Government & Corporate Bond Funds

Nations Funds
Nations Strategic Income Fund
Statement of net assets (continued) September 30, 2002 (unaudited)
Principal Principal
amount Value amount Value
(000) (000) (000) (000)
Food products — (continued) Metals and mining — 0.1%
$ 100 Unilever Capital Corporation, $ 131 Alcoa Inc.,
6.875% 11/01/05##****************** $ 112 7.375% 08/01/10##****************** $ 156
204 Unilever Capital Corporation,
7.125% 11/01/10##****************** 243
942 111
Natural gas pipelines — 0.1%
EL Paso Corporation,
Health services — 0.1%
7.800% 08/01/31##****************** 70
180 Wellpoint Health Networks Inc.,
207 Kinder Morgan, Inc.,
6.375% 06/15/06##****************** 197
6.650% 03/01/05##****************** 220
22 Wellpoint Health Networks Inc., 290
6.375% 01/15/12##****************** 24
Oil refining and marketing — 0.1%
221 187 USX Corporation,
Heavy machinery — 0.2%
400 Caterpillar Inc.,
7.300% 05/01/31##****************** 489
Household products — 0.0%+
63 Proctor & Gamble Company,
4.750% 06/15/07##****************** 68
600
Insurance — 0.5%
American International Group, Inc.,
5.850% 08/01/08°## ***************** 663
132 Principal Life Global,
6.250% 02/15/12° ******************* 142
230 Prudential Funding LLC,
6.600% 05/15/08°## ***************** 252
6.650% 02/01/06##****************** 204
Paper and forest products — 0.0%+
98 International Paper Company,
8.000% 07/08/03##****************** 102
Pharmaceuticals — 0.2%
302 Wyeth,
6.250% 03/15/06##****************** 323
78
Publishing and advertising — 0.1%
Gannett Company, Inc.,
6.375% 04/01/12##****************** 89
124 News America Holdings,
88
155
197
Integrated oil — 0.2%
Amerada Hess Corporation,
7.875% 10/01/29##******************
Conoco Funding Company,
6.350% 10/15/11##******************
PEMEX Master Trust,
8.625% 02/01/22°## *****************
1,057
106
174
188
141
330
8.150% 10/17/36********************
Railroads, trucking and shipping — 0.2%
Burlington Northern Santa Fe Corporation,
6.750% 07/15/11##******************
FedEx Corporation,
6.625% 02/12/04##******************
123
212
160
346
506
468
Real estate — 0.1%
140
Investment services — 0.6%
Bear Stearns Companies, Inc.,
147 EOP Operating LP,
7.000% 07/15/11##****************** 162
7.800% 08/15/07##****************** 163
110 Credit Suisse First Boston USA, Inc., Real Estate Investment Trusts
5.875% 08/01/06##****************** 117 (REITs) — 0.1%
144 Credit Suisse First Boston USA, Inc., 61 Health Care Property Investors, Inc.,
6.125% 11/15/11##****************** 150 7.480% 04/05/04##****************** 66
107 Goldman Sachs Group Inc., 58 Health Care Property Investors, Inc.,
6.875% 01/15/11##****************** 119 6.450% 06/25/12##****************** 61
22
83
106
107
235
Goldman Sachs Group, Inc.,
5.700% 09/01/12********************
Lehman Brothers Holdings Inc.,
7.000% 02/01/08##******************
Merrill Lynch & Company, Inc.,
6.000% 02/17/09##******************
Morgan Stanley Dean Witter & Company,
6.100% 04/15/06##******************
Morgan Stanley Dean Witter & Company,
6.750% 04/15/11##******************
23
92
113
115
258
1,150
147
90
191
80
Telecommunications services — 0.6%
BellSouth Telecommunications Inc.,
6.375% 06/01/28##******************
Cingular Wireless,
7.125% 12/15/31##******************
Cox Communications, Inc., Class A,
7.750% 11/01/10##******************
GTE North, Inc., Series H,
5.650% 11/15/08********************
127
146
79
198
81
See notes to financial statements.
27