<PAGE>
AMSOUTH MUTUAL FUNDS
....................
--------------------
[LOGO OF AMSOUTH(R) APPEARS HERE]
AMSOUTH BANK
Investment Advisor
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ANNUAL
REPORT
JULY 31, 1998
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AMSOUTH
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MUTUAL FUNDS
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BISYS Fund Services, Distributor
Not FDIC Insured
<PAGE>
TABLE OF CONTENTS
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
PAGE 1
REPORT OF INDEPENDENT ACCOUNTANTS
PAGE 26
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 27
STATEMENTS OF OPERATIONS
PAGE 31
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 35
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 40
NOTES TO FINANCIAL STATEMENTS
PAGE 78
FINANCIAL HIGHLIGHTS
PAGE 91
THE AMSOUTH MUTUAL FUNDS, LIKE ALL MUTUAL FUNDS, ARE
NOT FDIC INSURED NOR INSURED BY ANY OTHER AGENCY AND
ARE NOT OBLIGATIONS OR DEPOSITS OF, OR ENDORSED OR
GUARANTEED BY, AMSOUTH BANK OR ANY OF ITS
AFFILIATES. INVESTMENT PRODUCTS INVOLVE INVESTMENT
RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
Dear Shareholders:
We are pleased to send you this annual report for the AmSouth Mutual Funds. The
12-month period that ended July 31, 1998, was not for investors who are faint
of heart. After all, this was a year when stock prices climbed to several new
highs, only to drop a record 554 points last October 27.
At the same time, it was not a year to be sitting safely on the sidelines.
Turmoil and opportunity often come hand in hand, to be separated and utilized
by those investors who can spot a good bargain. Periods of stock market
volatility such as the current one can be unsettling. But such times also offer
an opportunity to revisit the principles that guide our investment strategy.
One principle is consistency: We will maintain our strategy regardless of
temporary fluctuations in securities prices, and will continue to invest in
securities designed to meet each fund's stated long-term objective. There is
little to be gained--and much to be lost--by adopting a strategy that attempts
to predict the financial markets' short-term movements. We are firmly convinced
that a sound and consistent long-term investment policy offers the most
effective way to cope with temporary market swings. Such a policy also provides
the best opportunity for our funds and their shareholders to achieve their
financial goals.
Our new Small Cap Fund was introduced on March 2, 1998, and is subadvised by
Sawgrass Asset Management. The Small Cap Fund complements our fund family and
offers shareholders another means of diversifying their investments.
STOCKS: THE BIG NAMES MADE THE BIG MONEY
It is our belief that if there was one theme that played out in the stock
market for much of our fiscal year, it was that "bigger was better." Although
we believe some large-cap stocks appeared grossly overvalued by every
fundamental measure, these were the issues that most investors wanted to buy. A
very narrow group of the largest, best-known stocks formed the engine that
drove the market upward.
However, as we discussed in our last report six months ago, valuations such as
price-to-earnings and price-to-book swelled to levels that we consider
unsustainable. When it became apparent toward the end of our fiscal year that
earnings growth at larger corporations was slowing considerably--due in part to
a collapse in Asia--and probably would continue to fall, investors started to
retreat. And as we write this letter in August, investor uncertainty has hit
the market, further disturbing the underpinnings of what has been one of the
great bull advances of this century.
BONDS: A BOOST FROM BAD NEWS IN ASIA
Although the economic crisis in Asia caused the stock market to fall, many
fixed-income instruments, especially longer term issues, benefited from the
crisis. Particularly in the fourth quarter of 1997, investors flocked to U.S.
Treasury securities for their unimpeachable quality. This "flight to quality"
-1-
<PAGE>
drove down long-term rates and raised bond prices. Our fixed-income managers
were well positioned to take advantage of profit opportunities in the bond
market.
Perhaps surprisingly, the Federal Reserve kept the lid on short-term rates.
The benchmark, the fed funds rate (the rate banks charge one another for
overnight loans), was kept at an artificially high 5.5% for the entire 12
months. This resulted in an unusually flat yield curve, with very short
securities providing almost as much yield as very long bonds.
OUR OUTLOOK: A NEUTRAL ENVIRONMENT
Despite the economic uneasiness that is lurking around the globe, we are not
altogether bearish about the next six to 12 months. The U.S. economy, in our
view, remains relatively strong, jobs are plentiful, consumers are spending,
and inflation continues to be remarkably absent. And if interest rates are to
move much over the next year, we feel that they are more likely to slip lower
than higher, particularly if the Fed finally decides to let the fed funds rate
fall at least a bit.
As long-term investors, we believe that trying to time the markets is folly.
For the most part, our funds remain fully invested, and we intend to pursue
the best opportunities we can find for you, our shareholders.
In the pages that follow this letter, you will find a report for each of the
AmSouth Mutual Funds, along with the Schedules of Portfolio Investments. We
encourage you to review this material, so that you may fully understand how
your investment is being managed. As always, we appreciate your continued
support and look forward to meeting your investment needs in the months and
years to come.
Sincerely,
/s/ George Landreth
George Landreth AmSouth Bank
Chairman Investment Advisor
AmSouth Mutual Funds
For more complete information on any of the AmSouth Mutual Funds, including
charges and expenses, call 1-800-451-8382 for a prospectus, which you should
read carefully before you invest or send money. Shares are distributed by
BISYS Fund Services.
-2-
<PAGE>
THE AMSOUTH REGIONAL EQUITY FUND+
The AmSouth Regional Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has
more than 25 years of investment experience as an analyst and portfolio
manager. He holds an MBA in finance and a bachelor's degree in economics.
A DIFFICULT TIME FOR SMALL STOCKS
For the 12 months ended July 31, 1998, the AmSouth Regional Equity Fund
produced a total return of -0.31% (Classic Shares at NAV)/1/. In comparison,
the S&P 500 Index rose 19.31%, while the Lipper Capital Appreciation Index
moved up 13.27%./2/
The Fund struggled in an environment that was unusually challenging for the
type of stocks we buy, for a number of reasons. Small-cap stocks generally did
poorly, especially since the beginning of 1998, and a few of the companies in
our portfolio missed their earnings targets or experienced other adverse
events. As a result, with the skittish market, some stocks in the portfolio
fell 30% to 60% in one day.
SOME PEARLS AMONG THE CHAFF
Nevertheless, we enjoyed some success. Office Depot (2.56% of net assets) saw
its stock fall after the agreement to merge with Staples was rejected by the
Justice Department, but when the company proved it could right itself, the
stock went back up sharply. Winslow Furniture (1.53%) was up more than 100%
over the last 12 months. Health Management Associates (5.75%), which purchases
and manages existing health centers, in our view, does an excellent job of
improving levels of performance and profitability.*
STABLE GROWTH SHOULD HELP THE REGION
The economy in the Southeast has been stable, growing at a slightly faster
rate than the U.S. economy as a whole. We believe that it may not change over
the next 12 months. We do not foresee any major problems on the horizon. A
minor problem that has been cropping up throughout the larger metropolitan
areas is a growing labor shortage. Unemployment levels are so low that
companies are having to work harder and smarter with their current employees.
At the same time, we believe the region is relatively insulated from the
problems in Asia, which is a plus.
As of July 31, 1998, the Fund's top five holdings were HEALTHSOUTH Corp.
(6.84%), Health Management Associates (5.75%), Russell Corp. (3.98%),
Scientific Atlanta, Inc. (3.53%) and Wolverine Tube (2.99%).*
+ Regional funds may be subject to additional risk, since the companies they
invest in are located in one geographical location.
/1The/Fund's Classic Shares return with a maximum sales charge 4.50% was -
4.79% for the period.
/2The/Lipper Capital Appreciation Index is comprised of managed funds that aim
at maximum capital appreciation, Lipper Analytical indicates that these
funds achieve their results frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The index may reflect large cash positions.
* The composition of the Fund's holdings is subject to change.
-3-
<PAGE>
THE AMSOUTH REGIONAL EQUITY FUND
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Value of a $10,000 Investment
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[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Regional AmSouth Regional S&P 500 AmSouth Regional
Equity Fund Equity Fund Stock Equity Fund Lipper Capital
Date (Premier Shares) (Classic Shares)* Index (B Shares)** Appreciation Index
---- --------------- ----------------- ------- ------------ ------------------
<S> <C> <C> <C> <C> <C>
12/1/88 10,000 9,550 10,000 10,000 10,000
7/1/89 11,779 11,250 12,980 11,620 12,919
7/1/90 12,888 12,309 13,822 12,488 13,328
7/1/91 14,501 13,850 15,577 14,201 14,988
7/1/92 17,497 16,712 17,555 17,197 16,592
7/1/93 20,214 19,307 19,084 20,014 19,096
7/1/94 21,199 20,249 20,069 21,100 19,796
7/1/95 24,401 23,306 25,307 24,401 25,244
7/1/96 27,598 26,360 29,378 27,598 27,377
7/1/97 38,367 36,646 44,689 38,367 36,419
1/1/98 38,768 37,010 46,280 38,628 36,962
7/1/98 38,315 36,527 53,318 37,998 41,252
</TABLE>
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Average Annual Total Return
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Since
As of 1 5 Inception
July 31, 1998 Year Year (12/1/88)
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Classic* -4.79% 12.56% 14.35%
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Premier -0.12% 13.64% 14.91%
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B Shares** -5.74% 13.21% 14.81%
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* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
B Shares commenced operations on September 3, 1997. The performance figures
for B Shares for periods prior to such date represent the performance for
Classic Shares of the Fund.
The performance of the AmSouth Regional Equity Fund is measured against the
S&P 500 Index and the Lipper Capital Appreciation Index. The S&P 500 Index is
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
Lipper Capital Appreciation Index, a managed index, and the Fund's performance
do reflect the deduction of fees for these value-added services. During the
period shown, the Fund waived fees for various expenses. Had these waivers not
been in place, performance quoted would have been lower.
-4-
<PAGE>
THE AMSOUTH EQUITY FUND
The AmSouth Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more
than 25 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
THE FALLOUT FROM ASIA CONTINUED TO GROW
For the 12 months ended July 31, 1998, the AmSouth Equity Fund produced a
total return of 12.34% (Classic Shares at NAV)/1/. In comparison, the S&P 500
Index rose 19.31%, while the Lipper Capital Appreciation Index gained
13.27%./2/
As the period proceeded, it became obvious that the economic crisis in Asia
could adversely affect the earnings of many American corporations, especially
companies that exported a significant portion of their goods or services to
the Far East. Bad news in the financial markets often gets worse before it
gets better, and this was the case with the "Asian flu." In fact, as the
period ended, the stock market moved sharply lower as investors struggled to
fully comprehend the true impact of the Asian crisis.
RETAIL WAS A WINNING SECTOR
Nonetheless, there were pockets of profitability to be found. One sector that
actually profited from currency devaluations abroad was the retail sector.
Retailers importing products from Asia benefited from paying lower prices.
Some of the retail companies who contributed substantial gains to our
performance were Wal-Mart Stores Inc. (3.13% of net assets), The Gap (1.85%)
and Dayton Hudson Corp. (2.79%).*
The Fund also realized gains from other stocks. We did particularly well with
Ford Motor Co. (2.19%) and financial stocks such as NationsBank (1.24%). Some
of our top health care holdings included American Home Products (1.00%) and
Pharmacia & Upjohn, Inc. (2.81%). We believe there are a number of health-care
and pharmaceutical companies that offer attractive, long term potential. We
are also excited about Cabletron (1.17%), a technology stock we recently added
to the Fund.*
WILL CONSUMERS KEEP THE MARKET AFLOAT?
In recent months, the market has benefited from strong consumer spending. With
low inflation and high levels of employment, in our view, Americans have been
willing to spend money. Looking ahead at how the U.S. economy and the stock
market might perform, a lot will depend on the consumer. If for some reason
people decide to spend less, we believe that could kick the final prop out
from under the economy and the market.
As of July 31, 1998, the Fund's top five holdings were Wal-Mart Stores Inc.
(3.13%), Pharmacia & Upjohn, Inc. (2.81%), Dayton Hudson Corp. (2.79%),
Rubbermaid, Inc. (2.75%) and CVS Corp. (2.75%).*
/1The/Fund's Classic Shares return with a maximum 4.50% sales charge was 7.29%
for the period.
/2The/Lipper Capital Appreciation Index is comprised of managed funds that aim
at maximum capital appreciation, Lipper Analytical indicates that these
funds achieve their results frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The index may reflect large cash positions.
* The composition of the Fund's holdings is subject to change.
-5-
<PAGE>
THE AMSOUTH EQUITY FUND
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Value of a $10,000 Investment
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[LINE GRAPH APPEARS HERE]
AmSouth Equity AmSouth Equity AmSouth Equity S&P 500 Lipper Capital
Fund (Premier Fund (Classic Fund Stock Appreciation
Date Shares) Shares)* (B Shares)** Index Index
---- -------------- -------------- -------------- ------- --------------
88 10,000 9,550 10,000 10,000 10,000
89 12,406 11,849 11,906 12,980 12,919
90 12,611 12,046 12,211 13,822 13,328
91 13,679 13,065 13,379 15,577 14,988
92 15,449 14,757 15,149 17,555 16,592
93 17,582 16,794 17,382 19,084 19,096
94 18,972 18,121 18,872 20,069 19,796
95 22,628 21,613 22,628 25,307 25,244
96 25,137 24,010 25,137 29,378 27,377
97 35,783 34,178 35,783 44,689 36,419
98 36,735 35,082 36,648 46,280 36,962
98 40,231 38,381 39,940 53,318 41,252
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Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of 1 5 Inception
July 31, 1998 Year Year (12/1/88)
------------------------------------------------------------------------------
Classic* 7.29% 16.90% 14.93%
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Premier 12.46% 18.01% 15.50%
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B Shares** 6.66% 17.63% 15.41%
------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
B Shares commenced operations on September 3, 1997. The performance figures
for B Shares for periods prior to such date represent the performance for
Classic Shares of the Fund.
The performance of the AmSouth Equity Fund is measured against the S&P 500
Index and the Lipper Capital Appreciation Fund Index. The S&P 500 Index is 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 Lipper Capital
Appreciation Fund Index, a managed index, and the Fund's performance do
reflect the deduction of fees for these value-added services. During the
period shown, the Fund waived fees for various expenses. Had these waivers not
been in place, performance quoted would have been lower.
-6-
<PAGE>
THE AMSOUTH EQUITY INCOME FUND
The AmSouth Equity Income Fund is subadvised by Rockhaven Asset Management and
managed by Christopher Wiles, CFA. President and chief investment officer of
Rockhaven, Mr. Wiles has more than 14 years of investment management
experience. He holds an MBA and a bachelor's degree in finance.
NARROW MARKET LEADERSHIP WORKED AGAINST US
For the 12 months ended July 31, 1998, the AmSouth Equity Income Fund produced
a total return of 7.29% (Classic Shares at NAV)/1/. In comparison, the S&P 500
Index rose 19.31%, and the Lipper Equity Income Fund Index gained 11.42%./2/
We saw a huge disparity between the different segments of the market. During
the period, large-cap growth stocks were up twice as much as the large-cap
value stocks we generally favor. There also was very narrow leadership in the
market, with the ten largest stocks among the Standard & Poor's 500 Index
trading at historically excessive valuations.
WE HAD SOME SUCCESS, AND WE ARE LOOKING FOR MORE
Our goal is to provide good market exposure at relatively low levels of risk,
and we feel we did that. Among our successes was Ford Motor Co. (2.15% of net
assets). Ford has taken market share from both Chrysler and General Motors and
has out-earned GM; its stock climbed roughly 80% during the first seven months
of 1998. Another move that turned out well for us was our decision to buy
stock in McDonald's (1.43%) in late 1997. McDonald's was under a lot of
pressure earlier on. The company finally righted itself, and the stock was up
40% since the beginning of 1998.*
Looking forward, there are a couple of pharmaceutical stocks in our portfolio
that have us excited, Baxter International, Inc. (2.93%) and Bausch & Lomb
(2.45%). They are starting to show good signs of life, and we think they will
do well.*
SEEKING A SAFE PORT IN THE COMING STORM
In our view, an overvalued market, at some point, will experience a serious
sell-off. When that happens, we want to be invested in stocks that make us
comfortable. So, we are going to continue purchasing what we believe are solid
companies whose stocks are inexpensive by our standards. That way, we hope to
decrease our downside risk.
As of July 31, 1998, the Fund's top five holdings were J.P. Morgan & Co. Inc.
(3.25%), Sears Roebuck & Co. (2.99%), Baxter International, Inc. (2.93%),
Readers Digest, Assn. Inc. (2.92%) and Pacific Century Financial Corp.
(2.88%).*
/1The/Fund's Classic Shares total return with a maximum 4.50% sales charge was
2.48% for the period.
/2The/Lipper Equity Income Fund Index is comprised of managed funds that seek
relatively high current income and growth of income through investing 60% or
more of the portfolio in equities.
* The composition of the Fund's holdings is subject to change.
-7-
<PAGE>
THE AMSOUTH EQUITY INCOME FUND
[LINE GRAPH APPEARS HERE]
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Value of a $10,000 Investment
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<TABLE>
<CAPTION>
AmSouth Equity AmSouth Equity AmSouth Equity Lipper Equity
Income Fund Income Fund Income Fund S&P 500 Income
Date (Premier Shares) (Classic Shares)* (B Shares)** Stock Index Fund Index
---- -------------- ----------------- -------------- ----------- -------------
<S> <C> <C> <C> <C> <C>
3/20/97 10,000 9,550 10,000 10,000 10,000
9,832 9,390 9,340 9,574 9,676
6/1/97 11,090 10,592 10,590 11,749 10,935
9/1/97 11,948 11,409 11,421 12,633 11,786
12/1/97 11,999 11,451 11,449 12,996 12,204
1/1/98 12,134 11,578 11,576 13,140 12,079
7/1/98 12,669 12,073 12,142 15,136 12,918
</TABLE>
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Average Annual Total Return
- -----------------------------------------------
Since
As of 1 Inception
July 31, 1998 Year (3/20/97)
- ----------------------------------------------------------------
Classic* 2.48% 14.81%
- ----------------------------------------------------------------
Premier 7.54% 18.94%
- ----------------------------------------------------------------
B Shares** 1.46% 15.29%
- ----------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
B Shares commenced operations on September 3, 1997. The performance figures
for B Shares for periods prior to such date represent the performance for
Classic Shares of the Fund.
The performance of the AmSouth Equity Income Fund is measured against the S&P
500 Index and the Lipper Equity Income Fund Index. The S&P 500 Index is 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 Lipper Equity
Income Fund Index, a managed index, and the Fund's performance do reflect the
deduction of fees for these value-added services. During the period shown, the
Fund waived and voluntarily reimbursed fees for various expenses. Had these
waivers not been in place, performance quoted would have been lower.
-8-
<PAGE>
THE AMSOUTH CAPITAL GROWTH FUND
The AmSouth Capital Growth Fund is subadvised by Peachtree Asset Management
and managed by Dennis Johnson, CFA. Mr. Johnson has more than 17 years of
investment management experience. He holds a master of science degree in
finance and a bachelor's degree in economics.
The AmSouth Capital Growth Fund was opened to investors on August 3, 1997. For
the period ended July 31, 1998, which represents just less than 12 months of
performance, the Fund produced a total return of 16.20% (Classic Shares at
NAV)./1/ In comparison, the S&P 500 Index rose 19.31%. We were pleased with
the Fund's performance during this period, which could be characterized as a
stock picker's environment. We believe that security selection is one of our
strong points.
TECHNOLOGY AND CONSUMER CYCLICALS WERE WINNING SECTORS
Our emphasis on technology and consumer cyclicals has produced solid returns
for shareholders. In technology, Apple Computer (2.47% of net assets) and
Microsoft Corp. (1.51%) were particular standouts, and we continue to hold
these companies in the current environment. In the consumer cyclicals sector,
we profited from our exposure to retail and apparel companies like Dayton
Hudson Corp. (1.67%). As a group, the companies in this sector benefited from
strong consumer demand in the United States and from the companies' commitment
to effectively manage inventory. Retailers also benefited from the fact that
they did not depend on foreign business for much of their sales and therefore
were not affected by the crisis in Asia.*
One sector that proved to be more challenging, especially during the last six
months of the period, was the financial sector. Nevertheless, we are pleased
with a number of our holdings, including Fleet Financial (1.66%), American
Express (1.86%) and Allstate Insurance (1.70%). We spent a lot of time
examining the underlying fundamentals that drive growth rates for companies in
general, and when we looked at the financial companies, we see they continue
to experience good revenue and income growth. We remain positive on our
outlook for financials, and we feel these stocks will continue to be good
investments going forward.*
SOLID GROWTH COMPANIES COULD DO WELL
Stock selection may continue to be one of the key elements to relative
performance. There has been a decline in corporate earnings growth, but aside
from Asia, we are seeing what we consider a normal, cyclical slowing in profit
growth. We expect corporate profits will grow a modest 6 to 7 percent over the
next 12 months. There are many companies delivering strong earnings growth,
even double-digit growth. Our success will depend on identifying companies
that possess the fundamentals we believe can sustain that level of growth
rate.
As of July 31, 1998, the Fund's top five holdings were Apple Computers Inc.
(2.47%), Lucent Technologies, Inc. (2.42%), Crestar Financial Corp. (2.21%),
Oracle Corp. (2.15%) and Schering-Plough Corp. (2.12%).*
/1The/Fund's Classic Shares total return with a maximum 4.50% sales charge was
10.98% for the period.
* The composition of the Fund's holdings is subject to change.
-9-
<PAGE>
THE AMSOUTH CAPITAL GROWTH FUND
[LINE GRAPH APPEARS HERE]
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
AmSouth Capital AmSouth Capital AmSouth Capital S&P 500
Growth Fund Growth Fund Growth Fund Stock
Date (Classic Shares)* (Premier Shares) (B Shares)** Index
- --------------------------------------------------------------------------------
8/4/97 9,550 10,000 10,000 10,000
1/31/97 9,684 10,150 9,610 10,971
7/1/97 11,098 11,650 11,040 12,637
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of Inception
July 31, 1998 YTD (8/3/97)
- --------------------------------------------------------------------------------
Classic Shares* 9.83% 10.98%
- --------------------------------------------------------------------------------
Premier Shares 15.23% 16.50%
- --------------------------------------------------------------------------------
B Shares** 9.60% 10.40%
- --------------------------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
B Shares commenced operations on September 3, 1997. The performance figures
for B Shares for periods prior to such date represent the performance for
Classic Shares of the Fund.
The performance of the AmSouth Capital Growth Fund is measured against the S&P
500 Stock Index, which is generally representative of the U.S. stock market.
The index is unmanaged and does not reflect the deduction of expenses
associated with a mutual fund, such as investment management and fund
accounting fees. However, the Fund's performance does reflect the deduction of
fees for these value added services. During the period shown, the Fund waived
and voluntarily reimbursed fees for various expenses. Had these waivers not
been in place, performance quoted would have been lower.
-10-
<PAGE>
THE AMSOUTH SMALL CAP FUND+
The AmSouth Small Cap Fund is subadvised by Sawgrass Asset Management and is
managed by Dean McQuiddy, CFA. A principal of Sawgrass, Mr. McQuiddy has more
than 16 years of investment management experience. He received his bachelor's
degree in finance from the University of Florida.
The AmSouth Small Cap Fund was opened to investors on March 2, 1998. For the
period ended July 31, 1998, which represents just less than five months of
performance, the Fund produced a total return of -8.31% (Classic Shares at
NAV)./1/ In comparison, the Russell 2000 Growth Index fell -12.38%.
The period was an especially challenging one for small-company growth stocks,
the sector in which the Fund invests. However, we believe the decline in
prices has created potential opportunities in this segment of the market.
Relative to large-cap stocks, and using valuation measures such as price-to-
earnings and price-to-book, this sector is priced better than it has been in
many years, below the relative valuation lows seen in 1987 and 1990.
A FUND FOR INVESTORS SEEKING SMALL-COMPANY GROWTH
We invest in small-capitalization stocks, equities with market caps between
$50 million to $2 billion. Our objective is growth of capital. The Fund may be
best suited for investors who are in for the long term and who have tolerance
for the volatility that is inherent in small stocks. But with volatility can
come opportunity. Our shareholders have the opportunity to participate in the
small-cap sector, which historically has performed well over long periods of
time.
CONSUMER STOCKS GAVE US A BOOST
During the period, we were overweighted in the retail and consumer sectors. In
our view, retailers enjoyed a double benefit from the economic crisis in Asia.
First, imported goods were cheaper to come by. Second, domestic consumers had
plenty of cash to spend. We profited from gains in The Men's Wearhouse (1.16%
of net assets), which we feel offers good value to consumers, and Veterinary
Centers of America (2.41%), which owns veterinary centers and hospitals around
the country.*
Looking ahead, we are very positive about many of our technology stocks, which
represent some of the most dynamic sectors of our economy. The Fund's holdings
include Gerber Scientific, a maker of computer aided design and manufacturing
hardware and software (2.01%), and Peregrine Systems (1.72%), an enterprise
software firm whose products allow large companies to share data across their
organizations.*
WE BELIEVE THE FUND HAS STRONG POTENTIAL
We believe it is possible that the stocks in the portfolio could produce
earnings growth well in excess of the overall market.
Moreover, smaller stocks which typically sell at a premium to the market, are
currently selling at a discount. For those reasons, we are quite hopeful about
the potential of our portfolio.
As of July 31, 1998, the Fund's top five holdings were Mohawk Industries Inc.
(2.47%), Veterinary Centers of America (2.41%), D.R. Horton, Inc. (2.34%),
Standard Pacific Corp. (2.32%) and Kellstorm Industries Inc. (2.30%).*
+ Small capital funds typically carry additional risks since smaller companies
generally have a higher risk of failure. Historically, smaller companies'
stocks have experienced a greater degree of market volatility than average.
/1The/Fund's Classic Shares total return with a maximum 4.50% sales charge was
-12.44% for the period.
* The composition of the Fund's holdings is subject to change.
-11-
<PAGE>
THE AMSOUTH SMALL CAP FUND+
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Small Cap Fund AmSouth Small Cap Fund AmSouth Small Cap Fund Russell 2000
Date (Classic Shares)* (Premier Shares) (B Shares)** Growth Index
---- ---------------------- ---------------------- ---------------------- ------------
<S> <C> <C> <C> <C>
3/2/98 9,550.00 10,000.00 10,000.00 10,000.00
3/31/98 9,866.89 10,301.75 9,790.00
4/30/98 9,866.89 10,301.75 9,790.00 10,061.00
5/31/98 9,158.00 9,571.63 9,063.00 9,330.00
6/30/98 9,426.23 9,851.67 9,319.50 9,426.00
7/31/98 8,755.66 9,151.56 8,654.50 8,639.00
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Returns
- --------------------------------------------------------------------------------
Since
As of Inception
July 31, 1998 (3/2/98)
- --------------------------------------------------------------------------------
Classic Shares* -12.69%
- --------------------------------------------------------------------------------
Premier Shares -8.48%
- --------------------------------------------------------------------------------
B Shares** -13.46%
- --------------------------------------------------------------------------------
*Reflects 4.50% sales charge.
**Reflects applicable contingent deferred sales charge.
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.
Classic Shares commenced operations on March 3, 1998. The performance figures
for Classic Shares prior to such date represent the performance for Premier
Shares of the Fund.
The performance of the AmSouth Small Cap Fund is measured against the Russell
2000 Growth Index, an unmanaged index generally representative of domestically
traded common stocks of small- to mid-sized companies. 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
does reflect the deduction of fees for these value added services. During the
period shown, the Fund waived and voluntarily reimbursed fees for various
expenses. Had these waivers not been in place, performance quoted would have
been lower.
-12-
<PAGE>
THE AMSOUTH BALANCED FUND
The AmSouth Balanced Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more
than 25 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
SOLID CONTRIBUTIONS FROM BOTH STOCKS AND BONDS
For the 12 months ended July 31, 1998, the AmSouth Balanced Fund produced a
total return of 9.54% (Classic Shares at NAV)/1/. In comparison, the S&P 500
Index rose 19.31%, while the Lehman Brothers Government/Corporate Bond Index
gained 8.06%. For the same period, the Lipper Balanced Fund Index moved up
10.72%./2/
While stocks and bonds both performed well during the period, they were not
consistent throughout the year. This divergence helped the Fund achieve its
basic objective, to seek to provide solid gains for shareholders, while
reducing short-term volatility.
STOCKS: CONSUMER SPENDING OFFSET ASIAN TROUBLES
The economic crisis in Asia struck early in the period and had a diverse
effect as our fiscal year progressed. It became increasingly clear, in our
view, that the recessionary wave in the Far East might negatively impact the
earnings of many American corporations. Offsetting Asia, consumer spending in
the United States was robust, and inflation remained low. Jobs were plentiful,
and rising stock-market values gave many people the confidence to spend more
freely than usual. Consequently, the Fund's equity performance was increased
by our holdings in such retail stocks as Wal-Mart Stores Inc. (1.62% of net
assets), The Gap (0.70%) and Dayton Hudson (0.98%). We also benefited from
sharp gains in Ford Motor Co. (1.21%) and NationsBank (0.84%). Some of our top
health-care performers included American Home Products (0.67%) and Pharmacia &
Upjohn (1.66%).*
BONDS: FALLING INTEREST RATES PRODUCED HIGHER RETURNS
As the period began, we felt that long-term interest rates were unjustifiably
high and would begin to trend downward. Therefore, we aggressively bought
long-term securities, anticipating that falling rates would provide us with
handsome capital gains. Our confidence was rewarded when rates declined in the
late summer and continued their decline into fall and then winter. We sold
many of our holdings at significant gains. With greater opportunities now
available at the shorter end of the yield curve, we used our profits to buy
short-term instruments.
As of July 31, 1998, the fixed-income securities within the Fund maintained an
average credit quality of AAA, with an average maturity of 7.6 years.
CONTINUED BALANCE BETWEEN STOCKS AND BONDS
As of July 31, the Fund's assets were 53.5% in equities and 45.7% in fixed-
income securities, quite similar to the allocation we reported six months ago.
We continue to believe that stocks and bonds, over the short term, offer
reasonably comparable potential. We have positioned the portfolio to take
advantage of investment opportunities, in stocks, bonds or both, wherever they
present themselves.
As of July 31, 1998, the Fund's top five equity holdings were Wal-Mart Stores
Inc., (1.62%), Pharmacia & Upjohn, Inc. (1.66%), Rubbermaid Inc. (1.57%),
Baxter International Inc. (1.57%) and CVS Corp. (1.40%).*
/1The/Fund's Classic Shares total return with a maximum 4.50% sales charge was
4.59% for the period.
/2The/Lipper Balanced Fund Index is comprised of managed funds whose primary
objective is to conserve principal by maintaining at all times a balanced
portfolio of both stocks and bonds. Typically, the stock/bond ratio ranges
around 60%-40%.
* The composition of the Fund's holdings is subject to change.
-13-
<PAGE>
THE AMSOUTH BALANCED FUND
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AmSouth Balanced Amsouth Balanced Fund AmSouth Balanced Fund S&P 500 Lehman Brothers Government Lipper Balanced
Date Premier Shares B Shares Classic Index /Corporate Bond Index Fund Index
---- ---------------- --------------------- --------------------- ------- -------------------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
91 10,000 10,000 9,550 10,000 10,000 10,000
92 11,371 10,871 10,861 10,337 10,724 11,117
93 12,675 12,275 12,106 11,233 11,907 12,400
94 13,325 13,025 12,727 11,816 11,892 12,731
95 15,360 15,060 14,670 14,895 13,095 14,685
96 16,645 16,445 15,897 17,360 13,518 16,087
97 21,043 20,943 20,097 26,409 15,482 21,023
98 21,836 21,653 20,846 27,363 16,275 21,626
Jul-98 23,076 22,873 22,003 31,518 16,730 23,037
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of 1 5 Inception
July 31, 1998 Year Year (12/19/91)
------------------------------------------------------------------------------
Classic* 4.59% 11.66% 12.66%
------------------------------------------------------------------------------
Premier 9.73% 12.74% 13.47%
------------------------------------------------------------------------------
B Shares** 3.78% 12.29% 13.32%
------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
B Shares commenced operations on September 2, 1997. The performance figures for
B Shares for periods prior to such date represent the performance for Classic
Shares of the Fund.
The performance of the AmSouth Balanced Fund is measured against the S&P 500
stock Index, an unmanaged index generally representative of the U.S. stock
market; the Lehman Brothers Government/Corporate Bond Index, an unmanaged
broad-based index representative of the total return of long-term government
and corporate bonds; and the Lipper Balanced Fund Index. The S&P 500 Index and
the Lehman Brothers Government/Corporate Bond Index do not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. However, the Lipper Balanced Fund Index, a
managed index, and the Fund's performance do reflect the deduction of fees for
these value-added services. During the period shown, the Fund waived fees for
various expenses. Had these waivers not been in place, performance quoted would
have been lower.
-14-
<PAGE>
THE AMSOUTH BOND FUND
The AmSouth Bond Fund is managed by Brian B. Sullivan, CFA. Mr. Sullivan is in
charge of fixed-income investments at AmSouth Bank and for the AmSouth Mutual
Funds. He has 14 years of fixed-income investment management experience and
holds an MBA in finance and a bachelor's degree in economics.
SOLID "REAL RETURNS'
For the 12 months ended July 31, 1998, the AmSouth Bond Fund produced a total
return of 7.45% (Classic Shares at NAV)./1/ In comparison, the Lehman Brothers
Government/Corporate Bond Index rose 8.06%, and the Lipper Corporate A-Rated
Debt Fund Index gained 7.29%./2/ In the face of very low inflation,
shareholders were rewarded with "real" returns (total returns minus inflation)
that were handsome by historical standards.
A YEAR-LONG SHIFT TO NEUTRAL GROUND
When our fiscal year began 12 months ago, interest rates were at their peak
and the Fund was an aggressive buyer of longer-term bonds. As rates declined
in the summer and fall of 1997, we profited as our bonds appreciated in price.
Rates continued to decline during the winter, which led to our decision to
actively sell many of our investments. We received significant gains and began
to buy shorter term debt. It seemed clear to us that, with interest rates
falling so far in a relatively short period of time, a more conservative
strategy was prudent.
Short-term instruments, especially those in the corporate market, offered
almost as much yield as longer-term Treasury issues, with less interest rate
risk. In effect, we were able to reduce the portfolio's overall risk, without
decreasing yield.
THE IMPACT FROM ASIA IS BALLOONING
In our report six months ago, we wrote that "Asia will move the market one way
or the other." In that respect, our outlook for the bond market has not
changed. We believe the problems in Asia are far from over and that the full
extent of Asia's impact on the U.S. economy is just now being understood. As
the economies in the Far East contract, we believe their currencies will
weaken and their demand for goods and services will fall. In response, we
believe exports from the United States to Asia will decline, and that imports
into the United States will become cheaper and more numerous. U.S. production
will slow, as will job growth, domestic demand and productivity.
To offset the drag from Asia, it is our opinion that the Federal Reserve could
well shift its policy toward a posture of easing credit. It is likely that the
Fed will lower short-term interest rates toward the end of the year, in
recognition of the fact that our own economy is slowing and to help foreign
currencies compete against an ever stronger U.S. dollar.
In the face of this assessment, our strategy will be to take advantage of
higher yields available from high-quality, intermediate-term corporate bonds.
These bonds could benefit most from a drop in interest rates precipitated by
potential Fed actions.
As of July 31, 1998, approximately 50% of the portfolio was invested in
corporate issues, 37% in securities issued by the U.S. Treasury, 11% in U.S.
government agency paper and 2% in cash equivalents. The securities within the
Fund maintained an average credit quality of AAA, with an average maturity of
7.9 years.*
/1The/Fund's Classic Shares total return with a maximum 4.00% sales charge was
3.19% for the period.
/2The/Lipper Corporate A-Rated Debt Fund Index is comprised of managed funds
that primarily invest 65% of their assets in corporate debt issues rated "A"
or better or government issues and reflects the deduction of fees for value-
added services.
* The composition of the Fund's holdings is subject to change.
-15-
<PAGE>
THE AMSOUTH BOND FUND
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Bond Fund AmSouth Bond Fund Lehman Brothers Government AmSouth Bond Fund Lipper Corporate A-
(Premier Shares) (Classic Shares)* /Corporate Bond Index (B Shares)** Rated Debt Funds Index
<S> <C> <C> <C> <C> <C>
12/1/88 10,000.00 9,600.00 10,000.00 10,000.00 10,000.00
1/1/89
7/1/89 11,091.00 10,644.00 11,188.00 10,591.00 11,079.00
8/1/89
7/1/90 11,705.00 11,233.00 11,885.00 11,305.00 11,650.00
8/1/90
7/1/91 12,640.00 12,131.00 13,103.00 12,340.00 12,803.00
8/1/91
7/1/92 14,715.00 14,122.00 15,152.00 14,415.00 14,920.00
8/1/92
7/1/93 16,158.00 15,507.00 16,824.00 15,958.00 16,622.00
8/1/93
7/1/94 16,195.00 15,542.00 16,802.00 16,095.00 16,413.00
8/1/94
7/1/95 17,765.00 17,050.00 18,502.00 17,765.00 18,060.00
8/1/95
7/1/96 18,546.00 17,799.00 19,487.00 18,546.00 18,983.00
8/1/96
7/1/97 20,489.00 19,663.00 21,590.00 20,489.00 21,103.00
8/1/97
1/1/98 21,515.00 20,639.00 22,695.00 21,446.00 22,038.00
2/1/98
7/1/98 21,999.00 21,098.00 23,330.00 21,817.00 22,641.00
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of 1 5 Inception
July 31, 1998 Year Year (12/1/88)
------------------------------------------------------------------------------
Classic* 3.19% 5.50% 8.03%
------------------------------------------------------------------------------
Premier 7.54% 6.39% 8.50%
------------------------------------------------------------------------------
B Shares** 4.70% 5.90% 8.41%
------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
*Reflects 4.00% sales charge.
**Reflects applicable contingent deferred sales
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
B Shares commenced operations on September 16, 1997. The performance figures
for B Shares for periods prior to such date represent the performance for
Classic Shares of the Fund.
The performance of the AmSouth Bond Fund is measured against the Lehman
Brothers Government/Corporate Bond Index and the Lipper Corporate A-Rated Debt
Funds Index. The Lehman Brothers Government/Corporate Bond Index is 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 Lipper Corporate A-Rated Debt Funds Index, a
managed index, and the Fund's performance do reflect the deduction of fees for
these value-added services. During the period shown, the Fund waived fees for
various expenses. Had these waivers not been in place, performance quoted
would have been lower.
-16-
<PAGE>
THEAMSOUTH GOVERNMENT INCOME FUND
The AmSouth Government Income Fund is managed by John Boston, CFA. Mr. Boston
has nine years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
The AmSouth Government Income Fund invests in a mixture of mortgage-backed
securities, principally Ginnie Maes (GNMAs), and intermediate- to long-term
U.S. Treasury bonds. We favor GNMAs because we believe that their significant
yield advantage over Treasuries and their high quality, amply reward investors
for the prepayment risks they involve.
For the 12 months ended July 31, 1998, the AmSouth Government Income Fund
produced a total return of 7.58% (Classic Shares at NAV)./1/ In comparison,
the Lehman Brothers Mortgage Index rose 7.45%, while the Lipper U.S. Mortgage
Fund Index gained 6.64%./2/
A FALL IN RATES INDUCED US TO MAKE CHANGES
During the fiscal year, long-term rates fell 58 basis points (0.58%), which
helped boost the value of the Fund's holdings; however, nearly all of that
decline in rates took place during the first six months of the period.
We kept a close watch on interest rate moves and responded by making
appropriate changes to our portfolio. At the start of the period, 80% of the
Fund was invested in mortgage-backed securities. As the period ended, that
allocation had shifted to 66% mortgage-backed securities.* Although market
forces influenced a reduction in our GNMA holdings, we continue to believe
that GNMAs offer the potential for higher returns than Treasuries.
During the period, we also let the portfolio's average maturity fall rather
sharply, to 6.24 years from 8.58 years. With the substantial fall in interest
rates, we have taken a slightly more defensive, cautious posture toward the
market. We believe that holding a portfolio with a lengthy average maturity
presents more risk than potential reward in the current environment.*
We remain committed to generating as high a level of income as possible, while
maintaining a high-quality portfolio. We invest only in Treasury or agency
securities, the latter including GNMAs and Fannie Mae debentures. As of July
31, 1998, the Fund's average credit quality was AAA.*
POSITIONED FOR A STEADY RATE ENVIRONMENT
We feel the market has driven long-term rates down to the point where they are
reasonably close to a bottom, at least for the foreseeable future.
Overall, our outlook on rates is neutral. Consequently, we see no reason to
make big interest rate bets, either aggressively or defensively. We anticipate
that the interest rate environment will remain stable over the next six to 12
months, and we will continue to take prudent measures to generate income and
preserve principal.
/1/The Fund's Classic Shares total return with a maximum 4.00% sales charge
was 3.24% for the period.
/2/The Lipper U.S. Mortgage Fund Index is comprised of managed funds that
invest at least 65% of their assets in mortgages/securities issued or
guaranteed as to principal and interest by the U.S. Government and certain
federal agencies.
*The composition of the Fund's holdings is subject to change.
-17-
<PAGE>
THE AMSOUTH GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Government Amsouth Government
Income Fund Income Fund Lehman Brothers Lipper U.S. Mortgage
Date (Premier Shares) (Classic Shares)* Mortgage index Fund Index
---- ------------------ ------------------ --------------- --------------------
<S> <C> <C> <C> <C>
10/1/93 10,000 9,600 10,000 10,000
7/1/94 9,974 9,572 9,924 9,633
7/1/95 10,814 10,378 10,798 10,432
7/1/96 11,345 10,888 11,688 10,945
7/1/97 12,504 12,000 12,933 12,057
1/1/98 13,115 12,581 13,506 12,573
7/1/98 13,443 12,900 13,897 12,797
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
AS of 1 Inception
July 31, 1998 Year (10/1/93)
------------------------------------------------------------------------------
Classic* 3.24% 5.41%
------------------------------------------------------------------------------
Premier 7.58% 6.32%
- --------------------------------------------------------------------------------
*Reflects 4.00% sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
The performance of the AmSouth Government Income Fund is measured against the
Lehman Brothers Mortgage Index and the Lipper U.S. Mortgage Fund Index. The
Lehman Brothers Mortgage Index is an unmanaged index generally representative
of the mortgage bond market as a whole. The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. However, the Lipper U.S. Mortgage Fund
Index, a managed index, and the Fund's performance do reflect the deduction of
fees for these value-added services. During the period shown, the Fund waived
and voluntarily reimbursed fees for various expenses. Had these waivers not
been in place, performance quoted would have been lower.
-18-
<PAGE>
THEAMSOUTH LIMITED MATURITY FUND
The AmSouth Limited Maturity Fund is managed by John Boston, CFA. Mr. Boston
has nine years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
For the 12 months ended July 31, 1998, the AmSouth Limited Maturity Fund
produced a total return of 5.94% (Classic Shares at NAV)./1/ In comparison,
the Merrill Lynch 1-5-Year Government/Corporate Bond Index rose 6.43% and the
Lipper Short Investment Grade Debt Index gained 6.05%./2/
WE FOUND OPPORTUNITIES IN THE CORPORATE MARKET
The Fund invests primarily in three different sectors: U.S. Treasury
securities, U.S. government agency securities and investment-grade corporate
debt. When our fiscal year began in mid-summer 1997, corporate spreads, the
"premiums" offered investors for choosing corporate issues instead of
Treasuries of like maturities were narrow. However, after the economic crisis
in Asia began to snowball, long-term interest rates started to decline
significantly, and the yield spreads available from corporate debt widened and
became more attractive.
We saw this as an opportunity to increase our ownership of corporate
securities. We acted on this strategy throughout the period and gained higher
income for our shareholders. As of July 31, 1998, 83% of the portfolio's net
assets were invested in the corporate sector, with the remaining 14% invested
in Treasuries, agencies and cash equivalents. This allocation represented a
marked shift from a year earlier, when 56% of the Fund was invested in
corporates.*
At the same time, we allowed the portfolio's average maturity to shorten. As
of July 31, 1998, the Fund's average maturity was 2.8 years, down from 3.3
years a year earlier. We also continued to emphasize a high-quality portfolio.
As of July 31, the Fund's credit quality was AA.*
THE SHORT-TERM CORPORATE MARKET MAY STILL BE THE PLACE TO BE
Looking forward, our economic outlook calls for continued growth. In our view,
with a strong economy, high-quality corporate bonds remain relatively secure
investments. We believe that overweighting high-quality corporates is a smart
way to enhance yields while maintaining a fairly conservative portfolio. It is
even possible that the Federal Reserve will lower the artificially high fed
funds rate, which could drive short-term rates lower. This may result in our
Fund realizing capital gains profits, further increasing our total return.
We see no real advantage to increasing the Fund's average maturity. By
investing a substantial portion of our assets in corporate paper, we believe
we can provide shareholders with relatively high yields while reducing our
interest-rate risk.
/1The/Fund's Classic Shares total return with a maximum 4.00% sales charge was
1.74% for the period.
/2The/Lipper Short Investment Grade Debt Index is comprised of managed funds
that invest at least 65% of their assets in investment grade debt issues
(rated in top four grades) with dollar-weighted average maturities of less
than three years.
* The composition of the Fund's holdings is subject to change.
-19-
<PAGE>
THE AMSOUTH LIMITED MATURITY FUND
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Merrill Lynch
AmSouth Limited 1-5 Year Government AmSouth Limited Lipper Short
Maturity Fund /Corporate Bond Maturity Fund Investment
(Classic Shares)* Index (Premier Shares) Grade Debt Index
<S> <C> <C> <C> <C>
1/1/89 9,600 10,000 10,000 10,000
89 10,256 10,783 10,687 10,640
90 10,953 11,608 11,413 11,443
91 11,946 12,786 12,447 12,455
92 13,318 14,373 13,877 13,829
93 14,213 15,397 14,810 14,765
94 14,323 15,670 14,924 15,082
95 15,419 16,925 16,066 16,093
96 16,149 17,842 16,827 16,976
97 17,321 19,266 18,048 18,190
98 17,977 20,006 18,740 18,727
7/1/98 18,329 20,505 19,119 19,230
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of 1 5 Inception
July 31, 1998 Year Year (2/1/89)
------------------------------------------------------------------------------
Classic* 1.74% 4.38% 6.59%
------------------------------------------------------------------------------
Premier 6.04% 5.25% 7.07%
------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
*Reflects 4.00% sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
The performance of the AmSouth Limited Maturity Fund is measured against the
Merrill Lynch 1-5-Year Government/Corporate Bond Index and the Lipper Short
Investment Grade Debt Index. The Merrill Lynch 1-5-Year Government/Corporate
Bond Index is an unmanaged index generally representative of the total return
of short-term government and corporate bonds. The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. However, the Lipper Short Investment
Grade Debt Index, a managed index, and the Fund's performance do reflect the
deduction of fees for these valued-added services. During the period shown,
the Fund waived fees for various expenses. Had these waivers not been in
place, performance quoted would have been lower.
-20-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND+, ++
The AmSouth Florida Tax-Free Fund is managed by Steven L. Cass, who assumed
management in February 1998. Mr. Cass has three years of experience as an
investment portfolio manager and holds a bachelor's degree in economics.
A SOLID STREAM OF TAX-FREE INCOME
For the 12 months ended July 31, 1998, the AmSouth Florida Tax-Free Fund
produced a total return of 4.46% (Classic Shares at NAV)./1/ In comparison,
the Merrill Lynch 3-7 Year Municipal Bond Index rose 4.80%. With the Fund
generally less volatile than either the stock market or the long-term taxable
bond market, shareholders were rewarded with current income that is exempt
from federal income taxes and Florida intangibles taxes.
OUR LONGER POSITIONS BOOSTED TOTAL RETURNS
The Fund's average maturity was long relative to our index throughout the
period. During that time, especially during the last eight months, interest
rates trended downward. Given our long position, we realized some capital
appreciation along with current income.
We continued to focus on quality issues that offered competitive yields. As
the economy has gotten stronger over the last several years, the credit
quality of Florida's municipalities has generally improved, which has narrowed
the spread between investment-grade issues and lower-rated paper. During the
last year, issuers were not paying a premium for taking on lower credit
quality. Therefore, we thought it prudent to focus on higher-rated, insured
issues.*
As of July 31, 1998, the securities within the Fund maintained an average
credit quality of AA1, with an average maturity of 5.9 years.*
THE FUND IS POSITIONED TO TAKE ADVANTAGE OF INTEREST-RATE MOVES
If the economy were to fall into a recession, lower-rated bonds could
significantly underperform; therefore, the high credit quality of our
portfolio offers some measure of protection while still providing tax-free
returns that are attractive by historical standards. Supply has been plentiful
in the Florida muni market. With the drop in interest rates over the last
year, many municipalities have been refunding old issues.
We are still slightly long compared to our index, which could produce some
capital appreciation if interest rates were to fall. At the same time, we are
not making big interest-rate bets one way or the other. With the higher coupon
issues in the portfolio, we feel protected to some degree if rates were to
creep back up again. Generally speaking, we are neutral for the short term,
and bullish for the long term. We believe rates will eventually fall again.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
++ The Fund may be subject to additional risk, since the companies it invests
in are located in one geographical location.
/1The/Fund's Classic Shares total return with a maximum 4.00% sales charge was
0.26% for the period.
* The composition of the Fund's holdings is subject to change.
-21-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
AmSouth Florida AmSouth Florida
Tax-Free Fund Merrill Lynch 3-7-Year Tax-Free Fund
Date (Classic Shares)* Municipal Bond Index (Premier Shares)
---- ----------------- ---------------------- ----------------
9/1/94 9,600 10,000 10,000
7/1/95 10,224 10,670 10,653
7/1/96 10,658 11,147 11,105
7/1/97 11,392 11,943 11,870
1/1/98 11,726 12,295 12,224
7/1/98 11,896 12,516 12,420
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of 1 Inception
July 31, 1998 Year (9/30/94)
- --------------------------------------------------------------------------------
Classic* 0.26% 4.63%
- --------------------------------------------------------------------------------
Premier 4.66% 5.82%
- --------------------------------------------------------------------------------
*Reflects a 4.00% sales charge.
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.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
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.
During the period shown, the Fund waived fees for various expenses. Had these
waivers not been in place, performance quoted would have been lower.
-22-
<PAGE>
THE AMSOUTH MUNICIPAL BOND FUND+
The AmSouth Municipal Bond Fund is managed by Dorothy Thomas, who has 15 years
of experience as an investment portfolio manager for municipal bond accounts,
personal trusts and endowments. Ms. Thomas holds an MBA and a bachelor's
degree in economics.
For the 12 months ended July 31, 1998, the Fund produced a total return of
4.30% (Classic Shares at NAV)./1/ In comparison, the Merrill Lynch 3-7 Year
Municipal Bond Index rose 4.80%, while the Lipper Intermediate Municipal Debt
Index gained 4.86%./2/
MUNICIPAL BONDS OFFERED STABLE RETURNS
The volatility in long-term interest rates during the period had only a modest
impact on the municipal bond market. Overall, the last year saw marked
stability in munis, especially in the intermediate range that we targeted.
This served the interests of our shareholders who seek relatively stable
elements in their portfolios.
We kept 53.8% of the portfolio, as of July 31, 1998, invested in bonds issued
within the state of Alabama, with the remainder invested in a diversified
portfolio of bonds from other states.* Although we have seen a significant
amount of supply in the national muni market, the Alabama market has had an
unusually small supply of new issuance.
THE STRONG ECONOMY HELPED MUNI BONDS
During the period, we strived to keep the portfolio's average maturity at
around 7 years, which we felt was an optimal position, given the climate of
benign inflation and stable interest rates.
We also saw the credit conditions for many issuers in our portfolio get
stronger during the period. The Southeast region, including Alabama, has been
characterized by stable growth in recent years, and municipalities generally
have benefited from the good economy, with increased cash flow and more sound
financial positions.*
As of July 31, 1998, the securities within the Fund maintained an average
credit quality of AA, with an average maturity of 6.3 years.
WE WILL MAINTAIN OUR FOCUS ON QUALITY
We expect quality spreads--the higher premiums paid for taking on riskier
debt--to remain narrow. We do not anticipate significantly higher yields for
AA bonds versus AAA paper, for example. Therefore, we will continue to pursue
higher rated issues. Although an economic slowdown may affect the muni market
eventually, tax revenues at the local and state levels should remain high in
the near term, which could help to preserve stability in our market.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
/1The/Fund's Classic Shares total return with a maximum 4.00% sales charge was
0.16% for the period.
/2The/Lipper Intermediate Municipal Debt Index is comprised of managed funds
that invest in municipal debt issues with dollar-weighted average
maturities.
* The composition of the Fund's holdings is subject to change.
-23-
<PAGE>
THE AMSOUTH MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Municipal Lipper Intermediate AmSouth Municipal
Bond Fund Merrill Lynch 3-7-Year Municipal Bond Fund
Date Classic Shares Municipal Bond Index Debt Index (Premier Shares)
---- ----------------- ---------------------- ------------------- -----------------
<S> <C> <C> <C> <C>
7/1/97 9,500 10,000 10,000 10,000
7/1/98 10,196 10,480 10,460 10,643
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
As of 1 Since
July 31, 1998 Year Inception
- --------------------------------------------------------------------------------
Classic* 0.16% 1.80%
- --------------------------------------------------------------------------------
Premier 4.49% 5.91%
- --------------------------------------------------------------------------------
*Reflects 4.00% sales charge.
PAST PERFORMANCE IS NOT INDICATIVE 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 THEIR ORIGINAL COST.
Effective September 2, 1997, the Funds existing shares, which were previously
unclassified were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
The AmSouth Municipal Bond Fund's performance is measured against the Merrill
Lynch 3-7 Year Municipal Bond Index, an unmanaged index that is generally
representative of municipal bonds with intermediate maturities. The Fund's
performance is also measured against the Lipper Intermediate Municipal Debt
Funds Index. The Merrill Lynch 3-7-Year Municipal Bond Index does not reflect
the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. However, the Lipper Intermediate
Municipal Debt Funds Index, a managed index, and the Fund's performance do
reflect the deduction of fees for these value-added services. During the
period shown, the Fund waived fees for various expenses. Had these waivers not
been in place, performance quoted would have been lower.
-24-
<PAGE>
THE AMSOUTH MONEY MARKET FUNDS
The AmSouth Money Market Funds are managed by John Boston, CFA. Mr. Boston has
nine years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
A FAVORABLE ENVIRONMENT FOR MONEY MARKET FUNDS
During the 12 months ended July 31, 1998, the Federal Reserve Board declined
to take direct action to raise or lower the benchmark fed funds rate. At the
same time, market forces drove long-term rates sharply lower, resulting in a
flat yield curve and making the types of short-maturity securities favored by
the Funds very attractive on a relative basis.
There was little change on the inflation front: It continued to be unusually
benign throughout the 12-month period. Consequently, shareholders enjoyed
"real returns" (total returns minus inflation) that were historically
generous. This was achieved while the Funds continued to focus on purchasing
only the highest-quality securities.
As of July 31, 1998, the Prime Obligations Fund's average maturity was 63
days, compared to 49 days on January 31, 1998, and 48 days on July 31, 1997.*
As of July 31, 1998, the U.S. Treasury Fund's average maturity was 48 days,
compared to about 46 days on January 31, 1998, and 45 days on July 31, 1997.*
As of July 31, 1998, the Tax-Exempt Fund's+ average maturity was 81 days,
compared to about 46 days on January 31, 1998, and 63 days on July 31, 1997.*
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.
Yields will fluctuate, and there is no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
* The composition of the Fund's holdings is subject to change.
-25-
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of AmSouth Mutual Funds
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and related statements of operations,
of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Regional Equity Fund, the
Equity Fund, the Equity Income Fund, the Capital Growth Fund, the Small Cap
Fund, the Balanced Fund, the Bond Fund, the Government Income Fund, the Limited
Maturity Fund, the Florida Tax-Free Fund, the Municipal Bond Fund, the Prime
Obligations Fund, the U.S. Treasury Fund, and the Tax-Exempt Fund of the
AmSouth Mutual Funds, at July 31, 1998, the results of each of their operations
for the period then ended, the changes in each of their net assets for the
periods presented and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the AmSouth Mutual Funds'
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at July 31, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
September 18, 1998
Columbus, Ohio
-26-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1998
(Amount in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
REGIONAL EQUITY
EQUITY EQUITY INCOME
FUND FUND FUND
-------- ---------- -------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $96,315; $693,045
and $40,924, respectively)..................... $139,231 $1,024,129 $42,661
Interest and dividends receivable............... 169 1,892 144
Receivable for capital shares issued............ 6 81 46
Receivable from brokers for investments sold.... 356 4,636 --
Prepaid expenses and other assets............... 25 30 34
-------- ---------- -------
Total Assets................................. 139,787 1,030,768 42,885
-------- ---------- -------
LIABILITIES:
Cash overdraft.................................. -- 6 --
Payable for capital shares redeemed............. 44 263 16
Dividends payable............................... -- 953 84
Payable to brokers for investments purchased.... -- -- 225
Accrued expenses and other payables:
Investment advisory fees....................... 107 743 30
Administration fees............................ 3 23 1
Shareholder servicing (Classic Shares) fees.... 10 16 6
12b-1 (B Shares) fees.......................... 2 7 7
Accounting fees................................ -- 3 --
Transfer agent fees............................ 5 22 2
Custodian fees................................. 1 5 --
Other.......................................... 8 58 8
-------- ---------- -------
Total Liabilities............................ 180 2,099 379
-------- ---------- -------
NET ASSETS:
Capital......................................... 89,546 597,389 39,893
Undistributed (distributions in excess of) net
investment income.............................. (1) (14) 1
Net unrealized appreciation (depreciation) from
investments.................................... 42,916 331,084 1,737
Accumulated undistributed net realized gains
(losses) from investment transactions.......... 7,146 100,210 875
-------- ---------- -------
Net Assets................................... $139,607 $1,028,669 $42,506
======== ========== =======
Net Assets
Classic Shares................................. $ 42,700 $ 73,165 $26,686
Premier Shares................................. 94,909 947,575 8,087
B Shares....................................... 1,998 7,929 7,733
-------- ---------- -------
Total........................................ $139,607 $1,028,669 $42,506
======== ========== =======
Outstanding units of beneficial interest
(shares)
Classic Shares................................. 1,571 2,974 2,244
Premier Shares................................. 3,489 38,563 680
B Shares....................................... 74 323 652
-------- ---------- -------
Total........................................ 5,134 41,860 3,576
======== ========== =======
Net asset value
Classic Shares--redemption price per share..... $ 27.18 $ 24.60 $ 11.89
======== ========== =======
Premier Shares--offering and redemption price
per share..................................... $ 27.20 $ 24.57 $ 11.89
======== ========== =======
B Shares*--offering price per share............ $ 27.05 $ 24.55 $ 11.86
======== ========== =======
Maximum sales charge (Classic Shares)........... 4.50% 4.50% 4.50%
-------- ---------- -------
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to the
nearest cent) per share (Classic Shares)....... $ 28.46 $ 25.76 $ 12.45
======== ========== =======
</TABLE>
- --------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-27-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1998
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
CAPITAL SMALL
GROWTH CAP BALANCED
FUND FUND FUND
------- ------ --------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $13,851; $7,381 and
$304,301, respectively)............................ $15,161 $7,301 $378,693
Cash................................................ 810 -- --
Interest and dividends receivable................... 9 2 3,302
Receivable for capital shares issued................ 45 10 110
Receivable from brokers for investments sold........ -- -- 905
Prepaid expenses and other assets................... 25 16 9
------- ------ --------
Total Assets..................................... 16,050 7,329 383,019
------- ------ --------
LIABILITIES:
Payable for capital shares redeemed................. 6 -- 71
Dividends payable................................... -- -- 866
Accrued expenses and other payables:
Investment advisory fees........................... 11 8 275
Administration fees................................ -- -- 8
Shareholder servicing (Classic Shares) fees........ 2 -- 10
12b-1 (B Shares) fees.............................. 3 1 4
Accounting fees.................................... -- -- 1
Transfer agent fees................................ 1 -- 9
Custodian fees..................................... -- -- 2
Other.............................................. 6 5 24
------- ------ --------
Total Liabilities................................ 29 14 1,270
------- ------ --------
NET ASSETS:
Capital............................................. 14,572 7,975 280,034
Undistributed (distributions in excess of) net
investment income.................................. -- (1) 340
Net unrealized appreciation (depreciation) from
investments........................................ 1,310 (80) 74,392
Accumulated undistributed net realized gains
(losses) from investment transactions.............. 139 (579) 26,983
------- ------ --------
Net Assets....................................... $16,021 $7,315 $381,749
======= ====== ========
Net Assets
Classic Shares..................................... $ 9,720 $1,372 $ 46,814
Premier Shares..................................... 2,824 5,072 329,626
B Shares........................................... 3,477 871 5,309
------- ------ --------
Total............................................ $16,021 $7,315 $381,749
======= ====== ========
Outstanding units of beneficial interest (shares)
Classic Shares..................................... 837 150 3,083
Premier Shares..................................... 242 554 21,712
B Shares........................................... 301 96 350
------- ------ --------
Total............................................ 1,380 800 25,145
======= ====== ========
Net asset value
Classic Shares--redemption price per share......... $ 11.62 $ 9.14 $ 15.19
======= ====== ========
Premier Shares--offering and redemption price per
share............................................. $ 11.65 $ 9.15 $ 15.18
======= ====== ========
B Shares*--offering price per share................ $ 11.54 $ 9.11 $ 15.16
======= ====== ========
Maximum sales charge (Classic Shares)............... 4.50% 4.50% 4.50%
------- ------ --------
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to the nearest
cent) per share (Classic Shares)................... $ 12.17 $ 9.57 $ 15.91
======= ====== ========
</TABLE>
- --------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-28-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1998
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
FLORIDA
GOVERNMENT LIMITED TAX- MUNICIPAL
BOND INCOME MATURITY FREE BOND
FUND FUND FUND FUND FUND
-------- ---------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$320,968; $10,452;
$107,181; $61,594 and
$315,121, respectively).... $333,927 $10,690 $108,906 $63,523 $325,236
Interest and dividends
receivable................. 5,793 96 2,192 774 5,223
Receivable for capital
shares issued.............. 89 -- -- -- --
Receivable from brokers for
investments sold........... 2,925 -- -- -- --
Prepaid expenses and other
assets..................... 8 3 3 2 8
-------- ------- -------- ------- --------
Total Assets............. 342,742 10,789 111,101 64,299 330,467
-------- ------- -------- ------- --------
LIABILITIES:
Payable for capital shares
redeemed................... 24 32 9 -- --
Dividends payable........... 1,665 52 548 237 1,165
Payable to brokers for
investments purchased...... 5,464 -- -- -- --
Accrued expenses and other
payables:
Investment advisory fees... 147 3 49 17 115
Administration fees........ 4 -- 1 1 4
Shareholder servicing
(Classic Shares) fees..... 1 1 -- 1 --
Accounting fees............ 1 -- -- -- 1
Transfer agent fees........ 7 1 2 1 6
Custodian fees............. 2 -- 1 -- 2
Other...................... 23 3 7 10 21
-------- ------- -------- ------- --------
Total Liabilities........ 7,338 92 617 267 1,314
-------- ------- -------- ------- --------
NET ASSETS:
Capital..................... 320,396 10,867 110,050 61,902 316,197
Undistributed (distributions
in excess of) net
investment income.......... 273 3 63 (1) --
Net unrealized appreciation
(depreciation) from
investments................ 12,959 238 1,725 1,929 10,115
Accumulated undistributed
net realized gains (losses)
from investment
transactions............... 1,776 (411) (1,354) 202 2,841
-------- ------- -------- ------- --------
Net Assets............... $335,404 $10,697 $110,484 $64,032 $329,153
======== ======= ======== ======= ========
Net Assets
Classic Shares............. $ 7,032 $ 8,176 $ 3,531 $ 8,663 $ 2,689
Premier Shares............. 327,930 2,521 106,953 55,369 326,464
B Shares................... 442 -- -- -- --
-------- ------- -------- ------- --------
Total.................... $335,404 $10,697 $110,484 $64,032 $329,153
======== ======= ======== ======= ========
Outstanding units of
beneficial interest
(shares)
Classic Shares............. 636 829 338 829 266
Premier Shares............. 29,667 255 10,253 5,295 32,204
B Shares................... 40 -- -- -- --
-------- ------- -------- ------- --------
Total.................... 30,343 1,084 10,591 6,124 32,470
======== ======= ======== ======= ========
Net asset value
Classic Shares--redemption
price per share........... $ 11.05 $ 9.88 $ 10.43 $ 10.45 $ 10.13
======== ======= ======== ======= ========
Premier Shares--offering
and redemption price per
share..................... $ 11.05 $ 9.87 $ 10.43 $ 10.46 $ 10.14
======== ======= ======== ======= ========
B Shares*--offering price
per share................. $ 11.04 -- -- -- --
======== ======= ======== ======= ========
Maximum sales charge
(Classic Shares)........... 4.00% 4.00% 4.00% 4.00% 4.00%
-------- ------- -------- ------- --------
Maximum offering price
(100%/(100%-maximum sales
charge) of net asset value
adjusted to the nearest
cent) per share (Classic
Shares).................... $ 11.51 $ 10.29 $ 10.86 $ 10.89 $ 10.55
======== ======= ======== ======= ========
</TABLE>
- --------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-29-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1998
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
PRIME U.S. TAX-
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- -------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost................... $499,582 $236,347 $90,325
Repurchase agreements, at cost................... 104,262 123,200 --
-------- -------- -------
Total investments............................... 603,844 359,547 90,325
Interest receivable.............................. 901 2,019 680
Prepaid expenses and other assets................ 14 7 1
-------- -------- -------
Total Assets.................................. 604,759 361,573 91,006
-------- -------- -------
LIABILITIES:
Dividends payable................................ 2,501 1,287 234
Payable to brokers for investments purchased..... 5,028 -- --
Accrued expenses and other payables:
Investment advisory fees........................ 202 112 16
Administration fees............................. 13 8 2
Shareholder servicing (Classic Shares) fees..... 10 1 2
Accounting fees................................. 2 1 --
Transfer agent fees............................. 12 7 2
Custodian fees.................................. 3 2 1
Other........................................... 53 30 8
-------- -------- -------
Total Liabilities............................. 7,824 1,448 265
-------- -------- -------
NET ASSETS:
Capital.......................................... 596,944 360,117 90,743
Undistributed (distributions in excess of) net
investment income............................... -- 7 --
Accumulated undistributed net realized gains
(losses) from investment transactions........... (9) 1 (2)
-------- -------- -------
Net Assets.................................... $596,935 $360,125 $90,741
======== ======== =======
Net Assets
Classic Shares.................................. $116,960 $ 8,070 $28,657
Premier Shares.................................. 479,974 352,055 62,084
B Shares........................................ 1 -- --
-------- -------- -------
Total......................................... $596,935 $360,125 $90,741
======== ======== =======
Outstanding units of beneficial interest (shares)
Classic Shares.................................. 116,967 8,069 28,658
Premier Shares.................................. 479,990 352,047 62,085
B Shares........................................ 1 -- --
-------- -------- -------
Total......................................... 596,958 360,116 90,743
======== ======== =======
Net asset value--offering and redemption price
per share
Classic Shares.................................. $ 1.00 $ 1.00 $ 1.00
======== ======== =======
Premier Shares.................................. $ 1.00 $ 1.00 $ 1.00
======== ======== =======
B Shares*....................................... $ 1.00 $ -- $ --
======== ======== =======
</TABLE>
- --------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-30-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
REGIONAL EQUITY
EQUITY EQUITY INCOME
FUND FUND FUND
-------- -------- ------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................................... $ -- $ 420 $ 168
Dividend income..................................... 2,406 22,664 991
------- -------- ------
Total Income...................................... 2,406 23,084 1,159
------- -------- ------
EXPENSES:
Investment advisory fees............................ 1,264 7,982 268
Administration fees................................. 316 1,995 67
Shareholder servicing fees (Classic Shares)......... 115 145 56
12b-1 fees (B Shares)............................... 11 33 35
Accounting fees..................................... 73 326 57
Transfer agent fees................................. 47 228 28
Custodian fees...................................... 10 58 --
Legal and audit fees................................ 22 107 7
Trustee fees and expenses........................... 3 16 1
Registration and filing fees........................ 19 109 23
Printing fees....................................... 19 84 14
Organizational costs................................ -- -- 3
Other............................................... 8 19 1
------- -------- ------
Total Expenses.................................... 1,907 11,102 560
Expenses voluntarily reduced or reimbursed.......... (21) (20) (71)
------- -------- ------
Net Expenses...................................... 1,886 11,082 489
------- -------- ------
Net Investment Income............................... 520 12,002 670
------- -------- ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment
transactions....................................... 8,874 124,775 1,649
Net change in unrealized appreciation (depreciation)
from investments................................... (9,341) (21,447) (405)
------- -------- ------
Net realized/unrealized gains (losses) from
investments........................................ (467) 103,328 1,244
------- -------- ------
Change in net assets resulting from operations...... $ 53 $115,330 $1,914
======= ======== ======
</TABLE>
See notes to financial statements.
-31-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
CAPITAL SMALL
GROWTH CAP BALANCED
FUND (A) FUND (B) FUND
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................................... $ -- $ 7 $ 10,620
Dividend income.................................... 87 19 4,543
------ ----- --------
Total Income..................................... 87 26 15,163
------ ----- --------
EXPENSES:
Investment advisory fees........................... 71 33 3,006
Administration fees................................ 18 6 751
Shareholder servicing fees (Classic Shares)........ 12 1 114
12b-1 fees (B Shares).............................. 16 2 21
Accounting fees.................................... 56 51 146
Transfer agent fees................................ 28 13 88
Custodian fees..................................... 1 -- 25
Legal and audit fees............................... 4 3 52
Trustee fees and expenses.......................... -- -- 7
Registration and filing fees....................... 12 4 17
Printing fees...................................... 1 2 37
Organizational costs............................... 3 1 --
Other.............................................. 3 2 15
------ ----- --------
Total Expenses................................... 225 118 4,279
Expenses voluntarily reduced or reimbursed......... (99) (73) (20)
------ ----- --------
Net Expenses..................................... 126 45 4,259
------ ----- --------
Net Investment Income.............................. (39) (19) 10,904
------ ----- --------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment
transactions...................................... 177 (579) 36,908
Net change in unrealized appreciation
(depreciation) from investments................... 1,310 (80) (13,602)
------ ----- --------
Net realized/unrealized gains (losses) from
investments....................................... 1,487 (659) 23,306
------ ----- --------
Change in net assets resulting from operations..... $1,448 $(678) $ 34,210
====== ===== ========
</TABLE>
- --------
(a) For the period from August 3, 1997 (commencement of operations) through
July 31, 1998.
(b) For the period from March 2, 1998 (commencement of operations) through July
31, 1998.
See notes to financial statements.
-32-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
GOVERNMENT LIMITED FLORIDA MUNICIPAL
BOND INCOME MATURITY TAX-FREE BOND
FUND FUND FUND FUND FUND
------- ---------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income................ $20,211 $ 694 $7,597 $2,665 $16,022
Dividend income................ 208 13 61 53 227
------- ----- ------ ------ -------
Total Income................. 20,419 707 7,658 2,718 16,249
------- ----- ------ ------ -------
EXPENSES:
Investment advisory fees....... 2,056 69 774 369 2,170
Administration fees............ 633 21 238 114 668
Shareholder servicing fees
(Classic Shares).............. 16 21 8 14 5
12b-1 fees (B Shares).......... 2 -- -- -- --
Accounting fees................ 129 49 55 59 128
Transfer agent fees............ 61 20 23 20 64
Custodian fees................. 20 1 6 3 20
Legal and audit fees........... 39 3 10 9 40
Trustee fees and expenses...... 6 -- 2 1 8
Registration and filing fees... 58 4 29 2 96
Printing fees.................. 27 2 11 -- 18
Other.......................... 7 1 6 3 13
------- ----- ------ ------ -------
Total Expenses............... 3,054 191 1,162 594 3,230
Expenses voluntarily reduced or
reimbursed.................... (757) (116) (289) (311) (1,115)
------- ----- ------ ------ -------
Net Expenses................. 2,297 75 873 283 2,115
------- ----- ------ ------ -------
Net Investment Income.......... 18,122 632 6,785 2,435 14,134
------- ----- ------ ------ -------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses)
from investment transactions.. 3,531 145 847 418 3,647
Net change in unrealized
appreciation (depreciation)
from investments.............. 1,192 2 (738) (353) (3,346)
------- ----- ------ ------ -------
Net realized/unrealized gains
(losses) from investments..... 4,723 147 109 65 301
------- ----- ------ ------ -------
Change in net assets resulting
from operations............... $22,845 $ 779 $6,894 $2,500 $14,435
======= ===== ====== ====== =======
</TABLE>
See notes to financial statements.
-33-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended July 31, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRIME U.S. TAX-
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- ------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................... $35,683 $16,854 $3,164
------- ------- ------
Total Income.................................. 35,683 16,854 3,164
------- ------- ------
EXPENSES:
Investment advisory fees.......................... 2,516 1,256 354
Administration fees............................... 1,258 628 177
Shareholder servicing fees (Classic Shares)....... 305 19 58
Accounting fees................................... 216 108 55
Transfer agent fees............................... 126 68 20
Custodian fees.................................... 43 17 6
Legal and audit fees.............................. 84 46 13
Trustee fees and expenses......................... 12 6 1
Registration and filing fees...................... 29 12 9
Printing fees..................................... 73 26 8
Other............................................. 21 35 4
------- ------- ------
Total Expenses................................ 4,683 2,221 705
Expenses voluntarily reduced...................... (203) (21) (237)
------- ------- ------
Net Expenses.................................. 4,480 2,200 468
------- ------- ------
Net Investment Income............................. 31,203 14,654 2,696
------- ------- ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment
transactions..................................... -- 7 --
------- ------- ------
Net realized/unrealized gains (losses) from
investments...................................... -- 7 --
------- ------- ------
Change in net assets resulting from operations.... $31,203 $14,661 $2,696
======= ======= ======
</TABLE>
See notes to financial statements.
-34-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
REGIONAL EQUITY EQUITY INCOME
FUND EQUITY FUND FUND
------------------ -------------------- ------------------
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1998 1997 1998 1997 1998 1997 (A)
-------- -------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 520 $ 1,178 $ 12,002 $ 7,079 $ 670 $ 96
Net realized gains
(losses) from invest-
ment transactions..... 8,874 4,481 124,775 31,338 1,649 248
Net change in
unrealized
appreciation
(depreciation) from
investments........... (9,341) 34,116 (21,447) 151,828 (405) 2,142
-------- -------- ---------- -------- ------- -------
Change in net assets
resulting from
operations............. 53 39,775 115,330 190,245 1,914 2,486
-------- -------- ---------- -------- ------- -------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment in-
come.................. (133) (1,196) (1,668) (7,031) (500) (81)
In excess of net in-
vestment income....... (8) -- (1) -- (2) --
From net realized gains
from investment trans-
actions............... (1,577) (2,315) (3,043) (21,737) (763) --
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:*
From net investment in-
come.................. (390) -- (10,624) -- (132) --
In excess of net in-
vestment income....... (18) -- (13) -- -- --
From net realized gains
from investment trans-
actions............... (3,440) -- (47,629) -- (189) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:**
From net investment in-
come.................. (1) -- (18) -- (53) --
From net realized gains
from investment trans-
actions............... (26) -- (85) -- (67) --
-------- -------- ---------- -------- ------- -------
Change in net assets
from shareholder dis-
tributions............. (5,593) (3,511) (63,081) (28,768) (1,706) (81)
-------- -------- ---------- -------- ------- -------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 31,703 34,563 190,614 556,310 25,509 20,123
Dividends reinvested... 3,015 1,945 15,125 14,093 1,376 37
Cost of shares re-
deemed................ (39,409) (16,518) (204,304) (131,517) (6,860) (292)
-------- -------- ---------- -------- ------- -------
Change in net assets
from share
transactions........... (4,691) 19,990 1,435 438,886 20,025 19,868
-------- -------- ---------- -------- ------- -------
Change in net assets.... (10,231) 56,254 53,684 600,363 20,233 22,273
NET ASSETS:
Beginning of period.... 149,838 93,584 974,985 374,622 22,273 --
-------- -------- ---------- -------- ------- -------
End of period.......... $139,607 $149,838 $1,028,669 $974,985 $42,506 $22,273
======== ======== ========== ======== ======= =======
SHARE TRANSACTIONS:
Issued................. 1,076 1,439 8,021 26,434 2,121 1,923
Reinvested............. 105 84 664 773 118 4
Redeemed............... (1,354) (683) (8,575) (6,713) (563) (27)
-------- -------- ---------- -------- ------- -------
Change in shares........ (173) 840 110 20,494 1,676 1,900
======== ======== ========== ======== ======= =======
</TABLE>
- --------
(a) For the period from March 20, 1997 (commencement of operations) through
July 31, 1997.
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
** For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
See notes to financial statements.
-35-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
CAPITAL GROWTH SMALL CAP
FUND FUND BALANCED FUND
-------------- --------- --------------------
PERIOD PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
1998 (A) 1998 (B) 1998 1997
-------------- --------- --------- ---------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.......... $ (39) $ (19) $ 10,904 $ 12,452
Net realized gains (losses)
from investment transactions.. 177 (579) 36,908 16,168
Net change in unrealized appre-
ciation (depreciation) from
investments................... 1,310 (80) (13,602) 55,439
------- ------ --------- ---------
Change in net assets resulting
from operations................ 1,448 (678) 34,210 84,059
------- ------ --------- ---------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment income..... -- -- (2,131) (13,031)
From net realized gains from
investment transactions....... -- -- (3,102) (15,072)
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:*
From net investment income..... -- -- (8,628) --
In excess of net investment in-
come.......................... -- -- (1) --
Tax return of capital.......... -- (1) -- --
From net realized gains from
investment transactions....... -- -- (19,894) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:**
From net investment income..... -- -- (43) --
From net realized gains from
investment transactions....... -- -- (71) --
------- ------ --------- ---------
Change in net assets from
shareholder distributions...... -- (1) (33,870) (28,103)
------- ------ --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.... 15,506 8,135 96,873 79,422
Dividends reinvested........... -- -- 22,522 20,289
Cost of shares redeemed........ (933) (141) (110,755) (121,323)
------- ------ --------- ---------
Change in net assets from share
transactions................... 14,573 7,994 8,640 (21,612)
------- ------ --------- ---------
Change in net assets............ 16,021 7,315 8,980 34,344
NET ASSETS:
Beginning of period............ -- -- 372,769 338,425
------- ------ --------- ---------
End of period.................. $16,021 $7,315 $ 381,749 $ 372,769
======= ====== ========= =========
SHARE TRANSACTIONS:
Issued......................... 1,467 815 6,447 5,836
Reinvested..................... -- -- 1,540 1,523
Redeemed....................... (87) (15) (7,345) (8,820)
------- ------ --------- ---------
Change in shares................ 1,380 800 642 (1,461)
======= ====== ========= =========
</TABLE>
- --------
(a) For the period from August 3, 1997 (commencement of operations) through
July 31, 1998.
(b) For the period from March 2, 1998 (commencement of operations) through
July 31, 1998.
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
** The Capital Growth, Small Cap and Balanced Funds' Class B Shares commenced
operations on September 3, 1997, March 2, 1998 and September 2, 1997,
respectively.
See notes to financial statements.
-36-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
GOVERNMENT LIMITED
BOND FUND INCOME FUND MATURITY FUND
------------------ ------------------ ------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1998 1997 1998 1997 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 18,122 $ 9,088 $ 632 $ 829 $ 6,785 $ 2,797
Net realized gains
(losses) from
investment
transactions.......... 3,531 (340) 145 41 847 (639)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 1,192 10,605 2 483 (738) 2,509
-------- -------- ------- ------- -------- --------
Change in net assets
resulting from
operations............. 22,845 19,353 779 1,353 6,894 4,667
-------- -------- ------- ------- -------- --------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment
income................ (1,784) (9,548) (513) (829) (794) (2,942)
In excess of net
investment income..... -- -- (48) -- -- --
From net realized gains
from investment
transactions.......... (18) -- -- -- -- --
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:*
From net investment
income................ (16,698) -- (57) -- (6,023) --
In excess of net
investment income..... -- -- (15) -- -- --
From net realized gains
from investment
transactions.......... (788) -- -- -- -- --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:**
From net investment
income................ (9) -- -- -- -- --
-------- -------- ------- ------- -------- --------
Change in net assets
from shareholder
distributions.......... (19,297) (9,548) (633) (829) (6,817) (2,942)
-------- -------- ------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 99,873 201,871 3,053 1,446 20,184 115,330
Dividends reinvested... 5,321 5,240 320 412 633 865
Cost of shares
redeemed.............. (85,219) (37,772) (4,444) (6,512) (49,085) (25,250)
-------- -------- ------- ------- -------- --------
Change in net assets
from share
transactions........... 19,975 169,339 (1,071) (4,654) (28,268) 90,945
-------- -------- ------- ------- -------- --------
Change in net assets.... 23,523 179,144 (925) (4,130) (28,191) 92,670
NET ASSETS:
Beginning of period.... 311,881 132,737 11,622 15,752 138,675 46,005
-------- -------- ------- ------- -------- --------
End of period.......... $335,404 $311,881 $10,697 $11,622 $110,484 $138,675
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
Issued................. 9,081 18,995 310 153 1,930 11,205
Reinvested............. 485 494 33 43 61 84
Redeemed............... (7,771) (3,539) (451) (680) (4,702) (2,449)
-------- -------- ------- ------- -------- --------
Change in shares........ 1,795 15,950 (108) (484) (2,711) 8,840
======== ======== ======= ======= ======== ========
</TABLE>
- --------
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
** The Bond Fund's Class B Shares commenced operations on September 16, 1997.
See notes to financial statements.
-37-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
FLORIDA TAX-
FREE FUND MUNICIPAL BOND FUND
------------------ --------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
1998 1997 1998 1997 (A)
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............... $ 2,435 $ 2,278 $ 14,134 $ 1,196
Net realized gains (losses) from in-
vestment transactions.............. 418 135 3,647 21
Net change in unrealized
appreciation (depreciation) from
investments........................ (353) 1,102 (3,346) 5,152
-------- ------- --------- ---------
Change in net assets resulting from
operations........................... 2,500 3,515 14,435 6,369
-------- ------- --------- ---------
DISTRIBUTIONS TO CLASSIC SHAREHOLDERS:
From net investment income.......... (413) (2,402) (1,218) (1,196)
In excess of net investment income.. -- -- -- (5)
From net realized gains from invest-
ment transactions.................. (25) (74) (5) --
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:*
From net investment income.......... (2,016) -- (12,911) --
In excess of net investment income.. (1) -- (6) --
From net realized gains from invest-
ment transactions.................. (322) -- (816) --
-------- ------- --------- ---------
Change in net assets from shareholder
distributions........................ (2,777) (2,476) (14,956) (1,201)
-------- ------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued......... 24,956 12,780 54,703 342,930
Dividends reinvested................ 218 213 100 --
Cost of shares redeemed............. (14,553) (9,213) (63,062) (10,165)
-------- ------- --------- ---------
Change in net assets from share
transactions......................... 10,621 3,780 (8,259) 332,765
-------- ------- --------- ---------
Change in net assets.................. 10,344 4,819 (8,780) 337,933
NET ASSETS:
Beginning of period................. 53,688 48,869 337,933 --
-------- ------- --------- ---------
End of period....................... $ 64,032 $53,688 $ 329,153 $ 337,933
======== ======= ========= =========
SHARE TRANSACTIONS:
Issued.............................. 2,383 1,240 5,391 34,283
Reinvested.......................... 21 21 10 --
Redeemed............................ (1,392) (894) (6,210) (1,004)
-------- ------- --------- ---------
Change in shares...................... 1,012 367 (809) 33,279
======== ======= ========= =========
</TABLE>
- --------
(a) For the period from July 1, 1997 (commencement of operations) through July
31, 1997.
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
See notes to financial statements.
-38-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND U.S. TREASURY FUND TAX-EXEMPT FUND
------------------------ -------------------- --------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1998 1997 1998 1997 1998 1997
----------- ----------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 31,203 $ 28,798 $ 14,654 $ 15,237 $ 2,696 $ 2,474
Net realized gains
(losses) from invest-
ment transactions..... -- -- 7 -- -- (2)
----------- ----------- --------- --------- --------- ---------
Change in net assets
resulting from
operations............. 31,203 28,798 14,661 15,237 2,696 2,472
----------- ----------- --------- --------- --------- ---------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment in-
come.................. (5,957) (5,860) (350) (497) (691) (605)
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:
From net investment in-
come.................. (25,246) (22,938) (14,304) (14,740) (2,005) (1,869)
----------- ----------- --------- --------- --------- ---------
Change in net assets
from shareholder
distributions.......... (31,203) (28,798) (14,654) (15,237) (2,696) (2,474)
----------- ----------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 1,553,766 1,618,418 969,887 861,771 225,711 201,701
Dividends reinvested... 7,810 7,378 737 876 698 590
Cost of shares re-
deemed................ (1,492,634) (1,701,420) (929,752) (923,826) (219,023) (179,661)
----------- ----------- --------- --------- --------- ---------
Change in net assets
from share
transactions........... 68,942 (75,624) 40,872 (61,179) 7,386 22,630
----------- ----------- --------- --------- --------- ---------
Change in net assets.... 68,942 (75,624) 40,879 (61,179) 7,386 22,628
NET ASSETS:
Beginning of period.... 527,993 603,617 319,246 380,425 83,355 60,727
----------- ----------- --------- --------- --------- ---------
End of period.......... $ 596,935 $ 527,993 $ 360,125 $ 319,246 $ 90,741 $ 83,355
=========== =========== ========= ========= ========= =========
SHARE TRANSACTIONS:
Issued................. 1,553,766 1,618,418 969,887 861,771 225,711 201,701
Reinvested............. 7,810 7,378 737 876 698 590
Redeemed............... (1,492,634) (1,701,420) (929,752) (923,826) (219,023) (179,661)
----------- ----------- --------- --------- --------- ---------
Change in shares........ 68,942 (75,624) 40,872 (61,179) 7,386 22,630
=========== =========== ========= ========= ========= =========
</TABLE>
See notes to financial statements.
-39-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- ------------------------------------------------------------ --------
<C> <S> <C>
COMMON STOCKS (97.7%):
Air Freight (2.6%):
60,000 Federal Express Corp. (b)................................... $ 3,641
--------
Apparel (4.0%):
170,000 Russell Corp. .............................................. 5,557
--------
Automotive Parts (4.2%):
105,000 Discount Auto Parts, Inc. (b)............................... 2,678
90,000 Genuine Parts Co. .......................................... 3,121
--------
5,799
--------
Banking (9.8%):
85,000 First American Corp.-Tenn................................... 3,995
90,000 First Tennessee National Corp. ............................. 2,824
60,000 First Union Corp. .......................................... 3,615
40,000 NationsBank Corp. .......................................... 3,190
--------
13,624
--------
Building Materials (2.6%):
220,000 Interface, Inc. ............................................ 3,603
--------
Chemicals--Speciality (1.1%):
300,000 Ethyl Corp. ................................................ 1,575
--------
Construction--Manufactured Homes (2.8%):
215,000 Clayton Homes, Inc. ........................................ 3,857
--------
Diversified Manufacturing (0.3%):
25,000 Walter Industries, Inc. (b)................................. 425
--------
Electrical & Electronic (3.5%):
205,000 Scientific-Atlanta, Inc. ................................... 4,933
--------
Food Processing & Packaging (4.9%):
200,000 Flowers Industries, Inc. ................................... 3,687
165,000 Lance, Inc. ................................................ 3,120
--------
6,807
--------
Forest & Paper Products (3.5%):
80,000 Caraustar Industries, Inc. ................................. 2,185
80,000 Fort James Corp. ........................................... 2,700
--------
4,885
--------
Furniture (2.5%):
100,000 Heilig-Myers Co. ........................................... 1,313
90,000 Winsloew Furniture, Inc. (b)................................ 2,137
--------
3,450
--------
Insurance (3.2%):
85,000 Equifax, Inc. .............................................. 3,474
70,000 Vesta Insurance Group, Inc. ................................ 1,050
--------
4,524
--------
Manufacturing (3.0%):
120,000 Wolverine Tube, Inc. (b).................................... 4,170
--------
Medical Services (14.8%):
240,000 Coventry Health Care, Inc. (b).............................. 1,725
341,718 Health Management Assoc., Inc., Class A (b)................. 8,029
380,000 HEALTHSOUTH Corp. (b)....................................... 9,547
300,000 MedPartners, Inc. (b)....................................... 1,538
--------
20,839
--------
Oil & Gas Exploration, Production, & Services (2.9%):
61,000 Burlington Resources, Inc. ................................. 2,211
26,000 Mobil Corp. ................................................ 1,814
--------
4,025
--------
Oilfield Equipment & Services (2.8%):
30,000 Camco International, Inc. .................................. 2,130
165,000 Offshore Logistics, Inc. (b)................................ 1,794
--------
3,924
--------
Printing (1.1%):
100,000 John H. Harland Co. ........................................ 1,575
--------
Railroads (1.9%):
90,000 Norfolk Southern Corp. ..................................... 2,689
--------
Restaurants (2.8%):
130,000 Cracker Barrel Old Country Store, Inc. ..................... 3,933
--------
Retail (7.3%):
200,000 Books-A-Million, Inc. (b)................................... 988
265,000 Hancock Fabrics, Inc. ...................................... 2,716
110,000 Office Depot, Inc. (b)...................................... 3,575
270,000 Stein-Mart, Inc. (b)........................................ 2,852
--------
10,131
--------
Steel (2.8%):
125,000 Birmingham Steel Corp. ..................................... 1,305
60,000 Nucor Corp. ................................................ 2,610
--------
3,915
--------
</TABLE>
Continued
-40-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- ------------------------------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Temporary Services (2.1%):
125,000 AccuStaff, Inc. (b)......................................... $ 2,953
--------
Transportation Leasing & Trucking (1.9%):
90,000 Ryder System, Inc. ......................................... 2,610
--------
Transportation--Marine (1.2%):
60,000 Tidewater, Inc. ............................................ 1,740
--------
Utilities--Electric & Gas (5.2%):
90,000 Florida Progress Corp. ..................................... 3,499
145,000 Southern Co. ............................................... 3,697
--------
7,196
--------
Utilities--Telecommunications (2.9%):
60,000 BellSouth Corp. ............................................ 4,099
--------
Total Common Stocks 136,479
INVESTMENT COMPANIES (2.0%):
2,748,521 AmSouth Prime Obligations Fund............................ $ 2,748
3,805 AmSouth U.S. Treasury Fund................................ 4
--------
Total Investment Companies 2,752
--------
Total (Cost--$96,315) (a) $139,231
========
</TABLE>
- --------
Percentages indicated are based on net assets of $139,607.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
Unrealized appreciation........................................... $ 54,574
Unrealized depreciation........................................... (11,658)
--------
Net unrealized appreciation....................................... $ 42,916
========
(b) Represents non-income producing securities.
See notes to financial statements.
-41-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- ----------
<C> <S> <C>
COMMON STOCKS (94.7%):
Apparel (0.8%):
600,000 Phillips-Van Heusen Corp. .............................. $ 8,250
----------
Automotive (2.2%):
396,000 Ford Motor Co. ......................................... 22,547
----------
Automotive Parts (1.5%):
392,000 Arvin Industries, Inc. ................................. 15,239
----------
Banking (3.1%):
150,000 J.P. Morgan & Co., Inc. ................................ 18,900
160,000 NationsBank Corp. ...................................... 12,760
----------
31,660
----------
Beverages (1.9%):
400,000 Diageo PLC ADR.......................................... 19,350
----------
Business Services (1.2%):
755,000 Reynolds & Reynolds Co., Class A........................ 12,693
----------
Chemicals-Speciality (3.0%):
140,000 BetzDearborn, Inc. ..................................... 9,380
1,025,000 Engelhard Corp. ........................................ 21,397
----------
30,777
----------
Computers & Peripherals (2.0%):
156,000 IBM..................................................... 20,670
----------
Consumer Goods (1.8%):
410,000 American Greetings Corp., Class A....................... 18,937
----------
Electrical & Electronic (2.4%):
615,000 AMP, Inc. .............................................. 18,065
127,500 Avnet, Inc. ............................................ 6,997
----------
25,062
----------
Electronic Components (1.2%):
1,045,000 Cabletron Systems, Inc. (b)............................. 12,083
----------
Entertainment (0.9%):
660,000 Circus Circus Enterprises, Inc. (b)..................... 9,034
----------
Financial Services (4.1%):
660,000 Dun & Bradstreet Corp. ................................. 18,109
615,000 Washington Mutual, Inc. ................................ 24,561
----------
42,670
----------
Food Processing & Packaging (2.0%):
360,000 Sara Lee Corp. ......................................... 18,045
120,000 Universal Foods Corp. .................................. 2,745
----------
20,790
----------
Forest & Paper Products (3.5%):
150,000 Union Camp Corp. ....................................... 6,366
490,000 Weyerhauser Co. ........................................ 20,580
308,000 Willamette Industries, Inc. ............................ 8,720
----------
35,666
----------
Health Care (1.4%):
260,000 United Healthcare Corp. ................................ 14,690
----------
Household Products/Wares (2.8%):
850,000 Rubbermaid, Inc. ....................................... 28,316
----------
Insurance (5.9%):
225,000 Aetna, Inc. ............................................ 15,595
360,000 Marsh & McLennan Cos., Inc. ............................ 21,983
630,000 St. Paul Cos., Inc. .................................... 22,798
----------
60,376
----------
Manufacturing (0.3%):
103,800 Kennametal, Inc. ....................................... 3,354
----------
Medical Supplies (4.4%):
335,000 Baxter International, Inc. ............................. 20,016
625,000 C.R. Bard, Inc. ........................................ 25,313
----------
45,329
----------
Metals & Mining (0.2%):
120,000 Barrick Gold Corp. ..................................... 1,965
----------
Newspapers (3.5%):
230,000 Dow Jones & Co., Inc. .................................. 12,492
360,000 Gannett Co., Inc. ...................................... 23,017
----------
35,509
----------
Oil & Gas Exploration, Production, & Services (8.5%):
325,000 Burlington Resources, Inc. ............................. 11,781
670,000 Sun Co., Inc. .......................................... 25,083
392,000 Texaco, Inc. ........................................... 23,839
</TABLE>
Continued
-42-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Exploration, Production, & Services, continued:
295,000 Ultramar Diamond Shamrock Corp. ........................ $ 7,725
570,000 USX--Marathon Group..................................... 19,451
----------
87,879
----------
Pharmaceuticals (3.8%):
200,000 American Home Products Corp. ........................... 10,300
610,000 Pharmacia & Upjohn, Inc. ............................... 28,899
----------
39,199
----------
Pollution Control Services & Equipment (2.1%):
391,500 Waste Management, Inc. (b).............................. 21,581
----------
Printing & Publishing (0.2%):
660,000 R.R. Donnelley Corp. ................................... 1,815
----------
Railroads (1.4%):
350,000 CSX Corp. .............................................. 14,153
----------
Retail (15.2%):
1,644 Abercrombie & Fitch Co. (b)............................. 76
690,000 CVS Corp. .............................................. 28,290
600,000 Dayton Hudson Corp. .................................... 28,688
540,000 Dillard's, Inc., Class A................................ 18,563
320,000 Gap, Inc. .............................................. 19,080
400,000 May Department Stores Co. .............................. 25,675
120,000 The Limited, Inc. ...................................... 3,218
510,000 Wal-Mart Stores, Inc. .................................. 32,193
----------
155,783
----------
Temporary Services (0.9%):
966,900 Olsten Corp. ........................................... 8,944
----------
Transportation Leasing & Trucking (1.9%):
465,000 Ryder System, Inc. ..................................... 13,485
243,000 USFreightways Corp. .................................... 6,075
----------
19,560
----------
Utilities--Electric & Gas (3.2%):
555,000 Baltimore Gas & Electric Co. .......................... 16,789
650,000 Southern Co. .......................................... 16,575
----------
33,364
----------
Utilities--Telecommunications (7.4%):
340,000 AT&T Corp. ............................................ 20,612
393,216 Bell Atlantic Corp. ................................... 17,842
296,000 BellSouth Corp. ....................................... 20,221
255,000 Sprint Corp. .......................................... 17,850
----------
76,525
----------
Total Common Stocks 973,770
----------
COMMERCIAL PAPER (2.4%):
Financial Services (2.4%):
$ 6,043 Ford Motor Credit Co., 5.57%, 8/6/98................... 6,038
7,648 Ford Motor Credit Co., 5.57%, 8/7/98................... 7,641
3,684 General Electric Capital Corp., 5.59%, 8/3/98.......... 3,683
7,349 General Motors Acceptance Corp., 5.63%, 8/4/98......... 7,346
----------
Total Commercial Paper 24,708
----------
INVESTMENT COMPANIES (2.5%):
17,436,012 AmSouth Prime Obligations Fund......................... 17,436
8,214,736 AmSouth U.S.Treasury Fund.............................. 8,215
----------
Total Investment Companies 25,651
----------
Total (Cost $693,045) (a) $1,024,129
==========
</TABLE>
Continued
-43-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
- --------
Percentages indicated are based on net assets of $1,028,669.
(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 $63. Cost for federal income tax purposes
differs from value by net unrealized appreciation of securities as
follows:
Unrealized appreciation........................................... $362,022
Unrealized depreciation........................................... (31,001)
--------
Net unrealized appreciation....................................... $331,021
========
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-44-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (71.4%):
Aerospace (1.1%):
11,550 B.F. Goodrich, Inc. ....................................... $ 468
-------
Automotive (2.2%):
16,050 Ford Motor Co. ............................................ 914
-------
Banking (12.3%):
15,157 Banc One Corp. ............................................ 783
7,400 Bankers' Trust Corp. ...................................... 829
10,975 J.P. Morgan & Co., Inc. ................................... 1,382
62,400 Pacific Century Financial Corp. ........................... 1,225
18,050 Wilmington Trust Corp. .................................... 1,071
-------
5,290
-------
Chemicals (1.8%):
8,300 Dow Chemical Co. .......................................... 753
-------
Chemicals--Speciality (1.9%):
12,950 PPG Industries, Inc. ...................................... 821
-------
Computers & Peripherals (4.2%):
27,400 Electronic Data Systems Corp. ............................. 964
14,950 Hewlett-Packard Co. ....................................... 830
-------
1,794
-------
Diversified Manufacturing (2.2%):
4,800 General Electric Co. ...................................... 429
6,600 Minnesota Mining & Manufacturing Co. ...................... 494
-------
923
-------
Electrical & Electronic (4.4%):
19,000 Motorola, Inc. ............................................ 993
10,800 Royal Philips Electronics N.V. ............................ 882
-------
1,875
-------
Electrical Equipment (1.8%):
12,600 Emerson Electric Co. ...................................... 749
-------
Electronic Components/Instruments (0.9%):
6,400 Perkin-Elmer Corp. ........................................ 375
-------
Engineering & Construction (2.1%):
21,600 Fluor Corp. ............................................... 909
-------
Food Distributors & Wholesalers (1.5%):
27,600 SYSCO Corp. ............................................... 656
-------
Food Processing & Packaging (2.0%):
15,350 H.J. Heinz Co. ............................................ 846
-------
Food Products & Services (2.5%):
32,200 McCormick & Co., Inc. ..................................... 1,044
-------
Health Care (1.8%):
10,100 Johnson & Johnson.......................................... 780
-------
Household Products/Wares (1.8%):
30,300 Tupperware Corp. .......................................... 765
-------
Medical Supplies (5.4%):
20,400 Bausch & Lomb, Inc. ....................................... 1,043
20,850 Baxter International, Inc. ................................ 1,245
-------
2,288
-------
Office/Business Equipment (1.7%):
13,900 Pitney Bowes, Inc. ........................................ 702
-------
Oil & Gas Exploration, Production, & Services (4.6%):
6,400 British Petroleum Co. ..................................... 514
10,750 Exxon Corp. ............................................... 754
17,500 Shell Transport & Trading Co. PLC ADR...................... 679
-------
1,947
-------
Pharmaceuticals (4.7%):
14,600 American Home Products Corp. .............................. 752
1,600 Merck & Co., Inc. ......................................... 197
21,875 Pharmacia & Upjohn, Inc. .................................. 1,037
-------
1,986
-------
Restaurants (1.4%):
9,100 McDonald's Corp. .......................................... 608
-------
Retail (3.0%):
25,050 Sears & Roebuck Co. ....................................... 1,271
-------
Tobacco (1.1%):
10,800 Philip Morris Cos., Inc. .................................. 473
-------
Utilities--Electric & Gas (3.2%):
18,900 Hawaiian Electric Industries, Inc. ........................ 715
12,500 Texas Utilities Co. ....................................... 636
-------
1,351
-------
</TABLE>
Continued
-45-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Telecommunications (1.8%):
14,500 U.S. West, Inc. .......................................... $ 774
--------
Total Common Stocks 30,362
--------
CONVERTIBLE PREFERRED STOCKS (20.0%):
Banking (4.9%):
8,050 Jefferson Pilot........................................... 1,084
33,700 National Australia Bank................................... 990
--------
2,074
--------
Building Products (1.8%):
32,600 DECS Trust II/Royal Group Technologies.................... 786
--------
Computer Software (2.7%):
12,150 Microsoft Corp., Series A................................. 1,158
--------
Food Processing & Packaging (2.5%):
24,700 Dole Food (TRACES)........................................ 1,050
--------
Oil Refining & Marketing (1.5%):
4,450 Tosco Corp. Financing Trust............................... 233
7,700 Tosco Corp. Financing Trust (b)........................... 402
--------
635
--------
Printing & Publishing (2.9%):
45,950 Readers Digest (TRACES)................................... 1,241
--------
Railroads (1.3%):
12,000 Union Pacific Corp. (b)................................... 542
--------
Telecommunications (1.5%):
10,500 Salomon Smith Barney...................................... 628
--------
Tobacco (0.9%):
31,100 DECS Trust................................................ 381
--------
Total Convertible Preferred Stocks 8,495
--------
CONVERTIBLE BONDS (8.1%):
Computers & Peripherals (2.2%):
$ 420 EMC Corp., 3.25%, 3/15/02, Callable 3/15/00 @ 101.3....... 939
--------
Electrical & Electronic (1.6%):
720 Xilinx, Inc., 5.25%, 11/1/02, Callable 11/3/98 @ 103...... 700
--------
Oilfield Equipment & Services (1.5%):
595 Diamond Offshore Drilling, Inc., 3.75%, 2/15/07, Callable
2/22/01 @ 102.08......................................... 622
--------
Retail (2.8%):
1,660 Costco Cos., Inc., 0.00%, 8/19/17, Callable 8/19/02 @
59.43.................................................... 1,171
--------
Total Convertible Bonds 3,432
--------
INVESTMENT COMPANIES (0.9%):
371,569 AmSouth Prime Obligations Fund............................ 372
--------
Total Investment Companies 372
--------
Total (Cost $40,924) (a) $ 42,661
========
</TABLE>
- --------
Percentages indicated are based on net assets of $42,506.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
Unrealized appreciation........................................... $ 3,351
Unrealized depreciation........................................... (1,614)
-------
Net unrealized depreciation....................................... $ 1,737
=======
(b) Section 144A security which is restricted as to resale to institutional
investors
ADR--American Depository Receipt
PLC--Public Limited Co.
TRACES--Trust Automatic Common Exchange Securities
DECS--Dividend Enhanced Convertible Security
See notes to financial statements.
-46-
<PAGE>
AMSOUTH MUTUAL FUNDS
CAPITAL GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ -------------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (94.6%):
Advertising (1.6%):
5,000 Omnicom Group, Inc. .......................................... $ 263
-------
Banking (15.3%):
4,400 Chase Manhattan Corp. ........................................ 333
3,800 Comerica, Inc. ............................................... 256
6,000 Commerce Bancshares, Inc. .................................... 301
5,200 Crestar Financial Corp. ...................................... 354
4,900 First American Corp.--Tenn.................................... 230
3,100 Fleet Financial Group, Inc. .................................. 266
6,000 Keycorp....................................................... 204
7,150 MBNA Corp. ................................................... 240
3,500 Northern Trust Corp. ......................................... 258
-------
2,442
-------
Beverages (1.8%):
7,400 PepsiCo, Inc. ................................................ 287
-------
Computer Software (12.0%):
5,500 BMC Software, Inc. (b)........................................ 271
10,400 Cadence Design System, Inc. (b)............................... 300
5,000 Compuware Corp. (b)........................................... 269
7,400 HBO & Co. .................................................... 218
2,200 Microsoft Corp. (b)........................................... 242
10,000 Netscape (b).................................................. 286
13,000 Oracle Corp. (b).............................................. 344
-------
1,930
-------
Computers & Peripherals (4.3%):
11,400 Apple Computer, Inc. (b)...................................... 395
6,200 Sun Microsystems, Inc. (b).................................... 293
-------
688
-------
Consumer Goods (1.4%):
7,000 Premark International, Inc. .................................. 217
-------
Diversified Manufacturing (5.7%):
6,000 Crane Co. .................................................... 297
3,300 General Electric Co. ......................................... 295
5,200 Tyco International Ltd. ...................................... 322
-------
914
-------
Entertainment (1.6%):
7,000 Carnival Corp. ............................................... 259
-------
Financial Services (1.9%):
2,700 American Express Co. ......................................... 298
-------
Food Distributors & Wholesalers (1.6%):
11,000 SYSCO Corp. .................................................. 261
-------
Food Products & Services (1.7%):
5,000 Bestfoods..................................................... 278
-------
Hotels & Lodging (1.4%):
9,000 Hilton Hotels Corp. .......................................... 227
-------
Insurance (5.1%):
8,000 AFLAC, Inc. .................................................. 275
6,400 Allstate Corp. ............................................... 272
3,800 Chubb Corp. .................................................. 278
-------
825
-------
Media (4.1%):
5,200 Chancellor Media Corp. (b).................................... 251
6,000 Viacom, Inc. Class B (b)...................................... 411
-------
662
-------
Medical Supplies (2.0%):
5,300 Baxter International, Inc. ................................... 317
-------
Office Equipment & Services (1.8%):
5,000 Avery Dennison Corp. ......................................... 288
-------
Oil & Gas Exploration, Production, & Services (2.1%):
10,400 Coastal Corp. ................................................ 341
-------
Pharmaceuticals (9.6%):
7,300 Abbott Laboratories........................................... 303
2,500 Bristol-Myers Squibb Co. ..................................... 285
4,600 Eli Lilly & Co. .............................................. 309
11,000 Mylan Laboratories............................................ 299
3,500 Schering-Plough Corp. ........................................ 339
-------
1,535
-------
Retail (4.8%):
5,000 Bed Bath & Beyond, Inc. (b)................................... 216
5,600 Dayton Hudson Corp. .......................................... 268
9,800 General Nutrition Companies (b)............................... 280
-------
764
-------
</TABLE>
Continued
-47-
<PAGE>
AMSOUTH MUTUAL FUNDS
CAPITAL GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ -------------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS CONTINUED:
Soaps & Cleaning Agents (2.1%):
3,300 Clorox Corp. ................................................. $ 338
-------
Telecommunications (3.6%):
5,150 Century Telephone Enterprise, Inc. ........................... 256
8,000 Qwest Communications International, Inc. (b).................. 323
-------
579
-------
Telecommunications--Equipment (5.5%):
4,200 Lucent Technologies, Inc. .................................... 388
20,000 Paging Network, Inc. (b)...................................... 235
3,400 Tellabs, Inc. (b)............................................. 256
-------
879
-------
Utilities--Telecommunications (1.9%):
5,000 AT&T Corp. ................................................... 303
-------
Utilities--Water (1.7%):
8,900 American Water Works, Inc. ................................... 266
-------
Total Common Stocks 15,161
-------
Total (Cost--$13,851) (a) $15,161
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $16,021.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation............................................ $1,774
Unrealized depreciation............................................ (464)
------
Net unrealized appreciation........................................ $1,310
======
(b) Represents non-income producing securities.
See notes to financial statements.
-48-
<PAGE>
AMSOUTH MUTUAL FUNDS
SMALL CAP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS (90.3%):
Advertising (1.4%):
3,500 HA-LO Industries, Inc. (b).................................. $ 101
------
Aerospace/Defense (2.3%):
5,700 Kellstrom Industries, Inc. (b).............................. 168
------
Airlines (3.0%):
1,800 Alaska Air Group, Inc. (b).................................. 75
6,300 Mesaba Holdings, Inc. (b)................................... 148
------
223
------
Commercial Services (4.2%):
4,700 Data Processing Resources Corp. (b)......................... 154
2,000 Lason, Inc. (b)............................................. 98
1,600 NOVA Corp. (b).............................................. 52
------
304
------
Computer Software (12.5%):
4,600 AVT Corp. (b)............................................... 105
5,000 Boole & Babbage, Inc. (b)................................... 115
1,800 Dendrite International, Inc. (b)............................ 84
2,800 IDX Systems Corp. (b)....................................... 140
900 Mercury Interactive Corp. (b)............................... 37
4,300 Peerless Systems Corp. (b).................................. 84
3,700 Peregrine Systems, Inc. (b)................................. 126
4,000 Platinum Technology, Inc. (b)............................... 126
2,700 Symantec Corp. (b).......................................... 65
1,100 THQ, Inc. (b)............................................... 32
------
914
------
Computers & Peripherals (5.7%):
3,100 Ciber, Inc. (b)............................................. 105
3,000 Jack Henry & Associates, Inc. .............................. 122
5,900 Systems & Computer Technology Corp. (b)..................... 129
4,000 Tier Technologies, Inc. (b)................................. 63
------
419
------
Cosmetics/Personal Care (1.3%):
6,600 Playtex Products, Inc. (b).................................. 96
------
Electronic Components (3.8%):
2,000 C&D Technologies, Inc. ..................................... 53
1,000 Oak Industries, Inc. (b).................................... 37
3,000 Special Devices, Inc. (b)................................... 103
3,700 Technitrol, Inc. ........................................... 87
------
280
------
Engineering & Construction (1.5%):
3,300 Dycom Industries, Inc. (b).................................. 113
------
Environmental Services (3.1%):
3,700 American Disposal Services, Inc. (b)........................ 142
2,100 Catalytica, Inc. (b)........................................ 31
3,000 Stericycle, Inc. (b)........................................ 53
------
226
------
Financial Services (4.0%):
4,400 AmeriCredit Corp. (b)....................................... 148
1,100 Downey Financial Corp. ..................................... 36
2,100 HealthCare Financial Partners, Inc. (b)..................... 105
------
289
------
Food Processing & Packaging (1.7%):
3,600 Earthgrains Co. ............................................ 123
------
Home Builders (6.8%):
7,900 D. R. Horton, Inc. ......................................... 171
2,400 M.D.C Holdings, Inc. ....................................... 49
4,200 National R.V. Holdings, Inc. (b)............................ 110
9,900 Standard Pacific Corp. ..................................... 170
------
500
------
Household Products/Wares (3.0%):
5,550 Fossil, Inc. (b)............................................ 127
3,300 Windmere-Durable Holdings, Inc. (b)......................... 90
------
217
------
Insurance (4.0%):
7,600 Century Business Services, Inc. (b)......................... 151
3,700 Fidelity National Financial, Inc. .......................... 139
------
290
------
</TABLE>
Continued
-49-
<PAGE>
AMSOUTH MUTUAL FUNDS
SMALL CAP FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Machinery--Construction (1.3%):
3,000 JLG Industries, Inc. ....................................... $ 47
2,200 Terex Corp. (b)............................................. 46
------
93
------
Machinery--Diversified (2.0%):
5,300 Gerber Scientific, Inc. .................................... 148
------
Manufactured Housing (1.3%):
4,800 American Homestar Corp. (b)................................. 94
------
Medical Services (1.7%):
3,000 Renal Care Group, Inc. (b).................................. 123
------
Medical Services--Veterinary (2.4%):
9,300 Veterinary Centers of America, Inc. (b)..................... 176
------
Pharmaceuticals (0.5%):
2,000 NBTY, Inc. (b).............................................. 33
------
Printing (0.8%):
2,500 Cadmus Communications Corp. ................................ 59
------
Restaurants (0.8%):
4,300 Buffets, Inc. (b)........................................... 59
------
Retail (13.9%):
1,600 Abercrombie & Fitch Co. (b)................................. 74
7,700 Cato Corp.--Class A......................................... 102
1,500 DM Management Co. (b)....................................... 28
6,000 Goody's Family Clothing, Inc. (b)........................... 154
6,000 Just For Feet, Inc. (b)..................................... 139
4,700 Kenneth Cole Productions, Inc. (b).......................... 97
4,250 Pacific Sunwear of California, Inc. (b)..................... 125
4,700 Regis Corp. ................................................ 136
4,000 The Finish Line, Class A (b)................................ 87
2,700 The Men's Wearhouse, Inc. (b)............................... 85
------
1,027
------
Telecommunications (1.4%):
5,600 InterVoice, Inc. (b)........................................ 104
------
Telecommunications--Equipment (3.0%):
4,800 ANTEC Corp. (b)............................................. 107
3,300 Superior TeleCom, Inc. ..................................... 114
------
221
------
Textiles (2.5%):
5,800 Mohawk Industries, Inc. (b)................................. 181
------
Transportation (0.4%):
700 Coach USA, Inc. (b)......................................... 26
------
Total Common Stocks 6,607
------
U.S. TREASURY BILLS (5.4%):
$ 100 8/6/98...................................................... 100
300 10/15/98.................................................... 297
------
Total U.S. Treasury Bills 397
------
INVESTMENT COMPANIES (4.1%):
296,892 AmSouth Prime Obligations Fund.............................. 297
------
Total Investment Companies 297
------
Total (Cost $7,381) (a) $7,301
======
</TABLE>
- --------
Percentages indicated are based on net assets of $7,315.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
Unrealized appreciation............................................. $ 359
Unrealized depreciation............................................. (439)
-----
Net unrealized depreciation......................................... $ (80)
=====
(b) Represents non-income producing securities.
See notes to financial statements.
-50-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (53.5%):
Apparel (0.5%):
140,000 Phillips-Van Heusen Corp. ................................ $ 1,925
--------
Automotive (1.2%):
81,000 Ford Motor Co. ........................................... 4,612
--------
Automotive Parts (1.0%):
101,000 Arvin Industries, Inc. ................................... 3,926
--------
Banking (2.2%):
40,000 J.P. Morgan & Co., Inc. .................................. 5,040
40,000 NationsBank Corp. ........................................ 3,190
--------
8,230
--------
Beverages (0.9%):
70,000 Diageo PLC ADR............................................ 3,386
--------
Business Services (0.8%):
178,000 Reynolds & Reynolds Co., Class A.......................... 2,993
--------
Chemicals--Speciality (2.0%):
44,000 BetzDearborn, Inc. ....................................... 2,948
230,000 Engelhard Corp. .......................................... 4,801
--------
7,749
--------
Computers & Peripherals (0.7%):
20,000 IBM....................................................... 2,650
--------
Consumer Goods (0.8%):
65,000 American Greetings Corp., Class A......................... 3,002
--------
Electrical & Electronic (1.6%):
150,000 AMP, Inc. ................................................ 4,406
32,000 Avnet, Inc. .............................................. 1,756
--------
6,162
--------
Electronic Components (1.1%):
355,000 Cabletron Systems, Inc. (b)............................... 4,105
--------
Entertainment (0.6%):
173,000 Circus Circus Enterprises, Inc. (b)....................... 2,368
--------
Financial Services (2.2%):
110,000 Dun & Bradstreet Corp. ................................... 3,018
132,500 Washington Mutual, Inc. .................................. 5,292
--------
8,310
--------
Food Processing & Packaging (1.1%):
70,000 Sara Lee Corp. ........................................... 3,508
36,000 Universal Foods Corp. .................................... 824
--------
4,332
--------
Forest & Paper Products (2.4%):
50,000 Union Camp Corp. ......................................... 2,122
100,000 Weyerhauser Co. .......................................... 4,200
100,000 Willamette Industries, Inc. .............................. 2,831
--------
9,153
--------
Health Care (0.5%):
33,000 United Healthcare Corp. .................................. 1,865
--------
Household Products/Wares (1.6%):
180,000 Rubbermaid, Inc. ......................................... 5,996
--------
Insurance (3.0%):
50,000 Aetna, Inc. .............................................. 3,466
60,000 Marsh & McLennan Cos., Inc. .............................. 3,664
120,000 St. Paul Cos., Inc. ...................................... 4,342
--------
11,472
--------
Manufacturing (0.3%):
31,000 Kennametal, Inc. ......................................... 1,002
--------
Medical Supplies (2.7%):
100,000 Baxter International, Inc. ............................... 5,975
105,000 C.R. Bard, Inc. .......................................... 4,253
--------
10,228
--------
Metals & Mining (0.2%):
40,000 Barrick Gold Corp. ....................................... 655
--------
Newspapers (1.9%):
30,000 Dow Jones & Co., Inc. .................................... 1,629
90,000 Gannett Co., Inc. ........................................ 5,755
--------
7,384
--------
Oil & Gas Exploration, Production, & Services (5.0%):
75,000 Burlington Resources, Inc. ............................... 2,719
105,000 Sun Co., Inc. ............................................ 3,931
80,000 Texaco, Inc. ............................................. 4,865
</TABLE>
Continued
-51-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Exploration, Production, & Services, continued:
125,000 Ultramar Diamond Shamrock Corp. .......................... $ 3,273
130,000 USX--Marathon Group....................................... 4,436
--------
19,224
--------
Pharmaceuticals (2.3%):
50,000 American Home Products Corp. ............................. 2,575
134,000 Pharmacia & Upjohn, Inc. ................................. 6,348
--------
8,923
--------
Pollution Control Services & Equipment (1.2%):
83,375 Waste Management, Inc. (b)................................ 4,596
--------
Printing & Publishing (0.1%):
110,000 R.R. Donnelley Corp. ..................................... 303
--------
Railroads (0.6%):
60,000 CSX Corp. ................................................ 2,426
--------
Retail (7.0%):
410 Abercrombie & Fitch Co. (b)............................... 19
130,000 CVS Corp. ................................................ 5,331
78,000 Dayton Hudson Corp. ...................................... 3,729
105,000 Dillard's, Inc., Class A.................................. 3,609
45,000 Gap, Inc. ................................................ 2,683
70,000 May Department Stores Co. ................................ 4,493
30,000 The Limited, Inc. ........................................ 804
98,000 Wal-Mart Stores, Inc. .................................... 6,187
--------
26,855
--------
Temporary Services (0.6%):
230,000 Olsten Corp. ............................................. 2,128
--------
Transportation Leasing & Trucking (1.1%):
95,000 Ryder System, Inc. ....................................... 2,755
55,000 US Freightways Corp. ..................................... 1,375
--------
4,130
--------
Utilities--Electric & Gas (2.0%):
140,000 Baltimore Gas & Electric Co. ............................. 4,235
140,000 Southern Co. ............................................. 3,570
--------
7,805
--------
Utilities--Telecommunications (4.3%):
40,000 AT&T Corp. ............................................... 2,425
110,000 Bell Atlantic Corp. ...................................... 4,991
70,000 BellSouth Corp. .......................................... 4,782
60,000 Sprint Corp. ............................................. 4,200
--------
16,398
--------
Total Common Stocks 204,293
--------
CORPORATE BONDS (21.0%):
Appliances (0.1%):
$ 500 Whirlpool Corp., 9.50%, 6/15/00........................... 529
--------
Automotive (0.9%):
2,500 Chrysler Financial Corp., 6.08%, 4/6/01................... 2,500
700 General Motors Corp., 9.63%, 12/1/00...................... 753
--------
3,253
--------
Banking (3.5%):
930 BankAmerica Corp., 9.50%, 4/1/01.......................... 1,007
1,000 Bankers Trust Co., 9.50%, 6/14/00......................... 1,059
2,500 Mellon Financial Co., 6.30%, 6/1/00....................... 2,516
4,185 NationsBank Corp., 5.38%, 4/15/00......................... 4,147
2,000 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 2,135
1,565 Wachovia Corp., 5.40%, 2/20/01............................ 1,543
1,475 Wachovia Corp., 6.63%, 11/15/06........................... 1,506
--------
13,913
--------
Brokerage Services (1.9%):
3,000 Bear Stearns & Co., Inc., 6.50%, 8/1/02................... 3,030
2,000 Merrill Lynch & Co., Inc., 6.00%, 3/1/01.................. 2,003
2,000 Morgan Stanley Group, Inc.,
8.10%, 6/24/02........................................... 2,135
--------
7,168
--------
Farm Equipment (0.8%):
3,000 John Deere Capital Corp., 5.85%, 1/15/01.................. 2,993
--------
Financial Services (2.7%):
4,000 Associates Corp. N. A., 6.75%, 7/15/01.................... 4,079
1,200 British Telecom Finance, Inc.,
9.38%, 2/15/99........................................... 1,223
1,000 Commercial Credit Co., 7.88%, 7/15/04..................... 1,078
</TABLE>
Continued
-52-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, continued:
$1,000 Ford Motor Credit Corp., 5.63%, 1/15/99................... $ 999
2,000 General Motors Acceptance Corp.,
6.00%, 2/1/02............................................ 1,990
1,000 Pitney Bowes Credit Corp., 6.80%, 10/1/01................. 1,024
--------
10,393
--------
Food Products & Services (0.3%):
1,000 H.J. Heinz Co., 6.75%, 10/15/99........................... 1,010
--------
Forest & Paper Products (0.3%):
1,000 Mead Corp., 6.60%, 3/1/02................................. 1,014
--------
Industrial Goods & Services (3.1%):
500 Browning-Ferris Industries, Inc.,
6.10%, 1/15/03........................................... 499
2,000 Caterpillar Financial Services,
6.02%, 4/15/02........................................... 2,000
1,000 Dresser Industries, Inc., 6.25%, 6/1/00................... 1,006
3,000 First Data Corp., 6.75%, 7/15/05.......................... 3,124
2,000 Honeywell, Inc., 6.75%, 3/15/02........................... 2,045
3,000 Monsanto Co., 6.00%, 7/1/00............................... 3,008
--------
11,682
--------
Insurance (0.5%):
1,400 Capital Holding Corp., 9.20%, 4/17/01..................... 1,507
279 Chubb Corp., 8.75%, 11/15/99.............................. 288
--------
1,795
--------
Newspapers (0.5%):
2,000 Gannett Co., Inc., 5.85%, 5/1/00.......................... 2,003
--------
Oil & Gas Exploration, Production, & Services (0.4%):
1,550 BP America, Inc., 9.38%, 11/1/00.......................... 1,662
--------
Pollution Control Services & Equipment (0.8%):
1,000 Waste Management, Inc., 8.25%, 11/15/99................... 1,025
2,000 Waste Management, Inc., 7.70%, 10/1/02.................... 2,093
--------
3,118
--------
Retail (2.4%):
2,000 J.C. Penney Co., Inc., 7.25%, 4/1/02...................... 2,075
2,000 Sears & Roebuck, 6.00%, 3/20/03........................... 1,978
3,000 Wal-Mart Stores, Inc., 5.85%, 6/1/00...................... 3,000
2,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02..................... 2,055
--------
9,108
--------
Telecommunications (0.3%):
1,000 AT&T Corp., 7.13%, 1/15/02................................ 1,035
--------
Utilities--Electric & Gas (2.0%):
3,450 Duke Power Co., 7.00%, 6/1/00............................. 3,515
1,275 Georgia Power Co., 6.13%, 9/1/99.......................... 1,278
2,000 Oklahoma Gas & Electric Co.,
6.25%, 10/15/00.......................................... 2,015
900 Pennsylvania Power & Light Co.,
6.00%, 6/1/00............................................ 901
--------
7,709
--------
Utilities--Telecommunications (0.5%):
1,730 Lucent Technologies, Inc., 6.90%, 7/15/01................. 1,775
--------
Total Corporate Bonds 80,160
--------
MUNICIPAL BONDS (1.1%):
Illinois (1.1%):
3,800 Chicago Public Building, 7.00%, 1/1/06.................... 4,028
--------
Total Municipal Bonds 4,028
--------
U.S. GOVERNMENT AGENCIES (7.2%):
Federal Home Loan Mortgage Corp. (2.4%):
7,000 5.83%, 2/9/06............................................. 6,977
2,000 7.10%, 4/10/07............................................ 2,161
--------
9,138
--------
Federal National Mortgage Assoc. (3.8%):
4,000 5.57%, 3/17/00............................................ 3,995
5,400 5.50%, 2/2/01............................................. 5,376
5,000 6.21%, 11/7/07............................................ 5,105
--------
14,476
--------
</TABLE>
Continued
-53-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Tennessee Valley Authority (1.0%):
$ 4,000 6.00%, 11/1/00............................................ $ 4,000
--------
Total U.S. Government Agencies 27,614
--------
U.S. TREASURY BONDS (12.1%):
6,300 5.75%, 8/15/03............................................ 6,353
7,000 5.88%, 11/15/05........................................... 7,117
6,000 7.50%, 11/15/16........................................... 7,136
10,000 7.25%, 8/15/22............................................ 11,831
12,900 6.25%, 8/15/23............................................ 13,653
--------
Total U.S. Treasury Bonds 46,090
--------
U.S. TREASURY NOTES (0.5%):
2,000 5.63%, 2/28/01............................................ 2,005
--------
Total U.S. Treasury Notes 2,005
--------
U.S. TREASURY STRIPS (2.3%):
12,000 2/15/04................................................... 8,845
--------
Total U.S. Treasury Strips 8,845
--------
INVESTMENT COMPANIES (1.5%):
5,657,101 AmSouth Prime Obligations Fund 5,657
1,138 AmSouth U.S. Treasury Fund................................ 1
--------
Total Investment Companies 5,658
--------
Total (Cost--$304,301) (a) $378,693
========
</TABLE>
- --------
Percentages indicated are based on net assets of $381,749.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
Unrealized appreciation.......................................... $ 81,964
Unrealized depreciation.......................................... (7,572)
--------
Net unrealized appreciation...................................... $ 74,392
========
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-54-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (50.0%):
Aerospace/Defense (0.9%):
$ 3,000 Boeing Corp., 6.88%, 11/1/06.............................. $ 3,150
--------
Appliances (0.2%):
500 Whirlpool Corp., 9.50%, 6/15/00........................... 529
--------
Automotive (0.3%):
908 General Motors Corp., 9.63%, 12/1/00...................... 977
--------
Banking (6.1%):
3,157 Banc One Corp., 7.00%, 7/15/05............................ 3,279
1,150 BankAmerica Corp., 9.50%, 4/1/01.......................... 1,245
4,000 Fifth Third Bank, 6.75%, 7/15/05.......................... 4,115
3,856 J.P. Morgan & Co., 7.63%, 9/15/04......................... 4,136
4,306 NationsBank Corp., 5.38%, 4/15/00......................... 4,268
3,159 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 3,372
--------
20,415
--------
Beverages (2.1%):
3,500 Coca-Cola Enterprises, Inc., 6.38%, 8/1/01................ 3,535
3,530 PepsiCo, Inc., 7.63%, 11/1/98............................. 3,541
--------
7,076
--------
Brokerage Services (2.5%):
2,500 Bear Stearns & Co. Inc., 6.63%, 10/1/04................... 2,522
3,500 Dean Witter Discover & Co.,
6.50%, 11/1/05........................................... 3,535
750 Merrill Lynch & Co., Inc.,
8.25%, 11/15/99.......................................... 771
1,450 Merrill Lynch & Co., Inc., 6.00%, 2/12/03................. 1,441
--------
8,269
--------
Financial Services (7.0%):
2,000 American Express Credit Corp.,
6.50%, 8/1/00............................................ 2,023
3,500 Ameritech Capital, 5.65%, 1/15/01......................... 3,477
2,000 Associates Corp., 5.75%, 10/15/03......................... 1,965
3,091 Avco Financial Service Corp.,
5.50%, 4/1/00............................................ 3,076
1,310 British Telecom Finance, Inc.,
9.38%, 2/15/99........................................... 1,335
2,000 Commercial Credit Co., 7.38%, 3/15/02..................... 2,085
3,000 Commercial Credit Co., 6.50%, 8/1/04...................... 3,019
3,485 Ford Motor Credit Co., 6.25%, 12/8/05..................... 3,467
1,000 Margaretten Financial Corp.,
6.75%, 6/15/00........................................... 1,011
2,000 Norwest Financial, Inc., 6.63%, 7/15/04................... 2,048
--------
23,506
--------
Food Products & Services (0.8%):
2,750 Campbell Soup Co., 6.15%, 12/1/02......................... 2,778
--------
Forest & Paper Products (0.9%):
3,000 Mead Corp., 6.60%, 3/1/02................................. 3,041
--------
Industrial Goods & Services (6.9%):
3,000 Air Products & Chemicals, Inc.,
8.35%, 1/15/02........................................... 3,210
2,655 Browning-Ferris Industries, Inc.,
6.10%, 1/15/03........................................... 2,652
2,000 E. I. Dupont de Nemours & Co.,
6.50%, 9/1/02............................................ 2,040
2,570 E. I. Dupont de Nemours & Co.,
6.75%, 10/15/02.......................................... 2,650
864 Exxon Capital Corp., 7.45%, 12/15/01...................... 905
2,000 First Data Corp., 6.75%, 7/15/05.......................... 2,083
1,500 Illinois Tool Works, Inc., 5.88%, 3/1/00.................. 1,500
3,456 Rockwell International Corp.,
6.63%, 6/1/05............................................ 3,576
2,449 Waste Management, Inc., 6.38%, 12/1/03.................... 2,428
2,000 Waste Management, Inc., 7.00%, 5/15/05.................... 2,050
--------
23,094
--------
Insurance (2.0%):
1,000 AON Corp., 6.88%, 10/1/99................................. 1,010
1,600 Capital Holding Corp., 9.20%, 4/17/01..................... 1,722
660 Chubb Corp., 8.75%, 11/15/99.............................. 682
3,100 Hartford Life, Inc., 6.90%, 6/15/04....................... 3,190
--------
6,604
--------
Office Equipment & Services (0.6%):
2,000 Xerox Corporation, 7.15%, 8/1/04.......................... 2,100
--------
Oil & Gas Exploration, Production, & Services (1.0%):
3,158 BP America, Inc., 9.38%, 11/1/00.......................... 3,387
--------
</TABLE>
Continued
-55-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Photography (1.0%):
$ 3,000 Eastman Kodak, 9.38%, 3/15/03............................. $ 3,390
--------
Railroads (1.0%):
2,395 Union Pacific Corp., 6.25%, 3/15/99....................... 2,398
1,000 Union Pacific Corp., 7.00%, 6/15/00....................... 1,015
--------
3,413
--------
Retail (2.9%):
1,500 JC Penny & Co., 6.13%, 11/15/03........................... 1,500
3,000 Nike, Inc., 6.38%, 12/1/03................................ 3,034
4,000 Wal-Mart Stores, Inc., 5.85%, 6/1/00...................... 3,999
1,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02..................... 1,028
--------
9,561
--------
Utilities--Electric & Gas (7.2%):
3,100 Baltimore Gas & Electric, 7.50%, 1/15/07.................. 3,377
2,000 Consolidated Edison Co. of New York, Inc.,
6.63%, 2/1/02............................................ 2,038
3,100 National Rural Utilities, 6.38%, 10/15/04................. 3,147
1,000 Northern States Power Co., 5.50%, 2/1/99.................. 999
2,750 Northern States Power Co., 7.88%, 10/1/01................. 2,901
2,250 Oklahoma Gas & Electric Co., 6.25%, 10/15/00.............. 2,267
1,000 Southern California Edison Co., 5.60%, 12/15/98........... 999
2,000 Tampa Electric Co., 6.13%, 5/1/03......................... 2,013
2,500 Virginia Electric & Power Co., 8.00%, 3/1/04.............. 2,725
3,500 Wisconsin Electric Power, 6.63%, 11/15/06................. 3,608
--------
24,074
--------
Utilities--Telecommunications (6.6%):
2,000 Bell Atlantic Corp., 6.25%, 2/15/04....................... 2,013
3,500 BellSouth Telecommunications,
6.50%, 6/15/05........................................... 3,591
2,009 Chesapeake & Potomac Telephone,
6.00%, 5/1/03............................................ 2,006
2,000 GTE California, Inc., 5.63%, 2/1/01....................... 1,983
2,295 GTE Northwest, Inc., Series A,
7.38%, 5/1/01............................................ 2,372
1,650 GTE Southwest, Inc., Series A,
5.82%, 12/1/99........................................... 1,646
500 Michigan Bell Telephone, 5.88%, 9/15/99................... 501
2,000 Southern New England Telecommunications Corp.,
6.50%, 2/15/02........................................... 2,028
2,000 Southwestern Bell Telephone,
6.63%, 4/1/05............................................ 2,053
4,000 US West Communications Group,
6.63%, 9/15/05........................................... 4,084
--------
22,277
--------
Total Corporate Bonds 167,641
--------
U.S. GOVERNMENT AGENCIES (11.4%):
Federal Home Loan Mortgage Corp. (0.9%):
700 7.14%, 3/12/07............................................ 725
2,000 7.10%, 4/10/07............................................ 2,161
--------
2,886
--------
Federal National Mortgage Assoc. (10.5%):
3,000 6.59%, 5/21/02............................................ 3,088
7,500 7.05%, 11/12/02........................................... 7,864
1,500 7.40%, 7/1/04............................................. 1,619
15,000 8.40%, 10/25/04........................................... 15,492
7,300 5.88%, 2/2/06............................................. 7,298
--------
35,361
--------
Total U.S. Government Agencies 38,247
--------
</TABLE>
Continued
-56-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY BONDS (34.8%):
$22,000 5.75%, 8/15/03............................................ $ 22,186
15,000 5.88%, 11/15/05........................................... 15,251
11,000 6.50%, 10/15/06........................................... 11,636
17,467 3.38%, 1/15/07*........................................... 16,883
18,000 7.50%, 11/15/16........................................... 21,407
27,700 6.25%, 8/15/23............................................ 29,317
--------
Total U.S. Treasury Bonds 116,680
--------
U.S. TREASURY STRIPS (1.8%):
8,000 2/15/04.................................................. 5,896
--------
Total U.S. Treasury Strips 5,896
--------
INVESTMENT COMPANIES (1.6%):
5,462,727 AmSouth Prime Obligations Fund........................... 5,462
570 AmSouth U.S. Treasury Fund............................... 1
--------
Total Investment Companies 5,463
--------
Total (Cost--$320,968) (a) $333,927
========
</TABLE>
- --------
Percentages indicated are based on net assets of $335,404.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
Unrealized appreciation.......................................... $ 13,687
Unrealized appreciation.......................................... (728)
--------
Net unrealized appreciation...................................... $ 12,959
========
* Inflation indexed bond
PLC--Public Limited Co.
Continued
-57-
<PAGE>
AMSOUTH MUTUAL FUNDS
GOVERNMENT INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (86.2%):
Federal National Mortgage Assoc. (20.6%):
$ 1,500 5.75%, 4/15/03............................................. $ 1,499
700 5.94%, 12/12/05............................................ 704
-------
2,203
-------
Government National Mortgage Assoc. (65.6%):
45 9.50%, 5/15/18, Pool #237970............................... 49
70 9.00%, 6/15/18, Pool #251674............................... 75
91 9.00%, 8/15/18, Pool #256195............................... 97
71 9.50%, 2/15/19, Pool #229511............................... 77
114 9.50%, 6/15/19, Pool #273497............................... 122
5 9.50%, 7/15/19, Pool #272490............................... 6
66 9.00%, 10/15/19, Pool #265423.............................. 70
114 9.00%, 10/15/19, Pool #282314.............................. 121
47 8.50%, 12/15/19, Pool #192962.............................. 50
97 9.00%, 12/15/19, Pool #155126.............................. 103
67 9.00%, 1/15/20, Pool #145478............................... 72
33 9.00%, 3/15/20, Pool #281980............................... 35
76 9.00%, 5/15/20, Pool #282467............................... 81
63 9.50%, 5/15/20, Pool #288952............................... 68
209 9.50%, 9/15/20, Pool #287187............................... 225
21 9.50%, 9/15/20, Pool #210730............................... 23
111 8.50%, 11/15/20, Pool #296517.............................. 117
73 9.00%, 11/15/20, Pool #293865.............................. 78
109 9.50%, 11/15/20, Pool #299157.............................. 116
195 9.50%, 11/15/20, Pool #282659.............................. 209
5 9.50%, 12/15/20, Pool #297517.............................. 6
48 9.50%, 12/15/20, Pool #295078.............................. 51
17 9.50%, 1/15/21, Pool #300061............................... 19
234 9.00%, 2/15/21, Pool #295094............................... 249
65 8.50%, 8/15/21, Pool #310782............................... 68
87 8.50%, 8/15/21, Pool #310287............................... 92
158 9.50%, 8/15/21, Pool #306082............................... 169
40 9.00%, 9/15/21, Pool #312960............................... 43
81 9.00%, 9/15/21, Pool #312637............................... 86
88 8.50%, 10/15/21, Pool #313828.............................. 92
69 9.00%, 10/15/21, Pool #309619.............................. 73
83 9.00%, 1/15/22, Pool #316246............................... 88
25 9.00%, 4/15/22, Pool #312880............................... 26
65 9.00%, 6/15/22, Pool #315171............................... 69
23 9.00%, 9/15/22, Pool #333385............................... 24
9 8.50%, 2/15/23, Pool #343166............................... 9
167 7.50%, 6/15/24, Pool #401000............................... 171
825 7.50%, 7/15/25, Pool #365408............................... 849
408 7.50%, 8/15/25, Pool #408478............................... 419
566 7.50%, 9/15/25, Pool #394478............................... 582
724 7.50%, 9/15/25, Pool #377615............................... 745
384 7.50%, 12/15/25, Pool #384943.............................. 395
386 8.00%, 7/15/26, Pool #391645............................... 400
493 7.00%, 12/15/26, Pool #431681.............................. 501
-------
7,020
-------
Total U.S. Government Agencies 9,223
-------
U.S. TREASURY BONDS (8.9%):
800 7.50%, 11/15/16............................................ 951
-------
Total U.S. Treasury Bonds 951
-------
U.S. TREASURY NOTES (2.8%):
300 5.88%, 11/15/99............................................ 301
-------
Total U.S. Treasury Notes 301
-------
INVESTMENT COMPANIES (2.0%):
214,893 AmSouth U.S.Treasury Fund.................................. 215
-------
Total Investment Companies 215
-------
Total (Cost--$10,452) (a) $10,690
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $10,697.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
Unrealized appreciation.............................................. $254
Unrealized depreciation.............................................. (16)
----
Net unrealized appreciation.......................................... $238
====
See notes to financial statements.
-58-
<PAGE>
AMSOUTH MUTUAL FUNDS
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (83.8%):
Automotive (8.0%):
$ 1,000 Chrysler Financial Corp., 6.08%, 4/6/01................... $ 1,000
4,000 Ford Motor Credit Co., 8.20%, 2/15/02..................... 4,265
3,500 General Motors Acceptance Corp., 6.75%, 2/7/02............ 3,566
--------
8,831
--------
Banking (9.0%):
3,000 Banc One Corp., 6.25%, 9/1/00............................. 3,014
1,500 Firstar Bank, 6.25%, 12/1/02.............................. 1,504
2,000 NationsBank Corp., 5.38%, 4/15/00......................... 1,983
2,500 NationsBank Corp., 5.70%, 9/11/00......................... 2,487
900 Wachovia Bank, 6.30%, 3/15/01............................. 908
--------
9,896
--------
Brokerage Services (5.0%):
2,500 Bear Stearns & Co., Inc., 6.50%, 6/15/00.................. 2,525
1,000 Bear Stearns & Co., Inc., 6.50%, 7/5/00................... 1,010
2,000 Dean Witter Discover & Co., 6.26%, 3/15/00................ 2,010
--------
5,545
--------
Computers & Peripherals (0.9%):
1,000 IBM Corp., 5.95%, 6/2/03.................................. 1,000
--------
Farm Equipment (2.7%):
3,000 John Deere Capital Corp., 5.85%, 1/15/01.................. 2,993
--------
Financial Services (16.8%):
3,000 Ameritech Capital Funding, 6.13%, 10/15/01................ 3,015
1,200 Associates Corp. of North America, 7.50%, 5/15/99......... 1,214
3,000 Associates Corp. of North America, 7.25%, 9/1/99.......... 3,037
500 Beneficial Corp., 7.32%, 11/17/99......................... 508
2,000 CIT Group Holdings, 6.38%, 10/1/02........................ 2,018
1,000 Commercial Credit Co., 8.26%, 11/1/01..................... 1,065
2,500 General Electric Capital Corp., 6.15%, 11/5/01............ 2,513
5,000 Household Finance Co., 8.95%, 9/15/99..................... 5,150
--------
18,520
--------
Food Products & Services (5.3%):
1,000 Campbell Soup Co., 6.15%, 12/1/02........................ 1,010
2,850 Diagio PLC, 6.50%, 9/15/99............................... 2,864
1,000 McDonald's Corp., 5.90%, 5/11/01......................... 1,001
1,000 McDonald's Corp., 6.00%, 6/23/02......................... 998
--------
5,873
--------
Forest & Paper Products (0.9%):
1,000 Mead Corp., 6.60%, 3/1/02................................ 1,014
--------
Industrial Goods & Services (8.3%):
2,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02........... 2,140
1,000 Caterpillar Financial Services, 6.02%, 4/15/02........... 1,000
3,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02............. 3,060
850 Honeywell, Inc., 6.75%, 3/15/02.......................... 869
2,000 McKesson Corp., 6.88%, 3/1/02............................ 2,053
--------
9,122
--------
Insurance (8.8%):
2,000 American General Corp., 7.70%, 10/15/99.................. 2,039
1,500 AON Corp., 6.88%, 10/1/99................................ 1,515
2,000 Hartford Financial Services Group, Inc., 8.20%, 10/15/98. 2,009
1,000 St. Paul Cos., Inc., Series A, 6.17%, 1/15/01............ 1,004
1,000 Travelers Group, Inc., 6.13%, 6/15/00.................... 1,004
2,200 USLife Corp., 6.38%, 6/15/00............................. 2,199
--------
9,770
--------
Leasing (1.9%):
2,000 USL Capital Corp., 8.13%, 2/15/00........................ 2,065
--------
Office Equipment & Services (1.2%):
1,274 Xerox Corp., 8.13%, 4/15/02.............................. 1,362
--------
Oil & Gas Exploration, Production, & Services (2.0%):
2,200 Amoco Co., 6.25%, 10/15/04............................... 2,236
--------
Retail (4.1%):
1,000 Sears & Roebuck, 6.00%, 3/20/03.......................... 989
3,500 Wal-Mart Stores, Inc., 5.85%, 6/1/00..................... 3,500
--------
4,489
--------
</TABLE>
Continued
-59-
<PAGE>
AMSOUTH MUTUAL FUNDS
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities-Electric & Gas (6.2%):
$ 600 Baltimore Gas & Electric Co., 5.50%, 7/15/00............. $ 597
3,000 Florida Power Corp., 6.50%, 12/1/99...................... 3,018
1,500 Georgia Power Co., 6.13%, 9/1/99......................... 1,504
1,770 Northern Illinois Gas Co., 5.88%, 5/1/00................. 1,766
--------
6,885
--------
Utilities-Telecommunications (2.7%):
2,000 Bellsouth Telecommunications, 6.00%, 6/15/02............. 2,000
1,000 Lucent Technologies, Inc., 6.90%, 7/15/01................ 1,026
--------
3,026
--------
Total Corporate Bonds 92,627
--------
U.S. GOVERNMENT AGENCIES (0.9%):
1,000 Federal Home Loan Mortgage Corp., 5.90%, 4/21/00,
Continuously
callable @ 100......................................... 1,000
--------
Total U.S. Government Agencies 1,000
--------
U.S. TREASURY BONDS (5.8%):
6,200 6.38%, 8/15/02........................................... 6,376
--------
Total U.S. Treasury Bonds 6,376
--------
U.S. TREASURY NOTES (7.4%):
8,000 5.88%, 2/15/04........................................... 8,129
--------
Total U.S. Treasury Notes 8,129
--------
INVESTMENT COMPANIES (0.7%):
773,282 AmSouth Prime Obligations Fund........................... 774
325 AmSouth U.S. Treasury Fund............................... 0*
--------
Total Investment Companies 774
--------
Total (Cost $107,181) (a) $108,906
========
</TABLE>
- --------
Percentages indicated are based on net assets of $110,484.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation............................................ $1,870
Unrealized depreciation............................................ (145)
------
Net unrealized appreciation........................................ $1,725
======
* Due to rounding, figure was below thousand dollar threshold.
Continued
-60-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS (97.9%):
$ 545 Altamonte Springs, Health Facilities Authority, Hospital
Revenue, ETM, 5.60%, 10/1/10.............................. $ 596
1,000 Bay County, Florida Resource Recovery Revenue, 6.00%,
7/1/01, MBIA.............................................. 1,056
1,500 Broward County School District, GO, 5.60%, 2/15/07,
Callable 2/15/03 @ 102.................................... 1,597
2,000 Broward County School District, 6.00%, 2/15/07, Callable
2/15/02 @ 102............................................. 2,149
1,000 Clearwater, Water & Sewer Revenue, 4.75%, 12/1/00, AMBAC... 1,020
1,000 Dade County School District, 5.75%, 8/1/03, AMBAC.......... 1,073
1,000 Dade County School District, GO, 6.00%, 7/15/06............ 1,108
1,000 Dade County School District, 5.00%, 2/15/14, Callable
2/15/07 @ 101, MBIA....................................... 999
1,000 Dade County, Aviation Authority, Series 1994 B, 6.25%,
10/1/04, AMBAC............................................ 1,110
1,000 Dade County, Water & Sewer System Revenue, 4.70%, 10/1/04,
FGIC...................................................... 1,026
1,000 Division of Bond Finance, Department of Natural Resources,
Save Our Coast, 6.30%, 7/1/04,
Callable 7/1/01 @ 101, MBIA............................... 1,068
1,000 First Florida Goverment, 4.30%, 7/1/06, AMBAC.............. 995
780 Florida Housing Finance Agency, Homeowner Mortgages, Series
1995 A-1, 5.65%, 1/1/09,
Callable 1/1/06 @ 102..................................... 812
1,000 Florida State Board of Education, 5.00%, 6/1/10, Callable
6/1/05 @ 101.............................................. 1,021
515 Florida State Board of Education, GO, 7.25%, 6/1/23,
Callable 06/1/00 @ 102.................................... 555
2,000 Florida State Board of Education, Series B, GO, 5.38%,
6/1/08, Callable 6/1/07 @ 101............................. 2,141
3,310 Florida State Department of Transportation, Right of Way,
Series B, GO, 5.50%, 7/1/08, Callable 7/1/07 @ 101........ 3,580
1,000 Florida State Division of Bond Finance, Department of
Natural Resources, Preservation 2000,
Series A, 5.40%, 7/1/07, Callable 7/1/03 @ 101, FSA....... 1,051
1,000 Florida State Turnpike Authority, Turnpike Revenue, Series
A, 5.50%, 7/1/11, Callable 7/1/05 @ 101, FGIC............. 1,054
1,250 Ft. Lauderdale, Park Improvement Project, GO, 5.50%,
7/1/17, Callable 1/1/04 @ 101............................. 1,280
1,000 Hillsborough County, Capital Improvements, County Center
Project, Series B, 5.00%, 7/1/13,
Callable 7/1/06 @ 102, MBIA............................... 1,002
750 Hillsborough County, Environmental Land, 6.00%, 7/1/03*,
Callable 7/1/02 @ 102, AMBAC-TCRS......................... 812
1,000 Hillsborough County, Solid Waste & Resource Recovery
Revenue, 5.30%, 10/1/03, MBIA............................. 1,055
1,000 Homestead, Special Insurance Assessment Revenue, 4.90%,
9/1/00, MBIA.............................................. 1,021
1,000 Jacksonville Electric Authority, Water & Sewer, Series B,
5.00%, 10/1/03............................................ 1,041
890 Jacksonville Transportation Authority, Senior Lien, 6.25%,
7/1/06.................................................... 1,001
1,000 Jacksonville, District Water & Sewer Revenue, ETM, 5.20%,
10/1/02, MBIA............................................. 1,043
1,000 Jacksonville, Electric Authority, St. John's River Issue 2-
15, 4.75%, 10/1/07, Callable 4/1/06 @ 101................. 1,023
1,010 Jacksonville, Excise Tax Revenue, Series A, 5.50%, 10/1/05,
FGIC...................................................... 1,087
1,500 Kissimmee Utility Authority, Electric System Revenue,
4.50%, 10/1/05............................................ 1,523
1,000 Lee County, Capital Improvements Revenue, Series B, 4.75%,
10/1/00, MBIA............................................. 1,019
500 Manatee County School Board, Certificates of Participation,
7/1/09, Callable 7/1/06 @ 102, MBIA....................... 554
1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08, Callable
9/1/05 @ 102, FSA......................................... 1,067
1,500 Orange County, 4.38%, 10/1/09, Callable 10/1/08 @ 101...... 1,474
1,000 Orange County, Sales Tax Revenue, Series A, 4.38%, 1/1/01,
FGIC...................................................... 1,011
1,000 Orlando & Orange County Expressway Authority, 4.75%,
7/1/10, FGIC, Callable 7/1/08 @ 101....................... 1,006
1,000 Orlando & Orange County Expressway Authority, Expressway
Revenue, Senior Lien, 4.80%, 7/1/01, AMBAC................ 1,023
1,500 Orlando Utilities Commission, Water & Electric Revenue,
Series B, 5.10%, 10/1/11, Callable 10/1/06 @ 100.......... 1,533
1,500 Orlando, Wastewater System Revenue, Series B, 4.90%,
10/1/06, Callable 10/1/03 @ 102, AMBAC.................... 1,547
</TABLE>
Continued
-61-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS, CONTINUED:
$ 1,000 Osceola County, Capital Improvements, 5.00%, 9/1/02, MBIA. $ 1,036
1,000 Palm Beach County, Criminal Justice Facilities, 5.38%,
6/1/10, FGIC............................................. 1,071
1,000 Pasco County, Water & Sewer Revenue, Series A, 5.50%,
10/1/03, Callable 10/1/02 @ 102, FGIC.................... 1,064
1,000 Pembroke Pines, Public Improvement, 4.63%, 10/1/00, AMBAC. 1,016
1,000 Polk County, Capital Improvement, 4.30%, 12/1/02, FGIC.... 1,011
1,000 Port of Palm Beach, 6.25%, 9/1/08, Callable 9/1/02 @ 102,
MBIA..................................................... 1,091
1,000 Reedy Creek, Improvement District, Series C, 4.90%,
6/1/08, Callable 12/1/05 @ 101, AMBAC.................... 1,030
1,000 Seminole County, Local Option Gas Tax Revenue, 5.00%,
10/1/02, FGIC............................................ 1,036
1,000 St. Johns River Management District, Land Acquisition,
5.10%, 7/1/09, Callable 7/1/05 @ 100, FSA................ 1,030
1,000 St. Petersburg, Utility Tax Revenue, 5.85%, 6/1/02........ 1,059
1,000 Sunshine Skyway Revenue, 6.60%, 7/1/08*, Callable 7/1/01 @
101...................................................... 1,075
1,000 Tallahassee, Consolidated Utility System Revenue, 5.80%,
10/1/08, Callable 10/1/03 @ 102.......................... 1,077
1,000 Tampa Sports Authority, Local Option Sales Tax Revenue,
Stadium Project, 6.00%, 1/1/06, MBIA..................... 1,103
750 Tampa, Water & Sewer Revenue, 5.25%, 10/1/12, Callable
10/1/05 @ 102, FGIC...................................... 772
1,000 Tampa-Hillsborough County, Expressway, 5.00%, 7/1/10,
Callable 7/1/07 @ 101.................................... 1,026
1,000 Volusia County School District, 5.30%, 6/1/01, FSA........ 1,035
-------
Total Florida Municipal Bonds 62,665
-------
INVESTMENT COMPANIES (1.3%):
5,538 AmSouth Tax-Exempt Fund................................... 6
852,743 Dreyfus Florida Money Market Fund......................... 852
-------
Total Investment Companies 858
-------
Total (Cost $61,594) (a) $63,523
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $64,032.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation........ $1,993
Unrealized depreciation........ (64)
------
Net unrealized appreciation.... $1,929
======
* Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly, monthly,
or semiannually.
AMBAC--Insured by American Municipal Bond Assurance Corp.
ETM--Escrowed to Maturity
FGIC--Insured by Financial Guaranty Insurance Corp.
FSA--Insured by Financial Security Assurance
MBIA--Insured by Municipal Bond Insurance Assoc.
TCRS--Transferrable Custodial Receipts
See notes to financial statements.
-62-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (96.4%):
Alabama (53.8%):
$2,245 Alabama State Agriculture & Mechanical University Revenue,
4.55%, 11/1/09, Callable 5/1/08 @ 102, MBIA............... $ 2,208
2,355 Alabama State Agriculture & Mechanical University Revenue,
4.65%, 11/1/10, Callable 5/1/08 @ 102, MBIA............... 2,318
2,035 Alabama State Agriculture & Mechanical University Revenue,
6.50%, 11/1/25, MBIA, Callable 11/1/05 @ 102.............. 2,342
3,060 Alabama State Corrections Institution, 4.90%, 4/1/03, MBIA. 3,150
1,000 Alabama State Industrial Access Road & Bridge Corp.,
Capital Improvements, Series A, 4.40%, 6/1/02............. 1,006
1,520 Alabama State Industrial Access Road & Bridge Corp.,
Capital Improvements, Series A, 4.60%, 6/1/03............. 1,540
3,700 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.75%, 1/1/05, AMBAC................... 3,784
3,880 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.85%, 1/1/06, AMBAC................... 3,982
2,640 Alabama State Mental Health Finance Authority, Special Tax,
4.88%, 5/1/03, MBIA....................................... 2,718
5,000 Alabama State Public School & College Authority, 4.50%,
12/1/01................................................... 5,080
7,350 Alabama State Public School & College Authority, 4.75%,
12/1/03, Callable 6/1/03 @ 103............................ 7,551
3,390 Alabama State Public School & College Authority, 5.00%,
12/1/05, Callable 6/1/03 @ 103............................ 3,529
5,000 Alabama State Public School & College Authority, Capital
Improvement, 4.75%, 11/1/06, Callable 11/1/05 @ 101....... 5,113
1,760 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.25%, 8/15/08,
Callable 8/15/06 @ 100, AMBAC............................. 1,842
1,350 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.38%, 8/15/10,
Callable 8/15/06 @ 100, AMBAC............................. 1,409
2,495 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.40%, 8/15/11,
Callable 8/15/06 @ 100, AMBAC............................. 2,595
5,000 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.50%, 8/15/16,
Callable 8/15/06 @100..................................... 5,157
1,000 Auburn University, University Revenues, General Fee, 5.25%,
6/1/06, Callable 6/1/03 @ 102, MBIA....................... 1,047
1,040 Birmingham Capital Improvement, Series B, 4.80%, 10/1/08,
Callable 4/1/07 @ 102..................................... 1,062
1,375 Birmingham Waterworks & Sewer Board, Water & Sewer Revenue,
5.90%, 1/1/03, Callable 1/1/02 @ 102...................... 1,469
1,340 Birmingham, Capital Improvements, 4.75%, 10/1/10, Callable
4/1/08 @ 102.............................................. 1,348
1,430 Birmingham, Capital Improvements, 4.85%, 10/1/11, Callable
4/1/08 @ 102.............................................. 1,439
1,500 Birmingham, GO, 4.90%, 7/1/06.............................. 1,547
3,465 Birmingham, Industrial Water Board, Industrial Water
Supply, 6.20%, 7/1/08, Pre-refunded 1/1/07 @ 100.......... 3,727
1,100 Birmingham, Industrial Water Board, Industrial Water
Supply, ETM, 5.30%, 3/1/04, Callable 3/1/03 @ 102......... 1,160
1,000 Birmingham, Industrial Water Board, Industrial Water
Supply, ETM, 5.40%, 3/1/05, Callable 3/1/03 @ 102......... 1,060
1,300 Birmingham, Industrial Water Board, Industrial Water
Supply, 5.50%, 3/1/06, Pre-refunded 3/1/05 @ 100.......... 1,387
1,045 Clark & Mobile County, Gas District, 5.60%, 12/1/17,
Callable 12/1/06 @ 102, MBIA.............................. 1,094
9,500 Daphne, Special Care Facilities Financing Authority,
Presbyterian Retirement Corp., 7.30%, 8/15/18,
Pre-refunded 8/15/01 @ 100................................ 10,350
655 Decatur, Warrants, Series E, Limited GO, 4.85%, 8/1/03,
Callable 8/1/02 @ 102..................................... 674
685 Decatur, Warrants, Series E, Limited GO, 5.00%, 8/1/04,
Callable 8/1/02 @ 102..................................... 709
720 Decatur, Warrants, Series E, Limited GO, 5.10%, 8/1/05,
Callable 8/1/02 @ 102..................................... 747
760 Decatur, Warrants, Series E, Limited GO, 5.20%, 8/1/06,
Callable 8/1/02 @ 102..................................... 789
750 Decatur, Warrants, Series E, Limited GO, 5.25%, 8/1/08,
Callable 8/1/02 @ 102..................................... 776
780 Decatur, Warrants, Series E, Limited GO, 5.30%, 8/1/09,
Callable 8/1/02 @ 102..................................... 805
2,845 Florence, Warrants, Series A, GO, 4.65%, 9/1/03, MBIA...... 2,906
1,020 Florence, Warrants, Series B, GO, 4.45%, 9/1/02, AMBAC..... 1,034
</TABLE>
Continued
-63-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Alabama, continued:
$1,065 Florence, Warrants, Series B, GO, 4.55%, 9/1/03, AMBAC... $ 1,084
4,700 Gadsden, East Alabama Medical Clinic Board, Baptist
Hospital of Gadsden, Inc.,
Series A, 7.80%, 11/1/21, Pre-refunded 11/1/01 @ 102.... 5,307
5,450 Hoover, Warrants, 4.50%, 3/1/13, Pre-refunded 3/1/03 @
100..................................................... 5,170
1,000 Houston County, Warrants, Series A, Limited GO, 5.00%,
7/1/02.................................................. 1,031
550 Huntsville Electric, 4.60%, 12/1/09, Callable 12/1/07 @
102..................................................... 546
660 Huntsville Electric, 4.70%, 12/1/10, Callable 12/1/07 @
102..................................................... 655
680 Huntsville Electric, 4.80%, 12/1/11, Callable 12/1/07 @
102..................................................... 675
5,000 Huntsville, Warrants, Series A, GO, 4.50%, 2/1/02........ 5,071
2,780 Huntsville, Water System, Warrants, 5.00%, 5/1/02, AMBAC. 2,861
3,125 Huntsville, Water System, Warrants, 5.05%, 5/1/03,
Callable 5/1/02 @ 102, AMBAC............................ 3,238
1,000 Jefferson County Board of Education, Capital Outlay,
5.40%, 2/15/10, Callable 2/15/03 @ 102, AMBAC........... 1,040
4,000 Jefferson County, GO, 5.30%, 4/1/09, Pre-refunded 4/1/03
@ 102................................................... 4,130
2,400 Jefferson County, Sewer Revenue Warrants, 5.40%, 9/1/04,
Pre-refunded 3/1/03 @ 102.5, MBIA....................... 2,575
5,000 Jefferson County, Warrants, GO, 5.00%, 4/1/04, Callable
4/1/03 @ 102............................................ 5,159
2,500 Mobile County Board of School Commissioners, Warrants,
Capital Outlay, 4.80%, 3/1/02, AMBAC.................... 2,558
1,350 Mobile County, Series A, GO, 5.00%, 2/1/04, Callable
2/1/03 @ 102............................................ 1,396
1,850 Mobile County, Warrants, GO, 6.55%, 2/1/06, Pre-refunded
2/1/00 @ 102............................................ 1,958
1,000 Mobile County, Warrants, Series A, Limited GO, 5.00%,
2/1/04, Callable 2/1/03 @ 102........................... 1,034
5,000 Mobile County, Warrants, Series A, Limited GO, 5.10%,
2/1/05, Callable 2/1/03 @ 102........................... 5,209
1,630 Mobile, Warrants, GO, 6.50%, 2/15/05..................... 1,827
1,685 Mobile, Warrants, GO, 6.50%, 2/15/06, AMBAC.............. 1,905
2,500 Mobile, Warrants, GO, Convention Center Project, 7.13%,
8/15/20, Pre-refunded 8/15/00 @ 102, AMBAC.............. 2,705
3,250 Mobile, Water & Sewer Commissioners, Water & Sewer
Revenue, 5.00%, 1/1/05, FGIC............................ 3,369
1,500 Montgomery County, Warrants, GO, 5.00%, 11/1/04, Callable
11/1/04 @ 102........................................... 1,559
1,040 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/05,
Callable 5/1/03 @ 102................................... 1,078
1,000 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/06,
Callable 5/1/03 @ 102................................... 1,031
3,000 Montgomery, Waterworks & Sanitary Sewer Board, 5.50%,
9/1/08, Callable 9/1/06 @ 101, MBIA..................... 3,210
1,000 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
5.70%, 9/1/02........................................... 1,055
2,500 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.25%, 9/1/08, Callable 9/1/02 @ 102.................... 2,729
3,565 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.30%, 9/1/10, Callable 9/1/02 @ 102.................... 3,888
1,990 Shelby County, Warrants, Series A, 5.60%, 8/1/02, AMBAC.. 2,101
1,830 Shelby County, Warrants, Series A, 5.70%, 2/1/03, AMBAC.. 1,945
335 Talladega County, Industrial Development Board, Cyprus 1
Project, 9.75%, 12/1/13................................. 337
740 Tuscaloosa County, Warrants, GO, 5.60%, 10/1/04.......... 793
1,200 University Alabama General Fee, 4.60%, 6/1/09, Callable
6/1/07 @ 102............................................ 1,201
1,300 University Alabama General Fee, 4.70%, 6/1/10, Callable
6/1/07 @ 102............................................ 1,300
1,500 University Alabama General Fee, 4.75%, 6/1/11, Callable
6/1/07 @ 102............................................ 1,493
2,185 University of South Alabama, University Revenues,
Tuition, 4.70%, 11/15/08, Callable 5/15/06 @ 102, AMBAC. 2,213
--------
176,890
--------
</TABLE>
Continued
-64-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Florida (4.7%):
$6,500 Florida State Board of Education, Capital Outlay, Series
A, GO, 5.00%, 6/1/08.................................... $ 6,766
8,070 Reedy Creek, Improvement District, 5.50%, 10/1/08, AMBAC. 8,743
--------
15,509
--------
Georgia (1.4%):
4,390 Cobb County, Detention Buildings & Facilities, GO, 5.30%,
1/1/07, Callable 1/1/03 @ 102........................... 4,609
--------
Maryland (0.8%):
2,500 Montgomery County, Consolidated Public Improvements,
Series A, GO, 5.50%, 10/1/04............................ 2,675
--------
Minnesota (0.7%):
2,175 Centennial Independent School District, No. 12, Series A,
GO, 5.60%, 2/1/07, MBIA................................. 2,349
--------
Mississippi (0.6%):
2,000 Mississippi State, Capital Improvements, GO, 5.20%,
8/1/11, Callable 8/1/03 @ 100........................... 2,036
--------
Missouri (2.4%):
7,535 Missouri State, Water Pollution, Series B, GO, 5.00%,
8/1/07, Callable 8/1/03 @ 102........................... 7,832
--------
New York (1.6%):
1,150 Hempstead Town, GO, 5.00%, 2/15/09, Callable 2/15/06 @
102..................................................... 1,184
1,500 Municipal Assistance Corp. for New York City, GO, 6.00%,
7/1/05.................................................. 1,648
1,440 Municipal Assistance Corp. for New York City, GO, Series
M, 4.00%, 7/1/03........................................ 1,429
1,000 Municipal Assistance Corp. for New York City, GO, Series
M, 4.20%, 7/1/06........................................ 985
--------
5,246
--------
North Carolina (6.3%):
355 Durham, Water & Sewer Revenue, 4.60%, 6/1/05............. 361
675 Durham, Water & Sewer Revenue, 4.60%, 6/1/06............. 683
555 Durham, Water & Sewer Revenue, 4.60%, 6/1/07............. 560
765 Durham, Water & Sewer Revenue, 4.60%, 6/1/08............. 770
1,565 Greensboro, Public Improvement, 4.70%, 4/1/11............ 1,561
2,355 Greensboro, Public Improvement, 4.70%, 4/1/13............ 2,316
9,875 North Carolina State, Capital Improvements, Series A, GO,
4.70%, 2/1/06, Callable 2/1/04 @ 101.................... 10,122
4,250 Wake County, GO, 4.90%, 3/1/08, Callable 3/1/07 @ 100.5.. 4,398
--------
20,771
--------
Oregon (1.7%):
5,285 Washington County Criminal Justice Facilities, 5.00%,.... 5,472
--------
South Carolina (1.3%):
4,325 Beaufort County, School District, GO, Series B, 4.90%,
3/1/09, Callable 3/1/05 @ 101........................... 4,407
--------
</TABLE>
Continued
-65-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee (4.3%):
$ 2,000 Jackson, Improvements, 5.00%, 3/1/10, Pre-refunded 3/1/05
@ 102................................................... $ 2,038
3,000 Metropolitan Government, Nashville & Davidson County, GO,
5.25%, 5/15/06.......................................... 3,170
3,000 Tennessee State, Series B, GO, 6.40%, 6/1/02, Pre-
refunded 6/1/01 @ 101.5................................. 3,233
5,495 Tennessee State, Series B, GO, 4.60%, 5/1/07, Callable
5/1/06 @ 100............................................ 5,572
--------
14,013
--------
Texas (6.4%):
1,845 Dallas Independent School District, GO, 5.60%, 8/15/05,
Callable 8/15/03 @ 100.................................. 1,949
4,000 Mesquite Independent School District, Series A, 4.70%,
8/15/08, Callable 8/15/07 @ 100......................... 4,047
5,000 Texas State, Series B, GO, 5.25%, 10/1/08, Callable
10/1/03 @ 100........................................... 5,169
3,575 University of Texas, 4.60%, 7/1/08, Callable 7/1/06 @
100..................................................... 3,600
5,455 University of Texas, Series B, 4.25%, 8/15/09, Callable
8/15/07 @ 100........................................... 5,277
1,000 Whitehouse Texas Independent School District, 4.80%,
2/15/12, Callable 2/15/08 @ 100......................... 984
--------
21,026
--------
Utah (3.1%):
3,810 Jordan School District, GO, 4.80%, 6/15/08, Callable
6/15/07 @ 100........................................... 3,887
6,000 Utah State, GO, Series F, 5.50%, 7/1/07.................. 6,468
--------
10,355
--------
Virginia (4.3%):
3,200 Chesapeake, Public Improvements, GO, 5.00%, 5/1/04....... 3,323
2,000 Virginia College Building Authority, Series A, 5.00%,
9/1/12, Callable 9/1/07 @ 101........................... 2,011
5,000 Virginia State, GO, 5.00%, 6/1/08, Callable 6/1/07 @ 100. 5,199
3,500 Virginia State, Public School Authority, Series S, 5.25%,
8/1/09.................................................. 3,707
--------
14,240
--------
Washington (2.2%):
6,500 Washington State, GO, 5.75%, 9/1/08...................... 7,130
--------
Wisconsin (0.8%):
2,650 Wisconsin State, Series 1, GO, 5.30%, 11/1/03............ 2,787
--------
Total Municipal Bonds 317,347
--------
INVESTMENT COMPANIES (2.4%):
51,264 Federated Tax-Free Fund.................................. 51
7,837,952 Goldman Sachs Tax-Free Fund.............................. 7,838
--------
Total Investment Companies 7,889
--------
Total (Cost $315,121) (a) $325,236
========
</TABLE>
Continued
-66-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
- --------
Percentages indicated are based on net assets of $329,153.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation....... $10,361
Unrealized depreciation....... (246)
-------
Net unrealized appreciation... $10,115
=======
AMBAC--Insured by American Municipal Bond Assurance Corp.
ETM--Escrowed to Maturity
FGIC--Insured by Financial Guaranty Insurance Corp.
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
See notes to financial statements.
-67-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER--DOMESTIC (65.9%):
Aircraft Leasing (2.5%):
$ 10,000 International Lease Finance Corp., 5.49%, 10/14/98....... $ 9,887
5,000 International Lease Finance Corp., 5.45%, 1/13/99........ 4,875
--------
14,762
--------
Automotive (6.6%):
10,000 Daimler-Benz North America Corp., 5.50%, 10/22/98........ 9,875
10,000 Ford Motor Credit Co., 5.32%, 10/5/98.................... 9,904
10,000 Ford Motor Credit Co., 5.50%, 10/28/98................... 9,866
10,000 General Motors Acceptance Corp., 5.50%, 9/16/98.......... 9,929
--------
39,574
--------
Banking (5.3%):
5,000 Bankers Trust, 5.48%, 11/24/98........................... 4,912
7,000 Bankers Trust, 5.50%, 2/5/99............................. 6,799
5,000 SunTrust Bank, 5.53%, 9/17/98............................ 4,964
5,000 SunTrust Bank, 5.48%, 9/22/98............................ 4,960
10,000 SunTrust Bank, 5.50%, 10/6/98............................ 9,900
--------
31,535
--------
Beverages (2.5%):
10,000 Diageo Capital, 5.48%, 8/10/98........................... 9,986
5,000 Diageo Capital, 5.46%, 10/2/98........................... 4,953
--------
14,939
--------
Chemicals (0.8%):
5,000 Monsanto Co., 5.47%, 9/22/98............................. 4,960
--------
Consumer Goods (3.3%):
10,000 Hasbro, Inc, 5.50%, 10/1/98.............................. 9,907
10,000 Proctor & Gamble, 5.48%, 9/23/98......................... 9,919
--------
19,826
--------
Electric Utility (1.7%):
10,000 Alabama Power Co., 5.49%, 8/20/98........................ 9,971
--------
Entertainment (1.1%):
7,000 Walt Disney Co., 5.33%, 12/18/98......................... 6,856
--------
Farm Equipment (3.3%):
10,000 John Deere Capital Corp., 5.45%, 10/13/98................ 9,889
10,000 John Deere Capital Corp., 5.47%, 11/13/98................ 9,842
--------
19,731
--------
Financial Services (13.4%):
5,000 Abn/Amro N.A. Finance,
5.38%, 10/5/98.......................................... 4,951
5,000 Abn/Amro N.A. Finance,
5.48%, 11/5/98.......................................... 4,927
10,000 American Express, 5.45%, 8/5/98.......................... 9,995
10,000 American Express, 5.52%, 9/1/98.......................... 9,952
10,000 American General Finance, 5.49%, 8/7/98.................. 9,992
5,000 Associates Corp. of North America, 5.50%, 8/4/98......... 4,998
5,000 Associates Corp. of North America, 5.50%, 9/14/98........ 4,966
10,000 General Electric Capital Corp., 5.51%, 9/2/98............ 9,951
5,000 General Electric Capital Corp., 5.50% 10/7/98............ 4,949
5,000 General Electric Capital Corp., 5.43%, 12/23/98.......... 4,891
5,000 Island Finance Puerto Rico, 5.52%, 8/21/98............... 4,985
5,000 Rabobank USA Finance Corp., 5.47%, 10/20/98.............. 4,939
--------
79,496
--------
Food Products & Services (2.5%):
5,000 McCormick & Co., 5.43%, 10/19/98......................... 4,940
10,000 McCormick & Co., 5.48%, 11/3/98.......................... 9,857
--------
14,797
--------
Insurance (2.5%):
10,000 Marsh & McLennan, 5.50%, 2/8/99.......................... 9,708
5,000 USAA Capital Corp., 5.49%, 9/11/98....................... 4,969
--------
14,677
--------
</TABLE>
Continued
-68-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER--DOMESTIC, CONTINUED:
Oil & Gas Explor Prod & Ser (3.3%):
$ 10,000 Texaco, Inc., 5.50%, 8/3/98.............................. $ 9,997
10,000 Texaco, Inc., 5.48%, 9/24/98............................. 9,918
--------
19,915
--------
Pharmaceuticals (6.7%):
5,000 Glaxo Wellcome, Inc., 5.50%, 9/8/98...................... 4,971
10,000 Glaxo Wellcome, Inc., 5.51%, 9/17/98..................... 9,928
10,000 Pfizer, Inc., 5.50%, 9/10/98............................. 9,939
5,000 Smithkline Beecham Corp., 5.51%, 8/18/98................. 4,987
10,000 Smithkline Beecham Corp., 5.49%, 10/16/98................ 9,884
--------
39,709
--------
Security Brokers & Dealers (6.1%):
7,000 Bear Stearns & Co., 5.45%, 9/18/98....................... 6,949
10,000 Credit Suisse First Boston, 5.51%, 9/3/98................ 9,950
10,000 Merrill Lynch, 5.52%, 9/21/98............................ 9,922
5,000 Merrill Lynch, 5.52%, 1/4/99............................. 4,880
5,000 Salomon Smith Barney, 5.50%, 1/21/99..................... 4,868
--------
36,569
--------
Technology (2.5%):
10,000 IBM Credit Corp., 5.52%, 8/25/98......................... 9,963
5,000 IBM Credit Corp., 5.40%, 9/25/98......................... 4,959
--------
14,922
--------
Telecommunications (1.8%):
6,000 BellSouth Telecommunications, Inc., 5.49%, 8/20/98....... 5,983
5,000 Lucent Technology, 5.45%, 9/25/98........................ 4,958
--------
10,941
--------
Total Commercial Paper--Domestic 393,180
--------
CERTIFICATES OF DEPOSIT (2.5%):
5,000 Deutsche Bank Yankee, 5.66%, 3/26/99..................... 4,998
5,000 First National Bank of Chicago, 5.75, 5/10/99............ 4,998
5,000 Swiss Bank Yankee, 5.65%, 3/24/99........................ 4,999
--------
Total Certificates of Deposit 14,995
--------
COMMERCIAL PAPER--FOREIGN (2.8%):
Brazil (1.2%):
7,000 Petroleo Brasileira, 5.47%, 8/27/98...................... 6,973
--------
Canada (0.8%):
5,000 Toronto Dominion, 5.52%, 11/30/98........................ 4,907
--------
United Kingdom (0.8%):
5,000 Abbey National, 5.40%, 10/5/98........................... 4,951
--------
Total Commercial Paper--Foreign 16,831
--------
CORPORATE BONDS (6.3%):
Aircraft Leasing (0.8%):
5,000 International Lease Finance, 6.63%, 4/1/99............... 5,028
--------
Automotive (0.5%):
3,043 Ford Motor Credit, 7.25%, 5/15/99........................ 3,077
--------
Financial Services (0.9%):
5,000 Household Finance, 7.75%, 6/1/99......................... 5,080
--------
Security Brokers & Dealers (2.0%):
12,000 Morgan Stanley Dean Witter, 7.88%, 12/15/98.............. 12,094
--------
Technology (1.5%):
5,000 IBM Credit Corp., 5.56%*, 8/17/98**...................... 5,000
4,000 IBM Credit Corp., 5.68%, 5/7/99.......................... 3,998
--------
8,998
--------
Telecommunications (0.6%):
3,305 GTE North, Inc., 5.50%, 2/15/99.......................... 3,299
--------
Total Corporate Bonds 37,576
--------
FLOATING RATE FUNDING AGREEMENTS (6.2%):
Insurance (6.2%):
12,500 Commonwealth Life Insurance Co., 5.86%*, 8/1/98**........ 12,500
12,000 General American Life Insurance Co., 5.85%*, 8/1/98**.... 12,000
12,500 Peoples Security Life Insurance Co., 5.81%*, 8/1/98**.... 12,500
--------
Total Floating Rate Funding Agreements 37,000
--------
</TABLE>
Continued
-69-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- ---------
<C> <S> <C>
REPURCHASE AGREEMENTS (17.5%):
$104,262 C.S. First Boston Corp., 5.67%, dated 7/31/98, due
8/3/98, proceeds at maturity of $104,262,
(Collateralized by $107,600 FNMA Medium Term Notes,
7/24/00-9/27/05, 5.56%-7.25%, market value--$109,478)... $104,262
--------
Total Repurchase Agreements...................................... 104,262
--------
Total (Amortized Cost $603,844) (a).............................. $603,844
========
</TABLE>
- --------
Percentages indicated are based on net assets of $596,935.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate security. Rate presented represents rate in effect at July 31,
1998. Date presented reflects next rate change date.
** Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly,
monthly, quarterly, or semianually.
FNMA--Federal National Mortgage Assoc.
See notes to financial statements.
-70-
<PAGE>
AMSOUTH MUTUAL FUNDS
U.S. TREASURY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY BILLS (33.1%):
$15,000 8/6/98................................................... $ 14,989
15,000 8/13/98.................................................. 14,976
12,000 8/20/98.................................................. 11,968
7,000 8/27/98.................................................. 6,975
6,000 9/3/98................................................... 5,973
10,000 9/10/98.................................................. 9,946
10,000 9/17/98.................................................. 9,935
15,000 9/24/98.................................................. 14,886
10,000 10/29/98................................................. 9,878
10,000 11/12/98................................................. 9,856
10,000 11/19/98................................................. 9,844
--------
Total U.S. Treasury Bills 119,226
--------
U.S. TREASURY NOTES (32.5%):
14,000 5.88%, 8/15/98........................................... 14,002
5,000 9.25%, 8/15/98........................................... 5,008
5,000 4.75%, 8/31/98........................................... 4,998
5,000 6.13%, 8/31/98........................................... 5,003
7,000 4.75%, 9/30/98........................................... 6,992
5,000 6.00%, 9/30/98........................................... 5,005
16,000 7.13%, 10/15/98.......................................... 16,056
5,000 4.75%, 10/31/98.......................................... 4,991
7,000 5.88%, 10/31/98.......................................... 7,006
10,000 5.50%, 11/15/98.......................................... 10,004
14,000 5.13%, 11/30/98.......................................... 13,984
10,000 5.13%, 12/31/98.......................................... 9,995
14,000 6.25%, 3/31/99........................................... 14,077
--------
Total U.S. Treasury Notes 117,121
--------
REPURCHASE AGREEMENTS (34.2%):
61,200 C.S. First Boston Corp., 5.60%, dated 7/31/98, due
8/3/98, proceeds at maturity of $61,200, (Collateralized
by $61,099 U.S. Treasury Notes, 5.75%-6.50%,
8/31/00-8/15/05, market value--$62,886)................... 61,200
62,000 Salomon Smith Barney-Treasury, 5.62%, dated 7/31/98, due
8/3/98, proceeds at maturity of $62,000, (Collateralized
by $41,195 FMC Discount Notes 9/18/98, $425 FNMA 6.48%
8/27/07, and $20,361 U.S. Treasury Notes 3.63% 7/15/02,
market value--$63,193).................................. 62,000
--------
Total Repurchase Agreements 123,200
--------
Total (Amortized Cost $359,547) (a) $359,547
========
</TABLE>
- --------
Percentages indicated are based on net assets of $360,125.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
FMC--Federal Maritime Commission
FNMA--Federal National Mortgage Assoc.
See notes to financial statements.
-71-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
TAX ANTICIPATION NOTES (8.0%):
Arizona (1.7%):
$1,500 Arizona State, Transportation Board, Excise Tax &
Revenue, 5.50%, 7/1/99................................. $ 1,526
-------
California (1.3%):
1,200 Los Angeles County, Tax & Revenue, 4.50%, 6/30/99....... 1,209
-------
New Jersey (1.7%):
1,500 Essex County, Tax & Revenue, 4.00%, 11/30/98............ 1,502
-------
New Mexico (1.1%):
1,000 New Mexico State, Tax & Revenue, 4.25%, 6/30/99......... 1,006
-------
Oregon (1.1%):
1,000 Multnomah County, Tax & Revenue, 4.50%, 6/30/99......... 1,008
-------
Pennsylvania (1.1%):
1,000 Philadelphia, Tax & Revenue, 4.25%, 6/30/99............. 1,005
-------
Total Tax Anticipation Notes 7,256
-------
DEMAND NOTES (43.9%):
Alabama (15.3%):
1,500 Alabama Housing Finance Authority, Huntsville, Series B,
3.65%*, 8/5/98**, FNMA................................. 1,500
2,000 Alabama State Housing Finance Authority, Multi Family
Housing Revenue, Rime VLG Hoover Project, Series A,
3.65%*, 8/5/98**, FNMA................................. 2,000
1,000 Bon Air, Industrial Development Board, Avondale Mills,
3.65%*, 8/5/98**, LOC: Trust Co. Bank.................. 1,000
2,000 City of Birmingham, Series 1992A, GO, 3.50%*, 8/5/98**,
LOC: Regions Bank...................................... 2,000
1,600 Columbia, Industrial Development Board, PCR, Alabama
Power Co. Project, Series D, 3.70%*, 8/3/98**.......... 1,600
1,000 Jacksonville, Industrial Development Board, Parker
Hannifin Corp., 3.50%*, 8/6/98**....................... 1,000
2,000 Mobile, Industrial Development Board, PCR, Alabama Power
Co. Project, Series B, 3.65%*, 8/6/98**................ 2,001
1,500 North Alabama, Environmental Improvement Authority, PCR,
Reynolds Metals Co., 3.75%*, 8/3/98**, LOC: Bank of
Nova Scotia............................................ 1,500
1,365 Stevenson, Industrial Development Board, Environmental
Improvement Revenue, Mead Corp. Project,
3.70%*, 8/3/98**, LOC: Credit Suisse................... 1,365
-------
13,966
-------
California (1.0%):
900 Los Angeles Regional Airport Improvement Corp., 3.75%*,
8/3/98**, LOC: Wachovia Bank of Georgia................ 900
-------
Florida (3.5%):
1,500 Alachua County Florida Health, 3.50%*, 8/5/98**, MBIA... 1,500
1,680 Laurel Club, Certificates of Participation, Series 96A,
3.70%*, 8/5/98**, LOC: Swiss Bank Corp. ............... 1,680
-------
3,180
-------
</TABLE>
Continued
-72-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
DEMAND NOTES, CONTINUED:
Georgia (1.9%):
$1,000 Cobb County, Post Mill Project, 3.65%*, 8/5/98**........ $ 1,000
750 Savannah, Downtown Development Authority, Parking
Facilities Project, 3.50%*, 8/5/98**, SPA: National
Westminster Bank PLC................................... 750
-------
1,750
-------
Illinois (2.4%):
1,000 Chicago O'Hare International Airport, 3.50%*, 8/5/98**.. 1,000
1,200 Illinois Health Authority, Decatur Memorial Hospital,
Project A, 3.55%*, 8/5/98**............................ 1,200
-------
2,200
-------
Minnesota (3.9%):
1,000 Minneapolis, GO, Sewer Improvements, Series A, 3.40%*,
8/5/98**, LOC: Bayerische Vereinsbank.................. 1,000
2,500 Minneapolis, GO, Sewer Improvements, Series B, 3.40%*,
8/6/98**............................................... 2,500
-------
3,500
-------
Missouri (1.0%):
900 Kansas City, Industrial Development Authority, Hospital
Revenue, Resh Health Services System, 3.70%*, 8/3/98**,
MBIA, SPA: Bank of America............................. 900
-------
New York (4.3%):
1,000 New York GO, 3.70%*, 8/7/98**, LOC: Morgan Guaranty
Trust.................................................. 1,000
500 New York GO, 3.70%*, 8/7/98**, LOC: Morgan Guaranty
Trust.................................................. 500
50 New York GO, 3.70%*, 8/7/98**, LOC: Morgan Guaranty
Trust.................................................. 500
2,000 New York GO, 3.70%*, 8/7/98**, LOC: Morgan Guaranty
Trust.................................................. 2,000
-------
4,000
-------
North Carolina (0.6%):
500 North Carolina Educational Facilities, 3.50%*, 8/6/98**,
LOC: Wachovia B&T...................................... 500
-------
Pennsylvania (2.4%):
2,200 Schuylkill County, Industrial Development Authority,
Resource Recovery Revenue, Gilberton Power Project,
3.50%*, 8/5/98**, LOC: Mellon Bank..................... 2,200
-------
South Carolina (1.1%):
985 South Carolina State Jobs & Economic Development
Revenue, St. Francis Hospital, 3.75%*, 8/3/98**,
LOC: Chase Manhattan Bank.............................. 985
-------
Tennessee (0.7%):
600 Sullivan County, Industrial Develop Board , PCR, Mead
Corp. Project,, 3.70%*, 8/3/98**,
LOC: Union Bank of Switzerland......................... 600
-------
</TABLE>
Continued
-73-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
DEMAND NOTES, CONTINUED:
Texas (2.1%):
$ 300 Grapevine Industrial Development Corp., American
Airlines-A2, 3.75%*, 8/3/98**,
LOC: Morgan Guaranty Trust............................. $ 300
600 Grapevine Industrial Development Corp., American
Airlines-B4, 3.75%*, 8/3/98**,
LOC: Morgan Guaranty Trust............................. 600
1,000 Lone Star Texas Airport Improvement Authority, Revenue,
3.75%*, 8/3/98**....................................... 1,000
-------
1,900
-------
Washington (1.8%):
600 Seattle Municipal Light & Power, 3.50%*, 8/5/98**....... 600
1,000 Washington State, GO, Series 96A, 3.47%*, 8/5/98**...... 1,000
-------
1,600
-------
West Virginia (0.8%):
700 Putnam County, Industrial Development Revenue, FMC
Corp., 3.60%*, 8/3/98**,
LOC: Union Bank of Switzerland......................... 700
-------
Wisconsin (1.1%):
1,000 Wisconsin State Health, 3.55%*, 8/5/98**, AMBAC......... 1,000
-------
Total Demand Notes 39,881
-------
TAX FREE COMMERCIAL PAPER (10.8%):
Alabama (2.2%):
1,000 Fairfield Alabama Industrial Board, 3.60%, 12/3/98...... 1,000
1,000 Port City Medical Clinic Board of Mobile, 3.70%, 8/7/98. 1,000
-------
2,000
-------
Florida (2.5%):
1,300 Sarasota County, 3.65%, 8/10/98......................... 1,300
1,000 West Orange Memorial Hospital, 3.45%, 8/5/98............ 1,000
-------
2,300
-------
Indiana (1.1%):
1,000 Mt. Vernon Indiana Pollution Control Corp., General
Electric, 3.55%, 9/9/98................................ 1,000
-------
Kentucky (1.1%):
1,000 Kentucky Asset / Liability Commission Tax & Revenue,
4.50%, 6/25/99......................................... 1,008
-------
Mississippi (1.1%):
1,000 Mississippi Hospital Equipment, 3.60%, 10/5/98.......... 1,000
-------
New York (2.8%):
1,500 New York State Dorm, 3.50%, 10/9/98..................... 1,500
1,000 New York State Dorm, 3.50%, 9/14/98..................... 1,000
-------
2,500
-------
Total Tax Free Commercial Paper 9,808
-------
</TABLE>
Continued
-74-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS (30.7%):
Alabama (0.4%):
$ 350 Alabama State Municipal Electric Power Authority, 5.25%,
9/1/98................................................. $ 351
-------
Arizona (1.4%):
250 Phoenix, GO, Water Utility Improvements, 4.40%, 7/1/99.. 251
1,000 Pima County Street & Highway Revenue, 5.00%, 7/1/99..... 1,012
-------
1,263
-------
Connecticut (0.1%):
120 Hartford Metropolitan District, GO, Water Utility
Improvements, 6.00%, 8/1/98............................ 120
-------
Florida (0.6%):
500 Dade County Public School Tax Revenue, 4.00%,10/1/98.... 500
-------
Georgia (5.3%):
1,000 Atlanta Airport Revenue, 4.90%, 1/1/99.................. 1,005
1,000 Georgia State, GO, 7.40%, 8/3/98........................ 1,000
1,000 Georgia State, GO, School Improvements, Series F, 6.50%,
12/1/98................................................ 1,010
1,700 Metropolitan Atlanta Rapid Transit Authority, 5.90%,
7/1/99................................................. 1,735
-------
4,750
-------
Hawaii (1.7%):
1,500 Hawaii State, GO, 5.00%, 11/1/98........................ 1,505
-------
Illinois (1.4%):
1,000 Illinois Housing Development Authority, 3.65%, 8/1/17,
Puttable 6/29/99 @100.................................. 1,000
300 Illinois State, GO, 4.50%, 2/1/99....................... 301
-------
1,301
-------
Indiana (0.6%):
500 .75Upland Indiana Economic Development, Taylor
University Project, 7.75%, 9/1/09, FSA, Callable 9/1/98
@102................................................... 512
-------
Kentucky (1.1%):
1,000 Kentucky State Turnpike Authority, 4.80%, 7/1/99........ 1,010
-------
Maryland (1.1%):
1,000 Baltimore County, GO, 6.90%, 9/1/99..................... 1,023
-------
Minnesota (0.8%):
755 Minnesota State Housing Finance Authority, Rental
Housing, Series C2, 4.20%, 8/1/98...................... 755
-------
Mississippi (0.6%):
545 Mississippi State, GO, 5.00%, 6/1/99.................... 551
-------
New Jersey (0.7%):
615 Monmouth County, GO, 4.25%, 12/1/98..................... 616
-------
</TABLE>
Continued
-75-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New York (1.9%):
$ 85 New York, GO, Zero Coupon, 8/3/98....................... $ 85
555 New York, GO, Zero Coupon, 8/3/98....................... 555
400 New York Public Housing Authority, 3.25%,1/1/99......... 399
715 United Nations Development Corp., 4.20%, 7/1/99......... 718
-------
1,757
-------
North Carolina (0.3%):
250 Charlotte Certificates of Participation, 6.15%, 12/1/98. 252
-------
Ohio (1.1%):
1,000 Ohio State Public Facilities Commission, 4.25%, 12/1/98. 1,002
-------
Pennsylvania (2.1%):
1,850 Pennsylvania State, GO, 5.30%, 7/1/99................... 1,877
-------
Tennessee (2.2%):
1,000 Memphis Electric System, 5.30%, 1/4/99.................. 1,007
1,000 Shelby County, Health Educational & Hospital, Lebonheur
Childrens Medical Center, 7.60%, 8/15/19, Callable
8/13/98 @ 102.......................................... 1,021
-------
2,028
-------
Texas (5.1%):
635 Houston Independent School District, GO, 7.00%, 8/15/98. 636
660 San Antonio, GO, 6.00%, 8/1/09, Callable 8/1/98 @ 100... 660
500 Southwest Texas State University, 4.25%, 8/3/98......... 500
2,575 Texas State, GO, Series A, 4.75%, 8/31/98............... 2,577
250 Weslaco, GO, 6.70%, 2/15/99............................. 254
-------
4,627
-------
Utah (1.1%):
1,000 Intermountain Power Agency, 5.50%, 7/1/99............... 1,016
-------
Washington (1.1%):
1,000 Washington State, GO, 4.20%, 9/1/98..................... 1,001
-------
Total Municipal Bonds 27,817
-------
INVESTMENT COMPANIES (6.1%):
3,042,500 Federated Tax-Free Fund................................. 3,043
2,519,907 Goldman Sachs Tax-Free Fund............................. 2,520
-------
Total Investment Companies 5,563
-------
Total (Amortized Cost $90,325) (a) $90,325
=======
</TABLE>
Continued
-76-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
July 31, 1998
(Amounts in thousands, except shares)
- --------
Percentages indicated are based on net assets of $90,741.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate security. Rate presented represents rate in effect at July 31,
1998. Date presented reflects next rate change date.
** Put and demand features exist allowing the fund to require the repurchase of
the instrument within variable time periods including daily, weekly,
monthly, and semiannually.
AMBAC--Insured by American Municipal Bond Assurance Corp.
FMC--Federal Maritime Commission
FNMA--Insured by Federal National Mortgage Assoc.
FSA--Insured by Financial Security Assoc.
GO--General Obligation
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Assoc.
PCR--Pollution Control Revenue
SPA--Standby Purchase Agreement
See notes to financial statements.
-77-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
July 31, 1998
1. ORGANIZATION:
AmSouth Mutual Funds (the "Trust") was organized on October 1, 1987, and is
registered under the Investment Company Act of 1940, as amended ("the 1940
Act"), as a diversified, open-end investment company established as a
Massachusetts business trust.
The Trust is authorized to issue an unlimited number of shares without par
value. The Trust currently offers shares of the AmSouth Regional Equity Fund
("Regional Equity"), the AmSouth Equity Fund ("Equity"), the AmSouth Equity
Income Fund ("Equity Income"), the AmSouth Capital Growth Fund ("Capital
Growth"), the AmSouth Small Cap Fund ("Small Cap"), the AmSouth Balanced Fund
("Balanced"), the AmSouth Bond Fund ("Bond"), the AmSouth Government Income
Fund ("Government Income"), the AmSouth Limited Maturity Fund ("Limited
Maturity"), the AmSouth Florida Tax-Free Fund ("Florida Tax-Free"), the
AmSouth Municipal Bond Fund ("Municipal Bond")(collectively, "the variable
net asset funds"), the AmSouth Prime Obligations Fund ("Prime Obligations"),
the AmSouth U.S. Treasury Fund ("U.S. Treasury") and the AmSouth Tax-Exempt
Fund ("Tax-Exempt")(collectively, "the money market funds")(collectively,
"the Funds" and individually "a Fund").
The Regional Equity Fund and the Equity Fund seek growth of capital. The
Equity Income Fund seeks above average income and capital appreciation. The
Capital Growth Fund seeks long-term capital appreciation and growth of
income. The Small Cap Fund seeks capital appreciation. The Balanced Fund
seeks to obtain long-term capital growth and to produce a reasonable amount
of current income. The Bond Fund, Government Income Fund, and Limited
Maturity Fund seek current income, consistent with the preservation of
capital. The Florida Tax-Free Fund seeks to produce as high a level of
current interest income exempt from federal income taxes and Florida
intangible taxes as is consistent with the preservation of capital. The
Municipal Bond Fund seeks a high level of current interest income exempt from
federal income taxes as is consistent with the preservation of capital. The
Prime Obligations Fund and U.S. Treasury Fund seek current income with
liquidity and stability of principal. The Tax-Exempt Fund seeks to produce as
high a level of current interest income exempt from federal income taxes as
is consistent with the preservation of capital and relative stability of
principal.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. These policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITIES VALUATION:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost which, combined with
accrued interest, approximates market value. Under the
Continued
-78-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
amortized cost method, discount or premium is amortized on a constant basis
to the maturity of the security.
Investments in common stocks, corporate bonds, municipal bonds, commercial
paper and U.S. Government securities of the variable net asset value funds
are valued on the basis of valuations provided by dealers or an independent
pricing service approved by the Board of Trustees. Investments in
investment companies are valued at their net asset values as reported by
such companies. The differences between cost and market values of such
investments are reflected as unrealized appreciation or depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Realized gains or losses from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation and from registered broker/dealers
which AmSouth Bank ("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.
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 at
least annually.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net assets
based on their federal tax-basis treatment; temporary differences do not
require reclassification. Dividends and distributions to shareholders which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in
Continued
-79-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
excess of net investment income or distributions in excess of net realized
gains. To the extent they exceed net investment income and net realized
gains for tax purposes, they are reported as distributions of capital.
As of July 31,1998, the following reclassifications have been made to
increase (decrease) such amounts with offsetting adjustments made to paid-
in-capital (amounts in thousands):
<TABLE>
<CAPTION>
UNDISTRIBUTED ACCUMULATED NET
NET INVESTMENT REALIZED GAINS
INCOME ON INVESTMENTS
-------------- ---------------
<S> <C> <C>
Regional Equity Fund.......................... $ 25 $ (25)
Equity Income Fund............................ 3 (3)
Capital Growth Fund........................... 39 (37)
Small Cap Fund................................ 19 --
Balanced Fund................................. 341 (341)
Bond Fund..................................... 258 (258)
Government Income Fund........................ 66 (66)
Limited Maturity Fund......................... 62 (62)
Municipal Bond Fund........................... 6 (6)
U.S. Treasury Fund............................ 7 (7)
</TABLE>
FEDERAL INCOME TAXES:
It is the policy of each Fund to qualify or to continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Trust are prorated to the
Funds on the basis of relative net assets. Fees paid under a Fund's
shareholder servicing or distribution plans are borne by the specific class
of shares to which they apply.
UNAMORTIZED ORGANIZATIONAL COSTS:
Costs incurred by the Equity Income, the Capital Growth, the Small Cap and
the Municipal Bond Funds in connection with their 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 the Funds.
Continued
-80-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
period ended July 31, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
--------- --------
<S> <C> <C>
Regional Equity Fund...................................... $ 12,194 $ 14,534
Equity Fund............................................... 163,056 223,180
Equity Income Fund........................................ 49,072 27,482
Capital Growth Fund....................................... 20,237 6,453
Small Cap Fund............................................ 11,503 4,456
Balanced Fund............................................. 91,596 101,340
Bond Fund................................................. 144,464 127,735
Government Income Fund.................................... 3,591 4,245
Limited Maturity Fund..................................... 45,303 69,751
Florida Tax Free Fund..................................... 24,933 16,184
Municipal Bond Fund....................................... 93,357 97,986
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
The Group has issued three classes of Fund shares in each of the Regional
Equity Fund, the Equity Fund, the Equity Income Fund, the Capital Growth
Fund, the Small Cap Fund, the Balanced Fund, the Bond Fund, and the Prime
Obligations: Classic Shares, Premier Shares, and B Shares. The Group has
issued two classes of Fund shares in each of the Government Income Fund, the
Limited Maturity Fund, the Florida Tax-Free Fund, the Municipal Bond Fund,
the U.S. Treasury Fund, and the Tax-Exempt Fund: Classic Shares and Premier
Shares. Each class of shares in a Fund has identical rights and privileges
except with respect to fees paid under shareholder servicing or distribution
plans, expenses allocable exclusively to each class of shares, voting rights
on matters affecting a single class of shares, and the exchange privilege of
each class of shares.
Transactions in capital shares for the Funds for the periods and years ended
July 31, 1998 and 1997 were as follows: (amounts in thousands)
Continued
-81-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
<TABLE>
<CAPTION>
REGIONAL EQUITY EQUITY INCOME
FUND EQUITY FUND FUND
------------------ -------------------- ----------------
PERIOD
YEAR ENDED
YEAR YEAR YEAR YEAR ENDED JULY
ENDED ENDED ENDED ENDED JULY 31,
JULY 31, JULY 31, JULY 31, JULY 31, 31, 1997
1998 1997 1998 1997 1998 (A)
-------- -------- --------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares
issued................ $ 6,724 $ 34,563 $ 35,457 $ 556,310 $12,824 $20,123
Dividends reinvested... 1,663 1,945 3,628 14,093 1,113 37
Shares redeemed........ (11,554) (16,518) (25,227) (131,517) (5,099) (292)
-------- -------- --------- --------- ------- -------
Change in net assets
from Classic Share
transactions.......... $ (3,167) $ 19,990 $ 13,858 $ 438,886 $ 8,838 $19,868
======== ======== ========= ========= ======= =======
PREMIER SHARES:*
Proceeds from shares
issued................ $ 22,574 $ -- $ 147,122 $ -- $ 4,442 $ --
Dividends reinvested... 1,325 -- 11,396 -- 155 --
Shares redeemed........ (27,608) -- (178,749) -- (1,253) --
-------- -------- --------- --------- ------- -------
Change in net assets
from Premier Share
transactions.......... $ (3,709) $ -- $ (20,231) $ -- $ 3,344 $ --
======== ======== ========= ========= ======= =======
CLASS B SHARES:**
Proceeds from shares
issued................ $ 2,405 $ -- $ 8,035 $ -- $ 8,243 $ --
Dividends reinvested... 27 -- 101 -- 108 --
Shares redeemed........ (247) -- (328) -- (508) --
-------- -------- --------- --------- ------- -------
Change in net assets
from Class B Share
transactions.......... $ 2,185 $ -- $ 7,808 $ -- $ 7,843 $ --
======== ======== ========= ========= ======= =======
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................. 231 1,439 1,497 26,434 1,071 1,923
Reinvested............. 58 84 159 773 96 4
Redeemed............... (397) (683) (1,075) (6,713) (418) (27)
-------- -------- --------- --------- ------- -------
Change in Classic
Shares................ (108) 840 581 20,494 749 1,900
======== ======== ========= ========= ======= =======
PREMIER SHARES:*
Issued................. 764 -- 6,192 -- 366 --
Reinvested............. 46 -- 501 -- 13 --
Redeemed............... (949) -- (7,487) -- (104) --
-------- -------- --------- --------- ------- -------
Change in Premier
Shares................ (139) -- (794) -- 275 --
======== ======== ========= ========= ======= =======
CLASS B SHARES:**
Issued................. 81 -- 332 -- 684 --
Reinvested............. 1 -- 4 -- 9 --
Redeemed............... (8) -- (13) -- (41) --
-------- -------- --------- --------- ------- -------
Change in Class B
Shares................ 74 -- 323 -- 652 --
======== ======== ========= ========= ======= =======
</TABLE>
- --------
(a) For the period from March 20, 1997 (commencement of operations) through
July 31, 1997.
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
** For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
Continued
-82-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
<TABLE>
<CAPTION>
CAPITAL GROWTH SMALL CAP
FUND FUND BALANCED FUND
-------------- --------- -------------------
PERIOD PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
1998 (A) 1998 (B) 1998 1997
-------------- --------- -------- ---------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares issued..... $11,600 $1,559 $ 8,568 $ 79,422
Dividends reinvested............ -- -- 5,169 20,289
Shares redeemed................. (695) (47) (21,937) (121,323)
------- ------ -------- ---------
Change in net assets from
Classic Share transactions..... $10,905 $1,512 $ (8,200) $ (21,612)
======= ====== ======== =========
PREMIER SHARES:*
Proceeds from shares issued..... $ 457 $5,609 $ 82,900 $ --
Dividends reinvested............ -- -- 17,248 --
Shares redeemed................. (25) (72) (88,638) --
------- ------ -------- ---------
Change in net assets from
Premier Share transactions..... $ 432 $5,537 $ 11,510 $ --
======= ====== ======== =========
CLASS B SHARES:**
Proceeds from shares issued..... $ 3,449 $ 967 $ 5,405 $ --
Dividends reinvested............ -- -- 105 --
Shares redeemed................. (213) (22) (180) --
------- ------ -------- ---------
Change in net assets from Class
B Share transactions........... $ 3,236 $ 945 $ 5,330 $ --
======= ====== ======== =========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued.......................... 1,106 155 567 5,836
Reinvested...................... -- -- 351 1,523
Redeemed........................ (66) (5) (1,453) (8,820)
------- ------ -------- ---------
Change in Classic Shares........ 1,040 150 (535) (1,461)
======= ====== ======== =========
PREMIER SHARES:*
Issued.......................... 41 562 5,525 --
Reinvested...................... -- -- 1,182 --
Redeemed........................ (2) (8) (5,880) --
------- ------ -------- ---------
Change in Premier Shares........ 39 554 827 --
======= ====== ======== =========
CLASS B SHARES:**
Issued.......................... 320 98 355 --
Reinvested...................... -- -- 7 --
Redeemed........................ (19) (2) (12) --
------- ------ -------- ---------
Change in Class B Shares........ 301 96 350 --
======= ====== ======== =========
</TABLE>
- --------
(a) For the period from August 3, 1997 (commencement of operations) through
July 31, 1998.
(b) For the period from March 2, 1998 (commencement of operations) through
July 31, 1998.
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
** The Capital Growth, Small Cap and Balanced Funds' Class B Shares commenced
operations on September 3, 1997, March 2, 1998 and September 2, 1997,
respectively.
Continued
-83-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
<TABLE>
<CAPTION>
GOVERNMENT LIMITED MATURITY
BOND FUND INCOME FUND FUND
------------------ ---------------- ------------------
YEAR YEAR
YEAR YEAR ENDED ENDED YEAR YEAR
ENDED ENDED JULY JULY ENDED ENDED
JULY 31, JULY 31, 31, 31, JULY 31, JULY 31,
1998 1997 1998 1997 1998 1997
-------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares
issued................ $ 9,635 $201,871 $ 916 $ 1,446 $ 3,654 $115,330
Dividends reinvested... 1,185 5,240 320 412 224 865
Shares redeemed........ (19,183) (37,772) (4,434) (6,512) (10,734) (25,250)
-------- -------- ------- ------- -------- --------
Change in net assets
from Classic Share
transactions.......... $ (8,363) $169,339 $(3,198) $(4,654) $ (6,856) $ 90,945
======== ======== ======= ======= ======== ========
PREMIER SHARES:*
Proceeds from shares
issued................ $ 89,740 $ -- $ 2,137 $ -- $ 16,530 $ --
Dividends reinvested... 4,132 -- -- -- 409 --
Shares redeemed........ (65,976) -- (10) -- (38,351) --
-------- -------- ------- ------- -------- --------
Change in net assets
from Premier Share
transactions.......... $ 27,896 $ -- $ 2,127 $ -- $(21,412) $ --
======== ======== ======= ======= ======== ========
CLASS B SHARES:**
Proceeds from shares
issued................ $ 498 $ -- $ -- $ -- $ -- $ --
Dividends reinvested... 4 -- -- -- -- --
Shares redeemed........ (60) -- -- -- -- --
-------- -------- ------- ------- -------- --------
Change in net assets
from Class B Share
transactions.......... $ 442 $ -- $ -- $ -- $ -- $ --
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................. 889 18,995 93 153 350 11,205
Reinvested............. 109 494 33 43 22 84
Redeemed............... (1,781) (3,539) (450) (680) (1,033) (2,449)
-------- -------- ------- ------- -------- --------
Change in Classic
Shares................ (783) 15,950 (324) (484) (661) 8,840
======== ======== ======= ======= ======== ========
PREMIER SHARES:*
Issued................. 8,147 -- 217 -- 1,580 --
Reinvested............. 376 -- -- -- 39 --
Redeemed............... (5,985) -- (1) -- (3,669) --
-------- -------- ------- ------- -------- --------
Change in Premier
Shares................ 2,538 -- 216 -- (2,050) --
======== ======== ======= ======= ======== ========
CLASS B SHARES:**
Issued................. 45 -- -- -- -- --
Reinvested............. -- -- -- -- -- --
Redeemed............... (5) -- -- -- -- --
-------- -------- ------- ------- -------- --------
Change in Class B
Shares................ 40 -- -- -- -- --
======== ======== ======= ======= ======== ========
</TABLE>
- --------
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
** The Bond Fund's Class B Shares commenced operations on September 16, 1997.
Continued
-84-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
<TABLE>
<CAPTION>
FLORIDA TAX-
FREE FUND MUNICIPAL BOND FUND
------------------ --------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
1998 1997 1998 1997 (A)
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares issued........... $ 6,245 $12,780 $ 9,434 $ 342,930
Dividends reinvested.................. 218 213 52 --
Shares redeemed....................... (5,154) (9,213) (5,477) (10,165)
------- ------- --------- ---------
Change in net assets from Classic
Share transactions................... $ 1,309 $ 3,780 $ 4,009 $ 332,765
======= ======= ========= =========
PREMIER SHARES:*
Proceeds from shares issued........... $18,711 $ -- $ 45,269 $ --
Dividends reinvested.................. -- -- 48 --
Shares redeemed....................... (9,399) -- (57,585) --
------- ------- --------- ---------
Change in net assets from Premier
Share transactions................... $ 9,312 $ -- $ (12,268) $ --
======= ======= ========= =========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................................ 596 1,240 934 34,283
Reinvested............................ 21 21 5 --
Redeemed.............................. (493) (894) (542) (1,004)
------- ------- --------- ---------
Change in Classic Shares.............. 124 367 397 33,279
======= ======= ========= =========
PREMIER SHARES:*
Issued................................ 1,787 -- 4,457 --
Reinvested............................ -- -- 5 --
Redeemed.............................. (899) -- (5,668) --
------- ------- --------- ---------
Change in Premier Shares.............. 888 -- (1,206) --
======= ======= ========= =========
</TABLE>
- --------
(a) For the period from July 1, 1997 (commencement of operations) through July
31, 1997.
* Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, transactions prior to September 2, 1997 are
being reflected as Classic Shares.
Continued
-85-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND U.S. TREASURY FUND TAX-EXEMPT FUND
------------------------ -------------------- --------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1998 1997 1998 1997 1998 1997
----------- ----------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares
issued................ $ 214,118 $ 568,041 $ 13,952 $ 24,470 $ 56,588 $ 36,497
Dividends reinvested... 5,951 5,860 354 507 691 572
Shares redeemed........ (214,135) (587,948) (16,122) (27,354) (56,548) (26,258)
----------- ----------- --------- --------- --------- ---------
Change in net assets
from Classic share
transactions.......... $ 5,934 $ (14,047) $ (1,816) $ (2,377) $ 731 $ 10,811
=========== =========== ========= ========= ========= =========
PREMIER SHARES:
Proceeds from shares
issued................ $ 1,339,647 $ 1,050,377 $ 955,935 $ 837,301 $ 169,123 $ 165,204
Dividends reinvested... 1,859 1,518 383 369 7 18
Shares redeemed........ (1,278,499) (1,113,472) (913,630) (896,472) (162,475) (153,403)
----------- ----------- --------- --------- --------- ---------
Change in net assets
from Premier share
transactions.......... $ 63,007 $ (61,577) $ 42,688 $ (58,802) $ 6,655 $ 11,819
=========== =========== ========= ========= ========= =========
CLASS B SHARES:*
Proceeds from shares
issued................ $ 1 $ -- $ -- $ -- $ -- $ --
Dividends reinvested... -- -- -- -- -- --
Shares redeemed........ -- -- -- -- -- --
----------- ----------- --------- --------- --------- ---------
Change in net assets
from Class B share
transactions.......... $ 1 $ -- $ -- $ -- $ -- $ --
=========== =========== ========= ========= ========= =========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................. 214,118 568,041 13,952 24,470 56,588 36,497
Reinvested............. 5,951 5,860 354 507 691 572
Redeemed............... (214,135) (587,948) (16,122) (27,354) (56,548) (26,258)
----------- ----------- --------- --------- --------- ---------
Change in Classic
Shares................ 5,934 (14,047) (1,816) (2,377) 731 10,811
=========== =========== ========= ========= ========= =========
PREMIER SHARES:
Issued................. 1,339,647 1,050,377 955,935 837,301 169,123 165,204
Reinvested............. 1,859 1,518 383 369 7 18
Redeemed............... (1,278,499) (1,113,472) (913,630) (896,472) (162,475) (153,403)
----------- ----------- --------- --------- --------- ---------
Change in Premier
Shares................ 63,007 (61,577) 42,688 (58,802) 6,655 11,819
=========== =========== ========= ========= ========= =========
CLASS B SHARES:*
Issued................. 1 -- -- -- -- --
Reinvested............. -- -- -- -- -- --
Redeemed............... -- -- -- -- -- --
----------- ----------- --------- --------- --------- ---------
Change in Class B
Shares................ 1 -- -- -- -- --
=========== =========== ========= ========= ========= =========
</TABLE>
- --------
* The Prime Fund's Class B Shares commenced operations on June 15, 1998.
Continued
-86-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
5. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to each of the Funds by AmSouth.
Under the terms of the investment advisory agreement, AmSouth is entitled to
receive fees based on a percentage of the average net assets of each of the
Funds. AmSouth also serves as Custodian for the Trust. Pursuant to the
Custodian Agreement with the Trust, the Custodian receives compensation from
each Fund for such services in an amount equal to an asset-based fee plus
fixed fees charged for certain portfolio transactions and out-of-pocket
expenses.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"),
and BISYS Fund Services, Inc. ("BISYS Inc.") are subsidiaries of the BISYS
Group, Inc.
ASO Services Company ("Administrator"), a wholly owned subsidiary of the
BISYS Group, Inc., serves the Funds as administrator. Under the terms of the
administration agreement, the Administrator's fees are computed daily as
0.20% of the average net assets of each of the Funds. AmSouth and BISYS, with
whom certain officers and trustees of the Trust are affiliated, serve as the
Funds' sub-administrator. Such officers and trustees are paid no fees
directly by the Funds for serving as officers and trustees of the Trust.
Pursuant to its current agreement with the Administrator, AmSouth has assumed
certain of the Administrator's duties, for which AmSouth receives a fee, paid
by the Administrator, calculated at an annual rate of 0.10% of each Fund's
daily average net assets.
Pursuant to its agreement with the Administrator, BISYS, as sub-
administrator, is entitled to compensation as mutually agreed upon from time
to time by it and the Administrator. 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 period ended July 31, 1998, BISYS
received $2,068,313 from commissions earned on sales of shares of the Funds'
variable net asset value funds of which $2,067,517 was reallowed to AmSouth
Investment Services, an investment dealer of the Funds' shares and other
dealers of the Funds' shares. BISYS receives no fees from the Funds for
providing distribution services to the Funds. BISYS Ohio serves the Funds' as
Transfer Agent and BISYS Inc. serves the Funds' as Mutual Fund Accountant.
Under the terms of the Transfer Agent and Fund Accounting Agreement, BISYS
Ohio and BISYS Inc. fees are based on the number of shareholders and as a
percentage of average daily net assets, respectively.
Classic Shares of the Trust are subject to a Shareholder Servicing Plan (the
"Servicing Plan") permitting payment of compensation to financial
institutions that agree to provide certain administrative support services
for their customers or account holders. Each Fund has entered into a specific
arrangement with BISYS for the provision of such services and reimburses
BISYS for its cost of providing these services, subject to a maximum annual
rate of 0.25% of the average daily net assets of the Classic Shares of each
of the Funds.
Class B Shares of the Trust are subject to a Distribution and Shareholder
Servicing Plan (the "Distribution Plan") permitting payment of compensation
to a participating organization as payment for its services or expenses in
connection with distribution assistance of the Funds' Class B Shares to the
participating organizations customers. Each Fund has entered into a specific
arrangement with BISYS for the provision of
Continued
-87-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
such services and pays BISYS for its cost of providing such services, subject
to a maximum annual rate of 1.00% of the average daily net assets of the
Class B Shares of each of the Funds, which includes a Shareholder Servicing
Fee of 0.25% of the average daily net assets of the Class B Shares of each
Fund.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the period ended July 31, 1998 (amounts in thousands):
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
---------------------------
ANNUAL FEE AS ADMINISTRATION SHAREHOLDER FUND TRANSFER OTHER
A PERCENTAGE OF FEES FEES SERVICING FEES ACCOUNTING FEES AGENT FEES EXPENSES
AVERAGE DAILY VOLUNTARILY VOLUNTARILY VOLUNTARILY VOLUNTARILY VOLUNTARILY VOLUNTARILY
NET ASSETS REDUCED REDUCED REDUCED REDUCED REDUCED REIMBURSED
--------------- ----------- -------------- -------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Regional Equity Fund. 0.80% $ 1 $ -- $ -- $20 $ -- $ --
Equity Fund.......... 0.80% -- -- -- 20 -- --
Equity Income Fund... 0.80% -- -- -- 40 11 20
Capital Growth Fund
(a)................. 0.80% -- 16 -- 50 24 9
Small Cap Fund (b)... 1.20% -- 6 -- 50 12 5
Balanced Fund........ 0.80% -- -- -- 20 -- --
Bond Fund............ 0.65% 475 253 9 20 -- --
Government Income
Fund................ 0.65% 37 10 13 37 17 2
Limited Maturity
Fund................ 0.65% 179 95 5 10 -- --
Florida Tax-Free
Fund................ 0.65% 199 57 8 33 14 --
Municipal Bond Fund.. 0.65% 835 267 3 10 -- --
Prime Obligations
Fund................ 0.40% -- -- 183 20 -- --
U.S. Treasury Fund... 0.40% -- -- 11 10 -- --
Tax-Exempt Fund...... 0.40% 177 -- 35 23 2 --
</TABLE>
- --------
(a) For the period from August 3, 1997 (commencement of operations) through
July 31, 1998.
(b) For the period from March 2, 1998 (commencement of operations) through
July 31, 1998.
6. ELIGIBLE DISTRIBUTIONS: (UNAUDITED)
The AmSouth Mutual Funds designate the following eligible distributions for
the dividends received deductions for corporations for the year ended July
31, 1998:
PERCENTAGE
----------
Regional Equity Fund.............................................. 100.00%
Equity Fund....................................................... 100.00%
Equity Income Fund................................................ 41.26%
Balanced Fund..................................................... 33.63%
Continued
-88-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
7. EXEMPT-INTEREST INCOME DESIGNATIONS (UNAUDITED):
The AmSouth Mutual Funds designate the following exempt-interest dividends
for the taxable year ended July 31, 1998 (amounts in thousands):
<TABLE>
<CAPTION>
TAX-EXEMPT
DISTRIBUTION
------------
<S> <C>
Florida Tax-Free Fund............................................ $ 2,390
Municipal Bond Fund.............................................. 14,162
Tax-Exempt Fund.................................................. 2,686
</TABLE>
8. FEDERAL INCOME TAX INFORMATION (UNAUDITED):
The accompanying table details distributions from long-term capital gains for
the following funds for the year ended July 31, 1998 (amounts in thousands):
<TABLE>
<CAPTION>
28% CAPITAL 20% CAPITAL
GAINS GAINS
----------- -----------
<S> <C> <C>
Regional Equity Fund.................................. $ 2,743 $ 1,598
Equity Fund........................................... 20,034 30,518
Balanced Fund......................................... 10,297 12,770
Bond Fund............................................. -- 240
Florida Tax-Free Fund................................. 111 218
Municipal Bond Fund................................... -- 821
</TABLE>
At July 31, 1998, the following Funds have capital loss carryforwards which
are available to offset future capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------ -------
<S> <C> <C>
Government Income Fund........................................ 44 2003
240 2004
127 2005
Limited Maturity Fund......................................... 316 2002
730 2003
4 2004
304 2005
Prime Obligations Fund........................................ 9 2002
Tax-Exempt Fund............................................... 2 2006
</TABLE>
Continued
-89-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
July 31, 1998
Under current tax law, capital losses realized after October 31, within the
Fund's fiscal year may be deferred and treated as occurring on the first day
of the following fiscal year. The following deferred losses will be treated
as arising on the first day of the fiscal year ended July 31, 1999 (amounts
in thousands):
Small Cap Fund.......................................................... $580
9. SUBSEQUENT EVENTS:
On September 1, 1998 the Trust commenced offering Classic Shares and Class B
Shares of the Select Equity Fund and the Enhanced Market Fund. On September
15, 1998 the Trust commenced offering Class 1 Shares of the Institutional
Prime Obligations Fund.
-90-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
REGIONAL EQUITY FUND
-----------------------------------------------------------------------------
YEAR ENDED JULY 31,
-----------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------------------------------------- -------- ------- ------- -------
CLASSIC (A) PREMIER (A) B SHARES (B)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 28.23 $ 27.95 $28.49 $ 20.95 $ 18.94 $ 16.68 $ 16.74
------- ------- ------ -------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.05 0.13 (0.05) 0.24 0.26 0.23 0.23
Net realized and
unrealized gains
(losses) from
investments........... (0.08) 0.17 (0.42) 7.77 2.20 2.26 0.58
------- ------- ------ -------- ------- ------- -------
Total from Investment
Activities............ (0.03) 0.30 (0.47) 8.01 2.46 2.49 0.81
------- ------- ------ -------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.07) (0.10) (0.03) (0.24) (0.26) (0.23) (0.23)
In excess of net
investment income..... (0.01) (0.01) -- -- -- -- --
Net realized gains from
investment
transactions.......... (0.94) (0.94) (0.94) (0.49) (0.19) -- (0.41)
In excess of net
realized gains........ -- -- -- -- -- -- (0.23)
------- ------- ------ -------- ------- ------- -------
Total Distributions.... (1.02) (1.05) (0.97) (0.73) (0.45) (0.23) (0.87)
------- ------- ------ -------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 27.18 $ 27.20 $27.05 $ 28.23 $ 20.95 $ 18.94 $ 16.68
======= ======= ====== ======== ======= ======= =======
Total Return (excludes
sales charge).......... (0.31)% (0.12)%(c) (1.86)%(d) 39.02% 13.10% 15.10% 4.87%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $42,700 $94,909 $1,998 $149,838 $93,584 $68,501 $54,744
Ratio of expenses to
average net assets.... 1.30% 1.12%(e) 2.14%(e) 1.06% 1.05% 1.07% 0.79%
Ratio of net investment
income to average net
assets................ 0.14% 0.45%(e) (0.65)%(e) 0.99% 1.30% 1.35% 1.36%
Ratio of expenses to
average net assets*... 1.32% 1.13%(e) 2.15%(e) 1.10% 1.13% 1.15% 1.24%
Ratio of net investment
income to average net
assets*............... 0.13% 0.44%(e) (0.66)%(e) 0.95% 1.22% 1.27% 0.90%
Portfolio turnover (f).. 8.17% 8.17% 8.17% 10.30% 8.22% 14.25% 5.83%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 0.87%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-91-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY FUND
-------------------------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------------------------------------- -------- -------- -------- --------
CLASSIC (A) PREMIER (A) B SHARES (B)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 23.35 $ 22.51 $23.15 $ 17.62 $ 16.75 $ 14.82 $ 14.38
------- -------- ------ -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.21 0.28 0.09 0.30 0.33 0.33 0.28
Net realized and
unrealized gains
(losses) from
investments........... 2.54 3.31 2.68 6.77 1.48 2.39 0.83
------- -------- ------ -------- -------- -------- --------
Total from Investment
Activities............ 2.75 3.59 2.77 7.07 1.81 2.72 1.11
------- -------- ------ -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.25) (0.28) (0.12) (0.30) (0.33) (0.32) (0.28)
Net realized gains from
investment
transactions.......... (1.25) (1.25) (1.25) (1.04) (0.61) (0.47) (0.39)
------- -------- ------ -------- -------- -------- --------
Total Distributions.... (1.50) (1.53) (1.37) (1.34) (0.94) (0.79) (0.67)
------- -------- ------ -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 24.60 $ 24.57 $24.55 $ 23.35 $ 17.62 $ 16.75 $ 14.82
======= ======== ====== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 12.34% 12.46%(c) 12.49%(d) 42.35% 11.09% 19.27% 7.90%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $73,165 $947,575 $7,929 $974,985 $374,622 $275,757 $205,611
Ratio of expenses to
average net assets.... 1.19% 1.09%(e) 2.11%(e) 1.06% 1.02% 1.03% 0.94%
Ratio of net investment
income to average net
assets................ 0.89% 1.26%(e) 0.26%(e) 1.52% 1.86% 2.17% 1.93%
Ratio of expenses to
average net assets*... 1.19% 1.10%(e) 2.11%(e) 1.10% 1.11% 1.11% 1.11%
Ratio of net investment
income to average net
assets*............... 0.89% 1.26%(e) 0.26%(e) 1.48% 1.77% 2.09% 1.76%
Portfolio turnover (f).. 16.95% 16.95% 16.95% 24.47% 19.11% 19.46% 11.37%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 16.52%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-92-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INCOME FUND
------------------------------------------------------
YEAR ENDED
JULY 31, 1998 MARCH 20, 1997
-------------------------------------- TO JULY 31,
CLASSIC (A) PREMIER (A) B SHARES (B) 1997 (G)
----------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 11.72 $11.35 $11.60 $ 10.00
------- ------ ------ -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.24 0.25 0.15 0.07
Net realized and
unrealized gains
(losses) from
investments........... 0.59 0.95 0.68 1.71
------- ------ ------ -------
Total from Investment
Activities............ 0.83 1.20 0.83 1.78
------- ------ ------ -------
DISTRIBUTIONS
Net investment income.. (0.25) (0.25) (0.16) (0.06)
Net realized gains from
investment
transactions.......... (0.41) (0.41) (0.41) --
------- ------ ------ -------
Total Distributions.... (0.66) (0.66) (0.57) (0.06)
------- ------ ------ -------
NET ASSET VALUE, END OF
PERIOD................. $ 11.89 $11.89 $11.86 $ 11.72
======= ====== ====== =======
Total Return (excludes
sales charge).......... 7.29% 7.54%(c) 7.26%(d) 17.81%(d)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $26,686 $8,087 $7,733 $22,273
Ratio of expenses to
average net assets.... 1.42% 1.19%(e) 2.19%(e) 1.30%(e)
Ratio of net investment
income to average net
assets................ 2.03% 2.34%(e) 1.29%(e) 2.13%(e)
Ratio of expenses to
average net assets*... 1.57% 1.35%(e) 2.35%(e) 1.51%(e)
Ratio of net investment
income to average net
assets*............... 1.88% 2.17%(e) 1.12%(e) 1.92%(e)
Portfolio turnover (f).. 83.26% 83.26% 83.26% 27.38%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 10.82%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Period from commencement of operations.
See notes to financial statements.
-93-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CAPITAL GROWTH FUND SMALL CAP FUND
------------------------------------------ ------------------------------------
AUGUST 3, 1997 MARCH 2, 1998
TO JULY 31, TO JULY 31,
1998 (G) 1998 (G)
------------------------------------------ ------------------------------------
CLASSIC (A) PREMIER (A) B SHARES (B) CLASSIC (H) PREMIER B SHARES
----------- ----------- ------------ ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.00 $ 9.55 $ 9.82 $ 9.97 $10.00 $10.00
------ ------ ------ ------ ------ ------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ (0.03) -- (0.06) (0.03) (0.02) (0.04)
Net realized and
unrealized gains
(losses) from
investments........... 1.65 2.10 1.78 (0.80) (0.83) (0.85)
------ ------ ------ ------ ------ ------
Total from Investment
Activities............ 1.62 2.10 1.72 (0.83) (0.85) (0.89)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................. $11.62 $11.65 $11.54 $ 9.14 $ 9.15 $ 9.11
====== ====== ====== ====== ====== ======
Total Return (excludes
sales charge).......... 16.20%(d) 16.50%(c) 17.52%(d) (8.31)%(d) (8.48)%(d) (8.90)%(d)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $9,720 $2,824 $3,477 $1,372 $5,072 $ 871
Ratio of expenses to
average net assets.... 1.40%(e) 0.99%(e) 2.05%(e) 1.78%(e) 1.50%(e) 2.54%(e)
Ratio of net investment
income to average net
assets................ (0.42)%(e) 0.00%(e) (1.10)%(e) (0.92)%(e) (0.52)%(e) (1.69)%(e)
Ratio of expenses to
average net assets*... 2.37%(e) 2.05%(e) 3.11%(e) 4.23%(e) 3.94%(e) 4.98%(e)
Ratio of net investment
income to average net
assets*............... (1.39)%(e) (1.05)%(e) (2.16)%(e) (3.37)%(e) (2.96)%(e) (4.13)%(e)
Portfolio turnover (f).. 77.26% 77.26% 77.26% 70.64% 70.64% 70.64%
</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) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 3, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 21.99%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Period from commencement of operations.
(h) For the period from March 3, 1998 (commencement of operations) to July 31,
1998.
See notes to financial statements.
-94-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BALANCED FUND
-------------------------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------------------------------------- -------- -------- -------- --------
CLASSIC (A) PREMIER (A) B SHARES (B)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 15.21 $ 14.77 $14.99 $ 13.03 $ 12.76 $ 11.81 $ 11.86
------- -------- ------ -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.38 0.41 0.28 0.48 0.47 0.47 0.42
Net realized and
unrealized gains
(losses) from
investments........... 0.98 1.38 1.15 2.78 0.58 1.24 0.18
------- -------- ------ -------- -------- -------- --------
Total from Investment
Activities............ 1.36 1.79 1.43 3.26 1.05 1.71 0.60
------- -------- ------ -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.41) (0.41) (0.29) (0.50) (0.47) (0.46) (0.42)
Net realized gains from
investment
transactions.......... (0.97) (0.97) (0.97) (0.58) (0.31) (0.30) (0.23)
------- -------- ------ -------- -------- -------- --------
Total Distributions.... (1.38) (1.38) (1.26) (1.08) (0.78) (0.76) (0.65)
------- -------- ------ -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 15.19 $ 15.18 $15.16 $ 15.21 $ 13.03 $ 12.76 $ 11.81
======= ======== ====== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 9.54% 9.73%(c) 10.07%(d) 26.42% 8.37% 15.27% 5.13%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $46,814 $329,626 $5,309 $372,769 $338,425 $295,509 $236,306
Ratio of expenses to
average net assets.... 1.24% 1.10%(e) 2.12%(e) 1.05% 0.98% 0.94% 0.84%
Ratio of net investment
income to average net
assets................ 2.77% 2.95%(e) 1.83%(e) 3.49% 3.61% 3.91% 3.56%
Ratio of expenses to
average net assets*... 1.24% 1.10%(e) 2.12%(e) 1.10% 1.11% 1.12% 1.11%
Ratio of net investment
income to average net
assets*............... 2.76% 2.94%(e) 1.82%(e) 3.44% 3.48% 3.73% 3.28%
Portfolio turnover (f).. 25.40% 25.40% 25.40% 25.00% 20.47% 16.97% 14.43%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) For the period from September 2, 1997 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 12.70%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-95-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BOND FUND
-----------------------------------------------------------------------------
YEAR ENDED JULY 31,
-----------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------------------------------------- -------- -------- ------- -------
CLASSIC (A) PREMIER (A) B SHARES (B)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.92 $ 10.72 $10.88 $ 10.54 $ 10.83 $ 10.59 $ 11.29
------ -------- ------ -------- -------- ------- -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 1.41 0.57 0.46 0.65 0.65 0.69 0.69
Net realized and
unrealized gains
(losses) from
investments........... (0.62) 0.38 0.24 0.42 (0.18) 0.28 (0.66)
------ -------- ------ -------- -------- ------- -------
Total from Investment
Activities............ 0.79 0.95 0.70 1.07 0.47 0.97 0.03
------ -------- ------ -------- -------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.63) (0.59) (0.51) (0.69) (0.65) (0.69) (0.70)
Net realized gains from
investment
transactions.......... (0.03) (0.03) (0.03) -- (0.11) (0.04) (0.03)
------ -------- ------ -------- -------- ------- -------
Total Distributions.... (0.66) (0.62) (0.54) (0.69) (0.76) (0.73) (0.73)
------ -------- ------ -------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $11.05 $ 11.05 $11.04 $ 10.92 $ 10.54 $ 10.83 $ 10.59
====== ======== ====== ======== ======== ======= =======
Total Return (excludes
sales charge).......... 7.45% 7.54%(c) 6.58%(d) 10.48% 4.40% 9.70% 0.23%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $7,032 $327,930 $ 442 $311,881 $132,737 $94,671 $79,472
Ratio of expenses to
average net assets.... 0.73% 0.73%(e) 1.74%(e) 0.75% 0.75% 0.75% 0.78%
Ratio of net investment
income to average net
assets................ 5.78% 5.72%(e) 4.75%(e) 6.10% 6.12% 6.63% 6.31%
Ratio of expenses to
average net assets*... 0.95% 0.97%(e) 1.99%(e) 0.98% 0.98% 0.98% 1.01%
Ratio of net investment
income to average net
assets*............... 5.56% 5.48%(e) 4.49%(e) 5.87% 5.89% 6.40% 6.08%
Portfolio turnover (f).. 40.41% 40.41% 40.41% 34.62% 9.60% 17.70% 30.90%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) For the period from September 16, 1997 (commencement of operations) to
July 31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 9.03%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-96-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND
--------------------------------------------------------------------
YEAR ENDED JULY 31, OCTOBER 1, 1993
--------------------------------------------------- TO JULY 31,
1998 1997 1996 1995 1994 (F)
----------------------- ------- ------- ------- ---------------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 9.75 $ 9.66 $ 9.40 $ 9.54 $ 9.48 $ 10.00
------ ------ ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.63 0.59 0.58 0.66 0.68 0.54
Net realized and
unrealized gains
(losses) from
investments........... 0.09 0.17 0.35 (0.20) 0.08 (0.57)
------ ------ ------- ------- ------- -------
Total from Investment
Activities............ 0.72 0.76 0.93 0.46 0.76 (0.03)
------ ------ ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.53) (0.49) (0.58) (0.59) (0.70) (0.33)
In excess of net
investment income..... (0.06) (0.06) -- -- -- --
Tax return of capital.. -- -- -- (0.01) -- (0.16)
------ ------ ------- ------- ------- -------
Total Distributions.... (0.59) (0.55) (0.58) (0.60) (0.70) (0.49)
------ ------ ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 9.88 $ 9.87 $ 9.75 $ 9.40 $ 9.54 $ 9.48
====== ====== ======= ======= ======= =======
Total Return (excludes
sales charge).......... 7.58% 7.58%(b) 10.21% 4.91% 8.43% (0.26%)(c)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $8,176 $2,521 $11,622 $15,752 $16,679 $15,465
Ratio of expenses to
average net assets.... 0.71% 0.63%(d) 0.69% 0.65% 0.58% 0.37%(d)
Ratio of net investment
income to average net
assets................ 5.95% 5.72%(d) 5.98% 6.81% 7.18% 6.56%(d)
Ratio of expenses to
average net assets*... 1.77% 1.80%(d) 1.29% 1.10% 1.19% 1.22%(d)
Ratio of net investment
income to average net
assets*............... 4.89% 4.56%(d) 5.38% 6.36% 6.57% 5.71%(d)
Portfolio turnover (e).. 34.89% 34.89% 2.96% 78.31% 27.32% 122.94%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 8.04%.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Period from commencement of operations.
See notes to financial statements.
-97-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LIMITED MATURITY FUND
--------------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------------
1998 1997 1996 1995 1994
----------------------- -------- ------- ------- -------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.42 $ 10.34 $ 10.31 $ 10.41 $ 10.23 $ 10.81
------ -------- -------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.85 0.55 0.58 0.58 0.58 0.54
Net realized and
unrealized gains
(losses) from
investments........... (0.25) 0.10 0.14 (0.10) 0.17 (0.45)
------ -------- -------- ------- ------- -------
Total from Investment
Activities............ 0.60 0.65 0.72 0.48 0.75 0.09
------ -------- -------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.59) (0.56) (0.61) (0.57) (0.57) (0.54)
Net realized gains from
investment
transactions.......... -- -- -- (0.01) -- --
In excess of net
realized gains........ -- -- -- -- -- (0.13)
------ -------- -------- ------- ------- -------
Total Distributions.... (0.59) (0.56) (0.61) (0.58) (0.57) (0.67)
------ -------- -------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $10.43 $ 10.43 $ 10.42 $ 10.31 $ 10.41 $ 10.23
====== ======== ======== ======= ======= =======
Total Return (excludes
sales charge).......... 5.94% 6.04%(b) 7.25% 4.74% 7.65% 0.77%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $3,531 $106,953 $138,675 $46,005 $59,798 $51,660
Ratio of expenses to
average net assets.... 0.74% 0.73%(c) 0.77% 0.76% 0.80% 0.79%
Ratio of net investment
income to average net
assets................ 5.65% 5.70%(c) 5.65% 5.48% 5.69% 5.05%
Ratio of expenses to
average net assets*... 0.96% 0.98%(c) 1.02% 0.99% 1.03% 1.02%
Ratio of net investment
income to average net
assets*............... 5.43% 5.46%(c) 5.40% 5.25% 5.46% 4.82%
Portfolio turnover (d).. 39.31% 39.31% 64.89% 29.56% 38.11% 48.06%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) Represents total return based on activity of Classic Shares for the period
from August 1, 1997 to September 1, 1997 and the activity of Premier
Shares for the period from September 2, 1997 to July 31, 1998. Total
return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 6.37%.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-98-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA TAX-FREE FUND MUNICIPAL BOND FUND
-------------------------------------------------------------- ---------------------------------------
YEAR ENDED JULY 31, SEPTEMBER 30, 1994 YEAR ENDED JULY 1, 1997
------------------------------------------ TO JULY 31, JULY 31, JULY 31,
1998 1997 1996 1995 (F) 1998 1997 (F)
----------------------- ------- ------- ------------------ ----------------------- ------------
CLASSIC (A) PREMIER (A) CLASSIC (A) PREMIER (A)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD... $10.50 $ 10.39 $ 10.30 $ 10.32 $ 10.00 $10.15 $ 10.04 $ 10.00
------ ------- ------- ------- ------- ------ -------- --------
INVESTMENT ACTIVITIES
Net investment income
(loss)............... 0.45 0.41 0.45 0.45 0.34 0.86 0.39 0.04
Net realized and
unrealized gains
(losses) from
investments.......... 0.01 0.14 0.24 (0.01) 0.30 (0.43) 0.14 0.15
------ ------- ------- ------- ------- ------ -------- --------
Total from Investment
Activities........... 0.46 0.55 0.69 0.44 0.64 0.43 0.53 0.19
------ ------- ------- ------- ------- ------ -------- --------
DISTRIBUTIONS
Net investment income. (0.44) (0.41) (0.48) (0.45) (0.32) (0.42) (0.40) (0.04)
Net realized gains
from investment
transactions......... (0.07) (0.07) (0.01) (0.01) -- (0.03) (0.03) --
------ ------- ------- ------- ------- ------ -------- --------
Total Distributions... (0.51) (0.48) (0.49) (0.46) (0.32) (0.45) (0.43) (0.04)
------ ------- ------- ------- ------- ------ -------- --------
NET ASSET VALUE, END OF
PERIOD................ $10.45 $ 10.46 $ 10.50 $ 10.30 $ 10.32 $10.13 $ 10.14 $ 10.15
====== ======= ======= ======= ======= ====== ======== ========
Total Return (excludes
sales charge)......... 4.46% 4.66%(b) 6.89% 4.24% 6.53%(c) 4.30% 4.49%(b) 1.86%(c)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000)......... $8,663 $55,369 $53,688 $48,869 $48,333 $2,689 $326,464 $337,933
Ratio of expenses to
average net assets... 0.55% 0.49%(d) 0.57% 0.59% 0.70%(d) 0.62% 0.64%(d) 0.71%(d)
Ratio of net
investment income to
average net assets... 4.24% 4.30%(d) 4.36% 4.33% 4.16%(d) 4.26% 4.23%(d) 4.31%(d)
Ratio of expenses to
average net assets*.. 1.06% 1.04%(d) 1.06% 1.04% 1.01%(d) 0.92% 0.97%(d) 1.04%(d)
Ratio of net
investment income to
average net assets*.. 3.74% 3.74%(d) 3.87% 3.88% 3.86%(d) 3.95% 3.89%(d) 3.98%(d)
Portfolio turnover (e). 29.55% 29.55% 24.05% 12.21% 2.33% 28.75% 28.75% 1.59%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, financial highlights prior to September 2,
1997 are being reflected as Classic Shares.
(b) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Florida Tax-Free Fund and Municipal Bond Fund's
Premier Shares for the period from September 2, 1997 (commencement of
operations) to July 31, 1998 was 5.40% and 5.27%, respectively.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Period from commencement of operations.
See notes to financial statements.
-99-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------------------------------
1998 1997 1996 1995
-------------------------------- ------------------ -------------------------- --------
CLASSIC PREMIER B SHARES (F) CLASSIC PREMIER CLASSIC (A) PREMIER (A)
-------- -------- ------------ -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- ------ -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income... 0.049 0.050 0.005 0.048 0.049 0.016 0.050 0.050
-------- -------- ------ -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income... (0.049) (0.050) (0.005) (0.048) (0.049) (0.016) (0.050) (0.050)
-------- -------- ------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ====== ======== ======== ======== ======== ========
Total Return............. 4.99% 5.09% 0.49%(d) 4.90% 5.00% 5.07%(e) 5.10% 5.14%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)........... $116,960 $479,974 $ 1 $111,027 $416,966 $125,075 $478,542 $617,673
Ratio of expenses to
average net assets..... 0.79% 0.69% 1.85%(b) 0.78% 0.68% 0.81%(b) 0.71% 0.69%
Ratio of net investment
income to average net
assets................. 4.88% 4.98% 3.83%(b) 4.79% 4.89% 4.61%(b) 5.00% 5.04%
Ratio of expenses to
average net assets*.... 0.95% 0.70% 1.88%(b) 0.93% (c) 0.96%(b) (c) (c)
Ratio of net investment
income to average net
assets*................ 4.73% 4.98% 3.81%(b) 4.64% (c) 4.46%(b) (c) (c)
<CAPTION>
1994
--------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 1.000
--------
INVESTMENT ACTIVITIES
Net investment income... 0.029
--------
DISTRIBUTIONS
Net investment income... (0.029
--------
NET ASSET VALUE, END OF
PERIOD.................. $ 1.000
========
Total Return............. 2.94%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)........... $577,331
Ratio of expenses to
average net assets..... 0.70%
Ratio of net investment
income to average net
assets................. 2.92%
Ratio of expenses to
average net assets*.... (c)
Ratio of net investment
income to average net
assets*................ (c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) There were no waivers during the period.
(d) Not annualized.
(e) Represents total return for the Premier Shares for the period from August
1, 1995 to March 31, 1996 plus the total return for the Classic Shares for
the period from April 1, 1996 to July 31, 1996. Total return for the
Classic Shares for the period April 1, 1996 (commencement of operations)
to July 31, 1996 was 1.55%.
(f) For the period from June 15, 1998 (commencement of operations) to July 31,
1998.
See notes to financial statements.
-100-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY FUND
----------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
----------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
----------------- ----------------- ------------------------- -------- --------
CLASSIC PREMIER CLASSIC PREMIER CLASSIC (A) PREMIER (A)
------- -------- ------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------ -------- ------ -------- ------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.046 0.047 0.045 0.046 0.015 0.048 0.048 0.028
------ -------- ------ -------- ------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.046) (0.047) (0.045) (0.046) (0.015) (0.048) (0.048) (0.028)
------ -------- ------ -------- ------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
====== ======== ====== ======== ======= ======== ======== ========
Total Return............ 4.67% 4.77% 4.60% 4.70% 4.90%(d) 4.93% 4.90% 2.80%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $8,070 $352,055 $9,885 $309,361 $12,263 $368,162 $322,939 $300,603
Ratio of expenses to
average net assets.... 0.80% 0.70% 0.79% 0.69% 0.82%(b) 0.71% 0.70% 0.71%
Ratio of net investment
income to average net
assets................ 4.57% 4.67% 4.50% 4.60% 4.44%(b) 4.82% 4.81% 2.77%
Ratio of expenses to
average net assets*... 0.95% 0.70% 0.94% (c) 0.97%(b) (c) (c) (c)
Ratio of net investment
income to average net
assets*............... 4.42% 4.66% 4.35% (c) 4.29%(b) (c) (c) (c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) There were no waivers during the period.
(d) Represents total return for the Premier Shares for the period from August
1, 1995 to March 31, 1996 plus the total return for the Classic Shares for
the period from April 1, 1996 to July 31, 1996. Total return for the
Classic Shares for the period April 1, 1996 (commencement of operations)
to July 31, 1996 was 1.49%.
See notes to financial statements.
-101-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX EXEMPT FUND
------------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------------
1998 1997 1996 1995 1994
---------------- ---------------- ------------------------- ------- -------
CLASSIC PREMIER CLASSIC PREMIER CLASSIC (A) PREMIER (A)
------- ------- ------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.030 0.031 0.030 0.031 0.010 0.031 0.032 0.019
------- ------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.030) (0.031) (0.030) (0.031) (0.010) (0.031) (0.032) (0.019)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= ======= ======= =======
Total Return............ 3.03% 3.13% 3.04% 3.15% 3.12%(c) 3.15% 3.22% 1.95%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at end of
period (000).......... $28,657 $62,084 $27,926 $55,429 $17,116 $43,611 $57,640 $60,923
Ratio of expenses to
average net assets.... 0.60% 0.50% 0.62% 0.52% 0.68%(b) 0.54% 0.54% 0.57%
Ratio of net investment
income to average net
assets................ 2.97% 3.07% 3.00% 3.10% 2.82%(b) 3.11% 3.15% 1.93%
Ratio of expenses to
average net assets*... 0.98% 0.73% 0.97% 0.72% 1.03%(b) 0.74% 0.74% 0.77%
Ratio of net investment
income to average net
assets*............... 2.59% 2.85% 2.65% 2.90% 2.47%(b) 2.91% 2.95% 1.73%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) Represents total return for the Premier Shares for the period from August
1, 1995 to March 31, 1996 plus the total return for the Classic Shares for
the period from April 1, 1996 to July 31, 1996. Total return for the
Classic Shares for the period April 1, 1996 (commencement of operations)
to July 31, 1996 was 0.95%.
See notes to financial statements.
-102-
<PAGE>
INVESTMENT ADVISOR
[LOGO OF AMSOUTH(R) APPEARS HERE]
AmSouth Bank
1901 Sixth Avenue North
Birmingham, AL 35203
Investment Sub-Advisors
(Equity Income Fund Only)
Rockhaven Asset Management, LLC
100 First Avenue, Suite 1050
Pittsburgh, PA 15222
(Capital Growth Fund Only)
Peachtree Asset Management
A Division of Smith Barney
Mutual Funds Management, Inc.
One Peachtree Center
Atlanta, GA 30308
(Small Cap Fund Only)
Sawgrass Asset Management, LLC
4337 Pablo Oaks Court
Jacksonville, FL 32224
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, DC 20005
TRANSFER AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
AUDITORS
Pricewaterhouse Coopers LLP
100 East Broad Street
Columbus, OH 43215
-------------
AMSOUTH
-------------
MUTUAL FUNDS
--------------
ANNUAL REPORT
July 31, 1998
[LOGO OF AMSOUTH(R) APPEARS HERE]
AMSOUTH BANK
Investment Advisor
9/98
