<PAGE>
AMSOUTH MUTUAL FUNDS
====================
[LOGO OF AMSOUTH]
AMSOUTH BANK OF ALABAMA
Investment Advisor
A N N U A L
R E P O R T
JULY 31, 1996
[LOGO OF AMSOUTH
MUTUAL FUNDS]
BISYS Fund Services, Distributor
Not FDIC Insured
<PAGE>
TABLE OF CONTENTS
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
PAGE 1
REPORT OF INDEPENDENT ACCOUNTANTS
PAGE 11
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 12
STATEMENTS OF OPERATIONS
PAGE 15
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 18
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 22
NOTES TO FINANCIAL STATEMENTS
PAGE 44
FINANCIAL HIGHLIGHTS
PAGE 51
----------------------------------------------------
THE AMSOUTH MUTUAL FUNDS, LIKE ALL MUTUAL FUNDS, ARE
NOT FDIC INSURED OR INSURED BY ANY OTHER AGENCY AND
ARE NOT OBLIGATIONS OR DEPOSITS OF, OR ENDORSED OR
GUARANTEED BY, AMSOUTH BANK OR ANY OF ITS
AFFILIATES. INVESTMENT PRODUCTS INVOLVE INVESTMENT
RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
----------------------------------------------------
<PAGE>
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
Dear Shareholders:
We are pleased to report that the year ended July 31, 1996, was, overall, a
good one for the financial markets. While the press focused on the meteoric
rise and subsequent fall of technology stocks, the Dow Jones Industrial
Average climbed higher--advancing some 800 points over the 12-month period.
The fact that bonds posted positive returns for the period was also lost among
the day-to-day reports on the uncertain direction of interest rates and the
economy.
Unlike the media, however, many investors looked at the big picture--and
throughout the year, mutual funds saw record deposits. We are pleased to
report that many chose to invest in the AmSouth Mutual Funds. Net assets under
management in the AmSouth Equity Fund alone increased by $237 million during
the 12-month period. And net assets under management in our family of funds
grew by nearly 13% over the period. Consequently, we are pleased to report
that the year ended July 31, 1996, was one of solid growth for the AmSouth
Funds.
THE BEST OF TIMES, OR THE WORST?
In economics, there's an old joke--if you put all the economists in the world
end-to-end, you still wouldn't reach a conclusion--which aptly sums up the
situation today. Opinion on the direction of interest rates and the economy is
widely divided. The growth of jobs and income, as well as the stable level of
unemployment, leads optimists to believe that the economy is in the early
stages of acceleration after a mid-cycle slow-down. The pessimists see the
length of the expansion--64 months as of the end of July--and the high levels
of consumer debt as sure signs that the economy is on its last legs.
While the debate is fascinating to economists, the importance of an answer to
the financial markets can be summed up in four words: inflation and interest
rates. If the optimists are right and the economy is in the early stage of
acceleration, inflationary pressures are building--and the Federal Reserve
will have to raise interest rates to cool the economy. If, however, we are
teetering on the brink of a recession, any action on the part of the Fed to
raise rates may push the economy over the edge.
COOLING, BUT HARDLY COLD
So, who is right? More than likely both views are somewhat extreme. While
growth in the first half of the year exceeded expectations, part of this was
attributed to weather-delayed consumer buying, which increased in the first
quarter. Record tax refunds added fuel to the fire in the second. The effects
of both rippled quickly through the economy and disappeared. On the other
hand, there is little to indicate that a recession is just around the corner.
Unemployment is low; incomes are rising; and consumer confidence is still
strong. In addition, it is unlikely that corporate profits will continue to
grow at the astonishing rates we saw last year.
-1-
<PAGE>
As a result, we expect to see the economy grow at a moderate, noninflationary
pace over the coming months. In addition, we do not expect to see the Federal
Reserve act unless and until the direction of the economy is very clear.
Historically, the Fed has been reactive rather than preemptive. Moreover, it
has always been reluctant to make any moves in the highly charged political
environment of a presidential campaign season. Consequently, we do not believe
that any action to increase interest rates is imminent.
WHAT'S AHEAD FOR STOCKS AND BONDS?
Our outlook for the bond market is positive. Since the first of the year,
intermediate- and long-term interest rates have increased close to one
percentage point, an extraordinary rise for a six-month period. In the months
ahead, we expect to see these rates back down. In fact, several months down
the road, we may consider today's rates high. Consequently, in recent weeks,
longer-term bonds have become increasingly attractive. In fact, given the
present levels of stock market valuations and interest rates, we believe that
bonds now provide investors with a better risk-adjusted return potential than
stocks.
As we said earlier, corporate profits are very unlikely to continue to grow at
the red-hot pace set last year. While this is openly acknowledged by stock
investors, it has not been accepted at an emotional level and expectations are
still very high. Stock prices of companies with disappointing earnings may
fall quickly. As a result, in the coming months, opportunities will be found
in sectors where expectations--and the possibility of disappointment--are low.
Given these circumstances, stock selection will be more critical than ever.
IN CLOSING . . .
In the pages that follow, you will find a detailed discussion of the
performance of each of the AmSouth Mutual Funds during the year ended July 31,
1996. We thank you for your continued confidence in us. We look forward to
providing you with excellent investment management and to serving your
investment needs now and in the future. As always, if you would like a
prospectus, have any questions or require any assistance, please don't
hesitate to call us at 1-800-451-8382.
Sincerely,
/s/ J. David Hober
J. David Huber AmSouth Bank of Alabama
Chairman Investment Advisor
AmSouth Mutual Funds
For more complete information on any of the AmSouth Mutual Funds, including
charges and expenses, call 1-800-451-8382 for a prospectus, which you should
read carefully before you invest or send money. Shares are distributed by
BISYS Fund Services.
-2-
<PAGE>
THE AMSOUTH EQUITY FUND
Equity Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
S&P 500
DATE EQUITY FUND INDEX
- ---------------------------------
<S> <C> <C>
12/01/88 9,551 10,000
07/31/89 11,849 12,980
07/31/90 12,046 13,822
07/31/91 13,065 15,577
07/31/92 14,757 17,555
07/31/93 16,794 19,084
07/31/94 18,121 20,069
07/31/95 21,613 25,307
07/31/96 24,010 29,378
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------
Average Annual Total Return*--7/31/96
- ------------------------------------------
Since
Inception
1 Year 5 Year (12/1/88)
- ------------------------------------------
<S> <C> <C> <C>
Equity Fund 6.09% 11.91% 12.10%
- ------------------------------------------
</TABLE>
The performance of the AmSouth Equity Fund is measured against the S&P 500
Index, an unmanaged index generally representative of the U.S. stock market.
The index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management and fund accounting fees. However, the
Fund's performance reflects the deduction of fees for the value-added services.
Past performance is not predictive of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
*Reflects 4.50% sales charge.
It was a tumultuous year for stock investors. Although the Dow Jones Industrial
Average rose some 800 points during the 12 months ended July 31, 1996,
individual stocks were battered as investor sentiment rotated rapidly from
sector to sector. In addition, anxiety over the direction of interest rates
rippled regularly through the market.
Security selection was the key to the Fund's performance. In keeping with our
philosophy of focusing on quality stocks in out-of-favor industries, holdings
in technology stocks were reduced early in the period, and exposure in the
retail and service sectors was increased. In the first half of 1996, both of
these sectors exceeded market expectations. With a relatively small exposure in
technology, the Fund suffered little when the group took a dive in late
December and again in early July.
Nevertheless, due to our caution, the Fund's performance lagged the market. For
the year ended July 31, 1996, the Fund posted a total return of 11.09% (without
the sales charge)** versus a return of 16.55% for the S&P 500.
POTENTIAL HIGHEST WHERE EXPECTATIONS LOWEST
Due to the recent decline in the market, expectations are still ahead of
reality, particularly for those sectors that anticipate rapid earnings growth
over the next year. Some are bound to disappoint investors. As a result,
individual stock selection will be critical in the coming months. In addition,
in an effort to minimize the risks of disappointment, we will continue to seek
out stocks in industries where expectations are still relatively low, such as
the retail, service and energy sectors.
As of July 31, 1996, the Fund's top five holdings were St. Paul Companies
(2.48%), Gannett (2.40%), Grand Metropolitan (2.35%), Texaco (2.29%) and
Burlington Resources (2.28%).+
** The Fund's total return with the maximum 4.50% sales charge was 6.09% for
the period.
+ The composition of the Fund's holdings is subject to change.
-3-
<PAGE>
THE AMSOUTH REGIONAL EQUITY FUND
Regional Equity Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
REGIONAL S&P 500
DATE EQUITY FUND INDEX
- ---------------------------------
<S> <C> <C>
12/01/88 9,551 10,000
07/31/89 11,250 12,980
07/31/90 12,309 13,822
07/31/91 13,850 15,577
07/31/92 16,712 17,555
07/31/93 19,307 19,084
07/31/94 20,249 20,069
07/31/95 23,306 25,307
07/31/96 26,360 29,378
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
Average Annual Total Return*--7/31/96
- -----------------------------------------------------
Since
Inception
Date 1 Year 5 Year (12/1/88)
- -----------------------------------------------------
<S> <C> <C> <C>
Regional Equity Fund 8.03% 12.70% 13.47%
- -----------------------------------------------------
</TABLE>
The performance of the AmSouth Regional Equity Fund is measured against the S&P
500 Index, an unmanaged index generally representative of the U.S. stock market.
The index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management and fund accounting fees. However, the
Fund's performance reflects the deduction of fees for the value-added services.
Past performance is not predictive of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
*Reflects 4.50% sales charge.
After years of preparation, the Olympic Games were held in Atlanta in July--and
were attended by more athletes and spectators than any other Olympic event in
history. Even more impressive, it now appears that the Games were a financial
success as well. Municipalities across the region have been left with little,
if any, debt, unlike many past sponsors whose economic health suffered for
years after the torch left town. This good news capped off a year when growth
in the Southeast outstripped all other parts of the country.
During the 12 months ended July 31, 1996, the performance of the companies in
our region, and in our portfolio, was strong. Our holdings in textile and
retail companies did particularly well. Since technology stocks led the market
higher throughout much of the year--and few of these companies are
headquartered in the Southeast--the Fund underperformed the S&P 500's return of
16.55%. Nonetheless, on an absolute basis, performance was solid. We are
pleased to report that for the year ended July 31, 1996, the Fund produced a
total return of 13.10% (without the sales charge).**
THE SOUTH CONTINUES TO RISE
As we've noted in previous reports, the underlying economics of the Southern
region are very strong. Employment and income growth are above the national
average, and in-migration to the area is increasing--all pointing to above-
average growth for some years to come. In fact, the only fly in the ointment is
that in the very, very short term, we may see a "post-Olympic" lull in
construction in the Atlanta area. Elsewhere, both short term and long term, the
prospects are bright.
As of July 31, 1996, the Fund's top five holdings were Healthsouth (7.13%),
Steinmart (3.63%), Health Management Associates (3.26%), Equifax (2.68%) and
Flowers Industries (2.65%).+
** The Fund's total return with the maximum 4.50% sales charge was 8.03%.
+ The composition of the Fund's holdings is subject to change.
-4-
<PAGE>
THE AMSOUTH BALANCED FUND
Balanced Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
LEHMAN BROTHERS
BALANCED GOVT./CORP.
DATE FUND S&P 500 INDEX II
- ------------------------------------------------------------
<S> <C> <C> <C>
12/19/91 9,551 10,000 10,000
07/31/92 10,861 11,283 10,724
07/31/93 12,106 12,265 11,907
07/31/94 12,727 12,898 11,892
07/31/95 14,670 16,264 13,095
07/31/96 15,897 17,360 13,518
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------
Average Annual Total Return*--07/31/96
- --------------------------------------
Since
Inception
Date 1 Year (12/19/91)
- --------------------------------------
<S> <C> <C>
Balanced Fund 3.50% 10.55%
- --------------------------------------
</TABLE>
The performance of the AmSouth Balanced Fund is measured against the S&P 500
Index, an unmanaged index generally representative of the U.S. stock market, and
the Lehman Brothers Government/Corporate Bond Index, an unmanaged broad-based
index representative of the total return of long-term government and corporate
bonds. The indices do not reflect the deduction of expenses associated with a
mutual fund, such as investment management and fund accounting fees. However,
the Fund's performance reflects the deduction of fees for the value-added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
*Reflects 4.50% sales charge.
Given the atmosphere of uncertainty in the stock and bond markets, we
approached both very cautiously throughout the year ended July 31, 1996. During
the first half of the period, with the bulls running wild in the stock market,
the Fund's allocation was weighted slightly in favor of equities. As we moved
into 1996, however, and the market continued to rise, we felt that bonds
offered investors greater potential rewards on a risk-adjusted basis. So,
throughout the spring, we reduced the Fund's stock holdings and invested the
proceeds primarily in Treasury bonds.
As a result, the Fund did not experience the precipitous decline in value that
many other funds did as stocks tumbled in July. At the same time, however,
bonds also weakened, and performance suffered slightly. Nevertheless, we are
pleased to report that for the year ended July 31, 1996, the Fund kept pace
with industry averages with a total return of 8.37% (without the sales
charge).** By comparison, the S&P 500 was up 16.55%, and the Lehman Brothers
Government/Corporate Bond Index rose 5.31%.
FINE-TUNED FOR GROWTH
Given the current levels of stock prices, we still believe that bonds offer
investors greater potential rewards on a risk-adjusted basis. Consequently, in
the months ahead, we expect to reduce the Fund's equity holdings even more in
favor of fixed-income investments. In selecting equities for the portfolio, we
will continue to seek out and invest in companies in sectors where earnings
expectations are realistic.
As of July 31, 1996, approximately 50% of the portfolio's assets were invested
in stocks, with 50% in fixed-income securities. The fixed income portion of the
portfolio was invested primarily in Treasury securities, and their average
maturity was 7.7 years. The Fund's top five equity holdings were Baxter
International (1.37%), American Home Products Corp. (1.37%), NationsBank Corp.
(1.26%), Burlington Resources (1.53%), Gannett Co., Inc. (1.23%).+
** The Fund's total return with the maximum 4.50% sales charge was 3.50%.
+ The composition of the Fund's holdings is subject to change.
-5-
<PAGE>
THE AMSOUTH BOND FUND
Bond Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
LEHMAN GOVT./
DATE BOND FUND CORP. INDEX
- --------------------------------------
<S> <C> <C>
12/01/88 9,699 10,000
07/31/89 10,757 11,188
07/31/90 11,353 11,885
07/31/91 12,261 13,103
07/31/92 14,273 15,152
07/31/93 15,672 16,824
07/31/94 15,709 16,802
07/31/95 17,231 18,502
07/31/96 17,989 19,487
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------
Average Annual Total Return*--07/31/96
- ------------------------------------------
Since
Inception
Date 1 Year 5 Year (12/1/88)
- ------------------------------------------
<S> <C> <C> <C>
Bond Fund 1.31% 7.32% 7.95%
- ------------------------------------------
</TABLE>
The performance of the AmSouth Bond Fund is measured against the Lehman Brothers
Government/Corporate Bond Index, an unmanaged index generally representative of
the total return of long-term government and corporate bonds. The index does not
reflect the deduction of expenses associated with a mutual fund, such as
investment management and fund accounting fees. However, the Fund's performance
reflects the deduction of fees for the value-added services. Past performance is
not predictive of future results. The investment return and NAV will fluctuate,
so that an investor's shares, when redeemed, may be worth more or less than the
original cost.
*Reflects 3.00% sales charge.
It was a rough-and-tumble year in the fixed-income markets. During the second
half of 1995, interest rates plunged and bonds rallied. Then, in early 1996,
reports of unexpected strength in the economy surfaced. Interest rates spiked;
prices fell; and investors' enthusiasm for bonds wilted rapidly. Given such
rapid changes, we approached the fixed-income markets very cautiously.
Early in the period, maturities in the Fund were slightly shorter than in many
comparable funds. Consequently, when rates moved higher, the Fund was bruised,
but not beaten as badly as some of its peers. Moreover, the Fund had the
flexibility to lengthen maturities and to capitalize on the opportunity to
increase yields. As a result, we are pleased to report that for the 12 months
ended July 31, 1996, the Fund had a total return of 4.40% (without the sales
charge),** in line with the 5.31% return of its benchmark, the Lehman Brothers
Government/Corporate Bond Index.
We expect the environment for fixed-income investments to improve in the months
ahead. While the signals are currently conflicting, evidence that the economy
is slowing should become clearer as 1996 draws to a close. We expect
inflationary pressures to decline--and with them, interest rates. Consequently,
in recent weeks, we've increased the Portfolio's investments in securities with
long maturities in an effort to lock in yields that we believe will, in
hindsight, seem high.
As of July 31, 1996, the average maturity of the Fund's holdings was 9.11
years, and their average credit quality was AA. Thirty-two percent of the
portfolio's assets were invested in corporate bonds, with 66% in government
securities and the remainder in cash.+
** The Fund's total return with the maximum 3.00% sales charge was 1.31%.
+ The composition of the Fund's holdings is subject to change.
-6-
<PAGE>
THE AMSOUTH LIMITED MATURITY FUND
Limited Maturity Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION> MERRILL LYNCH
LIMITED 1-5 YR. GOVERNMENT/
DATE MATURITY FUND CORPORATE INDEX
- ---------------------------------------------
<S> <C> <C>
02/01/89 9,699 10,000
07/31/89 10,366 10,783
07/31/90 11,070 11,608
07/31/91 12,073 12,786
07/31/92 13,460 14,373
07/31/93 14,365 15,397
07/31/94 14,476 15,670
07/31/95 15,584 16,925
07/31/96 16,322 17,842
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
Average Annual Total Return*--7/31/96
- -----------------------------------------------------
Since
Inception
1 Year 5 Year (2/1/89)
- -----------------------------------------------------
<S> <C> <C> <C>
Limited Maturity Fund 1.61% 5.58% 6.75%
- -----------------------------------------------------
</TABLE>
The performance of the AmSouth Limited Maturity Fund is measured against the
Merrill Lynch 1-5 Year Government/Corporate Index, an unmanaged index generally
representative of the total return of short-term government and corporate bonds.
The index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management and fund accounting fees. However, the
Fund's performance reflects the deduction of fees for the value-added services.
Past performance is not predictive of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
*Reflects 3.00% sales charge.
With its portfolio of relatively short maturity bonds, The Amsouth Limited
Maturity Portfolio is the most defensive of the Amsouth Fixed Income Funds. One
of the Portfolio's objectives is to preserve principal in volatile interest
rate environments such as the one experienced this past year.
As a result, we are pleased to report that despite the often challenging
environment of the past several months, shareholder value was maintained
throughout the 12-month period. For the year ended July 31, 1996, the Fund
produced a total return of 4.74% (without the sales charge).** That compares
with a return of 5.42% for its benchmark, the Merrill Lynch 1-5 Year
Government/Corporate Index.
At the end of the period, the average maturity of the Fund's holdings was 2.04
years. Their average credit quality was AA. Approximately 85% of the
portfolio's assets were invested in corporate bonds.+ We will continue to seek
out and capitalize on opportunities to increase yield in the months ahead.
** The Fund's total return with the maximum 3.00% sales charge was 1.61%.
+ The composition of the Fund's holdings is subject to change.
-7-
<PAGE>
THE AMSOUTH GOVERNMENT INCOME FUND
Government Income Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
GOVERNMENT LEHMAN BROTHER
DATE INCOME FUND INDEX I MORTGAGE INDEX
- --------------------------------------------------
<S> <C> <C> <C>
10/01/93 9,699 10,000 10,000
07/31/94 9,674 10,004 9,996
07/31/95 10,489 11,453 11,011
07/31/96 11,004 11,479 11,688
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------
Average Annual Total Return*--7/31/96
- ------------------------------------------
Since
Inception
1 Year (10/1/93)
- ------------------------------------------------------
<S> <C> <C>
Government Income Fund 1.71% 3.43%
- ------------------------------------------------------
</TABLE>
Until recently the Fund had invested in mortgage-backed securities with
maturities from 1 to 5 years. As a result, the Lehman Brothers 1-5 Year
Government Bond Index had been an appropriate performance benchmark, since it is
a broad measure of the mortgage-backed market in that maturity range. However,
the Fund's performance is now being compared to the Lehman Brothers Mortgage
Index to better reflect the Fund's new focus on lengthening maturities. The
index is unmanaged and does not reflect the deduction of expenses associated
with a mutual fund, such as investment management and fund accounting fees. The
Fund's performance reflects the deduction of fees for these value-added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
*Reflects 3.00% sales charge.
The anxiety over mortgage prepayments that had dampened enthusiasm for
mortgage-backed securities throughout much of 1995 evaporated as interest rates
rose in 1996. Anticipating this change in sentiment, the Fund's exposure in the
sector was dramatically increased in the first half of 1996--rising from 48% in
January to 64% of the portfolio's assets as of July 31, 1996.
We also moved quickly to lengthen maturities to lock in higher yields. In
addition, the Fund benefited from the strong performance of mortgage-backed
securities in the relatively weak bond market of the first half of 1996. For
the year ended July 31, 1996, we are pleased to report that the Fund posted a
total return of 4.91% (without the sales charge).** That compares to a return
of 6.15% for the Lehman Brothers Mortgage Index, the Fund's benchmark.
In the months ahead, we expect to see the economy slow and interest rates to
edge lower. We also do not expect to see the risk of prepayment rise
dramatically. As a result, mortgage-backed securities should continue to offer
investors an attractive yield spread over U.S. Treasury securities, and we
anticipate making few changes in the maturity structure or allocation of the
portfolio.
At period's end, the average credit quality of the Fund's holdings was AAA, and
the average maturity was 22 years.+
** The Fund's total return with the maximum 3.00% sales charge was 1.71%.
+ The composition of the Fund's holdings is subject to change.
-8-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND+
Florida Tax-Free Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
FLORIDA MERRILL LYNCH
DATE TAX-FREE FUND 3-7 YEAR INDEX
- ----------------------------------------
<S> <C> <C>
09/30/94 9,699 10,000
01/31/95 9,737 9,998
07/31/95 10,333 11,387
07/31/96 10,771 11,394
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------
Average Annual Total Return*--7/31/96
- ------------------------------------------
Since
Inception
1 Year (9/30/94)
- ------------------------------------------
<S> <C> <C>
Florida Tax-Free 1.11% 4.12%
- ------------------------------------------
</TABLE>
The performance of the AmSouth Florida Tax-Free Fund is measured against the
Merrill Lynch 3-7 Year Municipal Bond Index, an unmanaged index generally
representative of intermediate-term municipal bonds. The index does not reflect
the deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. However, the Fund's performance reflects
the deduction of fees for these value-added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
*Reflects 3.00% sales charge.
It was a challenging year for investors in Florida municipal securities. Under
pressure from taxpayers, municipalities were reluctant to float new issues, and
rising interest rates dampened enthusiasm for refinancing. As a result, after
constricting throughout much of 1995, supply dried to a trickle in 1996, which
made it extremely difficult for many Florida long-term municipal bond funds to
adjust maturities as interest rates rose. (Longer-term bonds are more likely to
fall in value as interest rates rise than are bonds with shorter maturities.)
Invested primarily in intermediate securities, however, the Fund was better
protected than longer-term funds. Moreover, tight supply worked to dampen
volatility in the Florida marketplace. As a result, for the year ended July 31,
1996, we are pleased to report that the Fund performed well, with a total
return of 4.24% (without the sales charge).** This compares to a total return
of 4.47% for the Merrill Lynch 3-7 Year Municipal Bond Index, the Fund's
benchmark.
We expect lack of supply to continue to plague the Florida market for the
foreseeable future.
While a drop in interest rates would spark some interest in municipal
refinancing, rates are unlikely to decline dramatically, although even a slight
decline as the economy slows should help to strengthen the fixed-income
markets.
Consequently, we are optimistic about the prospects for the Fund in the months
ahead, and no major changes are anticipated in the maturity or credit structure
of its portfolio. As of July 31, 1996, the average maturity of the Fund's
holdings was 5.4 years, and their average credit quality was AA1.++
** The Fund's total return with the maximum 3.00% sales charge was 1.11%.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
++ The composition of the Fund's holdings is subject to change.
-9-
<PAGE>
THE AMSOUTH MONEY MARKET FUNDS
Uncertainty over the direction of interest rates hovered over the money markets
throughout much of the year ended July 31, 1996. In the latter half of 1995,
rates slipped lower. Then, as reports indicated that the economy was growing
faster than many had anticipated, speculation that the Federal Reserve would
raise short-term interest rates intensified.
Looking ahead, we believe that the Federal Reserve will try to avoid making
interest rate changes during the election season. With maturities slightly
longer than industry averages, as of July 31, 1996, we believe The Amsouth
Money Market Funds are well positioned to capitalize on the anticipated
interest rate environment.
*The Prime Obligations Fund--At period's end, the portfolio's average maturity
was approximately 60 days.
*The U.S. Treasury Fund--As of July 31, 1996, the average maturity of the
Fund's holdings was 64 days.
*The Tax-Exempt Fund--The average maturity of the portfolio was 67 days on
July 31, 1996.
Investments in the Prime Obligations, the U.S. Treasury and the Tax-Exempt
Money Market Funds are neither insured nor guaranteed by the U.S. Government.
Although the Funds seek to maintain a stable net asset value of $1.00 per
share, there is no assurance that they will be able to do so.
-10-
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of AmSouth Mutual Funds
We have audited the accompanying statements of assets and liabilities of
AmSouth Mutual Funds (comprising, respectively, Prime Obligations Fund, U.S.
Treasury Fund, Tax-Exempt Fund, Bond Fund, Limited Maturity Fund, Government
Income Fund, Florida Tax-Free Fund, Equity Fund, Regional Equity Fund and
Balanced Fund), including the schedules of portfolio investments, as of July
31, 1996, and the related statements of operations, statements of changes in
net assets, and the financial highlights for each of the periods presented.
These financial statements and financial highlights are the responsibility of
AmSouth Mutual Fund's management. Our responsibility is to express an opinion
on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1996 by correspondence with the custodian and brokers or other auditing
procedures where confirmations from brokers were not received. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds comprising AmSouth Mutual Funds as of July 31, 1996,
and the results of their operations and the changes in their net assets and the
financial highlights for the periods referred to above in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.LP.
Columbus, Ohio
September 23, 1996
-11-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1996
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
PRIME U.S. TAX-
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- -------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost................ $550,508 $288,046 $60,387
Repurchase agreements, at cost................ 53,872 92,610
-------- -------- -------
604,380 380,656 60,387
Interest receivable........................... 2,019 1,455 525
Prepaid expenses and other assets............. 12 7 2
-------- -------- -------
Total Assets.............................. 606,411 382,118 60,914
-------- -------- -------
LIABILITIES:
Cash overdraft................................ 14 1
Dividends payable............................. 2,424 1,473 144
Accrued expenses and other payables:
Investment advisory fees.................... 205 130 11
Administration fees......................... 26 17 3
Shareholder servicing fees.................. 10 1 1
Accounting and transfer agent fees.......... 55 20 12
Other....................................... 60 52 15
-------- -------- -------
Total Liabilities......................... 2,794 1,693 187
-------- -------- -------
NET ASSETS:
Capital....................................... 603,626 380,424 60,727
Accumulated undistributed net realized gains
(losses) from investment transactions........ (9) 1 --
-------- -------- -------
Net Assets................................ $603,617 $380,425 $60,727
======== ======== =======
Net Assets
Classic Shares.............................. 125,075 12,263 17,116
Premier Shares.............................. 478,542 368,162 43,611
-------- -------- -------
603,617 380,425 60,727
======== ======== =======
Outstanding units of beneficial interest
(shares)
Classic Shares.............................. 125,081 12,262 17,116
Premier Shares.............................. 478,560 368,161 43,611
-------- -------- -------
603,641 380,423 60,727
======== ======== =======
Net asset value--offering and redemption
Classic Shares.............................. $ 1.00 $ 1.00 $ 1.00
======== ======== =======
Premier Shares.............................. $ 1.00 $ 1.00 $ 1.00
======== ======== =======
</TABLE>
See notes to financial statements.
-12-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1996
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
FLORIDA
LIMITED GOVERNMENT TAX-
BOND MATURITY INCOME FREE
FUND FUND FUND FUND
-------- -------- ---------- -------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $130,877;
$45,837; $15,971; and $47,077,
respectively)........................ $129,980 $45,265 $15,724 $48,257
Interest and dividends receivable..... 2,802 748 144 637
Receivable for capital shares issued.. 5 18 -- --
Prepaid expenses and other assets..... 2 2 2 1
-------- ------- ------- -------
Total Assets...................... 132,789 46,033 15,870 48,895
-------- ------- ------- -------
LIABILITIES:
Payable for capital shares redeemed... -- 1 104 --
Accrued expenses and other payables:
Investment advisory fees............ 40 14 3 9
Administration fees................. 3 1 -- 1
Accounting and transfer agent fees.. 3 4 3 2
Other............................... 6 8 8 14
-------- ------- ------- -------
Total Liabilities................. 52 28 118 26
-------- ------- ------- -------
NET ASSETS:
Capital............................... 133,287 47,893 16,591 47,495
Undistributed net investment income... 487 152 -- 124
Net unrealized appreciation
(depreciation) from investments...... (897) (572) (247) 1,180
Accumulated undistributed net realized
gains (losses) from investment
transactions......................... (140) (1,468) (592) 70
-------- ------- ------- -------
Net Assets........................ $132,737 $46,005 $15,752 $48,869
======== ======= ======= =======
Outstanding units of beneficial
interest (shares).................... 12,598 4,462 1,676 4,745
======== ======= ======= =======
Net asset value--redemption price per
share................................ $ 10.54 $ 10.31 $ 9.40 $ 10.30
======== ======= ======= =======
Maximum Sales Charge.................. 3.00% 3.00% 3.00% 3.00%
-------- ------- ------- -------
Maximum Offering Price (100%/(100%-
Maximum Sales Charge) of net asset
value rounded to the nearest cent)
per share............................ $ 10.87 $ 10.63 $ 9.69 $ 10.62
======== ======= ======= =======
</TABLE>
See notes to financial statements.
-13-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1996
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
REGIONAL
EQUITY EQUITY BALANCED
FUND FUND FUND
-------- -------- --------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $320,099; $75,423; and
$302,295, respectively).......................... $374,192 $93,564 $334,850
Interest and dividends receivable................. 817 107 3,735
Receivable for capital shares issued.............. 247 18 87
Receivable from brokers for investments sold...... 1 -- --
Prepaid expenses and other assets................. 11 2 16
-------- ------- --------
Total Assets.................................. 375,268 93,691 338,688
-------- ------- --------
LIABILITIES:
Payable for capital shares redeemed............... 21 43 53
Payable to brokers for investments purchased...... 379
Accrued expenses and other payables:
Investment advisory fees........................ 181 45 162
Administration fees............................. 10 2 9
Accounting and transfer agent fees.............. 21 5 14
Other........................................... 34 12 25
-------- ------- --------
Total Liabilities............................. 646 107 263
-------- ------- --------
NET ASSETS:
Capital........................................... 303,678 74,248 293,043
Undistributed net investment income............... 260 20 659
Net unrealized appreciation from investments...... 54,093 18,141 32,555
Accumulated undistributed net realized gains from
investment transactions.......................... 16,591 1,175 12,168
-------- ------- --------
Net Assets.................................... $374,622 $93,584 $338,425
======== ======= ========
Outstanding units of beneficial interest (shares). 21,256 4,467 25,965
======== ======= ========
Net asset value--redemption price per share....... $ 17.62 $ 20.95 $ 13.03
======== ======= ========
Maximum Sales Charge.............................. 4.50% 4.50% 4.50%
-------- ------- --------
Maximum Offering Price (100%/(100%-Maximum Sales
Charge) of net asset value rounded to the nearest
cent) per share.................................. $ 18.45 $ 21.94 $ 13.64
======== ======= ========
</TABLE>
See notes to financial statements.
-14-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRIME U.S. TAX
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- ------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................................... $35,026 $21,946 $2,434
------- ------- ------
Total Income..................................... 35,026 21,946 2,434
------- ------- ------
EXPENSES:
Investment advisory fees........................... 2,460 1,589 267
Administration fees................................ 1,230 794 133
Shareholder servicing fees (Classic Shares)........ 105 11 12
Custodian and accounting fees...................... 308 209 34
Legal and audit fees............................... 99 59 12
Trustees' fees and expenses........................ 23 13 2
Transfer agent fees................................ 169 95 32
Registration and filing fees....................... 24 20 9
Printing fees...................................... 38 24 4
Other.............................................. 18 10 1
------- ------- ------
Total Expenses................................... 4,474 2,824 506
Expenses voluntarily reduced....................... (63) (7) (140)
------- ------- ------
Net Expenses..................................... 4,411 2,817 366
------- ------- ------
Net Investment Income.............................. 30,615 19,129 2,068
------- ------- ------
Change in net assets resulting from operations..... $30,615 $19,129 $2,068
======= ======= ======
</TABLE>
See notes to financial statements.
-15-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
LIMITED GOVERNMENT FLORIDA
BOND MATURITY INCOME TAX-FREE
FUND FUND FUND FUND
------- -------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................... $ 7,522 $3,652 $1,312 $2,404
------- ------ ------ ------
Total Income........................... 7,522 3,652 1,312 2,404
------- ------ ------ ------
EXPENSES:
Investment advisory fees................. 712 380 114 318
Administration fees...................... 219 117 35 98
Custodian and accounting fees............ 57 31 14 32
Legal and audit fees..................... 14 9 3 8
Trustees' fees and expenses.............. 4 2 1 2
Transfer agent fees...................... 38 25 18 19
Registration and filing fees............. 12 9 6 13
Printing fees............................ 12 5 1 13
Other.................................... 2 2 1 4
------- ------ ------ ------
Total Expenses......................... 1,070 580 193 507
Expenses voluntarily reduced by
investment advisor and administrator.... (253) (134) (79) (220)
------- ------ ------ ------
Net Expenses........................... 817 446 114 287
------- ------ ------ ------
Net Investment Income.................... 6,705 3,206 1,198 2,117
------- ------ ------ ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions................. (140) (229) (352) 97
Change in unrealized depreciation from
investments............................. (2,348) (275) (9) (169)
------- ------ ------ ------
Net realized/unrealized gains from
investments............................. (2,488) (504) (361) (72)
------- ------ ------ ------
Change in net assets resulting from
operations.............................. $ 4,217 $2,702 $ 837 $2,045
======= ====== ====== ======
</TABLE>
See notes to financial statements.
-16-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
REGIONAL
EQUITY EQUITY BALANCED
FUND FUND FUND
------- -------- --------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................................... $ 1,532 $ 387 $10,340
Dividend income..................................... 8,258 1,583 4,562
------- ------ -------
Total Income...................................... 9,790 1,970 14,902
------- ------ -------
EXPENSES:
Investment advisory fees............................ 2,707 671 2,598
Administration fees................................. 715 167 650
Custodian and accounting fees....................... 163 41 159
Legal and audit fees................................ 39 11 42
Trustees' fees and expenses......................... 10 2 9
Transfer agent fees................................. 98 42 94
Registration and filing fees........................ 21 8 23
Printing fees....................................... 20 4 19
Other............................................... 7 2 8
------- ------ -------
Total Expenses.................................... 3,780 948 3,602
Expenses voluntarily reduced by investment advisor
and administrator.................................. (309) (68) (429)
------- ------ -------
Net Expenses...................................... 3,471 880 3,173
------- ------ -------
Net Investment Income............................... 6,319 1,090 11,729
------- ------ -------
REALIZED/UNREALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions..... 20,434 1,891 14,292
Change in unrealized appreciation (depreciation)
from investments................................... 6,857 6,486 (568)
------- ------ -------
Net realized/unrealized gains from investments...... 27,291 8,377 13,724
------- ------ -------
Change in net assets resulting from operations...... $33,610 $9,467 $25,453
======= ====== =======
</TABLE>
See notes to financial statements.
-17-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND U.S. TREASURY FUND TAX EXEMPT FUND
------------------------ ---------------------- --------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995 1996 1995 1996 1995
----------- ----------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income. $ 30,615 $ 27,510 $ 19,129 $ 14,989 $ 2,068 $ 1,972
Net realized gains
from investment
transactions......... -- -- -- 1 -- --
----------- ----------- ----------- --------- --------- ---------
Change in net assets
resulting from
operations............. 30,615 27,510 19,129 14,990 2,068 1,972
----------- ----------- ----------- --------- --------- ---------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income:
Classic Shares (a).... (1,925) -- (204) -- (140) --
Premier Shares (a).... (28,690) (27,510) (18,925) (14,989) (1,928) (1,972)
----------- ----------- ----------- --------- --------- ---------
Change in net assets
from shareholder
distributions.......... (30,615) (27,510) (19,129) (14,989) (2,068) (1,972)
----------- ----------- ----------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 1,554,362 1,597,046 1,097,998 900,697 138,969 99,365
Dividends reinvested.. 7,423 5,036 1,973 2,103 531 311
Cost of shares
redeemed............. (1,575,841) (1,561,740) (1,042,485) (880,465) (136,413) (102,959)
----------- ----------- ----------- --------- --------- ---------
Change in net assets
from share
transactions........... (14,056) 40,342 57,486 22,335 3,087 (3,283)
----------- ----------- ----------- --------- --------- ---------
Change in net assets.... (14,056) 40,342 57,486 22,336 3,087 (3,283)
NET ASSETS:
Beginning of period... 617,673 577,331 322,939 300,603 57,640 60,923
----------- ----------- ----------- --------- --------- ---------
End of period......... $ 603,617 $ 617,673 $ 380,425 $ 322,939 $ 60,727 $ 57,640
=========== =========== =========== ========= ========= =========
SHARE TRANSACTIONS:
Issued................ 1,554,362 1,597,046 1,097,998 900,697 138,969 99,365
Reinvested............ 7,423 5,036 1,973 2,103 531 311
Redeemed.............. (1,575,841) (1,561,740) (1,042,485) (880,465) (136,413) (102,959)
----------- ----------- ----------- --------- --------- ---------
Change in shares........ (14,056) 40,342 57,486 22,335 3,087 (3,283)
=========== =========== =========== ========= ========= =========
</TABLE>
- --------
(a) Effective April 1, 1996 the Funds' existing shares, which were previously
unclassified, were designated Premier Shares and the Fund commenced
offering Classic Shares.
See notes to financial statements.
-18-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
BOND FUND LIMITED MATURITY FUND
--------------------- ---------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............ $ 6,705 $ 6,115 $ 3,206 $ 2,888
Net realized gains (losses) from
investment transactions......... (140) 993 (229) (730)
Net change in unrealized
appreciation (depreciation) from
investments..................... (2,348) 2,305 (275) 1,456
-------- -------- -------- --------
Change in net assets resulting from
operations........................ 4,217 9,413 2,702 3,614
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income....... (6,517) (6,084) (3,206) (2,844)
In excess of net investment
income.......................... -- -- (63) --
From net realized gains from
investment transactions......... -- (328) -- --
In excess of net realized gains
from investment transactions.... (1,025) -- -- --
-------- -------- -------- --------
Change in net assets from
shareholder distributions......... (7,542) (6,412) (3,269) (2,844)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued...... 57,993 38,646 16,713 23,917
Dividends reinvested............. 5,036 3,257 1,563 894
Cost of shares redeemed.......... (21,638) (29,705) (31,502) (17,443)
-------- -------- -------- --------
Change in net assets from share
transactions...................... 41,391 12,198 (13,226) 7,368
-------- -------- -------- --------
Change in net assets............... 38,066 15,199 (13,793) 8,138
NET ASSETS:
Beginning of period.............. 94,671 79,472 59,798 51,660
-------- -------- -------- --------
End of period.................... $132,737 $ 94,671 $ 46,005 $ 59,798
======== ======== ======== ========
SHARE TRANSACTIONS:
Issued........................... 5,396 3,719 1,602 2,327
Reinvested....................... 467 314 150 88
Redeemed......................... (2,005) (2,800) (3,036) (1,718)
-------- -------- -------- --------
Change in shares................... 3,858 1,233 (1,284) 697
======== ======== ======== ========
</TABLE>
See notes to financial statements.
-19-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND FLORIDA TAX-FREE FUND
-------------------------- ------------------------
SEPTEMBER 30,
YEAR ENDED YEAR ENDED YEAR ENDED 1994 TO
JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995 1996 1995(A)
----------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income... $ 1,198 $ 1,069 $ 2,117 $ 1,511
Net realized gains
(losses) from
investment
transactions........... (352) (217) 97 (7)
Net change in unrealized
appreciation
(depreciation) from
investments............ (9) 354 (169) 1,350
----------- ----------- ------- -------
Change in net assets
resulting from
operations............... 837 1,206 2,045 2,854
----------- ----------- ------- -------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................. (1,089) (967) (2,107) (1,397)
From net realized gains
from investment
transactions........... -- -- (20) --
Tax return of capital... (10) (135) -- --
----------- ----------- ------- -------
Change in net assets from
shareholder
distributions............ (1,099) (1,102) (2,127) (1,397)
----------- ----------- ------- -------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 5,601 6,654 10,538 53,611
Dividends reinvested.... 574 723 134 40
Cost of shares redeemed. (6,840) (6,267) (10,054) (6,775)
----------- ----------- ------- -------
Change in net assets from
share transactions....... (665) 1,110 618 46,876
----------- ----------- ------- -------
Change in net assets...... (927) 1,214 536 48,333
NET ASSETS:
Beginning of period..... 16,679 15,465 48,333 --
----------- ----------- ------- -------
End of period........... $15,752 $16,679 $48,869 $48,333
=========== =========== ======= =======
SHARE TRANSACTIONS:
Issued.................. 584 711 1,023 5,353
Reinvested.............. 60 78 13 4
Redeemed................ (715) (672) (974) (674)
----------- ----------- ------- -------
Change in shares.......... (71) 117 62 4,683
=========== =========== ======= =======
</TABLE>
- --------
(a) Period from commencement of operations.
See notes to financial statements.
-20-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
EQUITY FUND REGIONAL EQUITY FUND BALANCED FUND
--------------------- --------------------- ---------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995 1996 1995 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income. $ 6,319 $ 4,996 $ 1,090 $ 809 $ 11,729 $ 10,098
Net realized gains
from investment
transactions......... 20,434 11,383 1,891 904 14,292 8,851
Net change in
unrealized
appreciation
(depreciation)
from investments..... 6,857 26,642 6,486 7,072 (568) 19,475
-------- -------- ------- ------- -------- --------
Change in net assets
resulting from
operations............. 33,610 43,021 9,467 8,785 25,453 38,424
-------- -------- ------- ------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... (6,319) (4,796) (1,069) (808) (11,648) (9,889)
In excess of net
investment income.... (7) -- -- -- -- --
From net realized
gains from investment
transactions......... (10,800) (6,679) (755) -- (7,455) (6,217)
-------- -------- ------- ------- -------- --------
Change in net assets
from shareholder
distributions.......... (17,126) (11,475) (1,824) (808) (19,103) (16,106)
-------- -------- ------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 140,796 75,477 26,244 16,875 93,191 69,297
Dividends reinvested.. 10,225 6,461 1,130 454 14,962 10,838
Cost of shares
redeemed............. (68,640) (43,338) (9,934) (11,549) (71,587) (43,250)
-------- -------- ------- ------- -------- --------
Change in net assets
from share
transactions........... 82,381 38,600 17,440 5,780 36,566 36,885
-------- -------- ------- ------- -------- --------
Change in net assets.... 98,865 70,146 25,083 13,757 42,916 59,203
NET ASSETS:
Beginning of period... 275,757 205,611 68,501 54,744 295,509 236,306
-------- -------- ------- ------- -------- --------
End of period......... $374,622 $275,757 $93,584 $68,501 $338,425 $295,509
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
Issued................ 8,082 4,997 1,277 970 7,104 5,839
Reinvested............ 597 450 55 26 1,148 939
Redeemed.............. (3,888) (2,851) (482) (662) (5,449) (3,630)
-------- -------- ------- ------- -------- --------
Change in shares........ 4,791 2,596 850 334 2,803 3,148
======== ======== ======= ======= ======== ========
</TABLE>
See notes to financial statements.
-21-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (1.7%):
Euro Certificate of Deposits (1.7%):
$10,000 Bank of Tokyo, Mitsubishi, Ltd., 5.62%, 10/30/96 $ 10,000
--------
Total Certificates of Deposit 10,000
--------
COMMERCIAL PAPER (64.5%):
Asset Backed (8.4%):
1,000 Cooper River Funding, Inc., 5.40%, 8/23/96............... 997
10,000 Greenwich Funding Corp., 5.34%, 9/3/96................... 9,951
10,000 Greenwich Funding Corp., 5.37%, 9/4/96................... 9,949
9,730 Redwood Receivables Corp., 5.37%, 8/28/96................ 9,691
5,000 Sigma Finance Inc., 5.38%, 8/9/96........................ 4,994
1,100 Sigma Finance Inc., 5.43%, 9/16/96....................... 1,092
9,000 Sigma Finance Inc., 5.45%, 10/8/96....................... 8,907
5,000 Sigma Finance Inc., 5.45%, 10/15/96...................... 4,943
--------
50,524
--------
Automotive (11.0%):
10,000 Daimler-Benz North America Corp., 5.38%, 9/10/96......... 9,940
10,000 Daimler-Benz North America Corp., 5.39%, 9/10/96......... 9,940
10,000 Ford Motor Credit Co., 5.45%, 10/9/96.................... 9,896
15,000 General Motors Acceptance Corp., 5.45%, 9/6/96........... 14,918
5,000 General Motors Acceptance Corp., 5.35%, 12/13/96......... 4,900
5,000 Mitsubishi Motors Credit of America, Inc., 5.45%, 8/5/96. 4,997
10,000 Mitsubishi Motors Credit of America, Inc., 5.50%,
10/17/96................................................ 9,882
1,750 Toyota Motor Credit Corp., 5.38%, 9/4/96................. 1,741
--------
66,214
--------
Beverages (1.6%):
10,000 The Coca-Cola Co., 5.45%, 10/4/96........................ 9,903
--------
Chemicals (2.5%):
10,000 Engelhard Corp., 5.43%, 10/16/96......................... 9,885
5,000 Monsanto Co., 5.40%, 10/16/96............................ 4,943
--------
14,828
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Domestic Banking (0.8%):
$5,000 Banc One Corp., 5.35%, 8/23/96........................... $ 4,984
--------
Financial Services (10.3%):
5,000 General Electric Capital Corp., 5.55%, 3/25/97........... 4,818
10,000 Island Finance Puerto Rico, Inc., 5.40%, 9/17/96......... 9,930
10,000 Island Finance Puerto Rico, Inc., 5.48%, 10/9/96......... 9,895
13,000 Norwest Corp., 5.44%, 10/11/96........................... 12,861
10,000 Pemex Capital, Inc., 5.45%, 10/10/96..................... 9,894
15,000 Queensland Treasury Corp., 5.49%, 10/7/96................ 14,847
--------
62,245
--------
Foreign Banking (4.3%):
11,000 ABN-Amro North America Finance Corp., 4.95%, 8/22/96..... 10,968
5,000 Abbey National N. A., 5.05%, 3/3/97...................... 4,988
10,000 Toronto Dominion Holdings, 5.40%, 10/8/96................ 9,898
--------
25,854
--------
Governments (Foreign) (3.2%):
10,000 Canadian Wheat Board, 5.35%, 9/13/96..................... 9,936
10,000 Province of British Columbia, 5.32%, 10/3/96............. 9,907
--------
19,843
--------
Health Care (2.1%):
10,000 Glaxo-Wellcome, PLC, 5.30%, 8/13/96...................... 9,982
3,000 Glaxo-Wellcome, PLC, 5.37%, 9/16/96...................... 2,979
--------
12,961
--------
Industrial Goods & Services (4.2%):
8,250 Cargill, Inc., 5.36%, 9/24/96............................ 8,184
10,000 Cargill, Inc., 5.43%, 10/10/96........................... 9,894
7,000 North Hill Finance, 5.32%, 8/6/96........................ 6,995
--------
25,073
--------
Insurance (2.6%):
5,000 Great West Life & Annuity Insurance Co., 5.37%, 8/9/96... 4,994
5,000 Great West Life & Annuity Insurance Co., 5.33%, 9/6/96... 4,973
6,000 Internationale Nederlanden U.S. Insurance Holdings, Inc.,
5.28%, 8/21/96.......................................... 5,982
--------
15,949
--------
</TABLE>
Continued
-22-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Leasing (3.3%):
$ 5,000 Hitachi Credit America Corp., 5.45%, 9/27/96.............. $ 4,957
5,000 Hitachi Credit America Corp., 5.47%, 11/14/96............. 4,920
10,000 International Lease Finance, 5.40%, 10/17/96.............. 9,885
--------
19,762
--------
Manufacturing--Miscellaneous (1.3%):
5,000 Mitsubishi International Corp., 5.33%, 8/30/96............ 4,979
2,625 Mitsubishi International Corp., 5.40%, 8/30/96............ 2,613
--------
7,592
--------
Security Brokers & Dealers (7.9%):
10,000 Bear Stearns & Co., Inc., 5.34%, 10/1/96.................. 9,910
10,000 C.S. First Boston, 5.49%, 4/1/97*......................... 10,000
10,000 Goldman Sachs Group, LP, 5.32%, 9/4/96.................... 9,950
5,000 Merrill Lynch & Co., Inc., 5.28%, 8/15/96................. 4,990
3,000 Merrill Lynch & Co., Inc., 5.40%, 9/3/96.................. 2,985
10,000 Merrill Lynch & Co., Inc., 5.49%, 1/15/97*................ 10,000
--------
47,835
--------
Telecommunications Equipment (0.8%):
5,000 Lucent Technologies, 5.34%, 9/23/96....................... 4,961
--------
Telecommunications (0.2%):
1,000 AT&T Corp., 5.40%, 8/27/96................................ 996
--------
Total Commercial Paper 389,524
--------
CORPORATE BONDS (2.7%):
Banking--Domestic (0.8%):
5,000 First Chicago NBD Corp., 7.88%, 1/21/97................... 5,046
--------
Financial Services (1.7%):
4,245 American General Finance Corp., 6.63%, 6/1/97............. 4,258
2,000 Paccar Financial Corp., 5.43%, 6/2/97..................... 1,989
3,000 American General Finance, 5.80%, 4/1/97................... 3,008
--------
6,247
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utility--Electric (0.3%):
$ 2,000 Portland General Electric Co., 6.76%, 1/15/97............. $ 2,007
--------
Total Corporate Bonds 16,308
--------
GUARANTEED INSURANCE CONTRACTS (4.1%):
12,500 Commonwealth Life Insurance Co., 5.73%, 8/1/19* (b)....... 12,500
12,500 Peoples Security Life, 5.68%, 8/1/19* (b)................. 12,500
--------
Total Guaranteed Insurance Contracts 25,000
--------
MEDIUM TERM NOTES (14.7%):
Automotive (2.9%):
2,600 Ford Motor Credit Corp., 7.88%, 10/15/96.................. 2,611
5,100 Toyota Motor Credit Co., 6.88%, 10/15/96.................. 5,116
10,000 Toyota Motor Credit Co., 5.00%, 2/26/97................... 9,993
--------
17,720
--------
Banking (4.9%):
4,155 Bankers Trust, 7.25%, 11/1/96............................. 4,175
15,000 Comerica Bank of Detroit, 5.40%, 9/18/96*................. 14,999
5,000 PNC Bank, N.A., 5.42%, 1/6/97*............................ 4,999
975 Security Pacific Corp., 8.49%, 12/27/96................... 999
4,000 Wachovia Bank, 6.20%, 8/5/96.............................. 4,000
--------
29,172
--------
Farm Equipment (0.3%):
2,000 John Deere Capital Corp., 4.63%, 9/2/96................... 1,999
--------
Financial Services (4.9%):
10,000 General Electric Capital Corp., 5.49%, 8/1/96*............ 10,000
4,300 General Electric Capital Corp., 7.85%, 2/1/97............. 4,353
5,000 Norwest Financial Inc., 4.97%, 10/29/96................... 4,992
10,300 Norwest Corp., 7.88%, 1/30/97............................. 10,399
--------
29,744
--------
Insurance (0.9%):
5,000 ITT Hartford, 7.25%, 12/1/96.............................. 5,030
--------
Leasing (0.8%):
5,000 International Lease Finance, 5.88%, 2/1/97................ 5,013
--------
Total Medium Term Notes 89,678
--------
</TABLE>
Continued
-23-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------- ---------
<S> <C> <C>
MUNICIPAL BONDS (1.7%):
New York (1.7%):
$10,000 New York City, 5.34%, 8/20/96, FGIC*. $ 10,000
--------
Total Municipal Bonds 10,000
--------
U.S. GOVERNMENT AGENCIES (1.8%):
11,000 Federal National Mortgage Assoc.,
5.30%, 10/18/96*.................... 10,998
--------
Total U.S. Government Agencies 10,998
--------
Total Investments 550,508
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
REPURCHASE AGREEMENTS (8.9%):
54,443 First Boston Corp., 5.75%, 8/1/96;
(Collateralized by 57,355
U.S. Government Agency Securities,
5.29%-5.51%, 8/5/96-11/4/96,
market value--$56,564)................................. $ 53,872
--------
Total Repurchase Agreements 53,872
--------
Total (Cost--$604,380)(a) $604,380
========
</TABLE>
- --------
Percentages indicated are based on net assets of $603,617.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rates reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1996.
(b) Put and demand features exist allowing the Fund to require the repurchase
of the instrument quarterly.
FGIC--Insured by Financial Guaranty Insurance Corp.
See notes to financial statements.
-24-
<PAGE>
AMSOUTH MUTUAL FUNDS
U.S. TREASURY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY BILLS (57.0%):
$25,000 4.99%, 8/1/96............................................ $ 25,000
5,000 5.04%, 8/8/96............................................ 4,995
25,000 5.14%, 8/15/96........................................... 24,951
5,000 5.08%, 8/22/96........................................... 4,986
10,000 5.13%, 9/5/96............................................ 9,951
25,000 5.11%, 9/12/96........................................... 24,851
10,000 5.11%, 9/19/96........................................... 9,930
20,000 5.18%, 10/3/96........................................... 19,822
5,000 5.18%, 10/10/96.......................................... 4,950
25,000 5.19%, 10/17/96.......................................... 24,725
20,000 5.14%, 10/31/96.......................................... 19,740
10,000 5.07%, 11/14/96.......................................... 9,858
5,000 5.11%, 11/14/96.......................................... 4,929
5,000 5.33%, 12/5/96........................................... 4,909
6,000 4.65%, 12/12/96.......................................... 5,899
6,000 4.90%, 1/9/97............................................ 5,875
6,000 5.48%, 5/29/97........................................... 5,725
6,000 5.54%, 6/26/97........................................... 5,701
--------
Total U.S. Treasury Bills 216,797
--------
U.S. TREASURY NOTES (18.7%):
20,000 6.25%, 8/31/96........................................... 20,010
5,000 6.50%, 9/30/96........................................... 5,006
6,000 8.00%, 10/15/96.......................................... 6,033
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED :
$ 6,000 4.38%, 11/15/96......................................... $ 5,988
6,000 7.25%, 11/15/96......................................... 6,034
5,000 7.50%, 1/31/97.......................................... 5,045
6,000 4.75%, 2/15/97.......................................... 5,997
6,000 6.88%, 2/28/97.......................................... 6,053
5,000 6.88%, 3/31/97.......................................... 5,045
6,000 6.50%, 4/30/97.......................................... 6,038
--------
Total U.S. Treasury Notes 71,249
--------
Total Investments 288,046
--------
REPURCHASE AGREEMENTS (24.3%):
46,305 First Boston Corp., 5.60%, 8/1/96, (Collateralized by
46,685 U.S. Treasury Notes, 7.50%, 12/31/96, market
value - $47,345)....................................... 46,305
46,305 Merrill Lynch & Co., 5.60%, 8/1/96, (Collateralized by
35,794 U.S. Treasury Bonds, 10.75%-12.38%, 5/15/03-
5/15/04, market value-- $47,232)....................... 46,305
--------
Total Repurchase Agreements 92,610
--------
Total (Cost--$380,656)(a) $380,656
========
</TABLE>
- --------
Percentages indicated are based on net assets of $380,425.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
-25-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
ANTICIPATION NOTES (17.3%):
Alabama (0.5%):
$ 325 Mobile, Water & Sewer Revenue Bonds, 4.00%, 1/1/97,
FGIC................................................... $ 326
-------
Colorado (2.5%):
1,500 Colorado General Fund Tax, RANs, 4.50%, 6/27/97......... 1,509
-------
Connecticut (0.5%):
305 Connecticut State Development, 3.75%, 12/15/96.......... 305
-------
Georgia (0.7%):
425 Dekalb, GO, 3.45%, 10/1/96.............................. 425
-------
Hawaii (0.7%):
500 Hawaii State, GO, 3.40%, 11/1/96........................ 499
-------
Illinois (2.5%):
500 Du Page County, 6.80%, 1/1/97........................... 516
1,000 Illinois School District, 6.30%, 1/1/97, FGIC........... 1,011
-------
1,527
-------
Massachusetts (0.4%):
250 Massachusetts State, GO, 7.13%, 10/1/05, Pre-refunded on
10/1/96 @102........................................... 257
-------
Minnesota (1.2%):
705 Minneapolis & St. Paul Housing Authority, 3.85%,
8/15/96, CGIC.......................................... 705
-------
Missouri (0.6%):
340 University of Missouri, 9.50%, 11/9/09, Pre-refunded on
11/1/96 @103........................................... 355
-------
New Jersey (0.2%):
100 Union County, 6.00%, 8/1/96............................. 100
-------
Oregon (0.6%):
330 Oregon State, 12.54%, 9/1/07**.......................... 339
-------
Tennessee (3.6%):
1,600 Tennessee State School Board Authority Higher Education,
Bonds Anticipation Notes, Series B, 3.55%, 3/1/98, LOC:
Swiss Bank*............................................ 1,600
600 Tennessee State School Board Authority Higher
Educational Facilities, Bond Anticipation Notes, 3.55%,
3/1/98, LOC: Swiss Bank*............................... 600
-------
2,200
-------
Texas (3.3%):
465 Lubbock, GO, 6.30%, 2/15/97............................. 472
1,500 Texas State Tax & Revenue, Series A, 4.75%, 8/30/96..... 1,501
-------
1,973
-------
Total Anticipation Notes 10,520
-------
</TABLE>
Continued
-26-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
DEMAND NOTES (39.9%):
Alabama (14.2%):
$ 150 Arab Revenue Bonds, 3.75%, 8/1/00, LOC: Bank of Tokyo*.. $ 150
2,000 City of Birmingham, GO, 3.62%, 5/1/19, LOC: First
Alabama Bank*.......................................... 2,000
1,000 Columbia Industrial Development Board, 3.60%, 10/1/22,
LOC: Alabama Power*.................................... 1,000
2,000 Mobile, Industrial Development Board, PCR, Series B,
3.70%, 8/1/17*......................................... 2,000
1,800 North Alabama Environmental Improvement Authority, PCR,
3.65%, 12/1/00*........................................ 1,800
1,665 Stevenson, Industrial Development Board, Environmental
Improvement Revenue Refunding, Series 1986, 3.65%,
11/1/16, LOC: Credit Suisse*........................... 1,665
-------
8,615
-------
California (0.8%):
500 La Regional Airport Improvement Corp., 3.65%, 12/1/24*.. 500
-------
Colorado (0.3%):
200 Adams County, Individual Development Revenue, 3.65%,
12/1/15, LOC: Barclays Bank*........................... 200
-------
Delaware (0.3%):
200 Wilmington, Franciscan Health System, Series 1986B,
3.65%, 7/1/11, LOC: Toronto Dominion*.................. 200
-------
Georgia (3.4%):
1,100 Cobb County Housing Authority, MFH Revenue, 3.65%,
6/1/23 LOC: Societe Generale*.......................... 1,100
500 Savannah, Downtown Development Authority, 3.65%, 9/1/97,
LOC: National West*.................................... 500
350 Savannah, Downtown Development Authority, 3.65%, 9/1/98,
LOC: National West*.................................... 350
100 Turner County Development Authority, Industrial
Development Revenue, Coats & Clark, Inc., 3.65%,
10/1/98, LOC: Wachovia Bank*........................... 100
-------
2,050
-------
Illinois (2.4%):
965 Health Facility Revenue, Franciscan Nuns, 3.65%,
5/15/19*............................................... 965
500 O'Hare International Airport, 3.60%, 1/1/15*............ 500
-------
1,465
-------
Missouri (5.2%):
535 Missouri State Industrial Development Board, Lot 2,
Series F, 3.75%, 2/1/04*............................... 535
585 Missouri State Industrial Development Board, Series 2,
3.75%, 2/1/00 LOC: Union Bank of Switzerland*.......... 585
2,000 St. Charles County, Industrial Development Authority,
3.65%, 12/1/07 LOC: Bank of America*................... 2,000
-------
3,120
-------
Nebraska (2.3%):
1,400 Nebraska Educational Facility Authority, 3.75%,
12/1/00*............................................... 1,400
-------
North Carolina (0.2%):
100 Alamance Industrial Facility, PCR, 3.70%, 4/1/15, LOC:
PNC KY*................................................ 100
-------
Ohio (1.5%):
900 Hamilton County Health Care Facilities, 3.62%, 7/1/17,
LOC: Fifth Third*...................................... 900
-------
</TABLE>
Continued
-27-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
DEMAND NOTES, CONTINUED
Oregon (1.9%):
$ 500 Franciscan Health, Series 1985A, 3.65%, 12/1/24*........ $ 500
100 Oregon State, Series 73E, 3.50%, 12/1/16*............... 100
550 Oregon State, Series 73, 3.50%, 12/1/17*................ 550
-------
1,150
-------
Tennessee (3.6%):
1,200 Metropolitan Nashville Airport, 3.40%, 10/1/12*......... 1,200
1,000 Tennessee State School Bond Authority, 3.55%, 3/1/98,
LOC: Swiss Bank*....................................... 1,000
-------
2,200
-------
Texas (2.6%):
500 Grapevine, 3.65%, 12/1/24*.............................. 500
500 Lone Star Airport Improvement Authority, 3.85%, 12/1/14
LOC: Royal Bank of Canada*............................. 500
600 Lone Star Airport Improvement Authority 5, 3.65%,
12/1/14 LOC: Royal Bank of Canada*..................... 600
-------
1,600
-------
West Virginia (1.2%):
700 Putnam County, Industrial Revenue, 3.55%, 11/1/12 LOC:
Union Bank of Switzerland*............................. 700
-------
Total Demand Notes 24,200
-------
MUNICIPAL BONDS (26.7%):
Alabama (1.7%):
1,000 Jacksonville, 3.65%, 9/1/12, LOC: Wachovia Bank*........ 1,000
-------
Arizona (3.2%):
500 Arizona Health Facility Authority Revenue, 3.65%,
10/1/15*............................................... 500
900 Phoenix, GO, 3.65%, 6/1/20, LOC: Morgan Guaranty*....... 900
500 Scottsdale, Certificates, 7.70%, 11/1/00, Pre-refunded
on 11/1/96 @102, FGIC.................................. 515
-------
1,915
-------
Connecticut (1.2%):
745 Connecticut State Tax Obligation Revenue, 3.60%,
10/1/96, FGIC.......................................... 745
-------
Georgia (2.2%):
1,000 Georgia State, Preferred, 6.75%, 9/1/96................. 1,023
310 Georgia State, GO, 7.50%, 5/1/05, Pre-refunded on 5/1/97
@102**................................................. 324
-------
1,347
-------
Hawaii (1.6%):
970 Kauai County, 6.70%, 2/1/06, Pre-refunded on 2/1/97
@100, MBIA............................................. 985
-------
Illinois (3.6%):
700 Chicago, GO, 3.65%, 10/31/96, LOC: Morgan Guaranty*..... 700
1,400 Du Page Water Revenue, 6.88%, 5/1/14.................... 1,458
-------
2,158
-------
</TABLE>
Continued
-28-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Iowa (1.0%):
$ 585 Ottumwa Hospital Facility, 9.63%, 11/1/10, Pre-refunded
on 11/1/96 @103........................................ $ 611
-------
Kansas (1.7%):
500 Topeka, GO, 7.50%, 10/1/05, Pre-refunded on 10/1/96
@100................................................... 503
100 Wichita, GO, 3.50%, 9/1/96.............................. 100
200 Wichita, GO, 6.80%, 9/1/96.............................. 200
215 Wichita, GO, 6.75%, 12/1/96............................. 217
-------
1,020
-------
Massachusetts (0.5%):
300 Worcester, GO, 6.80%, 9/4/96............................ 307
-------
Michigan (1.7%):
1,000 Detroit Sewer District Revenue, 6.75%, 7/1/01........... 1,044
-------
Nevada (0.5%):
300 Nevada State, GO, 5.00%, 9/1/96......................... 300
-------
New Jersey (0.3%):
205 Essex County, Law Improvement, 5.88%, 10/1/96........... 206
-------
New York (2.7%):
500 New York City, GO, 3.65%, 8/1/23, LOC: Morgan Guaranty*. 500
1,100 New York State Dorm Authority Revenue, 6.30%, 11/1/96... 1,107
-------
1,607
-------
Ohio (0.3%):
200 North Royalton City Schools, GO, 4.35%, 12/1/96, MBIA... 200
-------
Pennsylvania (1.7%):
1,000 Pennsylvania State Revenue, Series A, 7.88%, 12/1/06,
Pre-refunded on 12/1/96 @102**......................... 1,033
-------
South Carolina (0.8%):
500 South Carolina State Capital Improvement, 6.70%, 8/1/98,
Pre-refunded on 8/1/96 @102............................ 510
-------
Texas (2.0%):
100 Dallas County Revenue Bond, 5.00%, 5/15/97, AMBAC....... 101
105 Lewisville Water & Sewer Revenue Bond, 7.65%, 2/15/97... 107
1,000 San Antonio, GO, 5.10%, 8/1/96.......................... 1,000
-------
1,208
-------
Total Municipal Bonds 16,196
-------
SHORT TERM PUTS (3.3%):
Connecticut (3.3%):
2,000 State Special Assessment Unemployment Compensation,
Series C, 3.90%, 11/15/01**............................ 2,000
-------
Total Short Term Puts 2,000
-------
</TABLE>
Continued
-29-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER (9.2%):
Louisiana (1.8%):
$1,100 Louisiana, Pollution Facility Authority, 3.35%,
1/1/15**............................................... $ 1,100
-------
Missouri (3.3%):
2,000 Missouri State Environmental Improvement & Energy
Resources Authority, PCR, 3.35%, 6/1/15, LOC: Union
Bank of Switzerland.................................... 2,000
-------
Texas (1.6%):
1,000 Texas A&M Board of Regents, University Fund Subordinate
Notes, Series B, 3.40%, 7/1/17**....................... 1,000
-------
Washington (2.5%):
1,500 Seattle Municipal Light & Power, 3.70%, 2/4/97, LOC:
Morgan Guaranty........................................ 1,500
-------
Total Tax Free Commercial Paper 5,600
-------
INVESTMENT COMPANIES (3.1%):
394 Federated Tax Free Trust Mutual Fund.................... 394
1,477 Goldman Sachs Tax Free Fund............................. 1,477
-------
Total Investment Companies 1,871
-------
Total (Cost--$60,387)(a) $60,387
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $60,727.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate,
which will change periodically, is based upon bank prime rates or an index
of market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1996.
** Put and demand features exist allowing the Fund to require the repurchase
of the instrument within variable time periods including daily, weekly,
monthly, or semiannually.
AMBAC--Insured by AMBAC Indemnity Corporation
CGIC--Insured by Capital Guaranty Insurance Company
FGIC--Insured by Financial Guaranty Insurance Corporation
GO--General Obligation
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Association
MFH--Multi-Family Housing
PCR--Pollution Control Revenue
RANs--Revenue Anticipation Notes
See notes to financial statements.
-30-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (31.5%):
Appliances (0.4%):
$ 500 Whirlpool Corp., 9.50%, 6/15/00........................... $ 543
--------
Automotive (1.9%):
1,570 Ford Capital, 9.13%, 5/1/98............................... 1,637
800 General Motors Corp., 9.63%, 12/1/00...................... 875
--------
2,512
--------
Banking (4.1%):
1,070 Bank of America, 9.50%, 4/1/01............................ 1,170
1,000 Bankers Trust Co., 9.50%, 6/14/00......................... 1,076
2,306 NationsBank Corp., 5.38%, 4/15/00......................... 2,194
1,000 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 999
--------
5,439
--------
Brokerage Services (2.9%):
1,000 Bear Stearns & Co., Inc., 6.50%, 6/15/00.................. 981
1,000 Merrill Lynch & Co., Inc., 9.00%, 5/1/98.................. 1,041
750 Merrill Lynch & Co., Inc., 8.25%, 11/15/99................ 780
1,000 Morgan Stanley Group, Inc., 9.25%, 3/1/98................. 1,040
--------
3,842
--------
Entertainment (0.8%):
1,000 Columbia Picture Entertainment, Inc., 9.88%, 2/1/98....... 1,038
--------
Financial Services (5.0%):
500 Associates Corp., 8.63%, 6/15/97.......................... 510
1,000 Associates Corp., 6.25%, 3/15/99.......................... 991
2,000 Avco Financial, 5.50%, 4/1/00............................. 1,913
500 Beneficial Corp., 9.90%, 11/17/97......................... 521
1,300 British Telcom Finance, Inc., 9.38%, 2/15/99.............. 1,383
300 CIT Group Holdings, Inc., 8.75%, 7/1/97................... 307
1,000 Margaretten Financial, 6.75%, 6/15/00..................... 990
--------
6,615
--------
Industrial Goods & Services (1.6%):
1,050 Browning Ferris International, 6.10%, 1/15/03............. 995
1,156 Rockwell International, 6.63%, 6/1/05..................... 1,113
--------
2,108
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Insurance (3.6%):
$ 1,000 AON Corp., 6.88%, 10/1/99................................. $ 1,000
1,600 Capital Holding Corp., 9.20%, 4/17/01..................... 1,732
640 Chubb Corp., 8.75%, 11/15/99.............................. 674
1,300 Torchmark Corp., 9.63%, 5/1/98............................ 1,360
--------
4,766
--------
Oil & Gas Exploration & Production Services (1.2%):
1,450 BP America, 9.38%, 11/1/00 ............................... 1,582
--------
Pharmaceuticals (0.8%):
1,000 McKesson Corp., 8.63%, 2/1/98 ............................ 1,030
--------
Railroads (1.9%):
1,500 Union Pacific Corp., 6.25%, 3/15/99....................... 1,479
1,000 Union Pacific Corp., 7.00%, 6/15/00....................... 1,000
--------
2,479
--------
Utility--Electric (4.5%):
1,000 Con Edison, 6.63%, 2/1/02................................. 984
470 National Rural, 9.50%, 5/15/97............................ 481
1,500 Northern States Power, 7.88%, 10/1/01..................... 1,551
1,000 Oklahoma Gas & Electric, 6.25%, 10/15/00.................. 974
1,000 Southern California Edison, 5.60%, 12/15/98............... 979
1,000 Virginia Electric & Power, 7.25%, 3/1/97.................. 1,006
--------
5,975
--------
Utility--Telephone (2.8%):
1,000 General Telephone & Electric, 5.82%, 12/1/99.............. 972
2,000 General Telephone & Electric-California, 5.63%, 2/1/01.... 1,898
1,000 BellSouth Telecommunications, 6.25%, 5/15/03.............. 964
--------
3,834
--------
Total Corporate Bonds 41,763
--------
U.S. GOVERNMENT AGENCIES (2.2%):
Federal Home Loan Mortgage Corp.:
2,000 5.40%, 11/1/00............................................ 1,901
</TABLE>
Continued
-31-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal National Mortgage Assoc.:
$ 1,000 6.40%, 5/2/01............................................. $ 985
--------
Total U.S. Government Agencies 2,886
--------
U.S. TREASURY BONDS (18.5%):
4,500 7.50%, 11/15/16........................................... 4,698
22,000 6.25%, 8/15/23............................................ 19,823
--------
Total U.S. Treasury Bonds 24,521
--------
U.S. TREASURY NOTES (39.9%):
3,000 6.38%, 1/15/99............................................ 3,004
11,000 7.50%, 11/15/01........................................... 11,432
17,000 6.38%, 8/15/02............................................ 16,784
13,000 5.75%, 8/15/03............................................ 12,314
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED:
$10,000 5.88%, 11/15/05........................................... $ 9,376
--------
Total U.S. Treasury Notes 52,910
--------
U.S. TREASURY STRIPS (5.0%):
11,000 5.30%, 2/15/04............................................ 6,659
--------
Total U.S. Treasury Strips 6,659
--------
INVESTMENT COMPANIES (0.9%):
1,238 AmSouth Prime Obligations Fund............................ 1,238
3 AmSouth U.S. Treasury Fund................................ 3
--------
Total Investment Companies 1,241
--------
Total (Cost--$130,877)(a) $129,980
========
</TABLE>
- --------
Percentages indicated are based on net assets of $132,737.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation $1,553
Unrealized depreciation (2,450)
-------
Net unrealized depreciation $ (897)
=======
</TABLE>
See notes to financial statements.
-32-
<PAGE>
AMSOUTH MUTUAL FUNDS
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
CORPORATE BONDS (85.1%):
Banking (24.1%):
500 Chemical Banking, 6.63%, 1/15/98........................... $ 501
1,000 Comerica, 5.95%, 9/15/97................................... 995
2,000 First Union Corp., 6.75%, 1/15/98.......................... 2,010
1,000 Huntington National Bank, 4.48%, 10/14/96.................. 997
2,000 Mellon Financial, 6.50%, 12/1/97........................... 2,000
2,540 NationsBank Corp., 6.63%, 1/15/98.......................... 2,550
2,000 Security Pacific Corp., 8.49%, 12/27/96.................... 2,015
-------
11,068
-------
Beverages (3.2%):
1,500 PepsiCo., Inc., 5.46%, 7/1/98.............................. 1,472
-------
Brokerage Services (4.3%):
2,000 Dean Witter Discover & Co., 6.00%, 3/1/98 1,988
-------
Chemicals (4.3%):
2,000 Dow Capital, 5.75%, 9/15/97................................ 1,995
-------
Electric Utility (8.5%):
2,000 Florida Power & Light, 5.70%, 3/5/98....................... 1,978
1,950 Georgia Power, 6.13%, 9/1/99............................... 1,917
-------
3,895
-------
Electrical & Electronic (4.4%):
2,000 Sony Capital Corp., 6.98%, 7/2/97.......................... 2,022
-------
Financial Services (17.9%):
1,200 Associates Corp. of North America, 7.50%, 5/15/99.......... 1,224
2,000 Beneficial Corp., 7.32%, 11/17/99.......................... 2,030
500 Commercial Credit Co., 6.75%, 1/15/97...................... 502
1,500 Ford Motor Credit Corp., 6.00%, 3/24/98.................... 1,491
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, continued:
2,000 Norwest Financial, Inc., 5.20%, 4/29/97.................... $ 1,991
1,000 American General Finance, 5.80%, 4/1/97.................... 998
-------
8,236
-------
Food Products (9.5%):
2,500 General Mills, 7.13%, 10/3/97.............................. 2,524
1,850 Grand Metro Investment, 6.50%, 9/15/99..................... 1,833
-------
4,357
-------
Insurance (4.5%):
2,000 American General Corp., 7.70%, 10/15/99.................... 2,053
-------
Leasing (4.5%):
2,000 USL Capital Corp., 8.13%, 2/15/00.......................... 2,067
-------
Total Corporate Bonds 39,153
-------
U.S. GOVERNMENT AGENCIES (2.1%):
1,000 Federal Home Loan Mortgage Corp., 5.75%, 11/16/98.......... 984
-------
Total U.S. Government Agencies 984
-------
U.S. TREASURY NOTES (10.5%):
5,000 5.63%, 11/30/00............................................ 4,828
-------
Total U.S. Treasury Notes 4,828
-------
INVESTMENT COMPANIES (0.7%):
300 AmSouth Prime Obligations Fund............................. 300
-------
Total Investment Companies 300
-------
Total (Cost--$45,837)(a) $45,265
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $46,005.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows (amounts in
thousands):
<TABLE>
<S> <C>
Unrealized appreciation $ 373
Unrealized depreciation (945)
-----
Net unrealized appreciation $(572)
=====
</TABLE>
See notes to financial statements.
-33-
<PAGE>
AMSOUTH MUTUAL FUNDS
GOVERNMENT INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (67.2%):
Government National Mortgage Assoc.:
$ 66 9.50%, 5/15/18.............................................. $ 70
93 9.00%, 6/15/18.............................................. 97
116 9.00%, 8/15/18.............................................. 122
132 9.50%, 2/15/19.............................................. 141
196 9.50%, 6/15/19.............................................. 208
21 9.50%, 7/15/19.............................................. 22
343 9.00%, 10/15/19............................................. 357
145 9.00%, 12/15/19............................................. 151
74 8.50%, 12/15/19............................................. 75
153 9.00%, 1/15/20.............................................. 160
78 9.00%, 3/15/20.............................................. 81
118 9.00%, 5/15/20.............................................. 123
74 9.50%, 5/15/20.............................................. 79
394 9.50%, 9/15/20.............................................. 418
159 8.50%, 11/15/20............................................. 163
75 9.00%, 11/15/20............................................. 78
456 9.50%, 11/15/20............................................. 484
86 9.50%, 12/15/20............................................. 91
22 9.50%, 1/15/21.............................................. 24
458 9.00%, 2/15/21.............................................. 477
243 8.50%, 8/15/21.............................................. 248
267 9.50%, 8/15/21.............................................. 284
197 9.00%, 9/15/21.............................................. 206
90 8.50%, 10/15/21............................................. 92
175 9.00%, 10/15/21............................................. 183
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
$ 153 9.00%, 1/15/22............................................. $ 160
26 9.00%, 4/15/22............................................. 27
104 9.00%, 6/15/22............................................. 108
25 9.00%, 9/15/22............................................. 26
17 8.50%, 2/15/23............................................. 17
221 7.50%, 6/15/24............................................. 218
1,001 7.50%, 7/15/25............................................. 984
495 7.50%, 8/15/25............................................. 487
3,226 7.50%, 9/15/25............................................. 3,171
470 7.50%, 12/15/25............................................ 462
495 8.00%, 7/15/26............................................. 498
-------
Total U.S. Government Agencies 10,592
-------
U.S. TREASURY BONDS (9.9%):
1,500 7.50%, 11/15/16............................................ 1,566
-------
Total U.S. Treasury Bonds 1,566
-------
U.S. TREASURY NOTES (21.2%):
3,400 6.50%, 5/15/05............................................. 3,340
-------
Total U.S. Treasury Notes 3,340
-------
INVESTMENT COMPANIES (1.4%):
226 AmSouth U.S. Treasury Fund................................. 226
-------
Total Investment Companies 226
-------
Total (Cost--$15,971)(a) $15,724
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $15,752.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 93
Unrealized depreciation (340)
-----
Net unrealized depreciation $(247)
=====
</TABLE>
See notes to financial statements.
-34-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS (92.7%):
$ 545 Altamonte Springs, Health Facility, 5.60%, 10/1/10.......... $ 556
500 Board of Education, Series H, 6.90%, 5/1/98................. 524
655 Brevard County, Solid Waste Disposal System, 5.63%, 4/1/08.. 652
1,000 Broward County Expressway Authority, Series A, 6.50%,
7/1/04..................................................... 1,022
1,000 Cape Coral, Special Obligation, 5.50%, 7/1/99............... 1,032
1,000 Clearwater, Water & Sewer Revenue, 4.75%, 12/1/00........... 1,012
1,000 Dade County, Aviation Authority, Series 1994 B, 6.25%,
10/1/04, AMBAC............................................. 1,092
725 Dade County, School Board, Series A, 5.20%, 5/1/06.......... 729
1,000 Davie, Water & Sewer Revenue, 5.20%, 10/1/99................ 1,023
1,000 Department of Natural Resources, Preservation 2000, 6.30%, 1,071
7/1/04, MBIA...............................................
1,000 Division of Bond Finance, Natural Reserve Preservation 2000,
Series A, 5.40%, 7/1/07, MBIA.............................. 1,011
1,000 Dunes, Community Development District, 5.00%, 10/1/98....... 1,004
1,000 Dunes, Community Development District, 5.50%, 10/1/07....... 991
500 Gulf Breeze, Local Government, 5.90%, 12/10/10.............. 506
470 Hernando County, Water & Sewer Revenue, 5.10%, 6/1/98....... 479
1,000 Hillsborough County, Board, 4.60%, 7/1/97................... 1,007
750 Hillsborough County, Environmental Land, 6.00%, 7/1/03*..... 805
1,000 Hillsborough County, Solid Waste, 5.30%, 10/1/03............ 1,033
1,000 Homestead, Special Insurance Assessment, 4.90%, 9/1/00...... 1,016
1,000 Housing Finance Agency, 6.63%, 2/1/08*...................... 1,002
810 Housing Finance Agency, Series 1995 A-1, 5.65%, 1/1/09...... 803
1,000 Jacksonville, District Water & Sewer, 5.20%, 10/1/02........ 1,030
500 Jacksonville, Electric Authority, 6.95%, 10/1/04............ 536
1,000 Lake County, Sales Revenue, 5.13%, 12/1/98.................. 1,023
1,000 Lee County, Capital Improvements Revenue, Series B, 4.75%, 1,012
10/1/00....................................................
1,000 Lee County, Local Option Gas Tax Revenue, 4.50%, 10/1/01.... 998
500 Manatee County School Board, 5.75%, 7/1/09.................. 517
1,000 Martin County, 3.80%, 8/1/98................................ 994
1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08........... 1,009
955 Miramar, Wastewater Improvement, Series 1994, 6.25%,
10/1/05.................................................... 1,041
595 Miramar, Water Improvement, 4.50%, 10/1/01.................. 594
1,000 Orange County, Sales Tax, Series A, 4.38%, 1/1/01........... 994
1,000 Orlando & Orange County Expressway Authority, 4.80%, 7/1/01. 1,011
1,000 Orlando Utilities, Community Water & Electric, 5.00%, 1,021
10/1/99....................................................
1,000 Ormond Beach, Water & Sewer, 5.60%, 9/1/99.................. 1,038
1,000 Pasco County, Water & Sewer Revenue, Series A, 5.50%,
10/1/03, FGIC.............................................. 1,042
1,000 Pembroke Pines, Public Improvement, 4.63%, 10/1/00.......... 1,007
1,000 Polk County, Capital Improvement, 4.30%, 12/1/02............ 973
1,000 Port of Palm Beach, Revenue Bonds, 6.25%, 9/1/08............ 1,065
910 Punta Gorda, Utilities, 5.00%, 1/1/98....................... 922
</TABLE>
Continued
-35-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS CONTINUED:
$ 455 St. Johns County, Road Development, 5.20%, 10/1/99......... $ 467
1,000 St. Johns River, Water, 5.10%, 7/1/09...................... 977
600 St. Lucie County, Sales Tax, 4.20%, 10/1/01................ 587
800 St. Lucie County, Sales Tax, 4.30%, 10/1/02................ 776
625 St. Lucie County, Special Assessment, 5.10%, 11/1/04....... 621
1,000 Seminole County, Local Option Gas Tax, 5.00%, 10/1/02...... 1,019
1,000 Seminole County, School District, GO, 5.20%, 8/1/97........ 1,013
1,000 State Sunshine Skyway, 6.60%, 7/1/08* 1,061
1,000 Tallahassee, Utility System Revenue, 5.80%, 10/1/08........ 1,041
550 Tampa, Solid Waste Revenue, 4.90%, 10/1/02, FGIC........... 556
1,000 Volusia County, Sales Tax, 5.00%, 10/1/96.................. 1,002
-------
Total Florida Municipal Bonds....................................... 45,317
-------
INVESTMENT COMPANIES (6.0%):
547 AmSouth Tax Exempt Money Market Fund....................... 547
2,393 Dreyfus Florida Money Market Fund.......................... 2,393
-------
Total Investment Companies.......................................... 2,940
-------
Total (Cost--$47,077)(a)............................................ $48,257
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $48,869.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 1,236
Unrealized depreciation............................................. (56)
-------
Net unrealized appreciation......................................... $ 1,180
=======
</TABLE>
* Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly, monthly,
or semiannually.
AMBAC--Insured by AMBAC Indemnity Corporation
FGIC--Insured by Financial Guaranty Insurance Corporation
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements.
-36-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands, except Shares or Principal Amounts)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ --------
<C> <S> <C>
COMMERCIAL PAPER (1.4%):
$5,085,000 IBM Credit Corp., 5.32%, 8/14/96...................... $ 5,075
--------
Total Commercial Paper 5,075
--------
COMMON STOCKS (92.2%):
Aerospace/Defense (1.3%):
53,000 TRW, Inc.............................................. 4,790
--------
Aluminum (0.8%):
96,000 Alcan Aluminum, Ltd................................... 2,856
--------
Apparel (0.9%):
320,000 Phillips Van Heusen................................... 3,440
--------
Automobiles (1.8%):
205,000 Ford Motor Co......................................... 6,662
--------
Automotive Parts (1.1%):
195,000 Arvin Industries, Inc................................. 4,217
--------
Banking (5.4%):
330,000 Great Western Financial Corp.......................... 7,837
80,000 J.P. Morgan & Co., Inc................................ 6,880
65,000 NationsBank Corp...................................... 5,582
--------
20,299
--------
Chemicals--Specialty (1.2%):
220,000 Engelhard Corp........................................ 4,510
--------
Computers & Peripherals (1.9%):
65,000 IBM Corp.............................................. 7,012
--------
Construction (0.4%):
110,000 Ryland Group.......................................... 1,636
--------
Electronic & Electrical (2.9%):
210,000 AMP, Inc.............................................. 8,111
61,000 Avnet, Inc............................................ 2,661
--------
10,772
--------
Financial Services (2.7%):
82,000 American Express Co................................... 3,588
116,000 Dun & Bradstreet Corp................................. 6,670
--------
10,258
--------
Food Processing & Packaging (4.5%):
323,280 Grand Metropolitan, ADR............................... 8,809
250,000 Sara Lee Corp......................................... 8,000
--------
16,809
--------
Forest Products--Lumber, Paper (2.0%):
180,000 Weyerhauser Co........................................ 7,515
--------
Gold & Silver Mining (1.0%)
220,000 Homestake Mining...................................... 3,603
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care (2.8%):
121,583 Aetna Services, Inc....................................... $ 7,067
105,000 United Healthcare Corp.................................... 3,544
--------
10,611
--------
Industrial Services (1.0%):
130,000 Measurex Corp............................................. 3,591
--------
Insurance--Broker (2.8%):
220,000 Alexander & Alexander Services, Inc....................... 3,630
76,000 Marsh & McLennan Cos., Inc................................ 6,888
--------
10,518
--------
Insurance--Property, Casualty Health & Other (2.5%):
180,000 St. Paul Cos., Inc........................................ 9,315
--------
Manufacturing--Capital Goods (0.4%):
48,800 Kennametal, Inc........................................... 1,513
--------
Medical Supplies (2.0%):
185,000 Baxter International, Inc................................. 7,701
--------
Newspapers (4.6%):
215,000 Dow Jones & Co., Inc...................................... 8,412
137,000 Gannett Co., Inc.......................................... 8,991
--------
17,403
--------
Oil & Gas Exploration, Production & Services (8.5%):
200,000 Burlington Resources...................................... 8,550
300,000 Sun Company, Inc.......................................... 7,762
101,000 Texaco, Inc............................................... 8,585
330,000 USX--Marathon Group....................................... 6,765
--------
31,662
--------
Oilfield Equipment & Services (3.6%):
130,000 Dresser Industries, Inc................................... 3,510
170,000 McDermott International, Inc.............................. 3,081
85,000 Schlumberger, Limited..................................... 6,800
--------
13,391
--------
Pharmaceuticals (6.9%):
150,000 American Home Products Corp............................... 8,513
76,000 Bristol-Myers Squibb Co................................... 6,583
120,000 Johnson & Johnson, Inc.................................... 5,730
120,000 Pharmacia & Upjohn, Inc................................... 4,950
--------
25,776
--------
Photography (0.7%):
33,000 Eastman Kodak Co.......................................... 2,462
--------
Pollution Control Services & Equipment (2.2%):
275,000 WMX Technologies, Inc..................................... 8,147
--------
</TABLE>
Continued
-37-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands, except Shares or Principal Amounts)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Railroad (1.8%):
$142,000 CSX Corp................................................... $ 6,852
--------
Retail (11.6%):
195,000 Dayton Hudson Corp......................................... 5,899
230,000 Dillard Department Stores, Inc............................. 7,216
200,000 Hechinger Co............................................... 700
150,000 May Department Stores...................................... 6,731
215,000 Melville Corp.............................................. 8,412
250,000 The Gap.................................................... 7,438
300,000 Wal-Mart Stores, Inc....................................... 7,200
--------
43,596
--------
Services (Non-Financial) (0.6%):
105,000 Rollins, Inc............................................... 2,205
--------
Telecommunications (0.3%):
50,333 360 Communications Co.(b).................................. 1,164
--------
Transportation--Marine (0.3%):
65,000 Kirby Corp.(b)............................................. 1,040
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Transportation Leasing & Trucking (2.2%):
$215,000 Ryder Systems, Inc........................................ $ 5,724
148,000 US Freightways Corp....................................... 2,618
--------
8,342
--------
Utilities--Electric & Gas (2.7%):
180,000 Baltimore Gas & Electric.................................. 4,635
250,000 Southern Co............................................... 5,656
--------
10,291
--------
Utilities--Telecommunications (6.8%):
120,000 AT&T Corp................................................. 6,255
170,000 BellSouth Corp............................................ 6,970
131,000 Nynex Corp................................................ 5,879
170,000 Sprint Corp............................................... 6,226
--------
25,330
--------
Total Common Stocks 345,289
--------
INVESTMENT COMPANIES (6.4%):
16,331,461 AmSouth Prime Obligations Fund............................ 16,331
7,497,161 AmSouth U.S. Treasury Fund................................ 7,497
--------
Total Investment Companies 23,828
--------
Total (Cost--$320,099)(a) $374,192
========
</TABLE>
- --------
Percentages indicated are based on net assets of $374,622.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax reporting purposes by the amount of losses
recognized for financial reporting purposes in excess of federal income
tax reporting of approximately $487. Cost for federal income tax purposes
differs from value by net unrealized appreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized appreciation........ $62,989
Unrealized depreciation........ (9,383)
-------
Net unrealized appreciation.... $53,606
=======
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt
See notes to financial statements.
-38-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (90.3%):
Air Freight (1.7%):
20,000 Federal Express(b)......................................... $ 1,555
-------
Apparel (2.6%):
80,000 Delta Woodside Industries.................................. 380
60,000 Russell Corp............................................... 2,010
-------
2,390
-------
Automotive Parts (3.9%):
75,000 Discount Auto Parts, Inc.(b)............................... 1,781
45,000 Genuine Parts Co........................................... 1,907
-------
3,688
-------
Banking (10.0%):
35,000 Deposit Guaranty Corp...................................... 1,601
50,000 First Commerce Corp........................................ 1,737
60,000 First Tennessee National Corp.............................. 1,770
35,000 First Union Corp........................................... 2,223
24,000 NationsBank Corp........................................... 2,061
-------
9,392
-------
Building Materials (1.8%):
110,000 Interface, Inc............................................. 1,664
-------
Chemicals--Specialty (2.0%):
210,000 Ethyl Corp................................................. 1,890
-------
Electronic & Electrical (2.1%):
150,000 Scientific Atlanta, Inc.................................... 2,006
-------
Food Processing & Packaging (5.0%):
145,000 Flowers Industries, Inc.................................... 2,483
130,000 Lance, Inc................................................. 2,178
-------
4,661
-------
Forest Products--Lumber, Paper (4.1%):
80,000 Carauster Industries, Inc.................................. 2,210
65,000 James River Corp........................................... 1,641
-------
3,851
-------
Furniture (0.7%):
105,000 Winsloew Furniture, Inc.(b)................................ 628
-------
Insurance (5.3%):
100,000 Equifax, Inc............................................... 2,513
80,000 First Colony Corp.......................................... 2,450
-------
4,963
-------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Manufacturing (2.5%):
65,000 Wolverine Tube, Inc.(b).................................... $ 2,308
-------
Medical Services (11.7%):
100,000 Coventry Corp.(b).......................................... 1,250
220,000 HEALTHSOUTH Rehabilitation Corp.(b)........................ 6,683
151,875 Health Management Assoc., Inc.............................. 3,056
-------
10,989
-------
Oil & Gas Exploration, Production & Services (5.8%):
40,000 Louisiana Land & Exploration Co............................ 2,160
13,000 Mobil Corp................................................. 1,435
60,000 Production Operators....................................... 1,875
-------
5,470
-------
Oilfield Equipment & Services (2.8%):
60,000 McDermott International, Inc............................... 1,088
120,000 Offshore Logistics(b)...................................... 1,500
-------
2,588
-------
Printing (2.6%):
100,000 John H. Harland Co......................................... 2,425
-------
Railroad (2.2%):
25,000 Norfolk & Southern Co...................................... 2,022
-------
Restaurants (2.5%):
110,000 Cracker Barrel Old Country Store, Inc...................... 2,337
-------
Retail (8.0%):
170,000 Big B., Inc................................................ 1,636
150,000 Books A Million(b)......................................... 975
170,000 Hancock Fabrics............................................ 1,445
160,000 Stein Mart, Inc.(b)........................................ 3,400
-------
7,456
-------
Services (Non-Financial) (1.0%):
45,000 Rollins, Inc............................................... 945
-------
Steel (3.0%):
115,000 Birmingham Steel Corp...................................... 1,869
20,000 Nucor Corp................................................. 937
-------
2,806
-------
Transportation Leasing & Trucking (2.3%):
80,000 Ryder Systems, Inc......................................... 2,130
-------
</TABLE>
Continued
-39-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Electric (4.4%):
55,000 Florida Progress Corp...................................... $ 1,842
100,000 Southern Co................................................ 2,263
-------
4,105
-------
Utilities--Telecommunications (2.4%):
55,000 BellSouth Corp............................................. 2,255
-------
Total Common Stocks 84,524
-------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
INVESTMENT COMPANIES (9.7%):
4,680,576 AmSouth Prime Obligations Fund............................. $ 4,680
4,360,002 AmSouth U.S. Treasury Fund................................. 4,360
-------
Total Investment Companies 9,040
-------
Total (Cost--$75,423)(a) $93,564
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $93,584.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $22,680
Unrealized depreciation....... (4,539)
-------
Net unrealized appreciation... $18,141
=======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-40-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1996
(Amounts in Thousands, except Shares and Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (49.1%):
Aerospace/Defense (0.9%):
35,000 TRW, Inc.................................................. $ 3,163
--------
Aluminum (0.5%):
55,000 Alcan Aluminum Limited.................................... 1,636
--------
Apparel (0.4%):
140,000 Phillips Van Heusen....................................... 1,505
--------
Automobiles (1.1%):
120,000 Ford Motor Co............................................. 3,900
--------
Automotive Parts (0.6%):
101,000 Arvin Industries, Inc..................................... 2,148
--------
Banking (3.3%):
150,000 Great Western Financial Corp.............................. 3,562
40,000 J.P. Morgan & Co., Inc. .................................. 3,440
49,000 NationsBank Corp. ........................................ 4,208
--------
11,210
--------
Chemicals--Specialty (0.6%):
100,000 Engelhard Corp............................................ 2,050
--------
Computers & Peripherals (0.9%):
27,000 IBM Corp.................................................. 2,913
--------
Construction (0.3%):
76,000 Ryland Group.............................................. 1,130
--------
Electronic & Electrical (1.6%):
103,000 AMP, Inc. ................................................ 3,978
32,000 Avnet, Inc. .............................................. 1,396
--------
5,374
--------
Financial Services (1.4%):
45,000 American Express Co....................................... 1,969
48,000 Dun & Bradstreet Corp..................................... 2,760
--------
4,729
--------
Food Processing & Packaging (2.2%):
129,189 Grand Metropolitan ADR.................................... 3,520
120,000 Sara Lee Corp............................................. 3,840
--------
7,360
--------
Forest Products--Lumber, Paper (1.0%):
80,000 Weyerhauser Co. .......................................... 3,340
--------
Gold & Silver Mining (0.5%):
95,000 Homestake Mining.......................................... 1,556
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care (1.3%):
57,182 Aetna, Inc.(b)............................................ $ 3,324
35,000 United Healthcare Corp.................................... 1,181
--------
4,505
--------
Industrial Services (0.8%):
100,000 Measurex Corp. ........................................... 2,762
--------
Insurance--Broker (1.4%):
132,000 Alexander & Alexander Services, Inc. ..................... 2,178
30,000 Marsh & McLennan Cos., Inc. .............................. 2,719
--------
4,897
--------
Insurance--Property, Casualty, Health & Other (1.1%):
75,000 St. Paul Cos., Inc........................................ 3,881
--------
Manufacturing--Capital Goods (0.3%):
31,000 Kennametal, Inc........................................... 961
--------
Medical Supplies (1.4%):
110,000 Baxter International, Inc................................. 4,579
--------
Newspapers (2.1%):
77,000 Dow Jones & Co., Inc...................................... 3,013
63,000 Gannett Co., Inc.......................................... 4,134
--------
7,147
--------
Oil & Gas Exploration, Production, & Services (5.0%):
120,000 Burlington Resources...................................... 5,130
145,000 Sun Company, Inc.......................................... 3,752
59,000 Texaco, Inc............................................... 5,015
150,000 USX--Marathon Group....................................... 3,075
--------
16,972
--------
Oilfield Equipment & Services (2.3%):
100,000 Dresser Industries, Inc................................... 2,700
60,000 McDermott International, Inc.............................. 1,088
50,000 Schlumberger, Limited..................................... 4,000
--------
7,788
--------
Pharmaceuticals (3.6%):
81,000 American Home Products Corp............................... 4,597
40,000 Bristol-Myers Squibb Co. ................................. 3,465
52,000 Johnson & Johnson, Inc. .................................. 2,483
40,000 Pharmacia & Upjohn, Inc................................... 1,650
--------
12,195
--------
</TABLE>
Continued
-41-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands, except Shares and Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Photography (0.4%):
18,000 Eastman Kodak Co.......................................... $ 1,343
--------
Pollution Control Services & Equipment (1.0%):
115,000 WMX Technologies, Inc..................................... 3,407
--------
Railroads (1.1%):
80,000 CSX Corp. ................................................ 3,860
--------
Retail (5.2%):
54,000 Dayton Hudson Corp........................................ 1,633
85,000 Dillard Department Stores, Inc............................ 2,667
170,000 Hechinger Co.............................................. 595
60,000 May Department Stores..................................... 2,692
100,000 Melville Corp............................................. 3,913
135,000 The Gap................................................... 4,016
81,000 Wal-Mart Stores, Inc...................................... 1,944
--------
17,460
--------
Services (Non-Financial) (0.2%):
25,000 Rollins, Inc.............................................. 525
--------
Telecommunications (0.2%):
26,666 360 Communications Co.(b)................................. 617
--------
Transportation Leasing & Trucking (0.9%):
70,000 Ryder Systems, Inc........................................ 1,864
63,000 US Freightways Corp....................................... 1,114
--------
2,978
--------
Transportation--Marine (0.1%):
30,000 Kirby Corp.(b)............................................ 480
--------
Utilities--Electric (1.2%):
73,000 Baltimore Gas & Electric.................................. 1,880
100,000 Southern Co............................................... 2,263
--------
4,143
--------
Utilities--Telecommunications (4.0%):
55,000 AT&T Corp................................................. 2,867
90,000 BellSouth Corp............................................ 3,690
90,000 Nynex Corp................................................ 4,039
80,000 Sprint Corp............................................... 2,930
--------
13,526
--------
Total Common Stocks................................................. 166,076
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
CORPORATE BONDS (16.2%):
Appliances (0.2%):
500,000 Whirlpool Corp., 9.50%, 6/15/00............................ $ 543
-------
Automotive (1.0%):
1,430,000 Ford Capital, 9.13%, 5/1/98................................ 1,491
1,000,000 Ford Motor Credit Corp., 5.63%, 1/15/99.................... 977
700,000 General Motors Corp., 9.63%, 12/1/00....................... 766
-------
3,234
-------
Banking (3.4%):
930,000 Bank of America, 9.50%, 4/1/01............................. 1,017
1,000,000 Bankers Trust Co., 7.25%, 11/1/96.......................... 1,002
1,000,000 Bankers Trust Co., 9.50%, 6/14/00.......................... 1,076
2,500,000 Mellon Corporation, 6.30%, 6/1/00.......................... 2,447
4,185,000 NationsBank Corp., 5.38%, 4/15/00.......................... 3,981
2,000,000 SunTrust Banks, Inc., 7.38%, 7/1/06........................ 1,998
-------
11,521
-------
Brokerage Services (2.0%):
4,000,000 Dean Witter Discover & Co., 6.00%, 3/1/98.................. 3,975
2,000,000 Merrill Lynch, 6.0%, 3/1/01................................ 1,918
1,000,000 Morgan Stanley Group, Inc., 9.25%, 3/1/98.................. 1,040
-------
6,933
-------
Entertainment (0.3%):
1,000,000 Columbia Picture Entertainment, Inc., 9.88%, 2/1/98........ 1,037
-------
Financial--Commercial (1.2%):
4,000,000 Associates Corp. N.A., 6.75%, 7/15/01...................... 3,950
-------
Financial Services (2.0%):
1,000,000 American General Finance, 7.70%, 11/15/97.................. 1,016
500,000 Associates Corp., 8.63%, 6/15/97........................... 510
500,000 Beneficial Corp., 9.90%, 11/17/97.......................... 521
1,200,000 British Telcom Finance, Inc., 9.38%, 2/15/99............... 1,227
200,000 CIT Group Holdings, Inc., 8.75%, 7/1/97.................... 205
1,000,000 Commercial Credit Co., 7.88%, 7/15/04...................... 1,035
</TABLE>
Continued
-42-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1996
(Amounts in Thousands, except Shares and Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, continued:
2,000,000 Morgan Stanley Group, Inc., 8.10%, 6/24/02................ $ 2,092
--------
6,656
--------
Food Products (0.3%):
1,000,000 H.J. Heinz Co., 6.75%, 10/15/99........................... 999
--------
Industrial Goods & Services (1.3%):
500,000 Browning Ferris International, 6.10%, 1/15/03............. 474
1,000,000 Dresser Industries, Inc., 6.25%, 6/1/00................... 979
2,000,000 Waste Management, 7.70%, 10/1/02.......................... 2,065
1,000,000 WMX Technologies, Inc., 8.25%, 11/15/99................... 1,043
--------
4,561
--------
Insurance (1.3%):
1,000,000 Allstate Corp., 5.88%, 6/15/98............................ 987
1,400,000 Capital Holding Corp., 9.20%, 4/17/01..................... 1,516
560,000 Chubb Corp., 8.75%, 11/15/99.............................. 590
1,200,000 Torchmark Corp., 9.63%, 5/1/98............................ 1,256
--------
4,349
--------
Oil & Gas Exploration & Production Services (0.5%):
1,550,000 BP America, 9.38%, 11/1/00................................ 1,691
--------
Pharmaceuticals (0.3%):
1,000,000 McKesson Corp., 8.63%, 2/1/98............................. 1,030
--------
Retail Stores (0.6%):
4,000,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02..................... 1,980
--------
Technology (0.5%):
1,730,000 Lucent Technologies, Inc., 6.90%, 7/15/01................. 1,723
--------
Utility--Electric (1.3%):
530,000 National Rural, 9.50%, 5/15/97............................ 543
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utility--Electric, continued:
2,000,000 Oklahoma Gas & Electric, 6.25%, 10/15/00................. $ 1,947
900,000 Pennsylvania Power & Light, 6.00%, 6/1/00................ 872
1,200,000 Virginia Electric & Power, 7.25%, 3/1/97................. 1,207
--------
4,569
--------
Total Corporate Bonds 54,776
--------
U.S. TREASURY BONDS (7.6%):
11,000,000 7.50%, 11/15/16.......................................... 11,484
16,000,000 6.25%, 8/15/23........................................... 14,417
--------
Total U.S. Treasury Bonds 25,901
--------
U.S. TREASURY NOTES (20.7%):
3,000,000 6.38%, 6/30/97........................................... 3,013
5,100,000 7.88%, 4/15/98........................................... 5,240
1,800,000 9.25%, 8/15/98........................................... 1,903
3,400,000 6.38%, 1/15/99........................................... 3,406
1,000,000 7.13%, 2/29/00........................................... 1,020
4,000,000 7.75%, 2/15/01........................................... 4,186
25,000,000 6.38%, 8/15/02........................................... 24,682
18,300,000 5.75%, 8/15/03........................................... 17,334
10,000,000 5.88%, 11/15/05.......................................... 9,376
--------
Total U.S. Treasury Notes 70,160
--------
U.S. TREASURY STRIPS (2.1%):
12,000,000 7.01%, 2/15/04........................................... 7,264
--------
Total U.S. Treasury Strips 7,264
--------
INVESTMENT COMPANIES (3.2%):
10,667,552 AmSouth Prime Obligations Fund........................... 10,668
5,005 AmSouth U.S. Treasury Fund............................... 5
--------
Total Investment Companies 10,673
--------
Total (Cost--$302,295)(a) $334,850
========
</TABLE>
- --------
Percentages indicated are based on net assets of $338,425.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........ $39,738
Unrealized depreciation........ (7,183)
-------
Net unrealized appreciation.... $32,555
=======
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt
See notes to financial statements.
-43-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
July 31, 1996
1. ORGANIZATION:
AmSouth Mutual Funds (the "Trust") was organized on August 5, 1988, and is
registered under the Investment Company Act of 1940, as amended, ("the 1940
Act") as a diversified, open-end investment company established as a
Massachusetts business trust.
The Trust is authorized to issue an unlimited number of shares (units of
beneficial interest) without par value. The Trust currently offers shares of
the AmSouth Prime Obligations Fund, the AmSouth U.S. Treasury Fund, the
AmSouth Tax-Exempt Fund, the AmSouth Bond Fund, the AmSouth Limited Maturity
Fund, the AmSouth Government Income Fund, the AmSouth Florida Tax-Free Fund,
the AmSouth Equity Fund, the AmSouth Regional Equity Fund, and the AmSouth
Balanced Fund (collectively, "the Funds" and individually "a Fund"). The
AmSouth Alabama Tax-Free Fund and the AmSouth Municipal Bond Fund have not
yet commenced operations. Sales of shares of the Funds may be made to
customers of AmSouth Bank of Alabama, ("AmSouth") and its affiliates, to all
accounts of correspondent banks of AmSouth and to the general public.
The Prime Obligations Fund, the U.S. Treasury Fund and the Tax Exempt Fund
(the "money market funds") each offer two classes of shares: Classic Shares
and Premier Shares. Effective April 1, 1996, the existing shares of the money
market funds, which were previously unclassified, were designated Premier
Shares, and the money market funds commenced offering Classic Shares. Shares
of the Bond Fund, Limited Maturity Fund, the Government Income Fund, the
Florida Tax-Free Fund, the Equity Fund, the Regional Equity Fund and the
Balanced Fund (the "variable net asset value funds") are not classified.
The Prime Obligations Fund and the U.S. Treasury Fund seek current income
with liquidity and stability of principal. The Tax Exempt Fund seeks to
produce as high a level of current interest income exempt from federal income
taxes as is consistent with the preservation of capital and relative
stability of principal. The Bond Fund and the Limited Maturity Fund seek
current income, consistent with the preservation of capital. The Government
Income Fund seeks to provide a high level of current income consistent with
prudent investment risk. The Florida Tax-Free Fund seeks to produce as high a
level of current interest income exempt from federal income taxes and Florida
intangibles taxes as is consistent with the preservation of capital. The
Equity Fund and the Regional Equity Fund seek growth of capital. The Balanced
Fund seeks to obtain long-term capital growth and current income.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITIES VALUATION:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost which, combined with
accrued interest, approximates market value. Under the
Continued
-44-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1996
amortized cost method, discount or premium is amortized on a constant basis
to the maturity of the security. In addition, the money market funds may
not (a) purchase any instrument with a remaining maturity greater than
thirteen months unless such instrument is subject to a demand feature, or
(b) maintain a dollar-weighted average maturity which exceeds 90 days.
Investments in common stocks, corporate bonds, municipal bonds, commercial
paper and U.S. Government securities of the variable net asset value funds
are valued at their market values determined on the basis of the mean
between the latest available bid and asked prices in the principal market
(closing sales prices if the principal market is an exchange) in which such
securities are normally traded. Investments in investment companies are
valued at their net asset values as reported by such companies. The
differences between cost and market values of such investments are
reflected as unrealized appreciation or depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Realized gains or losses from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation and from registered broker/dealers
which AmSouth deems creditworthy under guidelines approved by the Board of
Trustees, subject to the seller's agreement to repurchase such securities
at a mutually agreed-upon date and price. The repurchase price generally
equals the price paid by the Funds plus interest negotiated on the basis of
current short-term rates, which may be more or less than the rate on the
underlying portfolio securities. The seller, under a repurchase agreement,
is required to maintain the value of collateral held pursuant to the
agreement at not less than the repurchase price (including accrued
interest). Securities subject to repurchase agreements are held by the
Funds' custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system. Repurchase agreements are considered to
be loans by a Fund under the 1940 Act.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS:
Each Fund may purchase securities on a "when-issued" basis. When-issued
securities are securities purchased for delivery beyond the normal
settlement date at a stated price and/or yield obtained may be more or less
than those available in the market when delivery takes place. Securities
purchased on a when-issued basis are recorded as an asset and are subject
to changes in value based upon changes in the general level of interest
rates. A segregated account is established and the Funds maintain cash and
marketable securities at least equal in value to commitments for when-
issued securities. Securities purchased on a when-issued basis do not earn
income until the settlement date.
Continued
-45-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1996
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized gains, if any, are declared and distributed
annually.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for mortgage-backed securities,
expiring capital loss carryforwards and deferrals of certain losses.
Permanent book and tax basis differences are reflected in the components of
net assets.
FEDERAL INCOME TAXES:
It is the policy of each Fund to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially
all, federal income taxes.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Trust are prorated to the
Funds on the basis of relative net assets.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 1996:
<TABLE>
<CAPTION>
PURCHASES SALES
------------- -----------
<S> <C> <C>
Bond Fund.......................................... $ 50,913,891 $10,050,508
Limited Maturity Fund.............................. 16,463,380 27,907,166
Government Income Fund............................. 13,416,678 13,263,486
Florida Tax-Free Fund.............................. 7,971,931 5,619,012
Equity Fund........................................ 123,289,431 59,379,724
Regional Equity Fund............................... 17,947,105 6,293,543
Balanced Fund...................................... 97,603,876 62,732,272
</TABLE>
Continued
-46-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1996
4. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares for the Funds which offer multiple classes of
shares for the years ended July 31, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
PRIME TAX EXEMPT
OBLIGATIONS FUND U.S. TREASURY FUND FUND
---------------------- ---------------------- ------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------- ---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
For the period April 1,
1996 through July 31, 1996:
Classic Shares (a):
Shares issued ........ $ 165,419 165,419 $ 9,207 9,207 $ 9,803 9,803
Dividends reinvested.. 1,963 1,963 222 222 143 143
Shares redeemed....... (191,139) (191,139) (13,986) (13,986) (9,019) (9,019)
---------- ---------- ---------- ---------- -------- --------
Net increase.......... $ (23,757) (23,757) $ (4,557) (4,557) $ 927 927
========== ========== ========== ========== ======== ========
For the year ended July
31, 1996:
Premier Shares (a):
Shares issued......... $1,388,943 1,388,943 $1,088,791 1,088,791 $129,166 129,166
Dividends reinvested.. 5,460 5,460 1,751 1,751 388 388
Shares redeemed....... (1,384,702) (1,384,702) (1,028,499) (1,028,499) (127,394) (127,394)
---------- ---------- ---------- ---------- -------- --------
Net decrease.......... $ 9,701 9,701 $ 62,043 62,043 $ 2,160 2,160
========== ========== ========== ========== ======== ========
For the year ended July
31, 1995:
Shares issued......... $1,597,046 1,597,046 $ 900,697 900,697 $ 99,365 99,365
Dividends reinvested.. 5,036 5,036 2,103 2,103 311 311
Shares redeemed....... (1,561,740) (1,561,740) (880,465) (880,465) (102,959) (102,959)
---------- ---------- ---------- ---------- -------- --------
Net increase
(decrease)........... $ 40,342 40,342 $ 22,335 22,335 $ (3,283) (3,283)
========== ========== ========== ========== ======== ========
</TABLE>
- --------
(a) Effective April 1, 1996, the Funds' existing shares, which were previously
unclassified, were designated Premier Shares, and the Fund commenced
offering Classic Shares.
5. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to each of the Funds by AmSouth.
Under the terms of the investment advisory agreement, AmSouth is entitled to
receive fees based on a percentage of the average net assets of each of the
Funds.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of the BISYS Group, Inc.
ASO Services Company, a wholly-owned subsidiary of The BISYS Group, Inc.,
serves the Funds as administrator. BISYS, with whom certain officers and
trustees of the Trust are affiliated, serves the Funds as sub-administrator.
Such officers and trustees are paid no fees directly by the Funds for serving
as officers and
Continued
-47-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1996
trustees of the Trust. Prior to April 1, 1996, BISYS served the Funds as
administrator. Under the terms of the administration agreement, ASO Services
Company's fees are computed daily as 0.20% of the average net assets of each
of the Funds. The terms of the current administration agreement are
substantially the same as the former administration agreement. BISYS also
serves as the Funds' distributor and is entitled to receive commissions on
sales of shares of the variable net asset value funds. For the year ended
July 31, 1996, BISYS received $1,093,457 from commissions earned on sales of
shares of the Funds' variable net asset value funds of which $1,071,932 was
reallowed to AmSouth, an investment dealer of the Funds' shares and other
dealers of the Funds' shares. BISYS receives no fees from the Funds for
providing distribution services to money market funds. BISYS Ohio serves the
Funds as Transfer Agent and Mutual Fund Accountant. Under the terms of the
Transfer Agent and Accounting Agreement, the Company's fees are based on the
number of shareholders and as a percentage of average net assets,
respectively.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the year ended July 31, 1996 (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
--------------------------------
ANNUAL FEE AS SHAREHOLDER
A PERCENTAGE OF ADMINISTRATION SERVICING FEES TRANSFER AGENT
AVERAGE DAILY FEES VOLUNTARILY FEES VOLUNTARILY VOLUNTARILY AND MUTUAL FUND
NET ASSETS REDUCED REDUCED REDUCED ACCOUNTANT FEES
--------------- ---------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Prime Obligations Fund.. 0.40% $ -- $ -- $63 $440
U.S. Treasury Fund...... 0.40% -- -- 7 272
Tax-Exempt Fund......... 0.40% 133 -- 7 67
Bond Fund............... 0.65% 165 88 -- 89
Limited Maturity Fund... 0.65% 87 47 -- 54
Government Income Fund.. 0.65% 61 18 -- 31
Florida Tax-Free Fund... 0.65% 171 49 -- 48
Equity Fund............. 0.80% -- 309 -- 244
Regional Equity Fund.... 0.80% 1 67 -- 78
Balanced Fund........... 0.80% 169 260 -- 237
</TABLE>
6. ELIGIBLE DISTRIBUTIONS: (UNAUDITED)
The AmSouth Mutual Funds designate the following eligible distributions for
the dividends received deductions for corporations for the year ended July
31, 1996:
<TABLE>
<CAPTION>
REGIONAL
EQUITY EQUITY BALANCED
FUND FUND FUND
------ -------- --------
<S> <C> <C> <C>
Dividend Income (000)................................ $8,258 $1,583 $4,562
Dividend Income Per Share............................ $0.281 $0.213 $0.145
</TABLE>
Continued
-48-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1996
7. EXEMPT-INTEREST INCOME DESIGNATIONS (UNAUDITED):
The AmSouth Mutual Funds designate the following exempt-interest dividends
for the taxable year ended July 31, 1996:
<TABLE>
<CAPTION>
FLORIDA TAX
TAX-FREE EXEMPT
FUND FUND
-------- ------
<S> <C> <C>
Exempt-Interest Dividends (000).............................. $2,107 $2,065
Exempt-Interest Dividends Per Share.......................... 0.449 --
Exempt-Interest Dividends Per Share--Classic Shares.......... -- 0.031
Exempt-Interest Dividends Per Share--Premier Shares.......... -- 0.010
</TABLE>
The percentage break-down of the exempt-interest income by state for the Tax
Exempt Fund's taxable year ended July 31, 1996 was as follows:
<TABLE>
<S> <C>
Alabama.................................................................. 9.2%
Arizona.................................................................. 3.5
California............................................................... 0.6
Colorado................................................................. 1.7
Connecticut.............................................................. 4.0
Delaware................................................................. 2.7
District of Columbia..................................................... 0.3
Florida.................................................................. 5.4
Georgia.................................................................. 6.5
Hawaii................................................................... 1.4
Illinois................................................................. 7.2
Indiana.................................................................. 0.2
Iowa..................................................................... 1.6
Kansas................................................................... 0.4
Louisiana................................................................ 3.2
Maryland................................................................. 0.2
Massachusetts............................................................ 0.5
Michigan................................................................. 0.9
Minnesota................................................................ 0.7
Mississippi.............................................................. 0.2
Missouri................................................................. 8.1
Nebraska................................................................. 3.1
Nevada................................................................... 0.3
New Jersey............................................................... 0.4
New York................................................................. 3.6
North Carolina........................................................... 0.4
Ohio..................................................................... 0.1
</TABLE>
Continued
-49-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
July 31, 1996
<TABLE>
<S> <C>
Oregon................................................................. 2.3%
Pennsylvania........................................................... 2.1
South Carolina......................................................... 1.8
Tennessee.............................................................. 6.1
Texas.................................................................. 16.0
Utah................................................................... 0.9
Virginia............................................................... 1.0
Washington............................................................. 2.3
West Virginia.......................................................... 1.0
Wisconsin.............................................................. 0.1
-----
Total.................................................................. 100.0%
=====
</TABLE>
8. FEDERAL INCOME TAX INFORMATION:
The following table presents capital gain dividend distributions from long-
term capital gains for the following Funds for the year ended July 31, 1996
(amounts in thousands):
<TABLE>
<S> <C>
Bond Fund.............................................................. $ 173
Florida Tax-Free Fund.................................................. 20
Equity Fund............................................................ 9,256
Regional Equity Fund................................................... 756
Balanced Fund.......................................................... 6,408
</TABLE>
At July 31, 1996, the following Funds have capital loss carryforwards which
are available to offset future capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------ -------
<S> <C> <C>
Prime Obligations Fund........................................ $ 9 2001
Bond Fund..................................................... 28 2004
Limited Maturity Fund......................................... 478 2002
Limited Maturity Fund......................................... 730 2003
Limited Maturity Fund......................................... 4 2004
Government Income Fund........................................ 165 2003
Government Income Fund........................................ 239 2004
</TABLE>
Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the fiscal year ended
July 31, 1997. The following Funds had such losses (amounts in thousands):
<TABLE>
<S> <C>
Bond Fund................................................................ $112
Limited Maturity Fund.................................................... 241
Government Income Fund................................................... 188
</TABLE>
-50-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------------------
1996 1995 1994 1993 1992
-------------------------- -------- -------- -------- --------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.050 0.016 0.050 0.029 0.027 0.042
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.050) (0.016) (0.050) (0.029) (0.027) (0.042)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 5.07%(d) 5.10% 5.14% 2.94% 2.76% 4.28%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $125,075 $478,542 $617,673 $577,331 $456,428 $457,511
Ratio of expenses to
average net assets.... 0.72% 0.71%(b) 0.69% 0.70% 0.71% 0.71%
Ratio of net investment
income to average net
assets................ 5.08% 4.71%(b) 5.04% 2.92% 2.73% 4.08%
Ratio of expenses to
average net assets*... 0.87% (c) (c) (c) (c) (c)
Ratio of net investment
income to average net
assets*............... 4.93% (c) (c) (c) (c) (c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) There were no waivers during the period.
(d) Represents total return for the Premier Shares for the period from August
1, 1995 to March 31, 1995 plus the total return for the Classic Shares for
the period from April 1, 1996 to July 31, 1996.
See notes to financial statements.
-51-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY FUND
-------------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------------
1996 1995 1994 1993 1992
------------------------- -------- -------- -------- --------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.048 0.015 0.048 0.028 0.027 0.041
------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.048) (0.015) (0.048) (0.028) (0.027) (0.041)
------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======== ======== ======== ========
Total Return............ 4.90%(d) 4.93% 4.90% 2.80% 2.69% 4.15%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $12,263 $368,162 $322,939 $300,603 $404,473 $339,666
Ratio of expenses to
average net assets.... 0.71% 0.72%(b) 0.70% 0.71% 0.72% 0.73%
Ratio of net investment
income to average net
assets................ 4.94% 4.54%(b) 4.81% 2.77% 2.66% 4.08%
Ratio of expenses to
average net assets*... 0.86% (c) (c) (c) (c) (c)
Ratio of net investment
income to average net
assets*............... 4.79% (c) (c) (c) (c) (c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) There were no waivers during the period.
(d) Represents total return for the Premier Shares for the period from August
1, 1995 to March 31, 1995 plus the total return for the Classic Shares for
the period from April 1, 1996 to July 31, 1996.
See notes to financial statements.
-52-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX EXEMPT FUND
--------------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------------
1996 1995 1994 1993 1992
------------------------- ------- ------- ------- -------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.031 0.010 0.032 0.019 0.021 0.030
------- ------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.031) (0.010) (0.032) (0.019) (0.021) (0.030)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Return............ 3.12%(c) 3.15% 3.22% 1.95% 2.16% 3.12%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $17,116 $43,611 $57,640 $60,923 $48,151 $38,392
Ratio of expenses to
average net assets.... 0.54% 0.58%(b) 0.54% 0.57% 0.49% 0.65%
Ratio of net investment
income to average net
assets................ 3.16% 2.93%(b) 3.15% 1.93% 2.12% 2.98%
Ratio of expenses to
average net assets*... 0.69% 0.78%(b) 0.74% 0.77% 0.78% 0.77%
Ratio of net investment
income to average net
assets*............... 3.01% 2.73%(b) 2.95% 1.73% 1.83% 2.86%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) Represents the total return for the Premier Shares for the period from
August 1, 1995 to March 31, 1995 plus the total return for the Classic
Shares for the period from April 1, 1996 to July 31, 1996.
See notes to financial statements.
-53-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BOND FUND
--------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------
1996 1995 1994 1993 1992
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.......................... $ 10.83 $ 10.59 $ 11.29 $ 11.29 $ 10.42
-------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income........... 0.65 0.69 0.69 0.71 0.74
Net realized and unrealized
gains (losses) from
investments.................... (0.18) 0.28 (0.66) 0.33 0.91
-------- ------- ------- ------- -------
Total from Investment
Activities.................... 0.47 0.97 0.03 1.04 1.65
-------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income........... (0.65) (0.69) (0.70) (0.71) (0.73)
Net realized gains.............. -- (0.04) (0.03) (0.33) (0.05)
In excess of net realized gains. (0.11) -- -- -- --
-------- ------- ------- ------- -------
Total Distributions............ (0.76) (0.73) (0.73) (1.04) (0.78)
-------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD... $ 10.54 $ 10.83 $ 10.59 $ 11.29 $ 11.29
======== ======= ======= ======= =======
Total Return (excludes sales
charge)......................... 4.40% 9.70% 0.23% 9.80% 16.41%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000).......................... $132,737 $94,671 $79,472 $65,777 $60,156
Ratio of expenses to average net
assets......................... 0.75% 0.75% 0.78% 0.78% 0.82%
Ratio of net investment income
to average
net assets..................... 6.12% 6.63% 6.31% 6.37% 6.94%
Ratio of expenses to average net
assets*........................ 0.98% 0.98% 1.01% 1.01% 1.01%
Ratio of net investment income
to average
net assets*.................... 5.89% 6.40% 6.08% 6.14% 6.75%
Portfolio turnover............... 9.60% 17.70% 30.90% 14.98% 240.64%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-54-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LIMITED MATURITY FUND
-------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------
1996 1995 1994 1993 1992
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD........................... $ 10.41 $ 10.23 $ 10.81 $ 10.81 $ 10.44
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income............ 0.58 0.58 0.54 0.60 0.70
Net realized and unrealized gains
(losses) from investments....... (0.10) 0.17 (0.45) 0.09 0.45
------- ------- ------- ------- -------
Total from Investment
Activities..................... 0.48 0.75 0.09 0.69 1.15
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income............ (0.57) (0.57) (0.54) (0.61) (0.69)
In excess of net investment
income.......................... (0.01) -- -- -- --
Net realized gains............... -- -- -- (0.08) (0.09)
In excess of net realized gains.. -- -- (0.13) -- --
------- ------- ------- ------- -------
Total Distributions............. (0.58) (0.57) (0.67) (0.69) (0.78)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.... $ 10.31 $ 10.41 $ 10.23 $ 10.81 $ 10.81
======= ======= ======= ======= =======
Total Return (excludes sales
charge).......................... 4.74% 7.65% 0.77% 6.72% 11.48%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)........................... $46,005 $59,798 $51,660 $53,933 $38,206
Ratio of expenses to average net
assets.......................... 0.76% 0.80% 0.79% 0.69% 0.68%
Ratio of net investment income to
average net assets.............. 5.48% 5.69% 5.05% 5.67% 6.78%
Ratio of expenses to average net
assets*......................... 0.99% 1.03% 1.02% 1.03% 1.03%
Ratio of net investment income to
average net assets*............. 5.25% 5.46% 4.82% 5.33% 6.43%
Portfolio turnover................ 29.56% 38.11% 48.06% 141.27% 35.64%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-55-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND FLORIDA TAX-FREE FUND
------------------------------------- -----------------------------
YEAR ENDED YEAR ENDED OCTOBER 1, 1993 YEAR ENDED SEPTEMBER 30, 1994
JULY 31, JULY 31, TO JULY 31, JULY 31, TO JULY 31,
1996 1995 1994(A) 1996 1995(A)
---------- ---------- --------------- ---------- ------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 9.54 $ 9.48 $ 10.00 $ 10.32 $ 10.00
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.66 0.68 0.54 0.45 0.34
Net realized and
unrealized gains
(losses) from invest-
ments................. (0.20) 0.08 (0.57) (0.01) 0.30
------- ------- ------- ------- -------
Total from Investment
Activities........... 0.46 0.76 (0.03) 0.44 0.64
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.59) (0.70) (0.33) (0.45) (0.32)
Net realized gains..... -- -- -- (0.01) --
Tax return of capital.. (0.01) -- (0.16) -- --
------- ------- ------- ------- -------
Total Distributions... (0.60) (0.70) (0.49) (0.46) (0.32)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 9.40 $ 9.54 $ 9.48 $ 10.30 $ 10.32
======= ======= ======= ======= =======
Total Return (excludes
sales charge).......... 4.91% 8.43% (0.26%)(c) 4.24% 6.53%(c)
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $15,752 $16,679 $15,465 $48,869 $48,333
Ratio of expenses to
average net assets.... 0.65% 0.58% 0.37%(b) 0.59% 0.70%(b)
Ratio of net investment
income to average net
assets................ 6.81% 7.18% 6.56%(b) 4.33% 4.16%(b)
Ratio of expenses to
average net assets*... 1.10% 1.19% 1.22%(b) 1.04% 1.01%(b)
Ratio of net investment
income to average net
assets*............... 6.36% 6.57% 5.71%(b) 3.88% 3.86%(b)
Portfolio turnover...... 78.31% 27.32% 122.94% 12.21% 2.33%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
-56-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY FUND
------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD...................... $ 16.75 $ 14.82 $ 14.38 $ 13.40 $ 12.57
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.33 0.33 0.28 0.28 0.32
Net realized and unrealized
gains from investments..... 1.48 2.39 0.83 1.48 1.20
-------- -------- -------- -------- --------
Total from Investment
Activities................ 1.81 2.72 1.11 1.76 1.52
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income....... (0.33) (0.32) (0.28) (0.29) (0.33)
Net realized gains.......... (0.61) (0.47) (0.39) (0.49) (0.36)
-------- -------- -------- -------- --------
Total Distributions........ (0.94) (0.79) (0.67) (0.78) (0.69)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD...................... $ 17.62 $ 16.75 $ 14.82 $ 14.38 $ 13.40
======== ======== ======== ======== ========
Total Return (excludes sales
charge)..................... 11.09% 19.27% 7.90% 13.81% 12.94%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)...................... $374,622 $275,757 $205,611 $153,074 $107,934
Ratio of expenses to average
net assets................. 1.02% 1.03% 0.94% 0.95% 1.01%
Ratio of net investment
income to average
net assets................. 1.86% 2.17% 1.93% 2.08% 2.50%
Ratio of expenses to average
net assets*................ 1.11% 1.11% 1.11% 1.13% 1.15%
Ratio of net investment
income to average
net assets*................ 1.77% 2.09% 1.76% 1.90% 2.36%
Portfolio turnover........... 19.11% 19.46% 11.37% 15.12% 113.12%
Average commission rate (a).. $ 0.0700 -- -- -- --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
-57-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
REGIONAL EQUITY FUND
-------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------
1996 1995 1994 1993 1992
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD........................... $ 18.94 $ 16.68 $ 16.74 $ 14.86 $ 13.44
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income............ 0.26 0.23 0.23 0.19 0.23
Net realized and unrealized gains
from investments................ 2.20 2.26 0.58 2.09 2.34
------- ------- ------- ------- -------
Total from Investment
Activities..................... 2.46 2.49 0.81 2.28 2.57
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income............ (0.26) (0.23) (0.23) (0.20) (0.23)
Net realized gains............... (0.19) -- (0.41) (0.20) (0.92)
In excess of net realized gains.. -- -- (0.23) -- --
------- ------- ------- ------- -------
Total Distributions............. (0.45) (0.23) (0.87) (0.40) (1.15)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.... $ 20.95 $ 18.94 $ 16.68 $ 16.74 $ 14.86
======= ======= ======= ======= =======
Total Return (excludes sales
charge).......................... 13.10% 15.10% 4.87% 15.53% 20.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)........................... $93,584 $68,501 $54,744 $41,347 $15,707
Ratio of expenses to average net
assets.......................... 1.05% 1.07% 0.79% 0.80% 0.91%
Ratio of net investment income to
average net assets.............. 1.30% 1.35% 1.36% 1.17% 1.61%
Ratio of expenses to average net
assets*......................... 1.13% 1.15% 1.24% 1.28% 1.36%
Ratio of net investment income to
average net assets*............. 1.22% 1.27% 0.90% 0.69% 1.16%
Portfolio turnover................ 8.22% 14.25% 5.83% 10.22% 24.99%
Average commission rate paid (a).. $0.0827 -- -- -- --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
-58-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BALANCED FUND
---------------------------------------------------------
YEAR ENDED JULY 31, DECEMBER 19, 1991
-------------------------------------- TO JULY 31,
1996 1995 1994 1993 1992(A)
-------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 12.76 $ 11.81 $ 11.86 $ 11.12 $ 10.00
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.47 0.47 0.42 0.44 0.27
Net realized and
unrealized gains from
investments........... 0.58 1.24 0.18 0.80 1.09
-------- -------- -------- -------- --------
Total from Investment
Activities........... 1.05 1.71 0.60 1.24 1.36
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.47) (0.46) (0.42) (0.45) (0.24)
Net realized gains..... (0.31) (0.30) (0.23) (0.05) --
-------- -------- -------- -------- --------
Total Distributions... (0.78) (0.76) (0.65) (0.50) (0.24)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 13.03 $ 12.76 $ 11.81 $ 11.86 $ 11.12
======== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 8.37% 15.27% 5.13% 11.47% 13.71%(c)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $338,425 $295,509 $236,306 $179,134 $143,813
Ratio of expenses to
average net assets.... 0.98% 0.94% 0.84% 0.84% 0.83%(b)
Ratio of net investment
income to average net
assets................ 3.61% 3.91% 3.56% 3.90% 4.45%(b)
Ratio of expenses to
average net assets*... 1.11% 1.12% 1.11% 1.12% 1.17%(b)
Ratio of net investment
income to average net
assets*............... 3.48% 3.73% 3.28% 3.62% 4.10%(b)
Portfolio turnover...... 20.47% 16.97% 14.43% 11.09% 23.18%
Average commission rate
paid (d)............... $0.7727 -- -- -- --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
-59-
<PAGE>
INVESTMENT ADVISOR
[LOGO OF AMSOUTH]
AmSouth Bank
1901 Sixth Avenue North
Birmingham, AL 35203
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, DC 20005
TRANSFER AGENT
BISYS Fund Services Ohio Inc.
3435 Stelzer Road
Columbus, OH 43219
AUDITORS
Coopers & Lybrand L.L.P.
100 East Broad Street
Columbus, OH 43215
[LOGO OF AMSOUTH]
MUTUAL FUNDS]
ANNUAL REPORT
July 31, 1996
[LOGO OF AMSOUTH]
AMSOUTH BANK OF ALABAMA
INVESTMENT ADVISOR
