-----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, HqLf7Kdco2gCOUkOqbstZy32FQ5Az8O2X4mwxB/M9uKfRU87071MGJCenye/JMbk jNKD0s9R1/eQ17iLuYaDKQ== 0000950135-97-000044.txt : 19970109 0000950135-97-000044.hdr.sgml : 19970109 ACCESSION NUMBER: 0000950135-97-000044 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961031 FILED AS OF DATE: 19970108 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: 97502438 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 NATIONS INSTITUTIONAL RESERVES 1 [LOGO] NATIONS INSTITUTIONAL RESERVES [LOGO: NATIONS FUND SEMI-ANNUAL REPORT] NATIONS CASH RESERVES NATIONS TREASURY RESERVES NATIONS GOVERNMENT RESERVES NATIONS MUNICIPAL RESERVES FOR THE PERIOD ENDED OCTOBER 31, 1996 2 - ------------------------------------------------------------------------------------- NOT MAY LOSE VALUE FDIC- INSURED NO BANK GUARANTEE - -------------------------------------------------------------------------------------
Nations Institutional Reserves Distributor: Stephens Inc. Stephens Inc., which is not affiliated with NationsBank, N.A., is not a bank, and the securities offered by it are not guaranteed by any bank or insured by the FDIC. Stephens Inc., member NYSE-SIPC. Nations Institutional Reserves Investment Adviser: NationsBanc Advisors, Inc. Nations Institutional Reserves Investment Sub-Adviser: TradeStreet Investment Associates, Inc. 3 DEAR SHAREHOLDER: We are pleased to present this Semi-Annual Financial Report for Nations Institutional Reserves (the "Funds"). We hope you will take a moment to review this report. It contains important financial information regarding your investment for the six-month period ended October 31, 1996. LOOKING BACK -- AN ELUSIVE ECONOMY To tighten or not to tighten? That was the question of the summer to which most major economic analysts claimed to have the answer. Yet, they came up short, or rather the Federal Reserve Board (the "Fed") did. Though the early consensus called for a Federal Funds tightening of at least 0.25% -- and some analysts even predicted a 0.50% move -- the early economic indicators subsequently proved to be misleading. Second quarter data suggested a booming economy which fueled the fire for tightening forecasts. After the June economic data release, the initial real Gross Domestic Product ("GDP") estimate of 4.2% revised up to 4.8% as retail sales jumped 0.7%*. With the unemployment rate low, and the capacity utilization rate and supplier delivery speed index rising, history suggested the time was ripe for the Fed to tighten at the August Federal Open Market Committee meeting. The economy appeared to have grown from solid to stronger-than-expected. One more month's worth of data would be available before the decision had to be made. As the July results came in, an unusually intense reversal in data suggested a potentially slowing and self-correcting economy. Inflation seemed benign and leading indicators slacked off. The supplier delivery speed index fell enough to push back a possible Fed move. From July through October, the National Association of Purchasing Management report's overall index fell significantly, with new orders down from 61.3 to 51.6. These trends put the Fed into a holding pattern for the time being. LOOKING AHEAD With GDP growth estimates down to a more modest 2.5% for the fourth quarter, it looks like a Fed tightening will not be on the near-term horizon. However, a rebound in economic climates may spring a series of interest-rate hikes beginning in the second quarter of 1997. The Funds will continue to be managed strategically to capture relative yield value along the curve within the changing economic climate. As economic and market conditions evolve, the adviser will attempt to position the portfolios appropriately. SERVING YOUR SHORT-TERM INVESTMENT NEEDS As a series of money market funds designed specifically for the needs of institutional investors, the Funds are managed daily to provide your organization with access to the major sectors of the money market -- conveniently and cost effectively. We thank you for choosing Nations Institutional Reserves to help pursue your short-term investment needs. Sincerely, /s/ A. Max Walker /s/ Mark H. Williamson A. Max Walker Mark H. Williamson President and Chairman of the Board President, NationsBanc Advisors, Inc. October 31, 1996 MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. HOWEVER, THERE IS NO ASSURANCE THAT 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 NOT A GUARANTEE OF FUTURE RESULTS. INVESTMENTS IN MONEY MARKET FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT. *SOURCE: BLOOMBERG 1 4 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ---------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- DOMESTIC -- 1.2% (Cost $20,000,000) Deutsche Bank, (New York), $ 20,000,000 5.700%..................................................... 09/17/97 $ 20,000,000 - ---------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- EURO -- 1.2% (Cost $19,989,814) Morgan Guaranty Trust Company, 20,000,000 4.920%..................................................... 02/12/97 19,989,814 - ---------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- YANKEE -- 11.0% Bayerische Landesbank, (New York), 50,000,000 5.788%..................................................... 08/01/97 50,000,000 Bayerische Vereinsbank AG, (New York): 35,000,000 5.320%..................................................... 02/24/97 35,000,000 20,000,000 5.840%..................................................... 10/28/97 20,000,000 Deutsche Bank, (New York), 25,000,000 5.780%..................................................... 11/17/97 25,000,000 Sanwa Bank Ltd. of New York: 25,000,000 5.360%..................................................... 11/15/96 25,000,000 30,000,000 5.360%..................................................... 11/18/96 30,000,282 - ---------------------------------------------------------------------------------------------------------- Total Certificates of Deposit -- Yankee (Cost $185,000,282)....... 185,000,282 - ---------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER -- 39.1% Aetna Life and Casualty Company: 20,000,000 Discount note.............................................. 01/17/97 19,756,167 10,000,000 Discount note.............................................. 04/11/97 9,739,717 Bankers Trust Company of New York: 10,000,000 Discount note.............................................. 02/18/97 9,835,592 20,000,000 Discount note.............................................. 04/15/97 19,507,750 Barnett Banks, Inc., 15,000,000 Discount note.............................................. 11/22/96 14,953,800 Chrysler Financial Corporation, 25,000,000 Discount note.............................................. 01/28/97 24,668,778 Countrywide Funding Corporation: 20,000,000 Discount note.............................................. 11/18/96 19,950,228 14,000,000 Discount note.............................................. 11/20/96 13,960,839 15,000,000 Discount note.............................................. 12/10/96 14,914,200 Finova Capital Corporation: 10,000,000 Discount note.............................................. 11/12/96 9,983,836 20,000,000 Discount note.............................................. 11/13/96 19,964,000 15,000,000 Discount note.............................................. 11/14/96 14,971,021 7,000,000 Discount note.............................................. 11/18/96 6,982,481 5,000,000 Discount note.............................................. 11/27/96 4,979,778 10,200,000 Discount note.............................................. 01/22/97 10,074,540
See Notes to Financial Statements. 2 5 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ---------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER (continued) General Motors Acceptance Corporation: $ 9,000,000 Discount note.............................................. 12/04/96 $ 8,954,460 15,000,000 Discount note.............................................. 12/13/96 14,905,500 10,000,000 Discount note.............................................. 03/12/97 9,796,222 Gotham Funding Corporation, 25,000,000 Discount note(a)........................................... 02/14/97 24,597,500 GTE Corporation: 40,000,000 Discount note.............................................. 11/07/96 39,964,867 20,000,000 Discount note.............................................. 11/15/96 19,958,856 10,000,000 Discount note.............................................. 11/18/96 9,975,067 International Securitization Corporation, 9,542,000 Discount note(a)........................................... 12/27/96 9,461,847 Lehman Brothers Holdings Inc.: 20,000,000 Discount note.............................................. 11/13/96 19,964,532 9,000,000 Discount note.............................................. 01/07/97 8,904,190 Mitsubishi International Corporation: 11,000,000 Discount note.............................................. 11/08/96 10,988,600 30,000,000 Discount note.............................................. 01/03/97 29,718,075 National Bank of Canada: 20,000,000 Discount note.............................................. 11/26/96 19,931,389 10,000,000 Discount note.............................................. 03/07/97 9,802,249 15,000,000 Discount note.............................................. 06/02/97 14,486,138 New Center Asset Trust, 25,000,000 Discount note.............................................. 11/22/96 24,921,978 NYNEX Corporation: 16,500,000 Discount note.............................................. 11/18/96 16,458,704 9,997,000 Discount note.............................................. 11/22/96 9,966,093 7,000,000 Discount note.............................................. 12/16/96 6,953,624 ODC Capital Corporation, 26,217,000 Discount note.............................................. 12/04/96 26,089,629 Sumitomo Corporation of America: 25,000,000 Discount note.............................................. 11/08/96 24,973,555 15,000,000 Discount note.............................................. 11/15/96 14,968,792 14,000,000 Discount note.............................................. 12/11/96 13,915,378 22,000,000 Discount note.............................................. 12/23/96 21,829,036 7,000,000 Discount note.............................................. 01/31/97 6,903,388 TI Group Inc., 7,000,000 Discount note(a)........................................... 04/15/97 6,826,750 Tri-Lateral Capital (USA) Inc., 20,000,000 Discount note(a)........................................... 01/17/97 19,766,006 - ---------------------------------------------------------------------------------------------------------- Total Commercial Paper (Cost $659,225,152)......................... 659,225,152 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 3 6 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ---------------------------------------------------------------------------------------------------------- CORPORATE OBLIGATIONS -- 13.0% Bank of New York, $25,000,000 5.130%..................................................... 03/07/97 $ 24,994,182 Bear Stearns Companies Inc., 25,000,000 5.484%+.................................................... 11/04/96++ 25,000,000 Beta Finance Inc., 25,000,000 5.570%+.................................................... 11/05/96++ 25,000,000 CS First Boston Inc.: 25,000,000 5.460%+.................................................... 11/01/96++ 25,000,000 25,000,000 5.480%+.................................................... 11/01/96++ 25,000,000 General Motors Acceptance Corporation, 25,000,000 5.480%+.................................................... 11/01/96++ 24,996,500 Lehman Brothers Holdings Inc., 50,000,000 5.514%+.................................................... 11/08/96++ 50,000,000 Merrill Lynch & Company, Inc., 20,000,000 5.460%+.................................................... 11/01/96++ 20,000,000 - ---------------------------------------------------------------------------------------------------------- Total Corporate Obligations (Cost $219,990,682)..................... 219,990,682 - ---------------------------------------------------------------------------------------------------------- MEDIUM TERM NOTES -- 2.4% Bank of America, 5,700,000 7.250%..................................................... 02/03/97 5,731,442 Bear Stearns Companies Inc., 25,000,000 5.025%..................................................... 02/10/97 25,000,000 Citicorp, 10,000,000 8.550%..................................................... 02/12/97 10,095,848 - ---------------------------------------------------------------------------------------------------------- Total Medium Term Notes (Cost $40,827,290)......................... 40,827,290 - ---------------------------------------------------------------------------------------------------------- GUARANTEED INVESTMENT CONTRACTS -- 7.4% Jackson National Life Insurance Company, 50,000,000 5.720%#.................................................... 01/01/97++ 50,000,000 New York Life Insurance Company, 50,000,000 5.695%..................................................... 01/01/97++ 50,000,000 Peoples Security Life Insurance Company, 25,000,000 5.510%#.................................................... 11/01/96++ 25,000,000 - ---------------------------------------------------------------------------------------------------------- Total Guaranteed Investment Contracts (Cost $125,000,000)......... 125,000,000 - ---------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.4% Federal Home Loan Bank, (FHLB), Note, 25,000,000 5.460%+.................................................... 11/01/96++ 25,000,000 Student Loan Marketing Association (SLMA), Note: 25,000,000 5.580%+.................................................... 11/01/96++ 25,000,000 25,000,000 5.480%+.................................................... 11/05/96++ 24,999,495 - ---------------------------------------------------------------------------------------------------------- Total U.S. Government Agency Obligations (Cost $74,999,495)........ 74,999,495 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 4 7 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - -------------------------------------------------------------------------------------------------------- U.S. TREASURY OBLIGATION -- 0.3% (Cost $5,028,114) U.S. Treasury Note, $ 5,000,000 8.000%..................................................... 01/15/97 $ 5,028,114 - -------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- 17.2% 40,000,000 Agreement with CS First Boston Corporation, 5.580% dated 10/31/96 to be repurchased at $40,006,200 on 11/01/96, collateralized by $42,045,000 FNMA Discount Notes, due 11/19/96 - 03/03/97 (value $41,408,510)........................ 40,000,000 25,000,000 Agreement with CS First Boston Corporation, 5.625% dated 10/31/96 to be repurchased at $25,003,906 on 11/01/96, collateralized by $25,900,000 Qualified First Tier Money Market Instruments, 5.340% due 01/27/97 (value $25,554,235)....................................................... 25,000,000 75,000,000 Agreement with HSBC Securities, 6.000% dated 10/31/96 to be repurchased at $75,012,500 on 11/01/96, collateralized by $104,558,769 GNMA, 6.500% - 8.500% due 05/15/11 - 10/15/26 (value $76,500,524)........................ 75,000,000 125,000,000 Agreement with Lehman Brothers Holdings Inc., 5.600% dated 10/31/96 to be repurchased at $125,019,444 on 11/01/96, collateralized by $127,502,000 Qualified First Tier Money Market Instruments, Zero-coupon - 5.450% due 11/01/96 - 07/18/97 (value $127,502,000)...................................... 125,000,000 25,000,000 Agreement with Merrill Lynch & Company, Inc., 5.620% dated 10/31/96 to be repurchased at $25,003,903 on 11/01/96, collateralized by $27,000,000 Yankee Certificates of Deposit (value $27,000,000)........................................ 25,000,000 - -------------------------------------------------------------------------------------------------------- Total Repurchase Agreements (Cost $290,000,000).................. 290,000,000 - -------------------------------------------------------------------------------------------------------- Shares - -------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS -- 4.1% 40,586,548 AIM Liquid Asset Portfolio........................................... 40,586,548 4,057,000 AIM Prime Fund....................................................... 4,057,000 23,507,000 Dreyfus Cash Management Plus Fund.................................... 23,507,000 435,500 Fidelity Institutional Cash Variable Rate Fund....................... 435,500 - -------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $68,586,048)...................... 68,586,048 - -------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $1,708,646,877*)................... 101.3% $1,708,646,877 - --------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 5 8 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Value NATIONS CASH RESERVES (Note 1) - -------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (NET)......................... (1.3)% Other assets......................................................... $ 8,102,394 Payable for investment securities purchased.......................... (25,000,000) Dividends payable.................................................... (4,198,945) Investment advisory fee payable (Note 2)............................. (161,170) Shareholder servicing and distribution fees payable (Note 3)......... (137,403) Accrued Trustees' fees and expenses (Note 2)......................... (44,531) Custodian fees payable (Note 2)...................................... (31,798) Administration fee payable (Note 2).................................. (18,420) Accrued expenses and other payables.................................. (201,494) - -------------------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................. (21,691,367) - -------------------------------------------------------------------------------------------------------- NET ASSETS................................................. 100.0% $1,686,955,510 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($1,041,156,132 / 1,041,159,059 shares outstanding).................. $ 1.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- Liquidity Class Shares: ($129,992,695 / 129,993,060 shares outstanding)...................... $ 1.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- Adviser Class Shares: ($365,307,097 / 365,308,126 shares outstanding)...................... $ 1.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- Market Class Shares: ($150,499,586 / 150,500,020 shares outstanding)...................... $ 1.00 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- * Aggregate cost for Federal tax purposes. + Floating rate note. The interest rate shown reflects the rate currently in effect. ++ Reset date. Interest rates reset either daily, weekly, monthly, quarterly or semi-annually. # Security subject to a demand feature which allows the Fund to put the security back to the issuer from 7 to 180 calendar days. (a) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. - -------------------------------------------------------------------------------------------------------- AT OCTOBER 31, 1996 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold.................... $ (4,755) Paid-in capital...................................................... 1,686,960,265 - -------------------------------------------------------------------------------------------------------- NET ASSETS........................................................... $1,686,955,510 - -------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 6 9 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS TREASURY RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS -- 25.3% U.S. TREASURY BILLS -- 13.0% $ 35,000,000 Discount note#............................................. 02/06/97 $ 34,523,083 5,000,000 Discount note#............................................. 04/03/97 4,887,375 5,000,000 Discount note.............................................. 04/10/97 4,886,111 5,000,000 Discount note.............................................. 05/01/97 4,870,535 10,000,000 Discount note#............................................. 08/21/97 9,550,733 5,000,000 Discount note.............................................. 10/16/97 4,740,552 - ------------------------------------------------------------------------------------------------------- 63,458,389 - ------------------------------------------------------------------------------------------------------- U.S. TREASURY NOTES -- 10.3% 5,000,000 8.000%#.................................................... 01/15/97 5,028,114 20,000,000 6.875%#.................................................... 02/28/97 20,108,718 5,000,000 6.625%..................................................... 03/31/97 5,024,667 10,000,000 6.500%#.................................................... 04/30/97 10,027,080 5,000,000 6.125%#.................................................... 05/31/97 5,010,830 5,000,000 5.750%..................................................... 09/30/97 5,002,341 - ------------------------------------------------------------------------------------------------------- 50,201,750 - ------------------------------------------------------------------------------------------------------- U.S. TREASURY STRIP -- 2.0% 10,000,000 Zero coupon................................................ 11/15/96 9,980,560 - ------------------------------------------------------------------------------------------------------- Total U.S. Treasury Obligations (Cost $123,640,699).................. 123,640,699 - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- FIXED RATE -- 81.0% 121,000,000 Agreement with Bankers Trust Company, 5.550% dated 10/31/96 to be repurchased at $121,018,654 on 11/01/96, collateralized by $43,482,000 U.S. Treasury Bills due 02/06/97 - 10/16/97; $9,945,000 U.S. Treasury Bond, 8.875% due 08/15/17; $67,096,000 U.S. Treasury Notes, 4.375% - 8.750% due 11/15/96 - 06/30/01 (value $123,469,466)........................... 121,000,000 89,667,000 Agreement with CS First Boston Corporation, Interest is payable monthly. The agreement is terminable by the fund daily. The final maturity of the agreement is 07/01/97, collateralized by $20,391,000 U.S. Treasury Strips, Principal Only, due 11/15/14 - 08/15/17; $173,720,604 U.S. Treasury Strips, Interest Only, due 05/15/97 - 02/15/15 (value $91,462,930)##....... 89,667,000 24,000,000 Agreement with Deutsche Bank Financial Inc., 5.550% dated 10/31/96 to be repurchased at $24,003,700 on 11/01/96, collateralized by $23,903,000 U.S. Treasury Note, 6.250% due 07/31/98 (value $24,480,975)............................ 24,000,000 24,000,000 Agreement with Dresdner Bank Inc., 5.550% dated 10/31/96 to be repurchased at $24,003,700 on 11/01/96, collateralized by $21,645,000 U.S. Treasury Note, 7.875% due 11/15/04 (value $24,484,068)............................ 24,000,000 24,000,000 Agreement with Goldman Sachs & Company, 5.580% dated 10/31/96 to be repurchased at $24,003,720 on 11/01/96, collateralized by $27,925,000 GNMA, 7.125% due 07/20/25 (value $24,483,888)....................................... 24,000,000
See Notes to Financial Statements. 7 10 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS TREASURY RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- FIXED RATE (continued) $24,000,000 Agreement with HSBC Securities, 5.600% dated 10/31/96 to be repurchased at $24,003,733 on 11/01/96, collateralized by $23,807,000 U.S. Treasury Notes, 5.500% - 7.125% due 02/29/00 - 04/30/00 (value $24,484,691)........ $ 24,000,000 9,000,000 Agreement with Lehman Brothers Holdings Inc., 5.580% dated 10/31/96 to be repurchased at $9,001,395 on 11/01/96, collateralized by $8,485,000 U.S. Treasury Note, 7.750% due 11/30/99 (value $9,176,167)............................. 9,000,000 24,000,000 Agreement with Merrill Lynch & Company, Inc., 5.580% dated 10/31/96 to be repurchased at $24,003,720 on 11/01/96, collateralized by $29,697,100 GNMA, 6.000% - 7.000% due 11/20/24 - 10/20/26 (value $24,566,245)........................ 24,000,000 24,000,000 Agreement with Morgan Stanley Group Inc., 5.580% dated 10/31/96 to be repurchased at $24,003,720 on 11/01/96, collateralized by $38,122,118 GNMA, 6.500% - 9.500% due 07/15/07 - 10/15/26 (value $24,825,880)........................ 24,000,000 9,000,000 Agreement with Smith Barney & Company, 5.580% dated 10/31/96 to be repurchased at $9,001,395 on 11/01/96, collateralized by $8,835,000 U.S. Treasury Note, 6.500% due 05/05/15 (value $9,180,727)............................. 9,000,000 24,000,000 Agreement with UBS Securities, Inc., 5.580% dated 10/31/96 to be repurchased at $24,003,720 on 11/01/96, collateralized by $32,609,491 GNMA, 6.500% - 7.250% due 09/20/23 - 02/20/25 (value $24,480,897)........................ 24,000,000 - ------------------------------------------------------------------------------------------------------- Total Repurchase Agreements -- Fixed Rate (Cost $396,667,000).. 396,667,000 - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- TERM -- 9.2% 15,000,000 Agreement with CIBC Wood Gundy Securities Corporation, 5.250%, terminable by the Portfolio daily, with a final maturity date of 12/16/96. Interest receivable as of 10/31/96 was $4,375 collateralized by $15,120,000 U.S. Treasury Note, 6.875% due 03/31/97 (value $15,303,029)....................................... 15,000,000 15,000,000 Agreement with Lehman Brothers Holdings Inc., 5.280%, terminable by the Portfolio daily, with a final maturity date of 11/04/96. Interest receivable as of 10/31/96 was $63,800 collateralized by $78,845,000 U.S. Treasury Strips, Principal Only, due 08/15/20 (value $15,300,661)................................... 15,000,000
See Notes to Financial Statements. 8 11 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS TREASURY RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- TERM (continued) $15,000,000 Agreement with Smith Barney & Company, 5.280%, terminable by the Portfolio daily, with a final maturity date of 11/04/96. Interest receivable as of 10/31/96 was $63,800 collateralized by $14,789,000 U.S. Treasury Note, 7.250% due 02/15/98 (value $15,300,564)....................................... $ 15,000,000 - ------------------------------------------------------------------------------------------------------- Total Repurchase Agreements -- Term (Cost $45,000,000)......... 45,000,000 - ------------------------------------------------------------------------------------------------------- Shares - ------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS -- 3.1% 9,155,000 AIM Treasury Fund.................................................... 9,155,000 2,301,000 Dreyfus Treasury Cash Management Fund................................ 2,301,000 3,837,000 Fidelity Institutional Cash Fund..................................... 3,837,000 - ------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $15,293,000).................... 15,293,000 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $580,600,699*)..................... 118.6% 580,600,699 - ------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (NET)......................... (18.6)% Other assets......................................................... 808,946 Payable for reverse repurchase agreement (Note 1).................... (89,667,000) Dividends payable.................................................... (2,054,519) Shareholder servicing and distribution fees payable (Note 3)......... (51,527) Investment advisory fee payable (Note 2)............................. (37,051) Accrued Trustees' fees and expenses.................................. (24,066) Custodian fees payable (Note 2)...................................... (23,920) Administration fee payable (Note 2).................................. (6,091) Accrued expenses and other payables.................................. (52,429) - ------------------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................. (91,107,657) - ------------------------------------------------------------------------------------------------------- NET ASSETS................................................. 100.0% $ 489,493,042 ======================================================================================================= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($261,106,002 / 261,121,303 shares outstanding)...................... $ 1.00 ======================================================================================================= Liquidity Class Shares: ($7,417,200 / 7,417,636 shares outstanding).......................... $ 1.00 ======================================================================================================= Adviser Class Shares: ($143,174,389 / 143,182,780 shares outstanding)...................... $ 1.00 ======================================================================================================= Market Class Shares: ($77,795,451 / 77,800,010 shares outstanding)........................ $ 1.00 =======================================================================================================
See Notes to Financial Statements. 9 12 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
NATIONS TREASURY RESERVES - -------------------------------------------------------------------------------------------------------- * Aggregate cost for Federal tax purposes. + Rate resets daily. The interest rate shown reflects the rate currently in effect. # Denotes securities subject to repurchase under reverse repurchase agreements as of October 31, 1996 (Note 1). ## Security segregated as collateral for reverse repurchase agreement. - --------------------------------------------------------------------------------------------------------
AT OCTOBER 31, 1996 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold....................... $ (27,839) Paid-in capital......................................................... 489,520,881 - -------------------------------------------------------------------------------------------------------- NET ASSETS.............................................................. $489,493,042 ========================================================================================================
See Notes to Financial Statements. 10 13 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS GOVERNMENT RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT AGENCY OBLIGATIONS -- 63.2% FEDERAL FARM CREDIT BANK (FFCB) NOTES -- 7.7% $ 5,000,000 5.300%+................................................... 11/01/96++ $ 4,998,747 5,000,000 5.300%+................................................... 11/01/96++ 4,998,226 5,000,000 5.600%.................................................... 06/03/97 4,995,896 5,000,000 5.840%.................................................... 06/18/97 4,995,198 - ------------------------------------------------------------------------------------------------------ 19,988,067 - ------------------------------------------------------------------------------------------------------ FEDERAL HOME LOAN BANK (FHLB) -- 13.7% 4,000,000 Discount note............................................. 11/14/96 3,992,532 Notes: 10,000,000 5.460%+................................................... 11/01/96++ 10,000,000 3,000,000 4.860%.................................................... 02/07/97 2,999,180 5,000,000 5.265%.................................................... 03/13/97 5,000,000 3,000,000 5.392%.................................................... 03/18/97 3,000,000 2,605,000 5.400%.................................................... 03/20/97 2,604,310 4,000,000 5.850%.................................................... 11/06/97 4,000,000 4,000,000 5.800%.................................................... 11/07/97 4,000,000 - ------------------------------------------------------------------------------------------------------ 35,596,022 - ------------------------------------------------------------------------------------------------------ FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -- 12.0% 3,000,000 Discount note............................................. 11/14/96 2,994,340 3,000,000 Discount note............................................. 11/19/96 2,992,230 3,000,000 Discount note............................................. 11/20/96 2,991,799 6,000,000 Discount note............................................. 11/21/96 5,982,708 8,000,000 Discount note............................................. 12/11/96 7,953,756 2,580,000 Discount note............................................. 01/02/97 2,556,761 3,000,000 Discount note............................................. 01/07/97 2,970,799 3,000,000 Discount note............................................. 01/16/97 2,966,813 - ------------------------------------------------------------------------------------------------------ 31,409,206 - ------------------------------------------------------------------------------------------------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) -- 6.4% 3,000,000 Discount note............................................. 12/09/96 2,983,533 3,000,000 Discount note............................................. 12/27/96 2,975,780 3,000,000 Discount note............................................. 03/18/97 2,937,208 3,000,000 Discount note............................................. 09/08/97 2,862,124 Note, 5,000,000 5.340%+................................................... 11/05/96++ 4,998,567 - ------------------------------------------------------------------------------------------------------ 16,757,212 - ------------------------------------------------------------------------------------------------------ STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 23.4% 3,000,000 Discount note............................................. 12/18/96 2,979,555 Notes: 10,000,000 5.580%+................................................... 11/01/96++ 10,000,000 20,000,000 5.350%+................................................... 11/05/96++ 19,971,440 10,000,000 5.360%+................................................... 11/05/96++ 9,997,127
See Notes to Financial Statements. 11 14 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Maturity Value Amount NATIONS GOVERNMENT RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------ STUDENT LOAN MARKETING ASSOCIATION (SLMA) (continued) $ 8,000,000 5.370%+................................................... 11/05/96++ $ 8,000,000 5,000,000 5.480%+................................................... 11/05/96++ 4,999,874 5,000,000 5.870%.................................................... 06/30/97 5,004,678 - ------------------------------------------------------------------------------------------------------ 60,952,674 - ------------------------------------------------------------------------------------------------------ Total U.S. Government Agency Obligations (Cost $164,703,181)...... 164,703,181 - ------------------------------------------------------------------------------------------------------ U.S. TREASURY OBLIGATIONS -- 5.8% U.S. Treasury Notes: 5,000,000 6.250%.................................................... 01/31/97 5,014,051 5,000,000 6.750%.................................................... 02/28/97 5,025,401 5,000,000 6.500%.................................................... 04/30/97 5,013,540 - ------------------------------------------------------------------------------------------------------ Total U.S. Treasury Obligations (Cost $15,052,992)................ 15,052,992 - ------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENT -- FIXED RATE -- 26.0% 12,000,000 Agreement with Lehman Brothers Holdings Inc., 5.580% dated 10/31/96 to be repurchased at $12,001,860 on 11/01/96, collateralized by $8,085,000 FNMA, 7.990% due 11/01/96; $4,360,000 FNMA Strips due 11/13/96 - 06/20/97 (value $12,240,665)........................... 12,000,000 55,913,000 Agreement with CS First Boston Corporation, 5.580% dated 10/31/96 to be repurchased at $55,921,667 on 11/01/96, collateralized by $54,525,000 U.S. Treasury Notes, 5.000% - 8.500% due 11/30/96 - 02/15/05 (value $57,947,836)..................................... 55,913,000 - ------------------------------------------------------------------------------------------------------ Total Repurchase Agreements -- Fixed Rate (Cost $67,913,000)...... 67,913,000 - ------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENT -- TERM -- 7.7% (Cost $20,000,000) 20,000,000 Agreement with Smith Barney & Company, 5.280%** terminable by the Portfolio daily, with a final maturity date of 11/04/96. Interest receivable as of 10/31/96 was $85,067, collateralized by $8,579,000 U.S. Treasury Note, 6.500% due 05/15/05; $19,169,000 U.S. Treasury Strips, Interest Only, due 10/15/04 (value $20,400,199)............................................ 20,000,000 - ------------------------------------------------------------------------------------------------------ Shares - ------------------------------------------------------------------------------------------------------ MONEY MARKET FUND -- 0.2% (Cost $528,000) 528,000 Fidelity Institutional Cash Fund...................................... 528,000 - ------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (Cost $268,197,173*).................... 102.9 % 268,197,173 - ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 12 15 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
NATIONS GOVERNMENT RESERVES - ------------------------------------------------------------------------------------------------------ OTHER ASSETS AND LIABILITIES (NET)........................ (2.9)% Other assets.......................................................... $ 1,614,126 Payable for investment securities purchased........................... (8,000,000) Dividends payable..................................................... (894,641) Shareholder servicing and distribution fees payable (Note 3).......... (61,684) Investment advisory fee payable (Note 2).............................. (15,342) Accrued Trustees' fees and expenses (Note 2).......................... (8,422) Custodian fees payable (Note 2)....................................... (7,106) Administration fee payable (Note 2)................................... (2,817) Accrued expenses and other payables................................... (62,573) - ------------------------------------------------------------------------------------------------------ TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. (7,438,459) - ------------------------------------------------------------------------------------------------------ NET ASSETS................................................ 100.0 % $260,758,714 - ------------------------------------------------------------------------------------------------------ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($44,203,793 / 44,204,267 shares outstanding)......................... $ 1.00 ====================================================================================================== Liquidity Class Shares: ($700,692 / 700,700 shares outstanding)............................... $ 1.00 ====================================================================================================== Adviser Class Shares: ($22,056,338 / 22,056,578 shares outstanding)......................... $ 1.00 ====================================================================================================== Market Class Shares: ($193,797,891 / 193,800,020 shares outstanding)....................... $ 1.00 ====================================================================================================== * Aggregate cost for Federal tax purposes ** Rate resets daily. The interest rate shown reflects the rate currently in effect. + Floating rate note. The interest rate shown reflects the rate currently in effect. ++ Reset date.
- ------------------------------------------------------------------------------------------------------ AT OCTOBER 31, 1996 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold..................... $ (2,062) Paid-in capital....................................................... 260,760,776 - ------------------------------------------------------------------------------------------------------ NET ASSETS............................................................ $260,758,714 ======================================================================================================
See Notes to Financial Statements. 13 16 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES OCTOBER 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 97.5% ALABAMA -- 5.9% Columbia, Alabama, Industrial Development Board, PCR, (Alabama Power Company Project), Series A, $2,200,000 3.650% due 05/01/22+.................................................. $ 2,200,000 Fort Payne, Alabama, Industrial Development Board, Industrial Development Revenue, (Brookwood Expansion Project), (AmSouth Bank N.A., Birmingham LOC), 1,300,000 3.700% due 12/01/97++................................................. 1,300,000 Gadsden, Alabama, Industrial Development Board, PCR, (Alabama Power Company Project), 1,900,000 3.650% due 06/01/15+.................................................. 1,900,000 Homewood, Alabama, Education Building Authority, Educational Facilities, (Samford University), Series C, (AmSouth Bank N.A., Birmingham LOC), 1,265,000 3.600% due 12/01/13++................................................. 1,265,000 McIntosh, Alabama, Industrial Development Board, PCR, (Ciba-Geigy Corporation Project), Series A, (Swiss Bank LOC), 2,200,000 3.550% due 12/01/03++................................................. 2,200,000 Mobile, Alabama, Industrial Development Board, PCR, (Alabama Power Company Project), 3,000,000 3.650% due 06/01/15+.................................................. 3,000,000 Parrish, Alabama, Industrial Development Board, PCR, (Alabama Power Company Project), 1,400,000 3.650% due 06/01/15+.................................................. 1,400,000 - ----------------------------------------------------------------------------------------------------- 13,265,000 - ----------------------------------------------------------------------------------------------------- ALASKA -- 0.8% Valdez, Alaska, Marine Terminal Revenue, (Arco Transportation Project), Series B, 1,900,000 3.650% due 05/01/31++................................................. 1,900,000 - ----------------------------------------------------------------------------------------------------- ARIZONA -- 1.3% Glendale, Arizona, United High School District, No. 205, TAN, Series A, 2,000,000 4.400% due 07/31/97................................................... 2,005,745 Pinal (County of), Arizona, Industrial Development Authority, PCR, (Magma Copper Company Project), (Banque Nationale de Paris LOC), 1,000,000 3.550% due 12/01/11++................................................. 1,000,000 - ----------------------------------------------------------------------------------------------------- 3,005,745 - ----------------------------------------------------------------------------------------------------- ARKANSAS -- 1.0% Little Rock, Arkansas, Metrocenter, Improvement District No. 1 Revenue, (Little Rock Newspapers Inc. Project), (Bank of New York, N.Y. LOC), 2,300,000 3.650% due 12/01/25+.................................................. 2,300,000 - ----------------------------------------------------------------------------------------------------- CALIFORNIA -- 4.3% Los Angeles, California, Regional Airports Improvement Corporation Lease Revenue, (Societe Generale de France LOC), 5,600,000 3.650% due 12/01/25+.................................................. 5,600,000 San Bernardino (County of), California, TRAN, GO, (Toronto Dominion Bank, Landesbank Hessen LOC), 3,000,000 4.500% due 06/30/97................................................... 3,011,918
See Notes to Financial Statements. 14 17 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) CALIFORNIA (continued) San Diego, California, Industrial Development Revenue, (Kaiser Aerospace and Electrical Project), Series A, AMT, (ABN-AMRO Bank LOC), $1,200,000 3.700% due 10/01/07++................................................. $ 1,200,000 - ----------------------------------------------------------------------------------------------------- 9,811,918 - ----------------------------------------------------------------------------------------------------- COLORADO -- 2.8% Colorado (State of), Health Facilities Authority Revenue, (Goodwill Industries), (Bank One of Denver LOC), 1,835,000 3.600% due 12/01/04++................................................. 1,835,000 Colorado (State of), Post Secondary Educational Authority, Economic Development Revenue, (U.S. Swimming), (Bank One LOC), 1,400,000 3.650% due 06/01/11++................................................. 1,400,000 Colorado (State of), Student Obligation Authority, Student Loan Revenue, Series B, AMT, (Student Loan Marketing Association LOC), 2,000,000 3.600% due 07/01/20++................................................. 2,000,000 Larimer (County of), Colorado, Industrial Development Revenue, (Ultimate Support System Project), Series A, (Bank One of Denver LOC), 1,150,000 3.600% due 06/01/10++................................................. 1,150,000 - ----------------------------------------------------------------------------------------------------- 6,385,000 - ----------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA -- 1.6% District of Columbia, Hospital Revenue, (Columbia Women's Hospital), Series A, (Mitsubishi Bank Ltd. LOC), 1,500,000 3.700% due 07/01/20++................................................. 1,500,000 District of Columbia Revenue, (Georgetown University), Series D, (Bayerische Landesbank LOC), 2,100,000 3.550% due 04/01/17++................................................. 2,100,000 - ----------------------------------------------------------------------------------------------------- 3,600,000 - ----------------------------------------------------------------------------------------------------- FLORIDA -- 4.7% Brevard (County of), Florida, Multi-family Housing Authority Revenue, (Malabar Lakes & Park Village), Series A, (First Bank, Minneapolis LOC), 2,575,000 3.650% due 12/01/10++................................................. 2,575,000 Fort Walton Beach, Florida, Industrial Development Revenue, (Burton Golf Inc. Project), AMT, (Columbus Bank & Trust Company LOC), 2,000,000 3.800% due 10/01/11++................................................. 2,000,000 Jacksonville, Florida, Health Facilities Authority, (Baptist Health Properties Project), (Barnett Bank (Jacksonville) LOC), 2,500,000 3.650% due 06/01/20+.................................................. 2,500,000 Orange (County of), Florida, Health Facilities Authority Revenue, (Mayflower Retirement Community Project), (Rabobank Nederland LOC), 1,000,000 3.650% due 03/01/18++................................................. 1,000,000 Orange (County of), Florida, Housing Finance Agency, Series B, AMT, 2,500,000 3.650% due 04/01/97................................................... 2,500,000 - ----------------------------------------------------------------------------------------------------- 10,575,000 - ----------------------------------------------------------------------------------------------------- GEORGIA -- 7.0% Clayton (County of), Georgia, Multi-family Housing Authority Revenue: (Rolling Hills Apartments Project), (AmSouth Bank N.A., Birmingham LOC), 1,820,000 3.700% due 06/15/17++................................................. 1,820,000
See Notes to Financial Statements. 15 18 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) GEORGIA (continued) Clayton (County of), Georgia, Multi-family Housing Authority Revenue (continued): (Ten Oaks Apartments Project), Series F, (FSA Insured), (Barclays Bank Plc LOC), $1,760,000 3.550% due 01/01/21++................................................. $ 1,760,000 Cobb (County of), Georgia, Residential Care Facilities Authority Revenue, (Presbyterian Homes Project), (Trust Company Bank LOC), 3,800,000 3.600% due 08/01/18++................................................. 3,800,000 Crisp County-Cordele, Georgia, Industrial Development Authority Revenue, (Florida Seed Company Inc. Project), AMT, (SouthTrust Bank of Alabama LOC), 1,200,000 3.850% due 12/01/10++................................................. 1,200,000 De Kalb (County of), Georgia, Housing Authority, Multi-family Housing Revenue: (Camden Brook Project), (FNMA Insured), 2,800,000 3.550% due 06/15/25++................................................. 2,800,000 (Cedar Creek Apartments Project), AMT, (General Electric Capital Corporation Insured), 1,400,000 3.900% due 12/01/20++................................................. 1,400,000 (Terrace Club Project), Series A, (AmSouth Bank N.A. LOC), 1,000,000 3.700% 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 3.550% due 06/01/25++................................................. 2,000,000 - ----------------------------------------------------------------------------------------------------- 15,780,000 - ----------------------------------------------------------------------------------------------------- ILLINOIS -- 13.2% Burbank, Illinois, Industrial Development Revenue, (Service Merchandise, Inc. Project), (Canadian Imperial Bank of Commerce LOC), 400,000 3.650% due 09/15/24+++................................................ 400,000 Chicago, Illinois, O'Hare International Airport, American Airlines Inc.: Series A, (Westdeutsche Landesbank LOC), 6,800,000 3.650% due 12/01/17+.................................................. 6,800,000 Series C, (Royal Bank of Canada LOC), 1,300,000 3.650% due 12/01/17+.................................................. 1,300,000 Series D, (Royal Bank of Canada LOC), 800,000 3.650% due 12/01/17+.................................................. 800,000 Illinois (State of), Development Finance Authority Revenue: (Chicago Symphony Orchestra), (Northern Trust Company LOC), 2,000,000 3.600% due 12/01/28++................................................. 2,000,000 (Residential Rental River Oaks Project), AMT, (Swiss Bank Corporation LOC), 1,500,000 3.600% due 12/15/19++................................................. 1,500,000 Illinois (State of), Development Financial Authority, Industrial Development Revenue: (Quality Screw & Nut Company Project), AMT, (National Bank of Detroit LOC), 1,700,000 3.750% due 05/01/15++................................................. 1,700,000 (Randolph Pickle Corporation Project), (American National Bank and Trust Company (Chicago) LOC), 800,000 3.800% due 06/01/12++................................................. 800,000
See Notes to Financial Statements. 16 19 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) ILLINOIS (continued) Illinois (State of), Development Financial Authority, Industrial Development Revenue (continued): (Unique Building Corporation Project), AMT, (American National Bank and Trust Company (Chicago) LOC), $1,200,000 3.800% due 05/01/09++................................................. $ 1,200,000 Illinois (State of), Education Facilities Authority Revenue, (Northwestern University, First National Bank (Chicago) SBPA), 1,400,000 3.650% due 12/01/25++................................................. 1,400,000 Illinois (State of), Health Facilities Authority Revenue: Health, Hospital & Nursing Home Improvements, (Streeterville Corporation Project), Series B, (First National Bank (Chicago) LOC), 1,000,000 3.600% due 08/15/23++................................................. 1,000,000 (Multi-family Park Plaza Center), (ABN-AMRO Bank LOC), 3,000,000 3.600% due 09/15/20++................................................. 3,000,000 (Resurrection Health Care Systems), (First National Bank of Chicago, NBD Bank, Comerica Bank, Lasalle Bank (SBPA)), 4,500,000 3.650% due 05/01/11+.................................................. 4,500,000 (Victory Health Project), Series C, 2,000,000 3.600% due 12/05/96................................................... 2,000,000 Lombard Village, Illinois, Industrial Project Revenue, B&H Partnership, (Comerica Bank LOC), 1,500,000 3.875% due 10/01/13++................................................. 1,500,000 - ----------------------------------------------------------------------------------------------------- 29,900,000 - ----------------------------------------------------------------------------------------------------- INDIANA -- 3.0% Auburn, Indiana, Economic Development Revenue, (RJ Tower Corporation Project), AMT, (Comerica Bank LOC), 1,680,000 3.900% due 09/01/00++................................................. 1,680,000 Carmel Clay, Indiana, Schools Tax Anticipation Warrants, Transportation Fund, 1,200,000 3.740% due 12/31/96................................................... 1,200,264 Indiana Bond Bank, Advance Funding Notes, 650,000 4.250% due 01/09/97................................................... 650,860 Indianapolis, Indiana, Local Public Improvement, Bond Bank Notes, Series A, 830,000 6.669% due 12/01/96................................................... 830,000 Indianapolis, Indiana, Multi-family Housing Revenue, (Canal Square Project), 1,300,000 3.500% due 12/01/15++................................................. 1,300,000 Kendallville, Indiana, Revenue, (McCray Memorial Hospital Project), (First National Bank (Chicago) LOC), 1,085,000 3.650% due 01/01/04++................................................. 1,085,000 - ----------------------------------------------------------------------------------------------------- 6,746,124 - ----------------------------------------------------------------------------------------------------- IOWA -- 2.2% Iowa (State of), School Corporations, Warrant Certificates: (Iowa School Cash Anticipation Program), Series B, (FSA Insured), 2,000,000 4.250% due 01/30/97................................................... 2,004,050 Series A, (FSA Insured), 3,000,000 4.750% due 06/27/97................................................... 3,015,043 - ----------------------------------------------------------------------------------------------------- 5,019,093 - -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 17 20 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) KENTUCKY -- 3.5% Daviess (County of), Kentucky, Solid Waste Disposal Facilities Revenue, (Scott Paper Company Project), Series B, AMT, (Kimberly Clark Guaranteed), $3,700,000 3.800% due 05/01/24+.................................................. $3,700,000 Jefferson (County of), Kentucky, Industrial Building Revenue, (Seven Counties Services Inc. Project), (Bank One LOC), 1,595,000 3.600% due 06/01/11++................................................. 1,595,000 Jefferson (County of), Kentucky, Industrial Development Revenue, (Belknap Inc. Project), (Chemical Bank LOC), 1,296,000 3.450% due 12/01/14+++................................................ 1,296,000 Jeffersontown, Kentucky, Industrial Building Revenue, (Raque Food System Inc. Project), AMT, (PNC Bank LOC), 1,300,000 3.850% due 04/01/20++................................................. 1,300,000 - --------------------------------------------------------------------------------------------------- 7,891,000 - --------------------------------------------------------------------------------------------------- MARYLAND -- 1.0% Montgomery (County of), Maryland, Industrial Development Revenue, (Information Systems and Network Corporation Project), (PNC Bank LOC), 200,000 3.550% due 04/01/14+++................................................ 200,000 Prince Georges (County of), Maryland, Housing Authority Mortgage Revenue, (Laurel-Oxford Project), (Bankers Trust Company LOC), 2,000,000 3.625% due 10/01/07++................................................. 2,000,000 - --------------------------------------------------------------------------------------------------- 2,200,000 - --------------------------------------------------------------------------------------------------- MISSISSIPPI -- 1.1% Flowood, Mississippi, Industrial Development Revenue, (BSC Steel Inc. Project), AMT, (PNC Bank LOC), 2,500,000 3.900% due 11/01/01++................................................. 2,500,000 - --------------------------------------------------------------------------------------------------- MONTANA -- 0.4% Billings, Montana, Industrial Development Revenue, (CFS-Continental Project), (Toronto Dominion Bank LOC), 1,000,000 3.600% due 12/01/14++................................................. 1,000,000 - --------------------------------------------------------------------------------------------------- NEBRASKA -- 0.5% Omaha, Nebraska, Auditorium Facilities Corporation Lease Revenue, (Omaha Civic Auditorium Project), 1,095,000 3.850% due 08/15/97................................................... 1,093,676 - --------------------------------------------------------------------------------------------------- NORTH DAKOTA -- 0.4% Mercer (County of), North Dakota, Solid Waste Disposal Revenue, AMT, National Rural Utilities, Series A, (CFC Insured), 1,000,000 3.700% due 03/01/97................................................... 1,000,000 - --------------------------------------------------------------------------------------------------- OHIO -- 2.8% Centerville, Ohio, Health Care Revenue, (Bethany Lutheran Village Project), (PNC Bank of Ohio LOC), 1,000,000 3.550% due 11/01/13++................................................. 1,000,000 Cuyhoga (County of), Ohio, Industrial Development Revenue, (Pleasant Lake Project), (Key Bank, N.A. LOC), 990,000 3.650% due 05/01/11++................................................. 990,000
See Notes to Financial Statements. 18 21 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) OHIO (continued) Greene (County of), Ohio, Industrial Development Revenue, (AFC Stamping Project), AMT, (Key Bank, N.A. LOC), $1,000,000 3.800% due 09/01/16++................................................. $1,000,000 Ohio (State of), Housing Finance Agency, Multi-family Housing Revenue, Kenwood Congregate Retirement Community, (Morgan Guaranty Trust Company LOC), 2,355,000 3.500% due 12/01/15+++................................................ 2,355,000 Trumbull (County of), Ohio, Industrial Development Revenue, (ATD Corporation Project), AMT, (Key Bank, N.A. LOC), 1,000,000 3.800% due 08/01/10++................................................. 1,000,000 - ----------------------------------------------------------------------------------------------------- 6,345,000 - ----------------------------------------------------------------------------------------------------- OKLAHOMA -- 0.4% Tulsa (County of), Oklahoma, Independent School District No. 5, GO, (AMBAC Insured), 1,000,000 5.200% due 04/01/97................................................... 1,007,640 - ----------------------------------------------------------------------------------------------------- PENNSYLVANIA -- 3.6% Chester (County of), Pennsylvania, Industrial Development Revenue, (Keystone Foods Corporation Project), (Bank of Scotland LOC), 400,000 3.950% due 10/15/99+++................................................ 400,000 Delaware (County of), Pennsylvania, Industrial Development Authority, PCR, (BP Oil Inc. Project): 2,800,000 3.650% due 12/01/09+.................................................. 2,800,000 2,700,000 3.650% due 10/01/19+.................................................. 2,700,000 Schuylkill (County of), Pennsylvania, Industrial Development Authority Revenue, Industrial Development, (PNC Bank LOC): (Bon-Ton Stores Project), AMT, 1,000,000 3.850% due 02/01/12++................................................. 1,000,000 (Grumbacher & Son Project), 1,240,000 3.650% due 02/01/12++................................................. 1,240,000 - ----------------------------------------------------------------------------------------------------- 8,140,000 - ----------------------------------------------------------------------------------------------------- SOUTH CAROLINA -- 3.4% Cherokee (County of), South Carolina, Industrial Development Revenue, (Holmberg Electric Corporation Project), (Wachovia Bank LOC), 1,000,000 3.600% due 11/01/04++................................................. 1,000,000 South Carolina (State of), Housing Authority, Rental Housing Revenue, (Hampton Pointe Apartment Project), (Bank of New York LOC), 5,000,000 3.750% due 12/01/07++................................................. 5,000,000 South Carolina (State of), Jobs, Economic Development Authority Revenue, (Spartanburg Young Mens Project), (First Union National Bank LOC), 1,800,000 3.650% due 06/01/18++................................................. 1,800,000 - ----------------------------------------------------------------------------------------------------- 7,800,000 - ----------------------------------------------------------------------------------------------------- SOUTH DAKOTA -- 0.4% South Dakota (State of), Economic Development Finance Authority, Industrial Development Revenue, (Lomar Development Company Project), Series B, AMT, (First Bank LOC), 930,000 4.000% due 08/01/08++................................................. 930,000 - -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 19 22 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) TENNESSEE -- 5.1% Chattanooga, Tennessee, Industrial Development Board, (Seaboard Farms of Chattanooga Project), (Bank of Nova Scotia LOC), $2,000,000 3.550% due 06/01/04++................................................. $ 2,000,000 Jefferson City, Tennessee, Industrial Development Board, (BA Property Project), AMT, (American National Bank and Trust Company (Chicago) LOC), 1,000,000 3.700% due 11/01/24++................................................. 1,000,000 Jefferson (County of), Tennessee, Industrial Development Board, Economic Development Revenue, (Ball Corporation Project), AMT, (PNC Bank LOC), 1,000,000 3.850% due 04/01/98++................................................. 1,000,000 Knoxville, Tennessee, Refunding & Improvement Revenue, GO, Series A, (MBIA Insured), 2,505,000 3.800% due 05/01/97................................................... 2,505,000 Memphis, Tennessee, Capital Outlay Notes, GO, 1,770,000 5.000% due 07/01/97................................................... 1,782,519 Metropolitan Nashville Airport Authority, Special Facilities Revenue, (American Airlines Inc., Project), Series B, (Bayerische Landesbank LOC), 1,300,000 3.650% due 10/01/12+.................................................. 1,300,000 Springfield, Tennessee, Industrial Development Board, All American Homes of Tennessee, AMT, (NBD Bank LOC), 1,900,000 3.750% due 11/15/09++................................................. 1,900,000 - ----------------------------------------------------------------------------------------------------- 11,487,519 - ----------------------------------------------------------------------------------------------------- TEXAS -- 8.7% Austin (County of), Texas, Industrial Development Corporation, Industrial Development Revenue, (Justin Industries Inc. Project), (Citibank LOC), 1,900,000 3.600% due 12/01/14++................................................. 1,900,000 Dallas, Texas, GO, Pre-refunded, 1,000,000 7.000% due 02/15/97................................................... 1,024,658 Harris (County of), Texas, Health Facilities Development Corporation, Hospital Revenue, (St. Luke's Episcopal Hospital), Series A, 1,550,000 3.650% due 02/15/21+.................................................. 1,550,000 Harris (County of), Texas, (Toll Road Multimode Project), Senior Lien, Series A, Pre-refunded, 2,000,000 7.450% due 02/15/97................................................... 2,082,389 Lubbock, Texas, Health Facilities Development Corporation Revenue, (Charter Plains Hospital), (Bankers Trust Company LOC), 2,000,000 3.600% due 10/01/13++................................................. 2,000,000 Nueces (County of), Texas, Health Facilities Development Corporation Revenue, (Driscoll Foundation Children's Project), (Bank One of Texas LOC), 1,200,000 3.600% due 07/01/15++................................................. .1,200,000 Sabine River Authority, Texas, PCR, Daily Collection, (Texas Utilities Electric Company Project), Series A, (AMBAC Insured), (Bank of New York SBPA), 2,300,000 3.600% due 03/01/26+.................................................. 2,300,000 Texas (State of), TRAN, Series A, 3,000,000 4.750% due 08/29/97................................................... 3,019,028
See Notes to Financial Statements. 20 23 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) TEXAS (continued) Trinity River, Texas, Industrial Development Authority, Industrial Development Revenue Bond, (Toys "R" Us Project), Series 1994, (Bankers Trust Company LOC), $1,000,000 3.625% due 11/01/14++................................................. $ 1,000,000 West Side Calhoun (County of), Texas, Development Corporation, PCR, (BP Oil Inc. Project), 3,600,000 3.650% due 12/01/15+.................................................. 3,600,000 - ----------------------------------------------------------------------------------------------------- 19,676,075 - ----------------------------------------------------------------------------------------------------- UTAH -- 4.4% Murray City, Utah, Industrial Development Revenue, (Zevex Inc. Project), AMT, (Bank One LOC), 2,000,000 3.750% due 10/01/16++................................................. 2,000,000 Salt Lake City, Utah, Housing Authority, Sandy Retirement Center, (Morgan Guaranty Trust Company, New York LOC), 1,000,000 3.500% due 01/01/09++................................................. 1,000,000 Salt Lake City, Utah, Industrial Development Revenue, (SPS Technologies Inc. Project), AMT, (National Australia Bank LOC), 4,500,000 3.850% due 12/01/12++................................................. 4,500,000 Utah (County of), Utah, Industrial Development Revenue, (McWare Inc. Project), (AmSouth Bank N.A. (Birmingham) LOC), 1,380,000 3.700% due 02/01/98++................................................. 1,380,000 West Valley City, Utah, Industrial Development Revenue, (Johnson Mattney Inc. Project), (Canadian Imperial Bank of Commerce LOC), 1,200,000 3.750% due 12/01/11+.................................................. 1,200,000 - ----------------------------------------------------------------------------------------------------- 10,080,000 - ----------------------------------------------------------------------------------------------------- VIRGINIA -- 5.9% Albemarle (County of), Virginia, Industrial Development Authority, Health Services Revenue, (University of Virginia Services Foundation), (First Union National Bank (North Carolina) LOC), 5,000,000 3.650% due 02/01/26++................................................. 5,000,000 Bedford (County of), Virginia, Industrial Development Revenue, (Nekoosa Packaging Corporation Project), (Industrial Bank of Japan Ltd. LOC), 1,300,000 3.750% due 10/01/04++................................................. 1,300,000 Virginia College, Virginia, Building Authority, Educational Facilities Revenue, (University of Richmond Project), (Crestar Bank LOC), 5,500,000 3.600% due 11/01/26++................................................. 5,500,000 Winchester, Virginia, Industrial Development Authority Revenue, Midwesco Filter, (Harris Trust & Savings Bank LOC), 1,575,000 3.850% due 08/01/07++................................................. 1,575,000 - ----------------------------------------------------------------------------------------------------- 13,375,000 - -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 21 24 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ----------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) WASHINGTON -- 1.4% Port Skagit (County of), Washington, Industrial Development Authority Revenue, (Cascade Clear Water Company Project), AMT, (Key Bank of Washington LOC), $1,000,000 3.800% due 12/01/20++................................................. $ 1,000,000 Washington (State of), Motor Vehicle Fuel Tax, Series B, 2,030,000 6.500% due 07/01/97................................................... 2,063,967 - ----------------------------------------------------------------------------------------------------- 3,063,967 - ----------------------------------------------------------------------------------------------------- WEST VIRGINIA -- 2.1% Marshall (County of), West Virginia, PCR, (BP Oil Inc. Project), 3,800,000 3.650% due 12/01/20+.................................................. 3,800,000 Ohio (County of), West Virginia, Industrial Development Revenue, (Ohio Valley Clarksburg Drug Company Project), (PNC Bank LOC), 900,000 4.000% due 12/01/01+++................................................ 900,000 - ----------------------------------------------------------------------------------------------------- 4,700,000 - ----------------------------------------------------------------------------------------------------- WISCONSIN -- 4.6% Howard Suamico, Wisconsin, School District, TRAN, 1,750,000 4.400% due 08/22/97................................................... 1,755,418 Kenosha, Wisconsin, TRAN, 2,500,000 4.250% due 06/30/97................................................... 2,503,970 Oshkosh, Wisconsin, Area School District, TRAN, 2,000,000 4.250% due 08/20/97................................................... 2,004,608 Pleasant Prairie, Wisconsin, Industrial Development Revenue, (Nucon Corporation Project), AMT, (First National Bank (Chicago) LOC), 955,000 3.700% due 02/01/22++................................................. 955,000 Sheboygan Falls, Wisconsin, School District, TRAN, 1,000,000 4.250% due 10/01/97................................................... 1,001,312 Sun Prairie, Wisconsin, Area School District, TRAN, 2,100,000 4.250% due 08/22/97................................................... 2,104,052 - ----------------------------------------------------------------------------------------------------- 10,324,360 - ----------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (Cost $220,902,117)..................... 220,902,117 - ----------------------------------------------------------------------------------------------------- Shares - ----------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS -- 0.4% 850,000 AIM Tax-Exempt Fund..................................................... 850,000 25,000 Fidelity Institutional Tax-Exempt Cash Management Fund.................. 25,000 - ----------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $875,000)............................ 875,000 - ----------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $221,777,117*).......................... 97.9% 221,777,117 - -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 22 25 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
Value NATIONS MUNICIPAL RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------ OTHER ASSETS AND LIABILITIES (NET).............................. 2.1% Other assets........................................................... $ 5,500,282 Dividends payable...................................................... (421,606) Due to custodian....................................................... (111,809) Shareholder servicing and distribution fees payable (Note 3)........... (39,740) Investment advisory fee payable (Note 2)............................... (14,989) Accrued Trustees' fees and expenses (Note 2)........................... (6,760) Custodian fees payable (Note 2)........................................ (6,062) Administration fee payable (Note 2).................................... (2,541) Accrued expenses and other payables.................................... (46,734) - ------------------------------------------------------------------------------------------------------ TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 4,850,041 - ------------------------------------------------------------------------------------------------------ NET ASSETS...................................................... 100.0% $226,627,158 ====================================================================================================== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($55,879,506 / 55,879,781 shares outstanding).......................... $ 1.00 ====================================================================================================== Liquidity Class Shares: ($59,387,675 / 59,387,976 shares outstanding).......................... $ 1.00 ====================================================================================================== Adviser Class Shares: ($9,360,486 / 9,360,533 shares outstanding)............................ $ 1.00 ====================================================================================================== Market Class Shares: ($101,999,491 / 102,000,020 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.
Nations Municipal Reserves had the following industry concentrations greater than 10% at October 31, 1996 (as a percentage of net assets): Education Revenue 13.1% Pollution Control Revenue 12.8% Hospital Revenue 12.3% Housing Revenue 10.0%
See Notes to Financial Statements. 23 26 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES October 31, 1996 (unaudited)
NATIONS MUNICIPAL RESERVES - ----------------------------------------------------------------------------------------------------- Abbreviations: AMBAC -- American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax CFC -- Cooperative Finance Corporation FNMA -- Federal National Mortgage Association FSA -- Financial Security Assurance GO -- General Obligation Bonds LOC -- Letter of Credit MBIA -- Municipal Bond Investors Assurance PCR -- Pollution Control Revenue SBPA -- Standby Bond Purchase Agreement TAN -- Tax Anticipation Notes TRAN -- Tax and Revenue Anticipation Notes - ----------------------------------------------------------------------------------------------------- AT OCTOBER 31, 1996 NET ASSETS CONSIST OF: Accumulated net realized loss on investment sold........................ $ (1,152) Paid-in capital......................................................... 226,628,310 - ----------------------------------------------------------------------------------------------------- NET ASSETS.............................................................. $226,627,158 =====================================================================================================
See Notes to Financial Statements. 24 27 STATEMENTS OF OPERATIONS NATIONS INSTITUTIONAL RESERVES For the Six Months Ended October 31, 1996 (unaudited)
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES - ------------------------------------------------------------------------------------------------------- Investment Income: Interest...................................... $33,178,116 $11,669,650 $6,083,968 $3,075,963 Dividends..................................... 1,628,601 391,875 38,355 89,134 - ------------------------------------------------------------------------------------------------------- Total Investment Income..................... 34,806,717 12,061,525 6,122,323 3,165,097 - ------------------------------------------------------------------------------------------------------- Expenses: Investment advisory fee (Note 2).............. 1,904,975 677,573 341,441 265,243 Administration fee (Note 2)................... 634,992 225,858 113,814 88,414 Transfer agent fees (Note 2).................. 26,815 24,725 27,240 23,613 Custodian fees (Note 2)....................... 93,770 67,041 22,180 16,355 Trustees' fees and expenses (Note 2).......... 36,690 12,045 6,678 5,480 Registration and filing fees.................. 257,182 33,804 54,256 55,581 Legal and audit fees.......................... 49,245 12,998 16,317 13,820 Other......................................... 37,063 55,990 12,051 5,949 - ------------------------------------------------------------------------------------------------------- Subtotal.................................... 3,040,732 1,110,034 593,977 474,455 Shareholder servicing and distribution fees (Note 3): Liquidity Class Shares...................... 61,777 3,515 168 13,976 Adviser Class Shares........................ 423,922 147,945 11,327 12,962 Market Class Shares......................... 198,909 126,336 305,842 148,386 Fees waived by investment adviser and administrator............................... (1,773,287) (659,834) (369,750 ) (299,289) - ------------------------------------------------------------------------------------------------------- Total Expenses.............................. 1,952,053 727,996 541,564 350,490 - ------------------------------------------------------------------------------------------------------- Net Investment Income..................... 32,854,664 11,333,529 5,580,759 2,814,607 - ------------------------------------------------------------------------------------------------------- Net Realized Gain on Investments (Note 1).................................. -- 6,650 -- -- - ------------------------------------------------------------------------------------------------------- Net Increase in Net Assets Resulting From Operations................................ $32,854,664 $11,340,179 $5,580,759 $2,814,607 =======================================================================================================
See Notes to Financial Statements. 25 28 STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES For the Six Months Ended October 31, 1996 (unaudited)
NATIONS TREASURY RESERVES - ------------------------------------------------------------------------------------------------------ Cash flows from operating and investing activities: Investment income received............................................ $ 11,750,998 Payment of operating expenses......................................... (641,444) Net proceeds of short-term investments................................ 18,278,285 - ------------------------------------------------------------------------------------------------------ Cash provided by operating and investing activities..................... $ 29,387,839 Cash flows from financing activities: Proceeds from shares sold............................................. 777,997,921 Payments on shares redeemed........................................... (780,737,682) Cash used from reverse repurchase agreements.......................... (15,577,000) Distributions paid*................................................... (11,071,472) - ------------------------------------------------------------------------------------------------------ Cash used by financing activities....................................... (29,388,233) - ------------------------------------------------------------------------------------------------------ Decrease in cash........................................................ (394) Cash at beginning of period............................................. 534 - ------------------------------------------------------------------------------------------------------ Cash at end of period................................................... $ 140 ====================================================================================================== RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES: Net increase in net assets resulting from operations.................... $ 11,340,179 Decrease in investments............................................... $ 17,101,973 Decrease in interest and dividends receivable......................... 859,135 Decrease in other assets.............................................. 90,545 Decrease in accrued expenses.......................................... (3,993) - ------------------------------------------------------------------------------------------------------ Cash provided by operating and investing activities..................... $ 29,387,839 ======================================================================================================
* Non-cash activities include reinvestment of dividends of $388,931. See Notes to Financial Statements. 26 29 STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES For the Six Months Ended October 31, 1996 (unaudited)
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES - ------------------------------------------------------------------------------------------------------- Net investment income..................... $ 32,854,664 $ 11,333,529 $ 5,580,759 $ 2,814,607 Net realized gain on investments.......... -- 6,650 -- -- - ------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations.............................. 32,854,664 11,340,179 5,580,759 2,814,607 Distributions to shareholders from net investment income: Capital Class Shares.................. (19,437,313) (6,610,324) (1,176,500) (1,079,277) Liquidity Class Shares................ (2,114,986) (117,002) (5,729) (304,520) Adviser Class Shares.................. (8,528,928) (2,894,793) (222,958) (160,923) Market Class Shares................... (2,773,437) (1,711,410) (4,175,572) (1,269,887) Net increase/(decrease) in net assets from shares of beneficial interest transactions (Note 4): Capital Class Shares.................. 433,513,378 (43,242,637) (13,918,053) 7,397,092 Liquidity Class Shares................ 94,545,758 (4,387,336) 571,305 52,654,404 Adviser Class Shares.................. (32,502,410) (32,520,867) (86,112,833) (46,151,513) Market Class Shares................... 150,500,020 77,800,010 193,800,020 102,000,020 - ------------------------------------------------------------------------------------------------------- Net increase/(decrease) in net assets..... 646,056,746 (2,344,180) 94,340,439 115,900,003 Net Assets: Beginning of period....................... 1,040,898,764 491,837,222 166,418,275 110,727,155 - ------------------------------------------------------------------------------------------------------- End of period............................. $1,686,955,510 $489,493,042 $260,758,714 $226,627,158 =======================================================================================================
See Notes to Financial Statements. 27 30 STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES For the Year Ended April 30, 1996
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES - ------------------------------------------------------------------------------------------------------- Net investment income..................... $ 28,719,705 $ 26,673,804 $ 6,892,333 $ 3,808,332 Net realized loss on investments.......... (467) (21,910) (1,654) -- - ------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations.............................. 28,719,238 26,651,894 6,890,679 3,808,332 Distributions to shareholders from net investment income: Capital Class Shares.................. (20,455,385) (19,934,505) (1,507,329) (1,408,074) Liquidity Class Shares................ (1,102,564) (145,195) (989) (144,956) Adviser Class Shares.................. (7,161,756) (6,594,104) (5,384,015) (2,255,302) Net increase/(decrease) in net assets from shares of beneficial interest transactions (Note 4): Capital Class Shares.................. 473,578,788 52,659,758 58,120,309 16,129,224 Liquidity Class Shares................ 35,445,236 11,130,769 127,332 4,142,504 Adviser Class Shares.................. 350,127,136 119,938,978 8,921,865 (8,611,389) - ------------------------------------------------------------------------------------------------------- Net increase in net assets................ 859,150,693 183,707,595 67,167,852 11,660,339 Net Assets: Beginning of year......................... 181,748,071 308,129,627 99,250,423 99,066,816 - ------------------------------------------------------------------------------------------------------- End of year............................... $1,040,898,764 $491,837,222 $166,418,275 $110,727,155 - ------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 28 31 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS CASH RESERVES - --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* - --------------------------------------------------------------------------------------------------------------------------- Capital Class Shares: Net asset value, beginning of year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Net investment income............... 0.0266 0.0570 0.0480 0.0283 0.0315 0.0492 0.0392 Dividends from net investment income............................ (0.0266 ) (0.0570) (0.0480) (0.0283) (0.0315) (0.0492) (0.0392) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++...................... 2.69% 5.84% 4.91% 2.87% 3.19% 5.03% 7.35%+ =========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's)... $1,041,156 $607,643 $134,064 $109,852 $ 55,739 $100,943 $ 19,387 Ratio of operating expenses to average net assets.............. 0.20%+ 0.20% 0.29% 0.45% 0.45% 0.45% 0.45%+ Ratio of net investment income to average net assets.............. 5.28%+ 5.53% 4.96% 2.83% 3.15% 4.61% 7.04%+ Ratio of operating expenses to average net assets without waivers......................... 0.48%+ 0.51% 0.52% 0.56% 0.59% 0.74% 0.79%+ Ratio of net investment income to average net assets without waivers......................... 5.00%+ 5.22% 4.73% 2.72% 3.01% 4.32% 6.70%+ Net investment income per share without waivers................. $ 0.0252 $ 0.0538 $ 0.0458 $ 0.0272 $ 0.0298 $ 0.0455 $ 0.0373 =========================================================================================================================== * The Nations Cash Reserves Capital Class Shares commenced operations on October 10, 1990. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 29 32 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS CASH RESERVES - --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* - --------------------------------------------------------------------------------------------------------------------------- Liquidity Class Shares: Net asset value, beginning of year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Net investment income............... 0.0259 0.0555 0.0471 0.0273 0.0305 0.0482 0.0197 Dividends from net investment income............................ (0.0259) (0.0555) (0.0471) (0.0273) (0.0305) (0.0482) (0.0197) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++...................... 2.62% 5.70% 4.81% 2.77% 3.09% 4.92% 6.44%+ ========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's)... $129,993 $ 35,447 $ 2 $ 69,786 $ 19,411 $ 4,776 $ 10,361 Ratio of operating expenses to average net assets.............. 0.35%+ 0.35% 0.38% 0.55% 0.55% 0.55% 0.55%+ Ratio of net investment income to average net assets.............. 5.13%+ 5.38% 4.87% 2.74% 2.96% 4.94% 6.41%+ Ratio of operating expenses to average net assets without waivers......................... 0.63%+ 0.66% 0.61% 0.65% 0.68% 0.85% 0.87%+ Ratio of net investment income to average net assets without waivers......................... 4.85%+ 5.07% 4.64% 2.64% 2.82% 4.64% 6.09%+ Net investment income per share without waivers................. $ 0.0245 $ 0.0523 $ 0.0448 $ 0.0262 $ 0.0287 $ 0.0447 $ 0.0186 =========================================================================================================================== * The Nations Cash Reserves Liquidity Class Shares commenced operations on January 9, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 30 33 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS CASH RESERVES - -------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR PERIOD 10/31/96 ENDED ENDED (UNAUDITED) 04/30/96 04/30/95* - -------------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year..................................... $ 1.00 $ 1.00 $ 1.00 - -------------------------------------------------------------------------------------------------------------------- Net investment income.................................................. 0.0254 0.0545 0.0316 Dividends from net investment income................................... (0.0254) (0.0545) (0.0316) - -------------------------------------------------------------------------------------------------------------------- Net asset value, end of year........................................... $ 1.00 $ 1.00 $ 1.00 ==================================================================================================================== Total Return++......................................................... 2.57% 5.58% 3.20% ==================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year (000's)...................................... $365,307 $397,809 $ 47,682 Ratio of operating expenses to average net assets.................... 0.45%+ 0.45% 0.54%+ Ratio of net investment income to average net assets................. 5.03%+ 5.28% 4.71%+ Ratio of operating expenses to average net assets without waivers.... 0.73%+ 0.76% 0.77%+ Ratio of net investment income to average net assets without waivers............................................................ 4.75%+ 4.97% 4.48%+ Net investment income per share without waivers...................... $ 0.0240 $ 0.0513 $ 0.0300 ==================================================================================================================== * The Nations Cash Reserves Adviser Class Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 31 34 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout each year.
NATIONS CASH RESERVES - ----------------------------------------------------------------------------------------------------------------- PERIOD ENDED 10/31/96* (UNAUDITED) - ----------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of year................................................... $ 1.00 - ----------------------------------------------------------------------------------------------------------------- Net investment income................................................................ 0.0246 Dividends from net investment income................................................. (0.0246) - ----------------------------------------------------------------------------------------------------------------- Net asset value, end of year......................................................... $ 1.00 ================================================================================================================= Total Return++....................................................................... 2.49% ================================================================================================================= Ratios to average net assets/supplemental data: Net assets, end of year (000's).................................................... $150,500 Ratio of operating expenses to average net assets.................................. 0.55%+ Ratio of net investment income to average net assets............................... 4.93%+ Ratio of operating expenses to average net assets without waivers.................. 0.83%+ Ratio of net investment income to average net assets without waivers............... 4.65%+ Net investment income per share without waivers.................................... $ 0.0232 ================================================================================================================= * The Nations Cash Reserves Market Class Shares commenced operations on May 3, 1996. + Annualized. ++ Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements. 32 35 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* --------------------------------------------------------------------------------------------------------------------------- Capital Class Shares: Net asset value, beginning of year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income............... 0.0259 0.0556 0.0480 0.0298 0.0323 0.0481 0.0176 Net realized gain on investments.... -- -- -- -- 0.0001 0.0003 -- - --------------------------------------------------------------------------------------------------------------------------- Total from investment operations.... 0.0259 0.0556 0.0480 0.0298 0.0324 0.0484 0.0176 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income.......................... (0.0259) (0.0556) (0.0480) (0.0298) (0.0323) (0.0481) (0.0176) Distributions from net realized gains........................... -- -- -- -- (0.0001) (0.0003) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions............... (0.0259) (0.0556) (0.0480) (0.0298) (0.0324) (0.0484) (0.0176) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Total Return++...................... 2.62% 5.71% 4.91% 3.02% 3.29% 4.92% 5.89%+ - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets/ supplemental data: Net assets, end of year (000's)... $ 261,106 $304,342 $251,694 $338,504 $418,644 $ 19,587 $ 4,519 Ratio of operating expenses to average net assets.............. 0.20%+ 0.20% 0.20% 0.20% 0.20% 0.26% 0.45%+ Ratio of net investment income to average net assets.............. 5.14%+ 5.50% 4.79% 2.99% 2.99% 4.39% 5.85%+ Ratio of operating expenses to average net assets without waivers......................... 0.49%+ 0.51% 0.50% 0.52% 0.72% 1.06% 0.94%+ Ratio of net investment income to average net assets without waivers......................... 4.85%+ 5.19% 4.50% 2.67% 2.48% 3.59% 5.36%+ Net investment income per share without waivers................. $ 0.0244 $ 0.0525 $ 0.0451 $ 0.0267 $ 0.0251 $ 0.0368 $ 0.0161 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- * The Nations Treasury Reserves Capital Class Shares commenced operations on January 11, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 33 36 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES - --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* - --------------------------------------------------------------------------------------------------------------------------- Liquidity Class Shares: Net asset value, beginning of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income.................... 0.0252 0.0541 0.0462 0.0263 0.0288 0.0454 0.0173 Net realized gain on investments......... -- -- -- -- 0.0001 0.0003 -- - --------------------------------------------------------------------------------------------------------------------------- Total from investment operations......... 0.0252 0.0541 0.0462 0.0263 0.0289 0.0457 0.0173 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income............................... (0.0252) (0.0541) (0.0462) (0.0263) (0.0288) (0.0454) (0.0173 ) Distributions from net realized gains................................ -- -- -- -- (0.0001) (0.0003) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions.................. (0.0252) (0.0541) (0.0462) (0.0263) (0.0289) (0.0457) (0.0173 ) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++........................... 2.54% 5.57% 4.71% 2.67% 2.93% 4.64% 5.79%+ =========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's)........ $ 7,417 $ 11,804 $ 674 $ 14,227 $ 3,369 $ 2,807 $ 2,891 Ratio of operating expenses to average net assets........................... 0.35%+ 0.35% 0.49% 0.55% 0.55% 0.52% 0.55%+ Ratio of net investment income to average net assets................... 4.99%+ 5.35% 4.50% 2.67% 2.89% 4.62% 5.75%+ Ratio of operating expenses to average net assets without waivers........... 0.64%+ 0.66% 0.79% 0.87% 1.07% 1.32% 1.04%+ Ratio of net investment income to average net assets without waivers... 4.70%+ 5.04% 4.21% 2.35% 2.37% 3.82% 5.26%+ Net investment income per share without waivers.............................. $ 0.0237 $ 0.0510 $ 0.0431 $ 0.0232 $ 0.0213 $ 0.0349 $ 0.0160 ===========================================================================================================================
* The Nations Treasury Reserves Liquidity Class Shares commenced operations on January 11, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indicated. See Notes to Financial Statements. 34 37 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES - -------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR PERIOD 10/31/96 ENDED ENDED (UNAUDITED) 04/30/96 04/30/95* - -------------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year........................................ $ 1.00 $ 1.00 $ 1.00 - -------------------------------------------------------------------------------------------------------------------- Net investment income..................................................... 0.0247 0.0531 0.0308 Dividends from net investment income...................................... (0.0247) (0.0531) (0.0308) - -------------------------------------------------------------------------------------------------------------------- Net asset value, end of year.............................................. $ 1.00 $ 1.00 $ 1.00 - -------------------------------------------------------------------------------------------------------------------- Total Return++............................................................ 2.50% 5.45% 3.11% ==================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year (000's)......................................... $143,174 $175,691 $ 55,762 Ratio of operating expenses to average net assets....................... 0.45%+ 0.45% 0.45%+ Ratio of net investment income to average net assets.................... 4.89%+ 5.25% 4.54%+ Ratio of operating expenses to average net assets without waivers....... 0.74%+ 0.76% 0.75%+ Ratio of net investment income to average net assets without waivers.... 4.60%+ 4.94% 4.25%+ Net investment income per share without waivers......................... $ 0.0232 $ 0.0500 $ 0.0288 ====================================================================================================================
* The Nations Treasury Reserves Adviser Class Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indicated. See Notes to Financial Statements. 35 38 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES - ------------------------------------------------------------------------------------------------------------------ PERIOD ENDED 10/31/96* (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------ Market Class Shares: Net asset value, beginning of year............................................................. $ 1.00 - ------------------------------------------------------------------------------------------------------------------ Net investment income.......................................................................... 0.0239 Dividends from net investment income........................................................... (0.0239) - ------------------------------------------------------------------------------------------------------------------ Net asset value, end of year................................................................... $ 1.00 ================================================================================================================== Total Return++................................................................................. 2.41% ================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year (000's).............................................................. $ 77,795 Ratio of operating expenses to average net assets............................................ 0.55%+ Ratio of net investment income to average net assets......................................... 4.79%+ Ratio of operating expenses to average net assets without waivers............................ 0.84%+ Ratio of net investment income to average net assets without waivers......................... 4.50%+ Net investment income per share without waivers.............................................. $ 0.0224 ==================================================================================================================
* The Nations Treasury Reserves Market Class Shares commenced operations on May 3, 1996. + Annualized. ++ Total return represents aggregate total return for the period indicated. See Notes to Financial Statements. 36 39 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES - --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* - --------------------------------------------------------------------------------------------------------------------------- Capital Class Shares: Net asset value, beginning of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income................... 0.0261 0.0556 0.0463 0.0278 0.0312 0.0343 0.0168 Net realized gain on investments........ -- -- -- -- -- 0.0023 -- - --------------------------------------------------------------------------------------------------------------------------- Total from investment operations.... 0.0261 0.0556 0.0463 0.0278 0.0312 0.0366 0.0168 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income................................ (0.0261) (0.0556) (0.0463) (0.0278) (0.0312) (0.0343) (0.0168) Distributions from net realized gains................................. -- -- -- -- -- (0.0023) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions................... (0.0261) (0.0556) (0.0463) (0.0278) (0.0312) (0.0366) (0.0168) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++............................ 2.63% 5.71% 4.72% 2.82% 3.15% 3.71% 5.57%+ =========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's)......... $ 44,204 $ 58,121 $ 2 $ 10,819 $ 7,396 $ 1,800 $ 295 Ratio of operating expenses to average net assets............................ 0.20%+ 0.20% 0.32% 0.45% 0.45% 0.45% 0.45%+ Ratio of net investment income to average net assets.................... 5.20%+ 5.48% 4.35% 2.78% 3.07% 4.24% 5.89%+ Ratio of operating expenses to average net assets without waivers............ 0.52%+ 0.53% 0.54% 0.51% 0.64% 0.76% 0.80%+ Ratio of net investment income to average net assets without waivers.... 4.87%+ 5.15% 4.13% 2.72% 2.88% 3.93% 5.54%+ Net investment income per share without waivers............................... $ 0.0245 $ 0.0523 $ 0.0439 $ 0.0272 $ 0.0288 $ 0.0313 $ 0.0158 =========================================================================================================================== * The Nations Government Reserves Capital Class Shares commenced operations on January 17, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 37 40 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* --------------------------------------------------------------------------------------------------------------------------- Liquidity Class Shares: Net asset value, beginning of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income.................. 0.0253 0.0537 0.0453 0.0268 0.0302 0.0461 0.0176 Net realized gain on investments....... -- -- -- -- -- 0.0023 -- - --------------------------------------------------------------------------------------------------------------------------- Total from investment operations..... 0.0253 0.0537 0.0453 0.0268 0.0302 0.0484 0.0176 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income............................... (0.0253) (0.0537) (0.0453) (0.0268) (0.0302) (0.0461) (0.0176) Distributions from net realized gains................................ -- -- -- -- -- (0.0023) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions.................. (0.0253) (0.0537) (0.0453) (0.0268) (0.0302) (0.0484) (0.0176) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++........................... 2.57% 5.51% 4.59% 2.71% 3.05% 4.70% 6.04%+ =========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's)........ $ 701 $ 129 $ 2 $259,836 $149,252 $ 12,486 $ 5,589 Ratio of operating expenses to average net assets........................... 0.35%+ 0.35% 0.40% 0.55% 0.55% 0.55% 0.55%+ Ratio of net investment income to average net assets................... 5.05%+ 5.33% 4.27% 2.68% 2.71% 4.46% 5.86%+ Ratio of operating expenses to average net assets without waivers........... 0.67%+ 0.68% 0.62% 0.61% 0.74% 0.86% 0.94%+ Ratio of net investment income to average net assets without waivers... 4.72%+ 5.00% 4.05% 2.62% 2.52% 4.18% 5.47%+ Net investment income per share without waivers.............................. $ 0.0237 $ 0.0504 $ 0.0430 $ 0.0262 $ 0.0274 $ 0.0422 $ 0.0170 =========================================================================================================================== * The Nations Government Reserves Liquidity Class Shares commenced operations on January 11, 1991. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 38 41 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES - ------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR PERIOD 10/31/96 ENDED ENDED (UNAUDITED) 04/30/96 04/30/95* - ------------------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year............................................ $ 1.00 $ 1.00 $ 1.00 - ------------------------------------------------------------------------------------------------------------------------- Net investment income......................................................... 0.0248 0.0527 0.0299 Dividends from net investment income.......................................... (0.0248) (0.0527) (0.0299) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year.................................................. $ 1.00 $ 1.00 $ 1.00 ========================================================================================================================= Total Return++................................................................ 2.51% 5.39% 3.04% ========================================================================================================================= Ratios to average net assets/supplemental data: Net assets, end of year (000's)............................................. $ 22,056 $108,168 $ 99,246 Ratio of operating expenses to average net assets........................... 0.45%+ 0.45% 0.57%+ Ratio of net investment income to average net assets........................ 4.95%+ 5.23% 4.10%+ Ratio of operating expenses to average net assets without waivers........... 0.77%+ 0.78% 0.79%+ Ratio of net investment income to average net assets without waivers........ 4.62%+ 4.90% 3.88%+ Net investment income per share without waivers............................. $ 0.0232 $ 0.0494 $ 0.0283 ========================================================================================================================= * The Nations Government Reserves Adviser Class Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 39 42 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES - ----------------------------------------------------------------------------------------------------------------------- PERIOD ENDED 10/31/96* (UNAUDITED) - ----------------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of year.................................................................... $ 1.00 - ----------------------------------------------------------------------------------------------------------------------- Net investment income................................................................................. 0.0241 Dividends from net investment income.................................................................. (0.0241) - ----------------------------------------------------------------------------------------------------------------------- Net asset value, end of year.......................................................................... $ 1.00 ======================================================================================================================= Total Return++........................................................................................ 2.42% ======================================================================================================================= Ratios to average net assets/supplemental data: Net assets, end of year (000's)..................................................................... $193,798 Ratio of operating expenses to average net assets................................................... 0.55%+ Ratio of net investment income to average net assets................................................ 4.85%+ Ratio of operating expenses to average net assets without waivers................................... 0.87%+ Ratio of net investment income to average net assets without waivers................................ 4.52%+ Net investment income per share without waivers..................................................... $ 0.0225 ======================================================================================================================= * The Nations Government Reserves Market Class Shares commenced operations on May 3, 1996. + Annualized. ++ Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements. 40 43 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES - --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* - --------------------------------------------------------------------------------------------------------------------------- Capital Class Shares: Net asset value, beginning of year... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Net investment income................ 0.0171 0.0362 0.0313 0.0198 0.0231 0.0356 0.0245 Dividends from net investment income............................. (0.0171) (0.0362) (0.0313) (0.0198) (0.0231) (0.0356) (0.0245) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++....................... 1.72% 3.70% 3.19% 2.00% 2.34% 3.62% 4.62%+ =========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's).... $ 55,880 $ 48,482 $ 32,353 $ 35,698 $ 26,145 $ 18,150 $ 5,064 Ratio of operating expenses to average net assets............... 0.20%+ 0.20% 0.23% 0.45% 0.45% 0.45% 0.45%+ Ratio of net investment income to average net assets............... 3.38%+ 3.61% 3.36% 1.98% 2.27% 3.38% 4.70%+ Ratio of operating expenses to average net assets without waivers and/or expenses reimbursed....................... 0.54%+ 0.58% 0.59% 0.58% 0.66% 0.89% 0.99%+ Ratio of net investment income to average net assets without waivers and/or expenses reimbursed....................... 3.04%+ 3.23% 2.99% 1.85% 2.05% 2.94% 4.16%+ Net investment income per share without waivers and/or expenses reimbursed....................... $ 0.0154 $ 0.0324 $ 0.0279 $ 0.0186 $ 0.0203 $ 0.0296 $ 0.0216 =========================================================================================================================== * The Nations Municipal Reserves Capital Class Shares commenced operations on October 23, 1990. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 41 44 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES - --------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR PERIOD 10/31/96 ENDED ENDED ENDED ENDED ENDED ENDED (UNAUDITED) 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91* - --------------------------------------------------------------------------------------------------------------------------- Liquidity Class Shares: Net asset value, beginning of year... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------------------------- Net investment income................ 0.0163 0.0347 0.0304 0.0188 0.0221 0.0346 0.0478 Dividends from net investment income............................. (0.0163) (0.0347) (0.0304) (0.0188) (0.0221) (0.0346) (0.0478) - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========================================================================================================================== Total Return++....................... 1.64% 3.52% 3.09% 1.90% 2.24% 3.52% 4.60%+ =========================================================================================================================== Ratios to average net assets/ supplemental data: Net assets, end of year (000's).... $ 59,388 $ 6,734 $ 2,591 $ 13,805 $ 10,766 $ 11,473 $ 8,927 Ratio of operating expenses to average net assets............... 0.35%+ 0.35% 0.33% 0.55% 0.55% 0.55% 0.55%+ Ratio of net investment income to average net assets............... 3.23%+ 3.46% 3.26% 1.86% 2.21% 3.36% 5.22%+ Ratio of operating expenses to average net assets without waivers and/or expenses reimbursed....................... 0.69%+ 0.73% 0.69% 0.67% 0.76% 0.99% 0.81%+ Ratio of net investment income to average net assets without waivers and/or expenses reimbursed....................... 2.89%+ 3.08% 2.89% 1.74% 2.00% 2.92% 4.96%+ Net investment income per share without waivers and/or expenses reimbursed....................... $ 0.0146 $ 0.0309 $ 0.0270 $ 0.0176 $ 0.0192 $ 0.0285 $ 0.0455 =========================================================================================================================== * The Nations Municipal Reserves Liquidity Class Shares commenced operations on June 1, 1990. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 42 45 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES - -------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR PERIOD 10/31/96 ENDED ENDED (UNAUDITED) 04/30/96 04/30/95* - -------------------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year............................................... $ 1.00 $ 1.00 $ 1.00 - -------------------------------------------------------------------------------------------------------------------------- Net investment income............................................................ 0.0158 0.0337 0.0199 Dividends from net investment income............................................. (0.0158) (0.0337) (0.0199) - -------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year..................................................... $ 1.00 $ 1.00 $ 1.00 ========================================================================================================================== Total Return++................................................................... 1.59% 3.43% 2.02% ========================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year (000's)................................................ $ 9,360 $ 55,511 $ 64,123 Ratio of operating expenses to average net assets.............................. 0.45%+ 0.45% 0.48%+ Ratio of net investment income to average net assets........................... 3.13%+ 3.36% 3.11%+ Ratio of operating expenses to average net assets without waivers and/or expenses reimbursed.......................................................... 0.79%+ 0.83% 0.84%+ Ratio of net investment income to average net assets without waivers and/or expenses reimbursed.......................................................... 2.79%+ 2.98% 2.74%+ Net investment income per share without waivers and/or expenses reimbursed..... $ 0.0141 $ 0.0299 $ 0.0176 ========================================================================================================================== * The Nations Municipal Reserves Adviser Class Shares commenced operations on September 22, 1994. + Annualized. ++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements. 43 46 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES - ------------------------------------------------------------------------------------------------------------------------- PERIOD ENDED 10/31/96* (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of year...................................................................... $ 1.00 - ------------------------------------------------------------------------------------------------------------------------- Net investment income................................................................................... 0.0151 Dividends from net investment income.................................................................... (0.0151) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year............................................................................ $ 1.00 ========================================================================================================================= Total Return++.......................................................................................... 1.52% ========================================================================================================================= Ratios to average net assets/supplemental data: Net assets, end of year (000's)....................................................................... $101,999 Ratio of operating expenses to average net assets..................................................... 0.55%+ Ratio of net investment income to average net assets.................................................. 3.03%+ Ratio of operating expenses to average net assets without waivers..................................... 0.89%+ Ratio of net investment income to average net assets without waivers.................................. 2.69%+ Net investment income per share without waivers....................................................... $ 0.0134 ========================================================================================================================= * The Nations Municipal Reserves Market Class Shares commenced operations on May 3, 1996. + Annualized. ++ Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements. 44 47 NOTES TO FINANCIAL STATEMENTS (unaudited) NATIONS INSTITUTIONAL RESERVES 1. Significant Accounting Policies. NATIONS INSTITUTIONAL RESERVES (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 offers four portfolios: Nations Cash Reserves, Nations Treasury Reserves, Nations Government Reserves and Nations Municipal Reserves (individually, a "Portfolio", collectively, the "Portfolios"). The Portfolios currently offer four classes of shares: Capital Class Shares, Liquidity Class Shares, Adviser Class Shares and Market Class Shares. Matters affecting each class will be voted on exclusively by its respective shareholders. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates. The following is a summary of significant accounting policies followed by the Portfolios in the preparation of their financial statements. Securities Valuation -- The securities of each Portfolio are valued on the basis of amortized cost, which approximates market value. Amortized cost valuation involves initially valuing an instrument at its cost and thereafter assuming a constant amortization to maturity of any discount or premium, as long as the effect of fluctuating interest rates on the fair 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. Generally, in the event of counterparty default, the Portfolio has the right to use the collateral to offset losses incurred. There would be a potential loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its right to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Portfolio seeks to assert its right. Unless permitted by the Securities and Exchange Commission, the Portfolio will not enter into repurchase agreements with its investment adviser, distributor or any of its affiliates. The Portfolio's investment adviser, acting under the supervision of the Board of Trustees, monitors the value of the collateral received as well as the creditworthiness of those banks and dealers with which the Portfolios enter into repurchase agreements to evaluate potential risks. Reverse Repurchase Agreements -- Nations Cash Reserves, Nations Treasury Reserves and Nations Government Reserves are authorized to enter into reverse repurchase agreements with institutions that the Portfolio's investment adviser has determined to be credit worthy. Under a reverse repurchase agreement, the Portfolio sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Portfolio enters into a reverse repurchase agreement, it is required to establish a segregated account with its custodian bank in which it will maintain cash, U.S. Government securities or other liquid high grade debt obligations in an amount at least equal in value to the Portfolio's obligations arising under the reverse repurchase agreement. Reverse repurchase agreements involve the risk that the market value of the securities purchased with the proceeds from the sale of securities received by the Portfolio may decline below the price of the securities that the Portfolio is obligated to repurchase. Securities subject to repurchase under reverse repurchase agreements are designated in the Statement of Net Assets. At October 31, 1996, the Nations Treasury Reserves had reverse repurchase agreements outstanding as follows: Maturity Amount................................................. $89,667,000 Maturity Date................................................... 07/01/97 Market Value of Assets Sold Under Agreements.................... $89,135,933
The average daily balance of reverse repurchase agreements outstanding during the six months ended October 31, 1996 was $91,130,370. Nations Cash Reserves and Nations Government Reserves did not enter into any reverse repurchase agreements during the six months ended October 31, 1996. 45 48 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES 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 six months ended October 31, 1996, representing the difference between interest rates on the reverse repurchase and repurchase agreements, amounted to $66,955. Such amounts 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 the 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 classes based upon the relative average net assets of each class of shares. Dividends and Distributions to Shareholders -- It is the policy of each Portfolio to declare dividends daily from net investment income and to pay such dividends monthly. Each Portfolio will distribute net realized short-term capital gains annually after the fiscal year in which earned or more frequently to maintain a net asset value of $1.00 per share, unless offset by any available capital loss carryforward. 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 a 4% non-deductible Federal excise tax. Income distributions and capital gain distributions on a Portfolio level are determined in accordance with Federal income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to timing differences and differing characterization of distributions made by the Portfolio as a whole. Federal Income Tax -- It is the policy of each Portfolio 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 applicable. Expenses -- General expenses of the Trust are allocated to the relevant Portfolios based upon relative net assets. Operating expenses directly attributable to a class of shares are charged to such class' operations. Expenses of each Portfolio not directly attributable to the operations of any class of shares are prorated among the classes based on the relative average net assets of each class of shares. Cash Flow Information -- Cash, as used in the Statement of Cash Flows, is the amount of cash on hand at custodian banks. The Trust issues and redeems shares, invests in securities, and distributes dividends from net investment income and net capital gains (which are either paid in cash or reinvested at the discretion of shareholders). These activities are reported in the Statements of Changes in Net Assets. Information on cash payments is presented in the Statement of Cash Flows. 2. Investment Advisory Fee, Administrative Fee and Related Party Transactions. The Trust has, on behalf of its Portfolios, entered into an investment advisory agreement ("Investment Advisory Agreement") with NationsBanc Advisors, Inc. ("NBAI"), a wholly-owned subsidiary of NationsBank, N.A. ("NationsBank"). Under the terms of the Investment Advisory Agreement, NBAI is entitled to receive an advisory fee from the Portfolios equal to 0.30% on an annualized basis, of the average daily net assets of each Portfolio. The Trust has entered into a sub-advisory agreement ("Sub-Advisory Agreement") with NBAI and TradeStreet Investment Associates, Inc. ("TradeStreet"), a wholly-owned subsidiary of NationsBank. Under the terms of the Sub-Advisory Agreement, TradeStreet is entitled to receive from NBAI a sub-advisory fee for each Portfolio at the annual rate of 0.033% of such Portfolio's average daily net assets. Stephens Inc. ("Stephens") serves as the administrator of the Trust pursuant to an administration agreement ("Administration Agreement"). First Data Investor Services Group, Inc. ("First Data"), a wholly-owned subsidiary of First Data Corporation, serves as the co-administrator of the Trust pursuant to a co-administration agreement ("Co-Administration Agreement"). Pursuant to 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% of average daily net assets of the Portfolios on a combined basis. 46 49 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES For the six months ended October 31, 1996, Stephens earned $106,308 (after fee waivers) from the Portfolios for its administration services. The investment adviser, sub-adviser, administrator and co-administrator may, from time to time, reduce their fees payable by each Portfolio (either voluntarily or pursuant to applicable state limitations). For the six months ended October 31, 1996, the investment adviser and administrator voluntarily waived the following fees:
FEES WAIVED BY FEES INVESTMENT WAIVED BY ADVISER ADMINISTRATOR ---------- ------------- Nations Cash Reserves....................................... $1,231,794 $541,493 Nations Treasury Reserves................................... 467,260 192,574 Nations Government Reserves................................. 272,733 97,017 Nations Municipal Reserves.................................. 223,894 75,395
No officer, director or employee of NationsBank, NBAI, TradeStreet, Stephens, First Data or any affiliate thereof, receives any compensation from the Trust for serving as a trustee, officer or employee 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 in-person board meeting, and $500 for each telephonic board meeting attended. The Trust also reimburses expenses incurred by the Trustees in attending such meetings. The Portfolios' eligible Trustees may participate in a non-qualified deferred compensation plan and retirement plans, which may be terminated at any time. All benefits provided under these plans are unfunded and any payments to plan participants are paid solely out of the Portfolios' assets. Income earned on each plan participant's deferral account is tied to the rate of return of the eligible mutual funds selected by the participant or, if no funds are selected, to the rate of return of Nations Treasury Fund, a fund of Nations Fund, Inc. The expenses for the deferred compensation plan are included in the "Trustees' fees and expenses" line of the Statements of Operations. NationsBank of Texas, N.A. ("NationsBank of Texas") acts as the custodian for the Portfolios and, for the six months ended October 31, 1996, earned $199,346 for providing such services. On October 18, 1996, the Bank of New York became the sub-custodian for the Portfolios. First Data also serves as the transfer agent for the Portfolios' shares. NationsBank of Texas acts as the sub-transfer agent for the Capital Class Shares of the Portfolios and, for the six months ended October 31, 1996, earned approximately $11,499 for providing such services. Stephens also acts as distributor of the Portfolios' shares. 3. Shareholder Servicing and Distribution Plans. The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act for the Liquidity Class Shares ("Liquidity Class Shares Plan") and the Market Class Shares ("Market Class Shares Plan") of the Portfolios. Under the Liquidity Class Shares Plan, the Trust may reimburse Stephens for actual expenses incurred by Stephens in connection with the distribution of Liquidity Class Shares up to 0.30% of the average daily net assets of the Liquidity Class Shares of the Portfolios. Under the Market Class Shares Plan, the Trust may compensate or reimburse Stephens for any activities or expenses primarily intended to result in the sale of the Market Class Shares up to 0.20% of the average daily net assets of the Market Class Shares of the Portfolios. Currently, the Trust is not reimbursing Stephens for any portion of such expenses for Liquidity Class Shares and Market Class Shares. Unreimbursed expenses incurred by Stephens in a given year may not be recovered by Stephens in subsequent years. In addition, the Liquidity Class Shares Plan permits the Trust to pay Stephens an annual fee of up to 0.30% of the average daily net assets of the Liquidity Class Shares of Nations Cash Reserves, Nations Government Reserves, and Nations Municipal Reserves and 0.35% of the average daily net assets of the Liquidity Class Shares of Nations Treasury Reserves. Stephens may use this fee to compensate certain financial institutions, with which it has entered into servicing agreements, that provide administrative and/or distribution services to Liquidity Class Shares shareholders. Currently, the Trust is not accruing fees pursuant to the Liquidity Class Shares Plan. 47 50 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES The Trust also has adopted shareholder servicing plans ("Servicing Plans") for the Liquidity Class Shares, Adviser Class Shares and Market Class Shares of the Portfolios. Under the Servicing Plans, 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 Liquidity Class Shares, Adviser Class Shares and Market Class Shares. Payments under the Servicing Plans are accrued daily and paid monthly at rates that will not exceed 0.25%, on an annualized basis, of the average daily net assets of the Liquidity Class Shares, Adviser Class Shares and Market Class Shares, of the Portfolios. Fees paid pursuant to the Servicing Plans are charged as expenses of Liquidity Class Shares, Adviser Class Shares and Market Class Shares, respectively, as accrued. For the six months ended October 31, 1996, the effective annualized rates paid by the Portfolios, as a percentage of average daily net assets, pursuant to the plans are as follows:
LIQUIDITY CLASS ADVISER CLASS MARKET CLASS LIQUIDITY CLASS SHARES SHARES MARKET CLASS SHARES SHARES SERVICING SERVICING SHARES SERVICING PORTFOLIO PLAN PLAN PLAN PLAN PLAN ---------------- --------------- --------------- ------------- ------------ ------------ Nations Cash Reserves...... 0.00% 0.15% 0.25% 0.10% 0.25% Nations Treasury Reserves...... 0.00% 0.15% 0.25% 0.10% 0.25% Nations Government Reserves...... 0.00% 0.15% 0.25% 0.10% 0.25% Nations Municipal Reserves...... 0.00% 0.15% 0.25% 0.10% 0.25%
A substantial portion of the fees paid pursuant to the plans described above are paid to affiliates of NationsBank. 4. Shares of Beneficial Interest. As of October 31, 1996, 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 unissued, 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, 1996 1996 ---------------- -------------- NATIONS CASH RESERVES: Capital Class Shares: Sold............................................ $ 1,934,166,985 $1,186,447,620 Issued as reinvestment of dividends............. 5,291,619 1,201,076 Redeemed........................................ (1,505,945,226) (714,069,908) --------------- -------------- Net increase.................................... $ 433,513,378 $ 473,578,788 =============== ==============
48 51 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- ------------- NATIONS CASH RESERVES (CONTINUED): Liquidity Class Shares: Sold............................................ $ 1,097,080,482 $ 316,764,360 Issued as reinvestment of dividends............. 1,377,445 842,517 Redeemed........................................ (1,003,912,169) (282,161,641) --------------- ------------- Net increase.................................... $ 94,545,758 $ 35,445,236 =============== =============
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- Adviser Class Shares: Sold............................................ $ 397,443,550 $ 764,101,646 Issued as reinvestment of dividends............. 471,502 78,897 Redeemed........................................ (430,417,462) (414,053,407) ------------- ------------- Net increase/(decrease)......................... $ (32,502,410) $ 350,127,136 ============= =============
PERIOD ENDED OCTOBER 31, 1996* ---------------- Market Class Shares: Sold............................................ $224,800,020 Redeemed........................................ (74,300,000) ------------ Net increase.................................... $150,500,020 ============
- --------------- * The Nations Cash Reserves Market Class Shares commenced operations on May 3, 1996.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- NATIONS TREASURY RESERVES: Capital Class Shares: Sold............................................ $ 478,046,567 $1,731,309,808 Issued as reinvestment of dividends............. 69,255 -- Redeemed........................................ (521,358,459) (1,678,650,050) ------------- -------------- Net increase/(decrease)........................... $ (43,242,637) $ 52,659,758 ============= ==============
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- Liquidity Class Shares: Sold............................................ $ 15,519,444 $ 23,746,115 Issued as reinvestment of dividends............. 77,747 113,655 Redeemed........................................ (19,984,527) (12,729,001) ------------ ------------ Net increase/(decrease)......................... $ (4,387,336) $ 11,130,769 ============ ============
49 52 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- NATIONS TREASURY RESERVES (CONTINUED): Adviser Class Shares: Sold............................................ $ 158,881,910 $ 569,065,291 Issued as reinvestment of dividends............. 241,929 31,406 Redeemed........................................ (191,644,706) (449,157,719) ------------- ------------- Net increase/(decrease)......................... $ (32,520,867) $ 119,938,978 ============= =============
PERIOD ENDED OCTOBER 31, 1996* ------------- Market Class Shares: Sold............................................ $125,550,010 Redeemed........................................ (47,750,000) ------------ Net increase.................................... $ 77,800,010 ============
- --------------- * The Nations Treasury Reserves Market Class Shares commenced operations on May 3, 1996.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- ------------- NATIONS GOVERNMENT RESERVES: Capital Class Shares: Sold............................................ $ 74,866,607 $154,655,322 Issued as reinvestment of dividends............. 67,934 30,543 Redeemed........................................ (88,852,594) (96,565,556) ------------ ------------ Net increase/(decrease)......................... $(13,918,053) $ 58,120,309 ============ ============
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- ----------- Liquidity Class Shares: Sold............................................ $1,025,576 $ 346,343 Issued as reinvestment of dividends............. 5,729 989 Redeemed........................................ (460,000) (220,000) ---------- --------- Net increase.................................... $ 571,305 $ 127,332 ========== =========
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- Adviser Class Shares: Sold............................................ $ 52,997,634 $ 327,190,413 Issued as reinvestment of dividends............. 157,964 14,421 Redeemed........................................ (139,268,431) (318,282,969) ------------- ------------- Net increase/(decrease)......................... $ (86,112,833) $ 8,921,865 ============= =============
50 53 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES
PERIOD ENDED OCTOBER 31, 1996* ---------------- NATIONS GOVERNMENT RESERVES (CONTINUED): Market Class Shares: Sold............................................ $ 331,900,020 Redeemed........................................ (138,100,000) ------------- Net increase.................................... $ 193,800,020 =============
- --------------- * The Nations Government Reserves Market Class Shares commenced operations on May 3, 1996.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- NATIONS MUNICIPAL RESERVES: Capital Class Shares: Sold............................................ $ 108,793,133 $ 176,646,799 Redeemed........................................ (101,396,041) (160,517,575) ------------- ------------- Net increase.................................... $ 7,397,092 $ 16,129,224 ============= =============
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- Liquidity Class Shares: Sold............................................ $143,500,066 $ 60,121,685 Issued as reinvestment of dividends............. 299,694 135,917 Redeemed........................................ (91,145,356 ) (56,115,098) ------------ ------------ Net increase/(decrease)......................... $ 52,654,404 $ 4,142,504 ============ ============
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 1996 1996 ---------------- -------------- Adviser Class Shares: Sold............................................ $ 39,336,540 $ 265,087,129 Issued as reinvestment of dividends............. 143,871 71 Redeemed........................................ (85,631,924) (273,698,589) ------------ ------------- Net increase/(decrease)......................... $(46,151,513) $ (8,611,389) ============ =============
PERIOD ENDED OCTOBER 31, 1996* ------------- Market Class Shares: Sold............................................ $163,500,020 Redeemed........................................ (61,500,000) ------------ Net increase.................................... $102,000,020 ============
- --------------- * The Nations Municipal Reserves Market Class Shares commenced operations on May 3, 1996. 51 54 NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL RESERVES 5. 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 NBAI or TradeStreet 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 industry, state or region. 6. Capital Loss Carryforward. As of April 30, 1996, the Portfolios had available for Federal income tax purposes unused capital losses as follows:
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING IN 1998 IN 1999 IN 2000 IN 2001 IN 2002 IN 2003 IN 2004 -------- -------- -------- -------- -------- -------- -------- Nations Cash Reserves........... -- $270 $2,594 $850 $ 574 -- -- Nations Treasury Reserves....... -- -- -- -- 9,255 $3,324 -- Nations Government Reserves..... -- -- -- -- -- 408 $1,654 Nations Municipal Reserves...... $72 -- -- -- -- 1,080 --
Under current tax law, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended April 30, 1996, the following Portfolios have elected to defer losses occurring between November 1, 1995 and April 30, 1996 under these rules, as follows:
CAPITAL LOSSES DEFERRED -------- Nations Cash Reserves.......... $ 467 Nations Treasury Reserves...... 21,910
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