-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GgGFoRagUW78/uQcFrMC8svb+6QycUecVG5Jf95qSpS5Duf5n+oXckr2Gkg6Rrq5 exFNDTaANSoBerLVTn26GA== 0000903893-96-000001.txt : 19960104 0000903893-96-000001.hdr.sgml : 19960104 ACCESSION NUMBER: 0000903893-96-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951031 FILED AS OF DATE: 19960103 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONS INSTITUTIONAL RESERVES CENTRAL INDEX KEY: 0000859750 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06030 FILM NUMBER: 96500516 BUSINESS ADDRESS: STREET 1: ONE NATIONSBANK PLZ CITY: CHARLOTTE STATE: NC ZIP: 28255 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: ONE NATIONSBANK PLAZA CITY: CHARLOTTE STATE: NC ZIP: 28255 FORMER COMPANY: FORMER CONFORMED NAME: CAPITOL MUTUAL FUNDS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SEI CAPITOL FUNDS DATE OF NAME CHANGE: 19900318 N-30D 1 SEMI-ANNUAL REPORT Dear Shareholder: We are pleased to present this Semiannual Report for Nations Institutional Reserves, formerly known as The Capitol Mutual Funds. The Nations Institu- tional Reserves consists of Nations Cash Reserves, Nations Treasury Re- serves, Nations Government Reserves and Nations Municipal Reserves. We have renamed the Funds to better reflect their suitability as premier short-term institutional investment vehicles. For the six-month period ended October 31, 1995, the Funds continued to provide a high level of performance relative to competitive funds within the industry. Combined assets reached $1.4 billion by the end of the reporting period. ECONOMIC SUMMARY Following the wave of monetary tightening in 1994 and 1995, yields on in- stitutional money market funds reached their highest levels in over three years. The impact of these high short-term rates was a relatively flat yield curve. The spread between the Lehman Long-Term Treasury Index and the 90-day U.S. Treasury Bill ("T-Bill") as of the beginning of the re- porting period was only 171 basis points. By mid-summer, however, infla- tionary pressures eased and the Federal Reserve Board lowered rates by 25 basis points to help ward off any possibility of recession. This monetary adjustment resulted in lower money market yields. The 90-day T-Bill yield dropped from 5.69% to 5.32% and, the 30-day yield for the IBC/Donoghue First Tier Institutional Average fell from 5.83% to 5.50% for the period.* PORTFOLIO OVERVIEW The Nations Institutional Reserves portfolios were positioned to maintain competitive yields during the changing interest rate environment. The 30- day yields as of October 31, 1995 for Nations Cash Reserves, Nations Trea- sury Reserves, Nations Government Reserves and Nations Municipal Reserves ranked among the top 10 yields in their respective IBC/Donoghue catego- ries.** Given the competitive nature of the institutional money market sector, this was no small achievement. Weighted average maturities across the portfolios were longer than during the previous six-month period, ranging from 54 to 82 days. The extension of maturities combined with ef- fective security selection were the drivers that kept yields consistently higher relative to the money market fund industry as a whole. SIX-MONTH PERFORMANCE OF 7-DAY YIELDS FOR NATIONS CASH RESERVES -- CAPITAL SHARES*** [ ] Nations Cash Reserves--Capital Shares [ ] IBC/Donoghue's First Tier Inst-only Average*
CASH INSTITUTIONAL RESERVES A FIRST TIER April 6.04 5.85 May 6.06 5.83 June 6.05 5.79 July 5.84 5.66 August 5.80 5.57 September 5.87 5.54 October 5.74 5.52 * IBC/Donoghue is an independent monitor of money market fund perfor- mance. ** Nations Cash Reserves: IBC/Donoghue First Tier Institutional Only (110 funds); Nations Treasury Reserves and Nations Government Re- serves: IBC/Donoghue Government Only Institutional Only (149 funds); Nations Municipal Reserves: IBC/Donoghue Tax Free Institutional Only (60 funds). *** Performance for other classes will vary.
30-DAY YIELDS**** as of October 31, 1995 (unaudited)
CAPITAL LIQUIDITY ADVISER IBC/DONOGHUE PEER SHARES SHARES SHARES GROUP AVERAGES***** Nations Cash Reserves 5.74% 5.59% 5.49% 1st Tier-Inst-only 5.50% Nations Treasury Reserves 5.62% 5.47% 5.37% Government-Inst-only 5.35% Nations Government Reserves 5.65% 5.45% 5.35% Tax Free-Inst-only 3.48% Nations Municipal Reserves 3.66% 3.51% 3.41%
CURRENT 7-DAY YIELDS**** as of October 31, 1995 (unaudited)
CAPITAL LIQUIDITY ADVISER SHARES SHARES SHARES Nations Cash Reserves 5.74% 5.59% 5.49% Nations Treasury Reserves 5.62% 5.47% 5.37% Nations Government Reserves 5.59% 5.44% 5.34% Nations Municipal Reserves 3.78% 3.63% 3.53%
The attached financial report provides more specific information on your portfolio investments. Please review it carefully. We thank you for choos- ing Nations Institutional Reserves to pursue your short-term investment needs. Sincerely, A. Max Walker President and Chairman of the Board October 31, 1995 **** The 30-day and 7-day net annualized yields are based on the average net income per share for the thirty days ended October 31, 1995, and the seven days ended on October 31, 1995, respectively, and the of- fering price on that date. The 30- day yield is compounded and annu- alized. The yields quoted include the effects of voluntary expense waivers by the Portfolios' investment adviser. If these waivers were not in effect, yields would have been lower. ***** Source: Money Market Insight, a monthly publication of IBC/Dono- ghue, Inc. IBC/Donoghue is an independent money market performance monitor. Money market funds seek to maintain a stable net asset value of $1.00 per share. However, there is no assurance the money market funds will be able to maintain a stable net asset value of $1.00. Yields will fluctuate as market conditions change. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. NOT MAY LOSE VALUE FDIC- NO BANK GUARANTEE INSURED Nations Institutional Reserves Distributor: Stephens Inc. Stephens Inc., which is not affiliated with NationsBank, N.A., is not a bank and securi- ties offered by it are not guaranteed by any bank or insured by the FDIC. Stephens Inc., member NYSE-SIPC. STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1995 (unaudited)
PRINCIPAL MATURITY VALUE AMOUNT NATIONS CASH RESERVES DATE (NOTE 1) CERTIFICATES OF DEPOSIT -- EURO -- 0.7% (Cost $5,000,333) Mitsubishi Bank Ltd., $ 5,000,000 5.860% 01/31/96 $ 5,000,333 COMMERCIAL PAPER -- 30.4% American Home Products Corpora- tion, 30,000,000 Discount note# 02/06/96 29,539,250 Countrywide Funding Corporation, 30,000,000 Discount note 11/28/95 29,870,175 Finova Capital Corporation, 9,000,000 Discount note 11/13/95 8,982,750 Newell Company, 30,000,000 Discount note# 11/15/95 29,932,800 Quaker Oats Corporation: 18,000,000 Discount note 11/10/95 17,974,035 12,000,000 Discount note 11/14/95 11,974,997 Sheffield Receivables Corpora- tion, 30,000,000 Discount note 11/01/95 30,000,000 Sumitomo Corporation of America, 20,000,000 Discount note 03/25/96 19,540,833 Tri-Lateral Capital (U.S.A.) Inc., 25,000,000 Discount note# 01/22/96 24,655,486 Total Commercial Paper (Cost $202,470,326) 202,470,326 CORPORATE OBLIGATIONS -- 13.3% Chrysler Financial Corporation, 5,000,000 6.000% 06/03/96 4,998,243 CIT Group Holdings, 7,000,000 8.875% 06/15/96 7,121,124 Commercial Credit Corporation, 6,725,000 6.375% 01/01/96 6,711,904 CS First Boston Inc., 25,000,000 5.910%+ 11/02/95++ 25,000,000 Ford Motor Credit Company, 5,000,000 6.125% 12/01/95 4,995,789 General Motors Acceptance Corpo- ration, 25,000,000 5.850%+ 11/01/95++ 24,992,869 General Motors Acceptance Corpo- ration, $ 5,000,000 6.138%+ 01/16/96++ $ 5,000,328 International Lease Finance Cor- poration, 5,000,000 5.750% 01/15/96 4,982,977 Norwest Financial Inc., 5,000,000 7.250% 11/01/95 5,000,000 Total Corporate Obligations (Cost $88,803,234) 88,803,234 MEDIUM TERM NOTES -- 5.3% IBM Credit Corporation, 5,000,000 6.475% 04/04/96 4,999,867 Merrill Lynch & Company, 30,000,000 5.900% 10/30/96 30,000,000 Total Medium Term Notes (Cost $34,999,867) 34,999,867 PROMISSORY NOTE -- 4.5% (Cost $30,000,000) Goldman Sachs Group, Limited Partnership,** 30,000,000 5.875% 04/16/96 30,000,000 U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.8% Federal National Mortgage Asso- ciation (FNMA), Convertible Note, 20,000,000 5.813% 10/04/96 19,994,239 Student Loan Marketing Associa- tion (SLMA) Note, 5,000,000 5.680%+ 11/07/95++ 5,000,000 Total U.S. Government Agency Obligations (Cost $24,994,239) 24,994,239 U.S. TREASURY OBLIGATION -- 0.8% (Cost $5,075,159) U.S. Treasury Note, 5,000,000 7.875% 07/31/96 5,075,159 REPURCHASE AGREEMENTS -- 43.6% 145,000,000 Agreement with Lehman Brothers, Inc., 5.880% dated 10/31/95 to be repurchased at $145,023,683 on 11/01/95, collateralized by $131,190,000 U.S. Treasury Bonds, with vari- ous maturities and coupon rates (value $147,813,448) 145,000,000 145,000,000 Agreement with Merrill Lynch Government Secu- rities Inc., 5.880% dated 10/31/95 to be repurchased at $145,023,683 on 11/01/95, collateralized by $143,935,000 U.S. Treasury Note, 6.250% due 8/31/00 (value $147,900,285) 145,000,000 Total Repurchase Agreements (Cost $290,000,000) 290,000,000 Value Shares Note MONEY MARKET FUNDS -- 1.3% 8,611,000 Dreyfus Cash Management Plus Fund $ 8,611,000 264,500 Fidelity Institutional Cash Variable Rate Fund 264,500 Total Money Market Funds (Cost $8,875,500) 8,875,500 TOTAL INVESTMENTS (Cost $690,218,658*) 103.7 % 690,218,658 OTHER ASSETS AND LIABILITIES (NET) (3.7)% Due from investment adviser 64,504 Other assets 2,326,230 Payable for investment securities purchased (25,000,000) Dividends payable (2,031,261) Administration fee payable (19,489) Shareholder servicing and distribution fees payable (13,470) Custodian fees payable (3,322) Accrued Trustees' fees and expenses (2,525) Accrued expenses and other payables (75,006) TOTAL OTHER ASSETS AND LIABILITIES (NET) (24,754,339) NET ASSETS 100.0 % $665,464,319 NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Shares (formerly Class A Shares): ($594,116,432 / 594,120,261 shares outstand- ing) $ 1.00 Liquidity Shares (formerly Class B Shares): ($11,630,747 / 11,630,822 shares outstand- ing) $ 1.00 Adviser Shares (formerly Class C Shares): ($59,717,140 / 59,717,524 shares outstand- ing) $ 1.00 * Aggregate cost for Federal tax purposes. ** Restricted Security. + Floating Rate Note. The interest rate shown reflects the rate currently in effect. ++ Reset date. # Securities are not registered under the Securities Act of 1933. These securi- ties may be resold in transactions exempt from registration to qualified in- stitutional buyers. AT OCTOBER 31, 1995 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold $ (4,288) Paid-in capital 665,468,607 TOTAL NET ASSETS $665,464,319
See Notes to Financial Statements. STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1995 (unaudited)
PRINCIPAL MATURITY VALUE AMOUNT NATIONS TREASURY RESERVES DATE (NOTE 1) U.S. TREASURY OBLIGATIONS -- 34.2% U.S. TREASURY BILLS -- 26.2% $ 5,000,000 Discount note# 11/02/95 $ 4,999,233 5,000,000 Discount note# 11/09/95 4,994,222 35,000,000 Discount note# 11/16/95 34,921,452 5,000,000 Discount note# 12/07/95 4,972,400 5,000,000 Discount note# 01/11/96 4,947,440 5,000,000 Discount note# 02/08/96 4,920,250 30,000,000 Discount note# 04/04/96 29,310,430 5,000,000 Discount note# 05/02/96 4,866,817 5,000,000 Discount note# 07/25/96 4,798,267 5,000,000 Discount note 08/22/96 4,777,521 15,000,000 Discount note# 08/22/96 14,332,562 15,000,000 Discount note 10/17/96 14,224,388 132,064,982 U. S. TREASURY NOTES -- 8.0% 5,000,000 4.250%# 11/30/95 4,992,939 5,000,000 4.250% 12/31/95 4,981,729 5,000,000 4.625%# 02/15/96 4,981,875 5,000,000 4.625% 02/29/96 4,977,602 5,000,000 5.875% 05/31/96 4,997,855 5,000,000 7.875% 07/31/96 5,075,159 10,000,000 6.500% 09/30/96 10,075,950 40,083,109 Total U.S. Treasury Obligations (Cost $172,148,091) 172,148,091 REPURCHASE AGREEMENTS -- FIXED RATE -- 81.0% 123,202,000 Agreement with CS First Boston Corporation, Interest is payable monthly. The agreement is terminable by the Portfolio daily. The final maturity date of the agreement is 07/01/96, collateralized by $186,523,308 U.S. Treasury Obligations, with various ma- turities (value $125,666,042)## 123,202,000 25,000,000 Agreement with Deutsche Bank Financial Inc., 5.875% dated 10/31/95 to be repurchased at $25,004,080 on 11/01/95, collateralized by $22,497,000 U.S. Treasury Obligations, with various maturities and coupon rates (value $25,500,857) 25,000,000 $ 25,000,000 Agreement with Goldman Sachs & Company, 5.880% dated 10/31/95 to be repurchased at $25,004,083 on 11/01/95, collateralized by $19,514,000 U.S. Treasury Bonds, 8.875% due 02/15/19 (value $25,500,247) $ 25,000,000 25,000,000 Agreement with HSBC Securities, 5.880% dated 10/31/95 to be repurchased at $25,004,083 on 11/01/95, collateralized by $24,720,000 U.S. Treasury Obligations, with various maturities and coupon rates (value $25,500,310) 25,000,000 10,000,000 Agreement with Lehman Government Securities, Inc., 5.700% dated 10/17/95 to be repurchased at $10,031,667 on 11/06/95, collateralized by $8,815,000 U.S. Treasury Bonds, 7.500% due 11/15/16 (value $10,196,655) 10,000,000 25,000,000 Agreement with Merrill Lynch & Company, Inc., 5.880% dated 10/31/95 to be repurchased at $25,004,083 on 11/01/95, collateralized by $24,820,000 U.S. Treasury Note, 6.250% due 08/31/00 (value $25,503,769) 25,000,000 25,000,000 Agreement with Morgan (J.P.) & Company, Inc., 5.875% dated 10/31/95 to be repurchased at $25,004,080 on 11/01/95, collateralized by $90,027,000 U.S. Treasury Obligations, with various maturities and coupon rates (value $25,500,121) 25,000,000 25,000,000 Agreement with Smith Barney & Company, 5.880% dated 10/31/95 to be repurchased at $25,004,083 on 11/01/95, collateralized by $24,072,000 U.S. Treasury Obligations, with various maturities and coupon rates (value $25,500,357) 25,000,000 125,000,000 Agreement with UBS Securities, Inc., 5.880% dated 10/31/95 to be repurchased at $125,020,417 on 11/01/95, collateralized by $125,174,000 U.S. Treasury Obligations, with various maturities and coupon rates (value $127,500,447) 125,000,000 Total Repurchase Agreements -- Fixed Rate (Cost $408,202,000) 408,202,000 REPURCHASE AGREEMENTS -- TERM -- 6.9% 10,000,000 Agreement with Lehman Government Securities, Inc., 5.855%+, terminable by the Portfolio within seven calendar days, with a final maturity date of 11/02/95. Interest receivable as of 10/31/95 was $41,297, collateralized by $8,815,000 U.S. Treasury Bond, 7.500% due 11/15/16 (value $10,196,655) 10,000,000 25,000,000 Agreement with Morgan Stanley Group Inc.,** 5.700%, dated 10/20/95, to be repurchased on 11/17/95. Interest receivable as of 10/31/95 was $47,500, collateralized by $26,360,000 U.S. Treasury Note, 4.750% due 10/31/98 (value $25,626,669) 25,000,000 Total Repurchase Agreements -- Term (Cost $35,000,000) 35,000,000 Shares MONEY MARKET FUNDS -- 2.6% 3,058,000 AIM Treasury Fund $ 3,058,000 5,662,000 Dreyfus Treasury Cash Management Fund 5,662,000 4,233,000 Fidelity Institutional Cash Portfolio Fund 4,233,000 Total Money Market Funds (Cost $12,953,000) 12,953,000 TOTAL INVESTMENTS (Cost $628,303,091*) 124.7 % 628,303,091 OTHER ASSETS AND LIABILITIES (NET) (24.7)% Due from investment adviser 130,064 Other assets 801,252 Payable for reverse repurchase agreement (123,202,000) Dividends payable (2,030,977) Administration fee payable (19,393) Shareholder servicing and distribution fees payable (12,035) Custodian fees payable (10,529) Accrued Trustees' fees and expenses (3,185) Accrued expenses and other payables (52,365) TOTAL OTHER ASSETS AND LIABILITIES (NET) (124,399,168) NET ASSETS 100.0 % $ 503,903,923 NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Shares (formerly Class A Shares): ($446,256,877 / 446,268,767 shares outstand- ing) $ 1.00 Liquidity Shares (formerly Class B Shares): ($1,720,490 / 1,720,536 shares outstanding) $ 1.00 Adviser Shares (formerly Class C Shares): ($55,926,556 / 55,928,047 shares outstand- ing) $ 1.00 * Aggregate cost for Federal tax purposes. ** Restricted Security. + Rate resets daily. The interest rate shown reflects the rate currently in effect. # Denotes securities subject to repurchase under reverse repurchase agreement as of October 31, 1995. ## Securities segregated as collateral for reverse repurchase agreement. AT OCTOBER 31, 1995 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold $ (12,579) Paid-in capital 503,916,502 TOTAL NET ASSETS $ 503,903,923
See Notes to Financial Statements. STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1995 (unaudited)
PRINCIPAL MATURITY VALUE AMOUNT NATIONS GOVERNMENT RESERVES DATE (NOTE 1) U.S. GOVERNMENT AGENCY OBLIGA- TIONS -- 83.9% FEDERAL FARM CREDIT BANK (FFCB) -- 3.2% $5,000,000 Discount Note 11/28/95 $ 4,978,663 FEDERAL FARM CREDIT BANK (FFCB) NOTES -- 8.4% 5,000,000 5.950%+ 11/01/95++ 5,000,000 6,000,000 6.1375%+ 11/28/95 6,000,825 2,000,000 5.750% 08/01/96 1,998,911 12,999,736 FEDERAL HOME LOAN BANK (FHLB) NOTES -- 11.7% 5,000,000 5.760%+ 11/01/95++ 4,998,629 3,000,000 5.705% 06/10/96 2,994,658 5,000,000 6.000% 08/07/96 5,000,000 5,000,000 5.870% 10/25/96 5,000,000 17,993,287 FEDERAL HOME LOAN MORTGAGE COR- PORATION (FHLMC) -- 11.5% 5,000,000 Discount note 01/05/96 4,951,250 5,000,000 Discount note 01/16/96 4,941,311 3,000,000 Discount note 01/29/96 2,958,689 5,000,000 Discount note 02/05/96 4,926,267 17,777,517 FEDERAL NATIONAL MORTGAGE ASSO- CIATION (FNMA) -- 27.7% 3,390,000 Discount note 11/01/95 3,390,000 3,000,000 Discount note 12/12/95 2,980,935 3,000,000 Discount note 12/27/95 2,974,100 4,000,000 Discount note 01/17/96 3,952,773 3,000,000 Discount note 01/25/96 2,960,546 5,000,000 Discount note 02/02/96 4,928,183 3,000,000 Discount note 02/20/96 2,948,570 3,000,000 Discount note 03/01/96 2,944,542 5,000,000 Discount note 03/11/96 4,899,930 5,000,000 Discount note 03/13/96 4,898,403 3,000,000 Discount note 03/22/96 2,934,325 3,000,000 Discount note 08/26/96 2,862,958 42,675,265 FEDERAL NATIONAL MORTGAGE ASSO- CIATION (FNMA) NOTE -- 3.3% $ 5,000,000 5.8125%+ 12/27/95++ $ 5,000,000 STUDENT LOAN MARKETING ASSOCIA- TION (SLMA) NOTES -- 18.1% 20,000,000 5.620%+ 11/07/95++ 19,941,317 8,000,000 5.640%+ 11/07/95++ 8,000,000 27,941,317 Total U.S. Government Agency Obligations (Cost $129,365,785) 129,365,785 REPURCHASE AGREEMENTS -- 14.0% 11,662,000 Agreement with CS First Boston Corporation, 5.900% dated 10/31/95 to be repurchased at $11,663,911 on 11/01/95, collateralized by $7,731,000 U.S. Treasury Bonds, 11.250% due 2/15/15 (value $11,896,982) 11,662,000 10,000,000 Agreement with Lehman Government Securities, Inc., 5.880% dated 10/31/95 to be repurchased at $10,001,633 on 11/01/95, collateralized by $8,815,000 U.S. Treasury Bonds, 7.500% due 11/15/16 (value $10,196,655) 10,000,000 Total Repurchase Agreements (Cost $21,662,000) 21,662,000 Shares MONEY MARKET FUND -- 2.2% (Cost $3,386,000) 3,386,000 Dreyfus Treasury Prime Cash Management Fund 3,386,000 TOTAL INVESTMENTS (Cost $154,413,785*) 100.1 % 154,413,785 OTHER ASSETS AND LIABILITIES (NET) (0.1)% Due from investment adviser 32,495 Other assets 483,845 Dividends payable (584,556) Shareholder servicing and distribution fees payable (21,428) Administration fee payable (5,758) Custodian fees payable (1,833) Accrued Trustees' fees and expenses (923) Accrued expenses and other payables (24,962) TOTAL OTHER ASSETS AND LIABILITIES (NET) (123,120) NET ASSETS 100.0 % $154,290,665 NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Shares (formerly Class A Shares): ($40,558,812 / 40,559,830 shares outstand- ing) $ 1.00 Liquidity Shares (formerly Class B Shares): ($2,121 / 2,121 shares outstanding) $ 1.00 Adviser Shares (formerly Class C Shares): ($113,729,732 / 113,732,586 shares outstand- ing) $ 1.00 * Aggregate cost for Federal tax purposes. + Floating rate note. The interest rate shown reflects the rate currently in effect. ++ Reset date. AT OCTOBER 31, 1995 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold $ (3,083) Paid-in capital 154,293,748 TOTAL NET ASSETS $154,290,665
See Notes to Financial Statements. STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1995 (unaudited)
PRINCIPAL VALUE AMOUNT NATIONS MUNICIPAL RESERVES (NOTE 1) MUNICIPAL BONDS AND NOTES -- 100.1% ALABAMA -- 4.2% Homewood, Alabama, Education Building Authority, Educational Facilities, (Samford Univer- sity), Series C, (AmSouth Bank (Birmingham) LOC), $1,300,000 4.100% due 12/01/13++ $1,300,000 McIntosh, Alabama, Industrial Development Board, Pollution Control Revenue, (Ciba-Geigy Corporation Project), Series A, (Swiss Bank LOC), 1,000,000 3.900% due 12/01/03++ 1,000,000 Opelika, Alabama, Industrial De- velopment Board, Industrial De- velopment Revenue, (Flowers Baking Company Project), (Trust Company Bank LOC), 2,000,000 3.950% due 12/01/99++ 2,000,000 4,300,000 ALASKA -- 1.8% Valdez, Alaska, Marine Terminal Revenue, (Arco Transportation Project), Series B, 1,900,000 4.000% due 05/01/31++ 1,900,000 ARKANSAS -- 0.9% Fayetteville, Arkansas, Public Facilities Board Revenue, (Charter Vista Hospital Project), (Mitsubishi Bank Ltd. LOC), 934,000 3.950% due 03/01/07++ 934,000 CALIFORNIA -- 4.6% Contra Costa (County of), Cali- fornia, TRAN, 1,000,000 4.500% due 07/03/96 1,005,486 San Bernardino (County of), Cal- ifornia, TRAN, GO, (Toronto Dominion Bank and Bank of Nova Scotia LOC), 2,500,000 4.500% due 07/05/96 2,508,923 San Diego, California, Indus- trial Development Revenue, (Kaiser Aerospace and Electri- cal Project), Series A, AMT, (ABN-Amro Bank LOC), 1,200,000 4.050% due 10/01/07++ 1,200,000 4,714,409 COLORADO -- 3.6% Clear Creek (County of), Colo- rado, Financing Pool, Anticipa- tion Warrants, (National West- minster Bank PLC LOC), 180,000 3.950% due 06/01/98++ 180,000 Colorado (State of), Health Fa- cilities Authority Revenue, (Goodwill Industries), (Banc One LOC), 2,000,000 4.000% due 12/01/04++ 2,000,000 Colorado (State of), Student Ob- ligation Board Authority Reve- nue, Series A, AMT, (Student Loan Marketing Association LOC), $1,545,000 4.000% due 09/01/24++ $1,545,000 3,725,000 DISTRICT OF COLUMBIA -- 1.4% District of Columbia, Hospital Revenue, (Columbia Women's Hos- pital), Series A, (Mitsubishi Bank Ltd. LOC), 1,500,000 4.200% due 07/01/20++ 1,500,000 FLORIDA -- 8.0% Alachua (County of), Florida, Health Facilities Revenue, (North Florida Retirement Vil- lage Project), (Kredietbank N.V. LOC), 1,800,000 3.850% due 01/01/21++ 1,800,000 Dade (County of), Florida, In- dustrial Development Revenue, (Dade Solid Waste -- Montenay Project), AMT, (Banque Paribas LOC), 960,000 4.150% due 12/01/10++ 960,000 Florida (State of), Housing Fi- nance Agency, Multi-family Housing Revenue, (Blairstone Project), (Citibank (New York) LOC), 1,000,000 4.000% due 12/01/07++ 1,000,000 Gulf Breeze, Florida, Local Gov- ernment Loan Program, Series B, (FGIC Insured), (SBPA), (Credit Locale de France), 1,555,000 4.000% due 12/01/15++ 1,555,000 Hillsborough (County of), Flor- ida, Industrial Development Revenue, (Seaboard Tampa Project), AMT, (Barclays Bank PLC LOC), 2,000,000 3.950% due 12/01/16++ 2,000,000 Orange (County of), Florida, Health Facilities Authority Revenue, (Mayflower Retirement Community Project), (Rabobank Nederland LOC), 1,000,000 4.000% due 03/01/18++ 1,000,000 8,315,000 GEORGIA -- 6.8% De Kalb (County of), Georgia, Housing Authority, Multi-family Housing Revenue: (Stone Mill Run Apartment Project), Series A, AMT, (First Tennessee Bank LOC), 4,000,000 4.000% due 08/01/27++ 4,000,000 (Terrace Club Project), Series A , (AmSouth Bank LOC), 1,000,000 4.200% due 11/01/15++ 1,000,000 Smyrna, Georgia, Multi-family Housing Authority Revenue, (Hills of Post Village Project), (FNMA Collateral Agreement), $2,000,000 3.850% due 06/01/25++ $2,000,000 7,000,000 ILLINOIS -- 9.0% Burbank, Illinois, Industrial Development Revenue, (Service Merchandise, Inc. Project), (Canadian Imperial Bank of Commerce LOC), 400,000 3.800% due 09/15/24+++ 400,000 Chicago, Illinois, O'Hare Inter- national Airport, Industrial Revenue, Airport and Marina Improvements, (American Air- lines Project), (Westdeutsche Landesbank Girozentrate LOC), 400,000 4.000% due 12/01/17+ 400,000 Illinois (State of), Development Financial Authority, Industrial Development Revenue, (Randolph Pickle Corporation Project), (American National Bank and Trust (Chicago) LOC), 900,000 4.200% due 06/01/12++ 900,000 Illinois (State of), Education Facilities Authority Revenue, (Northwestern University), (SBPA), (First National Bank of Chicago), 1,400,000 3.950% due 12/01/25++ 1,400,000 Illinois (State of), Health Fa- cilities Authority Revenue: (Evanston Hospital Corporation Project), Series B, 2,000,000 4.650% due 02/15/96 2,000,000 (Hospital Sisters Services Project), Series E, (MBIA In- sured), (SBPA), (Morgan Guaranty), 1,700,000 3.850% due 12/01/14++ 1,700,000 Illinois (State of), Health Fa- cilities Authority Revenue, Health, Hospital & Nursing Home Improvements, (Streeter- ville Corporation Project), Se- ries B, (First National Bank (Chicago) LOC), 1,000,000 3.950% due 08/15/23++ 1,000,000 Lombard Village, Illinois, In- dustrial Project Revenue, B&H Partnership, (Comerica Bank LOC), 1,500,000 4.450% due 10/01/13++ 1,500,000 9,300,000 INDIANA -- 7.2% Greenwood, Indiana, Industrial Economic Development Revenue, (Health Quest Realty Project), (Banc One LOC), $1,355,000 4.000% due 09/01/05++ $1,355,000 Indiana Bond Bank, (Advance Funding Program), Notes A-3, (SBPA), (NBD Bank), 4,000,000 3.995% due 01/10/96++ 4,000,000 Indianapolis, Indiana, Multi- family Housing Revenue, (Canal Square Project), (Societe Gen- erale LOC), 1,300,000 3.850% due 12/01/15++ 1,300,000 Portage, Indiana, Economic De- velopment Revenue, (Health Quest Realty Project), Series 94, (Banc One LOC), 820,000 4.000% due 09/01/03++ 820,000 7,475,000 KENTUCKY -- 1.0% Jefferson County, Kentucky, In- dustrial Development Board, Economic Development Revenue, (Ball Corporation Project), (PNC Bank of Ohio LOC), 1,000,000 4.150% due 04/01/98++ 1,000,000 LOUISIANA -- 0.2% Calcasieu Parish, Louisiana, In- dustrial Development Board, Pollution Control Revenue, (Citgo Petroleum Corporation Project), (Westdeutsche Landes- bank Girozentrate LOC), 200,000 3.900% due 08/01/04++ 200,000 MAINE -- 1.9% Maine (State of), TAN, 2,000,000 4.500% due 06/28/96 2,009,488 MARYLAND -- 1.1% Baltimore (City of), Maryland, Economic Development Revenue, (Rock Tennessee Converting Fa- cility Project), (Trust Company Bank LOC), 955,000 4.100% due 09/01/97++ 955,000 Montgomery (County of), Mary- land, Industrial Development Revenue, (Information Systems and Networks Corporation Project), (Pittsburgh National Bank LOC), 200,000 3.750% due 04/01/14+++ 200,000 1,155,000 MICHIGAN -- 6.3% Jackson (County of), Michigan, Economic Development Corpora- tion, Economic Development Rev- enue, (Sealed Power Corporation Project), (National Bank of Detroit LOC), $1,000,000 3.850% due 10/01/19+++ $ 1,000,000 Michigan (State of), Building Authority, Series 1, (Canadian Imperial Bank of Commerce LOC), 4,000,000 3.850% due 11/16/95 4,000,000 Michigan (State of), Municipal Bond Authority Revenue Notes, Series B, 1,500,000 4.500% due 07/03/96 1,506,768 6,506,768 MISSOURI -- 2.0% Missouri (State of), Health and Educational Facilities Author- ity, Educational Facilities Revenue, (Washington Univer- sity), (SBPA), (Morgan Guar- anty), 2,100,000 3.900% due 09/01/09++ 2,100,000 NEW JERSEY -- 4.6% Jersey City, New Jersey, BAN, GO, 2,000,000 5.250% due 11/17/95 2,000,456 New Jersey (State of), Economic Development Authority, (Catho- lic Community Services Project), (First Fidelity LOC), 1,250,000 3.800% due 06/01/25++ 1,250,000 New Jersey (State of), Economic Development Authority, First Mortgage Gross Revenue, (Fran- ciscan Oaks Project), Series B, (Bank of Scotland LOC), 1,500,000 3.850% due 12/01/97++ 1,500,000 4,750,456 NEW MEXICO -- 0.6% New Mexico Educational Assis- tance Foundation, Student Loan Revenue, Series B, AMT, (AMBAC Insured), (Internationale Ned- erlanden Bank SBPA), 600,000 4.050% due 04/01/05++ 600,000 NORTH CAROLINA -- 1.3% North Carolina Medical Care Com- munity, (Duke University Hospi- tal), Series B, (SBPA), (First National Bank of Chicago), 1,300,000 3.900% due 06/01/15++ 1,300,000 OHIO -- 4.3% Centerville, Ohio, Health Care Revenue, (Bethany Lutheran Vil- lage Project), (PNC Bank of Ohio LOC), 1,000,000 4.000% due 11/01/13++ 1,000,000 Cuyhoga (County of), Ohio, In- dustrial Development Revenue Refunding, (Pleasant Lake Project), (Soci- ety National Bank), $1,000,000 4.000% due 05/01/11++ $ 1,000,000 Greene (County of), Ohio, Indus- trial Development Revenue, (AFC Stamping Project), AMT, (Society National Bank LOC), 1,000,000 4.150% due 09/01/16++ 1,000,000 Trumbull (County of), Ohio, In- dustrial Development Revenue, (ATD Corporation Project), AMT, (Society National Bank), 1,000,000 4.150% due 08/01/10++ 1,000,000 Warren (County of), Ohio, Indus- trial Development Revenue, (Pi- oneer Industrial Components Inc. Project), (Mitsubishi Bank (Chicago) LOC), 400,000 4.000% due 12/01/05++ 400,000 4,400,000 PENNSYLVANIA -- 2.7% Chester (County of), Pennsylva- nia, Industrial Development Revenue, (Keystone Foods Corpo- ration Project), (Bank of Scotland LOC), 400,000 3.850% due 10/15/99+++ 400,000 Montgomery (County of), Pennsyl- vania, Higher Education and Health Authority Hospital Reve- nue, (AMBAC Insured), (SBPA), (Swiss Bank), 2,400,000 3.850% due 09/01/18++ 2,400,000 2,800,000 SOUTH CAROLINA -- 1.0% Cherokee (County of), South Carolina, Industrial Develop- ment Revenue, (Holmberg Elec- tric Corporation Project), (Wachovia Bank & Trust LOC), 1,000,000 3.950% due 11/01/04++ 1,000,000 TENNESSEE -- 2.9% Chattanooga, Tennessee, Indus- trial Development Board, (Sea- board Farms of Chattanooga Project), (Bank of Nova Scotia LOC), 2,000,000 3.875% due 06/01/04++ 2,000,000 Jefferson City, Tennessee, In- dustrial Development Board, (BA Property Project), AMT, (Ameri- can National Bank and Trust (Chicago) LOC), 1,000,000 4.250% due 11/01/24++ 1,000,000 3,000,000 TEXAS -- 15.2% Austin (County of), Texas, In- dustrial Development Corpora- tion, Industrial Development Revenue, (Justin Industries Inc. Project), (Citibank (New York) LOC), 1,900,000 3.950% due 12/01/14++ 1,900,000 Austin, Texas, Utility System Revenue Refunding Bonds, Pre-refunded, $ 875,000 10.000% due 11/15/95 $ 894,302 El Paso, Texas, Housing Finance Corporation, (Viva Apartments Project), AMT, (General Elec- tric Capital Corporation LOC), 3,000,000 4.250% due 09/01/23# 3,000,000 Galveston, Texas, Industrial De- velopment Corporation, (Mitch- ell Interests Project), Series A, AMT, (National Westminster Bank PLC LOC), 1,100,000 4.050% due 09/01/13++ 1,100,000 Houston, Texas, Certificates of Obligation, Series B, 1,900,000 3.900% due 04/01/14++ 1,900,000 San Antonio, Texas, Independent School District, School Im- provement Bonds, GO, Pre- refunded, 875,000 8.125% due 11/01/95 875,000 Texas (State of), TRAN, Series A, 5,000,000 4.750% due 08/30/96 5,027,886 Trinity River, Texas, Industrial Development Authority, Indus- trial Development Revenue Bond, Series 1994, (Toys "R" Us Project), (Bankers Trust LOC), 1,000,000 3.875% due 11/01/14++ 1,000,000 15,697,188 UTAH -- 2.3% Salt Lake City, Utah, Industrial Development Revenue, (SPS Tech- nologies Inc. Project), AMT, (National Australia Bank LOC), 1,000,000 4.150% due 12/01/12++ 1,000,000 Utah (County of), Utah, Indus- trial Development Revenue, (McWare Inc. Project), (AmSouth Bank (Birmingham) LOC), 1,380,000 4.150% due 02/01/98++ 1,380,000 2,380,000 VERMONT -- 2.0% Vermont (State of), Education and Health Buildings, Finance Agency Revenue, (VHA New En- gland Project), Series F, (AMBAC Insured), (SBPA), (First National Bank of Chicago), 2,100,000 3.850% due 12/01/25++ 2,100,000 VIRGINIA -- 1.0% Botetourt (County of), Virginia, Industrial Development Author- ity, Industrial Development Revenue, (Emkay Holdings LLC Project), AMT, (State Street Bank & Trust Company LOC), $1,000,000 3.950% due 10/01/05++ $ 1,000,000 WASHINGTON -- 1.0% Washington (State of), Public Power Supply Systems, (Nuclear Project No. 3), Revenue Re- funding, 1,000,000 6.700% due 07/01/96 1,017,444 WEST VIRGINIA -- 1.2% Ohio (County of), West Virginia, Industrial Development Revenue, (Ohio Valley/Clarksburg Drug Company Project), (PNC Bank LOC), 1,200,000 4.100% due 12/01/01+++ 1,200,000 Total Municipal Bonds and Notes (Cost $103,379,753) 103,379,753 Shares MONEY MARKET FUNDS -- 0.4% 400,000 AIM Tax-Exempt Fund 400,000 Fidelity Institutional Tax- 30,000 Exempt Cash Management Fund 30,000 Total Money Market Funds (Cost $430,000) 430,000 TOTAL INVESTMENTS (Cost $103,809,753*) 100.5 % 103,809,753 OTHER ASSETS AND LIABILITIES (NET) (0.5)% Due from investment adviser 66,483 Other assets 860,895 Due to custodian (1,152,465) Dividends payable (301,552) Shareholder servicing and dis- tribution fees payable (13,977) Administration fee payable (4,661) Custodian fees payable (1,882) Accrued Trustees' fees and expenses (827) Accrued expenses and other payables (14,610) TOTAL OTHER ASSETS AND LIA- BILITIES (NET) (562,596) NET ASSETS 100.0 % $103,247,157 NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Shares (formerly Class A Shares): ($34,981,801 / 34,982,197 shares outstanding) $ 1.00 Liquidity Shares (formerly Class B Shares): ($2,265,054 / 2,265,079 shares outstanding) $ 1.00 Adviser Shares (formerly Class C Shares): ($66,000,302 / 66,001,033 shares outstanding) $ 1.00 * Aggregate cost for Federal tax purposes. + Variable rate demand notes are payable upon not more than one business day's notice. The interest rate shown reflects the rate currently in effect. ++ Variable rate demand notes are payable upon not more than seven calendar days' notice. The interest rate shown reflects the rate currently in effect. +++ Variable rate demand notes are payable upon not more than thirty calendar days' notice. The interest rate shown reflects the rate currently in effect. # "Put" bonds and notes have demand features which may mature within one year. The interest rate shown re- flects the rate currently in effect. Abbreviations: AMBAC -- American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax BAN -- Bond Anticipation Notes FGIC -- Federal Guaranty Insurance Corporation FNMA -- Federal National Mortgage Association GO -- General Obligation Bonds LOC -- Letter of Credit MBIA -- Municipal Bond Investors Assurance SBPA -- Standby Bond Purchase Agreement TAN -- Tax Anticipation Notes TRAN -- Tax and Revenue Anticipation Notes AT OCTOBER 31, 1995 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold $ (1,152) Paid-in capital 103,248,309 TOTAL NET ASSETS $103,247,157
See Notes to Financial Statements. STATEMENTS OF OPERATIONS NATIONS INSTITUTIONAL RESERVES For the Six Months Ended October 31, 1995 (unaudited)
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES Investment Income: Interest $ 6,655,240 $ 10,162,338 $ 3,105,568 $ 2,034,626 Dividends 264,527 459,060 86,495 50,142 Total Investment Income 6,919,767 10,621,398 3,192,063 2,084,768 Expenses: Investment advisory fee 341,139 535,424 162,308 158,702 Administration fee 113,713 178,475 54,103 52,901 Transfer agent fees 12,257 37,887 7,115 11,397 Custodian fees 21,584 54,601 9,453 10,356 Trustees' fees and expenses 5,366 8,844 2,079 2,051 Registration and filing fees 80,402 76,749 26,598 42,684 Legal and audit fees 26,701 41,159 5,761 16,949 Amortization of organization costs 4,248 8,341 -- 522 Other 2,961 9,325 775 145 Subtotal 608,371 950,805 268,192 295,707 Shareholder servicing and dis- tribution fee: Liquidity Shares 6,587 1,349 2 2,489 Adviser Shares 61,809 75,114 129,378 86,974 Fees waived and/or expenses reimbursed by investment ad- viser and administrator (380,168) (593,181) (158,984) (189,497) Total Expenses 296,599 434,087 238,588 195,673 Net Investment Income 6,623,168 10,187,311 2,953,475 1,889,095 Net Realized Loss on Invest- ments -- -- (2,675) -- Net Increase in Net Assets Resulting From Operations $ 6,623,168 $ 10,187,311 $ 2,950,800 $ 1,889,095
See Notes to Financial Statements. STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES For the Six Months Ended October 31, 1995 (unaudited) NATIONS TREASURY RESERVES Cash flows from operating and investing activities: Investment income received $ 7,724,783 Payment of operating expenses (442,312) Net purchases of short-term investments (316,492,760) Cash used by operating and in- vesting activities $(309,210,289) Cash flows from financing activ- ities: Proceeds from shares sold 869,254,682 Payments on shares redeemed (673,530,060) Cash provided from reverse re- purchase agreements 123,202,000 Distributions paid* (9,716,230) Cash provided by financing ac- tivities 309,210,392 Increase in cash 103 Cash at beginning of period 18 Cash at end of Period $ 121 RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH PROVIDED BY OPERATING ACTIVITIES: Net increase in net assets re- sulting from operations $ 10,187,311 Increase in investments $(319,012,273) Increase in interest and divi- dends receivable (402,928) Decrease in other assets 3,429 Increase in accrued expenses 14,172 Cash used by operating activi- ties $(309,210,289) * Non cash activities include reinvestment of dividends of $49,674.
See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES Six Months Ended October 31, 1995 (unaudited)
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES Net investment income $ 6,623,168 $ 10,187,311 $ 2,953,475 $ 1,889,095 Net realized loss on invest- ments sold during the pe- riod -- -- (2,675) -- Net increase in net assets resulting from operations 6,623,168 10,187,311 2,950,800 1,889,095 Distributions to sharehold- ers from net investment income: Capital Shares (4,956,085) (8,480,416) (117,132) (614,282) Liquidity Shares (251,162) (50,266) (58) (60,014) Adviser Shares (1,415,921) (1,656,629) (2,836,285) (1,214,799) Net increase/(decrease) in net assets from Fund share transactions: Capital Shares 460,053,368 194,564,585 40,557,819 2,628,732 Liquidity Shares 11,628,756 1,046,333 58 (325,989) Adviser Shares 12,034,124 163,378 14,485,040 1,877,598 Net increase in net assets 483,716,248 195,774,296 55,040,242 4,180,341 Net Assets: Beginning of period 181,748,071 308,129,627 99,250,423 99,066,816 End of period $ 665,464,319 $ 503,903,923 $ 154,290,665 $ 103,247,157
See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES Year Ended April 30, 1995
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES Net investment income $ 8,016,550 $ 15,603,639 $ 5,980,505 $ 2,272,365 Net realized gain/(loss) on investments sold during the year 465 -- (408) -- Net increase in net assets resulting from operations 8,017,015 15,603,639 5,980,097 2,272,365 Distributions to sharehold- ers from net investment income: Capital Shares (6,283,716) (14,047,209) (117,060) (1,076,833) Liquidity Shares (527,606) (120,316) (2,762,795) (92,633) Adviser Shares (1,205,320) (1,436,114) (3,100,650) (1,102,899) Net increase/(decrease) in net assets from Fund share transactions (Note 4): Capital Shares 24,211,274 (86,813,062) (10,816,825) (3,345,368) Liquidity Shares (69,785,073) (13,553,102) (259,835,082) (11,213,995) Adviser Shares 47,683,400 55,764,669 99,247,546 64,123,435 Net increase/(decrease) in net assets 2,109,974 (44,601,495) (171,404,769) 49,564,072 Net Assets: Beginning of year 179,638,097 352,731,122 270,655,192 49,502,744 End of year $ 181,748,071 $ 308,129,627 $ 99,250,423 $ 99,066,816
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Share outstanding throughout each period.
NATIONS CASH RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Capital Shares: Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.0298 0.0480 0.0283 0.0315 0.0492 0.0392 Dividends from net invest- ment income (0.0298) (0.0480) (0.0283) (0.0315) (0.0492) (0.0392) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 3.01% 4.91% 2.87% 3.19% 5.03% 7.35%+ Ratios to average net as- sets/supplemental data: Net assets, end of pe- riod (000's) $ 594,116 $ 134,064 $ 109,852 $ 55,739 $ 100,943 $ 19,387 Ratio of operating ex- penses to average net assets 0.20%+ 0.29% 0.45% 0.45% 0.45% 0.45%+ Ratio of net investment income to average net assets 5.87%+ 4.96% 2.83% 3.15% 4.61% 7.04%+ Ratio of operating ex- penses to average net assets without waivers 0.53%+ 0.52% 0.56% 0.59% 0.74% 0.79%+ Ratio of net investment income to average net assets without waivers 5.54%+ 4.73% 2.72% 3.01% 4.32% 6.70%+ Net investment income per share without waivers $ 0.0281 $ 0.0458 $ 0.0272 $ 0.0298 $ 0.0455 $ 0.0373 * The Nations Cash Reserves Capital Shares commenced operations on Octo- ber 10, 1990. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Share outstanding throughout each period.
NATIONS CASH RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Liquidity Shares: Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.0290 0.0471 0.0273 0.0305 0.0482 0.0197 Dividends from net invest- ment income (0.0290) (0.0471) (0.0273) (0.0305) (0.0482) (0.0197) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 2.95% 4.81% 2.77% 3.09% 4.92% 6.44%+ Ratios to average net as- sets/supplemental data: Net assets, end of pe- riod (000's) $ 11,631 $ 2 $ 69,786 $ 19,411 $ 4,776 $ 10,361 Ratio of operating ex- penses to average net assets 0.35%+ 0.38% 0.55% 0.55% 0.55% 0.55%+ Ratio of net investment income to average net assets 5.72%+ 4.87% 2.74% 2.96% 4.94% 6.41%+ Ratio of operating ex- penses to average net assets without waivers 0.68%+ 0.61% 0.65% 0.68% 0.85% 0.87%+ Ratio of net investment income to average net assets without waivers 5.39%+ 4.64% 2.64% 2.82% 4.64% 6.09%+ Net investment income per share without waivers $ 0.0273 $ 0.0448 $ 0.0262 $ 0.0287 $ 0.0447 $ 0.0186 * The Nations Cash Reserves Liquidity Shares commenced operations on January 9, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Share outstanding throughout each period.
NATIONS CASH RESERVES SIX MONTHS ENDED PERIOD 10/31/95 ENDED (UNAUDITED) 04/30/95* Adviser Shares: Net asset value, beginning of period $ 1.00 $ 1.00 Net investment income 0.0285 0.0316 Dividends from net investment income (0.0285) (0.0316) Net asset value, end of period $ 1.00 $ 1.00 Total Return++ 2.88% 3.20% Ratios to average net assets/supplemen- tal data: Net assets, end of period (000's) $ 59,717 $ 47,682 Ratio of operating expenses to aver- age net assets 0.45%+ 0.54%+ Ratio of net investment income to av- erage net assets 5.62%+ 4.71%+ Ratio of operating expenses to aver- age net assets without waivers 0.78%+ 0.77%+ Ratio of net investment income to av- erage net assets without waivers 5.29%+ 4.48%+ Net investment income per share with- out waivers $ 0.0268 $ 0.0300 * The Nations Cash Reserves Adviser Shares commenced operations on Sep- tember 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Share outstanding throughout each period.
NATIONS TREASURY RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Capital Shares: Net asset value, be- ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from invest- ment operations: Net investment income 0.0290 0.0480 0.0298 0.0323 0.0481 0.0176 Net realized gain on investments -- -- -- 0.0001 0.0003 -- Total from investment operations 0.0290 0.0480 0.0298 0.0324 0.0484 0.0176 Less Distributions: Dividends from net investment income (0.0290) (0.0480) (0.0298) (0.0323) (0.0481) (0.0176) Distributions from net realized gains -- -- -- (0.0001) (0.0003) -- Total distribu- tions (0.0290) (0.0480) (0.0298) (0.0324) (0.0484) (0.0176) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 2.94% 4.91% 3.02% 3.29% 4.92% 5.89%+ Ratios to average net assets/supplemental data: Net assets, end of period (000's) $ 446,257 $ 251,694 $ 338,504 $ 418,644 $ 19,587 $ 4,519 Ratio of operating expenses to aver- age net assets 0.20%+ 0.20% 0.20% 0.20% 0.26% 0.45%+ Ratio of net invest- ment income to av- erage net assets 5.74%+ 4.79% 2.99% 2.99% 4.39% 5.85%+ Ratio of operating expenses to aver- age net assets without waivers 0.53%+ 0.50% 0.52% 0.72% 1.06% 0.94%+ Ratio of net invest- ment income to av- erage net assets without waivers 5.40%+ 4.50% 2.67% 2.48% 3.59% 5.36%+ Net investment in- come per share without waivers $ 0.0273 $ 0.0451 $ 0.0267 $ 0.0251 $ 0.0368 $ 0.0161 * The Nations Treasury Reserves Capital Shares commenced operations on January 11, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Share outstanding throughout each period.
NATIONS TREASURY RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Liquidity Shares: Net asset value, be- ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from invest- ment operations: Net investment in- come 0.0282 0.0462 0.0263 0.0288 0.0454 0.0173 Net realized gain on investments -- -- -- 0.0001 0.0003 -- Total from invest- ment operations 0.0282 0.0462 0.0263 0.0289 0.0457 0.0173 Less Distributions: Dividends from net investment income (0.0282) (0.0462) (0.0263) (0.0288) (0.0454) (0.0173) Distributions from net realized gains -- -- -- (0.0001) (0.0003) -- Total distribu- tions (0.0282) (0.0462) (0.0263) (0.0289) (0.0457) (0.0173) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 2.86% 4.71% 2.67% 2.93% 4.64% 5.79%+ Ratios to average net assets/supplemental data: Net assets, end of period (000's) $ 1,720 $ 674 $ 14,227 $ 3,369 $ 2,807 $ 2,891 Ratio of operating expenses to aver- age net assets 0.35%+ 0.49% 0.55% 0.55% 0.52% 0.55%+ Ratio of net invest- ment income to av- erage net assets 5.59%+ 4.50% 2.67% 2.89% 4.62% 5.75%+ Ratio of operating expenses to aver- age net assets without waivers 0.68%+ 0.79% 0.87% 1.07% 1.32% 1.04%+ Ratio of net invest- ment income to av- erage net assets without waivers 5.25%+ 4.21% 2.35% 2.37% 3.82% 5.26%+ Net investment in- come per share without waivers $ 0.0265 $ 0.0431 $ 0.0232 $ 0.0213 $ 0.0349 $ 0.0160 * The Nations Treasury Reserves Liquidity Shares commenced operations on January 11, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Share outstanding throughout each period.
NATIONS TREASURY RESERVES SIX MONTHS ENDED PERIOD 10/31/95 ENDED (UNAUDITED) 04/30/95* Adviser Shares: Net asset value, beginning of period $ 1.00 $ 1.00 Net investment income 0.0277 0.0308 Dividends from net investment income (0.0277) (0.0308) Net asset value, end of period $ 1.00 $ 1.00 Total Return++ 2.81% 3.11% Ratios to average net assets/supple- mental data: Net assets, end of period (000's) $ 55,927 $ 55,762 Ratio of operating expenses to av- erage net assets 0.45%+ 0.45%+ Ratio of net investment income to average net assets 5.49%+ 4.54%+ Ratio of operating expenses to av- erage net assets without waivers 0.78%+ 0.75%+ Ratio of net investment income to average net assets without waiv- ers 5.15%+ 4.25%+ Net investment income per share without waivers $ 0.0260 $ 0.0288 * The Nations Treasury Reserves Adviser Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Share outstanding throughout each period.
NATIONS GOVERNMENT RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Capital Shares: Net asset value, be- ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from invest- ment operations: Net investment in- come 0.0291 0.0463 0.0278 0.0312 0.0343 0.0168 Net realized gain on investments -- -- -- -- 0.0023 -- Total from invest- ment operations 0.0291 0.0463 0.0278 0.0312 0.0366 0.0168 Less Distributions: Dividends from net investment income (0.0291) (0.0463) (0.0278) (0.0312) (0.0343) (0.0168) Distributions from net realized gains -- -- -- -- (0.0023) -- Total distribu- tions (0.0291) (0.0463) (0.0278) (0.0312) (0.0366) (0.0168) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 2.95% 4.72% 2.82% 3.15% 3.71% 5.57%+ Ratios to average net assets/supplemental data: Net assets, end of period (000's) $ 40,559 $ 2 $ 10,819 $ 7,396 $ 1,800 $ 295 Ratio of operating expenses to aver- age net assets 0.20%+ 0.32% 0.45% 0.45% 0.45% 0.45%+ Ratio of net invest- ment income to av- erage net assets 5.68%+ 4.35% 2.78% 3.07% 4.24% 5.89%+ Ratio of operating expenses to aver- age net assets without waivers 0.49%+ 0.54% 0.51% 0.64% 0.76% 0.80%+ Ratio of net invest- ment income to av- erage net assets without waivers 5.39%+ 4.13% 2.72% 2.88% 3.93% 5.54%+ Net investment in- come per share without waivers $ 0.0276 $ 0.0439 $ 0.0272 $ 0.0288 $ 0.0313 $ 0.0158 * The Nations Government Reserves Capital Shares commenced operations on January 17, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Share outstanding throughout each period.
NATIONS GOVERNMENT RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Liquidity Shares: Net asset value, be- ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from invest- ment operations: Net investment in- come 0.0279 0.0453 0.0268 0.0302 0.0461 0.0176 Net realized gain on investments -- -- -- -- 0.0023 -- Total from invest- ment operations 0.0279 0.0453 0.0268 0.0302 0.0484 0.0176 Less Distributions: Dividends from net investment income (0.0279) (0.0453) (0.0268) (0.0302) (0.0461) (0.0176) Distributions from net realized gains -- -- -- -- (0.0023) -- Total distribu- tions (0.0279) (0.0453) (0.0268) (0.0302) (0.0484) (0.0176) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 2.82% 4.59% 2.71% 3.05% 4.70% 6.04%+ Ratios to average net assets/supplemental data: Net assets, end of period (000's) $ 2 $ 2 $ 259,836 $ 149,252 $ 12,486 $ 5,589 Ratio of operating expenses to aver- age net assets 0.35%+ 0.40% 0.55% 0.55% 0.55% 0.55%+ Ratio of net invest- ment income to av- erage net assets 5.53%+ 4.27% 2.68% 2.71% 4.46% 5.86%+ Ratio of operating expenses to aver- age net assets without waivers 0.64%+ 0.62% 0.61% 0.74% 0.86% 0.94%+ Ratio of net invest- ment income to av- erage net assets without waivers 5.24%+ 4.05% 2.62% 2.52% 4.18% 5.47%+ Net investment in- come per share without waivers $ 0.0264 $ 0.0430 $ 0.0262 $ 0.0274 $ 0.0422 $ 0.0170 * The Nations Government Reserves Liquidity Shares commenced operations on January 11, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Share outstanding throughout each period.
NATIONS GOVERNMENT RESERVES SIX MONTHS ENDED PERIOD 10/31/95 ENDED (UNAUDITED) 04/30/95* Adviser Shares: Net asset value, beginning of period $ 1.00 $ 1.00 Net investment income 0.0274 0.0299 Dividends from net investment income (0.0274) (0.0299) Net asset value, end of period $ 1.00 $ 1.00 Total Return++ 2.76% 3.04% Ratios to average net as- sets/supplemental data: Net assets, end of period (000's) $ 113,730 $ 99,246 Ratio of operating expenses to average net assets 0.45%+ 0.57%+ Ratio of net investment income to average net assets 5.43%+ 4.10%+ Ratio of operating expenses to average net assets without waivers 0.74%+ 0.79%+ Ratio of net investment income to average net assets without waivers 5.14%+ 3.88%+ Net investment income per share without waivers $ 0.0259 $ 0.0283 * The Nations Government Reserves Adviser Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Share outstanding throughout each period.
NATIONS MUNICIPAL RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Capital Shares: Net asset value, be- ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.0188 0.0313 0.0198 0.0231 0.0356 0.0245 Dividends from net investment income (0.0188) (0.0313) (0.0198) (0.0231) (0.0356) (0.0245) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 1.90% 3.19% 2.00% 2.34% 3.62% 4.62%+ Ratios to average net assets/supplemental data: Net assets, end of period (000's) $ 34,982 $ 32,353 $ 35,698 $ 26,145 $ 18,150 $ 5,064 Ratio of operating expenses to aver- age net assets 0.20%+ 0.23% 0.45% 0.45% 0.45% 0.45%+ Ratio of net invest- ment income to av- erage net assets 3.73%+ 3.36% 1.98% 2.27% 3.38% 4.70%+ Ratio of operating expenses to aver- age net assets without waivers and/or expenses reimbursed 0.56%+ 0.59% 0.58% 0.66% 0.89% 0.99%+ Ratio of net invest- ment income to av- erage net assets without waivers and/or expenses reimbursed 3.37%+ 2.99% 1.85% 2.05% 2.94% 4.16%+ Net investment in- come per share without waivers and/or expenses reimbursed $ 0.0170 $ 0.0279 $ 0.0186 $ 0.0203 $ 0.0296 $ 0.0216 * The Nations Municipal Reserves Capital Shares commenced operations on October 23, 1990. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Share outstanding throughout each period.
NATIONS MUNICIPAL RESERVES SIX MONTHS ENDED YEAR YEAR YEAR YEAR PERIOD 10/31/95 ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* Liquidity Shares: Net asset value, be- ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.0181 0.0304 0.0188 0.0221 0.0346 0.0478 Dividends from net investment income (0.0181) (0.0304) (0.0188) (0.0221) (0.0346) (0.0478) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total Return++ 1.81% 3.09% 1.90% 2.24% 3.52% 4.60%+ Ratios to average net assets/ supplemental data: Net assets, end of period (000's) $ 2,265 $ 2,591 $ 13,805 $ 10,766 $ 11,473 $ 8,927 Ratio of operating expenses to aver- age net assets 0.35%+ 0.33% 0.55% 0.55% 0.55% 0.55%+ Ratio of net invest- ment income to av- erage net assets 3.58%+ 3.26% 1.86% 2.21% 3.36% 5.22%+ Ratio of operating expenses to aver- age net assets without waivers and/or expenses reimbursed 0.71%+ 0.69% 0.67% 0.76% 0.99% 0.81%+ Ratio of net invest- ment income to av- erage net assets without waivers and/or expenses reimbursed 3.22%+ 2.89% 1.74% 2.00% 2.92% 4.96%+ Net investment in- come per share without waivers and/or expenses reimbursed $ 0.0163 $ 0.0270 $ 0.0176 $ 0.0192 $ 0.0285 $ 0.0455 * The Nations Municipal Reserves Liquidity Shares commenced operations on June 1, 1990. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Share outstanding throughout each period.
NATIONS MUNICIPAL RESERVES SIX MONTHS ENDED PERIOD 10/31/95 ENDED (UNAUDITED) 04/30/95* Adviser Shares: Net asset value, beginning of period $ 1.00 $ 1.00 Net investment income 0.0176 0.0199 Dividends from net investment income (0.0176) (0.0199) Net asset value, end of period $ 1.00 $ 1.00 Total Return++ 1.78% 2.02% Ratios to average net as- sets/supplemental data: Net assets, end of period (000's) $ 66,000 $ 64,123 Ratio of operating expenses to average net assets 0.45%+ 0.48%+ Ratio of net investment income to average net assets 3.48%+ 3.11%+ Ratio of operating expenses to average net assets without waivers and/or expenses reim- bursed 0.81%+ 0.84%+ Ratio of net investment income to average net assets without waivers and/or expenses reim- bursed 3.12%+ 2.74%+ Net investment income per share without waivers and/or expenses reimbursed $ 0.0158 $ 0.0176 * The Nations Municipal Reserves Adviser Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indi- cated.
See Notes to Financial Statements. Notes to Financial Statement (unaudited) Nations Institutional Reserves 1. Significant Accounting Policies. NATIONS INSTITUTIONAL RESERVES (formerly known as The Capitol Mutual Funds) (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. As of the date of this report, the Trust currently offers four portfolios: Nations Cash Reserves (formerly, Cash Reserves), Nations Trea- sury Reserves (formerly, Treasury Reserves), Nations Government Reserves (formerly, Government Reserves) and Nations Municipal Reserves (formerly, Tax Free Reserves) (collectively the "Portfolios"). The Portfolios cur- rently offer three classes of shares: Capital Shares (formerly, Class A Shares), Liquidity Shares (formerly, Class B Shares) and Adviser Shares (formerly, Class C Shares). The Board of Trustees has authorized the issu- ance of Market Shares (formerly, Class D Shares). As of October 31, 1995, no Market Shares have been sold. Matters affecting each class will be voted on exclusively by their shareholders. The following is a summary of significant accounting policies followed by the Portfolios in the prepara- tion of their financial statements. Securities Valuation--The portfolio securities of each Portfolio are valued on the basis of amortized cost, which approximates market value. Amortized cost valuation involves valuing an instrument at its cost initially and thereafter assuming a constant amortization to maturity of any discount or premium, as long as the effect of fluctuating interest rates on the market value of the instrument is not significant. Repurchase Agreements--Each Portfolio may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, the Portfolio takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the Portfolio's holding period. This arrangement results in a fixed rate of return that is not subject to market fluctuations during the Portfolio's holding period. The value of the collateral is at least equal at all times to the total amount of the repurchase obligations, including interest. In the event of counterparty default, the Portfolio has the right to use the collateral to offset losses incurred. There is potential loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Portfolio seeks to assert its rights. Unless permitted by the Securities and Exchange Commission, the Portfolio will not enter into repurchase agreements with the investment adviser, the distributor or any of their affiliates. The Portfolio's investment adviser, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Portfolio enters into repurchase agreements to evaluate potential risks. Reverse Repurchase Agreement--Nations Cash Reserves, Nations Treasury Reserves and Nations Government Reserves each may enter into reverse repurchase agreements with institutions that the Portfolio's investment adviser has determined are creditworthy. Under a reverse repurchase agreement, a Portfolio sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time a Portfolio enters into a reverse repurchase agreement, it establishes a segregated account with its custodian bank in which it will maintain cash, U.S. Government securities or other liquid high grade debt obligations equal in value to its obligations arising under the reverse repurchase agreement. Reverse repurchase agreements involve the risk that the market value of the securities purchased with the proceeds from the sale of securities received by the Portfolio may decline below the price of the securities the Portfolio is obligated to repurchase. Securities subject to repurchase under reverse repurchase agreements are designated in the Statement of Net Assets. At October 31, 1995, Nations Treasury Reserves had reverse repurchase agreements outstanding as follows: Maturity Amount $ 123,202,000 Maturity Date 07/01/96 Market Value of Assets Sold Under Agreements $123,037,887
The average daily balance of reverse repurchase agreements outstanding during the six months ended October 31, 1995 was $51,421,924. Nations Cash Reserves and Nations Government Reserves did not enter into any reverse repurchase agreements during the six months ended October 31, 1995. The proceeds received by Nations Treasury Reserves under the reverse repurchase agreements were reinvested in a tri-party repurchase agreement. Net fees earned during the year, representing the difference between interest rates on the reverse repurchase and repurchase agreements, amounted to $34,167 and have been included in interest income in the Statement of Operations. Securities Transactions and Investment Income--Securities transactions are accounted for on a trade date basis. Realized gains and losses are computed on the specific identification of the securities sold. Interest income, adjusted for amortization of discounts and premiums on investments to maturity, is earned from settlement date and is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Each Portfolio's investment income and realized gains and losses are allocated among the classes based upon the relative net assets of each class. Dividends and Distributions to Shareholders--It is the policy of the Portfolios to declare dividends daily from net investment income and to pay such dividends monthly. The Portfolios will distribute net realized short-term capital gains, unless offset by any available capital loss carryforward, annually after the fiscal year in which earned or more frequently to maintain a net asset value of $1.00 per share. Additional distributions of net investment income and capital gains may be made at the discretion of the Board of Trustees in order to avoid application of the 4% non-deductible Federal excise tax. Income distributions and capital gain distributions on a Portfolio level are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to timing differences and differing characterization of distributions made by the Portfolio as a whole. Federal Income Taxes--Each Portfolio intends to qualify as a regulated investment company by complying with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and by distributing substantially all of its earnings to its shareholders. Therefore, no Federal income or excise tax provision is required. Expenses--General expenses of the Trust are allocated to the Portfolios based upon relative net assets. Operating expenses directly attributable to a class of shares are charged to that class' operations. Expenses of each Portfolio not directly attributable to the operations of any class of shares are prorated among the classes to which the expense relates based on the relative average net assets of each class. 2. Investment Advisory Fee, Administrative Fee and Related Party Transac- tions. The Trust has entered into an Investment Advisory Agreement with Nations- Bank, N.A. (together with its predecessors "NationsBank"), a successor to NationsBank of North Carolina, N.A., an indirect wholly-owned subsidiary of NationsBank Corporation, with respect to each Portfolio. Under the terms of this agreement, NationsBank is entitled to a fee equal to 0.30%, on an annualized basis, of the average daily net assets of each Portfolio. Stephens Inc. ("Stephens") serves as the Trust's administrator pursuant to an Administration Agreement. The Shareholder Services Group, Inc. ("TSSG"), a wholly owned subsidiary of First Data Corporation, Inc., serves as the Trust's co-administrator pursuant to a Co-Administration Agreement. Under the Administration and Co-Administration Agreements, the administrator and the co-administrator are entitled to receive a combined fee, computed daily and paid monthly, at the annual rate of 0.10%, on an annualized basis, of the average daily net assets of the Trust on a com- bined basis. TSSG also serves as transfer agent for the Portfolios. For the six months ended October 31, 1995, Stephens earned $39,952 (after fee waivers) for its services. The investment adviser and administrator may, from time to time, reduce their fees (either voluntarily or pursuant to applicable state limita- tions). For the six months ended October 31, 1995, the investment adviser and administrator voluntarily waived fees and reimbursed expenses as fol- lows:
FEES FEES EXPENSES WAIVED WAIVED BY REIMBURSED BY ADVISER ADMINISTRATOR BY ADVISER Nations Cash Reserves $341,139 $ 39,029 -- Nations Treasury Reserves 535,424 57,757 -- Nations Government Reserves 141,608 17,376 -- Nations Municipal Reserves 158,702 16,702 $14,093
No officer, director or employee of NationsBank, Stephens or TSSG, or any affiliate thereof, receives any compensation from the Trust for serving as Trustee or officer of the Trust. The Trust pays each Trustee an annual fee of $1,000 ($3,000 for the Chairman of the Board), plus $500 per Portfolio and an additional $1,000 for each board meeting attended. The Trust also reimburses expenses incurred by the Trustees in attending such meetings. Eligible Trustees may participate in nonqualified 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 partici- pants are paid solely out of each Portfolio's assets. Income earned on each plan participant's deferral account will be tied to the rate of return of the eligible mutual funds offered by Nations Funds selected by the participants or, if no funds are selected, to the rate of return of the Nations Treasury Fund, a fund of Nations Fund, Inc. NationsBank of Texas, N.A. acts as the Portfolios' custodian. For the six months ended October 31, 1995, NationsBank of Texas, N.A. earned $95,994 for its services as custodian. Stephens acts as the distributor of the Portfolios' shares. 3. Shareholder Servicing and Distribution Plans. The Trust has adopted a distribution plan ("Liquidity Shares Plan") pursu- ant to Rule 12b-1 under the 1940 Act for the Liquidity Shares of the Port- folios. Under the Liquidity Shares Plan, the Trust may reimburse Stephens up to 0.30% of the average daily net assets of the Liquidity Shares for actual expenses incurred by Stephens in connection with the distribution of Liquidity Shares of the Portfolios. Currently, the Trust is not reim- bursing Stephens for any portion of such expenses. Unreimbursed expenses incurred by Stephens in a given year may not be re- covered by Stephens in subsequent years. In addition, the Liquidity Shares Plan permits the Trust to pay Stephens an annual fee of up to 0.30% of the average daily net assets of the Li- quidity Shares of the Nations Cash Reserves, Nations Government Reserves, and Nations Municipal Reserves and 0.35% of the average daily net assets of the Liquidity Shares of the Nations Treasury Reserves. Stephens may use this fee to compensate certain financial institutions that provide admin- istrative and/or distribution services to Liquidity Shares shareholders. The Trustees of the Trust have currently set this fee at an annual rate of 0.15% of the average daily net assets of the Liquidity Shares of each Portfolio. For the six months ended October 31, 1995, the Portfolios incurred the following amounts pursuant to the above plan:
LIQUIDITY SHARES PLAN Nations Cash Reserves $ 6,587 Nations Treasury Reserves 1,349 Nations Government Reserves 2 Nations Municipal Reserves 2,489
The Trust also has adopted a shareholder servicing plan ("Adviser Shares Servicing Plan") for the Adviser Shares of the Portfolios. Under the Ad- viser Shares Servicing Plan, a Portfolio may pay servicing agents that have entered into a shareholder servicing agreement with the Trust for certain shareholder support services that are provided by the servicing agents to holders of Adviser Shares. Payments under the Adviser Shares Servicing Plan are accrued daily and paid monthly at a rate that will not exceed 0.25%, on an annualized basis, of the average daily net assets of the Adviser Shares of the Portfolios. Fees paid pursuant to the Adviser Shares Servicing Plan are charged as expenses of Adviser Shares of a Port- folio as accrued. For the six months ended October 31, 1995, the Portfolios incurred the following amounts pursuant to the above plan:
ADVISER SHARES SERVICING PLAN Nations Cash Reserves $ 61,809 Nations Treasury Reserves 75,114 Nations Government Reserves 129,378 Nations Municipal Reserves 86,974
A substantial portion of the fees paid, pursuant to the Plans described above, are paid to affiliates of NationsBank. The following chart shows the effective rates, expressed as a percentage of average daily net assets, paid by the Portfolios under the shareholder servicing and distribution plans for the six months ended October 31, 1995:
ADVISER SHARES LIQUIDITY SERVICING SHARES PLAN PLAN Nations Cash Reserves 0.15% 0.25% Nations Treasury Reserves 0.15 0.25 Nations Government Reserves 0.15 0.25 Nations Municipal Reserves 0.15 0.25
4. Shares of Beneficial Interest. As of October 31, 1995, an unlimited number of shares without par value were authorized for the Trust. The Trust's Declaration of Trust authorizes the Board of Trustees to classify or reclassify any authorized, but unis- sued, shares into one or more additional classes or series of shares. Since the Portfolios have sold and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales and redemptions is the same as the amounts shown below for such transactions. Changes in capital stock for each Portfolio were as follows:
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 NATIONS CASH RESERVES: Capital Shares: Sold $493,400,903 $ 223,577,458 Issued as reinvestment of dividends 31,160 21,277 Redeemed (33,378,695) (199,387,461) Net increase $460,053,368 $ 24,211,274
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 Liquidity Shares: Sold $ 69,571,599 $ 60,277,929 Issued as reinvest ment of dividends 208,436 66 Redeemed (58,151,279) (130,063,068) Net increase/ (decrease) $ 11,628,756 $ (69,785,073)
SIX MONTHS ENDED PERIOD ENDED OCTOBER 31, APRIL 30, 1995 1995* NATIONS CASH RESERVES: (continued) Adviser Shares: Sold $ 132,871,480 $ 167,716,490 Issued as reinvestment of dividends 60 65 Redeemed (120,837,416) (120,033,155) Net increase $ 12,034,124 $ 47,683,400 * The Nations Cash Reserves Adviser Shares commenced operations on Septem- ber 22, 1994.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 NATIONS TREASURY RESERVES: Capital Shares: Sold $ 773,104,964 $ 1,677,277,600 Redeemed (578,540,379) (1,764,090,662) Net increase/(decrease) $ 194,564,585 $ (86,813,062)
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 Liquidity Shares: Sold $ 2,050,465 $ 17,013,126 Issued as reinvestment of dividends 49,616 11,987 Redeemed (1,053,748) (30,578,215) Net increase/(decrease) $ 1,046,333 $ (13,553,102)
SIX MONTHS ENDED PERIOD ENDED OCTOBER 31, APRIL 30, 1995 1995* Adviser Shares: Sold $ 94,099,253 $ 152,926,823 Issued as reinvestment of dividends 58 63 Redeemed (93,935,933) (97,162,217) Net increase $ 163,378 $ 55,764,669 * The Nations Treasury Reserves Adviser Shares commenced operations on September 22, 1994.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 NATIONS GOVERNMENT RESERVES: Capital Shares: Sold $ 59,202,777 $ 4,497,797 Issued as reinvestment of dividends 60 53 Redeemed (18,645,018) (15,314,675) Net increase/(decrease) $ 40,557,819 $ (10,816,825)
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 Liquidity Shares: Sold -- $ 243,816,794 Issued as reinvestment of dividends $ 58 424 Redeemed -- (503,652,300) Net increase/(decrease) $ 58 $(259,835,082)
SIX MONTHS ENDED PERIOD ENDED OCTOBER 31, APRIL 30, 1995 1995* Adviser Shares: Sold $ 165,425,713 $ 328,245,819 Issued as reinvestment of dividends 57 21 Redeemed (150,940,730) (228,998,294) Net increase $ 14,485,040 $ 99,247,546 * The Nations Government Reserves Adviser Shares commenced operations on September 22, 1994.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 NATIONS MUNICIPAL RESERVES: Capital Shares: Sold $ 19,842,781 $ 48,532,498 Redeemed (17,214,049) (51,877,866) Net increase/(decrease) $ 2,628,732 $ (3,345,368)
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1995 1995 NATIONS MUNICIPAL RESERVES: (continued) Liquidity Shares: Sold $ 26,251,036 $ 31,268,170 Issued as reinvestment of dividends 50,838 21,817 Redeemed (26,627,863) (42,503,982) Net decrease $ (325,989) $ (11,213,995)
SIX MONTHS ENDED PERIOD ENDED OCTOBER 31, APRIL 30, 1995 1995* Adviser Shares: Sold $ 136,769,203 $ 237,647,735 Issued as reinvestment of dividends 37 40 Redeemed (134,891,642) (173,524,340) Net increase $ 1,877,598 $ 64,123,435 * The Nations Municipal Reserves Adviser Shares commenced operations on September 22, 1994.
5. Restricted Securities The following securities are illiquid and restricted as to resale and, ac- cordingly, are valued at fair value in good faith by or under the direc- tion of the Trust's Board of Trustees taking into consideration such fac- tors as the Board deems appropriate. The following table shows the acquisition date, the par value, value per unit, market value, the percentage of the Nations Cash Reserves total net assets that the security comprises as well as the aggregate cost of such security at October 31, 1995.
ACQUISITION VALUE 10/31/95 PERCENTAGE OF SECURITY DATE PAR VALUE PER UNIT VALUE NET ASSETS COST Goldman Sachs Group Limited Partner- ship, 5.875% 04/16/96 10/18/95 $30,000,000 $1.00 $30,000,000 4.51% $30,000,000
The following table shows the acquisition date, the par value, value per unit, market value, the percentage of the Nations Treasury Reserves total net assets that the security comprises as well as the aggregate cost of such security at October 31, 1995.
REPURCHASE ACQUISITION VALUE 10/31/95 PERCENTAGE OF AGREEMENT DATE PAR VALUE PER UNIT VALUE NET ASSETS COST Morgan Stanley Group Inc., 5.700% 11/17/95 10/20/95 $25,000,000 $1.00 $25,000,000 4.96% $25,000,000
Certain securities may be sold only pursuant to certain legal restric- tions, and may be difficult to sell. The Portfolios will not invest more than 10% of the value of their respective net assets in securities that are illiquid. 6. Organization Costs. Expenses incurred in connection with the organization of each of the Port- folios, including the fees and expenses of registering and qualifying its shares for distribution under Federal and state securities regulations, are being amortized on a straight-line basis over a period of five years from commencement of operations of each Portfolio, respectively. In the event any of the initial shares of a Portfolio are redeemed by any holder thereof during the amortization period, the proceeds of such redemptions will be reduced by an amount equal to the pro-rata portion of unamortized deferred organizational expenses in the same proportion as the number of shares being redeemed bears to the number of initial shares of each Port- folio outstanding at the time of such redemption. All such costs have been fully amortized for Nations Government Reserves. 7. Concentration of Credit. The Portfolios invest primarily in money market instruments maturing in one year or less whose ratings are within the highest ratings categories by a nationally recognized statistical rating agency or, if not rated, are believed by NationsBank to be of comparable quality. The ability of the issuers of the securities held by the Portfolios to meet their obligations may be affected by economic and political developments in a specific in- dustry, state or region. 8. Capital Loss Carryforward. As of April 30, 1995, the Portfolios had available for Federal income tax purposes unused capital losses as follows:
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING IN 1998 IN 1999 IN 2000 IN 2001 IN 2002 IN 2003 Nations Cash Reserves -- $270 $2,594 $850 $ 574 -- Nations Treasury Reserves -- -- -- -- 9,255 $ 3,324 Nations Govern- ment Reserves -- -- -- -- -- 408 Nations Munici- pal Re- serves $72 -- -- -- -- 1,080
9. Subsequent Event. As of November 1, 1995, TSSG will be known as First Data Investor Services Group, Inc. This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus. October 31, 1995 Nations Institutional Reserves PO Box 34602 Charlotte, NC 28254-3584 Toll Free 1-800-290-2224 IRSAR1095 [Insert Logo] NATIONS INSTITUTIONAL RESERVES Nations Cash Reserves Nations Treasury Reserves Nations Government Reserves Nations Municipal Reserves SEMIANNUAL REPORT October 31, 1995 -----END PRIVACY-ENHANCED MESSAGE-----