/5/89 6/7/93 6/17/92 --------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 8.92% 8.65% 5.15% 7.85% 4.85% 7.84% 6.84% --------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.75% 4.51% 3.36% 3.81% 3.50% 3.77% 3.77% 5 YEARS 5.25% 5.02% 4.33% 4.43% 4.43% 4.41% 4.41% 10 YEARS 5.85% 5.66% 5.32% -- -- -- -- SINCE INCEPTION 6.06% 5.87% 5.56% 4.34% 4.34% 4.76% 4.76%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 3.25%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 90 95 NATIONS VIRGINIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY* IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON NATIONS VIRGINIA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2001 AND ITS OUTLOOK FOR THE FUTURE. PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE The Fund is managed by the INVESTMENT APPROACH OF THE FUND. Municipal Fixed Income Management The Fund balances its investments between high quality, Team of Banc of America Capital investment grade issues through which it seeks to reduce Management, Inc., investment credit and liquidity risk and lower quality, investment sub-adviser to the Fund. grade issues, for their additional yield potential. By INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within The Fund seeks high current income the universe of Virginia municipal securities, we aim to exempt from federal and Virginia limit the Fund's exposure to any single credit or market state income taxes with the sector. In addition, we use a combination of investment potential for principal strategies, including duration management (managing the fluctuation associated with Fund's sensitivity to interest rates), market sector investments in long-term municipal selection and individual credit reviews. We also seek to securities. limit the distribution of capital gains when appropriate. As PERFORMANCE REVIEW a long-term portfolio, the Fund seeks to maintain an average For the 12-month period ended dollar-weighted maturity greater than seven years and a March 31, 2001, Nations Virginia duration of more than six years. Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.*** Shares provided shareholders with With a total return of 9.20%, Nations Virginia Municipal a total return of 9.20%.** Bond Fund (Investor A Shares) underperformed its peer group, the Lipper Virginia Municipal Debt Funds Average, which returned 9.63% for the 12-month period ended March 31, 2001. The Fund maintained a more conservative duration than its peers during a period in which interest rates declined. WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN VIRGINIA? The Commonwealth of Virginia has earned the highest possible credit rating from Moody's Investors services, Inc. ("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc. ("AAA"). Some of the factors reflected in these ratings are very strong financial management, a diverse and growing economy, relatively high wealth and income levels and a manageable debt burden after having made significant progress in providing for infrastructure spending needs due to high growth.
*The outlook for this Fund may differ from that presented for other Nations Funds mutual funds. **The performance shown does not reflect the maximum front-end sales charge of 4.75%, which may apply to purchases of Investor A Shares. For standardized performance, please refer to the Performance table. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. ***Lipper, Inc. is an independent mutual fund performance monitor. Funds in the Lipper Virginia Municipal Debt Funds Average limit their assets to those securities that are exempt from taxation in Virginia. Source for all statistical data -- Banc of America Capital Management, Inc. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 91 96 NATIONS VIRGINIA MUNICIPAL BOND FUND MUNICIPAL FIXED INCOME MANAGEMENT TEAM COMMENTARY continued The Commonwealth has a history of sound fiscal management. Estimated financial operating results for the general fund for 2001 are still uncertain due to a possible repeal of the automobile tax and a generalized slowing of other revenue. However, from a long-term perspective, finances are expected to remain strong, in our opinion. We believe the highly diverse economy should recover quickly from a downturn and the Commonwealth has substantial reserves for this contingency. For example, the revenue stabilization fund and reserve currently holds an estimated $600 million -- or about 5% of estimated 2001 expenses. WHAT IS YOUR OUTLOOK FOR VIRGINIA AND THE MUNICIPAL BOND MARKET FOR THE COMING YEAR? Key long-term challenges for the Commonwealth and its local government units will be maintaining diverse economic growth, meeting infrastructure needs such as schools, roads, water, and sewer while at the same time continuing to preserve sound finances. We believe the Commonwealth and its local government units will achieve a significant measure of success in meeting these long-term challenges. From a national municipal bond market perspective, as the market continues into 2001, we believe demand for municipals should remain relatively strong from crossover buyers, who seek above average performance by purchasing taxable and/or tax-exempt securities based on relative value, and from retail investors seeking a safer and less volatile alternative to corporates and/or equities. Challenges for the municipal market going forward include a slowing national economy and its impact on state and local government finances, the potential for significant tax reform and a robust level of both new and refunding issues.
92 97 NATIONS VIRGINIA MUNICIPAL BOND FUND PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/01) [PIE CHART] Industrial development revenue/Pollution control revenue 14.20 General obligation 19.10 Water 24.10 Other 7.80 Hospital 13.10 Lease 10.00 Prerefunded 5.30 Education 3.40 Housing 3.00
TOP 10 HOLDINGS ------------------------------------------------- 1 Montgomery County, Virginia, Industrial Development Lease Authority, Revenue, Series 2000B, (AMBAC Insured), 5.500% 01/15/22 6.7% ------------------------------------------------- 2 West Point, Virginia, Industrial Development Authority, Solid Waste Disposal Revenue, (Chesapeake Corporation Project) Series 1994A, AMT, 6.375% 03/01/19 5.2% ------------------------------------------------- 3 Rivanna, Virginia, Water and Sewer Authority, Regional Water and Sewer Systems, Revenue Refunding, Series 1991, 6.450% 10/01/12 4.6% ------------------------------------------------- 4 Mississippi State, Hospital Facilities and Equipment Authority, Revenue, (Forrest County General Hospital Project) Series 2000, (FSA Insured), 5.625% 01/01/20 4.2% ------------------------------------------------- 5 Virginia State, Residential Authority, Infrastructure Revenue, Series 2000A, (MBIA Insured), 5.500% 05/01/21 3.6% ------------------------------------------------- 6 Fairfax County, Virginia, Water Authority, Water Revenue, Unrefunded Balance, Series 1992, 6.000% 04/01/22 3.5% ------------------------------------------------- 7 Fairfax County, Virginia, Public Improvement GO, Series 1999B, 5.500% 12/01/16 3.4% ------------------------------------------------- 8 Fairfax County, Virginia, Water Authority, Water Revenue, Series 2000, 5.625% 04/01/25 3.4% ------------------------------------------------- 9 Virginia Beach, Virginia, Public Improvement GO, Series 2000, 5.500% 03/01/18 3.4% ------------------------------------------------- 10 Staunton, Virginia, Industrial Development Authority, Educational Facilities Revenue, (Mary Baldwin College Project) Series 1996, 6.600% 11/01/14 3.3% ------------------------------------------------- THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND SECURITIES IN WHICH THE FUND MAY INVEST.
PORTFOLIO HOLDINGS WERE CURRENT AS OF MARCH 31, 2001, ARE SUBJECT TO CHANGE AND MAY NOT BE REPRESENTATIVE OF CURRENT HOLDINGS. 93 98 NATIONS VIRGINIA MUNICIPAL BOND FUND PERFORMANCE GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN Investor A Shares
SINCE INCEPTION NAV** MOP* (11/8/93 through 3/31/01) 4.98% 4.29%
The charts to the left show the growth in value of a hypothetical $10,000 investment in Investor A Shares of Nations Virginia Municipal Bond Fund from the inception of the share class. The Lehman Municipal Bond Index is a broad-based, unmanaged, total return index composed of 8,000 investment grade, long-term maturity bonds. It is unavailable for investment. The performance of Primary A, Investor B and Investor C Shares may vary based on the differences in sales loads and fees paid by the shareholders investing in each class. [INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
NATIONS VIRGINIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX FUND $13,640 $15,305 ------------------------------- --------------------------- Nov. 8 1993 9525 10000 9722 10121 8902 9565 8921 9671 8930 9737 1994 8795 9598 9511 10277 9733 10524 10012 10826 10516 11273 10303 11138 10375 11223 10638 11480 1996 10883 11773 10842 11744 11207 12150 11527 12515 11889 12854 12022 13002 12194 13200 12564 13605 1998 12567 13687 12619 13809 12403 13565 12289 13511 12159 13406 12490 13799 12621 14007 12911 14346 2000 13372 14973 Mar. 31 2001 13640 15305
[INVESTOR A SHARES AT NAV** RETURN CHART]
NATIONS VIRGINIA MUNICIPAL BOND FUND $14,320 ------------------------------- Lehman Municipal Bond Index $15,305 Nov. 8 1993 10000 10000 10207 10121 9346 9565 9366 9671 9375 9737 1994 9284 9598 9986 10277 10218 10524 10511 10826 11040 11273 10817 11138 10893 11223 11168 11480 1996 11425 11773 11383 11744 11766 12150 12102 12515 12482 12854 12622 13002 12602 13200 13190 13605 1998 13194 13687 13248 13809 13021 13565 12902 13511 12765 13406 13112 13799 13249 14007 13554 14346 2000 14038 14973 Mar. 31 2001 14320 15305
TOTAL RETURN (AS OF 3/31/01)
INVESTOR A INVESTOR B INVESTOR C PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC*** Inception date 1/11/94 11/8/93 10/21/93 11/3/94 ------------------------------------------------------------------------------------------------------------------------------- 1 YEAR PERFORMANCE 9.46% 9.20% 4.02% 8.38% 4.38% 8.35% 7.35% ------------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS 3 YEARS 4.57% 4.30% 2.61% 3.61% 2.68% 3.58% 3.58% 5 YEARS 6.02% 5.77% 4.74% 5.10% 4.94% 5.16% 5.16% SINCE INCEPTION 4.97% 4.98% 4.29% 4.10% 4.10% 6.96% 6.96%
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of distributions. *Figures at maximum offering price (MOP) reflect the maximum front-end sales charge of 4.75%. **Figures at net asset value (NAV) do not reflect any sales charges. Investor A Shares are available with a reduced or waived sales charge only under certain circumstances as described in the prospectus. ***Figures at CDSC reflect the maximum applicable contingent deferred sales charge. The performance shown includes the effect of fee waivers and/or expense reimbursements by the investment adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower. 94 99 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 96.7% ALABAMA -- 0.9% $1,175 Alabama, Special Care Facilities Financing Authority, Hospital Revenue, (Charity Obligation Group Project) Series A, 3.750% 11/01/01........ Aaa NR $ 1,178 -------- ALASKA -- 0.8% 1,000 Alaska, Student Loan Corporation, Student Loan Revenue, Series 1995A, AMT, (AMBAC Insured), 5.250% 07/01/03........ Aaa AAA 1,031 -------- ARIZONA -- 3.1% 3,000 Glendale, Arizona, Water and Sewer Revenue, Series 2000, (FGIC Insured), 4.750% 07/01/02........ Aaa AAA 3,055 1,035 Maricopa County, Arizona, Unified School District Number 48, GO Refunding, Series 1991B, 6.300% 07/01/04........ Aa2 AA 1,122 -------- 4,177 -------- CALIFORNIA -- 1.6% 2,015 Riverside County, California, Asset Leasing Corporation Leasehold Revenue, Series 1993C, Mandatory Put 12/01/02 @ 100, 7.940% 06/01/19........ Aa3 A+ 2,089 -------- DISTRICT OF COLUMBIA -- 3.4% 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 2,322 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 2,187 -------- 4,509 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- 3.3% $4,250 Pinellas County, Florida, Capital Improvement Revenue, Series 2000, 4.500% 01/01/06........ Aa3 AA- $ 4,390 -------- GEORGIA -- 5.4% 3,545 Atlanta, Georgia, Urban Residential Finance Authority, College Facilities Revenue, (Morris Brown College Project) Series 1991, Prerefunded 12/01/01 @ 103, 9.500% 12/01/11........ Aaa NR 3,794 1,775 Georgia State, GO, Series 1992B, 5.750% 03/01/02........ Aaa AAA 1,818 1,500 Georgia, Medical Center Hospital Authority, Revenue, Unrefunded Balance, Series 1992C, (MBIA Insured), 6.400% 08/01/06........ Aaa AAA 1,585 -------- 7,197 -------- ILLINOIS -- 2.5% 1,020 Broadview, Illinois, Tax Increment Revenue, Series 1999, 4.300% 07/01/01........ NR NR 1,019 1,260 Broadview, Illinois, Tax Increment Revenue, Series 1999, 4.750% 07/01/05........ NR NR 1,241 1,000 Chicago, Illinois, O'Hare International Airport, General Airport Revenue, Second Lien, Series 1996A, AMT, (AMBAC Insured), 5.000% 01/01/02........ Aaa AAA 1,011 -------- 3,271 -------- INDIANA -- 1.7% 2,205 Fremont, Indiana, Middle School Building Corporation, Revenue Refunding, Series 1994A, (AMBAC Insured), 4.650% 07/15/04........ Aaa AAA 2,272 -------- LOUISIANA -- 3.8% 3,000 Calcasieu Parish, Louisiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06........ Baa3 BBB- 3,002
SEE NOTES TO FINANCIAL STATEMENTS. 95 100 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- LOUISIANA -- (CONTINUED) $2,000 De Soto Parish, Louisiana, PCR Refunding, (International Paper Company Project) Series 1993A, 5.050% 12/01/02........ Baa1 BBB+ $ 2,007 -------- 5,009 -------- MAINE -- 2.7% 3,500 Baileyville, Maine, PCR, (Georgia-Pacific Corporation Project) Series 1998, 4.750% 06/01/05........ Baa3 NR 3,557 -------- MASSACHUSETTS -- 1.3% 1,570 Massachusetts State, Industrial Financing Agency Revenue, Series 1994, Prerefunded 11/15/03 @ 102, 7.100% 11/15/18........ Aaa AAA 1,743 -------- MICHIGAN -- 3.7% 1,000 Detroit, Michigan, GO, Series 1995A, 5.600% 05/01/01........ NR BBB+ 1,002 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 1,097 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........ VMG1 AA 1,022 1,800 Michigan State, Hospital Finance Authority, Revenue, Mandatory Put 11/15/06 @ 100, 5.300% 11/15/33........ VMG1 AA 1,847 -------- 4,968 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MISSOURI -- 0.8% $1,000 Missouri State, Environmental Improvement and Energy Resource Authority, PCR Refunding, (Associated Electrical Cooperation -- Thomas Hill Project) Series 1996, 5.750% 12/01/02........ A1 AA $ 1,039 -------- NEW JERSEY -- 1.5% 1,985 New Jersey, Financing Authority, Health Care Facilities Revenue, (Riverwood Center Inc. Project) Series 1991A, (FSA Insured), Prerefunded 07/01/01 @ 102, 9.900% 07/01/21........ Aaa AAA 2,057 -------- NORTH CAROLINA -- 8.9% 1,000 Durham, North Carolina, GO Refunding, Series 1992, 5.700% 02/01/05........ Aaa AAA 1,031 1,725 North Carolina State, Medical Care Commission Hospital Revenue, (Gaston Health Care Project) Series 1998, 4.300% 02/15/03........ A1 A+ 1,739 1,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.300% 08/15/02........ Baa1 NR 994 1,560 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.300% 08/15/03........ Baa1 NR 1,537 1,630 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.400% 08/15/04........ Baa1 NR 1,591
SEE NOTES TO FINANCIAL STATEMENTS. 96 101 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $5,000 Wake County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Carolina Power and Light Project) Series 1994A, 3.500% 05/01/24........ Aaa AAA $ 5,001 -------- 11,893 -------- OHIO -- 6.0% 2,015 Akron/Bath/Copley, Ohio, Joint Township Hospital District, Revenue, (Summa Health Systems Project) Series 1993A, 5.750% 11/15/08........ Baa1 NR 1,966 2,500 Dayton, Ohio, Special Facilities Revenue Refunding, Series 1993, 6.050% 10/01/09........ NR BBB 2,509 3,445 Ohio, Housing Financing Agency, Mortgage Revenue, Series 2000D, AMT, (GNMA COLL), 4.800% 09/01/02........ Aaa NR 3,500 -------- 7,975 -------- OKLAHOMA -- 3.4% 2,000 Oklahoma, Housing Development Authority, Revenue, Series 2000A, (FHLMC COLL), 5.100% 11/01/05........ Aa3 NR 2,070 2,385 Tulsa County, Oklahoma, Independent School District Number 001, GO, Series 2000A, 5.000% 03/01/03........ Aa2 AA 2,454 -------- 4,524 -------- PENNSYLVANIA -- 7.2% 1,500 Allegheny County, Pennsylvania, GO, Series 1987C-34, (MBIA-IBC Insured), 8.500% 02/15/02........ Aaa AAA 1,568 1,805 Delaware County, Pennsylvania Authority, Health Care Revenue, Series 1993B, Prerefunded 11/15/05 @ 100, 6.000% 11/15/07........ Aaa NR 1,943
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $1,560 Greene County, Pennsylvania, Industrial Development Authority, Revenue, (Monongahela Power Company Project) Series 1998B, 4.350% 02/01/02........ A2 A $ 1,570 2,200 Greene County, Pennsylvania, Industrial Development Authority, Revenue, (Potomac Edison Company Project) Series 1998B, 4.350% 02/01/02........ Aaa AAA 2,220 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 2,260 -------- 9,561 -------- SOUTH CAROLINA -- 9.3% 1,950 Aiken County, South Carolina, Construction School District, GO, Series 2000, (SCSDE), 5.000% 04/01/02........ Aa1 AA+ 1,987 1,950 Aiken County, South Carolina, Construction School District, GO, Series 2000, (SCSDE), 5.125% 04/01/03........ Aa1 AA+ 2,014 1,000 Berkeley County, South Carolina, Water and Sewer Authority, Revenue Refunding, Series 1991, (MBIA Insured), Prerefunded 06/01/01 @ 102, 7.000% 06/01/16........ Aaa AAA 1,026 1,370 Greenville, South Carolina, Hospital System Authority, Hospital Facilities Revenue Refunding, Series 1993C, 5.250% 05/01/03........ Aa3 AA 1,412 2,965 Richland County, South Carolina, PCR Refunding, (Union Camp Corporation Project) Series 1992C, 5.875% 11/01/02........ Baa1 BBB+ 3,048
SEE NOTES TO FINANCIAL STATEMENTS. 97 102 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
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, 5.750% 12/15/01........ Baa2 BBB $ 1,001 1,000 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 6.125% 12/15/02........ Baa2 BBB 1,007 1,000 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 6.300% 12/15/03........ Baa2 BBB 1,012 -------- 12,507 -------- TENNESSEE -- 3.8% 910 Knoxville, Tennessee, Water Revenue Refunding and Improvement, Series 1993, 4.900% 04/01/07........ Aa3 AA 918 2,100 McMinn County, Tennessee, Industrial Development Board, PCR Refunding, (Bowater Inc. Project) Series 1991, 6.850% 04/01/01........ Baa3 BBB 2,100 1,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities and Project Revenue, (Federal Express Corporation Project) Series 1984, 7.875% 09/01/09........ Baa2 BBB 1,041 1,000 Tennessee State, Housing Development Agency Mortgage Finance Authority, Revenue, Series 1993A, 5.200% 01/01/02........ A1 AA 1,012 -------- 5,071 -------- TEXAS -- 12.3% 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........ A3 BBB+ 2,000
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 935 Brazos, Texas, Higher Education Authority Inc., Revenue Refunding, Senior Lien, Series 1994A-2, AMT, (GTD STD LNS), 5.850% 06/01/01........ Aaa NR $ 939 1,000 Carroll, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 3.450% 08/15/32........ VMG1 A-1+ 1,000 1,000 Central Texas, Higher Education Authority, Revenue Refunding, Series 1993, AMT, (GTD STD LNS), 5.200% 12/01/04........ Aaa NR 1,044 1,000 Clear Creek, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 3.730%+ 02/15/03....... Aaa AAA 933 2,500 Dallas-Fort Worth, Texas, International Airport Facilities Improvement, Corporate Revenue Refunding, (American Airlines Project) Series 2000A, AMT, Mandatory Put 11/01/03 @ 100, 5.950% 05/01/29........ Baa1 BBB- 2,544 2,115 Red River Authority, Texas, PCR Refunding, (Hoechst Celanese Corporation Project) Series 1994, 5.200% 05/01/07........ Baa2 BBB 2,126 2,800 Richardson, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 5.000% 02/15/03........ Aaa AAA 2,879 1,000 Texas State, College Student Loan Authority, Revenue, Series 1995, AMT, 5.100% 08/01/01........ Aa1 AA 1,006 2,000 Texas State, College Student Loan Authority, Revenue, Series 1995, AMT, 5.300% 08/01/03........ Aa1 AA 2,071 -------- 16,542 -------- UTAH -- 1.8% 2,370 Jordan, Utah, School District, GO, Series 1997, (SCH BD GTY), 5.000% 06/15/02........ NR AAA 2,420 --------
SEE NOTES TO FINANCIAL STATEMENTS. 98 103 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- 6.0% $2,260 Culpeper County, Virginia, GO, Series 2000, 4.650% 09/01/02........ MIG1 SP1+ $ 2,261 1,000 Norfolk, Virginia, GO, Series 1995, 5.250% 06/01/01........ A1 AA 1,003 3,350 Richmond, Virginia, GO, Series 2000, (FSA Insured), 5.125% 01/15/04........ Aaa AAA 3,496 1,250 Virginia, Education Loan Authority, Guaranteed Student Loan Revenue, Series 1992G, AMT, (GTD STD LNS), 6.625% 09/01/03........ Aaa NR 1,303 -------- 8,063 -------- WASHINGTON -- 1.5% 1,990 Washington State, Public Power Supply Systems Revenue Refunding, (Nuclear Project Number 1) Series 1991A, 6.600% 07/01/04........ Aa1 AA- 2,043 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost: $126,894)....................... 129,086 --------
SHARES VALUE (000) (000) ------------------------------------------------------------- INVESTMENT COMPANIES -- 1.9% (Cost: $2,484) 2,484 Nations Municipal Reserves#........... $ 2,484 -------- TOTAL INVESTMENTS (Cost $129,378*)............. 98.6% 131,570 -------- OTHER ASSETS AND LIABILITIES (NET)........................ 1.4% Cash.................................. $ 1 Receivable for investment securities sold................................ 2,305 Receivable for Fund shares sold....... 127 Interest receivable................... 2,017 Investment advisory fee payable....... (17) Administration fee payable............ (22) Shareholder servicing and distribution fees payable........................ (9) Distributions payable................. (416) Payable for investment securities purchased........................... (2,000) Accrued Trustees' fees and expenses... (29) Accrued expenses and other liabilities......................... (30) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 1,927 -------- NET ASSETS..................... 100.0% $133,497 ======== NET ASSETS CONSIST OF: Undistributed net investment income... $ 50 Accumulated net realized loss on investments sold.................... (399) Net unrealized appreciation of investments......................... 2,192 Paid-in capital....................... 131,654 -------- NET ASSETS............................ $133,497 ========
SEE NOTES TO FINANCIAL STATEMENTS. 99 104 NATIONS FUNDS Nations Short-Term Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($105,004,299 / 10,358,066 shares outstanding)........................ $10.14 ------ ------ INVESTOR A SHARES: Net asset value and redemption price per share ($23,613,051 / 2,329,046 shares outstanding)................. $10.14 ------ ------ Maximum sales charge.................. 1.00% Maximum offering price per share...... $10.24 INVESTOR B SHARES: Net asset value and offering price per share** ($3,462,567 / 341,511 shares outstanding)........................ $10.14 ------ ------ INVESTOR C SHARES: Net asset value and offering price per share** ($1,417,277 / 139,807 shares outstanding)........................ $10.14 ------ ------
--------------- * Federal Income Tax Information: Net unrealized appreciation of $2,192 on investment securities was comprised of gross appreciation of $2,322 and gross depreciation of $130 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $129,378. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Short-Term Municipal Income Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Industrial Development Revenue/ Pollution Control Revenue 26.21% Hospital Revenue 14.97% SEE NOTES TO FINANCIAL STATEMENTS. 100 105 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.2% ALABAMA -- 2.2% $ 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 $ 3,340 2,500 Birmingham, Alabama, Industrial Water Board, Industrial Water Supply Revenue, Series 1978, 6.000% 07/01/07...... NR AAA 2,793 2,500 Birmingham, Alabama, Revenue, (Baptist Medical Center of Birmingham Project) Series 1993A, (MBIA Insured), 5.500% 08/15/05...... Aaa AAA 2,622 9,240 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1992, AMT, 7.000% 06/01/22...... Baa1 BBB+ 9,552 5,750 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1993A, AMT, 6.375% 03/01/29...... Baa1 BBB+ 5,785 3,000 Prichard, Alabama, Waterworks and Sewer Board, Water and Sewer Revenue Refunding, Series 1994, (AMBAC Insured), 5.650% 11/15/04...... Aaa AAA 3,215 ---------- 27,307 ---------- ALASKA -- 1.4% 3,000 Alaska State, Housing Finance Corporation, Revenue, Series 1995A, (MBIA Insured), 5.400% 06/01/08...... Aaa AAA 3,175
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ALASKA -- (CONTINUED) $ 3,345 Alaska, Industrial Development and Export Authority, Revenue Refunding, Series 1998A, AMT, (MBIA Insured), 5.250% 04/01/12...... Aaa AAA $ 3,466 3,280 Alaska, Student Loan Corporation, Student Loan Revenue, Series 1995A, AMT, (AMBAC Insured), 5.250% 07/01/03++.... Aaa AAA 3,380 3,000 Alaska, Student Loan Corporation, Student Loan Revenue, Series 1997A, AMT, (AMBAC Insured), 5.150% 07/01/05...... Aaa AAA 3,125 1,250 Alaska, Student Loan Corporation, Student Loan Revenue, Series 1997A, AMT, (AMBAC Insured), 5.200% 07/01/06...... Aaa AAA 1,304 2,000 Anchorage, Alaska, GO, Series 1996A, (AMBAC Insured), 5.100% 08/01/07...... Aaa AAA 2,103 ---------- 16,553 ---------- ARIZONA -- 0.6% 725 Maricopa County, Arizona, Unified High School District Number 210, GO, Series 1993F, Prerefunded 07/01/03 @ 101, 5.450% 07/01/08...... Aa AA 764 3,000 Mesa, Arizona, GO Refunding, (MBIA Insured), 5.000% 07/01/03...... Aaa AAA 3,106 2,125 Pima County, Arizona, Unified School District, GO, Series 1995G, (MBIA Insured), 7.300% 07/01/05...... Aaa AAA 2,424 1,500 Salt River, Arizona, Agricultral Improvement and Power District, Electric Systems Revenue Refunding, (Salt River Project) Series 1993B, 5.050% 01/01/06...... Aa2 AA 1,581 ---------- 7,875 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 101 106 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ARKANSAS -- 1.5% $10,000 Arkansas State, GO, Series 2000A, 5.500% 08/01/11...... Aa2 AA $ 10,907 7,000 Hot Springs, Arkansas, IDR Refunding, (Willamette Industries Project) Series 1991, 6.650% 12/01/02...... NR A- 7,305 ---------- 18,212 ---------- CALIFORNIA -- 0.5% 2,000 California State, GO, Series 1990, 7.000% 08/01/04...... Aa2 AA 2,216 3,265 California State, GO, Series 2000, 5.000% 12/01/16...... Aa2 AA 3,307 ---------- 5,523 ---------- COLORADO -- 0.8% 10,000 Colorado, E-470 Public Highway Authority, Revenue, Series 1997B, (MBIA Insured), 4.780%+ 09/01/12..... Aaa AAA 5,831 3,075 Denver City and County, Colorado, Airport Revenue Refunding, Series 2000A, AMT, (AMBAC Insured), 6.000% 11/15/15...... Aaa AAA 3,337 ---------- 9,168 ---------- CONNECTICUT -- 0.7% 1,500 Connecticut State, GO Refunding, Series 1998B, 5.375% 08/15/03...... Aa2 AA 1,570 6,465 Connecticut State, Housing Finance Authority, Revenue, (Housing Mortgage Finance Program) Series 1997D-2, AMT, 5.600% 11/15/21...... Aa2 AA 6,560 ---------- 8,130 ---------- DELAWARE -- 0.1% 1,000 Delaware State, GO Refunding, Series 1991A, 6.100% 08/15/03...... Aaa AAA 1,030 ----------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- DISTRICT OF COLUMBIA -- 0.9% $ 1,000 District of Columbia, Hospital Revenue Refunding, (Medlantic Healthcare Group Project) Series 1997A, (MBIA Insured), 6.000% 08/15/06...... Aaa AAA $ 1,106 1,350 District of Columbia, Hospital Revenue Refunding, (Medlantic Healthcare Group Project) Series 1997A, (MBIA Insured), 6.000% 08/15/07...... Aaa AAA 1,505 3,050 District of Columbia, Revenue, (Georgetown University Project) Series 1988C, (MBIA Insured), 5.050% 04/01/11...... Aaa AAA 3,163 4,000 District of Columbia, Revenue, (The Smithsonian Institute Project) Series 1997, 5.000% 02/01/17...... Aaa AAA 3,961 1,500 Metropolitan Washington, District of Columbia, Airport Revenue, Series 1994A, AMT, (MBIA Insured), 5.600% 10/01/06++.... Aaa AAA 1,601 ---------- 11,336 ---------- FLORIDA -- 8.3% 5,000 Broward County, Florida, School District, GO Refunding, Series 1992, 6.000% 02/15/04...... A1 AA- 5,200 3,500 Broward County, Florida, School District, GO Refunding, Series 1993, 5.100% 02/15/02...... A1 AA- 3,559 5,000 Dade County, Florida, School District, GO, Series 1995, (MBIA Insured), 5.500% 08/01/04...... Aaa AAA 5,304 1,000 Deerfield Beach, Florida, Water and Sewer Revenue Refunding, Series 1992, (FGIC Insured), 6.125% 10/01/03...... Aaa AAA 1,045
SEE NOTES TO FINANCIAL STATEMENTS. 102 107 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 2,700 Duval County, Florida, Housing Finance Authority, Multi-Family Housing Revenue Refunding, (United Dominion Realty Trust- Greentree Place Project) Series 1995, Mandatory Put 04/01/09 @ 100, 6.750% 04/01/25...... NR BBB+ $ 2,836 4,560 Duval County, Florida, Housing Finance Authority, Multi-Family Mortgage Revenue Refunding, (The Cove Project) Series 1992, 6.100% 10/01/02...... NR AAA 4,640 4,760 Escambia County, Florida, Housing Finance Authority, Single-Family Mortgage, Revenue, Series 1999, AMT, (FNMA/GNMA COLL), 4.500% 10/01/09...... Aaa NR 4,804 3,035 Florida State, Board of Education, Capital Outlay GO, Series 1995A, 5.400% 01/01/06...... Aa2 AA+ 3,232 5,575 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.500% 06/01/06...... Aa2 AA+ 6,021 4,000 Florida State, Division of Bond Financing, Department of General Services, Revenue, (Department of Natural Resoruces-Preservation 2000 Project) Series 1995A, (AMBAC Insured), 5.500% 07/01/06...... Aaa AAA 4,302 1,000 Florida State, Jacksonville Transportation GO Refunding, Senior Lien, Series 1997, 5.000% 07/01/19...... Aa AA+ 994 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+ 7,794
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 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+ $ 2,080 4,000 Jacksonville, Florida, Electric Authority, Revenue Refunding, (St. John River-Issue 2 Project) Series 1993-10, 6.500% 10/01/03...... Aa2 AA 4,261 5,900 Jacksonville, Florida, Electric Authority, Revenue Refunding, (St. John River Project) Issue 2, Series 1993-10, 5.000% 10/01/04...... Aa2 AA 6,104 2,500 Lakeland, Florida, Electrical and Water Revenue, Series 1996, Prerefunded 10/01/06 @ 102, 5.500% 10/01/26...... NR AAA 2,763 2,000 Lee County, Florida, Water and Sewer Revenue, Series 1999A, (AMBAC Insured), 4.750% 10/01/19...... Aaa AAA 1,931 1,000 Manatee County, Florida, Public Utilities Revenue Refunding, Series 1991B, (MBIA Insured), 6.400% 10/01/03...... Aaa AAA 1,036 2,080 Nassau County, Florida, PCR Refunding, (ITT Rayonier, Inc. Project) Series 1992, 5.700% 06/01/01...... Baa2 BBB- 2,086 4,075 North Broward, Florida, Hospital District Revenue Refunding, Series 1997, 5.250% 01/15/11...... Aaa AAA 4,299 2,000 Orange County, Florida, Public Facilities Revenue, Series 1994A, (AMBAC Insured), 5.450% 10/01/05...... Aaa AAA 2,147
SEE NOTES TO FINANCIAL STATEMENTS. 103 108 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 3,060 Orlando and Orange County, Florida, Expressway Authority, Revenue Refunding, Senior Lien, Series 1993, (AMBAC Insured), 5.375% 07/01/08...... Aaa AAA $ 3,204 4,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding, Series 1992, 5.600% 10/01/03...... Aa1 AA 4,210 1,000 Palm Beach County, Florida, Criminal Justice Facilities Revenue, Series 1994, (FGIC Insured), 5.850% 06/01/07...... Aaa AAA 1,075 7,685 Palm Beach County, Florida, Health Facilities Authority Revenue, (Good Samaritian Project) Series 1993, (MBIA-IBC Insured), Prerefunded 10/01/05 @ 100, 6.300% 10/01/22...... Aaa AAA 8,317 5,000 Tampa, Florida, Health Systems Revenue, (Catholic Health East Project) Series 1998A-1, (MBIA Insured), 5.500% 11/15/13...... Aaa AAA 5,392 4,000 Tampa, Florida, Health Systems Revenue, (Catholic Health East Project) Series 1998A-1, (MBIA Insured), 5.500% 11/15/14...... Aaa AAA 4,294 ---------- 102,930 ---------- GEORGIA -- 1.6% 3,850 Atlanta, Georgia, Urban Residential Finance Authority, College Facilities Revenue, (Morris Brown College Project) Series 1991, Prerefunded 12/01/01 @ 103, 9.500% 12/01/11...... Aaa NR 4,121
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 3,000 Cartersville, Georgia, Development Authority, Sewer Facilities Revenue Refunding, (Anheuser- Busch Companies, Inc. Project) Series 1997, AMT, 5.625% 05/01/09...... A1 A+ $ 3,208 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 5,209 1,105 Fulton County, Georgia, Development Authority, Revenue, (Clark Atlanta University Project) Series 1995, (CONNIE LEE Insured), 5.100% 01/01/05...... Baa3 AAA 1,159 1,000 Georgia State, GO, Series 1991C, 6.500% 04/01/04...... Aaa AAA 1,084 4,400 Georgia State, GO, Series 1997C, 6.250% 08/01/09...... Aaa AAA 5,065 ---------- 19,846 ---------- HAWAII -- 0.8% 6,000 Hawaii State, GO, Series 1997CN, (FGIC Insured), 6.250% 03/01/04...... Aaa AAA 6,430 2,500 Honolulu City and County, Hawaii, GO Refunding, Series 1990A, 7.350% 07/01/07...... Aa3 AA- 2,951 ---------- 9,381 ---------- ILLINOIS -- 9.1% 2,370 Chicago, Illinois, Board of Education GO, Series 1997, (AMBAC Insured), 5.250% 12/01/05...... Aaa AAA 2,518 2,500 Chicago, Illinois, Gas Supply Revenue, (Peoples Gas Light and Coke Project) Series 1985A, 6.875% 03/01/15...... Aa3 AA- 2,616 5,650 Chicago, Illinois, GO Refunding, Series 1999, (FGIC Insured), 5.000% 01/01/15...... Aaa AAA 5,693
SEE NOTES TO FINANCIAL STATEMENTS. 104 109 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 7,105 Chicago, Illinois, GO Refunding, Series 1999, (FGIC Insured), 5.250% 01/01/18...... Aaa AAA $ 7,395 3,750 Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Capital Improvement GO, Series 1993, 5.000% 12/01/02...... Aa1 AA 3,851 2,165 Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Capital Improvement GO, Series 1995, 5.750% 12/01/01...... Aa1 AA 2,202 2,000 Chicago, Illinois, Metropolitan Water Reclamation District, Greater Chicago Working Cash Fund GO, Series 1995, 5.750% 12/01/01...... Aa1 AA 2,034 10,200 Chicago, Illinois, Park District, GO, Series 1995, 6.600% 11/15/14...... Aa3 AA 11,451 2,000 Chicago, Illinois, School Finance Authority, GO, Series 1994A, (MBIA Insured), 4.800% 06/01/04...... Aaa AAA 2,066 1,160 Chicago, Illinois, School Finance Authority, GO, Series 1994A, (MBIA Insured), 4.900% 06/01/05...... Aaa AAA 1,208 2,000 Chicago, Illinois, Water Revenue Refunding, Series 1992, (AMBAC Insured), 5.600% 11/01/04...... Aaa AAA 2,097 4,000 Chicago, Illinois, Water Revenue, Series 1992, (AMBAC Insured), 5.400% 11/01/02...... Aaa AAA 4,124 2,000 Cook County, Illinois, Community College District Number 508, Certificates of Participation, Series 1990, (FGIC Insured), 8.750% 01/01/07...... Aaa AAA 2,470
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 3,000 Cook County, Illinois, GO, Series 1996, (FGIC Insured), 5.100% 11/15/03...... Aaa AAA $ 3,121 1,145 Du Page County, Illinois, School District, GO, Series 1997, (FGIC Insured), 6.750% 02/01/11...... Aaa NR 1,349 4,000 Illinois State, GO, Series 1994, 5.500% 08/01/03...... Aa2 AA 4,179 3,000 Illinois State, GO, Series 1994, (MBIA Insured), 5.500% 08/01/04...... Aaa AAA 3,178 6,850 Illinois State, GO, Series 2000, 5.750% 06/01/15...... Aaa AAA 7,412 12,500 Illinois State, Sales Tax Revenue Refunding, Series 1993S, 6.000% 06/15/03...... Aa2 AAA 13,171 4,000 Illinois State, Sales Tax Revenue, Series 1994, 5.625% 06/15/02...... Aa2 AAA 4,112 7,560 Illinois Student Assistance Commission, Student Loan Revenue, Series 1999RR, AMT, (GTD STD LNS), 4.250% 09/01/06...... Aaa NR 7,585 1,000 Illinois, Health Facilities Authority, Revenue Refunding, (Lutheran General Health Systems Project) Series 1993C, 5.250% 04/01/02...... A1 A+ 1,013 6,320 Illinois, Health Facilities Authority, Revenue, (Highland Park Hospital Project) Series 1991B, (FGIC Insured), 5.900% 10/01/12...... Aaa AAA 6,869 2,400 Illinois, Metropolitan Pier and Exposition Authority, Revenue, Series 1992, (MBIA- IBC Insured), 6.500% 06/01/05...... Aaa AAA 2,646 1,580 Illinois, Metropolitan Pier and Exposition Authority, Revenue, Series 1996A, (AMBAC Insured), 6.000% 12/15/06...... Aaa AAA 1,748
SEE NOTES TO FINANCIAL STATEMENTS. 105 110 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,050 Lansing, Illinois, Sales Tax Increment Revenue Refunding, (Landings Redevelopment Project) Series 1992, 6.500% 12/01/02...... NR BBB $ 1,088 1,000 Regional Transportation Authority of Illinois, Revenue, Series 1991A, (FGIC Insured), Prerefunded 11/01/01 @ 102, 6.350% 11/01/04...... Aaa AAA 1,038 3,300 Regional Transportation Authority of Illinois, Revenue, Series 1994A, (AMBAC Insured), 5.800% 06/01/05...... Aaa AAA 3,561 ---------- 111,795 ---------- INDIANA -- 1.7% 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...... VMG1 A- 6,023 1,040 Indiana, Health Facilities Financing Authority, Hospital Revenue Refunding, (Methodist Hospital of Indiana, Inc. Project) Series 1992, 6.500% 09/15/02...... A2 NR 1,075 4,390 Indiana, Health Facilities Financing Authority, Hospital Revenue, (Clarian Health Partners, Inc. Project) Series 1996A, 5.000% 02/15/04...... Aa3 AA 4,508 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- 3,194 3,000 Indiana, Municipal Power Agency, Power Supply Systems Revenue Refunding, Series 1993B, (MBIA Insured), 5.375% 01/01/03...... Aaa AAA 3,096
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- INDIANA -- (CONTINUED) $ 2,500 Indianapolis, Indiana, Airport Authority, Special Facilities Revenue, (Federal Express Corporation Project) Series 1994, AMT, 7.100% 01/15/17...... Baa2 BBB $ 2,656 ---------- 20,552 ---------- IOWA -- 1.7% 9,650 Iowa, Student Loan Liquidity Corporation, Student Loan Revenue Refunding, Series 1998J, AMT, (AMBAC Insured), 4.800% 06/01/09...... Aaa AAA 9,819 10,000 Iowa, Student Loan Liquidity Corporation, Student Loan Revenue, (Iowa College Student Aid Project) Series 1997B, AMT, 4.900% 12/01/05...... Aaa NR 10,371 ---------- 20,190 ---------- KANSAS -- 1.4% 5,000 Kansas State, Department of Transportation, Highway Revenue, Series 1992, 7.250% 03/01/05...... Aa2 AA+ 5,632 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 5,416 4,500 Kansas State, Development Finance Authority, Revenue, Series 1998A, 4.800% 06/01/13...... NR A- 4,556 2,175 Labette County, Kansas, Single-Family Mortgage Revenue, Zero Coupon Capital Accumulator Bonds, Series 1982, (Escrowed to Maturity), 4.880%+ 12/01/14..... Aaa A- 1,125 ---------- 16,729 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 106 111 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- 1.2% $ 1,500 Baltimore, Maryland, Port Facilities Revenue, (E.I. duPont de Nemours Project) Series 1985, 6.500% 12/01/10...... Aa3 AA- $ 1,592 4,890 Maryland State, GO Refunding, Series 1991-3, 6.250% 07/15/02...... Aaa AAA 4,932 3,500 Prince Georges County, Maryland, Solid Waste Management Systems Authority, Revenue Refunding, Series 1993, (FSA Insured), 5.200% 06/15/06...... Aaa AAA 3,671 2,000 Washington County, Maryland, Suburban Sanitation District Authority, General Construction GO Refunding, Series 1993, 5.000% 06/01/04...... Aaa AAA 2,092 2,500 Washington County, Maryland, Suburban Sanitation District Authority, Water Supply GO Refunding, Series 1993, 4.900% 12/01/05++.... Aaa AAA 2,629 ---------- 14,916 ---------- MASSACHUSETTS -- 3.8% 1,000 Massachusetts State, GO Refunding, Series 1993B, 5.000% 11/01/01...... Aa2 AA- 1,011 5,000 Massachusetts State, GO Refunding, Series 1993C, 5.000% 08/01/07...... Aa2 AA- 5,211 11,840 Massachusetts State, GO Refunding, Series 1993C, (AMBAC Insured), 4.950% 08/01/05...... Aaa AAA 12,402 4,000 Massachusetts State, GO Refunding, Series 1996A, 5.000% 11/01/09...... Aa2 AA- 4,206 1,000 Massachusetts State, Industrial Financing Agency, Revenue, (Babson College Issue Project) Series 1998A, (MBIA Insured), 5.000% 10/01/18...... Aaa AAA 998
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MASSACHUSETTS -- (CONTINUED) $ 6,000 Massachusetts State, Water Resources Authority, General Revenue Refunding, Series 1993B, 5.125% 03/01/04...... Aa3 AA $ 6,251 4,175 Massachusetts, Educational Financing Authority, Educational Loan Revenue Refunding, Series 1999A, AMT, (AMBAC Insured), 4.750% 07/01/11...... Aaa AAA 4,214 3,745 Massachusetts, Educational Financing Authority, Educational Revenue, Series 1998C, AMT, (MBIA Insured), 4.600% 12/01/08...... Aaa AAA 3,810 3,325 Massachusetts, Educational Financing Authority, Educational Revenue, Series 1998C, AMT, (MBIA Insured), 4.700% 12/01/09...... Aaa AAA 3,389 2,000 Massachusetts, University of Lowell Building Authority, Revenue, Series 1995A, (AMBAC Insured), 5.700% 11/01/09...... Aaa AAA 2,161 2,000 New England Education Loan Marketing Company of Massachusetts, Student Loan Revenue Refunding, Series 1993A, AMT, 5.700% 07/01/05...... Aa2 AA 2,118 ---------- 45,771 ---------- MICHIGAN -- 2.5% 7,500 Detroit, Michigan, Convention Facilities, Revenue Refunding, (Cobo Hall Expansion Project) Series 1993, (FSA Insured), 5.100% 09/30/04++.... Aaa AAA 7,869 2,000 Detroit, Michigan, GO Refunding, Series 1995B, 7.000% 04/01/04...... Baa1 A- 2,164
SEE NOTES TO FINANCIAL STATEMENTS. 107 112 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MICHIGAN -- (CONTINUED) $ 7,000 Michigan State, Hospital Finance Authority, Revenue, (Ascension Health Credit Project) Series 1999B, Mandatory Put 11/05/04 @ 100, 5.050% 11/15/33...... VMG1 AA $ 7,111 4,000 Michigan State, Hospital Finance Authority, Revenue, (Ascension Health Credit Project) Series 1999B, Mandatory Put 11/15/05 @ 100, 5.200% 11/15/33...... VMG1 AA 4,087 5,000 Michigan State, Hospital Financing Authority, Revenue, (Ascension Health Credit Project) Series 1999A, 5.750% 11/15/18...... Aaa AAA 5,221 3,195 Royal Oak, Michigan, Hospital Financing Authority, Hospital Revenue, (William Beaumont Hospital Project) Series 1997, 4.910%+ 11/15/07..... Aa3 AA 2,317 2,000 Royal Oak, Michigan, Hospital Financing Authority, Hospital Revenue, (William Beaumont Hospital Project) Series 1997K, 4.790%+ 11/15/06..... Aa3 AA 1,532 ---------- 30,301 ---------- MINNESOTA -- 1.2% 5,000 Minnesota State, GO, Series 1994, Prerefunded 10/01/04 @ 100, 5.600% 10/01/05...... Aaa AAA 5,342 2,150 Southern Minnesota Municipal Power Agency, Power Supply Systems Revenue, Refunded Balance, Series 1992B, 5.800% 01/01/07...... Aaa AAA 2,259 3,850 Southern Minnesota Municipal Power Agency, Power Supply Systems Revenue, Unrefunded Balance, Series 1992B, 5.800% 01/01/07...... A2 A+ 4,031
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MINNESOTA -- (CONTINUED) $ 3,200 St. Paul, Minnesota, Sewer Revenue Refunding, Series 1993, (AMBAC Insured), 5.100% 12/01/01...... Aaa AAA $ 3,242 ---------- 14,874 ---------- MISSISSIPPI -- 1.1% 3,000 Adams County, Mississippi, PCR, (International Paper Company Project) Series 1994A, 5.500% 12/01/05...... Baa1 BBB+ 3,077 7,000 Mississippi State, GO Refunding, Series 2000, 5.000% 12/01/08...... Aa3 AA 7,425 2,370 Mississippi, Higher Education Authority, Revenue, Series 1992C, AMT, (GTD STD LNS), 6.400% 01/01/03...... NR A 2,450 ---------- 12,952 ---------- MISSOURI -- 1.5% 4,000 Kansas City, Missouri, Industrial Development Authority, IDR, (Owens-Illinois, Inc. - Georgia-Pacific Corporation Project) Series 1998, 4.900% 12/31/08...... Baa2 NR 3,762 1,590 Kansas City, Missouri, Water Revenue, Series 1994, 5.900% 12/01/05...... Aa3 AA 1,712 1,500 Missouri State, Board of Public Buildings, Revenue Refunding, Series 1991, 5.900% 12/01/01...... Aa2 AA 1,527 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 3,192 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 2,137
SEE NOTES TO FINANCIAL STATEMENTS. 108 113 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MISSOURI -- (CONTINUED) $ 2,805 Platte County, Missouri, Public Building Corporation, Leasehold Revenue, (Law Enforcement Center Project) Series 1996, (FSA Insured), Prerefunded 03/01/02 @ 100, 5.300% 09/01/02...... Aaa AAA $ 2,858 1,565 St. Louis, Missouri, Metropolitan Sewer District, Mississippi River Subdistrict GO Refunding, Series 1991, (FGIC Insured), 6.400% 02/15/02...... Aaa AAA 1,569 1,000 St. Louis, Missouri, School District, GO, Series 1991, (FGIC Insured), Prerefunded 10/01/01 @ 102, 6.500% 04/01/03...... Aaa AAA 1,037 ---------- 17,794 ---------- MONTANA -- 0.3% 4,475 Lewis and Clark County, Montana, Environmental Facilities Revenue, (Asarco, Inc. Project) Series 1998, AMT, 5.850% 10/01/33...... B3 BB 3,409 ---------- NEBRASKA -- 0.4% 1,000 Lincoln, Nebraska, Electric Systems Revenue Refunding, Series 1993A, 5.000% 09/01/06...... Aa2 AA 1,044 3,500 Nebraska Public Power District, Power Supply Systems Revenue, Series 1993, 5.300% 01/01/02...... Aaa AAA 3,556 ---------- 4,600 ---------- NEVADA -- 1.5% 1,000 Clark County, Nevada, GO Refunding, Series 1991, (MBIA Insured), 6.200% 10/01/03...... Aaa AAA 1,024 6,175 Clark County, Nevada, School District, GO Refunding, Series 1993B, (FGIC Insured), 5.375% 05/01/05...... Aaa AAA 6,425
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NEVADA -- (CONTINUED) $ 1,000 Clark County, Nevada, School District, GO, Series 1991A, (MBIA Insured), 6.500% 06/01/02...... Aaa AAA $ 1,015 1,255 Nevada State, GO, Series 1995A, 5.200% 11/01/08...... Aa2 AA 1,321 6,570 Nevada State, GO, Series 1998A, 5.250% 05/15/16...... Aa2 AA 6,699 1,000 Nevada State, Municipal Board, GO, (Bank Project Number 28-31) Series 1989C, 7.000% 01/01/03...... Aaa AAA 1,013 1,000 Nevada State, Municipal Board, GO, (Bank Project Number 38-39) Series 1992A, 6.000% 07/01/01...... NR AA 1,007 ---------- 18,504 ---------- NEW JERSEY -- 2.2% 4,000 Bergen County, New Jersey, Utilities Authority, Water PCR, Series 1992B, (FGIC Insured), 5.500% 12/15/02...... Aaa AAA 4,148 3,340 New Jersey State Housing and Mortgage Finance Agency, Revenue, (Home Buyer Project), Series 1999, AMT, 5.300% 04/01/08...... Aaa AAA 3,533 3,440 New Jersey State Housing and Mortgage Finance Agency, Revenue, (Home Buyer Project), Series 1999, AMT, 5.400% 04/01/09...... Aaa AAA 3,667 5,000 New Jersey State, GO Refunding, Series 1992D, 5.500% 02/15/04...... Aa1 AA+ 5,271 10,000 New Jersey State, Transportation Trust Fund Authority, Transportation Systems Revenue, Series 1997A, 5.000% 06/15/14...... Aa2 AA 10,236 ---------- 26,855 ---------- NEW MEXICO -- 2.2% 3,000 Bernalillo County, New Mexico, Gross Receipts Tax Revenue Refunding, Series 1998, 5.250% 04/01/27...... Aa3 AA 3,107
SEE NOTES TO FINANCIAL STATEMENTS. 109 114 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NEW MEXICO -- (CONTINUED) $ 9,500 Lordburg, New Mexico, PCR Refunding, (Phelps Dodge Corporation Project) Series 1993, 6.500% 04/01/13...... Baa2 BBB $ 9,815 4,000 New Mexico State, GO, Series 1995, 5.250% 09/01/03...... Aa1 AA+ 4,006 6,000 New Mexico State, Highway Community Tax Revenue, Series 2000A, 6.000% 06/15/10...... Aa2 AA+ 6,788 1,270 New Mexico, Mortgage Finance Authority, Single-Family Mortgage Revenue, Series 1997C-2, AMT, (GNMA/FNMA/FHLMC COLL), 5.950% 07/01/17...... Aaa NR 1,321 2,040 New Mexico, Mortgage Finance Authority, Single-Family Mortgage Revenue, Series 1997E-2, AMT, (GNMA/FNMA/FHLMC COLL), 5.600% 07/01/17...... NR AAA 2,081 ---------- 27,118 ---------- NEW YORK -- 3.1% 3,000 New York City, New York, Municipal Assistance Corporation, Revenue, Series 1997J, 5.750% 07/01/03...... Aa1 AA+ 3,155 2,500 New York State, Building Authority, General Revenue, Series 1997, 5.000% 01/01/05...... Aa3 AA- 2,617 5,000 New York State, Dormitory Authority, Revenue, (City University Project) Series 1993B, 5.250% 07/01/06...... A3 AA- 5,305 7,000 New York State, Dormitory Authority, State University Educational Facilities Revenue, Series 1993A, 5.400% 05/15/04...... A3 AA- 7,382 4,000 New York, New York, City Transitional Finance Authority, Revenue, Series 1998B, 4.600% 11/15/11...... Aa2 AA+ 4,087
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NEW YORK -- (CONTINUED) $ 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 $ 2,408 3,500 New York, New York, GO, Series 1997, (MBIA Insured), 6.250% 04/15/07...... Aaa AAA 3,937 8,500 New York, New York, GO, Unrefunded Balance, Series 1995D, 5.750% 02/15/07...... A2 A 9,102 ---------- 37,993 ---------- NORTH CAROLINA -- 3.0% 4,300 Cary, North Carolina, Water and Public Improvement, GO, Series 2001, 5.000% 03/01/13...... Aaa AAA 4,488 3,000 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 6.000% 07/01/24...... Aaa AAA 3,197 2,000 Cumberland County, North Carolina, GO, Series 1998, (FGIC Insured), 5.000% 03/01/17...... Aaa AAA 2,024 5,000 Mecklenburg County, North Carolina, GO Refunding, Series 1992, 5.750% 03/01/03...... Aaa AAA 5,131 3,000 Mecklenburg County, North Carolina, Public Improvement GO, Series 1992, Prerefunded 01/01/02 @ 101, 6.200% 01/01/04...... Aaa AAA 3,097 1,895 North Carolina, Housing Finance Agency, (Single-Family Program) Series 1997RR, AMT, (FHA Insured), 5.850% 09/01/28...... Aa2 AA 1,944 4,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp, Inc. Project) Series 1996, 5.125% 05/01/16...... A1 AA- 3,985
SEE NOTES TO FINANCIAL STATEMENTS. 110 115 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $ 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- $ 3,149 3,000 North Carolina, Medical Care Commission, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1998B, 5.000% 12/01/18...... Aa3 AA- 2,897 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 4,979 1,200 Winston-Salem, North Carolina, Water and Sewer Systems Revenue Refunding, Series 1997, 4.600% 06/01/11...... Aa2 AA+ 1,221 ---------- 36,112 ---------- OHIO -- 1.5% 2,000 Akron/Bath/Copley, Ohio, Joint Township Hospital District, Revenue, (Summa Health Systems Project) Series 1993A, 5.750% 11/15/08...... Baa1 NR 1,952 6,060 Montgomery County, Ohio, Hospital Revenue, (Kettering Medical Center Project) Series 1999, 6.500% 04/01/13...... Baa1 BBB+ 6,260 5,000 Ohio State, Common Schools, GO, Series 2001A, 5.000% 06/15/12...... Aa1 AA+ 5,225 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 2,643
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- OHIO -- (CONTINUED) $ 1,695 Ohio, Housing Finance Agency, Mortgage Revenue, (Residential Project) Series 1998B-2, AMT, (GNMA COLL), 4.800% 09/01/07...... Aaa NR $ 1,737 ---------- 17,817 ---------- OKLAHOMA -- 0.7% 4,670 Oklahoma City, Oklahoma, Airport Trust Revenue, Series 2000B, AMT, (FSA Insured), 5.375% 07/01/11...... Aaa AAA 4,929 5,000 Oklahoma, Development Finance Authority, Revenue Refunding, (Hillcrest Healthcare Center Inc. Project) Series 1999A, 5.625% 08/15/19...... B2 B- 3,395 ---------- 8,324 ---------- OREGON -- 1.3% 6,000 Multnomah County, Oregon, School District Number 1J - Portland, GO, Series 1996, 5.500% 06/01/05...... Aa3 A+ 6,413 4,300 Portland, Oregon, Sewer Systems Revenue, Series 1994A, 5.450% 06/01/03...... A1 A+ 4,480 4,500 Washington County, Oregon, Sewer Revenue Refunding, Senior Lien, Series 1992A, (AMBAC Insured), 5.300% 10/01/01...... Aaa AAA 4,549 ---------- 15,442 ---------- PENNSYLVANIA -- 4.0% 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 5,412 3,075 Delaware County, Pennsylvania Authority, Health Care Revenue, Series 1993B, Prerefunded 11/15/05 @ 100, 6.000% 11/15/07...... Aaa NR 3,310
SEE NOTES TO FINANCIAL STATEMENTS. 111 116 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $ 2,890 Erie, Pennsylvania, Water Authority, Water Revenue, Series 1991, Prerefunded 12/01/01 @ 100, 7.125% 12/01/11...... Baa3 BBB $ 2,964 5,000 Pennsylvania State, GO Refunding, Series 1997, (AMBAC Insured), 5.125% 09/15/04...... Aaa AAA 5,256 10,000 Pennsylvania State, GO, Series 2001, 5.125% 01/15/16...... Aa2 AA 10,227 9,180 Pennsylvania, Housing Finance Agency, Single-Family Mortgage Revenue, Series 1997A-61, AMT, 5.450% 10/01/21...... Aa2 AA+ 9,248 2,500 Philadelphia, Pennsylvania, Industrial Development Authority, IDR Refunding, (Ashland Oil Inc. Project) Series 1993, 5.700% 06/01/05...... Baa2 NR 2,566 9,000 Philadelphia, Pennsylvania, Water and Wastewater Systems Revenue, Series 1993, (FGIC Insured), 5.500% 06/15/03...... Aaa AAA 9,377 ---------- 48,360 ---------- RHODE ISLAND -- 0.3% 55 Rhode Island State, GO, Series 1992A, 5.400% 08/01/06...... Aa3 AA- 56 2,945 Rhode Island State, GO, Series 1992A, Prerefunded 08/01/01 @ 102, 5.400% 08/01/06...... Aa3 AA- 3,025 ---------- 3,081 ---------- SOUTH CAROLINA -- 2.3% 2,195 Cherokee County, South Carolina, School District Number 001, GO, Series 1997, (SCSDE), 5.500% 03/01/06...... Aa1 NR 2,362 3,600 Cherokee County, South Carolina, School District Number 001, GO, Series 1997, (SCSDE), 5.000% 03/01/16...... Aa1 NR 3,631
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $ 3,210 Greenville Hospital Systems of South Carolina, Hospital Facilities Revenue, Series 1996B, (GTY- AGMT), 5.500% 05/01/08...... Aa3 AA $ 3,425 5,160 Piedmont Municipal Power Agency, South Carolina, Electric Revenue, Series 1996B, (FGIC Insured), 6.000% 01/01/07...... Aaa AAA 5,671 2,580 Piedmont Municipal Power Agency, South Carolina, Electric Revenue, Unrefunded Balance, Series 1991A, (FGIC Insured), 6.125% 01/01/03...... Aaa AAA 2,679 3,665 Richland County, South Carolina, Solid Waste Disposal Facilities Revenue, (Union Camp Corporation Project) Series 1992A, AMT, 6.750% 05/01/22...... Baa1 BBB+ 3,737 6,890 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24...... Baa2 BBB 6,421 ---------- 27,926 ---------- SOUTH DAKOTA -- 0.9% 11,000 Education Loans Inc., South Dakota, Student Loan Revenue, Series 1998, AMT, (GTD STD LNS), 4.950% 06/01/10...... Aaa NR 11,252 ---------- TENNESSEE -- 3.4% 5,000 Knox County, Tennessee, GO Refunding, Series 2001, 5.000% 04/01/09...... Aa2 AA 5,283 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 4,670
SEE NOTES TO FINANCIAL STATEMENTS. 112 117 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 6,270 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22...... Baa3 BBB $ 6,484 1,000 Memphis, Tennessee, Electric System Revenue Refunding, Series 1992, 5.800% 01/01/03...... Aa3 AA 1,040 1,925 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1992B, 5.625% 05/15/03...... Aa3 AA 2,008 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 1,122 6,450 Shelby County, Tennessee, GO Refunding, Series 1997B, 5.500% 08/01/08...... Aa3 AA+ 7,030 8,000 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (St. Jude's Childrens Research Project) Series 1999, 5.375% 07/01/24...... NR AA 7,953 1,190 Tennessee State, Housing Development Agency, Revenue, Series 1998, AMT, 4.950% 07/01/10...... Aa2 AA 1,226 4,000 Tennessee, Gas Revenue, (Tennergy Corporation Project) Series 1999, (MBIA Insured), 5.000% 06/01/05...... Aaa AAA 4,052 ---------- 40,868 ----------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- 12.0% $ 2,175 Aldine, Texas, Independent School District, GO Refunding, Series 1997, (PSF-GTD), 4.280%+ 02/15/07..... Aaa AAA $ 1,696 1,800 Austin, Texas, Utilities System Revenue Refunding, Series 1991A, (AMBAC Insured), 6.500% 11/15/03...... Aaa AAA 1,871 2,555 Austin, Texas, Utilities Systems Revenue, Series 1977-2, (Escrowed to Maturity), 5.600% 10/01/03...... Aaa AAA 2,691 5,000 Austin, Texas, Utilities Systems Revenue, Series 1986A, Prerefunded 05/15/01 @ 100, 8.000% 11/15/16...... Aaa AAA 5,030 2,585 Belton, Texas, Independent School District, GO Refunding, Series 1998, (PSF-GTD), 5.250% 08/15/08...... Aaa AAA 2,771 975 Brazos, Texas, Higher Education Authority Inc., Revenue Refunding, Senior Lien, Series 1994A-2, AMT, (GTD STD LNS), 6.050% 06/01/03...... Aaa NR 1,000 2,575 Carrollton, Texas, Farmers Branch Independent School District, GO, Series 1996, (PSF-GTD), 5.700% 02/15/17...... Aaa AAA 2,668 3,245 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.600% 08/15/04...... Aaa AAA 3,389 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- 2,176 1,050 Galena Park, Texas, Independent School District, GO, Series 1997, (PSF-GTD), 5.000% 08/15/21...... Aaa NR 1,020
SEE NOTES TO FINANCIAL STATEMENTS. 113 118 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 3,120 Garland, Texas, Certificates of Obligation, GO, Series 2000, 5.500% 02/15/12...... Aa2 AA $ 3,333 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- 10,514 2,730 Harris County, Texas, GO, Series 1996, 5.150% 10/01/07...... Aa1 AA+ 2,886 1,000 Harris County, Texas, GO, Series 1996, 5.375% 10/01/09...... Aa1 AA+ 1,057 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 2,579 5,000 Harris County, Texas, Health Facilities Development Authority, Revenue, Series 1999A, 5.375% 07/01/19...... Aaa AAA 4,962 6,755 Houston, Texas Airport System Revenue, Sub- Lien, Series 2000A, AMT, (FSA Insured), 6.000% 07/01/09...... Aaa AAA 7,466 7,000 Houston, Texas, Airport System Revenue, Sub- Lien, Series 1998B, AMT, (FGIC Insured), 5.250% 07/01/12...... Aaa AAA 7,236 7,000 Houston, Texas, Water and Sewer Systems Revenue Refunding, Junior Lien, Series 1997D, (FGIC Insured), 5.000% 12/01/25...... Aaa AAA 6,768 6,360 Houston, Texas, Water Systems Revenue, Series 1979, 6.400% 12/01/14...... Aaa AAA 7,208
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 1,000 Lewisville, Texas, Independent School District, GO, Series 1997, (PSF-GTD), 6.750% 08/15/08...... Aaa NR $ 1,160 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 5,407 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 5,437 6,000 Red River Authority, Texas, PCR Refunding, Series 1991, (AMBAC Insured), 5.200% 07/01/11...... Aaa NR 6,239 2,110 Richardson, Texas, GO Refunding, Series 1998, 5.250% 02/15/07...... Aa1 AA+ 2,249 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 5,142 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 5,017 3,200 Texas A&M University, Financing Systems Revenue, Series 1995, 5.950% 05/15/05++.... Aa1 AA+ 3,469
SEE NOTES TO FINANCIAL STATEMENTS. 114 119 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 4,000 Texas State, GO Refunding, (Superconducting Project) Series 1992C, 5.350% 04/01/01...... Aa1 AA $ 4,000 3,000 Texas State, GO Refunding, Series 1992A, 5.700% 10/01/03...... Aa1 AA 3,162 5,000 Texas State, Turnpike Authority, Dallas North Tollway Revenue, (President George Bush Turnpike Project) Series 1995, (FGIC Insured), 5.000% 01/01/25...... Aaa AAA 4,811 1,000 Texas State, Veterans Housing Assistance, GO, Series 1994B-4, AMT, 6.100% 12/01/06...... Aa1 AA 1,043 10,910 Texas State, Water Development GO, Series 1997D, 5.000% 08/01/19...... Aa1 AA 10,768 4,790 Texas, Municipal Power Agency, Revenue, Refunded Balance, Series 1992, (MBIA Insured), Prerefunded 09/01/02 @ 100, 5.750% 09/01/12...... Aaa AAA 4,959 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 2,017 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 4,738 ---------- 147,939 ----------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- UTAH -- 1.5% $ 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 $ 2,324 1,000 Davis County, Utah, School District, GO, Series 1991, (FGIC Insured), Prerefunded 12/01/01 @ 100, 6.450% 06/01/02...... Aaa AAA 1,022 1,000 Jordan, Utah, School District, GO Refunding, Series 1993, 5.600% 06/15/02...... Aa2 NR 1,028 5,080 Salt Lake County, Utah, GO, Series 1995, 5.500% 12/15/05...... Aaa AAA 5,485 2,500 Utah State, Student Loan Revenue, Series 1995N, AMT, (AMBAC Insured, GTD STD LNS), 5.900% 11/01/07...... Aaa AAA 2,693 5,000 Utah, Intermountain Power Agency, Power Supply Revenue Refunding, Series 1993C, 5.000% 07/01/05...... A1 A+ 5,210 ---------- 17,762 ---------- VIRGINIA -- 4.1% 6,170 Chesapeake, Virginia, GO Refunding, Series 1993, 5.000% 12/01/03...... Aa3 AA 6,429 4,000 Chesterfield County, Virginia, Improvement GO Refunding, Series 1991, 6.250% 07/15/05...... Aaa AAA 4,113 6,000 Covington-Allegheny County, Virginia, Industrial Development Authority, PCR Refunding, (Westvaco Corporation Project) Series 1994, 5.900% 03/01/05...... Baa1 BBB+ 6,235 5,790 Fairfax County, Virginia, GO Refunding, Series 1993C, (State Aid Withholding), 5.000% 05/01/05...... Aaa AAA 6,059
SEE NOTES TO FINANCIAL STATEMENTS. 115 120 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 2,500 Newport News, Virginia, GO Refunding, Series 1993B, (State Aid Withholding), 5.400% 11/01/06...... Aa2 AA $ 2,648 3,000 Virginia Beach, Virginia, GO Refunding, Series 1993, 5.100% 07/15/05...... Aa1 AA 3,177 1,100 Virginia State, Higher Educational Institutions, GO, Series 1992C, Prerefunded 06/01/02 @ 100, 5.900% 06/01/05...... Aaa AAA 1,134 4,845 Virginia State, Housing Development Authority, Multi-Family Housing Revenue, Series 1999B, AMT, 5.200% 05/01/19...... Aa1 AA+ 4,735 1,500 Virginia State, Public Facilities GO, Series 1993A, 5.400% 06/01/05...... Aaa AAA 1,584 4,000 Virginia State, Public School Authority, Revenue Refunding, Series 1993B, (State Aid Withholding), 5.100% 01/01/05...... Aa1 AA 4,204 7,000 Virginia State, Public School Authority, Revenue Refunding, Series 1993B, (State Aid Withholding), 5.250% 01/01/07...... Aa1 AA 7,372 2,600 Virginia, College Building Authority, Educational Facilities Revenue Refunding, (University of Richmond Project) Series 1992, 5.625% 11/01/02...... Aa2 AA 2,631 ---------- 50,321 ---------- WASHINGTON -- 6.7% 1,610 Clark County, Washington, Sewer Revenue, Series 1996, (MBIA Insured), 5.500% 12/01/04...... Aaa AAA 1,712 2,500 King County, Washington, GO Refunding, Series 1993C, 5.625% 06/01/02...... Aaa AA+ 2,569
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,000 King County, Washington, GO Refunding, Series 1998B, 4.750% 01/01/17...... Aa1 AA+ $ 958 1,700 King County, Washington, GO, Unrefunded Balance, Series 1993A, 5.250% 12/01/01...... Aa1 AA+ 1,724 1,310 King County, Washington, School District Number 415, GO, (FSA Insured), 5.200% 06/01/05...... Aaa AAA 1,384 3,000 Pierce County, Washington, School District Number 003, GO Refunding, Series 1996, (FGIC Insured), 5.000% 12/01/03...... Aaa AAA 3,117 1,400 Seattle, Washington, Water Systems Revenue Refunding, Series 1993, 5.500% 06/01/18...... Aa2 AA 1,427 1,000 Snohomish County, Washington, School District Number 002, GO Refunding, Series 1991A, (MBIA Insured), Prerefunded 06/01/01 @ 100, 6.800% 06/01/03...... Aaa AAA 1,006 7,800 Spokane County, Washington, School District Number 354 GO, Series 1998, (FGIC Insured), 5.500% 12/01/10...... Aaa AAA 8,553 2,195 Tacoma, Washington, Electric Systems Revenue, Series 1992, (AMBAC Insured), 5.900% 01/01/05++.... Aaa AAA 2,277 1,000 Tacoma, Washington, GO, Series 1992A, 5.750% 07/01/02...... A1 A+ 1,029 2,100 Tacoma, Washington, Sewer Revenue Refunding, Series 1994B, (FGIC Insured), 5.500% 12/01/03...... Aaa AAA 2,209 3,500 Washington State, GO Refunding, Series 1991R-92A, 6.400% 09/01/03...... Aa1 AA+ 3,576 1,000 Washington State, GO Refunding, Series 1991R-92B, 6.500% 09/01/04...... Aa1 AA+ 1,022
SEE NOTES TO FINANCIAL STATEMENTS. 116 121 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 3,000 Washington State, GO Refunding, Series 1992R-92C, 5.600% 09/01/01...... Aa1 AA+ $ 3,031 10,000 Washington State, GO Refunding, Series 1993R-93B, 5.125% 10/01/04++.... Aa1 AA+ 10,498 6,645 Washington State, GO Refunding, Series 1997R-98A, 5.000% 07/01/15...... Aa1 AA+ 6,701 3,260 Washington State, GO, Series 1997E, 5.000% 07/01/22...... Aa1 AA+ 3,172 2,500 Washington State, Public Power Supply System Revenue Refunding, (Nuclear Project Number 1) Series 1996A, (AMBAC Insured), 6.000% 07/01/05...... Aaa AAA 2,716 7,500 Washington State, Public Power Supply Systems Revenue Refunding, Series 1990C, (FGIC Insured), 7.000% 07/01/01...... Aaa AAA 7,570 2,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1991A, 6.500% 07/01/03...... Aa1 AA- 2,054 1,150 Washington State, Public Power Supply Systems Revenue Refunding, Series 1993A, 5.800% 07/01/07...... Aa1 AA- 1,253 3,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1993B, (FSA Insured), 5.400% 07/01/05++.... Aaa AAA 3,189 8,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1996A, (AMBAC Insured), 5.500% 07/01/04...... Aaa AAA 8,450 2,000 Yakima County, Washington, School District Number 7, GO, Series 1994, (MBIA Insured), 5.500% 12/01/03...... Aaa AAA 2,102 ---------- 83,299 ----------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WISCONSIN -- 3.2% $ 5,000 Kaukauna, Wisconsin, PCR, Refunding, (International Paper Project) Series 1997A, 5.150% 07/01/06...... Baa1 BBB+ $ 4,957 2,500 Milwaukee County, Wisconsin, GO, Series 2001A, 5.000% 10/01/12(a)... Aa3 AA 2,602 2,500 Milwaukee County, Wisconsin, GO, Series 2001A, 5.000% 10/01/13(a)... Aa3 AA 2,576 5,790 Milwaukee, Wisconsin, Metropolitan Sewer District, GO Refunding, Series 1997A, 5.125% 10/01/16...... Aa1 AA+ 5,852 3,070 Sun Prairie, Wisconsin, Area School District, GO, Promissory Notes, Series 1996, (FGIC Insured, Escrowed to Maturity), 5.500% 04/01/03...... Aaa AAA 3,196 3,000 Wisconsin State, GO Refunding, Series 1993-1, 5.100% 11/01/01...... Aa2 AA 3,035 1,000 Wisconsin State, GO Refunding, Series 1995-2, 5.200% 11/01/07...... Aa2 AA 1,051 4,745 Wisconsin State, GO, Series 1996A, 5.000% 05/01/16...... Aa2 AA 4,764 8,000 Wisconsin State, Petroleum Revenue, Series 2000A, 5.750% 07/01/08...... Aa3 AA- 8,628 2,735 Wisconsin, Housing and Economic Development Authority, Revenue, Series 1997G, 5.350% 03/01/12...... Aa2 AA 2,840 ---------- 39,501 ---------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $1,167,363).................... 1,209,648 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 117 122 NATIONS FUNDS Nations Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
SHARES VALUE (000) (000) ------------------------------------------------------------ INVESTMENT COMPANIES -- 0.9% (Cost $11,175) 11,175 Nations Municipal Reserves#........ $ 11,175 ---------- TOTAL INVESTMENTS (Cost $1,178,538*)........ 100.1% 1,220,823 ---------- OTHER ASSETS AND LIABILITIES (NET)..................... (0.1)% Receivable for Fund shares sold.... $ 347 Interest receivable................ 19,066 Payable for Fund shares redeemed... (9,729) Investment advisory fee payable.... (260) Administration fee payable......... (209) Shareholder servicing and distribution fees payable........ (7) Distributions payable.............. (4,683) Payable for investment securities purchased........................ (5,197) Accrued Trustees' fees and expenses......................... (30) Accrued expenses and other liabilities...................... (181) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................ (883) ---------- NET ASSETS.................. 100.0% $1,219,940 ========== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 1,190 Accumulated net realized loss on investments sold................. (3,679) Net unrealized appreciation of investments...................... 42,285 Paid-in capital.................... 1,180,144 ---------- NET ASSETS......................... $1,219,940 ========== PRIMARY A SHARES: Net asset value, offering and redemption price per share ($1,196,121,141 / 117,786,852 shares outstanding).............. $10.15 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($20,727,561 / 2,041,231 shares outstanding)..................... $10.15 ===== Maximum sales charge............... 3.25% Maximum offering price per share... $10.49 INVESTOR B SHARES: Net asset value and offering price per share** ($2,563,348 / 252,486 shares outstanding).............. $10.15 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($527,529 / 51,945 shares outstanding).............. $10.16 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $42,285 on investment securities was comprised of gross appreciation of $46,409 and gross depreciation of $4,124 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $1,178,538. ** 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. ++ All or a portion of security segregated as collateral for "when issued" securities. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. (a) Security purchased on a "when issued" basis. Nations Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 11.08% AMBAC 10.44% SEE NOTES TO FINANCIAL STATEMENTS. 118 123 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.1% ALABAMA -- 3.5% $ 2,000 Birmingham, Alabama, GO Refunding, Series 1992B, 6.250% 04/01/12........ Aa3 AA $ 2,090 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- 3,181 7,210 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue Refunding, (Champion International Corporation Project) Series 1997, AMT, 5.750% 11/01/27........ Baa1 NR 6,812 2,400 Daphne, Alabama, Special Care Facilities Financing Authority, Revenue, (Presbyterian Retirement Corporation Project) Series 1988A, Prerefunded 08/15/01 @ 100, 7.300% 08/15/18........ NR NR 2,435 1,100 Huntsville, Alabama, GO, Series 1995A, 5.750% 02/01/14........ Aa2 AA 1,158 3,600 Jefferson County, Alabama, Sewer Revenue Refunding, Series 1997A, (FGIC Insured), 5.625% 02/01/18........ Aaa AAA 3,745 2,000 Jefferson County, Alabama, Sewer Revenue Refunding, Series 1997A, (FGIC Insured), 5.625% 02/01/22........ Aaa AAA 2,070 1,000 Mcintosh, Alabama, Industrial Development Board, Environmental Improvement Revenue, Series 1998C, 5.375% 06/01/28........ A2 AA- 979 1,000 Morgan County - Decatur, Alabama, Health Care Authority, Hospital Revenue Refunding, (Decatur General Hospital Project) Series 1994, (CONNIE LEE Insured), 6.250% 03/01/13........ NR AAA 1,080
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ALABAMA -- (CONTINUED) $ 9,750 Phoenix County, Alabama, Industrial Development Board, Environmental Import Revenue Refunding, (Mead Coated Board Project) Series 1998B, (GTY-AGMT), 5.250% 04/01/28........ A3 BBB+ $ 9,456 -------- 33,006 -------- ALASKA -- 2.6% 2,500 Alaska, Student Loan Corporation, Student Loan Revenue, Series 1999A, AMT, (AMBAC Insured), 4.900% 07/01/08........ Aaa AAA 2,555 1,000 Anchorage, Alaska, Electric Utilities Revenue Refunding, Senior Lien, Series 1993, (MBIA Insured), 8.000% 12/01/09........ Aaa AAA 1,265 7,000 Anchorage, Alaska, Electric Utilities Revenue, Senior Lien, Series 1996B, (MBIA Insured), 5.500% 02/01/26........ Aaa AAA 7,119 2,250 Anchorage, Alaska, Telephone Utilities Revenue Refunding, Series 1994A, (AMBAC Insured), 4.500% 12/01/02........ Aaa AAA 2,296 1,190 Anchorage, Alaska, Telephone Utilities Revenue, Series 1996A, (MBIA Insured), 5.750% 03/01/12........ Aaa AAA 1,306 1,000 North Slope Borough, Alaska, Capital Appreciation GO, Series 1995A, (MBIA Insured), 4.190%+ 06/30/06....... Aaa AAA 804 15,000 North Slope, Borough, Alaska, Capital Appreciation GO, Series 2000B, (MBIA Insured), 4.710%+ 06/30/11....... Aaa AAA 9,308 -------- 24,653 -------- ARIZONA -- 1.0% 1,000 Maricopa County, Arizona, Unified School District Number 48, GO Refunding, Series 1991B, 6.300% 07/01/04........ Aa2 AA 1,084
SEE NOTES TO FINANCIAL STATEMENTS. 119 124 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 1,300 Maricopa County, Arizona, Unified School District Number 48, GO Refunding, Series 1993B, 4.600% 07/01/11........ Aa2 AA $ 1,319 3,000 Maricopa County, Arizona, United School District Number 48, GO, Series 1995, 5.000% 07/01/14........ Aa2 AA 3,054 1,600 Pima County, Arizona, United School District Number 1, GO, Series 1992D, (FGIC Insured), Prerefunded 07/01/02 @ 102, 6.100% 07/01/11........ Aaa AAA 1,686 5,000 Tucson and Pima County, Arizona, Industrial Development Authority, Single-Family Mortgage Revenue, Series 1983A, 4.920%+ 12/01/14....... Aaa AAA 2,573 -------- 9,716 -------- ARKANSAS -- 0.5% 1,300 Arkansas State, Development Finance Authority, Revolving Loan Fund, Wastewater Systems Revenue, Series 1996A, 5.700% 12/01/12........ NR AA 1,391 3,425 Blytheville, Arkansas, Solid Waste Recycling and Sewer Treatment Revenue, (Nucor Corporation Project) Series 1993, AMT, 6.375% 01/01/23........ A1 AA- 3,552 -------- 4,943 -------- CALIFORNIA -- 3.2% 5,000 ABAG Finance Authority for NonProfit Corporations, California, Multi-Family Revenue Refunding, Series 2000A, AMT, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.400% 08/15/30........ Baa2 BBB 5,205
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 2,000 ABAG Finance Authority for NonProfit Corporations, California, Multi-Family Revenue Refunding, Series 2000B, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.250% 08/15/30........ Baa2 BBB $ 2,082 1,600 California State, GO, Series 1983, 9.100% 11/01/01........ Aa2 AA 1,657 1,000 California State, GO, Series 1983, 9.000% 06/01/02........ Aa2 AA 1,067 1,000 California State, GO, Series 1983, 9.000% 10/01/03........ Aa2 AA 1,134 1,000 California State, GO, Series 1983, 9.000% 04/01/05........ NR AA 1,197 1,000 California State, GO, Series 1984, 9.100% 10/01/02........ Aa2 AA 1,086 1,000 California State, GO, Series 1989, 7.200% 04/01/05........ Aa2 AA 1,131 1,600 California State, GO, Series 1989, 7.100% 03/01/07........ Aa2 AA 1,866 4,000 California State, GO, Series 1990, 7.000% 08/01/04........ Aa2 AA 4,433 3,300 California State, GO, Series 1990, 7.000% 08/01/05........ Aa2 AA 3,739 2,000 San Diego, California, Public Facilities Financing Authority, Revenue, Series 1997B, (FGIC Insured), 5.375% 05/15/16........ Aaa AAA 2,095 2,500 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding, (AMBAC Insured), 6.750% 07/01/11........ Aaa AAA 3,038 -------- 29,730 -------- 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 1,736
SEE NOTES TO FINANCIAL STATEMENTS. 120 125 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- COLORADO -- (CONTINUED) $ 2,500 Douglas County, Colorado, Sales and Use Tax Revenue, Series 1996, (MBIA Insured), 5.500% 10/15/11........ Aaa AAA $ 2,636 -------- 4,372 -------- CONNECTICUT -- 0.8% 10 Connecticut State, GO, Series 1996A, Prerefunded 05/15/06 @ 101, 5.300% 05/15/10........ Aa2 AA 11 990 Connecticut State, GO, Unrefunded Balance, Series 1996A, 5.300% 05/15/10........ Aa3 AA 1,072 5,000 Connecticut State, Health and Educational Facilities Authority, Revenue, (Eastern Connecticut Health Network Project) Series 2000A, 6.000% 07/01/25........ NR AA 5,274 885 Connecticut State, Housing Finance Authority, Revenue, (Housing Mortgage Finance Program) Series 1994A, 6.100% 05/15/13........ Aa2 AA 931 -------- 7,288 -------- 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 9,365 3,905 District of Columbia, Revenue Refunding, (Howard University Project) Series 1996, (MBIA Insured), 5.750% 10/01/12........ Aaa AAA 4,206 3,985 District of Columbia, Revenue Refunding, (Howard University Project) Series 1996, (MBIA Insured), 5.750% 10/01/17........ Aaa AAA 4,193
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- DISTRICT OF COLUMBIA -- (CONTINUED) $ 4,200 District of Columbia, Revenue, (Association of American Medical Colleges Project) Series 1997A, (AMBAC Insured), 5.375% 02/15/17........ Aaa AAA $ 4,289 10,400 District of Columbia, Revenue, (Carnegie Endowment Project) Series 1996, 5.750% 11/15/26........ Aa3 NR 10,711 -------- 32,764 -------- FLORIDA -- 1.0% 1,735 Florida State, Board of Education, Capital Outlay GO, Unrefunded Balance, Series 1985, 9.125% 06/01/14........ Aa2 AA+ 2,410 7,000 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24........ Aaa AAA 6,539 -------- 8,949 -------- GEORGIA -- 6.4% 5,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 2000A, (FGIC Insured), 5.600% 01/01/30........ Aaa AAA 5,230 1,000 DeKalb County, Georgia, School District GO, Series 1993A, 6.250% 07/01/09........ Aa2 AA 1,146 3,000 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18........ Baa3 BBB- 2,800 4,750 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Josephs Hospital Project) Series 1994, 5.500% 10/01/18........ Aaa NR 4,893 1,600 Georgia State, GO, Series 1991C, 6.500% 04/01/04........ Aaa AAA 1,734 3,000 Georgia State, GO, Series 1992B, 6.250% 03/01/11........ Aaa AAA 3,487 3,000 Georgia State, GO, Series 1996B, 6.250% 04/01/07........ Aaa AAA 3,377
SEE NOTES TO FINANCIAL STATEMENTS. 121 126 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 6,445 Georgia State, GO, Series 1998B, 5.500% 07/01/10........ Aaa AAA $ 7,107 9,965 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1999B-2, AMT, 6.100% 06/01/31........ Aa2 AAA 10,384 1,650 Gwinnett County, Georgia, Water and Sewer Certificates of Participation, Series 1991, 8.600% 08/01/03........ Aaa AAA 1,838 1,945 Henry County, Georgia, School District GO, Series 1994, (MBIA Insured), 6.000% 08/01/14........ Aaa AAA 2,131 1,000 Metropolitan Atlanta, Rapid Transit Authority of Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 6.000% 07/01/04........ Aaa AAA 1,075 1,000 Metropolitan Atlanta, Rapid Transit Authority of Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 6.100% 07/01/05........ Aaa AAA 1,095 2,000 Metropolitan Atlanta, Rapid Transit Authority of Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 6.250% 07/01/20........ Aaa AAA 2,334 2,000 Monroe County, Georgia Development Authority, PCR, (Oglethorpe Power Corporation Project) Series 1992A, 6.800% 01/01/11........ A3 A 2,314 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 3,239 2,000 Savannah, Georgia, Hospital Authority, Hospital Improvement Revenue, (St. Joseph's Hospital Project) Series 1993, Prerefunded 07/01/03 @ 102, 6.125% 07/01/12++...... A2 NR 2,156
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 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 $ 2,842 -------- 59,182 -------- HAWAII -- 0.9% 4,000 Hawaii State, GO, Series 1997CN, (FGIC Insured), 6.250% 03/01/04........ Aaa AAA 4,287 1,180 Honolulu City and County, Hawaii, GO Refunding, Series 1993B, 8.000% 10/01/10........ Aa3 AA- 1,516 2,100 Maui County, Hawaii, GO Refunding, Series 1993, (FGIC Insured), 5.000% 09/01/03........ Aaa AAA 2,175 -------- 7,978 -------- ILLINOIS -- 10.1% 1,600 Chicago, Illinois, GO, Series 1993, (FGIC Insured), 5.375% 01/01/13........ Aaa AAA 1,650 3,030 Chicago, Illinois, Metropolitan Water Reclamation District GO, Series 1993, 5.500% 12/01/12........ Aa1 AA 3,320 3,385 Chicago, Illinois, Metropolitan Water Reclamation District, Capital Improvement GO, Series 1991, 6.900% 01/01/07........ Aa1 AA 3,877 5,000 Chicago, Illinois, O'Hare International Airport Special Facilities Revenue, (United Air Lines Project) Series 1999A, 5.350% 09/01/16........ Baa2 BB+ 4,414 13,000 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Second Lien, Series 1999, AMT, (AMBAC Insured), 5.500% 01/01/10........ Aaa AAA 13,892
SEE NOTES TO FINANCIAL STATEMENTS. 122 127 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
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 $ 2,956 2,640 Chicago, Illinois, O'Hare International Airport, Revenue Refunding, Senior Lien, Series 1993A, 5.000% 01/01/16........ A1 A+ 2,602 1,500 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue Refunding, (American Airlines Inc. Project) Series 1994, (GTY-AGMT), 8.200% 12/01/24........ Baa1 BBB- 1,676 5,735 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue Refunding, (United Air Lines Project) Series 1999B, AMT, 5.200% 04/01/11........ Baa2 BB+ 5,265 2,000 Chicago, Illinois, Park District, GO, Series 1996, (MBIA Insured), 5.500% 01/01/16........ Aaa AAA 2,081 4,800 Chicago, Illinois, Water Revenue, Senior Lien, Series 2000, (AMBAC Insured), 5.750% 11/01/10........ Aaa AAA 5,334 2,800 Cook County, Illinois, Forest Preserve District, Zoo GO, Series 1996, (MBIA Insured), 5.800% 11/01/16........ Aaa AAA 2,962 4,500 Cook County, Illinois, GO, Series 1996, (FGIC Insured), Prerefunded 11/15/06 @ 101, 5.900% 11/15/16........ Aaa AAA 5,019 5,000 Cook County, Illinois, GO, Series 1997A, (MBIA Insured), 5.625% 11/15/22........ Aaa AAA 5,199 2,900 Du Page County, Illinois, GO, Series 1993, 5.500% 01/01/13........ Aaa AAA 2,992 2,565 Du Page County, Illinois, GO, Series 1993, 5.600% 01/01/21........ Aaa AAA 2,760
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,000 Du Page, Illinois, Water Commission, Revenue Refunding, Series 1993, 5.250% 05/01/14........ Aa1 AA $ 1,019 1,730 Glendale Heights, Illinois, Hospital Revenue Refunding, (Glendale Heights Project) Series 1985B, 7.100% 12/01/15........ Aaa AAA 2,065 3,700 Illinois State, GO, Series 1993, 5.500% 08/01/18........ Aa2 AA 3,775 2,400 Illinois State, GO, Series 1994, 5.800% 04/01/19........ Aa2 AA 2,493 4,785 Illinois State, GO, Series 1995, (MBIA Insured), 6.000% 02/01/16........ Aaa AAA 5,174 1,645 Illinois State, Health Facilities Authority, Revenue, (Sherman Health Systems Project) Series 1997, (AMBAC Insured), 5.500% 08/01/08........ Aaa AAA 1,770 1,500 Illinois State, Sales Tax Revenue, Series 1994V, 6.375% 06/15/17........ Aa2 AAA 1,619 2,200 Illinois State, Sales Tax Revenue, Series 1994V, 6.375% 06/15/20........ Aa2 AAA 2,370 1,000 Illinois, Development Finance Authority, PCR Refunding, (Commonwealth Edison Company Project) Series 1994D, (AMBAC Insured), 6.750% 03/01/15........ Aaa AAA 1,115 1,800 Illinois, Educational Facilities Authority, Revenue, (Northwestern University Project) Series 1993, 5.375% 12/01/21........ Aa1 AA+ 1,821 1,535 McHenry County, Illinois, Community Unit School District Number 200 GO, Series 1996A, (FSA Insured), 5.750% 01/01/13........ Aaa AAA 1,640
SEE NOTES TO FINANCIAL STATEMENTS. 123 128 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 2,680 Southern Illinois, Capital Appreciation University Revenue, (Housing and Auxiliary Facilities Systems Program) Series 1997, (MBIA Insured), 4.170%+ 04/01/06....... Aaa AAA $ 2,180 -------- 93,040 -------- INDIANA -- 3.1% 2,500 Franklin, Indiana, Economic Development Revenue Refunding, (Hoover Universal, Inc. Project) Series 1994, (GTY-AGMT), 6.100% 12/01/04........ A2 A- 2,684 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 1,052 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 1,054 6,480 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 6,852 2,000 Indiana, Health Facilities Financing Authority, Hospital Revenue, (Clarian Health Partners, Inc. Project) Series 1996A, 5.500% 02/15/16........ Aa3 AA 2,020 2,000 Indiana, Ivy Tech State College, Revenue, Series 1997E, (AMBAC Insured), 5.125% 07/01/12............... Aaa AAA 2,080
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- INDIANA -- (CONTINUED) $ 5,000 Indianapolis, Indiana, Airport Authority, Special Facilities Revenue Refunding, (Federal Express Corporation Project) Series 1998, AMT, 5.500% 05/01/29........ Baa2 BBB $ 4,413 2,000 Indianapolis, Indiana, Airport Authority, Special Facilities Revenue, (Federal Express Corporation Project) Series 1994, AMT, 7.100% 01/15/17... Baa2 BBB 2,125 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 2,037 4,695 St. Joseph County, Indiana, Educational Facilities Revenue, (University of Notre Dame - Du Lac Project) Series 1997, 5.250% 03/01/21............... Aaa NR 4,705 -------- 29,022 -------- 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 2,798 -------- KANSAS -- 0.2% 2,000 Kansas City, Kansas, Utility System Improvement Revenue Refunding, Series 1994, (FGIC Insured), 6.250% 09/01/14............... Aaa AAA 2,183 -------- 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 1,089 --------
SEE NOTES TO FINANCIAL STATEMENTS. 124 129 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- LOUISIANA -- 0.4% $ 3,500 East Baton Rouge Parish, Louisiana, Revenue Refunding, (Pacific Corporation Project) Series 1998, AMT, 5.350% 09/01/11........ Baa3 NR $ 3,300 -------- MAINE -- 0.1% 1,000 Maine, Health and Higher Educational Facilities Authority, Revenue, Series 1996B, (State Aid Withholding, AMBAC Insured), 5.500% 07/01/16........ Aaa AAA 1,029 -------- MARYLAND -- 0.3% 3,000 Maryland State, Economic Development Corporation, Student Housing Revenue, (Salisbury Collegiate Housing Project) Series 1999A, 6.000% 06/01/30........ Baa3 NR 2,892 -------- MASSACHUSETTS -- 1.3% 4,000 Massachusetts State, Consolidated Loan GO, Series 1996B, (FGIC Insured), 5.500% 06/01/10........ Aaa AAA 4,365 2,000 Massachusetts State, GO, Series 1995B, (AMBAC Insured), 5.500% 07/01/15........ Aaa AAA 2,165 3,000 Massachusetts State, Water Resources Authority, General Revenue, Series 1993C, (AMBAC Insured), 5.250% 12/01/15........ Aaa AAA 3,209 2,500 Massachusetts State, Water Resources Authority, General Revenue, Series 1994A, (MBIA Insured), Prerefunded 08/01/04 @ 101.50, 5.900% 08/01/16........ Aaa AAA 2,722 -------- 12,461 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MICHIGAN -- 3.0% $ 1,670 Byron Center, Michigan, Public Schools GO, Series 1995, (MBIA Insured), Prerefunded 05/01/05 @ 101, 5.970% 05/01/15........ Aaa AAA $ 1,832 1,000 Detroit, Michigan, GO Refunding, Series 1995B, 6.375% 04/01/07........ Baa1 A- 1,079 1,700 Hudsonville, Michigan, Public Schools, Series 1994B, (FGIC Insured), Prerefunded 05/01/04 @ 102, 6.000% 05/01/14........ Aaa AAA 1,854 1,250 Kalamazoo, Michigan, City School District, GO Refunding, Series 1996, (FGIC Insured), 5.650% 05/01/14........ Aaa AAA 1,371 3,000 Lakeshore, Michigan, Public Schools, GO, Series 1995, (MBIA Insured), 5.750% 05/01/15........ Aaa AAA 3,262 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 1,098 3,000 Michigan State, Comprehensive Transportation Revenue Refunding, Series 1996A, (MBIA Insured), 5.250% 08/01/13........ Aaa AAA 3,113 3,435 Michigan State, Environmental Protection Program GO, Series 1992, 6.250% 11/01/12........ Aaa AAA 3,979 7,880 Michigan State, Hospital Finance Authority Revenue, (Henry Ford Health Systems Project) Series 1999A, 6.000% 11/15/19........ A1 AA- 8,142 2,000 Michigan State, Trunk Line Revenue, Series 1994A, (FGIC-TCRS Insured), Prerefunded 11/15/04 @ 102, 5.625% 11/15/14........ Aaa AAA 2,178 -------- 27,908 --------
SEE NOTES TO FINANCIAL STATEMENTS. 125 130 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MISSISSIPPI -- 1.2% $ 5,000 Adams County, Mississippi, PCR, (International Paper Company Project) Series 1994A, 5.500% 12/01/05........ Baa1 BBB+ $ 5,129 3,000 Lowndes County, Mississippi, Solid Waste Disposal PCR Refunding, (Weyerhaeuser Company Project) Series 1992A, 6.800% 04/01/22........ A3 A 3,362 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 2,308 -------- 10,799 -------- MISSOURI -- 5.1% 1,000 Independence, Missouri, School District, GO, Series 1991, 6.250% 03/01/11........ A3 NR 1,153 1,450 Jefferson City, Missouri, School District, Series 1991A, 6.700% 03/01/11........ Aa2 NR 1,695 1,500 Kansas City, Missouri, Water Revenue, Series 1994D, Prerefunded 12/01/04 @ 100, 6.600% 12/01/14........ Aa3 AA 1,657 1,600 Mehlville, Missouri, School District Number R9, GO Refunding, Series 1993, (MBIA Insured), Prerefunded 02/15/03 @ 102, 6.000% 02/15/13........ Aaa AAA 1,706 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 3,667
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 $ 2,133 1,000 Missouri State, Environmental Improvement and Energy Resource Authority, State Revolving Fund, Water PCR, (Kansas City Project) Series 1996A, 5.750% 01/01/16........ Aaa NR 1,053 1,000 Missouri State, Environmental Improvement and Energy Resources Authority, Water PCR, Series 1994A, 6.050% 07/01/15........ Aaa NR 1,062 4,000 Missouri State, Environmental Improvement and Energy Resources Authority, Water PCR, Series 1995C, 6.000% 01/01/16........ Aaa NR 4,220 4,065 Missouri State, GO, Series 1995, 5.600% 04/01/15........ Aaa AAA 4,299 3,000 Missouri State, Health and Educational Facilities Authority, Educational Facilities Revenue, (Washington University Project) Series 1998A, 5.000% 11/15/37........ Aa1 AA+ 2,878 1,200 Missouri State, Health and Educational Facilities Authority, Health Facilities Revenue, (Barnes-Jewish Inc., Christian Project) Series 1993A, 5.200% 05/15/11........ Aa3 AA 1,265 6,000 Missouri State, Health and Educational Facilities Authority, Revenue, (BJC Health System Project) Series 1998, 5.000% 05/15/38........ Aa3 AA 5,546
SEE NOTES TO FINANCIAL STATEMENTS. 126 131 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MISSOURI -- (CONTINUED) $ 1,245 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 $ 1,315 1,625 Missouri State, Water Pollution Control GO, Series 1995A, 5.600% 04/01/15........ Aaa AAA 1,718 1,850 Ritenour, Missouri, School District GO Refunding, Series 1992A, (FGIC Insured), 6.000% 02/01/10........ Aaa AAA 1,925 1,600 Rolla, Missouri, School District Number 31, GO Refunding, Series 1994, Prerefunded 03/01/04 @ 100, 6.375% 03/01/14........ A NR 1,727 3,500 Sikeston, Missouri, Electrical Revenue Refunding, Series 1992, (MBIA Insured), 6.100% 06/01/07........ Aaa AAA 3,908 1,000 St. Louis, Missouri, Industrial Development Authority, PCR Refunding, (Anheuser Bush Company Project) Series 1991, 6.650% 05/01/16........ A1 A+ 1,187 2,240 University City, Missouri, GO, Series 1994, (MBIA Insured), 6.200% 02/15/14........ Aaa AAA 2,403 1,000 West Platte, Missouri, School District Number R-11, GO, Series 1995, (MBIA Insured), 5.850% 03/01/15........ Aaa AAA 1,081 -------- 47,598 -------- MONTANA -- 0.7% 8,000 Lewis and Clark County, Montana, Environmental Facilities Revenue, (Asarco, Inc. Project) Series 1998, AMT, 5.850% 10/01/33........ B3 BB 6,095 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NEBRASKA -- 0.2% $ 1,600 Omaha, Nebraska, Public Power District, Electric Revenue, Series 1992B, 6.200% 02/01/17........ Aa2 NR $ 1,828 -------- NEVADA -- 1.7% 3,000 Las Vegas and Clark County, Nevada, Library District GO, Series 1993, (FGIC Insured), 6.000% 02/01/12........ Aaa AAA 3,135 3,585 Nevada State, GO, Series 1994, 5.875% 09/01/12........ Aa2 AA 3,885 4,000 Nevada State, GO, Series 1995A, 5.500% 11/01/16........ Aa2 AA 4,128 2,625 Nevada State, GO, Series 1995A, 5.500% 11/01/17........ Aa2 AA 2,700 2,000 Nevada State, Municipal Board GO, (Bank Project Number 40-41) Series 1993A, 6.375% 12/01/17........ NR AAA 2,119 -------- 15,967 -------- NEW JERSEY -- 0.7% 2,500 New Jersey State, GO, Series 1986B, 6.250% 01/15/05........ Aa1 AA+ 2,727 950 New Jersey State, Highway Authority, Garden State Parkway Generated Revenue, Series 1971, 6.500% 01/01/11........ Aaa AAA 1,064 2,885 New Jersey, Financing Authority, Health Care Facilities Revenue, (Riverwood Center Inc. Project) Series 1991A, (FSA Insured), Prerefunded 07/01/01 @ 102 9.900% 07/01/21........ Aaa AAA 2,990 -------- 6,781 -------- NEW MEXICO -- 0.2% 1,890 New Mexico, Mortgage Finance Authority, Single-Family Mortgage Revenue, Series 1997C-2, AMT, (GNMA/FNMA/FHLMC COLL), 6.050% 07/01/28........ Aaa NR 1,951 --------
SEE NOTES TO FINANCIAL STATEMENTS. 127 132 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NEW YORK -- 1.4% $ 2,000 Municipal Assistance Corporation for New York City, New York, Revenue, Series 1996E, 5.200% 07/01/08........ Aa1 AA+ $ 2,128 1,055 New York City, New York Industrial Development Agency Civic Facilities Revenue, (Polytechnic University Project) Series 2000, 5.300% 11/01/09........ Baa3 BBB- 1,094 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 1,312 4,000 New York State, Energy Research and Development Authority, Facilities Revenue Refunding, (Consolidated Edison Company Project) Series 1995A, 6.100% 08/15/20++...... A1 A+ 4,240 2,390 New York State, Local Government Assistance Corporation, Revenue, Series 1995A, 6.000% 04/01/16........ A3 AA- 2,548 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 1,782 -------- 13,104 -------- NORTH CAROLINA -- 0.7% 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........ Baa1 NR 2,502 2,500 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp, Inc. Project) Series 1996, 5.250% 05/01/26........ A1 AA- 2,455
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $ 2,000 University of North Carolina, Chapel Hill, University Revenue Refunding, Series 1996, 5.000% 02/15/29........ A1 AA $ 1,888 -------- 6,845 -------- OHIO -- 4.3% 2,500 Akron/Bath/Copley, Ohio, Joint Township Hospital District, Revenue, (Summa Hospital Project) Series 1998A, 5.375% 11/15/18........ Baa1 NR 2,114 7,240 Dayton, Ohio, Special Facilities Revenue Refunding, (Air Freight Corporation Project) Series 1993F, 6.050% 10/01/09........ NR BBB 7,284 10,500 Dayton, Ohio, Special Facilities Revenue, (Air Freight Corporation Project) Series 1988D, AMT, 6.200% 10/01/09........ NR BBB 10,624 3,025 Lakota, Ohio, School District GO, Series 1994, (AMBAC Insured), Prerefunded 12/01/05 @ 100, 6.250% 12/01/14........ Aaa AAA 3,361 1,000 Lucas County, Ohio, Hospital Revenue, (Flower Hospital Project) Series 1993, Prerefunded 12/01/04 @ 101, 6.125% 12/01/13++...... NR NR 1,092 10,000 Montgomery County, Ohio, Hospital Revenue, Series 1999, 6.750% 04/01/22........ Baa1 BBB+ 10,043 9,155 Ohio State, Solid Waste Disposal, Revenue, (USG Corporation Project) Series 1997, AMT, 5.600% 08/01/32........ Ba2 NR 5,707 -------- 40,225 -------- OKLAHOMA -- 0.5% 2,770 Oklahoma State, Industrial Authority, Hospital Revenue, (Deaconess Health Care Project) Series 1997A, 5.750% 10/01/17........ Baa2 BBB 2,454
SEE NOTES TO FINANCIAL STATEMENTS. 128 133 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- OKLAHOMA -- (CONTINUED) $ 3,000 Oklahoma, Development Finance Authority, Revenue Refunding, (Hillcrest Healthcare Center Inc. Project) Series 1999A, 5.000% 08/15/08........ B2 B- $ 2,067 -------- 4,521 -------- OREGON -- 0.2% 2,000 Chemeketa, Oregon, Community College District, GO, Series 1996, (FGIC Insured), Prerefunded 06/01/06 @ 100, 5.800% 06/01/12........ Aaa AAA 2,194 -------- PENNSYLVANIA -- 2.2% 3,480 Butler, Pennsylvania, Area School District, State Aid Withholding GO, Series 1997, (FGIC Insured), Prerefunded 11/15/07 @ 44.73, 4.200%+ 11/15/21....... Aaa NR 1,182 2,605 Pennsylvania State, Higher Educational Facilities Authority, Revenue, Series 1994, (AMBAC Insured), 5.625% 06/15/19........ Aaa AAA 2,656 10,000 Pennsylvania, Economic Development Financing Authority Solid Waste Disposal Revenue, (USG Corporation Project) Series 1999, AMT, 6.000% 06/01/31........ Ba2 BBB 6,661 1,725 Philadelphia, Pennsylvania, Hospital and Higher Education Facilities Authority, Hospital Revenue, (Frankford Hospital Project) Series 1993A, 6.000% 06/01/14........ A3 NR 1,811 3,125 Philadelphia, Pennsylvania, Hospital and Higher Education Facilities Authority, Hospital Revenue, (Frankford Hospital Project) Series 1993A, 6.000% 06/01/23........ A3 NR 3,226
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $ 4,800 Philadelphia, Pennsylvania, Industrial Development Authority, IDR Refunding, (Ashland Oil Inc. Project) Series 1993, 5.700% 06/01/05........ Baa2 NR $ 4,926 -------- 20,462 -------- RHODE ISLAND -- 0.3% 2,845 Rhode Island State, Consolidated Capital Development Loan GO, Series 1996A, (MBIA Insured), 5.600% 08/01/10........ Aaa AAA 3,119 -------- SOUTH CAROLINA -- 3.2% 5,000 Georgetown County, South Carolina, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, (GTY-AGMT), 5.950% 03/15/14........ Baa1 BBB+ 5,150 5,000 Greenville, South Carolina, Hospital Facilities Revenue, Series 2001, 5.500% 05/01/26(a)..... Aaa AAA 5,104 8,085 South Carolina State, State School Facilities, GO, Series 2001A, 3.500% 01/01/16........ Aaa AAA 6,898 1,110 South Carolina, Jobs Economic Development Authority, Economic Development Revenue, (Valley Proteins Inc. Project) Series 1995, (Harris Bank LOC), 3.600% 04/01/10........ NR A-1+ 1,110 1,675 South Carolina, State Housing Finance and Development Authority, Revenue, (Homeownership Mortgage Purchase Project) Series 1994A, 6.375% 07/01/16........ Aa2 AA 1,766 3,500 South Carolina, State Public Services Authority, Revenue Refunding, Series 1995B, (FGIC Insured), 5.875% 01/01/19........ Aaa AAA 3,708
SEE NOTES TO FINANCIAL STATEMENTS. 129 134 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $ 2,000 Spartanburg County, South Carolina, Solid Waste Disposal Facilities Revenue, (BMW U.S. Capital Corporation Project) Series 1994, AMT, (GTY-AGMT), 7.550% 11/01/24........ NR NR $ 2,109 4,450 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24........ Baa2 BBB 4,147 -------- 29,992 -------- TENNESSEE -- 1.9% 6,000 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (University Health Systems Inc. Project) Series 1999, 5.750% 04/01/19........ Baa1 NR 5,856 3,000 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation -- Saturn Corporation Project) Series 1994, 6.500% 09/01/24++...... A2 A 3,204 2,750 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22........ Baa3 BBB 2,844 1,000 Memphis, Tennessee, GO Refunding, Series 1996, 5.200% 11/01/10........ Aa2 AA 1,047 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 2,663
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 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 $ 2,112 -------- 17,726 -------- TEXAS -- 9.9% 6,000 Alliance Airport Authority Inc., Texas, Special Facilities Revenue, (American Corporation -- American Airlines Inc. Project) Series 1991, AMT, 7.000% 12/01/11........ Baa1 BBB- 6,614 2,000 Arlington, Texas, Independent School District, GO, Series 1991, (PSF-GTD), 6.500% 08/15/03........ Aaa NR 2,136 4,238 Austin, Texas, Utilities System Revenue, Series 1986, Prerefunded 11/15/01 @ 100, 7.300% 05/15/17........ Aaa AAA 4,347 1,600 Austin, Texas, Utilities System Revenue, Series 1987, Prerefunded 05/15/02 @ 100, 8.625% 11/15/12........ Aaa AAA 1,695 85 Austin, Texas, Water Sewer and Electric Revenue Refunding, Series 1982, 14.000% 11/15/01....... A2 A 89 345 Austin, Texas, Water Sewer and Electric Revenue Refunding, Unrefunded Balance, Series 1982, 14.000% 11/15/01....... A2 A 357 2,470 Beaumont, Texas, Independent School District GO, Series 1996, (PSF-GTD), 5.000% 02/15/17........ Aaa AAA 2,464 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 1,704
SEE NOTES TO FINANCIAL STATEMENTS. 130 135 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 2,070 Bexar, Texas, Metropolitan Water District, Waterworks Revenue, Unrefunded Balance, Series 1995, (MBIA Insured), 6.000% 05/01/15........ Aaa AAA $ 2,242 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 1,058 1,540 Comal, Texas, Independent School District GO, Series 1996A, (PSF-GTD), 5.600% 02/01/10........ Aaa AAA 1,629 1,275 Cypress-Fairbanks, Texas, Independent School District GO, Series 1995, (PSF-GTD), Prerefunded 02/15/05 @ 100, 5.750% 02/15/16........ Aaa AAA 1,373 4,805 Cypress-Fairbanks, Texas, Independent School District GO, Unrefunded Balance, Series 1993A, (PSF-GTD), 5.500% 02/15/11........ Aaa AAA 4,901 1,750 Dallas County, Texas, GO, Series 1996, 5.250% 08/15/16........ Aaa AAA 1,792 1,510 Dallas, Texas, Independent School District GO, Series 1995, (PSF-GTD), Prerefunded 08/15/05 @ 100, 5.700% 08/15/12........ Aaa AAA 1,637 6,000 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........ Baa1 BBB- 6,213 1,075 Denton, Texas, Utility Systems Revenue Refunding, Series 1996A, (MBIA Insured), 5.700% 12/01/10........ Aaa AAA 1,150 1,000 Harris County, Texas, GO, Series 1984, 7.800% 01/01/03........ Aaa AAA 1,075
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 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 $ 3,568 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 4,150 5,000 Houston, Texas, Airport Systems Revenue, Series 1998B, AMT, (FGIC Insured), 5.000% 07/01/16........ Aaa AAA 4,906 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 5,232 1,500 Lubbock, Texas, Health Facilities Development Corporation, Revenue, (St. Joseph Health Systems Project) Series 1993, 5.500% 07/01/14........ Aa3 AA- 1,514 2,000 North Central Texas, Health Facilities Development Corporation, Hospital Revenue, (Presbyterian Healthcare Project) Series 1991A, 6.625% 06/01/11........ Aaa NR 2,328 4,500 Port of Bay City Authority, Texas, Matagorda County Revenue, (Hoechst Celanese Corporation Project), Series 1996, AMT, 6.500% 05/01/26........ Baa2 A+ 4,530 4,000 Red River Authority, Texas, PCR Refunding, Series 1991, (AMBAC Insured), 5.200% 07/01/11........ Aaa NR 4,159
SEE NOTES TO FINANCIAL STATEMENTS. 131 136 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 3,000 San Antonio, Texas, Electric and Gas Revenue, Series 1995, (MBIA Insured), 5.375% 02/01/18........ Aaa AAA $ 3,054 2,000 San Antonio, Texas, GO, Series 1996, 5.250% 08/01/15........ Aa2 AA+ 2,034 1,720 San Antonio, Texas, Water Revenue, Series 1992, Prerefunded 05/15/02 @ 102, 6.500% 05/15/10........ Aaa AAA 1,816 2,855 Spring Branch, Texas, Independent School District GO, Series 1995, (PSF-GTD), 6.000% 02/01/17........ Aaa AAA 2,974 2,000 Texas City, Texas, IDR Refunding, (Atlantic Richfield Company Project) Series 1990, 7.375% 10/01/20........ Aa2 AA+ 2,522 3,000 Texas State, GO Refunding, Series 1996B, Prerefunded 10/01/06 @ 100, 5.750% 10/01/15........ Aa1 AAA 3,302 1,000 Texas State, GO, Series 1996, 5.500% 08/01/15........ Aa1 AA 1,037 2,000 Texas, Guadalupe Blanco River Authority, Revenue Refunding, (Standard Oil Company Project) Series 1983, 6.550% 05/01/13........ P1 NR 2,111 -------- 91,713 -------- UTAH -- 2.7% 2,000 Emery County, Utah, PCR Refunding, (Pacificorp Project) Series 1993A, (AMBAC Insured), 5.650% 11/01/23........ Aaa AAA 2,040 15,300 Murray City, Utah, Hospital Revenue Refunding, (IHC Health Services, Inc. Project) Series 1996, (MBIA Insured), 5.000% 05/15/22........ Aaa AAA 14,626 1,945 Provo, Utah, Electric Revenue, Series 1980, 10.125% 04/01/15....... Aaa AAA 2,726
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 $ 3,208 2,500 Utah, County Hospital Revenue, Series 1997, (MBIA Insured), 5.250% 08/15/26........ Aaa AAA 2,469 -------- 25,069 -------- VERMONT -- 0.2% 1,985 Vermont, Municipal Bond Bank, Revenue, Series 1996-1, (AMBAC Insured), 5.750% 12/01/15........ Aaa AAA 2,125 -------- VIRGINIA -- 2.1% 2,000 Covington-Allegheny County, Virginia, IDR Refunding, (Westvaco Corporation Project) Series 1994, 6.650% 09/01/18........ Baa1 BBB+ 2,089 9,600 Fairfax County, Virginia, Water Authority, Water Revenue Refunding, Series 1997, 5.000% 04/01/29........ Aa1 AAA 9,401 2,830 Fairfax County, Virginia, Water Authority, Water Revenue, Unrefunded Balance, Series 1992, 6.000% 04/01/22........ Aa1 AAA 3,062 1,000 Norfolk, Virginia, Capital Improvement GO, Series 1997, (FGIC Insured), 5.375% 06/01/15........ Aaa AAA 1,047 1,600 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995, (MBIA Insured), 5.700% 01/01/14........ Aaa AAA 1,669 2,000 Virginia State, Resource Authority, Systems Revenue Refunding, Series 1998, 5.000% 05/01/22........ NR AA 1,975 -------- 19,243 --------
SEE NOTES TO FINANCIAL STATEMENTS. 132 137 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WASHINGTON -- 11.3% $10,000 Chelan County, Washington, Development Corporation, PCR Refunding, (Alcoa, Inc. Project) Series 1995, 5.850% 12/01/31........ A1 A+ $ 10,311 2,310 Chelan County, Washington, Public Utilities District Division III, Revenue, Series 1997A, AMT, Mandatory Put 07/01/09 @ 100, 5.600% 07/01/32........ Aa2 AA 2,302 2,480 Clark County, Washington, Sewer Revenue, Series 1996, (MBIA Insured), 5.800% 12/01/11........ Aaa AAA 2,736 1,035 King County, Washington, Library Systems GO, Series 1992, 6.150% 12/01/10........ Aa NR 1,130 2,000 King County, Washington, School District Number 415, GO, Series 1996, (FSA Insured), 5.800% 06/01/13........ Aaa AAA 2,120 3,000 King County, Washington, Sewer GO Refunding, Series 1996C, 5.250% 01/01/17........ Aa1 AA+ 3,047 7,150 Pierce County, Washington, Economic Development Revenue, (Occidental Petroleum Corporation Project) Series 1993, AMT, 5.800% 09/01/29........ Baa3 BBB- 6,505 2,405 Port Seattle, Washington, GO, Series 2000, AMT, 6.000% 12/01/11........ Aa1 AA+ 2,661 1,600 Seattle, Washington, GO Refunding, Series 1993, 5.650% 01/01/20........ Aa3 AA 1,637 4,365 Seattle, Washington, GO, Series 1996A, 5.625% 01/15/10........ Aa1 AA+ 4,620 1,795 Seattle, Washington, GO, Series 1997, 5.300% 08/01/17........ Aa1 AA+ 1,826 2,530 Seattle, Washington, Municipal Light and Power Revenue, Series 1994, Prerefunded 07/01/04 @ 102, 6.625% 07/01/16........ Aa3 AA- 2,814
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 6,100 Seattle, Washington, Water Systems Revenue Refunding, Series 1993, 5.500% 06/01/18........ Aa2 AA $ 6,218 1,525 Skagit County, Washington, School District Number 320, GO Refunding, Series 1996, (FGIC Insured), 5.500% 12/01/12........ Aaa AAA 1,602 2,000 Tacoma, Washington, Conservation Systems Project Revenue, Series 1994, 6.600% 01/01/15........ Aa1 AA- 2,171 2,000 Tacoma, Washington, Electric System Revenue, Series 1997, (AMBAC Insured), 5.250% 01/01/15........ Aaa AAA 2,043 12,700 Washington State, GO, Series 1990A, 6.750% 02/01/15........ Aa1 AA+ 15,412 45 Washington State, GO, Series 1992-93A, Prerefunded 10/01/08 @ 100, 5.750% 10/01/12........ Aa1 AA+ 51 1,155 Washington State, GO, Series 1992A, 6.250% 02/01/11........ Aa1 AA+ 1,314 17,845 Washington State, GO, Series 2000A, 5.625% 07/01/21........ Aa1 AA+ 18,669 2,955 Washington State, GO, Unrefunded Balance, Series 1992-93A, 5.750% 10/01/12........ 3,326 3,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1993B, (FSA Insured), 5.400% 07/01/05++...... Aaa AAA 3,189 5,000 Washington State, Public Power Supply Systems Revenue Refunding, Series 1996A, (MBIA Insured), 5.750% 07/01/11........ Aaa AAA 5,402 1,400 Washington State, Public Power Supply Systems Revenue, (Nuclear Project Number 1) Series 1990, 7.250% 07/01/09........ Aa1 AA- 1,618
SEE NOTES TO FINANCIAL STATEMENTS. 133 138 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WASHINGTON -- (CONTINUED) $ 1,600 Washington State, Public Power Supply Systems Revenue, (Nuclear Project Number 2) Series 1990, 7.250% 07/01/06........ Aa1 AA- $ 1,836 -------- 104,560 -------- 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 1,684 1,560 Jefferson County, West Virginia, Board of Education, GO, Series 1989, (FGIC Insured), 6.850% 07/01/08........ Aaa AAA 1,833 1,000 West Virginia University, State University Systems Revenue, (Marshall University Library Project) Series 1996, (AMBAC Insured), 5.750% 04/01/16........ Aaa AAA 1,053 -------- 4,570 -------- WISCONSIN -- 3.7% 3,000 Menomonee Falls, Wisconsin, Sewer Systems Revenue, Series 1996A, (AMBAC Insured), 5.650% 05/01/16........ Aaa AAA 3,132 2,170 Nekoosa, Wisconsin, PCR, (Nekoosa Papers Inc. Project) Series 1999A, 5.350% 07/01/15........ Baa3 NR 1,974 5,750 Nekoosa, Wisconsin, PCR, (Nekoosa Papers Inc. Project) Series 1999B, 5.500% 07/01/15........ Baa3 NR 5,273 2,000 Plover, Wisconsin Water Systems Revenue BAN, Series 2000, 4.700% 12/01/02........ MIG1 NR 2,011
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- WISCONSIN -- (CONTINUED) $ 2,850 Wisconsin State, Clean Water Revenue, Series 1997-1, 5.500% 06/01/15........ Aa AA+ $ 3,098 1,000 Wisconsin State, GO Refunding, Series 1993-1, 5.800% 11/01/08........ Aa2 AA 1,111 11,000 Wisconsin State, Health and Educational Facilities Authority, Revenue, (Aurora Health Care Inc. Project) Series 1999A, 5.600% 02/15/29........ NR BBB+ 9,436 3,500 Wisconsin State, Health and Educational Facilities Authority, Revenue, (Aurora Health Care Project) Series 1999B, 5.500% 02/15/15........ NR BBB+ 3,232 5,500 Wisconsin State, Health and Educational Facilities Authority, Revenue, (Aurora Health Care Project) Series 1999B, 5.625% 02/15/20........ NR BBB+ 4,922 -------- 34,189 -------- WYOMING -- 1.4% 2,300 Campbell County, Wyoming, School District Number 001-Gillette, GO, Series 1996, (SCH BD GTY), 5.550% 06/01/06........ Aaa AAA 2,468 10,000 Wyoming, Student Loan Corporation, Revenue Refunding, Series 1999A, 6.250% 06/01/29........ NR AA 10,545 -------- 13,013 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $870,394)........................ 921,992 --------
SEE NOTES TO FINANCIAL STATEMENTS. 134 139 NATIONS FUNDS Nations Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
SHARES VALUE (000) (000) ------------------------------------------------------------ INVESTMENT COMPANIES -- 0.5% (Cost $4,850) 4,850 Nations Municipal Reserves#.......... $ 4,850 -------- TOTAL INVESTMENTS (Cost $875,244*)............ 99.6% 926,842 -------- OTHER ASSETS AND LIABILITIES (NET)....................... 0.4% Cash................................. $ 1 Receivable for Fund shares sold...... 2,302 Interest receivable.................. 15,210 Payable for Fund shares redeemed..... (4,390) Investment advisory fee payable...... (258) Administration fee payable........... (159) Shareholder servicing and distribution fees payable.......... (17) Distributions payable................ (3,749) Payable for investment securities purchased.......................... (5,125) Accrued Trustees' fees and expenses........................... (30) Accrued expenses and other liabilities........................ (177) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. 3,608 -------- NET ASSETS.................... 100.0% $930,450 ======== NET ASSETS CONSIST OF: Undistributed net investment income............................. $ 1,128 Accumulated net realized loss on investments sold................... (2,143) Net unrealized appreciation of investments........................ 51,598 Paid-in capital...................... 879,867 -------- NET ASSETS........................... $930,450 ========
VALUE ------------------------------------------------------------ PRIMARY A SHARES: Net asset value, offering and redemption price per share ($881,611,227 / 79,160,719 shares outstanding)....................... $11.14 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($38,590,900 / 3,465,717 shares outstanding)................ $11.14 ===== Maximum sales charge................. 4.75% Maximum offering price per share..... $11.69 INVESTOR B SHARES: Net asset value and offering price per share** ($8,930,527 / 802,026 shares outstanding)................ $11.13 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($1,317,593 / 118,308 shares outstanding)................ $11.14 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $51,592 on investment securities was comprised of gross appreciation of $59,652 and gross depreciation of $8,060 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $875,250. ** 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. ++ All or a portion of security segregated as collateral for "when issued" securities. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. (a) Security purchased on a "when issued" basis. Nations Municipal Income Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 13.80% Nations Municipal Income Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Industrial Development Revenue/ Pollution Control Revenue 18.98% Hospital Revenue 11.57% SEE NOTES TO FINANCIAL STATEMENTS. 135 140 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 98.8% CALIFORNIA -- 93.1% $2,000 ABAG Finance Authority for NonProfit Corporations, California, Multi-Family Revenue Refunding, Series 2000A, AMT, (GTY-AGMT), Mandatory Put 8/15/08 @ 100, 6.400% 08/15/30........ Baa2 BBB $ 2,082 660 ABAG Finance Corporation, California, Certificates of Participation, (ABAG XXVI Project) Series 1992A, 6.250% 06/01/11........ NR A 669 3,000 Alameda County, California, Certificates of Participation, Refunding, (Santa Rita Jail Project) Series 1993, (MBIA Insured), 5.700% 12/01/14........ Aaa AAA 3,214 5,000 Beverly Hills, California, Public Financing Authority, Lease Revenue, (Capital Imports Project) Series 1998A, 5.000% 06/01/23........ Aa3 AA- 4,940 1,185 Bodega Bay, California, Fire Protection District, Certificates of Participation, (Fire Station Project) Series 1996, 6.450% 10/01/31........ NR BBB- 1,274 1,000 California Health Facilities Financing Authority, Revenue Refunding, (Adventist Health Project) Series 1991A, (MBIA Insured), 7.000% 03/01/13........ Aaa AAA 1,023 1,000 California Health Facilities Financing Authority, Revenue, (Adventist Health Systems/Sunbelt West Project) Series 1991B, (MBIA Insured), 6.500% 03/01/07........ Aaa AAA 1,023 1,500 California Health Facilities Financing Authority, Revenue, (Cedars-Sinai Medical Center) Series 1999A, 6.125% 12/01/19........ A3 NR 1,602
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $3,000 California Health Facilities Financing Authority, Revenue, (Kaiser Permanente Project) Series 1998A, (FSA Insured), 5.000% 06/01/24........ Aaa AAA $ 2,943 2,000 California Housing Finance Agency, Home Mortgage Revenue, Series 1994F-3, AMT, (MBIA/FHA/VA Insured), 6.100% 08/01/15........ Aaa AAA 2,056 2,750 California Housing Finance Agency, Home Mortgage Revenue, Series 1997I, AMT, (MBIA Insured), 5.650% 08/01/17........ Aaa AAA 2,864 3,000 California Housing Finance Agency, Home Mortgage Revenue, Series 1997I, AMT, (MBIA Insured), 5.750% 02/01/29........ Aaa AAA 3,085 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 2,078 1,000 California Pollution Control Financing Authority, PCR, (Pacific Gas and Electric Company Project) Series 1992A, AMT, 6.625% 06/01/09........ B3 CCC 910 1,000 California Pollution Control Financing Authority, PCR, (Southern California Edison Company Project) Series 1992B, AMT, 6.400% 12/01/24........ B3 CC 890 3,000 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project) Series 1993L, 5.700% 12/01/16........ Aa2 AA 3,109 2,000 California State, Department of Water Resources, Water Systems Revenue, (Center Valley Project) Series 1997S, 5.000% 12/01/17........ Aa2 AA 2,023
SEE NOTES TO FINANCIAL STATEMENTS. 136 141 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $2,000 California State, GO, (For Previous Veterans Project) Series 2000BJ, AMT, 5.650% 12/01/24........ Aa2 AA $ 2,033 2,000 California State, GO, Series 2000, 5.250% 09/01/24........ Aa2 AA 2,028 3,000 California State, GO, Series 2000, 5.625% 05/01/26........ Aa2 AA 3,162 4,000 California State, Public Works Board, Lease Revenue, (Department of Corrections State Prison Project) Series 1993E, 5.500% 06/01/19........ Aa3 AA- 4,106 3,000 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 3,011 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 3,060 1,500 Caochella Valley, California, Park and Recreation District Improvement Board Revenue Refunding, (Reassessment District 94-1-INDIO Project) Series 1994, (MBIA Insured), 6.200% 09/02/16........ Aaa AAA 1,634 1,615 Central Valley Financing Authority, California, Cogeneration Project Revenue Refunding, (Carson Ice-General Project) Series 1998, (MBIA Insured), 5.250% 07/01/12........ Aaa AAA 1,720 3,000 Central Valley, California, Financing Authority, Revenue, (Carson Ice Project) Series 1993, 6.000% 07/01/09........ NR BBB 3,126
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 495 Chino, California, Unified School District, Certificates of Participation, (Land Acquisition Project) Series 1994A, (FSA Insured), 6.600% 09/01/14........ Aaa AAA $ 516 1,250 Del Mar, California, Race Track Authority, Revenue Refunding, Series 1996, 6.000% 08/15/06........ NR NR 1,289 1,200 Del Mar, California, Race Track Authority, Revenue Refunding, Series 1996, 6.000% 08/15/08........ NR NR 1,240 1,000 Del Mar, California, Race Track Authority, Revenue Refunding, Series 1996, 6.200% 08/15/11........ NR NR 1,034 2,000 East Bay Municipal Utilities District, California, Water Systems Revenue Refunding, Series 1996, (FGIC Insured), 5.000% 06/01/16........ Aaa AAA 2,037 1,000 Eastern Municipal Water District, California, Water and Sewer Certificates of Participation, Series 1991, (FGIC Insured), 6.750% 07/01/12........ Aaa AAA 1,225 1,500 Elsinore Valley Municipal Water District, California, Certificates of Participation Refunding, Series 1992A, (FGIC Insured), 6.000% 07/01/12........ Aaa AAA 1,739 925 Emeryville, California, Public Financing Authority, Revenue, Unrefunded Balance, (Redevelopment Project) Series 1993A, 6.500% 05/01/21........ NR A- 955 1,500 Escondido JT Powers Financing Authority, California, Lease Revenue, (California Center for the Arts Project) Series 1995, (AMBAC Insured), 6.000% 09/01/18........ Aaa AAA 1,637 1,000 Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding, Series 1999, 5.750% 01/15/40........ Baa3 BBB- 1,007
SEE NOTES TO FINANCIAL STATEMENTS. 137 142 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $2,000 Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding, Series 1999, (MBIA Insured), 5.125% 01/15/15........ Aaa AAA $ 2,090 1,965 Fremont, California, Public Financing Authority, Revenue, (Local Improvement District 39R Project) Series 1996, 6.000% 09/01/11........ NR NR 2,011 5,000 Fresno, California, Sewer Revenue, Series 1993A-1, (AMBAC Insured), 6.250% 09/01/14........ Aaa AAA 5,952 1,000 Industry California Urban Development Agency, Tax Allocation Refunding, (Transportation Distribution Project) Series 1992-3, 6.900% 11/01/16........ NR A- 1,059 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 2,285 3,050 Larkspur, California, School District GO, Series 2000A, 5.250% 08/01/25........ Aa3 AA 3,099 3,000 Long Beach, California Harbor Revenue, Series 2000A, AMT, 5.375% 05/15/24........ Aa3 AA- 3,024 3,500 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue, Series 2000A, (FGIC Insured), 5.250% 07/01/30........ Aaa AAA 3,550 2,500 Los Angeles County, California, Transportation Commission, Sales Tax Revenue, Refunding, Series 1991B, Prerefunded 07/01/01 @ 102, 6.500% 07/01/13........ A1 AA 2,573 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 3,445
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $3,000 Los Angeles, California, Department of Water and Power, Waterworks Revenue, Series 2001A, 5.125% 07/01/41........ Aa3 AA $ 2,926 2,000 Los Angeles, California, GO, Series 1999B, 5.250% 09/01/14........ Aa2 AA 2,116 2,000 Los Angeles, California, Harbor Development Revenue, Series 1995B, AMT, 6.625% 08/01/25........ Aa3 AA.. 2,102 3,750 Los Angeles, California, Parking Revenue, Series 1999A, (AMBAC Insured), 5.250% 05/01/29........ Aaa AAA 3,798 2,000 Manhattan Beach, California, Unified School District, Certificates of Participation, Series 1995B, (MBIA Insured), 6.500% 08/01/20##...... Aaa AAA 2,224 3,000 Metropolitan Water District of Southern California, Waterworks Revenue Refunding, Series 1993A, 5.750% 07/01/21........ Aa2 AA 3,334 1,000 Natomas, California, Unified School District, GO, Series 1993A, (MBIA Insured), 5.750% 09/01/17........ Aaa AAA 1,038 2,500 Northridge Water District, California, Revenue Certificates of Participation, Series 1996, (AMBAC Insured), 5.250% 02/01/18........ Aaa AAA 2,557 1,000 Oakland, California, State Building Authority, Lease Revenue, (Elihu M. Harris Project) Series 1998A, (AMBAC Insured), 5.000% 04/01/17........ Aaa AAA 1,014 1,500 Orange County, California, Airport Revenue Refunding, Series 1997, AMT, (MBIA Insured), 5.500% 07/01/10........ Aaa AAA 1,621
SEE NOTES TO FINANCIAL STATEMENTS. 138 143 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $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 $ 2,612 5,000 Port Oakland, California, Port Revenue Refunding, Series 1997H, AMT, (MBIA Insured), 5.500% 11/01/15........ Aaa AAA 5,225 2,500 Poway, California, Certificates of Participation Refunding, (Poinsettia Mobilehome Park Project) Series 1992, (FSA Insured), 6.375% 06/01/18........ Aaa AAA 2,618 2,000 Rancho, California, Water District, Financing Authority, Revenue Refunding, Series 1995, 5.900% 11/01/15........ Aaa AAA 2,150 2,000 Sacramento County, California, Sanitation District Financing Authority, Revenue, Series 1993, Prerefunded 12/01/18 @ 100, 4.750% 12/01/23........ Aaa AA 1,986 2,900 Sacramento, California, Power Authority Revenue, (Cogeneration Project) Series 1995, 5.875% 07/01/15........ NR BBB- 3,015 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 2,323 1,135 San Francisco Bay Area, California, Rapid Transit District, Sales Tax Revenue, Series 1998, (AMBAC Insured), 5.000% 07/01/28........ Aaa AAA 1,117 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 3,100
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $1,750 San Joaquin County, California, Certificates of Participation, (Capital Facilities Project) Series 1993, (MBIA Insured), 5.500% 11/15/13........ Aaa AAA $ 1,955 3,000 San Joaquin Hills, California, Transportation Corridor Agency, Toll Road Revenue Refunding, Capital Appreciation, Series 1997A, 6.260%+ 01/15/16....... Baa3 BBB- 2,005 3,670 San Jose Redevelopment Agency, California, Tax Allocation, (Merged Area Redevelopment Project) Series 1993, (MBIA Insured), 6.000% 08/01/15........ Aaa AAA 4,280 3,000 San Jose, California, Financing Authority Revenue, (Convention Center Refunding Project) Series 1993C, 6.400% 09/01/17........ Aa3 AA- 3,080 2,000 San Mateo County, California, JT Powers Authority, Lease Revenue, (Capital Project) Series 1997A, (FSA Insured), 5.125% 07/15/32........ Aaa AAA 1,993 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 1,032 2,000 Southern California, Metropolitan Water District, Waterworks Revenue, Series 1997A, 5.000% 07/01/26........ Aa2 AA 1,960 1,000 Southern California, Public Power Authority, Power Revenue, Series 1989, 6.750% 07/01/13........ A2 A 1,204 2,400 Tahoe Truckee, California, Unified School District, GO, District No. 2, Series 1999A, (FGIC Insured), 5.390%+ 08/01/24....... Aaa AAA 694
SEE NOTES TO FINANCIAL STATEMENTS. 139 144 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $1,780 Tahoe Truckee, California, Unified School District, GO, Series 1999A, (FGIC Insured), 5.370%+ 08/01/23....... Aaa AAA $ 545 1,235 Union City, California, Community Redevelopment Agency, Tax Allocation, (Community Redevelopment Project) Series 1993, (AMBAC Insured), 5.850% 10/01/23........ Aaa AAA 1,289 4,000 University of California, Hospital Revenue, (University of California Medical Center Project) Series 1996, (AMBAC Insured), 5.750% 07/01/24........ Aaa AAA 4,198 3,000 University of California, Hospital Revenue, (University of California Medical Center Project) Series 1996, (AMBAC Insured), 6.000% 07/01/26 ....... Aaa AAA 3,191 3,000 West Covina, California, Redevelopment Agency, Community Facilities District Special Tax, Refunding, (Fashion Plaza Project) Series 1996, 6.000% 09/01/17........ NR A 3,351 1,025 Westwood, California, Unified School District, GO, Series 1996, 6.500% 08/01/21........ NR NR 1,083 -------- 180,168 -------- PUERTO RICO -- 5.7% 1,500 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Obligation, Series 2000A, 5.500% 10/01/32........ Aaa AAA 1,578
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- PUERTO RICO -- (CONTINUED) $4,000 Puerto Rico, Electric Power Authority, Power Revenue, Series 2000HH, (FSA Insured), 5.250% 07/01/29........ Aaa AAA $ 4,069 5,000 Puerto Rico, Electric Power Authority, Revenue, 6.000% 07/01/14........ Baa1 A- 5,348 -------- 10,995 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $179,711)........................ 191,163 --------
SHARES (000) ------ INVESTMENT COMPANIES -- 0.8% (Cost $1,569) 1,569 Nations Municipal Reserves#............ 1,569 -------- TOTAL INVESTMENTS (Cost $181,280*).............. 99.6% 192,732 -------- OTHER ASSETS AND LIABILITIES (NET)......................... 0.4% Cash................................... $ 1 Receivable for Fund shares sold........ 234 Interest receivable.................... 2,567 Payable for Fund shares redeemed....... (1,467) Investment advisory fee payable........ (53) Administration fee payable............. (33) Shareholder servicing and distribution fees payable......................... (38) Distributions payable.................. (405) Accrued Trustees' fees and expenses.... (19) Accrued expenses and other liabilities.......................... (32) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................ 755 -------- NET ASSETS...................... 100.0% $193,487 ======== NET ASSETS CONSIST OF: Undistributed net investment income.... $ 457 Accumulated net realized gain on investments sold..................... 627 Net unrealized appreciation of investments.......................... 11,452 Paid-in capital........................ 180,951 -------- NET ASSETS............................. $193,487 ========
SEE NOTES TO FINANCIAL STATEMENTS. 140 145 NATIONS FUNDS Nations California Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ----------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($37,284,553 / 5,001,443 shares outstanding)......................... $7.45 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($149,281,587 / 19,995,487 shares outstanding).................. $7.47 ===== Maximum sales charge................... 4.75% Maximum offering price per share....... $7.84 INVESTOR B SHARES: Net asset value and offering price per share** ($5,729,381 / 767,143 shares outstanding)......................... $7.47 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($1,191,042 / 160,028 shares outstanding)......................... $7.44 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $11,452 on investment securities was comprised of gross appreciation of $11,811 and gross depreciation of $359 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $181,280. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. ## Step Bond Nations California Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 22.55% AMBAC 12.79% Nations California Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Lease Revenue 18.47% Water Revenue 14.99% Transportation Revenue 10.43% Special Tax Revenue 10.24% SEE NOTES TO FINANCIAL STATEMENTS. 141 146 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 98.4% FLORIDA -- 93.7% $ 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 $ 2,084 1,000 Bay County, Florida, PCR Refunding, (International Paper Company Project) Series 1998A, 5.100% 09/01/12........ Baa1 BBB+ 1,016 1,000 Bay Medical Center, Florida, Hospital Revenue Refunding, (Bay Medical Center Project) Series 1996, (AMBAC Insured), 5.000% 10/01/05........ Aaa AAA 1,053 2,000 Bay Medical Center, Florida, Hospital Revenue Refunding, (Bay Medical Center Project) Series 1996, (AMBAC Insured), 5.450% 10/01/12........ Aaa AAA 2,132 1,470 Boca Raton, Florida, GO, Series 2000, 5.000% 07/01/13........ Aaa AAA 1,534 2,000 Boca Raton, Florida, Water and Sewer Revenue Refunding, Series 1992, 5.600% 10/01/04........ Aa2 AA- 2,078 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 1,108 1,000 Broward County, Florida, Gas Tax Revenue, Series 1991, Prerefunded 09/01/01 @ 101, 6.400% 09/01/03........ A1 AA- 1,024 3,000 Broward County, Florida, GO Refunding, Series 1992C, 6.200% 01/01/07........ Aa2 AA+ 3,122 2,000 Broward County, Florida, School District, GO Refunding, Series 1992, 6.000% 02/15/07........ A1 AA- 2,074
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 2,000 Broward County, Florida, Solid Waste Systems Revenue, Series 1993A, (MBIA Insured), 5.500% 07/01/04........ Aaa AAA $ 2,117 2,275 Clearwater, Florida, Water and Sewer Authority, Revenue Refunding, Series 1998, (FGIC Insured), 4.740%+ 12/01/11....... Aaa AAA 1,380 1,000 Clearwater, Florida, Water and Sewer Authority, Revenue Refunding, Series 1998, (FGIC Insured), 4.990%+ 12/01/13....... Aaa AAA 535 3,000 Clearwater, Florida, Water and Sewer Authority, Revenue, Series 1993, (AMBAC Insured), 5.000% 12/01/02........ Aaa AAA 3,085 1,000 Collier County, Florida, Water and Sewer District, Revenue, Series 1992, (FGIC Insured), 6.375% 07/01/10........ Aaa AAA 1,059 1,000 Dade County, Florida, Aviation Facility Revenue Refunding, Series 1994B, AMT, (AMBAC Insured), 6.300% 10/01/05........ Aaa AAA 1,102 3,650 Dade County, Florida, Aviation Revenue, (Miami International Airport Project) Series 1997B, AMT, (FSA Insured), 5.000% 10/01/06........ Aaa AAA 3,827 2,300 Dade County, Florida, School District, GO Refunding, Series 1993, (AMBAC Insured), 5.000% 07/15/01........ Aaa AAA 2,312 2,000 Delray Beach, Florida, Water and Sewer Revenue Refunding, Series 1993A, (AMBAC Insured), 5.000% 10/01/02........ Aaa AAA 2,052 1,000 Delray Beach, Florida, Water and Sewer Revenue Refunding, Series 1993A, (AMBAC Insured), 5.000% 10/01/03........ Aaa AAA 1,038
SEE NOTES TO FINANCIAL STATEMENTS. 142 147 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,565 Dunes, Florida, Community Development District, Revenue Refunding, (Intracoastal Waterway Bridge Project) Series 1993, 5.300% 10/01/03........ NR BBB $ 1,613 1,900 Dunes, Florida, Community Development District, Revenue Refunding, (Intracoastal Waterway Bridge Project) Series 1993, 5.400% 10/01/04........ NR BBB 1,978 1,830 Duval County, Florida, Housing Finance Authority, Multi-Family Mortgage Revenue Refunding, (The Cove Project) Series 1992, 6.100% 10/01/02........ NR AAA 1,862 2,000 Escambia County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue, (Multi-County Program) Series 2000A, AMT, (MBIA/FHA/VA Insured), 6.300% 10/01/20............... Aaa NR 2,141 3,600 Escambia County, Florida, PCR, (Champion International Corporation Project) Series 1996, AMT, 6.400% 09/01/30........ Baa1 NR 3,647 1,700 Escambia County, Florida, Utilities Authority, Systems Revenue, Series 1996, (FGIC Insured), 5.625% 01/01/21........ Aaa AAA 1,758 1,000 Florida State, Board of Education, Public Education Capital Outlay GO Refunding, Series 1993A, 5.000% 06/01/08........ Aa2 AA+ 1,061 3,000 Florida State, Board of Education, Public Education Capital Outlay GO Refunding, Series 1995A, 5.500% 06/01/14........ Aa2 AA+ 3,131 1,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1987, (MBIA-IBC Insured), 5.000% 06/01/06........ Aa2 AA+ 1,057
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1992C, Prerefunded 06/01/02 @ 101, 6.500% 06/01/11........ Aaa AAA $ 1,049 4,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1993D, 5.200% 06/01/11........ Aa2 AA+ 4,108 1,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.000% 06/01/18........ Aa2 AA+ 1,000 1,500 Florida State, Department of Transportation, GO, (Right of Way Bridge Project) Series 1996, 5.375% 07/01/26........ Aa2 AA+ 1,521 5,495 Florida State, Division of Bond Financing, Department of General Services Revenue, (Department of Natural Resources - Preservation 2000 Project) Series 1993A, (FSA Insured), 5.300% 07/01/06........ Aaa AAA 5,725 3,000 Florida State, Division of Bond Financing, Department of General Services, Revenue, (Department of Natural Resources - Preservation 2000 Project) Series 1991A, (AMBAC Insured), 6.250% 07/01/01........ Aaa AAA 3,023 1,000 Florida State, Division of Bond Financing, Department of General Services, Revenue, (Department of Natural Resources - Preservation 2000 Project) Series 1992A, (AMBAC Insured), Prerefunded 07/01/02 @ 101, 6.250% 07/01/06........ Aaa AAA 1,048
SEE NOTES TO FINANCIAL STATEMENTS. 143 148 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 3,300 Florida, Capital Trust Agency Multi-Family Housing Revenue, (Shadow Run Project) Series 2000A, (FNMA COLL), Mandatory Put 11/01/10 @ 100, 5.150% 11/01/30........ Aaa NR $ 3,362 2,000 Florida, Greater Orlando Aviation Authority, Revenue Refunding, Series 1992B, (FGIC Insured), 6.200% 10/01/03........ Aaa AAA 2,118 4,000 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (Altamonte Project) Series 1994C, Mandatory Put 12/01/03 @ 100, 7.000% 12/01/24........ NR BBB+ 4,191 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+ 1,040 875 Florida, Housing Finance Agency, Revenue Refunding, (The Vineyards Project) Series 1995H, 5.875% 11/01/05........ NR BBB+ 894 1,000 Florida, Housing Finance Agency, Revenue Refunding, (The Vineyards Project) Series 1995H, 6.400% 11/01/15........ NR BBB+ 1,030 2,225 Florida, Housing Finance Corporation, Revenue, (Homeowner Mortgage Project) Series 1998-1, (MBIA Insured), 4.950% 07/01/11........ Aaa AAA 2,313 3,000 Florida, Orlando and Orange County Expressway Authority, Revenue Refunding, Senior Lien, Series 1993, (AMBAC Insured), 5.000% 07/01/03........ Aaa AAA 3,104
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,000 Florida, Ports Financing Commission, Revenue, (State Transportation Trust Fund Project) Series 1996, AMT, (MBIA Insured), 5.375% 06/01/16........ Aaa AAA $ 1,023 1,000 Gainesville, Florida, Utility Systems Revenue, Series 1996A, 5.750% 10/01/07........ Aa3 AA 1,104 3,200 Greater Orlando, Aviation Authority, Revenue Refunding, Series 1992D, (AMBAC Insured), 5.450% 10/01/01........ Aaa AAA 3,237 2,000 Greater Orlando, Aviation Authority, Revenue Refunding, Series 1992D, (AMBAC Insured), 5.600% 10/01/02........ Aaa AAA 2,068 1,375 Hialeah, Florida, Capital Improvement Revenue, Series 1993, 5.500% 10/01/18........ Baa1 NR 1,373 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 3,444 1,000 Hillsborough County, Florida, Capital Improvement Revenue Refunding, (County Center Project) Series 1996B, (MBIA Insured), 5.000% 07/01/11........ Aaa AAA 1,042 2,640 Hillsborough County, Florida, Environmentally Sensitive Lands, Special Tax, Series 1992, (AMBAC Insured), 6.250% 07/01/06........ Aaa AAA 2,792 3,500 Hillsborough County, Florida, IDR Refunding, (Tampa Electric Company Project) Series 1992, 8.000% 05/01/22........ A1 A 3,724 1,500 Indian River County, Florida, School District, GO Refunding, Series 1993, (FSA Insured), 5.000% 04/01/03........ Aaa AAA 1,546
SEE NOTES TO FINANCIAL STATEMENTS. 144 149 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,800 Indian River County, Florida, School District, GO Refunding, Series 1993, (FSA Insured), 5.000% 04/01/04........ Aaa AAA $ 1,874 1,750 Indian River County, Florida, School District, GO Refunding, Series 1993, (FSA Insured), 5.100% 04/01/05........ Aaa AAA 1,831 1,000 Indian River County, Florida, Water and Sewer Revenue Refunding, Series 1993A, (FGIC Insured), 5.200% 09/01/05........ Aaa AAA 1,061 1,000 Jacksonville Beach, Florida, Utilities Revenue, Series 1991, (MBIA Insured), Prerefunded 10/01/01 @ 102, 6.500% 10/01/12........ Aaa AAA 1,037 2,000 Jacksonville, Florida, Electric Systems Authority, Revenue Refunding, Series 1995-11, 5.375% 10/01/15........ Aa2 AA 2,054 1,000 Jacksonville, Florida, Electric Systems Authority, Revenue, Series 1993A, 5.200% 10/01/02........ Aa2 AA 1,030 1,000 Jacksonville, Florida, Excise Tax Revenue Refunding, Series 1995A, (FGIC Insured), 5.000% 10/01/09........ Aaa AAA 1,065 1,375 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding, (St. Lukes Hospital Association Project) Series 1991, 6.750% 11/15/02........ NR AA+ 1,429 4,200 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue, Series 1997B, 5.400% 08/15/18........ Aaa NR 4,351 1,000 Lakeland, Florida, Electricity and Water Revenue Refunding, Series 1990, (AMBAC Insured), 4.280%+ 10/01/09....... Aaa AAA 698
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- $ 2,136 2,025 Marion County, Florida, Hospital District, Revenue Refunding, Series 1999, 5.250% 10/01/11........ A2 NR 2,078 1,500 Miami Beach, Florida, GO Refunding, Series 1993, (FGIC Insured), 5.300% 09/01/03........ Aaa AAA 1,566 2,000 Miami, Florida, GO Refunding, Series 1992, (FGIC Insured), 5.600% 12/01/03........ Aaa AAA 2,112 3,000 Miami-Dade County, Florida, Aviation Revenue, Series 1998C, AMT, (MBIA Insured), 5.000% 10/01/23........ Aaa AAA 2,866 2,000 Miami-Dade County, Florida, Aviation Revenue, Series 1998C, AMT, (MBIA Insured), 5.000% 10/01/28........ Aaa AAA 1,885 5,365 Miami-Dade County, Florida, Special Obligation Revenue Refunding, Series 1997A, (MBIA Insured), 5.450%+ 10/01/19....... Aaa AAA 1,977 1,000 Naples, Florida, Water and Sewer Revenue Refunding, Series 1992, (FGIC Insured), 6.400% 09/01/07........ Aaa AAA 1,053 1,000 Nassau County, Florida, PCR Refunding, (ITT Rayonier Inc. Project) Series 1992, 6.250% 06/01/10........ Baa2 BBB- 1,001 3,000 North Broward, Florida, Hospital District Revenue Refunding, Series 1992, (MBIA Insured), Prerefunded 01/01/02 @ 102, 6.250% 01/01/06........ Aaa AAA 3,128 1,375 Orange County, Florida, Health Facilities Authority, Revenue Refunding, (Lakeside Alternatives, Inc. Project) Series 1995, 6.250% 07/01/05........ NR BBB 1,410
SEE NOTES TO FINANCIAL STATEMENTS. 145 150 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
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 $ 5,324 1,405 Orange County, Florida, Health Facilities Authority, Revenue, Series 1993A, (MBIA Insured), 5.400% 11/01/02........ Aaa AAA 1,454 2,800 Orange County, Florida, Health Facilities Authority, Revenue, Series 1993B, (MBIA Insured), 4.400% 10/01/02........ Aaa AAA 2,846 555 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16........ Aaa AAA 644 1,445 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16........ Aaa AAA 1,686 2,455 Orange County, Florida, Housing Finance Authority, Multi-Family Mortgage Revenue, Series 1999L, AMT, 5.650% 12/01/17........ A3 NR 2,427 1,720 Orange County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue, Series 1997A, AMT, (GNMA/FNMA COLL), 5.900% 09/01/19........ NR AAA 1,791 10,000 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24........ Aaa AAA 9,342 2,000 Orlando and Orange County, Florida, Expressway Authority, Revenue, Junior Lien, Series 1990, (FGIC Insured), 6.500% 07/01/10........ Aaa AAA 2,351
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,000 Orlando, Florida, Greater Orlando Aviation Authority, Airport Facilities Revenue Refunding, Series 1997, AMT, (FGIC Insured), 5.125% 10/01/12........ Aaa AAA $ 1,037 3,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding, Series 1992, 5.600% 10/01/03........ Aa1 AA 3,158 2,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding, Series 1993B, 5.400% 10/01/08........ Aa2 AA- 2,101 2,000 Palm Beach County, Florida, GO Refunding, Series 1998, 5.500% 12/01/11........ Aa1 AAA 2,218 1,250 Palm Beach County, Florida, GO, Series 1991, Prerefunded 10/01/01 @ 102, 6.600% 10/01/11........ NR NR 1,296 1,750 Palm Beach County, Florida, GO, Series 1994, 6.875% 12/01/03........ Aa1 AAA 1,902 1,300 Palm Beach County, Florida, GO, Series 1994, 7.000% 12/01/04........ Aa1 AAA 1,452 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 1,077 4,350 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 4,456 2,000 Palm Beach County, Florida, School District, GO Refunding, Series 1992, (AMBAC Insured), 6.000% 08/01/06........ Aaa AAA 2,086 2,000 Palm Beach County, Florida, Stadium Facilities Revenue, Series 1996, (MBIA Insured), 5.250% 12/01/16........ Aaa AAA 2,057
SEE NOTES TO FINANCIAL STATEMENTS. 146 151 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,250 Pembroke Pines, Florida, Consolidated Utilities Systems Revenue, Series 1992, (FGIC Insured), 6.250% 09/01/07........ Aaa AAA $ 1,391 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 1,435 1,000 Pinellas County, Florida, PCR Refunding, (Anclote and Barton Power Plants - Florida Power Corporation Project) Series 1991, 7.200% 12/01/14........ A1 BBB+ 1,025 2,500 Pinellas County, Florida, Resource Recovery Revenue Refunding, Series 1990A, (MBIA Insured), 6.800% 10/01/02........ Aaa AAA 2,557 2,000 Reedy Creek, Florida, GO, Series 1995A, (MBIA Insured), 5.750% 06/01/15........ Aaa AAA 2,086 1,690 Reedy Creek, Florida, Improvement District, Revenue, Unrefunded Balance, Series 1991A, 6.400% 06/01/07........ A1 A+ 1,715 10 Reedy Creek, Florida, Improvement District, Series 1991A, Prerefunded 06/01/01 @ 101, 6.400% 06/01/07........ A1 A+ 10 1,200 Sarasota County, Florida, GO Refunding, Series 1992, (FGIC Insured), 6.100% 10/01/02........ Aaa AAA 1,240 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 1,748
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 1,750 Sarasota County, Florida, Public Hospital Board, Revenue Refunding, (Sarasota Memorial Hospital Project) Series 1998B, (MBIA Insured), 5.250% 07/01/11........ Aaa AAA $ 1,869 1,000 Sarasota, Florida, Water and Sewer Utility Revenue Refunding, Series 1992, (FGIC Insured), 6.000% 10/01/02........ Aaa AAA 1,040 2,100 Seminole County, Florida, School District, GO Refunding, Series 1992, (MBIA Insured), 5.900% 08/01/02........ Aaa AAA 2,173 2,000 St. Lucie County, Florida, School District, GO Refunding, Series 1992, (AMBAC Insured), 6.000% 07/01/03........ Aaa AAA 2,101 1,000 St. Lucie County, Florida, School District, GO, Series 1997, (FGIC Insured), 5.875% 02/01/07........ Aaa AAA 1,102 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 1,053 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 1,053 1,000 Tampa, Florida, Capital Improvement Authority, Hospital Revenue, (H. Lee Moffitt Project) Series 1999A, 4.875% 07/01/13........ A3 A 969 2,000 Tampa, Florida, Health Systems Revenue, (Catholic Health Project) Series 1998A-1, (MBIA Insured), 4.875% 11/15/15........ Aaa AAA 1,970
SEE NOTES TO FINANCIAL STATEMENTS. 147 152 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 3,170 Tampa, Florida, Sports Authority, Local Optional Sales Tax Revenue, (Stadium Project) Series 1997, (MBIA Insured), 6.000% 01/01/07........ Aaa AAA $ 3,510 3,000 Tampa, Florida, Tax Allocation, (Cigarette - H Lee Moffitt Cancer Project) Series 1999, (AMBAC Insured), 5.000% 03/01/07........ Aaa AAA 3,174 1,000 Tampa, Florida, Water and Sewer Revenue, Series 1993A, (FGIC Insured), 5.000% 10/01/02........ Aaa AAA 1,026 1,025 Venice, Florida, Health Facilities Revenue, (Venice Hospital Inc. Project) Series 1994, 5.300% 12/01/02........ Aaa NR 1,060 -------- 234,513 -------- ILLINOIS -- 0.4% 1,620 Champaign County, Illinois, Community Unit School District No. 116 Urbana, GO, Series 1999C, (FGIC Insured), 4.630%+ 01/01/10....... Aaa AAA 1,085 -------- LOUISIANA -- 0.8% 2,000 Calcasieu Parish, Louisiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06........ Baa3 BBB- 2,001 -------- SOUTH CAROLINA -- 0.9% 2,700 South Carolina State, Capital Improvement, GO, Series 2001A, 3.500% 01/01/16........ Aaa AAA 2,304 -------- TEXAS -- 1.8% 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........ Baa1 BBB- 2,071
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 4,000 Texas State, Turnpike Authority, Dallas North Tollway Revenue, (President George Bush Turnpike Project) Series 1996, (AMBAC Insured), 4.670%+ 01/01/11....... Aaa AAA $ 2,550 -------- 4,621 -------- VIRGINIA -- 0.8% 2,000 Louisa, Virginia, Industrial Development Authority, Solid Waste and Sewage Disposal Revenue, (Virginia Electric and Power Company Project) Series 2001A, AMT, Mandatory Put 03/01/02 @ 100, 4.000% 03/01/31........ P1 A-1 2,001 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $236,996)........................ 246,525 --------
SHARES (000) --------- INVESTMENT COMPANIES -- 0.5% (Cost $1,128) 1,128 Nations Municipal Reserves#........... 1,128 -------- TOTAL INVESTMENTS (Cost $238,124*)............. 98.9% 247,653 -------- OTHER ASSETS AND LIABILITIES (NET)........ 1.1% Cash.................................. $ 1 Receivable for Fund shares sold....... 35 Interest receivable................... 4,591 Payable for Fund shares redeemed...... (782) Investment advisory fee payable....... (58) Administration fee payable............ (43) Shareholder servicing and distribution fees payable........................ (5) Distributions payable................. (964) Accrued Trustees' fees and expenses... (28) Accrued expenses and other liabilities......................... (39) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................... 2,708 -------- NET ASSETS..................... 100.0% $250,361 ======== NET ASSETS CONSIST OF: Undistributed net investment income... $ 22 Accumulated net realized loss on investments sold.................... (1,399) Net unrealized appreciation of investments......................... 9,529 Paid-in capital....................... 242,209 -------- NET ASSETS............................ $250,361 ========
SEE NOTES TO FINANCIAL STATEMENTS. 148 153 NATIONS FUNDS Nations Florida Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($240,440,899 / 22,476,820 shares outstanding)........................ $10.70 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($5,318,820 / 497,676 shares outstanding)................. $10.69 ===== Maximum sales charge.................. 3.25% Maximum offering price per share...... $11.05 INVESTOR B SHARES: Net asset value and offering price per share** ($4,429,092 / 413,995 shares outstanding)........................ $10.70 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($172,603 / 16,105 shares outstanding)........................ $10.72 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $9,529 on investment securities was comprised of gross appreciation of $9,910 and gross depreciation of $381 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $238,124. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Florida Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 22.08% AMBAC 17.03% Nations Florida Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Transportation Revenue 12.83% Hospital Revenue 12.07% Housing Revenue 10.19% SEE NOTES TO FINANCIAL STATEMENTS. 149 154 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 97.0% FLORIDA -- 85.9% $ 805 Alachua County, Florida, Health Facilities Authority, Revenue Refunding, (Santa Fe Healthcare Facilities, Inc. Project) Series 1993, 6.000% 11/15/09........ Baa1 AAA $ 873 1,000 Alachua County, Florida, Health Facilities Authority, Revenue, (Shands Teaching Hospital/Clinic Project) Series 1996A, (MBIA Insured), 5.000% 12/01/04........ Aaa AAA 1,048 3,375 Bay County, Florida, PCR Refunding, (International Paper Company Project) Series 1998A, 5.100% 09/01/12............... Baa1 BBB+ 3,427 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 2,699 1,000 Canaveral, Florida, Port Authority, Port Improvement Revenue Refunding, Series 1996B, (FGIC Insured), 5.700% 06/01/13........ Aaa AAA 1,072 2,250 Charlotte County, Florida, Utility Revenue Refunding, Series 1996A, (FGIC Insured), 5.625% 10/01/16............... Aaa AAA 2,383 5,175 Collier County, Florida, Health Facilities Authority, Revenue Refunding, (Moorings, Inc. Project) Series 1994, 7.000% 12/01/19............... NR A- 5,353 2,500 Dade County, Florida, Aviation Revenue, Series 1996A, AMT, (MBIA Insured), 5.750% 10/01/12............... Aaa AAA 2,686 1,000 Dade County, Florida, School District, GO, Series 1994A, (MBIA Insured), 6.125% 06/01/14............... Aaa AAA 1,097
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $2,000 Escambia County, Florida, Housing Finance Authority, Single-Family Mortgage Revenue, (Multi-County Program) Series 2000A, AMT, (MBIA/FHA/VA Insured), 6.300% 10/01/20............... Aaa NR $ 2,141 1,000 Escambia County, Florida, PCR, (Champion International Corporation Project) Series 1994, AMT, 6.900% 08/01/22........ Baa1 BBB+ 1,043 1,000 Escambia County, Florida, PCR, (Champion International Corporation Project) Series 1996, AMT, 6.400% 09/01/30........ Baa1 NR 1,013 3,000 Florida State, Board of Education, Capital Outlay GO, Series 1997A, 5.000% 01/01/17............... Aa2 AA+ 3,008 1,000 Florida State, Board of Education, Public Education Capital Outlay GO Refunding, Series 1993A, 5.000% 06/01/08............... Aa2 AA+ 1,061 2,500 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.250% 06/01/16............... Aa2 AA+ 2,555 2,000 Florida State, Board of Education, Public Education Capital Outlay GO, Series 1996A, 5.000% 06/01/18............... Aa2 AA+ 2,000 1,000 Florida State, Department of Transportation, GO, (Right of Way Bridge Project) Series 1996, 5.375% 07/01/26++...... Aa2 AA+ 1,014 1,000 Florida, Capital Trust Agency Multi-Family Housing Revenue, (Shadow Run Project) Series 2000A, (FNMA COLL), Mandatory Put 11/01/10 @ 100, 5.150% 11/01/30............... Aaa NR 1,019 1,000 Florida, Housing Finance Agency, Multi-Family Housing Revenue Refunding, (Altamonte Project) Series 1994C, Mandatory Put 12/01/03 @ 100, 7.000% 12/01/24............... NR BBB+ 1,048
SEE NOTES TO FINANCIAL STATEMENTS. 150 155 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $2,970 Florida, Housing Finance Agency, Revenue, (Homeowner Mortgage Project) Series 1997-2, AMT, (MBIA Insured), 5.750% 07/01/14........ Aaa AAA $ 3,121 1,615 Florida, Housing Finance Agency, Revenue, (Homeowner Mortgage Project) Series 1998-1, (MBIA Insured), 4.950% 01/01/11........ Aaa AAA 1,679 3,000 Gainesville, Florida, Utility Systems Revenue, Series 1992B, 6.500% 10/01/11++...... Aa3 AA 3,556 1,000 Hillsborough County, Florida, IDR Refunding, (Tampa Electric Company Project) Series 1992, 8.000% 05/01/22........ A1 A 1,064 1,000 Hillsborough County, Florida, Utilities Revenue Refunding, Series 1993, (MBIA Insured), 5.500% 08/01/12........ Aaa AAA 1,033 5,000 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), 5.650% 10/01/14........ Aaa AAA 5,274 5,000 Jacksonville, Florida, Sales Tax Revenue, (River City Renaissance Project) Series 1995, (FGIC Insured), 5.375% 10/01/18........ Aaa AAA 5,092 2,430 Leon County, Florida, Capital Improvement Revenue, Series 1997, (AMBAC Insured), 5.250% 10/01/17............... Aaa AAA 2,480 2,300 Martin County, Florida, Industrial Development Authority, Revenue, (Indiantown Cogeneration Project) Series 1995B, AMT, 8.050% 12/15/25........ Baa3 BBB- 2,416 2,620 Miami Beach, Florida, Water and Sewer Revenue, Series 1995, (FSA Insured), 5.375% 09/01/15........ Aaa AAA 2,717
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $3,500 Miami-Dade County, Florida, Aviation Revenue, Series 1998C, AMT, (MBIA Insured), 5.250% 10/01/15........ Aaa AAA $ 3,581 2,000 North Broward, Florida, Hospital District, Revenue Refunding, Series 1997, (MBIA Insured), 5.250% 01/15/17........ Aaa AAA 2,040 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 5,645 935 Orange County, Florida, Health Facilities Authority, Revenue, (Orlando Regional Healthcare Project) Series 1993B, (MBIA Insured), 5.000% 10/01/10........ Aaa AAA 963 1,260 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16........ Aaa AAA 1,463 3,260 Orange County, Florida, Health Facilities Authority, Revenue, Series 1996A, (MBIA Insured), 6.250% 10/01/16........ Aaa AAA 3,804 3,000 Orange County, Florida, Tourist Development Tax Revenue Refunding, Series 1998A, (AMBAC Insured), 4.750% 10/01/24............... Aaa AAA 2,802 1,000 Orange County, Florida, Tourist Development Tax Revenue, Series 1994B, (MBIA Insured), Prerefunded 10/01/04 @ 102, 6.000% 10/01/14........ Aaa AAA 1,101 2,950 Orlando, Florida, Greater Orlando Aviation Authority, Airport Facilities Revenue, Series 1999A, AMT, (FGIC Insured), 5.250% 10/01/10........ Aaa AAA 3,140 1,800 Orlando, Florida, Utilities Commission, Water and Electric Utilities Revenue Refunding, Series 1989D, 6.750% 10/01/17............... Aa2 AA- 2,169
SEE NOTES TO FINANCIAL STATEMENTS. 151 156 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $1,500 Orlando, Florida, Utilities Commission, Water and Electric Utilities Revenue Refunding, Series 1994A, 5.000% 10/01/20............... Aa2 AA- $ 1,480 1,000 Osceola County, Florida, Health Facilities Authority, Revenue Refunding, (Evangelical Lutheran Good Samaritan Society Project) Series 1994, (AMBAC Insured), 6.000% 05/01/10........ Aaa AAA 1,068 1,500 Palm Beach County, Florida, Health Facilities Authority, Hospital Revenue, (Good Samaritans Health System Project) Series 1993, Prerefunded 10/01/05 @ 100, 6.200% 10/01/11........ Aaa NR 1,620 985 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 1,009 5,065 Palm Beach County, Florida, Solid Waste Authority, Revenue, Unrefunded Balance, Series 1997A, (AMBAC Insured), 6.000% 10/01/10............... Aaa AAA 5,752 2,000 Pensacola, Florida, Airport Revenue, Series 1997B, AMT, (MBIA Insured), 5.625% 10/01/14............... Aaa AAA 2,120 4,000 Pinellas County, Florida, Capital Improvement Revenue, Series 2000, 4.500% 01/01/06........ Aa3 AA- 4,131 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... Aa3 A-1 1,031 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 4,120
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- (CONTINUED) $2,500 Sunrise Lakes, Florida, Phase 4 Recreational District, GO, Series 1995A, Prerefunded 08/01/05 @ 102, 6.750% 08/01/24........ NR BBB- $ 2,844 1,000 Tampa, Florida, Sports Authority, Local Optional Sales Tax Revenue, (Stadium Project) Series 1997, (MBIA Insured), 5.125% 01/01/12........ Aaa AAA 1,046 2,000 Tampa, Florida, Sports Authority, Local Optional Sales Tax Revenue, (Stadium Project) Series 1997, (MBIA Insured), 5.250% 01/01/17........ Aaa AAA 2,048 2,500 Tampa, Florida, Sports Authority, Sales Tax Revenue, (Tampa Bay Arena Project) Series 1995, (MBIA Insured), 5.750% 10/01/15........ Aaa AAA 2,807 1,000 Tampa, Florida, Tax Allocation, (H-Lee Moffitt Cancer Project) Series 1999, (AMBAC Insured), 4.875% 03/01/06............... Aaa AAA 1,050 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 1,039 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 2,404 -------- 127,249 -------- GUAM -- 5.0% 3,820 Guam, Airport Authority, Revenue, Series 1993A, 6.375% 10/01/10........ NR BBB 4,034
SEE NOTES TO FINANCIAL STATEMENTS. 152 157 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GUAM -- (CONTINUED) $3,000 Guam, Power Authority, Revenue, Series 1994A, Prerefunded 10/01/04 @ 102, 6.750% 10/01/24........ NR AAA $ 3,385 -------- 7,419 -------- LOUISIANA -- 0.7% 1,000 Calcasieu Parish, Louisiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06............... Baa3 BBB- 1,001 -------- PUERTO RICO -- 4.1% 4,190 Puerto Rico Commonwealth, GO, Series 1997, (MBIA Insured), 6.500% 07/01/15............... Aaa AAA 5,075 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 1,072 -------- 6,147 -------- TEXAS -- 1.3% 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(a)..... NR NR 2,000 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $133,459)........................ 143,816 --------
SHARES VALUE (000) (000) ------------------------------------------------------------ INVESTMENT COMPANIES -- 3.0% (Cost $4.446) 4,446 Nations Municipal Reserves#............. $ 4,446 -------- TOTAL INVESTMENTS (Cost $137,905*)............... 100.0% 148,262 -------- OTHER ASSETS AND LIABILITIES (NET).......................... 0.0% Cash.................................... $ 1 Interest receivable..................... 3,047 Payable for Fund shares redeemed........ (512) Investment advisory fee payable......... (44) Administration fee payable.............. (25) Shareholder servicing and distribution fees payable.......................... (19) Distributions payable................... (414) Payable for investment securities purchased............................. (2,000) Accrued Trustees' fees and expenses..... (27) Accrued expenses and other liabilities........................... (33) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................. (26) -------- NET ASSETS....................... 100.0% $148,236 ======== NET ASSETS CONSIST OF: Undistributed net investment income..... $ 224 Accumulated net realized gain on investments sold...................... 195 Net unrealized appreciation of investments........................... 10,357 Paid-in capital......................... 137,460 -------- NET ASSETS.............................. $148,236 ========
SEE NOTES TO FINANCIAL STATEMENTS. 153 158 NATIONS FUNDS Nations Florida Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------ PRIMARY A SHARES: Net asset value, offering and redemption price per share ($92,326,648 / 9,248,707 shares outstanding).......................... $9.98 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($45,033,736 / 4,511,212 shares outstanding).......................... $9.98 ===== Maximum sales charge.................... 4.75% Maximum offering price per share........ $10.48 INVESTOR B SHARES: Net asset value and offering price per share** ($10,811,329 / 1,083,267 shares outstanding).......................... $9.98 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($64,153 / 6,432 shares outstanding).... $9.97 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $10,357 on investment securities was comprised of gross appreciation of $10,419 and gross depreciation of $62 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $137,905. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. ++ All or a portion of security segregated as collateral for "when issued" securities. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. (a) Security purchased on a "when issued" basis. Nations Florida Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 33.90% FGIC 11.44% AMBAC 8.87% SEE NOTES TO FINANCIAL STATEMENTS. 154 159 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.0% GEORGIA -- 94.4% $1,000 Alpharetta, Georgia, GO, Series 1992, 6.000% 05/01/03........ Aa2 AA $ 1,052 1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 1996, (AMBAC Insured), 5.000% 01/01/03........ Aaa AAA 1,027 1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 1996, (AMBAC Insured), 6.000% 01/01/03++...... Aaa AAA 1,043 4,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 2000A, (FGIC Insured), 5.600% 01/01/30........ Aaa AAA 4,184 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 1,926 2,750 Bibb County, Georgia, GO, Series 1993, 5.500% 01/01/08........ Aa3 AA 2,869 1,000 Brunswick and Glynn County, Georgia, Development Authority, Revenue Refunding, (Georgia-Pacific Corporation Project) Series 1998, AMT, 5.550% 03/01/26........ Baa3 NR 876 1,500 Burke County, Georgia, Development Authority, PCR, (Oglethorpe Power Corporation Project) Series 1994B, 4.700% 01/01/04........ A3 A 1,530 2,500 Cartersville, Georgia, Development Authority, Sewer Facilities Revenue Refunding, (Anheuser-Busch Companies, Inc. Project) Series 1997, AMT, 5.625% 05/01/09........ A1 A+ 2,673 1,000 Cherokee County, Georgia, School System GO Refunding, Series 1992, 5.900% 06/01/02........ A2 NR 1,031
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Cherokee County, Georgia, School System GO, Series 1993, (AMBAC Insured), 5.875% 02/01/09........ Aaa AAA $ 1,098 705 Cherokee County, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993, (MBIA Insured), 5.300% 08/01/09........ Aaa AAA 745 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 1,059 1,000 Clarke County, Georgia, School District, GO Refunding, Series 1993, (FGIC Insured), 5.100% 07/01/04........ Aaa AAA 1,048 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 3,417 1,000 Clayton County, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993, (MBIA Insured), 5.400% 05/01/07........ Aaa AAA 1,048 2,000 Clayton County, Georgia, Water and Sewer Authority, Revenue, Series 2000, 6.250% 05/01/17........ Aa3 AA 2,245 2,000 Cobb County and Marietta, Georgia, Water Authority, Revenue Refunding, Series 1993, 5.000% 11/01/03........ Aa1 AA 2,079 1,000 Cobb County, Georgia, Detention Buildings and Facilities GO, Series 1993, 5.300% 01/01/08........ Aaa AAA 1,040 1,200 Cobb County, Georgia, Kennestone Hospital Authority, Revenue, Series 1992A, 5.600% 04/01/05........ Aa2 AA- 1,242
SEE NOTES TO FINANCIAL STATEMENTS. 155 160 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Cobb County, Georgia, Kennestone Hospital Authority, Revenue, Series 1992A, 5.700% 04/01/06........ Aa2 AA- $ 1,035 2,000 Cobb County, Georgia, School District, GO, Series 1991B, 6.150% 02/01/03........ Aa1 AA 2,097 2,000 Cobb County, Georgia, School District, GO, Series 1995, 4.800% 02/01/04........ Aa1 AA 2,068 1,000 Cobb County, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993A, 5.400% 07/01/08........ Aaa AA 1,046 2,250 Columbus, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1992, (FGIC Insured), 6.000% 05/01/03........ Aaa AAA 2,367 1,000 Columbus, Georgia, Water and Sewer Authority, Revenue Refunding, Series 1993, 5.100% 05/01/03........ A1 A+ 1,031 1,000 Dalton, Georgia, Building Authority Revenue, Series 1993, 5.000% 07/01/02........ A1 NR 1,021 1,500 Dalton, Georgia, Multiple Utilities Revenue Refunding, Series 1997, (MBIA Insured), 4.450% 01/01/03........ Aaa AAA 1,527 4,000 DeKalb County, Georgia, Development Authority, Revenue, (Emory University Project) Series 1994A, 6.000% 10/01/14........ Aa1 AA 4,271 1,000 DeKalb County, Georgia, School District, GO Refunding, Series 1993, 5.000% 07/01/03........ Aa2 AA 1,035 1,000 Downtown Savannah Authority, Georgia, Revenue Refunding, (Chatham County Project) Series 1993A, 5.000% 01/01/11........ A1 AA 1,021 3,490 East Point, Georgia, Building Authority, Revenue, Series 2000, (FSA Insured), 5.270%+ 02/01/18....... Aaa AAA 1,391
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $6,440 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18........ Baa3 BBB- $ 6,011 1,000 Fayette County, Georgia, School District, GO Refunding, Series 1992, (FGIC Insured), 6.100% 03/01/03........ Aaa AAA 1,044 1,000 Forsyth County, Georgia, School District, GO, Series 1999, 6.000% 02/01/15........ Aa2 AA- 1,120 1,500 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Georgia Baptist Health Care Project) Series 1992A, 5.800% 09/01/01........ Baa1 NR 1,516 1,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (Georgia Baptist Health Care Project) Series 1992A, Prerefunded 09/01/02 @ 102, 6.000% 09/01/03........ Baa1 NR 1,055 2,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Joseph Hospital Project) Series 1994, 4.900% 10/01/03........ Aaa NR 2,074 1,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Joseph Hospital Project) Series 1994, 5.500% 10/01/14........ Aaa NR 1,071 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 2,046 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 1,042
SEE NOTES TO FINANCIAL STATEMENTS. 156 161 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,025 Fulton County, Georgia, Building Authority, Revenue, (County Government and Health Facilities Project) Series 1992A, 5.700% 01/01/04........ Aa3 AA $ 1,082 1,735 Fulton County, Georgia, Development Authority, Revenue, (Georgia Tech Foundation Facilities Project) Series 1997A, 5.000% 09/01/17........ Aa1 AA+ 1,744 1,000 Fulton County, Georgia, Hospital Authority, Revenue Refunding Anticipation Certificates, (Northside Project) Series 1992A, (MBIA Insured), 6.000% 10/01/01........ Aaa AAA 1,014 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 3,290 1,500 Fulton County, Georgia, School District, GO Refunding, Series 1991, 6.250% 05/01/04........ Aa2 AA 1,617 1,500 Georgia State, GO Refunding, Series 1992A, 6.250% 03/01/06........ Aaa AAA 1,666 1,200 Georgia State, GO, Series 1992B, 6.000% 03/01/04........ Aaa AAA 1,283 2,750 Georgia State, GO, Series 1993C, 6.500% 07/01/05........ Aaa AAA 3,055 2,000 Georgia State, GO, Series 1999D, 5.800% 11/01/13++...... Aaa AAA 2,241 875 Georgia State, Housing and Finance Authority, Revenue, (Home Ownership Program) Series 1992B, AMT, 6.600% 06/01/25........ NR AA+ 905 1,000 Georgia State, Tollway Authority, Revenue Refunding, (Georgia 400 Project) Series 1998, 5.000% 07/01/07........ Aaa AAA 1,063
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $3,880 Georgia, George L. Smith II World Congress Center Authority, Revenue Refunding, (Domed Stadium Project) Series 2000, AMT, (MBIA Insured), 6.000% 07/01/05........ Aaa AAA $ 4,184 1,500 Georgia, Municipal Gas Authority, Gas Tax Revenue, (Southern Storage Gas Project) Series 1994, 6.000% 07/01/04........ NR A- 1,601 1,000 Griffin-Spalding County, Georgia, School System, GO, Series 1996, (State Aid Withholding, FSA Insured), 5.250% 02/01/10........ Aaa AAA 1,018 1,000 Hall County, Georgia, School District, GO Refunding, Series 1992B, 6.300% 12/01/05........ A1 NR 1,109 2,000 Hall County, Georgia, School District, GO, Series 1994, (AMBAC Insured), Prerefunded 12/01/04 @ 102, 6.700% 12/01/14........ Aaa AAA 2,254 1,000 Henry City and County, Georgia, Water and Sewer Authority, Improvement Revenue Refunding, Series 1993A, 5.000% 02/01/07........ A2 NR 1,041 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 1,688 2,000 Henry County, Georgia, Hospital Authority, Revenue, (Henry Medical Center Project) Series 1997, (AMBAC Insured), 6.000% 07/01/29........ Aaa AAA 2,189 1,000 Henry County, Georgia, School District, GO, Series 1992A, 5.700% 08/01/02........ Aa3 AA- 1,032
SEE NOTES TO FINANCIAL STATEMENTS. 157 162 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $2,000 Houston County, Georgia, School District, GO, Series 1996, (State Aid Withholding, MBIA Insured), 5.500% 03/01/16........ Aaa AAA $ 2,028 1,000 Macon, Georgia, Water Authority, Water and Sewer Revenue Refunding, Series 1994A, 4.700% 10/01/04........ A1 AA- 1,037 1,000 Macon-Bibb County, Georgia, Industrial Authority, Industrial Revenue, (Weyerhaeuser Company Project) Series 1982, 9.000% 10/01/07........ A3 A 1,285 1,000 Meriwether County, Georgia, School District, GO, Series 1996, (State Aid Withholding, FSA Insured), 5.500% 02/01/16........ Aaa AAA 1,050 3,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue Refunding, Series 1992P, (AMBAC Insured), 5.900% 07/01/03........ Aaa AAA 3,161 540 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1983D, 7.000% 07/01/11........ Aaa AAA 660 2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1998B, (MBIA Insured), 5.100% 07/01/13++...... Aaa AAA 2,607 2,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1998B, (MBIA Insured), 5.100% 07/01/15........ Aaa AAA 2,055 1,000 Monroe County, Georgia Development Authority, PCR, (Oglethorpe Power Corporation Project) Series 1992A, 6.800% 01/01/12........ A3 A 1,162 1,100 Paulding County, Georgia, School District, GO, Series 1992A, 6.400% 02/01/04........ A2 A 1,183
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $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 $ 998 1,400 Private Colleges and Universities Facilities Authority, Georgia, Revenue, (Emory University Project) Series 1992C, 5.750% 10/01/02........ Aa1 AA 1,451 1,000 Richmond County, Georgia, Board of Education, GO Refunding, Series 1993, (FGIC Insured), 4.700% 11/01/06........ Aaa AAA 1,039 2,000 Roswell, Georgia, GO, Series 1995, 5.600% 02/01/10++...... Aaa AAA 2,132 2,000 Roswell, Georgia, GO, Series 2000, 5.500% 02/01/12........ Aaa AAA 2,174 1,000 Savannah, Georgia, Economic Development Authority, Revenue Refunding, (Union Camp Corporation Project) Series 1993, 5.150% 05/01/02........ Baa1 NR 1,015 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 1,350 1,225 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs-Candler Health Systems Project) Series 1998A, (FSA Insured), 5.250% 07/01/11........ Aaa NR 1,295 1,310 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs-Candler Health Systems Project) Series 1998A, (FSA Insured), 5.250% 07/01/12........ Aaa NR 1,374
SEE NOTES TO FINANCIAL STATEMENTS. 158 163 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,500 Savannah, Georgia, Resource Recovery Development Authority, Revenue Refunding, (Savannah Energy Systems Company Project) Series 1992, 5.850% 12/01/01........ A1 A+ $ 1,526 1,000 Savannah, Georgia, Water and Sewer Improvement Revenue Refunding, Series 1993, 5.100% 12/01/09........ Aa3 AA- 1,033 2,570 White County, Georgia, Industrial Development Authority, Revenue Refunding, (Springs Industries, Inc. Project) Series 1992, 6.850% 06/01/10........ NR BBB+ 2,609 -------- 139,421 -------- LOUISIANA -- 1.4% 2,000 Calcasieu Parish, Louisiana, Industrial Development Board, PCR Refunding, (Occidental Petroleum Project) Series 2001, 4.800% 12/01/06........ Baa3 BBB- 2,001 -------- MINNESOTA -- 1.1% 1,785 Minneapolis, Minnesota, GO, Series 1998, 4.750% 12/01/26........ Aaa AAA 1,686 -------- TEXAS -- 0.7% 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(a)..... NR NR 1,000 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- 1.4% $2,000 Louisa, Virginia, Industrial Development Authority, Solid Waste and Sewage Disposal Revenue, (Virginia Electric and Power Company Project) Series 2001A, AMT, Mandatory Put 03/01/02 @ 100, 4.000% 03/01/31........ P1 A-1 $ 2,001 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost: $139,739)....................... 146,109 --------
SHARES (000) --------- INVESTMENT COMPANIES -- 1.1% (Cost: $1,676) 1,676 Nations Municipal Reserves#........... 1,676 -------- TOTAL INVESTMENTS (Cost $141,415*)............. 100.1% 147,785 -------- OTHER ASSETS AND LIABILITIES (NET)........................ (0.1)% Interest receivable................... $ 2,146 Payable for Fund shares redeemed...... (701) Investment advisory fee payable....... (34) Administration fee payable............ (25) Shareholder servicing and distribution fees payable........................ (9) Distributions payable................. (533) Payable for investment securities purchased........................... (1,000) Accrued Trustees' fees and expenses... (28) Accrued expenses and other liabilities......................... (28) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... (212) -------- NET ASSETS..................... 100.0% $147,573 ======== NET ASSETS CONSIST OF: Undistributed net investment income... $ 162 Accumulated net realized loss on investments sold.................... (1,138) Net unrealized appreciation of investments......................... 6,370 Paid-in capital....................... 142,179 -------- NET ASSETS............................ $147,573 ========
SEE NOTES TO FINANCIAL STATEMENTS. 159 164 NATIONS FUNDS Nations Georgia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($128,157,908 / 11,840,947 shares outstanding)........................ $10.82 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($11,872,223 / 1,096,823 shares outstanding)................. $10.82 ====== Maximum sales charge.................. 3.25% Maximum offering price per share...... $11.18 INVESTOR B SHARES: Net asset value and offering price per share** ($6,772,570 / 625,722 shares outstanding)........................ $10.82 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($770,155 / 71,157 shares outstanding)........................ $10.82 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $6,370 on investment securities was comprised of gross appreciation of $6,693 and gross depreciation of $323 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $141,415. ** 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. ++ All or a portion of security segregated as collateral for "when issued" securities. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. (a) Security purchased on a "when issued" basis. Nations Georgia Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 16.11% Nations Georgia Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Industrial Development Revenue/ Pollution Control Revenue 15.18% SEE NOTES TO FINANCIAL STATEMENTS. 160 165 NATIONS FUNDS Nations Georgia Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 92.8% GEORGIA -- 92.8% $ 500 Atlanta and Fulton County, Georgia, Recreation Authority, Public Improvement Revenue, (Downtown Area Project) Series 1996A, (MBIA Insured), 5.375% 12/01/26......... Aaa AAA $ 510 1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding, Series 2000A, (FGIC Insured), 5.600% 01/01/30......... Aaa AAA 1,046 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+ 1,043 1,000 Clayton County, Georgia, Water and Sewer Authority, Revenue, Series 2000, 5.600% 05/01/18................ Aa3 AA 1,061 500 Columbia County, Georgia, School District, GO, Series 1994A, (MBIA Insured), 6.250% 04/01/13......... Aaa AAA 548 1,000 DeKalb County, Georgia, Development Authority, Revenue, (Emory University Project) Series 1994A, 6.000% 10/01/14................ Aa1 AA 1,068 2,490 East Point, Georgia, Building Authority, Revenue, Series 2000, (FSA Insured), 5.320%+ 02/01/19........ Aaa AAA 926 1,000 Effingham County, Georgia, Development Authority, Solid Waste Disposal Revenue, (Fort James Corporation Project) Series 1998, AMT, 5.625% 07/01/18......... Baa3 BBB- 933 500 Fayette County, Georgia, School District, GO, Series 1994, 6.125% 03/01/15................ Aa3 NR 545 1,000 Forsyth County, Georgia, School District, GO, Series 1999, 6.000% 02/01/15................ Aa2 AA- 1,121
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Fulco, Georgia, Hospital Authority, Revenue Anticipation Certificates, (St. Joseph Hospital Project) Series 1994, 5.500% 10/01/14......... Aaa NR $ 1,072 500 Fulton County, Georgia, Development Authority, Revenue, (Clark Atlanta University Project) Series 1995, (CONNIE LEE Insured), 5.125% 01/01/10......... Baa3 AAA 526 1,300 Fulton County, Georgia, Water and Sewer Revenue, Series 1998, 4.750% 01/01/20......... A1 AA- 1,238 1,000 Georgia State, GO, Series 1999D, 5.800% 11/01/13......... Aaa AAA 1,120 1,060 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1998B-3, 4.400% 06/01/17......... Aa2 AAA 1,059 1,075 Georgia State, Housing and Finance Authority, Single-Family Mortgage Revenue, Series 1999B-2, AMT, 6.100% 06/01/31.... Aa2 AAA 1,121 1,000 Georgia, George L. Smith II World Congress Center Authority, Revenue Refunding, (Domed Stadium Project) Series 2000, AMT, (MBIA Insured), 6.000% 07/01/05......... Aaa AAA 1,078 500 Hall County, Georgia, School District, GO Refunding, Series 1997, (State Aid Withholding), 4.500% 11/01/14......... Aa2 NR 491 1,000 Henry County, Georgia, Hospital Authority, Revenue, (Henry Medical Center Project) Series 1997, (AMBAC Insured), 6.000% 07/01/29......... Aaa AAA 1,094 500 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 526
SEE NOTES TO FINANCIAL STATEMENTS. 161 166 NATIONS FUNDS Nations Georgia Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Revenue, Series 1998B, (MBIA Insured), 5.100% 07/01/15......... Aaa AAA $ 1,027 500 Peach County, Georgia, School District, GO, Series 1994, (State Aid Withholding, MBIA Insured), 6.500% 02/01/08......... Aaa AAA 572 1,000 Private Colleges and Universities Facilities Authority, Georgia, Revenue Refunding, (Mercer University Project) Series 1999A, 5.250% 10/01/20......... A3 NR 984 1,000 Private Colleges and Universities Facilities Authority, Georgia, Revenue Refunding, (Mercer University Project) Series 1999A, 5.375% 10/01/29......... A3 NR 984 1,000 Roswell, Georgia, GO, Series 1995, 5.600% 02/01/10......... Aaa AAA 1,066 500 Savannah, Georgia, Hospital Authority, Hospital Improvement Revenue Refunding, (Candler Hospital Project) Series 1992, Prerefunded 01/01/03 @ 102, 7.000% 01/01/23......... Ba1 BB 540 450 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 485 1,000 Savannah, Georgia, Hospital Authority, Revenue, (St. Josephs-Candler Health Systems Project) Series 1998B, (FSA Insured), 5.250% 07/01/10......... Aaa NR 1,064
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 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 $ 528 1,000 White County, Georgia, Industrial Development Authority, Revenue Refunding, (Springs Industries, Inc. Project) Series 1992, 6.850% 06/01/10......... NR BBB+ 1,015 ------- 26,391 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost: $24,636)......................... 26,391 -------
SHARES ------ INVESTMENT COMPANIES -- 6.0% (Cost: $1,713) 1,713 Nations Municipal Reserves#............ 1,713 ------- TOTAL INVESTMENTS (Cost $26,349*)..................... 98.8% 28,104 ------- OTHER ASSETS AND LIABILITIES (NET)......................... 1.2% Cash................................... $ 1 Receivable for Fund shares sold........ 16 Interest receivable.................... 452 Investment advisory fee payable........ (7) Administration fee payable............. (5) Shareholder servicing and distribution fees payable......................... (8) Distributions payable.................. (80) Accrued Trustees' fees and expenses.... (26) Accrued expenses and other liabilities.......................... (14) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................ 329 ------- NET ASSETS...................... 100.0% $28,433 =======
SEE NOTES TO FINANCIAL STATEMENTS. 162 167 NATIONS FUNDS Nations Georgia Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE (000) ------------------------------------------------------------- NET ASSETS CONSIST OF: Undistributed net investment income.... $ 74 Accumulated net realized loss on investments sold..................... (981) Net unrealized appreciation of investments.......................... 1,755 Paid-in capital........................ 27,585 ------- NET ASSETS............................. $28,433 ======= PRIMARY A SHARES: Net asset value, offering and redemption price per share ($17,408,251 / 1,738,042 shares outstanding)......................... $10.02 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($1,789,274 / 178,648 shares outstanding).................. $10.02 ====== Maximum sales charge................... 4.75% Maximum offering price per share....... $10.52 INVESTOR B SHARES: Net asset value and offering price per share** ($9,177,572 / 916,083 shares outstanding)......................... $10.02 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($57,629 / 5,750 shares outstanding)......................... $10.02 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $1,755 on investment securities was comprised of gross appreciation of $1,756 and gross depreciation of $1 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $26,349. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Georgia Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 13.14% Nations Georgia Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Education Revenue 12.53% Housing Revenue 11.38% SEE NOTES TO FINANCIAL STATEMENTS. 163 168 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.4% KANSAS -- 85.2% $1,000 Butler County, Kansas, Unified School District Number 402, GO Refunding, Series 1994, (FSA Insured), 5.000% 10/01/07............... Aaa AAA $ 1,029 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 1,049 1,375 Fairway, Kansas, Industrial Revenue Refunding, (JC Nichols Company Project) Series 1998, (GTY-AGMT), 4.400% 03/01/03........ NR AA 1,381 490 Holton, Kansas, Industrial Revenue Refunding, (Wal-Mart Stores Inc. Project) Series 1991, 6.750% 01/01/06............... NR AA 492 1,185 Johnson County, Kansas, Unified School District Number 223, GO Refunding, Series 1994, (AMBAC Insured), 5.500% 09/01/04............... Aaa AAA 1,258 1,705 Johnson County, Kansas, Unified School District Number 229, GO Refunding, Series 1993A, (FGIC Insured), 5.400% 10/01/04........ Aaa AAA 1,779 1,500 Johnson County, Kansas, Unified School District Number 229, GO Refunding, Series 1993A, (FGIC Insured), 5.800% 10/01/08........ Aaa AAA 1,561 500 Johnson County, Kansas, Unified School District Number 229, GO, Series 1991A, Crossover Refunded 10/01/01 @ 100, 6.100% 10/01/02... Aa1 AA 507 1,180 Johnson County, Kansas, Unified School District Number 229, GO, Series 1994A, 6.250% 10/01/03............... Aa1 AA 1,259 1,130 Johnson County, Kansas, Unified School District Number 231, GO Refunding, Series 1998A, (FGIC Insured), 4.600% 10/01/09........ Aaa AAA 1,162
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $1,260 Johnson County, Kansas, Unified School District Number 231, GO Refunding, Series 1998A, (FGIC Insured), 4.700% 10/01/10........ Aaa AAA $ 1,298 1,250 Johnson County, Kansas, Unified School District Number 233, GO Refunding, Series 1992, (AMBAC Insured), 6.000% 09/01/06............... Aaa AAA 1,291 750 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 798 750 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 801 2,760 Johnson County, Kansas, Unified School District Number 233, GO, Series 1999A, (FGIC Insured), 5.375% 09/01/14 ....... Aaa NR 2,895 1,250 Johnson County, Kansas, Unified School District Number 512, Shawnee Mission, GO Refunding, Series 1996B, 4.850% 10/01/08............... Aa1 AA 1,298 1,510 Johnson County, Kansas, Unified School District Number 512, Shawnee Mission, GO, Series 1995, 5.200% 10/01/07............... Aa1 AA 1,590 1,380 Johnson County, Kansas, Unified School District Number 512, Shawnee Mission, GO, Series 1995, 5.200% 10/01/08............... Aa1 AA 1,443 750 Johnson County, Kansas, Water District Number 001, Water Revenue Refunding, Series 1993, 4.750% 06/01/04........ Aa1 AAA 772
SEE NOTES TO FINANCIAL STATEMENTS. 164 169 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $ 720 Johnson County, Kansas, Water District Number 001, Water Revenue Refunding, Series 1993, 4.750% 12/01/04........ Aa1 AAA $ 741 750 Johnson County, Kansas, Water District Number 001, Water Revenue Refunding, Series 1993, 4.800% 06/01/05........ Aa1 AAA 771 595 Junction City, Kansas, Water and Sewer Revenue, Series 1996A, (MBIA Insured), 4.900% 09/01/07 .............. Aaa AAA 630 500 Kansas City, Kansas, Hospital Revenue Refunding, (Sisters Charity Health Services Project) Series 1992, 5.600% 08/01/02........ Aa NR 514 500 Kansas City, Kansas, Hospital Revenue Refunding, (Sisters Charity Health Services Project) Series 1992, 5.800% 08/01/04........ Aa NR 522 2,230 Kansas City, Kansas, Utilities System Revenue, Series 1994, (FGIC Insured), Prerefunded 09/01/04 @ 102, 6.375% 09/01/23++............. Aaa AAA 2,474 1,200 Kansas State, Department of Transportation, Highway Revenue, Series 1992, 6.000% 03/01/02............... Aa2 AA+ 1,231 895 Kansas State, Department of Transportation, Highway Revenue, Series 1992A, Prerefunded 09/01/02 @ 102, 5.800% 09/01/05............... Aa2 AA+ 943 1,055 Kansas State, Department of Transportation, Highway Revenue, Series 1994, 4.800% 09/01/08............... Aa2 AA+ 1,104 735 Kansas State, Development Financing Authority, Health Facilities Revenue, (Hays Medical Center Inc. Project) Series 1997B, (MBIA Insured), 4.800% 11/15/04............... Aaa NR 765
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $ 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 $ 703 510 Kansas State, Development Financing Authority, Health Facilities Revenue, (Hays Medical Center Inc. Project) Series 1997B, (MBIA Insured), 5.000% 11/15/06............... Aaa NR 539 4,190 Kansas State, Development Financing Authority, Health Facilities Revenue, (Sisters of Charity Project) Series 2000J, 6.250% 12/01/28............... Aa3 AA 4,500 620 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996N, (MBIA Insured), 4.700% 11/15/05 .............. Aaa AAA 644 675 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996N, (MBIA Insured), 4.750% 11/15/06............... Aaa AAA 703 605 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996P, (MBIA Insured), 4.700% 11/15/05 .............. Aaa AAA 628 630 Kansas State, Development Financing Authority, Health Facilities Revenue, (St. Lukes/Shawnee Mission Project) Series 1996P, (MBIA Insured), 4.750% 11/15/06 .............. Aaa AAA 656 740 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project) Series 1996F, (MBIA Insured), 5.600% 11/15/07............... Aaa AAA 797
SEE NOTES TO FINANCIAL STATEMENTS. 165 170 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $ 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 $ 537 730 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project) Series 1996G, (MBIA Insured), 5.750% 11/15/09............... Aaa AAA 783 890 Kansas State, Development Financing Authority, Health Facilities Revenue, (Stormont-Vail Healthcare Inc. Project), Series 1996G, (MBIA Insured), 5.700% 11/15/08 .............. Aaa AAA 958 10,000 Kansas State, Development Financing Authority, Revenue, (Board of Regents Rehab Project) Series 1997G-2, 5.000% 10/01/10............... Aaa AAA 10,423 2,785 Kansas State, Development Financing Authority, Revenue, (Public Water Supply Revolving Project) Series 1997, (AMBAC Insured), 5.000% 04/01/17 .............. Aaa NR 2,794 3,700 Kansas State, Development Financing Authority, Revenue, (Public Water Supply Revolving Project) Series 1997, (AMBAC Insured), 5.000% 04/01/20 .............. Aaa NR 3,661 1,000 Kansas State, Development Financing Authority, Revenue, (Public Water Supply Revolving Project) Series 1998, 4.750% 04/01/18........ A2 NR 952 955 Kansas State, Development Financing Authority, Revenue, (Sisters of Charity Leavenworth Project) Series 1998, 5.000% 12/01/14........ Aaa AAA 968
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $1,000 Kansas State, Development Financing Authority, Revenue, (Water Pollution Control Project) Series 1993-II, 5.400% 11/01/03............... Aa1 AA+ $ 1,049 845 Kansas State, Development Financing Authority, Revenue, Unrefunded Balance, Series 1992L, (MBIA Insured), 5.625% 08/01/03............... Aaa AAA 855 1,150 Kansas, University Hospital Authority, Revenue, (Kansas University Health System Project) Series 1999A, (AMBAC Insured), 5.250% 09/01/11 ....... Aaa AAA 1,220 1,265 Kansas, University Hospital Authority, Revenue, (Kansas University Health System Project) Series 1999A, (AMBAC Insured), 5.350% 09/01/12........ Aaa AAA 1,343 1,525 Kansas, University Hospital Authority, Revenue, (Kansas University Health System Project) Series 1999A, (AMBAC Insured), 5.400% 09/01/13 ....... Aaa AAA 1,614 2,000 Leavenworth County, Kansas, GO, Series 1997A, (AMBAC Insured), 4.900% 12/01/06 ....... Aaa AAA 2,110 1,000 Lenexa, Kansas, GO, Series 1991B, 6.200% 09/01/01............... Aa2 AA 1,013 575 Pottawatomie County, Kansas, Unified School District Number 320, GO Refunding, Series 1990, (AMBAC Insured), 6.500% 10/01/01............... Aaa AAA 584 950 Reno County, Kansas, Unified School District Number 308 Hutchinson, GO, Series 1995, (FSA Insured), 5.500% 09/01/07 .............. Aaa AAA 1,009 860 Reno County, Kansas, Unified School District Number 313, GO, Series 1996B, (FSA Insured), 5.900% 09/01/08........ Aaa AAA 960
SEE NOTES TO FINANCIAL STATEMENTS. 166 171 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $ 925 Reno County, Kansas, Unified School District Number 313, GO, Series 1996B, (FSA Insured), 5.900% 09/01/09........ Aaa AAA $ 1,038 995 Reno County, Kansas, Unified School District Number 313, GO, Series 1996B, (FSA Insured), 5.900% 09/01/10........ Aaa AAA 1,125 500 Salina, Kansas, Hospital Revenue Refunding, (Asbury-Salina Regional Medical Center Project) Series 1993, (AMBAC Insured), 5.100% 10/01/06 .............. Aaa AAA 515 1,010 Saline County, Kansas, Unified School District Number 305 Salina, GO Refunding, Series 1999, (FSA Insured), 5.250% 09/01/13............... Aaa NR 1,052 755 Sedgwick County, Kansas, GO Refunding, Series 1993B, 4.700% 08/01/05............... Aa1 AA+ 756 1,000 Sedgwick County, Kansas, Public Building Commission, Revenue, (Exploration Place Project) Series 1997A, 5.125% 08/01/22........ Aa1 AA 1,000 10 Sedgwick County, Kansas, Single-Family Mortgage, Revenue Refunding, Series 1994B-II, (GNMA COLL), 5.500% 11/01/04............... Aaa NR 10 1,000 Sedgwick County, Kansas, Unified School District Number 265 Goddard, GO, Series 1994, (FSA Insured), 5.350% 10/01/04 .............. Aaa AAA 1,058 1,000 Sedgwick County, Kansas, Unified School District Number 265 Goddard, GO, Series 1994, (FSA Insured), 5.400% 10/01/05 .............. Aaa AAA 1,062 1,250 Sedgwick County, Kansas, Unified School District Number 265 Goddard, GO, Series 1994, (FSA Insured), 5.500% 10/01/06 .............. Aaa AAA 1,331
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $1,245 Sedgwick County, Kansas, Unified School District Number 266 Maize, GO, Series 1994B, 6.500% 09/01/02............... Aaa AAA $ 1,300 785 Sedgwick County, Kansas, Unified School District Number 266 Maize, GO, Series 1994B, (FSA Insured), 5.700% 09/01/07 .............. Aaa AAA 827 845 Sedgwick County, Kansas, Unified School District Number 266 Maize, GO, Series 1994B, (FSA Insured), 5.800% 09/01/08 .............. Aaa AAA 892 500 Sedgwick County, Kansas, Unified School District Number 267, GO Refunding, Series 1995, (AMBAC Insured), 6.100% 11/01/08............... Aaa AAA 552 500 Shawnee County, Kansas, GO Refunding, Series 1992C, 5.500% 09/01/03............... Aa3 NR 514 500 Shawnee County, Kansas, Health Care Facilities Revenue Refunding, (Menninger Foundation Project) Series 1995, (FSA Insured), 5.000% 08/15/07 .............. Aaa AAA 520 500 Shawnee County, Kansas, Health Care Facilities Revenue Refunding, (Menninger Foundation Project) Series 1995, (FSA Insured), 5.100% 08/15/09 .............. Aaa AAA 518 530 Shawnee County, Kansas, Revenue, (Sisters Charity Leavenworth Project) Series 1994, 4.800% 12/01/05........ Aa3 AA 550 555 Shawnee County, Kansas, Revenue, (Sisters Charity Leavenworth Project) Series 1994, 4.900% 12/01/06........ Aa3 AA 575 895 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 949
SEE NOTES TO FINANCIAL STATEMENTS. 167 172 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- KANSAS -- (CONTINUED) $ 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 $ 1,010 500 Shawnee County, Kansas, Unified School District Number 437 Auburn - Washburn, GO Refunding, Series 1992, (FGIC Insured), 6.100% 09/01/02 .............. Aaa AAA 513 795 Shawnee County, Kansas, Unified School District Number 437 Auburn - Washburn, GO Refunding, Series 1992, (FGIC Insured), 6.400% 03/01/05 .............. Aaa AAA 817 1,050 Shawnee County, Kansas, Unified School District Number 501, GO, Series 1995, (FGIC Insured), Prerefunded 02/01/03 @ 100, 5.300% 02/01/04... Aaa AAA 1,086 500 Witchita, Kansas, Public Building Community, Revenue Refunding, (Witchita State University Project) Series 1992G-1, (AMBAC Insured), 5.200% 02/01/03............... Aaa AAA 507 -------- 95,438 -------- ALASKA -- 1.2% 2,000 North Slope Borough, Alaska, Capital Appreciation GO, Series 2000B, (MBIA Insured), 4.540%+ 06/30/09++..... Aaa AAA 1,381 -------- ILLINOIS -- 2.1% 3,675 Chicago, Illinois, Water Revenue, Capital Appreciation, Series 1997, (FGIC Insured), 4.610%+ 11/01/10....... Aaa AAA 2,374 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- OHIO -- 2.7% $1,000 Dayton, Ohio, Special Facilities Revenue Refunding, (Air Freight Corporation Project) Series 1993F, 6.050% 10/01/09............... NR BBB $ 1,006 2,000 Dayton, Ohio, Special Facilities Revenue, (Air Freight Corporation Project) Series 1988D, AMT, 6.200% 10/01/09........ NR BBB 2,024 -------- 3,030 -------- OKLAHOMA -- 1.8% 2,000 Oklahoma, Housing Development Authority, Revenue, Series 2000A, (FHLMC COLL), 5.100% 11/01/05............... Aa3 NR 2,070 -------- TEXAS -- 6.4% 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(a)............ NR NR 1,000 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............... Baa1 BBB- 2,071 3,000 Houston, Texas, Airport Systems Revenue, Sub Lien, Series 2000A, AMT, (FSA Insured), 5.625% 07/01/30........ Aaa AAA 3,066 1,000 Socorro, Texas, Independent School District, GO, Series 1998, (PSF-GTD), 5.250% 08/15/28............... Aaa AAA 996 -------- 7,133 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $107,036).............. 111,426 --------
SEE NOTES TO FINANCIAL STATEMENTS. 168 173 NATIONS FUNDS Nations Kansas Municipal Income Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
SHARES VALUE (000) (000) ----------------------------------------------------------- INVESTMENT COMPANIES -- 0.4% (Cost $494) 494 Nations Municipal Reserves#............ $ 494 -------- TOTAL INVESTMENTS (Cost $107,530*).............. 99.8% 111,920 -------- OTHER ASSETS AND LIABILITIES (NET)......................... 0.2% Interest receivable.................... $ 1,715 Investment advisory fee payable........ (20) Administration fee payable............. (19) Distributions payable.................. (408) Payable for investment securities purchased............................ (1,000) Accrued Trustees' fees and expenses.... (6) Accrued expenses and other liabilities.......................... (48) TOTAL OTHER ASSETS AND LIABILITIES (NET)................................ 214 -------- NET ASSETS...................... 100.0% $112,134 ======== NET ASSETS CONSIST OF: Undistributed net investment income.... $ 79 Accumulated net realized gain on investments sold..................... 81 Net unrealized appreciation of investments.......................... 4,390 Paid-in capital........................ 107,584 -------- NET ASSETS............................. $112,134 ========
VALUE ------------------------------------------------------------ PRIMARY A SHARES: Net asset value, offering and redemption price per share ($111,225,975 / 10,767,817 shares outstanding)......................... $10.33 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($646,310 / 62,593 shares outstanding)......................... $10.33 ====== Maximum sales charge................... 3.25% Maximum offering price per share....... $10.68 INVESTOR B SHARES: Net asset value and offering price per share** ($261,564 / 25,333 shares outstanding)......................... $10.32 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $4,390 on investment securities was comprised of gross appreciation of $4,409 and gross depreciation of $19 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $107,530. ** 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. ++ All or a portion of security segregated as collateral for "when issued" securities. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. (a) Security purchased on a "when issued" basis. Nations Kansas Municipal Income Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): AMBAC 16.99% FGIC 14.23% FSA 13.81% MBIA 11.18% Nations Kansas Municipal Income Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Hospital Revenue 18.79% Water Revenue 11.41% SEE NOTES TO FINANCIAL STATEMENTS. 169 174 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.6% MARYLAND -- 89.7% $1,000 Anne Arundel County, Maryland, Consolidated General Improvement GO, Series 1991B, 6.200% 04/15/03........ Aa1 AA+ $ 1,021 1,000 Anne Arundel County, Maryland, Consolidated General Improvement GO, Series 1993, 5.125% 07/15/08............... Aa2 AA+ 1,044 2,855 Anne Arundel County, Maryland, GO, Series 1995, 5.200% 04/01/08............... Aa1 AA+ 3,010 1,000 Baltimore County, Maryland, Consolidated Public Improvement GO, Series 1991, 6.100% 07/01/01............... Aaa AAA 1,008 1,375 Baltimore County, Maryland, Metropolitan District, Special Assignment GO Refunding, Series 1992, 5.750% 05/01/02........ Aaa AAA 1,414 1,000 Baltimore County, Maryland, Metropolitan District, Special Assignment GO Refunding, Series 1992, 5.800% 05/01/03........ Aaa AAA 1,045 1,720 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1991C, (FGIC Insured), 6.200% 10/15/02........ Aaa AAA 1,796 1,075 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1991C, (FGIC Insured), 6.375% 10/15/07........ Aaa AAA 1,230 1,000 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1993A, (AMBAC Insured), 5.300% 10/15/06........ Aaa AAA 1,039 1,740 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1997A, (FGIC Insured), 5.300% 10/15/16........ Aaa AAA 1,814 1,000 Baltimore, Maryland, Convention Center Revenue Refunding, Series 1998, (MBIA Insured), 5.000% 09/01/06............... Aaa AAA 1,062
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $1,725 Baltimore, Maryland, Exchanged Revenue, Series 1996A, (FGIC Insured), 5.900% 07/01/10 .............. Aaa AAA $ 1,955 1,000 Baltimore, Maryland, GO, Series 1989B, (MBIA Insured), 7.000% 10/15/04........ Aaa AAA 1,115 1,000 Baltimore, Maryland, GO, Series 1989B, (MBIA Insured), 7.050% 10/15/07 .............. Aaa AAA 1,182 1,750 Baltimore, Maryland, Port Facilities Revenue, (E.I. duPont de Nemours Project) Series 1985, 6.500% 12/01/10........ Aa3 AA- 1,857 1,000 Baltimore, Maryland, Revenue Refunding, (Wastewater Projects) Series 1993A, (MBIA Insured), 5.100% 07/01/04 .............. Aaa AAA 1,049 1,000 Baltimore, Maryland, Revenue Refunding, (Wastewater Projects) Series 1994A, (FGIC Insured), 5.00% 07/01/22............... Aaa AAA 1,003 1,000 Baltimore, Maryland, Revenue Refunding, (Wastewater Projects) Series 1994A, (FGIC Insured), 5.000% 07/01/24 .............. Aaa AAA 999 1,810 Charles County, Maryland, Consolidated Public Improvement GO Refunding, Series 1992, (AMBAC Insured), 5.900% 01/15/03............... Aaa AAA 1,880 750 Charles County, Maryland, Consolidated Public Improvement GO, Series 1991, Prerefunded 06/01/01 @ 102, 6.450% 06/01/04............... Aaa AA 769 2,135 Frederick County, Maryland, GO Refunding, Series 1993, 5.350% 07/01/05............... Aa2 AA 2,222 1,000 Frederick County, Maryland, GO, Series 1991B, 6.300% 07/01/06............... Aa2 AA 1,054
SEE NOTES TO FINANCIAL STATEMENTS. 170 175 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $2,000 Frederick, Maryland, Consolidated Public Improvement GO Refunding, Series 1992, (FGIC Insured), 5.750% 12/01/01............... Aaa AAA $ 2,035 2,240 Frederick, Maryland, Consolidated Public Improvement GO Refunding, Series 1992, (FGIC Insured), 6.000% 12/01/05............... Aaa AAA 2,367 1,455 Harford County, Maryland, Public Improvement GO, Series 1992, 5.300% 09/01/03............... Aa2 AA 1,521 1,545 Howard County, Maryland, Consolidated Public Improvement GO Refunding, Series 1993A, 5.000% 08/15/03............... Aaa AAA 1,603 20 Howard County, Maryland, Consolidated Public Improvement GO, Series 1993A, Prerefunded 08/15/05 @ 100, 5.250% 08/15/06............... Aaa AAA 21 1,500 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/16............... Aaa AAA 1,560 2,000 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/18............... Aaa AAA 2,061 1,000 Howard County, Maryland, Metropolitan District, GO Refunding, Series 1991B, 6.000% 08/15/03............... Aaa AAA 1,060 1,980 Howard County, Maryland, Public Improvement GO, Unrefunded Balance, Series 1993A, 5.250% 08/15/06............... Aaa AAA 2,086 1,530 Laurel, Maryland, Public Improvement GO Refunding, 1996A, (FGIC Insured), 5.000% 10/01/11 .............. Aaa AAA 1,597 1,200 Maryland State, Certificates of Participation Refunding, (State Highway and Motor Vehicle Administration Project) Series 1992, 5.700% 06/01/01........ Aa3 AA- 1,205
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $1,200 Maryland State, Certificates of Participation Refunding, (State Highway and Motor Vehicle Administration Project) Series 1992, 5.800% 06/01/02........ Aa3 AA- $ 1,226 1,410 Maryland State, Certificates of Participation Revenue, (Aviation Administration Facilities Project) Series 1999, AMT, 4.750% 05/01/07........ Aa3 AA 1,450 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 1,046 2,000 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Single-Family Program) Series 1998-1, AMT, 5.150% 04/01/18........ Aa2 NR 1,983 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 4,045 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 1,709 3,250 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999A, AMT, 5.350% 07/01/41........ Aa2 NR 3,166
SEE NOTES TO FINANCIAL STATEMENTS. 171 176 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $2,410 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999D, AMT, 5.375% 09/01/24........ Aa2 NR $ 2,394 2,000 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999H, AMT, 6.000% 09/01/17........ Aa2 NR 2,108 3,900 Maryland State, Community Development Administration, Development Revenue, (Lexington Terrace Senior Housing, LP Project) Series 1998B, AMT, 3.900% 10/01/02... Aaa NR 3,908 3,000 Maryland State, Community Development Administration, Development Revenue, (Lexington Terrace Townhomes, LP Project) Series 1998A, AMT, 3.900% 10/01/02........ Aaa NR 3,005 2,000 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.750% 06/01/29........ Baa3 NR 1,871 500 Maryland State, Economic Development Corporation, Student Housing Revenue, (Salisbury Collegiate Housing Project) Series 1999A, 6.000% 06/01/30............... Baa3 NR 482 950 Maryland State, Economic Development Corporation, Student Housing Revenue, Series 1999A, 5.600% 06/01/10............... Baa3 NR 959 1,000 Maryland State, Economic Development Corporation, Student Housing Revenue, Series 1999A, 5.700% 06/01/12............... Baa3 NR 1,006
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $ 815 Maryland State, Economic Development Corporation, Student Housing Revenue, Series 1999A, 6.000% 06/01/19............... Baa3 NR $ 804 1,000 Maryland State, GO, Series 1998, 5.000% 07/15/11............... Aaa AAA 1,058 2,700 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.250% 07/01/04........ Aa3 AA- 2,841 1,500 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.400% 07/01/06........ Aa3 AA- 1,579 3,050 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.500% 07/01/07........ Aa3 AA- 3,208 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 1,052 510 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 515 620 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Howard County General Hospital Project) Series 1993, 5.125% 07/01/03........ Aaa NR 633 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 1,058
SEE NOTES TO FINANCIAL STATEMENTS. 172 177 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $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 $ 1,046 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 2,230 1,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Johns Hopkins Medical Project) Series 1998, 5.000% 07/01/29............... Aaa AAA 978 2,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Johns Hopkins University Project) Series 1999, 6.000% 07/01/39............... Aa2 AA 2,183 1,500 Maryland State, State and Local Facilities Loan GO, Series 1995-2, 5.000% 10/15/04........ Aaa AAA 1,577 1,550 Maryland State, State and Local Facilities Loan GO, Series 1996-2, 5.250% 06/15/11........ Aaa AAA 1,655 1,970 Maryland State, State and Local Facilities Loan GO, Series 2000, 5.750% 08/01/11............... Aaa AAA 2,237 930 Maryland State, Transportation Authority, Revenue, (Transportation Facilities Project) Series 1978, 6.625% 07/01/03............... Aaa AAA 967 2,300 Maryland State, Transportation Authority, Transportation Revenue, Series 1991, 6.500% 07/01/04............... A1 A+ 2,363 4,000 Maryland State, Transportation Authority, Transportation Revenue, Series 1992, 5.700% 07/01/05............... A1 A+ 4,325 2,800 Maryland State, Transportation Authority, Transportation Revenue, Series 1992, 5.800% 07/01/06............... A1 A+ 3,074
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $2,000 Montgomery County, Maryland, Consolidated Public Improvement GO Refunding, Series 1992A, 5.600% 07/01/04............... Aaa AAA $ 2,131 1,000 Montgomery County, Maryland, Consolidated Public Improvement GO Refunding, Series 1992A, 5.750% 07/01/06............... Aaa AAA 1,097 500 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1991A, Prerefunded 04/01/01 @ 102, 6.700% 04/01/06... Aaa AAA 510 3,500 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1993A, 4.900% 10/01/07............... Aaa AAA 3,654 1,000 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1997A, 5.375% 05/01/08............... Aaa AAA 1,089 1,000 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1997A, 5.375% 01/01/13............... Aaa AAA 1,072 3,000 Montgomery County, Maryland, GO, Series 1991B, Prerefunded 10/01/01 @ 102, 6.100% 10/01/05............... Aaa AAA 3,104 1,000 Montgomery County, Maryland, GO, Series 1991B, Prerefunded 10/01/01 @ 102, 6.125% 10/01/07............... Aaa AAA 1,035 1,500 Montgomery County, Maryland, Housing Opportunities Commission, Multi-Family Mortgage Revenue, Series 2000A, 6.100% 07/01/30........ Aaa NR 1,581 850 Montgomery County, Maryland, Housing Opportunities Commission, Single-Family Mortgage Revenue, Series 1997A, 5.400% 07/01/08........ Aa2 NR 911
SEE NOTES TO FINANCIAL STATEMENTS. 173 178 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $1,500 Northeast Maryland, Solid Waste Disposal Authority Revenue, (Montgomery County Resource Recreation Project) Series 1993A, AMT, 6.000% 07/01/07... A2 NR $ 1,633 630 Ocean City, Maryland, GO Refunding, Series 1991, (MBIA Insured), Prerefunded 11/01/01 @ 102, 6.100% 11/01/04............... Aaa AAA 653 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO Refunding, Series 1991, 6.500% 07/01/02........ Aa3 AA 1,028 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO Refunding, Series 1992A, (MBIA Insured), 5.400% 03/01/02........ Aaa AAA 1,021 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1992, 5.600% 01/15/03............... Aa3 AA 1,037 1,800 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1992, 5.900% 01/15/06............... Aa3 AA 1,865 2,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1999, 5.000% 10/01/12............... Aaa AAA 2,116 2,300 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1999, (FSA Insured), 5.125% 10/01/16 .............. Aaa AAA 2,387 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.125% 10/01/08............... Aa3 AA 1,075 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.125% 10/01/10............... Aa3 AA 1,077
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $2,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.250% 10/01/18............... Aa3 AA $ 2,070 2,500 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.250% 10/01/19............... Aa3 AA 2,576 565 Prince Georges County, Maryland, Housing Authority, Single-Family Mortgage Revenue, Series 2000A, AMT, 6.150% 08/01/19... NR AAA 594 1,000 Prince Georges County, Maryland, PCR Refunding, (Potomac Electric Power Project) Series 1995, 5.750% 03/15/10............... A1 A 1,113 2,000 Prince Georges County, Maryland, Solid Waste Management Systems Authority, Revenue Refunding, Series 1993, (FSA Insured), 5.100% 06/15/05............... Aaa AAA 2,099 1,200 Queen Annes County, Maryland, School and Public Facilities GO, Series 2000, 5.250% 01/15/14............... Aaa AAA 1,280 1,000 Rockville, Maryland, GO Refunding, Series 1993, 4.750% 04/15/05........ Aa1 AA+ 1,023 1,000 St. Mary's County, Maryland, GO, Series 1995, (MBIA Insured), 5.700% 03/01/08 ....... Aaa AAA 1,081 2,000 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue Refunding, Series 1993C, 4.900% 10/01/08............... Aa3 AA+ 2,062 745 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1992A, 6.000% 02/01/04........ Aa3 AA+ 762 1,020 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/13........ Aa3 AA+ 1,087
SEE NOTES TO FINANCIAL STATEMENTS. 174 179 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $3,115 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/14........ Aa3 AA+ $ 3,309 1,975 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 2000A, 5.000% 10/01/08........ Aa3 AA+ 2,106 1,575 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 2000A, 5.250% 10/01/11........ Aa3 AA+ 1,699 1,000 Washington County, Maryland, Consolidated Public Improvement GO Refunding, Series 1993, (FGIC Insured), 5.250% 01/01/06............... Aaa AAA 1,044 1,000 Washington County, Maryland, Sanitation District, GO Refunding, Series 1993F, (FGIC Insured), 5.250% 01/01/06 .............. Aaa AAA 1,044 1,260 Washington Suburban Sanitation District Authority, Maryland, General Construction GO, Series 1991-1, Prerefunded 06/01/01 @ 102, 6.750% 06/01/05... Aaa AAA 1,293 1,000 Washington Suburban Sanitation District Authority, Maryland, General Construction GO, Series 2000, 5.250% 06/01/22............... Aaa AAA 1,023 3,440 Washington Suburban Sanitation District Authority, Maryland, Water Supply GO Refunding, Series 1993, 5.100% 12/01/07........ Aaa AAA 3,613 2,010 Washington Suburban Sanitation District Authority, Maryland, Water Supply GO, Series 1992, Prerefunded 06/01/02 @ 102, 5.800% 06/01/03............... Aaa AAA 2,109 1,000 Washington Suburban Sanitation District Authority, Maryland, Water Supply GO, Series 1993, 5.000% 06/01/03............... Aaa AAA 1,034
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $1,355 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 4.900% 12/01/11 ....... Aaa AAA $ 1,415 1,425 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 5.000% 12/01/12 ....... Aaa AAA 1,488 -------- 180,425 -------- ALABAMA -- 1.5% 3,000 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1992, AMT, 7.000% 06/01/22........ Baa1 BBB+ 3,101 -------- COLORADO -- 0.8% 3,800 Colorado, E-470 Public Highway Authority, Revenue, Capital Appreciation, Series 1997B, (MBIA Insured), 5.270%+ 09/01/18....... Aaa AAA 1,536 -------- 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 2,094 -------- MICHIGAN -- 1.0% 2,000 Southfield, Michigan, Library Building Authority, GO, Series 2000, (MBIA Insured), 5.500% 05/01/24 ....... Aaa AAA 2,058 -------- MISSISSIPPI -- 2.1% 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 1,036
SEE NOTES TO FINANCIAL STATEMENTS. 175 180 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
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 $ 3,159 -------- 4,195 -------- OKLAHOMA -- 1.0% 2,000 Tulsa, Oklahoma Municipal Airport Transportation Revenue Refunding, Series 2000B, AMT, Mandatory Put 12/01/08 @ 100, 6.000% 06/01/35............... Baa1 BBB- 2,021 -------- TEXAS -- 1.0% 2,000 Texas State, Water Development Board, Revenue, Series 1997, 5.000% 07/15/12........ Aaa AAA 2,063 -------- VIRGINIA -- 1.5% 3,000 Virginia State, Transportation Board Authority, Transportation Contract Revenue, (Northern Virginia Transportation District Project) Series 1996A, 5.125% 05/15/21............... Aa1 AA 3,003 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $191,620)........ 200,496 --------
SHARES VALUE (000) (000) ----------------------------------------------------------- INVESTMENT COMPANIES -- 0.6% (Cost $1,148) 1,148 Nations Municipal Reserves#............ $ 1,148 -------- TOTAL INVESTMENTS (Cost $192,768*).............. 100.2% 201,644 -------- OTHER ASSETS AND LIABILITIES (NET)......................... (0.2)% Cash................................... $ 1 Interest receivable.................... 3,493 Payable for Fund shares redeemed....... (3,056) Investment advisory fee payable........ (44) Administration fee payable............. (35) Shareholder servicing and distribution fees payable......................... (8) Distributions payable.................. (722) Accrued Trustees' fees and expenses.... (30) Accrued expenses and other liabilities.......................... (40) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................ (441) -------- NET ASSETS...................... 100.0% $201,203 ======== NET ASSETS CONSIST OF: Undistributed net investment income.... $ 48 Accumulated net realized loss on investments sold..................... (1,388) Net unrealized appreciation of investments.......................... 8,876 Paid-in capital........................ 193,667 -------- NET ASSETS............................. $201,203 ========
SEE NOTES TO FINANCIAL STATEMENTS. 176 181 NATIONS FUNDS Nations Maryland Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------ PRIMARY A SHARES: Net asset value, offering and redemption price per share ($178,304,430 / 16,197,525 shares outstanding)......................... $11.01 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($17,478,525 / 1,587,873 shares outstanding).................. $11.01 ====== Maximum sales charge................... 3.25% Maximum offering price per share....... $11.38 INVESTOR B SHARES: Net asset value and offering price per share** ($5,119,759 / 465,115 shares outstanding)......................... $11.01 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($300,647 / 27,311 shares outstanding)......................... $11.01 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $8,876 on investment securities was comprised of gross appreciation of $8,955 and gross depreciation of $79 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $192,768. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Maryland Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Housing Revenue 15.69% SEE NOTES TO FINANCIAL STATEMENTS. 177 182 NATIONS FUNDS Nations Maryland Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 95.7% MARYLAND -- 81.0% $ 500 Anne Arundel County, Maryland, Consolidated General Improvement GO Refunding, Series 1995, 5.300% 04/01/10......... Aa1 AA+ $ 526 500 Anne Arundel County, Maryland, Consolidated General Improvement GO, Series 1993, 5.250% 07/15/11................ Aa2 AA+ 521 1,000 Baltimore, Maryland, Consolidated Public Improvement GO, Series 1998B, (FGIC Insured), 6.500% 10/15/08......... Aaa AAA 1,044 800 Calvert County, Maryland, PCR Refunding, (Baltimore Gas and Electric Company Project) Series 1993, 5.550% 07/15/14......... A2 A 832 250 Cumberland, Maryland, GO Refunding, Series 1994A, (FGIC Insured), 5.250% 05/01/21................ Aaa AAA 253 1,000 Harford County, Maryland, GO, Series 1997, 5.500% 12/01/07................ Aa2 AA 1,098 1,900 Howard County, Maryland, Consolidated Public Improvement GO, Series 2000A, 5.250% 02/15/17......... Aaa AAA 1,966 500 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Residential Project) Series 1998B, AMT, 4.950% 09/01/11......... Aa2 NR 512 810 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, (Residential Project) Series 2000A, 5.500% 09/01/12................ Aa2 NR 858 1,000 Maryland State, Community Development Administration, Department of Housing and Community Development, Revenue, Series 1999H, AMT, 6.000% 09/01/17......... Aa2 NR 1,054
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $ 495 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.300% 06/01/08......... Baa3 NR $ 496 575 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.600% 06/01/11......... Baa3 NR 578 2,000 Maryland State, Economic Development Corporation, Student Housing Revenue, (Collegiate Housing Project) Series 1999A, 5.750% 06/01/29......... Baa3 NR 1,871 1,000 Maryland State, Economic Development Corporation, Student Housing Revenue, (Salisbury Collegiate Housing Project) Series 1999A, 6.000% 06/01/30................ Baa3 NR 964 300 Maryland State, Health and Higher Education Facilities Authority, Revenue Refunding, (Johns Hopkins Hospital Project) Series 1993, 5.600% 07/01/09......... Aa3 AA- 315 2,000 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Johns Hopkins University Project) Series 1999, 6.000% 07/01/39......... Aa2 AA 2,182 330 Maryland State, Health and Higher Education Facilities Authority, Revenue, (Loyola College Project) Series 1999, 5.000% 10/01/39......... A2 A 319 425 Maryland State, Industrial Development Finance Authority, Revenue, (American Center for Physics Project) Series 1992, (GTY-AGMT), 6.375% 01/01/12................ NR A 436 500 Maryland State, Stadium Authority, Lease Revenue, (Ocean City Convention Center Project) Series 1995, 5.375% 12/15/13......... Aa2 AA 523
SEE NOTES TO FINANCIAL STATEMENTS. 178 183 NATIONS FUNDS Nations Maryland Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $1,000 Maryland State, State and Local Facilities Loan GO, Series 1999-2, 5.000% 07/15/07......... Aaa AAA $ 1,066 1,000 Maryland State, State and Local Facilities Loan GO, Series 2000, 5.750% 08/01/11................ Aaa AAA 1,135 760 Maryland State, Transportation Authority, Revenue, (Transportation Facilities Project) Series 1978, 6.800% 07/01/16................ Aaa AAA 905 300 Maryland State, Transportation Authority, Revenue, (Transportation Facilities Project) Series 1992, 5.750% 07/01/15................ A1 A+ 307 1,500 Montgomery County, Maryland, Consolidated Public Improvement GO, Series 1992A, 5.800% 07/01/07................ Aaa AAA 1,665 935 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 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 1999, (FSA Insured), 5.125% 10/01/16................ Aaa AAA 1,038 1,000 Prince Georges County, Maryland, Consolidated Public Improvement GO, Series 2000, 5.250% 10/01/18................ Aa3 AA 1,035 500 Prince Georges County, Maryland, PCR Refunding, (Potomac Electric Power Project) Series 1995, 5.750% 03/15/10......... A1 A 557 500 Prince Georges County, Maryland, Solid Waste Management Systems Authority, Revenue Refunding, Series 1993, (FSA Insured), 5.200% 06/15/06................ Aaa AAA 524
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MARYLAND -- (CONTINUED) $ 500 Prince Georges County, Maryland, Stormwater Management, GO, Series 1993, 5.500% 03/15/13......... Aa3 AA $ 519 2,500 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1996A, 5.600% 04/01/13......... Aa3 AA+ 2,666 1,000 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 1997A, 5.125% 04/01/13......... Aa3 AA+ 1,044 1,000 University of Maryland, Systems Auxiliary Facilities and Tuition Revenue, Series 2000A, 5.250% 10/01/11......... Aa3 AA+ 1,079 1,290 Wicomico County, Maryland, Public Improvement GO, Series 1997, (MBIA Insured), 4.800% 12/01/10......... Aaa AAA 1,347 ------- 32,210 ------- DISTRICT OF COLUMBIA -- 1.0% 350 Washington, District of Columbia, Metropolitan Area Transportation Authority, Revenue Refunding, Series 1993, (FGIC Insured), 6.000% 07/01/10................ Aaa AAA 395 ------- GUAM -- 1.5% 600 Guam, Government GO, Series 1993A, 5.200% 11/15/08................ NR BBB- 614 ------- MISSISSIPPI -- 1.3% 500 Warren County, Mississippi, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, AMT, 6.700% 08/01/18................ Baa1 BBB+ 525 -------
SEE NOTES TO FINANCIAL STATEMENTS. 179 184 NATIONS FUNDS Nations Maryland Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- PUERTO RICO -- 2.3% $ 500 Puerto Rico, Electric Power Authority, Power Revenue Refunding, Series 1995Y, (MBIA Insured), 6.500% 07/01/06................ Aaa AAA $ 568 320 Puerto Rico, Housing Bank and Finance Agency, Single-Family Mortgage Revenue, (Affordable Housing Mortgage- Portfolio I) Series 1995, AMT, (GNMA/FNMA/ FHLMC COLL), 6.100% 10/01/15......... Aaa AAA 338 ------- 906 ------- TENNESSEE -- 3.7% 1,355 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation-Saturn Corporation Project) Series 1994, 6.500% 09/01/24................ A2 A 1,447 ------- TEXAS -- 2.4% 1,000 Houston, Texas, Independent School District, GO Refunding, Series 1999A, (PSF-GTD), 5.000% 02/15/24......... Aaa AAA 967 ------- WASHINGTON -- 2.5% 1,000 Washington State, Motor Vehicle Fuel Tax, GO, Series 1997D, (FGIC Insured), 5.375% 01/01/22......... Aaa AAA 1,013 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $35,830).......................... 38,077 -------
SHARES VALUE (000) (000) ------------------------------------------------------------- INVESTMENT COMPANIES -- 2.4% (Cost $962) 962 Nations Municipal Reserves#............ $ 962 ------- TOTAL INVESTMENTS (Cost $36,792*)............... 98.1% 39,039 ------- OTHER ASSETS AND LIABILITIES (NET)......................... 1.9% Receivable for Fund shares sold........ $ 354 Interest receivable.................... 596 Payable for Fund shares redeemed....... (12) Investment advisory fee payable........ (13) Administration fee payable............. (7) Shareholder servicing and distribution fees payable......................... (15) Distributions payable.................. (91) Accrued Trustees' fees and expenses.... (26) Accrued expenses and other liabilities.......................... (13) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................ 773 ------- NET ASSETS...................... 100.0% $39,812 ======= NET ASSETS CONSIST OF: Undistributed net investment income.... $ 52 Accumulated net realized loss on investments sold..................... (763) Net unrealized appreciation of investments.......................... 2,247 Paid-in capital........................ 38,276 ------- NET ASSETS............................. $39,812 =======
SEE NOTES TO FINANCIAL STATEMENTS. 180 185 NATIONS FUNDS Nations Maryland Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($20,028,789 / 1,987,461 shares outstanding)......................... $10.08 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($2,678,815 / 265,852 shares outstanding).................. $10.08 ====== Maximum sales charge................... 4.75% Maximum offering price per share....... $10.58 INVESTOR B SHARES: Net asset value and offering price per share** ($16,829,999 / 1,670,018 shares outstanding).................. $10.08 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($274,448 / 27,244 shares outstanding)......................... $10.07 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $2,247 on investment securities was comprised of gross appreciation of $2,247 and gross depreciation of $0 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $36,792. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Maryland Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Education Revenue 22.10% Housing Revenue 14.06% SEE NOTES TO FINANCIAL STATEMENTS. 181 186 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.2% NORTH CAROLINA -- 96.9% $1,000 Brunswick County, North Carolina, Certificates of Participation, Series 2000, 5.500% 06/01/20........ Aaa AAA $ 1,040 1,000 Buncombe County, North Carolina, GO Refunding, Series 1993, 5.000% 03/01/03........ Aa2 AA 1,030 1,250 Buncombe County, North Carolina, Metropolitan Sewer District, Sewer System Revenue Refunding, Series 1991A, Prerefunded 07/01/01 @ 102, 6.750% 07/01/09........ Aaa NR 1,286 5 Buncombe County, North Carolina, Metropolitan Sewer District, Sewer System Revenue, Unrefunded Balance, Series 1992B, 6.750% 07/01/16........ A1 NR 5 2,000 Cabarrus County, North Carolina, Certificates of Participation, Installment Financing Contract, Series 2001, 5.500% 04/01/13........ Aa3 A+ 2,168 1,200 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 4.750% 07/01/05........ Aaa AAA 1,236 1,275 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 4.850% 07/01/06........ Aaa AAA 1,320 1,260 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 5.000% 07/01/07........ Aaa AAA 1,315 1,000 Charlotte, North Carolina, Airport Revenue, Series 1999B, AMT, (MBIA Insured), 6.000% 07/01/24........ Aaa AAA 1,066 1,000 Charlotte, North Carolina, GO Refunding, Series 1993, 4.500% 02/01/03........ Aaa AAA 1,020
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,240 Charlotte, North Carolina, Health Care Systems Revenue, Unrefunded Balance, (Mecklenburg Hospital Authority Project) Series 1992, 6.375% 01/01/09........ Aa3 AA $ 1,289 425 Charlotte, North Carolina, Health Care Systems Revenue, Unrefunded Balance, (Mecklenburg Hospital Authority Project) Series 1992, 6.250% 01/01/20........ Aa3 AA 437 1,000 Charlotte, North Carolina, Water and Sewer GO, Series 1994, Prerefunded 02/01/04 @ 102, 5.800% 02/01/16........ Aaa AAA 1,079 1,670 Charlotte, North Carolina, Water and Sewer GO, Series 1996, 5.500% 05/01/06........ Aaa AAA 1,805 1,855 Charlotte, North Carolina, Water and Sewer GO, Series 1998, 4.750% 02/01/12........ Aaa AAA 1,914 2,545 Charlotte, North Carolina, Water and Sewer Systems Revenue, Series 1999, 5.375% 06/01/19........ Aa1 AA+ 2,628 2,000 Charlotte-Mecklenburg Hospital Authority, Revenue, (Carolinas Healthcare System Project) Series 1997A, 5.000% 01/15/17........ Aa3 AA 1,968 4,500 Charlotte-Mecklenburg Hospital Authority, Revenue, (Carolinas Healthcare System Project) Series 1997A, 5.125% 01/15/22........ Aa3 AA 4,400 760 Charlotte-Mecklenburg Hospital Authority, Revenue, Series 1992, Prerefunded 01/01/02 @ 102, 6.375% 01/01/09........ Aa3 AA 793 705 Charlotte-Mecklenburg Hospital Authority, Revenue, Series 1992, Prerefunded 01/01/02 @ 102, 6.250% 01/01/20........ Aa3 AA 735
SEE NOTES TO FINANCIAL STATEMENTS. 182 187 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $2,500 Cleveland County, North Carolina, GO Refunding, Series 1993, (FGIC Insured), 5.100% 06/01/01........ Aaa AAA $ 2,508 2,500 Cleveland County, North Carolina, GO Refunding, Series 1993, (FGIC Insured), 5.100% 06/01/02........ Aaa AAA 2,554 1,000 Cleveland County, North Carolina, GO Refunding, Series 1993, (FGIC Insured), 5.100% 06/01/05........ Aaa AAA 1,039 2,000 Coastal Regional Solid Waste Management Authority, North Carolina, Solid Waste Disposal System Revenue, Series 1992, 6.300% 06/01/04........ A3 BBB+ 2,108 500 Concord, North Carolina, GO Refunding, Series 1992, 6.200% 06/01/05........ Aa2 AA- 524 1,000 Concord, North Carolina, Utilities System Revenue, Series 1993, (MBIA Insured), 5.200% 12/01/02........ Aaa AAA 1,031 1,720 Durham and Wake County, North Carolina, Special Apartment District, GO Refunding, Series 1992, 5.750% 04/01/03........ Aaa AAA 1,768 2,300 Durham and Wake County, North Carolina, Special Apartment District, GO Refunding, Series 1993, 5.000% 04/01/03........ Aaa AAA 2,372 1,500 Durham County, North Carolina, GO Refunding, Series 1992, 5.200% 03/01/07........ Aaa AAA 1,547 2,000 Durham County, North Carolina, GO, Series 1992, 5.750% 02/01/06............... Aaa AAA 2,082 1,150 Fayetteville, North Carolina, Public Works Commission, Revenue Refunding, Series 1997, (FSA Insured), 5.250% 03/01/07........ Aaa AAA 1,229 2,000 Forsyth County, North Carolina, GO Refunding, Series 1993A, 4.750% 03/01/06........ Aaa AAA 2,073
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........ A1 AA- $ 1,001 2,000 Greenville, North Carolina, Combined Enterprise Systems Revenue, Series 1994, 6.000% 09/01/10........ A2 A+ 2,170 3,000 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........ Baa1 NR 3,095 1,000 Haywood County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1993, AMT, 5.500% 10/01/18........ Baa1 BBB+ 956 1,000 Henderson County, North Carolina, School and Community College GO, Series 1991, 6.500% 06/01/05........ Aa3 A+ 1,025 500 Henderson County, North Carolina, School and Community College GO, Series 1991, 6.500% 06/01/08........ Aa3 A+ 513 1,095 Iredell County, North Carolina, GO, Series 1997, 4.750% 02/01/16............... Aa3 A+ 1,085 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 2,136 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 2,205
SEE NOTES TO FINANCIAL STATEMENTS. 183 188 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,305 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/12........ Aaa AAA $ 1,427 2,700 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/16........ Aaa AAA 2,889 1,160 Lee County, North Carolina, GO, Series 1992, 6.000% 02/01/06........ A1 A+ 1,203 575 Lower Cape Fear, North Carolina, Water and Sewer Authority, Revenue, Series 1993, AMT, 5.200% 03/01/04........ A2 BBB 594 1,000 Mecklenburg County, North Carolina, GO, Series 1991, Prerefunded 04/01/01 @ 102, 6.200% 04/01/06........ Aaa AAA 1,020 1,000 Mecklenburg County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Fluor Corporation Project) Series 1993, 5.250% 12/01/09........ NR A 1,023 1,195 Morganton, North Carolina, Water and Sewer GO, Series 1995, (FGIC Insured), 5.700% 06/01/11........ Aaa AAA 1,282 2,220 New Hanover County, North Carolina, GO, Series 1995, 5.500% 03/01/10............... Aa2 AA- 2,361 1,725 New Hanover County, North Carolina, GO, Series 2000, 5.300% 11/01/02............... Aa2 AA- 1,778 4,000 North Carolina State, GO, Series 1997A, 5.100% 03/01/06........ Aaa AAA 4,239 2,550 North Carolina State, GO, Series 1999, 4.500% 04/01/02........ Aaa AAA 2,586 5,000 North Carolina State, GO, Series 2001A, 4.750% 03/01/14........ Aaa AAA 5,063 2,165 North Carolina, Eastern Municipal Power Authority, Revenue, Series 1986A, 5.000% 01/01/17........ Aaa BBB 2,206
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,000 North Carolina, Educational Facilities Finance Agency, Revenue, (Duke University Project) Series 1991C, 6.625% 10/01/08........ Aa1 AA+ $ 1,036 1,750 North Carolina, Housing Finance Agency, (Home Ownership Project) Series 2000A-8, AMT, 5.950% 07/01/10........ Aa2 AA 1,907 1,210 North Carolina, Housing Finance Agency, (Home Ownership Project) Series 2000A-8, AMT, 6.050% 07/01/12........ Aa2 AA 1,308 1,950 North Carolina, Housing Finance Agency, Multi- Family Housing Revenue Refunding, Series 1992B, (FHA COLL), 6.900% 07/01/24........ Aa2 NR 2,026 990 North Carolina, Housing Finance Agency, Revenue, (Home Ownership Project) Series 1999A-6, AMT, 6.000% 01/01/16........ Aa2 AA 1,045 1,500 North Carolina, Housing Finance Agency, Revenue, Series 1999A-3, AMT, 5.150% 01/01/19........ Aa2 AA 1,473 4,020 North Carolina, Housing Finance Agency, Single- Family Housing Revenue, (Home Ownership Project) Series 1998A-1, AMT, 5.350% 01/01/17........ Aa2 AA 4,087 600 North Carolina, Housing Finance Agency, Single- Family Housing Revenue, Series 1991R, (FHA COLL), 6.350% 03/01/03........ Aa2 AA 614 605 North Carolina, Housing Finance Agency, Single- Family Housing Revenue, Series 1991R, (FHA COLL), 6.350% 09/01/03........ Aa2 AA 622 835 North Carolina, Housing Finance Agency, Single- Family Housing Revenue, Series 1994Y, 6.300% 09/01/15........ Aa AA 865
SEE NOTES TO FINANCIAL STATEMENTS. 184 189 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $2,500 North Carolina, Housing Finance Agency, Student Housing Revenue, (Appalachian Student Housing Project) Series 2000A, (First Union National Bank LOC), Mandatory Put 07/01/03 @ 100, 4.750% 07/01/31........ Aa3 NR $ 2,546 2,985 North Carolina, Housing Financing Agency, Series 1999A-5, AMT, 5.550% 01/01/19........ Aa2 AA 3,032 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 2,746 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- 2,092 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- 3,070 2,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp Inc. Project) Series 1996, 5.100% 05/01/07........ A1 AA- 2,095 1,715 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Carolina Medicorp Project) Series 1996, 5.125% 05/01/08........ A1 AA- 1,787
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, (Duke University Hospital Project) Series 1996C, 5.250% 06/01/17........ Aa3 AA $ 2,008 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 2,092 1,795 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.600% 08/15/07........ Baa1 NR 1,706 1,500 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Moore Regal Hospital Project) Series 1993, 5.200% 10/01/13........ Aa3 AA- 1,521 1,930 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Rex Hospital, Inc. Project) Series 1993, 5.400% 06/01/02........ A1 A+ 1,972 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+ 1,724 3,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Rex Hospital, Inc. Project) Series 1993, Prerefunded 06/01/03 @ 102, 6.250% 06/01/17........ Aaa A+ 3,233 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 1,066
SEE NOTES TO FINANCIAL STATEMENTS. 185 190 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $2,000 North Carolina, Municipal Power Agency Number 1, Revenue, Series 1992, (MBIA-IBC Insured), 7.250% 01/01/07........ Aaa AAA $ 2,326 1,000 North Carolina, State Education Assistance Authority, Revenue, Series 1995A, AMT, (GTD STD LNS), 5.300% 07/01/03........ A NR 1,028 1,625 Orange County, North Carolina, GO, Series 1994, 5.500% 02/01/12............... Aa1 AA+ 1,706 4,645 Orange County, North Carolina, GO, Series 2000, 5.300% 04/01/18............... Aa1 AA+ 4,846 1,390 Pitt County, North Carolina, Certificates of Participation, (School Facilities Project) Series 2000B, 5.750% 04/01/16........ Aaa AAA 1,507 1,240 Pitt County, North Carolina, Revenue Refunding, (Pitt County Memorial Hospital Project) Series 1995, 5.375% 12/01/10........ Aaa NR 1,321 2,800 Pitt County, North Carolina, Revenue, (Pitt County Memorial Hospital Project) Series 1991B, (MBIA Insured), Prerefunded 12/01/01 @ 102, 6.750% 12/01/14........ Aaa AAA 2,921 1,000 Raleigh, North Carolina, Combined Enterprise System Revenue, Series 1996, 5.250% 03/01/07........ Aa1 AAA 1,070 1,910 Raleigh, North Carolina, GO, Series 1996, 5.300% 06/01/16........ Aaa AAA 1,991 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.200% 06/01/12........ Aaa AAA 1,057 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.300% 06/01/13........ Aaa AAA 1,056 1,595 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.500% 06/01/14........ Aaa AAA 1,708
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $2,000 Randolph County, North Carolina, GO, Series 1992, Prerefunded 05/01/02 @ 102, 6.250% 05/01/08........ Aa3 AA- $ 2,105 1,000 Robeson County, North Carolina, Industrial Facilities, PCR Refunding, (Campbell Soup Company Project) Series 1991, 6.400% 12/01/06........ NR A 1,122 750 Rutherford County, North Carolina, GO, Series 1991, (MBIA Insured), 6.400% 06/01/01........ Aaa AAA 754 1,050 Stanly County, North Carolina, GO, Series 2001, (AMBAC Insured), 4.800% 02/01/19........ Aaa AAA 1,028 1,000 Union County, North Carolina, School District, GO, Series 1991, Prerefunded 04/01/01 @ 101, 6.500% 04/01/03........ Aa3 AA- 1,010 500 Union County, North Carolina, School District, GO, Series 1992, 5.800% 03/01/05........ Aa3 AA- 519 1,690 University of North Carolina, Chapel Hill, Hospital Revenue Refunding, Series 1999, (AMBAC Insured), 5.250% 02/15/12........ Aaa AAA 1,789 1,000 University of North Carolina, Chapel Hill, University Revenue Refunding, Series 1992, 5.500% 02/15/02........ A1 AA 1,020 1,000 University of North Carolina, Charlotte, Revenue Refunding, (Housing and Dining Systems Project) Series 1993M, (MBIA Insured), 4.800% 01/01/04........ Aaa AAA 1,032 3,500 University of North Carolina, University Utilities Systems Revenue Refunding, Series 1993, 5.200% 08/01/06........ Aa1 AA 3,632 1,000 University of North Carolina, University Utilities Systems Revenue Refunding, Series 1993, 5.000% 08/01/09........ Aa1 AA 1,027
SEE NOTES TO FINANCIAL STATEMENTS. 186 191 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,600 University of North Carolina, University Utilities Systems Revenue Refunding, Series 1993, 5.000% 08/01/11........ Aa1 AA $ 1,635 1,000 Wake County, North Carolina, GO Refunding, Series 1993, 4.700% 04/01/05........ Aaa AAA 1,030 2,000 Wake County, North Carolina, GO, Series 2001B, 4.500% 02/01/14........ Aaa AAA 1,977 2,065 Wake County, North Carolina, Hospital Revenue, Series 1993, (MBIA Insured), 5.125% 10/01/26........ Aaa AAA 2,077 1,000 Wake County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Carolina Power and Light Project) Series 1994A, 3.500% 05/01/24........ Aaa AAA 1,000 1,000 Wake County, North Carolina, Public Improvement GO, Series 1994, 4.600% 02/01/06........ Aaa AAA 1,032 1,200 Wayne County, North Carolina, GO Refunding, Series 1993, (MBIA Insured), 4.900% 04/01/05........ Aaa AAA 1,254 1,000 Wilmington, North Carolina, Public Improvement GO, Series 1997A, (FGIC Insured), 5.000% 04/01/11........ Aaa AAA 1,053
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,000 Wilmington, North Carolina, Public Improvement GO, Series 1997A, (FGIC Insured), 5.000% 04/01/13........ Aaa AAA $ 1,039 -------- 189,621 -------- NEW JERSEY -- 1.1% 2,040 New Jersey, Financing Authority, Health Care Facilities Revenue, (Riverwood Center Inc. Project) Series 1991A, (FSA Insured), Prerefunded 07/01/01 @ 102, 9.900% 07/01/21........ Aaa AAA 2,115 -------- PUERTO RICO -- 0.6% 1,000 Puerto Rico, Electric Power Authority, Power Revenue Refunding, Series 1995Y, (MBIA Insured), 7.000% 07/01/07........ Aaa AAA 1,178 -------- WASHINGTON -- 0.6% 1,150 Washington State, Public Power Supply Systems, Revenue Refunding, Series 1993A, (MBIA-IBC Insured), 5.800% 07/01/07........ Aaa AAA 1,260 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost 184,868)......... 194,174 --------
SHARES ------ INVESTMENT COMPANIES -- 0.2% (Cost $378) 378 Nations Municipal Reserves#.......... 378 --------
SEE NOTES TO FINANCIAL STATEMENTS. 187 192 NATIONS FUNDS Nations North Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE (000) ------------------------------------------------------------ TOTAL INVESTMENTS (Cost $185,246*)............ 99.4% $194,552 -------- OTHER ASSETS AND LIABILITIES (NET)....................... 0.6% Cash................................. $ 1 Receivable for Fund shares sold...... 271 Interest receivable.................. 2,912 Payable for Fund shares redeemed..... (1,082) Investment advisory fee payable...... (44) Administration fee payable........... (34) Shareholder servicing and distribution fees payable.......... (7) Distributions payable................ (709) Accrued Trustees' fees and expenses........................... (27) Accrued expenses and other liabilities........................ (35) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. 1,246 -------- NET ASSETS.................... 100.0% $195,798 ======== NET ASSETS CONSIST OF: Undistributed net investment income............................. $ 323 Accumulated net realized loss on investments sold................... (1,877) Net unrealized appreciation of investments........................ 9,306 Paid-in capital...................... 188,046 -------- NET ASSETS........................... $195,798 ======== PRIMARY A SHARES: Net asset value, offering and redemption price per share ($180,125,971 / 17,019,646 shares outstanding)....................... $10.58 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($10,331,733 / 976,176 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** ($5,261,229 / 497,135 shares outstanding)................ $10.58 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($79,234 / 7,486 shares outstanding)....................... $10.58 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $9,306 on investment securities was comprised of gross appreciation of $9,418 and gross depreciation of $112 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $185,246. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations North Carolina Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 10.99% Nations North Carolina Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Hospital Revenue 17.57% SEE NOTES TO FINANCIAL STATEMENTS. 188 193 NATIONS FUNDS Nations North Carolina Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 97.7% NORTH CAROLINA -- 97.7% $1,600 Charlotte, North Carolina, GO, Series 2000, 5.500% 06/01/12................ Aaa AAA $ 1,759 525 Charlotte, North Carolina, Health Care Systems Revenue, Unrefunded Balance, (Mecklenburg Hospital Authority Project) Series 1992, 6.250% 01/01/20......... Aa3 AA 540 975 Charlotte-Mecklenburg Hospital Authority, Revenue, Series 1992, Prerefunded 01/01/02 @ 102, 6.250% 01/01/20......... Aa3 AA 1,016 1,000 Craven County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, PCR Refunding, (Weyerhaeuser Company Project) Series 1992, 6.350% 01/01/10......... NR A 1,038 1,000 Cumberland County, North Carolina, GO, Series 1998, (FGIC Insured), 5.000% 03/01/17......... Aaa AAA 1,012 1,305 Greensboro, North Carolina, Enterprise Systems Revenue, Series 1998A, 5.500% 06/01/08......... A1 AA- 1,422 1,000 Greensboro, North Carolina, Public Improvement GO, Series 1998, 4.700% 04/01/10......... Aa1 AAA 1,040 1,000 Greenville, North Carolina, Utilities Commission Revenue, Series 2000A, (MBIA Insured), 5.500% 09/01/19......... Aaa AAA 1,042 1,000 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......... Baa1 NR 1,032
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,000 Haywood County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1993, AMT, 5.500% 10/01/18......... Baa1 BBB+ $ 956 1,925 Johnston County, North Carolina, GO, Series 2000, (FGIC Insured), 5.500% 03/01/15......... Aaa AAA 2,075 2,000 Martin County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Weyerhaeuser Company Project) Series 1993, AMT, 5.650% 12/01/23......... A3 A 1,902 1,000 Mecklenburg County, North Carolina, GO Refunding, Series 1993, 6.000% 04/01/11......... Aaa AAA 1,141 2,000 Mecklenburg County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding, (Fluor Corporation Project) Series 1993, 5.250% 12/01/09......... NR A 2,046 1,000 Monroe, North Carolina, Combined Enterprise Systems, Revenue, Series 1994, Prerefunded 03/01/04 @ 102, 6.000% 03/01/14......... A3 A 1,085 1,000 Morganton, North Carolina, Water and Sewer GO, Series 1995, (FGIC Insured), 5.600% 06/01/10......... Aaa AAA 1,070 1,000 New Hanover County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Solid Waste Disposal Revenue, (Occidental Petroleum Corporation Project) Series 1994, AMT, 6.500% 08/01/14......... Baa3 BBB- 1,009
SEE NOTES TO FINANCIAL STATEMENTS. 189 194 NATIONS FUNDS Nations North Carolina Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,000 North Carolina, Appalachian State University, Revenue Refunding, Series 1998, (MBIA Insured), 5.000% 05/15/18......... Aaa AAA $ 1,002 1,210 North Carolina, Housing Finance Agency, Revenue, (Home Ownership Project) Series 1998A-2, AMT, 5.200% 01/01/20......... Aa2 AA 1,206 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 1,205 860 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Halifax Regional Medical Center, Inc. Project) Series 1998, 4.600% 08/15/06......... Baa1 NR 828 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- 1,337 1,000 North Carolina, Medical Care Commission, Health Care Facilities Revenue, (Rex Hospital, Inc. Project) Series 1993, Prerefunded 06/01/03 @ 102, 6.250% 06/01/17......... Aaa A+ 1,078 1,000 North Carolina, Medical Care Commission, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1998B, 5.000% 12/01/18......... Aa3 AA- 966 1,000 North Carolina, Municipal Power Agency Number 1, Revenue Refunding, (Catawba Electric Project) Series 1992, (FSA Insured), 6.200% 01/01/18......... Aaa AAA 1,042
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $1,500 Onslow County, North Carolina, Combined Enterprise Systems, Revenue, Series 1994, (MBIA Insured), 5.875% 06/01/09......... Aaa AAA $ 1,617 1,000 Orange County, North Carolina, GO, Series 1994, 5.500% 02/01/14......... Aa1 AA+ 1,045 1,000 Orange County, North Carolina, GO, Series 2000, 5.300% 04/01/17......... Aa1 AA+ 1,048 1,000 Pitt County, North Carolina, Certificates of Participation, (School Facilities Project) Series 2000B, 5.500% 04/01/25......... Aaa AAA 1,035 1,000 Pitt County, North Carolina, Hospital Revenue, (Pitt County Memorial Hospital Project) Series 1995, 5.250% 12/01/21......... Aaa NR 1,014 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.500% 06/01/15......... Aaa AAA 1,064 1,000 Randolph County, North Carolina, Certificates of Participation, Series 2000, (FSA Insured), 5.750% 06/01/22......... Aaa AAA 1,065 1,000 Wake County, North Carolina, GO, Series 2001B, 4.500% 02/01/14......... Aaa AAA 988 1,000 Wilmington, North Carolina, Water Authority, GO, Series 1994, 5.700% 06/01/15......... Aa3 AA- 1,051 1,000 Wilson, North Carolina, GO, Series 2000, (AMBAC Insured), 5.100% 06/01/14......... Aaa AAA 1,051 ------- 40,827 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $38,461).......................... 40,827 -------
SEE NOTES TO FINANCIAL STATEMENTS. 190 195 NATIONS FUNDS Nations North Carolina Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
SHARES VALUE (000) (000) -------------------------------------------------------------- INVESTMENT COMPANIES -- 1.2% (Cost $511) 511 Nations Municipal Reserves#............. $ 511 ------- TOTAL INVESTMENTS (Cost $38,972*)................ 98.9% 41,338 ------- OTHER ASSETS AND LIABILITIES (NET).............. 1.1% Receivable for Fund shares sold......... $ 12 Interest receivable..................... 636 Investment advisory fee payable......... (12) Administration fee payable.............. (7) Shareholder servicing and distribution fees payable.......................... (15) Distributions payable................... (106) Accrued Trustees' fees and expenses..... (27) Accrued expenses and other liabilities........................... (14) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................. 467 ------- NET ASSETS....................... 100.0% $41,805 ======= NET ASSETS CONSIST OF: Undistributed net investment income..... $ 28 Accumulated net realized loss on investments sold...................... (1,608) Net unrealized appreciation of investments........................... 2,366 Paid-in capital......................... 41,019 ------- NET ASSETS.............................. $41,805 =======
VALUE -------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($21,965,512 / 2,198,731 shares outstanding).......................... $9.99 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($2,780,007 / 278,342 shares outstanding).......................... $9.99 ===== Maximum sales charge.................... 4.75% Maximum offering price per share........ $10.49 INVESTOR B SHARES: Net asset value and offering price per share** ($16,971,644 / 1,698,885 shares outstanding)................... $9.99 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($87,401 / 8,751 shares outstanding).......................... $9.99 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $2,366 on investment securities was comprised of gross appreciation of $2,412 and gross depreciation of $46 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $38,972. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations North Carolina Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): FGIC 12.42% Nations North Carolina Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Industrial Development Revenue/ Pollution Control Revenue 19.09% Hospital Revenue 11.66% SEE NOTES TO FINANCIAL STATEMENTS. 191 196 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.6% SOUTH CAROLINA -- 98.3% $1,100 Anderson County, South Carolina, GO Revenue Refunding, Series 1992, 6.400% 04/01/03........ Aa3 AA- $ 1,152 1,300 Anderson County, South Carolina, GO Revenue Refunding, Series 1992, 6.500% 04/01/04........ Aa3 AA- 1,363 1,240 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.200% 07/01/03........ Aaa AAA 1,287 1,000 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.500% 07/01/06........ Aaa AAA 1,053 1,500 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.600% 07/01/07........ Aaa AAA 1,578 1,000 Anderson County, South Carolina, Sewer Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.600% 07/01/08........ Aaa AAA 1,049 1,725 Beaufort County, South Carolina, School District, GO, Series 2000B, (SCSDE), 5.500% 03/01/16........ Aa1 AA+ 1,812 1,200 Beaufort County, South Carolina, School District, GO, Series 2000C, (SCSDE), 5.125% 03/01/12........ Aa1 AA+ 1,254 1,000 Berkeley County, South Carolina, Refunding and Improvement Authority, GO, Series 1993, (FGIC Insured), 5.300% 05/01/04........ Aaa AAA 1,051 1,000 Berkeley County, South Carolina, Refunding and Improvement Authority, GO, Series 1993, (FGIC Insured), 5.400% 05/01/05........ Aaa AAA 1,053
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 $ 1,052 2,500 Berkeley County, South Carolina, School District, GO, Series 2000, (SCSDE Insured), 5.000% 04/01/21........ Aa1 AA+ 2,475 1,000 Camden, South Carolina, Combined Public Utilities Revenue Refunding and Improvement, Series 1997, (MBIA Insured), 5.500% 03/01/17........ Aaa AAA 1,042 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 2,449 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 3,169 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 1,059 1,000 Charleston County, South Carolina, Public Improvement Authority, GO, Series 1994, (State Aid Withholding), 5.500% 06/01/14........ Aa3 AA 1,081 1,000 Charleston County, South Carolina, Revenue, (Alliance Health Services Project) Series 1999A, (FSA Insured), 5.000% 08/15/12........ Aaa AAA 1,036 1,040 Charleston County, South Carolina, Solid Waste User Fee Revenue, Series 1994, (MBIA Insured), 5.800% 01/01/06........ Aaa AAA 1,126
SEE NOTES TO FINANCIAL STATEMENTS. 192 197 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $5,105 Charleston, South Carolina, Waterworks and Sewer Capital Improvement Revenue Refunding, Series 1998, 5.250% 01/01/08........ A1 AA- $ 5,461 9,500 Charleston, South Carolina, Waterworks and Sewer Capital Improvement Revenue Refunding, Series 1998, (FGIC Insured), 4.500% 01/01/24........ Aaa AAA 8,531 1,000 Charleston, South Carolina, Waterworks and Sewer Revenue Refunding, Series 1991, 5.750% 01/01/04........ A1 AA- 1,035 1,645 Cherokee County, South Carolina, School District Number 1, GO, Series 1997, (SCSDE), 5.000% 03/01/02........ Aa1 NR 1,673 1,000 Columbia, South Carolina, Parking Facilities Revenue Refunding, Series 1994, (AMBAC Insured), 5.750% 12/01/09........ Aaa AAA 1,068 5,500 Columbia, South Carolina, Waterworks and Sewer Systems Revenue Refunding, Series 1993, 5.500% 02/01/09........ Aa2 AA 5,989 2,000 Darlington County, South Carolina, PCR, (Carolina Power and Light-Annual Tender Project) Series 1983, 6.600% 11/01/10........ A2 BBB+ 2,144 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 1,073 1,250 Florence, South Carolina, Water and Sewer Revenue Refunding, Series 1993, (AMBAC Insured), 5.150% 03/01/06........ Aaa AAA 1,302 1,225 Georgetown County, South Carolina, Environmental Revenue, (International Paper Company Project) Series 1997A, AMT, 5.700% 10/01/21........ Baa1 BBB+ 1,169
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $4,000 Georgetown County, South Carolina, PCR Refunding, (International Paper Company Project) Series 1999A, 5.125% 02/01/12........ Baa1 BBB+ $ 3,885 2,480 Georgetown County, South Carolina, School District, GO, Series 2000, (SCSDE), 5.500% 03/01/09........ Aa1 AA+ 2,711 1,000 Grand Strand, South Carolina, Water and Sewer Authority, Revenue Refunding, Series 1992, (MBIA Insured), 6.000% 06/01/02........ Aaa AAA 1,031 1,950 Grand Strand, South Carolina, Water and Sewer Authority, Revenue Refunding, Series 1992, (MBIA Insured), 6.300% 06/01/05++...... Aaa AAA 2,051 1,000 Grand Strand, South Carolina, Water and Sewer Authority, Revenue Refunding, Series 1992, (MBIA Insured), 6.400% 06/01/07........ Aaa AAA 1,053 1,000 Greenville County, South Carolina, Industrial Revenue Refunding, (Monsanto Company Project) Series 1990, 7.500% 10/01/07........ A1 NR 1,000 1,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1993C, 5.300% 05/01/04........ Aa3 AA 1,041 4,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1993C, 5.400% 05/01/05........ Aa3 AA 4,184 2,400 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1993C, 5.500% 05/01/11........ Aa3 AA 2,473 1,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1996A, (GTY-AGMT), 5.400% 05/01/07........ Aa3 AA 1,061 4,000 Greenville, South Carolina, Hospital Facilities Revenue Refunding, Series 1996B, (GTY-AGMT), 5.250% 05/01/17........ Aa3 AA 3,995
SEE NOTES TO FINANCIAL STATEMENTS. 193 198 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $1,385 Greenville, South Carolina, Hospital Facilities Revenue, Series 2001, 5.500% 05/01/26(a)..... Aaa AAA $ 1,414 2,000 Greenville, South Carolina, Water Utility Improvement Waterworks Revenue, Series 1997, 6.000% 02/01/06++...... Aa1 AA 2,192 1,000 Greenville, South Carolina, Water Utility Improvement Waterworks Revenue, Series 1997, 6.000% 02/01/08........ Aa1 AA 1,114 1,885 Greenwood, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1993, (AMBAC Insured), 5.500% 12/01/06........ Aaa AAA 1,996 2,000 Greenwood, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1993, (AMBAC Insured), 5.500% 12/01/07........ Aaa AAA 2,111 1,060 Greenwood, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1993, (AMBAC Insured), 5.500% 12/01/08........ Aaa AAA 1,115 1,000 Hilton Head Island, South Carolina, GO, Series 2001, 5.000% 03/01/13........ Aa3 AA 1,030 1,200 Horry County, South Carolina, Hospital Facilities Revenue, (Conway Hospital, Inc. Project) Series 1998, (AMBAC Insured), 4.875% 07/01/11........ Aaa AAA 1,239 1,275 Horry County, South Carolina, School District, GO, Series 1995B, (MBIA Insured, SCSDE), 5.700% 03/01/16........ Aaa AAA 1,309 1,725 Lancaster County, South Carolina, School District, GO, Series 1991, (MBIA Insured), Prerefunded 07/01/02 @ 102, 6.500% 07/01/07........ Aaa AAA 1,827
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $1,180 Lexington County, South Carolina, Health Service District, Revenue Refunding, (Health Service District and Lexmed, Inc. Project) Series 1997, (FSA Insured), 5.500% 11/01/06........ Aaa AAA $ 1,275 5,000 Lexington County, South Carolina, Health Services District, Revenue Refunding, Series 1997, (FSA Insured), 5.125% 11/01/21........ Aaa AAA 4,922 2,000 Lexington, South Carolina, Water and Sewer Authority, Revenue, Series 1997, 5.450% 04/01/19........ NR AA 2,025 2,000 Medical University of South Carolina, Hospital Facilities, Revenue Refunding, Series 1990A, 7.000% 07/01/01........ Baa2 BBB+ 2,016 4,500 Medical University of South Carolina, Hospital Facilities, Revenue Refunding, Series 1990A, 7.000% 07/01/02........ Baa2 BBB+ 4,602 3,725 Medical University of South Carolina, Hospital Facilities, Revenue Refunding, Series 1990A, 7.200% 07/01/05........ Baa2 BBB+ 3,809 2,500 Myrtle Beach, South Carolina, Water and Sewer Improvement Revenue Refunding, Series 1993, (MBIA Insured), 5.000% 03/01/03........ Aaa AAA 2,572 1,750 North Charleston, South Carolina, GO Refunding, Series 1993, 5.600% 08/01/07........ A2 AA- 1,843 1,725 North Charleston, South Carolina, GO Refunding, Series 1993, 5.750% 08/01/08........ A2 AA- 1,818 1,000 North Charleston, South Carolina, Sewer District, Revenue Refunding, Series 1992A, (MBIA Insured), 6.000% 07/01/02........ Aaa AAA 1,033
SEE NOTES TO FINANCIAL STATEMENTS. 194 199 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $1,850 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding, Series 1991, (FGIC Insured), 6.850% 01/01/07........ Aaa AAA $ 1,892 1,600 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding, Series 1992, (MBIA Insured), 6.000% 01/01/05........ Aaa AAA 1,731 4,000 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding, Series 1996B, (MBIA Insured), 5.250% 01/01/09........ Aaa AAA 4,252 2,040 Richland County, South Carolina, GO Refunding, Series 1991, 5.900% 12/01/01........ Aa2 AA 2,077 2,020 Richland County, South Carolina, GO Refunding, Series 1994B, (State Aid Withholding), 4.750% 03/01/03........ Aa2 AA 2,070 2,120 Richland County, South Carolina, GO Refunding, Series 1994B, (State Aid Withholding), 4.850% 03/01/04++...... Aa2 AA 2,196 2,250 Richland County, South Carolina, GO Refunding, Series 1994B, (State Aid Withholding), 4.950% 03/01/05........ Aa2 AA 2,347 4,000 Richland County, South Carolina, PCR Refunding, (Union Camp Corporation Project) Series 1992C, 5.875% 11/01/02........ Baa1 BBB+ 4,113 6,000 Richland County, South Carolina, School District Number 1, GO, Series 1996, (SCSDE), 4.625% 03/01/22........ Aa1 AA+ 5,570 1,330 Richland County, South Carolina, School District Number 2, GO Refunding, Series 1994A, (MBIA Insured, SCSDE), 4.800% 03/01/03........ Aaa AAA 1,364 1,590 Richland County, South Carolina, School District Number 2, GO Refunding, Series 1994A, (MBIA Insured, SCSDE), 4.900% 03/01/04........ Aaa AAA 1,648
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $1,655 Richland County, South Carolina, School District Number 2, GO Refunding, Series 1994A, (MBIA Insured, SCSDE), 5.000% 03/01/05........ Aaa AAA $ 1,730 1,000 Rock Hill, South Carolina, Combined Public Utility Systems Revenue, Series 1991, (FGIC Insured), 6.200% 01/01/03........ Aaa AAA 1,022 2,000 Rock Hill, South Carolina, School District Number 3, GO Refunding, Series 1992B, (FGIC Insured, SCSDE), 5.900% 02/01/02........ Aaa AAA 2,045 6,135 South Carolina State, Capital Improvement GO, Series 1996A, 3.500% 07/01/06++...... Aaa AAA 6,047 3,350 South Carolina State, Capital Improvement GO, Series 2001A, 3.500% 01/01/15........ Aaa AAA 2,903 1,245 South Carolina State, GO, Series 2000A, 4.800% 03/01/09........ Aaa AAA 1,306 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- 5,080 2,260 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 2,265 4,595 South Carolina State, Housing Finance and Development Authority, Revenue Refunding, Series 1992A, (FNMA/ FHA COLL), 6.800% 11/15/11........ Aaa NR 4,746 4,565 South Carolina State, Port Authority, Revenue, Series 1998, AMT, (FSA Insured), 5.250% 07/01/13........ Aaa AAA 4,717
SEE NOTES TO FINANCIAL STATEMENTS. 195 200 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $3,495 South Carolina State, Ports Authority, Ports Revenue, Series 1991, AMT, (AMBAC Insured), 6.750% 07/01/21........ Aaa AAA $ 3,595 1,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 1991B, 6.600% 07/01/01........ Aaa AAA 1,009 3,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 1992A, 6.200% 07/01/05++...... Aa2 AA- 3,144 1,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 1993A, 5.200% 07/01/03........ Aa2 AA- 1,037 1,500 South Carolina State, Public Service Authority, Revenue Refunding, Series 1993A, (MBIA Insured), 5.300% 07/01/05........ Aaa AAA 1,568 2,000 South Carolina State, Public Service Authority, Revenue Refunding, Series 1993C, (AMBAC Insured), 5.100% 01/01/11........ Aaa AAA 2,047 1,000 South Carolina State, Public Service Authority, Revenue, Series 1991B, 6.700% 07/01/02........ Aa2 AA- 1,028 4,000 South Carolina, Educational Facilities for Non-Profit Institutions, Revenue, (Furman University Project) Series 1996A, (MBIA Insured), 5.500% 10/01/26........ Aaa AAA 4,086 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 1,602 4,500 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 7.125% 12/15/15........ Baa2 BBB 4,526
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $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 $ 6,589 2,375 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Series 1999, (FSA Insured), 5.300% 02/01/14........ Aaa AAA 2,471 1,000 South Carolina, State Public Service Authority, Revenue Refunding, Series 1992A, 6.375% 07/01/11........ Aa2 AA- 1,051 1,000 South Carolina, Transportation Infrastructure Revenue, Series 1998A, (MBIA Insured), 4.500% 10/01/17........ Aaa AAA 936 1,025 Spartanburg County, South Carolina, GO, Series 1992, 5.800% 02/01/05........ Aa2 AA 1,083 1,005 Spartanburg County, South Carolina, GO, Series 1992, 5.700% 02/01/06........ Aa2 AA 1,058 1,000 Spartanburg County, South Carolina, GO, Series 1992, 5.700% 02/01/09........ Aa2 AA 1,046 2,850 Spartanburg, South Carolina, Sewer District, Sewer Systems Revenue, Series 1997, (MBIA Insured), Prerefunded 06/01/07 @ 101, 5.500% 06/01/27........ Aaa AAA 3,124 3,445 Spartanburg, South Carolina, Waterworks and Sewer Systems Authority, Revenue, Unrefunded Balance, Series 1992, 6.200% 06/01/09........ A1 AA- 3,585 1,000 West Columbia, South Carolina, Water and Sewer Revenue Refunding, Series 1992, (MBIA Insured), 6.300% 10/01/07........ Aaa AAA 1,061
SEE NOTES TO FINANCIAL STATEMENTS. 196 201 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
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 1992, (AMBAC Insured), 5.800% 03/01/03........ Aaa AAA $ 1,031 1,000 Western Carolina, Regional Sewer Systems Authority, Revenue Refunding, Series 1992, (AMBAC Insured), 5.900% 03/01/04........ Aaa AAA 1,030 2,500 Western Carolina, Regional Sewer Systems Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.000% 03/01/02........ Aaa AAA 2,542 1,000 Western Carolina, Regional Sewer Systems Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.500% 03/01/10........ Aaa AAA 1,040 2,500 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24........ Baa2 BBB 2,330 4,000 York County, South Carolina, PCR Refunding, (Bowater Inc. Project) Series 1991B, 6.850% 04/01/01........ Baa3 BBB 4,000 -------- 241,073 -------- TEXAS -- 1.3% 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(a)..... NR NR 1,000 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........ Baa1 BBB- 2,071 -------- 3,071 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $231,947)........................ 244,144 --------
SHARES VALUE (000) (000) ------------------------------------------------------------- INVESTMENT COMPANIES -- 0.4% (Cost $1,043) 1,043 Nations Municipal Reserves#........... $ 1,043 -------- TOTAL INVESTMENTS (Cost $232,990*)............. 100.0% 245,187 -------- OTHER ASSETS AND LIABILITIES (NET)........................ 0.0% Cash.................................. $ 1 Receivable for Fund shares sold....... 1,050 Interest receivable................... 3,535 Payable for Fund shares redeemed...... (1,034) Investment advisory fee payable....... (55) Administration fee payable............ (42) Shareholder servicing and distribution fees payable........................ (12) Distributions payable................. (947) Payable for investment securities purchased........................... (2,420) Accrued Trustees' fees and expenses... (29) Accrued expenses and other liabilities......................... (43) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 4 -------- NET ASSETS..................... 100.0% $245,191 ======== NET ASSETS CONSIST OF: Undistributed net investment income... $ 218 Accumulated net realized loss on investments sold.................... (553) Net unrealized appreciation of investments......................... 12,197 Paid-in capital....................... 233,329 -------- NET ASSETS............................ $245,191 ========
SEE NOTES TO FINANCIAL STATEMENTS. 197 202 NATIONS FUNDS Nations South Carolina Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($217,512,617 / 20,448,183 shares outstanding)........................ $10.64 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($18,420,598 / 1,731,915 shares outstanding)................. $10.64 ====== Maximum sales charge.................. 3.25% Maximum offering price per share...... $11.00 INVESTOR B SHARES: Net asset value and offering price per share** ($7,082,827 / 665,849 shares outstanding)........................ $10.64 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($2,175,077 / 204,419 shares outstanding)........................ $10.64 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $12,197 on investment securities was comprised of gross appreciation of $12,484 and gross depreciation of $287 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $232,990. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. ++ All or a portion of security segregated as collateral for "when issued" securities. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. (a) Security purchased on a "when issued" basis. Nations South Carolina Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 14.96% FGIC 10.28% Nations South Carolina Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Hospital Revenue 22.40% Water Revenue 20.66% SEE NOTES TO FINANCIAL STATEMENTS. 198 203 NATIONS FUNDS Nations South Carolina Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.3% SOUTH CAROLINA -- 99.3% $ 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 $ 532 1,000 Chester County, South Carolina, IDR Refunding, (Springs Industries Inc. Project) Series 1992, 7.350% 02/01/14......... NR BBB+ 1,029 1,500 Columbia, South Carolina, Waterworks and Sewer Systems Revenue Refunding, Series 1993, 5.500% 02/01/09......... Aa2 AA 1,633 2,700 Columbia, South Carolina, Waterworks and Sewer Systems Revenue, Series 1991, 3.740%+ 02/01/03........ Aa2 AA 2,522 1,750 Darlington County, South Carolina, IDR, (Nucor Corporation Project) Series 1993A, AMT, 5.750% 08/01/23......... A1 AA- 1,773 1,500 Darlington County, South Carolina, IDR, (Sonoco Products Company Project) Series 1995, AMT, 6.125% 06/01/25......... A2 A 1,536 2,000 Georgetown County, South Carolina, PCR Refunding, (International Paper Company Project) Series 1999A, 5.125% 02/01/12......... Baa1 BBB+ 1,943 2,040 Greenville, South Carolina, Hospital Facilities Revenue, Series 1996B, (GTY AGMT), 5.250% 05/01/23......... Aa3 AA 1,980 1,500 Greenville, South Carolina, Water Utility Improvement, Waterworks Revenue, Series 1997, 5.500% 02/01/22......... Aa1 AA 1,547 710 Greer, South Carolina, Combined Public Utilities, Revenue Refunding and Improvement, Series 1997, (AMBAC Insured), 5.000% 09/01/17......... Aaa AAA 711
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $1,100 Horry County, South Carolina, Hospital Facilities Revenue, (Conway Hospital, Inc. Project) Series 1998, (AMBAC Insured), 4.750% 07/01/10......... Aaa AAA $ 1,134 1,575 Medical University, South Carolina, Hospital Facilities Revenue, Series 1999, 5.500% 07/01/09......... Baa2 BBB+ 1,672 1,000 Oconee County, South Carolina, School District, GO, Series 1994, (MBIA Insured), 5.100% 01/01/13......... Aaa AAA 1,019 1,000 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding, Series 1996B, (MBIA Insured), 5.250% 01/01/09......... Aaa AAA 1,063 2,000 South Carolina State, Capital Improvement, GO, Series 2001A, 3.500% 01/01/16......... Aaa AAA 1,706 2,000 South Carolina State, Public Service Authority, Revenue, Series 1999A, (MBIA Insured), 5.625% 01/01/13......... Aaa AAA 2,178 1,000 South Carolina, Educational Facilities for Non-Profit Institutions, Revenue, (Furman University Project) Series 1996A, (MBIA Insured), 5.500% 10/01/26......... Aaa AAA 1,022 1,000 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, (Palmetto Health Alliance Project) Series 2000A, 7.125% 12/15/15......... Baa2 BBB 1,006 2,000 South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Series 1999, (FSA Insured), 5.300% 02/01/14......... Aaa AAA 2,081 1,000 South Carolina, Transportation Infrastructure Revenue, Series 1998A, (MBIA Insured), 5.000% 10/01/12......... Aaa AAA 1,038
SEE NOTES TO FINANCIAL STATEMENTS. 199 204 NATIONS FUNDS Nations South Carolina Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $1,000 Spartanburg County, South Carolina, Health Services District, Hospital Revenue Refunding, Series 1997B, (MBIA Insured), 5.125% 04/15/17......... Aaa AAA $ 1,004 2,250 Spartanburg, South Carolina, Sanitary Sewer District, Sewer System Revenue Refunding, Series 1999B, (MBIA Insured), 5.000% 03/01/26......... Aaa AAA 2,194 2,000 York County, South Carolina, Exempt Facilities IDR, (Hoechst Celanese Corporation Project) Series 1994, AMT, 5.700% 01/01/24......... Baa2 BBB 1,863 900 York County, South Carolina, PCR Refunding, (Bowater Inc. Project) Series 1991B, 6.850% 04/01/01......... Baa3 BBB 900 ------- 35,086 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $32,799).......................... 35,086 -------
SHARES (000) --------- INVESTMENT COMPANIES -- 0.0% (Cost $17) 17 Nations Municipal Reserves#............. 17 ------- TOTAL INVESTMENTS (Cost $32,816*)................ 99.3% 35,103 ------- OTHER ASSETS AND LIABILITIES (NET).......................... 0.7% Interest receivable..................... $ 443 Payable for Fund shares redeemed........ (1) Investment advisory fee payable......... (12) Administration fee payable.............. (6) Shareholder servicing and distribution fees payable.......................... (7) Distributions payable................... (131) Accrued Trustees' fees and expenses..... (26) Accrued expenses and other liabilities........................... (15) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................. 245 ------- NET ASSETS....................... 100.0% $35,348 ======= NET ASSETS CONSIST OF: Undistributed net investment income..... $ 20 Accumulated net realized loss on investments sold...................... (699) Net unrealized appreciation of investments........................... 2,287 Paid-in capital......................... 33,740 ------- NET ASSETS.............................. $35,348 =======
VALUE -------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($25,907,686 / 2,515,378 shares outstanding).......................... $10.30 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($1,057,524 / 102,740 shares outstanding).......................... $10.29 ====== Maximum sales charge.................... 4.75% Maximum offering price per share........ $10.80 INVESTOR B SHARES: Net asset value and offering price per share** ($8,337,561 / 809,661 shares outstanding).......................... $10.30 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($45,285 / 4,398 shares outstanding).......................... $10.30 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $2,287 on investment securities was comprised of gross appreciation of $2,287 and gross depreciation of $0 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $32,816. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations South Carolina Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 26.92% Nations South Carolina Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Hospital Revenue 26.62% Industrial Development Revenue/ Pollution Control Revenue 25.58% Water Revenue 22.34% Electric Revenue 11.18% SEE NOTES TO FINANCIAL STATEMENTS. 200 205 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 98.4% TENNESSEE -- 95.9% $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 $ 1,023 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 1,796 1,000 Chattanooga-Hamilton County, Tennessee, Hospital Authority, Revenue Refunding, (Erlanger Medical Center Project) Series 1993, (FSA Insured), 5.500% 10/01/07......... Aaa AAA 1,084 1,145 Harpeth Valley, Tennessee, Utilities District, Revenue Refunding, Series 1993, 5.000% 09/01/01......... A1 A 1,154 1,600 Knox County, Tennessee, Health Educational and Housing Facilities Board, Hospital Facilities Improvement Revenue Refunding, (Baptist Health System of East Tennessee, Inc. Project) Series 1996, (CONNIE LEE Insured), 5.500% 04/15/11......... Aaa AAA 1,703 500 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 520 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 1,464 1,250 Knox County, Tennessee, Public Improvement GO, Series 1998, 4.750% 04/01/19......... Aa2 AA 1,198
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $2,500 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation - Saturn Corporation Project) Series 1994, 6.500% 09/01/24......... A2 A $ 2,670 1,800 McMinn County, Tennessee, Industrial Development Board, PCR Refunding, (Bowater Inc. Project) Series 1991, 6.850% 04/01/01......... Baa3 BBB 1,800 1,000 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22......... Baa3 BBB 1,034 1,000 Memphis, Tennessee, Electric System Revenue Refunding, Series 1992, 6.000% 01/01/05......... Aa3 AA 1,079 2,100 Memphis, Tennessee, GO, Series 2000, 5.000% 04/01/17......... Aa2 AA 2,110 1,500 Memphis, Tennessee, Water Division, Revenue Refunding, Series 1992, 5.900% 01/01/04......... Aa1 AA 1,591 1,000 Memphis-Shelby County, Tennessee, Airport Authority, Special Facilities and Project Revenue Refunding, (Federal Express Corporation Project) Series 1992, 6.750% 09/01/12......... Baa2 BBB 1,041 1,600 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1998B, 5.500% 05/15/13......... Aa3 AA 1,750 750 Metropolitan Government, Nashville and Davidson County, Tennessee, GO Refunding, Series 1993, 5.250% 05/15/07......... Aa2 AA 803 295 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/09......... Aaa AAA 333
SEE NOTES TO FINANCIAL STATEMENTS. 201 206 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 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 $ 567 600 Metropolitan Government, Nashville and Davidson County, Tennessee, Multi-Family Housing Revenue, (Enchantment, Inc. - Welch Bend Apartments Project) Series 1996A, (FNMA COLL), Mandatory Put 01/01/07 @ 100, 5.500% 01/01/27......... NR AAA 615 1,645 Rutherford County, Tennessee, Public Improvement GO, Series 1996, 6.000% 04/01/06......... Aa2 AA 1,807 1,280 Shelby County, Tennessee, GO Refunding, Series 1996B, 5.200% 12/01/09......... Aa3 AA+ 1,356 1,000 Shelby County, Tennessee, GO Refunding, Series 1999B, 5.250% 04/01/11......... Aa3 AA+ 1,073 520 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 549 500 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (Methodist Health Systems, Inc. Project) Series 1995, (MBIA Insured), 6.250% 08/01/09......... Aaa AAA 569 2,000 Shelby County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (St. Jude's Childrens Research Project) Series 1999, 5.375% 07/01/24......... NR AA 1,989 400 Shelby County, Tennessee, Public Improvement GO Refunding, Series 1999A, 4.750% 05/01/21......... Aa3 AA+ 378
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 500 Shelby County, Tennessee, Public Improvement GO, Series 1996A, 5.625% 06/01/06......... Aa3 AA+ $ 542 1,000 Sumner County, Tennessee, Resource Authority, Revenue, Series 1993, (AMBAC Insured), 5.125% 08/01/03......... Aaa AAA 1,037 1,500 Tennergy Corporation, Tennessee, Gas Revenue, Series 1999, (MBIA Insured), 5.000% 06/01/07......... Aaa AAA 1,508 1,000 Tennessee State, GO, Series 1994A, 5.200% 03/01/05......... Aa1 AA+ 1,059 1,000 Tennessee State, GO, Series 1995A, 7.000% 03/01/03......... Aa1 AA+ 1,066 500 Tennessee State, School Board Authority, Higher Education Facilities Revenue, Series 1992A, 6.000% 05/01/05......... Aa2 AA 522 2,500 Tennessee, Housing Development Agency, Homeownership Revenue, Series 1997-3A, AMT, 4.750%+ 01/01/08........ Aa2 AA 1,822 990 Tennessee, Housing Development Agency, Mortgage Finance Revenue, Series 1993A, 5.100% 07/01/01......... A1 AA 994 1,120 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1997, AMT, 4.200%+ 07/01/03... Aa2 AA 1,020 1,215 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1997, AMT, 4.300%+ 07/01/04........ Aa2 AA 1,058 785 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1998, AMT, 4.750% 07/01/08......... Aa2 AA 803 1,135 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1998, AMT, 4.850% 07/01/09......... Aa2 AA 1,166
SEE NOTES TO FINANCIAL STATEMENTS. 202 207 NATIONS FUNDS Nations Tennessee Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 700 Williamson County, Tennessee, GO, Series 2000, 5.350% 03/01/17......... Aa1 NR $ 728 ------- 46,381 ------- MISSOURI -- 2.5% 1,275 West Plains, Missouri, Industrial Development Authority, Hospital Revenue, (Ozarks Medical Center Project) Series 1997, 5.250% 11/15/07... NR BB+ 1,200 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $45,834).......................... 47,581 -------
SHARES (000) ------ INVESTMENT COMPANIES -- 0.6% (Cost $270) 270 Nations Municipal Reserves#............. 270 ------- TOTAL INVESTMENTS (Cost $46,104*)................ 99.0% 47,851 ------- OTHER ASSETS AND LIABILITIES (NET).......................... 1.0% Cash.................................... $ 1 Interest receivable..................... 749 Payable for Fund shares redeemed........ (64) Investment advisory fee payable......... (11) Administration fee payable.............. (8) Shareholder servicing and distribution fees payable.......................... (3) Distributions payable................... (148) Accrued Trustees' fees and expenses..... (26) Accrued expenses and other liabilities........................... (17) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET)................................. 473 ------- NET ASSETS....................... 100.0% $48,324 ======= NET ASSETS CONSIST OF: Undistributed net investment income..... $ 11 Accumulated net realized loss on investments sold...................... (359) Net unrealized appreciation of investments........................... 1,747 Paid-in capital......................... 46,925 ------- NET ASSETS....................... $48,324 =======
VALUE ----------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($38,928,057 / 3,759,766 shares outstanding).......................... $10.35 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($7,944,317 / 767,320 shares outstanding).......................... $10.35 ====== Maximum sales charge.................... 3.25% Maximum offering price per share........ $10.70 INVESTOR B SHARES: Net asset value and offering price per share** ($1,448,291 / 139,864 shares outstanding).......................... $10.35 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($2,835 / 275 shares outstanding).......................... $10.31 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $1,747 on investment securities was comprised of gross appreciation of $1,893 and gross depreciation of $146 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $46,104. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Tennessee Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Hospital Revenue 23.48% Housing Revenue 15.47% Industrial Development Revenue/ Pollution Control Revenue 13.54% SEE NOTES TO FINANCIAL STATEMENTS. 203 208 NATIONS FUNDS Nations Tennessee Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 96.5% TENNESSEE -- 96.5% $500 Blount County, Tennessee, Public Building Authority, Public Facility Revenue, Series 1998, (FGIC Insured), 5.000% 04/01/19......... Aaa AAA $ 494 250 Chattanooga-Hamilton County, Tennessee, Hospital Authority, Revenue Refunding, (Erlanger Medical Center Project) Series 1993, (FSA Insured), 5.500% 10/01/07................ Aaa AAA 271 740 Hamilton County, Tennessee, GO Refunding, Series 1998B, 5.100% 08/01/24................ Aa1 NR 747 575 Humphreys County, Tennessee, Industrial Development Board, Solid Waste Disposal, (E.I. duPont de Nemours and Company Project) Series 1994, AMT, 6.700% 05/01/24......... Aa3 AA- 627 400 Knox County, Tennessee, Health Educational and Housing Facilities Board, Hospital Facilities Improvement Revenue Refunding, (Baptist Health System of East Tennessee, Inc. Project) Series 1996, (CONNIE LEE Insured), 5.500% 04/15/11......... Aaa AAA 426 300 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 358 500 Knox County, Tennessee, Health Educational and Housing Facilities Board, Revenue, (University Health Systems Inc. Project) Series 1999, 5.750% 04/01/19................ Baa1 NR 488 200 Loudon County, Tennessee, Industrial Development Board, Solid Waste Disposal Revenue, (Kimberly-Clark Corporation Project) Series 1993, AMT, 6.200% 02/01/23................ Aa2 AA 206
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $500 Maury County, Tennessee, Industrial Development Board, Multi-Modal PCR Refunding, (General Motors Corporation -- Saturn Corporation Project) Series 1994, 6.500% 09/01/24................ A2 A $ 534 250 McMinn County, Tennessee, Industrial Development Board, Recycling Facilities Revenue, (Bowater Inc. Project) Series 1992, AMT, 7.400% 12/01/22................ Baa3 BBB 259 300 Memphis, Tennessee, Electric System Revenue Refunding, Series 1993, 4.900% 01/01/11......... Aa3 AA 307 400 Memphis, Tennessee, GO, Series 2000, 5.000% 04/01/17................ Aa2 AA 402 500 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 493 350 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1996A, 5.625% 05/15/14................ Aa3 AA 372 400 Metropolitan Government, Nashville and Davidson County, Tennessee, Electric Revenue, Series 1998B, 5.500% 05/15/13................ Aa3 AA 437 250 Metropolitan Government, Nashville and Davidson County, Tennessee, GO Refunding, Series 1993, 5.250% 05/15/07......... Aa2 AA 268 300 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/09................ Aaa AAA 338
SEE NOTES TO FINANCIAL STATEMENTS. 204 209 NATIONS FUNDS Nations Tennessee Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $500 Metropolitan Government, Nashville and Davidson County, Tennessee, Health and Educational Facilities Board, Improvement Revenue Refunding, (Meharry Medical College Project) Series 1996, (AMBAC Insured), 6.000% 12/01/16................ Aaa AAA $ 563 400 Metropolitan Government, Nashville and Davidson County, Tennessee, Multi-Family Housing Revenue, (Enchantment, Inc. -- Welch Bend Apartments Project) Series 1996A, (FNMA COLL), Mandatory Put 01/01/07 @ 100, 5.500% 01/01/27................ NR AAA 410 250 Metropolitan Government, Nashville and Davidson County, Tennessee, Revenue, (Meharry Medical College Project) Series 1994, (AMBAC Insured), Prerefunded 12/01/04 @ 102, 7.000% 12/01/11......... Aaa AAA 284 300 Metropolitan Government, Nashville and Davidson County, Tennessee, Water and Sewer Systems Revenue Refunding, Series 1993, (FGIC Insured), 5.200% 01/01/13................ Aaa AAA 320 250 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- 266 250 Tennessee State, Local Development Authority, Revenue Refunding, (State Loan Program) Series 1993A, 5.750% 03/01/11................ A2 AA- 261
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TENNESSEE -- (CONTINUED) $300 Tennessee, Housing Development Agency, Revenue, (Home Ownership Program) Series 1998, AMT, 4.750% 07/01/08......... Aa2 AA $ 307 500 Williamson County, Tennessee, GO, Series 2000, 5.350% 03/01/17... Aa1 NR 521 ------- 9,959 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $9,421)............................. 9,959 -------
SHARES (000) --------- INVESTMENT COMPANIES -- 2.5% (Cost $258) 258 Nations Municipal Reserves#............. 258 ------- TOTAL INVESTMENTS (Cost $9,679*)................. 99.0% 10,217 ------- OTHER ASSETS AND LIABILITIES (NET).......................... 1.0% Cash.................................... $ 1 Receivable for Fund shares sold......... 3 Interest receivable..................... 165 Investment advisory fee payable......... (2) Administration fee payable.............. (2) Shareholder servicing and distribution fees payable.......................... (4) Distributions payable................... (27) Accrued Trustees' fees and expenses..... (26) Accrued expenses and other liabilities........................... (10) TOTAL OTHER ASSETS AND LIABILITIES (NET)................................. 98 ------- NET ASSETS....................... 100.0% $10,315 ======= NET ASSETS CONSIST OF: Undistributed net investment income..... $ 29 Accumulated net realized loss on investments sold...................... (99) Net unrealized appreciation of investments........................... 538 Paid-in capital......................... 9,847 ------- NET ASSETS.............................. $10,315 =======
SEE NOTES TO FINANCIAL STATEMENTS. 205 210 NATIONS FUNDS Nations Tennessee Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE -------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($4,726,426 / 461,771 shares outstanding)................... $10.24 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($1,706,092 / 166,653 shares outstanding).......................... $10.24 ====== Maximum sales charge.................... 4.75% Maximum offering price per share........ $10.75 INVESTOR B SHARES: Net asset value and offering price per share** ($3,719,510 / 363,366 shares outstanding).......................... $10.24 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($163,394 / 15,962 shares outstanding).......................... $10.24 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $538 investment securities was comprised of gross appreciation of $558 and gross depreciation of $20 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $9,679. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Tennessee Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): AMBAC 11.51% Nations Tennessee Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Industrial Development Revenue/ Pollution Control Revenue 20.53% Hospital Revenue 17.54% SEE NOTES TO FINANCIAL STATEMENTS. 206 211 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 98.2% TEXAS -- 87.5% $ 1,450 Alliance Airport Authority Inc., Texas, Special Facilities Revenue, (American Corporation - American Airlines Inc. Project) Series 1991, AMT, 7.000% 12/01/11........ Baa1 BBB- $ 1,598 1,500 Arlington, Texas, Independent School District, GO, Series 1992, (PSF-GTD), Prerefunded 02/15/02 @ 100, 6.100% 02/15/05........ Aaa NR 1,538 1,775 Arlington, Texas, Independent School District, GO, Unrefunded Balance, Series 1992, (PSF-GTD), 6.100% 02/15/05........ Aaa NR 1,816 1,000 Arlington, Texas, Waterworks and Sewer Improvement Revenue Refunding, Series 1992, (FGIC Insured), 6.100% 06/01/02........ Aaa AAA 1,033 5,750 Austin, Texas, GO Refunding, Series 1993, 5.500% 09/01/04........ Aa2 AA+ 6,102 2,000 Austin, Texas, Public Improvement GO, Series 1992, (AMBAC Insured), Prerefunded 09/01/02 @ 100, 5.900% 09/01/05........ Aaa AAA 2,075 4,275 Austin, Texas, Utility System Revenue Refunding, Series 1992, (AMBAC Insured), 6.250% 11/15/03........ Aaa AAA 4,538 3,000 Austin, Texas, Utility System Revenue Refunding, Series 1992, (AMBAC Insured), 6.250% 11/15/05........ Aaa AAA 3,188 965 Brazos, Texas, Higher Education Authority Inc., Revenue Refunding, Senior Lien, Series 1994A-2, AMT, (GTD STD LNS), 6.050% 06/01/03........ Aaa NR 990
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 4,365 Cass County, Texas, Industrial Development Corporation, Environmental Revenue, (International Paper Corporation Project) Series 1997A, AMT, (GTY-AGMT), 6.250% 04/01/21........ Baa1 BBB+ $ 4,388 4,115 Cedar Hill, Texas, Independent School District, GO, Prerefunded, Series 2000, (PSF-GTD), 5.310%+ 08/15/16....... NR AAA 1,690 3,840 Cedar Hill, Texas, Independent School District, GO, Prerefunded, Series 2000, (PSF-GTD), 5.380%+ 08/15/17....... NR AAA 1,464 3,525 Clear Creek, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.375% 02/01/06........ Aaa AAA 3,649 1,575 Dallas, Texas, Independent School District, GO, Prerefunded Balance, Series 1993, (PSF-GTD), 5.600% 08/15/05........ Aaa AAA 1,656 1,550 Dallas, Texas, Independent School District, GO, Prerefunded Balance, Series 1993, (PSF-GTD), 5.700% 08/15/06........ Aaa AAA 1,633 2,860 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.600% 08/15/05........ Aaa AAA 2,982 2,940 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), 5.700% 08/15/06........ Aaa AAA 3,064 1,565 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), Prerefunded 08/15/03 @ 100, 5.600% 08/15/05........ NR AAA 1,645 1,510 Dallas, Texas, Independent School District, GO, Series 1993, (PSF-GTD), Prerefunded 08/15/03 @ 100, 5.700% 08/15/06........ NR AAA 1,591
SEE NOTES TO FINANCIAL STATEMENTS. 207 212 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 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 $ 5,241 1,395 El Paso, Texas, GO Refunding, Series 1992C, (FGIC Insured), 5.700% 08/15/03........ Aaa AAA 1,436 2,000 Garland, Texas, Utility Systems Revenue Refunding, Series 1992, (AMBAC Insured), 5.900% 03/01/02........ Aaa AAA 2,049 1,000 Grapevine, Texas, GO, Series 2000, (FGIC Insured), 5.800% 08/15/19........ Aaa AAA 1,067 3,000 Harris County, Texas, Flood Control District GO Refunding, Series 1991, 6.250% 10/01/04........ Aa1 AA+ 3,044 1,115 Harris County, Texas, Flood Control District, GO, Series 1992A, 5.800% 10/01/03........ Aa1 AA+ 1,153 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 3,522 2,000 Harris County, Texas, Health Facilities Development Authority, Revenue, Series 1999A, 5.500% 07/01/09........ Aaa AAA 2,117 2,000 Harris County, Texas, Health Facilities Development Corporation, Revenue, (Christus Health Project) Series 1999A, (MBIA Insured), 5.500% 07/01/10........ Aaa AAA 2,116 4,000 Harris County, Texas, Toll Road Revenue Refunding, Senior Lien, Series 1994, (FGIC Insured), 5.000% 08/15/16........ Aaa AAA 4,004 3,380 Harris County, Texas, Toll Road Revenue Refunding, Senior Lien, Series 1994, (FGIC Insured), 5.375% 08/15/20........ Aaa AAA 3,417
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 1,305 Houston, Texas, GO Refunding, Series 1992C, Prerefunded 03/01/02 @ 100, 6.000% 03/01/05........ Aa3 AA- $ 1,338 3,085 Houston, Texas, GO, Unrefunded Balance, Series 1992C, 6.000% 03/01/05........ Aa3 AA- 3,157 5,000 Houston, Texas, Independent School District, GO Refunding, Series 1993, (PSF-GTD), 5.400% 08/15/07........ Aaa AAA 5,160 8,000 Houston, Texas, Water and Sewer Systems Revenue Refunding, Junior Lien, Series 1997A, (FGIC Insured), 5.375% 12/01/27........ Aaa AAA 8,094 10,000 Houston, Texas, Water and Sewer Systems Revenue, Junior Lien, Series 1996A, (FGIC Insured), 5.250% 12/01/25........ Aaa AAA 10,011 6,145 Houston, Texas, Water and Sewer Systems Revenue, Unrefunded Balance, Prior Lien, Series 1992B, 5.900% 12/01/03........ A2 A+ 6,487 1,500 Klein, Texas, Independent School District, GO, Series 1999A, (PSF-GTD), 5.125% 08/01/15........ Aaa AAA 1,537 1,000 Lewisville, Texas, Independent School District, GO Refunding, Series 1992, (PSF-GTD), 6.100% 08/15/02........ Aaa NR 1,037 1,085 Lewisville, Texas, Independent School District, GO Refunding, Series 1992, (PSF-GTD), Prerefunded 08/15/02 @ 100, 6.250% 08/15/05........ Aaa NR 1,129 3,815 Lewisville, Texas, Independent School District, GO, Unrefunded Balance, Series 1992, (PSF-GTD), 6.250% 08/15/05........ Aaa NR 3,959 5,000 Mesquite, Texas, Independent School District 1, GO Refunding, Series 1993, (PSF-GTD), 5.300% 08/15/06........ Aaa AAA 5,219
SEE NOTES TO FINANCIAL STATEMENTS. 208 213 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 1,380 Mesquite, Texas, Independent School District 1, GO, Unrefunded Balance, Series 1992, (PSF-GTD), 5.750% 08/15/03........ Aaa AAA $ 1,407 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 5,407 7,000 North Central, Texas, Health Facilities Development Corporation, Revenue Refunding, (Baylor Health Care Systems Project) Series 1995, 5.500% 05/15/13........ Aa3 AA- 7,284 1,500 Pearland, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.500% 02/15/20........ Aaa AAA 1,545 1,835 Plano, Texas, Independent School District, GO, Series 1995, (PSF-GTD), 7.000% 02/15/05........ Aaa AAA 2,056 1,000 Port of Houston Authority of Harris County, Texas, Revenue Refunding, Series 1992, (MBIA Insured), 6.300% 05/01/04........ Aaa AAA 1,029 4,000 Red River Authority, Texas, PCR Refunding, Series 1991, (AMBAC Insured), 5.200% 07/01/11........ Aaa NR 4,159 6,500 Red River Authority, Texas, PCR, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.875% 04/01/17........ Baa2 BBB 6,664 5,000 Round Rock, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.000% 08/01/18........ Aaa AAA 4,960 4,185 San Antonio, Texas, Unrefunded GO, Series 1992, 5.500% 08/01/05........ Aa2 AA+ 4,281
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 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 $ 3,523 500 Texas State, College Student Loan Authority, GO, Series 1994, AMT, 5.750% 08/01/11........ Aa1 AA 518 1,000 Texas State, College Student Loan Authority, GO, Series 1996, AMT, 5.000% 08/01/12........ Aa1 AA 1,013 6,835 Texas State, College Student Loan Authority, GO, Series 1997, (GTD STD LNS), AMT, 5.250% 08/01/07........ Aa1 AA 7,230 1,425 Texas State, College Student Loan Authority, GO, Series 1997, AMT, (GTD STD LNS), 5.000% 08/01/05........ Aa1 AA 1,483 3,565 Texas State, College Student Loan Authority, GO, Series 1999, AMT, 5.000% 08/01/07........ Aa1 AA 3,710 5,000 Texas State, GO Refunding, Series 1992A, 5.800% 10/01/04........ Aa1 AA 5,362 2,955 Texas State, Port of Corpus Christi Revenue Authority, Refunding, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.875% 04/01/17........ Baa2 BBB 3,032 5,000 Texas State, Public Finance Authority, Building Revenue Refunding, Series 1992B, (AMBAC Insured), 6.100% 02/01/04........ Aaa AAA 5,332 1,200 Texas State, Public Finance Authority, GO Refunding, Series 1996C, 6.000% 10/01/06........ NR AA 1,326 3,500 Texas State, Texas A&M University, Revenue, Series 1999, 5.500% 05/15/20........ Aa1 AA+ 3,608
SEE NOTES TO FINANCIAL STATEMENTS. 209 214 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 3,250 Texas State, Turnpike Authority of Dallas, North Tollway Revenue, (President George Bush Turnpike Project) Series 1996, (AMBAC Insured), 4.500%+ 01/01/09....... Aaa AAA $ 2,302 3,000 Texas State, Water Development Board, Revenue, Series 1997, 5.000% 07/15/12........ Aaa AAA 3,094 1,100 Texas State, Water Development Board, Revenue, Series 1999B, 5.625% 07/15/21........ Aaa AAA 1,150 1,850 Texas State, Water Development GO, Series 1997, 5.500% 08/01/07........ Aa1 AA 2,007 5,000 Texas State, Water Development GO, Series 1997, 5.250% 08/01/28........ Aa1 AA 5,004 2,000 Texas State, Water Financial Assistance, GO, Series 1999, (MBIA Insured), 5.500% 08/01/29........ Aaa AAA 2,051 6,000 Texas, Municipal Power Agency, Revenue Refunding, Series 1992, (MBIA Insured), Prerefunded 09/01/02 @ 102, 5.900% 09/01/04........ Aaa AAA 6,339 15,000 Texas, Municipal Power Agency, Revenue Refunding, Series 1993, (MBIA Insured), 5.250% 09/01/05........ Aaa AAA 15,648 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 4,505 3,250 Travis County, Texas, Limited Tax GO Refunding, Series 1992A, (MBIA Insured), 5.500% 03/01/03........ Aaa AAA 3,373 3,500 Travis County, Texas, Limited Tax GO Refunding, Series 1992A, (MBIA Insured), 5.600% 03/01/04........ Aaa AAA 3,629
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 1,500 Travis County, Texas, Limited Tax GO Refunding, Series 1992A, (MBIA Insured), 5.750% 03/01/06........ Aaa AAA $ 1,552 500 Trinity River Authority, Texas, PCR, (Texas Instruments Inc. Project) Series 1996, AMT, 6.200% 03/01/20........ NR A 524 3,885 Trinity River Authority, Texas, Ten Mile Revenue, Series 1992, (AMBAC Insured), 5.700% 08/01/03........ Aaa AAA 3,998 4,610 Waxahachie, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.380%+ 08/15/17....... Aaa NR 1,779 4,755 Waxahachie, Texas, Independent School District, Prerefunded, GO, Series 2000, (PSF-GTD), 5.240%+ 08/15/15....... Aaa NR 2,132 -------- 256,950 -------- 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........ Baa1 BBB+ 3,101 1,750 Mobile, Alabama, Industrial Development Board, Environmental Improvement Revenue, (International Paper Company Project) Series 2000A, AMT, 6.700% 03/01/24........ Baa1 BBB+ 1,835 -------- 4,936 -------- CONNECTICUT -- 1.7% 5,000 Connecticut State, GO, Series 1995A, 5.625% 03/15/09........ Aa2 AA 5,244 --------
SEE NOTES TO FINANCIAL STATEMENTS. 210 215 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- FLORIDA -- 0.4% $ 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+ $ 1,040 -------- ILLINOIS -- 0.4% 1,100 Rosemont, Illinois, GO, Series 1991B, (FGIC Insured), 6.400% 02/01/03........ Aaa AAA 1,132 -------- MAINE -- 0.4% 1,000 Bucksport, Maine, Solid Waste Disposal Revenue, (Champion International Corporation Project) Series 1985, 6.250% 05/01/10........ NR BBB+ 1,027 -------- MICHIGAN -- 1.6% 4,600 Detroit, Michigan, GO Refunding, Series 1995B, 6.500% 04/01/02........ Baa1 A- 4,730 -------- MISSISSIPPI -- 1.9% 3,000 Jackson, Mississippi, Redevelopment Authority, Urban Renewal Revenue, (Jackson Medical Mall Foundation Project) Series 1997A, (Bank One Louisiana LOC), Mandatory Put 05/01/01 @ 100, 4.600% 11/01/12........ NR A-1 3,001 2,600 Warren County, Mississippi, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, AMT, 6.700% 08/01/18........ Baa1 BBB+ 2,731 -------- 5,732 --------
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- OKLAHOMA -- 0.5% $ 1,400 Oklahoma, Housing Development Authority, Revenue, Series 2000A, (FHLMC COLL), 5.100% 11/01/05........ Aa3 NR $ 1,449 -------- TENNESSEE -- 1.2% 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 3,398 -------- WASHINGTON -- 0.9% 2,425 Washington State, GO, Series 1995C, 5.450% 07/01/07........ Aa1 AA+ 2,562 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost: $273,731)....................... 288,200 --------
SHARES (000) --------- INVESTMENT COMPANIES -- 1.5% (Cost: $4,403) 4,403 Nations Municipal Reserves#........... 4,403 -------- TOTAL INVESTMENTS (Cost $278,134*)............. 99.7% 292,603 -------- OTHER ASSETS AND LIABILITIES (NET)........................ 0.3% Receivable for Fund shares sold....... $ 246 Interest receivable................... 3,703 Payable for Fund shares redeemed...... (1,717) Investment advisory fee payable....... (69) Administration fee payable............ (50) Shareholder servicing and distribution fees payable........................ (3) Distributions payable................. (1,196) Accrued Trustees' fees and expenses... (27) Accrued expenses and other liabilities......................... (47) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 840 -------- NET ASSETS..................... 100.0% $293,443 ======== NET ASSETS CONSIST OF: Undistributed net investment income... $ 299 Accumulated net realized loss on investments sold.................... (4,496) Net unrealized appreciation of investments......................... 14,469 Paid-in capital....................... 283,171 -------- NET ASSETS............................ $293,443 ========
SEE NOTES TO FINANCIAL STATEMENTS. 211 216 NATIONS FUNDS Nations Texas Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($286,949,381 / 27,722,276 shares outstanding)........................ $10.35 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($4,346,378 / 419,923 shares outstanding)................. $10.35 ====== Maximum sales charge.................. 3.25% Maximum offering price per share...... $10.70 INVESTOR B SHARES: Net asset value and offering price per share** ($2,144,585 / 207,199 shares outstanding)........................ $10.35 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($2,806 / 271 shares outstanding)........................ $10.35 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $14,469 on investment securities was comprised of gross appreciation of $14,660 and gross depreciation of $191 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $278,134. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Texas Intermediate Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 19.74% FGIC 10.29% Nations Texas Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Water Revenue 11.54% Electric Revenue 10.08% Hospital Revenue 10.04% SEE NOTES TO FINANCIAL STATEMENTS. 212 217 NATIONS FUNDS Nations Texas Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 92.9% TEXAS -- 85.0% $ 500 Austin, Texas, Public Improvement, GO, Series 1999, 5.375% 09/01/18......... Aa2 AA+ $ 513 500 Dallas County, Texas, GO, Series 1995, 5.250% 08/15/14......... Aaa AAA 511 500 Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding, Series 1994A, (MBIA Insured), 6.000% 11/01/09......... Aaa AAA 538 400 Fort Worth, Texas, Higher Education Financial Corporation, Higher Education Revenue, (Texas Christian University Project) Series 1997, 5.000% 03/15/17......... Aa3 AA- 397 500 Grand Prairie, Texas, Independent School District, GO Refunding, Series 1996, (PSF-GTD), 5.200% 02/15/24......... Aaa AAA 499 500 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue, (Texas Childrens Hospital Project) Series 1995, 5.500% 10/01/19......... Aa2 AA 516 750 Harris County, Texas, Port Houston Authority, Revenue Refunding, Series 2000B, AMT, 5.500% 10/01/07......... Aa1 AA+ 803 500 Klein, Texas, Independent School District, GO, Series 1999A, (PSF-GTD), 5.125% 08/01/15......... Aaa AAA 512 500 Northside, Texas, Independent School District, GO, Series 1999, 4.750% 08/15/18......... Aaa AAA 477 500 Red River Authority, Texas, PCR, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.875% 04/01/17......... Baa2 BBB 513 600 Round Rock, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.000% 08/01/18......... Aaa AAA 594
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- TEXAS -- (CONTINUED) $ 500 Socorro, Texas, Independent School District, GO, Series 1998, (PSF-GTD), 5.250% 08/15/28......... Aaa AAA $ 498 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 1,130 500 Texas State, College Student Loan Authority, GO, Series 1994, AMT, 5.750% 08/01/11......... Aa1 AA 518 455 Texas State, GO, Series 1999, 5.250% 08/01/21......... Aa1 AA 459 375 Texas State, Veterans Housing Assistance, GO Refunding, Series 1994C, 6.400% 12/01/09......... Aa1 AA 389 400 Texas State, Water Development Board, Revenue, Series 1999B, 5.625% 07/15/21......... Aaa AAA 418 500 Texas State, Water Financial Assistance, GO, Series 1999, (MBIA Insured), 5.500% 08/01/29......... Aaa AAA 513 500 Travis County, Texas, Health Facilities Development Corporation, Revenue, (Ascension Health Credit Project) Series 1999A, (AMBAC Insured), 5.875% 11/15/24......... Aaa AAA 526 500 Trinity River Authority, Texas, PCR, (Texas Instruments Inc. Project) Series 1996, AMT, 6.200% 03/01/20......... NR A 523 500 University of Texas, University Finance Systems Revenue, Series 1995A, 5.200% 08/15/17......... Aaa AAA 506 1,000 Waxahachie, Texas, Independent School District, GO, Series 2000, (PSF-GTD), 5.380%+ 08/15/17........ Aaa NR 386 ------- 11,739 -------
SEE NOTES TO FINANCIAL STATEMENTS. 213 218 NATIONS FUNDS Nations Texas Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- OHIO -- 7.9% $1,000 Lucas County, Ohio, Hospital Revenue, (Flower Hospital Project) Series 1993, Prerefunded 12/01/04 @ 101, 6.125% 12/01/13......... NR NR $ 1,093 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $11,798).......................... 12,832 -------
SHARES (000) --------- INVESTMENT COMPANIES -- 6.6% (Cost $909) 909 Nations Municipal Reserves#............. 909 ------- TOTAL INVESTMENTS (Cost $12,707*)................ 99.5% 13,741 ------- OTHER ASSETS AND LIABILITIES (NET) 0.5% Interest receivable..................... $ 157 Investment advisory fee payable......... (4) Administration fee payable.............. (2) Shareholder servicing and distribution fees payable.......................... (5) Distributions payable................... (41) Accrued Trustees' fees and expenses..... (26) Accrued expenses and other liabilities........................... (10) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET)..................... 69 ------- NET ASSETS....................... 100.0% $13,810 ======= NET ASSETS CONSIST OF: Undistributed net investment income..... $ 39 Accumulated net realized loss on investments sold...................... (386) Net unrealized appreciation of investments........................... 1,034 Paid-in capital......................... 13,123 ------- NET ASSETS.............................. $13,810 =======
VALUE -------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($8,236,680 / 818,784 shares outstanding)................... $10.06 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($340,131 / 33,808 shares outstanding).......................... $10.06 ====== Maximum sales charge.................... 4.75% Maximum offering price per share........ $10.56 INVESTOR B SHARES: Net asset value and offering price per share** ($5,142,473 / 511,166 shares outstanding).......................... $10.06 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($90,588 / 9,006 shares outstanding).......................... $10.06 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $1,034 on investment securities was comprised of gross appreciation of $1,041 and gross depreciation of $7 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $12,707. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. + Zero coupon security. The rate shown reflects the yield to maturity. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Texas Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): MBIA 15.79% SEE NOTES TO FINANCIAL STATEMENTS. 214 219 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.1% VIRGINIA -- 94.2% $ 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+ $ 2,057 1,000 Amherst, Virginia, Industrial Development Authority, Revenue Refunding, (Georgia-Pacific Corporation Project) Series 1998, AMT, 5.250% 02/01/11........ Baa3 NR 1,026 3,285 Arlington County, Virginia, GO Refunding, Series 1993, 6.000% 06/01/12............... Aaa AAA 3,782 2,900 Arlington County, Virginia, GO, Series 1991, Prerefunded 12/01/01 @ 102, 5.900% 12/01/03............... Aaa AAA 3,010 3,000 Arlington County, Virginia, GO, Series 1993, 5.000% 07/15/03............... Aaa AAA 3,111 2,345 Arlington County, Virginia, GO, Series 1994, 5.400% 08/01/02............... Aaa AAA 2,411 2,000 Arlington County, Virginia, Industrial Development Authority, Facilities Revenue Refunding, (Lee Gardens Housing Corporation-Housing Mortgage - Woodbury Park Apartments Project) Series 1998A, 5.450% 01/01/29........ NR A 1,902 1,000 Arlington County, Virginia, Industrial Development Authority, Facilities Revenue, (The Nature Conservancy Project) Series 1997A, 5.450% 07/01/27........ Aa1 NR 1,027 1,000 Arlington County, Virginia, Industrial Development Authority, Hospital Facilities Revenue, (Arlington Hospital Project) Series 1991A, Prerefunded 09/01/01 @ 102, 6.650% 09/01/05... Aaa NR 1,034
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 $ 2,113 3,515 Arlington County, Virginia, Industrial Development Authority, Revenue, (Ogden Martin Systems of Union-Alexandria/ Arlington Project) Series 1998B, AMT, (FSA Insured), 5.250% 01/01/09............... Aaa AAA 3,709 2,000 Arlington County, Virginia, Industrial Development Authority, Revenue, (Ogden Martin Systems of Union-Alexandria/ Arlington Project) Series 1998B, AMT, (FSA Insured), 5.250% 01/01/10............... Aaa AAA 2,106 3,865 Arlington, Virginia, GO, Series 1999, (State Aid Withholding), 5.250% 06/01/16............... Aaa AAA 4,013 3,455 Augusta County, Virginia, Industrial Development Authority, Hospital Revenue, (Augusta Hospital Corporation Project) Series 1991, Prerefunded 09/01/01 @ 102, 7.000% 09/01/21... A AAA 3,579 2,000 Brunswick County, Virginia, Industrial Development Authority, Correctional Facility Lease Revenue, Series 1996, (MBIA Insured), 5.250% 07/01/04........ Aaa AAA 2,106 1,000 Charlottesville-Albemarle, Virginia, Airport Authority, Revenue Refunding, Series 1995, AMT, 6.125% 12/01/09... NR BBB 1,056 6,195 Chesapeake, Virginia, GO Refunding, Series 1993, 5.125% 12/01/05........ Aa3 AA 6,598 1,000 Chesapeake, Virginia, GO, Series 1992, 5.700% 08/01/01............... Aa3 AA 1,009
SEE NOTES TO FINANCIAL STATEMENTS. 215 220 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Chesapeake, Virginia, GO, Series 1998, (State Aid Withholding), 4.650% 08/01/11............... Aa3 AA $ 1,031 1,525 Chesapeake, Virginia, Public Improvement GO, Series 1996, (State Aid Withholding), 5.000% 05/01/03............... Aa3 AA 1,576 2,000 Chesapeake, Virginia, Water and Sewer GO, Series 1995A, (State Aid Withholding), 7.000% 12/01/09........ Aa3 AA 2,300 2,000 Chesterfield County, Virginia, GO Refunding, Series 1991, 5.900% 07/15/02............... Aaa AAA 2,055 1,000 Chesterfield County, Virginia, GO, Series 1990B, 6.500% 01/01/02............... Aaa AAA 1,023 1,000 Chesterfield County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1992, 6.200% 11/01/05............... Aa2 AA 1,061 2,020 Chesterfield County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1992A, 5.625% 11/01/01............... Aa2 AA 2,049 1,320 Covington-Allegheny County, Virginia, Industrial Development Authority, PCR Refunding, (Westvaco Corporation Project) Series 1994, 5.900% 03/01/05............... Baa1 BBB+ 1,372 3,000 Fairfax County, Virginia Sewer Revenue Refunding, Series 1993, (AMBAC Insured), 5.500% 11/15/09............... Aaa AAA 3,157 15,585 Fairfax County, Virginia, Economic Development Authority, Resource Recovery, Revenue Refunding, Series 1998A, AMT, (AMBAC Insured), 5.950% 02/01/07............... Aaa AAA 17,019 3,385 Fairfax County, Virginia, Economic Development Authority, Resource Recovery, Revenue Refunding, Series 1998A, AMT, (AMBAC Insured), 6.050% 02/01/09............... Aaa AAA 3,761
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Fairfax County, Virginia, GO, Series 1998, (State Aid Withholding), 4.800% 04/01/10........ Aa1 AA+ $ 1,050 2,000 Fairfax County, Virginia, Public Improvement GO, Series 1997A, 6.000% 06/01/04............... Aaa AAA 2,151 3,135 Fairfax County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1993, (AMBAC Insured), 5.100% 11/15/04............... Aaa AAA 3,304 2,000 Fairfax County, Virginia, Water Authority, Water Revenue Refunding, Series 1997, 5.000% 04/01/29............... Aa1 AAA 1,959 2,000 Fairfax County, Virginia, Water Authority, Water Revenue, Series 2000, 5.625% 04/01/25........ Aa1 AAA 2,116 2,000 Fairfax County, Virginia, Water Authority, Water Revenue, Unrefunded Balance, Series 1992, 6.000% 04/01/22........ Aa1 AAA 2,164 2,000 Giles County, Virginia, Industrial Development Authority, Solid Waste Disposal Facilities Revenue, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.625% 12/01/22... Baa2 BBB 2,050 5,000 Goochland County, Virginia, Industrial Development Authority, (Old Dominion Electric Cooperative Project) Series 1998, AMT, 4.250% 12/01/02........ NR NR 4,947 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 1,183 2,500 Hampton Roads, Virginia, Sanitation District, Capital Improvement Revenue Refunding, Series 1993, 4.500% 10/01/02............... Aa3 AA 2,545
SEE NOTES TO FINANCIAL STATEMENTS. 216 221 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Hanover County, Virginia, Industrial Development Authority, Revenue, (Memorial Regional Medical Center Project) Series 1995, (MBIA Insured), 5.500% 08/15/25............... Aaa AAA $ 1,019 2,105 Henrico County, Virginia, Industrial Development Authority, Revenue, Series 1994, 7.500% 08/01/02............... Aa2 AA 2,220 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- 3,313 1,500 Henrico County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1992, 6.200% 05/01/04........ Aa2 AAA 1,544 2,420 Henrico County, Virginia, Water and Sewer Authority, Revenue Refunding, Series 1992, 6.300% 05/01/05........ Aa2 AAA 2,494 1,915 James City and County, Virginia, GO, Series 1995, (FGIC Insured, State Aid Withholding), 5.000% 12/15/08........ Aaa AAA 2,032 1,000 Leesburg, Virginia, GO Refunding, Series 1993, 5.500% 08/01/06........ A1 A+ 1,056 2,000 Loudoun County, Virginia, Improvement GO Refunding, Series 1993A, (State Aid Withholding), 5.000% 10/01/02............... Aa1 AA 2,051 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 1,602
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,000 Loudoun County, Virginia, Industrial Development Authority, Hospital Revenue, (Loudoun Hospital Center Project) Series 1995, (FSA Insured), 5.600% 06/01/09............... Aaa AAA 1,067 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 $ 5,981 1,750 Loudoun County, Virginia, Sanitation Authority, Water and Sewer Revenue, Series 1998, (MBIA Insured), 4.750% 01/01/30............... Aaa AAA 1,627 1,140 Lynchburg, Virginia, Public Improvement GO, Series 1997, 5.400% 05/01/17............... Aa3 AA 1,184 1,000 Medical College of Virginia, Hospital Authority, General Revenue, Series 1998, (MBIA Insured), 4.800% 07/01/11............... Aaa AAA 1,039 1,000 Newport News, Virginia, GO, Series 1998, 5.000% 03/01/18............... Aa2 AA 1,006 5,000 Newport News, Virginia, Public Improvement GO Refunding, Series 1993B, (State Aid Withholding), 5.200% 11/01/04............... Aa2 AA 5,289 1,000 Newport News, Virginia, Water and Sewer Authority, GO Refunding, Series 1993B, (State Aid Withholding), 5.100% 11/01/03............... Aa2 AA 1,043 1,020 Newport News, Virginia, Water and Sewer Authority, GO, Series 1992A, 5.500% 06/01/01............... Aa2 AA 1,024 1,095 Newport News, Virginia, Water and Sewer Authority, GO, Series 1992A, 5.600% 06/01/02............... Aa2 AA 1,125
SEE NOTES TO FINANCIAL STATEMENTS. 217 222 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
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+ $ 2,408 2,000 Norfolk, Virginia, Water Revenue, Series 1995, (MBIA Insured), 5.700% 11/01/10............... Aaa AAA 2,159 1,000 Portsmouth, Virginia, GO Refunding, Series 1993, 5.000% 08/01/02........ A3 AA- 1,022 1,000 Portsmouth, Virginia, GO Refunding, Series 1993, 5.250% 08/01/04........ A3 AA- 1,053 1,525 Prince William County, Virginia, Industrial Development Authority, Hospital Revenue Refunding, (Potomac Hospital Corporation Project) Series 1995, 6.550% 10/01/05........ Aaa NR 1,627 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 1,316 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 1,107 3,000 Prince William County, Virginia, Service Authority, Revenue Refunding, Series 1993, (FGIC Insured), 5.000% 07/01/21............... Aaa AAA 2,981 1,000 Richmond, Virginia, GO Refunding, Series 1995B, (FGIC Insured, State Aid Withholding), 5.000% 01/15/21........ Aaa AAA 991 110 Richmond, Virginia, Metropolitan Authority Expressway Revenue, Series 1992B, (FGIC Insured), 6.250% 07/15/22............... Aaa AAA 116
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 690 Richmond, Virginia, Metropolitian Authority Expressway Revenue, Unrefunded Balance, Series 1992B, (FGIC Insured), 6.250% 07/15/22............... Aaa AAA $ 721 2,300 Richmond, Virginia, Public Improvement GO Refunding, Series 1993A, (State Aid Withholding), 6.500% 01/15/02............... A1... AA 2,360 1,430 Richmond, Virginia, Public Improvement GO, Series 1993B, (State Aid Withholding), 5.500% 07/15/09........ A1 AA 1,568 2,855 Richmond, Virginia, Public Improvement, Refunding GO, Series 1999A, (FSA Insured), 5.000% 01/15/19........ Aaa AAA 2,861 1,115 Roanoke County, Virginia, IDR, (Hollins College Project) Series 1998, 5.200% 03/15/17........ NR A 1,123 3,295 Roanoke, Virginia, Public Improvement GO Refunding, Series 1992B, Prerefunded 08/01/01 @ 100.5, 6.000% 08/01/03........ Aa3 AA 3,342 1,100 Spotsylvania County, Virginia, GO Refunding, Series 1998, (FSA Insured), 4.375% 07/15/05............... Aaa AAA 1,134 1,900 Spotsylvania County, Virginia, GO Refunding, Series 1998, (FSA Insured), 4.400% 07/15/06............... Aaa AAA 1,961 2,000 Spotsylvania County, Virginia, GO Refunding, Series 1998, (FSA Insured), 4.400% 07/15/07............... Aaa AAA 2,062 1,580 Spotsylvania County, Virginia, Public Improvement GO, Series 1992, 5.200% 07/15/01............... A1 A+ 1,589 2,320 Spotsylvania County, Virginia, Public Improvement GO, Series 1992, Prerefunded 07/15/02 @ 102, 5.875% 07/15/09............... A1 A+ 2,441
SEE NOTES TO FINANCIAL STATEMENTS. 218 223 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 2,535 Staunton, Virginia, Industrial Development Authority, Educational Facilities Revenue, (Mary Baldwin College Project) Series 1996, 6.600% 11/01/14........ NR NR $ 2,660 1,110 Suffolk, Virginia, GO Refunding, Series 1993, 5.400% 08/01/04........ Aa3 A+ 1,174 1,500 Suffolk, Virginia, GO Refunding, Series 1993, 5.750% 08/01/08........ Aa3 A+ 1,584 2,000 Upper Occoquan, Virginia, Sewer Authority, Regional Sewer Revenue, Series 1991, (MBIA Insured), Prerefunded 07/01/01 @ 102, 6.250% 07/01/05............... Aaa AAA 2,055 2,300 Virginia Beach, Virginia, GO Refunding, Series 1993, 5.400% 07/15/08 Aa1 AA 2,509 1,000 Virginia Beach, Virginia, GO, Series 1990A, 6.850% 06/01/01........ Aa1 AA 1,006 3,060 Virginia Beach, Virginia, Public Improvement GO, Series 2000, 5.500% 03/01/17............... Aa1 AA 3,251 2,805 Virginia Beach, Virginia, Public Improvement GO, Series 2000, 5.500% 03/01/18............... Aa1 AA 2,966 1,790 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/17........ Aa3 AA 1,843 1,935 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/18........ Aa3 AA 1,984 2,035 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/19........ Aa3 AA 2,079 2,145 Virginia Beach, Virginia, Water and Sewer Revenue, Series 2000, 5.250% 08/01/20........ Aa3 AA 2,184 1,000 Virginia Commonwealth, Transportation Board, Transportation Program Revenue, (Oak Grove Connector Project) Series 1997A, 5.250% 05/15/22............... Aa1 AA 1,013
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,245 Virginia Commonwealth, Transportation Board, Transportation Revenue Refunding, (U.S. Route 58 Corridor Program Project) Series 1997C, 5.125% 05/15/19........ Aa1 AA $ 1,257 2,465 Virginia Port Authority, Virginia, Commonwealth Port Fund Revenue, Series 1996, AMT, 5.550% 07/01/12........ Aa1 AA+ 2,583 1,000 Virginia Port Authority, Virginia, Commonwealth Port Fund Revenue, Series 1997, AMT, (MBIA Insured), 5.650% 07/01/17............... Aaa AAA 1,037 1,210 Virginia Port Authority, Virginia, Port Facilities Revenue, Series 1997, AMT, (MBIA Insured), 6.000% 07/01/07............... Aaa AAA 1,329 2,655 Virginia State Housing, Housing Development Authority, Revenue, (Rental Housing Project) Series 2000B, AMT, 5.875% 08/01/15... Aa1 AA+ 2,755 1,175 Virginia State, Higher Educational Institutions GO, Series 1991A, 6.000% 06/01/01............... Aaa AAA 1,181 1,430 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995D-3, 6.000% 01/01/12............... Aa1 AA+ 1,519 1,470 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995D-3, 6.000% 07/01/12............... Aa1 AA+ 1,562 1,695 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 1995D-3, 6.100% 01/01/15............... Aa1 AA+ 1,789 3,595 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 2000B-3, 5.950% 07/01/14............... Aa1 AA+ 3,873 2,455 Virginia State, Housing Development Authority, Commonwealth Mortgage Revenue, Series 2000B-4, 5.500% 01/01/15............... Aa1 AA+ 2,543
SEE NOTES TO FINANCIAL STATEMENTS. 219 224 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $2,000 Virginia State, Public Building Authority, Building Revenue Refunding, (Correctional Facilities Project) Series 1992A, 5.800% 08/01/02............... Aa1 NR $ 2,036 1,480 Virginia State, Public School Authority, Revenue Refunding, Series 1993B, (State Aid Withholding), 5.100% 01/01/05........ Aa1 AA 1,556 1,000 Virginia State, Public School Authority, Revenue, Series 1991A, Prerefunded 08/01/01 @ 102, 6.500% 08/01/08... Aa1 AA 1,031 2,195 Virginia State, Public School Authority, Revenue, Series 1993A, (State Aid Withholding), 5.400% 01/01/08............... Aa1 AA 2,287 1,120 Virginia State, Resource Authority, Infrastructure Revenue, Series 2000A, (MBIA Insured), 5.500% 05/01/22............... Aaa AAA 1,173 820 Virginia State, Resource AuthoFrity, Sewer Systems Revenue Refunding, (Harrisonburg- Rockingham Project) Series 1998, 4.700% 05/01/11............... NR AA 845 2,970 Virginia State, Resource Authority, Sewer Systems Revenue Refunding, (Harrisonburg- Rockingham Project) Series 1998, 5.000% 05/01/18............... NR AA 2,978 1,000 Virginia State, Resource Authority, Sewer Systems Revenue, (Hopewell Regional Wastewater Facilities Project) Series 1995A, AMT, 6.000% 10/01/15... NR AA 1,063 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 2,586
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,020 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Suffolk Project) Series 1996A, 5.500% 04/01/17............... NR AA $ 1,066 1,000 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Sussex Service Authority Project) Series 1998, 4.625% 10/01/18............... NR AA 948 2,000 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Sussex Service Authority Project) Series 1998, 4.750% 10/01/25............... NR AA 1,864 5,345 Virginia State, Transportation Board Authority, Transportation Contract Revenue, (Northern Virginia Transportation District Project) Series 1996A, 5.125% 05/15/21............... Aa1 AA 5,350 3,150 Virginia State, Transportation Board Authority, Transportation Revenue Refunding, (U.S. Route 28 Project) Series 1992, 6.000% 04/01/02............... Aa1 AA 3,239 3,000 Virginia State, Transportation Board Authority, Transportation Revenue Refunding, (U.S. Route 58 Corridor Development Program) Series 1993A, 4.900% 05/15/03........ Aa1 AA 3,092 5,390 Virginia State, Transportation Board Authority, Transportation Revenue Refunding, (U.S. Route 58 Corridor Development Program) Series 1993A, 5.500% 05/15/09........ Aa1 AA 5,635 2,105 Virginia State, Transportation Board Authority, Transportation Revenue, (U.S. Route 58 Corridor Development Program) Series 1993B, 5.100% 05/15/05............... Aa1 AA 2,205
SEE NOTES TO FINANCIAL STATEMENTS. 220 225 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 1,700 Virginia State, Virginia Commonwealth University, Revenue Refunding, Series 1994D, 4.350% 07/01/02............... A1 AA- $ 1,715 2,350 Virginia, Biotechnology Research Park Authority, Lease Revenue, (Biotechnology Two Project) Series 1996, 5.750% 09/01/05............... Aa1 AA+ 2,552 2,475 Virginia, Chesapeake Bay Bridge and Tunnel Commission District, Revenue, Series 1995, (FGIC Insured), 5.875% 07/01/10............... Aaa AAA 2,677 2,000 Virginia, College Building Authority, Educational Facilities Revenue Refunding, (University of Richmond Project) Series 1992, 5.625% 11/01/02........ Aa2 AA 2,024 2,000 Virginia, College Building Authority, Facilities Revenue, (Equipment Leasing Program) Series 1997, 5.000% 02/01/02........ Aa2 AA+ 2,031 2,300 Virginia, College Building Authority, Virginia Educational Facilities Revenue, (Public Higher Education Financing Program) Series 1999A, 5.375% 09/01/12........ Aa1 AA 2,461 5,000 Virginia, Southeastern Public Service Authority, Revenue Refunding, Series 1993A, (MBIA Insured), 5.100% 07/01/08........ Aaa AAA 5,339 530 Washington County, Virginia, Industrial Development Authority, Hospital Facility Revenue Refunding, (Johnson Memorial Hospital Project) Series 1995, 5.625% 07/01/02............... A2 NR 538
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 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 $ 1,103 2,250 West Point, Virginia, Industrial Development Authority, Solid Waste Disposal Revenue, (Chesapeake Corporation Project) Series 1994A, AMT, 6.375% 03/01/19... Ba2 BB 2,036 -------- 288,346 -------- DISTRICT OF COLUMBIA -- 0.7% 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 1,055 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 1,056 -------- 2,111 -------- MAINE -- 0.8% 2,500 Baileyville, Maine, PCR, (Georgia-Pacific Corporation Project) Series 1998, 4.750% 06/01/05............... Baa3 NR 2,540 -------- MICHIGAN -- 0.7% 2,000 Southfield, Michigan, Library Building Authority, GO, Series 2000, (MBIA Insured), 5.500% 05/01/24........ Aaa AAA 2,058 --------
SEE NOTES TO FINANCIAL STATEMENTS. 221 226 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- NEW YORK -- 0.7% $ 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- $ 2,150 -------- TEXAS -- 0.3% 1,000 Socorro, Texas, Independent School District, GO, Series 1998, (PSF-GTD), 5.250% 08/15/28............... Aaa AAA 996 -------- WASHINGTON -- 1.7% 5,035 Washington State, Motor Vehicle Fuel Tax, GO, Series 1997F, 5.375% 07/01/22............... Aa1 AA+ 5,094 -------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $289,387)........................ 303,295 --------
SHARES VALUE (000) (000) ------------------------------------------------------------- INVESTMENT COMPANIES -- 0.7% (Cost: $2,033) 2,033 Nations Municipal Reserves#........... $ 2,033 -------- TOTAL INVESTMENTS (Cost $291,420*)............. 99.8% 305,328 -------- OTHER ASSETS AND LIABILITIES (NET)........................ 0.2% Receivable for Fund shares sold....... $ 219 Interest receivable................... 4,626 Payable for Fund shares redeemed...... (2,844) Investment advisory fee payable....... (68) Administration fee payable............ (52) Shareholder servicing and distribution fees payable........................ (17) Distributions payable................. (1,032) Accrued Trustees' fees and expenses... (36) Accrued expenses and other liabilities......................... (52) -------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 744 -------- NET ASSETS..................... 100.0% $306,072 ======== NET ASSETS CONSIST OF: Undistributed net investment income... $ 138 Accumulated net realized loss on investments sold.................... (2,186) Net unrealized appreciation of investments......................... 13,908 Paid-in capital....................... 294,212 -------- NET ASSETS............................ $306,072 ========
SEE NOTES TO FINANCIAL STATEMENTS. 222 227 NATIONS FUNDS Nations Virginia Intermediate Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($252,740,916 / 23,146,691 shares outstanding)........................ $10.92 ====== INVESTOR A SHARES: Net asset value and redemption price per share ($43,654,974 / 3,997,956 shares outstanding)................. $10.92 ====== Maximum sales charge.................. 3.25% Maximum offering price per share...... $11.29 ====== INVESTOR B SHARES: Net asset value and offering price per share** ($8,859,161 / 811,394 shares outstanding)........................ $10.92 ====== INVESTOR C SHARES: Net asset value and offering price per share** ($817,289 / 74,852 shares outstanding)........................ $10.92 ======
--------------- * Federal Income Tax Information: Net unrealized appreciation of $13,908 on investment securities was comprised of gross appreciation of $14,404 and gross depreciation of $496 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $291,420. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Virginia Intermediate Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Water Revenue 17.01% Transportation Revenue 10.92% SEE NOTES TO FINANCIAL STATEMENTS. 223 228 NATIONS FUNDS Nations Virginia Municipal Bond Fund STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 94.4% VIRGINIA -- 88.5% $1,000 Arlington County, Virginia, Industrial Development Authority, Facilities Revenue Refunding, (Lee Gardens Housing Corporation-Housing Mortgage-Woodbury Park Apartments Project) Series 1998A, 5.450% 01/01/29......... NR A $ 951 1,000 Chesapeake, Virginia, Water and Sewer GO, Series 1995A, 5.375% 12/01/20......... Aa3 AA 1,026 500 Covington-Allegheny County, Virginia, IDR Refunding, (Westvaco Corporation Project) Series 1994, 6.650% 09/01/18......... Baa1 BBB+ 522 500 Fairfax County, Virginia, Industrial Development Authority, Health Care Revenue Refunding, (Inova Health Systems Project) Series 1996, 5.500% 08/15/10......... Aa2 AA 534 1,000 Fairfax County, Virginia, Public Improvement GO, Series 1999B, 5.500% 12/01/16......... Aaa AAA 1,061 1,000 Fairfax County, Virginia, Water and Sewer Revenue Refunding, Series 1993, (AMBAC Insured), 5.500% 11/15/13......... Aaa AAA 1,043 1,000 Fairfax County, Virginia, Water Authority, Water Revenue, Series 2000, 5.625% 04/01/25......... Aa1 AAA 1,058 1,000 Fairfax County, Virginia, Water Authority, Water Revenue, Unrefunded Balance, Series 1992, 6.000% 04/01/22......... Aa1 AAA 1,082 800 Giles County, Virginia, Industrial Development Authority, Exempt Facilities Revenue, (Hoechst Celanese Corporation Project) Series 1995, AMT, 5.950% 12/01/25......... Baa2 BBB 751
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $1,000 Giles County, Virginia, Industrial Development Authority, Solid Waste Disposal Facilities Revenue, (Hoechst Celanese Corporation Project) Series 1992, AMT, 6.625% 12/01/22......... Baa2 BBB $ 1,025 400 Halifax County, Virginia, Industrial Development Authority, Hospital Revenue Refunding, (Halifax Regional Hospital, Inc. Project) Series 1998, 5.250% 09/01/17......... NR A 382 500 Hanover County, Virginia, Industrial Development Authority, Revenue, (Bon Secours Health Systems Project) Series 1995, (MBIA Insured), 5.500% 08/15/25......... Aaa AAA 508 500 Henrico County, Virginia, Industrial Development Authority, Public Facilities Lease Revenue, Series 1994, 7.000% 08/01/13......... Aa2 AA 575 500 Henry County, Virginia, GO, Series 1994, 5.750% 07/15/07......... A2 A 537 700 James City and County, Virginia, GO, Series 1995, (FGIC Insured, State Aid Withholding), 5.250% 12/15/14......... Aaa AAA 728 765 Loudoun County, Virginia, Industrial Development Authority, Hospital Revenue, (Loudoun Hospital Center Project) Series 1995, (FSA Insured), 5.600% 06/01/09......... Aaa AAA 817 500 Loudoun County, Virginia, Industrial Development Authority, Hospital Revenue, (Loudoun Hospital Center Project) Series 1995, (FSA Insured), 5.800% 06/01/20......... Aaa AAA 520 2,000 Montgomery County, Virginia, Industrial Development Lease Authority, Revenue, Series 2000B, (AMBAC Insured), 5.500% 01/15/22......... Aaa AAA 2,093
SEE NOTES TO FINANCIAL STATEMENTS. 224 229 NATIONS FUNDS Nations Virginia Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 500 Peninsula Ports Authority, Virginia, Health Care Facilities Revenue Refunding, (Riverside Health System Project) Series 1992A, Prerefunded 07/01/02 @ 102, 6.625% 07/01/18......... Aaa AA $ 530 500 Pittsylvania County, Virginia, Public Improvement GO, Series 1994, 5.850% 07/01/08......... A3 AAA 545 1,000 Prince William County, Virginia, Industrial Development Authority, Lease Revenue, (ATCC Project) Series 1996, 6.000% 02/01/14......... Aa3 NR 1,035 500 Prince William County, Virginia, Park Authority, Revenue, Series 1994, Prerefunded 10/15/04 @ 102, 6.875% 10/15/16......... NR NR 563 500 Richmond, Virginia, GO Refunding, Series 1995B, (FGIC Insured, State Aid Withholding), 5.000% 01/15/21......... Aaa AAA 496 1,390 Rivanna, Virginia, Water and Sewer Authority, Regional Water and Sewer Systems, Revenue Refunding, Series 1991, 6.450% 10/01/12......... Aa3 A+ 1,436 1,000 Staunton, Virginia, Industrial Development Authority, Educational Facilities Revenue, (Mary Baldwin College Project) Series 1996, 6.600% 11/01/14......... NR NR 1,049 500 Upper Occoquan, Virginia, Sewer Authority, Regional Sewer Revenue, Series 1995A, (MBIA Insured), 5.000% 07/01/25......... Aaa AAA 493 500 Virginia Beach, Virginia, Public Improvement GO Refunding, Series 1994, (State Aid Withholding), 5.750% 11/01/08......... Aa1 AA 538 1,000 Virginia Beach, Virginia, Public Improvement GO, Series 2000, 5.500% 03/01/18......... Aa1 AA 1,058
PRINCIPAL MOODY'S S&P AMOUNT RATINGS VALUE (000) (UNAUDITED) (000) ---------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 640 Virginia State, Public School Authority, Revenue, Series 1994A, (State Aid Withholding), 6.125% 08/01/11......... Aa1 AA $ 689 1,070 Virginia State, Residential Authority, Infrastructure Revenue, Series 2000A, (MBIA Insured), 5.500% 05/01/21......... Aaa AAA 1,122 750 Virginia State, Resource Authority, Sewer Systems Revenue, (Hopewell Regional Wastewater Facilities Project) Series 1995A, AMT, 6.000% 10/01/15......... NR AA 797 500 Virginia State, Resource Authority, Water and Sewer Systems Revenue, (Fauquier County Water and Sanitation Project) Series 1994C, 6.125% 05/01/14......... NR AA 532 1,800 West Point, Virginia, Industrial Development Authority, Solid Waste Disposal Revenue, (Chesapeake Corporation Project) Series 1994A, AMT, 6.375% 03/01/19......... Ba2 BB 1,628 ------- 27,724 ------- MISSISSIPPI -- 5.9% 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 1,332 500 Warren County, Mississippi, Environmental Improvement Revenue Refunding, (International Paper Company Project) Series 2000A, AMT, 6.700% 08/01/18......... Baa1 BBB+ 525 ------- 1,857 ------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $28,043).......................... 29,581 -------
SEE NOTES TO FINANCIAL STATEMENTS. 225 230 NATIONS FUNDS Nations Virginia Municipal Bond Fund STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
SHARES VALUE (000) (000) ------------------------------------------------------------- INVESTMENT COMPANIES -- 4.6% (Cost $1,448) 1,448 Nations Municipal Reserves#............ $ 1,448 ------- TOTAL INVESTMENTS (Cost $29,491*).............. 99.0% 31,029 ------- OTHER ASSETS AND LIABILITIES (NET)............ 1.0% Cash................................... $ 1 Interest receivable.................... 497 Payable for Fund shares redeemed....... (20) Investment advisory fee payable........ (7) Administration fee payable............. (5) Shareholder servicing and distribution fees payable......................... (9) Distributions payable.................. (95) Accrued Trustees' fees and expenses.... (26) Accrued expenses and other liabilities.......................... (16) ------- TOTAL OTHER ASSETS AND LIABILITIES (NET).................... 320 ------- NET ASSETS..................... 100.0% $31,349 ======= NET ASSETS CONSIST OF: Undistributed net investment income.... $ 71 Accumulated net realized loss on investments sold..................... (912) Net unrealized appreciation of investments.......................... 1,538 Paid-in capital........................ 30,652 ------- NET ASSETS............................. $31,349 =======
VALUE ------------------------------------------------------------- PRIMARY A SHARES: Net asset value, offering and redemption price per share ($19,709,491 / 2,004,145 shares outstanding)......................... $9.83 ===== INVESTOR A SHARES: Net asset value and redemption price per share ($1,015,577 / 103,379 shares outstanding).................. $9.82 ===== Maximum sales charge................... 4.75% Maximum offering price per share....... $10.31 INVESTOR B SHARES: Net asset value and offering price per share** ($10,570,226 / 1,074,879 shares outstanding).................. $9.83 ===== INVESTOR C SHARES: Net asset value and offering price per share** ($53,821 / 5,474 shares outstanding)......................... $9.83 =====
--------------- * Federal Income Tax Information: Net unrealized appreciation of $1,538 on investment securities was comprised of gross appreciation of $1,690 and gross depreciation of $152 for federal income tax purposes. At March 31, 2001, the aggregate cost of securities for federal income tax purposes was $29,491. ** The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. # Money market mutual fund registered under the Investment Company Act of 1940, as amended, and sub-advised by Banc of America Capital Management, Inc. Nations Virginia Municipal Bond Fund had the following insurance concentration greater than 10% at March 31, 2001 (as a percentage of net assets): AMBAC 10.01% Nations Virginia Municipal Bond Fund had the following industry concentration greater than 10% at March 31, 2001 (as a percentage of net assets): Water Revenue 24.13% Industrial Development Revenue/ Pollution Control Revenue 14.20% Hospital Revenue 13.05% SEE NOTES TO FINANCIAL STATEMENTS. 226 231 NATIONS FUNDS STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001 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. 227 232 NATIONS FUNDS STATEMENTS OF OPERATIONS For the period ended March 31, 2001 SHORT-TERM INTERMEDIATE MUNICIPAL MUNICIPAL MUNICIPAL INCOME BOND INCOME ------------------------------------------------ (IN THOUSANDS) INVESTMENT INCOME: Interest.................................................... $ 6,015 $ 57,699 $ 47,417 -------------- -------------- -------------- EXPENSES: Investment advisory fee..................................... 373 4,401 4,131 Administration fee.......................................... 274 2,421 1,817 Transfer agent fees......................................... 35 320 242 Custodian fees.............................................. 10 67 53 Legal and audit fees........................................ 37 74 74 Trustees' fees and expenses................................. 17 17 17 Interest expense............................................ 1 2 1 Registration and filing fees................................ 30 106 93 Printing expense............................................ 37 57 58 Other....................................................... 8 30 32 -------------- -------------- -------------- Subtotal................................................ 822 7,495 6,518 Shareholder servicing and distribution fees: Investor A Shares......................................... 52 46 91 Investor B Shares......................................... 54 26 87 Investor C Shares......................................... 13 5 13 -------------- -------------- -------------- Total expenses.......................................... 941 7,572 6,709 Fees waived and/or expenses reimbursed by investment advisor, administrator, and/or distributor................ (322) (1,981) (1,567) -------------- -------------- -------------- Net expenses............................................ 619 5,591 5,142 -------------- -------------- -------------- NET INVESTMENT INCOME/(LOSS)................................ 5,396 52,108 42,275 -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on investments..................... (149) (857) 4,250 Net change in unrealized appreciation/(depreciation) of investments............................................... 2,564 45,131 43,979 -------------- -------------- -------------- Net realized and unrealized gain/(loss) on investments...... 2,415 44,274 48,229 -------------- -------------- -------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 7,811 $ 96,382 $ 90,504 ============== ============== ==============
--------------- * Amount represents less than $500. (a) Kansas Municipal Income commenced operations on July 17, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 228 233 NATIONS FUNDS STATEMENTS OF OPERATIONS (CONTINUED) FLORIDA GEORGIA MARYLAND CALIFORNIA INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA KANSAS INTERMEDIATE MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND BOND INCOME(a) BOND ------------------------------------------------------------------------------------------------------------------------ $ 10,467 $ 12,047 $ 7,824 $ 7,508 $ 1,469 $ 4,285 $ 10,334 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 927 903 706 566 134 424 790 408 497 310 311 59 186 435 54 65 41 41 8 26 58 13 15 10 10 2 6 14 67 58 54 54 49 54 56 17 17 17 17 17 12 17 1 1 --* --* --* 3 -- 4 3 2 2 1 52 3 14 21 21 18 14 15 22 17 17 10 12 5 11 18 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 1,522 1,597 1,171 1,031 289 789 1,413 378 19 116 30 5 2 42 48 42 115 67 98 2 54 6 1 --* 8 1 -- 3 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 1,954 1,659 1,402 1,136 393 793 1,512 (437) (464) (324) (324) (129) (277) (425) -------------- -------------- -------------- -------------- -------------- -------------- -------------- 1,517 1,195 1,078 812 264 516 1,087 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 8,950 10,852 6,746 6,696 1,205 3,769 9,247 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 1,117 172 405 108 (7) 182 356 7,388 7,500 6,378 5,250 1,404 4,390 7,548 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 8,505 7,672 6,783 5,358 1,397 4,572 7,904 -------------- -------------- -------------- -------------- -------------- -------------- -------------- $ 17,455 $ 18,524 $ 13,529 $ 12,054 $ 2,602 $ 8,341 $ 17,151 ============== ============== ============== ============== ============== ============== ============== MARYLAND MUNICIPAL BOND ------------------- $ 1,962 -------------- 183 81 11 4 49 17 --* 1 17 5 -------------- 368 5 161 2 -------------- 536 (147) -------------- 389 -------------- 1,573 -------------- (14) 2,065 -------------- 2,051 -------------- $ 3,624 ==============
SEE NOTES TO FINANCIAL STATEMENTS. 229 234 NATIONS FUNDS STATEMENTS OF OPERATIONS (CONTINUED) For the period ended March 31, 2001 NORTH CAROLINA SOUTH CAROLINA INTERMEDIATE NORTH CAROLINA INTERMEDIATE MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND ----------------------------------------------- (IN THOUSANDS) INVESTMENT INCOME: Interest.................................................... $ 10,078 $ 2,166 $ 12,858 -------------- -------------- -------------- EXPENSES: Investment advisory fee..................................... 773 198 941 Administration fee.......................................... 425 87 518 Transfer agent fees......................................... 56 11 68 Custodian fees.............................................. 13 4 15 Legal and audit fees........................................ 56 50 58 Trustees' fees and expenses................................. 17 17 17 Interest expense............................................ --* --* 2 Registration and filing fees................................ 2 1 4 Printing expense............................................ 21 15 22 Other....................................................... 16 5 16 -------------- -------------- -------------- Subtotal................................................ 1,379 388 1,661 Shareholder servicing and distribution fees: Investor A Shares......................................... 26 5 40 Investor B Shares......................................... 52 180 71 Investor C Shares......................................... 1 1 21 -------------- -------------- -------------- Total expenses.......................................... 1,458 574 1,793 Fees waived and/or expenses reimbursed by investment advisor, administrator, and/or distributor................ (414) (150) (482) -------------- -------------- -------------- Net expenses............................................ 1,044 424 1,311 -------------- -------------- -------------- NET INVESTMENT INCOME/(LOSS)................................ 9,034 1,742 11,547 -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on investments..................... (693) (11) (465) Net change in unrealized appreciation/(depreciation) of investments............................................... 7,641 1,916 8,838 -------------- -------------- -------------- Net realized and unrealized gain/(loss) on investments...... 6,948 1,905 8,373 -------------- -------------- -------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 15,982 $ 3,647 $ 19,920 ============== ============== ==============
--------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 230 235 NATIONS FUNDS STATEMENTS OF OPERATIONS (CONTINUED) TENNESSEE TEXAS VIRGINIA SOUTH CAROLINA INTERMEDIATE TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND BOND BOND BOND BOND BOND BOND ------------------------------------------------------------------------------------------------------------------------ $ 1,988 $ 2,520 $ 567 $ 16,641 $ 763 $ 15,589 $ 1,650 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 181 191 51 1,208 68 1,190 144 80 105 23 665 30 655 63 10 14 3 88 4 87 9 3 4 1 20 2 19 3 49 49 48 61 48 61 49 17 17 17 17 17 17 17 1 --* --* 5 --* -- -- 1 1 --* 7 --* 6 1 15 15 14 22 13 23 17 3 6 3 16 3 20 6 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 360 402 160 2,109 185 2,078 309 3 20 4 10 1 111 2 86 16 38 20 53 88 105 --* --* 2 --* 1 7 --* -------------- -------------- -------------- -------------- -------------- -------------- -------------- 449 438 204 2,139 240 2,284 416 (143) (164) (99) (593) (104) (590) (136) -------------- -------------- -------------- -------------- -------------- -------------- -------------- 306 274 105 1,546 136 1,694 280 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 1,682 2,246 462 15,095 627 13,895 1,370 -------------- -------------- -------------- -------------- -------------- -------------- -------------- (107) 16 (3) (912) 92 (33) (201) 2,101 2,065 555 10,896 600 11,747 1,357 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 1,994 2,081 552 9,984 692 11,714 1,156 -------------- -------------- -------------- -------------- -------------- -------------- -------------- $ 3,676 $ 4,327 $ 1,014 $ 25,079 $ 1,319 $ 25,609 $ 2,526 ============== ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 231 236 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS SHORT-TERM INTERMEDIATE MUNICIPAL INCOME MUNICIPAL BOND ------------------------------- ------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 ---------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)......................... $ 5,396 $ 4,772 $ 52,108 $ 42,143 Net realized gain/(loss) on investments.............. (149) (95) (857) (2,370) Net change in unrealized appreciation/(depreciation) of investments..................................... 2,564 (1,712) 45,131 (43,336) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations......................................... 7,811 2,965 96,382 (3,563) Distributions to shareholders from net investment income: Primary A Shares................................... (4,292) (3,188) (51,156) (41,086) Investor A Shares.................................. (871) (1,171) (835) (888) Investor B Shares.................................. (186) (343) (96) (111) Investor C Shares.................................. (47) (71) (20) (59) Distributions to shareholders from net realized gains on investments: Primary A Shares................................... -- -- -- (1,405) Investor A Shares.................................. -- -- -- (27) Investor B Shares.................................. -- -- -- (5) Investor C Shares.................................. -- -- -- (3) Net increase/(decrease) in net assets from Fund share transactions....................................... 5,629 (4,060) 302,645 (18,416) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets................ 8,044 (5,868) 346,920 (65,563) NET ASSETS: Beginning of period.................................. 125,453 131,321 873,020 938,583 -------------- -------------- -------------- -------------- End of period........................................ $ 133,497 $ 125,453 $ 1,219,940 $ 873,020 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period............................................. $ 50 $ 39 $ 1,190 $ 792 ============== ============== ============== ==============
--------------- (a) Represents financial information from March 1, 1999 for the Pacific Horizon California Municipal Bond Fund, which was reorganized into California Municipal Bond on May 21, 1999. SEE NOTES TO FINANCIAL STATEMENTS. 232 237 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) CALIFORNIA FLORIDA INTERMEDIATE MUNICIPAL INCOME MUNICIPAL BOND MUNICIPAL BOND ------------------------------------------------ ------------------------------- --------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 5/14/99(a) 3/31/01 3/31/00 ------------------------------------------------------------------------------------------------------------------------ $ 42,275 $ 31,612 $ 8,950 $ 8,104 $ 1,950 $ 10,852 $ 11,245 4,250 (5,891) 1,117 (597) 1,093 172 (1,029) 43,979 (40,480) 7,388 (8,917) (3,924) 7,500 (9,513) -------------- -------------- -------------- -------------- -------------- -------------- -------------- 90,504 (14,759) 17,455 (1,410) (881) 18,524 703 (40,064) (29,366) (1,448) (928) -- (10,331) (10,463) (1,795) (1,715) (7,146) (7,051) (1,930) (354) (553) (363) (460) (191) (119) (20) (162) (186) (53) (75) (21) (6) -- (5) (42) -- (710) (78) (47) -- -- -- -- (29) (359) (486) -- -- -- -- (15) (11) (10) -- -- -- -- (2) (1) (1) -- -- -- 283,421 (34,283) 1,497 (14,809) (9,699) 20,534 (21,123) -------------- -------------- -------------- -------------- -------------- -------------- -------------- 331,650 (81,414) 9,697 (24,867) (12,530) 28,206 (31,664) 598,800 680,214 183,790 208,657 221,187 222,155 253,819 -------------- -------------- -------------- -------------- -------------- -------------- -------------- $ 930,450 $ 598,800 $ 193,487 $ 183,790 $ 208,657 $ 250,361 $ 222,155 ============== ============== ============== ============== ============== ============== ============== $ 1,128 $ 931 $ 457 $ 313 $ 292 $ 22 $ 13 ============== ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 233 238 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FLORIDA GEORGIA INTERMEDIATE MUNICIPAL BOND MUNICIPAL BOND ------------------------------- ------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 ---------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)......................... $ 6,746 $ 7,103 $ 6,696 $ 6,917 Net realized gain/(loss) on investments.............. 405 376 108 (1,090) Net change in unrealized appreciation/(depreciation) of investments..................................... 6,378 (7,575) 5,250 (6,288) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations......................................... 13,529 (96) 12,054 (461) Distributions to shareholders from net investment income: Primary A Shares................................... (4,107) (3,838) (5,867) (5,865) Investor A Shares.................................. (2,183) (2,706) (546) (736) Investor B Shares.................................. (455) (557) (255) (286) Investor C Shares.................................. (1) (1) (28) (31) Distributions to shareholders from net realized gains on investments: Primary A Shares................................... (96) -- -- (166) Investor A Shares.................................. (54) -- -- (20) Investor B Shares.................................. (13) -- -- (10) Investor C Shares.................................. --* -- -- (1) Net increase/(decrease) in net assets from Fund share transactions....................................... 17 (9,231) (553) (10,542) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets................ 6,637 (16,429) 4,805 (18,118) NET ASSETS: Beginning of period.................................. 141,599 158,028 142,768 160,886 -------------- -------------- -------------- -------------- End of period........................................ $ 148,236 $ 141,599 $ 147,573 $ 142,768 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period............................................. $ 224 $ 139 $ 162 $ 96 ============== ============== ============== ==============
--------------- * Amount represents less than $500. (a) Kansas Municipal Income commenced operations on July 17, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 234 239 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) KANSAS GEORGIA MUNICIPAL MARYLAND INTERMEDIATE MARYLAND MUNICIPAL BOND INCOME MUNICIPAL BOND MUNICIPAL BOND ------------- ------------------------------- ------------------------------- --------------------------------- YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 (a) 3/31/01 3/31/00 3/31/01 3/31/00 ------------------------------------------------------------------------------------------------------------------------ $ 1,205 $ 1,016 $ 3,769 $ 9,247 $ 9,187 $ 1,573 $ 1,416 (7) (740) 182 356 (1,697) (14) (706) 1,404 (648) 4,390 7,548 (7,384) 2,065 (963) -------------- -------------- -------------- -------------- -------------- -------------- -------------- 2,602 (372) 8,341 17,151 106 3,624 (253) (736) (503) (3,725) (8,276) (8,207) (866) (774) (84) (97) (39) (757) (738) (93) (74) (383) (414) (5) (202) (224) (606) (562) (2) --* -- (11) (17) (8) (6) -- -- (16) -- (83) -- (9) -- -- --* -- (8) -- (1) -- -- --* -- (3) -- (8) -- -- -- -- (1) -- --* 1,774 2,967 107,578 1,629 (6,228) 2,145 2,392 -------------- -------------- -------------- -------------- -------------- -------------- -------------- 3,171 1,581 112,134 9,534 (15,403) 4,196 705 25,262 23,681 -- 191,669 207,072 35,616 34,911 -------------- -------------- -------------- -------------- -------------- -------------- -------------- $ 28,433 $ 25,262 $ 112,134 $ 201,203 $ 191,669 $ 39,812 $ 35,616 ============== ============== ============== ============== ============== ============== ============== $ 74 $ 49 $ 79 $ 48 $ -- $ 52 $ 13 ============== ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 235 240 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
NORTH CAROLINA INTERMEDIATE NORTH CAROLINA MUNICIPAL BOND MUNICIPAL BOND --------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 --------------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)......................... $ 9,034 $ 9,220 $ 1,742 $ 1,750 Net realized gain/(loss) on investments.............. (693) (948) (11) (723) Net change in unrealized appreciation/(depreciation) of investments..................................... 7,641 (8,403) 1,916 (1,801) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations......................................... 15,982 (131) 3,647 (774) Distributions to shareholders from net investment income: Primary A Shares................................... (8,383) (8,560) (942) (829) Investor A Shares.................................. (457) (434) (96) (52) Investor B Shares.................................. (191) (222) (702) (868) Investor C Shares.................................. (3) (3) (2) (1) Distributions to shareholders from net realized gains on investments: Primary A Shares................................... -- (288) -- -- Investor A Shares.................................. -- (15) -- -- Investor B Shares.................................. -- (10) -- -- Investor C Shares.................................. -- --* -- -- Net increase/(decrease) in net assets from Fund share transactions....................................... (1,784) (9,980) 324 120 -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets................ 5,164 (19,643) 2,229 (2,404) NET ASSETS: Beginning of period.................................. 190,634 210,277 39,576 41,980 -------------- -------------- -------------- -------------- End of period........................................ $ 195,798 $ 190,634 $ 41,805 $ 39,576 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period............................................. $ 323 $ 291 $ 28 $ 21 ============== ============== ============== ==============
--------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 236 241 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
SOUTH CAROLINA INTERMEDIATE SOUTH CAROLINA TENNESSEE INTERMEDIATE MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND ------------------------------- ------------------------------- ------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 3/31/01 3/31/00 ------------------------------------------------------------------------------------------------------- $ 11,547 $ 12,258 $ 1,682 $ 1,386 $ 2,246 $ 2,355 (465) 101 (107) (567) 16 (368) 8,838 (12,805) 2,101 (927) 2,065 (2,446) -------------- -------------- -------------- -------------- -------------- -------------- 19,920 (446) 3,676 (108) 4,327 (459) (10,425) (10,924) (1,300) (957) (1,828) (1,877) (757) (886) (47) (50) (358) (375) (281) (329) (333) (377) (59) (102) (84) (118) (2) (3) --* (1) -- (331) -- -- -- (40) -- (27) -- -- -- (8) -- (12) -- -- -- (3) -- (4) -- -- -- --* 4,503 (24,176) (5,351) 15,365 (1,090) (4,911) -------------- -------------- -------------- -------------- -------------- -------------- 12,876 (37,253) (3,357) 13,870 992 (7,776) 232,315 269,568 38,705 24,835 47,332 55,108 -------------- -------------- -------------- -------------- -------------- -------------- $ 245,191 $ 232,315 $ 35,348 $ 38,705 $ 48,324 $ 47,332 ============== ============== ============== ============== ============== ============== $ 218 $ 213 $ 20 $ 14 $ 11 $ 3 ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 237 242 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
TENNESSEE TEXAS INTERMEDIATE MUNICIPAL BOND MUNICIPAL BOND --------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 --------------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)......................... $ 462 $ 470 $ 15,095 $ 17,833 Net realized gain/(loss) on investments.............. (3) (63) (912) (3,353) Net change in unrealized appreciation/(depreciation) of investments..................................... 555 (607) 10,896 (14,956) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations......................................... 1,014 (200) 25,079 (476) Distributions to shareholders from net investment income: Primary A Shares................................... (232) (262) (14,818) (17,447) Investor A Shares.................................. (75) (37) (195) (304) Investor B Shares.................................. (149) (168) (82) (82) Investor C Shares.................................. (6) (4) --* --* Distributions to shareholders from net realized gains on investments: Primary A Shares................................... -- -- -- (71) Investor A Shares.................................. -- -- -- (1) Investor B Shares.................................. -- -- -- (1) Investor C Shares.................................. -- -- -- --* Net increase/(decrease) in net assets from Fund share transactions....................................... (852) 254 (50,947) (47,692) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets................ (300) (417) (40,963) (66,074) NET ASSETS: Beginning of period.................................. 10,615 11,032 334,406 400,480 -------------- -------------- -------------- -------------- End of period........................................ $ 10,315 $ 10,615 $ 293,443 $ 334,406 ============== ============== ============== ============== Undistributed net investment income/(distributions in excess of net investment income) at end of period............................................. $ 29 $ 22 $ 299 $ 238 ============== ============== ============== ==============
--------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 238 243 NATIONS FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
TEXAS VIRGINIA INTERMEDIATE VIRGINIA MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND ------------------------------- ------------------------------- ------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 3/31/01 3/31/00 ------------------------------------------------------------------------------------------------------- $ 627 $ 681 $ 13,895 $ 13,102 $ 1,370 $ 1,221 92 (244) (33) (2,152) (201) (171) 600 (636) 11,747 (10,427) 1,357 (1,345) -------------- -------------- -------------- -------------- -------------- -------------- 1,319 (199) 25,609 523 2,526 (295) (393) (411) (11,539) (10,494) (907) (710) (16) (17) (1,999) (2,216) (31) (36) (215) (251) (330) (357) (432) (475) (3) (3) (27) (31) --* --* -- -- -- (22) -- -- -- -- -- (5) -- -- -- -- -- (1) -- -- -- -- -- --* -- -- (736) (1,971) 9,165 2,368 2,614 1,636 -------------- -------------- -------------- -------------- -------------- -------------- (44) (2,852) 20,879 (10,235) 3,770 120 13,854 16,706 285,193 295,428 27,579 27,459 -------------- -------------- -------------- -------------- -------------- -------------- $ 13,810 $ 13,854 $ 306,072 $ 285,193 $ 31,349 $ 27,579 ============== ============== ============== ============== ============== ============== $ 39 $ 47 $ 138 $ 139 $ 71 $ 69 ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 239 244 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY
SHORT-TERM MUNICIPAL INCOME YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 4,691 $ 47,007 6,609 $ 65,869 Issued as reinvestment of dividends....................... 4 39 2 27 Redeemed.................................................. (3,834) (38,338) (4,936) (49,439) ------ -------- ------ -------- Net increase/(decrease)................................... 861 $ 8,708 1,675 $ 16,457 ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 646 $ 6,508 2,439 $ 24,297 Issued as reinvestment of dividends....................... 61 607 70 804 Redeemed.................................................. (633) (6,315) (3,799) (37,957) ------ -------- ------ -------- Net increase/(decrease)................................... 74 $ 800 (1,290) $(12,856) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... -- $ -- 2 $ -- Issued as reinvestment of dividends....................... 17 171 27 284 Redeemed.................................................. (383) (3,826) (701) (7,019) ------ -------- ------ -------- Net increase/(decrease)................................... (366) $ (3,655) (672) $ (6,735) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 128 $ 1,275 55 $ 541 Issued as reinvestment of dividends....................... 4 42 6 68 Redeemed.................................................. (155) (1,541) (154) (1,535) ------ -------- ------ -------- Net increase/(decrease)................................... (23) $ (224) (93) $ (926) ====== ======== ====== ======== Total net increase/(decrease)............................. 546 $ 5,629 (380) $ (4,060) ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 240 245 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 -------------------- -------------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 20,448 $ 202,560 23,175 $ 228,548 Issued in exchange for: Assets of Boatmen's Trust Company Intermediate Tax-Exempt Bond Fund (Note 8)......................... 20,653 204,013 -- -- Assets of Bank IV Kansas U.S. Tax Exempt Bond Fund (Note 8).................................................... 2,481 24,319 -- -- Assets of BCA High Grade Tax Exempt Bond Fund (Note 8).................................................... 12,824 124,078 -- -- Issued as reinvestment of dividends....................... 86 853 91 973 Redeemed.................................................. (25,614) (253,151) (25,494) (252,077) ------- --------- ------- --------- Net increase/(decrease)................................... 30,878 $ 302,672 (2,228) $ (22,556) ======= ========= ======= ========= INVESTOR A SHARES: Sold...................................................... 872 $ 8,704 2,325 $ 23,295 Issued as reinvestment of dividends....................... 32 318 37 400 Redeemed.................................................. (885) (8,755) (1,907) (19,018) ------- --------- ------- --------- Net increase/(decrease)................................... 19 $ 267 455 $ 4,677 ======= ========= ======= ========= INVESTOR B SHARES: Sold...................................................... 3 $ 30 82 $ 820 Issued as reinvestment of dividends....................... 4 44 6 68 Redeemed.................................................. (34) (336) (57) (558) ------- --------- ------- --------- Net increase/(decrease)................................... (27) $ (262) 31 $ 330 ======= ========= ======= ========= INVESTOR C SHARES: Sold...................................................... 2 $ 21 65 $ 664 Issued as reinvestment of dividends....................... 2 17 5 59 Redeemed.................................................. (7) (70) (162) (1,590) ------- --------- ------- --------- Net increase/(decrease)................................... (3) $ (32) (92) $ (867) ======= ========= ======= ========= Total net increase/(decrease)............................. 30,867 $ 302,645 (1,834) $ (18,416) ======= ========= ======= =========
SEE NOTES TO FINANCIAL STATEMENTS. 241 246 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
MUNICIPAL INCOME YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 -------------------- -------------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 14,464 $ 157,002 10,052 $ 109,003 Issued in exchange for assets of Boatmen's Trust Company Tax Exempt Bond Fund (Note 8)........................... 30,910 319,789 -- -- Issued as reinvestment of dividends....................... 34 368 35 410 Redeemed.................................................. (17,964) (194,301) (13,758) (148,807) ------- --------- ------- --------- Net increase/(decrease)................................... 27,444 $ 282,858 (3,671) $ (39,394) ======= ========= ======= ========= INVESTOR A SHARES: Sold...................................................... 5,113 $ 55,544 5,826 $ 63,453 Issued in exchange for A Shares of Pacific Horizon National Bond Fund (Note 8)............................. -- -- 1,684 19,123 Issued as reinvestment of dividends....................... 108 1,169 98 1,136 Redeemed.................................................. (5,119) (55,775) (6,738) (73,931) ------- --------- ------- --------- Net increase/(decrease)................................... 102 $ 938 870 $ 9,781 ======= ========= ======= ========= INVESTOR B SHARES: Sold...................................................... 59 $ 645 75 $ 820 Issued as reinvestment of dividends....................... 17 186 24 278 Redeemed.................................................. (97) (1,058) (479) (5,194) ------- --------- ------- --------- Net increase/(decrease)................................... (21) $ (227) (380) $ (4,096) ======= ========= ======= ========= INVESTOR C SHARES: Sold...................................................... 9 $ 95 41 $ 453 Issued as reinvestment of dividends....................... 4 43 6 70 Redeemed.................................................. (27) (286) (101) (1,097) ------- --------- ------- --------- Net increase/(decrease)................................... (14) $ (148) (54) $ (574) ======= ========= ======= ========= Total net increase/(decrease)............................. 27,511 $ 283,421 (3,235) $ (34,283) ======= ========= ======= =========
SEE NOTES TO FINANCIAL STATEMENTS. 242 247 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
CALIFORNIA MUNICIPAL BOND YEAR ENDED PERIOD ENDED PERIOD ENDED MARCH 31, 2001 MARCH 31, 2000 MAY 14, 1999(a) ------------------ ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS ------------------------------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES:+ Sold........................................ 3,382 $ 24,631 3,709 $ 27,884 -- $ -- Issued as reinvestment of dividends......... 17 125 24 161 -- -- Redeemed.................................... (1,434) (10,511) (697) (6,294) -- -- ------ -------- ------ -------- ------ -------- Net increase/(decrease)..................... 1,965 $ 14,245 3,036 $ 21,751 -- $ -- ====== ======== ====== ======== ====== ======== INVESTOR A SHARES: Sold........................................ 3,156 $ 23,416 1,406 $ 11,864 904 $ 6,861 Issued as reinvestment of dividends......... 590 4,331 629 4,499 130 989 Redeemed.................................... (5,829) (42,720) (7,400) (54,760) (2,361) (17,923) ------ -------- ------ -------- ------ -------- Net increase/(decrease)..................... (2,083) $(14,973) (5,365) $(38,397) (1,327) $(10,073) ====== ======== ====== ======== ====== ======== INVESTOR B SHARES: Sold........................................ 244 $ 1,793 402 $ 2,873 98 $ 744 Issued as reinvestment of dividends......... 19 141 12 82 2 12 Redeemed.................................... (84) (620) (194) (1,382) (50) (382) ------ -------- ------ -------- ------ -------- Net increase/(decrease)..................... 179 $ 1,314 220 $ 1,573 50 $ 374 ====== ======== ====== ======== ====== ======== INVESTOR C SHARES:+ Sold........................................ 123 $ 901 36 $ 260 -- $ -- Issued as reinvestment of dividends......... 2 14 1 6 -- -- Redeemed.................................... (1) (4) --* (2) -- -- ------ -------- ------ -------- ------ -------- Net increase/(decrease)..................... 124 $ 911 37 $ 264 -- $ -- ====== ======== ====== ======== ====== ======== Total net increase/(decrease)............... 185 $ 1,497 (2,072) $(14,809) (1,277) $ (9,699) ====== ======== ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. + California Municipal Bond Primary A and Investor C Shares commenced operations on May 21, 1999. (a) Represents financial information from March 1, 1999 for the Pacific Horizon California Municipal Bond Fund, which was reorganized into California Municipal Bond on May 21, 1999. SEE NOTES TO FINANCIAL STATEMENTS. 243 248 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
FLORIDA INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 21, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 6,568 $ 69,039 4,567 $ 47,567 Issued as reinvestment of dividends....................... 5 45 5 62 Redeemed.................................................. (4,187) (43,648) (6,217) (64,778) ------ -------- ------ -------- Net increase/(decrease)................................... 2,386 $ 25,436 (1,645) $(17,149) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 302 $ 3,169 564 $ 5,837 Issued as reinvestment of dividends....................... 24 251 37 418 Redeemed.................................................. (767) (8,021) (847) (8,755) ------ -------- ------ -------- Net increase/(decrease)................................... (441) $ (4,601) (246) $ (2,500) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 45 $ 481 43 $ 450 Issued as reinvestment of dividends....................... 11 108 11 124 Redeemed.................................................. (90) (941) (77) (812) ------ -------- ------ -------- Net increase/(decrease)................................... (34) $ (352) (23) $ (238) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 5 $ 52 24 $ 250 Issued as reinvestment of dividends....................... --* 5 2 22 Redeemed.................................................. (1) (6) (146) (1,508) ------ -------- ------ -------- Net increase/(decrease)................................... 4 $ 51 (120) $ (1,236) ====== ======== ====== ======== Total net increase/(decrease)............................. 1,915 $ 20,534 (2,034) $(21,123) ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 244 249 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
FLORIDA MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,650 $ 25,710 3,531 $ 33,504 Issued as reinvestment of dividends....................... 11 110 13 136 Redeemed.................................................. (1,739) (16,785) (2,949) (28,008) ------ -------- ------ -------- Net increase/(decrease)................................... 922 $ 9,035 595 $ 5,632 ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 162 $ 1,571 424 $ 3,903 Issued as reinvestment of dividends....................... 185 1,800 212 2,187 Redeemed.................................................. (1,024) (9,917) (1,994) (19,023) ------ -------- ------ -------- Net increase/(decrease)................................... (677) $ (6,546) (1,358) $(12,933) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 85 $ 826 192 $ 1,831 Issued as reinvestment of dividends....................... 22 212 26 268 Redeemed.................................................. (367) (3,549) (420) (4,030) ------ -------- ------ -------- Net increase/(decrease)................................... (260) $ (2,511) (202) $ (1,931) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 5 $ 48 --* $ --* Issued as reinvestment of dividends....................... --* 1 --* 1 Redeemed.................................................. (1) (10) -- -- ------ -------- ------ -------- Net increase/(decrease)................................... 4 $ 39 -- $ 1 ====== ======== ====== ======== Total net increase/(decrease)............................. (11) $ 17 (965) $ (9,231) ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 245 250 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
GEORGIA INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------- ------------------- SHARES DOLLARS SHARES DOLLARS --------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,378 $ 25,106 3,074 $ 32,266 Issued as reinvestment of dividends....................... 1 12 2 20 Redeemed.................................................. (2,246) (23,542) (3,437) (36,098) ------ -------- ------ -------- Net increase/(decrease)................................... 133 $ 1,576 (361) $ (3,812) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 156 $ 1,665 153 $ 1,558 Issued as reinvestment of dividends....................... 42 441 57 644 Redeemed.................................................. (372) (3,917) (737) (7,745) ------ -------- ------ -------- Net increase/(decrease)................................... (174) $ (1,811) (527) $ (5,543) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 14 $ 153 40 $ 420 Issued as reinvestment of dividends....................... 9 87 10 117 Redeemed.................................................. (51) (536) (156) (1,645) ------ -------- ------ -------- Net increase/(decrease)................................... (28) $ (296) (106) $ (1,108) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... --* $ --* 2 $ 19 Issued as reinvestment of dividends....................... 3 28 2 29 Redeemed.................................................. (5) (50) (12) (127) ------ -------- ------ -------- Net increase/(decrease)................................... (2) $ (22) (8) $ (79) ====== ======== ====== ======== Total net increase/(decrease)............................. (71) $ (553) (1,002) $(10,542) ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 246 251 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
GEORGIA MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 638 $ 6,134 1,360 $12,830 Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. (270) (2,608) (950) (8,918) ---- ------- ----- ------- Net increase/(decrease)................................... 368 $ 3,526 410 $ 3,912 ==== ======= ===== ======= INVESTOR A SHARES: Sold...................................................... 67 $ 662 7 $ 57 Issued as reinvestment of dividends....................... 8 81 9 95 Redeemed.................................................. (91) (896) (80) (773) ---- ------- ----- ------- Net increase/(decrease)................................... (16) $ (153) (64) $ (621) ==== ======= ===== ======= INVESTOR B SHARES: Sold...................................................... 24 $ 227 158 $ 1,533 Issued as reinvestment of dividends....................... 21 207 23 240 Redeemed.................................................. (208) (2,028) (224) (2,153) ---- ------- ----- ------- Net increase/(decrease)................................... (163) $(1,594) (43) $ (380) ==== ======= ===== ======= INVESTOR C SHARES: Sold...................................................... --* $ --* 6 $ 58 Issued as reinvestment of dividends....................... --* 1 --* --* Redeemed.................................................. (1) (6) --* (2) ---- ------- ----- ------- Net increase/(decrease)................................... (1) $ (5) 6 $ 56 ==== ======= ===== ======= Total net increase/(decrease)............................. 188 $ 1,774 309 $ 2,967 ==== ======= ===== =======
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 247 252 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
KANSAS MUNICIPAL INCOME PERIOD ENDED MARCH 31, 2001 ------------------- SHARES DOLLARS ------------------- (IN THOUSANDS) PRIMARY A SHARES:+ Sold...................................................... 12,800 $ 10,035 Issued in exchange for assets of Bank of America Common Trust Kansas Tax Exempt Fund (Note 8)............ 121 118,623 Issued as reinvestment of dividends....................... 13 130 Redeemed.................................................. (2,166) (22,067) ------ -------- Net increase/(decrease)................................... 10,768 $106,721 ====== ======== INVESTOR A SHARES:+ Sold...................................................... 220 $ 2,210 Issued as reinvestment of dividends....................... 2 22 Redeemed.................................................. (160) (1,630) ------ -------- Net increase/(decrease)................................... 62 $ 602 ====== ======== INVESTOR B SHARES:+ Sold...................................................... 25 $ 250 Issued as reinvestment of dividends....................... 1 5 Redeemed.................................................. -- --* ------ -------- Net increase/(decrease)................................... 26 $ 255 ====== ======== Total net increase/(decrease)............................. 10,856 $107,578 ====== ========
--------------- + Kansas Municipal Income Primary A, Investor A and Investor B Shares commenced operations on July 17, 2000, August 14, 2000 and August 29, 2000, respectively. * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 248 253 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
MARYLAND INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,696 $ 28,779 3,481 $ 37,328 Issued as reinvestment of dividends....................... 9 96 10 117 Redeemed.................................................. (2,495) (26,799) (4,062) (43,475) ------ -------- ------ -------- Net increase/(decrease)................................... 210 $ 2,076 (571) $ (6,030) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 252 $ 2,681 268 $ 2,813 Issued as reinvestment of dividends....................... 52 559 46 538 Redeemed.................................................. (271) (2,892) (309) (3,297) ------ -------- ------ -------- Net increase/(decrease)................................... 33 $ 348 5 $ 54 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 14 $ 152 70 $ 745 Issued as reinvestment of dividends....................... 15 162 16 184 Redeemed.................................................. (99) (1,063) (92) (978) ------ -------- ------ -------- Net increase/(decrease)................................... (70) $ (749) (6) $ (49) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 10 $ 113 --* $ 3 Issued as reinvestment of dividends....................... 1 9 1 14 Redeemed.................................................. (15) (168) (20) (220) ------ -------- ------ -------- Net increase/(decrease)................................... (4) $ (46) (19) $ (203) ====== ======== ====== ======== Total net increase/(decrease)............................. 169 $ 1,629 (591) $ (6,228) ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 249 254 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
MARYLAND MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ----------------- ----------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 508 $ 4,964 660 $ 6,376 Issued as reinvestment of dividends....................... --* 2 --* 3 Redeemed.................................................. (365) (3,531) (520) (4,995) ---- ------- ---- ------- Net increase/(decrease)................................... 143 $ 1,435 140 $ 1,384 ==== ======= ==== ======= INVESTOR A SHARES: Sold...................................................... 90 $ 884 24 $ 225 Issued as reinvestment of dividends....................... 8 75 6 59 Redeemed.................................................. (19) (184) (18) (171) ---- ------- ---- ------- Net increase/(decrease)................................... 79 $ 775 12 $ 113 ==== ======= ==== ======= INVESTOR B SHARES: Sold...................................................... 200 $ 1,957 318 $ 3,045 Issued as reinvestment of dividends....................... 45 443 41 424 Redeemed.................................................. (257) (2,513) (291) (2,790) ---- ------- ---- ------- Net increase/(decrease)................................... (12) $ (113) 68 $ 679 ==== ======= ==== ======= INVESTOR C SHARES: Sold...................................................... 4 $ 40 22 $ 210 Issued as reinvestment of dividends....................... 1 8 --* 6 Redeemed.................................................. -- --* -- -- ---- ------- ---- ------- Net increase/(decrease)................................... 5 $ 48 22 $ 216 ==== ======= ==== ======= Total net increase/(decrease)............................. 215 $ 2,145 242 $ 2,392 ==== ======= ==== =======
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 250 255 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,754 $ 28,334 4,170 $ 42,798 Issued as reinvestment of dividends....................... 17 173 27 295 Redeemed.................................................. (2,951) (30,411) (5,060) (51,949) ------ -------- ------ -------- Net increase/(decrease)................................... (180) $ (1,904) (863) $ (8,856) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 239 $ 2,454 102 $ 1,032 Issued as reinvestment of dividends....................... 30 308 32 359 Redeemed.................................................. (241) (2,499) (129) (1,337) ------ -------- ------ -------- Net increase/(decrease)................................... 28 $ 263 5 $ 54 ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 14 $ 151 10 $ 88 Issued as reinvestment of dividends....................... 14 144 15 172 Redeemed.................................................. (41) (427) (138) (1,421) ------ -------- ------ -------- Net increase/(decrease)................................... (13) $ (132) (113) $ (1,161) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 2 $ 15 --* $ --* Issued as reinvestment of dividends....................... --* 3 --* 3 Redeemed.................................................. (3) (29) (2) (20) ------ -------- ------ -------- Net increase/(decrease)................................... (1) $ (11) (2) $ (17) ====== ======== ====== ======== Total net increase/(decrease)............................. (166) $ (1,784) (973) $ (9,980) ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 251 256 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
NORTH CAROLINA MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------- SHARES DOLLARS SHARES DOLLARS -------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 685 $ 6,614 1,951 $ 18,576 Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. (355) (3,397) (1,699) (16,015) ---- ------- ------ -------- Net increase/(decrease)................................... 330 $ 3,217 252 $ 2,561 ==== ======= ====== ======== INVESTOR A SHARES: Sold...................................................... 131 $ 1,274 96 $ 907 Issued as reinvestment of dividends....................... 8 75 3 37 Redeemed.................................................. (21) (203) (41) (392) ---- ------- ------ -------- Net increase/(decrease)................................... 118 $ 1,146 58 $ 552 ==== ======= ====== ======== INVESTOR B SHARES: Sold...................................................... 89 $ 874 209 $ 1,979 Issued as reinvestment of dividends....................... 51 494 63 655 Redeemed.................................................. (564) (5,438) (596) (5,677) ---- ------- ------ -------- Net increase/(decrease)................................... (424) $(4,070) (324) $ (3,043) ==== ======= ====== ======== INVESTOR C SHARES: Sold...................................................... 3 $ 29 5 $ 50 Issued as reinvestment of dividends....................... --* 2 --* --* Redeemed.................................................. -- --* --* --* ---- ------- ------ -------- Net increase/(decrease)................................... 3 $ 31 5 $ 50 ==== ======= ====== ======== Total net increase/(decrease)............................. 27 $ 324 (9) $ 120 ==== ======= ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 252 257 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------- SHARES DOLLARS SHARES DOLLARS -------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 3,272 $33,974 5,584 $ 57,593 Issued as reinvestment of dividends....................... 8 80 12 121 Redeemed.................................................. (2,787) (28,918) (7,813) (80,572) ------ ------- ------ -------- Net increase/(decrease)................................... 493 $ 5,136 (2,217) $(22,858) ====== ======= ====== ======== INVESTOR A SHARES: Sold...................................................... 423 $ 4,461 380 $ 4,012 Issued as reinvestment of dividends....................... 26 270 36 394 Redeemed.................................................. (412) (4,234) (457) (4,743) ------ ------- ------ -------- Net increase/(decrease)................................... 37 $ 497 (41) $ (337) ====== ======= ====== ======== INVESTOR B SHARES: Sold...................................................... 15 $ 160 101 $ 1,047 Issued as reinvestment of dividends....................... 16 161 19 209 Redeemed.................................................. (77) (798) (200) (2,051) ------ ------- ------ -------- Net increase/(decrease)................................... (46) $ (477) (80) $ (795) ====== ======= ====== ======== INVESTOR C SHARES: Sold...................................................... 71 $ 753 88 $ 910 Issued as reinvestment of dividends....................... 6 61 8 94 Redeemed.................................................. (141) (1,467) (115) (1,190) ------ ------- ------ -------- Net increase/(decrease)................................... (64) $ (653) (19) $ (186) ====== ======= ====== ======== Total net increase/(decrease)............................. 420 $ 4,503 (2,357) $(24,176) ====== ======= ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 253 258 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
SOUTH CAROLINA MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 --------------------- --------------------- SHARES DOLLARS SHARES DOLLARS ------------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,356 $ 23,820 4,537 $ 43,900 Issued as reinvestment of dividends....................... 1 8 -- -- Redeemed.................................................. (2,794) (28,185) (2,827) (27,069) ------ -------- ------ -------- Net increase/(decrease)................................... (437) $ (4,357) 1,710 $ 16,831 ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 66 $ 674 52 $ 502 Issued as reinvestment of dividends....................... 4 36 4 44 Redeemed.................................................. (60) (608) (66) (633) ------ -------- ------ -------- Net increase/(decrease)................................... 10 $ 102 (10) $ (87) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 31 $ 306 28 $ 254 Issued as reinvestment of dividends....................... 22 217 24 258 Redeemed.................................................. (164) (1,621) (191) (1,860) ------ -------- ------ -------- Net increase/(decrease)................................... (111) $ (1,098) (139) $ (1,348) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... -- $ -- --* $ --* Issued as reinvestment of dividends....................... --* 2 --* 2 Redeemed.................................................. -- -- (3) (33) ------ -------- ------ -------- Net increase/(decrease)................................... -- $ 2 (3) $ (31) ====== ======== ====== ======== Total net increase/(decrease)............................. (538) $ (5,351) 1,558 $ 15,365 ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 254 259 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
TENNESSEE INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 462 $ 4,633 654 $ 6,566 Issued as reinvestment of dividends....................... 10 105 9 104 Redeemed.................................................. (519) (5,222) (952) (9,529) ---- ------- ---- ------- Net increase/(decrease)................................... (47) $ (484) (289) $(2,859) ==== ======= ==== ======= INVESTOR A SHARES: Sold...................................................... 49 $ 486 50 $ 485 Issued as reinvestment of dividends....................... 30 307 28 306 Redeemed.................................................. (99) (1,000) (174) (1,746) ---- ------- ---- ------- Net increase/(decrease)................................... (20) $ (207) (96) $ (955) ==== ======= ==== ======= INVESTOR B SHARES: Sold...................................................... 1 $ 5 9 $ 87 Issued as reinvestment of dividends....................... 4 42 7 81 Redeemed.................................................. (45) (446) (124) (1,235) ---- ------- ---- ------- Net increase/(decrease)................................... (40) $ (399) (108) $(1,067) ==== ======= ==== ======= INVESTOR C SHARES: Sold...................................................... -- $ -- --* $ --* Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. -- --* (3) (30) ---- ------- ---- ------- Net increase/(decrease)................................... -- $ -- (3) $ (30) ==== ======= ==== ======= Total net increase/(decrease)............................. (107) $(1,090) (496) $(4,911) ==== ======= ==== =======
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 255 260 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
TENNESSEE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 91 $ 896 289 $ 2,781 Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. (158) (1,530) (320) (3,071) ---- ------- ---- ------- Net increase/(decrease)................................... (67) $ (634) (31) $ (290) ==== ======= ==== ======= INVESTOR A SHARES: Sold...................................................... 74 $ 724 93 $ 902 Issued as reinvestment of dividends....................... 2 17 2 19 Redeemed.................................................. (50) (480) (2) (18) ---- ------- ---- ------- Net increase/(decrease)................................... 26 $ 261 93 $ 903 ==== ======= ==== ======= INVESTOR B SHARES: Sold...................................................... --* $ 2 13 $ 121 Issued as reinvestment of dividends....................... 12 116 13 134 Redeemed.................................................. (62) (609) (71) (693) ---- ------- ---- ------- Net increase/(decrease)................................... (50) $ (491) (45) $ (438) ==== ======= ==== ======= INVESTOR C SHARES: Sold...................................................... 1 $ 6 8 $ 75 Issued as reinvestment of dividends....................... 1 6 --* 4 Redeemed.................................................. -- --* -- --* ---- ------- ---- ------- Net increase/(decrease)................................... 2 $ 12 8 $ 79 ==== ======= ==== ======= Total net increase/(decrease)............................. (89) $ (852) 25 $ 254 ==== ======= ==== =======
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 256 261 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
TEXAS INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 2,653 $ 26,811 4,248 $ 43,022 Issued as reinvestment of dividends....................... 2 16 3 19 Redeemed.................................................. (7,563) (75,991) (8,955) (90,193) ------ -------- ------ -------- Net increase/(decrease)................................... (4,908) $(49,164) (4,704) $(47,152) ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 389 $ 3,924 156 $ 1,583 Issued as reinvestment of dividends....................... 7 75 8 82 Redeemed.................................................. (584) (5,851) (215) (2,175) ------ -------- ------ -------- Net increase/(decrease)................................... (188) $ (1,852) (51) $ (510) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 15 $ 159 5 $ 52 Issued as reinvestment of dividends....................... 6 60 5 60 Redeemed.................................................. (14) (150) (14) (142) ------ -------- ------ -------- Net increase/(decrease)................................... 7 $ 69 (4) $ (30) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... -- $ -- --* $ --* Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. -- --* --* --* ------ -------- ------ -------- Net increase/(decrease)................................... -- $ -- --* $ --* ====== ======== ====== ======== Total net increase/(decrease)............................. (5,089) $(50,947) (4,759) $(47,692) ====== ======== ====== ========
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 257 262 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
TEXAS MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ----------------- ----------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 140 $ 1,364 157 $ 1,477 Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. (144) (1,397) (263) (2,523) ---- ------- ---- ------- Net increase/(decrease)................................... (4) $ (33) (106) $(1,046) ==== ======= ==== ======= INVESTOR A SHARES: Sold...................................................... --* $ --* 9 $ 84 Issued as reinvestment of dividends....................... --* 2 --* 4 Redeemed.................................................. (1) (12) (14) (135) ---- ------- ---- ------- Net increase/(decrease)................................... (1) $ (10) (5) $ (47) ==== ======= ==== ======= INVESTOR B SHARES: Sold...................................................... 14 $ 133 7 $ 60 Issued as reinvestment of dividends....................... 12 115 15 152 Redeemed.................................................. (97) (944) (115) (1,094) ---- ------- ---- ------- Net increase/(decrease)................................... (71) $ (696) (93) $ (882) ==== ======= ==== ======= INVESTOR C SHARES: Sold...................................................... -- $ -- --* $ 1 Issued as reinvestment of dividends....................... --* 4 --* 3 Redeemed.................................................. --* (1) -- --* ---- ------- ---- ------- Net increase/(decrease)................................... -- $ 3 --* $ 4 ==== ======= ==== ======= Total net increase/(decrease)............................. (76) $ (736) (204) $(1,971) ==== ======= ==== =======
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 258 263 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
VIRGINIA INTERMEDIATE MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------ ------------------ SHARES DOLLARS SHARES DOLLARS ------------------------------------------ (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 6,077 $ 64,610 6,760 $ 71,512 Issued as reinvestment of dividends....................... 8 84 7 78 Redeemed.................................................. (4,706) (50,317) (5,701) (60,355) ------ -------- ------ -------- Net increase/(decrease)................................... 1,379 $ 14,377 1,066 $ 11,235 ====== ======== ====== ======== INVESTOR A SHARES: Sold...................................................... 141 $ 1,487 96 $ 905 Issued as reinvestment of dividends....................... 121 1,289 123 1,420 Redeemed.................................................. (705) (7,465) (945) (10,105) ------ -------- ------ -------- Net increase/(decrease)................................... (443) $ (4,689) (726) $ (7,780) ====== ======== ====== ======== INVESTOR B SHARES: Sold...................................................... 17 $ 186 81 $ 838 Issued as reinvestment of dividends....................... 21 225 22 256 Redeemed.................................................. (91) (966) (177) (1,882) ------ -------- ------ -------- Net increase/(decrease)................................... (53) $ (555) (74) $ (788) ====== ======== ====== ======== INVESTOR C SHARES: Sold...................................................... 15 $ 159 19 $ 191 Issued as reinvestment of dividends....................... 2 24 2 28 Redeemed.................................................. (14) (151) (49) (518) ------ -------- ------ -------- Net increase/(decrease)................................... 3 $ 32 (28) $ (299) ====== ======== ====== ======== Total net increase/(decrease)............................. 886 $ 9,165 238 $ 2,368 ====== ======== ====== ========
SEE NOTES TO FINANCIAL STATEMENTS. 259 264 NATIONS FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
VIRGINIA MUNICIPAL BOND YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ----------------- ----------------- SHARES DOLLARS SHARES DOLLARS ---------------------------------------- (IN THOUSANDS) PRIMARY A SHARES: Sold...................................................... 581 $ 5,576 1,000 $ 9,458 Issued as reinvestment of dividends....................... -- -- --* 2 Redeemed.................................................. (310) (2,956) (568) (5,336) ---- ------- ---- ------- Net increase/(decrease)................................... 271 $ 2,620 432 $ 4,124 ==== ======= ==== ======= INVESTOR A SHARES: Sold...................................................... 58 $ 551 48 $ 460 Issued as reinvestment of dividends....................... 2 17 2 15 Redeemed.................................................. (18) (170) (84) (802) ---- ------- ---- ------- Net increase/(decrease)................................... 42 $ 398 (34) $ (327) ==== ======= ==== ======= INVESTOR B SHARES: Sold...................................................... 53 $ 511 50 $ 479 Issued as reinvestment of dividends....................... 29 278 31 296 Redeemed.................................................. (130) (1,243) (310) (2,936) ---- ------- ---- ------- Net increase/(decrease)................................... (48) $ (454) (229) $(2,161) ==== ======= ==== ======= INVESTOR C SHARES: Sold...................................................... 5 $ 50 --* $ --* Issued as reinvestment of dividends....................... --* --* --* --* Redeemed.................................................. -- --* -- -- ---- ------- ---- ------- Net increase/(decrease)................................... 5 $ 50 --* $ --* ==== ======= ==== ======= Total net increase/(decrease)............................. 270 $ 2,614 169 $ 1,636 ==== ======= ==== =======
--------------- * Amount represents less than 500 shares and/or $500, as applicable. SEE NOTES TO FINANCIAL STATEMENTS. 260 265 [THIS PAGE INTENTIONALLY LEFT BLANK] 261 266 NATIONS FUNDS FINANCIAL HIGHLIGHTS For a share outstanding throughout each year.
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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- SHORT-TERM MUNICIPAL INCOME PRIMARY A SHARES Year ended 3/31/2001#........................... $ 9.94 $0.44 $ 0.20 $0.64 $(0.44) Year ended 3/31/2000#........................... 10.10 0.41 (0.16) 0.25 (0.41) Year ended 3/31/1999#........................... 10.05 0.41 0.05 0.46 (0.41) Year ended 3/31/1998............................ 9.95 0.42 0.10 0.52 (0.42) Year ended 3/31/1997............................ 9.98 0.44 (0.03) 0.41 (0.44) INVESTOR A SHARES Year ended 3/31/2001#........................... $ 9.94 $0.41 $ 0.21 $0.62 $(0.42) Year ended 3/31/2000#........................... 10.10 0.39 (0.16) 0.23 (0.39) Year ended 3/31/1999#........................... 10.05 0.39 0.05 0.44 (0.39) Year ended 3/31/1998............................ 9.95 0.40 0.10 0.50 (0.40) Year ended 3/31/1997............................ 9.98 0.42 (0.03) 0.39 (0.42) INVESTOR B SHARES Year ended 3/31/2001#........................... $ 9.94 $0.34 $ 0.20 $0.54 $(0.34) Year ended 3/31/2000#........................... 10.10 0.36 (0.16) 0.20 (0.36) Year ended 3/31/1999#........................... 10.05 0.38 0.05 0.43 (0.38) Year ended 3/31/1998............................ 9.95 0.39 0.10 0.49 (0.39) Year ended 3/31/1997............................ 9.98 0.40 (0.03) 0.37 (0.40) INVESTOR C SHARES Year ended 3/31/2001#........................... $ 9.94 $0.34 $ 0.20 $0.54 $(0.34) Year ended 3/31/2000#........................... 10.10 0.32 (0.16) 0.16 (0.32) Year ended 3/31/1999#........................... 10.05 0.40 0.02 0.42 (0.37) Year ended 3/31/1998............................ 9.95 0.39 0.10 0.49 (0.39) Year ended 3/31/1997............................ 9.98 0.40 (0.03) 0.37 (0.40)
--------------- ++ 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. 262 267 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ------------------------------------------------------------------------------------------------ $10.14 6.61% $105,004 0.40%(a) 4.41% 38% 0.66% 9.94 2.58 94,393 0.40(a) 4.16 90 0.77 10.10 4.71 79,002 0.40(a) 4.11 53 0.80 10.05 5.33 70,740 0.40(a) 4.17 94 0.77 9.95 4.15 61,072 0.40(a) 4.36 80 0.84 $10.14 6.34% $ 23,613 0.65%(a) 4.16% 38% 0.91% 9.94 2.35 22,415 0.63(a) 3.93 90 1.02 10.10 4.50 35,805 0.60(a) 3.91 53 1.05 10.05 5.12 23,580 0.60(a) 3.97 94 0.97 9.95 3.96 8,417 0.60(a) 4.16 80 1.04 $10.14 5.56% $ 3,463 1.40%(a) 3.41% 38% 1.66% 9.94 1.99 7,030 0.94(a) 3.62 90 1.77 10.10 4.34 13,931 0.75(a) 3.76 53 1.80 10.05 4.96 13,753 0.75(a) 3.82 94 1.12 9.95 3.78 10,655 0.75(a) 4.01 80 1.19 $10.14 5.55% $ 1,417 1.40%(a) 3.41% 38% 1.66% 9.94 1.57 1,616 1.40(a) 3.16 90 1.77 10.10 4.29 2,583 0.83(a) 3.68 53 1.80 10.05 4.99 1,388 0.75(a) 3.82 94 1.12 9.95 3.79 1,080 0.75(a) 4.01 80 1.19
SEE NOTES TO FINANCIAL STATEMENTS. 263 268 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each year.
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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.02) Year ended 3/31/1999........... 10.30 0.47 0.07 0.54 (0.47) (0.07) Year ended 3/31/1998........... 10.01 0.48 0.33 0.81 (0.48) (0.04) Year ended 3/31/1997........... 10.03 0.48 (0.02) 0.46 (0.48) -- INVESTOR A SHARES 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) (0.02) Year ended 3/31/1999........... 10.30 0.45 0.07 0.52 (0.45) (0.07) Year ended 3/31/1998........... 10.01 0.46 0.33 0.79 (0.46) (0.04) Year ended 3/31/1997........... 10.03 0.46 (0.02) 0.44 (0.46) -- INVESTOR B SHARES 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) (0.02) Year ended 3/31/1999........... 10.30 0.39 0.07 0.46 (0.39) (0.07) Year ended 3/31/1998........... 10.01 0.41 0.33 0.74 (0.41) (0.04) Year ended 3/31/1997........... 10.03 0.43 (0.02) 0.41 (0.43) -- INVESTOR C SHARES 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) (0.02) Year ended 3/31/1999........... 10.30 0.40 0.09 0.49 (0.42) (0.07) Year ended 3/31/1998........... 10.01 0.42 0.33 0.75 (0.42) (0.04) Year ended 3/31/1997........... 10.03 0.43 (0.02) 0.41 (0.43) --
--------------- ++ 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. 264 269 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(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 (0.48) 10.01 4.63 108,204 0.50(a) 4.74 21 0.81 $(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 (0.46) 10.01 4.42 2,067 0.70(a) 4.54 21 1.01 $(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 (0.43) 10.01 4.12 1,481 1.00(a) 4.24 21 1.31 $(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 (0.43) 10.01 4.11 756 1.00(a) 4.24 21 1.31
SEE NOTES TO FINANCIAL STATEMENTS. 265 270 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- MUNICIPAL INCOME PRIMARY A SHARES 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) (0.01) Year ended 3/31/1999........... 11.46 0.54 0.07 0.61 (0.54) (0.05) Year ended 3/31/1998........... 10.89 0.57 0.62 1.19 (0.57) (0.05) Year ended 3/31/1997........... 10.84 0.59 0.05 0.64 (0.59) -- INVESTOR A SHARES 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) (0.01) Year ended 3/31/1999........... 11.46 0.52 0.07 0.59 (0.52) (0.05) Year ended 3/31/1998........... 10.89 0.54 0.62 1.16 (0.54) (0.05) Year ended 3/31/1997........... 10.84 0.57 0.05 0.62 (0.57) -- INVESTOR B SHARES 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) (0.01) Year ended 3/31/1999........... 11.46 0.44 0.08 0.52 (0.45) (0.05) Year ended 3/31/1998........... 10.89 0.48 0.62 1.10 (0.48) (0.05) Year ended 3/31/1997........... 10.84 0.51 0.05 0.56 (0.51) -- INVESTOR C SHARES 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) (0.01) Year ended 3/31/1999........... 11.46 0.46 0.07 0.53 (0.46) (0.05) Year ended 3/31/1998........... 10.89 0.49 0.62 1.11 (0.49) (0.05) Year ended 3/31/1997........... 10.84 0.53 0.05 0.58 (0.53) --
--------------- ++ 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. 266 271 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE NET TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(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 (0.59) 10.89 6.03 77,260 0.60(a) 5.41 25 0.91 $(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 (0.57) 10.89 5.82 15,075 0.80(a) 5.21 25 1.11 $(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 (0.51) 10.89 5.24 14,615 1.35(a) 4.66 25 1.66 $(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 (0.53) 10.89 5.50 1,713 1.10(a) 4.91 25 1.41
SEE NOTES TO FINANCIAL STATEMENTS. 267 272 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 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* 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* 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 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)
--------------- + 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, Inc. and its investment sub-adviser became Banc of America Capital Management, Inc. ** As of July 22, 1996, the Fund designated the existing series of shares as "A" Shares. *** California Municipal Bond Primary A, Investor B and Investor C Shares commenced operations on May 21, 1999, July 15, 1998 and July 29, 1999, respectively. # 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. 268 273 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS RATIO OF --------------- RATIO OF NET RATIO OF TOTAL NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE NET TURNOVER AVERAGE DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS ------------------------------------------------------------------------------------------------------------------ $(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+ $(0.36) $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) $(0.31) $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) $(0.31) $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. 269 274 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- FLORIDA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001............................ $10.34 $0.50 $ 0.37 $ 0.87 $(0.51) Year ended 3/31/2000#........................... 10.79 0.50 (0.45) 0.05 (0.50) Year ended 3/31/1999............................ 10.77 0.50 0.02 0.52 (0.50) Year ended 3/31/1998............................ 10.40 0.50 0.37 0.87 (0.50) Year ended 3/31/1997............................ 10.46 0.49 (0.06) 0.43 (0.49) INVESTOR A SHARES Year ended 3/31/2001............................ $10.33 $0.48 $ 0.36 $ 0.84 $(0.48) Year ended 3/31/2000#........................... 10.79 0.48 (0.46) 0.02 (0.48) Year ended 3/31/1999............................ 10.77 0.48 0.02 0.50 (0.48) Year ended 3/31/1998............................ 10.40 0.48 0.37 0.85 (0.48) Year ended 3/31/1997............................ 10.46 0.47 (0.06) 0.41 (0.47) INVESTOR B SHARES Year ended 3/31/2001............................ $10.34 $0.40 $ 0.36 $ 0.76 $(0.40) Year ended 3/31/2000#........................... 10.79 0.41 (0.45) (0.04) (0.41) Year ended 3/31/1999............................ 10.77 0.42 0.02 0.44 (0.42) Year ended 3/31/1998............................ 10.40 0.43 0.37 0.80 (0.43) Year ended 3/31/1997............................ 10.46 0.44 (0.06) 0.38 (0.44) INVESTOR C SHARES Year ended 3/31/2001............................ $10.36 $0.40 $ 0.36 $ 0.76 $(0.40) Year ended 3/31/2000#........................... 10.79 0.40 (0.43) (0.03) (0.40) Year ended 3/31/1999............................ 10.77 0.41 0.03 0.44 (0.42) Year ended 3/31/1998#........................... 10.40 0.43 0.37 0.80 (0.43) Year ended 3/31/1997............................ 10.46 0.44 (0.06) 0.38 (0.44)
--------------- ++ 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. 270 275 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO END OF TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------- $10.70 8.59% $240,441 0.50%(a) 4.82% 6% 0.71% 10.34 0.54 207,704 0.50(a) 4.80 12 0.74 10.79 4.95 234,530 0.50 4.65 14 0.72 10.77 8.55 203,710 0.50(a) 4.74 13 0.76 10.40 4.22 51,748 0.50(a) 4.72 16 0.81 $10.69 8.33% $ 5,319 0.75%(a) 4.57% 6% 0.96% 10.33 0.22 9,695 0.73(a) 4.57 12 0.99 10.79 4.74 12,783 0.70 4.45 14 0.97 10.77 8.34 7,205 0.70(a) 4.54 13 0.96 10.40 4.01 2,142 0.70(a) 4.52 16 1.01 $10.70 7.52% $ 4,429 1.50%(a) 3.82% 6% 1.71% 10.34 (0.38) 4,639 1.41(a) 3.89 12 1.74 10.79 4.11 5,090 1.30 3.85 14 1.72 10.77 7.80 3,606 1.20(a) 4.04 13 1.46 10.40 3.70 3,488 1.00(a) 4.22 16 1.31 $10.72 7.49% $ 172 1.50%(a) 3.82% 6% 1.71% 10.36 (0.26) 117 1.50(a) 3.80 12 1.74 10.79 4.10 1,416 1.36 3.79 14 1.72 10.77 7.80 188 1.20(a) 4.04 13 1.46 10.40 3.71 272 1.00(a) 4.22 16 1.31
SEE NOTES TO FINANCIAL STATEMENTS. 271 276 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- FLORIDA MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001............................ $9.53 $0.48 $ 0.46 $ 0.94 $(0.48) Year ended 3/31/2000............................ 9.99 0.48 (0.46) 0.02 (0.48) Year ended 3/31/1999............................ 9.99 0.48 0.00 0.48 (0.48) Year ended 3/31/1998............................ 9.48 0.48 0.51 0.99 (0.48) Year ended 3/31/1997............................ 9.47 0.48 0.01 0.49 (0.48) INVESTOR A SHARES Year ended 3/31/2001............................ $9.53 $0.45 $ 0.46 $ 0.91 $(0.45) Year ended 3/31/2000............................ 9.99 0.46 (0.46) -- (0.46) Year ended 3/31/1999............................ 9.99 0.46 0.00 0.46 (0.46) Year ended 3/31/1998............................ 9.48 0.46 0.51 0.97 (0.46) Year ended 3/31/1997............................ 9.47 0.46 0.01 0.47 (0.46) INVESTOR B SHARES Year ended 3/31/2001............................ $9.53 $0.38 $ 0.46 $ 0.84 $(0.38) Year ended 3/31/2000............................ 9.99 0.39 (0.46) (0.07) (0.39) Year ended 3/31/1999............................ 9.99 0.40 0.00 0.40 (0.40) Year ended 3/31/1998............................ 9.48 0.40 0.51 0.91 (0.40) Year ended 3/31/1997............................ 9.47 0.41 0.01 0.42 (0.41) INVESTOR C SHARES Year ended 3/31/2001............................ $9.53 $0.37 $ 0.46 $ 0.83 $(0.38) Year ended 3/31/2000............................ 9.99 0.38 (0.46) (0.08) (0.38) Year ended 3/31/1999#........................... 9.99 0.37 0.03 0.40 (0.40) Year ended 3/31/1998#........................... 9.48 0.41 0.51 0.92 (0.41) Year ended 3/31/1997............................ 9.47 0.44 0.01 0.45 (0.44)
--------------- ++ 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. 272 277 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF DISTRIBUTIONS TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING FROM NET DIVIDENDS VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO REALIZED AND END OF TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE GAINS DISTRIBUTIONS YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS --------------------------------------------------------------------------------------------------------------------------------- $(0.01) $(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 -- (0.48) 9.48 5.29 16,702 0.60(a) 5.07 23 0.93 $(0.01) $(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 -- (0.46) 9.48 5.09 1,781 0.80(a) 4.87 23 1.13 $(0.01) $(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 -- (0.41) 9.48 4.52 19,751 1.35(a) 4.32 23 1.68 $(0.01) $(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 -- (0.44) 9.48 4.78 40 1.10(a) 4.57 23 1.43
SEE NOTES TO FINANCIAL STATEMENTS. 273 278 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- GEORGIA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) Year ended 3/31/1999............................ 10.92 0.49 0.07 0.56 (0.50) Year ended 3/31/1998............................ 10.58 0.49 0.38 0.87 (0.49) Year ended 3/31/1997............................ 10.63 0.50 (0.05) 0.45 (0.50) INVESTOR A SHARES 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) Year ended 3/31/1999............................ 10.92 0.47 0.06 0.53 (0.47) Year ended 3/31/1998............................ 10.58 0.47 0.38 0.85 (0.47) Year ended 3/31/1997............................ 10.63 0.48 (0.05) 0.43 (0.48) INVESTOR B SHARES 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) Year ended 3/31/1999............................ 10.92 0.41 0.06 0.47 (0.41) Year ended 3/31/1998............................ 10.58 0.42 0.38 0.80 (0.42) Year ended 3/31/1997............................ 10.63 0.45 (0.05) 0.40 (0.45) INVESTOR C SHARES 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) Year ended 3/31/1999............................ 10.92 0.41 0.05 0.46 (0.40) Year ended 3/31/1998#........................... 10.58 0.42 0.38 0.80 (0.42) Year ended 3/31/1997............................ 10.63 0.45 (0.05) 0.40 (0.45)
--------------- ++ 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. 274 279 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF DISTRIBUTIONS TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING FROM NET DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO REALIZED AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE NET GAINS DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE ASSETS -------------------------------------------------------------------------------------------------------------------------------- $ -- $(0.51) $10.82 8.93% $128,158 0.50%(a) 4.80% 10% 0.73% (0.01) (0.51) 10.42 (0.02) 121,948 0.50(a) 4.69 28 0.78 (0.04) (0.54) 10.94 5.20 132,016 0.50 4.51 14 0.73 (0.04) (0.53) 10.92 8.45 125,654 0.50 4.54 25 0.75 -- (0.50) 10.58 4.33 43,470 0.50 4.72 9 0.80 $ -- $(0.48) $10.82 8.66% $ 11,872 0.75%(a) 4.55% 10% 0.98% (0.01) (0.48) 10.42 (0.27) 13,244 0.73(a) 4.46 28 1.03 (0.04) (0.51) 10.94 4.99 19,674 0.70 4.31 14 0.98 (0.04) (0.51) 10.92 8.24 9,446 0.70 4.34 25 0.95 -- (0.48) 10.58 4.12 8,810 0.70 4.52 9 1.00 $ -- $(0.40) $10.82 7.85% $ 6,773 1.50%(a) 3.80% 10% 1.73% (0.01) (0.41) 10.42 (0.96) 6,812 1.41(a) 3.78 28 1.78 (0.04) (0.45) 10.94 4.37 8,310 1.30 3.71 14 1.73 (0.04) (0.46) 10.92 7.70 7,378 1.20 3.84 25 1.45 -- (0.45) 10.58 3.81 7,601 1.00 4.22 9 1.30 $ -- $(0.40) $10.82 7.96% $ 770 1.50%(a) 3.80% 10% 1.73% (0.01) (0.40) 10.42 (1.13) 764 1.50(a) 3.69 28 1.78 (0.04) (0.44) 10.94 4.35 886 1.31 3.70 14 1.73 (0.04) (0.46) 10.92 7.70 1,034 1.20 3.84 25 1.45 -- (0.45) 10.58 3.81 1,983 1.00 4.22 9 1.30
SEE NOTES TO FINANCIAL STATEMENTS. 275 280 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- GEORGIA MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001#........................... $ 9.53 $0.47 $ 0.49 $ 0.96 $(0.47) Year ended 3/31/2000............................ 10.12 0.46 (0.59) (0.13) (0.46) Year ended 3/31/1999............................ 10.00 0.46 0.12 0.58 (0.46) Year ended 3/31/1998............................ 9.50 0.47 0.50 0.97 (0.47) Year ended 3/31/1997............................ 9.48 0.47 0.02 0.49 (0.47) INVESTOR A SHARES Year ended 3/31/2001#........................... $ 9.53 $0.44 $ 0.50 $ 0.94 $(0.45) Year ended 3/31/2000............................ 10.12 0.43 (0.59) (0.16) (0.43) Year ended 3/31/1999............................ 10.00 0.44 0.12 0.56 (0.44) Year ended 3/31/1998............................ 9.50 0.45 0.50 0.95 (0.45) Year ended 3/31/1997............................ 9.48 0.45 0.02 0.47 (0.45) INVESTOR B SHARES Year ended 3/31/2001#........................... $ 9.53 $0.38 $ 0.49 $ 0.87 $(0.38) Year ended 3/31/2000............................ 10.12 0.37 (0.59) (0.22) (0.37) Year ended 3/31/1999............................ 10.00 0.37 0.12 0.49 (0.37) Year ended 3/31/1998............................ 9.50 0.39 0.50 0.89 (0.39) Year ended 3/31/1997............................ 9.48 0.40 0.02 0.42 (0.40) INVESTOR C SHARES Year ended 3/31/2001#........................... $ 9.53 $0.38 $ 0.49 $ 0.87 $(0.38) Year ended 3/31/2000............................ 10.12 0.36 (0.59) (0.23) (0.36) Year ended 3/31/1999............................ 10.00 0.37 0.12 0.49 (0.37) Year ended 3/31/1998#........................... 9.50 0.40 0.50 0.90 (0.40) Year ended 3/31/1997............................ 9.48 0.42 0.02 0.44 (0.42)
--------------- ++ 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. 276 281 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------- $10.02 10.38% $17,408 0.60%(a) 4.87% 11% 1.08% 9.53 (1.27) 13,064 0.60 4.74 50 1.38 10.12 5.89 9,719 0.60 4.53 17 1.18 10.00 10.43 8,138 0.60(a) 4.82 30 1.02 9.50 5.29 5,550 0.60(a) 4.96 19 1.05 $10.02 10.11% $ 1,789 0.85%(a) 4.62% 11% 1.33% 9.53 (1.50) 1,853 0.83 4.51 50 1.63 10.12 5.68 2,611 0.80 4.33 17 1.43 10.00 10.22 483 0.80(a) 4.62 30 1.22 9.50 5.05 208 0.80(a) 4.76 19 1.25 $10.02 9.29% $ 9,178 1.60%(a) 3.87% 11% 2.08% 9.53 (2.19) 10,285 1.54 3.80 50 2.38 10.12 5.00 11,348 1.45 3.68 17 2.18 10.00 9.54 10,052 1.42(a) 4.00 30 1.84 9.50 4.50 10,182 1.35(a) 4.21 19 1.80 $10.02 9.29% $ 58 1.60%(a) 3.87% 11% 2.08% 9.53 (2.29) 60 1.60 3.74 50 2.38 10.12 4.97 3 1.49 3.64 17 2.18 10.00 9.64 27 1.33(a) 4.09 30 1.75 9.50 4.77 72 1.10(a) 4.46 19 1.55
SEE NOTES TO FINANCIAL STATEMENTS. 277 282 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 ---------------------------------------------------------------------------------------------- KANSAS MUNICIPAL INCOME PRIMARY A SHARES Period ended 3/31/2001*#....... $10.00 $0.46 $0.18 $0.64 $(0.31) $0.00 INVESTOR A SHARES Period ended 3/31/2001*#....... $10.00 $0.47 $0.13 $0.60 $(0.27) $0.00 INVESTOR B SHARES Period ended 3/31/2001*#....... $10.00 $0.33 $0.19 $0.52 $(0.20) $0.00
--------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * Kansas Municipal Income Primary A, Investor A and Investor B Shares commenced operations on July 17, 2000, August 14, 2000 and August 29, 2000, respectively. # 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. 278 283 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ------------------------------------------------------------------------------------------------------------------ $(0.31) $10.33 6.60% $111,226 0.60%+(a) 4.44%+(a) 17% 0.93%+ $(0.27) $10.33 5.66% $ 646 0.85%+(a) 4.19%+(a) 17% 1.18%+ $(0.20) $10.32 4.78% $ 262 1.60%+(a) 3.44%+(a) 17% 1.93%+
SEE NOTES TO FINANCIAL STATEMENTS. 279 284 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- MARYLAND INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.01) Year ended 3/31/1999........... 11.01 0.50 0.06 0.56 (0.50) -- Year ended 3/31/1998........... 10.70 0.51 0.31 0.82 (0.51) -- Year ended 3/31/1997........... 10.80 0.51 (0.10) 0.41 (0.51) -- INVESTOR A SHARES 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) (0.01) Year ended 3/31/1999........... 11.01 0.48 0.06 0.54 (0.48) -- Year ended 3/31/1998........... 10.70 0.49 0.31 0.80 (0.49) -- Year ended 3/31/1997........... 10.80 0.48 (0.10) 0.38 (0.48) -- INVESTOR B SHARES 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) (0.01) Year ended 3/31/1999........... 11.01 0.41 0.06 0.47 (0.41) -- Year ended 3/31/1998........... 10.70 0.43 0.31 0.74 (0.43) -- Year ended 3/31/1997........... 10.80 0.45 (0.10) 0.35 (0.45) -- INVESTOR C SHARES 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) (0.01) Year ended 3/31/1999........... 11.01 0.41 0.06 0.47 (0.41) -- Year ended 3/31/1998........... 10.70 0.43 0.31 0.74 (0.43) -- Year ended 3/31/1997........... 10.80 0.45 (0.10) 0.35 (0.45) --
--------------- ++ 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. 280 285 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(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 (0.51) 10.70 3.83 63,549 0.50(a) 4.70 10 0.78 $(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 (0.48) 10.70 3.62 14,988 0.70(a) 4.50 10 0.98 $(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 (0.45) 10.70 3.31 4,299 1.00(a) 4.20 10 1.28 $(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 (0.45) 10.70 3.31 2,017 1.00(a) 4.20 10 1.28
SEE NOTES TO FINANCIAL STATEMENTS. 281 286 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- MARYLAND MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001#.......... $9.53 $0.46 $ 0.55 $ 1.01 $(0.46) $ -- Year ended 3/31/2000#.......... 9.99 0.42 (0.45) (0.03) (0.42) (0.01) Year ended 3/31/1999........... 9.94 0.43 0.05 0.48 (0.43) (0.00)## Year ended 3/31/1998........... 9.41 0.45 0.53 0.98 (0.45) -- Year ended 3/31/1997........... 9.39 0.46 0.02 0.48 (0.46) -- INVESTOR A SHARES Year ended 3/31/2001#.......... $9.53 $0.43 $ 0.56 $ 0.99 $(0.44) $ -- Year ended 3/31/2000#.......... 9.99 0.40 (0.45) (0.05) (0.40) (0.01) Year ended 3/31/1999........... 9.94 0.41 0.05 0.46 (0.41) (0.00)## Year ended 3/31/1998........... 9.41 0.43 0.53 0.96 (0.43) -- Year ended 3/31/1997........... 9.39 0.44 0.02 0.46 (0.44) -- INVESTOR B SHARES Year ended 3/31/2001#.......... $9.53 $0.37 $ 0.54 $ 0.91 $(0.36) $ -- Year ended 3/31/2000#.......... 9.99 0.33 (0.45) (0.12) (0.33) (0.01) Year ended 3/31/1999........... 9.94 0.35 0.05 0.40 (0.35) (0.00)## Year ended 3/31/1998........... 9.41 0.37 0.53 0.90 (0.37) -- Year ended 3/31/1997........... 9.39 0.39 0.02 0.41 (0.39) -- INVESTOR C SHARES Year ended 3/31/2001#.......... $9.53 $0.37 $ 0.53 $ 0.90 $(0.36) $ -- Year ended 3/31/2000#.......... 9.99 0.33 (0.45) (0.12) (0.33) (0.01) Year ended 3/31/1999........... 9.94 0.34 0.05 0.39 (0.34) (0.00)## Year ended 3/31/1998........... 9.41 0.39 0.53 0.92 (0.39) -- Year ended 3/31/1997........... 9.39 0.42 0.02 0.44 (0.42) --
--------------- ++ 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. 282 287 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(0.46) $10.08 10.90% $20,029 0.60%(a) 4.74% 25% 1.00% (0.43) 9.53 (0.25) 17,587 0.60 4.41 50 1.22 (0.43) 9.99 4.92 17,033 0.60 4.29 22 1.07 (0.45) 9.94 10.62 9,049 0.60 4.61 17 1.07 (0.46) 9.41 5.20 4,596 0.60 4.88 18 1.12 $(0.44) $10.08 10.62% $ 2,679 0.85%(a) 4.49% 25% 1.25% (0.41) 9.53 (0.49) 1,781 0.83 4.18 50 1.47 (0.41) 9.99 4.71 1,751 0.80 4.09 22 1.32 (0.43) 9.94 10.40 1,902 0.80 4.41 17 1.27 (0.44) 9.41 4.99 1,409 0.80 4.68 18 1.32 $(0.36) $10.08 9.80% $16,830 1.60%(a) 3.74% 25% 2.00% (0.34) 9.53 (1.19) 16,034 1.54 3.47 50 2.22 (0.35) 9.99 4.03 16,124 1.45 3.44 22 2.07 (0.37) 9.94 9.72 11,071 1.42 3.79 17 1.89 (0.39) 9.41 4.42 8,099 1.35 4.13 18 1.87 $(0.36) $10.07 9.69% $ 274 1.60%(a) 3.74% 25% 2.00% (0.34) 9.53 (1.23) 214 1.60 3.41 50 2.22 (0.34) 9.99 4.01 3 1.47 3.42 22 2.07 (0.39) 9.94 9.88 3 1.33 3.88 17 1.80 (0.42) 9.41 4.73 2 1.10 4.38 18 1.62
SEE NOTES TO FINANCIAL STATEMENTS. 283 288 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.02) Year ended 3/31/1999........... 10.70 0.49 0.04 0.53 (0.49) (0.03) Year ended 3/31/1998........... 10.34 0.49 0.36 0.85 (0.49) -- Year ended 3/31/1997........... 10.36 0.47 (0.02) 0.45 (0.47) -- INVESTOR A SHARES 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) (0.02) Year ended 3/31/1999........... 10.70 0.47 0.04 0.51 (0.47) (0.03) Year ended 3/31/1998........... 10.34 0.47 0.36 0.83 (0.47) -- Year ended 3/31/1997........... 10.36 0.45 (0.02) 0.43 (0.45) -- INVESTOR B SHARES 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) (0.02) Year ended 3/31/1999........... 10.70 0.40 0.04 0.44 (0.40) (0.03) Year ended 3/31/1998........... 10.34 0.42 0.36 0.78 (0.42) -- Year ended 3/31/1997........... 10.36 0.42 (0.02) 0.40 (0.42) -- INVESTOR C SHARES 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) (0.02) Year ended 3/31/1999........... 10.70 0.42 0.02 0.44 (0.40) (0.03) Year ended 3/31/1998........... 10.34 0.42 0.36 0.78 (0.42) -- Year ended 3/31/1997........... 10.36 0.42 (0.02) 0.40 (0.42) --
--------------- ++ 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. 284 289 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(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 (0.47) 10.34 4.45 25,855 0.50(a) 4.57 26 0.82 $(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 (0.45) 10.34 4.25 5,723 0.70(a) 4.37 26 1.02 $(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 (0.42) 10.34 3.94 6,796 1.00(a) 4.07 26 1.32 $(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 (0.42) 10.34 3.94 1,364 1.00(a) 4.07 26 1.32
SEE NOTES TO FINANCIAL STATEMENTS. 285 290 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET REALIZED NET ASSET AND NET INCREASE/ DIVIDENDS VALUE NET UNREALIZED (DECREASE) IN FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT OF YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- NORTH CAROLINA MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001#........................... $ 9.52 $0.47 $ 0.47 $ 0.94 $(0.47) Year ended 3/31/2000#........................... 10.08 0.45 (0.56) (0.11) (0.45) Year ended 3/31/1999............................ 10.01 0.45 0.08 0.53 (0.46) Year ended 3/31/1998............................ 9.47 0.47 0.54 1.01 (0.47) Year ended 3/31/1997............................ 9.49 0.47 (0.02) 0.45 (0.47) INVESTOR A SHARES Year ended 3/31/2001#........................... $ 9.52 $0.44 $ 0.48 $ 0.92 $(0.45) Year ended 3/31/2000#........................... 10.08 0.43 (0.56) (0.13) (0.43) Year ended 3/31/1999............................ 10.01 0.43 0.08 0.51 (0.44) Year ended 3/31/1998............................ 9.47 0.45 0.54 0.99 (0.45) Year ended 3/31/1997............................ 9.49 0.45 (0.02) 0.43 (0.45) INVESTOR B SHARES Year ended 3/31/2001#........................... $ 9.52 $0.37 $ 0.47 $ 0.84 $(0.37) Year ended 3/31/2000#........................... 10.08 0.37 (0.56) (0.19) (0.37) Year ended 3/31/1999............................ 10.01 0.38 0.07 0.45 (0.38) Year ended 3/31/1998............................ 9.47 0.39 0.54 0.93 (0.39) Year ended 3/31/1997............................ 9.49 0.40 (0.02) 0.38 (0.40) INVESTOR C SHARES Year ended 3/31/2001#........................... $ 9.51 $0.36 $ 0.49 $ 0.85 $(0.37) Year ended 3/31/2000#........................... 10.08 0.37 (0.57) (0.20) (0.37) Year ended 3/31/1999............................ 10.01 0.37 0.07 0.44 (0.37) Year ended 3/31/1998#........................... 9.47 0.40 0.54 0.94 (0.40) Year ended 3/31/1997............................ 9.49 0.42 (0.02) 0.40 (0.42)
--------------- ++ 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. 286 291 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS RATIO OF --------------- RATIO OF NET RATIO OF NET ASSETS OPERATING INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS --------------------------------------------------------------------------------------------------- $ 9.99 10.15% $ 21,966 0.60%(a) 4.86% 19% 0.98% 9.52 (0.98) 17,787 0.60(a) 4.74 37 1.13 10.08 5.39 16,293 0.60(a) 4.57 11 1.00 10.01 10.86 6,452 0.60(a) 4.78 20 0.93 9.47 4.84 3,095 0.60(a) 4.95 28 0.94 $ 9.99 9.88% $ 2,780 0.85%(a) 4.61% 19% 1.23% 9.52 (1.20) 1,528 0.83(a) 4.51 37 1.38 10.08 5.20 1,028 0.80(a) 4.37 11 1.25 10.01 10.64 609 0.80(a) 4.58 20 1.13 9.47 4.62 594 0.80(a) 4.75 28 1.14 $ 9.99 9.06% $ 16,972 1.60%(a) 3.86% 19% 1.98% 9.52 (1.90) 20,207 1.54(a) 3.80 37 2.13 10.08 4.53 24,656 1.45(a) 3.72 11 2.00 10.01 9.96 25,187 1.42(a) 3.96 20 1.75 9.47 4.06 23,863 1.35(a) 4.20 28 1.69 $ 9.99 9.18% $ 87 1.60%(a) 3.86% 19% 1.98% 9.51 (1.99) 54 1.60(a) 3.74 37 2.13 10.08 4.50 3 1.47(a) 3.70 11 2.00 10.01 10.07 3 1.33(a) 4.05 20 1.66 9.47 4.32 18 1.10(a) 4.45 28 1.44
SEE NOTES TO FINANCIAL STATEMENTS. 287 292 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET REALIZED NET ASSET AND NET INCREASE/ DIVIDENDS DISTRIBUTIONS VALUE NET UNREALIZED (DECREASE) IN FROM NET FROM NET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED OF YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.01) Year ended 3/31/1999........... 10.79 0.51 0.04 0.55 (0.51) (0.04) Year ended 3/31/1998........... 10.50 0.52 0.29 0.81 (0.52) 0.00## Year ended 3/31/1997........... 10.52 0.51 (0.02) 0.49 (0.51) -- INVESTOR A SHARES 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) (0.01) Year ended 3/31/1999........... 10.79 0.49 0.04 0.53 (0.49) (0.04) Year ended 3/31/1998........... 10.50 0.50 0.29 0.79 (0.50) 0.00## Year ended 3/31/1997........... 10.52 0.49 (0.02) 0.47 (0.49) -- INVESTOR B SHARES 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) (0.01) Year ended 3/31/1999........... 10.79 0.43 0.04 0.47 (0.43) (0.04) Year ended 3/31/1998........... 10.50 0.44 0.29 0.73 (0.44) 0.00## Year ended 3/31/1997........... 10.52 0.45 (0.02) 0.43 (0.45) -- INVESTOR C SHARES 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) (0.01) Year ended 3/31/1999........... 10.79 0.42 0.04 0.46 (0.42) (0.04) Year ended 3/31/1998........... 10.50 0.44 0.29 0.73 (0.44) 0.00## Year ended 3/31/1997........... 10.52 0.45 (0.02) 0.43 (0.45) --
--------------- ++ 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. 288 293 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS -------------------------------------------------------------------------------------------------------------------- $(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 (0.51) 10.50 4.71 48,918 0.50(a) 4.80 13 0.79 $(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 (0.49) 10.50 4.51 10,465 0.70(a) 4.60 13 0.99 $(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 (0.45) 10.50 4.19 5,738 1.00(a) 4.30 13 1.29 $(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 (0.45) 10.50 4.20 5,089 1.00(a) 4.30 13 1.29
SEE NOTES TO FINANCIAL STATEMENTS. 289 294 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- SOUTH CAROLINA MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001#.......... $ 9.75 $0.48 $ 0.55 $ 1.03 $(0.48) $ -- Year ended 3/31/2000#.......... 10.30 0.46 (0.55) (0.09) (0.46) -- Year ended 3/31/1999........... 10.26 0.49 0.03 0.52 (0.48) -- Year ended 3/31/1998........... 9.79 0.49 0.47 0.96 (0.49) (0.00)## Year ended 3/31/1997........... 9.77 0.49 0.02 0.51 (0.49) -- INVESTOR A SHARES Year ended 3/31/2001#.......... $ 9.75 $0.46 $ 0.54 $ 1.00 $(0.46) $ -- Year ended 3/31/2000#.......... 10.30 0.45 (0.55) (0.10) (0.45) -- Year ended 3/31/1999........... 10.26 0.44 0.06 0.50 (0.46) -- Year ended 3/31/1998........... 9.79 0.47 0.47 0.94 (0.47) (0.00)## Year ended 3/31/1997........... 9.77 0.47 0.02 0.49 (0.47) -- INVESTOR B SHARES Year ended 3/31/2001#.......... $ 9.75 $0.39 $ 0.55 $ 0.94 $(0.39) $ -- Year ended 3/31/2000#.......... 10.30 0.38 (0.55) (0.17) (0.38) -- Year ended 3/31/1999........... 10.26 0.39 0.04 0.43 (0.39) -- Year ended 3/31/1998........... 9.79 0.40 0.47 0.87 (0.40) (0.00)## Year ended 3/31/1997........... 9.77 0.42 0.02 0.44 (0.42) -- INVESTOR C SHARES Year ended 3/31/2001#.......... $ 9.75 $0.39 $ 0.55 $ 0.94 $(0.39) $ -- Year ended 3/31/2000#.......... 10.30 0.38 (0.55) (0.17) (0.38) -- Year ended 3/31/1999#.......... 10.26 0.39 0.04 0.43 (0.39) -- Year ended 3/31/1998........... 9.79 0.42 0.47 0.89 (0.42) (0.00)## Year ended 3/31/1997........... 9.77 0.44 0.02 0.46 (0.44) --
--------------- ++ 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. 290 295 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(0.48) $10.30 10.90% $25,908 0.60%(a) 4.87% 8% 0.99% (0.46) 9.75 (0.72) 28,784 0.60(a) 4.79 71 1.28 (0.48) 10.30 5.13 12,793 0.60 4.62 3 1.18 (0.49) 10.26 10.04 9,455 0.60(a) 4.79 9 0.99 (0.49) 9.79 5.32 5,113 0.60(a) 4.99 30 1.00 $(0.46) $10.29 10.52% $ 1,057 0.85%(a) 4.62% 8% 1.24% (0.45) 9.75 (0.95) 906 0.83(a) 4.56 71 1.53 (0.46) 10.30 4.92 1,060 0.80 4.42 3 1.43 (0.47) 10.26 9.82 1,517 0.80(a) 4.59 9 1.19 (0.47) 9.79 5.12 811 0.80(a) 4.79 30 1.20 $(0.39) $10.30 9.80% $ 8,338 1.60%(a) 3.87% 8% 1.99% (0.38) 9.75 (1.65) 8,974 1.54(a) 3.85 71 2.28 (0.39) 10.30 4.25 10,905 1.44 3.78 3 2.18 (0.40) 10.26 9.15 10,394 1.42(a) 3.97 9 1.81 (0.42) 9.79 4.54 12,104 1.35(a) 4.24 30 1.75 $(0.39) $10.30 9.80% $ 45 1.60%(a) 3.87% 8% 1.99% (0.38) 9.75 (1.71) 41 1.60(a) 3.79 71 2.28 (0.39) 10.30 4.23 77 1.44 3.78 3 2.18 (0.42) 10.26 9.29 28 1.33(a) 4.06 9 1.72 (0.44) 9.79 4.80 247 1.10(a) 4.49 30 1.50
SEE NOTES TO FINANCIAL STATEMENTS. 291 296 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- TENNESSEE INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.01) Year ended 3/31/1999........... 10.40 0.47 0.06 0.53 (0.47) -- Year ended 3/31/1998........... 10.08 0.47 0.32 0.79 (0.47) -- Year ended 3/31/1997........... 10.09 0.46 (0.01) 0.45 (0.46) -- INVESTOR A SHARES 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) (0.01) Year ended 3/31/1999........... 10.40 0.45 0.06 0.51 (0.45) -- Year ended 3/31/1998........... 10.08 0.45 0.32 0.77 (0.45) -- Year ended 3/31/1997........... 10.09 0.44 (0.01) 0.43 (0.44) -- INVESTOR B SHARES 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) (0.01) Year ended 3/31/1999........... 10.40 0.38 0.06 0.44 (0.38) -- Year ended 3/31/1998........... 10.08 0.40 0.32 0.72 (0.40) -- Year ended 3/31/1997........... 10.09 0.41 (0.01) 0.40 (0.41) -- INVESTOR C SHARES 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) (0.01) Year ended 3/31/1999........... 10.40 0.39 0.05 0.44 (0.39) -- Year ended 3/31/1998........... 10.08 0.40 0.32 0.72 (0.40) -- Year ended 3/31/1997........... 10.09 0.42 (0.01) 0.41 (0.42) --
--------------- ++ 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. 292 297 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING DIVIDENDS VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND END OF TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ---------------------------------------------------------------------------------------------------------------- $(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 (0.46) 10.08 4.54 8,869 0.50(a) 4.55 28 0.93 $(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 (0.44) 10.08 4.33 6,840 0.70(a) 4.35 28 1.13 $(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 (0.41) 10.08 4.02 3,050 1.00(a) 4.05 28 1.43 $(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 (0.42) 10.08 4.08 2 1.00(a) 4.05 28 1.43
SEE NOTES TO FINANCIAL STATEMENTS. 293 298 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- TENNESSEE MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001............................ $ 9.68 $0.49 $ 0.56 $ 1.05 $(0.49) Year ended 3/31/2000#........................... 10.30 0.47 (0.62) (0.15) (0.47) Year ended 3/31/1999............................ 10.22 0.48 0.08 0.56 (0.48) Year ended 3/31/1998............................ 9.70 0.48 0.52 1.00 (0.48) Year ended 3/31/1997............................ 9.68 0.48 0.02 0.50 (0.48) INVESTOR A SHARES Year ended 3/31/2001............................ $ 9.68 $0.46 $ 0.56 $ 1.02 $(0.46) Year ended 3/31/2000#........................... 10.30 0.43 (0.62) (0.19) (0.43) Year ended 3/31/1999#........................... 10.22 0.43 0.11 0.54 (0.46) Year ended 3/31/1998............................ 9.70 0.46 0.52 0.98 (0.46) Year ended 3/31/1997............................ 9.68 0.46 0.02 0.48 (0.46) INVESTOR B SHARES Year ended 3/31/2001............................ $ 9.68 $0.39 $ 0.56 $ 0.95 $(0.39) Year ended 3/31/2000#........................... 10.30 0.38 (0.62) (0.24) (0.38) Year ended 3/31/1999............................ 10.22 0.39 0.08 0.47 (0.39) Year ended 3/31/1998............................ 9.70 0.40 0.52 0.92 (0.40) Year ended 3/31/1997............................ 9.68 0.40 0.02 0.42 (0.40) INVESTOR C SHARES Year ended 3/31/2001............................ $ 9.68 $0.39 $ 0.56 $ 0.95 $(0.39) Year ended 3/31/2000#........................... 10.30 0.36 (0.62) (0.26) (0.36) Year ended 3/31/1999#........................... 10.22 0.38 0.09 0.47 (0.39) Year ended 3/31/1998#........................... 9.70 0.40 0.52 0.92 (0.40) Year ended 3/31/1997............................ 9.68 0.43 0.02 0.45 (0.43)
--------------- ++ 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. 294 299 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF NET ASSETS OPERATING INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ----------------------------------------------------------------------------------------------- $10.24 11.10% $ 4,726 0.60%(a) 4.92% 9% 1.57% 9.68 (1.36) 5,114 0.60 4.83 34 2.14 10.30 5.53 5,762 0.60 4.61 40 1.55 10.22 10.45 4,559 0.60 4.74 19 1.20 9.70 5.23 2,594 0.60 4.91 31 1.24 $10.24 10.82% $ 1,706 0.85%(a) 4.67% 9% 1.82% 9.68 (1.59) 1,357 0.83 4.60 34 2.39 10.30 5.32 484 0.80 4.41 40 1.80 10.22 10.23 1,440 0.80 4.54 19 1.40 9.70 5.02 1,018 0.80 4.71 31 1.44 $10.24 10.00% $ 3,720 1.60%(a) 3.92% 9% 2.57% 9.68 (2.28) 4,001 1.54 3.89 34 3.14 10.30 4.64 4,718 1.45 3.76 40 2.55 10.22 9.56 4,915 1.42 3.92 19 2.02 9.70 4.45 5,319 1.35 4.16 31 1.99 $10.24 10.00% $ 163 1.60%(a) 3.92% 9% 2.57% 9.68 (2.35) 143 1.60 3.83 34 3.14 10.30 4.62 68 1.46 3.75 40 2.55 10.22 9.65 42 1.33 4.01 19 1.93 9.70 4.71 38 1.10 4.41 31 1.74
SEE NOTES TO FINANCIAL STATEMENTS. 295 300 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- TEXAS INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.00)## Year ended 3/31/1999........... 10.50 0.49 0.02 0.51 (0.49) (0.04) Year ended 3/31/1998........... 10.18 0.49 0.32 0.81 (0.49) -- Year ended 3/31/1997........... 10.21 0.47 (0.03) 0.44 (0.47) -- INVESTOR A SHARES 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) (0.00)## Year ended 3/31/1999........... 10.50 0.47 0.02 0.49 (0.47) (0.04) Year ended 3/31/1998........... 10.18 0.47 0.32 0.79 (0.47) -- Year ended 3/31/1997........... 10.21 0.45 (0.03) 0.42 (0.45) -- INVESTOR B SHARES 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) (0.00)## Year ended 3/31/1999........... 10.50 0.41 0.02 0.43 (0.41) (0.04) Year ended 3/31/1998........... 10.18 0.42 0.32 0.74 (0.42) -- Year ended 3/31/1997........... 10.21 0.42 (0.03) 0.39 (0.42) -- INVESTOR C SHARES 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) (0.00)## Year ended 3/31/1999#.......... 10.50 0.40 0.02 0.42 (0.40) (0.04) Year ended 3/31/1998........... 10.18 0.42 0.32 0.74 (0.42) -- Year ended 3/31/1997........... 10.21 0.42 (0.03) 0.39 (0.42) --
--------------- ++ 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. 296 301 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS --------------------------------------------------------------------------------------------------------------- $(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 (0.47) 10.18 4.37 24,764 0.50 4.59 34 0.84 $(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 (0.45) 10.18 4.17 909 0.70 4.39 34 1.04 $(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 (0.42) 10.18 3.87 2,182 1.00 4.09 34 1.34 $(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 (0.42) 10.18 3.87 591 1.00 4.09 34 1.34
SEE NOTES TO FINANCIAL STATEMENTS. 297 302 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME ----------------------------------------------------------------------------- TEXAS MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001............................ $ 9.56 $0.49 $ 0.50 $ 0.99 $(0.49) Year ended 3/31/2000#........................... 10.11 0.48 (0.55) (0.07) (0.48) Year ended 3/31/1999............................ 10.04 0.46 0.07 0.53 (0.46) Year ended 3/31/1998#........................... 9.48 0.48 0.56 1.04 (0.48) Year ended 3/31/1997............................ 9.49 0.48 (0.01) 0.47 (0.48) INVESTOR A SHARES Year ended 3/31/2001............................ $ 9.56 $0.47 $ 0.50 $ 0.97 $(0.47) Year ended 3/31/2000#........................... 10.11 0.45 (0.55) (0.10) (0.45) Year ended 3/31/1999............................ 10.04 0.44 0.07 0.51 (0.44) Year ended 3/31/1998#........................... 9.48 0.46 0.56 1.02 (0.46) Year ended 3/31/1997............................ 9.49 0.46 (0.01) 0.45 (0.46) INVESTOR B SHARES Year ended 3/31/2001............................ $ 9.56 $0.39 $ 0.51 $ 0.90 $(0.40) Year ended 3/31/2000#........................... 10.11 0.39 (0.55) (0.16) (0.39) Year ended 3/31/1999............................ 10.04 0.38 0.07 0.45 (0.38) Year ended 3/31/1998#........................... 9.48 0.39 0.56 0.95 (0.39) Year ended 3/31/1997............................ 9.49 0.40 (0.01) 0.39 (0.40) INVESTOR C SHARES Year ended 3/31/2001............................ $ 9.56 $0.39 $ 0.51 $ 0.90 $(0.40) Year ended 3/31/2000#........................... 10.11 0.38 (0.55) (0.17) (0.38) Year ended 3/31/1999............................ 10.04 0.38 0.07 0.45 (0.38) Year ended 3/31/1998#........................... 9.48 0.40 0.56 0.96 (0.40) Year ended 3/31/1997............................ 9.49 0.43 (0.01) 0.42 (0.43)
--------------- ++ 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. 298 303 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF NET ASSETS OPERATING INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO VALUE TOTAL YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE END OF YEAR RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS ----------------------------------------------------------------------------------------------- $10.06 10.64% $ 8,237 0.60%(a) 5.03% 10% 1.37% 9.56 (0.63) 7,868 0.60(a) 4.95 39 1.75 10.11 5.41 9,393 0.60 4.59 34 1.25 10.04 11.12 7,615 0.60(a) 4.83 33 1.07 9.48 5.00 5,675 0.60(a) 4.99 52 1.03 $10.06 10.37% $ 340 0.85%(a) 4.78% 10% 1.62% 9.56 (0.86) 333 0.83(a) 4.72 39 2.00 10.11 5.20 401 0.80 4.39 34 1.50 10.04 10.90 419 0.80(a) 4.63 33 1.27 9.48 4.78 371 0.80(a) 4.79 52 1.23 $10.06 9.55% $ 5,142 1.60%(a) 4.03% 10% 2.37% 9.56 (1.56) 5,569 1.54(a) 4.01 39 2.75 10.11 4.53 6,828 1.45 3.74 34 2.25 10.04 10.23 8,804 1.42(a) 4.01 33 1.89 9.48 4.21 10,090 1.35(a) 4.24 52 1.78 $10.06 9.55% $ 91 1.60%(a) 4.03% 10% 2.37% 9.56 (1.62) 84 1.60(a) 3.95 39 2.75 10.11 4.51 84 1.46 3.73 34 2.25 10.04 10.31 80 1.33(a) 4.10 33 1.80 9.48 4.47 73 1.10(a) 4.49 52 1.53
SEE NOTES TO FINANCIAL STATEMENTS. 299 304 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 YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS ---------------------------------------------------------------------------------------------- VIRGINIA INTERMEDIATE MUNICIPAL BOND PRIMARY A SHARES 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) (0.00)## Year ended 3/31/1999........... 10.92 0.50 0.06 0.56 (0.50) -- Year ended 3/31/1998........... 10.59 0.51 0.33 0.84 (0.51) -- Year ended 3/31/1997........... 10.69 0.51 (0.10) 0.41 (0.51) -- INVESTOR A SHARES 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) (0.00)## Year ended 3/31/1999#.......... 10.92 0.47 0.07 0.54 (0.48) -- Year ended 3/31/1998........... 10.59 0.49 0.33 0.82 (0.49) -- Year ended 3/31/1997........... 10.69 0.49 (0.10) 0.39 (0.49) -- INVESTOR B SHARES 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) (0.00)## Year ended 3/31/1999........... 10.92 0.41 0.06 0.47 (0.41) -- Year ended 3/31/1998#.......... 10.59 0.44 0.33 0.77 (0.44) -- Year ended 3/31/1997........... 10.69 0.46 (0.10) 0.36 (0.46) -- INVESTOR C SHARES 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) (0.00)## Year ended 3/31/1999#.......... 10.92 0.39 0.08 0.47 (0.41) -- Year ended 3/31/1998#.......... 10.59 0.44 0.33 0.77 (0.44) -- Year ended 3/31/1997........... 10.69 0.46 (0.10) 0.36 (0.46) --
--------------- ++ 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. 300 305 NATIONS FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF NET RATIO OF TOTAL NET ASSETS OPERATING INVESTMENT OPERATING DIVIDENDS NET ASSET END OF EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO AND VALUE TOTAL YEAR TO AVERAGE TO AVERAGE TURNOVER AVERAGE DISTRIBUTIONS END OF YEAR RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS -------------------------------------------------------------------------------------------------------------- $(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 (0.51) 10.59 3.92 148,701 0.50(a) 4.79 20 0.74 $(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 (0.49) 10.59 3.71 55,791 0.70(a) 4.59 20 0.94 $(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 (0.46) 10.59 3.40 10,516 1.00(a) 4.29 20 1.24 $(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 (0.46) 10.59 3.40 6,463 1.00(a) 4.29 20 1.24
SEE NOTES TO FINANCIAL STATEMENTS. 301 306 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 NET ASSET BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT VALUE OF YEAR INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME END OF YEAR -------------------------------------------------------------------------------------------- VIRGINIA MUNICIPAL BOND PRIMARY A SHARES Year ended 3/31/2001#............ $9.45 $0.49 $ 0.37 $ 0.86 $(0.48) $9.83 Year ended 3/31/2000#............ 9.99 0.46 (0.54) (0.08) (0.46) 9.45 Year ended 3/31/1999............. 9.95 0.47 0.04 0.51 (0.47) 9.99 Year ended 3/31/1998............. 9.40 0.47 0.55 1.02 (0.47) 9.95 Year ended 3/31/1997............. 9.38 0.48 0.02 0.50 (0.48) 9.40 INVESTOR A SHARES Year ended 3/31/2001#............ $9.44 $0.45 $ 0.40 $ 0.85 $(0.47) $9.82 Year ended 3/31/2000#............ 9.99 0.39 (0.55) (0.16) (0.39) 9.44 Year ended 3/31/1999#............ 9.95 0.45 0.04 0.49 (0.45) 9.99 Year ended 3/31/1998#............ 9.40 0.45 0.55 1.00 (0.45) 9.95 Year ended 3/31/1997............. 9.38 0.46 0.02 0.48 (0.46) 9.40 INVESTOR B SHARES Year ended 3/31/2001#............ $9.45 $0.39 $ 0.38 $ 0.77 $(0.39) $9.83 Year ended 3/31/2000#............ 9.99 0.38 (0.54) (0.16) (0.38) 9.45 Year ended 3/31/1999............. 9.95 0.38 0.04 0.42 (0.38) 9.99 Year ended 3/31/1998#............ 9.40 0.39 0.55 0.94 (0.39) 9.95 Year ended 3/31/1997............. 9.38 0.41 0.02 0.43 (0.41) 9.40 INVESTOR C SHARES Year ended 3/31/2001#............ $9.45 $0.29 $ 0.48 $ 0.77 $(0.39) $9.83 Year ended 3/31/2000#............ 9.99 0.38 (0.54) (0.16) (0.38) 9.45 Year ended 3/31/1999............. 9.95 0.37 0.04 0.41 (0.37) 9.99 Year ended 3/31/1998#............ 9.40 0.40 0.55 0.95 (0.40) 9.95 Year ended 3/31/1997............. 9.38 0.43 0.02 0.45 (0.43) 9.40
--------------- ++ 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. 302 307 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 YEAR AVERAGE NET TO AVERAGE TURNOVER AVERAGE RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS --------------------------------------------------------------------------------- 9.46% $19,709 0.60% 5.11% 17% 1.07% (0.69) 16,378 0.60 4.87 21 1.35 5.18 12,992 0.60(a) 4.66 11 1.11 11.11 11,026 0.59(a) 4.86 9 0.96 5.44 5,726 0.60(a) 5.10 37 0.98 9.20% $ 1,016 0.85% 4.86% 17% 1.32% (1.02) 590 0.83 4.64 21 1.60 4.98 965 0.80(a) 4.46 11 1.36 10.88 1,222 0.79(a) 4.66 9 1.16 5.23 726 0.80(a) 4.90 37 1.18 8.38% $10,570 1.60% 4.11% 17% 2.07% (1.61) 10,608 1.53 3.94 21 2.35 4.30 13,499 1.45(a) 3.81 11 2.11 10.21 13,082 1.41(a) 4.04 9 1.78 4.65 13,972 1.35(a) 4.35 37 1.73 8.35% $ 54 1.60% 4.11% 17% 2.07% (1.58) 3 1.60 3.87 21 2.35 4.21 3 1.45(a) 3.81 11 2.11 10.31 3 1.32(a) 4.13 9 1.69 4.92 45 1.10(a) 4.60 37 1.48
SEE NOTES TO FINANCIAL STATEMENTS. 303 308 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS Nations Fund Trust (the "Trust"), Nations Reserves ("Reserves") and Nations Funds Trust ("Funds Trust") are each registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. At March 31, 2001, the Trust offered thirty-four separate portfolios, Reserves offered sixteen separate portfolios and Funds Trust offered five separate portfolios. These financial statements pertain only to the municipal bond portfolios of the Trust, Reserves and Funds Trust: Short-Term Municipal Income Fund, Intermediate Municipal Bond Fund, Municipal Income Fund, California Municipal Bond Fund, Florida Intermediate Municipal Bond Fund, Florida Municipal Bond Fund, Georgia Intermediate Municipal Bond Fund, Georgia Municipal Bond Fund, Kansas Municipal Income Fund, Maryland Intermediate Municipal Bond Fund, Maryland Municipal Bond Fund, North Carolina Intermediate Municipal Bond Fund, North Carolina Municipal Bond Fund, South Carolina Intermediate Municipal Bond Fund, South Carolina Municipal Bond Fund, Tennessee Intermediate Municipal Bond Fund, Tennessee Municipal Bond Fund, Texas Intermediate Municipal Bond Fund, Texas Municipal Bond Fund, Virginia Intermediate Municipal Bond Fund and Virginia Municipal Bond Fund (each a "Fund" and collectively, the "Funds"). Financial statements for the other portfolios of the Trust, Reserves and Funds Trust are presented under separate cover. The Funds currently offer four classes of shares: Primary A Shares, Investor A Shares, Investor B Shares and Investor C Shares. Shareholders of a Fund have equal voting rights on matters affecting all shareholders of the Fund. In addition, each class of shares of a Fund has exclusive voting rights on matters that relate solely to that class and separate voting rights on matters in which the interests of one class differ from the interests of any other class. 1. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. Securities valuation: Securities are generally valued by an independent pricing service. These valuations are based upon a matrix system and/or appraisals which take into consideration such factors as yields, prices, maturities, redemption features and credit ratings on comparable securities. Certain securities may be valued based upon quotes provided by one or more principal market makers. Restricted securities, securities for which market quotations are not readily available, and certain other assets may be valued under procedures adopted by the Boards of Trustees. Short-term investments that mature in 60 days or less are valued at amortized cost, which approximates current market value. A Fund's municipal holdings may include obligations of issuers that rely in whole or in part for payment of interest and principal on state specific revenues, real property taxes, revenues from particular institutions, such as healthcare institutions, or obligations secured by mortgages on real property. Consequently, the impact of changes in state law or regulations or the economic conditions in a particular state should be considered. Securities transactions and investment income: Securities transactions are recorded on trade date. Realized gains and losses are computed based on the specific identification of securities sold. Interest income, adjusted for accretion of original issue 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. In November 2000, a revised AICPA Audit and Accounting Guide (the "Guide"), Audits of Investment Companies, was issued, and is effective for fiscal years beginning after December 15, 2000. The revised Guide will require all of the Funds to amortize premium and discount on all fixed income securities. Upon initial adoption, the Funds will be required to adjust the cost of their fixed-income securities by the cumulative amount of amortization that would have been recognized had amortization been in effect from the purchase date of each holding. Adopting this accounting principle will not affect the Funds' net asset value but will change the classification between interest income and realized and unrealized gain/loss in the Statements of operations. The Funds expect that the impact of the adoption of this principle will not be material to the financial statements. 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 304 309 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) instructs its custodian to segregate assets with a current value at least equal to the amount of its when-issued or delayed-delivery purchase commitments. Dividends and distributions to shareholders: It is the policy of each Fund to declare dividends from net investment income daily and to pay such dividends monthly. Each Fund will distribute net realized capital gains (including net short-term capital gains) at least annually after the fiscal year in which the capital gains were earned, unless offset by any available capital loss carryforward. Income distributions and capital gain distributions on a Fund level are determined in accordance with federal income tax regulations which may differ from accounting principles generally accepted in the United States of America. Certain reclassifications are made to each Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. These reclassifications are due to different book and tax accounting for market discount, dividends and use of the tax accounting practice known as equalization. Reclassifications for the period ended March 31, 2001 were as follows:
INCREASE/ (DECREASE) INCREASE/ INCREASE/ UNDISTRIBUTED (DECREASE) (DECREASE) NET ACCUMULATED PAID-IN INVESTMENT NET REALIZED CAPITAL INCOME GAIN/(LOSS) (000) (000) (000) ----------------------------------------- Short-Term Municipal Income.................. $ -- $ 11 $ (11) Intermediate Municipal Bond.................... -- 397 (397) Municipal Income.......... -- 197 (197) California Municipal Bond.................... 103 -- (103) Florida Intermediate Municipal Bond.......... -- 9 (9) Florida Municipal Bond.... 18 85 (103) Georgia Intermediate Municipal Bond.......... -- 66 (66) Georgia Municipal Bond.... (20) 25 (5) Kansas Municipal Income... 6 79 (85) Maryland Intermediate Municipal Bond.......... -- 47 (47) Maryland Municipal Bond... -- 39 (39) North Carolina Intermediate Municipal Bond.................... -- 32 (32) North Carolina Municipal Bond.................... -- 7 (7) South Carolina Intermediate Municipal Bond.................... -- 5 (5) South Carolina Municipal Bond.................... -- 6 (6) Tennessee Intermediate Municipal Bond.......... -- 7 (7) Tennessee Municipal Bond.................... -- 7 (7) Texas Intermediate Municipal Bond.......... -- 61 (61)
INCREASE/ (DECREASE) INCREASE/ INCREASE/ UNDISTRIBUTED (DECREASE) (DECREASE) NET ACCUMULATED PAID-IN INVESTMENT NET REALIZED CAPITAL INCOME GAIN/(LOSS) (000) (000) (000) ----------------------------------------- Texas Municipal Bond...... -- (8) 8 Virginia Intermediate Municipal Bond.......... -- -- -- Virginia Municipal Bond... (2) 2 --
Federal income tax: Each Fund intends to continue to qualify as a regulated investment company by complying with the applicable requirements of the Internal Revenue Code of 1986, as amended, and by distributing substantially all of its earnings to its shareholders. Therefore, no provision is made for federal income or excise taxes. Expenses: General expenses of the Trust, Reserves and Funds Trust are allocated to the Funds based upon their relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund or class of shares are charged to such Fund or class. 2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS Each of the Trust, Reserves and Funds Trust has entered into an investment advisory agreement (the "Investment Advisory Agreements") with Banc of America Advisors, Inc. ("BAAI"), a wholly-owned subsidiary of Bank of America, N.A. ("Bank of America"), which in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a bank holding company organized as a Delaware corporation, pursuant to which BAAI provides investment advisory services to the Funds. Under the terms of the Investment Advisory Agreements, BAAI is entitled to receive an advisory fee, calculated daily and payable monthly, based on the following annual rates multiplied by the average daily net assets of each Fund:
ANNUAL RATE ----------- Short-Term Municipal Income................. 0.30% Intermediate Municipal Bond and eight single-state Intermediate Municipal Bond Funds..................................... 0.40% Municipal Income and ten single-state Municipal Bond Funds...................... 0.50%
Each of the Trust, Reserves and Funds Trust has entered into a sub-advisory agreement with BAAI and Banc of America Capital Management, Inc. ("BACAP"), a wholly-owned subsidiary of Bank of America, pursuant to which BACAP is entitled to receive a sub-advisory fee 305 310 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) from BAAI at the maximum annual rate of 0.07% of each Fund's average daily net assets. Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust, Reserves and Funds Trust. Under the co-administration agreements, Stephens and BAAI are currently entitled to receive a combined fee, computed daily and paid monthly, at the maximum annual rate of 0.22% of each Fund's average daily net assets. The Bank of New York ("BNY") serves as sub-administrator of the Trust, Reserves and Funds Trust pursuant to agreements with BAAI. For the year ended March 31, 2001, Stephens and BAAI earned 0.04% and 0.11%, respectively, of the Funds' average daily net assets for their co-administration services. BAAI and/or the sub-adviser and Stephens may, from time to time, reduce their fees payable by each Fund. During the year ended March 31, 2001 and until July 31, 2001, BAAI and/or the sub-adviser and 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 eight single-state Intermediate Municipal Bond Funds..................................... 0.50% Municipal Income and ten single-state Municipal Bond Funds...................... 0.60%
BNY serves as the custodian of the Trust's, Reserves' and 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 year ended March 31, 2001, Bank of America earned approximately $81,493 for providing such services. Stephens also serves as distributor of the Funds' shares. For the year ended March 31, 2001, the Funds were informed that the distributor received $237,876 in front-end sales charges for sales of Investor A Shares and $175,889 in contingent deferred sales charges from redemption of shares which were subject to such charges. A substantial portion of these fees is paid to affiliates of Bank of America. No officer, director or employee of Bank of America, BAAI or BACAP, or any affiliate thereof, receives any compensation from the Trust, Reserves and Funds Trust for serving as Trustee or Officer of the Trust, Reserves and Funds Trust. The Trust's, Reserves' and Funds Trust's eligible Trustees may participate in non-qualified deferred compensation and retirement plans which may be terminated at any time. All benefits provided under these plans are unfunded and any payments to plan participants are paid solely out of the Funds' assets. Income earned on each plan participant's deferral account is 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 Fund, a portfolio of Nations Fund, Inc., another registered investment company in the Nations' Funds family. The expense for the deferred compensation and retirement plans is included in "Trustees' fees and expenses" in the Statements of operations. Certain Funds have made daily investments of cash balances in Nations Municipal Reserves, a portfolio of Reserves, pursuant to an exemptive order received from the Securities and Exchange Commission. For the year ended March 31, 2001, the Funds earned $2,248,878 in the aggregate from such investments, which is included in interest income. A significant portion of each Fund's Primary A Shares represents investments by fiduciary accounts over which Bank of America has either sole or joint investment discretion. 3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS The Trust, Reserves and Funds Trust each has adopted shareholder servicing plans and distribution plans for the Investor A, Investor B and Investor C Shares of each Fund. The shareholder servicing plans permit the Funds to compensate or reimburse servicing agents for shareholder services provided by the servicing agents. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Funds to compensate or reimburse the distributor (and for Investor A Shares, the distributor and/or selling agents) for activities or expenses primarily intended to result in the sale of the classes' shares. Payments under the Investor A combined shareholder servicing and distribution plan are limited to 0.25% of Investor A average daily net assets. Payments under the shareholder servicing plan and distribution plan, respectively, for both Investor B and Investor C Shares are limited to 0.25% and 0.75% of each respective class's average daily net assets. Payments are made at an annual rate, as a percentage of average daily net assets, set from time to time by the Boards of Trustees, and are 306 311 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) charged as expenses of each Fund directly to the applicable class. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of Bank of America and BAAI. During the year ended March 31, 2001, and until July 31, 2001, the annual rates in effect and plan limits, as a percentage of average daily net assets, were and will be as follows:
CURRENT PLAN RATE LIMIT ------------------ INVESTOR A COMBINED DISTRIBUTION AND SHAREHOLDER SERVICING PLAN: Municipal Income and California Municipal Bond................. 0.25%* 0.25% All other Funds.................. 0.25% 0.25% INVESTOR B AND INVESTOR C SHAREHOLDER SERVICING PLANS...... 0.25% 0.25% INVESTOR B DISTRIBUTION PLAN: Short-Term Municipal Income...... 0.75% 0.75% Intermediate Municipal Bond and the eight single-State Intermediate Municipal Bond Funds.......................... 0.75% 0.75% Municipal Income and the eight single-state Municipal Bond Funds.......................... 0.75% 0.75% California Municipal Bond........ 0.75%** 0.75% INVESTOR C DISTRIBUTION PLAN....... 0.75% 0.75%
--------------- * Prior to August 1, 2000 the rate was 0.20%. In addition, a separate shareholder servicing plan has been adopted for Investor A Shares of Short-Term Municipal Income. ** Prior to August 1, 2000 the rate was 0.60%. 4. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, excluding long-term U.S. government securities and short-term investments, for the year ended March 31, 2001 were as follows:
PURCHASES SALES (000) (000) --------------------- Short-Term Municipal Income..... $ 76,752 $ 46,773 Intermediate Municipal Bond..... 522,750 172,012 Municipal Income................ 427,259 144,654 California Municipal Bond....... 38,371 36,396 Florida Intermediate Municipal Bond.......................... 38,349 12,696 Florida Municipal Bond.......... 10,229 12,157 Georgia Intermediate Municipal Bond.......................... 13,050 14,182 Georgia Municipal Bond.......... 3,926 2,740 Kansas Municipal Income......... 17,637 26,872
PURCHASES SALES (000) (000) --------------------- Maryland Intermediate Municipal Bond.......................... 38,163 24,625 Maryland Municipal Bond......... $ 8,860 $ 8,851 North Carolina Intermediate Municipal Bond................ 46,563 34,863 North Carolina Municipal Bond... 7,582 7,202 South Carolina Intermediate Municipal Bond................ 33,403 20,384 South Carolina Municipal Bond... 2,779 8,217 Tennessee Intermediate Municipal Bond.......................... 4,722 4,701 Tennessee Municipal Bond........ 878 1,809 Texas Intermediate Municipal Bond.......................... 17,051 59,122 Texas Municipal Bond............ 1,260 3,192 Virginia Intermediate Municipal Bond.......................... 42,412 25,493 Virginia Municipal Bond......... 5,143 4,893
There were no purchases and sales of long-term U.S. government securities for the year ended March 31, 2001. 5. SHARES OF BENEFICIAL INTEREST As of March 31, 2001, an unlimited number of shares of beneficial interest without par value were authorized for each of the Trust, Reserves and Funds Trust. The Trust's, Reserves' and Funds Trust's Declarations of Trust authorize the Boards of Trustees to classify or reclassify any authorized but unissued shares into one or more additional classes or series of shares. See Schedules of capital stock activity. 6. LINES OF CREDIT The Trust, Reserves and Funds Trust each participate with other Nations Funds in an uncommitted line of credit provided by BNY under a line of credit agreement (the "Agreement"). Advances under the Agreement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at a specified Federal Funds rate plus 0.50% on an annualized basis. Each participating Fund maintains a ratio of 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 March 31, 2001, there were no loans outstanding under this Agreement. For the year ended March 31, 307 312 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) 2001, borrowings by the Funds under the Agreement were as follows:
AVERAGE AMOUNT AVERAGE OUTSTANDING INTEREST FUND (000) RATE ----------------------------------------------------------- Short-Term Municipal Income....... $ 9 6.85% Intermediate Municipal Bond....... 28 6.93 Municipal Income.................. 11 6.64 California Municipal Bond......... 19 6.75 Florida Intermediate Municipal Bond............................ 15 7.00 Florida Municipal Bond............ 5 6.68 Georgia Intermediate Municipal Bond............................ 4 6.95 Georgia Municipal Bond............ 2 7.04 Kansas Municipal Income........... 51 6.80 Maryland Municipal Bond........... 1 7.02 North Carolina Intermediate Municipal Bond.................. 4 7.03 North Carolina Municipal Bond..... 7 7.02 South Carolina Intermediate Municipal Bond.................. 39 6.48 South Carolina Municipal Bond..... 9 6.52 Tennessee Intermediate Municipal Bond............................ 3 6.85 Tennessee Municipal Bond.......... 4 6.96 Texas Intermediate Municipal Bond............................ 77 6.89 Texas Municipal Bond.............. 2 6.64
The average amount outstanding was calculated based on daily balances in the period. The Trust, Reserves and Funds Trust also participated with other Nations Funds in a committed line of credit provided by BNY that was terminated on December 7, 2000. Interest on borrowings under the committed line was payable at a specified Federal Funds rate plus 0.50% on an annualized basis. A facility fee of 0.09% per annum of the total amounts available under the line of credit was charged, of which each Fund paid its pro rata share. This fee was paid quarterly in arrears. Each participating Fund was required to maintain an asset coverage ratio of at least 300% under the terms of the arrangement. For the period ended December 7, 2000, there were no borrowings by the Funds under the committed line of credit. 7. CAPITAL LOSS CARRYFORWARD At March 31, 2001, the following Funds had available for federal income tax purposes the following unused capital losses expiring March 31:
2002 2003 2004 2005 2006 2007 2008 2009 FUND (000) (000) (000) (000) (000) (000) (000) (000) --------------------------------------------------------------------------------------------------------------------- Short-Term Municipal Income......................... -- -- $ 25 -- -- -- -- $ 360 Intermediate Municipal Bond......................... -- -- -- -- -- -- $2,425 347 Municipal Income.................................... -- -- -- -- -- -- 1,402 734 Florida Intermediate Municipal Bond................. -- -- 498 $ 22 -- -- 717 24 Georgia Intermediate Municipal Bond................. -- -- -- -- -- -- 516 608 Georgia Municipal Bond.............................. -- $189 -- -- -- -- 249 543 Maryland Intermediate Municipal Bond................ -- -- -- -- -- -- 209 1,179 Maryland Municipal Bond............................. -- -- -- -- -- -- 149 614 North Carolina Intermediate Municipal Bond.......... -- -- -- -- -- -- 366 1,511 North Carolina Municipal Bond....................... $208 425 -- 207 -- -- -- 769 South Carolina Intermediate Municipal Bond.......... -- -- -- -- -- -- 24 530 South Carolina Municipal Bond....................... -- -- -- -- $15 -- 112 454 Tennessee Intermediate Municipal Bond............... -- -- -- -- -- -- 315 43 Tennessee Municipal Bond............................ -- 25 -- -- -- -- 64 10 Texas Intermediate Municipal Bond................... -- -- -- -- -- -- 1,036 3,460 Texas Municipal Bond................................ 92 132 -- -- -- -- 75 87 Virginia Intermediate Municipal Bond................ -- -- -- -- -- -- 232 1,953 Virginia Municipal Bond............................. 326 77 12 63 -- -- 139 294
308 313 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) During the year ended March 31, 2001, the following Funds utilized capital losses as follows:
CAPITAL LOSSES UTILIZED FUND (000) ---------------------------------------------------------------------- North Carolina Municipal Bond............................... $27
Under the current tax law, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended March 31, 2001, the following Funds elected to defer losses occurring between November 1, 2000 and March 31, 2001 under these rules:
POST-OCTOBER CAPITAL LOSSES DEFERRED FUND (000) -------------------------------------------------------------------------- Short-Term Municipal Income................................. $ 14 Intermediate Municipal Bond................................. 907 Florida Intermediate Municipal Bond......................... 138 Georgia Intermediate Municipal Bond......................... 15 Maryland Municipal Bond..................................... * South Carolina Municipal Bond............................... 119
--------------- * Amount represents less than $500. 8. REORGANIZATIONS ACQUISITION OF PACIFIC HORIZON FUNDS On May 14, 1999, the Municipal Income Fund (the "Acquiring Fund"), acquired the assets and assumed the liabilities of the Pacific Horizon National Municipal Bond Fund (the "Acquired Fund"), in a tax-free reorganization in exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired Fund's shareholders. The number and value of shares issued by the Acquiring Fund are presented in the Schedules of capital stock activity. Net assets and unrealized appreciation as of the reorganization date were as follows:
TOTAL NET ASSETS TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION (000) (000) (000) (000) ---------------------------------------------------------------------------------- $19,123 $664,545 $683,668 $621
On May 21, 1999, the California Municipal Bond Fund, a newly established portfolio, acquired the assets and assumed the liabilities of the Pacific Horizon California Municipal Bond Fund pursuant to a plan of reorganization approved by its shareholders. The acquisition was accomplished by a tax-free exchange of shares of California Municipal Bond Fund in an amount equal to the value of the outstanding shares of the Pacific Horizon California Municipal Bond Fund. The financial statements of the California Municipal Bond Fund reflect the historical financial results of the Pacific Horizon California Municipal Bond Fund prior to the reorganization.
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS --------------------------------------------------------------------- California Municipal Bond Nations California Municipal Bond A Shares Investor A Shares B Shares Investor B Shares
309 314 NATIONS FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) CONVERSION OF COMMON TRUST FUNDS On July 14, 2000, certain Funds, as listed below (each an "Acquiring Fund"), acquired the assets of certain common trust funds, managed by Bank of America, 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 TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND OF ACQUIRED FUND OF ACQUIRING FUND AFTER CONVERSION UNREALIZED APPRECIATION ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000) -------------------------------------------------------------------------------------------------------------------------------- Intermediate Boatmen's Trust Municipal Bond Company Intermediate Tax-Exempt Bond Fund $203,437 $854,161 $1,057,598 $ 175 Intermediate Bank IV Kansas U.S. Municipal Bond Tax Exempt Bond Fund 24,435 854,161 878,596 74 Intermediate BCA High Grade Tax Municipal Bond Exempt Bond Fund 126,314 854,161 980,475 1,523 Municipal Income Boatmen's Trust Company Tax Exempt Bond Fund 332,899 588,608 921,507 12,881
On July 14, 2000, the Kansas Municipal Income Fund, a newly established portfolio, acquired the assets and assumed the liabilities of the Bank of America Common Trust Kansas Tax Exempt Fund, a common trust fund managed by Bank of America, pursuant to a plan of reorganization approved by its shareholders. The acquisition was accomplished by a tax-free exchange of shares of the Kansas Municipal Income Fund in an amount equal to the outstanding shares of the Bank of America Common Trust Kansas Tax Exempt Fund. 9. SUBSEQUENT EVENT On April 5, 2001, BAAI and BACAP reorganized into successor entities named Banc of America Advisors, LLC and Banc of America Capital Management, LLC, respectively. The successor entities are organized as limited liability companies under the laws of the State of North Carolina. 310 315 NATIONS FUNDS REPORT OF INDEPENDENT ACCOUNTANTS TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUNDS In our opinion, the accompanying statements of net assets, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nations Short-Term Municipal Income Fund, Nations Intermediate Municipal Bond Fund, Nations Municipal Income Fund, Nations California Municipal Bond Fund, Nations Florida Intermediate Municipal Bond Fund, Nations Florida Municipal Bond Fund, Nations Georgia Intermediate Municipal Bond Fund, Nations Georgia Municipal Bond Fund, Nations Kansas Municipal Income Fund, Nations Maryland Intermediate Municipal Bond Fund, Nations Maryland Municipal Bond Fund, Nations North Carolina Intermediate Municipal Bond Fund, Nations North Carolina Municipal Bond Fund, Nations South Carolina Intermediate Municipal Bond Fund, Nations South Carolina Municipal Bond Fund, Nations Tennessee Intermediate Municipal Bond Fund, Nations Tennessee Municipal Bond Fund, Nations Texas Intermediate Municipal Bond Fund, Nations Texas Municipal Bond Fund, Nations Virginia Intermediate Municipal Bond Fund and Nations Virginia Municipal Bond Fund (constituting part of Nations Fund Trust, Nations Reserves and Nations Funds Trust, hereafter collectively referred to as the "Funds") at March 31, 2001, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2001 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP New York, New York May 16, 2001 311 316 NATIONS FUNDS TAX INFORMATION (UNAUDITED) For the year ended March 31, 2001, all of the distributions made from net investment income of the Nations Municipal Bond Funds are tax exempt for Federal income tax purposes. A portion of the income may be subject to Federal Alternative Minimum Tax. For the fiscal year ended March 31, 2001, the amount of long-term capital gains designated by the Trust, Reserves and Funds Trust were as follows:
FUND TOTAL ---------------------------------------------------------------------- California Municipal Bond................................... $551,008 Florida Municipal Bond...................................... 176,431 Kansas Municipal Income..................................... 21,005
312 317 (This page intentionally left blank) 318 THE NATIONS FUNDS FAMILY OF FUNDS A spectrum of fund choices for building a total asset-allocation strategy LOWER RISK/REWARD POTENTIAL MONEY MARKET FUNDS Nations Prime Fund Nations Cash Reserves Nations Money Market Reserves Nations Government Money Market Fund Nations Government Reserves Nations Treasury Fund Nations Treasury Reserves Nations Tax Exempt Fund Nations Municipal Reserves Nations California Tax-Exempt Reserves FIXED INCOME FUNDS INCOME FUNDS Nations High Yield Bond Fund Nations Strategic Income Fund Nations U.S. Government Bond Fund Nations Government Securities Fund Nations Bond Fund Nations Intermediate Bond Fund Nations Short-Intermediate Government Fund Nations Short-Term Income Fund TAX-EXEMPT INCOME FUNDS Nations Municipal Income Fund Nations State-Specific Long-Term Municipal Bond Funds (CA, FL, GA, KS, MD, NC, SC, TN, TX, VA) Nations Intermediate Municipal Bond Fund Nations State-Specific Intermediate Municipal Bond Funds (FL, GA, MD, NC, SC, TN, TX, VA) Nations Short-Term Municipal Income Fund EQUITY FUNDS GROWTH FUNDS Nations Financial Services Fund Nations Small Company Fund Nations Marsico 21st Century Fund Nations MidCap Growth Fund Nations Marsico Focused Equities Fund Nations Aggressive Growth Fund Nations Capital Growth Fund Nations Strategic Growth Fund Nations Blue Chip Fund GROWTH AND INCOME FUNDS Nations Marsico Growth & Income Fund Nations Value Fund Nations Classic Value Fund Nations Equity Income Fund Nations Asset Allocation Fund Nations Balanced Assets Fund Nations Convertible Securities Fund INTERNATIONAL/GLOBAL FUNDS Nations Emerging Markets Fund Nations Marsico International Opportunities Fund Nations International Equity Fund Nations International Value Fund Nations Global Value Fund HIGHER RISK/REWARD POTENTIAL INDEX FUNDS Nations Managed Index Fund Nations LargeCap Index Fund Nations MidCap Index Fund Nations SmallCap Index Fund ASSET ALLOCATION PORTFOLIOS Nations LifeGoal Balanced Growth Portfolio Nations LifeGoal Growth Portfolio Nations LifeGoal Income and Growth Portfolio MUNIAR (3/01)