Government & Corporate Bond Funds

Nations Funds
Notes to financial statements (continued) (unaudited)
Change of Registered Investment Company
On June 8, 2001, the Government Securities Fund, a newly established shell portfolio of Funds Trust (the ‘‘Successor
Fund’’), acquired the assets and liabilities of its predecessor fund, which was a series of the Company, pursuant to a plan
of reorganization approved by each predecessor fund’s shareholders. The predecessor fund had the same name,
investment objective and principal investment strategies as the Successor Fund. The acquisition was accomplished by a
tax-free exchange of shares of the Successor Fund in an amount equal to the value of the outstanding shares of the
predecessor fund. The financial statements of the Successor Fund reflect the historical financial results of the predecessor
fund prior to the reorganizations.
Change of Registered Investment Company
On May 10, 2002, each fund listed in the left column below (each a ‘‘Fund’’) reorganized into a newly created successor fund
listed in the right column below, that is substantially identical to the existing Fund. The acquisition was accomplished by a
tax-free exchange of shares of each Fund for shares of equal value of the newly created successor fund. The financial
statements of the successor funds reflect the historical financial results of the Fund prior to the reorganization.
Fund Reorganized into a newly created successor fund
Short-Term Income Short-Term Income
Short-Intermediate Government Short-Intermediate Government
Intermediate Bond Intermediate Bond
Bond Bond
Strategic Income Strategic Income
Conversion of Common Trust Funds
On August 16, 2002, certain Funds, as listed below (each an ‘‘Acquiring Fund’’), acquired the net assets of certain common
trust funds, managed by Bank of America, also listed below (each an ‘‘Acquired Fund’’), in a tax-free exchange for shares of
the Acquiring Fund. The number and value of shares issued by the Acquiring Fund are presented in the Schedules of capital
stock activity. Net assets and unrealized appreciation/(depreciation) as of the conversion date were as follows:
Acquired
Total net Total net Fund
assets of Total net assets of Unrealized
Acquired assets of Acquiring Fund Appreciation/
Acquired Fund Acquiring Fund After conversion (depreciation)
Acquiring Fund Fund (000) (000) (000) (000)
Short-Term Income Bank of America
Short-Term Bond Fund $ 12,475 $ 772,232 $ 784,707 $ 245
Short-Intermediate Government Bank of America
Short-Term
Government Fund 58,682 480,736 539,418 2,596
Intermediate Bond Bank of America
Intermediate Bond
Fund 439,200 428,904 868,104 4,570
Bond Bank of America
Charitable Bond Fund 217,846 2,314,670 2,532,516 (1,082)
Bond Bank of America Bond
Fund 107,442 2,314,670 2,422,112 (66)
14. Subsequent Event
On October 8, 2002, the Board of Trustees of each Fund approved the replacement of Stephens with BA Advisors as the
exclusive distributor of the shares of the Funds. In addition, on November 21, 2002, the Board of Trustees approved the
termination of Stephens as the co-administrator with BA Advisors (which will result in BA Advisors being the sole
administrator to the Funds) and approved the assumption by BACAP of BA Advisors’ role as the primary investment
adviser to the Funds. The transition in service providers is expected to occur on or about January 1, 2003. It is also
anticipated that BA Advisors will change its name to BACAP Distributors, LLC on or about January 1, 2003.
73