<PAGE>
[LOGO OF AMSOUTH MUTUAL FUNDS APPEARS HERE]
SEMI-ANNUAL REPORT
January 31, 1996
[LOGO OF AMSOUTH(R) APPEARS HERE]
AMSOUTH BANK OF ALABAMA
INVESTMENT ADVISOR
BISYS FUND SERVICES
DISTRIBUTOR
<PAGE>
TABLE OF CONTENTS
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
PAGE 1
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 19
STATEMENTS OF OPERATIONS
PAGE 22
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 25
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 29
NOTES TO FINANCIAL STATEMENTS
PAGE 50
FINANCIAL HIGHLIGHTS
PAGE 54
<PAGE>
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
Dear Shareholders:
We are very pleased to report that the six months ended January 31, 1996, were
ones of solid, strong growth for the financial markets and for the AmSouth
Mutual Funds. During the period, stocks shot through the 5000 level on the
Dow, and then, with barely a pause, thundered upward to 5500. While the market
seems to have leveled off in this range in recent weeks and some sectors are
beginning to show weakness, investors can hardly complain. The Dow Jones
Industrial Average's gain of nearly 700 points and the 14.50% increase in the
S&P 500 during the six-month period can only be described as spectacular.
The overall trend was upward in the fixed-income markets as well. Although
bonds took some hits as budget battles raged in Washington, clear evidence
that the economy was slowing also appeared--and interest rates began to fall.
The decline was reinforced by the Federal Reserve Board, which, citing
decreasing inflationary expectations, reduced interest rates twice during the
period. As a result, all areas of the bond market experienced solid, positive
gains over the six months and for the year--a very welcome relief after 1994.
MARKETS RISE ON WEAK ECONOMIC TIDE
Much of the strength displayed by the financial markets during the period was
based on evidence that economic growth had remained moderate and on
expectations that the Federal Reserve would continue to lower interest rates.
Immediately following the Federal Reserve's decision to lower rates in July,
there were some signs that growth was picking up rather than slowing. For
example, manufacturing, housing construction and employment all showed slight
increases. Optimism was short-lived, however, as the remainder of the year
produced evidence of continued softening in the economy.
While job growth continued to increase in the second half of 1995, it was
slower than in the first half of the year. Although mortgage rates fell
sharply in 1995, the effect on home sales was disappointing. In addition,
reflecting the weakness in the housing market, the inventory of unsold homes
increased to a six-year high at the close of 1995.
Toward the end of January, as interest rates fell even further, the number of
mortgage applications and building permits increased, which could point to a
possible upturn in the months ahead. Even so, inflationary pressures at both
the consumer and wholesale levels remain moderate. The consumer price index, a
measure of inflation at the consumer level, fell to 2.5% in 1995 from 2.7% in
1994.
-1-
<PAGE>
All of this news was very good news for investors--who hate nothing more than
uncertainty. After spending 1994 worrying that overheated growth would spark
spiraling inflation, and the first half of 1995 considering the possibility of
recession, investors acknowledged that the Federal Reserve had achieved what
was once thought impossible: a "soft landing" for the economy. The slow-growth,
low-inflation environment was now a reality--and investors' enthusiasm sparked
the rally in bonds and the breathtaking rise in stocks in the second half of
1995.
WHERE DO WE GO FROM HERE?
It is very unlikely that 1996 will produce gains as dramatic as those we saw in
1995. Nevertheless, we anticipate that the months ahead will be positive for
the financial markets. Although the economy's growth rate is expected to slow,
the Federal Reserve has indicated its willingness to continue to lower interest
rates to prolong the expansion.
Our outlook for the bond market is positive. While we anticipate some
volatility as the economy slows and interest rates move to lower levels, we do
not expect to see any dramatic change in the environment. In addition, some
sort of resolution on a budget plan in Washington--or even meaningful progress
toward one--would be enormously positive for the fixed-income markets.
IN CLOSING. . .
In the pages that follow, you'll find a detailed discussion of the performance
of each of the AmSouth Mutual Funds during the six months ended January 31,
1996. We urge you to read this report closely to better understand the
performance of your investment.
We thank you for your continued confidence in us and look forward to providing
you with investment management to serve your financial 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 1-800-733-9204.
Sincerely,
William J. Tomko AmSouth Bank of Alabama
Chairman Investment Advisor
AmSouth Mutual Funds
-2-
<PAGE>
For more complete information on any of the AmSouth Mutual Funds, including
charges and expenses, call 1-800-733-9204 for a prospectus, which you should
read carefully before you invest or send money. Shares are distributed by
BISYS Fund Services.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
-3-
<PAGE>
THE AMSOUTH EQUITY FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
EQUITY
DATE EQUITY S&P 500
---- ------ -------
<S> <C> <C>
12/01/88 10000 10000
01/31/89 10202 10917
07/31/89 11849 12920
01/31/90 11390 12489
07/31/90 12046 13755
01/31/91 11961 12962
07/31/91 13065 15512
01/31/92 13826 16608
07/31/92 14757 17492
01/31/93 15486 18353
07/31/93 16794 19009
01/31/94 18668 20712
07/31/94 18121 19995
01/31/95 18261 20830
07/31/95 21613 25205
01/31/96 23521 28861
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year 5 Year (12/1/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Fund 23.04% 13.43% 12.67%
- --------------------------------------------------------------------------------
</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 managements 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 4.50% sales charge.
After leading the market for much of 1995, the technology sector began to fall
apart in September. Over the following months, almost all tech stocks
experienced significant declines, and some of the highest fliers dropped
dramatically. Unlike many other stock funds, however, our Fund was not
significantly affected.
In keeping with our philosophy of focusing on quality stocks in out-of-favor
industries, we had reduced our position in the technology sector earlier in the
year. As a result, the Fund was well-positioned when these stocks declined in
the fourth quarter. Fund performance kept pace with industry averages, and for
the six months ended January 31, 1996, the Fund had a total return of 8.83%
(without the sales charge).**
MINIMIZING DOWNSIDE RISK
Although the prices of tech stocks have fallen to more realistic levels, we
have not moved aggressively back into the sector. Instead, assets were
reinvested in retail and service stocks--two areas which have underperformed
the market over the past three years, and where, we believe, there is solid
potential. Dayton Hudson, The May Company and WMX Technologies were among the
names added to the portfolio. Two small specialty transportation stocks, Kirby
Exploration and U.S. Freightways, were also added.
**The Fund's total return with the maximum 4.50% sales charge was 3.93% for the
period.
-4-
<PAGE>
THE AMSOUTH EQUITY FUND
LOOKING AHEAD
In the current slow-growth environment, it will be very hard for corporations
to sustain the earnings increases of 20% or better posted over the past three
years. Investors, who have grown accustomed to regular announcements of record-
breaking numbers, may treat slower growth harshly. Consequently, we will
continue to seek out companies where investor expectations have not been
inflated.
The Fund's top five equity holdings as of January 31, 1996: Gannett Company
(2.42%), American Home Products (2.39%), Baxter International (2.35%), Texaco
(2.28%) and IBM (2.27%).+
+The composition of the Fund's holdings is subject to change.
-5-
<PAGE>
THE AMSOUTH REGIONAL EQUITY FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
DATE REGIONAL EQUITY S&P 500
---- --------------- -------
<S> <C> <C>
12/01/88 10000 10000
01/31/89 9857 10917
07/31/89 11250 12920
01/31/90 10974 12489
07/31/90 12309 13755
01/31/91 12176 12962
07/31/91 13850 15512
01/31/92 15901 16608
07/31/92 16712 17492
01/31/93 19000 18353
07/31/93 19307 19009
01/31/94 21132 20712
07/31/94 20249 19995
01/31/95 20656 20830
07/31/95 23306 25205
01/31/96 25308 28861
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year 5 Year (12/1/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Regional Equity Fund 16.99% 14.70% 13.82%
- --------------------------------------------------------------------------------
</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 these value-added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's share, when redeemed, may
be worth more or less than the original cost.
* Reflects 4.50% sales charge.
After chasing tech stocks higher through most of the year, market sentiment
shifted to large-capitalization growth stocks in the second half of 1995. As a
result, small- and mid-cap stocks like those in our portfolio lagged the
overall market--while earning returns that in any other year would have been
considered substantial. Consequently, we are pleased to report that the Fund,
while trailing the general market, posted a return of 8.59% (without the sales
charge) during the six months ended January 31, 1996.**
BEFORE THE GAMES BEGIN. . .
Although the economic impact of construction spending for the 1996 Olympic
Games is winding down, royalty income and ticket sales have already covered
roughly 95% of the construction costs, and spending by hundreds of thousands of
anticipated visitors has yet to begin. So, unlike other host cities in the
past, it appears that Atlanta will not only break even on the Games, but in
fact, may turn a profit--welcome news for businesses in the area.
LOOKING AHEAD
Recent announcements regarding the closing of textile operations have been
offset to some extent by Mercedes' and BMW's plans to locate industrial plants
in the region. In addition, Florida continues to be the third-fastest-growing
state in the nation. Consequently, it appears that our economy will continue to
expand
**The Fund's total return with the maximum 4.50% sales charge was 3.72% for the
period.
-6-
<PAGE>
THE AMSOUTH REGIONAL EQUITY FUND
at a faster rate than the nation as a whole, which bodes well for investments
in the small- and mid-cap companies located here.
As of January 31, 1996, the Fund's top five equity holdings were HealthSouth
(9.11%), Health Management Associates (3.61%), Lance Inc. (2.61%), Southern
Company (2.55%) and Cracker Barrel (2.55%).+
+The composition of the Fund's holdings is subject to change.
-7-
<PAGE>
THE AMSOUTH BALANCED FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
BALANCED
DATE FUND S&P 500 LB G/C
---- -------- ------- ------
<S> <C> <C> <C>
12/19/91 10000 10000 10000
12/31/91 10170 10000 10000
01/31/92 10191 9814 9852
07/31/92 10861 10337 10512
01/31/93 11311 10846 10992
07/31/93 12106 11233 11672
01/31/94 13052 12239 12127
07/31/94 12727 11816 11657
01/31/95 12824 12309 11749
07/31/95 14670 14895 12837
01/31/96 15910 17055 13831
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year (12/19/91)
- --------------------------------------------------------------------------------
<S> <C> <C>
Balanced Fund 18.44% 11.92%
- --------------------------------------------------------------------------------
</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 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 then the original cost.
* Reflects 4.50% sales charge.
With approximately 55% of its assets invested in stocks and 45% in bonds, the
Fund benefited from the impressive performance of both markets during the six
months ended January 31, 1996. Total return for the period was 8.45% (without
the sales charge).**
Among the Fund's equity holdings, The Gap was a stand-out--as its stock price
climbed some 40% over the past 12 months. In addition, the Fund's holdings in
large-capitalization companies posted solid gains as market sentiment shifted
their way in the fourth quarter. The Fund's fixed-income holdings also made a
significant contribution to performance. As a result, we maintained the
portfolio's allocation between stocks and bonds since we believed that, on a
risk-adjusted basis, the rewards were relatively even.
FINE-TUNING FOR THE FUTURE
Within each segment, however, we made some adjustments. As spreads between
corporate and U.S. Government bonds narrowed, we increased the Fund's holdings
of government bonds to maintain credit quality. On the equity side, gains
realized some months earlier from the sale of technology stocks were reinvested
in service and retail stocks.
**The Fund's total return with the maximum 4.50% sales charge was 3.58% for the
period.
-8-
<PAGE>
THE AMSOUTH BALANCED FUND
As of January 31, 1996, the average credit quality of the Fund's fixed-income
holdings was AAA, and the Fund's top five equity holdings were Baxter
International (1.53%), Nynex (1.47%), Bristol-Myers Squibb (1.46%), Texaco
(1.45%) and American Home Products 1.40%).+
LOOKING AHEAD
After five years of expansion, the economy and corporate profits are expected
to slow in the months ahead. Given investors' nervousness at current
valuations, stocks could be very vulnerable in the short term. As a result, we
expect to continue to increase the Fund's bond holdings until the portfolio is
equally divided between stocks and bonds.
+The composition of the Fund's holdings is subject to change.
-9-
<PAGE>
THE AMSOUTH BOND FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
DATE BOND LB G/C
---- ---- ------
<S> <C> <C>
01/31/89 10000 10000
02/01/89 9826 10167
07/31/89 10757 11189
01/31/90 10817 11306
07/31/90 11353 11886
01/31/91 11889 12552
07/31/91 12261 13104
01/31/92 13337 14202
07/31/92 14273 15153
01/31/93 14910 15845
07/31/93 15672 16825
01/31/94 16201 17481
07/31/94 15709 16804
01/31/95 15758 16937
07/31/95 17231 18504
01/31/96 18470 19938
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year 5 Year (12/1/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Bond Fund 13.65% 8.55% 8.93%
- --------------------------------------------------------------------------------
</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 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.
During the six months ended January 31, 1996, bonds staged a strong rally as
interest rates plunged. Nevertheless, the environment was uncertain, and the
market was volatile. In an effort to reduce the Fund's exposure to possible
reversals, we approached the markets cautiously. Maturities in the portfolio
were kept shorter than industry average during the period. Since spreads
between corporate and U.S. Government securities were relatively narrow, we
reduced our exposure in corporate bonds in favor of government bonds in an
effort to upgrade the credit quality of the portfolio.
THE BOND FUND
At the end of the period, the Bond Fund held approximately 60% of its assets in
U.S. Government securities and 40% in corporate bonds. As a result, the average
credit quality of the portfolio's holdings rose to AAA. The average maturity of
the Fund's holdings was 6.2 years, versus an industry average of 9.4 years.+
The Fund's total return for the six months ended January 31, 1996, was 7.19%
(without the sales charge).**
+The composition of the Fund's holdings is subject to change.
**With the maximum sales charge of 3.00%, total return for the Bond Fund was
3.97% for the period.
-10-
<PAGE>
THE AMSOUTH BOND FUND
LOOKING AHEAD
We expect moderate economic growth and slower growth in corporate profits. As a
result, we expect the market to be fairly volatile, and spreads between
corporate and government securities should widen. All in all, however, we
believe the coming year will be a positive one for the fixed-income markets.
While we will seek to lengthen maturities if there are signs that interest
rates may fall further, we expect to make no major changes in the maturity or
quality structure of either portfolio.
-11-
<PAGE>
THE AMSOUTH LIMITED MATURITY FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
LIMITED ML 1-5 YR
DATE MATURITY G/C
---- -------- ---------
<S> <C> <C>
02/01/89 10000 10000
07/31/89 10366 10783
01/31/90 10571 11049
07/31/90 11070 11608
01/31/91 11601 12254
07/31/91 12073 12785
01/31/92 12850 13656
07/31/92 13460 14373
01/31/93 13846 14890
07/31/93 14365 15397
01/31/94 14776 15843
07/31/94 14476 15670
01/31/95 14582 15863
07/31/95 15584 16927
01/31/96 16330 17806
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year 5 Year (2/1/89)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Limited Maturity Fund 8.63% 6.43% 7.25%
- --------------------------------------------------------------------------------
</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 investments 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, any
be worth more or less than the original cost.
* Reflects 3.00% sales charge.
During the six months ended January 31, 1996, bonds staged a strong rally as
interest rates plunged. Nevertheless, the environment was uncertain and the
market was volatile. In an effort to reduce the Fund's exposure to possible
reversals, we approached the markets cautiously. Maturities in the portfolio
were kept shorter than the industry average during most of the period. Since
spreads between corporate and U.S. Government securities were relatively
narrow, we reduced our exposure in corporate bonds in favor of government bonds
in an effort to upgrade the credit quality of the portfolio.
THE LIMITED MATURITY FUND
As a result of our shift toward U.S. Government securities, 68% of the Fund's
assets were invested in corporate bonds at the end of the period--down from 73%
six months ago and more than 90% 12 months ago.+ The average credit quality of
the Fund's holdings was AA and their average maturity was 2.82 years. The
Fund's total return for the six-month period was 4.79% (without the sales
charge).**
+The composition of the Fund's holdings is subject to change.
**With the maximum sales charge of 3.00%, total return for the Limited Maturity
Fund was 1.64% for the period.
-12-
<PAGE>
THE AMSOUTH LIMITED MATURITY FUND
LOOKING AHEAD
We expect moderate economic growth and slower growth in corporate profits. As a
result, we expect the market to be fairly volatile, and spreads between
corporate and government securities should widen. All in all, however, we
believe the coming year will be a positive one for the fixed-income markets.
While we will seek to lengthen maturities if there are signs that interest
rates may fall further, we expect to make no major changes in the maturity or
quality structure of either portfolio.
-13-
<PAGE>
THE AMSOUTH GOVERNMENT INCOME FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
GOVERNMENT LB
DATE INCOME 1-5 YR G
---- ---------- --------
<S> <C> <C>
10/01/93 10000 10000
07/31/94 9674 10004
01/31/95 9823 10228
07/31/95 10489 10897
01/31/96 11116 11453
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year (10/1/93)
- --------------------------------------------------------------------------------
<S> <C> <C>
Government Income Fund 9.83% 4.63%
- --------------------------------------------------------------------------------
</TABLE>
The performance of the AmSouth Government Income Fund is measured against the
Lehman Brothers 1-5 Year Government Bond Index, an unmanaged index generally
representative of the total return of short-term government 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.
Prepayment fears rippled through the mortgage-backed government securities
(Ginnie Mae) market as interest rates fell during the six months ended January
31, 1996. As homeowners refinanced their mortgages--the underlying securities
in Ginnie Maes--at lower rates, Ginnie Maes were increasingly "called," or
redeemed at par. As we go to press, concerns about refinancing still cloud the
market.
MOVES TO MINIMIZE CALL RISK
Having anticipated this development some months earlier, we increased the
Fund's position in U.S. Treasury securities, which are non-callable, early in
1995--and we continued to do so throughout the period. In addition, as
opportunities arose, we added lower-coupon Ginnie Mae securities which, at the
time, were less vulnerable to prepayment. Of course, as interest rates
continued to drop in recent weeks, the likelihood of these securities being
called has risen.
We are pleased with the results of our efforts to decrease the portfolio's
vulnerability. For the six months ended January 31, 1996, the Fund produced a
total return of 5.98% (without the sales charge).**
**The Fund's total return with the maximum 3.00% sales charge was 2.79% for the
period.
-14-
<PAGE>
THE AMSOUTH GOVERNMENT INCOME FUND
LOOKING AHEAD
As interest rates move lower, we expect prepayment concerns to continue to
plague the market. Nevertheless, we believe the year ahead will be a good one
for fixed-income investors. Consequently, while we expect to continue our
efforts to minimize the portfolio's vulnerability to refinancing, we do not
anticipate making any significant changes in the Fund's maturity structure or
allocation in the near term.
As of January 31, 1996, the average maturity of the Fund's holdings was 16.55
years. Approximately 51% of the Fund's assets were invested in non-callable
U.S. Treasury securities and 48% in agency securities.+
+The composition of the Fund's holdings is subject to change.
-15-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND+
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
FLORIDA ML
DATE TAX-FREE 3-7 YR MUNI
---- -------- -----------
<S> <C> <C>
09/30/94 10000 10000
01/31/95 9737 9998
07/31/95 10333 10670
01/31/96 10753 11119
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Return*
- --------------------------------------------------------------------------------
Since
Inception
1 Year (9/30/94)
- --------------------------------------------------------------------------------
<S> <C> <C>
Florida Tax-Free 7.09% 5.57%
- --------------------------------------------------------------------------------
</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.
Like municipal markets throughout the country, Florida experienced short
supplies during the six months ended January 31, 1996. As a result,
opportunities to lengthen maturities as interest rates dropped were few and far
between. Despite the short supply and anxiety about the possibility of a flat
tax--which would eliminate the tax exemption for municipal bonds--the Fund
performed well. For the six months ended January 31, 1996, it returned 4.06%
(without the sales charge).**
FLAT TAX FEVER
In recent months, the market's anxiety about the possibility of a flat tax rose
and fell with the fortunes of the Forbes campaign. Although attention has faded
recently, we've not heard the last of the flat tax. Due to its sheer
simplicity, it is extremely popular on the campaign trail--and we expect it to
continue to surface as we move through this election year.
Realistically, however, the possibility that a flat tax will be enacted in the
near future is remote. Making such a dramatic change in the tax code would
require equally dramatic action to cut the federal budget, which, so far, has
proved to be elusive.
+The Fund's income may be subject to the federal alternative minimum tax and to
certain state and local taxes.
**The Fund's total return with the maximum 3.00% sales charge was .93% for the
period.
-16-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND
A QUALITY PORTFOLIO
At period's end, more than 75% of the portfolio was invested in issues rated
AAA, and the average credit quality of the securities in the portfolio was
AA1. The average portfolio maturity was 5.57 years.++
Since we expect interest rates to fall further, we will continue to seek out
opportunities to enhance yield by purchasing bonds with maturities in the 12-
to 15-year range. No other major changes are expected in the portfolio's
credit or maturity structure.
++The composition of the Fund's holdings is subject to change.
-17-
<PAGE>
THE AMSOUTH MONEY MARKET FUNDS
Very short-term securities continued to pay investors higher yields than six-
month or one-year notes during the six months ended January 31, 1996. As a
result, during the period, the environment in the money markets was a
challenging one--and the complexity was only heightened by the Federal
Reserve's two moves to lower short-term rates.
In the past, any such decrease would be a call to lengthen maturities. Given
the expectation that rates, particularly short-term rates, will fall farther,
we focused our efforts on maintaining flexibility. Consequently, we were able
to respond rapidly to changes in the marketplace, and the Funds were well-
positioned to take advantage of opportunities to increase yields as they arose
throughout the period.
. The Prime Obligations Fund--During the six months ended January 31, 1996,
maturities in the Fund's portfolio ranged from a low of 53 days to a high of
63 days. At period's end, the portfolio's average maturity was at the high end
of the range at 63 days.
. The U.S. Treasury Fund--Maturities in the Fund's portfolio ranged from 45
days to 63 days during the period. As of January 31, 1996, the Fund's average
maturity was 63 days.
. The Tax-Exempt Fund--As interest rates declined throughout the period, the
average maturity of the Fund ranged from 43 days to 61 days. On January 31,
1996, the portfolio's average maturity was 61 days.
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.
-18-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1996
Amounts in Thousands Except per Share Amounts
(Unaudited)
<TABLE>
<CAPTION>
PRIME U.S. TAX
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- -------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost.................... $538,953 $291,289 $66,720
Repurchase agreements, at cost.................... 54,443 149,298
-------- -------- -------
Total (Cost $593,396; $440,587; and $66,720, re-
spectively)...................................... 593,396 440,587 66,720
Interest receivable............................... 1,605 3,742 427
Prepaid expenses and other assets................. 16 10 1
-------- -------- -------
Total Assets.................................. 595,017 444,339 67,148
-------- -------- -------
LIABILITIES:
Dividends payable................................. 2,566 1,665 176
Payable to brokers for investments purchased...... 14,699
Accrued expenses and other payables:
Investment advisory fees........................ 202 137 12
Administration fees............................. 32 23 4
Other........................................... 61 48 15
-------- -------- -------
Total Liabilities............................. 17,560 1,873 207
-------- -------- -------
NET ASSETS:
Capital........................................... 577,480 442,465 66,941
Accumulated undistributed net realized gains
(losses) from investment
transactions..................................... (23) 1
-------- -------- -------
Net Assets.................................... $577,457 $442,466 $66,941
======== ======== =======
Outstanding units of beneficial interest (shares). 577,480 442,466 66,941
======== ======== =======
Net asset value--offering and redemption price per
share............................................ $ 1.00 $ 1.00 $ 1.00
======== ======== =======
</TABLE>
See notes to financial statements.
-19-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1996
Amounts in Thousands Except per Share Amounts
(Unaudited)
<TABLE>
<CAPTION>
FLORIDA
LIMITED GOVERNMENT TAX-
BOND MATURITY INCOME FREE
FUND FUND FUND FUND
-------- -------- ---------- -------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $98,369;
$61,624; $17,708; and $46,573, re-
spectively).......................... $103,749 $62,414 $18,043 $48,790
Interest and dividends receivable..... 2,090 864 310 655
Receivable for capital shares issued.. 28 1 2
Unamortized organizational costs...... 2
Prepaid expenses and other assets..... 2 2 3
-------- ------- ------- -------
Total Assets...................... 105,869 63,281 18,355 49,450
-------- ------- ------- -------
LIABILITIES:
Payable for capital shares redeemed... 22 1 15
Accrued expenses and other payables:
Investment advisory fees............ 31 19 3 9
Administration fees................. 4 2 1 1
Other............................... 12 9 3 12
-------- ------- ------- -------
Total Liabilities................. 69 31 22 22
-------- ------- ------- -------
NET ASSETS:
Capital............................... 100,084 63,344 18,373 47,058
Undistributed net investment income... 370 198 209 121
Net unrealized appreciation from in-
vestments............................ 5,380 790 335 2,217
Accumulated undistributed net realized
gains (losses) from investment
transactions......................... (34) (1,082) (584) 32
-------- ------- ------- -------
Net Assets........................ $105,800 $63,250 $18,333 $49,428
======== ======= ======= =======
Outstanding units of beneficial inter-
est (shares)......................... 9,485 5,959 1,865 4,701
======== ======= ======= =======
Net asset value--redemption price per
share................................ $ 11.15 $ 10.61 $ 9.83 $ 10.51
======== ======= ======= =======
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............................ $ 11.49 $ 10.94 $ 10.13 $ 10.84
======== ======= ======= =======
</TABLE>
See notes to financial statements.
-20-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1996
Amounts in Thousands Except per Share Amounts
(Unaudited)
<TABLE>
<CAPTION>
REGIONAL
EQUITY EQUITY BALANCED
FUND FUND FUND
-------- -------- --------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $291,734; $67,980; and
$275,247, respectively).......................... $354,793 $84,312 $323,031
Interest and dividends receivable................. 893 132 3,104
Receivable for capital shares issued.............. 193 77 76
Receivable from brokers for investments sold...... 2,906 1 1,863
Prepaid expenses and other assets................. 10 1 18
-------- ------- --------
Total Assets.................................. 358,795 84,523 328,092
-------- ------- --------
LIABILITIES:
Payable for capital shares redeemed............... 38 44 55
Payable to brokers for investments purchased...... 1,728 331
Accrued expenses and other payables:
Investment advisory fees........................ 165 39 134
Administration fees............................. 11 3 11
Other........................................... 25 3 36
-------- ------- --------
Total Liabilities............................. 1,967 420 236
-------- ------- --------
NET ASSETS:
Capital........................................... 289,531 67,548 276,439
Undistributed net investment income............... 190 54 552
Net unrealized appreciation from investments...... 63,059 16,332 47,784
Accumulated undistributed net realized gains from
investment transactions.......................... 4,048 169 3,081
-------- ------- --------
Net Assets.................................... $356,828 $84,103 $327,856
======== ======= ========
Outstanding units of beneficial interest (shares). 20,490 4,156 24,714
======== ======= ========
Net asset value--redemption price per share....... $ 17.41 $ 20.24 $ 13.27
======== ======= ========
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.................................. $ 18.23 $ 21.19 $ 13.90
======== ======= ========
</TABLE>
See notes to financial statements.
-21-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the six months ended January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
PRIME U.S. TAX
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- ------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................... $18,262 $11,281 $1,320
------- ------- ------
Total Income.................................... 18,262 11,281 1,320
------- ------- ------
EXPENSES:
Investment advisory fees.......................... 1,232 779 139
Administration fees............................... 616 389 69
Custodian and accounting fees..................... 175 107 18
Legal and audit fees.............................. 38 21 5
Trustees' fees and expenses....................... 8 4 1
Transfer agent fees............................... 74 46 12
Registration and filing fees...................... 11 8 4
Printing fees..................................... 16 10 2
Other............................................. 9 4 1
Expenses voluntarily reduced by investment advi-
sor.............................................. (69)
------- ------- ------
Total Expenses.................................. 2,179 1,368 182
------- ------- ------
Net Investment Income............................. 16,083 9,913 1,138
------- ------- ------
Change in net assets resulting from operations.... $16,083 $ 9,913 $1,138
======= ======= ======
</TABLE>
See notes to financial statements.
-22-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the six months ended January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
LIMITED GOVERNMENT FLORIDA
BOND MATURITY INCOME TAX-FREE
FUND FUND FUND FUND
------ -------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................... $3,417 $1,915 $ 675 $1,193
------ ------ ------ ------
Total Income............................ 3,417 1,915 675 1,193
------ ------ ------ ------
EXPENSES:
Investment advisory fees.................. 324 201 59 160
Administration fees....................... 100 62 18 49
Custodian and accounting fees............. 31 18 8 18
Legal and audit fees...................... 5 4 1 4
Trustees' fees and expenses............... 1 1 1
Transfer agent fees....................... 18 13 9 10
Registration and filing fees.............. 6 5 3 8
Printing fees............................. 6 1 1 5
Other..................................... 1 1 1 2
Expenses voluntarily reduced by investment
advisor and
administrator............................ (115) (71) (41) (111)
------ ------ ------ ------
Total Expenses.......................... 377 235 59 146
------ ------ ------ ------
Net Investment Income..................... 3,040 1,680 616 1,047
------ ------ ------ ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from invest-
ment transactions........................ (35) 157 (133) 59
Change in unrealized appreciation from in-
vestments................................ 3,929 1,087 573 867
------ ------ ------ ------
Net realized/unrealized gains from invest-
ments.................................... 3,894 1,244 440 926
------ ------ ------ ------
Change in net assets resulting from opera-
tions.................................... $6,934 $2,924 $1,056 $1,973
====== ====== ====== ======
</TABLE>
See notes to financial statements.
-23-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the six months ended January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
REGIONAL
EQUITY EQUITY BALANCED
FUND FUND FUND
------- -------- --------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................................... $ 764 $ 184 $ 4,884
Dividend income..................................... 3,836 783 2,295
------- ------ -------
Total Income...................................... 4,600 967 7,179
------- ------ -------
EXPENSES:
Investment advisory fees............................ 1,210 306 1,252
Administration fees................................. 304 77 313
Custodian and accounting fees....................... 85 22 88
Legal and audit fees................................ 17 4 17
Trustees' fees and expenses......................... 3 1 4
Transfer agent fees................................. 42 19 42
Registration and filing fees........................ 13 4 13
Printing fees....................................... 7 2 11
Other............................................... 4 2 4
Expenses voluntarily reduced by investment advisor
and administrator.................................. (122) (31) (284)
------- ------ -------
Total Expenses.................................... 1,563 406 1,460
------- ------ -------
Net Investment Income............................... 3,037 561 5,719
------- ------ -------
REALIZED/UNREALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions..... 7,891 886 5,205
Change in unrealized appreciation from investments.. 15,823 4,677 14,661
------- ------ -------
Net realized/unrealized gains from investments...... 23,714 5,563 19,866
------- ------ -------
Change in net assets resulting from operations...... $26,751 $6,124 $25,585
======= ====== =======
</TABLE>
See notes to financial statements.
-24-
<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
----------------------- --------------------- ---------------------
SIX MONTHS SIX MONTHS YEAR SIX MONTHS YEAR
ENDED YEAR ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995 1996 1995 1996 1995
----------- ----------- ----------- --------- ----------- ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income. $ 16,083 $ 27,510 $ 9,913 $ 14,989 $ 1,138 $ 1,972
Net realized gains
from investment
transactions......... 1
--------- ----------- --------- --------- -------- ---------
Change in net assets
resulting from
operations............. 16,083 27,510 9,913 14,990 1,138 1,972
--------- ----------- --------- --------- -------- ---------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... (16,083) (27,510) (9,913) (14,989) (1,138) (1,972)
--------- ----------- --------- --------- -------- ---------
Change in net assets
from shareholder
distributions.......... (16,083) (27,510) (9,913) (14,989) (1,138) (1,972)
--------- ----------- --------- --------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 756,374 1,597,046 576,913 900,697 73,612 99,365
Dividends reinvested.. 3,668 5,036 1,214 2,103 292 311
Cost of shares
redeemed............. (800,258) (1,561,740) (458,600) (880,465) (64,603) (102,959)
--------- ----------- --------- --------- -------- ---------
Change in net assets
from share
transactions........... (40,216) 40,342 119,527 22,335 9,301 (3,283)
--------- ----------- --------- --------- -------- ---------
Change in net assets.... (40,216) 40,342 119,527 22,336 9,301 (3,283)
NET ASSETS:
Beginning of period... 617,673 577,331 322,939 300,603 57,640 60,923
--------- ----------- --------- --------- -------- ---------
End of period......... $ 577,457 $ 617,673 $ 442,466 $ 322,939 $ 66,941 $ 57,640
========= =========== ========= ========= ======== =========
SHARE TRANSACTIONS:
Issued................ 756,374 1,597,046 576,913 900,697 73,612 99,365
Reinvested............ 3,668 5,036 1,214 2,103 292 311
Redeemed.............. (800,258) (1,561,740) (458,600) (880,465) (64,603) (102,959)
--------- ----------- --------- --------- -------- ---------
Change in shares........ (40,216) 40,342 119,527 22,335 9,301 (3,283)
========= =========== ========= ========= ======== =========
</TABLE>
See notes to financial statements.
-25-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Amounts in Thousands
<TABLE>
<CAPTION>
BOND FUND LIMITED MATURITY FUND
---------------------- ----------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995 1996 1995
----------- ---------- ----------- ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.......... $ 3,040 $ 6,115 $ 1,680 $ 2,888
Net realized gains (losses)
from investment transactions.. (35) 993 157 (730)
Net change in unrealized
appreciation from investments. 3,929 2,305 1,087 1,456
-------- -------- ------- --------
Change in net assets resulting
from operations................. 6,934 9,413 2,924 3,614
-------- -------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income..... (2,968) (6,084) (1,680) (2,844)
From net realized gains from
investment transactions....... (1,025) (328) (17)
-------- -------- ------- --------
Change in net assets from
shareholder distributions....... (3,993) (6,412) (1,697) (2,844)
-------- -------- ------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.... 14,357 38,646 8,640 23,917
Dividends reinvested........... 2,649 3,257 834 894
Cost of shares redeemed........ (8,818) (29,705) (7,249) (17,443)
-------- -------- ------- --------
Change in net assets from share
transactions.................... 8,188 12,198 2,225 7,368
-------- -------- ------- --------
Change in net assets............. 11,129 15,199 3,452 8,138
NET ASSETS:
Beginning of period............ 94,671 79,472 59,798 51,660
-------- -------- ------- --------
End of period.................. $105,800 $ 94,671 $63,250 $ 59,798
======== ======== ======= ========
SHARE TRANSACTIONS:
Issued......................... 1,306 3,719 825 2,327
Reinvested..................... 242 314 80 88
Redeemed....................... (803) (2,800) (692) (1,718)
-------- -------- ------- --------
Change in shares................. 745 1,233 213 697
======== ======== ======= ========
</TABLE>
See notes to financial statements.
-26-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Amounts in Thousands
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND FLORIDA TAX-FREE FUND
---------------------- -------------------------
SIX MONTHS SIX MONTHS SEPTEMBER 30,
ENDED YEAR ENDED ENDED 1994 TO
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995 1996 1995(A)
----------- ---------- ----------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income....... $ 616 $ 1,069 $ 1,047 $ 1,511
Net realized gains (losses)
from investment
transactions............... (133) (217) 59 (7)
Net change in unrealized
appreciation from
investments................ 573 354 867 1,350
------- ------- ------- -------
Change in net assets resulting
from operations.............. 1,056 1,206 1,973 2,854
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.. (509) (967) (1,040) (1,397)
From net realized gains from
investment transactions.... (20)
Tax return of capital....... (135)
------- ------- ------- -------
Change in net assets from
shareholder distributions.... (509) (1,102) (1,060) (1,397)
------- ------- ------- -------
CAPITAL TRANSACTIONS:
Proceeds from shares issued. 4,438 6,654 4,210 53,611
Dividends reinvested........ 263 723 69 40
Cost of shares redeemed..... (3,594) (6,267) (4,097) (6,775)
------- ------- ------- -------
Change in net assets from
share transactions........... 1,107 1,110 182 46,876
------- ------- ------- -------
Change in net assets.......... 1,654 1,214 1,095 48,333
NET ASSETS:
Beginning of period......... 16,679 15,465 48,333
------- ------- ------- -------
End of period............... $18,333 $16,679 $49,428 $48,333
======= ======= ======= =======
SHARE TRANSACTIONS:
Issued...................... 462 711 406 5,353
Reinvested.................. 27 78 7 4
Redeemed.................... (372) (672) (395) (674)
------- ------- ------- -------
Change in shares.............. 117 117 18 4,683
======= ======= ======= =======
</TABLE>
- --------
(a) Period from commencement of operations.
See notes to financial statements.
-27-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Amounts in Thousands
<TABLE>
<CAPTION>
EQUITY FUND REGIONAL EQUITY FUND BALANCED FUND
---------------------- ---------------------- ----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995 1996 1995 1996 1995
----------- ---------- ----------- ---------- ----------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income. $ 3,037 $ 4,996 $ 561 $ 809 $ 5,719 $ 10,098
Net realized gains
from investment
transactions......... 7,891 11,383 886 904 5,205 8,851
Net change in
unrealized
appreciation from
investments.......... 15,823 26,642 4,677 7,072 14,661 19,475
-------- -------- ------- ------- -------- --------
Change in net assets
resulting from
operations............. 26,751 43,021 6,124 8,785 25,585 38,424
-------- -------- ------- ------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... (3,114) (4,796) (504) (808) (5,735) (9,889)
From net realized
gains from investment
transactions......... (10,800) (6,679) (756) (7,465) (6,217)
-------- -------- ------- ------- -------- --------
Change in net assets
from shareholder
distributions.......... (13,914) (11,475) (1,260) (808) (13,200) (16,106)
-------- -------- ------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 84,190 75,477 14,285 16,875 46,391 69,297
Dividends reinvested.. 8,482 6,461 788 454 10,447 10,838
Cost of shares
redeemed............. (24,438) (43,338) (4,335) (11,549) (36,876) (43,250)
-------- -------- ------- ------- -------- --------
Change in net assets
from share
transactions........... 68,234 38,600 10,738 5,780 19,962 36,885
-------- -------- ------- ------- -------- --------
Change in net assets.... 81,071 70,146 15,602 13,757 32,347 59,203
NET ASSETS:
Beginning of period... 275,757 205,611 68,501 54,744 295,509 236,306
-------- -------- ------- ------- -------- --------
End of period......... $356,828 $275,757 $84,103 $68,501 $327,856 $295,509
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
Issued................ 4,966 4,997 718 970 3,588 5,839
Reinvested............ 500 450 39 26 808 939
Redeemed.............. (1,442) (2,851) (218) (662) (2,843) (3,630)
-------- -------- ------- ------- -------- --------
Change in shares........ 4,024 2,596 539 334 1,553 3,148
======== ======== ======= ======= ======== ========
</TABLE>
See notes to financial statements.
-28-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
BANKERS ACCEPTANCE (1.7%)
10,000 Sanwa Bank, 5.83%, 3/1/96................................ $ 9,953
--------
Total Bankers Acceptance 9,953
--------
CERTIFICATES OF DEPOSIT (4.4%):
Yankee--German (0.9%):
5,000 Norddeutsche Landesbank, 5.65%, 5/15/96.................. 5,000
--------
Banking (3.5%):
10,000 Chase Manhattan, 5.40%, 6/5/96........................... 10,000
10,000 Societe Generale Bank, 5.50%, 3/4/96..................... 10,000
--------
20,000
--------
Total Certificates of Deposit 25,000
--------
COMMERCIAL PAPER (64.8%):
Asset Backed (7.1%):
10,400 Ciesco L.P., 5.68%, 2/8/96............................... 10,389
10,100 Cooperative Association of Tractor Dealers, 5.48%,
3/14/96................................................. 10,035
4,400 Cooperative Association of Tractor Dealers, 5.35%,
4/17/96................................................. 4,350
6,327 Strategic Asset Funding, 5.85%, 2/29/96.................. 6,298
10,000 Strategic Asset Funding, 5.38%, 4/30/96.................. 9,867
--------
40,939
--------
Automotive (1.6%):
9,000 Echlin, Inc., 5.41%, 3/18/96............................. 8,938
--------
Banking (6.6%):
8,300 Banco Real, 5.70%, 2/8/96................................ 8,291
10,000 Bankers Trust, 5.45%, 4/1/96............................. 9,909
10,000 Bankers Trust, 5.39%, 4/15/96............................ 9,889
10,000 Societe Generale, 5.60%, 3/18/96......................... 9,928
--------
38,017
--------
Electrical & Electronic (2.6%):
7,250 Sharp Electronics Corp., 5.62%, 2/16/96.................. 7,233
8,068 Sharp Electronics Corp., 5.46%, 4/12/96.................. 7,981
--------
15,214
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services (20.0%):
10,000 American Express Credit Corp., 5.55%, 4/23/96............ $ 9,874
10,000 American Express Credit Corp., 5.59%, 5/6/96............. 9,853
8,000 American Express Credit Corp., 5.10%, 6/27/96............ 7,833
10,000 Ford Motor Credit Corp., 5.07%, 6/7/96................... 9,821
5,000 General Electric Capital Corp., 5.42%, 6/12/96........... 4,901
5,000 General Electric Capital Corp., 5.00%, 7/26/96........... 4,878
10,000 General Motors Acceptance Corp., 5.75%, 2/12/96.......... 9,982
10,000 General Motors Acceptance Corp., 5.73%, 2/14/96.......... 9,979
5,000 General Motors Acceptance Corp., 5.67%, 2/27/96.......... 4,979
5,000 General Motors Acceptance Corp., 5.67%, 3/13/96.......... 4,968
10,000 Mitsubishi Motor Credit, 5.45%, 3/20/96.................. 9,927
10,000 Sears Roebuck Acceptance Corp., 5.71%, 2/13/96........... 9,981
10,000 Sears Roebuck Acceptance Corp., 5.45% 3/6/96............. 9,949
9,000 Sears Roebuck Acceptance Corp., 5.16%, 5/28/96........... 8,849
--------
115,774
--------
Food Products (2.6%):
5,000 McCormick & Co., Inc., 5.80%, 2/9/96..................... 4,994
10,000 McCormick & Co., Inc., 5.55%, 7/2/96..................... 9,766
--------
14,760
--------
Manufacturing (3.8%):
5,000 Hitachi Credit America, 5.64%, 3/14/96................... 4,967
3,000 Hitachi Credit America, 5.36%, 6/17/96................... 2,939
5,000 Minolta Corporation, 5.50%, 3/7/96....................... 4,973
9,000 TDK USA Corp., 5.54%, 4/22/96............................ 8,888
--------
21,767
--------
</TABLE>
Continued
-29-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Pharmaceuticals (1.7%):
10,000 Sandoz Corp., 5.58%, 3/22/96.............................. $ 9,923
--------
Retail (6.0%):
10,000 Southland Corp., 5.45%, 3/15/96........................... 9,935
5,000 Southland Corp., 5.52%, 5/17/96........................... 4,919
10,000 Southland Corp., 5.15%, 7/18/96........................... 9,760
10,000 Spiegel Corp., 5.46%, 3/4/96.............................. 9,951
--------
34,565
--------
Security Brokers & Dealers (3.5%):
10,000 C.S. First Boston, 5.47%, 2/28/96......................... 9,959
10,000 Merrill Lynch, 5.47%, 2/23/96............................. 9,967
--------
19,926
--------
Services--Equipment Rental & Leasing (1.7%):
5,000 International Lease Finance Corp.,
5.77%, 2/1/96............................................ 5,000
5,000 International Lease Finance Corp.,
5.32%, 3/15/96........................................... 4,968
--------
9,968
--------
Canada (2.5%):
5,000 Royal Bank of Canada, 5.48%, 5/8/96....................... 4,926
10,000 Royal Bank of Canada, 5.10%, 7/5/96....................... 9,780
--------
14,706
--------
Netherlands (1.7%):
10,000 International Netherland Holdings Group, 5.61%, 3/5/96.... 9,949
--------
Sweden (3.4%):
10,000 Kingdom of Sweden, 5.60%, 2/21/96......................... 9,969
10,000 Kingdom of Sweden, 5.69%, 3/12/96......................... 9,937
--------
19,906
--------
Total Commercial Paper 374,352
--------
CORPORATE BONDS (11.2%):
Automotive (1.9%):
10,000 Ford Motor Co., 9.00%, 6/1/96............................. 11,133
--------
Banking (2.4%):
10,000 Southtrust Bank, 5.47%, 7/16/96........................... 10,000
4,000 Wachovia Bank, 6.20%, 8/5/96.............................. 4,016
--------
14,016
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services (5.1%):
5,000 American General Finance Corp., 4.98%, 3/26/96............ $ 4,992
10,000 General Electric Capital Corp., 5.43%**, 8/1/96........... 9,992
4,300 General Electric Capital Corp., 7.85%, 2/1/97............. 4,403
5,000 Norwest Financial Services, 4.97%, 10/29/96............... 4,975
5,100 Toyota Motor Credit Co., 6.88%, 10/15/96.................. 5,142
--------
29,504
--------
Security Brokers & Dealers (1.8%):
10,000 Merrill Lynch & Co., Inc., 5.53%**, 1/15/97............... 10,000
--------
Total Corporate Bonds 64,653
--------
GUARANTEED INSURANCE CONTRACTS (4.4%):
12,500 Commonwealth Life Insurance Co., 6.06%*, 8/1/19........... 12,500
12,500 Peoples Security Life, 6.01%*, 8/1/19..................... 12,500
--------
Total Guaranteed Insurance Contracts 25,000
--------
MEDIUM TERM NOTES (3.5%):
Financial Services (3.5%):
10,000 Beta Finance Inc., 5.95%**, 6/17/96....................... 10,000
10,000 IBM Credit Corp., 5.70%, 7/19/96.......................... 9,998
--------
Total Medium Term Notes 19,998
--------
TAXABLE MUNICIPAL BONDS (1.7%):
New York (1.7%):
10,000 New York City, 5.95%**, 2/21/96........................... 10,000
--------
Total Taxable Municipal Bonds 10,000
--------
</TABLE>
Continued
-30-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------- ---------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES (1.7%):
10,000 Federal Farm Credit Bank, 5.92%**, 6/17/96. $ 9,997
--------
Total U.S. Government Agencies 9,997
--------
Total Investments 538,953
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
REPURCHASE AGREEMENTS (9.4%):
54,443 First Boston Corp., 6.00%, 2/1/96
(Collateralized by 39,882
U.S. Treasury Bonds,
10.38%, 11/15/12,
market value $55,775).................................. $ 54,443
--------
Total Repurchase Agreements 54,443
--------
Total (Cost-$593,396)(a) $593,396
========
</TABLE>
- --------
Percentages are based on net assets of $577,457.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Guaranteed Insurance Contracts are securities with yields that vary with a
designated market index. These securities are payable three months after
presentation for payment. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at January 31, 1996.
** 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 January 31, 1996.
See notes to financial statements.
-31-
<PAGE>
AMSOUTH MUTUAL FUNDS
U.S. TREASURY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY BILLS (20.1%):
10,000 5.57%, 3/7/96............................................ $ 9,950
10,000 5.06%, 3/14/96........................................... 9,941
25,000 5.10%, 4/4/96............................................ 24,779
10,000 5.11%, 4/11/96........................................... 9,903
25,000 5.31%, 5/2/96............................................ 24,676
5,000 5.16%, 5/23/96........................................... 4,923
5,000 5.05%, 5/30/96........................................... 4,919
--------
Total U.S. Treasury Bills 89,091
--------
U.S. TREASURY NOTES (45.7%):
25,000 7.88%, 2/15/96........................................... 25,019
35,000 4.63%, 2/29/96........................................... 34,982
10,000 7.75%, 3/31/96........................................... 10,038
25,000 9.38%, 4/15/96........................................... 25,188
5,000 5.50%, 4/30/96........................................... 4,991
5,000 7.63%, 4/30/96........................................... 5,018
5,000 5.50%, 5/5/96............................................ 4,923
5,000 4.25%, 5/15/96........................................... 4,981
5,000 7.38%, 5/15/96........................................... 5,022
5,000 5.88%, 5/31/96........................................... 5,002
10,000 7.63%, 5/31/96........................................... 10,068
10,000 5.42%, 6/6/96............................................ 9,824
10,000 6.00%, 6/30/96........................................... 10,034
10,000 7.88%, 7/15/96........................................... 10,094
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED :
5,000 5.48%, 7/25/96.......................................... $ 4,873
5,000 6.13%, 7/31/96.......................................... 5,012
10,000 6.25%, 8/31/96.......................................... 10,026
5,000 6.50%, 9/30/96.......................................... 5,025
6,000 8.00%, 10/15/96......................................... 6,111
6,000 4.38%, 11/15/96......................................... 5,967
--------
Total U.S. Treasury Notes 202,198
--------
Total Investments 291,289
--------
REPURCHASE AGREEMENTS (33.8%):
65,000 First Boston Corp., 5.90%, 2/1/96 (Collateralized by
47,496 U.S. Treasury Bonds, 10.38%, 11/15/12, market
value $66,423)......................................... 65,000
64,298 Merrill Lynch & Co., 5.90%, 2/1/96 (Collateralized by
49,018 U.S. Treasury Bonds, 8.50% - 8.75%, 2/15/20 -
5/15/20, market value $65,585)......................... 64,298
20,000 Smith Barney, 5.46%, 2/1/96 (Collateralized by various
U.S. Government Agency Securities)..................... 20,000
--------
Total Repurchase Agreements 149,298
--------
Total (Cost-$440,587) $440,587
========
</TABLE>
- --------
Percentages are based on net assets of $442,466.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
-32-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS (99.1%):
Alabama (9.0%):
2,000 City of Birmingham, Government Obligation, 3.20%*,
5/1/19**.............................................. $ 2,000
2,000 Mobile, Industrial Development Board, Pollution Control
Revenue, Series B, 3.25%*, 7/1/18**................... 2,000
325 Mobile, Water & Sewer Revenue Bonds, 4.00%, 1/1/97..... 326
1,665 Stevenson, Industrial Development Board, Environmental
Improvement Revenue, 3.90%, 12/1/15**................. 1,665
----------
5,991
----------
Arizona (2.3%):
500 Scottsdale, Certificates, 7.70%, 11/1/00**............. 524
1,000 Scottsdale, Improvement Bonds, 6.75%, 7/1/02**......... 1,031
----------
1,555
----------
Colorado (1.8%):
200 Adams County, Individual Development Revenue, 3.15%*,
12/1/15**............................................. 200
1,000 El Paso County, School District No. 11, Tax
Anticipation Notes, 3.95%, 6/28/96.................... 1,000
----------
1,200
----------
Connecticut (4.6%):
305 Connecticut State Development, 3.75%, 12/15/96......... 305
2,000 Connecticut State Special Assessment Unemployment
Compensation, Series C, 3.90%, 11/15/01**............. 2,000
745 Connecticut State Tax Obliation, 3.60%, 10/1/96........ 744
----------
3,049
----------
Delaware (3.7%):
1,300 Wilmington, Franciscan Health Systems, Series 86A,
3.90%, 7/1/11**....................................... 1,300
1,200 Wilmington, Franciscan Health System, Series 1986B,
3.90%, 7/1/11**....................................... 1,200
----------
2,500
----------
District of Columbia (0.4%):
250 District of Columbia, 7.88%, 6/1/06**.................. 258
----------
Florida (6.4%):
1,950 Dade County, Special Obligation, 3.60%*, 10/1/10**..... 1,950
300 Housing Finance Authority, Multi-Family Lake North,
Series 1984D, 3.60%*, 6/1/07**........................ 300
2,000 West Orange Memorial Hospital Tax District, Series A-1,
3.10%, 2/1/22**....................................... 2,000
----------
4,250
----------
Georgia (3.9%):
1,100 Cobb County, Housing Authority, Multi-Family Housing
Revenue, 3.15%*, 6/1/23**............................. 1,100
500 Savannah, Downtown Development Authority, 3.15%*,
9/1/97**.............................................. 500
350 Savannah, Downtown Development Authority, 3.15%*,
9/1/98**.............................................. 350
520 State Series B, 6.75%, 3/1/96.......................... 521
100 Turner County, Development Authority, Industrial
Development Revenue, Coats and Clark, Inc., 3.85%*,
10/1/98**............................................. 100
----------
2,571
----------
Hawaii (0.8%):
500 State Government Obligation, 3.40%, 11/1/96............ 498
----------
</TABLE>
Continued
-33-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Illinois (7.4%):
975 Health Facility, 3.20%*, 5/15/19**..................... $ 975
1,350 Health Facilities Authority, Alexian Hospital, 3.10%,
1/1/16**.............................................. 1,350
1,000 School District, 6.30%, 1/1/97......................... 1,025
580 State Government Obligation, 6.10%, 4/1/96............. 582
1,000 Sauget, Regional Wastewater Treatment, 4.00%, 5/1/96... 1,000
----------
4,932
----------
Iowa (1.1%):
100 Chariton, Industrial Development, Vee Food Stores,
3.70%*, 11/1/04**..................................... 100
585 Ottumwa, Hospital Facility, 9.63%, 11/1/10**........... 627
----------
727
----------
Kansas (0.3%):
200 Wichita, Government Obligation, 6.80%, 9/1/96.......... 204
----------
Louisiana (1.9%):
900 Louisiana Recovery District, 3.75%*, 7/1/97............ 900
State Recovery District Sales Tax Revenue, Series 1988,
400 3.75%*, 7/1/98........................................ 400
----------
1,300
----------
Massachusetts (0.4%):
250 State Government Olbligation, 7.13%, 10/1/05**......... 260
----------
Michigan (1.5%):
1,000 State Strategic Funding, 3.45%, 2/1/96................. 1,000
----------
Minnesota (1.4%):
200 Austin, Commercial Development Revenue, Vee Food
Stores, 3.70%*, 12/1/04**............................. 200
705 Minneapolis & Saint Paul Housing Authority, 3.85%,
8/15/96............................................... 706
----------
906
----------
Missouri (8.3%):
2,005 State Environmental Improvement & Energy Resources
Authority, Pollution Control Revenue,
3.20%*, 6/1/15**...................................... 2,005
685 State Industrial Development Board Series 2, 3.40%*,
2/1/00**.............................................. 685
535 State Industrial Development Board, Lot 2, Series 2,
3.40%*, 2/1/04**...................................... 535
2,000 St. Charles County, Industrial Development Authority,
3.35%*, 12/1/07**..................................... 2,000
340 University of Missouri, 9.50%, 11/9/09**............... 364
----------
5,589
----------
Nevada (0.5%):
300 State Government Obligation, 5.00%, 9/1/96............. 303
----------
New Jersey (0.3%):
205 Essex County, Law Improvement, 5.88%, 10/1/96.......... 208
----------
Nebraska (3.6%):
2,400 Educational Facility Authority, 3.50%*, 12/1/00**...... 2,400
----------
</TABLE>
Continued
-34-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1995
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------ ----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New York (4.0%):
2,000 New York City Anticipation Notes, 4.50%, 4/11/96...... $ 2,003
650 New York City Water Finance Authority, 7.00%,
6/15/14**............................................ 671
----------
2,674
----------
Oregon (2.3%):
1,550 State Series 73, 3.45%*, 12/1/17**.................... 1,550
----------
Pennsylvania (3.0%):
1,000 Delaware County, Industrial Development Authority,
Pollution Control Revenue, Series B 1988,
(Philadelphia Electric Co.), 3.50%*, 12/1/12**....... 1,000
1,000 State Certificates of Participation, 4.25%, 6/1/96.... 1,001
----------
2,001
----------
South Carolina (2.4%):
1,090 Myrtle Beach, Carolina Water & Sewer Revenue Bonds,
3.80%, 3/1/96........................................ 1,090
500 State Capital Improvement, 6.70%, 8/1/98**............ 517
----------
1,607
----------
Tennessee (7.3%):
500 Industrial Development Board of Sullivan County, Mead
Corp. Project, 3.75%*, 10/1/16....................... 500
1,800 Metropolitan Nashville Airport Authority, 3.75%*,
10/1/12.............................................. 1,800
400 Nashville & Davidson County, 6.50%, 6/15/06**......... 412
600 State School Board Authority Adjusted Higher Education
Bonds, Anticipation Notes Series B, 3.20%*, 3/1/98**. 600
600 State School Board Authority Higher Educational
Facilities, Bond Anticipation Notes, 3.20%*,
3/1/98**............................................. 600
1,000 State School Bond Authority, 3.20%*, 3/1/98**......... 1,000
----------
4,912
----------
Texas (14.5%):
1,000 Dallas, Waterworks And Sewer System, 9.00%, 4/1/96.... 1,009
1,500 Harris County, School Health Care Systems, 3.15%*,
1/1/15............................................... 1,500
1,500 Lone Star, Airport Improvement Authority, 3.65%*,
12/1/14.............................................. 1,500
700 North Central, Series C, 3.55%*, 12/1/15.............. 700
500 San Antonio, Water Revenue Bonds, 7.80%, 5/1/05**..... 512
2,000 Texas A&M Board of Regents, 3.30%, 7/17/17**.......... 2,000
1,000 Public Finance Authority, 3.30%, 3/5/96............... 1,000
1,500 State Tax & Revenue Anticipation Notes, Series A,
4.75%, 8/30/96....................................... 1,508
----------
9,729
----------
Utah (0.9%):
300 Intermountain Power Agency, 7.75%, 7/1/17**........... 311
300 State Municipal Power Agency, 6.88%, 7/1/17**......... 310
----------
621
----------
</TABLE>
Continued
-35-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Virginia (1.9%):
200 Chesterfield County, 7.00%, 7/15/99**.................. $ 204
1,100 Fairfax County Industrial Development Authority,
Hospital Revenue Bonds LOC Inova Services, 3.15%,
8/15/96............................................... 1,100
----------
1,304
----------
Washington (2.2%):
1,500 Seattle, Municipal Light & Power, 3.45%, 6/3/96........ 1,500
----------
West Virginia (1.0%):
700 Putnam County, Industrial Revenue, 3.60%*, 11/1/12**... 700
----------
Total Municipal Bonds.......................................... 66,299
----------
INVESTMENT COMPANIES (0.6%):
327 Federated Tax-Free Trust Mutual Fund................... 327
94 Fidelity Institutional Tax-Exempt Cash Portfolio....... 94
----------
Total Investment Companies..................................... 421
----------
Total (Cost-$66,720)(a)........................................ $ 66,720
==========
</TABLE>
- --------
Percentages are based on net assets of $66,941.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit of other credit and/or liquidity agreements. The interest rate,
which will change periodically, is based upon bank prime rates or an index
of market rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at January 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.
GO--General Obligation.
LOC--Letter of Credit.
See notes to financial statements.
-36-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (38.7%):
Aircraft (1.6%):
1,750 Boeing Co., 8.38%, 3/1/96................................. $ 1,754
--------
Appliances (0.5%):
500 Whirlpool Corp., 9.50%, 6/15/00........................... 571
--------
Automotive (2.5%):
1,570 Ford Capital Corp., 9.13%, 5/1/98......................... 1,692
800 General Motors Corp., 9.63%, 12/1/00...................... 925
--------
2,617
--------
Banking (4.9%):
1,070 Bank of America, 9.50%, 4/1/01............................ 1,241
1,000 Bankers Trust Co., 9.50%, 6/14/00......................... 1,134
1,600 NationsBank Corp., 5.38%, 4/15/00......................... 1,576
1,250 SunTrust Banks, Inc., 8.38%, 3/1/96....................... 1,253
--------
5,204
--------
Brokerage Services (3.8%):
1,000 Bear Stearns & Co., 6.50%, 6/15/00........................ 1,021
1,000 Merrill Lynch & Co., 9.00%, 5/1/98........................ 1,072
750 Merrill Lynch & Co., 8.25%, 11/15/99...................... 814
1,000 Morgan Stanley Group, Inc., 9.25%, 3/1/98................. 1,071
--------
3,978
--------
Entertainment (1.0%):
1,000 Columbia Picture Entertainment, Inc., 9.88%, 2/1/98....... 1,071
--------
Farm Equipment Manufacturer (0.4%):
470 Deere & Co., 9.13%, 7/1/96................................ 477
--------
Financial Services (6.5%):
500 Associates Corp., 8.63%, 6/15/97.......................... 522
1,000 Associates Corp., 6.25%, 3/15/99.......................... 1,020
2,000 Avco Financial, 5.50%, 4/1/00............................. 1,977
500 Beneficial Corp., 9.90%, 11/17/97......................... 538
1,300 British Telcom Finance, Inc., 9.38%, 2/15/99.............. 1,441
300 CIT Group Holdings, Inc., 8.75%, 7/1/97................... 314
1,000 Margaretten Financial, 6.75%, 6/15/00..................... 1,030
--------
6,842
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Industrial Goods & Services (1.0%):
1,050 Browning Ferris International, 6.10%, 1/15/03............. $ 1,059
--------
Insurance (4.7%):
1,000 Aon Corp., 6.88%, 10/1/99................................. 1,038
1,600 Capital Holding Corp., 9.20%, 4/17/01..................... 1,804
640 Chubb Corp., 8.75%, 11/15/99.............................. 702
1,300 Torchmark Corp., 9.63%, 5/1/98............................ 1,404
--------
4,948
--------
Oil & Gas Exploration (1.6%):
1,450 BP America, 9.38%, 11/1/00................................ 1,669
--------
Pharmaceuticals (1.0%):
1,000 McKesson Corp., 8.63%, 2/1/98............................. 1,060
--------
Railroads (2.4%):
1,500 Union Pacific Corp., 6.25%, 3/15/99....................... 1,523
1,000 Union Pacific Corp., 7.00%, 6/15/00....................... 1,045
--------
2,568
--------
Utilities--Electric (4.9%):
470 National Rural Utilities, 9.50%, 5/15/97.................. 494
1,500 Northern States Power, 7.88%, 10/1/01..................... 1,641
1,000 Oklahoma Gas & Electric, 6.25%, 10/15/00.................. 1,019
1,000 Southern California Edison, 5.60%, 12/15/98............... 1,005
1,000 Virginia Electric & Power, 7.25%, 3/1/97.................. 1,020
--------
5,179
--------
Utilities--Telephone (1.9%):
2,000 General Telephone & Electric-California, 5.63%, 2/1/01.... 1,988
--------
Total Corporate Bonds............................................... 40,985
--------
U.S. GOVERNMENT AGENCY (1.9%):
2,000 Federal Home Loan Mortgage Corp., 5.40%, 11/1/00.......... 1,979
--------
Total U.S. Government Agency........................................ 1,979
--------
U.S. TREASURY BONDS (6.9%):
4,500 7.50%, 11/15/16........................................... 5,239
2,000 6.25%, 8/15/23............................................ 2,036
--------
Total U.S. Treasury Bonds........................................... 7,275
--------
</TABLE>
Continued
-37-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1995
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY NOTES (43.4%):
1,500 7.88%, 4/15/98............................................ $ 1,589
3,000 6.38%, 1/15/99............................................ 3,108
11,000 7.50%, 11/15/01........................................... 12,173
17,000 6.38%, 8/15/02............................................ 17,892
11,000 5.75%, 8/15/03............................................ 11,167
--------
Total U.S. Treasury Notes 45,929
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY STRIP (5.4%):
9,000 2/15/04................................................... $ 5,764
--------
Total U.S. Treasury Strip 5,764
--------
INVESTMENT COMPANIES (1.7%):
1,816 AmSouth Prime Obligations Fund............................ 1,816
1 AmSouth U.S. Treasury Fund................................ 1
--------
Total Investment Companies 1,817
--------
Total (Cost-$98,369)(a) $103,749
========
</TABLE>
- --------
Percentages indicated are based on net assets of $105,800.
(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 $5,661
Unrealized depreciation (281)
------
Net unrealized appreciation $5,380
======
</TABLE>
See notes to financial statements.
-38-
<PAGE>
AMSOUTH MUTUAL FUNDS
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
CORPORATE BONDS (66.8%):
Banking (19.4%):
500 Chemical Banking, 6.63%, 1/15/98........................... $ 511
1,000 Comerica, 5.95%, 9/15/97................................... 1,011
2,000 First Union Corp., 6.75%, 1/15/98.......................... 2,055
1,000 Huntington National Bank, 4.48%, 10/14/96.................. 996
3,000 Mellon Financial, 6.50%, 12/1/97........................... 3,064
2,540 NationsBank Corp., 6.63%, 1/15/98.......................... 2,600
2,000 Security Pacific Corp., 8.49%, 12/27/96.................... 2,055
-------
12,292
-------
Beverages (2.4%):
1,500 PepsiCo., Inc., 5.46%, 7/1/98.............................. 1,504
-------
Chemicals (3.2%):
2,000 Dow Capital, 5.75%, 9/15/97................................ 2,007
-------
Electrical & Electronic (3.2%):
2,000 Sony Capital Corp., 6.98%, 7/2/97.......................... 2,047
-------
Financial Services (18.2%):
1,000 American General Finance, 5.80%, 4/1/97.................... 1,006
2,700 Associates Corp. of North America, 7.50%, 5/15/99.......... 2,855
2,000 Beneficial Corp., 7.32%, 11/17/99.......................... 2,105
500 Commercial Credit Co., 6.75%, 1/15/97...................... 506
1,500 Ford Motor Credit Corp., 6.00%, 3/24/98.................... 1,517
1,500 Ford Motor Credit Corp., 5.63%, 12/15/98................... 1,506
2,000 Norwest Financial, 5.20%, 4/29/97.......................... 2,000
-------
11,495
-------
Food Products (4.1%):
2,500 General Mills, 7.13%, 10/3/97.............................. 2,572
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Insurance (3.4%):
2,000 American General Corp., 7.70%, 10/15/99.................... $ 2,132
-------
Leasing (3.4%):
2,000 USL Capital Corp., 8.13%, 2/15/00.......................... 2,162
-------
Security Brokers & Dealers (3.2%):
2,000 Dean Witter Discover & Co., 6.00%, 3/1/98.................. 2,025
-------
Utilities--Electric (6.3%):
2,000 Florida Power & Light, 5.70%, 3/5/98....................... 2,018
1,950 Georgia Power, 6.13%, 9/1/99............................... 1,979
-------
3,997
-------
Total Corporate Bonds 42,233
-------
U.S. GOVERNMENT AGENCIES (1.6%):
1,000 Federal Home Loan Mortgage Corp., 4.75%, 11/16/98.......... 1,001
-------
Total U.S. Government Agencies 1,001
-------
U.S. TREASURY NOTES (25.8%):
2,500 6.25%, 5/3/00.............................................. 2,598
13,500 5.63%, 11/30/00............................................ 13,704
-------
Total U.S. Treasury Notes 16,302
-------
INVESTMENT COMPANIES (4.5%):
1,652 AmSouth Prime Obligations Fund............................. 1,652
1,226 AmSouth U.S. Treasury Fund................................. 1,226
-------
Total Investment Companies 2,878
-------
Total (Cost-$61,624)(a) $62,414
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $63,250.
(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 $1,161
Unrealized depreciation (371)
------
Net unrealized appreciation $ 790
======
</TABLE>
See notes to financial statements.
-39-
<PAGE>
AMSOUTH MUTUAL FUNDS
GOVERNMENT INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (47.4%):
Government National Mortgage Assoc.:
74 9.50%, 5/15/18.............................................. $ 79
114 9.00%, 6/15/18.............................................. 119
132 9.00%, 8/15/18.............................................. 139
157 9.50%, 2/15/19.............................................. 168
229 9.50%, 6/15/19.............................................. 245
21 9.50%, 7/15/19.............................................. 22
252 9.00%, 10/15/19............................................. 265
141 9.00%, 10/15/19............................................. 148
167 8.50%, 12/15/19............................................. 176
92 8.50%, 12/15/19............................................. 96
229 9.00%, 1/15/20.............................................. 241
87 9.00%, 3/15/20.............................................. 92
139 9.00%, 5/15/20.............................................. 146
74 9.50%, 5/15/20.............................................. 80
431 9.50%, 9/15/20.............................................. 461
45 9.50%, 9/15/20.............................................. 48
161 8.50%, 11/15/20............................................. 168
76 9.00%, 11/15/20............................................. 79
316 9.50%, 11/15/20............................................. 338
243 9.50%, 11/15/20............................................. 259
16 9.50%, 12/15/20............................................. 17
87 9.50%, 12/15/20............................................. 93
25 9.50%, 1/15/21.............................................. 27
497 9.00%, 2/15/21.............................................. 523
67 8.50%, 8/15/21.............................................. 70
198 8.50%, 8/15/21.............................................. 207
304 9.50%, 8/15/21.............................................. 324
151 9.00%, 9/15/21.............................................. 159
77 9.00%, 9/15/21.............................................. 81
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES. CONTINUED:
Government National Mortgage Assoc., continued:
139 8.50%, 10/15/21............................................ $ 145
176 9.00%, 10/15/21............................................ 186
167 9.00%, 1/15/22............................................. 176
30 9.00%, 4/15/22............................................. 32
133 9.00%, 6/15/22............................................. 140
39 9.00%, 9/15/22............................................. 41
19 8.50%, 2/15/23............................................. 20
232 7.50%, 6/15/24............................................. 239
1,006 7.50%, 7/15/25............................................. 1,036
508 7.50%, 8/15/25............................................. 523
728 7.50%, 9/15/25............................................. 749
34 7.50%, 9/15/25............................................. 35
490 7.50%, 12/1/25............................................. 504
-------
Total U.S. Government Agencies 8,696
-------
U.S. TREASURY NOTES (49.7%):
800 8.13%, 2/15/98............................................. 848
1,500 8.00%, 8/15/99............................................. 1,637
3,500 7.13%, 2/29/00............................................. 3,743
1,000 7.50%, 2/15/05............................................. 1,133
1,500 7.50%, 11/15/16............................................ 1,746
-------
Total U.S. Treasury Notes 9,107
-------
INVESTMENT COMPANIES (1.3%):
240 AmSouth U.S. Treasury Fund................................. 240
-------
Total Investment Companies 240
-------
Total (Cost-$17,708) (a) $18,043
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $18,333.
(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 $ 570
Unrealized depreciation (235)
-----
Net unrealized appreciation $ 335
=====
</TABLE>
See notes to financial statements.
-40-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS (97.5%):
545 Altamonte Springs, Health Facility, 5.60%, 10/1/10......... $ 577
655 Brevard County, Solid Waste Disposal System, 5.63%, 4/1/08. 672
900 Cape Coral, Special Assessment, 6.30%, 7/1/96.............. 911
1,000 Cape Coral, Special Obligation, 5.50%, 7/1/99.............. 1,051
1,000 Clearwater, Water & Sewer Revenue, 4.75%, 12/1/00.......... 1,033
1,000 Dade County, Aviation Authority Series 1994 B, 6.25%, 1,130
10/1/04...................................................
1,000 Davie, Water & Sewer Revenue, 5.20%, 10/1/99............... 1,042
1,000 Dunes, Community Development District, 5.00%, 10/1/98...... 1,012
1,000 Dunes, Community Development District, 5.50%, 10/1/07...... 1,021
810 Housing Finance Agency, 5.65%, 1/1/09...................... 827
1,000 Housing Finance Agency, 6.63%, 2/1/08...................... 1,002
1,000 Broward County Expressway Authority-A, 6.50%, Due 7/1/04... 1,031
500 Board of Education Series H, 6.90%, 5/1/98................. 535
1,000 State Divisional Board Finance Department, 6.70%, 7/1/96... 1,014
1,000 Department of Natural Resources, 6.30%, 7/1/04............. 1,099
1,000 Division of Bond Finance, Natural Reserve Preservation 1,049
2000-A, 5.40%, 7/1/07.....................................
1,000 State Sunshine Skyway, 6.60%, 7/1/08....................... 1,091
1,000 State Turnpike Authority, 7.25%, 7/1/96.................... 1,016
470 Hernando County, Water & Sewer Revenue, 5.10%, 6/1/98...... 485
750 Hillsborough County, Environmental Land, 6.00%, 7/1/03..... 831
1,000 Hillsborough County, Board, 4.60%, 7/1/97.................. 1,015
1,000 Hillsborough County, Solid Waste, 5.30%, 10/1/03........... 1,065
1,000 Homestead, Special Insurance Assessment, 4.90%, 9/1/00..... 1,036
1,000 Jacksonville, District Water & Sewer, 5.20%, 10/1/02....... 1,058
500 Jacksonville, Electric Authority, 6.95%, 10/1/04........... 548
1,000 Lake County, Sales Revenue, 5.13%, 12/1/98................. 1,039
1,000 Lee County, Capital Improvements Revenue, Series B, 4.75%, 1,032
10/1/00...................................................
1,000 Lee County, Local Option Gas Tax Revenue, 4.50%, 10/1/01... 1,020
1,000 Martin County, 3.80%, 8/1/98............................... 1,000
1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08.......... 1,051
1,000 Miramar, Wastewater Improvement Bonds, Series 1994, 6.25%, 1,127
10/1/05...................................................
560 Miramar, Water Improvement Assessment, 4.35%, 10/1/00...... 568
620 Miramar, Water Improvement, 4.50%, 10/1/01................. 633
1,000 Orange County, Sales Tax, Series A, 4.38%, 1/1/01.......... 1,013
1,000 Orlando Utilities, Community Water & Electric, 5.00%, 1,038
10/1/99...................................................
1,000 Orlando & Orange County Expressway Authority, 4.80%, 1,034
7/1/01....................................................
1,000 Ormond Beach, Water & Sewer, 5.60%, 9/1/99................. 1,058
1,000 Pasco County, Water & Sewer, 5.50%, 10/1/03................ 1,075
1,000 Pembroke Pines, Public Improvement, 4.63%, 10/1/00......... 1,026
1,000 Polk County, Capital Improvement, 4.30%, 12/1/02........... 1,006
1,000 Port of Palm Beach, Revenue Bonds, 6.25%, 9/1/08........... 1,105
910 Punta Gorda, Utilities, 5.00%, 1/1/98...................... 932
</TABLE>
Continued
-41-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands
(Unaudited)
<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......... 476
1,000 St. Johns River, Water, 5.10%, 7/1/09...................... 1,013
600 St. Lucie County, Sales Tax, 4.20%, 10/1/01................ 603
800 St. Lucie County, Sales Tax, 4.30%, 10/1/02................ 805
625 St. Lucie County, Special Assessment, 5.10%, 11/1/04....... 639
1,000 Seminole County, Local Option Gas Tax, 5.00%, 10/1/02...... 1,047
1,000 Seminole County, School District, 5.20%, 8/1/97............ 1,024
1,000 Tallahassee, Utility System Revenue, 5.80%, 10/1/08........ 1,083
550 Tampa, Solid Waste Revenue, 4.90%, 10/1/02................. 571
1,000 Volusia County, Sales Tax, 5.00%, 10/1/96.................. 1,010
-------
Total Florida Municipal Bonds 48,179
-------
INVESTMENT COMPANIES (1.2%):
274 AmSouth Tax Exempt Money Market Fund....................... 274
337 Dreyfus Florida Money Market Fund.......................... 337
-------
Total Investment Companies 611
-------
Total (Cost--$46,573)(a) $48,790
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $49,428.
(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............................................. $ 2,227
Unrealized depreciation............................................. (10)
-------
Net unrealized appreciation......................................... $ 2,217
=======
</TABLE>
See notes to financial statements.
-42-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands, except Shares
(Unaudited)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (90.4%):
Aerospace (1.2%):
56,000 Boeing Co................................................. $ 4,347
--------
Aluminum (1.4%):
96,000 Alcan Aluminum, Limited................................... 3,060
40,000 Reynolds Metals Co........................................ 2,140
--------
5,200
--------
Apparel (0.9%):
320,000 Phillips Van Heusen....................................... 3,360
--------
Automobiles (1.7%):
205,000 Ford Motor Co............................................. 6,073
--------
Automotive Parts (1.1%):
195,000 Arvin Industries, Inc..................................... 3,827
--------
Banks--Money Centers (3.4%):
80,000 J.P. Morgan & Co., Inc.................................... 6,500
80,000 NationsBank Corp.......................................... 5,590
--------
12,090
--------
Chemicals--Specialty (1.2%):
180,000 Engelhard Corp............................................ 4,162
--------
Commercial Services (0.2%):
40,000 Rollins, Inc.............................................. 870
--------
Computers & Peripherals (2.3%):
75,000 International Business Machines Corp...................... 8,156
--------
Conglomerates (1.3%):
53,000 TRW, Inc.................................................. 4,478
--------
Construction (0.5%):
110,000 Ryland Group.............................................. 1,622
--------
Electronic & Electrical (2.6%):
170,000 AMP, Inc.................................................. 6,630
61,000 Avnet, Inc................................................ 2,615
--------
9,245
--------
Financial Services (3.6%):
112,000 American Express Co....................................... 5,152
116,000 Dun & Bradstreet Corp..................................... 7,540
--------
12,692
--------
Food Processing & Packaging (4.2%):
277,852 Grand Metropolitan-ADR.................................... 7,432
220,000 Sara Lee Corp............................................. 7,425
--------
14,857
--------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Forest Products--Lumber, Paper (1.6%):
125,000 Weyerhauser Co............................................ $ 5,766
--------
Health Care (1.8%):
68,000 Johnson & Johnson, Inc.................................... 6,528
--------
Health Maintenance Organizations (0.8%):
60,000 U.S. Healthcare, Inc...................................... 2,910
--------
Industrial Services (0.9%):
111,000 Measurex Corp............................................. 3,288
--------
Insurance--Broker (3.1%):
220,000 Alexander & Alexander Services, Inc....................... 4,263
76,000 Marsh & McLennan Cos., Inc................................ 6,916
--------
11,178
--------
Insurance Multi-Line (2.0%):
98,000 Aetna Life & Casualty Co.................................. 7,301
--------
Insurance--Property, Casualty (1.6%):
100,000 St. Paul Cos., Inc........................................ 5,700
--------
Manufacturing (1.0%):
48,800 Kennametal, Inc........................................... 1,403
60,000 Trinity Industries........................................ 2,100
--------
3,503
--------
Medical Supplies (2.4%):
185,000 Baxter International, Inc................................. 8,418
--------
Newspapers (4.4%):
178,000 Dow Jones & Co., Inc...................................... 6,964
137,000 Gannett Co., Inc.......................................... 8,700
--------
15,664
--------
Oil & Gas Production & Refining (4.8%):
145,000 Burlington Resources...................................... 5,438
225,000 Sun Co., Inc.............................................. 6,131
300,000 USX--Marathon Group....................................... 5,625
--------
17,194
--------
Oil--Integrated Companies (2.3%):
101,000 Texaco, Inc............................................... 8,168
--------
Oilfield Equipment & Services (4.3%):
165,000 Baker Hughes, Inc......................................... 4,269
130,000 Dresser Industries, Inc................................... 3,380
50,000 McDermott International, Inc.............................. 969
95,000 Schlumberger, Limited..................................... 6,662
--------
15,280
--------
</TABLE>
Continued
-43-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands, except Shares
(Unaudited)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ------------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals (4.3%):
84,000 American Home Products Corp.................................. $ 8,568
76,000 Bristol-Myers Squibb Co...................................... 6,726
--------
15,294
--------
Photography (1.8%):
87,000 Eastman Kodak Co............................................. 6,384
--------
Pollution Control Services & Equipment (1.9%):
230,000 WMX Technologies, Inc........................................ 6,871
--------
Railroads (2.9%):
47,000 Burlington Northern, Inc..................................... 3,848
142,000 CSX Corp..................................................... 6,585
--------
10,433
--------
Retail (4.5%):
50,000 Dayton Hudson Corp........................................... 3,738
250,000 Dillard Department Stores, Inc............................... 7,250
110,000 May Department Stores........................................ 4,895
--------
15,883
--------
Retail--Specialty Stores (4.4%):
165,000 The Gap, Inc................................................. 7,776
200,000 Hechinger Co. Class A........................................ 1,150
235,000 Melville Corp................................................ 6,698
--------
15,624
--------
Savings & Loans (1.3%):
20,200 Great Western Financial Corp................................. 4,848
--------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Transportation Leasing & Trucking (1.8%):
185,000 Ryder Systems, Inc........................................ $ 4,324
113,000 TNT Freightways Corp...................................... 2,091
--------
6,415
--------
Transportation--Marine (0.2%):
40,000 Kirby Corp.(b)............................................ 710
--------
Utilities--Electric (1.3%):
180,000 Southern Co............................................... 4,568
--------
Utilities--Electric (1.3%):
164,000 Baltimore Gas & Electric.................................. 4,715
--------
Utilities--Telecommunications (8.1%):
120,000 A T & T Corp.............................................. 8,025
170,000 BellSouth Corp............................................ 7,289
131,000 Nynex Corp................................................ 7,025
151,000 Sprint Corp............................................... 6,512
--------
28,851
--------
Total Common Stocks 322,473
--------
INVESTMENT COMPANIES (9.0%):
16,695,409 AmSouth Prime Obligations Fund............................ 16,696
15,624,088 AmSouth U.S. Treasury Fund................................ 15,624
--------
Total Investment Companies 32,320
--------
Total (Cost--$291,734)(a) $354,793
========
</TABLE>
- --------
Percentages indicated are based on net assets of $356,828.
(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 $443. Cost for federal income tax purposes
differs from value by net unrealized appreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized appreciation........ $69,803
Unrealized depreciation........ (7,187)
-------
Net unrealized appreciation.... $62,616
=======
</TABLE>
(b)Represents non-income producing security.
ADR--American Depository Receipt
See notes to financial statements.
-44-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands, except Shares
(Unaudited)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (90.9%):
Air Freight (1.8%):
20,000 Federal Express (b)........................................ $ 1,522
-------
Apparel (2.6%):
80,000 Delta Woodside Industries.................................. 540
60,000 Russell Corp............................................... 1,650
-------
2,190
-------
Automotive Parts (4.9%):
70,000 Discount Auto Parts, Inc. (b).............................. 2,144
45,000 Genuine Parts Co........................................... 2,003
-------
4,147
-------
Banking (10.8%):
35,000 Deposit Guaranty Corp...................................... 1,505
50,000 First Commerce Corp........................................ 1,644
30,000 First Tennessee National Corp.............................. 1,830
35,000 First Union Corp........................................... 2,026
30,000 NationsBank Corp........................................... 2,096
-------
9,101
-------
Building Materials (1.9%):
110,000 Interface, Inc............................................. 1,636
-------
Business Services (2.2%):
100,000 Equifax, Inc............................................... 1,863
-------
Chemicals--Specialty (2.3%):
180,000 Ethyl Corp................................................. 1,912
-------
Commercial Services (0.1%):
5,000 Rollins, Inc............................................... 109
-------
Electronic & Electrical (2.4%):
130,000 Scientific Atlanta, Inc.................................... 2,048
-------
Food Processing & Packaging (4.9%):
145,000 Flowers Industries, Inc.................................... 1,921
130,000 Lance, Inc................................................. 2,210
-------
4,131
-------
Forest Products--Lumber, Paper (3.7%):
70,000 Carauster Industries, Inc.................................. 1,365
65,000 James River Corp........................................... 1,706
-------
3,071
-------
Furniture (0.8%):
105,000 Winsloew Furniture, Inc. (b)............................... 656
-------
Insurance (2.3%):
75,000 First Colony Corp.......................................... $ 1,913
-------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Manufacturing (2.3%):
75,000 Wolverine Tube, Inc........................................ 1,959
-------
Medical Services--Hospital, Hospital Management (12.8%):
238,808 HEALTHSOUTH Corp. (b)...................................... 7,702
101,250 Health Management Assoc., Inc. (b)......................... 3,050
-------
10,752
-------
Oil & Gas Exploration, Production & Services (3.8%):
40,000 Louisiana Land & Exploration Co............................ 1,720
13,000 Mobil Corp................................................. 1,440
-------
3,160
-------
Oilfield Equipment & Services (4.5%):
25,000 McDermott International, Inc............................... 484
100,000 Offshore Logistics (b)..................................... 1,250
60,000 Production Operators....................................... 2,047
-------
3,781
-------
Printing (2.2%):
85,000 John H. Harland Co......................................... 1,870
-------
Railroads (2.3%):
25,000 Norfolk & Southern Co...................................... 1,972
-------
Restaurants (2.6%):
110,000 Cracker Barrel Old Country Store, Inc...................... 2,159
-------
Retail--Specialty Stores (6.6%):
160,000 Big B., Inc................................................ 1,600
135,000 Books A Million (b)........................................ 1,097
170,000 Hancock Fabrics............................................ 1,594
145,000 Stein Mart, Inc. (b)....................................... 1,250
-------
5,541
-------
Software & Computer Services (1.4%):
60,000 American Software, Inc..................................... 293
50,000 Intergraph Corp. (b)....................................... 925
-------
1,218
-------
Steel (2.5%):
90,000 Birmingham Steel Corp...................................... 1,485
10,000 Nucor Corp................................................. 581
-------
2,066
-------
Transportation Leasing & Trucking (2.2%):
80,000 Ryder Systems, Inc......................................... $ 1,870
-------
</TABLE>
Continued
-45-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands, except Shares
(Unaudited)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ --------------------------------------------------------------- ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Electric (4.7%):
50,000 Florida Progress Corp.......................................... 1,775
85,000 Southern Co.................................................... 2,157
------
3,932
------
Utilities--Telecommunications (2.3%):
45,000 Bellsouth Corp................................................. 1,929
------
Total Common Stocks 76,508
------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -------
<C> <S> <C>
INVESTMENT COMPANIES (9.3%):
4,078,934 AmSouth Prime Obligations Fund............................. $ 4,079
3,725,171 AmSouth U.S. Treasury Fund................................. 3,725
-------
Total Investment Companies 7,804
-------
Total (Cost--$67,980)(a) $84,312
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $84,103.
(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....... $20,467
Unrealized depreciation....... (4,135)
-------
Net unrealized appreciation... $16,332
=======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-46-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1996
Amounts in Thousands, except Shares and Principal Amount
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (53.6%):
Aerospace & Defense (0.8%):
35,000 Boeing Co................................................. $ 2,717
--------
Aluminum (1.0%):
55,000 Alcan Aluminum Limited.................................... 1,753
32,000 Reynolds Metals Co........................................ 1,712
--------
3,465
--------
Apparel (0.4%):
140,000 Phillips Van Heusen....................................... 1,470
--------
Automotive Parts (0.6%):
101,000 Arvin Industries, Inc..................................... 1,982
--------
Automobiles (1.1%):
120,000 Ford Motor Co............................................. 3,555
--------
Banks (2.2%):
40,000 J.P. Morgan & Co., Inc.................................... 3,250
55,000 NationsBank Corp.......................................... 3,843
--------
7,093
--------
Chemicals--Specialty (0.7%):
96,000 Engelhard Corp............................................ 2,220
--------
Commercial Services (0.1%):
10,000 Rollins, Inc.............................................. 217
--------
Computers & Peripherals (1.4%):
42,000 International Business Machines Corp...................... 4,567
--------
Conglomerates (0.9%):
35,000 TRW, Inc.................................................. 2,957
--------
Construction (0.4%):
81,000 Ryland Group.............................................. 1,195
--------
Electronic & Electrical (1.5%):
93,000 AMP, Inc.................................................. 3,627
32,000 Avnet, Inc................................................ 1,372
--------
4,999
--------
Financial Services (2.0%):
60,000 American Express Co....................................... 2,760
58,500 Dun & Bradstret Corp...................................... 3,802
--------
6,562
--------
Food Processing & Packaging (2.1%):
106,939 Grand Metropolitan-ADR.................................... 2,861
120,000 Sara Lee Corp............................................. 4,050
--------
6,911
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Forest Products--Lumber, Paper (1.0%):
70,000 Weyerhauser Co............................................ $ 3,229
--------
Health Care (1.2%):
40,000 Johnson & Johnson, Inc.................................... 3,840
--------
Health Maintenance Organizations (0.5%):
33,000 U.S. Healthcare, Inc...................................... 1,600
--------
Industrial Services (0.9%):
100,000 Measurex Corp............................................. 2,963
--------
Insurance--Broker (1.6%):
132,000 Alexander & Alexander Services, Inc....................... 2,558
30,000 Marsh & McLennan Companies, Inc........................... 2,730
--------
5,288
--------
Insurance (1.0%):
45,000 Aetna Life & Casualty Co.................................. 3,353
--------
Insurance--Prop, Casualty (1.0%):
60,000 St. Paul Companies, Inc................................... 3,420
--------
Manufacturing (0.5%):
31,000 Kennametal, Inc........................................... 891
21,000 Trinity Industries........................................ 735
--------
1,626
--------
Medical Services (1.5%):
110,000 Baxter International, Inc................................. 5,005
--------
Newspapers (2.1%):
77,000 Dow Jones & Co., Inc...................................... 3,012
63,000 Gannett Co., Inc.......................................... 4,001
--------
7,013
--------
Oil & Gas Production & Refining (2.8%):
93,000 Burlington Resources...................................... 3,487
115,000 Sun Company, Inc.......................................... 3,134
130,000 USX--Marathon Group....................................... 2,437
--------
9,058
--------
Oil--Integrated Companies (1.4%):
59,000 Texaco, Inc............................................... 4,772
--------
</TABLE>
Continued
-47-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1996
Amounts in Thousands, except Shares and Principal Amount
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oilfield Equipment & Services (3.1%):
105,000 Baker Hughes, Inc......................................... $ 2,717
100,000 Dresser Industries, Inc................................... 2,600
30,000 McDermott International, Inc.............................. 581
60,000 Schlumberger Limited...................................... 4,208
--------
10,106
--------
Pharmaceuticals (2.9%):
45,000 American Home Products Corp............................... 4,590
54,000 Bristol-Myers Squibb Co................................... 4,779
--------
9,369
--------
Photography (1.3%):
60,000 Eastman Kodak Co.......................................... 4,403
--------
Pollution Control Services & Equipment (1.0%):
105,000 WMX Technologies, Inc..................................... 3,137
--------
Railroads (1.9%):
30,000 Burlington Northern....................................... 2,456
80,000 CSX Corp.................................................. 3,710
--------
6,166
--------
Retail (2.6%):
170,000 Hechinger Co. Class A..................................... 977
113,000 Melville Corp............................................. 3,221
92,000 The Gap................................................... 4,336
--------
8,534
--------
Retail--Specialty Stores (2.1%):
18,000 Dayton Hudson Corp........................................ 1,345
100,000 Dillard Department Stores, Inc............................ 2,900
60,000 May Department Stores..................................... 2,670
--------
6,915
--------
Savings & Loans (0.9):
130,000 Great Western Financial Corp.............................. 3,120
--------
Transportation Leasing & Trucking (0.8%):
70,000 Ryder Systems, Inc........................................ 1,636
53,000 TNT Freightways Corp...................................... 981
--------
2,617
--------
Transportation--Marine (0.2%):
30,000 Kirby Corporation(b)...................................... 532
--------
Utilities--Electric & Gas (1.3%):
73,000 Baltimore Gas & Electric.................................. 2,099
80,000 Southern Co............................................... 2,030
--------
4,129
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Telecommunications (4.8%):
55,000 AT&T Corp................................................. $ 3,678
90,000 BellSouth Corp............................................ 3,859
90,000 Nynex Corp................................................ 4,826
80,000 Sprint Corp............................................... 3,450
--------
15,813
--------
Total Common Stocks 175,918
--------
CORPORATE BONDS (13.0%):
Aircraft (0.3%):
1,000,000 Boeing Co., 8.38%, 3/1/96................................. 1,003
--------
Appliances (0.2%):
500,000 Whirlpool Corp., 9.50%, 6/15/00........................... 571
--------
Automotive (1.0%):
1,430,000 Ford Capital, 9.13%, 5/1/98............................... 1,541
1,000,000 Ford Motor Credit Corp., 5.63%, 1/15/99................... 1,003
700,000 General Motors Corp., 9.63%, 12/1/00...................... 809
--------
3,353
--------
Banking (2.2%):
930,000 Bank of America, 9.50%, 4/1/01............................ 1,079
1,000,000 Bankers Trust Co., 7.25%, 11/1/96......................... 1,015
1,000,000 Bankers Trust Co., 9.50%, 6/14/00......................... 1,134
2,500,000 Mellon Corporation, 6.30%, 6/1/00......................... 2,556
1,250,000 SunTrust Banks, Inc., 8.38%, 3/1/96....................... 1,253
--------
7,037
--------
Brokerage Services (0.3%):
1,000,000 Morgan Stanley Group, Inc., 9.25%, 3/1/98................. 1,071
--------
Entertainment (0.3%):
1,000,000 Columbia Picture Entertainment, Inc., 9.88%, 2/1/98....... 1,071
--------
Farm Equipment (0.2%):
530,000 Deere & Co., 9.13%, 7/1/96................................ 538
--------
Financial Services (2.1%):
1,000,000 American General Finance, 7.70%, 11/15/97................. 1,029
500,000 Associates Corp., 8.63%, 6/15/97.......................... 522
500,000 Beneficial Corp., 9.90%, 11/17/97......................... 538
</TABLE>
Continued
-48-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1995
Amounts in Thousands, except Shares and Principal Amount
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, continued:
1,200,000 British Telcom Finance, Inc., 9.38%, 2/15/99.............. $ 1,330
200,000 CIT Group Holdings, Inc., 8.75%, 7/1/97................... 209
1,000,000 Commercial Credit Co., 7.88%, 7/15/04..................... 1,110
2,000,000 Morgan Stanley Group, Inc., 8.10%, 6/24/02................ 2,210
--------
6,948
--------
Industrial Goods & Services (1.5%):
500,000 Browning Ferris International, 6.10%, 1/15/03............. 504
1,000,000 Dresser Industries, Inc., 6.25%, 6/1/00................... 1,020
1,000,000 WMX Technologies, Inc., 8.25%, 11/15/99................... 1,088
2,000,000 Waste Management, 7.70%, 10/1/02.......................... 2,195
--------
4,807
--------
Insurance (1.4%):
1,000,000 Allstate Corp., 5.88%, 6/15/98............................ 1,009
1,400,000 Capital Holding Corp., 9.20%, 4/17/01..................... 1,578
560,000 Chubb Corp., 8.75%, 11/15/99.............................. 615
1,200,000 Torchmark Corp., 9.63%, 5/1/98............................ 1,296
--------
4,498
--------
Oil & Gas, Exploration, & Production, & Services (0.6%):
1,550,000 BP America, 9.38%, 11/1/00................................ 1,784
--------
Pharmaceuticals (0.3%):
1,000,000 McKesson Corp., 8.63%, 2/1/98............................. 1,060
--------
Security Brokers & Dealers (1.2%):
4,000,000 Dean Witter Discover & Co., 6.00%, 3/1/98................. 4,050
--------
Utility--Electric (1.4%):
530,000 National Rural, 9.50%, 5/15/97............................ 557
2,000,000 Oklahoma Gas & Electric, 6.25%, 10/15/00.................. 2,038
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utility--Electric, continued:
900,000 Pennsylvania Power & Light, 6.00%, 6/1/00................ $ 909
1,200,000 Virginia Electric & Power, 7.25%, 3/1/97................. 1,224
--------
4,728
--------
Total Corporate Bonds 42,519
--------
U.S. TREASURY BONDS (0.3%):
1,000,000 6.25%, 8/15/23........................................... 1,018
--------
Total U.S. Treasury Bonds 1,018
--------
U.S. TREASURY NOTES (24.8%):
7,000,000 6.38%, 6/30/97........................................... 7,139
5,100,000 7.88%, 4/15/98........................................... 5,404
1,800,000 9.25%, 8/15/98........................................... 1,978
1,000,000 4.75%, 9/30/98........................................... 993
3,400,000 6.38%, 1/15/99........................................... 3,522
1,000,000 6.38%, 7/15/99........................................... 1,039
1,000,000 6.00%, 10/15/99.......................................... 1,029
1,000,000 7.13%, 2/29/00........................................... 1,070
4,000,000 7.75%, 2/15/01........................................... 4,435
25,000,000 6.38%, 8/15/02........................................... 26,312
15,300,000 5.75%, 8/15/03........................................... 15,533
11,000,000 7.50%, 11/15/16.......................................... 12,806
--------
Total U.S. Treasury Notes 81,260
--------
U.S. TREASURY STRIPS (2.3%):
12,000,000 2/15/04.................................................. 7,685
--------
Total U.S. Treasury Strips 7,685
--------
INVESTMENT COMPANIES (4.5%):
14,488,735 AmSouth Prime Obligations Fund........................... 14,489
142,314 AmSouth U.S. Treasury Fund............................... 142
--------
Total Investment Companies 14,631
--------
Total (Cost--$275,247)(a) $323,031
========
</TABLE>
- --------
Percentages indicated are based on net assets of $327,857.
(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........ $52,074
Unrealized depreciation........ (4,290)
-------
Net unrealized appreciation.... $47,784
=======
</TABLE>
(b) Represents non-income producing security.
See notes to financial statements.
-49-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
January 31, 1996
(Unaudited)
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. Between the date of organization and the dates
of commencement of operations, the Trust had no operations other than
incurring organizational expenses and the sale of initial units of beneficial
interest ("shares").
The Trust is authorized to issue an unlimited number of shares 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. AmSouth serves as investment advisor to
the Funds.
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 Prime Obligations Fund, the U.S. Treasury Fund and the
Tax Exempt Fund (collectively, "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
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 Bond Fund, the Limited Maturity
Fund, the Government Income Fund, the Florida Tax-Free Fund, the Equity
Fund, the Regional Equity Fund, and the Balanced Fund (collectively, "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.
Continued
-50-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1996
(Unaudited)
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.
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, generally on the basis of relative net assets.
Continued
-51-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1996
(Unaudited)
UNAMORTIZED ORGANIZATIONAL COSTS:
Costs incurred by the Trust in connection with its organization and
registration of shares have been deferred and are amortized using the
straight-line method over a period of two years from the commencement of
the public offering of shares of each of the Funds.
3.PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended January 31, 1996:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Bond Fund............................................. $ 6,899,116 $ 2,369,802
Limited Maturity Fund................................. 14,564,688 13,183,125
Government Income Fund................................ 6,106,855 4,449,806
Florida Tax-Free Fund................................. 6,254,244 2,081,855
Equity Fund........................................... 66,879,691 22,208,699
Regional Equity Fund.................................. 9,975,325 3,523,283
Balanced Fund......................................... 32,592,410 19,327,022
</TABLE>
4.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.
BISYS, with whom certain officers and trustees of the Trust are affiliated,
serves the Funds as administrator. Such officers and trustees are paid no
fees directly by the Funds for serving as officers and trustees of the Trust.
Under the terms of the administration agreement, BISYS' fees are computed
daily as a percentage of the average net assets of each of the Funds. 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 six months
ended January 31, 1996, BISYS received $650,929 from commissions earned on
sales of shares of Funds' variable net asset funds of which $1,500 was
allowed to AmSouth, an investment dealer of the Funds' shares and $630,934
was allowed to 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 BISYS Ohio's fees
are based on the number of shareholders and as a percentage of average net
assets, respectively.
Continued
-52-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1996
(Unaudited)
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios.
Information regarding these transactions is as follows for the six months
ended January 31, 1996 (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
--------------------------------
ANNUAL FEE AS
A PERCENTAGE OF ADMINISTRATION TRANSFER AGENT
AVERAGE DAILY FEES VOLUNTARILY FEES VOLUNTARILY AND MUTUAL FUND
NET ASSETS REDUCED REDUCED ACCOUNTANT FEES
--------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Prime Obligations Fund.. 0.40% $229
U.S. Treasury Fund...... 0.40% 57
Tax Exempt Fund......... 0.40% $ 69 44
Bond Fund............... 0.65% 75 $ 40 34
Limited Maturity Fund... 0.65% 46 25 142
Government Income Fund.. 0.65% 32 9
Florida Tax-Free Fund... 0.65% 86 25 198
Equity Fund............. 0.80% 122 162
Regional Equity Fund.... 0.80% 31 141
Balanced Fund........... 0.80% 159 125 82
</TABLE>
Continued
-53-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
-------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, --------------------------------------
1996 1995 1994 1993 1992
---------------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.026 0.050 0.029 0.027 0.042
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.026) (0.050) (0.029) (0.027) (0.042)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Return............ 2.65%(b) 5.14% 2.94% 2.76% 4.28%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $577,457 $617,673 $577,331 $456,428 $457,511
Ratio of expenses to
average net assets.... 0.71%(a) 0.69% 0.70% 0.71% 0.71%
Ratio of net investment
income to average net
assets................ 5.22%(a) 5.04% 2.92% 2.73% 4.08%
</TABLE>
- --------
(a)Annualized.
(b)Not annualized.
See notes to financial statements.
-54-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY FUND
-------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, --------------------------------------
1996 1995 1994 1993 1992
---------------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.026 0.048 0.028 0.027 0.041
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.026) (0.048) (0.028) (0.027) (0.041)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Return............ 2.59%(b) 4.90% 2.80% 2.69% 4.15%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $442,466 $322,939 $300,603 $404,473 $339,666
Ratio of expenses to
average net assets.... 0.70%(a) 0.70% 0.71% 0.72% 0.73%
Ratio of net investment
income to average net
assets................ 5.09%(a) 4.81% 2.77% 2.66% 4.08%
</TABLE>
- --------
(a)Annualized.
(b)Not annualized.
See notes to financial statements.
-55-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX EXEMPT FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ----------------------------------
1996 1995 1994 1993 1992
---------------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.... 0.016 0.032 0.019 0.021 0.030
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.... (0.016) (0.032) (0.019) (0.021) (0.030)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Return.............. 1.66%(b) 3.22% 1.95% 2.16% 3.12%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)............ $66,941 $57,640 $60,923 $48,151 $38,392
Ratio of expenses to
average net assets...... 0.52%(a) 0.54% 0.57% 0.49% 0.65%
Ratio of net investment
income to average
net assets.............. 3.28%(a) 3.15% 1.93% 2.12% 2.98%
Ratio of expenses to
average net assets*..... 0.72%(a) 0.74% 0.77% 0.78% 0.77%
Ratio of net investment
income to average
net assets*............. 3.08%(a) 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)Annualized.
(b)Not annualized.
See notes to financial statements.
-56-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BOND FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ----------------------------------
1996 1995 1994 1993 1992
---------------- ------- ------- ------- -------
(UNAUDITED)
<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.... 0.33 0.69 0.69 0.71 0.74
Net realized and
unrealized gains
(losses) from
investments............. 0.43 0.28 (0.66) 0.33 0.91
-------- ------- ------- ------- -------
Total from Investment
Activities............. 0.76 0.97 0.03 1.04 1.65
-------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.... (0.33) (0.69) (0.70) (0.71) (0.73)
Net realized gains....... (0.11) (0.04) (0.03) (0.33) (0.05)
-------- ------- ------- ------- -------
Total Distributions..... (0.44) (0.73) (0.73) (1.04) (0.78)
-------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 11.15 $ 10.83 $ 10.59 $ 11.29 $ 11.29
======== ======= ======= ======= =======
Total Return (excludes
sales charge)............ 7.19%(b) 9.70% 0.23% 9.80% 16.41%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)............ $105,800 $94,671 $79,472 $65,777 $60,156
Ratio of expenses to
average net assets...... 0.76%(a) 0.75% 0.78% 0.78% 0.82%
Ratio of net investment
income to average
net assets.............. 6.09%(a) 6.63% 6.31% 6.37% 6.94%
Ratio of expenses to
average net assets*..... 0.99%(a) 0.98% 1.01% 1.01% 1.01%
Ratio of net investment
income to average
net assets*............. 5.86%(a) 6.40% 6.08% 6.14% 6.75%
Portfolio turnover........ 2.50% 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.
(a)Annualized.
(b)Not annualized.
See notes to financial statements.
-57-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LIMITED MATURITY FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ----------------------------------
1996 1995 1994 1993 1992
---------------- ------- ------- ------- -------
(UNAUDITED)
<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.... 0.29 0.58 0.54 0.60 0.70
Net realized and
unrealized gains
(losses) from
investments............. 0.20 0.17 (0.45) 0.09 0.45
------- ------- ------- ------- -------
Total from Investment
Activities............. 0.49 0.75 0.09 0.69 1.15
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.... (0.29) (0.57) (0.54) (0.61) (0.69)
Net realized gains....... (0.08) (0.09)
In excess of net realized
gains................... (0.13)
------- ------- ------- ------- -------
Total Distributions..... (0.29) (0.57) (0.67) (0.69) (0.78)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 10.61 $ 10.41 $ 10.23 $ 10.81 $ 10.81
======= ======= ======= ======= =======
Total Return (excludes
sales charge)............ 4.79%(b) 7.65% 0.77% 6.72% 11.48%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)............ $63,250 $59,798 $51,660 $53,933 $38,206
Ratio of expenses to
average net assets...... 0.76%(a) 0.80% 0.79% 0.69% 0.68%
Ratio of net investment
income to average
net assets.............. 5.44%(a) 5.69% 5.05% 5.67% 6.78%
Ratio of expenses to
average net assets*..... 0.99%(a) 1.03% 1.02% 1.03% 1.03%
Ratio of net investment
income to average
net assets*............. 5.21%(a) 5.46% 4.82% 5.33% 6.43%
Portfolio turnover........ 22.61% 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.
(a)Annualized.
(b)Not annualized.
See notes to financial statements.
-58-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND FLORIDA TAX-FREE FUND
------------------------------------------ -----------------------------------
SIX MONTH ENDED YEAR ENDED OCTOBER 1, 1993 SIX MONTHS ENDED SEPTEMBER 30, 1994
JANUARY 31, JULY 31, TO JULY 31, JANUARY 31, TO JULY 31,
1996 1995 1994(A) 1996 1995(A)
--------------- ---------- --------------- ---------------- ------------------
(UNAUDITED) (UNAUDITED)
<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.. 0.32 0.68 0.54 0.22 0.34
Net realized and
unrealized gains
(losses) from
investments........... 0.24 0.08 (0.57) 0.20 0.30
------- ------- ------- ------- -------
Total from Investment
Activities........... 0.56 0.76 (0.03) 0.42 0.64
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.27) (0.70) (0.33) (0.22) (0.32)
Net realized gains..... (0.01)
Tax return of capital.. (0.16)
------- ------- ------- ------- -------
Total Distributions... (0.27) (0.70) (0.49) (0.23) (0.32)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 9.83 $ 9.54 $ 9.48 $ 10.51 $ 10.32
======= ======= ======= ======= =======
Total Return (excludes
sales charge).......... 5.98%(c) 8.43% (0.26%)(c) 4.06%(c) 6.53%(c)
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $18,333 $16,679 $15,465 $49,428 $48,333
Ratio of expenses to
average net assets.... 0.64%(b) 0.58% 0.37%(b) 0.59%(b) 0.70%(b)
Ratio of net investment
income to average net
assets................ 6.75%(b) 7.18% 6.56%(b) 4.25%(b) 4.16%(b)
Ratio of expenses to
average net assets *.. 1.09%(b) 1.19% 1.22%(b) 1.04%(b) 1.01%(b)
Ratio of net investment
income to average net
assets *.............. 6.30%(b) 6.57% 5.71%(b) 3.80%(b) 3.86%(b)
Portfolio turnover...... 25.59% 27.32% 122.94% 4.60% 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.
-59-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY FUND
-------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, --------------------------------------
1996 1995 1994 1993 1992
---------------- -------- -------- -------- --------
(UNAUDITED)
<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.. 0.17 0.33 0.28 0.28 0.32
Net realized and
unrealized gains from
investments........... 0.67 2.39 0.83 1.48 1.20
-------- -------- -------- -------- --------
Total from Investment
Activities........... 0.84 2.72 1.11 1.76 1.52
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.18) (0.32) (0.28) (0.29) (0.33)
Net realized gains..... (0.47) (0.39) (0.49) (0.36)
-------- -------- -------- -------- --------
Total Distributions... (0.18) (0.79) (0.67) (0.78) (0.69)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 17.41 $ 16.75 $ 14.82 $ 14.38 $ 13.40
======== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 8.83%(b) 19.27% 7.90% 13.81% 12.94%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $356,828 $275,757 $205,611 $153,074 $107,934
Ratio of expenses to
average net assets.... 1.03%(a) 1.03% 0.94% 0.95% 1.01%
Ratio of net investment
income to average
net assets............ 2.00%(a) 2.17% 1.93% 2.08% 2.50%
Ratio of expenses to
average net assets*... 1.11%(a) 1.11% 1.11% 1.13% 1.15%
Ratio of net investment
income to average
net assets*........... 1.92%(a) 2.09% 1.76% 1.90% 2.36%
Portfolio turnover...... 8.00% 19.46% 11.37% 15.12% 113.12%
</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)Annualized.
(b)Not annualized.
See notes to financial statements.
-60-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
REGIONAL EQUITY FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ----------------------------------
1996 1995 1994 1993 1992
---------------- ------- ------- ------- -------
(UNAUDITED)
<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.... 0.14 0.23 0.23 0.19 0.23
Net realized and
unrealized gains from
investments............. 1.48 2.26 0.58 2.09 2.34
------- ------- ------- ------- -------
Total from Investment
Activities............. 1.62 2.49 0.81 2.28 2.57
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.... (0.13) (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..... (0.32) (0.23) (0.87) (0.40) (1.15)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 20.24 $ 18.94 $ 16.68 $ 16.74 $ 14.86
======= ======= ======= ======= =======
Total Return (excludes
sales charge)............ 8.59%(b) 15.10% 4.87% 15.53% 20.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)............ $84,103 $68,501 $54,744 $41,347 $15,707
Ratio of expenses to
average net assets...... 1.06%(a) 1.07% 0.79% 0.80% 0.91%
Ratio of net investment
income to average
net assets.............. 1.46%(a) 1.35% 1.36% 1.17% 1.61%
Ratio of expenses to
average net assets*..... 1.14%(a) 1.15% 1.24% 1.28% 1.36%
Ratio of net investment
income to average
net assets*............. 1.38%(a) 1.27% 0.90% 0.69% 1.16%
Portfolio turnover........ 5.04% 14.25% 5.83% 10.22% 24.99%
</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)Annualized.
(b)Not annualized.
See notes to financial statements.
-61-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BALANCED FUND
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31, DECEMBER 19, 1991
JANUARY 31, ---------------------------- TO JULY 31,
1996 1995 1994 1993 1992(A)
---------------- -------- -------- -------- -----------------
(UNAUDITED)
<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.. 0.24 0.47 0.42 0.44 0.27
Net realized and
unrealized gains from
investments........... 0.82 1.24 0.18 0.80 1.09
-------- -------- -------- -------- --------
Total from Investment
Activities........... 1.06 1.71 0.60 1.24 1.36
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.24) (0.46) (0.42) (0.45) (0.24)
Net realized gains..... (0.31) (0.30) (0.23) (0.05)
-------- -------- -------- -------- --------
Total Distributions... (0.55) (0.76) (0.65) (0.50) (0.24)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 13.27 $ 12.76 $ 11.81 $ 11.86 $ 11.12
======== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 8.45%(c) 15.27% 5.13% 11.47% 13.71%(c)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $327,856 $295,509 $236,306 $179,134 $143,813
Ratio of expenses to
average net assets.... 0.93%(b) 0.94% 0.84% 0.84% 0.83%(b)
Ratio of net investment
income to average net
assets................ 3.65%(b) 3.91% 3.56% 3.90% 4.45%(b)
Ratio of expenses to
average net assets*... 1.11%(b) 1.12% 1.11% 1.12% 1.17%(b)
Ratio of net investment
income to average net
assets*............... 3.47%(b) 3.73% 3.28% 3.62% 4.10%(b)
Portfolio turnover...... 6.62% 16.97% 14.43% 11.09% 23.18%
</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.
-62-
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
INVESTMENT ADVISOR
[LOGO OF AMSOUTH(R) APPEARS HERE]
AmSouth Bank
1901 Sixth Avenue North
Birmingham, AL 35203
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Ropes & Gray
1001 Pennsylvania Avenue, N.W.
Suite 1200
Washington, DC 20004
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 APPEARS HERE]
SEMI-ANNUAL REPORT
January 31, 1996
[LOGO OF AMSOUTH(R) APPEARS HERE]
AMSOUTH BANK OF ALABAMA
INVESTMENT ADVISOR
