-----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, Ba72rcUUTALJFPmz4MLKG5jfsrf+qaDaXzSwZh6VGup/VNhJCrvEe5qIIB7Ev9ie gwOrRGcWdPx16yWGuQOySw== 0000950135-97-002864.txt : 19970701 0000950135-97-002864.hdr.sgml : 19970701 ACCESSION NUMBER: 0000950135-97-002864 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970430 FILED AS OF DATE: 19970630 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: 97632318 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 [NATIONS FUNDS LOGO] [GRAPHIC] Nations Institutional Reserves NATIONS CASH RESERVES NATIONS TREASURY RESERVES NATIONS GOVERNMENT RESERVES NATIONS MUNICIPAL RESERVES FOR THE YEAR ENDED APRIL 30, 1997 2 NOT MAY LOSE VALUE FDIC- NO BANK GUARANTEE INSURED
Nations Institutional Reserves Distributor: Stephens Inc. Stephens Inc., which is not affiliated with NationsBank, N.A., is not a bank, and 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 the Annual Report for Nations Institutional Reserves (each portfolio, a "Fund" and collectively, the "Funds"). On the following pages, you will find important information regarding your investment for the fiscal year ended April 30, 1997. SIGNIFICANT GROWTH FOR THE ECONOMY During the first quarter of 1997, the Federal Open Market Committee ("FOMC") of the Federal Reserve Board increased the targeted Federal Funds ("Fed Funds") rate by 25 basis points, to 5.50% from 5.25%. This rate increase was the result of above-trend growth in the economy. As evidenced by several economic indicators, monetary policy does not appear tight. The Gross Domestic Product was up 3.90% for the fourth quarter of 1996 and was reported at 5.60% during the first quarter of 1997, the strongest one quarter gain in nine years. In addition, data on retail sales in January and February were exceptionally strong, suggesting very robust consumer activity. While wages displayed a gradual acceleration, solid job growth in the past two quarters drove the unemployment rate down to 4.90%, the lowest since 1973. This continued above-trend economic growth is partly the result of consumer confidence being at an all-time high. Currently, the markets are concerned that this may cause a rise in the core inflation rate, and the FOMC may decide to increase the Fed Funds rate further to prevent inflation. LOOKING AHEAD If the current economic climate continues, it is likely that the FOMC will further tighten the targeted Fed Funds rate. To capture relative yield value along the curve within the changing economic climate, the Funds will continue to be managed strategically. As economic and market conditions evolve, the portfolio managers will attempt to position the portfolios appropriately. PERFORMANCE DISCUSSION The following sections provide you with additional information on the four Funds, including the investment sub-adviser's review of the portfolios and each Fund's performance and asset allocation. NATIONS CASH RESERVES Because the money market yield curve remained positively sloped throughout most of the fiscal year and recently steepened this past quarter, the Fund was able to find value along the yield curve. Throughout the year, economic signals were mixed. Although the economy strengthened overall, no significant signs of inflation developed. The FOMC's decision to increase the targeted Fed Funds rate was a precautionary move to prevent inflation from emerging in an environment of above-trend economic growth. The Fund maintained a defensive strategy throughout the year to hedge the shifts in the short-term yield curve. Overnight repurchase agreements, commercial paper and time deposits were purchased to provide daily liquidity. The Fund held floating rate notes based on various short-term indices to hedge interest-rate fluctuations. In addition, the Fund purchased securities with longer maturities to lock in yields when break-even analyses suggested value. Overall, commercial paper represented the best value in terms of yield, liquidity and available supply. We expect that the Fund will continue to implement a defensive strategy and remain cautious in light of the current economic environment and the possibility of future FOMC rate increases. In addition, the Fund will continue to maintain short-term liquidity and purchase additional floating rate notes if pricing is attractive. 4 NATIONS CASH RESERVES -- 30-DAY CURRENT YIELD COMPARISON Annualized Yield
IBC Financial Data First Tier Nations Cash Reserves - Institutional-Only Capital Class Shares Average ----------------------- ------------------ 4/96 5.21 5.03 5/96 5.2 5.03 6/96 5.24 5.03 7/96 5.3 5.08 8/96 5.32 5.08 9/96 5.32 5.1 10/96 5.29 5.09 11/96 5.3 5.1 12/96 5.32 5.12 1/97 5.35 5.12 2/97 5.29 5.1 3/97 5.34 5.123 4/97 5.45 5.22
7-day Current Yield as of 4/30/97: 5.48% 7-day Effective Yield as of 4/30/97: 5.63% Source: IBC Financial Data, Inc. NATIONS CASH RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997* Medium Term Notes, Municipal Bonds, Repurchase Agreements and Other Assets and Liabilities (Net) 10.5% Money Market Funds 3.4% U.S. Government Agency Obligations 2.8% Time Deposits-Euro 17.8% Guaranteed Investment Contracts 6.5% Certificates of Deposit 9.7% Commercial Paper 37.7% Corporate Obligations 11.6% Note: Percentages indicate investments as a percentage of net assets. NATIONS TREASURY RESERVES AND NATIONS GOVERNMENT RESERVES Throughout the last quarter of 1996, the U.S. Government agency yield curve was relatively flat, making it challenging to find value along the curve. As stronger economic data emerged in the first quarter of 1997, the curve began to have a positive slope and, as the yield curve began to steepen, U.S. Government agencies began to issue one-year notes. In addition, issues available in the secondary market have continued to offer incremental value. Investments have been made in repurchase agreements and the one-month area of the market. Going forward, we expect that the Funds will maintain a relatively conservative approach as signs of another FOMC interest rate tightening evolve. With the backup in the market, the Funds have made small purchases of one-year securities, and we expect to purchase longer-term securities as break-even analysis warrants. 2 5 NATIONS TREASURY RESERVES -- 30-DAY CURRENT YIELD COMPARISON
7-Day 7-Day Current Effective Annualized Yield Yield Yield ------------------------------------------------------------------------------- as of as of 4/96 5/96 6/96 7/96 8/96 9/96 10/96 11/96 12/96 1/97 2/97 3/97 4/97 4/30/97 4/30/97 ---- ---- ---- ---- ---- ---- ----- ----- ----- ---- ---- ---- ---- --------- -------- Nations Treasury Reserves - Capital Class Shares ...... 5.14 5.11 5.14 5.15 5.15 5.14 5.14 5.24 5.25 5.17 5.16 5.22 5.33 5.31% 5.45% IBC Financial Data U.S. Treasury & Repo Average .............. 4.59 4.57 4.6 4.63 4.61 4.62 4.62 4.69 4.69 4.66 4.62 4.68 4.75
Source: IBC Financial Data, Inc. NATIONS TREASURY RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997* Repurchase Agreements and Other Assets and Liabilities (Net) ................................. 80.6% U.S. Treasury Notes ............................................ 7.3% U.S. Treasury Bills ........................................... 6.4% Money Market Funds ............................................ 5.7%
Note: Percentages indicate investments as a percentage of net assets. NATIONS GOVERNMENT RESERVES -- 30-DAY CURRENT YIELD COMPARISON
7-Day 7-Day Current Effective Annualized Yield Yield Yield ------------------------------------------------------------------------------- as of as of 4/96 5/96 6/96 7/96 8/96 9/96 10/96 11/96 12/96 1/97 2/97 3/97 4/97 4/30/97 4/30/97 ---- ---- ---- ---- ---- ---- ----- ----- ----- ---- ---- ---- ---- --------- -------- Nations Government Reserves - Capital Class Shares ...... 5.1 5.09 5.15 5.2 5.21 5.23 5.18 5.23 5.21 5.21 5.19 5.27 5.37 5.38% 5.52% IBC Financial Data Government-Only Institutional-Only Average ................... 4.9 4.87 4.92 4.93 4.93 4.94 4.92 4.98 4.97 4.95 4.94 4.99 5.08
Source: IBC Financial Data, Inc. 3 6 NATIONS GOVERNMENT RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997* Repurchase Agreements and Other Assets and Liabilities (Net) .......................... 55.9% Student Loan Marketing Association ...................... 15.5% Federal Home Loan Bank .................................. 10.6% Federal Farm Credit Bank ................................ 7.5% Federal Home Loan Mortgage Corporation .................. 5.0% Federal National Mortgage Association ................... 4.5% Money Market Fund ....................................... 1.0%
Note: Percentages indicate investments as a percentage of net assets. NATIONS MUNICIPAL RESERVES The first quarter of 1997 created more of a challenge for the Fund to find incremental yield opportunities than that of prior years. Historically, municipal money market rates are lowest in January and gradually increase during tax season as April 15 approaches. This year, however, the reverse has been true. The highest rates of the year through April 30, for both floaters and notes, were in January. Starting in February, both money market and bond portfolio managers attempted to shorten their funds' maturities in anticipation of a possible FOMC interest-rate tightening. As a result, the demand for floaters increased and these investments became more difficult to find as well as more expensive. In fact, there have been relatively few municipal securities available that have provided opportunities on a break-even analysis. When municipal note yields exceed 4.00%, we expect to extend the Fund's weighted average maturity. Until then, we expect the Fund to continue to implement a laddered maturity structure. NATIONS MUNICIPAL RESERVES -- 30-DAY CURRENT YIELD COMPARISON
7-Day 7-Day Current Effective Annualized Yield Yield Yield ------------------------------------------------------------------------------- as of as of 4/96 5/96 6/96 7/96 8/96 9/96 10/96 11/96 12/96 1/97 2/97 3/97 4/97 4/30/97 4/30/97 ---- ---- ---- ---- ---- ---- ----- ----- ----- ---- ---- ---- ---- --------- -------- Nations Municipal Reserves - Capital Class Shares ...... 3.44 3.66 3.33 3.05 3.44 3.47 3.38 3.41 3.49 3.3 3.3 3.17 3.67 4.23% 4.32% IBC Financial Data Inst.-Only Tax-Free Average .......... 3.18 3.37 3.08 2.87 3.17 3.21 3.16 3.17 3.24 3.09 3.06 2.96 3.35
Source: IBC Financial Data, Inc. 4 7 NATIONS MUNICIPAL RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997* Demand Notes ........................................ 80.9% Market Notes ........................................ 18.9% Money Market Funds and Other Net Assets and Liabilities (Net) ....................... 0.2%
Note: Percentages indicate investments as a percentage of net assets. 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 the Funds to help pursue your short-term cash management 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.
April 30, 1997 MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. HOWEVER, THERE CAN BE NO ASSURANCE THAT THE FUNDS WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. 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. The 30-day and 7-day current net annualized yields are based on the average net income per share for the thirty days ended April 30, 1997 and the seven days ended April 30, 1997, respectively, and the offering price on that date. The yields are annualized and include the effects of voluntary expense waivers by the Funds' investment adviser and administrator. If these waivers were not in effect, the yields would have been lower. - --------------- * Portfolio holdings are subject to change and may not be representative of current holdings. 5 8 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- DOMESTIC -- 0.7% Bankers Trust Company of New York: $ 10,000,000 5.910%................................................. 03/12/98 $ 9,997,524 10,000,000 6.000%................................................. 03/24/98 9,989,310 - ------------------------------------------------------------------------------------------------------- Total Certificates of Deposit -- Domestic (Cost $19,986,834)....... 19,986,834 - ------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- YANKEE -- 9.0% Bank of Tokyo Mitsubishi, (New York): 25,000,000 5.590%................................................. 05/05/97 25,000,000 20,000,000 5.560%................................................. 07/18/97 20,000,000 20,000,000 5.660%................................................. 08/29/97 20,000,000 20,000,000 5.700%................................................. 09/30/97 20,000,000 Bayerische Landesbank AG, (New York): 50,000,000 5.663%+................................................ 05/01/97++ 50,000,000 25,000,000 5.750%................................................. 12/19/97 25,000,000 Deutsche Bank, (New York): 25,000,000 5.655%................................................. 12/19/97 25,000,000 5,000,000 5.860%................................................. 03/10/98 4,998,359 National Bank of Canada, (New York): 10,000,000 5.850%................................................. 02/27/98 10,000,000 10,000,000 5.940%................................................. 03/06/98 10,000,000 17,000,000 6.030%................................................. 03/18/98 16,998,572 Sanwa Bank Ltd. of New York, 15,000,000 5.660%................................................. 09/11/97 15,000,000 - ------------------------------------------------------------------------------------------------------- Total Certificates of Deposit -- Yankee (Cost $241,996,931)........ 241,996,931 - ------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER -- 37.7% AC Acquisition Holding Company, 20,000,000 Discount note.......................................... 05/08/97 19,978,378 Aetna Services, Inc.: 25,000,000 Discount note.......................................... 05/23/97 24,914,903 25,000,000 Discount note.......................................... 05/28/97 24,895,938 Barnett Banks, Inc., 30,000,000 Discount note.......................................... 05/21/97 29,907,833 Chrysler Financial Corporation, 15,000,000 Discount note.......................................... 05/08/97 14,983,754 Columbia/HCA Healthcare Corporation: 8,000,000 Discount note.......................................... 05/08/97 7,991,289 11,800,000 Discount note.......................................... 05/09/97 11,785,315 20,000,000 Discount note.......................................... 05/22/97 19,935,016 15,000,000 Discount note.......................................... 05/27/97 14,939,550 Copley Financing Corporation, 26,735,000 Discount note.......................................... 05/23/97 26,644,487
See Notes to Financial Statements. 6 9 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER (continued) Corporate Receivables Corporation, $ 43,500,000 Discount note.......................................... 05/01/97 $ 43,500,000 Countrywide Funding Corporation: 30,000,000 Discount note.......................................... 05/01/97 30,000,000 12,350,000 Discount note.......................................... 05/20/97 12,313,825 35,000,000 Discount note.......................................... 05/23/97 34,881,292 Dynamic Funding Corporation: 35,000,000 Discount note.......................................... 05/02/97 34,994,507 13,121,000 Discount note.......................................... 05/09/97 13,104,584 14,667,000 Discount note.......................................... 05/12/97 14,641,007 23,000,000 Discount note.......................................... 05/19/97 22,935,025 24,633,000 Discount note.......................................... 05/23/97 24,548,700 Finova Capital Corporation, 24,550,000 Discount note.......................................... 05/21/97 24,474,304 General Motors Acceptance Corporation: 13,150,000 Discount note.......................................... 05/15/97 13,121,567 20,000,000 Discount note.......................................... 06/23/97 19,840,117 25,000,000 Discount note.......................................... 07/09/97 24,739,334 20,000,000 Discount note.......................................... 08/25/97 19,655,867 15,000,000 Discount note.......................................... 10/07/97 14,614,425 20,000,000 Discount note.......................................... 10/28/97 19,415,000 International Securitization Corporation, 17,000,000 Discount note.......................................... 05/15/97 16,964,168 Lehman Brothers Holdings Inc.: 25,000,000 Discount note.......................................... 06/06/97 24,863,750 10,000,000 Discount note.......................................... 11/21/97 9,668,500 Mitsubishi Motors Credit of America, Inc. (Bank of Tokyo Mitsubishi, Ltd. LOC), 25,000,000 Discount note.......................................... 05/13/97 24,953,583 National Bank of Canada, (New York): 15,000,000 Discount note.......................................... 06/02/97 14,922,800 20,000,000 Discount note.......................................... 06/06/97 19,891,900 National Fleet Funding Corporation: 20,000,000 Discount note.......................................... 05/07/97 19,981,433 18,000,000 Discount note.......................................... 05/20/97 17,947,275 NYNEX Corporation: 15,000,000 Discount note.......................................... 05/13/97 14,972,250 25,000,000 Discount note.......................................... 05/22/97 24,919,354 ODC Capital Corporation: 26,217,000 Discount note.......................................... 05/19/97 26,144,117 20,000,000 Discount note.......................................... 05/20/97 19,941,311 Philip Morris Companies Inc., 20,000,000 Discount note.......................................... 05/01/97 20,000,000
See Notes to Financial Statements. 7 10 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER (continued) Renault Credit International: $ 20,000,000 Discount note.......................................... 05/09/97 $ 19,975,200 20,000,000 Discount note.......................................... 05/12/97 19,965,961 SRD Finance Inc., (Bank of Tokyo Mitsubishi, Ltd. LOC), 7,000,000 Discount note.......................................... 05/29/97 6,969,620 Sumitomo Corporation of America: 25,000,000 Discount note.......................................... 05/12/97 24,958,979 5,000,000 Discount note.......................................... 07/09/97 4,947,771 5,000,000 Discount note.......................................... 08/11/97 4,923,783 15,000,000 Discount note.......................................... 08/13/97 14,766,867 Toshiba America Inc., 10,000,000 Discount note............................................ 06/30/97 9,910,333 Tri-Lateral Capital (USA) Inc.: 10,047,000 Discount note.......................................... 05/15/97 10,024,925 16,000,000 Discount note.......................................... 05/16/97 15,964,000 18,250,000 Discount note.......................................... 05/19/97 18,200,725 12,685,000 Discount note.......................................... 07/14/97 12,535,070 10,197,000 Discount note.......................................... 07/17/97 10,071,155 Tribune Company, 22,000,000 Discount note............................................ 07/28/97 21,693,467 - ------------------------------------------------------------------------------------------------------- Total Commercial Paper (Cost $1,012,834,314)..................... 1,012,834,314 - ------------------------------------------------------------------------------------------------------- CORPORATE OBLIGATIONS -- 11.6% Bankers Trust Company of New York: 20,000,000 5.680%+................................................ 05/01/97++ 20,000,000 75,000,000 5.690%+(a)............................................. 05/01/97++ 74,987,438 Bear Stearns & Company, Inc., 25,000,000 5.738%+................................................ 05/05/97++ 25,000,000 Beta Finance Inc., 25,000,000 5.890%+................................................ 05/06/97++ 25,000,000 General Motors Acceptance Corporation, 25,000,000 5.700%+................................................ 05/01/97++ 24,998,294 International Business Machines Credit Corporation, 70,000,000 5.730%+................................................ 05/01/97++ 70,000,000 Lehman Brothers Holdings Inc., 50,000,000 5.788%+................................................ 05/08/97++ 50,000,000 Merrill Lynch & Company, Inc., 20,000,000 5.680%+................................................ 05/01/97++ 20,000,000 - ------------------------------------------------------------------------------------------------------- Total Corporate Obligations (Cost $309,985,732).................... 309,985,732 - -------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 8 11 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Maturity Value Amount NATIONS CASH RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------- GUARANTEED INVESTMENT CONTRACTS -- 6.5% Jackson National Life Insurance Company: $ 50,000,000 5.650%**+#............................................. 06/14/97++ $ 50,000,000 50,000,000 5.870%**+.............................................. 07/01/97++ 50,000,000 New York Life Insurance Company, 50,000,000 5.864%**+.............................................. 07/01/97++ 50,000,000 Peoples Security Life Insurance Company, 25,000,000 5.740%**+#............................................. 05/01/97++ 25,000,000 - ------------------------------------------------------------------------------------------------------- Total Guaranteed Investment Contracts (Cost $175,000,000).......... 175,000,000 - ------------------------------------------------------------------------------------------------------- MEDIUM TERM NOTES -- 0.6% Beta Finance Corporation Inc., 10,000,000 5.800%................................................. 03/03/98 10,000,000 Goldman, Sachs & Company, 7,000,000 6.100%(a).............................................. 04/15/98 6,997,278 - ------------------------------------------------------------------------------------------------------- Total Medium Term Notes (Cost $16,997,278)......................... 16,997,278 - ------------------------------------------------------------------------------------------------------- MUNICIPAL BOND -- 1.5% (Cost $40,000,000) Virginia (State of), Housing Development Authority, 40,000,000 5.450%+................................................ 05/07/97++ 40,000,000 - ------------------------------------------------------------------------------------------------------- TIME DEPOSIT-EURO -- 17.8% First National Bank of Chicago, 125,000,000 5.688%................................................. 05/01/97 125,000,000 First Union National Bank: 100,000,000 5.656%................................................. 05/01/97 100,000,000 125,000,000 5.688%................................................. 05/01/97 125,000,000 Societe Generale, 125,000,000 5.750%................................................. 05/01/97 125,000,000 - ------------------------------------------------------------------------------------------------------- Total Time Deposit-Euro (Cost $475,000,000)........................ 475,000,000 - ------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.8% Federal Home Loan Bank (FHLB), Note, 25,000,000 5.680%+................................................ 05/01/97++ 25,000,000 Student Loan Marketing Association (SLMA), Note: 25,000,000 5.800%+................................................ 05/01/97++ 25,000,000 25,000,000 5.660%+................................................ 05/06/97++ 24,999,689 - ------------------------------------------------------------------------------------------------------- Total U.S. Government Agency Obligations (Cost $74,999,689)........ 74,999,689 - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- 8.2% Agreement with CS First Boston Corporation, 125,000,000 5.600% dated 04/30/97 to be repurchased at $125,019,444 on 05/01/97, collateralized by $130,605,000 U.S. Government securities due 05/01/97-10/20/97 (value $129,401,214)............ 125,000,000
See Notes to Financial Statements. 9 12 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS CASH RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (continued) Agreement with Lehman Brothers Holdings Inc., $ 95,000,000 5.770% dated 04/30/97 to be repurchased at $95,015,226 on 05/01/97, collateralized by $96,901,000 Qualified First Tier Money Market Instruments, 5.370% -- 5.490% due 05/12/97 -- 08/01/97 (value $96,901,000)..................................................... $ 95,000,000 - ------------------------------------------------------------------------------------------------------- Total Repurchase Agreements (Cost $220,000,000).................... 220,000,000 - ------------------------------------------------------------------------------------------------------- Shares - ------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS -- 3.4% 45,764,548 Aim Liquid Asset Portfolio......................................... 45,764,548 25,532,000 Aim Prime Fund..................................................... 25,532,000 20,394,000 Dreyfus Cash Management Plus Fund.................................. 20,394,000 5,500 Fidelity Institutional Cash Variable Rate Fund..................... 5,500 - ------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $91,696,048).................... 91,696,048 - ------------------------------------------------------------------------------------------------------- Total Investments (Cost $2,678,496,826*)............. 99.8% 2,678,496,826 - ------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (NET)....................... 0.2% Other assets....................................................... 11,503,289 Dividends payable.................................................. (4,353,727) Investment advisory fee payable (Note 2)........................... (334,743) Shareholder servicing and distribution fees payable (Note 3)....... (190,443) Accrued Trustees' fees and expenses (Note 2)....................... (88,610) Administration fee payable (Note 2)................................ (26,619) Custodian fees payable (Note 2).................................... (25,969) Accrued registration and filing fees............................... (305,489) Accrued expenses and other payables................................ (40,297) - ------------------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS AND LIABILITIES (NET)........................... 6,137,392 - ------------------------------------------------------------------------------------------------------- NET ASSETS............................................... 100.0% $2,684,634,218 =======================================================================================================
See Notes to Financial Statements. 10 13 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
NATIONS CASH RESERVES - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($1,684,232,624 / 1,684,234,691 shares outstanding)................ $ 1.00 ======================================================================================================= Liquidity Class Shares: ($419,851,406 / 419,851,922 shares outstanding).................... $ 1.00 ======================================================================================================= Adviser Class Shares: ($247,550,587 / 247,550,891 shares outstanding).................... $ 1.00 ======================================================================================================= Market Class Shares: ($332,999,601 / 333,000,010 shares outstanding).................... $ 1.00 ======================================================================================================= * Aggregate cost for Federal tax purposes. ** Restricted security (Note 5). + 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 Portfolio to put the security back to the issuer in 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 APRIL 30, 1997 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold.................. $ (3,296) Paid-in capital.................................................... 2,684,637,514 - ------------------------------------------------------------------------------------------------------- NET ASSETS......................................................... $2,684,634,218 =======================================================================================================
See Notes to Financial Statements. 11 14 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Maturity Value Amount NATIONS TREASURY RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS -- 13.7% U.S. TREASURY BILLS -- 6.4% $ 5,000,000 Discount note#............................................... 05/01/97 $ 5,000,000 10,000,000 Discount note#............................................... 08/21/97 9,828,267 5,000,000 Discount note#............................................... 10/16/97 4,875,108 10,000,000 Discount note#............................................... 11/13/97 9,714,166 15,000,000 Discount note#............................................... 01/08/98 14,443,500 10,000,000 Discount note#............................................... 02/05/98 9,586,222 - ------------------------------------------------------------------------------------------------------- 53,447,263 - ------------------------------------------------------------------------------------------------------- U.S. TREASURY NOTES -- 7.3% 5,000,000 6.125%#...................................................... 05/31/97 5,001,540 20,000,000 5.875%#...................................................... 07/31/97 20,028,490 5,000,000 5.750%#...................................................... 09/30/97 5,001,040 15,000,000 5.625%....................................................... 10/31/97 15,002,850 15,000,000 6.125%#...................................................... 03/31/98 15,017,890 - ------------------------------------------------------------------------------------------------------- 60,051,810 - ------------------------------------------------------------------------------------------------------- Total U.S. Treasury Obligations (Cost $113,499,073)................... 113,499,073 - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- 92.8% 206,000,000 Agreement with Bankers Trust Company, 5.400% dated 04/30/97 to be repurchased at $206,030,900 on 05/01/97, collateralized by $7,253,000 U.S. Treasury Bills, due 05/08/97 - 10/16/97; $29,161,000 U.S. Treasury Bonds, 7.625% - 12.500% due 08/15/14 - 08/15/29; $170,859,000 U.S. Treasury Notes, 5.500% - 7.500% due 09/30/97 - 03/31/08 (value $210,204,236)........ 206,000,000 Agreement with CS First Boston Corporation, 98,966,000 Interest is payable monthly. The agreement is terminable by the fund daily. The final maturity of the agreement is 07/01/97, collateralized by $430,286,000 U.S. Treasury Strips, Principal only, due 05/15/17 (value $103,487,656)##................................. 98,966,000 18,000,000 Agreement with Dean Witter Discover and Company, 4.950% dated 04/30/97 to be repurchased at $18,002,475 on 05/01/97, collateralized by $16,557,000 U.S. Treasury Bonds, 6.750% due 08/15/26; $2,069,000 U.S. Treasury Note, 7.750% due 02/15/01 (value $18,360,098)........................................................ 18,000,000 40,000,000 Agreement with Dresdner Bank Inc., 5.500% dated 04/30/97 to be repurchased at $40,006,111 on 05/01/97, collateralized by $47,303,310 GNMA with various maturities and coupon rates (value $40,801,428).................................... 40,000,000 41,000,000 Agreement with First Union Corporation, 5.430% dated 04/30/97 to be repurchased at $41,006,184 on 05/01/97, collateralized by $6,210,000 U.S. Treasury Bonds, 6.875% - 11.250% due 02/15/15 - 08/15/25; $8,732,000 U.S. Treasury Note, 6.250% - 7.750% due 06/30/98 - 01/31/00; $215,000 U.S. Treasury Strips, Interest Only 08/15/97 - 11/15/14; $23,887,000 cash (value $41,094,224)........................................................ 41,000,000
See Notes to Financial Statements. 12 15 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS TREASURY RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (continued) $41,000,000 Agreement with Goldman Sachs & Company, 5.550% dated 04/30/97 to be repurchased at $41,006,321 on 05/01/97, collateralized by $41,941,174 GNMA, 6.000% due 02/20/27 (value $41,826,448)................................................. $ 41,000,000 41,000,000 Agreement with HSBC Securities, 5.550% dated 04/30/97 to be repurchased at $41,006,321 on 05/01/97, collateralized by $42,595,000 GNMA, 6.500% due 09/20/26 (value $41,823,382)................................................. 41,000,000 40,000,000 Agreement with J.P. Morgan & Company, 5.420% dated 04/30/97 to be repurchased at $40,006,022 on 05/01/97, collateralized by $39,621,000 U.S. Treasury Note, 6.375% due 05/15/99 (value $40,800,653)........................................ 40,000,000 40,000,000 Agreement with J.P. Morgan & Company, 5.440% dated 04/30/97 to be repurchased at $40,006,044 on 05/01/97, collateralized by $39,621,000 U.S. Treasury Note, 6.375% due 05/15/99 (value $40,800,653)........................................ 40,000,000 30,000,000 Agreement with Lehman Brothers Holdings Inc., 5.380% dated 04/30/97 to be repurchased at $30,004,483 on 05/01/97, collateralized by $14,878,000 U.S. Treasury Bond, 6.500% - 6.750% due 08/15/26 - 11/15/26; $15,753,000 U.S. Treasury Note, 5.875% - 7.500% due 11/15/01 - 11/30/01 (value $30,589,974).................. 30,000,000 10,000,000 Agreement with Lehman Brothers Holdings Inc., 5.430% dated 04/30/97 to be repurchased at $10,001,508 on 05/01/97, collateralized by $10,250,000 U.S. Treasury Note, 5.875% due 11/30/01 (value $10,195,760)........................................ 10,000,000 41,000,000 Agreement with Merrill Lynch & Company, Inc., 5.600% dated 04/30/97 to be repurchased at $41,006,378 on 05/01/97, collateralized by $47,915,000 GNMA, 8.000% due 12/15/23 (value $41,822,891)................................................. 41,000,000 41,000,000 Agreement with Morgan Stanley Group Inc., 5.530% dated 04/30/97 to be repurchased at $41,006,298 on 05/01/97, collateralized by $42,250,000 GNMA, 8.000% due 01/01/00 (value $42,029,273)................................................. 41,000,000 41,000,000 Agreement with Smith Barney, Inc., 5.570% dated 04/30/97 to be repurchased at $41,006,344 on 05/01/97, collateralized by $42,133,060 GNMA, 7.500% due 02/15/27 (value $41,820,000)................................................. 41,000,000
See Notes to Financial Statements. 13 16 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS TREASURY RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (continued) $40,000,000 Agreement with UBS Securities, Inc., 5.550% dated 04/30/97 to be repurchased at $40,006,167 on 05/01/97, collateralized by $70,745,962 GNMA, 7.000% - 12.500% due 9/20/99 - 04/20/27 (value $40,802,531)........................................ $ 40,000,000 - ------------------------------------------------------------------------------------------------------- Total Repurchase Agreements -- Fixed Rate (Cost $768,966,000)......... 768,966,000 - ------------------------------------------------------------------------------------------------------- Shares - ------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS -- 5.7% 16,937,000 AIM Treasury Fund..................................................... 16,937,000 14,816,000 Dreyfus Treasury Cash Management Fund................................. 14,816,000 15,148,000 Fidelity Institutional Cash Fund...................................... 15,148,000 - ------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $46,901,000)........................... 46,901,000 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $929,366,073*)....................... 112.2% 929,366,073 - ------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (NET)........................... (12.2)% Other assets.......................................................... 775,052 Due to custodian...................................................... (152,042) Payable for reverse repurchase agreement (Note 1)..................... (98,966,000) Dividends payable..................................................... (2,532,705) Shareholder servicing and distribution fees payable (Note 3).......... (80,502) Investment advisory fee payable (Note 2).............................. (79,674) Accrued Trustees' fees and expenses................................... (44,929) Custodian fees payable (Note 2)....................................... (25,025) Administration fee payable (Note 2)................................... (8,897) Accrued expenses and other payables................................... (49,523) - ------------------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. (101,164,245) - ------------------------------------------------------------------------------------------------------- NET ASSETS................................................... 100.0% $ 828,201,828 =======================================================================================================
See Notes to Financial Statements. 14 17 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
NATIONS TREASURY RESERVES - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($468,975,360 [DIVIDED BY] 468,991,605 shares outstanding)............ $ 1.00 ======================================================================================================= Liquidity Class Shares: ($81,575,151 [DIVIDED BY] 81,577,976 shares outstanding).............. $ 1.00 ======================================================================================================= Adviser Class Shares: ($154,255,582 [DIVIDED BY] 154,260,925 shares outstanding)............ $ 1.00 ======================================================================================================= Market Class Shares: ($123,395,735 [DIVIDED BY] 123,400,010 shares outstanding)............ $ 1.00 =======================================================================================================
* Aggregate cost for Federal tax purposes. # Denotes securities subject to repurchase under reverse repurchase agreements as of April 30, 1997 (Note 1). ## Security segregated as collateral for reverse repurchase agreement. - -------------------------------------------------------------------------------- AT APRIL 30, 1997 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold..................... $ (27,840) Paid-in capital....................................................... 828,229,668 - ------------------------------------------------------------------------------------------------------- NET ASSETS............................................................ $ 828,201,828 =======================================================================================================
See Notes to Financial Statements. 15 18 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Maturity Value Amount NATIONS GOVERNMENT RESERVES Date (Note 1) - ------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT AGENCY OBLIGATIONS -- 43.1% FEDERAL FARM CREDIT BANK (FFCB) NOTES -- 7.5% $10,000,000 5.520%+................................................... 05/01/97++ $ 9,999,413 5,000,000 5.600%.................................................... 06/03/97 4,999,367 5,000,000 5.840%.................................................... 06/18/97 4,998,994 8,000,000 5.900%.................................................... 04/01/98 7,983,847 - ------------------------------------------------------------------------------------------------------ 27,981,621 - ------------------------------------------------------------------------------------------------------ FEDERAL HOME LOAN BANK (FHLB) -- 10.6% 3,000,000 Discount note............................................. 05/01/97 3,000,000 5,000,000 Discount note............................................. 05/22/97 4,984,396 5,000,000 Discount note............................................. 07/14/97 4,945,836 Notes: 10,000,000 5.680%+................................................... 05/01/97++ 10,000,000 4,000,000 5.850%.................................................... 11/06/97 4,000,000 5,000,000 5.625%.................................................... 12/26/97 5,000,000 4,000,000 5.675%.................................................... 02/12/98 3,994,347 4,000,000 5.875%.................................................... 02/12/98 4,000,000 - ------------------------------------------------------------------------------------------------------ 39,924,579 - ------------------------------------------------------------------------------------------------------ FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -- 5.0% 10,000,000 Discount note............................................. 05/15/97 9,979,389 4,000,000 Discount note............................................. 05/29/97 3,983,604 5,000,000 Discount note............................................. 06/04/97 4,975,019 - ------------------------------------------------------------------------------------------------------ 18,938,012 - ------------------------------------------------------------------------------------------------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) -- 4.5% 5,000,000 Discount note............................................. 05/13/97 4,991,083 7,000,000 Discount note............................................. 09/08/97 6,864,366 Note, 5,000,000 5.550%+................................................... 05/01/97++ 4,999,517 - ------------------------------------------------------------------------------------------------------ 16,854,966 - ------------------------------------------------------------------------------------------------------ STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 15.5% 10,000,000 5.800%+................................................... 05/01/97++ 10,000,000 20,000,000 5.530%+................................................... 05/06/97++ 19,986,337 8,000,000 5.550%+................................................... 05/06/97++ 8,000,000 5,000,000 5.660%+................................................... 05/06/97++ 4,999,923 10,000,000 5.680%+................................................... 05/06/97++ 9,999,135 Note, 5,000,000 5.870%.................................................... 06/30/97 5,001,165 - ------------------------------------------------------------------------------------------------------ 57,986,560 - ------------------------------------------------------------------------------------------------------ Total U.S. Government Agency Obligations (Cost $161,685,738).......... 161,685,738 - ------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENTS -- 55.7% 93,000,000 Agreement with CS First Boston Corporation, 5.600% dated 04/30/97 to be repurchased at $93,014,467 on 05/01/97, collateralized by $95,260,000 U.S. Government securities due 05/06/97 - 05/16/97 (value $95,086,538)............................................ 93,000,000
See Notes to Financial Statements. 16 19 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS GOVERNMENT RESERVES (Note 1) - ------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENTS (continued) $12,000,000 Agreement with Goldman, Sachs & Company, 5.550% dated 04/30/97 to be repurchased at $12,001,850 on 05/01/97, collateralized by $12,275,466 GNMA, 6.000% due 02/20/27 (value $12,241,888)........................ $ 12,000,000 12,000,000 Agreement with Morgan Stanley Group Inc., 5.530% dated 04/30/97 to be repurchased at $12,001,843 on 05/01/97, collateralized by $17,575,000 GNMA, 6.000% due 12/20/23 (value $12,405,645)........................ 12,000,000 92,000,000 Agreement with Smith Barney, Inc., 5.570% dated 04/30/97 to be repurchased at $92,014,234 on 05/01/97, collateralized by $125,422,832 GNMA, 7.000% - 9.000% due 01/01/00 - 04/15/27 (value $93,840,000)..................................... 92,000,000 - ------------------------------------------------------------------------------------------------------ Total Repurchase Agreements (Cost $209,000,000)....................... 209,000,000 - ------------------------------------------------------------------------------------------------------ Shares - ------------------------------------------------------------------------------------------------------ MONEY MARKET FUND -- 1.0% (Cost $3,902,000) 3,902,000 Fidelity Institutional Cash Fund...................................... 3,902,000 - ------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (Cost $374,587,738*).................... 99.8% 374,587,738 - ------------------------------------------------------------------------------------------------------ OTHER ASSETS AND LIABILITIES (NET)........................ 0.2% Other assets.......................................................... 1,988,930 Due to custodian...................................................... (14,402) Dividends payable..................................................... (1,132,643) Shareholder servicing and distribution fees payable (Note 3).......... (71,067) Investment advisory fee payable (Note 2).............................. (41,078) Accrued Trustees' fees and expenses (Note 2).......................... (14,156) Custodian fees payable (Note 2)....................................... (6,361) Administration fee payable (Note 2)................................... (3,901) Accrued expenses and other payables................................... (90,448) - ------------------------------------------------------------------------------------------------------ TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. 614,874 - ------------------------------------------------------------------------------------------------------ NET ASSETS................................................ 100.0% $375,202,612 - ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 17 20 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
NATIONS GOVERNMENT RESERVES - ------------------------------------------------------------------------------------------------------ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($125,376,757 [DIVIDED BY] 125,377,425 shares outstanding)............ $ 1.00 ====================================================================================================== Liquidity Class Shares: ($6,481,642 [DIVIDED BY] 6,481,676 shares outstanding)................ $ 1.00 ====================================================================================================== Adviser Class Shares: ($24,845,366 [DIVIDED BY] 24,845,499 shares outstanding).............. $ 1.00 ====================================================================================================== Market Class Shares: ($218,498,847 [DIVIDED BY] 218,500,010 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. - ------------------------------------------------------------------------------------------------------ AT APRIL 30, 1997 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold..................... $ (1,209) Paid-in capital....................................................... 375,203,821 - ------------------------------------------------------------------------------------------------------ NET ASSETS............................................................ $375,202,612 ======================================================================================================
See Notes to Financial Statements. 18 21 STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.8% ALABAMA -- 5.1% Arab, Alabama, Industrial Development Board, Industrial Development Revenue, (Syncro Corporation Project), AMT, (SouthTrust Bank of Alabama LOC), $1,325,000 4.750% due 06/01/02++................................................. $ 1,325,000 Foley, Alabama, Industrial Development Board, Industrial Development Revenue, (Vulcan Inc. Project), (AmSouth Bank N.A., Birmingham LOC), 2,050,000 4.700% due 12/01/00++................................................. 2,050,000 Fort Payne, Alabama, Industrial Development Board, Industrial Development Revenue, (Brookwood Expansion Project), (AmSouth Bank N.A., Birmingham LOC), 700,000 4.700% due 12/01/97++................................................. 700,000 Homewood, Alabama, Educational Building Authority Revenue, Educational Facilities, (Samford University), (Bank of Nova Scotia LOC), 6,100,000 3.800% due 12/01/21+.................................................. 6,100,000 - ---------------------------------------------------------------------------------------------------------- 10,175,000 - ---------------------------------------------------------------------------------------------------------- ALASKA -- 0.9% Valdez, Alaska, Marine Terminal Revenue, (Arco Transportation Project), Series B, GO, 1,900,000 4.600% due 05/01/31++................................................. 1,900,000 - ---------------------------------------------------------------------------------------------------------- ARIZONA -- 1.5% Glendale, Arizona, United High School District, No. 205, TAN, Series A, 2,000,000 4.400% due 07/31/97................................................... 2,001,922 Pinal (County of), Arizona, Industrial Development Authority, PCR, (Magma Copper Company Project), (Banque Nationale de Paris LOC), 1,000,000 4.500% due 12/01/11++................................................. 1,000,000 - ---------------------------------------------------------------------------------------------------------- 3,001,922 - ---------------------------------------------------------------------------------------------------------- ARKANSAS -- 1.2% Little Rock, Arkansas, Metrocenter, Improvement District No. 1 Revenue, (Little Rock Newspapers Inc. Project), (Bank of New York LOC), 2,300,000 4.150% due 12/01/25+.................................................. 2,300,000 - ---------------------------------------------------------------------------------------------------------- CALIFORNIA -- 3.7% California (State of), University of California Revenue, (UCLA Medical Center) (MBIA Insured), 1,945,000 8.000% due 12/01/97................................................... 1,992,658 Los Angeles, California, Regional Airports Improvement Corporation Facilities Sublease Revenue, (Los Angeles International Airport), (Societe Generale de France LOC), 1,300,000 3.950% due 12/01/25+.................................................. 1,300,000 San Bernardino (County of), California, TRAN, GO, (Toronto Dominion Bank, Landesbank Hessen LOC), 3,000,000 4.500% due 06/30/97................................................... 3,002,967 San Diego, California, Industrial Development Revenue, (Kaiser Aerospace and Electrical Project), Series A, AMT, (ABN-AMRO Bank LOC), 1,200,000 4.650% due 10/01/07++................................................. 1,200,000 - ---------------------------------------------------------------------------------------------------------- 7,495,625 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 19 22 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) COLORADO -- 4.9% Colorado (State of), Health Facilities Authority Revenue, (Goodwill Industries), (Bank One of Denver LOC), $1,665,000 4.700% due 12/01/04++................................................. $ 1,665,000 Colorado (State of), Post Secondary Educational Authority, Economic Development Revenue, (U.S. Swimming), (Banc One of Denver LOC), 1,400,000 4.700% due 06/01/11++................................................. 1,400,000 Colorado (State of), Student Obligation Authority, Student Loan Revenue, (Student Loan Marketing Association LOC): AMT, Series B, 2,000,000 4.500% due 07/01/20++................................................. 2,000,000 Series C, 3,600,000 4.400% due 08/01/00++................................................. 3,600,000 Larimer (County of), Colorado, Industrial Development Revenue, (Ultimate Support System Project), Series A, (Bank One of Denver LOC), 1,150,000 4.700% due 06/01/10++................................................. 1,150,000 - ---------------------------------------------------------------------------------------------------------- 9,815,000 - ---------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA -- 1.8% District of Columbia, GO, (Georgetown University), Series D, (Bayerische Landesbank LOC), 2,100,000 4.000% due 04/01/17++................................................. 2,100,000 District of Columbia, Hospital Revenue, (Columbia Women's Hospital), Series A, (Bank of Tokyo; Mitsubishi Bank Ltd. LOC), 1,400,000 4.750% due 07/01/20++................................................. 1,400,000 - ---------------------------------------------------------------------------------------------------------- 3,500,000 - ---------------------------------------------------------------------------------------------------------- FLORIDA -- 2.7% Brevard (County of), Florida, Multi-family Housing Authority Revenue, (Malabar Lakes & Park Village), Series A, (First Bank, Minneapolis LOC), 2,575,000 4.650% 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 4.800% due 10/01/11++................................................. 2,000,000 Orange (County of), Florida, Health Facilities Authority Revenue, (Mayflower Retirement Community Project), (Rabobank Nederland LOC), 900,000 4.600% due 03/01/18++................................................. 900,000 - ---------------------------------------------------------------------------------------------------------- 5,475,000 - ---------------------------------------------------------------------------------------------------------- GEORGIA -- 7.4% Brunswick & Glynn (Counties of), Georgia, Development Authority, Industrial Development Revenue, (Insteel Industries Project), (First Union National Bank LOC), 1,313,000 4.850% due 06/01/99++................................................. 1,313,000 Clayton (County of), Georgia, Housing Authority, Multi-family Housing Revenue: (Rolling Hills Apartments Project), (AmSouth Bank N.A., Birmingham LOC), 1,820,000 4.700% due 06/15/17++................................................. 1,820,000 (Ten Oaks Apartments Project), Series F, (FSA Insured), (Barclays Bank Plc LOC), 3,370,000 4.000% due 01/01/21++................................................. 3,370,000
See Notes to Financial Statements. 20 23 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) GEORGIA (continued) College Park, Georgia, Business and Industrial Development Authority, Industrial Development Revenue, (Wynfield One Ltd Project), (Bank of Tokyo; Mitsubishi Bank Ltd. LOC), $1,750,000 3.850% due 12/01/16++................................................. $ 1,750,000 Crisp County-Cordelle, Georgia, Industrial Development Authority Revenue, (Florida Seed Company Inc. Project), AMT, (SouthTrust Bank of Alabama LOC), 1,150,000 4.850% due 12/01/10++................................................. 1,150,000 De Kalb (County of), Georgia, Housing Authority, Multi-family Housing Revenue: (Cedar Creek Apartments Project), AMT, (General Electric Capital Corporation Guaranty), 1,400,000 4.750% due 12/01/20++................................................. 1,400,000 (Terrace Club Project), Series A , (AmSouth Bank N.A., Birmingham LOC), 1,000,000 4.700% due 11/01/15++................................................. 1,000,000 Savannah, Georgia, Economic Development Authority, Industrial Development Revenue, (Fuji Vegetable Oil Project), (Bank of Tokyo; Mitsubishi Bank Ltd. LOC), 1,000,000 4.750% due 10/01/99++................................................. 1,000,000 Smyrna, Georgia, Multi-family Housing Authority Revenue, (Hills of Post Village Project), (FNMA Collateral Agreement), 2,000,000 4.550% due 06/01/25++................................................. 2,000,000 - ---------------------------------------------------------------------------------------------------------- 14,803,000 - ---------------------------------------------------------------------------------------------------------- ILLINOIS -- 10.0% 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), 2,500,000 3.850% due 12/01/17+.................................................. 2,500,000 Illinois (State of), Development Financial Authority Revenue, (Chicago Symphony Orchestra): (Bank of America Illinois LOC), 1,400,000 4.500% due 06/01/31++................................................. 1,400,000 (Northern Trust Company LOC), 2,000,000 4.500% due 12/01/28++................................................. 2,000,000 Illinois (State of), Development Financial Authority, Industrial Development Revenue: (Quality Screw & Nut Company Project), AMT, (National Bank of Detroit LOC), 1,700,000 4.600% due 05/01/15++................................................. 1,700,000 (Randolph Pickle Corporation Project), AMT, (National Bank of Detroit LOC), 800,000 4.700% due 06/01/12++................................................. 800,000 (Unique Building Corporation Project), AMT, (National Bank of Detroit LOC), 1,400,000 4.700% due 05/01/09++................................................. 1,400,000
See Notes to Financial Statements. 21 24 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) ILLINOIS (continued) Illinois (State of), Education Facilities Authority Revenue: (Arts Club of Chicago), (Northern Trust LOC), $3,900,000 4.500% due 01/01/26++................................................. $ 3,900,000 (Northwestern University), (NBD Bank N.A. SBPA), 1,400,000 4.550% due 12/01/25++................................................. 1,400,000 Illinois (State of), Health Facilities Authority Revenue, (Victory Health Project): 2,000,000 3.500% due 05/22/97++................................................. 2,000,000 Health, Hospital & Nursing Home Improvements, (Streeterville Corporation Project), Series B, (NBD Bank N.A. LOC), 1,000,000 4.500% due 08/15/23++................................................. 1,000,000 Lombard Village, Illinois, Industrial Project Revenue, B&H Partnership, (Comerica Bank LOC), 1,500,000 4.875% due 10/01/13++................................................. 1,500,000 - ---------------------------------------------------------------------------------------------------------- 20,000,000 - ---------------------------------------------------------------------------------------------------------- INDIANA -- 2.5% Auburn, Indiana, Economic Development Revenue, (RJ Tower Corporation Project), AMT, (Comerica Bank LOC), 1,680,000 4.250% due 09/01/00++................................................. 1,680,000 Indiana (State of), Health Facilities, Financing Authority Revenue, (Cardinal Center), Series A, (Key Bank, N.A. LOC), 2,480,000 4.650% due 12/01/16++................................................. 2,480,000 Kendallville, Indiana, Revenue, (McCray Memorial Hospital Project), (NBD Bank N.A. LOC), 885,000 4.650% due 01/01/04++................................................. 885,000 - ---------------------------------------------------------------------------------------------------------- 5,045,000 - ---------------------------------------------------------------------------------------------------------- IOWA -- 1.5% Iowa (State of), School Corporations, Warrant Certificates, Series A, (FSA Insured), 3,000,000 4.750% due 06/27/97................................................... 3,003,603 - ---------------------------------------------------------------------------------------------------------- KENTUCKY -- 3.9% Davies (County of), Kentucky, Solid Waste Disposal Facilities Revenue, (Scott Paper Company Project), AMT, (Kimberly Clark Guaranteed): Series A, 2,100,000 3.900% due 12/01/23+.................................................. 2,100,000 Series B, 1,700,000 3.900% due 12/01/23+.................................................. 1,700,000 Jefferson (County of), Kentucky, Industrial Building Revenue, (Seven Counties Services Inc. Project), (Banc One LOC), 1,595,000 4.700% due 06/01/11++................................................. 1,595,000 Jefferson (County of), Kentucky, Industrial Development Revenue, (Belknap Inc. Project), (Chemical Bank LOC), 1,228,000 3.750% due 12/01/14++................................................. 1,228,000 Jeffersontown, Kentucky, Industrial Building Revenue, (Raque Food System Inc. Project), AMT, (PNC Bank LOC), 1,200,000 4.750% due 04/01/20++................................................. 1,200,000 - ---------------------------------------------------------------------------------------------------------- 7,823,000 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 22 25 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) LOUISIANA -- 2.3% Lake Charles, Louisiana, (Citgo Petroleum Corporation), (Westdeutsche Landesbank LOC), $2,300,000 4.500% due 08/01/07++................................................. $ 2,300,000 South Louisiana, Port Community Marine Terminal Facilities Revenue, (Occidental Petroleum), (Credit Suisse LOC), 2,300,000 4.450% due 07/01/21++................................................. 2,300,000 - ---------------------------------------------------------------------------------------------------------- 4,600,000 - ---------------------------------------------------------------------------------------------------------- MARYLAND -- 1.1% Montgomery (County of), Maryland, Industrial Development Revenue, (Information Systems and Network Corporation Project), (PNC Bank LOC), 170,000 3.850% due 04/01/14++................................................. 170,000 Prince Georges (County of), Maryland, Housing Authority Mortgage Revenue, (Laurel-Oxford Project), (Bankers Trust Company LOC), 2,000,000 4.625% due 10/01/07++................................................. 2,000,000 - ---------------------------------------------------------------------------------------------------------- 2,170,000 - ---------------------------------------------------------------------------------------------------------- MINNESOTA -- 1.4% Minneapolis, Minnesota, Revenue, (Catholic Charities Project), (Norwest Bank Minnesota LOC), 2,700,000 4.550% due 11/01/16 ++................................................ 2,700,000 - ---------------------------------------------------------------------------------------------------------- MISSISSIPPI -- 1.3% Flowood, Mississippi, Industrial Development Revenue, (BSC Steel Inc. Project), AMT, (PNC Bank LOC), 2,500,000 4.750% due 11/01/01++................................................. 2,500,000 - ---------------------------------------------------------------------------------------------------------- MONTANA -- 0.5% Billings, Montana, Industrial Development Revenue, (Sysco Continental Project), (Toronto Dominion Bank LOC), 1,000,000 4.500% 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................................................... 1,094,511 - ---------------------------------------------------------------------------------------------------------- NEW MEXICO -- 1.9% Dona Ana (County of), New Mexico, Industrial Development Revenue, (Foamex Products Inc Project), (Bank of Nova Scotia LOC), 3,800,000 4.600% due 11/01/13++................................................. 3,800,000 - ---------------------------------------------------------------------------------------------------------- NORTH CAROLINA -- 0.8% North Carolina (State of), Medical Care Community, Health Care Facilities Revenue, (Methodist Home Project), (Branch Bank and Trust Company LOC), 1,590,000 4.000% due 03/01/18++................................................. 1,590,000 - ---------------------------------------------------------------------------------------------------------- NORTH DAKOTA -- 0.5% Mercer (County of), North Dakota, Solid Waste Disposal Revenue, National Rural Utilities, (Utility Power Project), Series U, AMT, (CFC Insured), 1,000,000 3.550% due 06/02/97................................................... 1,000,000 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 23 26 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) OHIO -- 4.4% Centerville, Ohio, Health Care Revenue, (Bethany Lutheran Village Project), (PNC Bank of Ohio LOC), $ 980,000 4.600% due 11/01/13++................................................. $ 980,000 Cuyahoga (County of), Ohio, Industrial Development Revenue, (Pleasant Lake Project), (Key Bank, N.A. LOC), 965,000 4.650% due 05/01/11++................................................. 965,000 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), 2,279,000 3.350% due 12/01/05++................................................. 2,279,000 Summit (County of), Ohio, Industrial Development Revenue, (Oliver Printing Project), AMT, (Bank One Akron LOC), 1,500,000 4.800% due 02/01/07++................................................. 1,500,000 Toledo-Lucas (County of), Ohio, Port Authority Facilities Improvement Revenue, (Young Mens Christian Association), (Fifth Third Bank LOC) 1,095,000 4.550% due 12/01/21++................................................. 1,095,000 Trumbull (County of), Ohio, Industrial Development Revenue, (ATD Corporation Project), AMT, (Key Bank, N.A. LOC), 925,000 4.800% due 08/01/10++................................................. 925,000 - ---------------------------------------------------------------------------------------------------------- 8,744,000 - ---------------------------------------------------------------------------------------------------------- PENNSYLVANIA -- 1.1% Schuylkill (County of), Pennsylvania, Industrial Development Authority Revenue, (PNC Bank LOC): (Bon-Ton Stores Project), AMT, 1,000,000 4.750% due 02/01/12++................................................. 1,000,000 (Grumbacher & Son Project), 1,240,000 4.600% due 02/01/12++................................................. 1,240,000 - ---------------------------------------------------------------------------------------------------------- 2,240,000 - ---------------------------------------------------------------------------------------------------------- SOUTH CAROLINA -- 4.8% Cherokee (County of), South Carolina, Industrial Development Revenue, (Holmberg Electric Corporation Project), (Wachovia Bank LOC), 1,000,000 5.000% due 11/01/04++................................................. 1,000,000 Greenville (County of), South Carolina, School District, 5,000,000 4.600% due 03/01/98................................................... 5,034,310 South Carolina (State of), Jobs, Economic Development Authority Revenue: (Chambers Oakridge Landfill), AMT, (Morgan Guaranty Trust Company LOC), 1,700,000 4.850% due 12/01/01++................................................. 1,700,000 (Spartanburg Young Mens Project), (First Union National Bank LOC), 1,800,000 4.650% due 06/01/18++................................................. 1,800,000 - ---------------------------------------------------------------------------------------------------------- 9,534,310 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 24 27 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) SOUTH DAKOTA -- 0.5% South Dakota (State of), Economic Development Finance Authority, Industrial Development Revenue, (Lomar Development Company Project), Series B, AMT, (First Bank LOC), $ 930,000 4.950% due 08/01/08++................................................. $ 930,000 - ---------------------------------------------------------------------------------------------------------- TENNESSEE -- 11.9% Chattanooga, Tennessee, Industrial Development Board, (Seaboard Farms of Chattanooga Project), (Bank of Nova Scotia LOC), 2,000,000 4.650% due 06/01/04++................................................. 2,000,000 Jefferson City, Tennessee, Industrial Development Board, (BA Property Project), AMT, (NBD Bank N.A. LOC), 1,000,000 4.600% 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 4.750% 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................................................... 1,773,155 Metropolitan Nashville and Davidson (County of), Tennessee: Industrial Development Board Revenue, (Nashville Apartment Properties #2), (SunTrust Bank LOC), 5,755,000 4.600% due 09/01/15++................................................. 5,755,000 (Vanderbilt University), 1,005,000 3.950% due 05/01/98................................................... 1,005,000 Metropolitan Nashville Airport Authority, Special Facilities Revenue, (American Airlines Inc. Project), Series B, (Bayerische Landesbank LOC), 7,000,000 3.950% due 10/01/12+.................................................. 7,000,000 Springfield, Tennessee, Industrial Development Board, All American Homes of Tennessee, AMT, (NBD Bank N.A. LOC), 1,800,000 4.600% due 11/15/09++................................................. 1,800,000 - ---------------------------------------------------------------------------------------------------------- 23,838,155 - ---------------------------------------------------------------------------------------------------------- TEXAS -- 7.2% Austin (County of), Texas, Industrial Development Corporation, Industrial Development Revenue, (Justin Industries Inc. Project), (Citibank (New York) LOC), 1,900,000 4.500% due 12/01/14++................................................. 1,900,000 Carrollton, Texas, Independent School District, GO, 1,200,000 6.700% due 02/01/98................................................... 1,225,554 Harris (County of), Texas, Health Facilities Development Corporation, Hospital Revenue, (St. Luke's Episcopal Hospital), Series B, (J.P. Morgan LOC), 4,100,000 3.850% due 02/15/16+.................................................. 4,100,000 Lubbock, Texas, Health Facilities Development Corporation Revenue, (Charter Plains Hospital), (Bankers Trust Company LOC), 2,000,000 4.700% 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 4.050% due 07/01/15++................................................. 1,200,000
See Notes to Financial Statements. 25 28 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) TEXAS (continued) Texas (State of), TRAN, Series A, $3,000,000 4.750% due 08/29/97................................................... $ 3,007,586 Trinity River, Texas, Industrial Development Authority, Industrial Development Revenue Bond, (Toys "R" Us Project), Series 1994, (Bankers Trust Company LOC), 1,000,000 4.025% due 11/01/14++................................................. 1,000,000 - ---------------------------------------------------------------------------------------------------------- 14,433,140 - ---------------------------------------------------------------------------------------------------------- UTAH -- 1.2% Salt Lake City, Utah, Housing Authority, Sandy Retirement Center, (Morgan Guaranty Trust Company, New York LOC), 1,000,000 4.500% due 01/01/09++................................................. 1,000,000 Utah (County of), Utah, Industrial Development Revenue, (McWare Inc. Project), (AmSouth Bank N.A., Birmingham LOC), 1,380,000 4.700% due 02/01/98++................................................. 1,380,000 - ---------------------------------------------------------------------------------------------------------- 2,380,000 - ---------------------------------------------------------------------------------------------------------- VIRGINIA -- 4.3% Albemarle (County of), Virginia, Industrial Development Authority, Health Services Revenue, (University of Virginia Services Foundation), (First Union National Bank (North Carolina) LOC), 5,800,000 4.650% due 02/01/26++................................................. 5,800,000 Bedford (County of), Virginia, Industrial Development Revenue, (Nekoosa Packaging Corporation Project), (Industrial Bank of Japan Ltd. LOC), 1,300,000 4.750% due 10/01/04++................................................. 1,300,000 Winchester, Virginia, Industrial Development Authority Revenue, Midwesco Filter, (Harris Trust & Savings Bank LOC), 1,575,000 4.900% due 08/01/07++................................................. 1,575,000 - ---------------------------------------------------------------------------------------------------------- 8,675,000 - ---------------------------------------------------------------------------------------------------------- WASHINGTON -- 1.5% Port Skagit (County of), Washington, Industrial Development Authority Revenue, (Cascade Clear Water Company Project), AMT, (Key Bank of Washington LOC), 900,000 4.800% due 12/01/20++................................................. 900,000 Washington (State of), Motor Vehicle Fuel Tax, Series B, 2,030,000 6.500% due 07/01/97................................................... 2,038,562 - ---------------------------------------------------------------------------------------------------------- 2,938,562 - ---------------------------------------------------------------------------------------------------------- WEST VIRGINIA -- 0.3% Ohio (County of), West Virginia, Industrial Development Revenue, (Ohio Valley Clarksburg Drug Company Project), (PNC Bank LOC), 700,000 3.800% due 12/01/01++................................................. 700,000 - ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 26 29 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
Principal Value Amount NATIONS MUNICIPAL RESERVES (Note 1) - ---------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES (continued) WISCONSIN -- 5.2% Howard Suamico, Wisconsin, School District, TRAN, $1,750,000 4.400% due 08/22/97................................................... $ 1,752,082 Kenosha, Wisconsin, TRAN, 2,500,000 4.250% due 06/30/97................................................... 2,500,988 Milwaukee, Wisconsin, Industrial Development Revenue, (Mandel Company Project), AMT, (First Bank LOC), 1,000,000 4.850% due 04/01/07++................................................. 1,000,000 Oshkosh, Wisconsin, Area School District, TRAN, 2,000,000 4.250% due 08/20/97................................................... 2,001,752 Sheboygan Falls, Wisconsin, School District, TRAN, 1,000,000 4.250% due 10/01/97................................................... 1,000,601 Sun Prairie, Wisconsin, Area School District, TRAN, 2,100,000 4.250% due 08/22/97................................................... 2,101,558 - ---------------------------------------------------------------------------------------------------------- 10,356,981 - ---------------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (Cost $199,561,809)..................... 199,561,809 - ----------------------------------------------------------------------------------------------------------
Shares - ---------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS -- 0.0% 25,000 AIM Tax-Exempt Fund..................................................... 25,000 25,000 Fidelity Institutional Tax-Exempt Cash Management Fund.................. 25,000 - ---------------------------------------------------------------------------------------------------------- Total Money Market Funds (Cost $50,000)........................... 50,000 - ---------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $199,611,809*).......................... 99.8% 199,611,809 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (NET).............................. 0.2% Other assets........................................................... 1,931,632 Payable for investment securities purchased............................ (1,005,000) Dividends payable...................................................... (420,156) Shareholder servicing and distribution fees payable (Note 3)........... (30,802) Investment advisory fee payable (Note 2)............................... (20,045) Accrued Trustees' fees and expenses (Note 2)........................... (8,233) Custodian fees payable (Note 2)........................................ (3,877) Administration fee payable (Note 2).................................... (2,010) Accrued expenses and other payables.................................... (79,651) - ----------------------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 361,858 - ----------------------------------------------------------------------------------------------------------- NET ASSETS...................................................... 100.0% $199,973,667 ===========================================================================================================
See Notes to Financial Statements. 27 30 STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES April 30, 1997
NATIONS MUNICIPAL RESERVES - ----------------------------------------------------------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Capital Class Shares: ($59,700,956 / 59,701,299 shares outstanding).......................... $ 1.00 =========================================================================================================== Liquidity Class Shares: ($54,676,746 / 54,677,062 shares outstanding).......................... $ 1.00 =========================================================================================================== Adviser Class Shares: ($7,296,406 / 7,296,448 shares outstanding)............................ $ 1.00 =========================================================================================================== Market Class Shares: ($78,299,559 / 78,300,010 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.
Nations Municipal Reserves had the following industry concentrations greater than 10% at April 30, 1997 (as a percentage of net assets): Industrial Facilities Revenue 20.3% Medical Facilities Revenue 12.6% Housing Revenue 12.2% Abbreviations: 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 APRIL 30, 1997 NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold....................... $ (1,152) Paid-in capital......................................................... 199,974,819 - ---------------------------------------------------------------------------------------------------------- NET ASSETS.............................................................. $199,973,667 ==========================================================================================================
See Notes to Financial Statements. 28 31 STATEMENTS OF OPERATIONS NATIONS INSTITUTIONAL RESERVES For the Year Ended April 30, 1997
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES - ------------------------------------------------------------------------------------------------------- Investment Income: Interest..................................... $90,975,530 $31,485,300 $14,895,371 $6,725,037 Dividends.................................... 3,914,065 1,182,057 178,064 145,213 - ------------------------------------------------------------------------------------------------------- Total Investment Income.................... 94,889,595 32,667,357 15,073,435 6,870,250 - ------------------------------------------------------------------------------------------------------- Expenses: Investment advisory fee (Note 2)............. 5,155,818 1,814,290 833,883 575,179 Administration fee (Note 2).................. 1,718,606 604,764 277,961 191,727 Transfer agent fees (Note 2)................. 65,309 51,998 46,720 45,322 Custodian fees (Note 2)...................... 160,427 118,419 39,508 28,619 Trustees' fees and expenses (Note 2)......... 90,588 35,707 13,945 8,182 Registration and filing fees................. 394,416 77,667 107,202 72,230 Legal and audit fees......................... 90,254 39,839 19,186 13,904 Other........................................ 71,090 37,759 20,832 54,609 - ------------------------------------------------------------------------------------------------------- Subtotal................................... 7,746,508 2,780,443 1,359,237 989,772 Shareholder servicing and distribution fees (Note 3): Liquidity Class Shares..................... 280,387 58,712 9,425 48,994 Adviser Class Shares....................... 802,626 360,803 80,948 18,582 Market Class Shares........................ 589,248 304,041 627,535 311,866 Fees waived by investment adviser and administrator.............................. (4,309,803) (1,570,212) (801,054) (605,955) - ------------------------------------------------------------------------------------------------------- Total Expenses............................. 5,108,966 1,933,787 1,276,091 763,259 - ------------------------------------------------------------------------------------------------------- Fees reduced by credits allowed by the custodian (Note 2)......................... -- -- (1,349) -- - ------------------------------------------------------------------------------------------------------- Net Expenses............................... 5,108,966 1,933,787 1,274,742 763,259 - ------------------------------------------------------------------------------------------------------- Net Investment Income.................... 89,780,629 30,733,570 13,798,693 6,106,991 - ------------------------------------------------------------------------------------------------------- Net Realized Gain on Investments (Note 1)....................................... 1,459 6,649 853 -- - ------------------------------------------------------------------------------------------------------- Net Increase in Net Assets Resulting From Operations............................... $89,782,088 $30,740,219 $13,799,546 $6,106,991 =======================================================================================================
See Notes to Financial Statements. 29 32 STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES For the Year Ended April 30, 1997
NATIONS TREASURY RESERVES - ----------------------------------------------------------------------------------------------------- Cash flows from operating and investing activities: Investment income received........................................ $ 29,591,474 Dividend income received.......................................... 1,032,239 Payment of operating expenses..................................... (1,759,035) Net proceeds from reverse repurchase agreements outstanding....... (6,278,000) Net purchases of short-term investments........................... (328,714,953) - ----------------------------------------------------------------------------------------------------- Cash used by operating and investing activities..................... $(306,128,275) Cash flows from financing activities: Proceeds from shares sold......................................... 3,297,027,733 Payments on shares redeemed....................................... (2,964,856,708) Distributions paid*............................................... (26,195,326) - ----------------------------------------------------------------------------------------------------- Cash provided by financing activities............................... 305,975,699 - ----------------------------------------------------------------------------------------------------- Decrease in cash.................................................... (152,576) Cash at beginning of year........................................... 534 - ----------------------------------------------------------------------------------------------------- Cash at end of year................................................. $ (152,042) ===================================================================================================== RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH USED BY OPERATING AND INVESTING ACTIVITIES: Net Increase in net assets resulting from operations................ $ 30,740,219 Increase in investments........................................... $ (331,663,401) Decrease in payable for reverse repurchase agreement transactions.................................................... (6,278,000) Decrease in interest and dividends receivable..................... 898,155 Decrease in other assets.......................................... 85,279 Increase in accrued expenses and other payables................... 89,473 - ----------------------------------------------------------------------------------------------------- Cash used by operating and investing activities..................... $(306,128,275) =====================================================================================================
* Non cash activities include reinvestment of dividends of $4,164,752. See Notes to Financial Statements. 30 33 STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES For the Year Ended April 30, 1997
NATIONS NATIONS NATIONS NATIONS CASH TREASURY GOVERNMENT MUNICIPAL RESERVES RESERVES RESERVES RESERVES - -------------------------------------------------------------------------------------------------------- Net investment income...................... $ 89,780,629 $ 30,733,570 $ 13,798,693 $ 6,106,991 Net realized gain on investments........... 1,459 6,649 853 -- - -------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations............................... 89,782,088 30,740,219 13,799,546 6,106,991 Distributions to shareholders from net investment income: Capital Class Shares................... (55,425,041) (17,377,380) (3,121,538) (2,108,862) Liquidity Class Shares................. (9,676,471) (1,979,702) (319,759) (1,059,818) Adviser Class Shares................... (16,293,321) (7,165,652) (1,631,142) (236,155) Market Class Shares.................... (8,385,796) (4,210,836) (8,726,254) (2,702,156) Net increase/(decrease) in net assets from shares of beneficial interest transactions (Note 4): Capital Class Shares................... 1,076,589,010 164,627,665 67,255,105 11,218,610 Liquidity Class Shares................. 384,404,620 69,773,004 6,352,281 47,943,490 Adviser Class Shares................... (150,259,645) (21,442,722) (83,323,912) (48,215,598) Market Class Shares.................... 333,000,010 123,400,010 218,500,010 78,300,010 - -------------------------------------------------------------------------------------------------------- Net increase in net assets................. 1,643,735,454 336,364,606 208,784,337 89,246,512 Net Assets: Beginning of year.......................... 1,040,898,764 491,837,222 166,418,275 110,727,155 - -------------------------------------------------------------------------------------------------------- End of year................................ $2,684,634,218 $828,201,828 $375,202,612 $199,973,667 ========================================================================================================
See Notes to Financial Statements. 31 34 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. 32 35 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS CASH RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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................ 0.0531 0.0570 0.0480 0.0283 0.0315 0.0492 0.0392 Dividends from net investment income............................. (0.0531) (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++....................... 5.44% 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).... $1,684,233 $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............... 5.32% 5.53% 4.96% 2.83% 3.15% 4.61% 7.04%+ Ratio of operating expenses to average net assets without waivers.......................... 0.45% 0.51% 0.52% 0.56% 0.59% 0.74% 0.79%+ Ratio of net investment income to average net assets without waivers.......................... 5.07% 5.22% 4.73% 2.72% 3.01% 4.32% 6.70%+ Net investment income per share without waivers.................. $ 0.0506 $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. 33 36 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS CASH RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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................. 0.0516 0.0555 0.0471 0.0273 0.0305 0.0482 0.0197 Dividends from net investment income.............................. (0.0516) (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++........................ 5.28% 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)..... $419,851 $ 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................ 5.17% 5.38% 4.87% 2.74% 2.96% 4.94% 6.41%+ Ratio of operating expenses to average net assets without waivers........................... 0.60% 0.66% 0.61% 0.65% 0.68% 0.85% 0.87%+ Ratio of net investment income to average net assets without waivers........................... 4.92% 5.07% 4.64% 2.64% 2.82% 4.64% 6.09%+ Net investment income per share without waivers..................... $ 0.0491 $ 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. 34 37 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS CASH RESERVES - ---------------------------------------------------------------------------------------------------------------- YEAR YEAR PERIOD ENDED ENDED ENDED 04/30/97 04/30/96 04/30/95* - ---------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year....................................... $ 1.00 $ 1.00 $ 1.00 - ---------------------------------------------------------------------------------------------------------------- Net investment income.................................................... 0.0506 0.0545 0.0316 Dividends from net investment income..................................... (0.0506) (0.0545) (0.0316) - ---------------------------------------------------------------------------------------------------------------- Net asset value, end of year............................................. $ 1.00 $ 1.00 $ 1.00 ================================================================================================================ Total Return++........................................................... 5.19% 5.58% 3.20% ================================================================================================================ Ratios to average net assets/supplemental data: Net assets, end of year (000's)........................................ $247,551 $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................... 5.07% 5.28% 4.71%+ Ratio of operating expenses to average net assets without waivers...... 0.70% 0.76% 0.77%+ Ratio of net investment income to average net assets without waivers... 4.82% 4.97% 4.48%+ Net investment income per share without waivers........................ $ 0.0481 $ 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. 35 38 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout the period.
NATIONS CASH RESERVES - ---------------------------------------------------------------------------------------------------------------- PERIOD ENDED 04/30/97* - ---------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of period............................................................ $ 1.00 - ---------------------------------------------------------------------------------------------------------------- Net investment income........................................................................... 0.0493 Dividends from net investment income............................................................ (0.0493) - ---------------------------------------------------------------------------------------------------------------- Net asset value, end of period.................................................................. $ 1.00 ================================================================================================================ Total Return++.................................................................................. 5.04% ================================================================================================================ Ratios to average net assets/supplemental data: Net assets, end of period (000's)............................................................. $333,000 Ratio of operating expenses to average net assets............................................. 0.55%+ Ratio of net investment income to average net assets.......................................... 4.97%+ Ratio of operating expenses to average net assets without waivers............................. 0.80%+ Ratio of net investment income to average net assets without waivers.......................... 4.72%+ Net investment income per share without waivers............................................... $ 0.0468 ================================================================================================================
* 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. 36 39 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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............... 0.0519 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...... 0.0519 0.0556 0.0480 0.0298 0.0324 0.0484 0.0176 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income............................ (0.0519) (0.0556) (0.0480) (0.0298) (0.0323) (0.0481) (0.0176) Distributions from net realized gains............................. -- -- -- -- (0.0001) (0.0003) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions................. (0.0519) (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++........................ 5.30% 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)..... $468,975 $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................ 5.20% 5.50% 4.79% 2.99% 2.99% 4.39% 5.85%+ Ratio of operating expenses to average net assets without waivers........................... 0.46% 0.51% 0.50% 0.52% 0.72% 1.06% 0.94%+ Ratio of net investment income to average net assets without waivers........................... 4.94% 5.19% 4.50% 2.67% 2.48% 3.59% 5.36%+ Net investment income per share without waivers................... $ 0.0493 $ 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. 37 40 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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............... 0.0504 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...... 0.0504 0.0541 0.0462 0.0263 0.0289 0.0457 0.0173 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income............................ (0.0504) (0.0541) (0.0462) (0.0263) (0.0288) (0.0454) (0.0173) Distributions from net realized gains............................. -- -- -- -- (0.0001) (0.0003) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions............... (0.0504) (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++........................ 5.15% 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)..... $ 81,575 $ 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................ 5.05% 5.35% 4.50% 2.67% 2.89% 4.62% 5.75%+ Ratio of operating expenses to average net assets without waivers........................... 0.61% 0.66% 0.79% 0.87% 1.07% 1.32% 1.04%+ Ratio of net investment income to average net assets without waivers........................... 4.79% 5.04% 4.21% 2.35% 2.37% 3.82% 5.26%+ Net investment income per share without waivers................... $ 0.0478 $ 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. 38 41 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS TREASURY RESERVES - ----------------------------------------------------------------------------------------------------------------- YEAR YEAR PERIOD ENDED ENDED ENDED 04/30/97 04/30/96 04/30/95* - ----------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year...................................... $ 1.00 $ 1.00 $ 1.00 - ----------------------------------------------------------------------------------------------------------------- Net investment income................................................... 0.0494 0.0531 0.0308 Dividends from net investment income.................................... (0.0494) (0.0531) (0.0308) - ----------------------------------------------------------------------------------------------------------------- Net asset value, end of year............................................ $ 1.00 $ 1.00 $ 1.00 ================================================================================================================= Total Return++.......................................................... 5.06% 5.45% 3.11% ================================================================================================================= Ratios to average net assets/supplemental data: Net assets, end of year (000's)....................................... $154,256 $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.................. 4.95% 5.25% 4.54%+ Ratio of operating expenses to average net assets without waivers..... 0.71% 0.76% 0.75%+ Ratio of net investment income to average net assets without 4.69% 4.94% 4.25%+ waivers............................................................. Net investment income per share without waivers....................... $ 0.0468 $ 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. 39 42 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout the period.
NATIONS TREASURY RESERVES - ----------------------------------------------------------------------------------------------------------------- PERIOD ENDED 04/30/97* - ----------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of period............................................................ $ 1.00 - ----------------------------------------------------------------------------------------------------------------- Net investment income........................................................................... 0.0481 Dividends from net investment income............................................................ (0.0481) - ----------------------------------------------------------------------------------------------------------------- Net asset value, end of period.................................................................. $ 1.00 ================================================================================================================= Total Return++.................................................................................. 4.92% ================================================================================================================= Ratios to average net assets/supplemental data: Net assets, end of period (000's)............................................................. $123,396 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............................. 0.81%+ Ratio of net investment income to average net assets without waivers.......................... 4.59%+ Net investment income per share without waivers............................................... $ 0.0455 =================================================================================================================
* 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. 40 43 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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.................. 0.0520 0.0556 0.0463 0.0278 0.0312 0.0343 0.0168 Net realized gain on investments....... -- -- -- -- -- 0.0023 -- - --------------------------------------------------------------------------------------------------------------------------- Total from investment operations... 0.0520 0.0556 0.0463 0.0278 0.0312 0.0366 0.0168 - --------------------------------------------------------------------------------------------------------------------------- Less distributions: Dividends from net investment income... (0.0520) (0.0556) (0.0463) (0.0278) (0.0312) (0.0343) (0.0168) Distributions from net realized gains................................ -- -- -- -- -- (0.0023) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions................ (0.0520) (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++........................... 5.33% 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)........ $ 125,377 $ 58,121 $ 2 $ 10,819 $ 7,396 $ 1,800 $ 295 Ratio of operating expenses to average net assets........................... 0.20%(a) 0.20% 0.32% 0.45% 0.45% 0.45% 0.45%+ Ratio of net investment income to average net assets................... 5.22% 5.48% 4.35% 2.78% 3.07% 4.24% 5.89%+ Ratio of operating expenses to average net assets without waivers........... 0.49%(a) 0.53% 0.54% 0.51% 0.64% 0.76% 0.80%+ Ratio of net investment income to average net assets without waivers... 4.93% 5.15% 4.13% 2.72% 2.88% 3.93% 5.54%+ Net investment income per share without waivers.............................. $ 0.0491(a) $ 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. (a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with and without waivers and net investment income per share was less than 0.01% and $0.01, respectively.
See Notes to Financial Statements. 41 44 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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............ 0.0505 0.0537 0.0453 0.0268 0.0302 0.0461 0.0176 Net realized gain on investments.................... -- -- -- -- -- 0.0023 -- - --------------------------------------------------------------------------------------------------------------------------- Total from investment operations................... 0.0505 0.0537 0.0453 0.0268 0.0302 0.0484 0.0176 - --------------------------------------------------------------------------------------------------------------------------- Less Distributions: Dividends from net investment income......................... (0.0505) (0.0537) (0.0453) (0.0268) (0.0302) (0.0461) (0.0176) Distributions from net realized gains.......................... -- -- -- -- -- (0.0023) -- - --------------------------------------------------------------------------------------------------------------------------- Total distributions............ (0.0505) (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++..................... 5.19% 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)........................ $ 6,482 $ 129 $ 2 $259,836 $149,252 $ 12,486 $ 5,589 Ratio of operating expenses to average net assets............. 0.35%(a) 0.35% 0.40% 0.55% 0.55% 0.55% 0.55%+ Ratio of net investment income to average net assets............. 5.07% 5.33% 4.27% 2.68% 2.71% 4.46% 5.86%+ Ratio of operating expenses to average net assets without waivers........................ 0.64%(a) 0.68% 0.62% 0.61% 0.74% 0.86% 0.94%+ Ratio of net investment income to average net assets without waivers........................ 4.78% 5.00% 4.05% 2.62% 2.52% 4.18% 5.47%+ Net investment income per share without waivers................ $ 0.0476(a) $ 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. (a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with and without waivers and net investment income per share was less than 0.01% and $0.01, respectively. See Notes to Financial Statements. 42 45 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS GOVERNMENT RESERVES - ------------------------------------------------------------------------------------------------------------------------ YEAR YEAR PERIOD ENDED ENDED ENDED 04/30/97 04/30/96 04/30/95* - ------------------------------------------------------------------------------------------------------------------------ Adviser Class Shares: Net asset value, beginning of year......................................... $ 1.00 $ 1.00 $ 1.00 - ------------------------------------------------------------------------------------------------------------------------ Net investment income...................................................... 0.0495 0.0527 0.0299 Dividends from net investment income....................................... (0.0495) (0.0527) (0.0299) - ------------------------------------------------------------------------------------------------------------------------ Net asset value, end of year............................................... $ 1.00 $ 1.00 $ 1.00 ======================================================================================================================== Total Return++............................................................. 5.07% 5.39% 3.04% ======================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year (000's).......................................... $24,845 $108,168 $ 99,246 Ratio of operating expenses to average net assets........................ 0.45%(a) 0.45% 0.57%+ Ratio of net investment income to average net assets..................... 4.97% 5.23% 4.10%+ Ratio of operating expenses to average net assets without waivers........ 0.74%(a) 0.78% 0.79%+ Ratio of net investment income to average net assets without waivers..... 4.68% 4.90% 3.88%+ Net investment income per share without waivers.......................... $0.0466 (a) $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. (a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with and without waivers and net investment income per share was less than 0.01% and $0.01, respectively.
See Notes to Financial Statements. 43 46 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout the period.
NATIONS GOVERNMENT RESERVES - --------------------------------------------------------------------------------------------------------------------- PERIOD ENDED 04/30/97* - --------------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of period................................................................ $ 1.00 - --------------------------------------------------------------------------------------------------------------------- Net investment income............................................................................... 0.0482 Dividends from net investment income................................................................ (0.0482) - --------------------------------------------------------------------------------------------------------------------- Net asset value, end of period...................................................................... $ 1.00 ===================================================================================================================== Total Return++...................................................................................... 4.93% ===================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year period (000's)............................................................ $218,499 Ratio of operating expenses to average net assets................................................. 0.55%+(a) Ratio of net investment income to average net assets.............................................. 4.87%+ Ratio of operating expenses to average net assets without waivers................................. 0.84%+(a) Ratio of net investment income to average net assets without waivers.............................. 4.58%+ Net investment income per share without waivers................................................... $ 0.0453 (a) ===================================================================================================================== * The Nations Government Reserves Market Class Shares commenced operations on May 3, 1996. + Annualized. ++ Total return represents aggregate total return for the period indicated. (a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with and without waivers and net investment income per share was less than 0.01% and $0.01, respectively.
See Notes to Financial Statements. 44 47 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Capital Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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.................. 0.0337 0.0362 0.0313 0.0198 0.0231 0.0356 0.0245 Dividends from net investment income... (0.0337) (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++......................... 3.44% 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)...... $ 59,701 $ 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......... 0.52% 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......... 3.06% 3.23% 2.99% 1.85% 2.05% 2.94% 4.16%+ Net investment income per share without waivers and/or expenses reimbursed......................... $ 0.0305 $ 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. 45 48 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Liquidity Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES --------------------------------------------------------------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED 04/30/97 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.................. 0.0323 0.0347 0.0304 0.0188 0.0221 0.0346 0.0478 Dividends from net investment income... (0.0323) (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++......................... 3.29% 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)...... $ 54,677 $ 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......... 0.67% 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......... 2.91% 3.08% 2.89% 1.74% 2.00% 2.92% 4.96%+ Net investment income per share without waivers and/or expenses reimbursed......................... $ 0.0291 $ 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. 46 49 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For an Adviser Class Share outstanding throughout each year.
NATIONS MUNICIPAL RESERVES - -------------------------------------------------------------------------------------------------------------------------- YEAR YEAR PERIOD ENDED ENDED ENDED 04/30/97 04/30/96 04/30/95* - -------------------------------------------------------------------------------------------------------------------------- Adviser Class Shares: Net asset value, beginning of year............................................... $ 1.00 $ 1.00 $ 1.00 - -------------------------------------------------------------------------------------------------------------------------- Net investment income............................................................ 0.0313 0.0337 0.0199 Dividends from net investment income............................................. (0.0313) (0.0337) (0.0199) - -------------------------------------------------------------------------------------------------------------------------- Net asset value, end of year..................................................... $ 1.00 $ 1.00 $ 1.00 ========================================================================================================================== Total Return++................................................................... 3.19% 3.43% 2.02% ========================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of year (000's)................................................ $ 7,296 $ 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.......................................................... 0.77% 0.83% 0.84%+ Ratio of net investment income to average net assets without waivers and/or expenses reimbursed.......................................................... 2.81% 2.98% 2.74%+ Net investment income per share without waivers and/or expenses reimbursed..... $ 0.0281 $ 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. 47 50 FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES For a Market Class Share outstanding throughout the period.
NATIONS MUNICIPAL RESERVES - ---------------------------------------------------------------------------------------------------------------------- PERIOD ENDED 04/30/97* - ---------------------------------------------------------------------------------------------------------------------- Market Class Shares: Net asset value, beginning of period................................................................... $ 1.00 - ---------------------------------------------------------------------------------------------------------------------- Net investment income.................................................................................. 0.0301 Dividends from net investment income................................................................... (0.0301) - ---------------------------------------------------------------------------------------------------------------------- Net asset value, end of period......................................................................... $ 1.00 ====================================================================================================================== Total Return++......................................................................................... 3.06% ====================================================================================================================== Ratios to average net assets/supplemental data: Net assets, end of period (000's).................................................................... $ 78,300 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.................................... 0.87%+ Ratio of net investment income to average net assets without waivers................................. 2.71%+ Net investment income per share without waivers...................................................... $ 0.0269 ======================================================================================================================
* 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. 48 51 NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES 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. 1. Significant Accounting Policies. 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 fair 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. Restricted securities and other assets are valued by the investment adviser under the supervision of the Board of Trustees. Repurchase Agreements -- Each Portfolio may engage in repurchase agreement transactions including joint repurchase agreement transactions in which the Portfolios, along with other registered investment companies advised by NationsBanc Advisers, Inc. ("NBAI"), invest their aggregate cash balances. 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 their 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 Portfolios' investment adviser has determined are 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 segregate 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 the Portfolio is obligated to repurchase. Securities subject to repurchase under reverse repurchase agreements are designated in the Statement of Net Assets. At April 30, 1997, Nations Treasury Reserves had reverse repurchase agreements outstanding as follows: Maturity Amount.................................................. $98,966,000 Maturity Date.................................................... 07/01/97 Market Value of Assets Sold Under Agreements..................... $98,496,223
The average daily balance of reverse repurchase agreements outstanding during the year ended April 30, 1997 was $95,404,019. Nations Cash Reserves and Nations Government Reserves did not enter into any reverse repurchase agreements during the year ended April 30, 1997. 49 52 NOTES TO FINANCIAL STATEMENTS (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 year ended April 30, 1997, representing the difference between interest rates on the reverse repurchase and repurchase agreements, amounted to $141,441. 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 calculated ratably, 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 the 4% non-deductible Federal excise tax. Income distributions and capital gain distributions 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 -- Each Portfolio intends to qualify as a regulated investment company by complying with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and by distributing substantially all of its earnings to its shareholders. Therefore, no Federal income or excise tax provision is 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 each Portfolio equal to 0.30% on an annualized basis, of the average daily net assets of such Portfolio. The Trust and NBAI have entered into a sub-advisory agreement ("Sub-Advisory Agreement") with 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. 50 53 NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES For the year ended April 30, 1997, Stephens earned $279,306, 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 year ended April 30, 1997, the investment adviser and administrator voluntarily waived the following fees:
FEES WAIVED BY FEES WAIVED BY INVESTMENT ADVISER ADMINISTRATOR ------------------ --------------- Nations Cash Reserves............................... $2,797,837 $ 1,511,966 Nations Treasury Reserves........................... 1,033,412 536,800 Nations Government Reserves......................... 556,881 244,173 Nations Municipal Reserves.......................... 437,537 168,418
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 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 plan 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 and retirement 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 year ended April 30, 1997, earned $212,101 for providing such services. On October 18, 1996, The Bank of New York ("BONY") was appointed sub-custodian for the Portfolios. The Portfolios (except Nations Municipal Reserves) accrue a credit on daily cash balances held at BONY. The earnings credit is applied to the monthly custody fee. For the year ended April 30, 1997, the earnings credit was $1,349. First Data also serves as the transfer agent for the Portfolios' shares. NationsBank of Texas also acts as the sub-transfer agent for the Capital Class Shares of the Portfolios and, for the year ended April 30, 1997, earned approximately $22,655 for providing such services. Stephens 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. 51 54 NOTES TO FINANCIAL STATEMENTS (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 year ended April 30, 1997, 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 SHARES SHARES MARKET CLASS SHARES SERVICING SERVICING SHARES SERVICING PORTFOLIO PLAN PLAN PLAN PLAN ------------------------------ --------------- ------------- ------------ ------------ Nations Cash Reserves......... 0.15% 0.25% 0.10% 0.25% Nations Treasury Reserves..... 0.15% 0.25% 0.10% 0.25% Nations Government Reserves... 0.15% 0.25% 0.10% 0.25% Nations Municipal Reserves.... 0.15% 0.25% 0.10% 0.25%
For the year ended April 30, 1997, no fees were incurred by the Portfolios pursuant to the Liquidity Class Shares Plan. 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 April 30, 1997, an unlimited number of shares without par value were authorized for the Trust. The Trust's Declaration 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:
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- NATIONS CASH RESERVES: Capital Class Shares: Sold............................................ $ 8,400,298,782 $1,186,447,620 Issued as reinvestment of dividends............. 25,009,333 1,201,076 Redeemed........................................ (7,348,719,105) (714,069,908) -------------- -------------- Net increase.................................... $ 1,076,589,010 $ 473,578,788 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Liquidity Class Shares: Sold............................................ $ 4,463,041,753 $ 316,764,360 Issued as reinvestment of dividends............. 5,877,940 842,517 Redeemed........................................ (4,084,515,073) (282,161,641) -------------- -------------- Net increase.................................... $ 384,404,620 $ 35,445,236 ============== ==============
52 55 NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- NATIONS CASH RESERVES (CONTINUED): Adviser Class Shares: Sold............................................ $ 1,638,783,813 $ 764,101,646 Issued as reinvestment of dividends............. 3,465,664 78,897 Redeemed........................................ (1,792,509,122) (414,053,407) -------------- -------------- Net increase/(decrease)......................... $ (150,259,645) $ 350,127,136 ============== ==============
PERIOD ENDED APRIL 30, 1997* --------------- Market Class Shares: Sold............................................ $ 794,300,010 Redeemed........................................ (461,300,000) -------------- Net increase.................................... $ 333,000,010 ==============
- --------------- * The Nations Cash Reserves Market Class Shares commenced operations on May 3, 1996.
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- NATIONS TREASURY RESERVES: Capital Class Shares: Sold............................................ $ 1,673,872,701 $1,731,309,808 Issued as reinvestment of dividends............. 793,663 -- Redeemed........................................ (1,510,038,699) (1,678,650,050) -------------- -------------- Net increase.................................... $ 164,627,665 $ 52,659,758 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Liquidity Class Shares: Sold............................................ $ 553,984,269 $ 23,746,115 Issued as reinvestment of dividends............. 1,522,298 113,655 Redeemed........................................ (485,733,563) (12,729,001) -------------- -------------- Net increase.................................... $ 69,773,004 $ 11,130,769 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Adviser Class Shares: Sold............................................ $ 735,220,753 $ 569,065,291 Issued as reinvestment of dividends............. 1,848,791 31,406 Redeemed........................................ (758,512,266) (449,157,719) -------------- -------------- Net increase/(decrease)......................... $ (21,442,722) $ 119,938,978 ============== ==============
53 56 NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
PERIOD ENDED APRIL 30, 1997* --------------- NATIONS TREASURY RESERVES (CONTINUED): Market Class Shares: Sold............................................ $ 333,950,010 Redeemed........................................ (210,550,000) -------------- Net increase.................................... $ 123,400,010 ==============
- --------------- * The Nations Treasury Reserves Market Class Shares commenced operations on May 3, 1996.
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- NATIONS GOVERNMENT RESERVES: Capital Class Shares: Sold............................................ $ 396,992,148 $ 154,655,322 Issued as reinvestment of dividends............. 488,093 30,543 Redeemed........................................ (330,225,136) (96,565,556) -------------- -------------- Net increase.................................... $ 67,255,105 $ 58,120,309 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Liquidity Class Shares: Sold............................................ $ 28,431,378 $ 346,343 Issued as reinvestment of dividends............. 311,527 989 Redeemed........................................ (22,390,624) (220,000) -------------- -------------- Net increase.................................... $ 6,352,281 $ 127,332 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Adviser Class Shares: Sold............................................ $ 646,626,695 $ 327,190,413 Issued as reinvestment of dividends............. 1,239,113 14,421 Redeemed........................................ (731,189,720) (318,282,969) -------------- -------------- Net increase/(decrease)......................... $ (83,323,912) $ 8,921,865 ============== ==============
PERIOD ENDED APRIL 30, 1997* --------------- Market Class Shares: Sold............................................ $ 691,300,010 Redeemed........................................ (472,800,000) -------------- Net increase.................................... $ 218,500,010 ==============
- --------------- * The Nations Government Reserves Market Class Shares commenced operations on May 3, 1996. 54 57 NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- NATIONS MUNICIPAL RESERVES: Capital Class Shares: Sold............................................ $ 188,376,816 $ 176,646,799 Redeemed........................................ (177,158,206) (160,517,575) -------------- -------------- Net increase.................................... $ 11,218,610 $ 16,129,224 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Liquidity Class Shares: Sold............................................ $ 456,759,834 $ 60,121,685 Issued as reinvestment of dividends............. 980,434 135,917 Redeemed........................................ (409,796,778) (56,115,098) -------------- -------------- Net increase.................................... $ 47,943,490 $ 4,142,504 ============== ==============
YEAR ENDED YEAR ENDED APRIL 30, APRIL 30, 1997 1996 --------------- -------------- Adviser Class Shares: Sold............................................ $ 60,607,746 $ 265,087,129 Issued as reinvestment of dividends............. 196,137 71 Redeemed........................................ (109,019,481) (273,698,589) -------------- -------------- Net decrease.................................... $ (48,215,598) $ (8,611,389) ============== ==============
PERIOD ENDED APRIL 30, 1997* --------------- Market Class Shares: Sold............................................ $ 339,700,010 Redeemed........................................ (261,400,000) -------------- Net increase.................................... $ 78,300,010 ==============
- --------------- * The Nations Municipal Reserves Market Class Shares commenced operations on May 3, 1996. 55 58 NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES 5. Restricted Securities. The following securities are illiquid and restricted as to resale and, accordingly, are valued at fair value in good faith by or under the direction of the Trust's Board of Trustees taking into consideration such factors as the Board deems appropriate. The following table shows the acquisition date, the par value, value per unit, fair value, the percentage of Nations Cash Reserves total net assets that each security comprises as well as the aggregate cost of each such security at April 30, 1997.
VALUE PERCENTAGE ACQUISITION PER FAIR OF COST AT SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS 04/30/97 - ----------------------------- ----------- ----------- ----- ----------- ---------- ----------- Jackson National Life Insurance Company: 5.650% 06/14/97++#......... 06/14/96 $50,000,000 $1.00 $50,000,000 1.9% $50,000,000 5.870% 07/01/97++.......... 01/02/97 50,000,000 1.00 50,000,000 1.9 50,000,000 New York Life Insurance Company, 5.864% 07/01/97++.......... 10/07/96 50,000,000 1.00 50,000,000 1.9 50,000,000 Peoples Security Life Insurance Company, 5.740% 05/01/97++#......... 05/09/96 25,000,000 1.00 25,000,000 0.9 25,000,000
- --------------- # Put Date is 10/31/97 ++ Reset Date Certain securities may be sold only pursuant to certain legal restrictions and may be difficult to sell. No Portfolio will invest more than 10% of the value of its net assets in securities that are illiquid. 6. Line of Credit. The Trust participates in an uncommitted line of credit provided by BONY under a line of credit agreement dated February 28, 1997 (the "Agreement"). Advances under the Agreement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the Agreement, each Portfolio may borrow up to the lesser of $25 million or 25% of its net assets. Interest on borrowings is payable at the Federal Funds Rate plus 0.50% on an annualized basis. The Agreement requires, among other things, that each participating Portfolio maintain a ratio of no less than 4 to 1 net assets (not including funds borrowed pursuant to the Agreement) to aggregate amount of indebtedness pursuant to the Agreement. At April 30, 1997, there were no loans outstanding under this Agreement. There were no borrowings for the year ended April 30, 1997 by the Portfolios under each agreement. 7. Concentration of Credit. The Portfolios invest primarily in money market instruments maturing in one year or less whose ratings are within the highest ratings categories by a nationally recognized statistical rating agency or, if not rated, are believed by 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. 56 59 NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES 8. Capital Loss Carryforward. As of April 30, 1997, the Portfolios had available for Federal income tax purposes unused capital losses as follows:
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING IN 1998 IN 2000 IN 2001 IN 2002 IN 2003 IN 2004 IN 2005 -------- -------- -------- -------- -------- -------- -------- Nations Cash Reserves................ -- $1,872 $850 $ 574 -- -- -- Nations Treasury Reserves............ -- -- -- 9,255 $3,324 -- $ 15,261 Nations Government Reserves.......... -- -- -- -- -- $1,209 -- Nations Municipal Reserves........... $ 72 -- -- -- 1,080 -- --
9. Significant Concentrations. On February 26, 1997, NationsBank Corporation's (the "Corporation") Asset Management Group announced plans to sell its Institutional Trust, Retirement Services and Corporate Trust businesses (collectively, the "Businesses"). The Businesses make significant use of the Nations Funds Family of Funds (the "Funds"), including Nations Institutional Reserves, to satisfy their clients' investment needs. It is uncertain at this point what impact, if any, the sale of these Businesses will have on the Portfolios and its shareholders. Currently, however, the Adviser does not believe that a significant impact to the overall financial condition and operating performance of the Portfolios will occur. 10. Principal Shareholders. At April 30, 1997, one shareholder owned approximately 11% of the outstanding shares of Nations Municipal Reserves. No other shareholder owned more than 10% of the outstanding shares of any Portfolio. 57 60 REPORT OF INDEPENDENT ACCOUNTANTS NATIONS INSTITUTIONAL RESERVES To the Shareholders and Trustees of Nations Institutional Reserves: In our opinion, the accompanying statements of net assets and the related statements of operations, the statement of cash flows for Nations Treasury Reserves, the statements of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nations Cash Reserves, Nations Treasury Reserves, Nations Government Reserves and Nations Municipal Reserves (each a series of Nations Institutional Reserves hereafter referred to as the "Trust") at April 30, 1997, the results of each of their operations, the cash flows for Nations Treasury Reserves, the changes in each of their net assets and their financial highlights for the periods indicated, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 1997 by correspondence with the custodian and brokers and the application of alternative auditing procedures where confirmations from brokers were not received, provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Boston, Massachusetts June 18, 1997 58 61 TAX INFORMATION (UNAUDITED) NATIONS INSTITUTIONAL RESERVES For the year ended April 30, 1997, all of the distributions made from Nations Municipal Reserves are tax-exempt for regular Federal income tax purposes. A portion of this income may be subject to the alternative minimum tax. 59 62 This report is submitted for the general information of shareholders of Nations Institutional Reserves. This material must be preceded or accompanied by a current Nations Institutional Reserves prospectus. 63 [NATIONS FUNDS LOGO] ---------------- P.O. Box 34602 | BULK RATE | Charlotte, NC 28234-4602 | U.S. POSTAGE | Toll Free 1-800-982-2271 | PAID | | N READING, MA| | PERMIT NO. | | 105 | ---------------- AR7 CM-96335-597 -----END PRIVACY-ENHANCED MESSAGE-----