-----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, PnZ/4ug9qhzNGp/0oaEPTZeIJ39UgajLJ/j4N0XIKR9zQmV10LhohoOjwixwPGxS kaPA65DfeEYvWtRQ9wT8zg== 0000950144-01-503299.txt : 20010608 0000950144-01-503299.hdr.sgml : 20010608 ACCESSION NUMBER: 0000950144-01-503299 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20010607 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: SEC FILE NUMBER: 811-06030 FILM NUMBER: 1655815 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 g68306n-30d.txt RESERVES 1 [GRAPHIC: WATER DROP] Nations Cash Reserves Nations Money Market Reserves Nations Treasury Reserves Nations Government Reserves Nations Municipal Reserves Nations California Tax-Exempt Reserves NATIONS RESERVES ANNUAL REPORT FOR THE YEAR MONEY MARKET FUNDS ENDED MARCH 31, 2001 ANNUAL REPORT [NATIONS FUNDS LOGO] 2 This Report is submitted for the general information of shareholders of Nations Funds. This material must be preceded or accompanied by a current Nations Funds prospectus. Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of America N.A., is not a bank, and securities offered by it are not guaranteed by any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC. Nations Funds Investment adviser: Banc of America Advisors, Inc. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE 3 NATIONS RESERVES MONEY MARKET FUNDS Dear Shareholder: We are pleased to present the annual financial report for Nations Reserves money market funds (the "Funds"). This report contains important financial data regarding your investment for the period ended March 31, 2001. We hope you will take a moment to review this information. A DEFINING PERIOD FOR INVESTORS The fiscal year for the Funds opened in April 2000 to an economy of robust growth, a tight labor market and rising energy prices. These factors led to inflationary pressures which forced the Federal Reserve Board to raise short-term interest rates a full 50 basis points at its May 2000 meeting. During the second half of 2000, inventories accumulated and the economy slowed down significantly. During the first quarter of 2001, the Federal Open Market Committee (FOMC) responded in a dramatic fashion by lowering short-term interest rates in 3 increments of 50 basis points each beginning with an inter-meeting move on January 3rd, followed by similar moves at their regular meeting dates in January and March. While this environment challenged stock prices and corporate earnings projections, the Funds were generally well positioned to take advantage of these moves. Our portfolio management team developed a strategic plan to purchase longer duration securities while the yield curve was relatively steep. Maturities were generally extended just prior to the first easing in January 2001, which allowed the Funds to maintain a higher yield as market rates were falling. WHAT TO EXPECT THIS YEAR A major concern overhanging the market is whether the economy will experience an actual recession and how long this bout of weakness will persist. Growth has remained at a near standstill, but it is our belief that the overall economy will not experience a contraction - and hence, a recession. With a period of such dramatic easing by the FOMC, combined with a resurgence in money growth, we expect a recovery may occur later this year. We believe this should mitigate the need for significant further easing of monetary policy and provide the impetus for a more normal, positively sloped yield curve. With the yield curve inverted for much of 2001, we believe relatively few opportunities for money fund investors to maintain longer weighted average maturities (WAMs) will be available. Given this type of environment, we feel maintaining shorter WAMs will create the most current yield for money market investors and keep them well positioned for an eventual steepening of the yield curve. OUR COMMITMENT TO YOUR SHORT-TERM INVESTMENT NEEDS We are committed to providing competitive products and services for your short-term investment and cash management needs. Nations Reserves money market funds are managed daily by teams of investment professionals, giving you convenient and efficient access to major sectors of the money markets. By choosing professional management, you benefit from our strength to keep pace with changing economic conditions. We believe our focused and disciplined approach, tremendous buying power, emphasis on in-depth research as well as intensive security, economic and credit analysis provide you with highly performing investment options while seeking to control portfolio risk. We appreciate your business and thank you for choosing Nations Reserves money market funds to assist you with your short-term investment needs. Sincerely, /s/ A. Max Walker A. Max Walker President and Chairman of the Board, Nations Reserves /s/ Robert H. Gordon Robert H. Gordon President, Banc of America Advisors, Inc. March 31, 2001 AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH MONEY MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN MONEY MARKET FUNDS. Sources for economic and statistical data: Banc of America Capital Management, Inc. 4 (This page intentionally left blank) 5 TABLE OF CONTENTS FINANCIAL STATEMENTS Statements of net assets Nations Cash Reserves 2 Nations Money Market Reserves 8 Nations Treasury Reserves 12 Nations Government Reserves 14 Nations Municipal Reserves 16 Nations California Tax-Exempt Reserves 27 Statements of operations 36 Statements of changes in net assets 38 Statement of cash flows 41 Schedules of capital stock activity 42 Financial highlights 48 Notes to financial statements 60
------------------------------------------------------------------------------ NATIONS FUNDS [DALBAR LOGO] RECOGNIZED FOR OUTSTANDING DALBAR, Inc., is a well-respected INTERMEDIARY AND research firm that measures SHAREHOLDER SERVICE customer service levels and establishes benchmarks in the IN RECOGNITION OF ITS COMMITMENT TO financial services industry. PROVIDE INVESTMENT PROFESSIONALS AND SHAREHOLDERS WITH THE HIGHEST LEVEL OF SERVICE IN THE MUTUAL FUND INDUSTRY, NATIONS FUNDS RECEIVED BOTH THE DALBAR INTERMEDIARY SERVICE AWARD AND MUTUAL FUND SERVICE AWARD IN 2000. ------------------------------------------------------------------------------
6 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ ASSET-BACKED SECURITIES -- 0.2% (Cost $100,000) ASSET-BACKED -- AUTO LOANS -- 0.2% $ 100,000 Ford Credit Auto Owner Trust, Series 2001-A, Class A2, 5.494% 10/15/01................. $ 100,000 ----------- BANK OBLIGATIONS -- 28.2% BANK NOTES -- 9.3% American Express Centurion Bank 150,000 5.170%(+) 04/01/01(++)............ 149,996 100,000 5.180%(+) 04/01/01(++)............ 100,000 100,000 5.229%(+) 04/09/01(++)............ 100,000 100,000 5.204%(+) 04/11/01(++)............ 99,999 100,000 Bank One Corporation, MTN 5.180%(+) 06/16/01(++).......... 100,157 Bank One, N.A. 275,000 5.150%(+) 04/01/01(++)............ 274,978 100,000 7.170% 05/08/01................... 100,000 200,000 7.230% 06/11/01................... 199,993 150,000 6.660% 11/02/01................... 149,966 200,000 6.680% 11/02/01................... 199,966 Comerica Bank, N.A. 200,000 5.150%(+) 04/01/01(++)............ 199,966 100,000 5.160%(+) 04/01/01(++)............ 99,994 200,000 5.273%(+) 04/03/01(++)............ 200,000 200,000 5.163%(+) 04/17/01(++)............ 199,988 First Union National Bank 100,000 5.180%(+) 04/01/01(++)............ 100,000 150,000 5.190%(+) 04/01/01(++)............ 150,000 200,000 5.340%(+) 04/01/01(++)............ 200,000 200,000 5.350%(+) 04/01/01(++)............ 200,000 150,000 5.370%(+) 04/01/01(++)............ 149,999 100,000 5.136%(+) 04/23/01(++)............ 100,034 30,000 Fleet Bank, N.A. 5.284%(+) 04/17/01(++).......... 30,008 Key Bank, N.A. 200,000 5.130%(+) 04/01/01(++)............ 199,979 200,000 5.130%(+) 04/01/01(++)............ 199,981 200,000 5.150%(+) 04/01/01(++)............ 199,982 200,000 5.558%(+) 04/27/01(++)............ 199,981 150,000 National City Bank 4.950%(+) 04/21/01(++).......... 149,981 350,000 National City Bank of Indiana 5.100%(+) 04/01/01(++).......... 349,918 250,000 Royal Bank of Canada 5.115%(+) 04/01/01(++).......... 249,965 SouthTrust Bank, N.A. 300,000 5.140%(+) 04/01/01(++)............ 299,993 100,000 5.150%(+) 04/01/01(++)............ 99,992 US Bank, N.A. 200,000 5.130%(+) 04/01/01(++)............ 199,975 100,000 5.180%(+) 04/01/01(++)............ 100,000 ----------- 5,354,791 ----------- CERTIFICATES OF DEPOSIT -- DOMESTIC -- 2.3% Allfirst Bank 200,000 5.275%(+) 04/07/01(++)............ 200,000 200,000 5.140%(+) 04/16/01(++)............ 200,000 200,000 Citibank, N.A. 5.510% 04/11/01................. 200,020
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ CERTIFICATES OF DEPOSIT -- DOMESTIC -- (CONTINUED) Comerica Bank, N.A. $ 125,000 5.125%(+) 04/01/01(++)............ $ 124,978 145,000 5.130%(+) 04/01/01(++)............ 144,987 250,000 4.978%(+) 04/20/01(++)............ 249,968 100,000 First Union National Bank 5.293%(+) 04/05/01(++).......... 99,989 100,000 Toronto-Dominion Bank 6.240% 12/11/01................. 99,980 ----------- 1,319,922 ----------- CERTIFICATES OF DEPOSIT -- YANKEE -- 8.3% 100,000 ABN AMRO Bank 5.040% 02/04/02................. 99,992 163,000 Bank Austria AG 5.119%(+) 04/15/01(++).......... 162,979 Bank of Novia Scotia, (New York) 200,000 6.780% 04/25/01................... 199,996 100,000 6.620% 11/02/01................... 99,983 Bayerische Hypotheken und Vereinsbank AG, (New York) 225,000 5.030%(+) 04/01/01(++)............ 224,961 200,000 5.030%(+) 04/01/01(++)............ 200,000 250,000 5.080%(+) 04/01/01(++)............ 249,931 200,000 5.115%(+) 04/01/01(++)............ 199,973 250,000 6.370% 06/13/01................... 250,000 Canadian Imperial Bank of Commerce, (New York) 100,000 5.105%(+) 04/01/01(++)............ 99,984 100,000 5.118%(+) 04/01/01(++)............ 99,987 200,000 6.620% 11/02/01................... 199,966 Commerzbank AG, (New York) 300,000 6.780% 04/25/01................... 299,993 250,000 5.000% 04/26/01................... 249,995 150,000 5.015%(+) 04/29/01(++)............ 149,985 75,000 6.875% 08/10/01................... 74,994 Credit Agricole, (New York) 200,000 6.820% 04/27/01................... 199,997 195,000 6.890% 08/31/01................... 194,990 150,000 5.080% 02/06/02................... 149,988 Deutsche Bank AG, (New York) 50,000 5.110%(+) 04/01/01(++)............ 49,993 200,000 6.720% 10/10/01................... 199,970 250,000 6.620% 11/02/01................... 249,958 75,000 Dresdner Bank AG 5.220% 02/19/02................. 75,000 200,000 Landesbank Hessen-Thuringen Girozentrale, (New York) 6.885% 04/30/01................. 199,998 50,000 Rabobank Nederland 5.000% 02/05/02................. 49,996 50,000 Rabobank Nederland, (New York) 6.610% 11/02/01................. 49,992 250,000 Royal Bank of Canada, (New York) 6.210% 12/11/01................. 249,934 100,000 United Bank of Switzerland, (New York) 6.820% 04/27/01................. 99,999
SEE NOTES TO FINANCIAL STATEMENTS. 2 7 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ CERTIFICATES OF DEPOSIT -- YANKEE -- (CONTINUED) $ 100,000 Westdeutsche Landesbanken, Girozentrale 5.250% 02/15/02................. $ 100,000 ----------- 4,732,534 ----------- TIME DEPOSITS -- EURO -- 8.3% 700,000 Bayerische Hypotheken und Verinsbank AG 5.438% 04/02/01................. 700,000 500,000 Canadian Imperial Bank of Commerce 5.500% 04/02/01................. 500,000 Credit Agricole 350,000 5.438% 04/02/01................... 350,000 500,000 5.500% 04/02/01................... 500,000 700,000 Deutsche Bank 5.375% 04/02/01................. 700,000 875,000 Key Bank 5.250% 04/02/01................. 875,000 1,100,000 Societe Generale 5.375% 04/02/01................. 1,100,000 ----------- 4,725,000 ----------- TOTAL BANK OBLIGATIONS (Cost $16,132,247).............. 16,132,247 ----------- CORPORATE OBLIGATIONS -- 47.0% COMMERCIAL PAPER -- 27.4% Amstel Funding Corporation 280,876 Discount note 04/26/01#......... 279,902 100,000 Discount note 05/09/01#........... 99,440 98,460 Discount note 05/16/01#........... 97,811 202,838 Discount note 06/12/01#........... 200,834 225,000 Discount note 06/15/01#........... 222,684 AT&T Corporation 200,000 5.699%(+) 04/13/01(++)#........... 200,000 650,000 5.086%(+) 04/19/01(++)#........... 650,000 350,000 Discount note 04/30/01............ 348,514 75,000 Discount note 05/15/01............ 74,489 125,000 7.270% 06/14/01#.................. 125,000 121,177 Barton Capital Corporation Discount note 04/12/01#......... 120,993 Bavaria TRR Corporation 300,000 Discount note 04/10/01#........... 299,619 250,000 Discount note 04/24/01#........... 249,205 140,000 Ciesco LP Discount note 05/07/01.......... 139,271 500,000 Citibank Capital Markets Assets LLC Discount note 04/02/01#......... 499,924 50,000 Computer Sciences Corporation 5.256%(+) 04/27/01(++).......... 50,000 100,000 Corporate Receivables Corporation Discount note 05/08/01#......... 99,464 200,000 Countrywide Home Loans, Inc. Discount note 04/26/01.......... 199,294 1,524,292 Edison Securitization LLC Discount note 04/02/01#......... 1,524,062 Falcon Asset Securitization Corporation 100,000 Discount note 04/11/01#........... 99,856 305,060 Discount note 04/27/01#........... 303,945 146,000 Discount note 05/08/01#........... 145,245
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) $ 100,000 Ford Motor Credit Company Discount note 05/04/01.......... $ 99,538 100,000 Four Winds Funding Corporation Discount note 04/26/01#......... 99,653 Galaxy Funding Corporation 200,000 Discount note 04/12/01#........... 199,681 330,000 Discount note 05/15/01#........... 327,893 75,000 Discount note 05/18/01#........... 74,489 250,000 Discount note 06/06/01#........... 247,722 150,000 GE Capital International Funding, Inc. Discount note 05/10/01#......... 149,038 Greyhawk Funding LLC 225,000 Discount note 04/12/01#........... 224,645 150,000 Discount note 04/19/01#........... 149,625 100,000 Discount note 04/20/01#........... 99,733 257,900 Discount note 04/26/01#........... 257,001 45,000 Discount note 06/15/01#........... 44,500 430,000 Johnson Controls, Inc. Discount note 04/02/01#......... 429,933 Jupiter Securitization Corporation 317,709 Discount note 04/10/01#........... 317,295 150,000 Discount note 04/11/01#........... 149,783 151,535 Discount note 04/12/01#........... 151,293 126,301 Discount note 04/16/01#........... 126,034 59,835 Discount note 04/18/01#........... 59,691 175,000 Lehman Brothers Holdings Inc. Discount note 06/28/01.......... 172,273 Lone Star Funding LLC 130,000 Discount note 06/08/01#........... 128,772 100,000 Discount note 06/13/01#........... 98,998 Mitsubishi International Corporation 25,000 Discount note 04/25/01............ 24,908 50,000 Discount note 04/26/01............ 49,809 70,000 Discount note 05/14/01............ 69,572 100,000 Discount note 05/24/01............ 99,270 MOAT Funding LLC 100,000 Discount note 04/26/01#........... 99,563 150,000 Discount note 04/30/01#........... 149,389 200,000 Discount note 05/15/01#........... 198,409 Morgan Stanley Dean Witter and Company 500,000 Discount note 04/11/01............ 499,299 500,000 Discount note 05/15/01............ 496,944 Moriarty Ltd. 175,000 Discount note 05/29/01#........... 173,528 150,000 Discount note 06/18/01#........... 148,258 Ness LLC 94,207 Discount note 05/15/01#........... 93,605 66,984 Discount note 06/15/01#........... 66,119 North Coast Funding LLC 75,000 Discount note 06/12/01#........... 74,193 113,000 Discount note 06/25/01#........... 111,579 100,000 Paradigm Funding LLC Discount note 04/20/01#......... 99,733 Park Avenue Receivables 100,000 Discount note 04/23/01#........... 99,696 53,755 Discount note 05/11/01#........... 53,456
SEE NOTES TO FINANCIAL STATEMENTS. 3 8 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) Pennine Funding LLC $ 100,000 Discount note 04/12/01#........... $ 99,842 140,000 Discount note 05/23/01#........... 138,942 100,000 Discount note 05/24/01#........... 99,230 500,000 Salomon Smith Barney Holdings Inc. Discount note 04/19/01.......... 498,755 150,000 Surrey Funding Corporation Discount note 05/03/01#......... 149,324 66,242 Thames Asset Global Securitization Discount note 04/09/01#......... 66,165 400,000 Trident Capital Finance, Inc. Discount note 04/25/01#......... 398,640 214,800 UBS Finance (Delaware) Inc. Discount note 04/03/01.......... 214,736 500,000 Unilever Capital Corporation 5.110%(+) 06/07/01(++)#......... 500,000 500,000 Venture Business Trust Discount note 04/02/01#......... 499,925 400,000 Verizon Global Funding Corporation 5.064%(+) 06/15/01(++)#......... 400,000 Victory Receivables Corporation 103,064 Discount note 04/17/01#........... 102,831 144,666 Discount note 04/20/01#........... 144,283 150,000 World Omni Vehicle Leasing, Inc. Discount note 04/12/01#......... 149,761 ----------- 15,706,906 ----------- CORPORATE BONDS AND NOTES -- 19.6% American Honda Finance Corporation 100,000 5.275%(+) 04/07/01(++)##........ 100,000 100,000 5.224%(+) 04/12/01(++)............ 100,000 225,000 5.650%(+) 04/12/01(++)##.......... 225,000 50,000 5.046%(+) 04/19/01(++)............ 50,000 50,000 4.998%(+) 04/20/01(++)............ 50,000 100,000 5.008%(+) 04/20/01(++)##.......... 100,000 200,000 5.060%(+) 04/24/01(++)##.......... 200,000 100,000 5.058%(+) 04/30/01(++)............ 100,000 Bear, Stearns and Company, Inc., MTN 200,000 5.230%(+) 04/01/01(++)............ 200,000 250,000 5.250%(+) 04/01/01(++)............ 250,000 50,000 7.150% 05/03/01##................. 50,000 Beta Finance, Inc. 75,000 4.870%(+) 04/03/01(++)##.......... 75,000 100,000 4.905%(+) 04/03/01(++)##.......... 100,000 75,000 6.850% 04/24/01##................. 75,000 100,000 7.200% 05/08/01##................. 100,000 85,000 7.210% 06/11/01##................. 85,000 50,000 Caterpillar, Inc. 5.124%(+) 06/01/01.............. 50,000 CC (USA) Inc. 50,000 4.865%(+) 04/03/01(++)##.......... 50,000 100,000 6.850% 04/17/01##................. 100,000 85,000 7.210% 06/11/01##................. 85,000 CIT Group Inc., MTN 175,000 5.150%(+) 04/01/01(++)............ 174,988 265,000 5.033%(+) 06/06/01................ 264,976 100,000 Commerzbank AG 5.000% 02/05/02................. 99,992
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ CORPORATE BONDS AND NOTES -- (CONTINUED) $ 70,000 Computer Sciences Corporation 5.256%(+) 04/29/01(++).......... $ 70,000 25,000 Constellation Energy Group 4.960%(+) 06/21/01(++)##........ 25,000 150,000 Credit Suisse First Boston, Inc. 4.998%(+) 04/20/01(++).......... 149,994 50,000 Dresdner Bank AG 5.139%(+) 06/04/01(++).......... 50,026 Ford Motor Credit Company 400,000 5.104%(+) 06/15/01(++)............ 400,001 75,000 5.063%(+) 06/19/01(++)............ 75,040 General Motors Acceptance Corporation 225,000 5.286%(+) 04/12/01(++)............ 225,000 10,000 5.909%(+) 04/16/01(++)............ 10,006 47,900 5.698%(+) 04/29/01(++)............ 47,912 111,587 5.723%(+) 04/30/01(++)............ 111,426 50,000 5.514%(+) 06/01/01(++)............ 50,036 25,000 5.160%(+) 06/12/01(++)............ 25,024 41,000 5.214%(+) 06/15/01(++)............ 41,018 400,000 4.983%(+) 06/19/01(++)............ 400,001 Goldman Sachs Group, Inc. 275,000 6.590% 05/10/01................... 275,000 175,000 5.110% 05/15/01................... 175,000 150,000 6.830% 06/04/01(--)............... 150,000 250,000 5.260% 06/18/01................... 250,000 225,000 5.510% 07/17/01................... 225,000 150,000 Household Finance Corporation 5.195%(+) 04/16/01(++).......... 150,000 100,000 K2 (USA) LLC 5.164%(+) 04/15/01(++)##........ 100,000 KeyCorp 150,000 5.581%(+) 04/24/01(++)............ 150,000 150,000 5.580%(+) 04/26/01(++)............ 149,981 50,000 5.568%(+) 04/30/01(++)............ 50,000 100,000 5.369%(+) 05/15/01(++)............ 99,998 150,000 5.373%(+) 05/21/01(++)............ 149,980 100,000 5.034%(+) 06/15/01(++)............ 99,973 Lehman Brothers Holdings Inc. 250,000 5.470%(+) 04/01/01(++)............ 250,000 250,000 5.264%(+) 04/12/01(++)............ 250,000 100,000 6.279%(+) 04/19/01(++)............ 100,312 Links Finance LLC 100,000 5.100%(+) 04/01/01(++)##.......... 100,000 100,000 5.150%(+) 04/16/01(++)##.......... 100,000 100,000 5.040%(+) 04/26/01(++)##.......... 99,987 125,000 Merck & Company, Inc. 5.100% 02/22/02................. 125,000 Merrill Lynch and Company 100,000 5.350%(+) 04/01/01(++)............ 99,998 200,000 5.350%(+) 04/01/01(++)............ 199,996 100,000 5.036%(+) 04/19/01(++)............ 100,000 100,000 Minnesota Mining and Manufacturing Company 6.325% 12/12/01................. 100,000 Morgan Stanley Dean Witter and Company 150,000 5.310%(+) 04/01/01(++)............ 150,000 300,000 5.189%(+) 04/15/01(++)............ 300,000
SEE NOTES TO FINANCIAL STATEMENTS. 4 9 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ CORPORATE BONDS AND NOTES -- (CONTINUED) National City Bank $ 45,000 5.311%(+) 04/02/01(++)............ $ 45,014 300,000 5.273%(+) 04/04/01(++)............ 300,000 250,000 National Rural Utilities Cooperative Finance Corporation 5.100% 02/05/02................. 250,000 150,000 Nationwide Building Society 5.234%(+) 04/12/01(++).......... 150,000 Northern Rock plc 200,000 5.234%(+) 04/12/01(++)............ 200,000 250,000 6.870% 04/20/01##................. 250,000 SBC Communications Inc. 350,000 5.183%(+) 04/14/01(++)............ 349,983 135,000 5.475%(+) 05/01/01##.............. 135,000 Sigma Finance, Inc. 100,000 5.155%(+) 04/01/01(++)##.......... 100,000 200,000 5.200%(+) 04/01/01(++)##.......... 200,000 75,000 4.865%(+) 04/03/01(++)##.......... 75,000 150,000 4.865%(+) 04/03/01(++)##.......... 150,000 200,000 5.184%(+) 04/15/01(++)##.......... 200,000 200,000 7.470% 06/05/01##................. 200,000 96,903 SMM Trust Series 1999-J 5.649%(+) 04/22/01(++).......... 96,903 132,000 Unilever Capital Corporation 4.931%(+) 06/20/01(++).......... 132,114 ----------- 11,199,679 ----------- TOTAL CORPORATE OBLIGATIONS (Cost $26,906,585).............. 26,906,585 ----------- FUNDING AGREEMENTS -- 1.0% First Allmerica Financial Life Insurance Company 50,000 5.560%(+) 04/01/01(++)(--)........ 50,000 50,000 6.849%(+) 05/15/01(++)(--)........ 50,000 50,000 5.006%(+) 06/22/01(++)(--)........ 50,000 50,000 GE Life and Annuity Assurance Company 5.625%(+) 04/01/01(++)(--)...... 50,000 50,000 Jackson National Life Insurance Company 5.150%(+) 06/14/01(++)(--)...... 50,000 60,000 Security Life of Denver Insurance Company 6.471%(+) 04/01/01(++)(--)...... 60,000 Transamerica Occidental Life Insurance Company 125,000 5.480%(+) 04/01/01(++)(--)........ 125,000 117,000 5.520%(+) 04/01/01(++)(--)........ 117,000 20,000 5.660%(+) 05/01/01(++)(--)........ 20,000 ----------- TOTAL FUNDING AGREEMENTS (Cost $572,000)................. 572,000 -----------
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 0.3% ILLINOIS -- 0.1% $ 28,800 Illinois Student Assistance Commission Revenue, Series 1990B, (GTD STD LNS, First National Bank of Chicago LOC), 5.160%(+) 04/04/01(++).......... $ 28,800 MISSOURI -- 0.0%+ 16,000 Missouri State Economic Development Export Revenue, (Biocraft Labs, Inc. Project) Series 1989, (PNC Bank LOC), 5.250%(+) 04/04/01(++).......... 16,000 VIRGINIA -- 0.2% 140,000 Virginia State Housing Development Authority Commonwealth Revenue, Series 1996E, 5.200%(+) 04/04/01(++).......... 140,000 ----------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $184,800)................. 184,800 ----------- REPURCHASE AGREEMENTS -- 22.9% 6,275 Agreement with Bank of New York, 5.250% dated 03/30/01 to be repurchased at $6,278 on 04/02/01 collateralized by: $6,401 U.S. Treasury Notes, 5.750% due 11/15/05............. 6,275 500,000 Agreement with Chase Securities Inc., 5.420% dated 03/30/01 to be repurchased at $500,226 on 04/02/01 collateralized by: $510,001 Various Commercial Paper, 0.000% - 5.260% due 04/30/01 - 07/20/01............. 500,000 400,000 Agreement with Chase Securities Inc., 5.450% dated 03/30/01 to be repurchased at $400,182 on 04/02/01 collateralized by: $408,003 Various Commercial Paper, 0.000% - 5.210% due 04/20/01 - 08/21/01............. 400,000 100,000 Agreement with Credit Suisse First Boston Corporation, 5.350% dated 03/30/01 to be repurchased at $100,045 on 04/02/01 collateralized by: $102,113 GNMA, 6.000% - 10.000% due 10/15/02 - 11/15/30; $32 GNMA II, 7.500% due 07/20/28......... 100,000 750,000 Agreement with First Union Securities, Inc., 5.500% dated 03/30/01 to be repurchased at $750,344 on 04/02/01 collateralized by: $228,491 FNMA, 4.750% due 11/14/03; $26,511 FHLB, 5.000%-6.750% due 02/15/02-02/28/03; $2,735 U.S. Treasury Notes, 6.625% due 06/30/01; $507,266 U.S. Treasury Bonds, 9.625%-9.875% due 02/15/02-11/15/15............... 750,000
SEE NOTES TO FINANCIAL STATEMENTS. 5 10 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $1,000,000 Agreement with Goldman Sachs and Company, 5.440% dated 03/30/01 to be repurchased at $1,000,453 on 04/02/01 collateralized by: $1,734,000 Various Commercial Paper, due 04/02/01-08/01/01.... $ 1,000,000 700,000 Agreement with Goldman Sachs and Company, 5.450% dated 03/30/01 to be repurchased at $700,318 on 04/02/01 collateralized by: $1,734,000 Various Commercial Paper, due 04/02/01-08/01/01.... 700,000 500,000 Agreement with Merrill Lynch Government Securities, Inc., 5.550% dated 03/30/01 to be repurchased at $500,231 on 04/02/01 collateralized by: $11,478 BECCS, 13.875%-14.000% due 05/15/11-11/15/11; $1,163 U.S. Treasury Strips, TIGR, Interest Receipt, due 05/15/01- 11/15/06; $13,357 FHLMC, due 07/15/01-02/15/08; $1,698 U.S. Treasury Strips, Interest Only, due 07/31/01-12/31/02; $482,308 U.S. Treasury Strips, Principal Only, 4.875%-6.625% due 03/31/01-05/31/03............... 500,000 6,500,000 Agreement with Salomon Smith Barney Inc., 5.400% dated 03/30/01 to be repurchased at $6,502,925 on 04/02/01 collateralized by: $3,845,375 FNMA, 0.000%-10.500% due 12/01/05-01/01/37; $2,799,029 FHLMC, 5.500%-8.656% due 08/01/02-01/01/33............... 6,500,000 1,675,000 Agreement with UBS Warburg, 5.400% dated 03/30/01 to be repurchased at $1,675,754 on 04/02/01 collateralized by: $504,179 FHLMC, 0.000%-6.860% due 05/04/01-07/24/01; $1,204,324 FNMA, 0.000%-6.250% due 04/02/01-02/17/11............... 1,675,000 500,000 Agreement with UBS Warburg, 5.450% dated 03/30/01 to be repurchased at $500,227 on 04/02/01 collateralized by: $219,585 FHLB, due 06/01/01; $290,416 FNMA, 6.840% due 07/18/01....... 500,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $ 500,000 Agreement with UBS Warburg, 5.500% dated 03/30/01 to be repurchased at $500,229 on 04/02/01 collateralized by: $48,422 FHLB, 6.750% due 02/15/02; $238,884 FHLMC, due 05/17/01-06/21/01; $222,695 FNMA, due 09/27/01-12/27/01............... $ 500,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $13,131,275).............. 13,131,275 -----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 0.2% (Cost $109,967) 110,000 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) CERTIFICATES -- 0.2% 4.970%(+) 04/01/01(++)......... 109,967 ----------- TOTAL INVESTMENTS (Cost $57,136,874*)..... 99.8% 57,136,874 ----------- OTHER ASSETS AND LIABILITIES (NET)....... 0.2% Cash............................. $ 14 Receivable for Fund shares sold........................... 31,446 Interest receivable.............. 328,955 Payable for Fund shares redeemed....................... (389) Investment advisory fee payable........................ (5,293) Administration fee payable....... (2,023) Shareholder servicing and distribution fees payable...... (13,357) Distributions payable............ (76,362) Payable for investment securities purchased...................... (151,867) Accrued Trustees' fees and expenses....................... (135) Accrued expenses and other liabilities.................... (5,787) ----------- TOTAL OTHER ASSETS AND LIABILITIES (NET).............. 105,202 ----------- NET ASSETS................ 100.0% $57,242,076 =========== NET ASSETS CONSIST OF: Undistributed net investment income......................... $ 25 Accumulated net realized loss on investments sold............... (2,422) Paid-in capital.................. 57,244,473 ----------- NET ASSETS....................... $57,242,076 ===========
SEE NOTES TO FINANCIAL STATEMENTS. 6 11 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE - ------------------------------------------------------------ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($20,037,526,376 / 20,038,463,879 shares outstanding)............ $1.00 ----- ----- INSTITUTIONAL SHARES: ($651,115,862 / 651,114,732 shares outstanding)............ $1.00 ----- ----- TRUST CLASS SHARES: ($2,676,203,509 / 2,676,195,478 shares outstanding)............ $1.00 ----- ----- LIQUIDITY CLASS SHARES: ($1,476,883,211 / 1,476,877,192 shares outstanding)............ $1.00 ----- ----- ADVISER CLASS SHARES: ($5,939,163,184 / 5,939,872,154 shares outstanding)............ $1.00 ----- ----- INVESTOR CLASS SHARES: ($7,585,824,717 / 7,586,607,222 shares outstanding)............ $1.00 ----- ----- MARKET CLASS SHARES: ($3,342,882,324 / 3,342,868,952 shares outstanding)............ $1.00 ----- ----- DAILY CLASS SHARES: ($14,589,888,144 / 14,590,349,096 shares outstanding)............ $1.00 ----- ----- SERVICE CLASS SHARES: ($913,511,947 / 913,546,841 shares outstanding)............ $1.00 ----- ----- INVESTOR B SHARES: ($27,360,446 / 27,360,396 shares outstanding)................... $1.00 ----- ----- INVESTOR C SHARES: ($1,716,511 / 1,716,509 shares outstanding)................... $1.00 ----- -----
- --------------- * Aggregate cost for federal tax purposes. (+) Floating rate security. The interest rate shown reflects the rate in effect at March 31, 2001. (++) Reset date. Interest rates reset either daily, weekly, monthly, or quarterly. (--) Restricted Security (Note 5). # Security not registered under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. ## Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. + Amount represents less than 0.1%.
SEE NOTES TO FINANCIAL STATEMENTS. 7 12 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- ASSET-BACKED SECURITIES -- 6.7% ASSET-BACKED -- AUTO LOANS -- 5.6% $ 17,970 AmSouth Auto Trust, Series 2000-1, Class A1, 6.745%(+) 04/15/01(++)........... $ 17,970 9,884 BMW Vehicle Lease Trust, Series 2000-A, Class A1, 6.674% 10/25/01.................. 9,884 42,895 Ford Credit Auto Owner Trust, Series 2000-G, Class A2, 6.688%(+) 04/15/01(++)........... 42,895 1,615 Ford Credit Auto Owner Trust, Series 2001-A, Class A1, 5.776% 05/15/01.................. 1,615 120,500 Ford Credit Auto Owner Trust, Series 2001-A, Class A2, 5.494% 10/15/01.................. 120,500 145,000 Ford Credit Auto Owner Trust, Series 2001-B, Class A2, 4.901%(+) 04/15/01(++)........... 144,999 22,301 Honda Auto Receivables Owner Trust, Series 2000-1, Class A1, 6.711%(+) 04/15/01(++)........... 22,301 12,976 MMCA Automobile Trust, Series 2000-2, Class A1, 6.728%(+) 04/15/01(++)........... 12,976 21,098 Nissan Auto Receivables Owner Trust, Series 2000-C, Class A1, 6.700%(+) 04/15/01(++)........... 21,098 46,751 Nissan Auto Receivables Owner Trust, Series 2001-A, Class A1, 5.523% 01/15/02.................. 46,751 14,857 Onyx Acceptance Auto Trust, Series 2000-D, Class A1, 6.703%(+) 04/15/01(++)........... 14,857 43,859 Onyx Acceptance Auto Trust, Series 2001-A, Class A1, 5.314% 03/15/02.................. 43,859 12,797 Peoplefirst.com Auto Receivables Owners Trust, Series 2000-2, Class A1, 6.540% 12/15/01##................ 12,797 22,035 WFS Financial Owner Trust, Series 2000-D, Class A1, 6.698% 10/20/01.................. 22,035 28,531 World Omni Auto Receivables Trust, Series 2001-A, Class A1, 5.330% 02/20/02.................. 28,531 ----------- 563,068 ----------- ASSET-BACKED -- OTHER -- 1.1% 85,356 CIT Equipment Collateral, Series 2001-1, Class A1, 5.033% 12/20/01.................. 85,357
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- ASSET-BACKED -- OTHER -- (CONTINUED) $ 23,637 Ikon Receivables LLC, Series 2000-2, Class A1, 6.661%(+) 04/15/01(++)........... $ 23,637 ----------- 108,994 ----------- TOTAL ASSET-BACKED SECURITIES (Cost $672,062).................. 672,062 ----------- BANK OBLIGATIONS -- 18.8% BANK NOTES -- 6.4% 50,000 American Express Centurion Bank 5.170%(+) 04/01/01(++)........... 49,999 Bank One, N.A. 50,000 7.170% 05/08/01.................... 50,000 40,000 4.930%(+) 06/21/01(++)............. 40,001 100,000 Comerica Bank, N.A. 5.150%(+) 04/01/01(++)........... 99,983 First Union National Bank 50,000 5.170%(+) 04/01/01(++)............. 50,000 50,000 5.180%(+) 04/01/01(++)............. 50,000 50,000 5.370%(+) 04/01/01(++)............. 50,000 50,000 5.136%(+) 04/23/01(++)............. 50,017 50,000 5.060%(+) 06/12/01(++)............. 50,000 30,000 First USA Bank 5.409%(+) 05/10/01(++)........... 29,999 30,000 Key Bank, N.A. 5.960%(+) 04/26/01(++)........... 30,062 50,000 National City Bank of Indiana 5.100%(+) 04/01/01(++)........... 49,988 40,000 US Bank, N.A. 5.135%(+) 04/01/01(++)........... 39,997 ----------- 640,046 ----------- CERTIFICATES OF DEPOSIT -- DOMESTIC -- 0.5% 50,000 Citibank, N.A. 5.510% 04/11/01.................. 50,005 ----------- CERTIFICATES OF DEPOSIT -- YANKEE -- 8.4% 50,000 ABN AMRO Bank 5.040% 02/04/02.................. 49,996 50,000 Bank Austria 5.150%(+) 04/01/01(++)........... 49,998 Bayerische Hypotheken und Vereinsbank AG, (New York) 50,000 5.030%(+) 04/01/01(++)............. 50,000 25,000 5.030%(+) 04/01/01(++)............. 24,996 200,000 5.080%(+) 04/01/01(++)............. 199,944 Commerzbank AG, (New York) 22,000 6.820% 04/27/01.................... 22,000 25,000 6.875% 08/10/01.................... 24,998 Credit Agricole, (New York) 75,000 6.890% 08/31/01.................... 74,997 25,000 5.080% 02/06/02.................... 24,998 100,000 Deutsche Bank AG, (New York) 5.110%(+) 04/01/01(++)........... 99,985 75,000 Dresdner Bank AG 5.220% 02/19/02.................. 75,000 50,000 Landesbank Hessen-Thuringen Girozentrale, (New York) 6.885% 04/30/01.................. 49,999
SEE NOTES TO FINANCIAL STATEMENTS. 8 13 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- YANKEE -- (CONTINUED) $ 50,000 Rabobank Nederland 5.000% 02/05/02.................. $ 49,996 50,000 Rabobank Nederland, (New York) 6.610% 11/02/01.................. 49,992 ----------- 846,899 ----------- TIME DEPOSITS -- EURO -- 3.5% 350,000 Credit Agricole 5.438% 04/02/01.................. 350,000 ----------- TOTAL BANK OBLIGATIONS (Cost $1,886,950).................. 1,886,950 ----------- CORPORATE OBLIGATIONS -- 56.8% COMMERCIAL PAPER -- 35.9% Abbott Laboratories 23,442 Discount note 04/18/01#.......... 23,387 27,827 Discount note 04/24/01#.......... 27,738 100,000 Discount note 04/25/01#.......... 99,668 Amstel Funding Corporation 52,663 Discount note 04/26/01#.......... 52,480 96,708 Discount note 05/09/01#.......... 96,166 100,000 Discount note 06/15/01#.......... 98,971 AT&T Corporation 150,000 5.086%(+) 04/19/01(++)#.......... 150,000 50,000 Discount note 04/30/01........... 49,788 25,000 Discount note 05/15/01........... 24,830 90,082 Atlantis One Funding Corporation Discount note 05/15/01#.......... 89,507 95,414 Barton Capital Corporation Discount note 04/26/01#.......... 95,084 125,121 Bavaria TRR Corporation Discount note 04/10/01#.......... 124,962 192,000 Citibank Capital Markets Assets LLC Discount note 04/02/01#.......... 191,972 50,000 Corporate Receivables Corporation Discount note 05/08/01#.......... 49,732 300,000 Edison Securitization LLC Discount note 04/02/01#.......... 299,956 Falcon Asset Securitization Corporation 79,960 Discount note 04/11/01#.......... 79,845 66,439 Discount note 04/12/01#.......... 66,334 100,000 Four Winds Funding Corporation Discount note 04/26/01#.......... 99,653 Galaxy Funding Corporation 85,000 Discount note 05/15/01#.......... 84,456 126,000 Discount note 06/06/01#.......... 124,852 Greyhawk Funding LLC 150,000 Discount note 04/18/01#.......... 149,647 50,000 Discount note 04/19/01#.......... 49,875 50,000 Discount note 06/07/01#.......... 49,423 Jupiter Securitization Corporation 147,687 Discount note 04/20/01#.......... 147,291 90,635 Discount note 04/26/01#.......... 90,322 Lone Star Funding LLC 161,372 Discount note 04/27/01#.......... 160,789 52,230 Discount note 06/13/01#.......... 51,707 35,000 MOAT Funding LLC Discount note 04/26/01#.......... 34,847
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- COMMERCIAL PAPER -- (CONTINUED) Moriarty Ltd. $ 50,000 Discount note 05/29/01#.......... $ 49,580 50,000 Discount note 06/18/01#.......... 49,419 61,320 Ness LLC Discount note 05/14/01........... 60,937 30,400 Newcastle Certificate Program Discount note 04/27/02........... 30,293 100,000 North Coast Funding LLC Discount note 04/23/01#.......... 99,695 100,000 Paradigm Funding LLC Discount note 04/20/01#.......... 99,733 100,000 Park Avenue Receivables Discount note 05/11/01#.......... 99,444 Pennine Funding LLC 100,000 Discount note 04/09/01#.......... 99,884 40,000 Discount note 05/24/01#.......... 39,692 100,000 Surrey Funding Corporation Discount note 05/03/01#.......... 99,549 50,000 Toyota Motor Credit Corporation Discount note 04/11/01#.......... 49,929 63,100 Trident Capital Finance, Inc. Discount note 04/25/01#.......... 62,885 50,000 Unilever Capital Corporation 5.110%(+) 06/07/01(++)#.......... 50,000 Variable Funding Capital 60,000 Corporation Discount note 05/14/01#.......... 59,625 ----------- 3,613,947 ----------- CORPORATE BONDS AND NOTES -- 20.9% Beta Finance, Inc. 75,000 4.870%(+) 04/03/01(++)##......... 75,000 25,000 6.850% 04/24/01##................ 25,000 CC (USA) Inc. 100,000 4.865%(+) 04/03/01(++)##......... 100,000 20,000 6.850% 04/17/01##................ 20,000 50,000 Dresdner Bank AG 5.139%(+) 06/04/01(++)........... 50,026 50,000 Ford Motor Credit Company 5.104%(+) 06/15/01(++)........... 50,000 General Motors Acceptance Corporation 50,000 5.286%(+) 04/12/01(++)........... 50,000 20,000 5.488%(+) 05/14/01(++)........... 20,011 45,000 5.514%(+) 06/01/01(++)........... 45,033 50,000 4.983%(+) 06/19/01(++)........... 50,000 Goldman Sachs Group, Inc. 75,000 6.590% 05/10/01.................. 75,000 50,000 5.110% 05/15/01.................. 50,000 75,000 6.830% 06/04/01(--).............. 75,000 25,000 5.510% 07/17/01.................. 25,000 50,000 K2 (USA) LLC 5.008%(+) 04/20/01(++)##......... 50,000 Links Finance LLC 100,000 5.164%(+) 04/15/01(++)........... 100,000 50,000 5.150%(+) 04/16/01(++)##......... 50,000 Merrill Lynch and Company 75,000 5.350%(+) 04/01/01(++)........... 74,999 30,000 5.350%(+) 04/01/01(++)........... 29,999 50,000 5.036%(+) 04/19/01(++)........... 50,000 12,500 5.945%(+) 05/26/01(++)........... 12,553
SEE NOTES TO FINANCIAL STATEMENTS. 9 14 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CORPORATE BONDS AND NOTES -- (CONTINUED) $ 75,000 Minnesota Mining and Manufacturing Company 6.325% 12/12/01.................. $ 75,000 Morgan Stanley Dean Witter and Company 150,000 5.475%(+) 04/01/01(++)............. 150,000 100,000 5.189%(+) 04/15/01(++)............. 100,000 50,000 National Rural Utilities Cooperative Finance Corporation 5.100% 02/05/02.................. 50,000 SBC Communications Inc. 150,000 5.183%(+) 04/14/01(++)............. 149,993 85,000 5.475%(+) 05/01/01##............... 85,000 Sigma Finance, Inc. 50,000 5.155%(+) 04/01/01(++)##........... 50,000 50,000 6.850% 04/17/01##.................. 50,000 135,000 SMM Trust Series 2000-M 5.040%(+) 06/13/01(++)........... 135,000 100,000 Toyota Motor Credit Corporation 5.050%(+) 04/01/01(++)........... 99,992 74,400 Unilever Capital Corporation 4.931%(+) 06/20/01(++)........... 74,464 ----------- 2,097,070 ----------- TOTAL CORPORATE OBLIGATIONS (Cost $5,711,017).................. 5,711,017 ----------- MUNICIPAL BONDS AND NOTES -- 1.4% (Cost $145,020) MISSISSIPPI -- 1.4% 145,000 Mississippi State GO, Series 2001A, 5.200% 03/16/02.................. 145,020 ----------- REPURCHASE AGREEMENTS -- 15.5% 11,603 Agreement with Bank of New York, 5.250% dated 03/30/01 to be repurchased at $11,608 on 04/02/01 collateralized by: $11,836 U.S. Treasury Notes, 5.750% due 11/15/05.............. 11,603 500,000 Agreement with Barclays Capital Inc., 5.400% dated 03/30/01 to be repurchased at $500,225 on 04/02/01 collateralized by: $91,885 FNMA, 0.000%-6.750% due 05/17/01-11/15/30; $291,939 FHLMC, 0.000%-7.780% due 04/06/01-02/15/04; $111,088 FHLB, 0.000%-6.750% due 09/17/01-02/13/04; $15,087 FFCB, 5.150% due 03/05/04.............. 500,000 250,000 Agreement with Chase Securities Inc., 5.420% dated 03/30/01 to be repurchased at $250,113 on 04/02/01 collateralized by: $255,004 Various Commercial Paper, 0.000%-5.070% due 04/20/01-06/14/01................ 250,000 200,000 Agreement with Goldman Sachs and Company, 5.450% dated 03/30/01 to be repurchased at $200,091 on 04/02/01 collateralized by: $204,001 Various Commercial Paper, due 04/12/01-05/14/01..... 200,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- REPURCHASE AGREEMENTS -- (CONTINUED) $200,000 Agreement with Salomon Smith Barney Inc., 5.400% dated 03/30/01 to be repurchased at $200,090 on 04/02/01 collateralized by: $167,233 FNMA, 5.500%-7.500% due 01/01/14-04/01/31; $37,277 FHLMC, 5.500% due 02/01/14-03/01/14..... $ 200,000 200,000 Agreement with UBS Warburg, 5.450% dated 03/30/01 to be repurchased at $200,091 on 04/02/01 collateralized by: $89,875 U.S. Treasury Bills, due 04/19/01; $114,127 FHLMC, due 05/24/01..... 200,000 200,000 Agreement with UBS Warburg, 5.500% dated 03/30/01 to be repurchased at $200,092 on 04/02/01 collateralized by: $204,004 U.S. Treasury Bills, due 04/19/01..... 200,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost: $1,561,603)................. 1,561,603 ----------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 1.0% FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) CERTIFICATES -- 1.0% 50,000 4.970%(+) 04/01/01(++)............. 49,985 50,000 4.983%(+) 04/01/01(++)............. 49,997 ----------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (Cost $99,982)..................... 99,982 ----------- TOTAL INVESTMENTS (Cost $10,076,634*)......... 100.2% 10,076,634 ----------- OTHER ASSETS AND LIABILITIES (NET)......... (0.2)% Cash............................... $ 20 Interest receivable................ 44,094 Payable for Fund shares redeemed... (27) Investment advisory fee payable.... (988) Administration fee payable......... (184) Shareholder servicing and distribution fees payable........ (951) Distributions payable.............. (17,873) Payable for investment securities purchased........................ (45,253) Accrued Trustees' fees and expenses......................... (37) Accrued expenses and other liabilities...................... (1,038) ----------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................ (22,237) ----------- NET ASSETS.................. 100.0% $10,054,397 =========== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 28 Accumulated net realized loss on investments sold................. (12) Paid-in capital.................... 10,054,381 ----------- NET ASSETS......................... $10,054,397 ===========
SEE NOTES TO FINANCIAL STATEMENTS. 10 15 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE - ------------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($6,103,253,440 / 6,103,235,924 shares outstanding).............. $1.00 ----- ----- INSTITUTIONAL SHARES: ($574,967,763 / 574,968,339 shares outstanding)..................... $1.00 ----- ----- TRUST CLASS SHARES: ($67,421,556 / 67,421,189 shares outstanding)..................... $1.00 ----- ----- LIQUIDITY CLASS SHARES: ($1,085,231,412 / 1,085,230,809 shares outstanding).............. $1.00 ----- ----- ADVISER CLASS SHARES: ($622,177,420 / 622,177,710 shares outstanding)..................... $1.00 ----- ----- INVESTOR CLASS SHARES: ($90,379,554 / 90,379,297 shares outstanding)..................... $1.00 ----- ----- MARKET CLASS SHARES: ($1,292,997,658 / 1,293,000,010 shares outstanding).............. $1.00 ----- ----- DAILY CLASS SHARES: ($7,561,189 / 7,561,179 shares outstanding)..................... $1.00 ----- ----- SERVICE CLASS SHARES: ($203,160,236 / 203,159,835 shares outstanding)..................... $1.00 ----- ----- INVESTOR B SHARES: ($6,907,007 / 6,907,003 shares outstanding)..................... $1.00 ----- ----- INVESTOR C SHARES: ($339,751 / 339,751 shares outstanding)..................... $1.00 ----- -----
- --------------- * Aggregate cost for federal tax purposes. (+) Floating rate security. The interest rate shown reflects the rate in effect at March 31, 2001. (++) Reset date. Interest rates reset either daily, weekly, monthly, or quarterly. (--) Restricted Security (Note 5). # Security not registered under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. ## Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. SEE NOTES TO FINANCIAL STATEMENTS. 11 16 NATIONS RESERVES MONEY MARKET FUNDS Nations Treasury Reserves STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ U.S. TREASURY OBLIGATIONS -- 35.3% U.S. TREASURY BILLS -- 19.6% $1,240,000 4.960% 04/19/01................... $ 1,237,029 320,000 4.810% 08/09/01(-)................ 314,427 ----------- 1,551,456 ----------- U.S. TREASURY NOTES -- 15.7% 215,000 5.000% 04/30/01(-)................ 214,717 125,000 6.250% 04/30/01(-)................ 124,956 100,000 5.625% 05/15/01(-)................ 99,900 255,000 5.250% 05/31/01(-)................ 254,527 80,000 5.750% 06/30/01(-)................ 79,903 80,000 5.500% 07/31/01(-)................ 79,787 80,000 6.625% 07/31/01(-)................ 80,069 305,000 6.500% 08/31/01(-)................ 306,109 ----------- 1,239,968 ----------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,791,424)............... 2,791,424 ----------- REPURCHASE AGREEMENTS -- 84.6% 370,000 Agreement with ABN AMRO Inc., 5.270% dated 03/30/01 to be repurchased at $370,162 on 04/02/01 collateralized by: $252,537 U.S. Treasury Notes, 4.625%-6.250% due 07/31/02-02/28/03; $124,864 U.S. Treasury Bonds, 8.125%-8.750% due 11/15/08-05/15/21........... 370,000 370,000 Agreement with Barclays Capital Inc., 5.270% dated 03/30/01 to be repurchased at $370,162 on 04/02/01 collateralized by: $5,318 U.S. Treasury Notes, 6.625% due 07/31/01; $148,388 U.S. Treasury Bonds, 6.125% due 08/15/29; $79,103 TRIB, 3.625% due 04/15/28; $144,592 U.S. Treasury Bills, due 06/07/01.... 370,000 370,000 Agreement with Bear Stearns and Company, Inc., 5.370% dated 03/30/01 to be repurchased at $370,166 on 04/02/01 collateralized by: $244,192 GNMA, 5.500%-9.000% due 09/15/17-03/15/31; $135,537 GNMA II, 6.000%-13.000% due 10/20/25-03/20/31............... 370,000 370,000 Agreement with Chase Securities Inc., 5.350% dated 03/30/01 to be repurchased at $370,165 on 04/02/01 collateralized by: $255,043 GNMA, 6.500%-9.000% due 02/15/10-03/15/31; $122,359 GNMA II, 5.000%-13.000% due 12/20/01- 01/20/31........................ 370,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $1,577,746 Agreement with Credit Suisse First Boston Corporation, Interest is payable monthly. The agreement is terminable by the Fund daily. The final maturity date of the agreement is 04/02/01 collateralized by: $1,235,318 U.S. Treasury Strips, Interest Only, due 05/15/01-05/15/24; $393,286 U.S. Treasury Strips, Principal Only, 5.875%-12.000% due 08/15/25-02/15/16++......... $ 1,577,746 140,000 Agreement with Credit Suisse First Boston Corporation, 5.350% dated 03/30/01 to be repurchased at $140,062 on 04/02/01 collateralized by: $144,222 GNMA, 6.500%-9.000% due 05/15/23-11/15/30............... 140,000 75,000 Agreement with First Union Securities, Inc., 5.350% dated 03/30/01 to be repurchased at $75,033 on 04/02/01 collateralized by: $55,597 GNMA, 6.000%-12.000% due 08/15/13- 03/15/31; $20,903 GNMA II, 6.000%-10.500% due 08/20/16- 03/20/31........................ 75,000 120,000 Agreement with First Union Securities Inc., 5.250% dated 03/30/01 to be repurchased at $120,053 on 04/02/01 collateralized by: $122,400 U.S. Treasury Bonds, 8.750%-12.375% due 05/15/04-08/15/20........... 120,000 56,447 Agreement with Goldman Sachs and Company, 5.200% dated 03/30/01 to be repurchased at $56,471 on 04/02/01 collateralized by: $24,627 U.S. Treasury Notes, 6.875% due 05/15/06; $32,950 U.S. Treasury Bills, due 06/07/01........................ 56,447 250,000 Agreement with Lehman Brothers Inc., 5.250% dated 03/30/01 to be repurchased at $250,109 on 04/02/01 collateralized by: $255,001 U.S. Treasury Strips, Principal Only, 6.625%-10.625% due 08/15/15-02/15/27........... 250,000 300,000 Agreement with Merrill Lynch Government Securities Inc., 5.550% dated 03/30/01 to be repurchased at $300,139 on 04/02/01 collateralized by: $306,002 U.S. Treasury Strips, Principal Only, 10.750% due 08/15/05........................ 300,000 325,000 Agreement with Morgan Stanley Dean Witter and Company, 5.020% dated 03/30/01 to be repurchased at $325,136 on 04/02/01 collateralized by: $333,130 U.S. Treasury Notes, 5.700% due 08/15/03........................ 325,000
SEE NOTES TO FINANCIAL STATEMENTS. 12 17 NATIONS RESERVES MONEY MARKET FUNDS Nations Treasury Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $ 380,000 Agreement with Salomon Smith Barney Inc., 5.270% dated 03/30/01 to be repurchased at $380,167 on 04/02/01 collateralized by: $195,928 U.S. Treasury Notes, 5.625%-5.750% due 11/30/02-11/15/05; $191,863 U.S. Treasury Bonds, 6.000%-7.875% due 02/15/21-02/15/26............... $ 380,000 1,250,000 Agreement with Salomon Smith Barney Inc., 5.370% dated 03/30/01 to be repurchased at $1,250,559 on 04/02/01 collateralized by: $847,738 GNMA, 6.000%-16.000% due 11/15/03-03/15/31; $427,262 GNMA II, 5.500%-10.500% due 02/20/02-03/20/31............... 1,250,000 370,000 Agreement with UBS Warburg, 5.270% dated 03/30/01 to be repurchased at $370,162 on 04/02/01 collateralized by: $377,403 U.S. Treasury Bills, due 04/05/01-02/28/02............... 370,000 370,000 Agreement with Westdeutsche Landesbank, Girozentrale, 5.370% dated 03/30/01 to be repurchased at $370,166 on 04/02/01 collateralized by: $172,559 GNMA, 7.000%-7.500% due 06/15/29-03/15/31; $204,841 GNMA II, 6.000%-7.750% due 11/20/23-02/20/31............... 370,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $6,694,193)............... 6,694,193 -----------
TOTAL INVESTMENTS (Cost $9,485,617*)...... 119.9% 9,485,617 ----------- OTHER ASSETS AND LIABILITIES (NET)....... (19.9)% Interest receivable.............. $ 20,454 Payable for reverse repurchase agreements..................... (1,577,746) Investment advisory fee payable........................ (1,023) Administration fee payable....... (216) Shareholder servicing and distribution fees payable...... (2,059) Distributions payable............ (15,848) Accrued Trustees' fees and expenses....................... (79) Accrued expenses and other liabilities.................... (450) ----------- TOTAL OTHER ASSETS AND LIABILITIES (NET).............. (1,576,967) ----------- NET ASSETS................ 100.0% $ 7,908,650 =========== VALUE (000) - ------------------------------------------------------------ NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold............... $ (50) Paid-in capital.................. 7,908,700 ----------- NET ASSETS....................... $ 7,908,650 =========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($1,900,312,040 / 1,900,529,178 shares outstanding)............ $1.00 ----- ----- INSTITUTIONAL SHARES: ($29,572,043 / 29,571,998 shares outstanding)................... $1.00 ----- ----- TRUST CLASS SHARES: ($315,853,599 / 315,847,889 shares outstanding)............ $1.00 ----- ----- LIQUIDITY CLASS SHARES: ($348,849,559 / 348,863,609 shares outstanding)............ $1.00 ----- ----- ADVISER CLASS SHARES: ($1,918,597,222 / 1,919,095,733 shares outstanding)............ $1.00 ----- ----- INVESTOR CLASS SHARES: ($700,202,331 / 700,397,758 shares outstanding)............ $1.00 ----- ----- MARKET CLASS SHARES: ($1,369,948,494 / 1,370,000,010 shares outstanding)............ $1.00 ----- ----- DAILY CLASS SHARES: ($981,837,370 / 981,931,263 shares outstanding)............ $1.00 ----- ----- SERVICE CLASS SHARES: ($343,239,703 / 343,257,977 shares outstanding)............ $1.00 ----- ----- INVESTOR B SHARES: ($237,274 / 237,271 shares outstanding)................... $1.00 ----- -----
- --------------- * Aggregate cost for federal tax purposes. (-) Denotes security, or a portion thereof, subject to repurchase under reverse repurchase agreement as of March 31, 2001. (Note 1) ++ Security segregated as collateral for reverse repurchase agreement. SEE NOTES TO FINANCIAL STATEMENTS. 13 18 NATIONS RESERVES MONEY MARKET FUNDS Nations Government Reserves STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------ U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 99.8% FEDERAL FARM CREDIT BANK (FFCB) -- 1.1% $ 25,000 5.000%(+) 04/01/01(++)............. $ 25,001 6,875 5.960% 04/12/01.................... 6,862 11,963 5.960% 04/20/01.................... 11,925 ---------- 43,788 ---------- FEDERAL HOME LOAN BANK (FHLB) -- 86.5% 125,000 4.945%(+) 04/01/01(++)............. 124,965 60,000 4.970%(+) 04/01/01(++)............. 59,992 100,000 4.980%(+) 04/01/01(++)............. 99,979 230,000 5.111%(+) 04/01/01(++)............. 229,962 100,000 5.150%(+) 04/01/01(++)............. 99,983 2,558 Discount note 04/02/01............. 2,558 53,385 6.660% 04/06/01.................... 53,385 50,000 5.430%(+) 04/12/01(++)............. 49,982 150,000 4.964%(+) 04/15/01(++)............. 149,962 90,000 4.994%(+) 04/15/01(++)............. 89,977 90,000 5.009%(+) 04/15/01(++)............. 89,988 90,000 5.014%(+) 04/15/01(++)............. 89,983 15,000 5.125% 04/17/01.................... 14,990 160,474 Discount note 04/18/01............. 160,110 439,436 Discount note 04/20/01............. 438,323 180,000 4.800%(+) 04/21/01(++)............. 179,958 322,471 Discount note 04/25/01............. 321,325 90,000 5.356%(+) 04/26/01(++)............. 89,974 32,960 5.750% 04/30/01.................... 32,933 16,280 6.750% 05/04/01.................... 16,274 55,512 5.060% 05/09/01.................... 55,216 55,200 7.050% 05/10/01.................... 55,195 26,461 Discount note 05/15/01............. 26,297 48,977 Discount note 05/23/01............. 48,616 50,788 Discount note 05/25/01............. 50,341 25,000 7.125% 06/05/01.................... 25,003 180,608 Discount note 06/06/01............. 178,995 158,475 Discount note 06/08/01............. 157,021 50,000 Discount note 06/12/01............. 49,422 44,806 5.780% 06/13/01.................... 44,371 170,000 5.830% 06/22/01.................... 168,007 100,000 5.815% 06/27/01.................... 98,595 100,000 Discount note 07/25/01............. 98,388 99,150 6.750% 02/01/02.................... 100,754 ---------- 3,550,824 ---------- STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 12.2% 216,500 Discount note 05/31/01............. 214,764 289,000 5.800% 06/29/01.................... 285,009 ---------- 499,773 ---------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (Cost $4,094,385)................ 4,094,385 ----------
VALUE (000) - ------------------------------------------------------------ - ------------------------------------------------------------ TOTAL INVESTMENTS (Cost $4,094,385*)........ 99.8% $4,094,385 ---------- OTHER ASSETS AND LIABILITIES (NET)..................... 0.2% Interest receivable................ $ 12,160 Investment advisory fee payable.... (382) Administration fee payable......... (67) Shareholder servicing and distribution fees payable........ (754) Distributions payable.............. (4,114) Accrued Trustees' fees and expenses......................... (37) Accrued expenses and other liabilities...................... (606) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................ 6,200 ---------- NET ASSETS.................. 100.0% $4,100,585 ========== NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold................. $ (551) Paid-in capital.................... 4,101,136 ---------- NET ASSETS......................... $4,100,585 ==========
SEE NOTES TO FINANCIAL STATEMENTS. 14 19 NATIONS RESERVES MONEY MARKET FUNDS Nations Government Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE - ------------------------------------------------------------ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($852,138,334 / 852,261,028 shares outstanding)..................... $1.00 ----- ----- INSTITUTIONAL SHARES: ($260,086,815 / 260,086,322 shares outstanding).............. $1.00 ----- ----- TRUST CLASS SHARES: ($222,765,574 / 222,758,785 shares outstanding).............. $1.00 ----- ----- LIQUIDITY CLASS SHARES: ($468,082,601 / 468,064,261 shares outstanding).............. $1.00 ----- ----- ADVISER CLASS SHARES: ($1,190,853,165 / 1,191,145,656 shares outstanding).............. $1.00 ----- ----- INVESTOR CLASS SHARES: ($331,555,653 / 331,861,320 shares outstanding).............. $1.00 ----- ----- MARKET CLASS SHARES: ($488,016,112 / 488,000,010 shares outstanding).............. $1.00 ----- ----- DAILY CLASS SHARES: ($259,936,704 / 259,918,388 shares outstanding).............. $1.00 ----- ----- SERVICE CLASS SHARES: ($26,000,746 / 26,000,010 shares outstanding)..................... $1.00 ----- ----- INVESTOR B SHARES: ($990,074 / 990,049 shares outstanding)..................... $1.00 ----- ----- INVESTOR C SHARES: ($159,687 / 159,683 shares outstanding)..................... $1.00 ----- -----
- --------------- * Aggregate cost for federal tax purposes. (+) Floating rate security. The interest rate shown reflects the rate in effect at March 31, 2001. (++) Reset date. Interest rates reset either daily, weekly, monthly, or quarterly.
SEE NOTES TO FINANCIAL STATEMENTS. 15 20 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 99.5% ALABAMA -- 1.1% $ 4,200 Birmingham, Alabama Medical Clinic Board Revenue, (Medical Advancement Foundation Project) Series 2000A, (Columbus Bank & Trust LOC, First Commercial Bank LOC), 4.000% 09/01/30**................. $ 4,200 9,250 Birmingham, Alabama Private Educational Building Authority Revenue, (The Altamont School Project) Series 1998, (AmSouth Bank of Alabama LOC), 3.550% 04/01/13**................. 9,250 1,300 Columbia, Alabama Industrial Development Board PCR, (Alabama Power Company Project) Series 1995A, 3.950% 05/01/22**................. 1,300 2,350 Gadsen, Alabama Industrial Development Board PCR Refunding, (Alabama Power Company Project) Series 1994, 4.000% 06/01/15**................. 2,350 300 Phenix County, Alabama Industrial Development Board Environmental Improvement Revenue, (Mead Coated Board, Inc. Project) Series 1993A, AMT, (Toronto Dominion Bank LOC), 3.950% 06/01/28**................. 300 ---------- 17,400 ---------- ALASKA -- 0.9% 4,300 Alaska Industrial Development and Export Authority Exempt Facilities Revenue, (AMAX Gold, Inc. Project) Series 1997, AMT, (Bank of Nova Scotia LOC), 3.550% 05/01/09**................. 4,300 9,995 Alaska State Housing Finance Corporation Housing Revenue, Series 1998PA-332, (MBIA Insured, Merrill Lynch SBPA), 3.550% 12/01/19**#................ 9,995 ---------- 14,295 ---------- ARIZONA -- 1.3% 5,200 Apache County, Arizona Industrial Development Authority IDR, (Tucson Electric Project) Series 1983C, (Societe Generale LOC), 3.550% 12/15/18**................. 5,200 14,700 Apache County, Arizona Industrial Development Authority Revenue, (Tucson Electric Power Company Project) Series 1983A, (Toronto Dominion Bank LOC), 3.450% 12/15/18**................. 14,700
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- ARIZONA -- (CONTINUED) $ 1,000 Pinal County, Arizona Industrial Development Authority PCR Refunding, (Magna Copper Company Project) Series 1992, (Banque Nationale de Paris LOC), 3.450% 12/01/11**................. $ 1,000 ---------- 20,900 ---------- CALIFORNIA -- 2.0% 10,000 California Higher Education Loan Authority Inc. Student Loan Revenue Refunding, Sr. Lien, Series 1992A-2-6, (SLMA Guarantee) Mandatory Put 04/01/01, 4.300% 12/01/02................... 10,000 20,000 California Higher Education Loan Authority Inc. Student Loan Revenue, Series 1987, (SLMA Guarantee), Mandatory Put 07/01/01, 4.400% 07/01/01................... 20,000 1,800 Los Angeles, California Regional Airports Improvement Corporation Terminal Facilities Revenue, (LAX Two Corporation -- Los Angeles International Airport Project) Series 1989, AMT, (Societe Generale LOC), 3.950% 12/01/25**................. 1,800 ---------- 31,800 ---------- COLORADO -- 0.6% 900 Colorado Health Facilities Authority Revenue, (Goodwill Industries, Inc. Project) Series 1994, (Bank One of Colorado, N.A. LOC), 3.650% 12/01/04**#................ 900 5,170 Colorado Housing Finance Authority Revenue Refunding, (Coventry Village Project) Series 1996B, (FNMA Collateral Agreement), 3.550% 10/15/16**................. 5,170 2,710 Colorado Post-Secondary Educational Facilities Authority Economic Development Revenue, (U.S. Swimming, Inc. Project) Series 1996, (Wells Fargo Bank LOC), 3.650% 06/01/11**#................ 2,710 910 Larimer County, Colorado IDR Refunding, (Ultimate Support Systems Project) Series 1995A, (Bank One of Colorado, N.A. LOC), 3.650% 06/01/10**#................ 910 ---------- 9,690 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 16 21 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- DELAWARE -- 5.7% $35,000 Delaware State Economic Development Authority IDR, (Clean Power Project) Series 1997D, AMT, (Motiva Enterprises LLC Guarantee), 3.700% 08/01/29**................. $ 35,000 10,000 Delaware State Economic Development Authority IDR, (Star Enterprise Project) Series 1997B, AMT, (Motiva Enterprises LLC Guarantee), 3.700% 08/01/29**................. 10,000 43,050 Delaware State Economic Development Authority Revenue, (Hospital Billing and Collection Services, Inc. Project) Series 1985A, (AMBAC Insured, Morgan Stanley SBPA), 3.420% 12/01/15**................. 43,050 4,090 Delaware State Economic Development Authority Revenue, (Hospital Billing and Collection Services, Inc. Project) Series 1985B, (AMBAC Insured, Morgan Stanley SBPA), 3.500% 12/01/15**................. 4,090 ---------- 92,140 ---------- FLORIDA -- 4.8% 10,200 Collier County, Florida Industrial Development Authority Health Care Facilities Revenue, (Community Health Care Project) Series 1999A, (First Union National Bank LOC), 3.650% 11/01/19**................. 10,200 7,045 Florida State Board of Education Capital Outlay Revenue Refunding, (Public Education Project) Series 1998B, 4.500% 06/01/01................... 7,046 1,665 Fort Walton Beach, Florida IDR, (Burton Golf, Inc. Project) Series 1996, AMT, (Columbus Bank and Trust LOC), 3.750% 10/01/11**................. 1,665 12,000 Jacksonville, Florida Hospital Revenue, (University Medical Center Project) Series 1989, (Morgan Guaranty Trust LOC), 3.730% 02/01/19**................. 12,000 26,400 Martin County, Florida PCR Refunding, (Florida Power and Light Project), Series 2000, 3.800% 07/15/22**................. 26,400 3,000 Palm Beach County, Florida Economic Development Revenue, (YMCA Boynton Beach Project) Series 1999, (SunTrust Bank of South Florida LOC), 3.500% 01/01/24**#................ 3,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 8,160 Palm Beach County, Florida Multi-Family Housing Finance Authority Revenue, (Clear Lake Colony Apartments Project) Series 2000PA-1240, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 3.750% 09/15/02**#(--)............ $ 8,160 9,000 Polk County, Florida Industrial Development Authority Revenue, (Farmland Hydro LP Project) Series 1998, AMT, (Rabobank Nederland LOC), 3.600% 02/01/29**................. 9,000 ---------- 77,471 ---------- GEORGIA -- 6.3% 4,790 Bartow County, Georgia Development Authority PCR, (Georgia Power Company -- Bowden Project) Series 1998, 3.950% 03/01/24**................. 4,790 2,100 Burke County, Georgia Development Authority PCR, (Georgia Power Company -- Plant Vogtle Project) Series 1996, 3.950% 09/01/26**................. 2,100 3,945 Clayton County, Georgia Housing Authority Multi-Family Housing Revenue Refunding, (Ten Oaks Apartments Project) Series 1990F, (FSA Insured, Societe Generale SBPA), 3.450% 01/01/21**................. 3,945 1,900 Cobb County, Georgia Development Authority Revenue Refunding, (Highlands Park Associates Project) Series 1998, (SunTrust Bank LOC), 3.500% 08/01/08**#................ 1,900 1,800 Cobb County, Georgia Residential Care Facilities for the Elderly Authority Revenue Refunding, (Presbyterian Village Austell Project) Series 1998, (SunTrust Bank LOC), 3.500% 08/01/15**#................ 1,800 11,900 Columbia County, Georgia Residential Care Facilities for the Elderly Authority Revenue, (Augusta Residential Center on Aging Project) Series 1994, (SunTrust Bank LOC), 3.500% 01/01/21**#................ 11,900 10,000 Columbus, Georgia Hospital Authority Revenue, (St. Francis Hospital Inc., Project) Series 2000A, (Columbus Bank & Trust LOC), 3.600% 01/01/31**................. 10,000 7,500 DeKalb County, Georgia Development Authority IDR, (The Paideia School Inc. Project) Series 2000, (SunTrust Bank LOC), 3.500% 02/01/20**#................ 7,500
SEE NOTES TO FINANCIAL STATEMENTS. 17 22 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 3,000 DeKalb County, Georgia Development Authority Revenue, (Marist School, Inc. Project) Series 1999, (SunTrust Bank LOC), 3.500% 03/01/24**#................ $ 3,000 1,050 DeKalb County, Georgia Housing Authority Multi-Family Housing Revenue Refunding, (Camden Brook Project) Series 1995, (FNMA Collateral Agreement), 3.500% 06/15/25**................. 1,050 1,400 DeKalb County, Georgia Housing Authority Multi-Family Housing Revenue, (Cedar Creek Apartments Project) Series 1995, AMT, (GE Capital Corporation Guarantee), 3.700% 12/01/20**#................ 1,400 4,800 DeKalb County, Georgia Housing Authority Multi-Family Housing Revenue, (Crow Wood Arbor Associates, Ltd. Project) Series 1985, (Wachovia Bank of North Carolina, N.A. LOC), 3.500% 12/01/07**#................ 4,800 3,300 Fulton County, Georgia Development Authority Revenue, (Georgia Tech Athletic Association, Inc. Project) Series 1995, (SunTrust Bank LOC), 3.500% 07/01/14**#................ 3,300 3,000 Fulton County, Georgia Development Authority Revenue, (Lovett School Project) Series 1997, (SunTrust Bank LOC), 3.500% 04/01/17**#................ 3,000 15,000 Gainesville, Georgia Redevelopment Authority Educational Facilities Revenue, (Riverside Military Project) Series 1999, (Wachovia Bank N.A. LOC), 3.500% 07/01/24**#................ 15,000 3,000 Marietta, Georgia Housing Authority Multi-Family Revenue, (Winterset Apartments Project) Series 1996P, (FNMA Collateral Agreement), 3.500% 02/01/26**................. 3,000 5,800 Richmond County, Georgia Development Authority Solid Waste Disposal Revenue, (Evergreen Nylon Project) Series 1999, AMT, (Banque Nationale de Paris LOC), 3.600% 07/01/32**................. 5,800 9,600 Richmond County, Georgia Hospital Authority Revenue Anticipation Certificates, (University Health Services, Inc. Project) Series 1999, (SunTrust Bank LOC), 3.500% 01/01/19**................. 9,600
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 7,000 Smyrna, Georgia Housing Authority Multi-Family Housing Revenue, (Hills of Post Village Series Project) Series 1995, (FNMA Collateral Agreement), 3.450% 06/01/25**#................ $ 7,000 ---------- 100,885 ---------- ILLINOIS -- 12.0% 3,100 Chicago, Illinois O'Hare International Airport Authority Revenue, (American Airlines, Inc. Project) Series 1983A, (Credit Suisse First Boston LOC), 3.950% 12/01/17**................. 3,100 4,255 Elmhurst, Illinois Hospital Revenue, (Joint Commission Accreditation Healthcare Project) Series 1988, (Dexia Credit Local de France LOC), 3.500% 07/01/18**................. 4,255 870 Illinois Development Finance Authority IDR, (Randolph Pickle Corporation Project) Series 1992, AMT, (American National Bank & Trust Company LOC), 3.800% 06/01/12**................. 870 2,800 Illinois Development Finance Authority IDR, (Unique Building Corporation Project) Series 1989, AMT, (American National Bank & Trust Company LOC), 3.800% 05/01/19**................. 2,800 4,400 Illinois Development Finance Authority Revenue, (Chicago Symphony Orchestra -- Orchestral Association Project) Series 1994, (Northern Trust Company LOC), 3.500% 12/01/28**................. 4,400 46,300 Illinois Development Finance Authority Revenue, (Lyric Opera of Chicago Project) Series 1994, (Northern Trust Company LOC, Bank One of Michigan LOC, Harris Trust & Savings Bank LOC), 3.500% 12/01/28**................. 46,300 1,900 Illinois Development Finance Authority Revenue, (Park Ridge Youth Campus Project) Series 1998, (Northern Trust Company LOC), 3.600% 09/01/18**#................ 1,900 12,200 Illinois Development Finance Authority Revenue, (YMCA of Metropolitan Chicago Project) Series 1996A, (Harris Trust & Savings Bank LOC), 3.500% 06/01/26**................. 12,200 5,500 Illinois Educational Facilities Authority Revenue, (Chicago Historical Society Project) Series 1985, (Northern Trust Company LOC), 3.500% 12/01/25**#................ 5,500
SEE NOTES TO FINANCIAL STATEMENTS. 18 23 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 4,000 Illinois Educational Facilities Authority Revenue, (DePaul University Project) Series 1992CP-1, (Northern Trust LOC), 3.500% 04/01/26**................. $ 4,000 12,800 Illinois Educational Facilities Authority Revenue, (John F. Kennedy Healthcare Foundation Project) Series 1995, (LaSalle National Bank LOC), 3.200% 12/01/25**................. 12,800 1,400 Illinois Educational Facilities Authority Revenue, (Northwestern University Project) Series 1985, (First National Bank of Chicago SBPA), 3.550% 12/01/25**................. 1,400 5,000 Illinois Educational Facilities Authority Revenue, (University of Chicago Project) Series 2001, 3.400% 10/18/01................... 5,000 14,320 Illinois Educational Facilities Authority Revenue, (University Pooled Financing Project) Series 1985, (FGIC Insured, First National Bank of Chicago SBPA), 3.500% 12/01/05**................. 14,320 10,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1985B, 4.450% 08/15/01**#................ 10,000 23,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1988, 4.450% 08/31/01**#................ 23,000 10,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1990A, 4.450% 07/31/01**#................ 10,000 8,000 Illinois Health Facilities Authority Revenue, (Revolving Fund Pooled Project) Series 1985C, (First National Bank of Chicago LOC), 3.550% 08/01/15**................. 8,000 5,000 Illinois Sports Facilities Authority, Series 2000A-36, AMT, (MBIA Insured, First Union National Bank LOC), 3.640% 06/15/04**#................ 5,000 3,600 Illinois State Housing Development Authority Housing Revenue, (Illinois Center Apartments Project) Series 1985, (FHLMC Guarantee), 3.350% 01/01/08**................. 3,600 1,500 Lombard Village, Illinois Industrial Projects Revenue Refunding, (B&H Partnership Project) Series 1995, (LaSalle Bank N.A. LOC), 3.900% 10/01/13**................. 1,500
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 3,900 Madison County, Illinois Environmental Improvement Revenue, (Shell Oil Company Project) Series 1997A, AMT, 3.800% 03/01/33**..... $ 3,900 9,200 Orland Park, Illinois IDR, (Panduit Corporation Project) Series 1996, AMT, (Wachovia Bank of Georgia LOC), 3.650% 04/01/31**#................ 9,200 ---------- 193,045 ---------- INDIANA -- 2.5% 10,000 Indiana Health Facilities Financing Authority Hospital Revenue, (Clarian Health Obligations Group Project) Series 2000C, (Westdeutsche Landesbank Girozentrale SBPA), 3.450% 03/01/30**................. 10,000 2,400 Indiana Health Facilities Financing Authority Hospital Revenue, (Deaconess Hospital Inc. Project) Series 1992, (First National Bank of Chicago LOC), 3.500% 01/01/22**................. 2,400 1,680 Indiana Health Facilities Financing Authority Revenue Refunding, (Cardinal Center, Inc. Project) Series 1996A, (Key Bank N.A. LOC), 3.600% 12/01/16**#................ 1,680 1,400 Indiana, Health Facilities Financing Authority Hospital Revenue, (Clarian Health Obligations Group Project) Series B, (Chase Manhattan Bank SBPA), 3.900% 03/01/30**................. 1,400 11,000 Indianapolis, Indiana Economic Development Revenue BAN, (Thermal Energy Systems Project), Series 2000A, (LaSalle Bank N.A. LOC, Keybank N.A. LOC), 5.000% 05/01/01................... 11,006 2,700 Indianapolis, Indiana Economic Development Revenue, (Edgcomb Metals Company Project) Series 1983, (Wells Fargo Bank LOC), 3.500% 12/01/08**................. 2,700 3,000 Princeton, Indiana PCR Refunding, (PSI Energy, Inc. Project) Series 1996, (Canadian Imperial Bank of Commerce LOC), 3.750% 03/01/19**................. 3,000 2,335 Rockport, Indiana PCR Refunding, (AEP Generating Company Project) Series 1995B, (AMBAC Insured, Bank of New York SBPA), 3.750% 07/01/25**................. 2,335 2,900 Rockport, Indiana PCR, (Indiana and Michigan Electric Company Project) Series 1985A, (UBS AG LOC), 3.500% 08/01/14**#................ 2,900
SEE NOTES TO FINANCIAL STATEMENTS. 19 24 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- INDIANA -- (CONTINUED) $ 3,100 Whiting, Indiana Sewer and Solid Waste Disposal Revenue, (Amoco Oil Company Project) Series 1996, AMT, (BP Amoco plc Guarantee), 3.800% 01/01/26**................. $ 3,100 ---------- 40,521 ---------- IOWA -- 0.3% 4,700 Iowa Higher Education Loan Authority Revenue, Series 1985, (MBIA Insured, Chase Manhattan SBPA), 3.550% 12/01/15**................. 4,700 ---------- KENTUCKY -- 0.6% 956 Jefferson County, Kentucky IDR, (Belknap, Inc. Project) Series 1984, (National City Bank, Kentucky LOC), 3.500% 12/01/14**#................ 956 1,265 Jefferson County, Kentucky Industrial Building Revenue, (Seven Counties Services, Inc. Project) Series 1996, (Bank One of Kentucky, N.A. LOC), 3.650% 06/01/11**#................ 1,265 900 Jeffersontown, Kentucky Industrial Building Revenue, (Raque Food Systems, Inc. Project) Series 1995, AMT, (PNC Bank, N.A. LOC), 3.700% 04/01/20**#................ 900 2,600 Lexington-Fayette County, Kentucky Urban County Airport Corporation Revenue, (First Mortgage Project) Series 1994A, AMT, (Dexia Credit Local de France LOC), 4.050% 04/01/24**................. 2,600 4,015 Louisville and Jefferson County, Kentucky Convention Center GO, Series 1996PT-69, (FSA Insured, Merrill Lynch SBPA), 3.550% 07/01/24**##............... 4,015 ---------- 9,736 ---------- LOUISIANA -- 3.9% 11,400 Ascension Parish, Louisiana PCR Refunding, (Borden, Inc. Project) Series 1992, (Credit Suisse First Boston LOC), 3.400% 12/01/09**................. 11,400 2,900 Calcasieu Parish Inc., Louisiana Industrial Development Board Environmental Revenue, (Citgo Petroleum Corporation Project) Series 1994, AMT, (Banque Nationale de Paris LOC), 3.850% 12/01/24**................. 2,900 2,000 Calcasieu Parish Inc., Louisiana Industrial Development Board Environmental Revenue, (Citgo Petroleum Corporation Project) Series 1996, AMT, (Westdeutsche Landesbank LOC), 3.850% 07/01/26**................. 2,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- LOUISIANA -- (CONTINUED) $ 4,000 East Baton Rouge Parish, Louisiana Solid Waste Disposal Revenue, (Exxon Project) Series 1998, AMT, (Exxon Guarantee), 3.800% 12/01/28**................. $ 4,000 5,400 Lake Charles, Louisiana Harbor and Terminal District Revenue, (Citgo Petroleum Corporation Project) Series 1984, (Westdeutsche Landesbank Girozentrale LOC), 3.500% 08/01/07**................. 5,400 2,300 Louisiana State Offshore Terminal Authority Revenue Refunding, (Loop, Inc. Project) Series 1992A, (SunTrust Bank, Nashville LOC), 3.700% 09/01/08**................. 2,300 34,100 Louisiana State Public Facilities Authority Hospital Revenue, (Willis-Knighton Medical Center Project) Series 1997, (AMBAC Insured, Dexia Credit Local de France SBPA), 3.600% 09/01/27**................. 34,100 ---------- 62,100 ---------- MAINE -- 0.4% 6,600 Maine Public Utility Financing Bank Public Utility Revenue Refunding, (Maine Public Service Company Project) Series 1996, AMT, (Bank of New York LOC), 3.650% 04/01/21**................. 6,600 ---------- MARYLAND -- 0.2% 3,700 Baltimore County, Maryland Economic Development Revenue, (Notre Dame Preparatory School Project) Series 1998, (Crestar Bank LOC), 3.500% 06/01/24**#................ 3,700 ---------- MICHIGAN -- 2.5% 1,250 Delta County, Michigan Economic Development Corporation Environmental Improvement Revenue, (Mead Corporation -- Escanaba Paper Project) Series 1985E, (Bank of Nova Scotia LOC), 3.950% 12/01/23**................. 1,250 3,500 Michigan State Housing Development Authority Housing Revenue, (Shoal Creek Project) Series 1985, (Bank One Michigan LOC), 3.600% 10/01/07**................. 3,500 9,400 University of Michigan Board of Regents Revenue, (University of Michigan Hospitals Project) Series 1995A, 3.750% 12/01/27**.......... 9,400 6,430 University of Michigan Hospital Revenue Refunding, (University of Michigan Hospitals Project) Series 1992A, 3.750% 12/01/19**.......... 6,430
SEE NOTES TO FINANCIAL STATEMENTS. 20 25 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- MICHIGAN -- (CONTINUED) $15,025 University of Michigan Hospital Revenue, (University of Michigan Medical Service Plan Project) Series 1995A, 3.750% 12/01/27**................. $ 15,025 4,700 University of Michigan Hospital Revenue, (University of Michigan Medical Service Plan) Series 1998A-1, 3.750% 12/01/21**................. 4,700 ---------- 40,305 ---------- MINNESOTA -- 0.7% 6,160 Minneapolis, Minnesota Housing Development Revenue Refunding, (Symphony Place Project) Series 1988, (FHLMC Guarantee), 3.500% 12/01/14**................. 6,160 4,500 Minnesota State Housing Finance Agency, (Single-Family Mortgage Project) Series 2000D, (Bayerische Landesbank GIC), 4.300% 05/01/01................... 4,500 ---------- 10,660 ---------- MISSOURI -- 3.9% 46,500 Missouri State Development Finance Board Lease Revenue, (Missouri Association of Utilities Lease Pool Project) Series 1999, (TransAmerica Life and Annuity Guarantee), 3.560% 12/01/22**................. 46,500 6,300 Missouri State Health and Educational Facilities Authority Health Facilities Revenue Refunding, (Sisters of Mercy Health Care System Project) Series 1992B, (ABN-AMRO N.V. Chicago SBPA, West Landesbank SBPA, Dexia Credit Local de France SBPA), 3.500% 06/01/14**................. 6,300 5,000 Missouri State Health and Educational Facilities Authority Revenue, (Mehlville School District Advanced Funding Project) Series 2000I, 5.000% 10/01/01................... 5,015 4,525 Missouri State Health and Educational Facilities Authority School District Revenue, (Grandview Consolidated School District Advanced Funding Project) Series 2000D, 5.000% 10/01/01................... 4,539 ---------- 62,354 ---------- NEBRASKA -- 1.0% 6,000 Lancaster County, Nebraska IDR, (Garner Industries, Inc. Project) Series 2000A, AMT, (Wells Fargo Bank, N.A. LOC), 3.650% 11/01/20**................. 6,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- NEBRASKA -- (CONTINUED) $ 9,695 Nebraska Help Inc. Student Loan Revenue, Series 1986B, AMT, (SLMA Guarantee), 3.700% 12/01/16**................. $ 9,695 ---------- 15,695 ---------- NEVADA -- 1.8% 5,850 Clark County, Nevada IDR, (Nevada Cogeneration Association I Project) Series 1991, AMT, (Canadian Imperial Bank of Commerce LOC), 3.850% 11/01/21**................. 5,850 7,350 Clark County, Nevada IDR, (Nevada Cogeneration Association II Project) Series 1990, AMT, (Canadian Imperial Bank of Commerce LOC), 3.850% 11/01/20**................. 7,350 10,700 Clark County, Nevada IDR, (Nevada Cogeneration Association Project) Series 1992, AMT, (ABN AMRO Bank, N.V. LOC), 3.850% 12/01/22**................. 10,700 5,500 Nevada Housing Division Multi-Unit Housing Revenue, (Studio 3, LP Project), Series 1999A, AMT, (US Bank, N.A. LOC), 3.600% 10/01/30**................. 5,500 ---------- 29,400 ---------- NEW MEXICO -- 0.4% 5,900 Dona Ana County, New Mexico IDR, (Foamex Products, Inc. Project) Series 1985, (Bank of Nova Scotia LOC), 3.500% 11/01/13**#................ 5,900 ---------- NEW YORK -- 3.4% 7,000 Nassau County, New York RAN, Series 2000C, (First Union National Bank LOC, Bank of Novia Scotia LOC), 6.000% 04/12/01................... 7,003 38,990 New York State Dormitory Authority Revenue, Series 1998PT-1066, (AMBAC Insured, Merrill Lynch SBPA), 3.330% 07/01/23**#(--)............ 38,990 9,000 New York, New York GO, Series 1996J-3, (Morgan Guaranty Trust LOC), 3.400% 02/15/16**................. 9,000 ---------- 54,993 ---------- NORTH CAROLINA -- 4.0% 13,775 North Carolina Educational Facilities Financing Agency Revenue, (Methodist College Project) Series 2000, (Wachovia Bank, N.A. LOC), 3.500% 03/01/22**................. 13,775
SEE NOTES TO FINANCIAL STATEMENTS. 21 26 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- NORTH CAROLINA -- (CONTINUED) $12,700 North Carolina Educational Facilities Financing Agency Revenue, (Ravenscroft School Project) Series 2000, (Wachovia Bank, N.A. LOC), 3.500% 08/01/20**................. $ 12,700 10,000 North Carolina Educational Facilities Financing Agency Revenue, (Roman Catholic Diocese Project) Series 2000, (Wachovia Bank, N.A. LOC), 3.500% 06/01/17**................. 10,000 9,200 North Carolina Medical Care Commission Retirement Community Revenue, (Adult Communities Project) Series 1996, (LaSalle National Bank LOC), 3.500% 11/15/09**................. 9,200 9,500 North Carolina Medical Care Community Health Care Facilities Revenue, (Randolph Hospital Inc. Project), Series 1999, (Wachovia Bank, N.A. LOC), 3.500% 03/01/24**#................ 9,500 8,500 Robeson County, North Carolina Industrial Facilities PCR Financing Authority Revenue, (Culp Inc. Project) Series 1997, AMT, (Wachovia Bank of North Carolina, N.A. LOC), 3.550% 06/01/14**#................ 8,500 ---------- 63,675 ---------- OHIO -- 1.5% 900 Centerville, Ohio Health Care Revenue, (Bethany Lutheran Village Hospital Project) Series 1994, (PNC Bank of Ohio, N.A. LOC), 3.600% 11/01/13**#................ 900 5,000 Clinton County, Ohio Airport Facilities Revenue Refunding, (Wilmington Air Park, Inc. Project) Series 1991, (Wachovia Bank of North Carolina, N.A. LOC), 3.500% 06/01/11**#................ 5,000 810 Greene County, Ohio IDR, (FC, Ltd. -- AFC Stamping Project) Series 1995, AMT, (Key Bank, N.A. LOC), 3.750% 09/01/16**#................ 810 8,800 Lucas County, Ohio Facilities Improvement Revenue, (Toledo Zoological Society Project) Series 1997, (Key Bank, N.A. LOC), 3.500% 10/01/05**#................ 8,800 1,700 Lucas County, Ohio IDR, (Dynamic Dies, Inc. Project) Series 1997, AMT, (National City Bank LOC), 3.750% 07/01/09**................. 1,700
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- OHIO -- (CONTINUED) $ 2,279 Ohio Housing Finance Agency Multi- Family Housing Revenue, (Kenwood Congregation - Retirement Project) Series 1985, (Morgan Guaranty Trust LOC), 3.350% 12/01/15**................. $ 2,279 2,000 Ohio State Water Development Authority Solid Waste Disposal Revenue, (The Timken Company Project) Series 1997, AMT, (Wachovia Bank of North Carolina, N.A. LOC), 3.600% 07/01/32**................. 2,000 900 Summit County, Ohio IDR, (Oliver Printing Company, Inc. Project) Series 1997, AMT, (Bank One of Akron, N.A. LOC), 3.800% 02/01/07**#................ 900 1,035 Toledo-Lucas County, Ohio Port Authority Facilities Improvement Revenue, (YMCA of Greater Toledo Project) Series 1996, (Fifth Third Bank of Northwestern Ohio LOC), 3.550% 12/01/21**#................ 1,035 ---------- 23,424 ---------- OKLAHOMA -- 2.0% 10,000 Oklahoma Development Finance Authority Revenue, (Seabrook Farms Inc. Project) Series 1997, AMT, (Bank of New York LOC), 3.650% 03/01/27**#................ 10,000 21,910 Payne County, Oklahoma Economic Development Authority Revenue, (Collegiate Housing Foundation Project) Series 2000A, (First Union National Bank LOC), 3.750% 06/01/30**................. 21,910 ---------- 31,910 ---------- PENNSYLVANIA -- 2.5% 2,480 Elk County, Pennsylvania Industrial Development Authority Revenue, (Clarion Sintered Metals Project) Series 1998, AMT, (PNC Bank, N.A. LOC), 3.700% 03/01/09**#................ 2,480 9,200 Emmaus, Pennsylvania General Authority Revenue, (East Stoudsburg Pennsylvania Area School District Project) Series 1989B, (Bayerische Landesbank LOC), 3.500% 03/01/24**................. 9,200 6,270 Hatfield Township, Pennsylvania Industrial Development Authority Revenue, (H&N Packaging Project) Series 1999A, AMT, (Commerzbank LOC), 3.700% 04/01/19**#................ 6,270 5,000 Pennsylvania State GO, Series 1994, 4.750% 05/01/01................... 5,002
SEE NOTES TO FINANCIAL STATEMENTS. 22 27 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $13,400 Quakertown, Pennsylvania General Authority Revenue, (Pooled Financing Project) Series 1996A, (PNC Bank, N.A. LOC), 3.550% 07/01/26**................. $ 13,400 1,760 Schuylkill County, Pennsylvania Industrial Development Authority Revenue, (Bon-Ton Stores Project) Series 1992, AMT, (PNC Bank, N.A. LOC), 3.700% 02/01/12**#................ 1,760 1,315 Schuylkill County, Pennsylvania Industrial Development Authority Revenue, (S. Grumbacher and Son Project) Series 1990, (PNC Bank, N.A. LOC), 3.600% 02/01/12**#................ 1,315 ---------- 39,427 ---------- RHODE ISLAND -- 0.3% 5,000 Rhode Island State, Industrial Facilities Corporation IDR, (Precision Turned Components Project) Series 2000, (Bank of New York LOC), 3.650% 05/01/11**................. 5,000 ---------- SOUTH CAROLINA -- 6.5% 4,000 Anderson County, South Carolina IDR, (Mikron Corporation Project) Series 1998, AMT, (ABN AMRO Bank N.V. LOC), 3.650% 11/01/12**#................ 4,000 2,725 Beaufort County, South Carolina School District GO, (South Carolina School District Enhancement Program) Series 1999C, 4.000% 02/01/02................... 2,729 6,000 Berkeley County, South Carolina Exempt Facilities Industrial Revenue, (Amoco Chemical Corporation Project) Series 1997, AMT, (BP Amoco plc Guarantee), 3.800% 04/01/27**................. 6,000 4,850 Charleston County, South Carolina School District GO, (South Carolina School District Enhancement Program) Series 1999, 4.000% 02/01/02................... 4,858 9,000 Charleston County, South Carolina School District, Series 2000, 4.600% 04/13/01................... 9,001 1,000 Cherokee County, South Carolina Industrial Revenue Refunding, (Holmberg Electronic Corporation Project) Series 1989, (Wachovia Bank of North Carolina, N.A. LOC), 3.850% 11/01/04**#................ 1,000 15,000 Florence County, South Carolina Hospital Revenue, (McLeod Regional Medical Center) Series 1985A, (FGIC Insured, First Union National Bank SBPA), 3.600% 11/01/15**................. 15,000
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $ 6,200 Greenville County, South Carolina Industrial Revenue, (Edgcomb Metals Company Project) Series 1984, (Wells Fargo Bank LOC), 3.500% 08/01/09**#................ $ 6,200 20,000 Richland County, South Carolina School District Number 001, (South Carolina School District Enhancement Program) GO BAN, Series 2000, 4.750% 09/14/01................... 20,039 3,660 South Carolina Jobs Economic Development Authority Development Revenue, (Spartanburg YMCA Project) Series 1996, (First Union National Bank LOC), 3.600% 06/01/18**#................ 3,660 24,995 South Carolina Jobs Economic Development Authority Economic Development Revenue, (St. Francis Bon Secours Hospital Project) Series 2000, (Merrill Lynch Guarantee and SBPA), 4.400% 09/13/01**(--)............. 24,995 3,000 South Carolina Jobs Economic Development Authority Health Facilities Revenue, (Greenville Baptist Retirement Community Project) Series 1997, (Wachovia Bank of North Carolina, N.A. LOC), 3.500% 10/01/19**#................ 3,000 3,200 South Carolina Jobs Economic Development Authority IDR, (Banks Construction Company Project) Series 1999, AMT, (Wachovia Bank, N.A. LOC), 3.600% 05/01/09**#................ 3,200 400 South Carolina Jobs Economic Development Authority IDR, (Chambers Oakridge Landfill Project) Series 1990, AMT, (Morgan Guaranty Trust LOC), 3.650% 12/01/01**#................ 400 ---------- 104,082 ---------- SOUTH DAKOTA -- 0.0%+ 530 South Dakota Economic Development Financing Authority IDR Refunding, (Lomar Development Company Project) Series 1996B, AMT, (US Bank, N.A. LOC), 3.850% 08/01/08**#................ 530 ---------- TENNESSEE -- 3.3% 8,500 Bristol, Tennessee Health and Education Facilities Revenue, Series 1995A, (FGIC Insured, Citibank SBPA), 3.550% 02/28/14**##(--)........... 8,500
SEE NOTES TO FINANCIAL STATEMENTS. 23 28 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 1,900 Dickson County, Tennessee Industrial Development Board Revenue, (The Jackson Foundation-Renaissance Learning Center Project) Series 1997, (SunTrust Bank of Nashville LOC), 3.500% 11/01/12**#................ $ 1,900 6,260 Franklin County, Tennessee Health and Educational Facilities Board Revenue, (University of the South Project) Series 1998B, (AmSouth Bank of Alabama LOC), 3.550% 09/01/18**................. 6,260 7,420 Memphis, Tennessee Center City Revenue Finance Corporation Multi-Family Housing Revenue, (Riverset Apartments Project) Series 1998PT-1019, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 3.800% 10/01/19**##(--)........... 7,420 9,020 Metropolitan Government Nashville and Davidson County, Tennessee Health and Education Facilities Board Revenue, (Adventist/Sunbelt Retirement Project) Series 1996A, (SunTrust Bank of Central Florida LOC), 3.500% 11/15/26**................. 9,020 3,700 Monroe County, Tennessee Industrial Development Board IDR, (American Transit Corporation Project) Series 1986, (BankBoston LOC), 3.650% 08/01/06**#................ 3,700 1,400 Springfield, Tennessee Industrial Development Board Revenue, (All American Homes of Tennessee Project) Series 1994, AMT, (Bank One of Michigan, N.A. LOC), 3.800% 11/01/09**#................ 1,400 14,400 Tennessee Volunteer State Student Funding Corporation Student Loan Revenue, Series 1998A-2, AMT, (State Street Bank and Trust LOC), 3.650% 12/01/23**................. 14,400 ---------- 52,600 ---------- TEXAS -- 13.5% 11,500 Brazos River Authority, Texas PCR Refunding, (Texas Utilities Electric Company Project) Series 1999C, AMT, (Bank of New York LOC), 3.650% 03/01/32**................. 11,500 16,180 Dallas-Fort Worth, Texas International Airport Facility Revenue, (Flightsafety Project) Series 1999, AMT, (OBH, Inc. Guarantee), 3.600% 07/01/32**#................ 16,180 2,300 Grapevine, Texas Industrial Development Corporation Airport Revenue, (Southern Air Transportation Project) Series 1993, (Bank One Texas, N.A. LOC), 3.600% 03/01/10**................. 2,300
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- TEXAS -- (CONTINUED) $ 1,600 Gulf Coast, Texas Industrial Development Authority Marine Terminal Revenue, (Amoco Oil Company Project) Series 1993, AMT, (BP Amoco, plc Guarantee), 3.800% 04/01/28**#................ $ 1,600 3,400 Gulf Coast, Texas Waste Disposal Authority PCR, (Amoco Oil Company Project) Series 1994, AMT, (BP Amoco plc Guarantee), 3.800% 06/01/24**................. 3,400 10,600 Harris County, Texas Health Facilities Development Revenue, (Methodist Hospital Project) Series 1994, (Morgan Guaranty Trust SBPA, Methodist Hospital SBPA), 3.900% 12/01/25**................. 10,600 3,300 Lone Star, Texas Airport Improvement Authority Revenue, (American Airlines Inc. Project) Series 1984A-5, (Royal Bank of Canada LOC), 3.900% 12/01/14**................. 3,300 1,500 Lone Star, Texas Airport Improvement Authority Revenue, (American Airlines, Inc. Project) Series 1984B-2, (Royal Bank of Canada LOC), 3.900% 12/01/14**................. 1,500 15,000 Mesquite, Texas Independent School District GO, Series 2000, (Texas Permanent Fund Insured, Morgan Guaranty Trust SBPA), 3.470% 08/15/25**................. 15,000 1,200 Nueces County, Texas Health Facilities Development Corporation Revenue, (Driscoll Foundation Childrens Hospital Project) Series 1985, (Bank One of Texas, N.A. LOC), 3.650% 07/01/15**................. 1,200 3,300 Panhandle-Plains, Texas Higher Education Authority Student Loan Revenue, Series 1991B, AMT, (Student Loan Marketing Guarantee), 3.500% 06/01/21**................. 3,300 5,000 Panhandle-Plains, Texas Higher Education Authority Student Loan Revenue, Series 1997Y, AMT, (Student Loan Marketing Guarantee), 3.500% 10/01/02**................. 5,000 7,495 Plano, Texas Independent School District, Series 2001-178, (Texas Permanent Fund Insured, Morgan Guaranty Trust SBPA), 3.550% 02/15/09**#................ 7,495
SEE NOTES TO FINANCIAL STATEMENTS. 24 29 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- TEXAS -- (CONTINUED) $ 6,000 Port of Corpus Christi, Texas Industrial Development Corporation Environmental Facilities Revenue, (Citgo Petroleum Corporation Project) Series 1998, AMT, (Bank One Oklahoma, N.A. LOC), 3.850% 08/01/28**................. $ 6,000 8,000 Sulphur Springs, Texas IDR, (Hon Industries Inc., Project) Series 1985, (Northern Trust Company LOC), 3.550% 12/01/13**#.......... 8,000 55,000 Texas Municipal Gas Corporation Gas Reserves Revenue, Sr. Lien, Series 1998, (FSA Insured, Societe Generale SBPA), 3.450% 01/15/23**................. 55,000 65,000 Texas State TRAN, Series 2000, 5.250% 08/31/01................... 65,253 1,000 Trinity River, Texas Industrial Development Authority Revenue, (Toys R Us -- Nytex Inc. Project) Series 1984, (Bankers Trust Company LOC), 3.625% 11/01/14**#................ 1,000 ---------- 217,628 ---------- UTAH -- 0.8% 9,900 Intermountain Power Agency, Utah Municipal Trust Receipts Power Supply Revenue, Series 1996CMC-4, (FSA Insured, Chase Manhattan SBPA), 3.550% 07/01/03**#(--)............ 9,900 3,200 West Valley City, Utah Industrial Development Authority Revenue, (Johnson Matthey, Inc. Project) Series 1987, (HSBC Bank USA LOC), 4.000% 12/01/11**................. 3,200 ---------- 13,100 ---------- VERMONT -- 1.7% 10,800 Vermont Educational and Health Buildings Financing Agency Revenue, (Middlebury College Project) Series 1988A, 4.400% 11/01/27**................. 10,800 6,390 Vermont Educational and Health Buildings Financing Agency Revenue, (Middlebury College Project) Series 1988A, Mandatory Put 11/01/01, 4.350% 05/01/28................... 6,390 10,300 Vermont Industrial Development Authority Revenue, (Ryegate Wood Energy Company Project) Series 1990, AMT, (ABN AMRO Bank, N.V. LOC), 3.550% 12/01/15**................. 10,300 ---------- 27,490 ----------
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- VIRGINIA -- 3.5% $ 5,600 Albemarle County, Virginia Industrial Development Authority Health Services Revenue, (University of Virginia Health Services Foundation Project) Series 1996, (First Union National Bank LOC), 3.450% 02/01/26**................. $ 5,600 10,200 Culpeper, Virginia Industrial Development Authority Residential Care Facilities Revenue, (Virginia Baptist Homes Project) Series 2000, (First Union National Bank LOC), 3.450% 08/01/30**................. 10,200 20,000 Fairfax County, Virginia Economic Development Authority Revenue, (Flint Hill School Project) Series 2000, (First Union National Bank LOC), 3.450% 10/01/25**................. 20,000 6,425 Madison County, Virginia Industrial Development Authority Revenue, (Madison Wood Preservers Project) Series 1998, AMT, (Wachovia Bank of North Carolina LOC), 3.600% 06/01/13**#................ 6,425 13,080 Virginia Beach, Virginia Development Authority Multi-Family Housing Revenue, (Briarwood Apartments Project) Series 1999PT-1146, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 3.650% 04/01/23**##(--).................. 13,080 1,075 Winchester, Virginia Industrial Development Authority Revenue, (Midwesco Filter Resource, Inc. Project) Series 1995, (Harris Trust & Savings Bank LOC), 3.800% 08/01/07**................. 1,075 ---------- 56,380 ---------- WASHINGTON -- 0.0%+ 600 Port of Skagit County, Washington Industrial Development Corporation Revenue, (Cascade Clear Water Company Project) Series 1995, AMT, (Key Bank, N.A. LOC), 3.750% 12/01/20**#................ 600 ---------- WEST VIRGINIA -- 0.6% 400 Ohio County, West Virginia IDR, (Ohio Valley - Clarksburg Drug Company Project) Series 1986, AMT, (PNC Bank of Ohio, N.A. LOC), 3.650% 12/01/01**#................ 400 10,000 Pleasants County, West Virginia County Commission IDR, (Simex, Inc. Building Project) Series 1999, AMT, (PNC Bank, N.A. LOC), 3.700% 12/01/19**................. 10,000 ---------- 10,400 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 25 30 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- WISCONSIN -- 3.0% $18,000 Kenosha, Wisconsin Unified School District No. 001 TRAN, Series 2000A, 4.750% 10/05/01................... $ 18,035 820 Milwaukee, Wisconsin IDR, (Mandel Company Project) Series 1997, AMT, (US Bank, N.A. LOC), 3.850% 04/01/07**................. 820 4,000 Pleasant Prairie, Wisconsin IDR, (Nucon Corporation Project) Series 1995, AMT, (American National Bank & Trust Company LOC), 3.650% 02/01/22**#................ 4,000 24,770 Wisconsin State Health and Educational Facilities Authority Revenue, (St. Luke's Medical Center Project) Series 1987, (First National Bank of Chicago LOC), 3.550% 12/01/17**#................ 24,770 ---------- 47,625 ---------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $1,598,161)................... 1,598,161 ----------
TOTAL INVESTMENTS (Cost $1,598,161*)............ 99.5% $1,598,161 ---------- OTHER ASSETS AND LIABILITIES (NET)....................... 0.5% Cash................................. $ 97 Interest receivable.................. 10,588 Investment advisory fee payable...... (204) Administration fee payable........... (32) Shareholder servicing and distribution fees payable.......... (446) Distributions payable................ (2,136) Accrued Trustees' fees and expenses........................... (37) Accrued expenses and other liabilities........................ (102) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. 7,728 ---------- NET ASSETS.................... 100.0% $1,605,889 ========== NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold................... $ (121) Paid-in capital...................... 1,606,010 ---------- NET ASSETS........................... $1,605,889 ========== VALUE - -------------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($145,248,069 / 145,440,354 shares outstanding)................ $1.00 ========== INSTITUTIONAL SHARES: ($16,116,192 / 16,116,210 shares outstanding)................ $1.00 ========== TRUST CLASS SHARES: ($488,190,411 / 488,187,142 shares outstanding)................ $1.00 ========== LIQUIDITY CLASS SHARES: ($35,569,143 / 35,568,908 shares outstanding)................ $1.00 ========== ADVISER CLASS SHARES: ($129,807,067 / 129,864,649 shares outstanding)................ $1.00 ========== INVESTOR CLASS SHARES: ($57,017,416 / 57,062,472 shares outstanding)................ $1.00 ========== MARKET CLASS SHARES: ($169,000,451 / 169,000,010 shares outstanding)................ $1.00 ========== DAILY CLASS SHARES: ($554,875,984 / 554,880,578 shares outstanding)................ $1.00 ========== SERVICE CLASS SHARES: ($10,000,063 / 10,000,010 shares outstanding)................ $1.00 ========== INVESTOR B SHARES: ($63,727 / 63,727 shares outstanding)................ $1.00 ==========
- --------------- * Aggregate cost for federal tax purposes. ** Variable rate demand notes. The interest rate shown reflects the rate in effect at March 31, 2001. These securities are subject to demand features of either one, seven or thirty days. (--) Restricted Security (Note 5). # Security not registered under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. ## Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. + Amount represents less than 0.1%. Nations Municipal Reserves had the following industry concentrations greater than 10% at March 31, 2001 (as a percentage of net assets): Healthcare Revenue 22.39% Education Revenue 17.85%
SEE NOTES TO FINANCIAL STATEMENTS. 26 31 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 96.8% CALIFORNIA -- 92.4% $ 3,730 Alameda - Contra Costa County, California Schools Financing Authority Certificates of Participation, (Capital Improvements Financing Project) Series 1997B, (Canadian Imperial Bank of Commerce LOC), 3.250% 07/01/23**................. $ 3,730 2,900 Alameda - Contra Costa County, California Schools Financing Authority Certificates of Participation, (Capital Improvements Financing Project) Series 2000F, (KBC Bank NV LOC), 3.250% 08/01/23**................. 2,900 1,900 Alameda - Contra Costa County, California Schools Financing Authority Certificates of Participation, (Capital Improvements Financing Project) Series 2000I, (AMBAC Insured, KBC Bank NV SBPA), 3.250% 08/01/29**................. 1,900 27,000 Alameda County, California GO TRAN, Series 2000, 5.000% 07/02/01................... 27,065 8,160 Anaheim, California Public Financing Authority Lease Floating Revenue, Series 2000PA-641 3.300% 09/01/24**##............... 8,160 6,900 Anaheim, California Unified High School District Certificates of Participation, (School Faculty Bridging Funding Project) Series 1999, (FSA Insured, First Union National Bank SBPA), 3.500% 09/01/13**........................ 6,900 2,300 Anaheim, California Unified High School District Certificates of Participation, (School Faculty Bridging Funding Project) Series 1999, (FSA Insured, First Union National Bank SBPA), 3.500% 09/01/29**................. 2,300 5,600 Azusa, California Multi-Family Housing Revenue Refunding, (Pacific Glen Apartments Project) Series 1994, (FNMA Collateral Agreement), 3.350% 07/15/15**................. 5,600 6,000 California Community College Financing Authority TRAN, Series 2000B, 5.000% 08/03/01................... 6,024 7,845 California Eastern Municipal Water District Water and Sewer Revenue, Certificates of Participation, Series 1993B, (FGIC Insured), 3.400% 07/01/20**................. 7,845 8,105 California Educational Facilities Authority Revenue, (Stanford University Project) Series 1999, 3.300% 06/01/27**##............... 8,105
- -------------------------------------------------------------
PRINCIPAL AMOUNT VALUE (000) (000) CALIFORNIA -- (CONTINUED) $14,275 California Educational Facilities Authority Revenue, Series 2000A, 3.150% 10/01/27**##............... $ 14,275 32,000 California GO, 2.000% 04/04/01................... 32,000 21,300 California GO, 2.250% 04/04/01................... 21,300 2,000 California GO, 2.000% 04/06/01................... 2,000 6,000 California GO, 2.300% 06/05/01................... 6,000 15,100 California GO, 3.460% 04/01/04**##............... 15,100 10,000 California GO, 3.150% 02/01/06**##............... 10,000 16,380 California GO, 3.150% 10/01/24**##............... 16,380 10,000 California GO, 3.150% 10/01/28**##............... 10,000 12,785 California GO, Series 1999, (MBIA Insured), 3.300% 12/01/18**##............... 12,785 6,500 California Health Facilities Financing Authority Revenue Refunding, (St. Joseph Health Systems Project) Series 1985A, 3.550% 07/01/12**................. 6,500 1,100 California Health Facilities Financing Authority Revenue, (Adventist Health Systems Project) Series 1998B, 3.800% 09/01/28**................. 1,100 7,800 California Health Facilities Financing Authority Revenue, (Catholic Healthcare Project) Series 1988A, 3.450% 07/01/09**................. 7,800 5,000 California Health Facilities Financing Authority Revenue, (Childrens Hospital Project) Series 1991A, 7.125% 06/01/01................... 5,133 8,255 California Health Facilities Financing Authority Revenue, (Industry Hospital Adventist Project) Series 1998C, 3.800% 09/01/15**................. 8,255 10,995 California Health Facilities Financing Authority Revenue, Series 1998CMC-6, 3.350% 06/01/12**##............... 10,995 6,365 California Health Facilities Financing Authority Revenue, Series 1999, 3.450% 12/01/34**##............... 6,365 11,950 California Housing Finance Agency Multi-Unit Rental Housing Revenue, 3.150% 08/01/10**##............... 11,950 2,000 California Housing Finance Agency Multi-Unit Rental Housing Revenue, Series 1992, (MBIA Insured), 3.450% 08/01/10**................. 2,000
SEE NOTES TO FINANCIAL STATEMENTS. 27 32 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 3,270 California Housing Finance Agency Multi-Unit Rental Housing Revenue, Series 1992A, (MBIA Insured), 3.150% 08/01/08**................. $ 3,270 2,600 California Housing Finance Agency Revenue, Series 1995, 3.350% 08/01/26**##............... 2,600 3,400 California Housing Finance Agency Revenue, Series 2000G, AMT, (FSA Insured), 3.450% 08/01/31**................. 3,400 2,300 California M-S-R Public Power Agency Revenue, (San Juan Project) Series 1997E, (MBIA Insured), 3.550% 07/01/22**................. 2,300 9,300 California M-S-R Public Power Agency Revenue, (San Juan Project) Series 1998F, (MBIA Insured), 3.600% 07/01/22**................. 9,300 3,790 California Pollution Control Financing Authority PCR, (Chevron USA, Inc. Project) Series 1984, 4.150% 05/15/02**................. 3,790 1,100 California Pollution Control Financing Authority Resource Recovery PCR, (Delano Project) Series 1991, AMT, 3.750% 08/01/19**................. 1,100 3,400 California Pollution Control Financing Authority Resource Recovery Revenue, (Burney Forest Products Project) Series 1988, (Fleet Bank, N.A. LOC), 3.800% 09/01/20**................. 3,400 1,700 California Pollution Control Financing Authority Solid Waste Disposal Revenue, (Santa Clara Valley Industries Project) Series 1998A, AMT, 3.400% 03/01/18**................. 1,700 17,300 California Pollution Control Financing Authority Solid Waste Disposal Revenue, (Shell Oil - Martinez Refining Company Project) Series 1994A, AMT, 3.600% 10/01/24**................. 17,300 4,300 California Pollution Control Financing Authority Solid Waste Disposal Revenue, (Shell Oil - Martinez Refining Company Project) Series 1996B, AMT, (GTY AGMT), 3.600% 10/01/31**................. 4,300 35,000 California School Cash Reserve Program Authority, Series 2000, 5.250% 07/03/01................... 35,095 10,000 California South Placer Wastewater Authority Wastewater Revenue, Series 2000B, (FGIC Insured), 3.400% 11/01/35**................. 10,000 11,500 California State Department of Water Resources Revenue, Series 1999-127, (FGIC Insured, Morgan Guaranty), 3.380% 12/01/22**##............... 11,500
- -------------------------------------------------------------
PRINCIPAL AMOUNT VALUE (000) (000) CALIFORNIA -- (CONTINUED) $17,270 California State Department of Water Resources, 3.150% 12/01/29**##............... $ 17,270 6,000 California State Floating Rate Receipts, Series 1997SG-91, 3.300% 10/01/21**##............... 6,000 8,685 California State Floating Rate Receipts, Series 1997SG-95, 3.300% 09/01/16**##............... 8,685 35,000 California State GO, Floating Rate Receipts, Series 1998PT-1072, 3.300% 02/01/21**##............... 35,000 15,950 California State GO, Municipal Trust Receipts, Series 1997SGA-54, (AMBAC Insured, Societe Generale SBPA), 3.500% 06/01/21**##............... 15,950 5,530 California State GO, Series 1997, AMT, Mandatory Put 12/01/01, 3.600% 12/01/32................... 5,526 2,500 California State, Series 132, 3.380% 04/01/08**##............... 2,500 7,865 California Statewide Communities Development Authority Certificates of Participation Revenue Refunding, (House Ear Institute Project) Series 1993, (Morgan Guaranty Trust LOC), 3.850% 12/01/18**................. 7,865 1,000 California Statewide Communities Development Authority Certificates of Participation, (North California Retired Officers Project) Series 1996, 3.600% 06/01/26**................. 1,000 7,800 California Statewide Communities Development Authority Certificates of Participation, (Sutter Health Obligation Group Project) Series 1995, 3.600% 07/01/15**................. 7,800 9,600 California Statewide Communities Development Authority Certificates of Participation, (University Retirement Community at Davis Project) Series 1998, (Bank of Scotland LOC), 3.600% 11/15/28**................. 9,600 1,000 California Statewide Communities Development Authority Lease Revenue, Floating Rate Receipts, Series 1999PA-457, 3.350% 10/01/33**##............... 1,000 4,600 California Statewide Communities Development Authority Multi-Family Housing Revenue, (Pittsburg Plaza Apartments Project) Series 1997K, AMT, 3.450% 09/01/27**................. 4,600
SEE NOTES TO FINANCIAL STATEMENTS. 28 33 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 6,150 California Statewide Communities Development Authority Revenue Certificates of Participation, (John Muir/MT Diablo Healthcare Project) Series 1997, (AMBAC Insured, Chase Manhattan Bank SBPA), 3.750% 08/15/27**................. $ 6,150 25,940 California Statewide Communities Development Authority Special Facilities Revenue, Series 1999, 3.350% 10/01/34**##............... 25,940 8,700 California Transit Finance Authority Revenue, Series 1997, (FSA Insured, Credit Suisse First Boston LOC), 3.250% 10/01/27**................. 8,700 8,100 California Wateruse Finance Authority Revenue, Series 1998, (FSA Insured), 3.250% 05/01/28**................. 8,100 2,900 Carlsbad, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Program) Series 2000, (FSA Insured, First Union National Bank SBPA), 3.500% 09/01/30**................. 2,900 2,500 Carlsbad, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Program) Series 2001, (First Union National Bank SBPA), 3.500% 09/01/24**................. 2,500 2,500 Carlsbad, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Program) Series 2001, (FSA Insured, First Union National Bank SBPA), 3.500% 09/01/32**................. 2,500 3,000 East Bay Municipal Utility District Water, 2.050% 04/04/01................... 3,000 4,000 East Bay Municipal Utility District Water, 2.150% 04/04/01................... 4,000 4,900 East Bay Municipal Utility District Water, 2.250% 04/05/01................... 4,900 10,000 East Bay Municipal Utility District Water, 3.950% 04/10/01................... 10,000 4,000 Fremont, California Multi-Family Housing Revenue, (Creekside Village Apartments Project) Series 1985D, (KBC Bank N.V. LOC), 3.400% 09/01/07**................. 4,000 3,165 Fremont, California Multi-Family Housing Revenue, (Mission Wells Project) Series 1985E, 3.500% 09/01/14**................. 3,165 2,000 Hayward, California Multi-Family Housing Revenue, (Shorewood Project) Series 1984A, (FGIC Insured), 3.400% 08/01/14**................. 2,000
- -------------------------------------------------------------
PRINCIPAL AMOUNT VALUE (000) (000) CALIFORNIA -- (CONTINUED) $ 4,545 Indio, California Multi-Family Housing Revenue, (Western Federal Savings Project) Series 1985, (Wells Fargo and Company LOC), 3.550% 06/01/05**................. $ 4,545 9,300 Irvine Ranch, California Water District Certificates of Participation, (Capital Improvement Project) Series 1986, (Toronto Dominion Bank LOC), 3.600% 08/01/16**................. 9,300 5,700 Irvine Ranch, California Water District GO, (Capital Improvement District Project) Series 1989, 3.750% 06/01/15**................. 5,700 3,400 Irvine Ranch, California Water District GO, Series 1995, (Commerzbank A.G. LOC), 3.600% 01/01/21**................. 3,400 6,500 Irvine Ranch, California Water District Numbers 102, 103, 105, 106 Revenue, GO, Series 1995, 3.750% 09/01/06**................. 6,500 2,100 Irvine Ranch, California Water District Revenue, Series 1985, (Landesbank Hessen-Thueringen LOC), 3.600% 10/01/10**................. 2,100 2,000 Irvine, California Improvement Bond Act of 1915, (Special Assessment District 85-7 Project) Series 1986I, (Canadian Imperial Bank of Commerce LOC), 3.350% 09/02/11**................. 2,000 7,738 Irvine, California Revenue Improvement Bond Act of 1915, (Assessment District No. 87-8 Project) Series 1999, 3.600% 09/02/24**................. 7,738 1,000 Irvine, California Revenue Improvement Bond Act of 1915, (Assessment District No. 97 Project) Series 1997-16, (Societe Generale LOC), 3.600% 09/02/22**................. 1,000 13,500 Irvine, California Revenue Improvement Bond Act of 1915, (Assessment District No. 97-17 Project) Series 1998, 3.600% 09/02/23**................. 13,500 30,000 Kern County, California TRAN, Series 2000, 5.000% 07/02/01................... 30,051 6,000 Livermore, California Certificates of Participation, Series 2000, (Dexia Public Finance SBPA), 3.200% 10/01/30**................. 6,000 13,000 Long Beach, California GO, 3.250% 05/15/15**##............... 13,000 1,060 Long Beach, California Harbor Revenue, Series 2000PA-651, AMT, (FGIC Insured), 3.350% 05/15/19**##............... 1,060 18,400 Long Beach, California Harbor, 2.250% 06/06/01................... 18,400
SEE NOTES TO FINANCIAL STATEMENTS. 29 34 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 9,995 Long Beach, California Municipal Securities Trust Receipts Revenue, Series 1998CMC-1, 3.400% 05/15/07**##............... $ 9,995 23,150 Los Angeles County, California Capital Asset Lease Corporation, 2.750% 04/04/01................... 23,150 4,000 Los Angeles County, California Certificates of Participation, (Schools Pooled Financing Project) Series 2000B, 5.000% 10/02/01................... 4,020 30,000 Los Angeles County, California GO TRAN, Series 2000A, 5.000% 06/29/01................... 30,153 16,170 Los Angeles County, California Metropolitan Transportation Authority Revenue, Series 1996SGB-3, (FSA Insured), 3.150% 07/01/16**##............... 16,170 3,000 Los Angeles County, California Pension Obligation Revenue Refunding, Series 1996B, (AMBAC Insured, Dexia Credit Local de France SBPA), 3.350% 06/30/07**................. 3,000 13,000 Los Angeles County, California Pension Obligation Revenue Refunding, Series 1996C, (AMBAC Insured, Bank of Nova Scotia SBPA), 3.350% 06/30/07**................. 13,000 3,600 Los Angeles County, California Transportation Commission Sales Tax Revenue Refunding, Series 1992A, (FGIC Insured, Bayerische Landesbank SBPA), 3.350% 07/01/12**................. 3,600 51,000 Los Angeles, California Department of Water and Power Electric Plant Revenue, Series 2000B-2, 3.300% 02/01/10**................. 51,000 2,500 Los Angeles, California Department of Water and Power Electric Plant Revenue, Series 2000D, (Toronto Dominion Bank LOC), 3.500% 02/01/10**................. 2,500 6,700 Los Angeles, California Department of Water and Power Electric Plant Revenue, Series 2000E-2, 3.500% 02/01/10**................. 6,700 1,955 Los Angeles, California Industrial Development Authority IDR, (Delta Tau Data Systems, Inc. Project) Series 1998, AMT, 3.300% 08/01/23**................. 1,955 22,100 Los Angeles, California Multi-Family Housing Revenue, (Fountain Park Project) Series 1999P, AMT, 3.300% 04/15/33**................. 22,100
- -------------------------------------------------------------
PRINCIPAL AMOUNT VALUE (000) (000) CALIFORNIA -- (CONTINUED) $10,000 Los Angeles, California Wastewater Systems Revenue, Series 1996SGA-26, (MBIA Insured, Societe Generale SBPA), 3.500% 06/01/24**##............... $ 10,000 18,900 Los Angeles, California Wastewater Systems, 3.900% 04/10/01................... 18,900 6,060 Los Angles County, California Capital Asset Lease Corporation, 2.400% 06/06/01................... 6,060 13,000 Los Angles County, California Department Water and Power Electric Plant Revenue Refunding, Series 1992, 6.375% 02/01/20**................. 13,663 20,500 Los Angles County, California Department Water and Power Waterworks Revenue, Series 2001B-1, (Dexia Public Finance SBPA), 3.250% 07/01/35**................. 20,500 29,000 Metropolitan Water District of Southern California Waterworks Revenue, Series 2000B-1, (Westdeutsche Landesbank SBPA) 3.600% 07/01/35**................. 29,000 3,100 Monterey County, California Financing Authority Revenue, (Reclamation and Distribution Projects) Series 1995, (Dexia Credit Local de France LOC), 3.400% 09/01/36**................. 3,100 15,000 Oakland-Alameda County, California Coliseum Authority Lease Revenue, 3.300% 02/01/25**................. 15,000 1,000 Oakland-Alameda County, California Coliseum Authority Lease Revenue, (Coliseum Project) Series 2000C-1, 3.350% 02/01/25**................. 1,000 12,000 Orange County, California Airport Development Revenue Refunding, Series 1998G-3, (FNMA Collateral Agreement), 3.300% 11/15/28**................. 12,000 1,400 Orange County, California Apartment Development Revenue Refunding, (Aliso Creek Project) Series 1992B, 3.350% 11/01/22**................. 1,400 11,800 Orange County, California Apartment Development Revenue Refunding, (Bluffs Apartments Project) Series 1999C, 3.350% 12/01/29**................. 11,800 31,000 Orange County, California Apartment Development Revenue, (Bear Brand Apartments Project) Series 1985Z, (KBC Bank N.V. LOC), 3.400% 11/01/07**................. 31,000
SEE NOTES TO FINANCIAL STATEMENTS. 30 35 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $ 1,600 Orange County, California Apartment Development Revenue, (Pointe Niguel Partners Project) Series 1992C, (FHLMC Collateral Agreement), 3.350% 11/01/22**................. $ 1,600 2,670 Orange County, California Apartment Development Revenue, (Trabuco Woods Project) Series 1998J, (FNMA Collateral Agreement), 3.300% 11/15/28**................. 2,670 20,000 Orange County, California Housing Authority Apartment Development Revenue Refunding, (Oasis Martinique Project) Series 1998I, (FNMA Collateral Agreement), 3.350% 06/15/28**................. 20,000 1,400 Orange County, California Industrial Development Authority IDR, (Control Air Conditioning Project) Series 1997A, AMT, 3.500% 05/01/22**................. 1,400 15,000 Orange County, California Local Transit Authority, 3.900% 04/10/01................... 15,000 2,400 Orange County, California Special Assessment Improvement Bond, (Assessment District No. 88 Project) Series 1988-1, (Societe Generale LOC), 3.800% 09/02/18**................. 2,400 5,000 Orange County, California, Special Financing Authority, Revenue, Series 1995C, (AMBAC Insured), 3.400% 11/01/14**................. 5,000 1,200 Paramount, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Project) Series 1997, 3.500% 09/01/08**................. 1,200 1,940 Paramount, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Project) Series 1997, 3.500% 09/01/27**................. 1,940 3,000 Rancho, California Water District Financing Authority Revenue, Series 1996, (Toronto Dominion Bank LOC), Mandatory Put 09/15/01, 4.700% 08/15/21................... 3,011 9,400 Riverside County, California Community Facilities District Special Tax Revenue Refunding, Series 1997, (KBC Bank N.V. LOC), 3.450% 09/01/14**................. 9,400 4,500 Sacramento County, California Housing Authority Multi-Family Housing Revenue, (California Place Apartments Project) Series 2001B, (FNMA Collateral Agreement), 3.420% 02/15/31**................. 4,500
- -------------------------------------------------------------
PRINCIPAL AMOUNT VALUE (000) (000) CALIFORNIA -- (CONTINUED) $ 5,100 Sacramento County, California Multi- Family Housing Revenue, Series 1985B, (Bank One Arizona, N.A. LOC), 3.350% 04/15/07**................. $ 5,100 7,500 Sacramento County, California Municipal Utility District, 2.150% 05/10/01................... 7,500 15,000 Sacramento County, California TRAN, Series 2000, 5.000% 10/04/01................... 15,079 1,000 Sacramento County, California TRAN, Series 2000, 5.250% 10/04/01................... 1,007 1,900 San Bernardino, California Housing Authority Multi-Family Housing Revenue Refunding, (Victoria Terrance Project) Series 1992A, (Redlands Federal Bank LOC, FHLB LOC), 3.500% 06/01/15**................. 1,900 17,710 San Diego, California Housing Authority Multi-Family Housing Revenue, Series 2000, 2.850% 04/01/26**##............... 17,710 24,465 San Diego, California Unified School District TRAN, Series 2000A, 5.250% 10/04/01................... 24,679 15,500 San Francisco Bay Area Transit, 2.850% 06/20/01................... 15,500 14,300 San Francisco City and County, California Airport Commission International Airport Revenue, Municipal Trust Receipts, Series 1997SGA-50, AMT, (MBIA Insured), 3.500% 05/01/16**##............... 14,300 8,990 San Francisco City and County, California Airport Commission International Airport Revenue, Series 1996, 3.300% 05/01/21**##............... 8,990 16,000 San Francisco City and County, California Financing Authority Corporate Lease Revenue, (Moscone Center Expansion Project) Series 2000-2, (AMBAC Insured), 3.300% 04/01/30**................. 16,000 37,700 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (3rd and Mission Street Project) Series 1999C, (Bayerische Hypotheken und Vereinsbank LOC), 3.450% 07/01/34**................. 37,700 8,025 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (Maria Manor Apartments) Series 2000F, (Citibank N.A. LOC), 3.500% 12/01/33**................. 8,025
SEE NOTES TO FINANCIAL STATEMENTS. 31 36 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
PRINCIPAL AMOUNT VALUE (000) (000) - ------------------------------------------------------------- CALIFORNIA -- (CONTINUED) $16,640 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (Notre Dame Apartments Project) Series 2000G, (Citibank N.A. LOC), 3.500% 12/01/33**................. $ 16,640 4,000 San Francisco City and County, California, 3.000% 05/29/01................... 4,000 15,100 San Francisco, California Airport Subordinate, 2.150% 05/24/01................... 15,100 3,810 San Francisco, California Airport Subordinate, 2.150% 05/25/01................... 3,810 5,000 San Jose, California International Airport, 2.800% 04/10/01................... 5,000 12,700 San Jose, California International Airport, 2.900% 06/13/01................... 12,700 10,700 San Jose-Santa Clara, California Water and Sewer Financing Authority Revenue, Series 1995B, (FGIC Insured, Bank of Nova Scotia SBPA), 3.350% 11/15/11**................. 10,700 2,600 Santa Ana, California Health Facilities Revenue, (Town and Country Project) Series 1990, (Banque Nationale de Paris LOC), 3.850% 10/01/20**................. 2,600 5,900 Santa Clara County, California Housing Authority Multi-Family Housing Revenue Refunding, (Benton Park Century Apartments) Series 1995A, (FNMA Collateral Agreement), 3.300% 12/15/25**................. 5,900 13,700 Simi Valley, California Community Development Agency Multi-Family Housing Revenue, Series 1985A, 3.350% 05/01/10**................. 13,700 25,000 South Coast, California Local Education Agencies TRAN, Series 2000, 5.000% 07/03/01................... 25,047 1,000 Southern California Metropolitan Water District Waterworks Revenue, Series 2000B-2, (Westdeutsche Landesbank SBPA), 3.400% 07/01/35**........................ 1,000 10,000 Southern California Public Power Authority Transmission Revenue Refunding, (Southern Transmission Project) Series 2000A, (FSA Insured, Westdeutsche Landesbanken SBPA), 3.400% 07/01/23**................. 10,000 15,000 Southern California Public Power Authority Transmission Revenue, (Southern Transmission Project) Series 1991, (AMBAC Insured, Barclays Bank plc LOC), 3.350% 07/01/19**................. 15,000
- -------------------------------------------------------------
PRINCIPAL AMOUNT VALUE (000) (000) CALIFORNIA -- (CONTINUED) $ 4,030 Southern Kern, California Unified School District Certificates of Participation, (Building Program) Series 1998A, (FSA Insured), 3.500% 09/01/26**................. $ 4,030 5,300 Tustin, California Improvement Bond Act of 1915, (Reassessment District No. 95-2 Project) Series 1996A, 3.600% 09/02/13**................. 5,300 11,300 University of California Revenue, Series 1998PT-1057, 3.300% 09/01/19**##............... 11,300 27,100 Ventura County, California Public Financing Authority Revenue, 2.450% 08/10/01................... 27,100 ---------- 1,515,771 ---------- GUAM -- 0.4% 6,000 Guam Power Authority, 2.450% 06/12/01................... 6,000 ---------- PUERTO RICO -- 4.0% 21,330 Puerto Rico Commonwealth Infrastructure Financing Authority, Series 2000-2, 3.350% 10/01/32**##............... 21,330 18,725 Puerto Rico Infrastructure Financing Authority, 3.150% 10/01/34**##............... 18,725 16,444 Puerto Rico, 2.150% 04/23/01................... 16,444 9,986 Puerto Rico, 3.000% 08/23/01................... 9,986 ---------- 66,485 ---------- TOTAL MUNICIPAL BONDS AND NOTES (Cost: $1,588,256)................ 1,588,256 ----------
TOTAL INVESTMENTS (Cost $1,588,256*).......... 96.8% $1,588,256 ---------- OTHER ASSETS AND LIABILITIES (NET)........... 3.2% Receivable for investment securities sold............................... $ 39,740 Interest receivable.................. 14,414 Investment advisory fee payable...... (209) Administration fee payable........... (28) Shareholder servicing and distribution fees payable.......... (554) Due to custodian..................... (32) Distributions payable................ (667) Accrued Trustees' fees and expenses........................... (27) Accrued expenses and other liabilities........................ (135) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET).................. 52,502 ---------- NET ASSETS.................... 100.0% $1,640,758 ==========
SEE NOTES TO FINANCIAL STATEMENTS. 32 37 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001
VALUE (000) - -------------------------------------------------------------- NET ASSETS CONSIST OF: Undistributed net investment income............................. $ 57 Accumulated net realized gain on investments sold................... 85 Paid-in capital...................... 1,640,616 ---------- NET ASSETS........................... $1,640,758 ========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($30,109 / 30,106 shares outstanding)....................... $1.00 ----- ----- INSTITUTIONAL SHARES: ($1,000,010 / 1,000,010 shares outstanding)....................... $1.00 ----- ----- TRUST CLASS SHARES: ($338,801,339 / 338,794,470 shares outstanding)....................... $1.00 ----- ----- ADVISER CLASS SHARES: ($318,737,289 / 318,692,292 shares outstanding)....................... $1.00 ----- ----- INVESTOR CLASS SHARES: ($226,490,388 / 226,497,840 shares outstanding)....................... $1.00 ----- ----- DAILY CLASS SHARES: ($755,635,196 / 755,600,243 shares outstanding)....................... $1.00 ----- ----- INVESTOR B SHARES: ($64,035 / 64,030 shares outstanding)....................... $1.00 ----- -----
- --------------- * Aggregate cost for federal tax purposes. ** Variable rate demand notes. The interest rate shown reflects the rate in effect at March 31, 2001. These securities are subject to demand features of either one, seven or thirty days. ## Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional buyers. Nations California Tax-Exempt Reserves had the following industry concentrations greater than 10% at March 31, 2001 (as a percentage of net assets): Housing Revenue 15.92% Water Revenue 12.56% SEE NOTES TO FINANCIAL STATEMENTS. 33 38 NATIONS RESERVES MONEY MARKET FUNDS STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2001 ABBREVIATIONS: AMBAC American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax BAN Bond Anticipation Note BECCS Bearer Corpora Conversion System FFCB Federal Farm Credit Bank FGIC Financial Guaranty Insurance Corporation FGIC-TCRS Financial Guaranty Insurance Corporation -- Transferable Custodial Receipts FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Financial Security Assurance GIC Guaranteed Investment Contracts GNMA Government National Mortgage Association GO General Obligation GTD STD LNS Guaranteed Student Loan GTY-AGMT Guarantee Agreement IDR Industrial Development Revenue LOC Letter of Credit MBIA Municipal Bond Insurance Association MTN Medium Term Note PCR Pollution Control Revenue PSF-GTD Permanent School Fund Guarantee RAN Revenue Anticipation Note SBPA Standby Bond Purchase Agreement SLMA Student Loan Marketing Association TIGR Treasury Investor Growth Receipt TRAN Tax and Revenue Anticipation Note TRIB Treasury Inflation Index Bond
SEE NOTES TO FINANCIAL STATEMENTS. 34 39 (This page intentionally left blank) 35 40 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF OPERATIONS For the year ended March 31, 2001 CASH MONEY MARKET RESERVES RESERVES ----------------------------------------- (IN THOUSANDS) INVESTMENT INCOME: Interest.................................................... $ 2,864,042 $ 529,391 -------------- -------------- EXPENSES: Investment advisory fee..................................... 66,488 12,371 Administration fee.......................................... 44,325 8,247 Transfer agent fees......................................... 1,368 249 Custodian fees.............................................. 2,338 502 Trustees' fees and expenses................................. 20 20 Registration and filing fees................................ 5,187 1,007 Legal and audit fees........................................ 218 89 Interest expense............................................ -- 15 Printing expense............................................ 939 107 Other....................................................... 514 136 -------------- -------------- Subtotal................................................ 121,397 22,743 Shareholder servicing and distribution fees: Trust Class Shares........................................ 1,963 35 Institutional Class Shares................................ 50 30 Liquidity Class Shares.................................... 13,147 4,655 Adviser Class Shares...................................... 12,392 1,556 Investor Class Shares..................................... 26,711 120 Market Class Shares....................................... 13,663 6,218 Daily Class Shares........................................ 70,633 29 Service Class Shares...................................... 6,874 1,541 Investor B Shares......................................... 137 30 Investor C Shares......................................... 8 --* -------------- -------------- Total expenses.......................................... 266,975 36,957 Fees waived by investment advisor, administrator and/or distributor............................................... (43,500) (10,005) Fees reduced by credits allowed by the custodian............ (74) (66) -------------- -------------- Net expenses............................................ 223,401 26,886 -------------- -------------- NET INVESTMENT INCOME/(LOSS)................................ 2,640,641 502,505 -------------- -------------- Net realized gain/(loss) on investments..................... 179 (12) -------------- -------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 2,640,820 $ 502,493 ============== ==============
- --------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 36 41 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF OPERATIONS (CONTINUED) TREASURY GOVERNMENT MUNICIPAL CALIFORNIA TAX- RESERVES RESERVES RESERVES EXEMPT RESERVES - ------------------------------------------------------------------------ $ 472,569 $ 156,364 $ 63,551 $ 62,948 -------------- -------------- -------------- ----------------- 11,369 3,734 2,317 2,671 7,579 2,489 1,545 1,780 236 65 51 60 428 135 89 104 20 20 20 20 467 609 96 29 93 62 66 70 3 43 -- -- 75 72 253 197 89 -- 53 56 -------------- -------------- -------------- ----------------- 20,359 7,229 4,490 4,987 454 146 471 345 4 16 4 --* 4,015 3,119 527 -- 4,094 1,381 247 1,183 3,474 576 197 937 6,548 2,008 734 -- 5,596 1,361 3,005 4,180 2,775 196 78 -- 2 4 1 --* -- 2 --* -- -------------- -------------- -------------- ----------------- 47,321 16,038 9,754 11,632 (8,539) (4,845) (1,834) (1,418) (6) (15) -- -- -------------- -------------- -------------- ----------------- 38,776 11,178 7,920 10,214 -------------- -------------- -------------- ----------------- 433,793 145,186 55,631 52,734 -------------- -------------- -------------- ----------------- 94 114 5 227 -------------- -------------- -------------- ----------------- $ 433,887 $ 145,300 $ 55,636 $ 52,961 ============== ============== ============== =================
SEE NOTES TO FINANCIAL STATEMENTS. 37 42 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
CASH RESERVES MONEY MARKET RESERVES ----------------------------------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 ----------------------------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)....................... $ 2,640,641 $ 1,373,822 $ 502,505 $ 174,898 Net realized gain/(loss) on investments............ 179 --* (12) 37 -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations.................................. 2,640,820 1,373,822 502,493 174,935 Distributions to shareholders from net investment income: Capital Class Shares............................. (787,904) (414,318) (334,604) (116,028) Institutional Class Shares....................... (7,119) -- (4,332) -- Trust Class Shares............................... (120,416) (76,641) (2,106) --* Liquidity Class Shares........................... (94,937) (87,223) (33,375) (7,507) Adviser Class Shares............................. (297,847) (197,413) (37,269) (8,010) Investor Class Shares............................ (452,859) (165,797) (1,952) --* Market Class Shares.............................. (176,826) (109,461) (80,338) (42,564) Daily Class Shares............................... (665,980) (308,509) (265) (154) Service Class Shares............................. (36,085) (14,305) (8,122) (609) Investor B Shares................................ (636) (147) (140) (26) Investor C Shares................................ (34) (8) (2) --* Net increase/(decrease) in net assets from shares of beneficial interest transactions.............. 20,581,223 28,501,193 3,382,151 5,195,291 -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets.............. 20,581,400 28,501,193 3,382,139 5,195,328 NET ASSETS: Beginning of period................................ 36,660,676 8,159,483 6,672,258 1,476,930 -------------- -------------- -------------- -------------- End of period...................................... $ 57,242,076 $ 36,660,676 $ 10,054,397 $ 6,672,258 ============== ============== ============== ============== Undistributed net investment income/(loss)/(distributions in excess of net investment income) at end of period.............. $ 25 $ 27 $ 28 $ 4 ============== ============== ============== ==============
- --------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 38 43 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
TREASURY RESERVES GOVERNMENT RESERVES MUNICIPAL RESERVES - ----------------------------------- ------------------------------- ------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/01 3/31/00 3/31/01 3/31/00 3/31/01 3/31/00 - ------------------------------------------------------------------------------------------------------- $ 433,793 $ 286,460 $ 145,186 $ 83,814 $ 55,631 $ 39,643 94 2 114 (2) 5 5 -------------- -------------- -------------- -------------- -------------- -------------- 433,887 286,462 145,300 83,812 55,636 39,648 (83,062) (60,453) (32,120) (23,268) (7,021) (5,572) (608) -- (2,298) -- (338) -- (26,997) (25,621) (8,678) (5,300) (17,950) (14,226) (26,244) (15,194) (21,965) (5,772) (2,369) (3,373) (94,314) (69,878) (32,013) (19,122) (3,604) (2,695) (56,909) (17,605) (9,210) (6,724) (2,012) (2,088) (81,182) (64,280) (25,362) (17,190) (5,638) (4,309) (50,590) (28,194) (12,508) (6,296) (16,473) (7,370) (13,878) (5,233) (1,004) (135) (223) (10) (9) (2) (17) (2) (3) --* -- -- (11) (5) --* -- 1,372,723 3,333,918 2,311,982 1,076,543 95,282 1,105,502 -------------- -------------- -------------- -------------- -------------- -------------- 1,372,817 3,333,920 2,312,096 1,076,541 95,287 1,105,507 6,535,833 3,201,913 1,788,489 711,948 1,510,602 405,095 -------------- -------------- -------------- -------------- -------------- -------------- $ 7,908,650 $ 6,535,833 $ 4,100,585 $ 1,788,489 $ 1,605,889 $ 1,510,602 ============== ============== ============== ============== ============== ============== $ -- $ -- $ -- $ --* $ -- $ -- ============== ============== ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 39 44 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
CALIFORNIA TAX-EXEMPT RESERVES ---------------------------------------------------- YEAR ENDED PERIOD ENDED PERIOD ENDED 3/31/01 3/31/00 5/14/99(a) ---------------------------------------------------- (IN THOUSANDS) Net investment income/(loss)................................ $ 52,734 $ 38,116 $ 7,788 Net realized gain/(loss) on investments..................... 227 (83) -- -------------- -------------- -------------- Net increase/(decrease) in net assets resulting from operations................................................ 52,961 38,033 7,788 Distributions to shareholders from net investment income: Capital Class Shares...................................... (1) -- -- Institutional Class Shares................................ --* -- -- Trust Class Shares........................................ (11,192) (8,899) -- Liquidity Class Shares.................................... -- -- -- Adviser Class Shares...................................... (14,676) (8,424) (3,459) Investor Class Shares..................................... (7,990) (7,183) (2,671) Market Class Shares....................................... -- -- -- Daily Class Shares........................................ (18,878) (13,611) (1,658) Service Class Shares...................................... -- -- -- Investor B Shares......................................... --* -- -- Investor C Shares......................................... -- -- -- Net increase/(decrease) in net assets from shares of beneficial interest transactions.......................... (98,352) 266,711 (112,293) -------------- -------------- -------------- Net increase/(decrease) in net assets....................... (98,128) 266,627 (112,293) NET ASSETS: Beginning of period......................................... 1,738,886 1,472,259 1,584,552 -------------- -------------- -------------- End of period............................................... $ 1,640,758 $ 1,738,886 $ 1,472,259 ============== ============== ============== Undistributed net investment income/(loss)/(distributions in excess of net investment income) at end of period......... $ 57 $ 60 $ 61 ============== ============== ==============
- --------------- * Amount represents less than $500. (a) Represents financial information from March 1, 1999 for the Pacific Horizon California Tax-Exempt Money Market Fund, which was reorganized into California Tax-Exempt Reserves on May 21, 1999. SEE NOTES TO FINANCIAL STATEMENTS. 40 45 NATIONS FUNDS STATEMENT OF CASH FLOWS For the year ended March 31, 2001
TREASURY RESERVES (000) --------------------------- Cash flows from operating and investing activities: Investment income received................................ $ 462,358 Payment of operating expenses............................. (65,981) Net increase from reverse repurchase agreements outstanding............................................. 189,549 Net purchases of short-term investments................... (1,524,221) ------------ Cash used by operating and investing activities............. $ (938,295) Cash flows from financing activities: Proceeds from Fund shares sold............................ 89,161,299 Payment for shares redeemed............................... (87,991,618) Distributions paid*....................................... (231,386) ------------ Cash provided by financing activities....................... 938,295 ----------- Increase in cash.......................................... -- Cash at beginning of year................................. -- ----------- Cash at end of year....................................... $ -- =========== RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES: Net increase in net assets resulting from operations........ $ 433,887 Increase in investments................................... $ (1,541,725) Increase in payable for reverse repurchase agreement transactions............................................ 189,549 Decrease in interest and dividends receivable............. 7,199 Decrease in accrued expenses and other payables........... (27,205) ------------ (1,372,182) ----------- Cash used by operating and investing activities............. $ (938,295) ===========
- --------------- * Non-cash activities include reinvestment of dividends of $217,909. SEE NOTES TO FINANCIAL STATEMENTS. 41 46 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY*
CASH RESERVES -------------------------------- YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 -------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 224,817,118 $ 122,820,854 Issued in exchange for Horizon Shares of Pacific Horizon Prime Fund (Note 8)...................................... -- 3,443,782 Issued as reinvestment of dividends........................ 432,286 213,947 Redeemed................................................... (213,854,542) (122,215,403) ------------- ------------- Net increase/(decrease).................................... $ 11,394,862 $ 4,263,180 ============= ============= INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 3,302,294 $ -- Issued as reinvestment of dividends........................ 3,832 -- Redeemed................................................... (2,655,011) -- ------------- ------------- Net increase/(decrease).................................... $ 651,115 $ -- ============= ============= TRUST CLASS SHARES:+ Sold....................................................... $ 4,283,411 $ 6,430,202 Issued as reinvestment of dividends........................ -- 39 Redeemed................................................... (3,326,358) (4,711,099) ------------- ------------- Net increase/(decrease).................................... $ 957,053 $ 1,719,142 ============= ============= LIQUIDITY CLASS SHARES: Sold....................................................... $ 19,973,701 $ 15,520,344 Issued as reinvestment of dividends........................ 60,897 52,021 Redeemed................................................... (19,954,688) (15,598,778) ------------- ------------- Net increase/(decrease).................................... $ 79,910 $ (26,413) ============= ============= ADVISER CLASS SHARES: Sold....................................................... $ 73,152,129 $ 57,106,751 Issued in exchange for Horizon Service Shares of Pacific Horizon Prime Fund (Note 8).............................. -- 3,971,137 Issued as reinvestment of dividends........................ 212,506 150,094 Redeemed................................................... (72,205,837) (57,317,806) ------------- ------------- Net increase/(decrease).................................... $ 1,158,798 $ 3,910,176 ============= ============= INVESTOR CLASS SHARES:+ Sold....................................................... $ 8,913,169 $ 15,821,010 Issued in exchange for Pacific Horizon Shares of Pacific Horizon Prime Fund (Note 8).............................. -- 2,543,535 Issued as reinvestment of dividends........................ 441,418 155,909 Redeemed................................................... (8,836,908) (11,452,337) ------------- ------------- Net increase/(decrease).................................... $ 517,679 $ 7,068,117 ============= ============= MARKET CLASS SHARES: Sold....................................................... $ 7,564,823 $ 4,232,500 Issued as reinvestment of dividends........................ 723 -- Redeemed................................................... (7,001,677) (2,940,000) ------------- ------------- Net increase/(decrease).................................... $ 563,869 $ 1,292,500 ============= ============= DAILY CLASS SHARES:+ Sold....................................................... $ 92,735,162 $ 63,799,324 Issued in exchange for S Shares of Pacific Horizon Prime Fund (Note 8)............................................ -- 1,587,435 Issued in exchange for X Shares of Pacific Horizon Prime Fund (Note 8)............................................ -- 2,180,033 Issued as reinvestment of dividends........................ 647,774 300,855 Redeemed................................................... (88,546,095) (58,114,647) ------------- ------------- Net increase/(decrease).................................... $ 4,836,841 $ 9,753,000 ============= ============= SERVICE CLASS SHARES:+ Sold....................................................... $ 12,714,469 $ 7,517,812 Issued in exchange for Y Shares of Pacific Horizon Prime Fund (Note 8)............................................ -- 237,185 Issued as reinvestment of dividends........................ 19,635 7,920 Redeemed................................................... (12,332,913) (7,250,599) ------------- ------------- Net increase/(decrease).................................... $ 401,191 $ 512,318 ============= ============= INVESTOR B SHARES:+ Sold....................................................... $ 35,425 $ 17,877 Issued as reinvestment of dividends........................ 570 128 Redeemed................................................... (17,462) (9,177) ------------- ------------- Net increase/(decrease).................................... $ 18,533 $ 8,828 ============= ============= INVESTOR C SHARES:+ Sold....................................................... $ 7,715 $ 1,398 Issued as reinvestment of dividends........................ 24 6 Redeemed................................................... (6,367) (1,059) ------------- ------------- Net increase/(decrease).................................... $ 1,372 $ 345 ============= ============= Total net increase/(decrease).............................. $ 20,581,223 $ 28,501,193 ============= =============
- --------------- * Since the Funds have sold, issued as reinvestment of dividends and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the amounts shown above for such transactions. + Cash Reserves Institutional Class, Trust Class, Investor Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on November 30, 2000, May 17, 1999, April 12, 1999, April 12, 1999, April 28, 1999, October 4, 1999 and October 5, 1999, respectively. SEE NOTES TO FINANCIAL STATEMENTS. 42 47 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
MONEY MARKET RESERVES ---------------------------------- YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ---------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 69,865,549 $ 47,793,102 Issued as reinvestment of dividends........................ 217,545 80,886 Redeemed................................................... (68,044,184) (44,405,146) ------------ ------------ Net increase/(decrease).................................... $ 2,038,910 $ 3,468,842 ============ ============ INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 1,895,717 $ -- Issued as reinvestment of dividends........................ 2,531 -- Redeemed................................................... (1,323,280) -- ------------ ------------ Net increase/(decrease).................................... $ 574,968 $ -- ============ ============ TRUST CLASS SHARES:+ Sold....................................................... $ 483,126 $ 38 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (415,743) -- ------------ ------------ Net increase/(decrease).................................... $ 67,383 $ 38 ============ ============ LIQUIDITY CLASS SHARES: Sold....................................................... $ 6,067,482 $ 2,774,560 Issued as reinvestment of dividends........................ 29,147 6,835 Redeemed................................................... (5,957,552) (1,836,319) ------------ ------------ Net increase/(decrease).................................... $ 139,077 $ 945,076 ============ ============ ADVISER CLASS SHARES: Sold....................................................... $ 6,130,144 $ 2,686,635 Issued as reinvestment of dividends........................ 33,199 6,832 Redeemed................................................... (6,094,892) (2,146,117) ------------ ------------ Net increase/(decrease).................................... $ 68,451 $ 547,350 ============ ============ INVESTOR CLASS SHARES:+ Sold....................................................... $ 129,285 $ 1 Issued as reinvestment of dividends........................ 76 -- Redeemed................................................... (38,983) -- ------------ ------------ Net increase/(decrease).................................... $ 90,378 $ 1 ============ ============ MARKET CLASS SHARES: Sold....................................................... $ 3,301,063 $ 1,714,300 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (3,029,063) (1,567,300) ------------ ------------ Net increase/(decrease).................................... $ 272,000 $ 147,000 ============ ============ DAILY CLASS SHARES: Sold....................................................... $ 17,017 $ 15,330 Issued as reinvestment of dividends........................ 264 152 Redeemed................................................... (14,245) (10,957) ------------ ------------ Net increase/(decrease).................................... $ 3,036 $ 4,525 ============ ============ SERVICE CLASS SHARES:+ Sold....................................................... $ 1,136,946 $ 144,210 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (1,014,286) (63,710) ------------ ------------ Net increase/(decrease).................................... $ 122,660 $ 80,500 ============ ============ INVESTOR B SHARES:+ Sold....................................................... $ 9,053 $ 3,658 Issued as reinvestment of dividends........................ 121 24 Redeemed................................................... (4,207) (1,742) ------------ ------------ Net increase/(decrease).................................... $ 4,967 $ 1,940 ============ ============ INVESTOR C SHARES:+ Sold....................................................... $ 1,102 $ 515 Issued as reinvestment of dividends........................ 1 -- Redeemed................................................... (782) (496) ------------ ------------ Net increase/(decrease).................................... $ 321 $ 19 ============ ============ Total net increase/(decrease).............................. $ 3,382,151 $ 5,195,291 ============ ============
- --------------- * Since the Funds have sold, issued as reinvestment of dividends and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the amounts shown above for such transactions. + Money Market Reserves Institutional Class, Trust Class, Investor Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on November 17, 2000, March 22, 2000, March 3, 2000, July 21, 1999, May 18, 1999, October 5, 1999 and January 6, 2000, respectively. SEE NOTES TO FINANCIAL STATEMENTS. 43 48 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
TREASURY RESERVES --------------------------------- YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ----------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 14,347,176 $ 9,167,835 Issued in exchange for Horizon Shares of Pacific Horizon Treasury Fund (Note 8)................................... -- 513,598 Issued as reinvestment of dividends........................ 52,817 40,314 Redeemed................................................... (13,526,386) (10,077,751) ------------ ------------ Net increase/(decrease).................................... $ 873,607 $ (356,004) ============ ============ INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 149,929 $ -- Issued as reinvestment of dividends........................ 444 -- Redeemed................................................... (120,801) -- ------------ ------------ Net increase/(decrease).................................... $ 29,572 $ -- ============ ============ TRUST CLASS SHARES:+ Sold....................................................... $ 2,934,101 $ 3,540,751 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (3,124,592) (3,034,413) ------------ ------------ Net increase/(decrease).................................... $ (190,491) $ 506,338 ============ ============ LIQUIDITY CLASS SHARES: Sold....................................................... $ 3,539,636 $ 2,222,465 Issued as reinvestment of dividends........................ 16,337 8,575 Redeemed................................................... (3,571,889) (2,170,666) ------------ ------------ Net increase/(decrease).................................... $ (15,916) $ 60,374 ============ ============ ADVISER CLASS SHARES: Sold....................................................... $ 31,384,727 $ 25,468,043 Issued in exchange for Horizon Service Shares of Pacific Horizon Treasury Fund (Note 8)........................... -- 1,727,418 Issued as reinvestment of dividends........................ 59,423 50,763 Redeemed................................................... (30,986,538) (26,130,165) ------------ ------------ Net increase/(decrease).................................... $ 457,612 $ 1,116,059 ============ ============ INVESTOR CLASS SHARES:+ Sold....................................................... $ 2,687,355 $ 2,089,505 Issued in exchange for Pacific Horizon Shares of Pacific Horizon Treasury Fund (Note 8)........................... -- 293,535 Issued as reinvestment of dividends........................ 39,011 12,983 Redeemed................................................... (2,599,436) (1,822,762) ------------ ------------ Net increase/(decrease).................................... $ 126,930 $ 573,261 ============ ============ MARKET CLASS SHARES: Sold....................................................... $ 3,861,000 $ 2,703,000 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (4,003,000) (2,361,000) ------------ ------------ Net increase/(decrease).................................... $ (142,000) $ 342,000 ============ ============ DAILY CLASS SHARES:+ Sold....................................................... $ 24,898,080 $ 17,039,452 Issued in exchange for X Shares of Pacific Horizon Treasury Fund (Note 8)............................................ -- 503,310 Issued as reinvestment of dividends........................ 44,119 26,680 Redeemed................................................... (24,808,149) (16,721,667) ------------ ------------ Net increase/(decrease).................................... $ 134,050 $ 847,775 ============ ============ SERVICE CLASS SHARES:+ Sold....................................................... $ 5,344,186 $ 2,616,632 Issued in exchange for Y Shares of Pacific Horizon Treasury Fund (Note 8)............................................ -- 106,210 Issued as reinvestment of dividends........................ 5,749 2,668 Redeemed................................................... (5,250,733) (2,481,475) ------------ ------------ Net increase/(decrease).................................... $ 99,202 $ 244,035 ============ ============ INVESTOR B SHARES:+ Sold....................................................... $ 242 $ 78 Issued as reinvestment of dividends........................ 9 2 Redeemed................................................... (94) -- ------------ ------------ Net increase/(decrease).................................... $ 157 $ 80 ============ ============ Total net increase/(decrease).............................. $ 1,372,723 $ 3,333,918 ============ ============
- --------------- * Since the Funds have sold, issued as reinvestment of dividends and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the amounts shown above for such transactions. + Treasury Reserves Institutional Class, Trust Class, Investor Class, Daily Class, Service Class and Investor B Shares commenced operations on November 21, 2000, May 17, 1999, April 12, 1999, April 12, 1999, May 17, 1999 and October 15, 1999, respectively. SEE NOTES TO FINANCIAL STATEMENTS. 44 49 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
GOVERNMENT RESERVES ------------------------------- YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 ------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 4,361,085 $ 2,727,353 Issued in exchange for Horizon Shares of: (Note 8) Pacific Horizon Government Fund.................................. -- 143,953 Pacific Horizon Treasury Only Fund....................... -- 22,370 Issued as reinvestment of dividends........................ 27,059 18,463 Redeemed................................................... (3,917,369) (2,760,363) ----------- ----------- Net increase/(decrease).................................... $ 470,775 $ 151,776 =========== =========== INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 581,244 $ -- Issued as reinvestment of dividends........................ 1,402 -- Redeemed................................................... (322,560) -- ----------- ----------- Net increase/(decrease).................................... $ 260,086 $ -- =========== =========== TRUST CLASS SHARES:+ Sold....................................................... $ 549,603 $ 638,160 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (452,348) (512,656) ----------- ----------- Net increase/(decrease).................................... $ 97,255 $ 125,504 =========== =========== LIQUIDITY CLASS SHARES: Sold....................................................... $ 2,519,862 $ 1,203,931 Issued as reinvestment of dividends........................ 19,496 4,795 Redeemed................................................... (2,211,622) (1,127,949) ----------- ----------- Net increase/(decrease).................................... $ 327,736 $ 80,777 =========== =========== ADVISER CLASS SHARES: Sold....................................................... $ 3,041,986 $ 1,869,514 Issued in exchange for Horizon Service Shares of: (Note 8) Pacific Horizon Government Fund.......................... -- 182,672 Pacific Horizon Treasury Only Fund....................... -- 277,586 Issued as reinvestment of dividends........................ 30,143 18,700 Redeemed................................................... (2,358,503) (1,960,102) ----------- ----------- Net increase/(decrease).................................... $ 713,626 $ 388,370 =========== =========== INVESTOR CLASS SHARES:+ Sold....................................................... $ 907,893 $ 642,355 Issued in exchange for Pacific Horizon Shares of: (Note 8) Pacific Horizon Government Fund.......................... -- 145,185 Pacific Horizon Treasury Only Fund....................... -- 123,908 Issued as reinvestment of dividends........................ 8,719 5,984 Redeemed................................................... (696,801) (805,691) ----------- ----------- Net increase/(decrease).................................... $ 219,811 $ 111,741 =========== =========== MARKET CLASS SHARES: Sold....................................................... $ 1,421,000 $ 806,000 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (1,303,000) (770,000) ----------- ----------- Net increase/(decrease).................................... $ 118,000 $ 36,000 =========== =========== DAILY CLASS SHARES:+ Sold....................................................... $ 783,695 $ 682,291 Issued as reinvestment of dividends........................ 12,508 6,296 Redeemed................................................... (707,806) (517,066) ----------- ----------- Net increase/(decrease).................................... $ 88,397 $ 171,521 =========== =========== SERVICE CLASS SHARES:+ Sold....................................................... $ 129,689 $ 26,700 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (113,689) (16,700) ----------- ----------- Net increase/(decrease).................................... $ 16,000 $ 10,000 =========== =========== INVESTOR B SHARES:+ Sold....................................................... $ 1,561 $ 196 Issued as reinvestment of dividends........................ 14 2 Redeemed................................................... (693) (90) ----------- ----------- Net increase/(decrease).................................... $ 882 $ 108 =========== =========== INVESTOR C SHARES:+ Sold....................................................... $ 206 $ 817 Issued as reinvestment of dividends........................ 3 4 Redeemed................................................... (795) (75) ----------- ----------- Net increase/(decrease).................................... $ (586) $ 746 =========== =========== Total net increase/(decrease).............................. $ 2,311,982 $ 1,076,543 =========== ===========
- --------------- * Since the Funds have sold, issued as reinvestment of dividends and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the amounts shown above for such transactions. + Government Reserves Institutional Class, Trust Class, Investor Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on November 21, 2000, May 17, 1999, April 12, 1999, April 12, 1999, June 8, 1999, November 2, 1999 and December 21, 1999, respectively. SEE NOTES TO FINANCIAL STATEMENTS. 45 50 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
MUNICIPAL RESERVES -------------------------------- YEAR ENDED YEAR ENDED MARCH 31, 2001 MARCH 31, 2000 -------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 2,016,784 $ 1,263,836 Issued in exchange for Horizon Shares of Pacific Horizon Tax Exempt Fund (Note 8)................................. -- 328,296 Issued as reinvestment of dividends........................ 2,217 1,494 Redeemed................................................... (2,046,447) (1,555,201) ----------- ----------- Net increase/(decrease).................................... $ (27,446) $ 38,425 =========== =========== INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 75,300 $ -- Issued as reinvestment of dividends........................ 310 -- Redeemed................................................... (59,494) -- ----------- ----------- Net increase/(decrease).................................... $ 16,116 $ -- =========== =========== TRUST CLASS SHARES:+ Sold....................................................... $ 818,929 $ 1,809,173 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (857,572) (1,282,344) ----------- ----------- Net increase/(decrease).................................... $ (38,643) $ 526,829 =========== =========== LIQUIDITY CLASS SHARES: Sold....................................................... $ 435,368 $ 461,685 Issued as reinvestment of dividends........................ 2,310 3,275 Redeemed................................................... (491,159) (444,304) ----------- ----------- Net increase/(decrease).................................... $ (53,481) $ 20,656 =========== =========== ADVISER CLASS SHARES: Sold....................................................... $ 381,155 $ 385,433 Issued in exchange for Horizon Service Shares of Pacific Horizon Tax Exempt Fund (Note 8)......................... -- 217,928 Issued as reinvestment of dividends........................ 3,502 2,609 Redeemed................................................... (332,362) (583,893) ----------- ----------- Net increase/(decrease).................................... $ 52,295 $ 22,077 =========== =========== INVESTOR CLASS SHARES:+ Sold....................................................... $ 91,839 $ 319,498 Issued in exchange for Pacific Horizon Shares of Pacific Horizon Tax Exempt Fund (Note 8)......................... -- 150,443 Issued as reinvestment of dividends........................ 2,006 2,042 Redeemed................................................... (101,608) (407,201) ----------- ----------- Net increase/(decrease).................................... $ (7,763) $ 64,782 =========== =========== MARKET CLASS SHARES: Sold....................................................... $ 752,000 $ 528,500 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (732,000) (526,500) ----------- ----------- Net increase/(decrease).................................... $ 20,000 $ 2,000 =========== =========== DAILY CLASS SHARES:+ Sold....................................................... $ 834,130 $ 760,267 Issued in exchange for S Shares of Pacific Horizon Tax Exempt Fund (Note 8)..................................... -- 57,381 Issued as reinvestment of dividends........................ 16,474 7,359 Redeemed................................................... (725,373) (395,365) ----------- ----------- Net increase/(decrease).................................... $ 125,231 $ 429,642 =========== =========== SERVICE CLASS SHARES:+ Sold....................................................... $ 37,600 $ 3,000 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (28,600) (2,000) ----------- ----------- Net increase/(decrease).................................... $ 9,000 $ 1,000 =========== =========== INVESTOR B SHARES:+ Sold....................................................... $ 23 $ 100 Issued as reinvestment of dividends........................ 2 -- Redeemed................................................... (52) (9) ----------- ----------- Net increase/(decrease).................................... $ (27) $ 91 =========== =========== Total net increase/(decrease).............................. $ 95,282 $ 1,105,502 =========== ===========
- --------------- * Since the Funds have sold, issued as reinvestment of dividends and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the amounts shown above for such transactions. + Municipal Reserves Institutional Class, Trust Class, Investor Class, Daily Class, Service Class and Investor B Shares commenced operations on November 21, 2000, May 17, 1999, April 12, 1999, April 12, 1999, January 21, 2000 and December 27, 1999, respectively. SEE NOTES TO FINANCIAL STATEMENTS. 46 51 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
CALIFORNIA TAX-EXEMPT RESERVES ---------------------------------------------------- YEAR ENDED MARCH 31, PERIOD ENDED MARCH 31, 2001 2000 MAY 14, 1999(a) ---------------------------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES:+ Sold...................................................... $ 11,030 $ -- $ -- Issued as reinvestment of dividends....................... -- -- -- Redeemed.................................................. (11,000) -- -- ----------- ----------- --------- Net increase/(decrease)................................... $ 30 $ -- $ -- =========== =========== ========= INSTITUTIONAL CLASS SHARES:+ Sold...................................................... $ 1,000 $ -- $ -- Issued as reinvestment of dividends....................... -- -- -- Redeemed.................................................. -- -- -- ----------- ----------- --------- Net increase/(decrease)................................... $ 1,000 $ -- $ -- =========== =========== ========= TRUST CLASS SHARES:+ Sold...................................................... $ 615,182 $ 1,050,171 $ -- Issued as reinvestment of dividends....................... -- -- -- Redeemed.................................................. (671,243) (655,315) -- ----------- ----------- --------- Net increase/(decrease)................................... $ (56,061) $ 394,856 $ -- =========== =========== ========= ADVISER CLASS SHARES: Sold...................................................... $ 1,190,750 $ 1,308,639 $ 360,557 Issued as reinvestment of dividends....................... 14,460 8,051 1,134 Redeemed.................................................. (1,246,894) (1,592,374) (434,617) ----------- ----------- --------- Net increase/(decrease)................................... $ (41,684) $ (275,684) $ (72,926) =========== =========== ========= INVESTOR CLASS SHARES: Sold...................................................... $ 633,106 $ 962,357 $ 484,932 Issued as reinvestment of dividends....................... 7,989 8,632 2,092 Redeemed.................................................. (698,674) (1,189,554) (523,636) ----------- ----------- --------- Net increase/(decrease)................................... $ (57,579) $ (218,565) $ (36,612) =========== =========== ========= DAILY CLASS SHARES: Sold...................................................... $ 1,070,113 $ 1,791,638 $ 160,950 Issued as reinvestment of dividends....................... 18,876 11,724 1,318 Redeemed.................................................. (1,033,111) (1,437,258) (165,023) ----------- ----------- --------- Net increase/(decrease)................................... $ 55,878 $ 366,104 $ (2,755) =========== =========== ========= INVESTOR B SHARES:+ Sold...................................................... $ 64 $ -- $ -- Issued as reinvestment of dividends....................... -- -- -- Redeemed.................................................. -- -- -- ----------- ----------- --------- Net increase/(decrease)................................... $ 64 $ -- $ -- =========== =========== ========= Total net increase/(decrease)............................. $ (98,352) $ 266,711 $(112,293) =========== =========== =========
- --------------- * Since the Funds have sold, issued as reinvestment of dividends and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the amounts shown above for such transactions. + California Tax Exempt Reserves Capital Class, Institutional Class, Trust Class and Investor B Shares commenced operations on October 3, 2000, March 28, 2001, May 24, 1999 and December 29, 2000, respectively. (a) Represents financial information from March 1, 1999 for the Pacific Horizon California Tax-Exempt Money Market Fund, which was reorganized into California Tax-Exempt Reserves on May 21, 1999. SEE NOTES TO FINANCIAL STATEMENTS. 47 52 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS For a share outstanding throughout each period.
NET ASSET DIVIDENDS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT OF PERIOD INCOME/(LOSS) INCOME -------------------------------------------------- CASH RESERVES CAPITAL CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0628 $(0.0628) Year ended 3/31/2000........................................ 1.00 0.0532 (0.0532) Period ended 3/31/1999*..................................... 1.00 0.0484 (0.0484) Year ended 4/30/1998........................................ 1.00 0.0554 (0.0554) Year ended 4/30/1997........................................ 1.00 0.0531 (0.0531) Year ended 4/30/1996........................................ 1.00 0.0570 (0.0570) INSTITUTIONAL CLASS SHARES Period ended 3/31/2001**.................................... $1.00 $0.0192 $(0.0192) TRUST CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0618 $(0.0618) Period ended 3/31/2000**.................................... 1.00 0.0463 (0.0463) LIQUIDITY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0613 $(0.0613) Year ended 3/31/2000........................................ 1.00 0.0517 (0.0517) Period ended 3/31/1999*..................................... 1.00 0.0470 (0.0470) Year ended 4/30/1998........................................ 1.00 0.0539 (0.0539) Year ended 4/30/1997........................................ 1.00 0.0516 (0.0516) Year ended 4/30/1996........................................ 1.00 0.0555 (0.0555) ADVISER CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0603 $(0.0603) Year ended 3/31/2000........................................ 1.00 0.0507 (0.0507) Period ended 3/31/1999*..................................... 1.00 0.0461 (0.0461) Year ended 4/30/1998........................................ 1.00 0.0529 (0.0529) Year ended 4/30/1997........................................ 1.00 0.0506 (0.0506) Year ended 4/30/1996........................................ 1.00 0.0545 (0.0545) INVESTOR CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0593 $(0.0593) Period ended 3/31/2000**.................................... 1.00 0.0484 (0.0484) MARKET CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0583 $(0.0583) Year ended 3/31/2000........................................ 1.00 0.0487 (0.0487) Period ended 3/31/1999*..................................... 1.00 0.0447 (0.0447) Year ended 4/30/1998........................................ 1.00 0.0519 (0.0519) Period ended 4/30/1997**.................................... 1.00 0.0493 (0.0493) DAILY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0568 $(0.0568) Period ended 3/31/2000**.................................... 1.00 0.0459 (0.0459) SERVICE CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0528 $(0.0528) Period ended 3/31/2000**.................................... 1.00 0.0404 (0.0404) INVESTOR B SHARES Year ended 3/31/2001........................................ $1.00 $0.0518 $(0.0518) Period ended 3/31/2000**.................................... 1.00 0.0225 (0.0225) INVESTOR C SHARES Year ended 3/31/2001........................................ $1.00 $0.0518 $(0.0518) Period ended 3/31/2000**.................................... 1.00 0.0223 (0.0223)
- --------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * Fiscal year end changed to March 31. Prior to this, the fiscal year end was April 30. ** Cash Reserves Institutional Class, Trust Class, Investor Class, Market Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on November 30, 2000, May 17, 1999, April 12, 1999, May 3, 1996, April 12, 1999, April 28, 1999, October 4, 1999 and October 5, 1999, respectively. (a) The effect of the custodial expense offset (Note 2) on the operating expense ratio, with and without waivers and/or expense reimbursements, was less than 0.01%. (b) The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 48 53 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME (LOSS) EXPENSES TO VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE AVERAGE END OF PERIOD RETURN++ (000) ASSETS NET ASSETS NET ASSETS - ---------------------------------------------------------------------------------------- $1.00 6.46% $20,037,526 0.20%(a) 6.22% 0.27%(a) 1.00 5.46 8,642,609 0.20(a)(b) 5.37 0.29(a) 1.00 4.95 4,379,430 0.20+(a) 5.24+ 0.43+(a) 1.00 5.70 3,051,559 0.20(b) 5.54 0.44 1.00 5.44 1,684,233 0.20 5.32 0.45 1.00 5.84 607,643 0.20 5.53 0.51 $1.00 1.90% $ 651,116 0.24%+(a) 6.18%+ 0.31%+(a) $1.00 6.36% $ 2,676,204 0.30%(a) 6.12% 0.37%(a) 1.00 4.72 1,719,142 0.30+(a)(b) 5.27+ 0.39+(a) $1.00 6.30% $ 1,476,883 0.35%(a) 6.07% 1.12%(a) 1.00 5.30 1,396,969 0.35(a)(b) 5.22 1.14(a) 1.00 4.80 1,423,382 0.35+(a) 5.09+ 1.28+(a) 1.00 5.53 1,107,869 0.35(b) 5.39 1.29 1.00 5.28 419,851 0.35 5.17 0.60 1.00 5.70 35,477 0.35 5.38 0.66 $1.00 6.20% $ 5,939,163 0.45%(a) 5.97% 0.52%(a) 1.00 5.19 4,780,346 0.45(a)(b) 5.12 0.54(a) 1.00 4.71 870,170 0.45+(a) 4.99+ 0.68+(a) 1.00 5.43 672,417 0.45(b) 5.29 0.69 1.00 5.19 247,551 0.45 5.07 0.70 1.00 5.58 397,809 0.45 5.28 0.76 $1.00 6.09% $ 7,585,825 0.55%(a) 5.87% 0.62%(a) 1.00 4.94 7,068,117 0.55+(a)(b) 5.02+ 0.64+(a) $1.00 5.99% $ 3,342,882 0.65%(a) 5.77% 0.72%(a) 1.00 4.98 2,779,002 0.65(a)(b) 4.92 0.74(a) 1.00 4.56 1,486,502 0.61+(a) 4.83+ 0.88+(a) 1.00 5.33 649,503 0.55(b) 5.19 0.89 1.00 5.04 333,000 0.55+ 4.97+ 0.80+ $1.00 5.83% $14,589,888 0.80%(a) 5.62% 0.87%(a) 1.00 4.69 9,753,000 0.80+(a)(b) 4.77+ 0.89+(a) $1.00 5.41% $ 913,512 1.20%(a) 5.22% 1.27%(a) 1.00 4.11 512,318 1.20+(a)(b) 4.37+ 1.29+(a) $1.00 5.30% $ 27,360 1.30%(a) 5.12% 1.37%(a) 1.00 2.28 8,828 1.30+(a)(b) 4.27+ 1.39+(a) $1.00 5.30% $ 1,717 1.30%(a) 5.12% 1.37%(a) 1.00 2.25 345 1.30+(a)(b) 4.27+ 1.39+(a)
SEE NOTES TO FINANCIAL STATEMENTS. 49 54 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period. NET ASSET DIVIDENDS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT OF PERIOD INCOME/(LOSS) INCOME ----------------------------------------------- MONEY MARKET RESERVES CAPITAL CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0625 $(0.0625) Year ended 3/31/2000........................................ 1.00 0.0535 (0.0535) Period ended 3/31/1999*, **................................. 1.00 0.0438 (0.0438) Period ended 5/15/1998...................................... 1.00 0.0252 (0.0252) Year ended 11/30/1997....................................... 1.00 0.0545 (0.0545) Year ended 11/30/1996....................................... 1.00 0.0516 (0.0516) INSTITUTIONAL CLASS SHARES Period ended 3/31/2001***................................... $1.00 $0.0221 $(0.0221) TRUST CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0615 $(0.0615) Period ended 3/31/2000***................................... 1.00 0.0016 (0.0016) LIQUIDITY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0610 $(0.0610) Year ended 3/31/2000........................................ 1.00 0.0520 (0.0520) Period ended 3/31/1999*, ***................................ 1.00 0.0281 (0.0281) ADVISER CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0600 $(0.0600) Year ended 3/31/2000........................................ 1.00 0.0548 (0.0548) Period ended 3/31/1999*, ***................................ 1.00 0.0344 (0.0344) INVESTOR CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0501 $(0.0501) Period ended 3/31/2000***................................... 1.00 0.0043 (0.0043) MARKET CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0580 $(0.0580) Year ended 3/31/2000........................................ 1.00 0.0490 (0.0490) Period ended 3/31/1999*, ***................................ 1.00 0.0214 (0.0214) DAILY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0565 $(0.0565) Period ended 3/31/2000***................................... 1.00 0.0346 (0.0346) SERVICE CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0525 $(0.0525) Period ended 3/31/2000***................................... 1.00 0.0386 (0.0386) INVESTOR B SHARES Year ended 3/31/2001........................................ $1.00 $0.0515 $(0.0515) Period ended 3/31/2000***................................... 1.00 0.0227 (0.0227) INVESTOR C SHARES Year ended 3/31/2001........................................ $1.00 $0.0208 $(0.0208) Period ended 3/31/2000***................................... 1.00 0.0112 (0.0112)
- --------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * Fiscal year end changed to March 31. Prior to this, the fiscal year end was April 30. ** The financial information for the fiscal periods through May 15, 1998 reflect the financial information for the Emerald Prime Advantage Institutional Fund, which was reorganized into Capital Class Shares as of May 22, 1998. *** Money Market Reserves Institutional Class, Trust Class, Liquidity Class, Adviser Class, Investor Class, Market Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on November 17, 2000, March 22, 2000, August 7, 1998, July 2, 1998, March 3, 2000, October 9, 1998, July 21, 1999, May 18, 1999, October 5, 1999 and January 6, 2000, respectively. (a) The effect of the custodial expense offset (Note 2) on the operating expense ratio, with and without waivers and/or expense reimbursements, was less than 0.01%. (b) The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 50 55 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) EXPENSES TO VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE AVERAGE END OF PERIOD RETURN++ (000) ASSETS NET ASSETS NET ASSETS - ---------------------------------------------------------------------------------------------- $1.00 6.43% $6,103,253 0.20%(a)(b) 6.19% 0.27%(a) 1.00 5.48 4,064,349 0.20(a)(b) 5.64 0.33(a) 1.00 4.47 595,482 0.20+(a) 4.87+ 0.46+(a) 1.00 2.55 118,880 0.20+ 5.54+ 0.27+ 1.00 5.58 177,908 0.20 5.45 0.28 1.00 5.29 133,044 0.35 5.16 0.35 $1.00 2.23% $ 574,968 0.24%+(a)(b) 6.15%+ 0.31%+(a) $1.00 6.33% $ 67,422 0.30%(a)(b) 6.09% 0.37%(a) 1.00 0.16 38 0.30+(a)(b) 5.54+ 0.43+(a) $1.00 6.27% $1,085,231 0.35%(a)(b) 6.04% 1.12%(a) 1.00 5.32 946,156 0.35(a)(b) 5.49 1.18(a) 1.00 2.87 1,078 0.35+(a) 4.72+ 1.31+(a) $1.00 6.17% $ 622,177 0.45%(a)(b) 5.94% 0.52%(a) 1.00 5.62 553,728 0.45(a)(b) 5.39 0.58(a) 1.00 3.46 6,377 0.45+(a) 4.62+ 0.71+(a) $1.00 5.12% $ 90,380 0.55%(a)(b) 5.84% 0.62%(a) 1.00 0.43 1 0.55+(a)(b) 5.29+ 0.68+(a) $1.00 5.96% $1,292,998 0.65%(a)(b) 5.74% 0.72%(a) 1.00 5.01 1,021,002 0.65(a)(b) 5.19 0.78(a) 1.00 2.14 873,993 0.65+(a) 4.42+ 0.91+(a) $1.00 5.80% $ 7,561 0.80%(a)(b) 5.59% 0.87%(a) 1.00 3.51 4,525 0.80+(a)(b) 5.04+ 0.93+(a) $1.00 5.38% $ 203,160 1.20%(a)(b) 5.19% 1.27%(a) 1.00 3.93 80,500 1.20+(a)(b) 4.64+ 1.33+(a) $1.00 5.27% $ 6,907 1.30%(a)(b) 5.09% 1.37%(a) 1.00 2.29 1,940 1.30+(a)(b) 4.54+ 1.43+(a) $1.00 2.08% $ 340 1.30%(a)(b) 5.09% 1.37%(a) 1.00 1.12 19 1.30+(a)(b) 4.54+ 1.43+(a)
SEE NOTES TO FINANCIAL STATEMENTS. 51 56 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET DIVIDENDS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT OF PERIOD INCOME/(LOSS) INCOME -------------------------------------------------- TREASURY RESERVES CAPITAL CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0603 $(0.0603) Year ended 3/31/2000........................................ 1.00 0.0504 (0.0504) Period ended 3/31/1999*..................................... 1.00 0.0462 (0.0462) Year ended 4/30/1998........................................ 1.00 0.0541 (0.0541) Year ended 4/30/1997........................................ 1.00 0.0519 (0.0519) Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556) INSTITUTIONAL CLASS SHARES Period ended 3/31/2001**.................................... $1.00 $0.0206 $(0.0206) TRUST CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0593 $(0.0593) Period ended 3/31/2000**.................................... 1.00 0.0436 (0.0436) LIQUIDITY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0588 $(0.0588) Year ended 3/31/2000........................................ 1.00 0.0489 (0.0489) Period ended 3/31/1999*..................................... 1.00 0.0448 (0.0448) Year ended 4/30/1998........................................ 1.00 0.0526 (0.0526) Year ended 4/30/1997........................................ 1.00 0.0504 (0.0504) Year ended 4/30/1996........................................ 1.00 0.0541 (0.0541) ADVISER CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0578 $(0.0578) Year ended 3/31/2000........................................ 1.00 0.0479 (0.0479) Period ended 3/31/1999*..................................... 1.00 0.0439 (0.0439) Year ended 4/30/1998........................................ 1.00 0.0516 (0.0516) Year ended 4/30/1997........................................ 1.00 0.0494 (0.0494) Year ended 4/30/1996........................................ 1.00 0.0531 (0.0531) INVESTOR CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0568 $(0.0568) Period ended 3/31/2000**.................................... 1.00 0.0455 (0.0455) MARKET CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0557 $(0.0557) Year ended 3/31/2000........................................ 1.00 0.0459 (0.0459) Period ended 3/31/1999*..................................... 1.00 0.0423 (0.0423) Year ended 4/30/1998........................................ 1.00 0.0505 (0.0505) Period ended 4/30/1997**.................................... 1.00 0.0481 (0.0481) DAILY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0543 $(0.0543) Period ended 3/31/2000**.................................... 1.00 0.0431 (0.0431) SERVICE CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0503 $(0.0503) Period ended 3/31/2000**.................................... 1.00 0.0358 (0.0358) INVESTOR B SHARES Year ended 3/31/2001........................................ $1.00 $0.0493 $(0.0493) Period ended 3/31/2000**.................................... 1.00 0.0192 (0.0192)
- --------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * Fiscal year end changed to March 31. Prior to this, the fiscal year end was April 30. ** Treasury Reserves Institutional Class, Trust Class, Investor Class, Market Class, Daily Class, Service Class and Investor B Shares commenced operations on November 21, 2000, May 17, 1999, April 12, 1999, May 3, 1996, April 12, 1999, May 17, 1999 and October 15, 1999, respectively. (a) The effect of the custodial expense offset (Note 2) on the operating expense ratio, with and without waivers and/or expense reimbursements, was less than 0.01%. (b) The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 52 57 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS - ------------------------------------------------------------------------------------------------ $1.00 6.20% $1,900,312 0.20%(a)(b) 5.99% 0.27%(a) 1.00 5.15 1,026,684 0.20(a)(b) 5.06 0.28(a) 1.00 4.72 1,382,688 0.20+(a) 4.99+ 0.45+(a) 1.00 5.55 246,058 0.20 5.41 0.45 1.00 5.30 468,975 0.20 5.20 0.46 1.00 5.71 304,342 0.20 5.50 0.51 $1.00 2.08% $ 29,572 0.24%+(a)(b) 5.95%+ 0.31%+(a) $1.00 6.09% $ 315,854 0.30%(a)(b) 5.89% 0.37%(a) 1.00 4.45 506,339 0.30+(a)(b) 4.96 0.38+(a) $1.00 6.04% $ 348,850 0.35%(a)(b) 5.84% 1.17%(a) 1.00 5.00 364,761 0.35(a)(b) 4.91 1.18(a) 1.00 4.58 304,387 0.35+(a) 4.84+ 1.35+(a) 1.00 5.38 743,410 0.35 5.26 1.35 1.00 5.15 81,575 0.35 5.05 0.61 1.00 5.57 11,804 0.35 5.35 0.66 $1.00 5.93% $1,918,597 0.45%(a)(b) 5.74% 0.52%(a) 1.00 4.89 1,460,966 0.45(a)(b) 4.81 0.53(a) 1.00 4.48 344,906 0.45+(a) 4.74+ 0.70+(a) 1.00 5.28 222,760 0.45 5.16 0.70 1.00 5.06 154,256 0.45 4.95 0.71 1.00 5.45 175,691 0.45 5.25 0.76 $1.00 5.83% $ 700,202 0.55%(a)(b) 5.64% 0.62%(a) 1.00 4.65 573,261 0.55+(a)(b) 4.71+ 0.63+(a) $1.00 5.72% $1,369,949 0.65%(a)(b) 5.54% 0.72%(a) 1.00 4.68 1,511,932 0.65(a)(b) 4.61 0.73(a) 1.00 4.31 1,169,932 0.62+(a) 4.57+ 0.90+(a) 1.00 5.18 265,495 0.55 5.06 0.90 1.00 4.92 123,396 0.55+ 4.85+ 0.81+ $1.00 5.56% $ 981,837 0.80%(a)(b) 5.39% 0.87%(a) 1.00 4.40 847,775 0.80+(a)(b) 4.46+ 0.88+(a) $1.00 5.14% $ 343,240 1.20%(a)(b) 4.99% 1.27%(a) 1.00 3.63 244,035 1.20+(a)(b) 4.06+ 1.28+(a) $1.00 5.04% $ 237 1.30%(a)(b) 4.89% 1.37%(a) 1.00 1.94 80 1.30+(a)(b) 3.96+ 1.38+(a)
SEE NOTES TO FINANCIAL STATEMENTS. 53 58 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET DIVIDENDS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT OF PERIOD INCOME/(LOSS) INCOME -------------------------------------------------- GOVERNMENT RESERVES CAPITAL CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0615 $(0.0615) Year ended 3/31/2000........................................ 1.00 0.0516 (0.0516) Period ended 3/31/1999*..................................... 1.00 0.0468 (0.0468) Year ended 4/30/1998........................................ 1.00 0.0543 (0.0543) Year ended 4/30/1997........................................ 1.00 0.0520 (0.0520) Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556) INSTITUTIONAL CLASS SHARES Period ended 3/31/2001**.................................... $1.00 $0.0210 $(0.0210) TRUST CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0605 $(0.0605) Period ended 3/31/2000**.................................... 1.00 0.0448 (0.0448) LIQUIDITY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0600 $(0.0600) Year ended 3/31/2000........................................ 1.00 0.0501 (0.0501) Period ended 3/31/1999*..................................... 1.00 0.0454 (0.0454) Year ended 4/30/1998........................................ 1.00 0.0528 (0.0528) Year ended 4/30/1997........................................ 1.00 0.0505 (0.0505) Year ended 4/30/1996........................................ 1.00 0.0537 (0.0537) ADVISER CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0590 $(0.0590) Year ended 3/31/2000........................................ 1.00 0.0491 (0.0491) Period ended 3/31/1999*..................................... 1.00 0.0445 (0.0445) Year ended 4/30/1998........................................ 1.00 0.0518 (0.0518) Year ended 4/30/1997........................................ 1.00 0.0495 (0.0495) Year ended 4/30/1996........................................ 1.00 0.0527 (0.0527) INVESTOR CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0580 $(0.0580) Period ended 3/31/2000**.................................... 1.00 0.0467 (0.0467) MARKET CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0570 $(0.0570) Year ended 3/31/2000........................................ 1.00 0.0471 (0.0471) Period ended 3/31/1999*..................................... 1.00 0.0431 (0.0431) Year ended 4/30/1998........................................ 1.00 0.0508 (0.0508) Period ended 4/30/1997**.................................... 1.00 0.0482 (0.0482) DAILY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0554 $(0.0554) Period ended 3/31/2000**.................................... 1.00 0.0443 (0.0443) SERVICE CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0515 $(0.0515) Period ended 3/31/2000**.................................... 1.00 0.0348 (0.0348) INVESTOR B SHARES Year ended 3/31/2001........................................ $1.00 $0.0505 $(0.0505) Period ended 3/31/2000**.................................... 1.00 0.0185 (0.0185) INVESTOR C SHARES Year ended 3/31/2001........................................ $1.00 $0.0505 $(0.0505) Period ended 3/31/2000**.................................... 1.00 0.0126 (0.0126)
- --------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * Fiscal year end changed to March 31. Prior to this, the fiscal year end was April 30. ** Government Reserves Institutional Class, Trust Class, Investor Class, Market Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on November 21, 2000, May 17, 1999, April 12, 1999, May 3, 1996, April 12, 1999, June 8, 1999, November 2, 1999 and December 21, 1999, respectively. (a) The effect of the custodial expense offset (Note 2) on the operating expense ratio, with and without waivers and/or expense reimbursements, was less than 0.01%. (b) The effect of interest expense on the operating expense ratio was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 54 59 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS - ------------------------------------------------------------------------------------------------ $1.00 6.32% $ 852,138 0.20%(a)(b) 6.06% 0.29%(a) 1.00 5.28 381,336 0.20(a)(b) 5.26 0.29(a) 1.00 4.78 229,561 0.20+(a) 5.05+ 0.44+(a) 1.00 5.57 190,607 0.20 5.43 0.45 1.00 5.33 125,377 0.20(a) 5.22 0.49(a) 1.00 5.71 58,121 0.20 5.48 0.53 $1.00 2.12% $ 260,087 0.24%+(a) 6.02%+ 0.33%+(a) $1.00 6.22% $ 222,765 0.30%(a)(b) 5.96% 0.39%(a) 1.00 4.57 125,504 0.30+(a)(b) 5.16+ 0.39+(a) $1.00 6.16% $ 468,083 0.35%(a)(b) 5.91% 1.14%(a) 1.00 5.12 140,328 0.35(a)(b) 5.11 1.14(a) 1.00 4.63 59,551 0.35+(a) 4.90+ 1.29+(a) 1.00 5.40 32,773 0.35 5.28 1.30 1.00 5.19 6,482 0.35(a) 5.07 0.64(a) 1.00 5.51 129 0.35 5.33 0.68 $1.00 6.06% $1,190,853 0.45%(a)(b) 5.81% 0.54%(a) 1.00 5.02 477,205 0.45(a)(b) 5.01 0.54(a) 1.00 4.54 88,836 0.45+(a) 4.80+ 0.69+(a) 1.00 5.30 70,164 0.45 5.18 0.70 1.00 5.07 24,845 0.45(a) 4.97 0.74(a) 1.00 5.39 108,168 0.45 5.23 0.78 $1.00 5.95% $ 331,555 0.55%(a)(b) 5.71% 0.64%(a) 1.00 4.77 111,741 0.55+(a)(b) 4.91+ 0.64+(a) $1.00 5.85% $ 488,016 0.65%(a)(b) 5.61% 0.74%(a) 1.00 4.81 370,000 0.65(a)(b) 4.81 0.74(a) 1.00 4.39 334,000 0.61+(a) 4.64+ 0.89+(a) 1.00 5.20 274,499 0.55 5.08 0.90 1.00 4.93 218,499 0.55+(a) 4.87+ 0.84+(a) $1.00 5.69% $ 259,937 0.80%(a)(b) 5.46% 0.89%(a) 1.00 4.52 171,521 0.80+(a)(b) 4.66+ 0.89+(a) $1.00 5.27% $ 26,001 1.20%(a)(b) 5.06% 1.29%(a) 1.00 3.53 10,000 1.20+(a)(b) 4.26+ 1.29+(a) $1.00 5.17% $ 990 1.30%(a) 4.96% 1.39%(a) 1.00 1.86 108 1.30+(a)(b) 4.16+ 1.39+(a) $1.00 5.17% $ 160 1.30%(a)(b) 4.96% 1.39%(a) 1.00 1.26 746 1.30+(a)(b) 4.16+ 1.39+(a)
SEE NOTES TO FINANCIAL STATEMENTS. 55 60 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET DIVIDENDS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT OF PERIOD INCOME/(LOSS) INCOME -------------------------------------------------- MUNICIPAL RESERVES CAPITAL CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0392 $(0.0392) Year ended 3/31/2000........................................ 1.00 0.0329 (0.0329) Period ended 3/31/1999*..................................... 1.00 0.0292 (0.0292) Year ended 4/30/1998........................................ 1.00 0.0353 (0.0353) Year ended 4/30/1997........................................ 1.00 0.0337 (0.0337) Year ended 4/30/1996........................................ 1.00 0.0362 (0.0362) INSTITUTIONAL CLASS SHARES Period ended 3/31/2001**.................................... $1.00 $0.0110 $(0.0110) TRUST CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0382 $(0.0382) Period ended 3/31/2000**.................................... 1.00 0.0280 (0.0280) LIQUIDITY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0377 $(0.0377) Year ended 3/31/2000........................................ 1.00 0.0314 (0.0314) Period ended 3/31/1999*..................................... 1.00 0.0278 (0.0278) Year ended 4/30/1998........................................ 1.00 0.0341 (0.0341) Year ended 4/30/1997........................................ 1.00 0.0323 (0.0323) Year ended 4/30/1996........................................ 1.00 0.0347 (0.0347) ADVISER CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0367 $(0.0367) Year ended 3/31/2000........................................ 1.00 0.0304 (0.0304) Period ended 3/31/1999*..................................... 1.00 0.0270 (0.0270) Year ended 4/30/1998........................................ 1.00 0.0332 (0.0332) Year ended 4/30/1997........................................ 1.00 0.0313 (0.0313) Year ended 4/30/1996........................................ 1.00 0.0337 (0.0337) INVESTOR CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0357 $(0.0357) Period ended 3/31/2000**.................................... 1.00 0.0287 (0.0287) MARKET CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0347 $(0.0347) Year ended 3/31/2000........................................ 1.00 0.0284 (0.0284) Period ended 3/31/1999*..................................... 1.00 0.0254 (0.0254) Year ended 4/30/1998........................................ 1.00 0.0318 (0.0318) Period ended 4/30/1997**.................................... 1.00 0.0301 (0.0301) DAILY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0332 $(0.0332) Period ended 3/31/2000**.................................... 1.00 0.0262 (0.0262) SERVICE CLASS SHARES Year ended 3/31/2001........................................ $1.00 $0.0292 $(0.0292) Period ended 3/31/2000**.................................... 1.00 0.0048 (0.0048) INVESTOR B SHARES Year ended 3/31/2001........................................ $1.00 $0.0282 $(0.0282) Period ended 3/31/2000**.................................... 1.00 0.0062 (0.0062)
- --------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * Fiscal year end changed to March 31. Prior to this, the fiscal year end was April 30. ** Municipal Reserves Institutional Class, Trust Class, Investor Class, Market Class, Daily Class, Service Class and Investor B Shares commenced operations on November 21, 2000, May 17, 1999, April 12, 1999, May 3, 1996, April 12, 1999, January 21, 2000 and December 27, 1999, respectively. (b) The effect of interest expense on the operating expense ratio was 0.02% SEE NOTES TO FINANCIAL STATEMENTS. 56 61 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO VALUE TOTAL PERIOD AVERAGE AVERAGE NET AVERAGE END OF PERIOD RETURN++ (000) NET ASSETS ASSETS NET ASSETS - ---------------------------------------------------------------------------------------- $1.00 3.99% $145,248 0.20% 3.93% 0.29% 1.00 3.34 172,693 0.20 3.29 0.30 1.00 2.96 134,268 0.20+ 3.10+ 0.48+ 1.00 3.61 74,251 0.20(b) 3.53 0.48 1.00 3.44 59,701 0.20 3.38 0.52 1.00 3.70 48,482 0.20 3.61 0.58 $1.00 1.10% $ 16,116 0.24%+ 3.89%+ 0.33%+ $1.00 3.88% $488,191 0.30% 3.83% 0.39% 1.00 2.83 526,831 0.30+ 3.19+ 0.40+ $1.00 3.83% $ 35,569 0.35% 3.78% 1.14%(a) 1.00 3.18 89,050 0.35 3.14 1.15 1.00 2.81 68,393 0.35+ 2.95+ 1.33+ 1.00 3.43 53,074 0.35(b) 3.38 1.33 1.00 3.29 54,677 0.35 3.23 0.67 1.00 3.52 6,734 0.35 3.46 0.73 $1.00 3.73% $129,807 0.45% 3.68% 0.54% 1.00 3.08 77,511 0.45 3.04 0.55 1.00 2.73 55,434 0.45+ 2.85+ 0.73+ 1.00 3.34 29,936 0.45(b) 3.28 0.73 1.00 3.19 7,296 0.45 3.13 0.77 1.00 3.43 55,511 0.45 3.36 0.83 $1.00 3.63% $ 57,017 0.55% 3.58% 0.64% 1.00 2.90 64,782 0.55+ 2.94+ 0.65+ $1.00 3.52% $169,001 0.65% 3.48% 0.74% 1.00 2.87 149,000 0.65 2.84 0.75 1.00 2.57 146,999 0.61+ 2.69+ 0.93+ 1.00 3.24 92,000 0.55(b) 3.18 0.93 1.00 3.06 78,300 0.55+ 3.03+ 0.87+ $1.00 3.37% $554,876 0.80% 3.33% 0.89% 1.00 2.65 429,644 0.80+ 2.69+ 0.90+ $1.00 2.96% $ 10,000 1.20% 2.93% 1.29% 1.00 0.48 1,000 1.20+ 2.29+ 1.30+ $1.00 2.86% $ 64 1.30% 2.83% 1.39% 1.00 0.62 91 1.30+ 2.19+ 1.40+
SEE NOTES TO FINANCIAL STATEMENTS. 57 62 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) For a share outstanding throughout each period.
NET ASSET DIVIDENDS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT OF PERIOD INCOME/(LOSS) INCOME -------------------------------------------------- CALIFORNIA TAX-EXEMPT RESERVES CAPITAL CLASS SHARES Period ended 3/31/2001**.................................... $1.00 $ 0.0153 $(0.0153) INSTITUTIONAL CLASS SHARES Period ended 3/31/2001**.................................... $1.00 $ 0.0003 $(0.0003) TRUST CLASS SHARES Year ended 3/31/2001........................................ $1.00 $ 0.0323 $(0.0323) Period ended 3/31/2000**.................................... 1.00 0.0239 (0.0239) ADVISER CLASS SHARES Year ended 3/31/2001........................................ $1.00 $ 0.0308 $(0.0308) Period ended 3/31/2000...................................... 1.00 0.0232 (0.0232) Period ended 5/14/1999*..................................... 1.00 0.0052 (0.0052) Year ended 2/28/1999........................................ 1.00 0.0268 (0.0268) Year ended 2/28/1998........................................ 1.00 0.0309 (0.0309) Year ended 2/28/1997........................................ 1.00 0.0291 (0.0291) INVESTOR CLASS SHARES Year ended 3/31/2001........................................ $1.00 $ 0.0298 $(0.0298) Period ended 3/31/2000...................................... 1.00 0.0223 (0.0223) Period ended 5/14/1999*..................................... 1.00 0.0051 (0.0051) Year ended 2/28/1999........................................ 1.00 0.0261 (0.0261) Year ended 2/28/1998........................................ 1.00 0.0302 (0.0302) Year ended 2/28/1997........................................ 1.00 0.0284 (0.0284) DAILY CLASS SHARES Year ended 3/31/2001........................................ $1.00 $ 0.0273 $(0.0273) Period ended 3/31/2000...................................... 1.00 0.0201 (0.0201) Period ended 5/14/1999*..................................... 1.00 0.0045 (0.0045) Year ended 2/28/1999........................................ 1.00 0.0238 (0.0238) Year ended 2/28/1998........................................ 1.00 0.0279 (0.0279) Period ended 2/28/1997**.................................... 1.00 0.0107 (0.0107) INVESTOR B SHARES Period ended 3/31/2001**.................................... $1.00 $ 0.0038 $(0.0038)
- --------------- + Annualized. ++ Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges. * The financial information for the fiscal periods through May 14, 1999 reflect the financial information for the Pacific Horizon California Tax-Exempt Money Market Fund Horizon Service, S, X and Pacific Horizon Shares, which were reorganized into the California Tax-Exempt Reserves Adviser Class, Daily Class and Investor Class Shares, respectively, as of May 21, 1999. Prior to May 21, 1999, the Fund's investment adviser was Bank of America National Trust and Savings Association. Effective May 21, 1999, its investment adviser became Banc of America Advisors, Inc. and its investment sub-adviser became Banc of America Capital Management, Inc. ** California Tax-Exempt Reserves Capital Class, Institutional Class, Trust Class, Daily Class and Investor B Shares commenced operations on October 3, 2000, March 28, 2001, May 24, 1999, October 2, 1996 and December 29, 2000, respectively. (a) The effect of the custodial expense offset (Note 2) on the operating expense ratio, with and without waivers and/or expense reimbursements, was less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. 58 63 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSETS OPERATING NET INVESTMENT OPERATING NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET END OF PERIOD RETURN++ (000) ASSETS ASSETS ASSETS - -------------------------------------------------------------------------------------------- $1.00 1.54% $ 30 0.20%+ 3.33%+ 0.28%+ $1.00 0.03% $ 1,000 0.24%+ 3.29%+ 0.32%+ $1.00 3.27% $338,801 0.30% 3.23%+ 0.38% 1.00 2.41 394,837 0.30+ 2.70+ 0.38+ $1.00 3.12% $318,737 0.45% 3.08% 0.53% 1.00 2.32 360,319 0.45+ 2.55+ 0.53+ 1.00 0.52 636,000 0.50+ 2.49+ 0.52+ 1.00 2.71 709,000 0.49(a) 2.65 0.49(a) 1.00 3.13 671,000 0.50(a) 3.06 0.50(a) 1.00 2.95 472,000 0.50(a) 2.92 0.50(a) $1.00 3.02% $226,491 0.55% 2.98% 0.63% 1.00 2.23 284,041 0.55+ 2.45+ 0.63+ 1.00 0.50 503,000 0.58+ 2.43+ 0.62+ 1.00 2.64 539,000 0.56(a) 2.61 0.59(a) 1.00 3.06 598,000 0.57(a) 3.01 0.60(a) 1.00 2.88 493,000 0.57(a) 2.83 0.60(a) $1.00 2.76% $755,635 0.80% 2.73% 0.88% 1.00 2.01 699,689 0.80+ 2.20+ 0.88+ 1.00 0.45 334,000 0.80+ 2.21+ 0.82+ 1.00 2.41 336,000 0.79(a) 2.35 0.79(a) 1.00 2.83 172,000 0.80(a) 2.80 0.80(a) 1.00 1.09 29,000 0.80+(a) 2.66+ 0.80+(a) $1.00 0.38% $ 64 1.30%+ 2.23%+ 1.38%+
SEE NOTES TO FINANCIAL STATEMENTS. 59 64 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS Nations Reserves ("Reserves") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. At March 31, 2001, Reserves offered sixteen separate portfolios. These financial statements pertain only to the six money market portfolios of Reserves: Nations Cash Reserves, Nations Money Market Reserves, Nations Treasury Reserves, Nations Government Reserves, Nations Municipal Reserves and Nations California Tax- Exempt Reserves (each, a "Portfolio" and collectively, the "Portfolios"). Financial Statements for the other portfolios of Reserves are presented under separate cover. The Portfolios currently offer eleven classes of shares: Capital Class Shares, Institutional Class Shares, Trust Class Shares, Liquidity Class Shares, Adviser Class Shares, Investor Class Shares, Market Class Shares, Daily Class Shares, Service Class Shares, Investor B Shares and Investor C Shares. Shareholders of a Portfolio have equal voting rights on matters affecting all shareholders of the Portfolio. In addition, each class of shares of a Portfolio has exclusive voting rights on matters that relate solely to that class and separate voting rights on matters in which the interests of one class differ from the interests of any other class. 1. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Portfolios in the preparation of their financial statements. Securities valuation: Securities are valued on the basis of amortized cost, which approximates current market value. Amortized cost valuation involves initially valuing an instrument at its cost and thereafter assuming a constant accretion to maturity of any discount or amortization of any premium, as long as the effect of fluctuating interest rates on the market value of the instrument is not significant. Restricted securities and certain other assets may be valued under procedures adopted by the Board of Trustees. Repurchase agreements: Each Portfolio may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, a Portfolio takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the obligation of the Portfolio to resell, the underlying debt obligation at an agreed-upon price and date, 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 must be at least equal at all times to the total amount of the repurchase obligation, 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 the Portfolio seeks to assert its right. The Portfolios' investment adviser and sub-adviser, under the oversight of the Board of Trustees, monitor the value of 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: Cash Reserves, Treasury Reserves and Government Reserves may enter into reverse repurchase agreements with institutions that the Portfolios' investment sub-adviser has determined are creditworthy. Under the terms of a typical reverse repurchase agreement, a 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 establishes a segregated account with its custodian bank in which it will maintain liquid assets at least equal in value to the Portfolio's obligations arising under the reverse repurchase agreement. Reverse repurchase agreements involve the risk that the market value of the securities purchased with the proceeds from the sale of securities received by the Portfolio may decline below the price of the securities that the Portfolio is obligated to repurchase. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund's use of proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities. Securities subject to repurchase under reverse repurchase agreements are designated in the Statements of net assets. 60 65 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) At March 31, 2001, Treasury Reserves had reverse repurchase agreements outstanding as follows: Counterparty.......................... Credit Suisse First Boston Corporation Maturity Amount....................... $1,577,745,682 Maturity Date......................... 04/02/01 Market Value of Assets Sold Under Agreements.......................... $1,554,395,195
The average daily balance of reverse repurchase agreements outstanding for Treasury Reserves during the year ended March 31, 2001 was $1,322,348,314. Cash Reserves and Government Reserves did not enter into any reverse repurchase agreements during the year ended March 31, 2001. The proceeds received by Treasury Reserves under the reverse repurchase agreements were reinvested in tri-party repurchase agreements. Net fees earned during the year ended March 31, 2001, representing the difference between interest rates on the reverse repurchase and repurchase agreements, amounted to $1,253,264 and have been included in interest income in the Statements of operations. Securities transactions and investment income: Securities transactions are recorded on trade date. Realized gains and losses are computed based on the specific identification of securities sold. Interest income, adjusted for accretion of discounts and amortization of premiums, is earned from settlement date and recorded on an accrual basis. Each Portfolio's investment income and realized and unrealized gains and losses are allocated among its share classes based upon the relative net assets of each class of shares. Dividends and distributions to shareholders: It is the policy of each Portfolio to declare dividends from net investment income daily and to pay such dividends monthly. Each Portfolio will distribute net realized short-term capital gains annually after the fiscal year in which the capital gains were earned or more frequently to seek to maintain a net asset value of $1.00 per share, unless offset by any available capital loss carryforward. Income distributions and capital gain distributions on a Portfolio level are determined in accordance with federal income tax regulations which may differ from accounting principles generally accepted in the United States of America. Certain reclassifications are made to each Portfolio's capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. These reclassifications are due to different book and tax accounting for dividend reclassifications. Reclassifications for the year ended March 31, 2001 were as follows:
INCREASE/ (DECREASE) INCREASE/ INCREASE/ UNDISTRIBUTED (DECREASE) (DECREASE) NET ACCUMULATED PAID-IN INVESTMENT NET REALIZED CAPITAL INCOME GAIN/(LOSS) (000) (000) (000) ----------------------------------------- Money Market Reserves............ -- $ 24 $(24) Treasury Reserves..... $ --* --* -- Government Reserves... --* --* -- Municipal Reserves.... (61) -- 61
- --------------- * Amount represents less than $500. Federal income tax: Each Portfolio intends to continue to qualify as a regulated investment company by complying with the applicable requirements of the Internal Revenue Code of 1986, as amended, and by distributing substantially all of its earnings to its shareholders. Therefore, no provision is made for federal income or excise taxes. Expenses: General expenses of Reserves are allocated to the Portfolios based upon their relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Portfolio or class of shares are charged to such Portfolio or class. Cash flow information: Cash, as used in the Statement of cash flows, is the amount reported in the Statements of net assets and represents cash on hand at a Portfolio's custodian. Reserves 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 for Treasury Reserves. 2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS Reserves has entered into an investment advisory agreement (the "Investment Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI"), a wholly- owned subsidiary of Bank of America, N.A. ("Bank of America"), which in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a bank 61 66 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) holding company organized as a Delaware corporation, pursuant to which BAAI provides investment advisory services to the Portfolios. Under the terms of the Investment Advisory Agreement, BAAI is entitled to receive an advisory fee, calculated daily and payable monthly, at the maximum annual rate of 0.15% of each Portfolio's average daily net assets. Reserves has entered into a sub-advisory agreement with BAAI and Banc of America Capital Management, Inc. ("BACAP"), a wholly-owned subsidiary of Bank of America, pursuant to which BACAP is entitled to receive a sub-advisory fee from BAAI at the maximum annual rate of 0.033% of each Portfolio's average daily net assets. Stephens Inc. ("Stephens") and BAAI serve as co-administrators of Reserves. Under the co-administration agreements, Stephens and BAAI are currently entitled to receive a combined fee, computed daily and paid monthly, at the maximum annual rate of 0.10% of each Portfolio's average daily net assets. The Bank of New York ("BNY") serves as sub-administrator of Reserves pursuant to an agreement with BAAI. For the year ended March 31, 2001, Stephens and BAAI earned 0.01% and 0.02%, respectively, of the Portfolios' average daily net assets for their co-administration services. BAAI and/or the sub-adviser and Stephens may, from time to time, reduce their fees payable by each Portfolio. During the year ended March 31, 2001 and until July 31, 2001, BAAI and/or the sub-adviser and Stephens have agreed to reimburse expenses and/or waive their fees to the extent that total expenses (excluding shareholder servicing, shareholder administration and distribution fees) exceed an annual rate of 0.20% of each Portfolio's average daily net assets. BNY serves as the custodian of Reserves' assets. For the year ended March 31, 2001, expenses of certain Portfolios were reduced by $160,953 under expense offset arrangements with BNY. The Portfolios could have invested a portion of the assets utilized in connection with the expense offset arrangements in an income producing asset if they had not entered into such arrangements. Municipal Reserves and California Tax-Exempt Reserves do not participate in the expense offset arrangements. PFPC Inc. ("PFPC") serves as the transfer agent for the Portfolios' shares. Bank of America serves as the sub-transfer agent for the Capital and Trust Class Shares of the Portfolios. Stephens serves as distributor of the Portfolios' shares. No officer, director or employee of Bank of America, BAAI or BACAP, or any affiliate thereof, receives any compensation from Reserves for serving as Trustee or Officer of Reserves. Reserves eligible Trustees may participate in non-qualified deferred compensation and retirement plans which may be terminated at any time. All benefits provided under these plans are unfunded and any payments to plan participants are paid solely out of the Portfolios' assets. Income earned on each plan participant's deferral account is based on the rate of return of the eligible mutual funds selected by the participants or, if no funds are selected, on the rate of return of the Nations Treasury Fund, a portfolio of Nations Fund, Inc., another registered investment company in the Nations Funds family. The expense for the deferred compensation and retirement plans is included in "Trustees' fees and expenses" in the Statements of operations. Certain other affiliated Nations Funds have made daily investments of cash balances in Cash Reserves and Municipal Reserves, pursuant to an exemptive order received from the Securities and Exchange Commission. At March 31, 2001, approximately 1.42% and 2.67% of the net assets of the Cash Reserves and Municipal Reserves, respectively, were held by other affiliated Nations Funds. 3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS Reserves has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for Liquidity Class Shares ("Liquidity Class Shares Plan"), Market Class Shares ("Market Class Shares Plan"), Daily Class Shares ("Daily Class Shares Plan"), Investor Class Shares ("Investor Class Shares Plan"), Investor B Shares ("Investor B Shares Plan"), Investor C Shares ("Investor C Shares Plan") and Service Class Shares ("Service Class Shares Plan") of the Portfolios. Under the Liquidity Class Shares Plan, Reserves may reimburse Stephens for actual expenses incurred by Stephens in connection with its distribution efforts up to 0.30% of the average daily net assets of the Liquidity Class Shares of the Portfolios. Under the Market Class Shares Plan, Reserves may compensate or reimburse Stephens for distribution activities or expenses up to 0.20% of the average daily net assets of the Market Class Shares of the Portfolios. Under the Daily Class Shares Plan, Reserves may reimburse Stephens for actual expenses incurred by Stephens in connection with its distribution efforts up to 0.35% of the average daily net assets of the Daily 62 67 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) Class Shares of the Portfolios. Under the Investor Class Shares Plan, Reserves may reimburse Stephens for actual expenses incurred by Stephens in connection with its distribution efforts up to 0.10% of the average daily net assets of the Investor Class Shares of the Portfolios. Under the Investor B Shares Plan, Investor C Shares Plan and Service Class Shares Plan, Reserves may reimburse Stephens for actual expenses incurred by Stephens in connection with its distribution efforts up to 0.75% of the average daily net assets of the Service Class Shares, Investor B Shares, Investor C Shares of the Portfolios. Currently, Reserves is not reimbursing Stephens for distribution expenses for Liquidity 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 Reserves to pay Stephens an annual fee of up to 0.30% of the average daily net assets of the Liquidity Class Shares of the Cash Reserves, Money Market Reserves, Government Reserves, Municipal Reserves and California Tax-Exempt Reserves and 0.35% of the average daily net assets of Treasury Reserves. Stephens may use this fee to compensate certain financial institutions, with which it has entered into servicing and/or distribution agreements, that provide administrative and/or distribution services to Liquidity Class shareholders. Currently, Reserves is not compensating Stephens for providing such services. Reserves also has adopted shareholder servicing plans ("Servicing Plans") for the Liquidity, Adviser, Market, Daily, Investor, Investor B, Investor C and Service Class Shares of the Portfolios. Under the Servicing Plans, a Portfolio may pay servicing agents that have entered into a shareholder servicing agreement with Reserves for certain shareholder support services that are provided by the servicing agents to holders of the classes' shares. Payments under the Servicing Plans will not exceed 0.25%, on an annualized basis, of the average daily net assets of the classes' shares and are charged as expenses of each Portfolio directly to the applicable share class. Reserves also has adopted shareholder administration plans ("Administration Plans") for the Investor B, Investor C, Trust Class and Institutional Class Shares of the Portfolios. Under the Administration Plans, a Portfolio may pay servicing agents that have entered into a shareholder administration agreement with Reserves for certain shareholder support services that are provided by the servicing agents to holders of the classes' shares. Payments under the Administration Plans will not exceed 0.10%, 0.10%, 0.10% and 0.04%, on an annualized basis, of the average daily net assets of the Investor B, Investor C, Trust Class and Institutional Class Shares, respectively, and are charged as expenses of each Portfolio directly to the applicable share class. During the year ended March 31, 2001 and until July 31, 2001, the annual rates in effect and plan limits, as a percentage of average daily net assets, were and will be as follows:
CURRENT RATE (AFTER FEE PLAN WAIVERS) LIMIT --------------------- DISTRIBUTION PLAN: Liquidity Class: Treasury Reserves.............. 0.00% 0.65% Other Funds.................... 0.00% 0.60% Investor Class................... 0.10% 0.10% Market Class..................... 0.20% 0.20% Daily Class...................... 0.35% 0.35% Service Class, Investor B and Investor C Shares.............. 0.75% 0.75% SHAREHOLDER SERVICING PLAN: Liquidity Class................ 0.15% 0.25% Adviser, Investor, Market, Daily, Service Class, Investor B and Investor C Shares....................... 0.25% 0.25% SHAREHOLDER ADMINISTRATION PLAN: Trust Class, Investor B and Investor C Shares............ 0.10% 0.10% Institutional Class Shares..... 0.04% 0.04%
A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of Bank of America and BAAI. 4. SHARES OF BENEFICIAL INTEREST At March 31, 2001, an unlimited number of shares of beneficial interest without par value was authorized for Reserves. Reserves' Declaration of Trust authorizes the Board of Trustees to classify or reclassify any authorized but unissued shares into one or more additional classes or series of shares. See Schedules of capital stock activity. 5. RESTRICTED SECURITIES Certain securities may be subject to 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 considered illiquid. The following securities are considered both illiquid and restricted as to resale. Accordingly, they are valued at their fair value under procedures adopted by the Board of Trustees. 63 68 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) CASH RESERVES
VALUE FAIR PERCENTAGE HISTORICAL PAR VALUE PER VALUE OF NET COST ACQUISITION 3/31/01 UNIT 3/31/01 ASSETS 3/31/01 SECURITY DATE (000) 3/31/01 (000) 3/31/01 (000) - ---------------------------------------------------------------------------------------------------------------------------- First Allmerica Financial Life Insurance Company: 5.560%+ 04/01/01++................................ 02/25/99 $ 50,000 $1.00 $ 50,000 0.1% $ 50,000 6.849%+ 05/15/01++................................ 05/14/98 50,000 1.00 50,000 0.1 50,000 5.006%+ 06/22/01++................................ 09/22/98 50,000 1.00 50,000 0.1 50,000 GE Life and Annuity Assurance Company, 5.625%+ 04/01/01++................................ 09/01/00 50,000 1.00 50,000 0.1 50,000 Goldman Sachs Group, Inc., 6.830% 06/04/01................................... 09/07/00 150,000 1.00 150,000 0.3 150,000 Jackson National Life Insurance Company, 5.150%+ 06/14/01++................................ 06/14/96 50,000 1.00 50,000 0.1 50,000 Security Life of Denver Insurance Company: 6.471%+ 04/01/01++................................ 07/27/00 60,000 1.00 60,000 0.1 60,000 Transamerica Occidental Life Insurance Company: 5.480%+ 04/01/01++................................ 07/31/00 125,000 1.00 125,000 0.2 125,000 5.520%+ 04/01/01++................................ 07/31/00 117,000 1.00 117,000 0.2 117,000 5.660%+ 05/01/01++................................ 07/31/00 20,000 1.00 20,000 0.0* 20,000
- --------------- + Floating rate security. The interest rate shown reflects the rate in effect at March 31, 2001. ++ Reset date. * Amount represents less than 0.1%. MONEY MARKET RESERVES
VALUE FAIR PERCENTAGE HISTORICAL PAR VALUE PER VALUE OF NET COST ACQUISITION 3/31/01 UNIT 3/31/01 ASSETS 3/31/01 SECURITY DATE (000) 3/31/01 (000) 3/31/01 (000) - ---------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc.: 6.830% 06/04/01................................... 09/07/00 $ 75,000 $1.00 $ 75,000 0.7% $ 75,000
MUNICIPAL RESERVES
VALUE FAIR PERCENTAGE HISTORICAL PAR VALUE PER VALUE OF NET COST ACQUISITION 3/31/01 UNIT 3/31/01 ASSETS 3/31/01 SECURITY DATE (000) 3/31/01 (000) 3/31/01 (000) - ---------------------------------------------------------------------------------------------------------------------------- Bristol, Tennessee Health and Education Facilities Revenue, Series 1995A, (FGIC Insured, Citibank SBPA), 3.550%** 02/28/14................................. 05/18/98 $ 8,500 $1.00 $ 8,500 0.5% $ 8,500 Utah, Intermountain Power Agency Municipal Trust Receipts Power Supply Revenue, Series 1996CMC-4, (FSA Insured, Chase Manhattan SBPA), 3.550%** 07/01/03................................. 05/18/98 9,900 1.00 9,900 0.6 9,900 Memphis, Tennessee Center City Revenue Finance Corporation Multi-Family Housing Revenue, (Riverset Apartments Project) Series 1998PT-1019, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 3.800%** 10/01/19................................. 02/02/00 7,420 1.00 7,420 0.5 7,420 New York State Dormitory Authority Revenue, Series 1998PT-1066, (AMBAC Insured, Merrill Lynch SBPA), 3.330%** 07/01/23................................. 04/18/00 38,990 1.00 38,990 2.4 38,990
64 69 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
VALUE FAIR PERCENTAGE HISTORICAL PAR VALUE PER VALUE OF NET COST ACQUISITION 3/31/01 UNIT 3/31/01 ASSETS 3/31/01 SECURITY DATE (000) 3/31/01 (000) 3/31/01 (000) - ---------------------------------------------------------------------------------------------------------------------------- Palm Beach County, Florida Multi-Family Housing Finance Authority Revenue, (Clear Lake Colony Apartments Project) Series 2000PA-1240, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 3.750%** 09/15/02................................. 09/01/00 $ 8,160 $1.00 $ 8,160 0.5% $ 8,160 Virginia Beach, Virginia Development Authority Multi-Family Housing Revenue, (Briarwood Apartments Project) Series 1999PT-1146, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 3.650%** 04/01/23................................. 10/15/99 13,080 1.00 13,080 0.8 13,080
- --------------- ** Variable rate demand note. The interest rate shown reflects the rate in effect at March 31, 2001. These securities are subject to demand features of either one, seven or thirty days. 6. LINES OF CREDIT Reserves participates with other Nations Funds in an uncommitted line of credit provided by BNY under a line of credit agreement (the "Agreement"). Advances under the Agreement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at a specified Federal Funds rate plus 0.50% on an annualized basis. Each participating Portfolio maintains a ratio of net assets (not including amounts borrowed pursuant to the Agreement) to aggregate amount of indebtedness pursuant to the Agreement of no less than 4 to 1. For the year ended March 31, 2001, borrowings by the Portfolios under the Agreement were as follows:
AVERAGE AMOUNT AVERAGE OUTSTANDING INTEREST PORTFOLIO (000) RATE - ----------------------------------------------------------- Cash Reserves..................... $505 6.81% Money Market Reserves............. 212 6.94 Treasury Reserves................. 37 6.98 Government Reserves............... 336 6.96
The average amount outstanding was calculated based on daily balances in the period. Reserves also participated with other Nations Funds in a committed line of credit provided by BNY that was terminated on December 7, 2000. Interest on borrowings under the committed line was payable at a specified Federal Funds rate plus 0.50% on an annualized basis. A facility fee of 0.09% per annum of the total amounts available under the line of credit was charged, of which each Portfolio paid its pro rata share. This fee was paid quarterly in arrears. Each participating Portfolio was required to maintain an asset coverage ratio of at least 300% under the terms of the arrangement. For the period ended December 7, 2000, there were no borrowings by the Portfolios under the committed line of credit. 65 70 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) 7. CAPITAL LOSS CARRYFORWARD At March 31, 2001, the Portfolios had available for federal income tax purposes the following unused capital losses expiring March 31:
2002 2003 2004 2005 2006 2007 2008 2009 (000) (000) (000) (000) (000) (000) (000) (000) - ----------------------------------------------------------------------------------------------------------- Cash Reserves.............................. $2,405 -- -- -- -- $17 -- -- Money Market Reserves...................... -- -- -- -- -- -- -- $12 Treasury Reserves.......................... -- -- -- $22 $26 2 -- -- Government Reserves........................ 482 -- -- -- 20 36 -- -- Municipal Reserves......................... 19 $38 $31 15 18 1 -- --
During the year ended March 31, 2001, the following Portfolios utilized capital losses as follows:
CAPITAL LOSSES UTILIZED PORTFOLIO (000) - ----------------------------------------------------------------------------- Cash Reserves............................................... $176 Money Market Reserves....................................... -- Treasury Reserves........................................... 94 Government Reserves......................................... 125 Municipal Reserves.......................................... 5 California Tax-Exempt Reserves.............................. 143
During the year ended March 31, 2001 Municipal Reserve's capital loss in the amount of $61,000 expired. 8. REORGANIZATIONS ACQUISITION OF THE PACIFIC HORIZON FUNDS On May 14, 1999, certain Funds, as listed below (each an "Acquiring Fund"), acquired the assets and assumed the liabilities of the Pacific Horizon Funds, also listed below (each an "Acquired Fund"), in a tax-free reorganization in exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization approved by each Acquired Fund's shareholders. The number and value of shares issued by the Acquiring Fund are presented in the Schedules of capital stock activity. Net assets as of the reorganization date were as follows:
TOTAL NET ASSETS TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION ACQUIRING FUND ACQUIRED FUND (000) (000) (000) - --------------------------------------------------------------------------------------------------------------- Cash Reserves Pacific Horizon Prime Fund $13,963,107 $9,973,934 $23,937,041 Treasury Reserves Pacific Horizon Treasury Fund 3,144,071 2,533,049 5,677,120 Government Reserves Pacific Horizon Government Fund 471,810 759,789 1,231,599 Government Reserves Pacific Horizon Treasury Only Fund 423,864 759,789 1,183,653 Municipal Reserves Pacific Horizon Tax Exempt Fund 754,048 380,361 1,134,409
On May 21, 1999, California Tax-Exempt Reserves, a newly established portfolio, acquired the assets and liabilities of the Pacific Horizon California Tax-Exempt Money Market Fund pursuant to a plan of reorganization approved by its shareholders. The acquisition was accomplished by a tax-free exchange of shares of California Tax-Exempt Reserves in an amount equal to the outstanding shares of the Pacific Horizon California Tax-Exempt Money Market Fund. The financial statements of the California Tax-Exempt Reserves reflect the historical financial results of the Pacific Horizon California Tax-Exempt Money Market Fund prior to the reorganization. 66 71 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS --------------------------------------------------------------------------- California Tax-Exempt Money Market Nations California Tax-Exempt Reserves Horizon Service Shares Adviser Class Shares Pacific Horizon Shares Investor Class Shares S Shares Daily Class Shares X Shares Daily Class Shares
9. SUBSEQUENT EVENT On April 5, 2001, BAAI and BACAP reorganized into successor entities named Banc of America Advisors, LLC and Banc of America Capital Management, LLC, respectively. The successor entities are organized as limited liability companies under the laws of the State of North Carolina. 67 72 REPORT OF INDEPENDENT ACCOUNTANTS TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS RESERVES In our opinion, the accompanying statements of net assets, and the related statements of operations, of cash flows for Nations Treasury Reserves and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nations Cash Reserves, Nations Money Market Reserves, Nations Treasury Reserves, Nations Government Reserves, Nations Municipal Reserves and Nations California Tax-Exempt Reserves (each a series of Nations Reserves, hereafter referred to as the "Trust") at March 31, 2001, and the results of each of their operations, the cash flows for Nations Treasury Reserves, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter collectively 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 auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2001 by correspondence with the custodian, provide a reasonable basis for our opinion. The financial highlights of Nations Money Market Reserves for the period December 1, 1997 through May 15, 1998 and each of the two prior periods indicated were audited by other independent accountants whose report dated July 1, 1998 expressed an unqualified opinion on those financial highlights. PricewaterhouseCoopers LLP New York, New York May 16, 2001 68 73 NATIONS FUNDS TAX INFORMATION (UNAUDITED) For the year ended March 31, 2001, all of the distributions made from net investment income of Nations Municipal Reserves and Nations California Tax-Exempt Reserves are tax exempt for Federal income tax purposes. A portion of this income may be subject to Federal Alternative Minimum Tax. 69 74 PO Box 34602 Charlotte, NC 28254-4602 Toll free 1.800.626.2275 (institutional investors) Toll free 1.800.321.7854 (individual investors) [NATIONS FUNDS LOGO] RESERVESAR (3/01) -----END PRIVACY-ENHANCED MESSAGE-----