N-30D 1 g72244n-30d.txt INSTITUTIONAL RESERVES (NATIONS RESERVES SAR) [GRAPHIC: DROP OF WATER] Nations Cash Reserves Nations Money Market Reserves Nations Treasury Reserves Nations Government Reserves Nations Municipal Reserves Nations California Tax-Exempt Reserves NATIONS RESERVES SEMIANNUAL REPORT MONEY MARKET FUNDS FOR THE PERIOD ENDED SEPTEMBER 30, 2001 SEMIANNUAL REPORT [NATIONS FUNDS LOGO] 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 Corporation, 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, LLC NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE NATIONS RESERVES MONEY MARKET FUNDS DEAR SHAREHOLDER: We are pleased to present the semiannual financial report for Nations Reserves money market funds (the "Funds"). This report contains important financial data regarding your investment for the period ended September 30, 2001. We hope you will take a moment to review this information. A DEFINING PERIOD FOR INVESTORS The second half of the Funds' fiscal year brought a series of dramatic easings of short-term interest rates by the Federal Reserve Board (Fed). Citing weak corporate profits, slower business spending on new equipment and sluggish global economies, the Fed lowered the benchmark Fed Funds rate by 25 basis points to 3.75% on June 27, 2001. This quarter percentage point cut, which regulators hoped would keep the U.S. economy out of a recession, followed five earlier reductions of a half point each. During the third quarter, the economy still showed no signs of a turnaround, and the Fed again lowered its target Fed Funds rate by 75 basis points to 3.00%. In light of the continued weakness and the significant impact of the events on September 11th, we believe the Fed is likely to reduce its target again by year-end. AN ACTIVE MANAGEMENT APPROACH Our portfolio management team has been working diligently to anticipate the Fed moves and structure the portfolios in seeking to best capture value in this declining rate environment. The Funds enjoyed a favorable position as the weighted average maturities (WAMs) of the portfolios were extended to allow investors to take advantage of higher yields than those offered on overnight securities, without assuming substantial additional risk or loss of overall quality. More recently, the Funds have maintained longer WAMs and seek to continue to preserve high credit quality standards to better position them for a meaningful downturn in the economy. OUTLOOK ON THE U.S. ECONOMY The economy, which had been experiencing anemic growth prior to the terrorist attacks, is expected by us to be negatively affected in the short-run with the gross domestic product (GDP) growing fractionally, if at all, in third quarter 2001 and declining in fourth quarter 2001. Despite this period of slow growth, fundamental factors had been pointing toward a pickup in economic activity: the Fed has been easing aggressively, there has been a very rapid growth in the money supply; tax cuts are in place; and energy prices have drifted down. We believe the Fed's top priority will remain providing sufficient liquidity in order to accommodate an efficiently functioning banking system, and ensuring order in financial markets. There is substantial monetary easing already in the pipeline, and we believe the current Fed liquidity infusion will accelerate the trend of rapid money supply growth, as well as reinforcing the liquid, well-capitalized banking system. An efficient and rapid inventory correction is already far along. In our opinion, negative sentiment and uncertainty will dominate the very short-term horizon, but in the current situation, two points are important to remember: one, crises and economic slumps don't last forever, and two, the underlying structure of the economy remains sound, with the outlook for healthy sustained growth intact. It is our view that purposefully directed macroeconomic policies, an efficiently functioning banking system and capital markets, along with efficient and flexible production processes and labor markets, are expected to restore economic growth. 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. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. OUR COMMITMENT TO YOUR SHORT-TERM INVESTMENT NEEDS We stand committed to providing competitive products and services for your short-term investment and cash management needs. 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 /s/ Robert H. Gordon A. Max Walker Robert H. Gordon President and Chairman of the President, Banc of America Advisors, LLC Board, Nations Reserves
September 30, 2001 Sources for economic and statistical data: Banc of America Capital Management, LLC. P.S. Since September 30, 2001, the Federal Reserve Board has twice reduced the Federal Funds rate, which now stands at 2.00%. This is the lowest the rate has been in 40 years. TABLE OF CONTENTS FINANCIAL STATEMENTS Statements of net assets Nations Cash Reserves 2 Nations Money Market Reserves 10 Nations Treasury Reserves 14 Nations Government Reserves 16 Nations Municipal Reserves 18 Nations California Tax-Exempt Reserves 31 Statements of operations 38 Statements of changes in net assets 40 Statement of cash flows 44 Schedules of capital stock activity 45 Financial highlights 52 Notes to financial statements 64
------------------------------------------------------------------------------ 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. ------------------------------------------------------------------------------
NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ ASSET-BACKED SECURITIES -- 3.3% ASSET-BACKED -- AUTO LOANS -- 0.7% $ 20,310 Americredit Automobile Receivables Trust, Series 2001-1, Class A1, 4.808% 05/06/02................. $ 20,310 47,048 Daimler Chrysler Auto Trust, Series 2001-B, Class A1, 3.980%+ 10/06/01++.............. 47,048 162,516 Ford Credit Auto Owner Trust, Series 2001-D, Class A1, 3.461%+ 10/17/01++.............. 162,516 38,151 Honda Auto Receivables Owner Trust, Series 2001-2, Class A1, 3.730%+ 10/20/01++.............. 38,151 84,709 MMCA Automobile Trust, Series 2001-2, Class A1, 3.898% 07/15/02................. 84,709 46,114 Nissan Auto Receivables Owner Trust, Series 2001-B, Class A1, 4.743% 05/15/02................. 46,114 44,445 Nissan Auto Receivables Owner Trust, Series 2001-C, Class A1, 3.445%+ 10/17/01++.............. 44,445 ----------- 443,293 ----------- ASSET-BACKED -- CREDIT CARD RECEIVABLES -- 2.5% Citibank Credit Card Issue Trust, Series 2001, Class A3, 100,000 3.511% 10/10/01................... 99,913 100,000 3.008% 10/18/01#.................. 99,858 Citibank Credit Card Master Trust I, 200,000 3.460% 10/11/01................... 199,808 200,000 2.525% 10/24/01................... 199,678 Discover Card Master Trust I, Series 2000-A, 75,000 3.054% 10/04/01................... 74,981 300,000 2.506% 10/24/01#.................. 299,521 100,000 2.556% 10/24/01#.................. 99,837 275,550 2.506% 10/25/01................... 275,091 MBNA Credit Card Master Trust II, 150,000 3.520% 10/25/01................... 149,650 100,000 3.501% 11/01/01................... 99,700 ----------- 1,598,037 ----------- ASSET-BACKED -- OTHER -- 0.1% 42,643 CIT Equipment Collateral, Series 2001-A, Class A1, 3.480%+ 10/20/01++.............. 42,643 ----------- TOTAL ASSET-BACKED SECURITIES (Cost $2,083,973)................. 2,083,973 ----------- BANK OBLIGATIONS -- 25.1% BANK NOTES -- 2.1% Bank One, N.A., Illinois 100,000 3.805%+ 10/29/01++................ 100,111 150,000 6.660% 11/02/01................... 149,995 200,000 6.680% 11/02/01................... 199,995 150,000 Branch Banking & Trust 3.510%+ 11/19/01++.............. 150,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ BANK NOTES -- (CONTINUED) Comerica Bank, N.A. $ 200,000 3.561%+ 10/03/01++................ $ 200,000 200,000 3.471%+ 10/14/01++................ 199,998 100,000 First Union National Bank 2.694%+ 10/23/01++.............. 100,015 National City Bank 45,000 3.611%+ 10/01/01++................ 45,006 150,000 2.755%+ 10/21/01++................ 149,996 ----------- 1,295,116 ----------- CERTIFICATES OF DEPOSIT -- DOMESTIC -- 3.0% Allfirst Bank 100,000 2.641%+ 10/25/01++................ 100,000 200,000 2.654%+ 10/28/01++................ 200,000 40,000 3.503%+ 11/28/01++................ 40,000 200,000 Allfirst Bank (New York) 3.478% 10/16/01................. 200,000 Comerica Bank, N.A. 125,000 3.125%+ 10/01/01++................ 124,996 250,000 3.028%+ 10/20/01++................ 249,993 100,000 First Union National Bank 3.579%+ 10/05/01++................ 99,997 300,000 National City Bank 3.561%+ 10/04/01++.............. 300,000 400,000 National Westminister Bank USA 4.130% 06/05/02................. 399,974 150,000 SouthTrust Bank, N.A. 4.070% 05/14/02................. 150,000 ----------- 1,864,960 ----------- CERTIFICATES OF DEPOSIT -- EURO -- 2.0% Bank of Scotland 200,000 2.950% 10/22/01................... 200,003 170,000 3.430% 12/07/01................... 170,206 100,000 3.430% 02/22/02(++)............... 99,995 150,000 Deutsche Bank AG 2.590% 10/25/01................. 150,004 100,000 Halifax plc 3.450% 02/21/02(++)............. 100,003 Societe Generale 300,000 3.410% 10/17/01................... 300,109 229,000 3.270% 12/12/01................... 229,226 ----------- 1,249,546 ----------- CERTIFICATES OF DEPOSIT -- YANKEE -- 16.0% 100,000 ABN AMRO Bank (New York) 5.040% 02/04/02................. 99,997 Bank of Nova Scotia, (New York) 75,000 4.390% 05/02/02................... 74,996 100,000 6.620% 11/02/01................... 99,998 Bank of Scotland, (New York) 100,000 4.130% 05/31/02................... 100,006 100,000 4.100% 08/02/02................... 100,000 Bayerische Hypotheken und Vereinsbank AG, (New York) 200,000 4.260% 05/08/02................... 200,000 200,000 4.090% 07/08/02................... 200,000 170,000 3.630% 08/20/02................... 169,978 100,000 3.340% 09/12/02................... 100,000
SEE NOTES TO FINANCIAL STATEMENTS. 2 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CERTIFICATES OF DEPOSIT -- YANKEE -- (CONTINUED) Bayerische Landesbank, (New York) $ 185,000 2.554%+ 10/01/01++................ $ 184,898 225,000 3.030%+ 10/01/01++................ 224,983 200,000 3.030%+ 10/01/01++................ 200,000 250,000 4.230% 05/22/02................... 249,984 250,000 3.595% 09/24/02................... 249,976 Canadian Imperial Bank of Commerce, (New York) 50,000 2.510% 10/24/01................... 50,000 200,000 6.620% 11/02/01................... 199,995 200,000 4.260% 05/08/02................... 200,000 300,000 4.220% 05/22/02................... 299,972 200,000 4.090% 07/08/02................... 200,000 250,000 4.080% 07/10/02................... 249,981 Commerzbank AG (New York) 400,000 4.140% 05/21/02................... 400,000 100,000 2.531%+ 10/28/01++................ 99,980 100,000 5.000% 02/05/02................... 99,997 250,000 4.110% 08/02/02................... 249,980 Credit Agricole, (New York) 200,000 2.640% 12/21/01................... 200,018 150,000 5.080% 02/06/02................... 149,995 300,000 4.240% 05/15/02................... 299,982 Credit Communal de Belgique, (New York) 200,000 4.260% 05/22/02................... 199,988 300,000 4.250% 05/23/02................... 299,981 100,000 Credit Suisse First Boston, (New York) 2.510% 10/24/01................. 100,001 Deutsche Bank AG, (New York) 200,000 6.720% 10/10/01................... 199,999 250,000 6.620% 11/02/01................... 249,994 200,000 2.610% 09/23/02................... 200,019 75,000 Dresdner Bank AG, (New York) 5.220% 02/19/02................. 75,000 200,000 Kredietbank NV, (New York) 2.600% 10/22/01................. 200,000 National Bank of Canada, (New York) 200,000 4.090% 05/20/02................... 200,012 200,000 4.240% 05/22/02................... 200,012 Rabobank Nederland NV, (New York) 50,000 6.610% 11/02/01................... 49,999 50,000 5.000% 02/05/02................... 49,998 Royal Bank of Canada, (New York) 250,000 6.210% 12/11/01................... 249,981 50,000 2.900% 09/19/02................... 50,057 50,000 2.800% 09/20/02................... 50,010 Societe Generale, (New York) 300,000 4.250% 05/23/02................... 299,981 100,000 3.600% 08/12/02................... 100,000 Toronto Dominion Bank, (New York) 200,000 2.510% 10/24/01................... 200,001 100,000 6.240% 12/11/01................... 99,994 80,000 4.240% 05/22/02................... 79,995 United Bank of Switzerland AG, (Stamford Connecticut) 450,000 2.820% 10/19/01................... 450,001 150,000 4.100% 05/20/02................... 150,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CERTIFICATES OF DEPOSIT -- YANKEE -- (CONTINUED) $ 250,000 4.135% 05/31/02................... $ 249,976 150,000 3.780% 06/28/02................... 150,234 200,000 3.628% 09/25/02................... 199,966 125,000 3.638% 09/27/02................... 124,979 Westdeutsche Landesbank, (New York) 100,000 5.250% 02/15/02................... 100,000 75,000 4.200% 05/17/02................... 75,000 270,000 4.080% 07/10/02................... 270,193 150,000 3.600% 08/14/02................... 150,000 ----------- 10,030,087 ----------- TIME DEPOSITS -- EURO -- 2.0% 560,000 Chase Manhattan Bank USA, N.A. 2.500% 10/01/01................. 560,000 150,000 National City Bank of Kentucky 3.465% 02/15/02(++)............. 150,029 492,000 Societe Generale 3.438% 10/01/01................. 492,000 29,240 SunTrust Bank 2.000% 10/01/01................. 29,240 ----------- 1,231,269 ----------- TOTAL BANK OBLIGATIONS (Cost $15,670,978).............. 15,670,978 ----------- CORPORATE OBLIGATIONS -- 56.1% COMMERCIAL PAPER -- 37.6% Amstel Funding Corporation 157,523 Discount note 10/12/01#........... 157,343 150,000 Discount note 10/18/01#........... 149,752 100,000 Discount note 10/19/01#........... 99,850 90,147 Discount note 10/23/01#........... 89,950 300,000 Discount note 11/09/01#........... 298,716 100,000 Discount note 11/14/01#........... 99,573 280,339 Discount note 03/04/02#........... 276,244 167,991 Discount note 03/08/02#........... 165,963 Aspen Funding Corporation 100,000 Discount note 10/02/01#........... 99,993 100,000 Discount note 10/05/01#........... 99,961 50,000 Bank of Scotland Treasury Services plc Discount note 02/22/02............ 49,330 Bavaria TRR Corporation 280,000 Discount note 10/09/01#........... 279,785 150,000 Discount note 10/22/01#........... 149,776 100,000 Discount note 10/24/01#........... 99,837 50,470 Discount note 11/01/01#........... 50,314 Beta Finance Inc. 50,000 Discount note 10/26/01#........... 49,876 36,000 Discount note 11/21/01#........... 35,827 117,000 Discount note 02/25/02#........... 115,383 39,500 CC (USA) Inc. Discount note 11/16/01#........... 39,328 Computer Sciences Corporation 70,000 2.866%+ 10/27/01++#............... 70,000 50,000 2.866%+ 10/27/01++#............... 50,000 Corporate Asset Funding Corporation 210,000 Discount note 11/06/01#........... 209,450 100,000 Discount note 11/07/01#........... 99,649 200,000 Discount note 11/15/01#........... 199,153
SEE NOTES TO FINANCIAL STATEMENTS. 3 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) Corporate Receivables Corporation $ 100,000 Discount note 10/12/01#........... $ 99,891 100,000 Discount note 11/15/01#........... 99,575 100,000 Discount note 11/20/01#........... 99,528 100,000 Discount note 11/21/01#........... 99,518 100,000 Discount note 11/29/01#........... 99,569 100,000 Discount note 12/13/01#........... 99,467 190,000 Discount note 12/20/01#........... 188,944 49,114 Delaware Funding Corporation Discount note 10/22/01#........... 49,043 211,195 Dexia Delaware LLC Discount note 12/10/01#........... 210,119 Edison Asset Securitization LLC 300,000 Discount note 10/09/01#........... 299,837 150,000 Discount note 10/29/01#........... 149,679 370,000 Discount note 11/26/01#........... 368,543 60,000 Falcon Asset Securitization Corporation Discount note 10/16/01#........... 59,914 Four Winds Funding LLC 200,000 Discount note 10/11/01#........... 199,808 250,000 3.498%+ 10/15/01++#............... 250,000 Galaxy Funding Inc. 200,000 Discount note 10/22/01#........... 199,703 375,000 Discount note 10/24/01#........... 374,280 50,000 Discount note 11/08/01#........... 49,868 140,000 Discount note 11/08/01#........... 139,490 135,000 Discount note 12/13/01#........... 134,067 General Electric Capital Corporation 300,000 Discount note 11/15/01............ 298,733 250,000 Discount note 11/19/01............ 248,795 100,000 Discount note 11/27/01............ 99,465 150,000 Discount note 12/17/01............ 149,076 150,000 Discount note 12/19/01............ 148,874 100,000 Discount note 12/26/01............ 99,114 200,000 Discount note 04/12/02............ 196,086 General Electric Capital International Funding 150,000 Discount note 10/15/01#........... 149,796 150,000 Discount note 11/09/01#........... 149,443 250,000 Discount note 12/26/01#........... 248,507 200,000 Discount note 12/27/01#........... 198,792 300,000 Discount note 03/26/02#........... 296,392 General Electric Capital Services 150,000 Discount note 11/26/01............ 149,204 100,000 Discount note 11/27/01............ 99,459 50,000 Discount note 11/28/01............ 49,725 100,000 Discount note 12/14/01............ 99,262 GIRO Balanced Funding Corporation 50,794 Discount note 10/09/01#........... 50,754 82,012 Discount note 10/11/01#........... 81,933 124,982 Discount note 10/12/01#........... 124,848 260,892 Discount note 10/19/01............ 260,438 300,000 Discount note 10/22/01#........... 299,500 133,752 Discount note 11/27/01#........... 133,201 GIRO Funding US Corporation 61,335 .000% 10/11/01#................... 61,276 150,000 .000% 10/19/01#................... 149,813 250,000 Goldman Sachs Group Inc. .000% 11/30/01.................. 248,896
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) Greyhawk Funding LLC $ 115,000 Discount note 10/18/01#........... $ 114,807 132,000 Discount note 10/19/01#........... 131,764 150,000 Discount note 10/25/01#........... 149,644 69,905 Discount note 11/14/01#........... 69,613 Jupiter Securitization Corporation 220,027 Discount note 10/10/01#........... 219,837 369,422 Discount note 10/11/01#........... 369,064 142,595 Discount note 10/18/01#........... 142,423 200,000 Discount note 10/19/01#........... 199,750 100,000 Discount note 10/29/01#........... 99,724 Lone Star Funding LLC 191,183 Discount note 10/09/01#........... 191,033 181,295 Discount note 10/15/01#........... 181,047 115,000 Discount note 10/18/01#........... 114,834 81,702 Discount note 10/23/01#........... 81,522 300,000 Merrill Lynch and Company .000% 10/12/01.................. 299,684 MOAT Funding LLC 100,000 Discount note 10/15/01#........... 99,866 150,000 Discount note 11/28/01#........... 149,140 100,000 Discount note 11/29/01#........... 99,443 200,000 Discount note 12/05/01#........... 198,628 150,000 Discount note 12/06/01#........... 148,980 100,000 Discount note 12/12/01#........... 99,266 100,000 Discount note 12/14/01#........... 99,486 Morgan Stanley Dean Witter and Company 450,000 3.538%+ 10/02/01++................ 449,999 650,000 Discount note 10/04/01............ 649,867 Moriarty LLC 100,000 Discount note 10/15/01#........... 99,903 50,000 Discount note 10/17/01#........... 49,944 100,000 Discount note 10/18/01#........... 99,882 200,000 Discount note 10/25/01#........... 199,523 50,000 Discount note 11/05/01#........... 49,809 100,000 Discount note 11/08/01#........... 99,586 105,000 Discount note 11/30/01#........... 104,335 50,000 Discount note 12/03/01#........... 49,668 50,000 Discount note 12/07/01#........... 49,683 100,000 Discount note 12/10/01#........... 99,489 162,800 Discount note 12/18/01#........... 161,831 250,000 Discount note 12/20/01#........... 248,600 Ness LLC 78,265 Discount note 10/10/01#........... 78,197 180,000 Discount note 10/22/01#........... 179,622 Newport Funding Corporation 100,000 Discount note 10/02/01#........... 99,993 100,000 Discount note 10/05/01#........... 99,961 200,000 Discount note 11/26/01#........... 198,948 North Coast Funding LLC 200,000 Discount note 10/01/01#........... 200,000 100,000 Discount note 10/03/01#........... 99,980 100,000 Discount note 10/15/01#........... 99,866 200,000 Discount note 10/18/01#........... 199,700 99,403 Discount note 10/23/01#........... 99,242 100,000 Discount note 10/25/01#........... 99,830 50,000 Northern Rock plc Discount note 10/29/01............ 49,861
SEE NOTES TO FINANCIAL STATEMENTS. 4 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) Paradigm Funding LLC $ 143,000 Discount note 10/11/01#........... $ 142,863 52,000 Discount note 10/12/01#........... 51,944 200,000 Discount note 10/15/01#........... 199,728 Park Avenue Receivables 75,325 Discount note 10/10/01#........... 75,260 64,004 Discount note 10/12/01#........... 63,937 186,696 Discount note 10/18/01#........... 186,476 100,000 Discount note 10/23/01#........... 99,847 100,000 Discount note 10/25/01#........... 99,833 Pennine Funding LLC 130,000 Discount note 10/09/01#........... 129,898 151,000 Discount note 10/10/01#........... 150,870 190,000 Discount note 10/23/01#........... 189,710 200,000 Discount note 10/24/01#........... 199,677 111,000 Discount note 10/30/01#........... 110,682 100,000 Discount note 11/27/01#........... 99,462 87,350 Discount note 12/04/01#........... 86,942 150,000 Discount note 12/18/01#........... 149,100 100,000 Public Square Funding, Series I Discount note 12/12/01#........... 99,260 55,000 Quebec Province Discount note 12/03/01............ 54,641 Siefunds Corporation 32,285 Discount note 10/09/01#........... 32,260 100,000 Discount note 10/12/01#........... 99,921 325,746 Discount note 10/18/01#........... 325,345 50,000 Sigma Finance, Inc. Discount note 02/15/02#........... 49,262 Surrey Funding Corporation 130,000 Discount note 10/05/01#........... 129,949 200,000 Discount note 10/09/01#........... 199,844 150,000 Discount note 10/22/01#........... 149,777 66,724 Thames Asset Global Securitization Discount note 10/22/01#........... 66,585 Trident Capital Finance 356,200 Discount note 10/02/01#........... 356,166 250,000 Discount note 10/18/01#........... 249,661 Tulip Funding Corporation 86,676 Discount note 10/19/01#........... 86,521 100,000 Discount note 11/28/01#........... 99,452 UBS Finance (Delaware) Inc. 200,000 Discount note 10/22/01#........... 199,710 35,750 Discount note 12/18/01#........... 35,547 Variable Funding Capital Corporation 250,000 3.560%+ 10/09/01++#............... 250,000 150,000 Discount note 10/25/01#........... 149,644 60,000 Discount note 11/07/01#........... 59,789 400,000 Verizon Global Funding 3.186%+ 12/15/01++................ 399,999 Victory Receivables Corporation 22,032 Discount note 10/10/01#........... 22,018 53,079 Discount note 10/11/01#........... 53,026 61,541 Discount note 10/22/01#........... 61,451 100,000 Discount note 10/25/01#........... 99,759 60,448 Discount note 02/14/02#........... 59,628 73,514 Discount note 02/22/02#........... 72,514
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) WCP Funding Inc. $ 100,000 Discount note 10/10/01#........... $ 99,910 75,000 Discount note 11/09/01#........... 74,715 100,000 Discount note 11/16/01#........... 99,567 50,000 World Omni Vehicle Leasing, Inc. Discount note 10/15/01#......... 49,932 ----------- 23,396,234 ----------- CORPORATE BONDS AND NOTES -- 18.5% 25,000 American General Finance 6.950% 05/15/02................... 25,408 American Honda Finance Corporation 100,000 3.567%+ 10/10/01++##.............. 100,000 100,000 3.790%+ 10/12/01++##.............. 100,000 75,000 3.521%+ 10/13/01++##.............. 75,000 100,000 3.760%+ 10/15/01++##.............. 100,000 150,000 3.496%+ 10/18/01++##.............. 150,000 50,000 3.374%+ 10/19/01++##.............. 50,000 50,000 3.048%+ 10/20/01++##.............. 50,000 35,000 3.760%+ 10/22/01++##.............. 35,000 100,000 2.664%+ 10/28/01++##.............. 100,000 100,000 3.560%+ 11/19/01++................ 100,000 125,000 AT&T Capital Corporation 3.980%+ 10/23/01++................ 125,088 100,000 Bank One Corporation, MTN 3.310%+ 12/16/01++................ 100,046 Bear, Stearns and Company, Inc. 200,000 3.610%+ 10/29/01++................ 200,000 176,000 4.054%+ 11/01/01++................ 176,549 250,000 3.545%+ 11/30/01++................ 250,000 25,000 4.050% 07/17/02................... 25,000 200,000 Beta Finance, Inc. 4.145% 07/15/02##................. 200,000 50,000 Caterpillar Financial Service Corporation 3.513%+ 12/04/01++................ 50,000 CC (USA) Inc. 100,000 4.145% 07/15/02##................. 100,000 100,000 4.165% 07/15/02##................. 100,000 100,000 4.170% 07/15/02##................. 100,000 125,000 3.600% 08/23/02#.................. 125,000 Chase Manhattan Corporation 50,000 2.673%+ 12/22/01++................ 50,042 40,000 3.680% 09/11/02................... 40,060 CIT Group Inc. 110,000 2.834%+ 10/31/01++................ 110,017 50,000 3.650%+ 11/30/01++................ 50,024 300,000 Countrywide Home Loans Inc. 3.710%+ 11/16/01++................ 300,000 Credit Suisse First Boston, Inc. 350,000 3.624%+ 11/09/01++##.............. 350,000 150,000 3.521%+ 11/20/01++................ 150,000 50,000 Dresdner Bank AG 3.540%+ 12/03/01.................. 50,007 Ford Motor Credit Company 116,875 4.030%+ 10/16/01++................ 116,942 143,000 3.879%+ 11/01/01++................ 143,009 400,000 3.220%+ 12/15/01++................ 400,000 75,000 3.230% 12/19/01................... 75,012
SEE NOTES TO FINANCIAL STATEMENTS. 5 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CORPORATE BONDS AND NOTES -- (CONTINUED) $ 15,000 General Electric Capital Corporation 6.700% 10/01/02................... $ 15,573 General Motors Acceptance Corporation 225,000 3.731%+ 10/12/01++................ 225,000 47,900 3.805%+ 10/29/01++................ 47,905 285,236 3.830%+ 10/29/01++................ 285,018 9,000 3.769%+ 11/01/01++................ 8,998 100,000 3.828%+ 11/23/01++................ 100,105 7,000 3.888% 11/26/01................... 7,002 60,000 3.360%+ 12/08/01++................ 59,986 25,000 3.620% 12/10/01................... 25,007 41,000 3.330%+ 12/15/01++................ 41,008 15,570 3.525% 12/17/01................... 15,578 400,000 3.150%+ 12/19/01.................. 400,001 125,000 2.966% 12/28/01................... 125,072 Goldman Sachs Group, Inc. 100,000 4.070% 12/10/01(++)............... 100,000 50,000 3.281%+ 12/14/01++(++)............ 50,046 200,000 4.130% 02/04/02(++)............... 200,000 200,000 4.050% 02/28/02(++)............... 200,000 300,000 3.610% 05/29/02(++)............... 300,000 Household Finance Corporation 85,000 4.036%+ 10/03/01++................ 85,068 150,000 3.518%+ 10/16/01++................ 150,000 30,000 3.518%+ 10/16/01++................ 30,004 65,000 2.750%+ 12/27/01++................ 65,068 K2 (USA) LLC 150,000 3.557%+ 10/10/01++#............... 150,000 100,000 3.488%+ 10/15/01++##.............. 100,000 KeyCorp 150,000 3.709%+ 10/24/01.................. 150,000 50,000 3.705% 10/30/01................... 50,000 150,000 3.538% 11/21/01................... 149,996 100,000 3.150%+ 12/15/01++................ 99,992 Lehman Brothers Holdings Inc. 88,800 4.140%+ 10/09/01++................ 89,003 250,000 3.531%+ 10/12/01++................ 250,000 124,150 4.570%+ 10/12/01++................ 124,922 100,000 4.300% 10/19/01................... 100,028 Links Finance LLC 100,000 3.100%+ 10/01/01++##.............. 100,000 100,000 3.581%+ 10/04/01++#............... 99,994 100,000 3.488%+ 10/15/01++#............... 100,000 100,000 3.488%+ 10/17/01++................ 100,012 50,000 2.651%+ 10/25/01++##.............. 50,000 100,000 4.270% 05/20/02................... 100,000 50,000 3.790% 08/15/02................... 50,017 125,000 Merck and Company, Inc. 5.100% 02/22/02................. 125,000 Merrill Lynch and Company 100,000 3.651%+ 10/01/01++................ 100,052 290,000 3.561%+ 10/04/01++................ 290,000 150,000 3.561%+ 10/04/01++................ 150,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CORPORATE BONDS AND NOTES -- (CONTINUED) $ 100,000 3.364%+ 10/19/01++................ $ 100,000 100,000 Minnesota Mining and Manufacturing Company 6.325% 12/12/01##................. 100,000 300,000 Morgan Stanley Dean Witter and Company 3.548%+ 10/15/01++................ 300,000 National Rural Utilities Cooperative Finance Corporation 75,000 3.594%+ 11/09/01++................ 75,000 250,000 5.100% 02/05/02................... 250,000 150,000 Nationwide Building Society 3.501%+ 10/12/01++##.............. 150,000 200,000 Northern Rock plc 3.501%+ 10/12/01++##.............. 200,000 350,000 SBC Communications Inc. 3.491%+ 10/14/01++##.............. 349,992 Sigma Finance, Inc. 100,000 3.155%+ 10/01/01++##.............. 100,000 100,000 3.650% 09/10/02................... 100,000 96,903 SMM Trust, Series 1999-J 3.760% 10/22/01##................. 96,903 Toyota Motor Credit Corporation 100,000 2.755%+ 12/27/01++................ 100,000 40,000 3.075%+ 12/27/01++................ 40,000 132,000 Unilever plc 2.996%+ 12/20/01++................ 132,035 25,000 Verizon Global Funding Corporation 2.873%+ 12/21/01++................ 25,021 100,740 Wells Fargo Company 6.500% 09/03/02................. 103,319 ----------- 11,559,929 ----------- TOTAL CORPORATE OBLIGATIONS (Cost $34,956,163).............. 34,956,163 ----------- FOREIGN BONDS AND NOTES -- 1.2% 544,000 International Bank for Reconstruction and Development, Discount note 10/19/01............ 543,281 200,000 International Bank for Reconstruction and Development, Discount note 10/22/01............ 199,708 ----------- TOTAL FOREIGN BONDS AND NOTES (Cost $742,989)................. 742,989 ----------- FUNDING AGREEMENTS -- 0.8% First Allmerica Financial Life Insurance Company 50,000 3.450%+ 10/01/01++(++)............ 50,000 50,000 3.660%+ 11/15/01++(++)............ 50,000 50,000 2.723%+ 12/22/01++(++)............ 50,000 50,000 Jackson National Life Insurance Company 3.250%+ 12/14/01++(++)............ 50,000
SEE NOTES TO FINANCIAL STATEMENTS. 6 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ FUNDING AGREEMENTS -- (CONTINUED) $ 60,000 Security Life of Denver Insurance Company 3.800%+ 10/01/01++(++)............ $ 60,000 Transamerica Occidental Life Insurance Company 125,000 3.370%+ 10/01/01++(++)............ 125,000 117,000 3.820%+ 10/01/01++(++)............ 117,000 20,000 3.810%+ 11/01/01++(++)............ 20,000 ----------- TOTAL FUNDING AGREEMENTS (Cost $522,000)................. 522,000 ----------- MUNICIPAL BONDS AND NOTES -- 0.3% ILLINOIS -- 0.0%(+) 28,800 Illinois Student Assistance Commission Revenue, Series 1990B, (GTD STD LNS, First National Bank of Chicago LOC), 3.070%+ 05/01/10................ 28,800 ----------- MISSOURI -- 0.0%(+) 13,400 Missouri State Economic Development Export Revenue, (Biocraft Labs, Inc. Project) Series 1989, (PNC Bank LOC), 3.200%+ 09/01/04................ 13,400 ----------- VIRGINIA -- 0.3% 140,000 Virginia State Housing Development Authority Commonwealth Revenue, Series 1996E, 3.000%+ 01/01/46................ 140,000 ----------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $182,200)................. 182,200 ----------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 7.4% FEDERAL FARM CREDIT BANK (FFCB) -- 0.2% 155,000 3.750% 08/01/02................... 154,979 ----------- FEDERAL HOME LOAN BANK (FHLB) -- 2.6% 300,000 2.970%+ 10/01/01++................ 299,781 150,000 3.365%+ 10/13/01++................ 149,871 308 Discount note 10/17/01............ 308 250,000 2.933%+ 10/20/01++................ 249,915 500,000 2.645%+ 10/21/01++................ 499,636 150,000 2.474%+ 10/24/01++................ 149,890 200,075 Discount note 11/21/01............ 199,359 92,315 6.750% 05/01/02................... 94,021 10,000 6.000% 08/15/02................... 10,229 ----------- 1,653,010 ----------- FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) CERTIFICATES -- 2.6% 525,179 Discount note 10/09/01............ 524,855 104,810 Discount note 10/12/01............ 104,724 446,551 Discount note 10/16/01............ 446,045 250,000 Discount note 10/26/01............ 249,524 225,000 Discount note 11/09/01............ 224,337
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) CERTIFICATES -- (CONTINUED) $ 917 Discount note 12/20/01............ $ 912 33,700 3.900% 05/23/02................... 32,844 10,000 6.625% 08/15/02................... 10,283 ----------- 1,593,524 ----------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) CERTIFICATES -- 1.4% 150,000 Discount note 11/06/01............ 149,510 144,210 Discount note 11/08/01............ 143,691 208,416 Discount note 11/21/01............ 207,420 131,660 Discount note 02/21/02............ 129,905 125,000 Discount note 02/28/02............ 123,245 110,000 6.750% 08/15/02................... 112,811 ----------- 866,582 ----------- STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 0.6% 350,000 2.980%+ 10/01/01++................ 349,838 ----------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (Cost $4,617,933)............... 4,617,933 ----------- REPURCHASE AGREEMENTS -- 5.9% 100,000 Agreement with Credit Suisse First Boston Corporation, 3.450% dated 09/28/01 to be repurchased at $100,029 on 10/01/01 collateralized by: $51,041 Stellar Funding Group Commercial Paper due 12/19/01 - 03/20/02; $50,963 Walt Disney Company Commercial Paper due 03/08/02... 100,000 390,000 Agreement with Dresdner Kleinwort Benson North America LLC, 2.800% dated 09/28/01 to be repurchased at $390,091 on 10/01/01 collateralized by: $338,536 U.S. Treasury Notes, 4.250% - 6.625% due 06/30/03 - 08/15/10; $59,265 U.S. Treasury Strips, Interest Only, due 05/15/10.............. 390,000 495,000 Agreement with Goldman Sachs and Company, 3.000% dated 09/28/01 to be repurchased at $495,124 on 10/01/01 collateralized by: $238,242 U.S. Treasury Bills due 10/04/01; $256,758 FHLMC due 01/31/02........................ 495,000 1,500,000 Agreement with Goldman Sachs and Company, 3.500% dated 09/28/01 to be repurchased at $1,500,438 on 10/01/01 collateralized by: $1,500,000 Various Commercial Paper, due 10/04/01 - 04/02/02............. 1,500,000
SEE NOTES TO FINANCIAL STATEMENTS. 7 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $ 850,000 Agreement with J.P. Morgan Securities Inc., 3.470% dated 09/28/01 to be repurchased at $850,246 on 10/01/01 collateralized by: $187,846 Concord Minutemen Capital Company, LLC Commercial Paper due 03/19/02; $180,275 Discover Card Master Trust Commercial Paper, 2.770% due 11/08/01; $142,790 Ness, LLC Commercial Paper due 10/29/01; $117,396 GIRO Balanced Funding Commercial Paper, 3.550% - 3.700% due 10/15/01 - 10/22/01; $84,633 Fortis Funding LLC Commercial Paper, 3.539% - 3.570% due 10/22/01 - 12/27/01; $87,729 Delaware Funding Corporation Commercial Paper, 2.600% - 2.800% due 10/29/01 - 11/30/01; $18,429 Conduit Asset Backed Securities, LLC Commercial Paper, 2.650% due 12/17/01; $18,061 Moriarty Ltd. Commercial Paper due 03/04/02; $28,239 Formosa Plastic Corporation USA Commercial Paper, 2.550% - 2.600% due 10/19/01 - 10/25/01; $1,603 Vistaone Metafolio, LLC Commercial Paper due 10/03/01... $ 850,000 170,000 Agreement with Lehman Brothers Inc., 3.430% dated 09/28/01 to be repurchased at $170,486 on 10/01/01 collateralized by: $100,000 Concord Minutemen Capital Company, LLC Commercial Paper due 03/19/02; $25,912 FPL Group Capital Inc. Commercial Paper due 10/05/01 - 11/05/01; $16,112 Waterfront Funding Corporation Commercial Paper due 03/27/02; $12,624 Sony Capital Corporation Commercial Paper due 01/25/02; $8,000 Hannover Funding Company, LLC Commercial Paper, 3.500% due 10/17/01; $8,000 Falcon Asset Securitization Corporation Commercial Paper due 11/05/01; $2,753 Regency Markets No. 1 LLC Commercial Paper due 10/05/01... 170,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $ 200,000 Agreement with UBS Warburg, 2.880% dated 09/28/01 to be repurchased at $200,048 on 10/01/01 collateralized by: $124,617 FHLB, 6.080% due 12/14/01; $15,607 FHLMC due 12/21/01; $63,776 FNMA due 07/12/02....... $ 200,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $3,705,000)............... 3,705,000 -----------
TOTAL INVESTMENTS (Cost $62,481,236*)...... 100.1% $62,481,236 ----------- OTHER ASSETS AND LIABILITIES (NET)........ (0.1)% Cash.............................. $ 149,106 Receivable for investment securities sold................. 5,532,551 Receivable for Fund shares sold... 3,486,536 Interest receivable............... 287,253 Payable for Fund shares redeemed........................ (3,933,811) Investment advisory fee payable... (7,440) Administration fee payable........ (2,332) Shareholder servicing and distribution fees payable....... (14,082) Distributions payable............. (152,272) Payable for investment securities purchased....................... (5,419,627) Accrued Trustees' fees and expenses........................ (148) Accrued expenses and other liabilities..................... (4,810) ----------- TOTAL OTHER ASSETS AND LIABILITIES (NET)........................... (79,076) ----------- NET ASSETS................. 100.0%.. $62,402,160 =========== NET ASSETS CONSIST OF: Distributions in excess of net investment income............... $ (21) Accumulated net realized gain on investments sold................ 1,749 Paid-in capital................... 62,400,432 ----------- NET ASSETS........................ $62,402,160 ===========
SEE NOTES TO FINANCIAL STATEMENTS. 8 NATIONS RESERVES MONEY MARKET FUNDS Nations Cash Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
VALUE ------------------------------------------------------------ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($25,383,856,290 / 25,383,214,416 shares outstanding)............. $1.00 ----- ----- TRUST CLASS SHARES: ($2,223,157,486 / 2,222,998,671 shares outstanding)............. $1.00 ----- ----- LIQUIDITY CLASS SHARES: ($1,596,352,241 / 1,596,223,793 shares outstanding)............. $1.00 ----- ----- ADVISER CLASS SHARES: ($6,944,806,059 / 6,945,036,469 shares outstanding)............. $1.00 ----- ----- INVESTOR CLASS SHARES: ($6,026,530,523 / 6,026,903,706 shares outstanding)............. $1.00 ----- ----- MARKET CLASS SHARES: ($3,563,090,771 / 3,562,832,165 shares outstanding)............. $1.00 ----- ----- DAILY CLASS SHARES: ($13,910,545,159 / 13,910,029,004 shares outstanding)............. $1.00 ----- ----- SERVICE CLASS SHARES: ($1,018,027,057 / 1,017,989,628 shares outstanding)............. $1.00 ----- ----- INVESTOR B SHARES: Net asset value and offering price per share (a) ($43,044,124 / 43,041,668 shares outstanding).................... $1.00 ----- ----- INVESTOR C SHARES: Net asset value and offering price per share (a) ($2,072,943 / 2,072,814 shares outstanding).................... $1.00 ----- ----- INSTITUTIONAL SHARES: ($1,690,677,114 / 1,690,588,869 shares outstanding)............. $1.00 ----- -----
--------------- * Aggregate cost for federal tax purposes. + Floating rate security. The interest rate shown reflects the rate in effect at September 30, 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%. (a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. SEE NOTES TO FINANCIAL STATEMENTS. 9 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ ASSET-BACKED SECURITIES -- 7.1% ASSET-BACKED -- AUTO LOANS -- 3.8% $ 17,738 BMW Vehicle Owner Trust, Series 2001-A, Class A1, 3.989%(+) 10/25/01(++)........... $ 17,738 46,969 Chase Manhattan Auto Owner Trust, Series 2001-A, Class A1, 3.660% 08/15/02.................. 46,969 23,524 Daimler Chrysler Auto Trust, Series 2001-B, Class A1, 3.980%(+) 10/06/01(++)........... 23,524 50,000 Ford Credit Auto Owner Trust, Series 2001-C, Class A1, 3.500%(+) 10/18/01(++)........... 50,000 101,573 Ford Credit Auto Owner Trust, Series 2001-D, Class A1, 3.461%(+) 10/17/01(++)........... 101,573 21,276 Honda Auto Receivables Owner Trust, Series 2001-2, Class A1, 3.730%(+) 10/20/01(++)........... 21,276 30,134 Isuzu Auto Owner Trust, Series 2001-1, Class A1, 4.270% 05/20/02.................. 30,134 24,254 MMCA Automobile Owner Trust, Series 2001-1, Class A1, 4.636%(+) 10/15/01(++)........... 24,254 44,445 Nissan Auto Receivables Owner Trust, Series 2001-C, Class A1, 3.445%(+) 10/17/01(++)........... 44,445 15,408 Onyx Acceptable Auto Trust, Series 2001-B, Class A1, 4.029%(+) 10/15/01(++)........... 15,408 2,237 Onyx Acceptance Auto Trust, Series 2001-A, Class A1, 5.314%(+) 10/15/01(++)........... 2,237 20,020 Wells Fargo Auto Trust, Series 2001-A, Class A1, 4.030%(+) 10/15/01(++)........... 20,020 14,555 WFS Financial Owner Trust, Series 2001-B, Class A1, 4.025%(+) 12/20/01(++)........... 14,555 1,070 World Omni Auto Receivables Trust, Series 2001-A, Class A1, 5.330%(+) 10/20/01(++)........... 1,070 ----------- 413,203 ----------- ASSET-BACKED -- CREDIT CARD RECEIVABLES -- 3.2% 100,000 Citibank Credit Card Issue Trust, Series 2001, Class A3, 3.008% 10/18/01#................. 99,858 100,000 Citibank Credit Card Master Trust I, 2.525% 10/24/01.................. 99,839 151,420 Discover Card Master Trust I, Series 2000-A, 2.506% 10/24/01#................. 151,178 ----------- 350,875 -----------
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ ASSET-BACKED -- OTHER -- 0.1% $ 13,646 CIT Equipment Collateral, Series 2001-A, Class A1, 3.480%(+) 10/20/01(++)........... $ 13,645 2,337 Ikon Receivables LLC, Series 2000-2, Class A1, 6.661%(+) 10/15/01(++)........... 2,337 ----------- 15,982 ----------- TOTAL ASSET-BACKED SECURITIES (Cost $780,060).................... 780,060 ----------- BANK OBLIGATIONS -- 23.9% BANK NOTES -- 1.6% 50,000 Branch Banking & Trust 3.510%(+) 11/19/01(++)........... 50,000 First Union National Bank 50,000 2.694%(+) 10/23/01(++)............. 50,008 50,000 3.520%(+) 12/10/01................. 50,000 30,000 Key Bank, N.A. 4.050%(+) 10/26/01............... 30,007 ----------- 180,015 ----------- CERTIFICATES OF DEPOSIT -- EURO -- 2.5% 50,000 Barclays Bank plc 2.595% 10/25/01.................. 50,001 50,000 Deutsche Bank AG 2.590% 10/25/01.................. 50,001 75,000 Halifax plc 3.450% 02/21/02(--).............. 75,002 100,000 Societe Generale 3.410% 10/17/01.................. 100,037 ----------- 275,041 ----------- CERTIFICATES OF DEPOSIT -- YANKEE -- 18.0% 50,000 ABN AMRO Bank (New York) 5.040% 02/04/02.................. 49,998 300,000 Banque Paribas (New York) 2.830% 11/20/01.................. 300,008 Bayerische Landesbank, (New York) 25,000 3.030%(+) 10/01/01(++)............. 24,998 50,000 4.230% 05/22/02.................... 49,997 100,000 3.310% 09/12/02.................... 100,000 Commerzbank AG (New York) 50,000 4.140% 05/21/02.................... 50,000 150,000 2.531%(+) 10/28/01(++)............. 149,970 Credit Agricole, (New York) 200,000 2.980% 11/05/01.................... 200,000 50,000 2.640% 12/21/01.................... 50,004 25,000 5.080% 02/06/02.................... 24,999 100,000 3.640% 10/07/02.................... 99,990 100,000 Credit Suisse First Boston, (New York) 2.510% 10/24/01.................. 100,001 150,000 Deutsche Bank AG, (New York) 2.500% 10/04/01.................. 150,000 75,000 Dresdner Bank AG, (New York) 5.220% 02/19/02.................. 75,000 Rabobank Nederland NV, (New York) 50,000 6.610% 11/02/01.................... 49,999 50,000 5.000% 02/05/02.................... 49,998 200,000 Toronto Dominion Bank, (New York) 2.510% 10/24/01.................. 200,001
SEE NOTES TO FINANCIAL STATEMENTS. 10 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CERTIFICATES OF DEPOSIT -- YANKEE -- (CONTINUED) United Bank of Switzerland AG, (Stamford Connecticut) $ 30,000 4.530% 10/15/01.................... $ 30,018 125,000 4.135% 05/31/02.................... 124,988 50,000 3.780% 06/28/02.................... 50,078 18,580 4.010% 06/28/02.................... 18,640 25,000 Westdeutsche Landesbank, (New York) 3.600% 08/14/02.................. 25,000 ----------- 1,973,687 ----------- TIME DEPOSITS -- EURO -- 1.8% 50,000 National City Bank of Kentucky 3.465% 02/15/02(--).............. 50,010 147,309 SunTrust Bank 2.000% 10/01/01.................. 147,309 ----------- 197,319 ----------- TOTAL BANK OBLIGATIONS (Cost $2,626,062).................. 2,626,062 ----------- CORPORATE OBLIGATIONS -- 50.1% COMMERCIAL PAPER -- 32.3% Amstel Funding Corporation 100,000 Discount note 10/12/01#............ 99,886 50,000 Discount note 10/18/01#............ 49,917 43,818 Discount note 11/14/01#............ 43,631 100,000 Aspen Funding Corporation Discount note 10/05/01#.......... 99,961 50,000 Bank of Scotland Treasury Services plc Discount note 02/22/02........... 49,330 100,000 Corporate Receivables Corporation Discount note 10/15/01#.......... 99,864 72,647 Delaware Funding Corporation Discount note 10/09/01#.......... 72,591 Edison Asset Securitization LLC 48,990 Discount note 10/09/01#............ 48,952 200,000 Discount note 10/09/01#............ 199,892 50,000 Falcon Asset Securitization Corporation Discount note 10/18/01#.......... 49,917 50,000 Four Winds Funding LLC 3.498%(+) 10/15/01(++)#.......... 50,000 100,000 Galaxy Funding Inc. Discount note 10/22/01#.......... 99,851 General Electric Capital Corporation 150,000 Discount note 11/27/01............. 149,198 50,000 Discount note 12/17/01............. 49,692 50,000 Discount note 12/19/01............. 49,625 General Electric Capital International Funding 50,000 Discount note 10/15/01#............ 49,932 100,000 Discount note 12/27/01#............ 99,396 50,000 General Electric Capital Services Discount note 11/28/01........... 49,725 261,987 GIRO Balanced Funding Corporation Discount note 10/22/01#.......... 261,552 Greyhawk Funding LLC 50,000 Discount note 11/14/01#............ 49,791 100,000 Discount note 11/20/01#............ 99,526 60,640 Jupiter Securitization Corporation Discount note 10/12/01#.......... 60,575
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ COMMERCIAL PAPER -- (CONTINUED) $ 49,000 K2 (USA) LLC Discount note 02/19/02#.......... $ 48,253 100,000 MOAT Funding LLC Discount note 10/15/01#.......... 99,866 Moriarty LLC 50,000 Discount note 10/10/01#............ 49,969 84,399 Discount note 11/21/01#............ 83,984 75,000 Discount note 11/30/01#............ 74,525 50,000 Discount note 02/25/02#............ 49,316 Ness LLC 64,200 .000% 10/10/01#.................... 64,144 50,000 .000% 10/22/01#.................... 49,895 80,415 .000% 11/15/01#.................... 80,066 100,000 Newport Funding Corporation Discount note 10/05/01#.......... 99,961 100,000 North Coast Funding LLC Discount note 10/03/01#.......... 99,980 100,000 Park Avenue Receivables Discount note 10/12/01#.......... 99,894 Pennine Funding LLC 38,340 Discount note 11/14/01#............ 38,180 64,000 Discount note 11/27/01#............ 63,655 100,000 Siefunds Corporation Discount note 10/12/01#.......... 99,921 125,000 Sigma Finance, Inc. Discount note 02/04/02#.......... 123,298 45,000 Surrey Funding Corporation Discount note 10/09/01#.......... 44,965 Trident Capital Finance 100,000 Discount note 10/02/01#............ 99,991 100,000 Discount note 10/18/01#............ 99,864 49,064 Tulip Funding Corporation Discount note 11/28/01#.......... 48,795 Variable Funding Capital Corporation 50,000 3.560%(+) 10/09/01(++)#............ 50,000 100,000 Discount note 10/23/01#............ 99,786 ----------- 3,551,112 ----------- CORPORATE BONDS AND NOTES -- 17.8% 50,000 American Honda Finance Corporation 3.760%(+) 10/15/01(++)##......... 50,000 10,000 Bank One Corporation 3.810%(+) 10/26/01(++)........... 10,010 50,000 CC (USA) Inc. 3.600% 08/23/02#................. 50,000 50,000 CIT Group Inc. 4.000%(+) 10/09/01(++)........... 50,074 Credit Suisse First Boston, Inc. 100,000 3.624%(+) 11/09/01(++)##........... 100,000 29,000 3.473%(+) 11/27/01(++)............. 29,000 50,000 Dresdner Bank AG 3.540%(+) 12/03/01............... 50,007 50,000 Ford Motor Credit Company 3.220%(+) 12/15/01(++)........... 50,000 General Motors Acceptance Corporation 50,000 3.731%(+) 10/12/01(++)............. 50,000 52,826 3.830%(+) 10/29/01(++)............. 52,783 20,000 3.689%(+) 11/14/01(++)............. 20,005 50,000 3.150%(+) 12/19/01................. 50,000
SEE NOTES TO FINANCIAL STATEMENTS. 11 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CORPORATE BONDS AND NOTES -- (CONTINUED) Goldman Sachs Group, Inc. $ 25,000 3.715%(+) 11/13/01(++)............. $ 25,021 75,000 4.130% 02/04/02(--)................ 75,000 50,000 3.610% 05/29/02(--)................ 50,000 200,000 Household Finance Corporation 3.180%(+) 10/01/01(++)........... 200,000 K2 (USA) LLC 50,000 3.557%(+) 10/10/01(++)#............ 50,000 50,000 3.780% 08/15/02#................... 50,012 Links Finance LLC 50,000 3.581%(+) 10/04/01(++)#............ 49,997 50,000 3.488%(+) 10/15/01(++)#............ 50,000 Merrill Lynch and Company 50,000 3.561%(+) 10/04/01(++)............. 50,000 50,000 3.364%(+) 10/19/01(++)............. 50,000 12,500 4.113%(+) 11/26/01................. 12,512 75,000 Minnesota Mining and Manufacturing Company 6.325% 12/12/01##................ 75,000 100,000 Morgan Stanley Dean Witter and Company 3.548%(+) 10/15/01(++)........... 100,000 National Rural Utilities Cooperative Finance Corporation 50,000 3.538%(+) 10/17/01(++)............. 50,004 50,000 5.100% 02/05/02.................... 50,000 150,000 SBC Communications Inc. 3.491%(+) 10/14/01(++)##......... 149,997 50,000 Sigma Finance, Inc. 3.155%(+) 10/01/01(++)##......... 50,000 135,000 SMM Trust Series 2000-M 3.360%(+) 12/13/01##............. 135,000 50,000 Toyota Motor Credit Corporation 3.075%(+) 12/27/01(++)........... 50,000 74,400 Unilever plc 2.996%(+) 12/20/01(++)........... 74,420 ----------- 1,958,842 ----------- TOTAL CORPORATE OBLIGATIONS (Cost $5,509,954).................. 5,509,954 ----------- FOREIGN BONDS AND NOTES -- 1.7% (Cost $186,415) 186,670 International Bank for Reconstruction and Development, Discount note 10/19/01............. 186,415 ----------- MUNICIPAL BONDS AND NOTES -- 1.3% (Cost $145,000) MISSISSIPPI -- 1.3% 145,000 Mississippi State GO, Series 2001A, 5.200% 03/16/02##................ 145,000 -----------
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- 2.5% $100,000 Agreement with ABN AMRO Inc., 2.800% dated 09/28/01 to be repurchased at $100,023 on 10/01/01 collateralized by: $38,118 U.S. Treasury Notes, 5.625% - 6.500% due 08/15/05 - 02/15/06; $63,884 FHLB, 5.000% - 6.960% due 01/13/03 - 03/28/07.............. $ 100,000 150,000 Agreement with Chase Securities Inc., 3.470% dated 09/28/01 to be repurchased at $150,043 on 10/01/01 collateralized by: $59,928 GIRO Multi Funding Corporation Commercial Paper, 3.790% due 10/30/01; $50,017 GIRO Funding U.S. Corporation Commercial Paper, 2.800% due 10/29/01; $43,058 GIRO Balanced Funding Corporation Commercial Paper, 2.550% - 3.550% due 10/22/01 - 03/21/02.............. 150,000 22,429 Agreement with Lehman Brothers Inc., 3.200% dated 09/28/01 to be repurchased at $22,435 on 10/01/01 collateralized by: $15,093 U.S. Treasury Strips, Interest Only, due 02/15/02 - 11/15/28; $7,786 U.S. Treasury Strips, Principal Only, 4.250% - 12.000% due 05/15/02 - 11/15/28......................... 22,429 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $272,429).................. 272,429 ----------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 13.4% FEDERAL HOME LOAN BANK (FHLB) -- 10.3% 100,000 2.970%(+) 10/01/01(++)............. 99,927 35,020 Discount note 10/05/01............. 35,009 100,000 3.365%(+) 10/13/01(++)............. 99,914 50,000 Discount note 10/17/01............. 49,944 500,000 2.933%(+) 10/20/01(++)............. 499,832 250,000 2.645%(+) 10/21/01(++)............. 249,817 100,000 2.474%(+) 10/24/01(++)............. 99,926 ----------- 1,134,369 ----------- FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) CERTIFICATES -- 0.0%+ 224 Discount note 10/12/01............. 224 250 Discount note 10/16/01............. 250 ----------- 474 ----------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) CERTIFICATES -- 2.2% 91,350 Discount note 10/18/01............. 91,231 100,800 Discount note 11/01/01............. 100,562 50,000 Discount note 11/06/01............. 49,837 ----------- 241,630 -----------
SEE NOTES TO FINANCIAL STATEMENTS. 12 NATIONS RESERVES MONEY MARKET FUNDS Nations Money Market Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 0.9% $100,000 2.980%(+) 10/01/01(++)............. $ 99,954 ----------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (Cost $1,476,427)................ 1,476,427 -----------
TOTAL INVESTMENTS (Cost $10,996,347*)...... 100.0% 10,996,347 ----------- OTHER ASSETS AND LIABILITIES (NET)........ 0.0% Cash............................... $ 1,449 Receivable for investment securities sold.................. 1,220,573 Receivable for Fund shares sold.... 185,095 Interest receivable................ 35,157 Payable for Fund shares redeemed... (986,237) Investment advisory fee payable.... (1,436) Administration fee payable......... (187) Shareholder servicing and distribution fees payable........ (1,055) Distributions payable.............. (29,842) Payable for investment securities purchased........................ (419,738) Accrued Trustees' fees and expenses......................... (50) Accrued expenses and other liabilities...................... (1,001) ----------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................ 2,728 ----------- NET ASSETS................. 100.0% $10,999,075 =========== NET ASSETS CONSIST OF: Undistributed net investment income........................... $ 20 Accumulated net realized gain on investments sold................. 2,901 Paid-in capital.................... 10,996,154 ----------- NET ASSETS......................... $10,999,075 =========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($7,377,448,056 / 7,375,528,771 shares outstanding).............. $1.00 =========== TRUST CLASS SHARES: ($129,037,942 / 128,968,900 shares outstanding)..................... $1.00 =========== LIQUIDITY CLASS SHARES: ($512,081,974 / 511,921,025 shares outstanding)..................... $1.00 =========== ADVISER CLASS SHARES: ($780,138,254 / 779,936,191 shares outstanding)..................... $1.00 ===========
VALUE ------------------------------------------------------------ INVESTOR CLASS SHARES: ($96,590,103 / 96,564,010 shares outstanding)..................... $1.00 =========== MARKET CLASS SHARES: ($1,387,864,162 / 1,387,500,010 shares outstanding).............. $1.00 =========== DAILY CLASS SHARES: ($10,062,820 / 10,060,395 shares outstanding)..................... $1.00 =========== SERVICE CLASS SHARES: ($183,795,353 / 183,738,079 shares outstanding)..................... $1.00 =========== INVESTOR B SHARES: Net asset value and offering price per share(a) ($10,585,215 / 10,583,041 shares outstanding)..................... $1.00 =========== INVESTOR C SHARES: Net asset value and offering price per share(a) ($240,868 / 240,816 shares outstanding).............. $1.00 =========== INSTITUTIONAL SHARES: ($511,230,332 / 511,112,395 shares outstanding)..................... $1.00 ===========
--------------- * Aggregate cost for federal tax purposes. (+) Floating rate security. The interest rate shown reflects the rate in effect at September 30, 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%. (a) The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. SEE NOTES TO FINANCIAL STATEMENTS. 13 NATIONS RESERVES MONEY MARKET FUNDS Nations Treasury Reserves STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ U.S. TREASURY OBLIGATIONS -- 48.3% U.S. TREASURY BILLS -- 30.1% $ 805,807 Discount note 10/18/01............ $ 804,800 135,000 Discount note 10/25/01............ 134,686 280,000 Discount note 11/08/01............ 278,988 294,000 Discount note 11/29/01............ 292,874 760,000 Discount note 12/20/01............ 755,842 240,000 Discount note 02/14/02............ 237,067 160,000 Discount note 02/21/02............ 157,909 ----------- 2,662,166 ----------- U.S. TREASURY NOTES -- 18.2% 100,000 6.250% 10/31/01................... 100,153 54,800 7.500% 11/15/01................... 55,006 160,000 6.375% 01/31/02................... 161,551 160,000 6.625% 03/31/02................... 162,318 160,000 6.375% 04/30/02................... 162,449 240,000 6.625% 04/30/02................... 244,190 120,000 7.500% 05/15/02................... 122,784 260,000 6.500% 05/31/02................... 264,570 240,000 6.625% 05/31/02................... 244,102 86,000 6.250% 07/31/02................... 87,958 ----------- 1,605,081 ----------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $4,267,247)............... 4,267,247 ----------- REPURCHASE AGREEMENTS -- 51.5% 200,000 Agreement with ABN AMRO Inc., 3.150% dated 09/2/01 to be repurchased at $200,053 on 10/01/01 collateralized by: $127,914 U.S. Treasury Notes, 3.625% - 7.250% due 09/30/01 - 08/15/11; $5,591 U.S. Treasury Bonds, 5.250% - 8.875% due 11/15/16 - 02/15/31; $66,496 U.S. Treasury Bills due 02/21/02 - 03/28/02............. 200,000 220,000 Agreement with Barclays Capital Inc., 3.250% dated 09/28/01 to be repurchased at $220,060 on 10/01/01 collateralized by: $220,001 U.S. Treasury Inflation Linked Note, 3.625% due 04/15/28........................ 220,000 330,000 Agreement with Bear, Stearns and Company, Inc., 3.375% dated 09/28/01 to be repurchased at $330,928 on 10/01/01 collateralized by: $306,870 GNMA, 5.500% - 12.500% due 3/15/02 - 09/15/31; $29,733 GNMA II, 5.000% - 13.000% due 11/20/13 - 09/20/31............. 330,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- (CONTINUED) $ 200,000 Agreement with Deutsche Bank Securities Inc., 3.200% dated 09/28/01 to be repurchased at $200,053 on 10/01/01 collateralized by: $28,504 U.S. Treasury Strips, Interest Only, due 11/15/16; $66,682 U.S. Treasury Strips, Principal Only, due 05/15/02 - 08/15/19; $38,865 U.S. Treasury Notes, 3.8750% due 07/31/03; $65,949 U.S. Treasury Bonds, 8.120% due 05/15/21...... $ 200,000 7,612 Agreement with Dresdner Kleinwort Benson North America LLC, 2.800% dated 09/28/01 to be repurchased at $7,614 on 10/01/01 collateralized by: $7,768 U.S. Treasury Notes, 5.750% - 6.500% due 11/15/04 - 11/15/05......... 7,612 285,000 Agreement with First Union Securities, Inc., 3.350% dated 09/28/01 to be repurchased at $285,080 on 10/01/01 collateralized by: $264,327 GNMA, 6.000% - 9.500% due 09/15/13 - 09/15/31; $20,673 GNMA II, 6.000% - 7.750% due 07/20/24 - 09/20/37............. 285,000 5,631 Agreement with Goldman Sachs and Company, 3.000% dated 09/28/01 to be repurchased at $5,632 on 10/01/01 collateralized by: $5,631 U.S. Treasury Strips, Interest Only, due 02/15/12..... 5,631 220,000 Agreement with Greenwich Capital Markets Inc., 3.250% dated 09/28/01 to be repurchased at $220,060 on 10/01/01 collateralized by: $224,401 U.S. Treasury Notes, 4.750% - 5.625% due 11/30/02 - 11/15/08......... 220,000 400,000 Agreement with J.P. Morgan Securities Inc., 3.350% dated 09/28/01 to be repurchased at $400,112 on 10/01/01 collateralized by: $408,002 GNMA, 5.500% - 9.000% due 03/15/14 - 09/15/31............. 400,000 97,571 Agreement with Lehman Brothers Inc., 3.200% dated 09/28/01 to be repurchased at $97,597 on 10/01/01 collateralized by: $99,498 U.S. Treasury Notes, 5.500% - 6.250% due 01/31/02 - 05/15/08............. 97,571 120,000 Agreement with Morgan Stanley Dean Witter and Company, 3.150% dated 09/28/01 to be repurchased at $120,032 on 10/01/01 collateralized by: $120,900 U.S. Treasury Strips, Interest Only, due 05/15/13.................... 120,000
SEE NOTES TO FINANCIAL STATEMENTS. 14 NATIONS RESERVES MONEY MARKET FUNDS Nations Treasury Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- REPURCHASE AGREEMENTS -- (CONTINUED) $ 700,000 Agreement with Salomon Smith Barney Inc., 3.250% dated 09/28/01 to be repurchased at $700,190 on 10/01/01 collateralized by: $695,855 U.S. Treasury Bonds, 8.750% - 10.750% due 05/15/03 - 08/15/20; $4,376 U.S. Treasury Notes, 5.375% due 06/30/03........................ $ 700,000 1,150,000 Agreement with Salomon Smith Barney Inc., 3.375% dated 09/28/01 to be repurchased at $1,150,323 on 10/01/01 collateralized by: $1,150,000 GNMA II, 6.500% - 8.000% due 08/20/30 - 07/20/31............. 1,150,000 215,807 Agreement with UBS Warburg, 3.250% dated 09/28/01 to be repurchased at $215,865 on 10/01/01 collateralized by: $220,126 U.S. Treasury Bills, due 11/23/01 - 12/13/01............. 215,807 400,000 Agreement with Westdeutsche Landesbank, Girozentrale, 3.350% dated 09/28/01 to be repurchased at $400,112 on 10/01/01 collateralized by: $400,000 GNMA II, 6.500% due 07/20/31......... 400,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $4,551,621)............... 4,551,621 -----------
TOTAL INVESTMENTS (Cost $8,818,868*)............. 99.8% 8,818,868 ----------- OTHER ASSETS AND LIABILITIES (NET)........ 0.2% Cash............................... $ 361 Receivable for investment securities sold.................. 4,559,030 Receivable for Fund shares sold.... 328,677 Interest receivable................ 39,128 Payable for Fund shares redeemed... (336,440) Investment advisory fee payable.... (1,078) Administration fee payable......... (203) Shareholder servicing and distribution fees payable........ (2,237) Distributions payable.............. (19,774) Payable for investment securities purchased........................ (4,551,621) Accrued Trustees' fees and expenses......................... (92) Accrued expenses and other liabilities...................... (365) TOTAL OTHER ASSETS AND LIABILITIES (NET)................ 15,386 ----------- NET ASSETS................. 100.0% $ 8,834,254 ===========
VALUE (000) ------------------------------------------------------------- NET ASSETS CONSIST OF: Distributions in excess of net investment income................ $ (6) Accumulated net realized gain on investments sold................. 377 Paid-in capital.................... 8,833,883 ----------- NET ASSETS......................... $ 8,834,254 =========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($1,431,917,570 / 1,432,066,769 shares outstanding).............. $1.00 =========== TRUST CLASS SHARES: ($1,337,456,073 / 1,337,388,851 shares outstanding).............. $1.00 =========== LIQUIDITY CLASS SHARES: ($372,083,894 / 372,079,864 shares outstanding)..................... $1.00 =========== ADVISER CLASS SHARES: ($2,069,812,889 / 2,070,208,387 shares outstanding).............. $1.00 =========== INVESTOR CLASS SHARES: ($759,840,559 / 760,001,999 shares outstanding)..................... $1.00 =========== MARKET CLASS SHARES: ($1,313,011,362 / 1,313,000,010 shares outstanding).............. $1.00 =========== DAILY CLASS SHARES: ($1,143,232,026 / 1,143,271,778 shares outstanding).............. $1.00 =========== SERVICE CLASS SHARES: ($361,099,288 / 361,101,691 shares outstanding)..................... $1.00 =========== INVESTOR B SHARES: Net asset value and offering price per share(a) ($101,679 / 101,671 shares outstanding).............. $1.00 =========== INSTITUTIONAL SHARES: ($45,698,517 / 45,694,569 shares outstanding)..................... $1.00 ===========
--------------- * Aggregate cost for federal tax purposes. (a) The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. SEE NOTES TO FINANCIAL STATEMENTS. 15 NATIONS RESERVES MONEY MARKET FUNDS Nations Government Reserves STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ----------------------------------------------------------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 100.0% FEDERAL FARM CREDIT BANK (FFCB) -- 3.3% $ 25,000 3.000%(+) 10/01/01(++)............. $ 25,000 45,000 3.424%(+) 10/01/01(++)............. 45,000 19,000 Discount note 10/04/01............. 18,995 12,178 Discount note 10/22/01............. 12,154 8,597 Discount note 12/17/01............. 8,551 3,000 6.625% 02/01/02.................... 3,039 10,000 6.875% 05/01/02.................... 10,173 20,000 Discount note 06/13/02............. 19,537 22,000 3.900% 06/17/02.................... 22,023 15,000 Discount note 06/19/02............. 14,712 ---------- 179,184 ---------- FEDERAL HOME LOAN BANK (FHLB) -- 91.9% 382,358 Discount note 10/01/01............. 382,358 100,000 2.970%(+) 10/01/01(++)............. 99,927 270,000 2.980%(+) 10/01/01(++)............. 269,815 170,000 2.993%(+) 10/01/01(++)............. 169,913 100,000 3.040%(+) 10/01/01(++)............. 99,992 230,000 3.414%(+) 10/01/01(++)............. 229,985 167,476 Discount note 10/05/01............. 167,419 41,547 Discount note 10/10/01............. 41,510 76,602 Discount note 10/12/01............. 76,507 50,000 3.570%(+) 10/12/01(++)............. 49,999 125,000 3.365%(+) 10/13/01(++)............. 124,950 90,000 3.318%(+) 10/15/01(++)............. 89,990 90,000 3.333%(+) 10/15/01(++)............. 89,995 90,000 3.338%(+) 10/15/01(++)............. 89,992 806,128 Discount note 10/17/01............. 805,208 45,000 3.348%(+) 10/17/01(++)............. 45,000 90,000 2.943%(+) 10/20/01(++)............. 89,988 90,000 2.466%(+) 10/23/01(++)............. 89,963 100,000 Discount note 10/26/01............. 99,819 113,000 3.525%(+) 10/30/01(++)............. 112,963 36,797 Discount note 10/31/01............. 36,679 90,000 Discount note 11/02/01............. 89,730 37,000 Discount note 11/06/01............. 36,873 143,460 Discount note 11/16/01............. 142,846 90,000 3.410%(+) 11/16/01(++)............. 89,952 31,743 Discount note 11/23/01............. 31,586 31,080 Discount note 11/28/01............. 30,892 90,000 Discount note 11/30/01............. 89,499 95,000 3.375%(+) 12/04/01(++)............. 94,947 45,000 3.306%(+) 12/11/01................. 44,982 3,000 Discount note 12/13/01............. 2,982 149,797 Discount note 12/19/01............. 148,980 226,422 Discount note 12/21/01............. 225,221 50,000 Discount note 01/09/02............. 49,532 16,565 Discount note 01/10/02............. 16,452 8,580 5.120% 01/16/02.................... 8,607 77,000 4.875% 01/22/02.................... 77,195 19,705 Discount note 01/23/02............. 19,498 215,310 6.750% 02/01/02.................... 216,992 3,150 Discount note 02/15/02............. 3,110 45,000 5.125% 02/26/02.................... 45,242 13,065 6.000% 03/27/02.................... 13,211
PRINCIPAL AMOUNT VALUE (000) (000) ----------------------------------------------------------- FEDERAL HOME LOAN BANK (FHLB) -- (CONTINUED) $ 37,295 5.250% 04/25/02.................... $ 37,552 71,120 6.750% 05/01/02.................... 72,380 45,000 4.000% 05/14/02.................... 44,987 45,000 4.000% 06/05/02.................... 44,982 15,000 6.000% 08/15/02.................... 15,255 7,200 6.750% 08/15/02.................... 7,411 6,400 Discount note 08/30/02............. 6,200 ---------- 4,969,068 ---------- STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 4.5% 221,000 Discount note 01/25/02............. 219,304 25,000 Discount note 05/20/02............. 24,365 ---------- 243,669 ---------- TENNESSEE VALLEY AUTHORITY -- 0.3% 17,000 Discount note 10/12/01............. 16,985 ---------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (Cost $5,408,906).... 5,408,906 ----------
TOTAL INVESTMENTS (Cost $5,408,906*)............ 100.0% 5,408,906 ---------- OTHER ASSETS AND LIABILITIES (NET)....... 0.0% Cash.............................. $ 134 Receivable for investment securities sold............................ 325,835 Receivable for Fund shares sold... 321,014 Interest receivable............... 13,764 Payable for Fund shares redeemed........................ (62,424) Investment advisory fee payable... (544) Administration fee payable........ (118) Shareholder servicing and distribution fees payable....... (863) Distributions payable............. (11,052) Payable for investment securities purchased....................... (584,424) Accrued Trustees' fees and expenses........................ (50) Accrued expenses and other liabilities..................... (485) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)........................... 787 ---------- NET ASSETS................ 100.0% $5,409,693 ========== NET ASSETS CONSIST OF: Distributions in excess of net investment income............... $ (4) Accumulated net realized loss on investments sold................ (350) Paid-in capital................... 5,410,047 ---------- NET ASSETS........................ $5,409,693 ==========
SEE NOTES TO FINANCIAL STATEMENTS. 16 NATIONS RESERVES MONEY MARKET FUNDS Nations Government Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
VALUE ---------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($1,931,113,018 / 1,931,177,951 shares outstanding)............. $1.00 ========== TRUST CLASS SHARES: ($284,244,088 / 284,221,264 shares outstanding).................... $1.00 ========== LIQUIDITY CLASS SHARES: ($129,854,502 / 129,820,612 shares outstanding).................... $1.00 ========== ADVISER CLASS SHARES: ($1,013,270,423 / 1,013,516,445 shares outstanding)............. $1.00 ========== INVESTOR CLASS SHARES: ($960,170,152 / 960,457,888 shares outstanding).................... $1.00 ========== MARKET CLASS SHARES: ($506,538,888 / 506,500,010 shares outstanding).................... $1.00 ========== DAILY CLASS SHARES: ($272,032,375 / 272,001,379 shares outstanding).................... $1.00 ========== SERVICE CLASS SHARES: ($35,002,195 / 35,000,010 shares outstanding).................... $1.00 ========== INVESTOR B SHARES: Net asset value and offering price per share (a) ($1,788,780 / 1,788,707 shares outstanding).................... $1.00 ========== INVESTOR C SHARES: Net asset value and offering price per share (a) ($12,129 / 12,125 shares outstanding)............. $1.00 ========== INSTITUTIONAL SHARES: ($275,666,418 / 275,659,647 shares outstanding).................... $1.00 ==========
--------------- * Aggregate cost for federal tax purposes. (+) Floating rate security. The interest rate shown reflects the rate in effect at September 30, 2001. (++) Reset date. Interest rates reset either daily, weekly, monthly, or quarterly. (a) The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. SEE NOTES TO FINANCIAL STATEMENTS. 17 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- MUNICIPAL BONDS AND NOTES -- 96.9% ALABAMA -- 2.8% $ 4,200 Birmingham, Alabama Medical Clinic Board Revenue, (Medical Advancement Foundation Project) Series 2000A, (Columbus Bank & Trust LOC, First Commercial Bank LOC), 2.900% 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), 2.380% 04/01/13**.................. 9,250 20,000 Birmingham, East Alabama Medical Center East Special Care Facilities Financing Authority Revenue, Series 2001 PT-569, (MBIA Insured, Merrill Lynch SBPA), 2.430% 07/01/15**.................. 20,000 19,200 Daphne, Alabama Special Care Facilities Financing Authority Revenue, (Mercy Medical Project) Series 1997, (AmSouth Bank of Alabama LOC), 2.280% 12/01/27**.................. 19,200 3,300 University of Alabama Revenue, (Hospital Project) Series 2000, (AMBAC Insured, Credit Suisse First Boston SBPA), 2.280% 09/01/31**.................. 3,300 ---------- 55,950 ---------- ALASKA -- 0.6% 3,000 Alaska Industrial Development and Export Authority Exempt Facilities Revenue, (AMAX Gold, Inc. Project) Series 1997, AMT, (Bank of Nova Scotia LOC), 2.320% 05/01/09**.................. 3,000 9,995 Alaska State Housing Finance Corporation Housing Revenue, Series 1998 PA-332, (MBIA Insured, Merrill Lynch Capital Services SBPA), 2.380% 12/01/19**#................. 9,995 ---------- 12,995 ---------- ARIZONA -- 2.6% 5,200 Apache County, Arizona Industrial Development Authority IDR, (Tucson Electric Project) Series 1983C, (Societe Generale LOC), 2.300% 12/15/18**.................. 5,200 17,800 Apache County, Arizona Industrial Development Authority Revenue, (Tucson Electric Power Company Project) Series 1983A, (Toronto Dominion Bank LOC), 2.250% 12/15/18**.................. 17,800 6,100 Coconino County, Arizona Pollution Control Corporation Revenue, (Arizona Public Service Company -- Navajo Project) Series 1994A, AMT, (KBC Bank LOC), 2.250% 10/01/29**.................. 6,100
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), 2.250% 12/01/11**.................. $ 1,000 20,450 Scottsdale, Arizona Industrial Development Authority Revenue, (Notre Dame Preparatory School Project) Series 2001A, (Bank One Arizona LOC), 2.300% 05/01/21**.................. 20,450 2,550 Scottsdale, Arizona Industrial Development Authority Revenue, (Notre Dame Preparatory School Project) Series 2001B, (Bank One Arizona, N.A. LOC), 2.300% 05/01/21**.................. 2,550 ---------- 53,100 ---------- ARKANSAS -- 0.3% 6,500 Crossett, Arkansas PCR Refunding, (Georgia-Pacific Corporation Project) Series 1998, (Bank of America LOC), 2.300% 08/01/04**#................. 6,500 ---------- CALIFORNIA -- 1.4% 20,000 California Higher Education Loan Authority Inc. Student Loan Revenue, Series 1987, (SLMA Guarantee), 2.620% 07/01/02.................... 20,000 5,000 California State, Revenue Anticipation Notes, Series 2001, 3.250% 06/28/02.................... 5,037 3,500 Los Angeles, California Regional Airports Improvement Corporation Terminal Facilities Revenue, (LAX Two Corporation - Los Angeles International Airport Project) Series 1989, AMT, (Societe Generale LOC), 2.850% 12/01/25**.................. 3,500 ---------- 28,537 ---------- COLORADO -- 1.5% 2,155 Arapahoe County, Colorado Multi-Family Revenue Refunding, (Stratford Station Project) Series 1994, (FNMA Collateral Agreement), 2.250% 11/01/17**.................. 2,155 900 Colorado Health Facilities Authority Revenue, (Goodwill Industries, Inc. Project) Series 1994, (Bank One of Colorado, N.A. LOC), 2.400% 12/01/04**#................. 900 5,170 Colorado Housing Finance Authority Revenue Refunding, (Coventry Village Project) Series 1996B, (FNMA Collateral Agreement), 2.200% 10/15/16**.................. 5,170
SEE NOTES TO FINANCIAL STATEMENTS. 18 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- COLORADO -- (CONTINUED) $ 2,515 Colorado Post-Secondary Educational Facilities Authority Economic Development Revenue, (U.S. Swimming, Inc. Project) Series 1996, (Wells Fargo Bank LOC), 2.400% 06/01/11**#(++)(++)......... $ 2,515 840 Larimer County, Colorado IDR Refunding, (Ultimate Support Systems Project) Series 1995A, (Bank One of Colorado, N.A. LOC), 2.400% 06/01/10**#................. 840 18,515 Moffat County, Colorado PCR, (Tri-State Colorado -- Utah Electric Cooperative Project) Series 1984, (AMBAC Insured, Societe Generale SBPA), 2.400% 07/01/10**.................. 18,515 ---------- 30,095 ---------- DELAWARE -- 3.7% 31,700 Delaware State Economic Development Authority IDR, (Clean Power Project) Series 1997D, AMT, (Motiva Enterprises LLC Guarantee), 2.450% 08/01/29**.................. 31,700 20,000 Delaware State Economic Development Authority IDR, (Star Enterprise Project) Series 1997B, AMT, (Motiva Enterprises LLC Guarantee), 2.450% 08/01/29**.................. 20,000 19,780 Delaware State Economic Development Authority Revenue, (Hospital Billing and Collection Services, Inc. Project) Series 1985B, (AMBAC Insured, Morgan Stanley SBPA), 2.250% 12/01/15**.................. 19,780 3,100 Delaware State Economic Development Authority Revenue, (Hospital Billing and Collection Services, Inc. Project) Series 1985C, (AMBAC Insured, Morgan Stanley SBPA), 2.250% 12/01/15**.................. 3,100 ---------- 74,580 ---------- DISTRICT OF COLUMBIA -- 0.4% 7,500 District of Columbia Enterprise Zone Revenue, (House on F Street Project) Series 2001, (Bank of New York LOC), 2.350% 05/01/15**.................. 7,500 ---------- FLORIDA -- 5.5% 10,200 Collier County, Florida Industrial Development Authority Health Care Facilities Revenue, (Community Health Care Project) Series 1999A, (First Union National Bank LOC), 2.350% 11/01/19**.................. 10,200 2,550 Dade County, Florida Aviation Revenue, Series 1984A, (Morgan Guaranty Trust LOC), 2.320% 10/01/09**.................. 2,550
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 7,545 Florida Housing Finance Agency Multi- Family Housing Revenue, (Lakes of Northdale Project) Series 1984D, (SouthTrust Bank of Alabama LOC), 2.450% 06/01/07**.................. $ 7,545 7,750 Florida Housing Financing Agency Revenue, (Ashley Lake II Project) Series 1989J, (FHLMC Guarantee), 2.230% 12/01/11**.................. 7,750 1,665 Fort Walton Beach, Florida IDR, (Burton Golf, Inc. Project) Series 1996, AMT, (Columbus Bank and Trust LOC), 2.750% 10/01/11**.................. 1,665 5,000 Jacksonville, Florida Hospital Revenue, (University Medical Center Project) Series 1989, (Morgan Guaranty Trust LOC), 2.350% 02/01/19**.................. 5,000 13,300 Martin County, Florida PCR Refunding, (Florida Power and Light Project), Series 2000, 2.850% 07/15/22**.................. 13,300 15,500 Miami-Dade County, Florida Individual Development Authority Revenue, (Airis Miami LLC Project) Series 1999A, AMT, (AMBAC Insured, Bayerische Landesbank SBPA), 2.350% 10/15/25**(++)(++).......... 15,500 8,860 Orange County, Florida Housing Financing Authority Multi-Family Revenue, (Falcon Trace Apartments Project) Series 1998D, AMT, (FNMA Collateral Agreement), 2.230% 10/01/32**.................. 8,860 13,130 Osceola County, Florida Housing Financing Authority Multi-Family Revenue, (Arrow Ridge Apartments Project) Series 1998A, AMT, (FNMA Collateral Agreement), 2.230% 10/01/32**.................. 13,130 3,000 Palm Beach County, Florida Economic Development Revenue, (YMCA Boynton Beach Project) Series 1999, (SunTrust Bank of South Florida LOC), 2.350% 01/01/24**#................. 3,000 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), 2.550% 09/15/02**#( 7/8)( 7/8)..... 8,160 9,000 Polk County, Florida Industrial Development Authority Revenue, (Farmland Hydro LP Project) Series 1998, AMT, (Rabobank Nederland LOC), 2.350% 02/01/29**.................. 9,000
SEE NOTES TO FINANCIAL STATEMENTS. 19 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- FLORIDA -- (CONTINUED) $ 5,000 Sunshine State Governmental Financing Commission, Florida Revenue, Se- ries 1986, (AMBAC Insured, Dexia Public Finance Bank SBPA), 2.350% 07/01/16**.................. $ 5,000 ---------- 110,660 ---------- GEORGIA -- 5.5% 1,200 Burke County, Georgia Development Au- thority PCR, (Georgia Power Company Plant - Vogtle Project) Series 1995, 2.700% 09/01/25**.................. 1,200 3,945 Clayton County, Georgia Housing Authority Multi-Family Housing Revenue Refunding, (Ten Oaks Apartments Project) Series 1990F, (FSA Insured, Societe Generale SBPA), 2.350% 01/01/21**.................. 3,945 1,800 Cobb County, Georgia Development Au- thority Revenue Refunding, (Highlands Park Associates Project) Series 1998, (SunTrust Bank LOC), 2.350% 08/01/08**#................. 1,800 1,700 Cobb County, Georgia Residential Care Facilities for the Elderly Authority Revenue Refunding, (Presbyterian Village Austell Project) Series 1998, (SunTrust Bank LOC), 2.350% 08/01/15**#................. 1,700 10,200 Columbia County, Georgia Residential Care Facilities for the Elderly Authority Revenue, (Augusta Residential Center on Aging Project) Series 1994, (SunTrust Bank LOC), 2.350% 01/01/21**#................. 10,200 10,000 Columbus, Georgia Hospital Authority Revenue, (St. Francis Hospital Inc., Project) Series 2000A, (Columbus Bank & Trust LOC), 2.430% 01/01/31**(++)(++).......... 10,000 7,500 DeKalb County, Georgia Development Authority IDR, (The Paideia School Inc. Project) Series 2000, (SunTrust Bank LOC), 2.350% 02/01/20**#................. 7,500 3,000 DeKalb County, Georgia Development Authority Revenue, (Marist School, Inc. Project) Series 1999, (SunTrust Bank LOC), 2.350% 03/01/24**#................. 3,000 2,050 DeKalb County, Georgia Housing Authority Multi-Family Housing Revenue Refunding, (Camden Brook Project) Series 1995, (FNMA Collateral Agreement), 2.250% 06/15/25**.................. 2,050
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- GEORGIA -- (CONTINUED) $ 1,400 DeKalb County, Georgia Housing Authority Multi-Family Housing Revenue, (Cedar Creek Apartments Project) Series 1995, AMT, (GE Capital Corporation Guarantee), 2.450% 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), 2.250% 12/01/07**#................. 4,800 8,505 Fulton County, Georgia Development Authority Revenue, (Georgia Tech Athletic Association, Inc. Project) Series 1995, (SunTrust Bank LOC), 2.350% 07/01/14**#................. 8,505 3,000 Fulton County, Georgia Development Authority Revenue, (Lovett School Project) Series 1997, (SunTrust Bank LOC), 2.350% 04/01/17**#................. 3,000 15,000 Gainesville, Georgia Redevelopment Authority Educational Facilities Revenue, (Riverside Military Project) Series 1999, (Wachovia Bank, N.A. LOC), 2.250% 07/01/24**#................. 15,000 3,000 Marietta, Georgia Housing Authority Multi-Family Revenue, (Winterset Apartments Project) Series 1996P, (FNMA Collateral Agreement), 2.250% 02/01/26**.................. 3,000 4,000 Metropolitan Atlanta, Georgia Rapid Transportation Authority Sales Tax Revenue, Series 2000A, (Bayerische Landesbank LOC, Westdeutsche Landesbank LOC), 2.450% 07/01/25**.................. 4,000 11,700 Richmond County, Georgia Development Authority Solid Waste Disposal Revenue, (Evergreen Nylon Project) Series 1999, AMT, (ABN AMRO N.V.), 2.450% 07/01/32**.................. 11,700 9,400 Richmond County, Georgia Hospital Au- thority Revenue Anticipation Certificates, (University Health Services, Inc. Project) Series 1999, (SunTrust Bank LOC), 2.350% 01/01/19**.................. 9,400 2,800 Roswell, Georgia Housing Authority Multi-Family Housing Revenue, (Azalea Park Apartments), (FNMA Collateral Agreement), 2.350% 06/15/25**.................. 2,800
SEE NOTES TO FINANCIAL STATEMENTS. 20 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
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), 2.300% 06/01/25**#................. $ 7,000 ---------- 112,000 ---------- ILLINOIS -- 9.5% 1,170 Chicago, Illinois O'Hare International Airport Revenue, (General Airport Project) Second Lien, Series 1994C, (Societe Generale LOC), 2.300% 01/01/18**.................. 1,170 4,145 Elmhurst, Illinois Hospital Revenue, (Joint Commission Accreditation Healthcare Project) Series 1988, (Dexia Public Finance Bank LOC), 2.350% 07/01/18**.................. 4,145 770 Illinois Development Finance Authority IDR, (Randolph Pickle Corporation Project) Series 1992, AMT, (American National Bank & Trust Company LOC), 2.550% 06/01/12**.................. 770 2,800 Illinois Development Finance Authority IDR, (Unique Building Corporation Project) Series 1989, AMT, (American National Bank &Trust Company LOC), 2.550% 05/01/19**.................. 2,800 5,100 Illinois Development Finance Authority IDR, (WM Plastics Project) Series 2001, AMT, (LaSalle Bank, N.A. LOC), 2.330% 08/01/26**.................. 5,100 4,400 Illinois Development Finance Authority Revenue, (Chicago Symphony Orchestra - Orchestral Association Project) Series 1994, (Northern Trust Company LOC), 2.200% 04/01/21**.................. 4,400 11,300 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), 2.200% 12/01/28**.................. 11,300 1,800 Illinois Development Finance Authority Revenue, (Park Ridge Youth Campus Project) Series 1998, (Northern Trust Company LOC), 2.350% 12/01/28**#................. 1,800 5,000 Illinois Development Finance Authority Revenue, (Solomon Schechter Day School Project) Series 2001, (LaSalle Bank, N.A. LOC), 2.140% 09/01/18**.................. 5,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 5,500 Illinois Educational Facilities Authority Revenue, (Chicago Historical Society Project) Series 1985, (Northern Trust Company LOC), 2.200% 12/01/25**#( 7/8)( 7/8)..... $ 5,500 4,000 Illinois Educational Facilities Authority Revenue, (DePaul University Project) Series 1992CP-1, (Northern Trust Company LOC), 2.200% 04/01/26**.................. 4,000 12,800 Illinois Educational Facilities Authority Revenue, (John F. Kennedy Healthcare Foundation Project) Series 1995, (LaSalle National Bank LOC), 2.250% 12/31/01**.................. 12,800 1,400 Illinois Educational Facilities Authority Revenue, (Northwestern University Project) Series 1985, (First National Bank of Chicago SBPA), 2.250% 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), 2.200% 12/01/05**.................. 14,320 10,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1985B, 2.500% 11/15/01**.................. 10,000 23,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1988, 2.400% 02/28/02**.................. 23,000 37,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1990A, 2.650% 07/31/02**.................. 37,000 10,000 Illinois Health Facilities Authority Revenue, (Evanston Northwestern Healthcare Corporation Project) Series 1996, 2.950% 11/30/01**.................. 10,000 8,000 Illinois Health Facilities Authority Revenue, (Revolving Fund Pooled Project) Series 1985C, (First National Bank of Chicago LOC), 2.250% 08/01/15**.................. 8,000 13,075 Illinois Health Facilities Authority Revenue, (University of Chicago Hospital Project) Series 1994C, (MBIA Insured, Comerica Bank SBPA), 2.250% 08/15/26**.................. 13,075 5,000 Illinois Sports Facilities Authority, Series 2000A-36, AMT, (MBIA Insured, First Union National Bank SBPA), 2.440% 06/15/04**#................. 5,000
SEE NOTES TO FINANCIAL STATEMENTS. 21 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- ILLINOIS -- (CONTINUED) $ 1,500 Lombard Village, Illinois Industrial Projects Revenue Refunding, (B&H Partnership Project) Series 1995, (LaSalle Bank, N.A. LOC), 2.600% 10/01/13**.................. $ 1,500 3,900 Madison County, Illinois Environmental Improvement Revenue, (Shell Oil Company Project) Series 1997A, AMT, 2.750% 03/01/33**.................. 3,900 ---------- 190,980 ---------- INDIANA -- 1.1% 10,000 Indiana Health Facilities Financing Authority Hospital Revenue, (Clarian Health Obligations Group Project) Series 2000C, (Westdeutsche Landesbank Girozentrale SBPA), 2.350% 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), 2.400% 01/01/22**.................. 2,400 1,545 Indiana Health Facilities Financing Authority Revenue Refunding, (Cardinal Center, Inc. Project) Series 1996A, (Key Bank, N.A. LOC), 2.350% 12/01/16**#................. 1,545 2,700 Indianapolis, Indiana Economic Development Revenue, (Edgcomb Metals Company Project) Series 1983, (Wells Fargo Bank LOC), 2.200% 12/01/08**.................. 2,700 2,900 Rockport, Indiana PCR, (Indiana and Michigan Electric Company Project) Series 1985A, (UBS AG LOC), 2.400% 08/01/14**#................. 2,900 3,100 Whiting, Indiana Sewer and Solid Waste Disposal Revenue, (Amoco Oil Company Project) Series 1996, AMT, (BP Amoco plc Guarantee), 2.750% 01/01/26**.................. 3,100 ---------- 22,645 ---------- IOWA -- 0.2% 2,800 Iowa State Finance Authority IDR, (Sauer-Sundstrand Company Project) Series 1996, AMT, (Bayerische Hypotheken und Vereinsbank LOC), 2.300% 05/01/26**#................. 2,800 2,000 Iowa, Higher Education Loan Authority Revenue, RAN, (Morningside College) Series 2001K, (Firstar Bank LOC), 3.750% 05/23/02.................... 2,009 ---------- 4,809 ----------
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- KENTUCKY -- 1.1% $ 5,000 Daviess County, Kentucky Health Care Revenue, (Wendell Fosters Campus Project) Series 2001, (National City Bank, Kentucky LOC), 2.400% 05/01/21**.................. $ 5,000 956 Jefferson County, Kentucky IDR, (Belknap, Inc. Project) Series 1984, (National City Bank, Kentucky LOC), 2.400% 12/01/14**#................. 956 1,175 Jefferson County, Kentucky Industrial Building Revenue, (Seven Counties Services, Inc. Project) Series 1996, (Bank One of Kentucky, N.A. LOC), 2.350% 06/01/11**#................. 1,175 750 Jeffersontown, Kentucky Industrial Building Revenue, (Rague Food Systems, Inc. Project) Series 1995, AMT, (PNC Bank, N.A. LOC), 2.450% 04/01/20**#................. 750 1,600 Lexington-Fayette County, Kentucky Urban County Airport Corporation Revenue, (First Mortgage Project) Series 1994A, AMT, (Dexia Public Finance Bank LOC), 2.850% 04/01/24**.................. 1,600 4,790 Louisville and Jefferson County, Kentucky Convention Center GO, Series 1996PT-69, (FSA Insured, Merrill Lynch SBPA), 2.380% 07/01/24**##................ 4,790 8,000 Warren County, Kentucky Hospital Facility Revenue, (Bowling Green-Warren County Project) Series 2001, (Bank One Kentucky, N.A. LOC), 2.300% 08/01/31**.................. 8,000 ---------- 22,271 ---------- LOUISIANA -- 4.4% 18,000 Ascension Parish, Louisiana PCR Refunding, (Borden, Inc. Project) Series 1992, (Credit Suisse First Boston LOC), 2.280% 12/01/09**.................. 18,000 2,900 Calcasieu Parish Inc., Louisiana Industrial Development Board Environmental Revenue, (Citgo Petroleum Corporation Project) Series 1994, AMT, (Banque Nationale de Paris LOC), 2.800% 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), 2.800% 07/01/26**.................. 2,000
SEE NOTES TO FINANCIAL STATEMENTS. 22 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- LOUISIANA -- (CONTINUED) $ 5,100 Calcasieu Parish Inc., Louisiana Industrial Development Board Revenue, (Hydroserve Westlake Project) Series 1999, AMT, (Bank One Chicago, N.A. LOC), 2.350% 12/01/24**.................. $ 5,100 8,300 Lake Charles, Louisiana Harbor and Terminal District Revenue, (Citgo Petroleum Corporation Project) Series 1984, (Westdeutsche Landesbank Girozentrale LOC), 2.250% 08/01/07**.................. 8,300 20,000 Louisiana State Offshore Terminal Authority Revenue Refunding, (Loop Project) Series 1997A, (Bank One Louisiana, N.A. LOC), 2.300% 09/01/17**.................. 20,000 15,550 Louisiana State Port Harbor and Offshore Terminal Authority Deepwater Port Revenue Refunding, (Loop Income First Stage Project) Series 1991A, (Bank One Louisiana N.A. LOC), 2.300% 09/01/08**.................. 15,550 18,100 Louisiana State Public Facilities Authority Hospital Revenue, (Willis-Knighton Medical Center Project) Series 1997, (AMBAC Insured, Dexia Public Finance Bank LOC), 2.300% 09/01/27**.................. 18,100 ---------- 89,950 ---------- MAINE -- 0.3% 6,600 Maine Public Utility Financing Bank Public Utility Revenue Refunding, (Maine Public Service Company Project) Series 1996, AMT, (Bank of New York LOC), 2.350% 04/01/21**.................. 6,600 ---------- MARYLAND -- 2.1% 3,700 Baltimore County, Maryland Economic Development Revenue, (Notre Dame Preparatory School Project) Series 1998, (Crestar Bank LOC), 2.350% 06/01/24**#................. 3,700 19,200 Maryland State Health and Higher Educational Facilities Authority Lease Revenue, (John Hopkins Hospital Project) Series 1997A, (Canadian Imperial Bank of Commerce LOC), 2.230% 07/01/27**.................. 19,200 19,025 Westminster, Maryland Educational Facilities Revenue, (Western Maryland College Project) Series 2000, (Wachovia Bank, N.A. LOC), 2.250% 04/01/30**.................. 19,025 ---------- 41,925 ----------
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- MINNESOTA -- 0.3% $ 6,160 Minneapolis, Minnesota Housing Development Revenue Refunding, (Symphony Place Project) Series 1988, (FHLMC Guarantee), 2.250% 12/01/14**.................. $ 6,160 ---------- MISSOURI -- 4.6% 5,500 Kansas City, Missouri Industrial Development Authority (MidAmerica Health Services Project) Series 1984, (Mellon Bank, N.A. LOC), 2.350% 12/01/14**.................. 5,500 71,655 Missouri State Development Finance Board Lease Revenue, (Missouri Association of Utilities Lease Pool Project) Series 1999, (TransAmerica Life and Annuity Guarantee), 2.350% 12/01/22**.................. 71,654 6,100 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), 2.300% 06/01/14**.................. 6,100 5,000 Missouri State Health and Educational Facilities Authority Revenue, (Mehlville School District Advanced Funding Project) Series 2000I, 5.000% 10/01/01.................... 5,000 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.................... 4,525 ---------- 92,779 ---------- NEBRASKA -- 1.1% 6,000 Lancaster County, Nebraska IDR, (Garner Industries, Inc. Project) Series 2000A, AMT, (Wells Fargo Bank, N.A. LOC), 2.480% 11/01/20**.................. 6,000 9,695 Nebraska Help Inc. Student Loan Revenue, Series 1986B, AMT, (SLMA Guarantee), 2.300% 12/01/16**.................. 9,695 5,645 Nebraska Public Water District Revenue, Series 2001 PA-869R, (Merrill Lynch SBPA, Escrowed in US Treasuries), 2.380% 01/01/15**.................. 5,645 ---------- 21,340 ---------- NEVADA -- 1.1% 5,850 Clark County, Nevada IDR, (Nevada Cogeneration Association I Project) Series 1991, AMT, (Canadian Imperial Bank of Commerce LOC), 2.800% 11/01/21**.................. 5,850
SEE NOTES TO FINANCIAL STATEMENTS. 23 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- NEVADA -- (CONTINUED) $10,700 Clark County, Nevada IDR, (Nevada Cogeneration Association Project) Series 1992, AMT, (ABN AMRO Bank, N.V. LOC), 2.750% 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), 2.400% 10/01/30**.................. 5,500 ---------- 22,050 ---------- NEW MEXICO -- 0.8% 5,900 Dona Ana County, New Mexico IDR, (Foamex Products, Inc. Project) Series 1985, (Bank of Nova Scotia LOC), 2.200% 11/01/13**#................. 5,900 10,000 New Mexico State, TRAN, Series 2001, 4.000% 06/28/02.................... 10,097 ---------- 15,997 ---------- NORTH CAROLINA -- 3.0% 13,775 North Carolina Educational Facilities Financing Agency Revenue, (Methodist College Project) Series 2000, (Wachovia Bank, N.A. LOC), 2.250% 03/01/22**.................. 13,775 12,700 North Carolina Educational Facilities Financing Agency Revenue, (Ravenscroft School Project) Series 2000, (Wachovia Bank, N.A. LOC), 2.250% 08/01/20**.................. 12,700 10,000 North Carolina Educational Facilities Financing Agency Revenue, (Roman Catholic Diocese of Charlotte Project) Series 2000, (Wachovia Bank, N.A. LOC), 2.250% 06/01/17**.................. 10,000 9,200 North Carolina Medical Care Commission Retirement Community Revenue, (Adult Communities Project) Series 1996, (LaSalle National Bank LOC), 2.300% 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), 2.250% 03/01/24**#................. 9,500 5,000 North Carolina Medical Care Community Health Care Facilities Revenue, (Rutherford Hospital Inc. Project) Series 2001, (Branch Banking & Trust LOC), 2.300% 09/01/21**.................. 5,000 ---------- 60,175 ----------
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- OHIO -- 2.6% $ 900 Centerville, Ohio Health Care Revenue, (Bethany Lutheran Village Hospital Project) Series 1994, (PNC Bank of Ohio, N.A. LOC), 2.350% 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), 2.250% 06/01/11**#................. 5,000 765 Greene County, Ohio IDR, (FC Ltd. - AFC Stamping Project) Series 1995, AMT, (Key Bank, N.A. LOC), 2.500% 09/01/16**#................. 765 8,300 Lucas County, Ohio Facilities Improvement Revenue, (Toledo Zoological Society Project) Series 1997, (Key Bank, N.A. LOC), 2.200% 10/01/05**#................. 8,300 1,620 Lucas County, Ohio IDR, (Dynamic Dies, Inc. Project) Series 1997, AMT, (National City Bank LOC), 2.550% 07/01/09**.................. 1,620 6,460 Mahoning County, Ohio Healthcare Facilities Revenue, (Shepherd of the Valley Project) Series 1995, (Bank One, N.A. LOC), 2.410% 09/01/20**.................. 6,460 12,640 Medina County, Ohio Housing Revenue, (The Oaks Apartments Project) Series 1997B, (Bank One Akron, N.A. LOC), 2.350% 12/01/23**.................. 12,640 2,279 Ohio Housing Finance Agency Multi-Family Housing Revenue, (Kenwood Congregation -- Retirement Project) Series 1985, (Morgan Guaranty Trust LOC), 2.350% 12/01/15**.................. 2,279 10,000 Ohio State Water Development Authority Pollution Control Facilities Revenue Refunding, (Duquesne Company Project) Series 1999C, (AMBAC Insured, Bank of New York, SBPA), 2.250% 10/01/29**.................. 10,000 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), 2.450% 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), 2.550% 02/01/07**#................. 900
SEE NOTES TO FINANCIAL STATEMENTS. 24 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- OHIO -- (CONTINUED) $ 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), 2.250% 12/01/21**#................. $ 1,035 ---------- 51,899 ---------- OKLAHOMA -- 1.6% 10,000 Oklahoma Development Finance Authority Revenue, (Seabrook Farms Inc. Project) Series 1997, AMT, (Bank of New York LOC), 2.350% 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), 2.650% 06/01/30**.................. 21,910 ---------- 31,910 ---------- OREGON -- 1.0% 20,000 Multnomah County, Oregon TRAN, Series 2001, 3.500% 06/28/02.................... 20,130 ---------- PENNSYLVANIA -- 4.4% 9,400 Allegheny County, Pennsylvania Port Authority, Grant Anticipation Notes, Series 2001, (PNC Bank LOC), 3.500% 06/28/02.................... 9,458 2,480 Elk County, Pennsylvania Industrial Development Authority Revenue, (Clarion Sintered Metals Project) Series 1998, AMT, (PNC Bank, N.A. LOC), 2.450% 03/01/09**#................. 2,480 6,270 Hatfield Township, Pennsylvania Industrial Development Authority Revenue, (H&N Packaging Project) Series 1999A, AMT, (Commerzbank AG LOC), 2.450% 04/01/19**#................. 6,270 3,500 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue, (Amtrak Project) Series 2001B, AMT, (Morgan Guaranty Trust LOC), Mandatory Put 11/01/01, 3.100% 11/01/41.................... 3,500 19,908 Quakertown, Pennsylvania General Authority Revenue, (Pooled Financing Project) Series 1996A, (PNC Bank, N.A. LOC), 2.250% 07/01/26**.................. 19,908 18,870 Quakertown, Pennsylvania General Authority Revenue, (Pooled Financing Project) Series 1998A, (PNC Bank, N.A. LOC), 2.250% 06/01/28**.................. 18,870
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- PENNSYLVANIA -- (CONTINUED) $14,300 Quakertown, Pennsylvania Hospital Authority Revenue, (Group Pooled Financing Project) Series 1985, (PNC Bank LOC), 1.000% 07/01/05**.................. $ 14,300 10,250 Sayre, Pennsylvania Health Care Facilities Authority Revenue, (VHA of Pennsylvania) Series 1985I (AMBAC Insured, Mellon Bank, N.A. SBPA), 2.200% 12/01/20**.................. 10,250 1,760 Schuylkill County, Pennsylvania Industrial Development Authority Revenue, (Bon-Ton Stores Project) Series 1992, AMT, (PNC Bank, N.A. LOC), 2.450% 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), 2.350% 02/01/12**#................. 1,315 ---------- 88,111 ---------- RHODE ISLAND -- 0.2% 4,900 Rhode Island State Industrial Facilities Corporation IDR, (Precision Turned Components Project) Series 2000, (Bank of New York LOC), 2.350% 05/01/11**.................. 4,900 ---------- SOUTH CAROLINA -- 4.2% 4,000 Anderson County, South Carolina IDR, (Mikron Corporation Project) Series 1998, AMT, (ABN AMRO Bank N.V. LOC), 2.400% 11/01/12**#................. 4,000 6,000 Beaufort County, South Carolina BAN, (South Carolina School District Enhancement Program) Series 2001, 3.200% 04/24/02.................... 6,019 2,725 Beaufort County, South Carolina School District GO, (South Carolina School District Enhancement Program) Series 1999C, 4.000% 02/01/02.................... 2,727 6,000 Berkeley County, South Carolina Exempt Facilities Industrial Revenue, (Amoco Chemical Corporation Project) Series 1997, AMT, (BP Amoco plc Guarantee), 2.750% 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.................... 4,853
SEE NOTES TO FINANCIAL STATEMENTS. 25 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- SOUTH CAROLINA -- (CONTINUED) $ 1,000 Cherokee County, South Carolina Industrial Revenue Refunding, (Holmberg Electronic Corporation Project) Series 1989, (Wachovia Bank of North Carolina, N.A. LOC), 2.600% 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), 2.300% 11/01/15**.................. 15,000 6,200 Greenville County, South Carolina Industrial Revenue, (Edgcomb Metals Company Project) Series 1984, (Wells Fargo Bank LOC), 2.300% 08/01/09**#................. 6,200 5,000 Piedmont Municipal Power Agency South Carolina Revenue Refunding, Series 1997C, (MBIA Insured, Credit Suisse First Boston SBPA), 2.250% 01/01/19**.................. 5,000 3,540 South Carolina Jobs Economic Development Authority Development Revenue, (Spartanburg YMCA Project) Series 1996, (First Union National Bank LOC), 2.350% 06/01/18**#................. 3,540 24,995 South Carolina Jobs Economic Development Authority Economic Development Revenue, (St. Francis Bon Secours Hospital Project) Series 2000PT-503, (Merrill Lynch Guarantee and SBPA), 2.550% 11/15/30**(++)(++).......... 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), 2.250% 10/01/19**#................. 3,000 2,800 South Carolina Jobs Economic Development Authority IDR, (Banks Construction Company Project) Series 1999, AMT, (Wachovia Bank, N.A. LOC), 2.350% 05/01/09**#................. 2,800 400 South Carolina Jobs Economic Development Authority IDR, (Chambers Oakridge Landfill Project) Series 1990, AMT, (Morgan Guaranty Trust LOC), 2.350% 12/01/01**#........................ 400 ---------- 85,534 ---------- SOUTH DAKOTA -- 0.3% 430 South Dakota Economic Development Financing Authority IDR Refunding, (Lomar Development Company Project) Series 1996B, AMT, (US Bank, N.A. LOC), 2.700% 08/01/08**#................. 430
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- SOUTH DAKOTA -- (CONTINUED) $ 5,935 South Dakota Housing Development Authority Revenue, Series 2001 PT-572, AMT, (Banco Santader Central SBPA), 2.430% 05/01/10##.................. $ 5,935 ---------- 6,365 ---------- TENNESSEE -- 4.8% 8,500 Bristol, Tennessee Health and Education Facilities Revenue, Series 1995A, (FGIC Insured, Citibank SBPA), 2.350% 02/28/14**##(++)(++)........ 8,500 20,600 Collierville, Tennessee Industrial Development Board Revenue, (St. Georges High School Project) Series 2001, (AmSouth Bank of Alabama, N.A. LOC), 2.350% 08/01/31**.................. 20,600 1,900 Dickson County, Tennessee Industrial Development Board Revenue, (The Jackson Foundation-Renaissance Learning Center Project) Series 1997, (SunTrust Bank of Nashville LOC), 2.350% 11/01/12**#................. 1,900 6,105 Franklin County, Tennessee Health and Educational Facilities Board Revenue, (University of the South Project) Series 1998B, (AmSouth Bank of Alabama, N.A. LOC), 2.380% 09/01/18**.................. 6,105 18,785 Johnson City, Tennessee Health and Educational Facilities Board Hospital Revenue, Series 2001 PT-560, (Merrill Lynch Guarantee and SBPA), 2.550% 07/01/26**##(++)(++)........ 18,785 7,420 Memphis, Tennessee Center City Revenue Finance Corporation Multi-Family Housing Revenue, (Riverset Apartments Project) Series 1998 PT-1019, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 2.580% 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), 2.300% 11/15/26**.................. 9,020 3,700 Monroe County, Tennessee Industrial Development Board IDR, (American Transit Corporation Project) Series 1986, (BankBoston LOC), 2.350% 08/01/06**#................. 3,700 4,900 Shelby County, Tennessee Health and Education Facilities Board Revenue, (Southern College of Optometry Project) Series 2001, (Allied Irish Bank plc LOC), 2.380% 06/01/26**.................. 4,900
SEE NOTES TO FINANCIAL STATEMENTS. 26 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- TENNESSEE -- (CONTINUED) $ 1,400 Springfield, Tennessee Industrial Development Board Revenue, (All American Homes of Tennessee Project) Series 1994, AMT, (Bank One of Michigan, N.A. LOC), 2.550% 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), 2.300% 12/01/23**.................. 14,400 ---------- 96,730 ---------- TEXAS -- 8.3% 11,500 Brazos River Authority, Texas PCR Refunding, (Texas Utilities Electric Company Project) Series 1999C, AMT, (Bank of New York LOC), 2.250% 03/01/32**.................. 11,500 7,650 Coastal Bend, Texas Health Facilities Development Corporation Revenue, (Incarnate Word Health Services Project) Series 1998B, (AMBAC Insured, Bank One SBPA), 2.320% 08/15/28**.................. 7,650 16,180 Dallas-Fort Worth, Texas International Airport Facility Revenue, (Flightsafety Project) Series 1999, AMT, (OBH, Inc. Guarantee), 2.350% 07/01/32**#................. 16,180 9,600 Grand Prairie, Texas Housing Finance Multi-Family Housing Revenue, (Lincoln Property), Series 1993, (GE Credit Corporation Guarantee), 2.300% 06/01/10**.................. 9,600 2,300 Grapevine, Texas Industrial Development Corporation Airport Revenue, (Southern Air Transportation Project) Series 1993, (Bank One Texas, N.A. LOC), 2.300% 03/01/10**.................. 2,300 1,600 Gulf Coast, Texas Industrial Development Authority Marine Terminal Revenue, (Amoco Oil Company Project) Series 1993, AMT, (BP Amoco plc Guarantee), 2.750% 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), 2.750% 06/01/24**.................. 3,400 14,680 Mesquite,Texas Independent School District GO, Series 2000, (Texas Permanent School Fund Guarantee, Morgan Guaranty Trust SBPA), 2.350% 08/15/25**.................. 14,680
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- TEXAS -- (CONTINUED) $10,000 Northside, Texas Independent School District GO, Series 2001A, (Texas Permanent School Fund Guarantee, Dexia Public Finance Bank, N.A. SBPA) Mandatory Put 08/01/02, 3.000% 08/01/31.................... $ 10,033 1,200 Nueces County, Texas Health Facilities Development Corporation Revenue, (Driscoll Foundation Childrens Hospital Project) Series 1985, (Bank One of Texas, N.A. LOC), 2.500% 07/01/15**.................. 1,200 7,495 Plano, Texas Independent School District, Series 2001-Putters Series 178, (Texas Permanent Fund Insured, Morgan Guaranty Trust SBPA), 2.380% 02/15/09**#................. 7,495 2,525 Sabine River Authority,Texas, (Texas Utilities Electric Company Project) Series 1995A, AMT, (Morgan Guaranty Trust LOC), 2.800% 04/01/30**.................. 2,525 9,000 San Antonio, Texas Education Facility Corporation Revenue, (University of the Incarnate World Project) Series 2001, (Bank One Texas, N.A. LOC), 2.370% 12/01/21**.................. 9,000 8,000 Sulphur Springs, Texas IDR, (Hon Industries Inc., Project) Series 1985, (Northern Trust Company LOC), 2.300% 12/01/13**#................. 8,000 5,700 Tarrant County, Texas Housing Finance Corporation Revenue Refunding, (Multi-Family Sierra Springs Apartments Project) Series 1999, (FNMA Collateral Agreement), 2.200% 02/15/27**.................. 5,700 6,700 Texas State Department Housing and Community Affairs Multi-Family Revenue, (High Point III), (FNMA Collateral Agreement), 2.200% 02/01/23**.................. 6,700 40,000 Texas State TRAN, GO, Series 2001A, 3.750% 08/29/02.................... 40,451 1,000 Trinity River, Texas Industrial Development Authority Revenue, (Toys R Us - Nytex Inc. Project) Series 1984, (Bankers Trust Company LOC), 2.575% 11/01/14**#................. 1,000 8,135 Williamson County, Texas Putable Receipts, Series 1988, (FSA Insured, Morgan Guaranty Trust SBPA), 2.380% 02/15/21**.................. 8,135 ---------- 167,149 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 27 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- UTAH -- 1.8% $ 9,900 Intermountain Power Agency, Utah Power Supply Revenue, Municipal Trust Receipts, Series 1996CMC-4, (FSA Insured, Chase Manhattan SBPA), 2.350% 07/01/03**#(++)(++)......... $ 9,900 8,170 Provo City, Utah Housing Authority, (Multi-Family Branbury Park Project) Series 1987A, (Bank One of Arizona LOC), 2.440% 12/01/10**.................. 8,170 5,500 Salt Lake County, Utah TRAN, Series 2001, 3.500% 12/28/01.................... 5,511 8,000 Utah State Housing Financing Agency Revenue,Series 1998PT-209, AMT, (FHA Insured, VA Mortgages, Bayerische Hypotheken und Vereinsbank SBPA), 2.430% 07/01/06**.................. 8,000 4,000 West Valley City, Utah Industrial Development Authority Revenue, (Johnson Matthey, Inc. Project) Series 1987, (HSBC Bank USA LOC), 2.800% 12/01/11**.................. 4,000 ---------- 35,581 ---------- VERMONT -- 1.0% 10,800 Vermont Educational and Health Buildings Financing Agency Revenue, (Middlebury College Project) Series 1988A, Mandatory Put 11/01/01, 4.400% 11/01/27.................... 10,800 10,300 Vermont Industrial Development Authority Revenue, (Ryegate Wood Energy Company Project) Series 1990, AMT, (ABN AMRO Bank, N.V. LOC), 2.350% 12/01/15**.................. 10,300 ---------- 21,100 ---------- VIRGINIA -- 3.2% 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), 2.250% 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), 2.250% 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), 2.250% 10/01/25**.................. 20,000
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- VIRGINIA -- (CONTINUED) $ 5,925 Madison County, Virginia Industrial Development Authority Revenue, (Madison Wood Preservers Project) Series 1998, AMT, (Wachovia Bank of North Carolina LOC), 2.350% 06/01/13**#................. $ 5,925 13,080 Virginia Beach, Virginia Development Authority Multi-Family Housing Revenue, (Briarwood Apartments Project) Series 1999PT-1146, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 2.430% 04/01/23**##(++)(++)........ 13,080 9,490 Virginia College Building Authority Virginia Educational Facilities Revenue, Series 1999-Putters 134, (FSA Insured, JP Morgan Chase SBPA), 2.380% 09/01/07**#................. 9,490 1,075 Winchester, Virginia Industrial Development Authority Revenue, (Midwesco Filter Resource, Inc. Project) Series 1995, (Harris Trust & Savings Bank LOC), 2.600% 08/01/07**.................. 1,075 ---------- 65,370 ---------- WASHINGTON -- 2.2% 500 Port of Skagit County, Washington Industrial Development Corporation Revenue, (Cascade Clear Water Company Project) Series 1995, AMT, (Key Bank, N.A. LOC), 2.500% 12/01/20**#................. 500 25,000 Seattle, Washington Municipal Light and Power Revenue, Series 1991A, (Morgan Guaranty Trust LOC), 2.150% 05/01/16**.................. 25,000 19,865 Washington State Motor Fuel Tax GO, Series 2000 PT-433, (Merrill Lynch SBPA), 2.380% 06/01/08**#(++)(++)................ 19,865 ---------- 45,365 ---------- WEST VIRGINIA -- 1.7% 400 Ohio County, West Virginia IDR, (Ohio Valley -- Clarksburg Drug Company Project) Series 1986, AMT, (PNC Bank of Ohio, N.A. LOC), 2.450% 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), 2.450% 12/01/19**.................. 10,000
SEE NOTES TO FINANCIAL STATEMENTS. 28 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------- WEST VIRGINIA -- (CONTINUED) $20,360 West Virginia Public Energy Authority Revenue, (Morgantown Energy Project) Series 1998, (FSA Insured, BNP Paribas SBPA), 2.480% 01/01/03**.................. $ 20,360 4,000 West Virginia State Hospital Financing Authority Revenue, Series 1985C, (AMBAC Insured, Mellon Bank, N.A. SPA), 2.250% 12/01/25**.................. 4,000 ---------- 34,760 ---------- WISCONSIN -- 5.2% 18,000 Kenosha, Wisconsin Unified School District No. 001 TRAN, Series 2000A, 4.750% 10/05/01.................... 18,001 8,900 Menomonee Falls, Wisconsin School District, TRAN, Series 2001, 2.750% 08/22/02.................... 8,914 350 Milwaukee, Wisconsin IDR, (Mandel Company Project) Series 1997, AMT, (US Bank, N.A. LOC), 2.700% 04/01/07**.................. 350 3,850 Pleasant Prairie, Wisconsin IDR, (Nucon Corporation Project) Series 1995, AMT, (American National Bank & Trust Company LOC), 2.350% 02/01/22**#................. 3,850 7,500 West Allis, Wisconsin Revenue (State Fair Park Exposition Center Project) Series 2001, (Firstar Bank, N.A. LOC), 2.350% 08/01/28**.................. 7,500 32,100 Wisconsin State Health and Educational Facilities Authority Revenue, (St. Luke's Medical Center Project) Series 1987, (First National Bank of Chicago LOC), 2.250% 12/01/17**#................. 32,100 25,000 Wisconsin State Operating Notes, Series 2001, 3.750% 06/17/02.................... 25,225 10,000 Wisconsin State, 2.795% 08/01/02.................... 10,000 ---------- 105,940 ---------- WYOMING -- 0.5% 10,000 Wyoming State Education Fund Revenue, TRAN, Series 2001B, 3.500% 06/27/02.................... 10,063 ---------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $1,960,505).................. 1,960,505 ----------
VALUE (000) ----------------------------------------------------------- TOTAL INVESTMENTS (Cost $1,960,505*)........ 96.9% $1,960,505 ---------- OTHER ASSETS AND LIABILITIES (NET)..................... 3.1% Cash................................ $ 551 Receivable for investment securities sold.............................. 122,200 Receivable for Fund shares sold..... 5,728 Interest receivable................. 7,295 Payable for Fund shares redeemed.... (28,082) Investment advisory fee payable..... (250) Administration fee payable.......... (36) Shareholder servicing and distribution fees payable......... (687) Distributions payable............... (3,301) Payable for investment securities purchased......................... (39,737) Accrued Trustees' fees and expenses.......................... (50) Accrued expenses and other liabilities....................... (226) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................. 63,405 ---------- NET ASSETS.................. 100.0% $2,023,910 ========== NET ASSETS CONSIST OF: Accumulated net realized loss on investments sold.................. $ (32) Paid-in capital..................... 2,023,942 ---------- NET ASSETS.......................... $2,023,910 ==========
SEE NOTES TO FINANCIAL STATEMENTS. 29 NATIONS RESERVES MONEY MARKET FUNDS Nations Municipal Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
VALUE ----------------------------------------------------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($377,981,389 / 378,160,550 shares outstanding)...................... $1.00 ----- ----- TRUST CLASS SHARES: ($506,071,623 / 506,045,325 shares outstanding)...................... $1.00 ----- ----- LIQUIDITY CLASS SHARES: ($51,401,050 / 51,398,081 shares outstanding)...................... $1.00 ----- ----- ADVISER CLASS SHARES: ($156,269,376 / 156,319,286 shares outstanding)...................... $1.00 ----- ----- INVESTOR CLASS SHARES: ($52,144,579 / 52,186,448 shares outstanding)...................... $1.00 ----- ----- MARKET CLASS SHARES: ($172,035,317 / 172,027,315 shares outstanding)...................... $1.00 ----- ----- DAILY CLASS SHARES: ($616,299,539 / 616,273,756 shares outstanding)...................... $1.00 ----- ----- SERVICE CLASS SHARES: ($87,800,689 / 87,800,010 shares outstanding)...................... $1.00 ----- ----- INVESTOR B SHARES: Net asset value and offering price per share(a) ($105,059 / 105,056 shares outstanding)...................... $1.00 ----- ----- INSTITUTIONAL SHARES: ($3,801,433 / 3,800,775 shares outstanding)...................... $1.00 ----- -----
--------------- * Aggregate cost for federal tax purposes. ** Variable rate demand notes. The interest rate shown reflects the rate in effect at September 30, 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. (a) The redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. Nations Municipal Reserves had the following industry concentrations greater than 10% at September 30, 2001 (as a percentage of net assets): HealthCare Revenue 21.95% Education Revenue 16.47% SEE NOTES TO FINANCIAL STATEMENTS. 30 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ MUNICIPAL BONDS AND NOTES -- 93.8% CALIFORNIA -- 85.9% $ 3,530 Alameda-Contra Costa County, California Schools Financing Authority Certificates of Participation, (Capital Improvements Financing Project) Series 1997B, (Canadian Imperial Bank of Commerce LOC), 2.250% 07/01/23**........................ $ 3,530 2,800 Alameda-Contra Costa County, California Schools Financing Authority Certificates of Participation, (Capital Improvements Financing Project) Series 2000F, (KBC Bank N.V. LOC), 2.250% 08/01/23**................. 2,800 1,900 Alameda-Contra Costa County, California Schools Financing Authority Certificates of Participation, (Capital Improvements Financing Project) Series 2000I, (AMBAC Insured, KBC Bank N.V. SBPA), 2.250% 08/01/29**........................ 1,900 6,480 Alameda County, California Corridor Transportation Authority Revenue, Series 1999CMC-1, (MBIA Insured), 2.350% 10/13/13**##(--)........... 6,480 10,575 Alameda-Contra Costa, California School Financing Authority, Certificate of Participation, Series 1999G, (AMBAC Insured), 2.200% 08/01/24**................. 10,575 780 Anaheim, California Certificates of Participation, Series 1993, (Ambac Insured, ABN AMRO Bank N.V., SPA), 2.200% 08/01/19**................. 780 7,500 Anaheim, California Housing Authority Multi-Family Housing Revenue, Series 1990, (FNMA Collateral Agreement Liquidity), 2.250% 08/01/20**................. 7,500 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), 2.350% 09/01/13**........................ 6,900 2,400 Barstow, California Multi-Family Revenue Refunding, (Desert Vista Apartments Project) Series 1991, (Redlands Federal Bank LOC, FHLB LOC), 2.300% 12/01/20**........... 2,400 8,105 California Educational Facilities Authority Revenue, (Stanford University Project) Series 1999, (Merrill Lynch & Company Insured), 2.080% 06/01/21**##(--)........... 8,105 14,275 California Educational Facilities Authority Revenue, Series 2000A, (Societe Generale LOC), 2.130% 10/01/27**##(--).................. 14,275
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 15,100 California GO, (AMBAC Insured, Citibank LOC), 2.130% 04/01/04**##(--).................. $ 15,100 15,000 California GO, (JP Morgan Chase Insured, Bayerische Landesbank LOC), 2.500% 10/12/01............. 15,000 5,500 California GO, (JP Morgan Chase Insured, Bayerische Landesbank LOC), 2.600% 10/23/01............. 5,500 4,800 California GO, (JP Morgan Chase Insured, Bayerische Landesbank LOC), 2.250% 10/24/01............. 4,800 21,000 California GO, (JP Morgan Chase Insured, Bayerische Landesbank LOC), 2.400% 11/06/01............. 21,000 10,000 California GO, (MBIA Insured, Citibank LOC), 2.130% 02/01/06**##(--).................. 10,000 13,085 California GO, Series 1999, (MBIA Insured, Merrill Lynch & Company Insured), 2.130% 12/01/18**##(--).................. 13,085 12,200 California Golden Empire Schools Financing Authority Revenue, (Kern High School District) Series 1995B, (Bank of New York LOC, California State Teachers Retirement LOC), 2.250% 12/01/24**........................ 12,200 4,000 California Health Facilities Financing Authority Revenue, (Adventist Health Systems Project) Series 1998A, (MBIA Insured, California State Teachers Retirement SPA), 2.550% 09/01/28**........................ 4,000 4,450 California Health Facilities Financing Authority Revenue, (Adventist Health Systems Project) Series 1998B, (MBIA Insured, California State Teachers Retirement SPA), 2.550% 09/01/28**........................ 4,450 10,995 California Health Facilities Financing Authority Revenue, Series 1998CMC-6, (FSA Insured, JP Morgan Chase Insured), 2.350% 06/01/12**##(--).................. 10,995 6,365 California Health Facilities Financing Authority Revenue, Series 1999, (Merrill Lynch & Company), 2.280% 12/01/25**##(--).................. 6,365 11,950 California Housing Finance Agency Multi-Unit Rental Housing Revenue, (MBIA Insured), 2.130% 08/01/10**##(--).................. 11,950 2,000 California Housing Finance Agency Multi-Unit Rental Housing Revenue, Series 1992, (MBIA Insured), 2.180% 08/01/10**................. 2,000
SEE NOTES TO FINANCIAL STATEMENTS. 31 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
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 2,400 California Housing Finance Agency Revenue, Series 1995, (MBIA Insured, Merrill Lynch & Company Insured), 2.150% 08/01/26**##(--).................. 2,400 3,400 California Housing Finance Agency Revenue, Series 2000G, AMT, (FSA Insured, Commerzbank LOC), 2.300% 08/01/31**........................ 3,400 33,775 California Housing Finance Agency Revenue, Series 2001I, 2.950% 06/14/02.......................... 33,775 5,300 California Pollution Control Financing Authority Resource Recovery Revenue, (Burney Forest Products Project) Series 1988, (Fleet Bank, N.A. LOC), 2.600% 09/01/20**........................ 5,300 4,845 California Pollution Control Financing Authority Resource Recovery Revenue, (OMS Equity Stanislaus Project) Series 1987, AMT, (Westdeutsche Landesbank LOC), 2.550% 12/01/17**........... 4,845 1,700 California Pollution Control Financing Authority Solid Waste Disposal Revenue, (Santa Clara Valley Industries Project) Series 1998A, AMT, (Comerica Bank LOC), 2.300% 03/01/18**................. 1,700 9,200 California Pollution Control Financing Authority Solid Waste Disposal Revenue, (Shell Oil - Martinez Refining Company Project) Series 1994A, AMT, (Shell Oil Insured), 2.500% 10/01/24**... 9,200 3,000 California Pollution Control Financing Authority Solid Waste Disposal Revenue, (Shell Oil-Martinez Refining Company Project) Series 1996A, AMT, (Shell Oil Insured), 2.500% 10/01/31**... 3,000 100,000 California School Cash Reserve Program Authority, Series 2001A, (AMBAC Insured), 4.000% 07/03/02.......................... 100,991 10,900 California School Facilities Financing Corporation, Certificates of Participation, Series 1998A, (Bayerische Hypotheken und Vereinsbank LOC), 2.300% 07/01/22**................. 10,900 1,195 California School Facilities Financing Corporation, Certificates of Participation, Series 1998B, (Bayerische Hypotheken und Vereinsbank LOC), 2.300% 07/01/24**................. 1,195
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 5,000 California South Placer Wastewater Authority Wastewater Revenue, Series 2000B, (FGIC Insured, FGIC SBPA), 2.200% 11/01/35**.......... $ 5,000 15,000 California State Department of Water Resources Revenue, Series 2001K1, (Landesbank Hessen-Thueringen LOC), 2.350% 10/31/04**##(--)..... 15,000 6,000 California State Floating Rate Receipts, Series 1997SG-91, (FGIC Insured, Societe Generale LOC), 2.130% 10/01/21**##(--)........... 6,000 15,950 California State GO, Municipal Trust Receipts, Series 1997SGA-54, (AMBAC Insured, Societe Generale SBPA), 2.350% 06/01/21**##(--).... 15,950 40,296 California State, Revenue Anticipation Notes, Series 2001, 3.250% 06/28/02................... 40,296 10,000 California State, Revenue Anticipation Notes, Series 2001C, .000% 06/28/02**.................. 10,000 2,495 California State, Series 1999-132, (FGIC Insured, JP Morgan Chase Insured), 2.280% 04/01/08**##..... 2,495 10,465 California Statewide Communities Development Authority Certificates of Participation Revenue Refunding, (House Ear Institute Project) Series 1993, (Morgan Guaranty Trust LOC), 2.600% 12/01/18**........................ 10,465 4,000 California Statewide Communities Development Authority Certificates of Participation, (Sutter Health Obligation Group Project) Series 1995, (AMBAC Insured, KBC Bank N.V., SBPA), 2.500% 07/01/15**.... 4,000 8,700 California Statewide Communities Development Authority Multi-Family Housing Revenue, (Concord Green Apartments Project) Series 1998S, (FHLB LOC), 2.350% 06/01/28**..... 8,700 4,000 California Statewide Communities Development Authority Multi-Family Housing Revenue, (Oakmont Senior Living Project) Series 2001Y, AMT, (East West Bank LOC, FHLB LOC), 2.350% 08/01/31**................. 4,000 4,600 California Statewide Communities Development Authority Multi-Family Housing Revenue, (Pittsburg Plaza Apartments Project) Series 1997K, AMT, (East West Bank LOC, FHLB LOC), 2.350% 09/01/27**........... 4,600
SEE NOTES TO FINANCIAL STATEMENTS. 32 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,400 California Statewide Communities Development Authority Revenue Certificates of Participation, (John Muir/MT Diablo Healthcare Project) Series 1997, (AMBAC Insured, Chase Manhattan Bank SBPA), 2.550% 08/15/27**.......... $ 1,400 4,800 California Statewide Communities Development Authority Solid Waste Facilities Revenue, (Chevron USA Inc. Project) Series 1994, AMT, (GTY-AGMT, Chevron Corporation), 2.500% 12/15/24**................. 4,800 2,500 Carlsbad, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Program) Series 2001, (FSA Insured, First Union National Bank SBPA), 2.350% 09/01/24**........................ 2,500 4,000 East Bay Municipal Utility District Water, (Westdeutsche Landesbank LOC), 2.250% 10/02/01............. 4,000 10,000 East Bay Municipal Utility District Water, (Westdeutsche Landesbank LOC), 2.050% 10/17/01............. 10,000 7,000 East Bay Municipal Utility District Water, (Westdeutsche Landesbank LOC), 2.000% 11/20/01............. 7,000 8,200 Elsinore Valley, California Municipal Water District Certificates of Participation, Series 2000A, (FGIC Insured, FGIC SPBA), 2.250% 07/01/29**.......... 8,200 4,800 Eureka, California United School District Revenue, Series 2001, 3.250% 08/30/02................... 4,811 4,000 Fremont, California Multi-Family Housing Revenue, (Creekside Village Apartments Project) Series 1985D, (KBC Bank N.V. LOC), 2.250% 09/01/07**........................ 4,000 3,090 Fremont, California Multi-Family Housing Revenue, (Mission Wells Project) Series 1985E, (Credit Lyonnais LOC, Bayerische Landesbank LOC), 2.350% 09/01/14**........................ 3,090 7,010 Garden Grove, California Housing Authority Multi-Family Revenue, Series 2001, (GNMA Collateral, Merrill Lynch Liquidity Facility), 2.150% 03/21/02**(--)............. 7,010 13,100 Glendale, California Certificates of Participation, (Police Building Project) Series 2000, (Morgan Guaranty Trust SBPA), 2.200% 06/01/30**........................ 13,100 9,700 Golden Gate Bridge Highway and Transportation District, 2.350% 02/12/02.......................... 9,700
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 4,500 Hayward, California Multi-Family Housing Revenue, (Timbers Apartments Project) Series 1998A, AMT, (Fannie Mae Liquidity Facility), 2.270% 03/01/33**...... $ 4,500 4,495 Indio, California Multi-Family Housing Revenue, (Western Federal Savings Project) Series 1985, (Wells Fargo and Company LOC), 2.400% 06/01/05**................. 4,495 2,500 Irvine Ranch, California Water District (Capital Improvement District No. 282 Project), Series 1988A, (Landesbank Hessen Thueringen LOC), 2.450% 11/15/13**........................ 2,500 1,400 Irvine Ranch, California Water District Certificates of Participation, (Capital Improvement Project) Series 1986, (Toronto Dominion Bank LOC), 2.450% 08/01/16**................. 1,400 3,285 Irvine Ranch, California Water District GO, (Capital Improvement District Project) Series 1989, (Toronto Dominion Bank LOC), 2.550% 06/01/15**................. 3,285 1,800 Irvine Ranch, California Water District GO, Series 1988A, (Landesbank Hessen-Thueringen LOC), 2.450% 11/15/13**........... 1,800 3,500 Irvine Ranch, California Water District GO, Series 1988A, (Landesbank Hessen-Thueringen LOC), 2.450% 11/15/13**........... 3,500 9,700 Irvine Ranch, California Water District GO, Series 1995, (Commerzbank A.G. LOC), 2.450% 01/01/21**........................ 9,700 2,600 Irvine Ranch, California Water District Revenue, Series 1985, (Landesbank Hessen-Thueringen LOC), 2.500% 10/01/05**........... 2,600 1,800 Irvine Ranch, California Water District Revenue, Series 1985, (Landesbank Hessen-Thueringen LOC), 2.500% 10/01/10**........... 1,800 2,300 Irvine Ranch, California Water District Revenue, Series 1991, (Toronto Dominion Bank LOC), 2.500% 08/01/16**................. 2,300 10,256 Irvine, California Revenue Improvement Bond Act of 1915, (Assessment District No. 87-8 Project) Series 1999, (KBC Bank N.V. LOC), 2.500% 09/02/24**...... 10,256 1,600 Irvine, California Revenue Improvement Bond Act of 1915, (Assessment District No. 97 Project) Series 1997-16, (Societe Generale LOC), 2.500% 09/02/22**........................ 1,600
SEE NOTES TO FINANCIAL STATEMENTS. 33 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 6,000 Irvine, California Revenue Improvement Bond Act of 1915, (Assessment District No. 97-17 Project) Series 1998, (Bayerische Hypo-Und Vereinsbank LOC), 2.500% 09/02/23**........................ $ 6,000 13,000 Long Beach, California GO, 2.230% 05/15/15**##(--).................. 13,000 1,060 Long Beach, California Harbor Revenue, Series 2000PA-651, AMT, (FGIC Insured, Merrill Lynch Liquidity Facility), 2.150% 05/15/19**##(--).................. 1,060 9,995 Long Beach, California Municipal Securities Trust Receipts Revenue, Series 1998CMC-1, 2.400% 05/15/07**##(--).................. 9,995 15,000 Los Angeles County, California Capital Asset Lease Corporation, 2.150% 02/11/02................... 15,000 4,000 Los Angeles County, California Certificates of Participation, (Schools Pooled Financing Project) Series 2000B, 5.000% 10/02/01..... 4,000 16,170 Los Angeles County, California Metropolitan Transportation Authority Revenue, Series 1996SGB-3, (FSA Insured, Societe Generale Liquidity Facility), 2.130% 07/01/16**#................ 16,170 15,320 Los Angeles County, California Metropolitan Authority Sales Tax Revenue, Series 1996, (MBIA Insured, Societe Generale Liquidity Facility), 2.080% 07/01/18**##(--).................. 15,320 13,240 Los Angeles County, California Pension Obligation Revenue Refunding, Series 1996B, (AMBAC Insured, Dexia Credit Local de France SBPA), 2.200% 06/30/07**... 13,240 4,600 Los Angeles County, California Pension Obligation Revenue Refunding, Series 1996C, (AMBAC Insured, Bank of Nova Scotia SBPA), 2.200% 06/30/07**.......... 4,600 30,000 Los Angeles County, California Schools Pooled Financing Program Participation Certificates GO, Series 2001A, (FSA Insured), 3.500% 07/01/02................... 30,179 5,300 Los Angeles County, California Transportation Commission Sales Tax Revenue Refunding, Series 1992A, (FGIC Insured, Bayerische Landesbank SBPA), 2.200% 07/01/12**........................ 5,300 15,000 Los Angeles, California GO, TRAN, 3.500% 06/28/02................... 15,103
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,865 Los Angeles, California Industrial Development Authority IDR, (Delta Tau Data Systems, Inc. Project) Series 1998, AMT, (City National Bank LOC, California State Teachers Retirement LOC), 2.050% 08/01/23**........................ $ 1,865 4,500 Los Angeles, California Multi-Family Housing Revenue, (Fountain Park Phase II Project) Series 2000B, 2.300% 03/15/34**................. 4,500 22,100 Los Angeles, California Multi-Family Housing Revenue, (Fountain Park Project) Series 1999P, AMT, 2.300% 04/15/33**........................ 22,100 10,000 Los Angeles, California Wastewater Systems Revenue, Series 1996SGA-26, (MBIA Insured, Societe Generale SBPA), 2.300% 06/01/24**##(--).................. 10,000 18,900 Los Angeles, California Wastewater Systems, 2.500% 10/09/01.......... 18,900 4,500 Los Angeles, California Wastewater Systems, 2.550% 11/08/01.......... 4,500 10,200 Los Angeles, California Water & Power Revenue, Series 2001B-2, (Westdeutche Landesbank Girozentrale SBPA, State Street Bank SBPA), 2.350% 07/01/34**..... 10,200 30,000 Los Angeles, California Water and Power Revenue, Series 2001B-3, (Westdeutsche Landesbank Girozentrale SBPA, State Street Bank SBPA), 2.350% 07/01/34**..... 30,000 11,300 Metropolitan Water District of Southern California Waterworks Revenue, Series 2000B-1, (Westdeutsche Landesbank SBPA) 2.450% 07/01/35**................. 11,300 7,500 Oakland-Alameda County, California Coliseum Authority Lease Revenue, (Coliseum Project) Series 2000C-2, (Canadian Imperial Bank LOC, California State Teachers Retirement LOC), 2.200% 02/01/25**........................ 7,500 6,000 Oceanside, California Multi-Family Revenue, (Riverview Springs Project) Series 1990A, (Bank One Arizona, N.A. LOC), 2.270% 07/01/20**........................ 6,000 31,000 Orange County, California Apartment Development Revenue, (Bear Brand Apartments Project) Series 1985Z, (KBC Bank N.V. LOC), 2.250% 11/01/07**........................ 31,000
SEE NOTES TO FINANCIAL STATEMENTS. 34 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 26,700 Orange County, California Housing Authority Apartment Development Revenue Refunding, (Oasis Martinique Project) Series 1998I, (FNMA Collateral Agreement), 2.200% 06/15/28**................. $ 26,700 8,000 Orange County, California Local Transit Authority, 2.500% 10/09/01.......................... 8,000 4,200 Orange County, California Sanitation Districts Certificates of Participation, Series 1993, (AMBAC Insured, Societe Generale LOC), 2.500% 08/01/16**................. 4,200 4,000 Orange County, California Sanitation Districts Certificates of Participation, Series 2000A, (Dexia Public Finance Bank SBPA), 2.500% 08/01/29**................. 4,000 1,000 Orange County, California Sanitation Districts Certificates of Participation, Series 2000B, (Dexia Public Finance Bank SBPA), 2.500% 08/01/30**................. 1,000 8,076 Orange County, California Special Assessment Improvement Bond, (Assessment District No. 88 Project) Series 1988-1, (Societe Generale LOC, KBC Bank N.V. LOC), 2.550% 09/02/18**................. 8,076 13,000 Orange County, California Special Financing Authority Revenue, Series 1995B, (AMBAC Insured, First Union National Bank SBPA), 2.000% 11/01/14**................. 13,000 8,700 Orange County, California Special Financing Authority Revenue, Series 1995C, (AMBAC Insured, First Union National Bank SBPA), 2.000% 11/01/14**................. 8,700 23,200 Orange County, California Special Financing Authority Revenue, Series 1995C, (AMBAC Insured, First Union National Bank SBPA), 2.000% 11/01/14**................. 23,200 17,400 Orange County, California Special Financing Authority Revenue, Series 1995D, (AMBAC Insured, First Union National Bank SBPA), 2.000% 11/01/14**................. 17,400 1,100 Orange County, California, Water District Certificates of Participation, Series 1990B, (Bayerische Landesbank LOC), 2.550% 08/15/15**................. 1,100
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 1,145 Paramount, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Project) Series 1997, (FSA Insured, National Westminster Bank SBPA), 2.350% 09/01/08**........................ $ 1,145 1,925 Paramount, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Project) Series 1997, (FSA Insured, National Westminster Bank SBPA), 2.350% 09/01/15**........................ 1,925 1,940 Paramount, California Unified School District Certificates of Participation, (School Facilities Bridge Funding Project) Series 1997, (FSA Insured, National Westminster Bank SBPA), 2.350% 09/01/27**........................ 1,940 6,000 Regents of the University of California, 2.550% 11/08/01....... 6,000 3,000 Regents of the University of California, 2.150% 02/08/02....... 3,000 3,000 Regents of the University of California, 2.400% 02/12/02....... 3,000 15,000 Riverside County, California, 2.100% 01/10/02.......................... 15,000 1,600 Riverside, California Electric Revenue, Series 1998, (AMBAC Insured, Chase Manhattan Bank Liquidity Facility), 2.350% 10/01/11**##(--).................. 1,600 30,000 Riverside-San Bernardino, California Housing and Finance Agency Lease Revenue, Series 2001A, (Societe Generale SBPA), 2.350% 07/01/06**##...................... 30,000 4,500 Sacramento County, California Housing Authority Multi-Family Housing Revenue, (California Place Apartments Project) Series 2001B, (FNMA Collateral Agreement), 2.270% 02/15/31**................. 4,500 5,100 Sacramento County, California Multi- Family Housing Revenue, Series 1985B, (Bank One Arizona, N.A. LOC), 2.200% 04/15/07**........... 5,100 15,000 Sacramento County, California TRAN, Series 2000, 5.000% 10/04/01...... 15,001 1,000 Sacramento County, California TRAN, Series 2000, 5.250% 10/04/01...... 1,000 2,700 San Bernardino County, California Certificates of Participation, (County Center Refinancing Project) Series 1996, (Commerzbank AG LOC), 2.250% 07/01/15**........ 2,700 30,000 San Diego County and School District, TRAN, 3.500% 06/28/02... 30,184
SEE NOTES TO FINANCIAL STATEMENTS. 35 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 23,730 San Diego, California Area Housing and Financing Agency Lease Revenue, Series 2001, (Societe Generale SBPA), 2.300% 06/01/06**##(--).................. $ 23,730 17,710 San Diego, California Housing Authority Multi-Family Housing Revenue, Series 2000, 2.130% 04/01/26**##(--).................. 17,710 18,515 San Diego, California Unified School District TRAN, Series 2000A, 5.250% 10/04/01................... 18,517 5,900 San Francisco Bay Area, California Toll Bridge Revenue, (San Francisco Bay Area Project) Series 2001A, (AMBAC Insured, Bayerische Landesbank SBPA), 2.500% 04/01/36**........................ 5,900 14,300 San Francisco City and County, California Airport Commission International Airport Revenue, Municipal Trust Receipts, Series 1997SGA-50, AMT, (MBIA Insured, Societe Generale SBPA), 2.300% 05/01/16**##(--).................. 14,300 10,500 San Francisco City and County, California Airport Commission International Airport Revenue, Series 1996, 2.130% 05/01/21**##(--).................. 10,500 3,900 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (Bayside Village Project) Series 1985B, (Bank One Arizona, N.A. LOC), 1.890% 12/01/05**........... 3,900 8,025 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (Maria Manor Apartments Project) Series 2000F, (Citibank, N.A. LOC), 2.350% 12/01/33**........... 8,025 16,640 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (Notre Dame Apartments Project) Series 2000G, (Citibank, N.A. LOC), 2.350% 12/01/33**........... 16,640 8,900 San Francisco City and County, California Redevelopment Agency Multi-Family Housing Revenue, (South Harbor Project) Series 1986, (Credit Local De France LOC), 2.450% 12/01/16**........... 8,900 10,050 San Jose, California International Airport, 2.600% 10/12/01.......... 10,050 12,700 San Jose, California International Airport, 2.650% 10/12/01.......... 12,700
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ CALIFORNIA -- (CONTINUED) $ 4,800 Santa Ana, California Health Facilities Revenue, (Town and Country Project) Series 1990, (Banque Nationale de Paris LOC), 2.600% 10/01/20**................. $ 4,800 36,610 South Coast, California Local Education Agencies, TRAN, (GO of Participants), 3.250% 06/28/02.... 36,774 20,600 Southern California Public Power Authority Transmission Revenue, (Southern Transmission Project) Series 1991, (AMBAC Insured, Barclays Bank plc LOC), 2.200% 07/01/19**........................ 20,600 4,030 Southern Kern, California Unified School District Certificates of Participation, (Building Program) Series 1998A, (FSA Insured, First Union National Bank SBPA), 2.350% 09/01/26**........................ 4,030 13,400 Stainislaus, California Waste-to-Energy Financing Agency Solid Waste Facilities, (Ogden Martin System Project) Series 2000, (MBIA Insured, Morgan Guaranty Trust SBPA), 2.150% 01/01/10**........................ 13,400 5,900 Sweetwater, California Unified High School District Certificate of Participation, Series 2001, (FSA Insured, First Union National Bank SBPA), 2.350% 06/01/13**.......... 5,900 2,100 Turlock, California IRR District Certificates of Participation Revenue Refunding, Series 2001, (Societe Generale LOC), 2.550% 01/01/31**........................ 2,100 17,566 Tustin, California Improvement Bond Act of 1915, (Reassessment District No. 95-2 Project) Series 1996A, (KBC Bank N.V. LOC), 2.500% 09/02/13**........................ 17,566 8,300 Vacaville, California Multi-Family Mortgage Revenue, Series 1988, 2.200% 07/15/18**................. 8,300 2,700 Vallecitos, California Water District Water Revenue, Certificates of Participation, (Oaks Reservoir Project) Series 1998, (Credit Local de France LOC), 2.250% 07/01/30**........... 2,700 15,900 Ventura County, California Public Financing Authority Revenue, 2.500% 02/08/02................... 15,900 ---------- 1,464,764 ----------
SEE NOTES TO FINANCIAL STATEMENTS. 36 NATIONS RESERVES MONEY MARKET FUNDS Nations California Tax-Exempt Reserves STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2001 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000) (000) ------------------------------------------------------------ PUERTO RICO -- 7.9% $ 8,505 Puerto Rico Commonwealth Highway and Transportation Authority Revenue, (AMBAC Insured, Merrill Lynch Liquidity Facility), 2.750% 01/01/19**(--).................... $ 8,505 21,330 Puerto Rico Commonwealth Infrastructure Financing Authority, Series 2000-2, (Toronto-Dominion Bank Liquidity Facility), 2.200% 10/01/32**##(--).................. 21,330 5,000 Puerto Rico Commonwealth Infrastructure Financing Authority, Series 2001, 2.730% 07/01/27**(--).................... 5,000 9,000 Puerto Rico Infrastructure Financing Authority, 2.130% 10/01/34**##(--).................. 9,000 9,725 Puerto Rico Infrastructure Financing Authority, 2.130% 10/01/34**##(--).................. 9,725 8,000 Puerto Rico, 2.200% 10/10/01........ 8,000 17,885 Puerto Rico, 2.150% 10/11/01........ 17,885 15,775 Puerto Rico, 2.000% 10/15/01........ 15,775 12,744 Puerto Rico, 2.150% 10/17/01........ 12,744 14,089 Puerto Rico, 2.200% 10/22/01........ 14,089 12,203 Puerto Rico, 1.900% 10/30/01........ 12,203 ---------- 134,256 ---------- TOTAL MUNICIPAL BONDS AND NOTES (Cost $1,599,020)................. 1,599,020 ----------
VALUE (000) -------------------------------------------------------------- TOTAL INVESTMENTS (Cost $1,599,020*)................ 93.8% 1,599,020 ---------- OTHER ASSETS AND LIABILITIES (NET)....................... 6.2% Cash.................................. $ 1,656 Receivable for investment securities sold................................ 165,095 Receivable for Fund shares sold....... 13,701 Interest receivable................... 7,461 Payable for Fund shares redeemed...... (6,581) Investment advisory fee payable....... (212) Administration fee payable............ (44) Shareholder servicing and distribution fees payable........................ (711) Distributions payable................. (2,197) Payable for investment securities purchased........................... (72,596) Accrued Trustees' fees and expenses... (40) Accrued expenses and other liabilities......................... (218) ---------- TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 105,314 ---------- NET ASSETS.................... 100.0% $1,704,334 ==========
VALUE (000) -------------------------------------------------------------- NET ASSETS CONSIST OF: Undistributed net investment income... $ 58 Accumulated net realized gain on investments sold.................... 97 Paid-in capital....................... 1,704,179 ---------- NET ASSETS............................ $1,704,334 ========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE CAPITAL CLASS SHARES: ($25,015,320 / 25,015,200 shares outstanding)........................ $1.00 ========== TRUST CLASS SHARES: ($305,245,490 / 305,237,179 shares outstanding)........................ $1.00 ========== LIQUIDITY CLASS SHARES: ($2,721,017 / 2,720,837 shares outstanding)........................ $1.00 ========== ADVISER CLASS SHARES: ($289,401,096 / 289,352,985 shares outstanding)........................ $1.00 ========== INVESTOR CLASS SHARES: ($283,301,049 / 283,304,395 shares outstanding)........................ $1.00 ========== DAILY CLASS SHARES: ($798,649,475 / 798,611,383 shares outstanding)........................ $1.00 ==========
--------------- * Aggregate cost for federal tax purposes. ** Variable rate demand notes. The interest rate shown reflects the rate in effect at September 30, 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. Nations California Tax-Exempt Reserves had the following industry concentrations greater than 10% at September 30, 2001 (as a percentage of net assets): Housing Revenue 21.17% Education Revenue 15.37%
SEE NOTES TO FINANCIAL STATEMENTS. 37 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) For the six months ended September 30, 2001 CASH MONEY MARKET RESERVES RESERVES ---------------------------------------------- (IN THOUSANDS) INVESTMENT INCOME: Interest.................................................... $ 1,235,155 $ 246,657 ------------------- ------------------- EXPENSES: Investment advisory fee..................................... 43,141 8,765 Administration fee.......................................... 28,761 5,843 Transfer agent fees......................................... 879 186 Custodian fees.............................................. 1,477 318 Trustees' fees and expenses................................. 17 17 Registration and filing fees................................ 3,868 778 Legal and audit fees........................................ 101 42 Interest expense............................................ -- -- Printing expense............................................ 484 61 Other....................................................... 326 72 ------------------- ------------------- Subtotal................................................ 79,054 16,082 Shareholder servicing and distribution fees: Trust Class Shares........................................ 1,167 69 Institutional Class Shares................................ 197 78 Liquidity Class Shares.................................... 7,069 2,818 Adviser Class Shares...................................... 8,268 893 Investor Class Shares..................................... 11,382 171 Market Class Shares....................................... 7,697 3,108 Daily Class Shares........................................ 43,786 20 Service Class Shares...................................... 4,969 1,028 Investor B Shares......................................... 169 42 Investor C Shares......................................... 8 2 ------------------- ------------------- Total expenses.......................................... 163,766 24,311 Fees waived by investment advisor, administrator and/or distributor............................................... (27,543) (6,750) Fees reduced by credits allowed by the custodian............ (31) (18) ------------------- ------------------- Net expenses............................................ 136,192 17,543 ------------------- ------------------- NET INVESTMENT INCOME/(LOSS)................................ 1,098,963 229,114 ------------------- ------------------- Net realized gain/(loss) on investments..................... 4,171 2,913 ------------------- ------------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 1,103,134 $ 232,027 =================== ===================
--------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 38 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED) TREASURY GOVERNMENT MUNICIPAL CALIFORNIA TAX- RESERVES RESERVES RESERVES EXEMPT RESERVES ---------------------------------------------------------------------------------------------------------------- $ 171,241 $ 86,457 $ 29,264 $ 22,425 ------------------- ------------------- ------------------- ------------------- 6,278 3,115 1,504 1,240 4,185 2,077 1,003 827 136 61 26 24 252 116 49 51 17 17 17 17 380 461 96 --* 39 31 29 30 -- -- -- -- 60 53 109 92 80 31 25 17 ------------------- ------------------- ------------------- ------------------- 11,427 5,962 2,858 2,298 262 146 254 161 14 35 2 --* 1,589 1,324 236 4 2,551 1,222 203 401 1,303 702 112 431 3,066 1,104 382 -- 3,292 809 1,954 2,282 1,725 144 169 -- 1 7 --* --* -- --* -- -- ------------------- ------------------- ------------------- ------------------- 25,230 11,455 6,170 5,577 (4,377) (2,879) (1,047) (646) (4) (19) -- -- ------------------- ------------------- ------------------- ------------------- 20,849 8,557 5,123 4,931 ------------------- ------------------- ------------------- ------------------- 150,392 77,900 24,141 17,494 ------------------- ------------------- ------------------- ------------------- 427 201 89 12 ------------------- ------------------- ------------------- ------------------- $ 150,819 $ 78,101 $ 24,230 $ 17,506 =================== =================== =================== ===================
SEE NOTES TO FINANCIAL STATEMENTS. 39 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS CASH RESERVES ----------------------------------- SIX MONTHS ENDED 9/30/01 YEAR ENDED (UNAUDITED) 3/31/01 ----------------------------------- (IN THOUSANDS) Net investment income/(loss)................................ $ 1,098,963 $ 2,640,641 Net realized gain/(loss) on investments..................... 4,171 179 -------------- -------------- Net increase/(decrease) in net assets resulting from operations................................................ 1,103,134 2,640,820 Distributions to shareholders from net investment income: Capital Class Shares...................................... (415,188) (787,904) Institutional Class Shares................................ (19,502) (7,119) Trust Class Shares........................................ (47,213) (120,416) Liquidity Class Shares.................................... (32,726) (94,937) Adviser Class Shares...................................... (126,637) (297,847) Investor Class Shares..................................... (123,416) (452,859) Market Class Shares....................................... (62,207) (176,826) Daily Class Shares........................................ (256,374) (665,980) Service Class Shares...................................... (15,270) (36,085) Investor B Shares......................................... (455) (636) Investor C Shares......................................... (21) (34) Net increase/(decrease) in net assets from shares of beneficial interest transactions.......................... 5,155,959 20,581,223 -------------- -------------- Net increase/(decrease) in net assets....................... 5,160,084 20,581,400 NET ASSETS: Beginning of period......................................... 57,242,076 36,660,676 -------------- -------------- End of period............................................... $ 62,402,160 $ 57,242,076 ============== ============== Undistributed net investment income/(loss)/(distributions in excess of net investment income) at end of period......... $ (21) $ 25 ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 40 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) MONEY MARKET RESERVES TREASURY RESERVES ------------------------------------- ----------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED 9/30/01 YEAR ENDED 9/30/01 YEAR ENDED (UNAUDITED) 3/31/01 (UNAUDITED) 3/31/01 --------------------------------------------------------------------------------------- $ 229,114 $ 502,505 $ 150,392 $ 433,793 2,913 (12) 427 94 -------------- -------------- -------------- -------------- 232,027 502,493 150,819 433,887 (162,251) (334,604) (35,979) (83,062) (7,719) (4,332) (1,287) (608) (2,584) (2,106) (9,500) (26,997) (13,203) (33,375) (6,667) (26,244) (13,395) (37,269) (37,126) (94,314) (1,794) (1,952) (13,221) (56,909) (24,800) (80,338) (23,596) (81,182) (108) (265) (18,021) (50,590) (3,153) (8,122) (4,997) (13,878) (111) (140) (4) (9) (4) (2) -- -- 941,773 3,382,151 925,183 1,372,723 -------------- -------------- -------------- -------------- 944,678 3,382,139 925,604 1,372,817 10,054,397 6,672,258 7,908,650 6,535,833 -------------- -------------- -------------- -------------- $ 10,999,075 $ 10,054,397 $ 8,834,254 $ 7,908,650 ============== ============== ============== ============== $ 20 $ 28 $ (6) $ -- ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 41 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) GOVERNMENT RESERVES ----------------------------------- SIX MONTHS ENDED 9/30/01 YEAR ENDED (UNAUDITED) 3/31/01 ----------------------------------- (IN THOUSANDS) Net investment income/(loss)................................ $ 77,900 $ 145,186 Net realized gain/(loss) on investments..................... 201 114 -------------- -------------- Net increase/(decrease) in net assets resulting from operations................................................ 78,101 145,300 Distributions to shareholders from net investment income: Capital Class Shares...................................... (23,621) (32,120) Institutional Class Shares................................ (3,549) (2,298) Trust Class Shares........................................ (5,525) (8,678) Liquidity Class Shares.................................... (6,263) (21,965) Adviser Class Shares...................................... (18,188) (32,013) Investor Class Shares..................................... (7,145) (9,210) Market Class Shares....................................... (8,621) (25,362) Daily Class Shares........................................ (4,552) (12,508) Service Class Shares...................................... (423) (1,004) Investor B Shares......................................... (16) (17) Investor C Shares......................................... (1) (11) Net increase/(decrease) in net assets from shares of beneficial interest transactions.......................... 1,308,911 2,311,982 -------------- -------------- Net increase/(decrease) in net assets....................... 1,309,108 2,312,096 NET ASSETS Beginning of period......................................... 4,100,585 1,788,489 -------------- -------------- End of period............................................... $ 5,409,693 $ 4,100,585 ============== ============== Undistributed net investment income/(loss)/(distributions in excess of net investment income) at end of period......... $ (4) $ -- ============== ==============
--------------- * Amount represents less than $500. SEE NOTES TO FINANCIAL STATEMENTS. 42 NATIONS RESERVES MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) MUNICIPAL RESERVES CALIFORNIA TAX-EXEMPT RESERVES ------------------------------------------------------------------------------------ SIX MONTHS SIX MONTHS ENDED ENDED 9/30/01 YEAR ENDED 9/30/01 YEAR ENDED (UNAUDITED) 3/31/01 (UNAUDITED) 3/31/01 ------------------------------------------------------------------ $ 24,141 $ 55,631 $ 17,494 $ 52,734 89 5 12 227 -------------- -------------- -------------- -------------- 24,230 55,636 17,506 52,961 (4,530) (7,021) (28) (1) (130) (338) (1) --* (6,721) (17,950) (3,894) (11,192) (740) (2,369) (9) -- (2,029) (3,604) (3,603) (14,676) (762) (2,012) (2,641) (7,990) (1,961) (5,638) -- -- (7,025) (16,473) (7,317) (18,878) (242) (223) -- -- (1) (3) --* --* -- --* -- -- 417,932 95,282 63,563 (98,352) -------------- -------------- -------------- -------------- 418,021 95,287 63,576 (98,128) 1,605,889 1,510,602 1,640,758 1,738,886 -------------- -------------- -------------- -------------- $ 2,023,910 $ 1,605,889 $ 1,704,334 $ 1,640,758 ============== ============== ============== ============== $ -- $ -- $ 58 $ 57 ============== ============== ============== ==============
SEE NOTES TO FINANCIAL STATEMENTS. 43 NATIONS RESERVES MONEY MARKET FUNDS STATEMENT OF CASH FLOWS (UNAUDITED) For the six months ended September 30, 2001
TREASURY RESERVES (000) ----------------------------- CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES: Investment income received................................ $ 144,043 Payment of operating expenses............................. (20,701) Net increase from reverse repurchase agreements outstanding............................................. (1,577,746) Net purchases of short-term investments................... 668,291 ------------ Cash used by operating and investing activities............. $ (786,113) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Fund shares sold............................ 42,493,972 Payment for shares redeemed............................... (41,629,185) Distributions paid*....................................... (78,313) ------------ Cash provided by financing activities....................... 786,474 ------------ Increase in cash.......................................... $ 361 Cash at beginning of year................................. -- ------------ Cash at end of year....................................... $ 361 ============ 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........ $ 150,819 Increase in investments................................... $ 666,749 Increase in payable for reverse repurchase agreement transactions............................................ (1,577,746) Decrease in interest and dividends receivable............. (18,674) Decrease in receivable for investments sold............... (4,559,030) Increase in payable for investments purchased............. 4,551,621 Decrease in accrued expenses and other payables........... 148 ------------ $(936,932.00) Cash used by operating and investing activities............. $ (786,113) ============
--------------- * Non-cash activities include reinvestment of dividends of $68,158. SEE NOTES TO FINANCIAL STATEMENTS. 44 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY*
CASH RESERVES SIX MONTHS ENDED SEPTEMBER 30, 2001 YEAR ENDED (UNAUDITED) MARCH 31, 2001 ------------------------------------ (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 159,929,665 $ 224,817,118 Issued as reinvestment of dividends........................ 140,302 432,286 Redeemed................................................... (154,725,216) (213,854,542) ------------- ------------- Net increase/(decrease).................................... $ 5,344,751 $ 11,394,862 ============= ============= INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 6,152,726 $ 3,302,294 Issued as reinvestment of dividends........................ 6,932 3,832 Redeemed................................................... (5,120,184) (2,655,011) ------------- ------------- Net increase/(decrease).................................... $ 1,039,474 $ 651,115 ============= ============= TRUST CLASS SHARES: Sold....................................................... $ 3,896,707 $ 4,283,411 Issued as reinvestment of dividends........................ 9 -- Redeemed................................................... (4,349,912) (3,326,358) ------------- ------------- Net increase/(decrease).................................... $ (453,196) $ 957,053 ============= ============= LIQUIDITY CLASS SHARES: Sold....................................................... $ 7,791,432 $ 19,973,701 Issued as reinvestment of dividends........................ 24,366 60,897 Redeemed................................................... (7,696,451) (19,954,688) ------------- ------------- Net increase/(decrease).................................... $ 119,347 $ 79,910 ============= ============= ADVISER CLASS SHARES: Sold....................................................... $ 40,259,279 $ 73,152,129 Issued as reinvestment of dividends........................ 73,254 212,506 Redeemed................................................... (39,327,369) (72,205,837) ------------- ------------- Net increase/(decrease).................................... $ 1,005,164 $ 1,158,798 ============= ============= INVESTOR CLASS SHARES: Sold....................................................... $ 3,068,509 $ 8,913,169 Issued as reinvestment of dividends........................ 104,061 441,418 Redeemed................................................... (4,732,274) (8,836,908) ------------- ------------- Net increase/(decrease).................................... $ (1,559,704) $ 517,679 ============= ============= MARKET CLASS SHARES: Sold....................................................... $ 2,476,755 $ 7,564,823 Issued as reinvestment of dividends........................ 481 723 Redeemed................................................... (2,257,273) (7,001,677) ------------- ------------- Net increase/(decrease).................................... $ 219,963 $ 563,869 ============= ============= DAILY CLASS SHARES: Sold....................................................... $ 49,821,649 $ 92,735,162 Issued as reinvestment of dividends........................ 217,830 647,774 Redeemed................................................... (50,719,799) (88,546,095) ------------- ------------- Net increase/(decrease).................................... $ (680,320) $ 4,836,841 ============= ============= SERVICE CLASS SHARES: Sold....................................................... $ 8,011,527 $ 12,714,469 Issued as reinvestment of dividends........................ 6,666 19,635 Redeemed................................................... (7,913,750) (12,332,913) ------------- ------------- Net increase/(decrease).................................... $ 104,443 $ 401,191 ============= ============= INVESTOR B SHARES: Sold....................................................... $ 29,443 $ 35,425 Issued as reinvestment of dividends........................ 349 570 Redeemed................................................... (14,111) (17,462) ------------- ------------- Net increase/(decrease).................................... $ 15,681 $ 18,533 ============= ============= INVESTOR C SHARES: Sold....................................................... $ 4,328 $ 7,715 Issued as reinvestment of dividends........................ 14 24 Redeemed................................................... (3,986) (6,367) ------------- ------------- Net increase/(decrease).................................... $ 356 $ 1,372 ============= ============= Total net increase/(decrease).............................. $ 5,155,959 $ 20,581,223 ============= =============
--------------- * 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 Shares commenced operations on November 30, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 45 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
MONEY MARKET RESERVES SIX MONTHS ENDED SEPTEMBER 30, 2001 YEAR ENDED (UNAUDITED) MARCH 31, 2001 ------------------------------------ (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 45,269,503 $ 69,865,549 Issued as reinvestment of dividends........................ 81,778 217,545 Redeemed................................................... (44,078,988) (68,044,184) ------------ ------------ Net increase/(decrease).................................... $ 1,272,293 $ 2,038,910 ============ ============ INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 1,658,277 $ 1,895,717 Issued as reinvestment of dividends........................ 3,294 2,531 Redeemed................................................... (1,725,427) (1,323,280) ------------ ------------ Net increase/(decrease).................................... $ (63,856) $ 574,968 ============ ============ TRUST CLASS SHARES: Sold....................................................... $ 699,827 $ 483,126 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (638,279) (415,743) ------------ ------------ Net increase/(decrease).................................... $ 61,548 $ 67,383 ============ ============ LIQUIDITY CLASS SHARES: Sold....................................................... $ 2,936,154 $ 6,067,482 Issued as reinvestment of dividends........................ 10,391 29,147 Redeemed................................................... (3,519,854) (5,957,552) ------------ ------------ Net increase/(decrease).................................... $ (573,309) $ 139,077 ============ ============ ADVISER CLASS SHARES: Sold....................................................... $ 2,992,286 $ 6,130,144 Issued as reinvestment of dividends........................ 9,082 33,199 Redeemed................................................... (2,843,610) (6,094,892) ------------ ------------ Net increase/(decrease).................................... $ 157,758 $ 68,451 ============ ============ INVESTOR CLASS SHARES: Sold....................................................... $ 46,938 $ 129,285 Issued as reinvestment of dividends........................ -** 76 Redeemed................................................... (40,754) (38,983) ------------ ------------ Net increase/(decrease).................................... $ 6,184 $ 90,378 ============ ============ MARKET CLASS SHARES: Sold....................................................... $ 1,211,000 $ 3,301,063 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (1,116,500) (3,029,063) ------------ ------------ Net increase/(decrease).................................... $ 94,500 $ 272,000 ============ ============ DAILY CLASS SHARES: Sold....................................................... $ 24,170 $ 17,017 Issued as reinvestment of dividends........................ 86 264 Redeemed................................................... (21,756) (14,245) ------------ ------------ Net increase/(decrease).................................... $ 2,500 $ 3,036 ============ ============ SERVICE CLASS SHARES: Sold....................................................... $ 586,415 $ 1,136,946 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (605,837) (1,014,286) ------------ ------------ Net increase/(decrease).................................... $ (19,422) $ 122,660 ============ ============ INVESTOR B SHARES: Sold....................................................... $ 6,260 $ 9,053 Issued as reinvestment of dividends........................ 87 121 Redeemed................................................... (2,671) (4,207) ------------ ------------ Net increase/(decrease).................................... $ 3,676 $ 4,967 ============ ============ INVESTOR C SHARES: Sold....................................................... $ 134 $ 1,102 Issued as reinvestment of dividends........................ 3 1 Redeemed................................................... (236) (782) ------------ ------------ Net increase/(decrease).................................... $ (99) $ 321 ============ ============ Total net increase/(decrease).............................. $ 941,773 $ 3,382,151 ============ ============
--------------- * 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. ** Amount represents less than 500 shares and/or $500, as applicable. + Money Market Reserves Institutional Class Shares commenced operations on November 17, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 46 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
TREASURY RESERVES SIX MONTHS ENDED SEPTEMBER 30, 2001 YEAR ENDED (UNAUDITED) MARCH 31, 2001 ------------------------------------ (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 4,957,533 $ 14,347,176 Issued as reinvestment of dividends........................ 19,903 52,817 Redeemed................................................... (5,445,898) (13,526,386) ------------ ------------ Net increase/(decrease).................................... $ (468,462) $ 873,607 ============ ============ INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 781,451 $ 149,929 Issued as reinvestment of dividends........................ 887 444 Redeemed................................................... (766,216) (120,801) ------------ ------------ Net increase/(decrease).................................... $ 16,122 $ 29,572 ============ ============ TRUST CLASS SHARES: Sold....................................................... $ 2,172,168 $ 2,934,101 Issued as reinvestment of dividends........................ 5 -- Redeemed................................................... (1,150,632) (3,124,592) ------------ ------------ Net increase/(decrease).................................... $ 1,021,541 $ (190,491) ============ ============ LIQUIDITY CLASS SHARES: Sold....................................................... $ 819,759 $ 3,539,636 Issued as reinvestment of dividends........................ 4,135 16,337 Redeemed................................................... (800,678) (3,571,889) ------------ ------------ Net increase/(decrease).................................... $ 23,216 $ (15,916) ============ ============ ADVISER CLASS SHARES: Sold....................................................... $ 16,889,732 $ 31,384,727 Issued as reinvestment of dividends........................ 18,657 59,423 Redeemed................................................... (16,757,276) (30,986,538) ------------ ------------ Net increase/(decrease).................................... $ 151,113 $ 457,612 ============ ============ INVESTOR CLASS SHARES: Sold....................................................... $ 751,864 $ 2,687,355 Issued as reinvestment of dividends........................ 9,339 39,011 Redeemed................................................... (701,600) (2,599,436) ------------ ------------ Net increase/(decrease).................................... $ 59,603 $ 126,930 ============ ============ MARKET CLASS SHARES: Sold....................................................... $ 924,500 $ 3,861,000 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (981,500) (4,003,000) ------------ ------------ Net increase/(decrease).................................... $ (57,000) $ (142,000) ============ ============ DAILY CLASS SHARES: Sold....................................................... $ 11,895,133 $ 24,898,080 Issued as reinvestment of dividends........................ 13,444 44,119 Redeemed................................................... (11,747,236) (24,808,149) ------------ ------------ Net increase/(decrease).................................... $ 161,341 $ 134,050 ============ ============ SERVICE CLASS SHARES: Sold....................................................... $ 3,630,421 $ 5,344,186 Issued as reinvestment of dividends........................ 1,785 5,749 Redeemed................................................... (3,614,362) (5,250,733) ------------ ------------ Net increase/(decrease).................................... $ 17,844 $ 99,202 ============ ============ INVESTOR B SHARES: Sold....................................................... $ 88 $ 242 Issued as reinvestment of dividends........................ 3 9 Redeemed................................................... (226) (94) ------------ ------------ Net increase/(decrease).................................... $ (135) $ 157 ============ ============ Total net increase/(decrease).............................. $ 925,183 $ 1,372,723 ============ ============
--------------- * 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 Shares commenced operations on November 21, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 47 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
GOVERNMENT RESERVES SIX MONTHS ENDED SEPTEMBER 30, 2001 YEAR ENDED (UNAUDITED) MARCH 31, 2001 ------------------------------------ (IN THOUSANDS) CAPITAL CLASS SHARES: Sold....................................................... $ 4,663,111 $ 4,361,085 Issued as reinvestment of dividends........................ 17,805 27,059 Redeemed................................................... (3,601,999) (3,917,369) ----------- ----------- Net increase/(decrease).................................... $ 1,078,917 $ 470,775 =========== =========== INSTITUTIONAL CLASS SHARES:+ Sold....................................................... $ 567,388 $ 581,244 Issued as reinvestment of dividends........................ 1,397 1,402 Redeemed................................................... (553,212) (322,560) ----------- ----------- Net increase/(decrease).................................... $ 15,573 $ 260,086 =========== =========== TRUST CLASS SHARES: Sold....................................................... $ 293,466 $ 549,603 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (232,003) (452,348) ----------- ----------- Net increase/(decrease).................................... $ 61,463 $ 97,255 =========== =========== LIQUIDITY CLASS SHARES: Sold....................................................... $ 1,017,796 $ 2,519,862 Issued as reinvestment of dividends........................ 4,662 19,496 Redeemed................................................... (1,360,702) (2,211,622) ----------- ----------- Net increase/(decrease).................................... $ (338,244) $ 327,736 =========== =========== ADVISER CLASS SHARES: Sold....................................................... $ 1,816,092 $ 3,041,986 Issued as reinvestment of dividends........................ 15,217 30,143 Redeemed................................................... (2,008,938) (2,358,503) ----------- ----------- Net increase/(decrease).................................... $ (177,629) $ 713,626 =========== =========== INVESTOR CLASS SHARES: Sold....................................................... $ 1,219,807 $ 907,893 Issued as reinvestment of dividends........................ 5,911 8,719 Redeemed................................................... (597,121) (696,801) ----------- ----------- Net increase/(decrease).................................... $ 628,597 $ 219,811 =========== =========== MARKET CLASS SHARES: Sold....................................................... $ 581,175 $ 1,421,000 Issued as reinvestment of dividends........................ 5 -- Redeemed................................................... (562,680) (1,303,000) ----------- ----------- Net increase/(decrease).................................... $ 18,500 $ 118,000 =========== =========== DAILY CLASS SHARES: Sold....................................................... $ 99,652 $ 783,695 Issued as reinvestment of dividends........................ 3,959 12,508 Redeemed................................................... (91,528) (707,806) ----------- ----------- Net increase/(decrease).................................... $ 12,083 $ 88,397 =========== =========== SERVICE CLASS SHARES: Sold....................................................... $ 53,000 $ 129,689 Issued as reinvestment of dividends........................ -- -- Redeemed................................................... (44,000) (113,689) ----------- ----------- Net increase/(decrease).................................... $ 9,000 $ 16,000 =========== =========== INVESTOR B SHARES: Sold....................................................... $ 1,297 $ 1,561 Issued as reinvestment of dividends........................ 13 14 Redeemed................................................... (511) (693) ----------- ----------- Net increase/(decrease).................................... $ 799 $ 882 =========== =========== INVESTOR C SHARES: Sold....................................................... $ -- $ 206 Issued as reinvestment of dividends........................ --** 3 Redeemed................................................... (148) (795) ----------- ----------- Net increase/(decrease).................................... $ (148) $ (586) =========== =========== Total net increase/(decrease).............................. $ 1,308,911 $ 2,311,982 =========== ===========
--------------- * 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. ** Amount represents less than 500 shares and/or $500, as applicable. + Government Reserves Institutional Class Shares commenced operations on November 21, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 48 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
MUNICIPAL RESERVES SIX MONTHS ENDED SEPTEMBER 30, 2001 YEAR ENDED (UNAUDITED) MARCH 31, 2001 -------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES: Sold...................................................... $ 1,952,875 $ 2,016,784 Issued as reinvestment of dividends....................... 2,144 2,217 Redeemed.................................................. (1,722,299) (2,046,447) ----------- ----------- Net increase/(decrease)................................... $ 232,720 $ (27,446) =========== =========== INSTITUTIONAL CLASS SHARES:+ Sold...................................................... $ 58,787 $ 75,300 Issued as reinvestment of dividends....................... 1 310 Redeemed.................................................. (71,104) (59,494) ----------- ----------- Net increase/(decrease)................................... $ (12,316) $ 16,116 =========== =========== TRUST CLASS SHARES: Sold...................................................... $ 426,986 $ 818,929 Issued as reinvestment of dividends....................... 10 -- Redeemed.................................................. (409,138) (857,572) ----------- ----------- Net increase/(decrease)................................... $ 17,858 $ (38,643) =========== =========== LIQUIDITY CLASS SHARES: Sold...................................................... $ 94,097 $ 435,368 Issued as reinvestment of dividends....................... 657 2,310 Redeemed.................................................. (78,924) (491,159) ----------- ----------- Net increase/(decrease)................................... $ 15,830 $ (53,481) =========== =========== ADVISER CLASS SHARES: Sold...................................................... $ 310,019 $ 381,155 Issued as reinvestment of dividends....................... 1,708 3,502 Redeemed.................................................. (285,272) (332,362) ----------- ----------- Net increase/(decrease)................................... $ 26,455 $ 52,295 =========== =========== INVESTOR CLASS SHARES: Sold...................................................... $ 69,387 $ 91,839 Issued as reinvestment of dividends....................... 671 2,006 Redeemed.................................................. (74,934) (101,608) ----------- ----------- Net increase/(decrease)................................... $ (4,876) $ (7,763) =========== =========== MARKET CLASS SHARES: Sold...................................................... $ 311,023 $ 752,000 Issued as reinvestment of dividends....................... 4 -- Redeemed.................................................. (308,000) (732,000) ----------- ----------- Net increase/(decrease)................................... $ 3,027 $ 20,000 =========== =========== DAILY CLASS SHARES: Sold...................................................... $ 625,874 $ 834,130 Issued as reinvestment of dividends....................... 6,195 16,474 Redeemed.................................................. (570,676) (725,373) ----------- ----------- Net increase/(decrease)................................... $ 61,393 $ 125,231 =========== =========== SERVICE CLASS SHARES: Sold...................................................... $ 100,300 $ 37,600 Issued as reinvestment of dividends....................... -- -- Redeemed.................................................. (22,500) (28,600) ----------- ----------- Net increase/(decrease)................................... $ 77,800 $ 9,000 =========== =========== INVESTOR B SHARES: Sold...................................................... $ 41 $ 23 Issued as reinvestment of dividends....................... --** 2 Redeemed.................................................. -- (52) ----------- ----------- Net increase/(decrease)................................... $ 41 $ (27) =========== =========== Total net increase/(decrease)............................. $ 417,932 $ 95,282 =========== ===========
--------------- * 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. ** Amount represents less than 500 shares and/or $500, as applicable. + Municipal Reserves Institutional Class Shares commenced operations on November 21, 2000. SEE NOTES TO FINANCIAL STATEMENTS. 49 NATIONS RESERVES MONEY MARKET FUNDS SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
CALIFORNIA TAX-EXEMPT RESERVES SIX MONTHS ENDED SEPTEMBER 30, 2001 YEAR ENDED (UNAUDITED) MARCH 31, 2001 ----------------------------------- (IN THOUSANDS) CAPITAL CLASS SHARES:+ Sold...................................................... $ 36,306 $ 11,030 Issued as reinvestment of dividends....................... 10 -- Redeemed.................................................. (11,331) (11,000) ----------- ------------ Net increase/(decrease)................................... $ 24,985 $ 30 =========== ============ INSTITUTIONAL CLASS SHARES:+ Sold...................................................... $ 1 $ 1,000 Issued as reinvestment of dividends....................... -- -- Redeemed.................................................. (1,001) -- ----------- ------------ Net increase/(decrease)................................... $ (1,000) $ 1,000 =========== ============ TRUST CLASS SHARES: Sold...................................................... $ 280,520 $ 615,182 Issued as reinvestment of dividends....................... -- -- Redeemed.................................................. (314,077) (671,243) ----------- ------------ Net increase/(decrease)................................... $ (33,557) $ (56,061) =========== ============ LIQUIDITY CLASS SHARES:+ Sold...................................................... $ 5,750 $ -- Issued as reinvestment of dividends....................... 5 -- Redeemed.................................................. (3,034) -- ----------- ------------ Net increase/(decrease)................................... $ 2,721 $ -- =========== ============ ADVISER CLASS SHARES: Sold...................................................... $ 372,370 $ 1,190,750 Issued as reinvestment of dividends....................... 3,147 14,460 Redeemed.................................................. (404,857) (1,246,894) ----------- ------------ Net increase/(decrease)................................... $ (29,340) $ (41,684) =========== ============ INVESTOR CLASS SHARES: Sold...................................................... $ 270,534 $ 633,106 Issued as reinvestment of dividends....................... 2,264 7,989 Redeemed.................................................. (215,991) (698,674) ----------- ------------ Net increase/(decrease)................................... $ 56,807 $ (57,579) =========== ============ DAILY CLASS SHARES: Sold...................................................... $ 1,156,722 $ 1,070,113 Issued as reinvestment of dividends....................... 6,386 18,876 Redeemed.................................................. (1,120,097) (1,033,111) ----------- ------------ Net increase/(decrease)................................... $ 43,011 $ 55,878 =========== ============ INVESTOR B SHARES:+ Sold...................................................... $ -- $ 64 Issued as reinvestment of dividends....................... --** -- Redeemed.................................................. (64) -- ----------- ------------ Net increase/(decrease)................................... $ (64) $ 64 =========== ============ Total net increase/(decrease)............................. $ 63,563 $ (98,352) =========== ============
--------------- * 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. ** Amount represents less than 500 shares and/or $500, as applicable. + California Tax Exempt Reserves Capital Class, Institutional Class, Liquidity Class and Investor B Shares commenced operations on October 3, 2000, March 28, 2001, August 10, 2001 and December 29, 2000, respectively. SEE NOTES TO FINANCIAL STATEMENTS. 50 (This page intentionally left blank.) 51 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0206 $(0.0206) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0204 $(0.0204) Period ended 3/31/2001**.................................... 1.00 0.0192 (0.0192) TRUST CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0201 $(0.0201) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0198 $(0.0198) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0193 $(0.0193) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0188 $(0.0188) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0183 $(0.0183) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0176 $(0.0176) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0155 $(0.0155) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0150 $(0.0150) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0150 $(0.0150) 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. 52 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING VALUE END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO END OF TOTAL PERIOD AVERAGE AVERAGE NET AVERAGE NET PERIOD RETURN++ (000) NET ASSETS ASSETS ASSETS ------------------------------------------------------------------------------------------- $1.00 2.07% $25,383,856 0.20%+(a) 4.07%+ 0.27%+(a) 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 2.05% $ 1,690,677 0.24%+(a) 4.03%+ 0.31%+(a) 1.00 1.90 651,116 0.24+(a) 6.18+ 0.31+(a) $1.00 2.02% $ 2,223,158 0.30%+(a) 3.97%+ 0.37%+(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 2.00% $ 1,596,352 0.35%+(a) 3.92%+ 1.12%+(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 1.95% $ 6,944,806 0.45%+(a) 3.82%+ 0.52%+(a) 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 1.90% $ 6,026,531 0.55%+(a) 3.72%+ 0.62%+(a) 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 1.84% $ 3,563,091 0.65%+(a) 3.62%+ 0.72%+(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 1.77% $13,910,545 0.80%+(a) 3.47%+ 0.87%+(a) 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 1.56% $ 1,018,027 1.20%+(a) 3.07%+ 1.27%+(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 1.51% $ 43,044 1.30%+(a) 2.97%+ 1.37%+(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 1.51% $ 2,073 1.30%+(a) 2.97%+ 1.37%+ (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. 53 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0203 $(0.0203) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0201 $(0.0201) Period ended 3/31/2001***................................... 1.00 0.0221 (0.0221) TRUST CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0198 $(0.0198) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0196 $(0.0196) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0191 $(0.0191) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0186 $(0.0186) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0181 $(0.0181) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0173 $(0.0173) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0153 $(0.0153) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0148 $(0.0148) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0148 $(0.0148) 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. 54 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 2.05% $7,377,448 0.20%+(a)(b) 4.01%+ 0.28%+(a) 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 2.03% $ 511,230 0.24%+(a)(b) 3.97%+ 0.32%+(a) 1.00 2.23 574,968 0.24+(a)(b) 6.15+ 0.31+(a) $1.00 2.00% $ 129,038 0.30%+(a)(b) 3.91%+ 0.38%+(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 1.97% $ 512,082 0.35%+(a)(b) 3.86%+ 1.13%+(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 1.92% $ 780,138 0.45%+(a)(b) 3.76%+ 0.53%+(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 1.87% $ 96,590 0.55%+(a)(b) 3.66%+ 0.63%+(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 1.82% $1,387,864 0.65%+(a)(b) 3.56% 0.73%+(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 1.74% $ 10,063 0.80%+(a)(b) 3.41%+ 0.88%+(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 1.54% $ 183,796 1.20%+(a)(b) 3.01%+ 1.28%+(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 1.49% $ 10,585 1.30%+(a)(b) 2.91%+ 1.38%+(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 1.49% $ 241 1.30%+(a)(b) 2.91%+ 1.38%+(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. 55 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0196 $(0.0196) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0194 $(0.0194) Period ended 3/31/2001**.................................... 1.00 0.0206 (0.0206) TRUST CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0191 $(0.0191) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0188 $(0.0188) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0188 $(0.0188) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0178 $(0.0178) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0173 $(0.0173) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0166 $(0.0166) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0146 $(0.0146) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0141 $(0.0141) 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. 56 NATIONS RESERVES MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
WITHOUT WAIVERS AND/OR EXPENSE REIMBURSEMENTS --------------- RATIO OF RATIO OF RATIO OF NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING VALUE END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS ------------------------------------------------------------------------------------------- $1.00 1.97% $1,431,917 0.20%+(a) 3.93%+ 0.27%+(a) 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 1.95% $ 45,699 0.24%+(a) 3.89%+ 0.31%+(a) 1.00 2.08 29,572 0.24+(a)(b) 5.95+ 0.31+(a) $1.00 1.92% $1,337,456 0.30%+(a) 3.83%+ 0.37%+(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 1.90% $ 372,084 0.35%+(a) 3.78%+ 1.17%+(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 1.85% $2,069,813 0.45%+(a) 3.68%+ 0.52%+(a) 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 1.80% $ 759,841 0.55%+(a) 3.58%+ 0.62%+(a) 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 1.74% $1,313,011 0.65%+(a) 3.48%+ 0.72%+(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 1.67% $1,143,232 0.80%+(a) 3.33%+ 0.87%+(a) 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 1.47% $ 361,099 1.20%+(a) 2.93%+ 1.27%+(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 1.41% $ 102 1.30%+(a) 2.83%+ 1.37%+(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. 57 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0199 $(0.0199) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0198 $(0.0198) Period ended 3/31/2001**.................................... 1.00 0.0210 (0.0210) TRUST CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0195 $(0.0195) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0192 $(0.0192) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0187 $(0.0187) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0182 $(0.0182) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0177 $(0.0177) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0169 $(0.0169) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0149 $(0.0149) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0144 $(0.0144) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0145 $(0.0145) 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 Trust Class, Adviser Class, Investor Class, Market Class, Daily Class, Service Class, Investor B and Investor C Shares commenced operations on May 17, 1999, September 22, 1994, 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. 58 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 2.01% $1,931,113 0.20%+(a) 3.92%+ 0.29%+(a) 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 1.99% $ 275,666 0.24%+(a) 3.88%+ 0.33%+(a) 1.00 2.12 260,087 0.24+(a) 6.02+ 0.33+(a) $1.00 1.96% $ 284,244 0.30%+(a) 3.82%+ 0.39%+(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 1.94% $ 129,855 0.35%+(a) 3.77%+ 1.14%+(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 1.88% $1,013,271 0.45%+(a) 3.67%+ 0.54%+(a) 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 1.83% $ 960,170 0.55%+(a) 3.57%+ 0.64%+(a) 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 1.78% $ 506,539 0.65%+(a) 3.47%+ 0.74%+(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 1.71% $ 272,032 0.80%+(a) 3.32%+ 0.89%+(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 1.50% $ 35,002 1.20%+(a) 2.92%+ 1.29%+(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 1.45% $ 1,789 1.30%+(a) 2.82%+ 1.39%+(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 1.46% $ 12 1.30%+(a) 2.82%+ 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. 59 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0139 $(0.0139) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0089 $(0.0089) Period ended 3/31/2001**.................................... 1.00 0.0110 (0.0110) TRUST CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0134 $(0.0134) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0132 $(0.0132) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0127 $(0.0127) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0122 $(0.0122) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0117 $(0.0117) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0111 $(0.0111) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0089 $(0.0089) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0084 $(0.0084) 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. 60 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 1.40% $377,981 0.20%+ 2.59%+ 0.29%+ 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 0.86% $ 3,801 0.24%+ 2.35%+ 0.33%+ 1.00 1.10 16,116 0.24+ 3.89+ 0.33+ $1.00 1.35% $506,072 0.30%+ 2.49%+ 0.39%+ 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 1.33% $ 51,401 0.35%+ 2.44%+ 1.14%+ 1.00 3.83 35,569 0.35 3.78 1.14 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 1.28% $156,269 0.45%+ 2.34%+ 0.54%+ 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 1.22% $ 52,145 0.55%+ 2.24%+ 0.64%+ 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 1.17% $172,035 0.65%+ 2.14%+ 0.74%+ 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 1.10% $616,300 0.80%+ 1.99%+ 0.89%+ 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 0.90% $ 87,801 1.20%+ 1.59%+ 1.29%+ 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 0.85% $ 105 1.30%+ 1.49%+ 1.39%+ 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. 61 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0127 $(0.0127) Period ended 3/31/2001**.................................... 1.00 0.0153 (0.0153) INSTITUTIONAL CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0061 $(0.0061) Period ended 3/31/2001**.................................... 1.00 0.0003 (0.0003) TRUST CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0122 $(0.0122) Year ended 3/31/2001........................................ 1.00 0.0323 (0.0323) Period ended 3/31/2000**.................................... 1.00 0.0239 (0.0239) LIQUIDITY CLASS SHARES Period ended 9/30/2001** (unaudited)........................ $1.00 $0.0029 $(0.0029) ADVISER CLASS SHARES Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0114 $(0.0114) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0109 $(0.0109) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0097 $(0.0097) 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 Six months ended 9/30/2001 (unaudited)...................... $1.00 $0.0036 $(0.0036) 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, LLC, and its investment sub-adviser became Banc of America Capital Management, LLC. ** California Tax-Exempt Reserves Capital Class, Institutional Class, Trust Class, Liquidity Class, Daily Class and Investor B Shares commenced operations on October 3, 2000, March 28, 2001, May 24, 1999, August 10, 2001, October 2, 1996 and December 29, 2000, respectively. # Amount represents less than $500. (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. 62 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 1.28% $ 25,015 0.20%+ 2.09%+ 0.28%+ 1.00 1.54 30 0.20+ 3.33+ 0.28+ $1.00 0.61% $ --# 0.24%+ 2.05%+ 0.32%+ 1.00 0.03 1,000 0.24+ 3.29+ 0.32+ $1.00 1.22% $305,246 0.30%+ 1.99%+ 0.38%+ 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 0.27% $ 2,721 0.35%+ 1.94%+ 1.13%+ $1.00 1.15% $289,401 0.45%+ 1.84%+ 0.53%+ 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 1.10% $283,301 0.55%+ 1.74%+ 0.63%+ 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 0.97% $798,650 0.80%+ 1.49%+ 0.88%+ 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 0.36% $ --# 1.30%+ 0.99%+ 1.38%+ 1.00 0.38 64 1.30+ 2.23+ 1.38+
SEE NOTES TO FINANCIAL STATEMENTS. 63 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Nations Reserves ("Reserves") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. At September 30, 2001, Reserves offered thirteen 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 Portfolio'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 Portfolio's obligation to repurchase the securities. Securities subject to repurchase under reverse repurchase agreements are designated in the Statements of net assets. At September 30, 2001, Treasury Reserves had no reverse repurchase agreements outstanding. The average daily balance of reverse repurchase agreements outstanding for Treasury Reserves during the six months ended September 30, 2001 was $1,639,127,839. Cash Reserves and Government Reserves did not enter into any 64 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) reverse repurchase agreements during the six months ended September 30, 2001. The proceeds received by Treasury Reserves under the reverse repurchase agreements were reinvested in tri-party repurchase agreements. Net fees earned during the six months ended September 30, 2001, representing the difference between interest rates on the reverse repurchase and repurchase agreements, amounted to $1,106,959 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. 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, LLC ("BA Advisors"), a wholly-owned subsidiary of Bank of America, N.A. ("Bank of America"), which in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a bank holding company organized as a Delaware corporation, pursuant to which BA Advisors provides investment advisory services to the Portfolios. Under the terms of the Investment Advisory Agreement, BA Advisors 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 BA Advisors and Banc of America Capital Management, LLC ("BACAP"), a wholly-owned subsidiary of Bank of America, pursuant to which BACAP is entitled to receive a sub-advisory fee from BA Advisors at the maximum annual rate of 0.033% of each Portfolio's average daily net assets. Stephens Inc. ("Stephens") and BA Advisors serve as co-administrators of Reserves. Under the co-administration agreements, Stephens and BA Advisors 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 BA Advisors. For the six months ended September 30, 2001, Stephens and BA Advisors earned 0.01% and 0.01%, respectively, of the Portfolio's average daily net assets for their co-administration services. BA Advisors and/or the sub-adviser and Stephens may, from time to time, reduce their fees payable by each Portfolio. Effective August 1, 2001 and until July 31, 2002, BA Advisors 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. 65 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) BNY serves as the custodian of Reserves' assets. For the six months ended September 30, 2001, expenses of certain Portfolios were reduced by $72,393 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 also serves as distributor of the Portfolios' shares. For the six months ended September 30, 2001, the Portfolios were informed that the distributor received $172,277 in contingent deferred sales charges from redemption of Investor B and Investor C Shares, which were subject to such charges. A substantial portion of these fees is paid to affiliates of Bank of America. No officer, director or employee of Bank of America, BA Advisors 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 September 30, 2001, approximately 1.88% and 2.98% 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 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 66 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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. At September 30, 2001 the annual rates in effect and plan limits, as a percentage of average daily net assets, were 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 BA Advisors. 4. SHARES OF BENEFICIAL INTEREST At September 30, 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. 67 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) CASH RESERVES
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- Bank of Scotland, 3.430% 02/22/02.......................... 08/27/01 $ 99,995 $1.00 $ 99,995 0.2% $ 99,995 First Allmerica Financial Life Insurance Company: 3.450%+ 10/01/01++....................... 02/25/99 50,000 1.00 50,000 0.1 50,000 3.660%+ 11/15/01++....................... 05/14/98 50,000 1.00 50,000 0.1 50,000 2.723%+ 12/22/01++....................... 09/22/98 50,000 1.00 50,000 0.1 50,000 Goldman Sachs Group, Inc.: 4.070% 12/10/01.......................... 05/10/01 100,000 1.00 100,000 0.2 100,000 3.281%+ 12/14/01++....................... 05/15/01 50,046 1.00 50,046 0.1 50,046 4.130% 02/04/02.......................... 05/10/01 200,000 1.00 200,000 0.3 200,000 4.050% 02/28/02.......................... 06/05/01 200,000 1.00 200,000 0.3 200,000 3.610% 05/29/02.......................... 09/05/01 300,000 1.00 300,000 0.5 300,000 Halifax plc, 3.450% 02/21/02.......................... 08/27/01 100,003 1.00 100,003 0.2 100,003 Jackson National Life Insurance Company, 3.250%+ 12/14/01++....................... 06/14/96 50,000 1.00 50,000 0.1 50,000 National City Bank of Kentucky, 3.465% 02/15/02.......................... 08/22/01 150,029 1.00 150,029 0.2 150,029 Security Life of Denver Insurance Company: 3.800%+ 10/01/01++....................... 07/27/00 60,000 1.00 60,000 0.1 60,000 Transamerica Occidental Life Insurance Company: 3.370%+ 10/01/01++....................... 07/31/00 125,000 1.00 125,000 0.2 125,000 3.820%+ 10/01/01++....................... 07/31/00 117,000 1.00 117,000 0.2 117,000 3.810%+ 11/01/01++....................... 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 September 30, 2001. ++ Reset date. * Amount represents less than 0.1%. MONEY MARKET RESERVES
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc.: 4.130% 02/04/02.......................... 05/10/01 $ 75,000 $1.00 $ 75,000 0.7% $ 75,000 3.610% 05/29/02.......................... 09/05/01 50,000 1.00 50,000 0.5 50,000 Halifax plc, 3.450% 02/21/02.......................... 08/27/01 75,002 1.00 75,002 0.7 75,002 National City Bank of Kentucky, 3.465% 02/15/02.......................... 08/22/01 50,010 1.00 50,010 0.5 50,010
68 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) MUNICIPAL RESERVES
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- Bristol, Tennessee Health and Education Facilities Revenue, Series 1995A, (FGIC Insured, Citibank SBPA), 2.350%** 02/28/14........................ 05/18/98 $ 8,500 $1.00 $ 8,500 0.4% $ 8,500 Colorado Post-Secondary Educational Facilities Authority Economic Development Revenue, (U.S. Swimming, Inc. Project) Series 1996, (Wells Fargo Bank LOC), 2.400%** 06/01/11........................ 05/31/02 2,515 1.00 2,515 0.1 2,515 Columbus, Georgia Hospital Authority Revenue, (St. Francis Hospital Inc., Project) Series 2000A, (Columbus Bank & Trust LOC), 2.430%** 01/01/31........................ 12/21/00 10,000 1.00 10,000 0.5 10,000 Illinois Educational Facilities Authority Revenue, (Chicago Historical Society Project) Series 1985, (Northern Trust Company LOC), 2.200%** 12/01/25........................ 11/09/98 5,500 1.00 5,500 0.3 5,500 Intermountain Power Agency, Utah Power Supply Revenue, Municipal Trust Receipts, Series 1996CMC-4, (FSA Insured, Chase Manhattan SBPA), 2.350%** 07/01/03........................ 05/18/98 9,900 1.00 9,900 0.5 9,900 Johnson City, Tennessee Health and Educational Facilities Board Hospital Revenue, Series 2001PT-560, (Merrill Lynch Guarantee and SBPA), 2.550%** 07/01/26........................ 05/31/01 18,785 1.00 18,785 0.9 18,785 Memphis, Tennessee Center City Revenue Finance Corporation Multi-Family Housing Revenue, (Riverset Apartments Project) Series 1998PT-1019, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 2.580%** 10/01/19........................ 02/02/00 7,420 1.00 7,420 0.4 7,420 Miami-Dade County, Florida Individual Development Authority Revenue, (Airis Miami LLC Project) Series 1999A, AMT, (AMBAC Insured, Bayerische Landesbank SBPA), 2.350%** 10/15/25........................ 06/05/01 15,500 1.00 15,500 0.8 15,500 Palm Beach County, Florida Multi-Family Housing Finance Authority Revenue, (Clear Lake Colony Apartments Project) Series 2000PA-1240, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 2.550%** 09/15/02........................ 09/01/00 8,160 1.00 8,160 0.4 8,160 South Carolina Jobs Economic Development Authority Economic Development Revenue, (St. Francis Bon Secours Hospital Project) Series 2000PT-503, (Merrill Lynch Guarantee and SBPA), 2.550%** 11/15/30........................ 09/20/01 24,995 1.00 24,995 1.2 24,995
69 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- Virginia Beach, Virginia Development Authority Multi-Family Housing Revenue, (Briarwood Apartments Project) Series 1999PT-1146, (Merrill Lynch Guarantee, Merrill Lynch SBPA), 2.430%** 04/01/23........................ 10/15/99 $ 13,080 $1.00 $ 13,080 0.6% $ 13,080 Washington State Motor Fuel Tax GO, Series 2000PT-433, (Merrill Lynch SBPA) 2.380%** 06/01/08........................ 06/14/01 19,865 1.00 19,865 1.0 19,865
--------------- ** Variable rate demand note. The interest rate shown reflects the rate in effect at September 30, 2001. These securities are subject to demand features of either one, seven or thirty days. CALIFORNIA TAX-EXEMPT RESERVES
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- Alameda County, California Corridor Transportation Authority Revenue, Series 1999CMC-1, (MBIA Insured), 2.350%** 10/13/13........................ 07/02/01 $ 6,480 $1.00 $ 6,480 0.4% $ 6,480 California Educational Facilities Authority Revenue, (Stanford University Project) Series 1999, (Merrill Lynch & Company Insured), 2.080%** 06/01/21........................ 02/02/01 8,105 1.00 8,105 0.5 8,105 California Educational Facilities Authority Revenue, Series 2000A, (Societe Generale LOC), 2.130%** 10/01/27........................ 08/16/00 14,275 1.00 14,275 0.8 14,275 California GO, (AMBAC Insured, Citibank LOC), 2.130%** 04/01/04........................ 07/17/00 15,100 1.00 15,100 0.9 15,500 California GO, (MBIA Insured, Citibank LOC), 2.130%** 02/01/06........................ 01/26/95 10,000 1.00 10,000 0.6 10,000 California GO, Series 1999, (MBIA Insured, Merrill Lynch & Company Insured), 2.130%** 12/01/18........................ 06/05/01 13,085 1.00 13,085 0.8 13,085 California Health Facilities Financing Authority Revenue, Series 1998CMC-6, (FSA Insured, JP Morgan Chase Insured), 2.350%** 06/01/12........................ 07/31/98 10,995 1.00 10,995 0.6 10,995 California Health Facilities Financing Authority Revenue, Series 1999, (Merrill Lynch & Company), 2.280%** 12/01/25........................ 11/04/99 6,365 1.00 6,365 0.4 6,365 California Housing Finance Agency Multi-Unit Rental Housing Revenue, (MBIA Insured), 2.130%** 08/01/10........................ 08/08/00 11,950 1.00 11,950 0.7 11,950 California Housing Finance Agency Revenue, Series 1995, (MBIA Insured, Merrill Lynch & Company Insured), 2.150%** 08/01/26........................ 08/01/01 2,400 1.00 2,400 0.1 2,400
70 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- California State Department of Water Resources Revenue, Series 2001K1, (Landesbank Hessen-Thueringen LOC), 2.350%** 10/31/04........................ 06/26/01 $ 15,000 $1.00 $ 15,000 0.9% $ 15,000 California State Floating Rate Receipts, Series 1997SG-91, (FGIC Insured, Societe Generale LOC), 2.130%** 10/01/21........................ 03/02/01 6,000 1.00 6,000 0.4 6,000 California State GO, Municipal Trust Receipts, Series 1997SGA-54, (AMBAC Insured, Societe Generale SBPA), 2.350%** 06/01/21........................ 08/19/97 15,950 1.00 15,950 0.9 15,950 Garden Grove, California Housing Authority Multi-Family Revenue, Series 2001, (GNMA Collateral, Merrill Lynch Liquidity Facility), 2.150%** 03/21/02........................ 08/07/01 7,010 1.00 7,010 0.4 7,010 Long Beach, California GO, 2.230%** 05/15/15........................ 02/13/98 13,000 1.00 13,000 0.8 13,000 Long Beach, California Harbor Revenue, Series 2000PA-651, AMT, (FGIC Insured, Merrill Lynch Liquidity Facility), 2.150%** 05/15/19........................ 09/08/00 1,060 1.00 1,060 0.1 1,060 Long Beach, California Municipal Securities Trust Receipts Revenue, Series 1998CMC-1, 2.400%** 05/15/07........................ 02/18/98 9,995 1.00 9,995 0.6 9,995 Los Angeles County, California Metropolitan Authority Sales Tax Revenue, Series 1996, (MBIA Insured, Societe Generale Liquidity Facility), 2.080%** 07/01/18........................ 05/02/01 15,320 1.00 15,320 0.9 15,320 Los Angeles, California Wastewater Systems Revenue, Series 1996SGA-26, (MBIA Insured, Societe Generale SBPA), 2.300%** 06/01/24........................ 09/18/00 10,000 1.00 10,000 0.6 10,000 Puerto Rico Commonwealth Highway and Transportation Authority Revenue, (AMBAC Insured, Merrill Lynch Liquidity Facility), 2.750%** 01/01/19........................ 07/11/01 8,505 1.00 8,505 0.5 8,505 Puerto Rico Commonwealth Infrastructure Financing Authority, Series 2000-2, (Toronto-Dominion Bank Liquidity Facility), 2.200%** 10/01/32........................ 10/12/00 21,330 1.00 21,330 1.3 21,330 Puerto Rico Commonwealth Infrastructure Financing Authority, Series 2001, 2.730%** 07/01/27........................ 08/06/01 5,000 1.00 5,000 0.3 5,000 Puerto Rico Infrastructure Financing Authority, 2.130%** 10/01/34........................ 10/11/00 9,000 1.00 9,000 0.5 9,000 Puerto Rico Infrastructure Financing Authority, 2.130%** 10/01/34........................ 01/19/01 9,725 1.00 9,725 0.6 9,725
71 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
FAIR PERCENTAGE HISTORICAL PAR VALUE VALUE VALUE OF NET COST ACQUISITION 9/30/01 PER UNIT 9/30/01 ASSETS 9/30/01 SECURITY DATE (000) 9/30/01 (000) 9/30/01 (000) ------------------------------------------------------------------------------------------------------------------------- Riverside, California Electric Revenue, Series 1998, (AMBAC Insured, Chase Manhattan Bank Liquidity Facility), 2.350%** 10/01/11........................ 08/07/01 $ 1,600 $1.00 $ 1,600 0.1% $ 1,600 San Diego, California Area Housing and Financing Agency Lease Revenue, Series 2001, (Societe Generale SBPA), 2.300%** 06/01/06........................ 08/29/01 23,730 1.00 23,730 1.4 23,730 San Diego, California Housing Authority Multi-Family Housing Revenue, Series 2000, 2.130%** 04/01/26........................ 04/12/01 17,710 1.00 17,710 1.0 17,710 San Francisco City and County, California Airport Commission International Airport Revenue, Municipal Trust Receipts, Series 1997SGA-50, AMT, (MBIA Insured, Societe Generale SBPA), 2.300%** 05/01/16........................ 11/17/99 14,300 1.00 14,300 0.8 14,300 San Francisco City and County, California Airport Commission International Airport Revenue, Series 1996, 2.130%** 05/01/21........................ 05/09/01 10,500 1.00 10,500 0.6 10,500
--------------- ** Variable rate demand note. The interest rate shown reflects the rate in effect at September 30, 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. At September 30, 2001, there were no loans outstanding under this Agreement. For the six months ended September 30, 2001, borrowings by the Portfolios under the Agreement were as follows:
AVERAGE AMOUNT AVERAGE OUTSTANDING INTEREST PORTFOLIO (000) RATE --------------------------------------------------------- Money Market Reserves............ $ 320 4.05%
The average amount outstanding was calculated based on daily balances in the period. 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 -- --
72 NATIONS RESERVES MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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. SUBSEQUENT EVENT On October 10, 2001, the Board of Directors/Trustees of each fund listed in the left column below (each a "Fund") approved its reorganization into a newly created successor that is substantially identical to the fund shown in the right column of the following chart. The principal effect of this reorganization would be to convert each Fund's investment into an investment in a fund with the objective, principal investment strategies and risks of the newly created successor fund. Shareholders will be asked to consider and vote on an Agreement and Plan of Reorganization at special shareholder meetings that will likely be held in March 2002. If shareholders approve this plan, the reorganization is expected to occur in the second quarter of 2002. At that time, shares of each Fund would be exchanged for shares of equal value of a newly created successor to the fund shown in the right column of the chart below.
FUND WILL BE REORGANIZED INTO A NEWLY CREATED SUCCESSOR TO: ------------------------------------------------------------------------------- Prime Cash Reserves Treasury Treasury Reserves Government Money Market Government Reserves
On October 10, 2001, the Board of Trustees of each fund listed in the left column below (each a "Fund") approved its reorganization into a newly created successor fund that is substantially identical to the existing Fund. The principal effect of this reorganization would be to redomicile each Fund in Delaware, under a Delaware business trust structure that management believes provides greater flexibility and efficiency in certain corporate and organizational matters. Shareholders will be asked to consider and vote on an Agreement and Plan of Reorganization at a special shareholder meeting that will likely be held in March 2002. If shareholders approve this plan, the reorganization is expected to occur in the second quarter of 2002. At that time, shares of each Fund would be exchanged for shares of equal value of the newly created successor fund.
FUND WILL BE REORGANIZED INTO A NEWLY CREATED SUCCESSOR TO: -------------------------------------------------------------------------------------- Cash Reserves Cash Reserves Money Market Reserves Money Market Reserves Treasury Reserves Treasury Reserves Government Reserves Government Reserves Municipal Reserves Municipal Reserves California Tax-Exempt Reserves California Tax-Exempt Reserves
73 P.O. Box 34602 Charlotte, NC 28254-4602 Toll free 1.800.626.2275 (institutional investors) Toll free 1.800.321.7854 (individual investors) NATIONS FUNDS RESERVESSAR (9/01)