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AMSOUTH MUTUAL FUNDS
====================
[LOGO OF AMSOUTH APPEARS HERE]
AMSOUTH BANK
Investment Advisor
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SEMI-ANNUAL
REPORT
JANUARY 31, 1998
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[LOGO OF AMSOUTH MUTUAL FUNDS APPEARS HERE]
BISYS Fund Services, Distributor
Not FDIC Insured
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TABLE OF CONTENTS
MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
PAGE 1
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 25
STATEMENTS OF OPERATIONS
PAGE 28
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 31
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 36
NOTES TO FINANCIAL STATEMENTS
PAGE 70
FINANCIAL HIGHLIGHTS
PAGE 81
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THE AMSOUTH MUTUAL FUNDS, LIKE ALL MUTUAL FUNDS, ARE NOT FDIC
INSURED OR INSURED BY ANY OTHER AGENCY AND ARE NOT OBLIGATIONS OR
DEPOSITS OF, OR ENDORSED OR GUARANTEED BY, AMSOUTH BANK OR ANY OF
ITS AFFILIATES. INVESTMENT PRODUCTS INVOLVE INVESTMENT RISK, INCLUDING
THE POSSIBLE LOSS OF PRINCIPAL.
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[THIS PAGE INTENTIONALLY LEFT BLANK]
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MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR
Dear Shareholders:
We are pleased to send you this semi-annual report for the AmSouth Mutual
Funds. Despite the unfolding of the extraordinary economic crisis in Southeast
Asia and some unsettling volatility in our domestic markets, stocks and bonds
generally rose higher during the six months ended January 31, 1998. Each of
the equity and fixed-income portfolios in our fund family produced positive
total returns for the period (before adjusting for sales charges). We were
particularly gratified to learn that our Equity Fund was rewarded with a
overall 4-Star Morningstar performance rating for the 5-year period ended
January 31, 1998.* The fund was rated among 1315 Domestic Equity Funds.
POSITIVE CHANGES FOR SHAREHOLDERS
The last six months were an exciting time for AmSouth, as we continued to make
additions to our fund family and expanded the share-class offerings available
to shareholders.
In August, we launched the AmSouth Capital Growth Fund, subadvised by
Peachtree Asset Management, a division of Smith Barney. The Fund was the third
new portfolio opened to retail customers in 1997, following the introduction
of our Equity Income Fund (March) and Municipal Bond Fund (July). And as we
write to you in March 1998, we have just introduced the AmSouth Small Cap
Fund--which is subadvised by Sawgrass Asset Management, LLC. The Fund's
manager, Dean McQuiddy, has more than 15 years of investment experience,
specializing in the type of small-cap stocks that comprise the Fund's
portfolio.
A word about our retaining subadvisors, or outside portfolio managers, to make
the day-to-day buying and selling decisions for our Capital Growth, Equity
Income and Small Cap funds. Over the years, AmSouth's own portfolio managers
have delivered strong, long-term returns, and we anticipate this performance
will continue in the years to come. At the same time, we are delighted to take
advantage of opportunities to attract additional investment expertise to our
fund family, for the direct potential benefit of our shareholders.
ALL EYES WERE ON THE FAR EAST
The single, most significant factor that drove the markets, both up and down,
during the six-month period that ended January 31 can be summed up in one
word: Asia.
When we last wrote to you, few, if any, economists or investment managers had
any inkling of the impending crisis that was about to sweep across the Far
East--threatening the financial well-being of Thailand, Indonesia, South
Korea, Malaysia and even Japan, the world's second largest economy. But in
just the last six months, a maelstrom of currency shocks, bankruptcies and
plunging stock market values has produced great distress and economic upheaval
for many of the countries once known as the "Asian tigers."
-1-
<PAGE>
And what does the de-clawing of these once-potent economies mean for the U.S.
and our own markets? Truthfully, we do not believe that the impact of the
fallout from Asia has been fully understood at this point. Any number of
potentially dangerous circumstances could be lurking in the shadow of economic
uncertainty.
At the same time, we don't believe that our economic expansion, which is
approaching its eighth year, is in danger of being knocked completely off
track. For despite the probable slowdown in Gross Domestic Product growth, new
jobs are being created at an impressive rate, inflation remains tame, and
worker productivity seems to be maintaining the robust growth it enjoyed in
each of the past two years.
Also, the slowdown in the Far East seems to have persuaded the Federal Reserve
Board not to raise short-term interest rates, at least for the time being.
Lower rates generally benefit both stock and bond prices.
THE STOCK MARKET: AN IMPRESSIVE RECOVERY
After roaring to an all-time high of 8259 on August 6, 1997, the Dow Jones
Industrial Average embarked on a slow retreat, and finally plummeted a record
554 points on October 27. But just as pundits were sounding the alarm for a
prolonged decline, the market clawed its way back up, with the Dow ending 1997
with a 22% gain--marking the first time in history that the blue-chip average
rose more than 20% for three consecutive years.
And as we write this letter in early March, many of the major market averages
have recently set new highs.
However, a note of caution is prudent. Market valuations are at stratospheric
levels, and we believe that corporate profits will moderate their growth in
the year to come. Also, the turmoil in Asia could still impact the stock
market more adversely than has been predicted. All in all, we expect that our
long-term value approach, which served our shareholders well last year, could
continue to provide relatively decent returns in an uncertain environment.
THE BOND MARKET: FEASTING ON LOWER RATES
Long the underperforming cousin of stocks, bonds regained their luster during
the period, rising on an updraft provided by sharply declining, long-term
interest rates. The bond market, especially longer term U.S. Treasury issues,
benefited from a "flight to quality" on the part of many investors around the
world, who sought a safe haven when the Asian crisis roiled international
markets.
-2-
<PAGE>
As interest rates fell during the latter part of the period, we shortened the
maturity structure of our bond portfolios. Unlike earlier in the year, when
the yield curve was much steeper, fixed-income investors were no longer
picking up much additional yield by extending maturities. Starting a new six-
month period, we began February 1998 with our bond portfolios holding average
maturities that were very close to their respective market targets.
In the pages that follow this letter, you will find the Schedules of Portfolio
Investments for the AmSouth Mutual Funds, along with a report for each Fund.
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.
* The AmSouth Equity Fund's Classic shares received a 4-star rating based on
the Fund's overall performance for the 3- and 5-year periods ending January
31, 1998. The Fund was ranked 4 stars among 1,315 Domestic Equity Funds.
Morningstar proprietary ratings reflect historical risk-adjusted performance
as of January 31, 1998. The ratings are subject to change every month.
Morningstar ratings are calculated from a fund's 3-, 5- and 10 year average
annual total returns (if available) with fee adjustments in excess of 90-day
Treasury bill returns and a risk factor that reflects fund performance below
90-day Treasury bill returns. Ten percent of the funds in an investment
category receive 5 stars, and 22.5% receive 4 stars. Past performance is not
predictive of future results.
-3-
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THE AMSOUTH REGIONAL EQUITY FUND+
Pedro Verdu, CFA, manages the AmSouth Regional Equity Fund. Mr. Verdu has more
than 27 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
INVESTING IN THE "RIGHT' SOUTHEAST
For the six months ended January 31, 1998, the AmSouth Regional Equity Fund
produced a total return of 0.96% (Classic Shares without the sales charge)./1/
In comparison, the S&P 500 Index rose 3.56%, while the Lipper Capital
Appreciation Index moved up 1.49%./2/
One factor that helped fund performance was that we were invested in the right
Southeast, and not the wrong Southeast. In other words, we focused on
investments in the southeastern portion of the United States, not in Southeast
Asia. Few of the companies in our region had exposure to the effects of the
crisis in the Far East.
On the downside, we had a couple of individual stocks who were hit pretty
hard, especially during the month of January. MedPartners (2.0% of net
assets), for example, called off a merger, which hurt its stock price. In
addition, a couple of brokerage firms pulled their buy recommendations for
Vesta Insurance Group (2.4%), which was hurt by downgrading. However, we're
still very positive about the long-term prospects for both companies; in fact,
we added to our position in MedPartners when the stock became cheaper.*
FINANCIAL STOCKS CONTINUED TO SURGE
We had an overweighting in the financial services sector, and our holdings in
this group continued to do well during the period. Two stocks that did
particularly well were Deposit Guaranty Corp. (2.8%) and First Commerce Corp.
(2.4%). Both banks are in the process of being acquired--Deposit Guaranty by
First American Corp. and First Commerce by Banc One--which drove up their
respective prices substantially. However, as stocks have risen to levels where
we no longer think they are compelling, we have begun to take some profits in
the financial sector.*
As of January 31, 1998, the Fund's top five holdings were Healthsouth Corp.
(6.1%), Health Management Associates (3.7%), Flowers Industries, Inc. (3.4%),
Cracker Barrel Old Country Store (3.1%), and BellSouth Corp. (2.9%).*
THE REGION SHOULD RESUME ITS ROBUST GROWTH
While the Southeast continued to grow faster than the United States as a whole
last year, 1997 was something of a "breathe," following a 1996 that was
overheated by Georgia's hosting of the Summer Olympics. In 1998, we expect to
return to a more normal "spread"--that is, the Southeast economy could grow
1.5% to 2.0% faster than the national economy. Part of the reason will be the
Southeast's relative insulation from the effects of the problems in Asia. The
Southeast is a particularly vigorous region, engaged in a myriad of businesses
including banking, insurance, tourism, real estate, heavy industry, research,
agriculture and natural resources. In the past, this diversity has protected
the region as a whole from any long-term downturn. We expect this trend to
continue in the near future, and we believe the Fund offers investors the
opportunity to add valuable diversification to the equity portion of their
portfolios.
+ There may be additional risks associated with investing in companies in one
geographic location.
/1/ The Fund's Classic Shares total return with a maximum 4.50% sales charge was
(3.59%) for the six-month period.
/2/ The Lipper Capital Appreciation Index is comprised of managed funds that aim
at maximum capital appreciation, 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.
-4-
<PAGE>
THE AMSOUTH REGIONAL EQUITY FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
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AmSouth Regional AmSouth Regional S&P 500 AmSouth Regional Lipper Capital
Equity Fund Equity Fund Stock Equity Fund Appreciation
(Premier Shares) (Classic Shares)* Index (B Shares)** Index
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/88 10,000 9,551 10,000 9,500 10,000
7/89 11,779 11,250 12,980 11,620 12,919
7/90 12,888 12,309 13,822 12,488 13,328
7/91 14,501 13,850 15,577 14,201 14,988
7/92 17,497 16,712 17,555 17,197 16,592
7/93 20,214 19,307 19,084 20,014 19,096
7/94 21,199 20,249 20,069 21,100 19,796
7/95 24,401 23,306 25,307 24,401 25,244
7/96 27,598 26,360 29,378 27,598 27,377
7/97 38,367 36,646 44,689 38,367 36,419
1/98 38,768 37,010 46,280 38,628 36,962
</TABLE>
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Average Annual Total Return
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Since
As of 1 5 Inception
January 31, 1998 Year Year (12/1/88)
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Classic* 12.69% 13.21% 15.32%
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Premier 18.08% 14.28% 15.91%
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B Shares** 12.65% 13.96% 15.87%
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* Reflects 4.50% sales charge.
** Reflects Contingent Deferred Sales Charge.
On September 2, 1997 the Shareholders of the Fund exchanged their Shares for
either the Fund's Classic Shares or Premier Shares, and the Fund commenced
offering Class B Shares.
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. 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.
-5-
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THE AMSOUTH EQUITY FUND
Pedro Verdu, CFA, manages the AmSouth Equity Fund. Mr. Verdu has more than 27
years of investment experience as an analyst and portfolio manager. He holds
an MBA in finance and a bachelor's degree in economics.
A RETURN TO VOLATILITY
For the six months ended January 31, 1998, the AmSouth Equity Fund produced a
total return of 2.65% (Classic Shares without the sales charge)./1/ In
comparison, the S&P 500 Index rose 3.56%, while the Lipper Capital
Appreciation Index gained 1.49%.
Despite the common perception that the period was remarkably volatile for
equities--highlighted by the 554-point drop in the Dow Jones Industrial
Average on October 27--these last six months (and 1997 as a whole) merely
marked a return to historically normal levels of volatility in the stock
market. For the last few years, investors have been rewarded with
extraordinary returns, and most of the market's volatility, if one could call
it that, has been defined by continued thrusts upward. If anything, the events
surrounding the October 27 plunge, and the effects of the crisis in Asia, have
simply reminded investors that buying stocks entails a certain degree of risk.
RETAIL AND UTILITY STOCKS WERE BIG WINNERS
Our exposure to the retail sector helped boost the Fund's returns, as did our
utility holdings. On the retail side, such household names as Wal-Mart (3.0%
of net assets), the Gap (2.3%) and Dayton Hudson (2.6%) did well. These
retailers profited from the fact that their exposure was entirely domestic;
they didn't depend on foreign operations for income. In fact, an argument
could be made that the retail sector could be a beneficiary of the turmoil in
Asia--because much of the apparel that is sold in the United States is made in
the Far East, where costs have fallen for American manufacturers.*
Utilities benefited from the sharp decline in interest rates in the latter
part of 1997. Also, after three years of avoiding telephone stocks, the market
decided that the industry was going to do well, at least on a short-term
basis. Some of our best-performing utilities included AT&T (2.7%), Bell
Atlantic (1.9%) and BellSouth (2.3%).*
As of January 31, 1998, the Fund's top five holdings were Wal-Mart Stores,
Inc. (3.0%), Ford Motor Co. (3.0%), St. Paul Companies, Inc. (2.8%), Sun
Company, Inc. (2.8%) and AT&T Corp. (2.7%).*
LITTLE MARGIN FOR ERROR
As we move into 1998, we believe it's wise to take some profits from our
financial services winners and rotate into other sectors, such as consumer
nondurables and consumer services. In this latter group, we're keen on Circus
Circus (1.1%), the hotel and casino operator, and newspaper publishers Dow
Jones (1.2%) and Gannett (2.3%).*
Overall, our view on the market hasn't changed much since our last report six
months ago. The downturn we saw in the fall was indicative of the fact that
there is not a great deal of tolerance in the market for any kind of bad news.
Valuation levels remain very high by historical standards. When valuations are
cheap, the market can absorb a certain amount of bad news. But when the market
is fully valued or overvalued, investors have the tendency to sell first and
ask questions later.
/1/ The Fund's Classic Shares total return with a maximum 4.50% sales charge was
(1.97%) for the six-month period.
/2/ The Lipper Capital Appreciation Index is comprised of managed funds that aim
at maximum capital appreciation, 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.
-6-
<PAGE>
THE AMSOUTH EQUITY FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
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AmSouth AmSouth AmSouth S&P 500 Lipper Capital
Equity Fund Equity Fund Equity Fund Stock Appreciation
(Premier Shares) (Classic Shares)* (B Shares)** Index Index
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/88 10,000 9,551 9,500 10,000 10,000
7/89 12,406 11,849 11,906 12,980 12,919
7/90 12,611 12,046 12,211 13,822 13,328
7/91 13,679 13,065 13,379 15,577 14,988
7/92 15,499 14,757 15,149 17,555 16,592
7/93 17,582 16,794 17,382 19,084 19,096
7/94 18,972 18,121 18,872 20,069 19,796
7/95 22,628 21,613 22,628 25,307 25,244
7/96 25,137 24,010 25,137 29,378 27,377
7/97 35,783 34,178 35,783 44,689 36,419
1/98 36,735 35,082 36,648 46,280 36,962
</TABLE>
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Average Annual Total Return
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Since
As of 1 5 Inception
January 31, 1998 Year Year (12/1/88)
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Classic* 22.06% 16.69% 14.66%
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Premier 27.84% 17.77% 15.24%
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B Shares** 22.53% 17.51% 15.21%
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* Reflects 4.50% sales charge.
** Reflects Contingent Deferred Sales Charge.
On September 2, 1997 the Shareholders of the Fund exchanged their Shares for
either the Fund's Classic Shares or Premier Shares, and the Fund commenced
offering Class B Shares.
The performance of the AmSouth Equity 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. 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.
-7-
<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 13 years of investment management
experience. He holds an MBA and a bachelor's degree in finance.
ATTRACTIVE RETURNS DURING AN UGLY DOWNTURN
For the six months ended January 31, 1998, the AmSouth Equity Income Fund
produced a total return of 2.89% (Classic Shares without the sales charge)./1/
In comparison, the S&P 500 Index rose 3.56%, and the Lipper Equity Income Fund
Index gained 4.18%./2/
We saw a lot of volatility in the stock market during the period. After being
down a bit, stocks had a nice rally in September, but then were battered in
late October by concerns related to the problems in Asia. We did very well
during the sell-off, which speaks well for our style. The Fund has the
potential to outperform its benchmark, especially during market downturns; this
can help reduce some of the volatility equity investors must endure from time
to time. One factor that impacted us negatively during the fourth quarter of
1997, relative to our peer group, was the fact that we had a full market
weighting in technology. Approximately 16% of the portfolio was invested in
technology, while our peers in the equity income universe have, on average,
just 4% of assets invested in technology issues. With the Asian crisis
prompting fears of slower growth in this sector, technology took it on the chin
in the fourth quarter. However, technology stocks made a comeback in the final
weeks of January, which helped us.
OUTSTANDING PERFORMANCE FROM UTILITIES AND HEALTH CARE
The best-performing stock we had during the period was U.S. West (1.77% of net
assets)--one of our telecommunications holdings in the utility sector--which
was up more than 30%. Three factors helped the stock: a fall in interest rates;
a change in legislation that is making it much easier for the "Baby Bells,"
such as U.S. West, to get into the long-distance business; and the fact that
U.S. West was the cheapest and highest yielding of all of the Baby Bells as the
period began. Along with utilities, our health-care holdings were productive.
The stocks in this group had stable earnings that continue to grow, and an
ongoing consolidation within the industry is boosting stock prices. American
Home Products (2.3%) is one health-care stock that did very well during the
period.*
As of January 31, 1998, the Fund's top five holdings were Microsoft Convertible
Preferred (3.7%), Sears (2.7%), Banc One (2.9%), Nationsbank ACES Convertible
Preferred (2.7%) and Pharmacia & Upjohn (2.7%).*
A SLOWDOWN IS LIKELY
We don't profess to know what's going to happen in the stock market. At the
same time, we believe that the main concern in the months to come is the
continuing turmoil in Asia. This is clearly a serious economic problem, much
more significant than the crisis in Mexico of several years ago. The real key
over the next six to 12 months will be whether China and Hong Kong can maintain
the stability of their currency. Even if Hong Kong remains relatively healthy,
we still don't really know the full impact the devaluation of other Asian
currencies is going to have on the competitiveness and earnings growth of
American companies. We agree with the consensus that we may see slower earnings
growth in 1998.
/1The/Fund's Classic Shares total return with a maximum 4.50% sales charge was
(1.72%) for the six-month 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.
-8-
<PAGE>
THE AMSOUTH EQUITY INCOME FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AmSouth Equity AmSouth Equity AmSouth Equity S&P 500 Lipper Equity
Income Fund Income Fund Income Fund Stock Income Fund
(Premier Shares) (Classic Shares)* (B Shares)** Index Index
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3/20/97 10,000 9,551 9,500 10,000 10,000
3/97 9,832 9,390 9,340 9,574 9,676
6/97 11,090 10,592 10,590 11,192 10,935
9/97 11,948 11,409 11,421 12,108 11,786
12/97 11,999 11,451 11,449 14,214 12,204
1/98 12,134 11,578 11,576 14,372 12,079
</TABLE>
- ----------------------------------------------------------------------
Average Annual Total Return
- ----------------------------------------------------------------------
Since
As of Inception
January 31, 1998 YTD (3/20/97)
- ----------------------------------------------------------------------
Classic* -3.46% 15.78%
- ----------------------------------------------------------------------
Premier 1.13% 21.34%
- ----------------------------------------------------------------------
B Shares** -3.94% 15.76%
- ----------------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects Contingent Deferred Sales Charge.
On September 2, 1997 the Shareholders of the Fund exchanged their Shares for
either the Fund's Classic Shares or Premier Shares, and the Fund commenced
offering Class B Shares.
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. 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.
-9-
<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 17 years of investment
experience as a portfolio manager. He holds a master's of science degree in
finance and a bachelor's degree in economics.
A POSITIVE BEGINNING
The AmSouth Capital Growth Fund was opened to investors on August 4, 1997. For
the period ended January 31, 1998, which represents just less than six months
of performance, the Fund produced a total return of 1.40% (Classic Shares
without the sales charge)./1/ In comparison, the S&P 500 Index rose 3.56%.
Despite a sharp drop in the stock market during the fourth quarter of 1997, we
produced a positive return by avoiding many of the market's "casualties," and
by remaining fully invested. When the market recovered from its earlier
decline, the fact that we were fully invested enabled the Fund to regain its
forward momentum.*
A FUND FOR INVESTORS SEEKING GROWTH
We're large-cap managers. We invest in stocks with market capitalizations of
$1 billion and upwards; the portfolio's dollar-weighted average capitalization
is $34 billion. We're also growth managers. We assume some level of risk to
provide that growth, but we seek to be compensated for that risk with above-
average returns. This Fund could be appropriate for investors who are looking
for growth in principal, and who are willing to assume some volatility in
return for the potential of strong performance.
ASIA CONTINUES TO HAVE AN IMPACT
When the financial markets began to unravel last fall as a result of the
crisis in Asia, we looked at the companies in our portfolio very closely. We
found that those companies having exposure to Asia were handling the situation
adequately. They also had access to markets outside the Far East that were
doing very well, and we felt their overall potential could more than
compensate for the risk to earnings that was coming from Asia.
Since then, these companies have reported their most recent earnings, and on
balance, the numbers came in just where we thought they would. Still, it will
take some time before the questions surrounding Asia are resolved.
OUR WEIGHTINGS REFLECT OUR STOCK SELECTION
We're bottom-up managers. We pick stocks; we don't try to time the broader
market or even individual sectors. Any sector weightings we have, either
overweightings or underweightings, are purely a product of that bottom-up
approach. That said, the areas that remain attractive to us include the
financial sector, consumer cyclicals, capital goods and technology. We like
certain sub-sectors of the technology arena, such as software and computer
services. At this point, we're not particularly fond of companies that make
computer hardware.
As of January 31, 1998, the Fund's top five holdings were Procter & Gamble Co.
(2.9% of net assets), American Express (2.8%), Paging Network, Inc. (2.7%),
Computer Assoc. Int'l., Inc.(2.6%) and Compaq Computer Corp. (2.6%).
WE EXPECT AN ACCEPTABLE YEAR FOR STOCKS
Coming into 1998, we felt this would be a decent year for stocks, so we're not
surprised that the market has continued to move higher. However, we do have to
admit to being somewhat amazed that stocks have risen as sharply as they have
to date. (As of the middle of March, many of the major market indices had set
new highs.) While we would be surprised if the market continued to rise at its
recent pace, and we anticipate that volatility will remain a constant, we
believe equity investors will be rewarded with positive returns for the year
as a whole.
/1/ The Fund's Classic Shares total return with a maximum 4.50% sales charge was
(4.15%) for the year to date.
* The composition of the Fund's holdings is subject to change.
-10-
<PAGE>
THE AMSOUTH CAPITAL GROWTH FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
AmSouth Capital AmSouth Capital AmSouth Capital
Growth Fund Growth Fund Growth Fund S&P 500
(Classic Shares)* (Premier Shares) (B Shares)** Stock Index
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
8/4/97 9,550 10,000 9,500 10,000
8/31/97 9,120 9,550 9,073 9,440
9/30/97 9,598 10,050 9,540 9,957
10/31/97 9,187 9,620 9,120 9,625
11/30/97 9,435 9,890 9,367 10,070
12/31/97 9,646 10,110 9,570 10,243
1/31/98 9,684 10,150 9,610 10,356
</TABLE>
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of Inception
January 31, 1998 YTD (8/4/97)
- --------------------------------------------------------------------------------
Classic* -4.16% -3.16%
- --------------------------------------------------------------------------------
Premier 0.40% 1.50%
- --------------------------------------------------------------------------------
B Shares** -4.60% -3.90%
- --------------------------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects contingent deferred sales charge.
On September 2, 1997 the Shareholders of the Fund exchanged their Shares for
either the Fund's Classic Shares or Premier Shares, and the Fund commenced
offering Class B Shares.
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.
-11-
<PAGE>
THE AMSOUTH BALANCED FUND
Pedro Verdu, CFA, manages the AmSouth Balanced Fund. Mr. Verdu has more than
27 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
STRONG RETURNS FROM BOTH STOCKS AND BONDS
For the six months ended January 31, 1998, the AmSouth Balanced Fund produced
a total return of 3.72% (Classic Shares without the sales charge)./1/ In
comparison, the S&P 500 stock Index rose 3.56%, while the Lehman Brothers
Government/Corporate Bond Index gained 5.12%. For the same period, the Lipper
Balanced Fund Index moved up 2.87%./2/ Both portions of our portfolio, stocks
and bonds, contributed to the Fund's overall gain.
STOCKS: SOME ANXIETY, BUT GOOD PERFORMANCE NONETHELESS
Despite fears that the crisis in Asia could dampen corporate profits in the
United States--intensified by a jarring, 554-point drop in the Dow Jones
Industrial Average on October 27--stocks turned in a generally solid
performance for the period. We profited from our holdings in the retail and
utility sectors. Household names such as Wal-Mart (1.7% of net assets), Gap,
Inc. (1.3%) and Dayton Hudson (1.1%) were especially strong. Among the
utilities, we enjoyed outstanding returns from AT&T (1.0%), Bell Atlantic
(1.4%) and BellSouth (1.5%).
As of January 31, 1998, the Fund's top five equity holdings were Ford Motor
Co. (1.7%), Wal-Mart Stores, Inc. (1.7%), Baxter International, Inc. (1.5%),
BellSouth Corp. (1.5%) and Gannett Co., Inc. (1.5%).*
BONDS: LOWER RATES PUSHED BONDS HIGHER
As the period began, we structured our bond portfolio's average maturity to
run a bit longer than our benchmarks. When the Asian crisis struck in the
fall, many investors rushed to put their money in U.S. Treasury bonds. This
"flight to quality" drove long-term interest rates down to their lowest levels
in nearly 25 years. The falling rates pushed up the price, and value, of the
bonds in our portfolio. (Interest rates and bond prices often move inversely.)
As the period came to an end, we shortened our average maturity, believing
that interest rates had pretty much bottomed out.
As of January 31, 1998, the fixed-income securities within the Fund maintained
an average credit quality of AAA, with an average maturity of 7.8 years.*
EVEN WEIGHTING BETWEEN STOCKS AND BONDS
As of January 31, the Fund's assets were split roughly 50-50 between equities
and fixed-income securities. We're fairly neutral in our view of interest
rates, which often drive both stocks and bonds. We believe we're probably
closer to a bottom for rates than we are to a top; we don't anticipate rates
falling much further in the near term. At the same time, prospects for a
slowing economy and continued, benign inflation argue against the Federal
Reserve Board raising rates anytime soon. And while the effects of the Asian
problem might strike deep into the heart of corporate profits, we're not
betting against decent equity returns for 1998. The bottom line for this
balanced fund, in keeping with its mission, is that we intend to continue to
help provide shareholders diversification of their portfolio with a single
investment.
/1/ The Fund's Classic Shares total return with a maximum 4.50% sales charge was
(0.96%) for the six-month period.
/2/ The 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.
-12-
<PAGE>
THE AMSOUTH BALANCED FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AmSouth AmSouth AmSouth Lehman Brothers
Balanced Fund Balanced Fund Balanced Fund S&P 500 Government/Corporate Lipper Balanced
(Premier Shares) (B Shares)** (Classic Shares)* Stock Index Bond Index Fund Index
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
12/91 10,000 9,500 9,551 10,000 10,000 10,000
7/92 11,371 10,871 10,861 11,283 10,724 11,117
7/93 12,675 12,275 12,106 12,265 11,907 12,400
7/94 13,325 13,025 12,727 12,898 11,892 12,731
7/95 15,360 15,060 14,670 16,264 13,095 14,685
7/96 16,645 16,445 15,897 17,360 13,518 16,087
7/97 21,043 20,943 20,097 26,409 15,482 21,023
7/98 21,836 21,653 20,846 33,516 16,275 21,626
</TABLE>
Average Annual Total Return
- --------------------------------------------------------------------------------
Since
As of 1 5 Inception
January 31, 1998 Year Year (12/19/91)
- --------------------------------------------------------------------------------
Classic* 14.14% 11.98% 12.74%
- --------------------------------------------------------------------------------
Premier 19.55% 13.02% 13.60%
- --------------------------------------------------------------------------------
B Shares** 14.09% 12.68% 13.53%
- --------------------------------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects contingent deferred sales charge.
On September 2, 1997 the Shareholders of the Fund exchanged their Shares for
either the Fund's Classic Shares or Premier Shares, and the Fund commenced
offering Class B Shares.
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. 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.
-13-
<PAGE>
THE AMSOUTH BOND FUND
Brian Sullivan, CFA, manages the AmSouth Bond Fund. Mr. Sullivan is in charge
of fixed-income investments at AmSouth Bank and for the AmSouth Mutual Funds.
He is a member of the Trust Investment Policy Committee and the Investment
Strategy Committee of AmSouth Bank and has 13 years of fixed-income investment
management experience and holds an MBA in finance and a bachelor's degree in
economics.
THE VIRTUES OF A "CLEAN AND LONG' PORTFOLIO
For the six months ended January 31, 1998, the AmSouth Bond Fund produced a
total return of 4.97% (Classic Shares without the sales charge)./1/ In
comparison, the Lehman Brothers Government/Corporate Bond Index rose 5.12%,
and the Lipper Corporate A-Rated Debt Fund Index gained 4.43%./2/
In October, quite a few bond funds were hammered by fallout from the Asian
crisis. As it turned out, many funds that appeared to be "plain vanilla"--
supposedly investing only in highly rated, relatively safe bonds--had been
taking more risk than might have been apparent to the average investor. In
contrast, the AmSouth Bond Fund was "clean and long." In other words, the high
quality of the issues we held offered protection during autumn's sharp
volatility. Also, because our portfolio had a relatively long average
maturity, we added some principal return when the drop in rates boosted the
value of our bonds.
SWAPPING LONG TREASURIES FOR SHORT CORPORATES
The yield curve--the level of yields that generally rises as maturity lengths
increase--flattened considerably during the period, making it a challenge to
provide high yields without taking on an uncomfortable degree of risk. Our
solution: swap out of one high-yielding investment (long-term Treasury bonds)
and into another high-yielding investment (shorter term corporate debt).
When corporate spreads widened last fall, we found we could be paid quite a
bit more yield to take on some credit risk, so we added to our position in the
corporate market. At the same time, in the early part of October, and again in
November, we shortened the portfolio by selling the longest of our Treasury
bonds. The net result was that we were able to make prudent shifts in the
portfolio's structure, and maintain our yields, without increasing the Fund's
overall risk.
As of January 31, 1998, approximately 51% of the portfolio was invested in
securities issued by the U.S. Treasury and other U.S. government agencies,
with 48% in corporate issues and 1% in cash. The securities within the Fund
maintained an average credit quality of AAA, with an average maturity of 8.2
years.*
ASIA WILL MOVE THE MARKET, ONE WAY OR ANOTHER
Looking forward, we're neither bullish nor bearish about the U.S. economy and
the bond market. We see as many potentially negative factors as positive
ones--most of which have to do with the crisis in Asia. On the downside, if
the International Monetary Fund (IMF) and the Federal Reserve Board (Fed) pump
a great deal of money into troubled Asian economies, they run the risk of
igniting inflationary pressures in the United States. On the other hand, if
the IMF and the Fed decide to limit the amount of financial assistance to
Asia, and instead persuade Asian governments to take appropriate steps to
repair their economies, the result could be continued low inflation in the
United States.
To help protect the portfolio against the consequences of an inflationary
environment, we've been taking a sizable position in U.S. Treasury Inflated
Protection Securities (TIPS), due January 2007 (representing 5% of the
portfolio). The way these TIPS are structured, they have the potential to
perform better than long Treasury bonds if inflation returns.
/1/ The Fund's Classic Shares total return with a maximum 4.00% sales charge was
0.72% for the six-month period.
/2/ The 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 and government issues and reflects the deduction of fees for these
value-added services.
* The composition of the Fund's holdings is subject to change.
-14-
<PAGE>
THE AMSOUTH BOND FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
AmSouth AmSouth Lehman Brothers AmSouth Lipper Corporate
Bond Fund Bond Fund Government/Corporate Bond Fund A-Rated Debt
(Premier Shares) (Classic Shares)* Bond Index (B Shares)** Fund Index
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/88 10,000 9,597 10,000 9,500 10,000
7/89 11,091 10,644 11,188 10,591 11,079
7/90 11,705 11,233 11,885 11,305 11,650
7/91 12,640 12,131 13,103 12,340 12,803
7/92 14,715 14,122 15,152 14,415 14,920
7/93 16,158 15,507 16,824 15,958 16,622
7/94 16,195 15,542 16,802 16,095 16,413
7/95 17,765 17,050 18,502 17,765 18,060
7/96 18,546 17,799 19,487 18,546 18,983
7/97 20,489 19,663 21,590 20,489 21,103
7/98 21,515 20,639 22,695 21,446 22,038
</TABLE>
Average Annual Total Return
- ----------------------------------------------------------------------------
Since
As of 1 5 Inception
January 31, 1998 Year Year (12/1/88)
- ----------------------------------------------------------------------------
Classic* 6.53% 6.08% 8.22%
- ----------------------------------------------------------------------------
Premier 10.98% 6.96% 8.71%
- ----------------------------------------------------------------------------
B Shares** 5.63% 6.58% 8.67%
- ----------------------------------------------------------------------------
* Reflects 4.00% sales charge.
** Reflects contingent deferred sales charge.
On September 2, 1997 the Shareholders of the Fund exchanged their Shares for
either the Fund's Classic Shares or Premier Shares, and the Fund commenced
offering Class B Shares.
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. 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.
-15-
<PAGE>
THE AMSOUTH GOVERNMENT INCOME FUND
John Boston, CFA, manages the AmSouth Government Income Fund. 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 they offer significantly higher
yields than Treasuries, are the highest quality bonds among mortgage-backed
securities, and are the only type of mortgage security to be backed by the
full faith and credit of the U.S. Government.
For the six months ended January 31, 1998, the AmSouth Government Income Fund
produced a total return of 4.84% (Classic Shares without the sales charge)./1/
In comparison, the Lehman Brothers Mortgage Index rose 4.45%, while the Lipper
U.S. Mortgage Fund Index gained 4.28%./2/
THE ASIAN CRISIS DROVE RATES DOWN AND PRICES UP
The overwhelming factor that influenced the Fund's performance was the sharp
decline in interest rates. During the last six months, we saw a drop of 40 to
50 basis points (0.40-0.50%) for U.S. Treasury Bonds across the yield curve,
ranging from two to 30 years. This helped the Treasury portion of our
portfolio. However, the mortgage sector of the bond market--along with all
other, non-Treasury sectors--lagged the returns produced by Treasury bonds.
Buyers flocked to Treasuries in a conventional "flight to quality," as the
Asian crisis sent investors around the world looking for a safe, stable place
to put their money. This factor, above all, was responsible for the Treasury
sector's outperformance.
During the last six months, we reduced our holdings in Treasury securities to
12% at the end of January, from 20% at the end of July. We continue to pursue
a heavy emphasis on GNMA securities in our portfolio. We believe that, over
time, GNMAs offer the potential for higher returns than Treasuries.*
At the same time, we shortened the average maturity of the Fund's holdings to
6.45 years at the end of January, down from 8.58 years at the end of the
previous July. As interest rates fall--and we saw them decline significantly
during the period--the expected average life of a mortgage bond (which is
subject to refinancing at lower rates) results in a shorter average maturity.
With interest rates having fallen so far in a relatively short period of time,
we don't want to be quite as aggressive with the maturity structure of the
portfolio as we were six months ago. As of January 31, 1998, the Fund's
average credit quality was AAA.*
A HOSPITABLE ENVIRONMENT FOR BONDS
Prior to the Asian crisis, the biggest threat to the U.S. economy was that it
might overheat. Given the expected impact of the problems in Asia, we believe
the economy will slow in 1998. Long-term interest rates should remain low, as
will inflation. If all these factors play out as we expect them to, the
climate for bonds should continue to be constructive.
/1/ The Fund's Classic Shares total return with a maximum 4.00% sales charge was
0.61% for the six-month 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.
-16-
<PAGE>
THE AMSOUTH GOVERNMENT INCOME FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
AmSouth Government AmSouth Government Lipper
Income Fund Income Fund Lehman Brothers U.S. Mortgage
(Classic Shares)* (Premier Shares) Mortgage Index Fund Index
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
10/93 10,000 9,597 10,000 10,000
7/94 9,974 9,572 9,924 9,633
7/95 10,814 10,378 10,798 10,432
7/96 11,345 10,888 11,688 10,945
7/97 12,504 12,000 12,938 12,057
7/98 13,115 12,581 13,506 12,573
</TABLE>
- ---------------------------------------------------------------------------
Average Annual Total Return
- ---------------------------------------------------------------------------
Since
As of 1 5 Inception
January 31, 1998 Year Year (10/1/93)
- ---------------------------------------------------------------------------
Classic* 5.69% N/A 5.43%
- ---------------------------------------------------------------------------
Premier 10.14% N/A 6.45%
- ---------------------------------------------------------------------------
* Reflects 4.00% sales charge.
On September 2, 1997, the Shareholders of the Fund exchanged their shares for
either the Fund's Classic Shares or Premier Shares.
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
fees for various expenses. Had these waivers not been in place, performance
quoted would have been lower. 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.
-17-
<PAGE>
THE AMSOUTH LIMITED MATURITY FUND
John Boston, CFA, manages the AmSouth Limited Maturity Fund. Mr. Boston has
nine years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
For the six months ended January 31, 1998, the AmSouth Limited Maturity Fund
produced a total return of 3.79% (Classic Shares without the sales charge)./1/
In comparison, the Merrill Lynch 1-5-Year Government/Corporate Bond Index rose
3.84%, and the Lipper Short-Term Investment Grade Index gained 2.95%./2/
ASIA DROVE THE BOND MARKET
It would be difficult to overstate the impact of the Asian crisis on the bond
market.
In the first half of 1997, corporate spreads--the "premium" investors could
receive by choosing corporate issues rather than Treasury bonds of like
maturities--were very narrow.
However, when the severity of the problems in Asia became apparent last fall,
and many investors moved their money into U.S. Treasury securities (an action
known as a "flight to quality"), the yield spreads available from corporate
issues began to widen. Also, as long-term interest rates fell, issuers of
corporate bonds came to market to take advantage of the lower interest-rate
environment. This new flood of corporate paper worked to boost corporate bond
yields even further. As a result, investors willing to take on a little more
credit risk in the corporate market could secure yields that were considerably
higher than those offered by U.S. Treasury bonds.
OUR BIG MOVE BACK INTO CORPORATE BONDS
During the last six months, we decided it was prudent to take advantage of
this shift in the bond market, and we significantly increased our exposure to
corporate securities. As of January 31, 1998, 80% of the portfolio's net
assets was invested in the corporate sector, up from 55% at the end of July
1997. We also allowed the portfolio's average maturity to shorten to 3.2 years
at the end of January, from 3.3 years at the end of July.*
We continue to run a portfolio of very high quality. As of January 31, 1998,
the Fund's average credit quality was AA. The corporate portion of the
portfolio is very diversified; we hold paper from numerous issuers across many
different industries. We believe that, over time, corporate bonds will provide
a higher return than Treasury issues.
"REAL RETURNS" REMAIN HEALTHY
Six months ago, we wrote that fixed-income investors' "real returns" (yield
minus inflation) were greater than 4%, a figure that is high by historical
standards. Now, with long-term bonds yielding in the neighborhood of 5.75% to
6.00%, and inflation remaining benign at 1.7% (as of December 31, 1997), we
are still seeing inflation-adjusted, annualized yields of 4% or more.
With much of the portfolio invested in higher yielding corporate debt, the
Fund has the potential to seek greater income than might be expected from
certificates of deposit or a short-term government bond fund--while adhering
to a policy of reducing risk wherever possible.
/1/ The Fund's Classic Shares total return with a maximum 4.00% sales charge was
(0.32%) for the six-month period.
/2/ The 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.
-18-
<PAGE>
THE AMSOUTH LIMITED MATURITY FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
AmSouth Limited Merrill Lynch 1-5-Year AmSouth Limited Lipper
Maturity Fund Government/Corporate Maturity Fund Short Investment
(Classic Shares)* Bond Index (Premier Shares) Grade Debt Index
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2/89 9,597 10,000 10,000 10,000
7/89 10,256 10,783 10,687 10,640
7/90 10,953 11,608 11,413 11,443
7/91 11,946 12,786 12,447 12,455
7/92 13,318 14,373 13,877 13,829
7/93 14,213 15,397 14,810 14,765
7/94 14,323 15,670 14,924 15,082
7/95 15,419 16,925 16,066 16,093
7/96 16,149 17,842 16,827 16,976
7/97 17,321 19,266 18,048 18,190
1/98 17,977 20,006 18,740 18,727
</TABLE>
- ------------------------------------------------------------------------
Average Annual Total Return
- ------------------------------------------------------------------------
Since
As of 1 5 Inception
January 31, 1998 Year Year (2/1/89)
- ------------------------------------------------------------------------
Classic* 3.46% 4.72% 6.73%
- ------------------------------------------------------------------------
Premier 7.82% 5.60% 7.22%
- ------------------------------------------------------------------------
* Reflects 4.00% sales charge.
On September 2, 1997, the Shareholders of the Fund exchanged their shares for
either the Fund's Classic Shares or Premier Shares.
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. 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.
-19-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND+
Dorothy Thomas, who has 15 years of experience as an investment portfolio
manager for municipal bond accounts, personal trusts and endowments, manages
the AmSouth Florida Tax-Free Fund. Ms. Thomas holds an MBA and a bachelor's
degree in economics.
FIRM RETURNS IN A RELATIVELY QUIET MARKET
For the six months ended January 31, 1998, the AmSouth Florida Tax-Free Fund
produced a total return of 2.93% (Classic Shares without the sales charge)./1/
In comparison, the Merrill Lynch 3-7-Year Municipal Bond Index rose 2.95%.
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 tax and Florida intangible taxes.
WE BOUGHT HIGH-QUALITY ISSUES WITH ANTICIPATED INCOME
During the last six months, the taxable bond market experienced a widening of
spreads between corporate and U.S. Treasury issues; corporate debt offered
investors a "yield premium" (or a "quality spread") for assuming the greater
credit risk that comes with owning corporate bonds. However, in the municipal
(tax-free) market in which the Fund participates, there was little or no such
premium available. Quality spreads remained very narrow and, if anything,
contracted even further during the period.
In response to the dearth of issues offering higher yields, we maintained our
emphasis on buying high-quality bonds. We were particularly drawn to
"essential services" bonds--highly rated debt instruments issued by government
agencies that manage water, sewer and other utilities.
As of January 31, 1998, the securities within the Fund maintained an average
credit quality of AA, with an average maturity of 6.5 years.*
"REFUNDINGS" WERE ON THE RISE
Because of the decline in interest rates during the latter part of the period,
"refundings" were a significant source of new bond issues for us to consider.
Refundings generally become more numerous when issuers are motivated to
replace their older, higher interest obligations with less expensive debt. We
expect to see more refundings come to market over the next few months.
We also continued to search for ways to exploit the "inefficiencies" that are
sometimes available in the municipal debt market. These potentially profitable
situations arise when we find a bond that offers a more favorable price or
yield than another bond with similar characteristics.
A NEUTRAL-TO-FRIENDLY INTEREST RATE SCENARIO
When interest rates edged higher in August, we lengthened the Fund's average
maturity slightly, anticipating correctly that rates would come back down.
Looking ahead, we have positioned the Fund for an environment in which rates
remain stable or trend downward. We feel that, as a result of the problems in
Asia, the U.S. economy will slow in 1998--which should keep interest rates
relatively stable in the near term.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
/1/ The Fund's Classic Shares total return with a maximum 4.00% sales charge was
(1.21%) for the six-month period.
* The composition of the Fund's holdings is subject to change.
-20-
<PAGE>
THE AMSOUTH FLORIDA TAX-FREE FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
- --------------------------------------------------------------------------------
AmSouth Florida
Tax-Free Fund Merrill Lynch 3-7-Year Premier
(Classic Shares)* Municipal Bond Index Shares
- --------------------------------------------------------------------------------
9/94 9,597 10,000 10,000
7/95 10,224 11,387 10,658
7/96 10,658 11,394 11,105
7/97 11,392 11,943 11,870
1/98 11,726 12,295 12,224
- ----------------------------------------------------------------------------
Average Annual Total Return
- ----------------------------------------------------------------------------
Since
As of 1 5 Inception
January 31, 1998 Year Year (9/30/94)
- ----------------------------------------------------------------------------
Classic* 2.84% N/A 4.88%
- ----------------------------------------------------------------------------
Premier 7.17% N/A 6.19%
- ----------------------------------------------------------------------------
* Reflects a 4.00% sales charge.
On September 2, 1997, the Shareholders of the Fund exchanged their shares for
either the Fund's Classic Shares or Premier Shares.
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. 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.
-21-
<PAGE>
THE AMSOUTH MUNICIPAL BOND FUND
Dorothy Thomas, who has 15 years of experience as an investment portfolio
manager for municipal bond accounts, personal trusts and endowments, manages
the AmSouth Municipal Bond Fund. Ms. Thomas holds an MBA and a bachelor's
degree in economics.
For the six months ended January 31, 1998, the Fund produced a total return of
3.09% (Classic Shares without the sales charge)./1/ In comparison, the Merrill
Lynch 3-7 Year Municipal Bond Index rose 2.95%, while the Lipper Intermediate
Municipal Debt Index gained 3.14%./2/
DIVERSIFICATION IS A KEY CONSIDERATION
Throughout the period, we kept roughly 56% of the Fund's net assets invested
in municipal bonds issued within the state of Alabama and 44% invested in a
diversified portfolio of bonds from other states.
Normally, we allocate a significant portion of the portfolio to Alabama
municipal debt to take advantage of the tax benefits these bonds provide
Alabama residents. But because new municipal bonds issued within Alabama can
be scarce at times--as they were during the last six months--and because we
are committed to ensuring that the portfolio is properly diversified, we also
invest in municipal paper from outside Alabama. When looking for bonds from
other states, we concentrate on the quality and value of a particular issue,
rather than trying to adhere to rigid regional or state weighting.
WE STRESS QUALITY
The Southeast has had a generally strong economy for the last decade, and we
see no signs of weakening in the region. With the flexibility we employ in our
investment strategy, we can usually find good municipal issues with the
characteristics we favor. The issue of quality remains at the top of our list,
in part because "quality spreads" remain narrow. The market is not offering
substantially higher yields in exchange for taking on more credit risk.
When interest rates crept up in August, we lengthened the Fund's average
maturity slightly, anticipating correctly that rates would come back down. We
continue to maintain our maturity structure, and as we don't expect interest
rates to go up sharply, we are positioned to take advantage of an environment
in which rates may stay flat or decline.
As of January 31, 1998, the securities within the Fund maintained an average
credit quality of AA, with an average maturity of 6.9 years.*
A GENERALLY POSITIVE CLIMATE FOR MUNICIPAL DEBT
We believe that, as a result of the problems in Asia, the U.S. economy will
slow down in 1998. However, we don't expect the Asian crisis to have a direct,
negative effect on the issuers of municipal bonds. In fact, all other things
being equal, the fallout from Asia could induce lower interest rates this
year--a situation that would be constructive for all types of fixed-income
investments, including municipal bonds.
/1/ The Fund's Classic Shares total return with a maximum sales charge of 4.00%
was (1.01%) for the six-month period.
/2/ The 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.
-22-
<PAGE>
THE AMSOUTH MUNICIPAL BOND FUND
Value of a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index/ Lipper
AmSouth Municipal Merrill Lynch Intermediate
Bond Fund 3-7 Year Municipal Municipal Premier
(Classic Shares)* Bond Index Debt Index Shares
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/31/88 9,600 10,000 10,000 10,000
7/89 10,608 10,000 11,472 10,530
7/90 11,194 10,544 12,194 11,290
7/91 12,029 11,561 13,171 12,160
7/92 13,315 12,825 14,777 13,260
7/93 14,035 13,736 15,789 14,090
7/94 14,275 14,125 16,151 14,870
7/95 15,139 14,962 17,185 14,800
7/96 15,677 15,631 18,035 16,280
7/97 16,725 16,748 19,439 16,740
1/98 17,243 17,242 20,049 17,967
</TABLE>
- ---------------------------------------------------------------------------
Average Annual Total Return
- ---------------------------------------------------------------------------
As of 1 5 10
January 31, 1998 Year Year Year
- ---------------------------------------------------------------------------
Classic* 2.95% 4.12% 5.60%
- ---------------------------------------------------------------------------
Premier 7.34% 4.98% 6.03%
- ---------------------------------------------------------------------------
* Reflects 4.00% sales charge.
On September 2, 1997, the Shareholders of the Fund exchanged their shares for
either the Fund's Classic Shares or Premier Shares.
+The quoted performance for the Municipal Bond Fund includes performance of
certain collective trust fund ("Commingled") accounts advised by AmSouth Bank,
for periods dating back to 8/1/75 and prior to the Municipal Bond Fund's
commencement of operations on 7/1/97, as adjusted to reflect the expenses
associated with the Fund. The Commingled accounts were not registered with the
Securities and Exchange Commission and, therefore, were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts performance
may have been adversely affected. The performance shown reflects the deduction
of fees for value-added services associated with a mutual fund, such as
investment management and fund accounting fees. The performance also reflects
reinvestment of all dividends and capital-gains distributions.
The AmSouth Municipal Bond Fund's performance is measured against the Lehman
Brothers Municipal Bond Index from 7/31/87 to 7/31/89, prior to the creation
of the Merrill Lynch 3-7-Year Municipal Bond Index, against which the
performance is measured. Both the Lehman Brothers and the Merrill Lynch 3-7-
Year Municipal indices are unmanaged indices that are generally representative
of municipal bonds with intermediate maturities. The Fund's performance is
also measured against the Lipper Intermediate Municipal Debt Funds Index. The
Lehman Brothers Municipal Bond Index and the Merrill Lynch 3-7-Year Municipal
Index do 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.
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.
-23-
<PAGE>
THE AMSOUTH MONEY MARKET FUNDS
John Boston, CFA, manages the AmSouth Money Market Funds. Mr. Boston has nine
years of experience as a fixed-income manager. He holds a bachelor's degree in
finance.
HISTORICALLY HIGH RETURNS
During the six months ended January 31, 1998, the Federal Reserve Board
declined to take direct action to raise or lower short-term interest rates.
Throughout the period, inflation remained exceptionally tame. As a result,
current short-term interest rates were relatively high compared to the rate of
inflation--meaning that "real" (inflation-adjusted) money-market returns were
historically generous.
Investors can take comfort in knowing that AmSouth continues to offer high-
quality money market funds that provide competitive returns.
As of January 31, 1998, the Prime Obligations Fund's average maturity was 49
days, compared to 48 days on July 31, 1997.*
As of January 31, 1998, the U.S. Treasury Fund's average maturity was 46 days,
compared to about 45 days on July 31, 1997.*
As of January 31, 1998, the Tax-Exempt Fund's average maturity was 46 days,
compared to about 63 days on July 31, 1997.*
* The composition of the Fund's holdings is subject to change.
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 total return set forth may reflect the waiver of a portion of a Fund's
advisory or administrative fees for certain periods since the inception date.
In such instances, and without waiver of fees, total return would have been
lower.
-24-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1998
(Amounts in Thousands, except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
REGIONAL EQUITY CAPITAL
EQUITY EQUITY INCOME GROWTH BALANCED
FUND FUND FUND FUND FUND
-------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$96,931; $618,426; $30,114;
$7,958; and $282,003,
respectively).................. $147,571 $943,023 $31,946 $8,210 $361,060
Cash............................ -- -- -- 159 --
Interest and dividends
receivable..................... 188 1,807 129 4 3,247
Receivable for capital shares
issued......................... 18 73 76 1 22
Receivable from brokers for
investments sold............... -- 2,534 -- 73 845
Unamortized organizational
costs.......................... -- -- 11 15 --
Prepaid expenses and other
assets......................... 13 80 25 10 13
-------- -------- ------- ------ --------
Total Assets................. 147,790 947,517 32,187 8,472 365,187
-------- -------- ------- ------ --------
LIABILITIES:
Payable for capital shares
redeemed....................... 43 291 15 15 45
Dividends payable............... 18 1,052 74 -- 444
Payable to brokers for
investments purchased.......... -- 1,468 -- 143 489
Accrued expenses and other
payables:
Investment advisory fees....... 101 631 21 5 243
Administration fees............ 5 31 1 -- 12
Shareholder servicing (Classic
Shares) and 12b-1 (B Shares)
fees.......................... 11 15 7 2 12
Accounting fees................ -- 4 -- -- 2
Transfer agent fees............ -- 7 -- -- 3
Custodian fees................. 1 7 2 -- 1
Audit fees..................... 3 29 1 1 4
Printing fees.................. -- 9 -- -- 1
Other.......................... 1 2 3 5 --
-------- -------- ------- ------ --------
Total Liabilities............ 183 3,546 124 171 1,256
-------- -------- ------- ------ --------
NET ASSETS:
Capital......................... 95,907 595,300 30,104 8,131 277,850
Undistributed (distributions in
excess of) net investment
income......................... (8) (46) 12 (14) (81)
Net unrealized appreciation
(depreciation) from
investments.................... 50,640 324,597 1,832 252 79,057
Accumulated undistributed net
realized gains (losses) from
investment transactions........ 1,068 24,120 115 (68) 7,105
-------- -------- ------- ------ --------
Net Assets................... $147,607 $943,971 $32,063 $8,301 $363,931
======== ======== ======= ====== ========
Net Assets
Classic Shares................. $ 47,966 $ 61,808 $23,593 $4,838 $ 49,167
Premier Shares................. 98,594 879,561 5,497 2,165 313,150
B Shares....................... 1,047 2,602 2,973 1,298 1,614
-------- -------- ------- ------ --------
Total........................ $147,607 $943,971 $32,063 $8,301 $363,931
======== ======== ======= ====== ========
Outstanding units of beneficial
interest (shares)
Classic Shares................. 1,741 2,734 2,049 477 3,375
Premier Shares................. 3,579 38,934 478 213 21,503
B Shares....................... 38 115 259 129 111
-------- -------- ------- ------ --------
Total........................ 5,358 41,783 2,786 819 24,989
======== ======== ======= ====== ========
Net asset value
Classic Shares--redemption
price per share............... $ 27.56 $ 22.61 $ 11.51 $10.14 $ 14.57
======== ======== ======= ====== ========
Premier Shares--offering and
redemption price per share.... $ 27.55 $ 22.59 $ 11.51 $10.15 $ 14.56
======== ======== ======= ====== ========
B Shares*--offering price per
share......................... $ 27.51 $ 22.60 $ 11.49 $10.11 $ 14.55
======== ======== ======= ====== ========
Maximum sales charge (Classic
Shares)........................ 4.50% 4.50% 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)..... $ 28.86 $ 23.68 $ 12.05 $10.62 $ 15.26
======== ======== ======= ====== ========
</TABLE>
- --------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-25-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1998
(Amounts in Thousands, except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
GOVERNMENT LIMITED FLORIDA MUNICIPAL
BOND INCOME MATURITY TAX-FREE BOND
FUND FUND FUND FUND FUND
-------- ---------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$294,194; $9,667; $111,778;
$51,763 and $323,811,
respectively)............... $309,168 $ 9,926 $114,420 $54,091 $338,618
Interest and dividends
receivable.................. 5,797 73 2,327 699 5,311
Receivable for capital shares
issued...................... 3 -- 1 -- --
Receivable from brokers for
investments sold............ -- -- -- 1,710 --
Prepaid expenses and other
assets...................... 37 3 20 4 92
-------- ------- -------- ------- --------
Total Assets.............. 315,005 10,002 116,768 56,504 344,021
-------- ------- -------- ------- --------
LIABILITIES:
Payable for capital shares
redeemed.................... 49 -- -- -- --
Dividends payable............ 1,460 108 455 187 1,104
Payable to brokers for
investments purchased....... 164 -- -- -- 7,698
Accrued expenses and other
payables:
Investment advisory fees.... 133 3 50 14 114
Administration fees......... 6 -- 2 1 7
Shareholder servicing
(Classic Shares) and 12b-1
(B Shares) fees............ -- 1 -- -- --
Accounting fees............. 3 1 -- 2 --
Transfer agent fees......... 8 -- 4 -- 13
Custodian fees.............. 2 -- 2 -- 2
Printing fees............... 2 -- -- 21 9
Organizational fees......... -- -- -- -- 1
Other....................... 11 4 6 3 76
-------- ------- -------- ------- --------
Total Liabilities......... 1,838 117 519 228 9,024
-------- ------- -------- ------- --------
NET ASSETS:
Capital...................... 296,743 10,030 115,024 53,815 319,290
Undistributed (distributions
in excess of) net investment
income...................... 67 (60) 20 -- 28
Net unrealized appreciation
(depreciation) from
investments................. 14,974 259 2,642 2,328 14,807
Accumulated undistributed net
realized gains (losses) from
investment transactions..... 1,383 (344) (1,437) 133 872
-------- ------- -------- ------- --------
Net Assets................ $313,167 $ 9,885 $116,249 $56,276 $334,997
======== ======= ======== ======= ========
Net Assets
Classic Shares.............. $ 7,569 $ 9,164 $ 3,113 $ 3,858 $ 2,509
Premier Shares.............. 305,493 721 113,136 52,418 332,488
B Shares.................... 105 -- -- -- --
-------- ------- -------- ------- --------
Total..................... $313,167 $ 9,885 $116,249 $56,276 $334,997
======== ======= ======== ======= ========
Outstanding units of
beneficial interest (shares)
Classic Shares.............. 682 925 296 367 245
Premier Shares.............. 27,514 73 10,769 4,986 32,528
B Shares.................... 9 -- -- -- --
-------- ------- -------- ------- --------
Total..................... 28,205 998 11,065 5,353 32,773
======== ======= ======== ======= ========
Net asset value
Classic Shares--redemption
price per share............ $ 11.10 $ 9.90 $ 10.51 $ 10.51 $ 10.22
======== ======= ======== ======= ========
Premier Shares--offering
and redemption price per
share...................... $ 11.10 $ 9.90 $ 10.51 $ 10.51 $ 10.22
======== ======= ======== ======= ========
B Shares*--offering price
per share.................. $ 11.10 $ -- $ -- $ -- $ --
======== ======= ======== ======= ========
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)..................... $ 11.56 $ 10.31 $ 10.95 $ 10.95 $ 10.65
======== ======= ======== ======= ========
</TABLE>
- --------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-26-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1998
(Amounts in Thousands, except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
PRIME U.S. TAX-
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- -------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost................... $510,384 $212,197 $91,079
Repurchase agreements, at cost................... 105,832 106,052 --
-------- -------- -------
616,216 318,249 91,079
Cash............................................. -- 329 --
Interest receivable.............................. 834 1,693 747
Prepaid expenses and other assets................ 21 22 5
-------- -------- -------
Total Assets.................................. 617,071 320,293 91,831
-------- -------- -------
LIABILITIES:
Dividends payable................................ 2,701 1,205 235
Payable to brokers for investments purchased..... -- -- 1,024
Accrued expenses and other payables:
Investment advisory fees........................ 215 102 16
Administration fees............................. 21 10 3
Shareholder servicing (Classic Shares) and 12b-
1 (B Shares) fees.............................. 11 1 2
Accounting fees................................. 3 1 2
Transfer agent fees............................. 7 2 2
Custodian fees.................................. 1 3 --
Other........................................... 8 13 12
-------- -------- -------
Total Liabilities............................. 2,967 1,337 1,296
-------- -------- -------
NET ASSETS:
Capital.......................................... 614,113 318,954 90,537
Accumulated undistributed net realized gains
(losses) from investment transactions........... (9) 2 (2)
-------- -------- -------
Net Assets.................................... $614,104 $318,956 $90,535
======== ======== =======
Net Assets
Classic Shares.................................. $119,264 $ 6,136 $20,095
Premier Shares.................................. 494,840 312,820 70,440
B Shares........................................ -- -- --
-------- -------- -------
Total......................................... $614,104 $318,956 $90,535
======== ======== =======
Outstanding units of beneficial interest (shares)
Classic Shares.................................. 119,270 6,136 20,096
Premier Shares.................................. 494,857 312,818 70,441
B Shares........................................ -- -- --
-------- -------- -------
Total......................................... 614,127 318,954 90,537
======== ======== =======
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.
-27-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
REGIONAL EQUITY CAPITAL
EQUITY EQUITY INCOME GROWTH BALANCED
FUND FUND FUND FUND (A) FUND
-------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income...................... $ -- $ 98 $ 73 $ -- $ 5,226
Dividend income...................... 1,265 9,853 423 29 2,183
------- -------- ---- ---- -------
Total Income....................... 1,265 9,951 496 29 7,409
------- -------- ---- ---- -------
EXPENSES:
Investment advisory fees............. 623 3,846 108 22 1,455
Administration fees.................. 156 961 27 5 364
Shareholder servicing fees (Classic
Shares)............................. 52 57 22 3 51
12b-1 fees (B Shares)................ 2 5 5 3 3
Accounting fees...................... 27 149 8 5 63
Transfer agent fees.................. 16 103 5 -- 37
Custodian fees....................... 4 24 -- -- 11
Legal and audit fees................. 9 47 6 4 26
Trustee fees and expenses............ 1 5 -- -- 2
Registration and filing fees......... 6 39 7 2 3
Printing fees........................ 5 24 1 -- 11
Organizational fees.................. -- -- 2 2 --
Other................................ 2 7 1 -- 4
------- -------- ---- ---- -------
Total Expenses..................... 903 5,267 192 46 2,030
Expenses voluntarily reduced......... (1) -- -- (3) --
------- -------- ---- ---- -------
Net Expenses....................... 902 5,267 192 43 2,030
------- -------- ---- ---- -------
Net Investment Income................ 363 4,684 304 (14) 5,379
------- -------- ---- ---- -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions............. 2,771 48,685 885 (68) 16,689
Net change in unrealized
appreciation/depreciation from
investments......................... (1,617) (27,934) (310) 252 (8,937)
------- -------- ---- ---- -------
Net realized/unrealized gains
(losses) from investments........... 1,154 20,751 575 184 7,752
------- -------- ---- ---- -------
Change in net assets resulting from
operations.......................... $ 1,517 $ 25,435 $879 $170 $13,131
======= ======== ==== ==== =======
</TABLE>
- --------
(a) For the period August 1, 1997 (commencement of operations) through January
31, 1998.
See notes to financial statements.
-28-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended January 31, 1998
(Amounts in Thousands)
(Unaudited)
<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.................. $ 9,935 $375 $4,003 $1,257 $ 8,173
Dividend income.................. 70 7 24 30 129
------- ---- ------ ------ -------
Total Income................... 10,005 382 4,027 1,287 8,302
------- ---- ------ ------ -------
EXPENSES:
Investment advisory fees......... 1,009 36 409 173 1,104
Administration fees.............. 310 11 126 53 340
Shareholder servicing fees
(Classic Shares)................ 7 10 3 5 2
Accounting fees.................. 54 7 23 14 55
Transfer agent fees.............. 30 1 13 4 37
Custodian fees................... 9 -- 3 1 9
Legal and audit fees............. 16 2 5 5 23
Trustee fees and expenses........ 2 -- 1 -- 2
Registration and filing fees..... 22 1 11 2 26
Printing fees.................... 10 1 5 1 7
Organizational fees.............. -- -- -- -- 1
Other............................ 1 -- 1 1 1
------- ---- ------ ------ -------
Total Expenses................. 1,470 69 600 259 1,607
Expenses voluntarily reduced..... (361) (31) (146) (123) (561)
------- ---- ------ ------ -------
Net Expenses................... 1,109 38 454 136 1,046
------- ---- ------ ------ -------
Net Investment Income............ 8,896 344 3,573 1,151 7,256
------- ---- ------ ------ -------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions......... 2,880 146 702 349 1,672
Net change in unrealized
appreciation/depreciation
from investments................ 3,207 23 179 46 1,346
------- ---- ------ ------ -------
Net realized/unrealized gains
(losses) from investments....... 6,087 169 881 395 3,018
------- ---- ------ ------ -------
Change in net assets resulting
from operations................. $14,983 $513 $4,454 $1,546 $10,274
======= ==== ====== ====== =======
</TABLE>
See notes to financial statements.
-29-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRIME U.S. TAX
OBLIGATIONS TREASURY EXEMPT
FUND FUND FUND
----------- -------- ------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................... $18,332 $7,857 $1,492
------- ------ ------
Total Income.................................... 18,332 7,857 1,492
------- ------ ------
EXPENSES:
Investment advisory fees.......................... 1,284 583 163
Administration fees............................... 642 291 82
Shareholder servicing fees (Classic Shares)....... 150 10 27
Accounting fees................................... 101 46 16
Transfer agent fees............................... 59 30 8
Custodian fees.................................... 18 6 2
Legal and audit fees.............................. 42 25 6
Trustee fees and expenses......................... 3 2 --
Registration and filing fees...................... 2 1 3
Printing fees..................................... 21 16 3
Other............................................. 9 5 3
------- ------ ------
Total Expenses.................................. 2,331 1,015 313
Expenses voluntarily reduced...................... (90) (6) (98)
------- ------ ------
Net Expenses.................................... 2,241 1,009 215
------- ------ ------
Net Investment Income............................. 16,091 6,848 1,277
------- ------ ------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVEST-
MENTS:
Net realized gains (losses) from investment trans-
actions.......................................... -- 1 --
------- ------ ------
Change in net assets resulting from operations.... $16,091 $6,849 $1,277
======= ====== ======
</TABLE>
See notes to financial statements.
-30-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
REGIONAL EQUITY FUND EQUITY FUND EQUITY INCOME FUND
-------------------- --------------------- --------------------
SIX SIX SIX
MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 1997 1998 1997 1998 1997 (A)
----------- -------- ----------- --------- ----------- --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income. $ 363 $ 1,178 $ 4,684 $ 7,079 $ 304 $ 96
Net realized gains
(losses) from
investment
transactions......... 2,771 4,481 48,685 31,338 885 248
Net change in
unrealized
appreciation/
depreciation from
investments.......... (1,617) 34,116 (27,934) 151,828 (310) 2,142
-------- -------- --------- --------- ------- -------
Change in net assets
resulting from
operations............. 1,517 39,775 25,435 190,245 879 2,486
-------- -------- --------- --------- ------- -------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment
income............... (91) (1,196) (1,254) (7,031) (242) (81)
From net realized
gains from investment
transactions......... (1,577) (2,315) (3,043) (21,737) (762) --
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:
From net investment
income............... (284) -- (3,782) -- (54) --
From net realized
gains from investment
transactions......... (3,440) -- (47,629) -- (189) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income............... -- -- (2) -- (11) --
From net realized
gains from investment
transactions......... (26) -- (85) -- (67) --
-------- -------- --------- --------- ------- -------
Change in net assets
from shareholder
distributions.......... (5,418) (3,511) (55,795) (28,768) (1,325) (81)
-------- -------- --------- --------- ------- -------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 15,959 34,563 96,852 556,310 10,801 20,123
Dividends reinvested.. 2,921 1,945 13,413 14,093 1,078 37
Cost of shares
redeemed............. (17,210) (16,518) (110,919) (131,517) (1,643) (292)
-------- -------- --------- --------- ------- -------
Change in net assets
from share
transactions........... 1,670 19,990 (654) 438,886 10,236 19,868
-------- -------- --------- --------- ------- -------
Change in net assets.... (2,231) 56,254 (31,014) 600,363 9,790 22,273
NET ASSETS:
Beginning of period... 149,838 93,584 974,985 374,622 22,273 --
-------- -------- --------- --------- ------- -------
End of period......... $147,607 $149,838 $ 943,971 $ 974,985 $32,063 $22,273
======== ======== ========= ========= ======= =======
SHARE TRANSACTIONS:
Issued................ 557 1,439 4,263 26,434 933 1,923
Reinvested............ 102 84 595 773 95 4
Redeemed.............. (608) (683) (4,825) (6,713) (142) (27)
-------- -------- --------- --------- ------- -------
Change in shares........ 51 840 33 20,494 886 1,900
======== ======== ========= ========= ======= =======
</TABLE>
- --------
(a)For the period from March 20, 1997 (commencement of operations) through July
31, 1997.
See notes to financial statements.
-31-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
CAPITAL
GROWTH FUND BALANCED FUND
----------- ---------------------
SIX SIX
MONTHS MONTHS YEAR
ENDED ENDED ENDED
JANUARY 31, JANUARY 31, JULY 31,
1998 (A) 1998 1997
----------- ----------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income..................... $ (14) $ 5,379 $ 12,452
Net realized gains (losses) from
investment transactions.................. (68) 16,689 16,168
Net change in unrealized
appreciation/depreciation from
investments.............................. 252 (8,937) 55,439
------ -------- ---------
Change in net assets resulting from
operations................................. 170 13,131 84,059
------ -------- ---------
DISTRIBUTIONS TO CLASSIC SHAREHOLDERS:
From net investment income................ -- (1,482) (13,031)
From net realized gains from investment
transactions............................. -- (3,101) (15,072)
DISTRIBUTIONS TO PREMIER SHAREHOLDERS:
From net investment income................ -- (3,869) --
From net realized gains from investment
transactions............................. -- (19,895) --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................ -- (7) --
From net realized gains from investment
transactions............................. -- (71) --
------ -------- ---------
Change in net assets from shareholder
distributions.............................. -- (28,425) (28,103)
------ -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............... 8,469 43,948 79,422
Dividends reinvested...................... -- 19,317 20,289
Cost of shares redeemed................... (338) (56,809) (121,323)
------ -------- ---------
Change in net assets from share
transactions............................... 8,131 6,456 (21,612)
------ -------- ---------
Change in net assets........................ 8,301 (8,838) 34,344
NET ASSETS:
Beginning of period....................... -- 372,769 338,425
------ -------- ---------
End of period............................. $8,301 $363,931 $ 372,769
====== ======== =========
SHARE TRANSACTIONS:
Issued.................................... 853 2,986 5,836
Reinvested................................ -- 1,330 1,523
Redeemed.................................. (34) (3,831) (8,820)
------ -------- ---------
Change in shares............................ 819 485 (1,461)
====== ======== =========
</TABLE>
- --------
(a) For the period August 1, 1997 (commencement of operations) through January
31, 1998.
See notes to financial statements.
-32-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
GOVERNMENT LIMITED MATURITY
BOND FUND INCOME FUND FUND
-------------------- -------------------- --------------------
SIX SIX SIX
MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 1997 1998 1997 1998 1997
----------- -------- ----------- -------- ----------- --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income. $ 8,896 $ 9,088 $ 344 $ 829 $ 3,573 $ 2,797
Net realized gains
(losses) from
investment
transactions......... 2,880 (340) 146 41 702 (639)
Net change in
unrealized
appreciation/
depreciation from
investments.......... 3,207 10,605 23 483 179 2,509
-------- -------- ------- ------- -------- --------
Change in net assets
resulting from
operations............. 14,983 19,353 513 1,353 4,454 4,667
-------- -------- ------- ------- -------- --------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment
income............... (1,586) (9,548) (324) (829) (680) (2,942)
From net realized
gains from investment
transactions......... (18) -- -- -- -- --
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:
From net investment
income............... (7,625) -- (18) -- (2,906) --
From net realized
gains from investment
transactions......... (788) -- -- -- -- --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income............... (2) -- -- -- -- --
-------- -------- ------- ------- -------- --------
Change in net assets
from shareholder
distributions.......... (10,019) (9,548) (342) (829) (3,586) (2,942)
-------- -------- ------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 49,460 201,871 826 1,446 7,295 115,330
Dividends reinvested.. 3,017 5,240 155 412 347 865
Cost of shares
redeemed............. (56,155) (37,772) (2,889) (6,512) (30,936) (25,250)
-------- -------- ------- ------- -------- --------
Change in net assets
from share
transactions........... (3,678) 169,339 (1,908) (4,654) (23,294) 90,945
-------- -------- ------- ------- -------- --------
Change in net assets.... 1,286 179,144 (1,737) (4,130) (22,426) 92,670
NET ASSETS:
Beginning of period... 311,881 132,737 11,622 15,752 138,675 46,005
-------- -------- ------- ------- -------- --------
End of period......... $313,167 $311,881 $ 9,885 $11,622 $116,249 $138,675
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
Issued................ 4,522 18,995 85 153 698 11,205
Reinvested............ 277 494 16 43 33 84
Redeemed.............. (5,142) (3,539) (295) (680) (2,968) (2,449)
-------- -------- ------- ------- -------- --------
Change in shares........ (343) 15,950 (194) (484) (2,237) 8,840
======== ======== ======= ======= ======== ========
</TABLE>
See notes to financial statements.
-33-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
FLORIDA TAX-FREE
FUND MUNICIPAL BOND FUND
-------------------- --------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 1997 1998 1997 (A)
----------- -------- ----------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............ $ 1,151 $ 2,278 $ 7,256 $ 1,196
Net realized gains (losses) from
investment transactions......... 349 135 1,672 21
Net change in unrealized
appreciation/depreciation from
investments..................... 46 1,102 1,346 5,152
------- ------- -------- --------
Change in net assets resulting from
operations........................ 1,546 3,515 10,274 6,369
------- ------- -------- --------
DISTRIBUTIONS TO CLASSIC
SHAREHOLDERS:
From net investment income....... (257) (2,402) (1,166) (1,196)
In excess of net investment
income.......................... -- -- -- (5)
From net realized gains from
investment transactions......... (25) (74) (5) --
DISTRIBUTIONS TO PREMIER
SHAREHOLDERS:
From net investment income....... (888) -- (6,057) --
From net realized gains from
investment transactions......... (322) -- (816) --
------- ------- -------- --------
Change in net assets from
shareholder distributions......... (1,492) (2,476) (8,044) (1,201)
------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued...... 10,102 12,780 28,763 342,930
Dividends reinvested............. 110 213 42 --
Cost of shares redeemed.......... (7,678) (9,213) (33,971) (10,165)
------- ------- -------- --------
Change in net assets from share
transactions...................... 2,534 3,780 (5,166) 332,765
------- ------- -------- --------
Change in net assets............... 2,588 4,819 (2,936) 337,933
NET ASSETS:
Beginning of period.............. 53,688 48,869 337,933 --
------- ------- -------- --------
End of period.................... $56,276 $53,688 $334,997 $337,933
======= ======= ======== ========
SHARE TRANSACTIONS:
Issued........................... 965 1,240 2,840 34,283
Reinvested....................... 10 21 4 --
Redeemed......................... (734) (894) (3,350) (1,004)
------- ------- -------- --------
Change in shares................... 241 367 (506) 33,279
======= ======= ======== ========
</TABLE>
- --------
(a) For the period from July 1, 1997 (commencement of operations) through July
31, 1997.
See notes to financial statements.
-34-
<PAGE>
AMSOUTH MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND U.S. TREASURY FUND TAX-EXEMPT FUND
----------------------- --------------------- ---------------------
SIX SIX SIX
MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- --------- ----------- ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income. $ 16,091 $ 28,798 $ 6,848 $ 15,237 $ 1,277 $ 2,474
Net realized gains
(losses) from
investment
transactions......... -- -- 1 -- -- (2)
--------- ----------- --------- --------- --------- ---------
Change in net assets
resulting from
operations............. 16,091 28,798 6,849 15,237 1,277 2,472
--------- ----------- --------- --------- --------- ---------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income:
Classic Shares........ (2,953) (5,860) (190) (497) (333) (605)
Premier Shares........ (13,138) (22,938) (6,658) (14,740) (944) (1,869)
--------- ----------- --------- --------- --------- ---------
Change in net assets
from shareholder
distributions.......... (16,091) (28,798) (6,848) (15,237) (1,277) (2,474)
--------- ----------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 904,153 1,618,418 465,662 861,771 122,891 201,701
Dividends reinvested.. 3,788 7,378 435 876 358 590
Cost of shares
redeemed............. (821,830) (1,701,420) (466,388) (923,826) (116,069) (179,661)
--------- ----------- --------- --------- --------- ---------
Change in net assets
from share
transactions........... 86,111 (75,624) (291) (61,179) 7,180 22,630
--------- ----------- --------- --------- --------- ---------
Change in net assets.... 86,111 (75,624) (290) (61,179) 7,180 22,628
NET ASSETS:
Beginning of period... 527,993 603,617 319,246 380,425 83,355 60,727
--------- ----------- --------- --------- --------- ---------
End of period......... $ 614,104 $ 527,993 $ 318,956 $ 319,246 $ 90,535 $ 83,355
========= =========== ========= ========= ========= =========
SHARE TRANSACTIONS:
Issued................ 904,153 1,618,418 465,662 861,771 122,891 201,701
Reinvested............ 3,788 7,378 435 876 358 590
Redeemed.............. (821,830) (1,701,420) (466,388) (923,826) (116,069) (179,661)
--------- ----------- --------- --------- --------- ---------
Change in shares........ 86,111 (75,624) (291) (61,179) 7,180 22,630
========= =========== ========= ========= ========= =========
</TABLE>
See notes to financial statements.
-35-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ------------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (97.4%):
Air Freight (2.6%):
60 Federal Express Corp. (b).................................... $ 3,904
--------
Apparel (3.1%):
80 Delta Woodside Industries, Inc. ............................. 370
170 Russell Corp. ............................................... 4,197
--------
4,567
--------
Automotive Parts (3.5%):
105 Discount Auto Parts, Inc. (b)................................ 2,192
90 Genuine Parts Co. ........................................... 2,987
--------
5,179
--------
Banking (11.3%):
80 Deposit Guaranty Corp. ...................................... 4,131
50 First Commerce Corp. ........................................ 3,478
45 First Tennessee National Corp. .............................. 2,649
70 First Union Corp. ........................................... 3,364
48 NationsBank Corp. ........................................... 2,880
--------
16,502
--------
Building Materials (2.6%):
110 Interface, Inc. ............................................. 3,891
--------
Chemicals--Speciality (1.5%):
300 Ethyl Corp. ................................................. 2,156
--------
Construction--Manufactured Homes (2.4%):
215 Clayton Homes, Inc. ......................................... 3,601
--------
Electrical & Electronic (1.9%):
180 Scientific-Atlanta, Inc. .................................... 2,801
--------
Food Processing & Packaging (6.0%):
218 Flowers Industries, Inc. .................................... 5,016
165 Lance, Inc. ................................................. 3,878
--------
8,894
--------
Forest & Paper Products (4.3%):
80 Caraustar Industries, Inc. .................................. 2,840
80 Fort James Corp. ............................................ 3,435
--------
6,275
--------
Furniture (1.7%):
40 Heilig Myers Co. ............................................ 520
105 Winsloew Furniture, Inc. (b)................................. 2,034
--------
2,554
--------
Insurance (4.3%):
85 Equifax, Inc. ............................................... 2,794
63 Vesta Insurance Group, Inc. ................................. 3,560
--------
6,354
--------
Manufacturing (2.7%):
120 Wolverine Tube, Inc. (b)..................................... 3,990
--------
Medical Services (14.1%):
240 Coventry Corp. (b)............................................. 3,225
228 Health Management Assoc.,
Inc., Class A (b)........................................... 5,453
400 HEALTHSOUTH Corp. (b)........................................ 8,975
300 MedPartners, Inc. (b)........................................ 2,981
--------
20,634
--------
Oil & Gas Exploration, Production, & Services (3.0%):
61 Burlington Resources, Inc. .................................. 2,608
26 Mobil Corp. ................................................. 1,771
--------
4,379
--------
Oilfield Equipment & Services (4.6%):
40 Camco International, Inc. ................................... 2,188
55 McDermott International,
Inc. ....................................................... 1,753
165 Offshore Logistics, Inc. (b)................................. 2,867
--------
6,808
--------
Printing (1.0%):
100 John H. Harland Co. ......................................... 1,538
--------
Railroads (1.9%):
90 Norfolk Southern Corp. ...................................... 2,841
--------
Restaurants (3.0%):
130 Cracker Barrel Old Country
Store, Inc. ................................................ 4,501
--------
Retail (6.8%):
200 Books-A-Million, Inc. (b).................................... 1,175
190 Hancock Fabrics, Inc. ....................................... 2,957
110 Office Depot, Inc. (b)....................................... 2,448
135 Stein Mart, Inc. (b)......................................... 3,400
--------
9,980
--------
Steel (3.3%):
125 Birmingham Steel Corp. ...................................... 2,070
60 Nucor Corp. ................................................. 2,858
--------
4,928
--------
</TABLE>
Continued
-36-
<PAGE>
AMSOUTH MUTUAL FUNDS
REGIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ------------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Temporary Services (2.2%):
125 AccuStaff, Inc. (b).......................................... $ 3,219
--------
Transportation Leasing & Trucking (2.0%):
90 Ryder System, Inc. .......................................... 3,015
--------
Utilities--Electric & Gas (4.7%):
90 Florida Progress Corp. ...................................... 3,448
145 Southern Co. ................................................ 3,525
--------
6,973
--------
Utilities--Telecommunications (2.9%):
70 BellSouth Corp. ............................................. 4,239
--------
Total Common Stocks 143,723
--------
INVESTMENT COMPANIES (2.6%):
3,823 AmSouth Prime Obligations Fund............................... $ 3,823
25 AmSouth U.S. Treasury Fund................................... 25
--------
Total Investment Companies 3,848
--------
Total (Cost--$96,931) (a) $147,571
========
</TABLE>
- --------
Percentages indicated are based on net assets of $147,607.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation......................................... $56,978
Unrealized depreciation......................................... (6,338)
-------
Net unrealized appreciation..................................... $50,640
=======
(b) Represents non-income producing securities.
See notes to financial statements.
-37-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (97.1%):
Apparel (0.8%):
600 Phillips-Van Heusen Corp. ............................... $ 7,238
--------
Automotive (3.0%):
550 Ford Motor Co. ........................................... 28,050
--------
Automotive Parts (1.4%):
392 Arvin Industries, Inc. ................................... 13,524
--------
Banking (2.6%):
150 J.P. Morgan & Co., Inc. .................................. 15,178
160 NationsBank Corp. ........................................ 9,600
--------
24,778
--------
Chemicals-Speciality (1.7%):
950 Engelhard Corp. .......................................... 15,913
--------
Computers & Peripherals (1.6%):
156 International Business Machines Corp. .................... 15,395
--------
Consumer Goods (1.9%):
410 American Greetings Corp., Class A......................... 17,758
--------
Containers (2.1%):
750 Rubbermaid, Inc. ......................................... 19,406
--------
Electrical & Electronic (3.0%):
525 AMP, Inc. ................................................ 21,000
128 Avnet, Inc. .............................................. 7,778
--------
28,778
--------
Entertainment (1.1%):
450 Circus Circus Enterprises, Inc. (b)....................... 10,350
--------
Financial Services (6.1%):
151 American Express Co. ..................................... 12,637
660 Dun & Bradstreet Corp..................................... 21,038
370 Washington Mutual, Inc. .................................. 23,772
--------
57,447
--------
Food Processing & Packaging (4.2%):
490 Diageo PLC, ADR........................................... 17,854
360 Sara Lee Corp. ........................................... 19,643
60 Universal Foods Corp. .................................... 2,550
--------
40,047
--------
Forest & Paper Products (2.5%):
460 Weyerhauser Co. .......................................... 22,914
30 Willamette Industries Inc. ............................... 1,005
--------
23,919
--------
Health Care (3.3%):
225 Aetna, Inc. .............................................. 16,537
290 United Healthcare Corp. .................................. 14,863
--------
31,400
--------
Insurance-Broker (1.9%):
240 Marsh & McLennan Cos., Inc. .............................. 17,730
--------
Insurance--Property, Casualty, Health & Other (2.8%):
300 St. Paul Cos., Inc. ...................................... 26,100
--------
Manufacturing (0.5%):
104 Kennametal, Inc. ......................................... 5,106
--------
Medical Supplies (3.7%):
525 Bard (C.R.), Inc. ........................................ 16,275
335 Baxter International, Inc. ............................... 18,655
--------
34,930
--------
Metals & Mining (0.2%):
120 Barrick Gold Corp. ....................................... 2,325
--------
Newspapers (3.5%):
230 Dow Jones & Co., Inc. .................................... 11,558
360 Gannett Co., Inc. ........................................ 21,780
--------
33,338
--------
Oil & Gas Exploration, Production, & Services (8.8%):
275 Burlington Resources, Inc. ............................... 11,756
670 Sun Co., Inc. ............................................ 25,962
392 Texaco, Inc. ............................................. 20,409
110 Ultramar Diamond Shamrock Corp. .......................... 3,664
630 USX--Marathon Group....................................... 21,144
--------
82,935
--------
Oilfield Equipment & Services (1.5%):
250 Dresser Industries, Inc. ................................. 8,938
150 McDermott International, Inc. ............................ 4,781
--------
13,719
--------
</TABLE>
Continued
-38-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals (4.2%):
170 American Home Products Corp. ............................. $ 16,224
610 Pharmacia & Upjohn, Inc. ................................. 23,447
--------
39,671
--------
Pollution Control Services & Equipment (1.3%):
510 Waste Management, Inc. ................................... 11,985
--------
Railroads (1.8%):
320 CSX Corp. ................................................ 16,960
--------
Retail (15.0%):
360 CVS Corp. ................................................ 23,603
345 Dayton Hudson Corp. ...................................... 24,818
540 Dillard's, Inc., Class A.................................. 18,968
555 Gap, Inc. ................................................ 21,680
400 May Department Stores Co. ................................ 21,025
120 The Limited, Inc. ........................................ 3,180
700 Wal-Mart Stores, Inc. .................................... 27,911
--------
141,185
--------
Services (Non-Financial) (0.9%):
415 Reynolds & Reynolds Co., Class A.......................... 8,248
--------
Temporary Services (1.0%):
640 Olsten Corp. ............................................. 9,440
--------
Transportation Leasing & Trucking (2.4%):
435 Ryder System, Inc. ....................................... 14,573
243 USFreightways Corp. ...................................... 8,505
--------
23,078
--------
Transportation--Marine (0.3%):
120 Kirby Corp. (b)........................................... 2,505
--------
Utilities--Electric & Gas (3.2%):
515 Baltimore Gas & Electric Co. ............................. 15,644
590 Southern Co. ............................................. 14,344
--------
29,988
--------
Utilities--Telecommunications (8.8%):
400 AT&T Corp. ............................................... 25,049
197 Bell Atlantic Corp. ...................................... 18,199
356 BellSouth Corp. .......................................... 21,560
315 Sprint Corp. ............................................. 18,703
--------
83,511
--------
Total Common Stocks 916,757
--------
INVESTMENT COMPANIES (2.8%):
17,953 AmSouth Prime Obligations Fund............................ 17,953
8,313 AmSouth U.S. Treasury Fund................................ 8,313
--------
Total Investment Companies 26,266
--------
Total (Cost--$618,426) (a) $943,023
========
</TABLE>
- --------
Percentages indicated are based on net assets of $943,971.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation......................................... $335,709
Unrealized depreciation......................................... (11,112)
--------
Net unrealized appreciation..................................... $324,597
========
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-39-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (68.4%):
Automotive (2.1%):
13 Ford Motor Co. ............................................ $ 663
-------
Banking (9.3%):
16 Banc One Corp. ............................................ 911
7 Bankers' Trust New York ................................... 715
6 J.P. Morgan & Co., Inc. ................................... 640
12 Wilmington Trust Corp. .................................... 701
-------
2,967
-------
Chemicals--Speciality (2.4%):
13 PPG Industries, Inc. ...................................... 763
-------
Computers & Peripherals (2.1%):
8 Adaptec, Inc (b)........................................... 179
8 Hewlett-Packard Co. ....................................... 498
-------
677
-------
Diversified Manufacturing (1.6%):
7 General Electric Co. ...................................... 527
-------
Electrical & Electronic (3.6%):
14 AMP, Inc. ................................................. 548
10 Motorola, Inc. ............................................ 612
-------
1,160
-------
Electrical Equipment (2.9%):
12 Emerson Electric Co. ...................................... 729
8 Kent Electronics Corp. (b)................................. 191
-------
920
-------
Engineering & Construction (2.0%):
17 Fluor Corp. ............................................... 627
-------
Food Distributors & Wholesalers (1.9%):
14 Sysco Corp. ............................................... 618
-------
Food Processing & Packaging (3.2%):
6 General Mills, Inc. ....................................... 469
10 H.J. Heinz Co. ............................................ 549
-------
1,018
-------
Health Care (1.7%):
8 Johnson & Johnson.......................................... 542
-------
Household Goods--Appliances, Furnishings (2.0%):
26 Tupperware Corp. .......................................... 657
-------
Medical Supplies (2.6%):
15 Baxter International, Inc. ................................ 830
-------
Office Equipment & Services (1.9%):
13 Pitney Bowes, Inc. ........................................ 606
-------
Oil--Integrated (3.9%):
8 Amoco Corp. ............................................... 659
10 Exxon Corp. ............................................... 587
-------
1,246
-------
Pharmaceuticals (7.6%):
8 American Home Products Corp. .............................. 735
7 Merck & Co., Inc. ......................................... 832
23 Pharmacia & Upjohn, Inc. .................................. 874
-------
2,441
-------
Railroads (1.2%):
13 Norfolk Southern Corp. .................................... 398
-------
Restaurants (2.0%):
14 McDonald's Corp. .......................................... 646
-------
Retail (5.1%):
12 J.C. Penney Co., Inc. ..................................... 788
19 Sears & Roebuck Co. ....................................... 859
-------
1,647
-------
Steel (1.8%):
24 Allegheny Teledyne, Inc. .................................. 581
-------
Tire & Rubber (1.4%):
11 B.F. Goodrich, Inc. ....................................... 440
-------
Tobacco & Tobacco Products (2.4%):
19 Philip Morris Cos., Inc. .................................. 768
-------
Utilities--Electric & Gas (1.9%):
17 Pacific Enterprises........................................ 606
-------
Utilities--Telecommunications (1.8%):
12 U.S. West Communications Group............................. 565
-------
Total Common Stocks 21,913
-------
</TABLE>
Continued
-40-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -------
<C> <S> <C>
CONVERTIBLE BONDS (6.3%):
Computers & Peripherals (0.9%):
$365 Adaptec, Inc., 4.75%, 2/1/04.............................. $ 302
-------
Electrical Equipment (1.0%):
375 Kent Electronics Corp., 4.5%, 9/1/04...................... 317
-------
Manufacturing (1.9%):
600 Xilinx, Inc., 5.25%, 11/1/02.............................. 596
-------
Oilfield Equipment & Services (2.5%):
315 Diamond Offshore Drilling, Inc., 3.75%, 2/15/07, Callable
2/22/01 @ 102.08......................................... 391
400 Parker Drilling Corp., 5.50%, 8/1/04, Callable 8/1/00 @
103.14................................................... 424
-------
815
-------
Total Convertible Bonds 2,030
-------
CONVERTIBLE PREFERRED STOCKS (24.5%):
Banking (4.8%):
23 National Australia Bank, Callable 3/19/07 @ $25........... 658
8 Jefferson Pilot/ NationsBank*............................. 868
-------
1526
-------
Building Materials (1.5%):
19 Decs Trust II/Royal Group Technology...................... 476
-------
Computer Software (3.7%):
13 Microsoft Corp., Series A................................. 1,176
-------
Fertilizers (1.2%):
11 Merrill Lynch & Co., Inc./ IMC Global (STRYPES)**......... 396
-------
Financial Services (2.0%):
13 SunAmerica, Inc. ......................................... 633
-------
Food Processing & Packaging (4.2%):
17 Dole Food (TRACES)........................................ 729
9 Ralston Purina Group/
Interstate
Bakeries (b)............................................. 623
-------
1,352
-------
Gas Distribution (1.5%):
15 MCN Energy Group,
Inc.(PRIDES)............................................. 469
-------
Newspapers (1.9%):
52 Hollinger International,
Inc., Callable
8/1/99 @ $9.99........................................... 658
-------
Oil Refining & Marketing (1.7%):
8 Tosco-Preference (c)...................................... 464
1 Tosco Financing Trust..................................... 66
-------
530
-------
Telecommunications (2.0%):
10 Salomon, Inc. (Cincinnati Bell)........................... 650
-------
Total Convertible Preferred Stocks 7,866
-------
INVESTMENT COMPANIES (0.4%):
137 AmSouth Prime Obligations
Fund..................................................... 137
-------
Total Investment Companies 137
-------
Total (Cost--$30,114) (a) $31,946
=======
</TABLE>
Continued
-41-
<PAGE>
AMSOUTH MUTUAL FUNDS
EQUITY INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
- --------
Percentages indicated are based on net assets of $32,063.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation........................................... $2,459
Unrealized depreciation........................................... (627)
------
Net unrealized appreciation....................................... $1,832
======
(b) Represents non-income producing securities.
(c) Section 144A security which is restricted as to resale to institutional
investors.
*At maturity, convertible to shares of NationsBank common stock.
**At maturity, convertible to shares of IMC Global, Inc common stock.
STRYPES--Structured Yield Product Exchangeable for Stock
TRACES--Trust Automatic Common Exchange Securities
PRIDES--Preferred Redeemable Increased Dividend Equity Securities
See notes to financial statements.
-42-
<PAGE>
AMSOUTH MUTUAL FUNDS
CAPITAL GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS (98.9%):
Apparel (1.4%):
3 Jones Apparel Group, Inc.(b) ..................................$ 113
------
Banking (14.6%):
2 Comerica, Inc. ............................................. 208
2 Commerce Bancshares, Inc. .................................. 133
3 First American Corp.-Tenn .................................. 130
8 Hibernia Corp. ............................................. 158
2 Keycorp .................................................... 130
3 MBNA Corp. ................................................. 98
3 Northern Trust Corp. ....................................... 168
4 Southtrust Corp. ........................................... 198
------
1,223
------
Beverages (3.7%):
5 Coca Cola Enterprises, Inc. ................................ 147
4 PepsiCo, Inc. .............................................. 158
------
305
------
Computer Software (9.3%):
4 Computer Associates International,
Inc. ...................................................... 212
4 HBO & Co. .................................................. 194
1 Microsoft Corp.(b) ......................................... 164
6 Peoplesoft, Inc.(b) ........................................ 210
------
780
------
Computers & Peripherals (7.5%):
11 Apple Computer, Inc.(b) .................................... 209
7 Compaq Computer Corp. ...................................... 211
4 Sun Microsystems, Inc.(b) .................................. 201
------
621
------
Construction (1.4%):
2 Centex Corp. ............................................... 113
------
Consumer Goods (2.4%):
7 Premark International, Inc. ................................ 196
------
Diversified Manufacturing (6.5%):
4 Crane Co. .................................................. 173
2 General Electric Co. ....................................... 178
4 Tyco International Ltd. .................................... 186
------
537
------
Electrical & Electronic (0.7%):
1 Phillips N.V. .............................................. 60
------
Electronic Components-Semiconductors (3.0%):
3 Applied Materials, Inc.(b) ................................. 111
1 Rockwell International Corp. ............................... 39
5 VLSI Technology, Inc.(b) ................................... 100
------
250
------
Financial Services (2.7%):
3 American Express Co. ....................................... 226
------
Food Processing & Packaging (1.3%):
2 H.J. Heinz Co. ............................................. 111
------
Food Products & Services (2.3%):
4 Campbell Soup Co. .......................................... 187
------
Household Goods-Appliances, Furnishings, Etc. (1.6%):
3 Sunbeam Oster, Inc. ........................................ 129
------
Insurance (8.1%):
2 Allstate Corp. ............................................. 195
2 American International Group, Inc. ......................... 177
5 Conseco, Inc ............................................... 205
2 Torchmark Corp. ............................................ 96
------
673
------
Oil & Gas Exploration, Production, & Services (2.6%):
2 Coastal Corp. .............................................. 99
3 Sun Co., Inc. .............................................. 116
------
215
------
Pharmaceuticals (6.1%):
2 Bristol-Myers Squibb Co. ................................... 150
3 Eli Lilly & Co. ............................................ 176
3 Schering-Plough Corp. ...................................... 180
------
506
------
Retail (8.3%):
7 CompUSA, Inc.(b) ........................................... 201
2 Dayton Hudson Corp. ........................................ 129
6 General Nutrition Companies(b) ............................. 209
4 TJX Companies, Inc. ........................................ 146
------
685
------
</TABLE>
Continued
-43-
<PAGE>
AMSOUTH MUTUAL FUNDS
CAPITAL GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Soaps & Cleaning Agents (6.4%):
3 Clorox Corp. ............................................... $ 199
1 Colgate-Palmolive, Inc. .................................... 95
3 Procter & Gamble Co. ....................................... 236
------
530
------
Telecommunications-Equipment (5.7%):
2 Lucent Technologies, Inc. .................................. 186
17 Paging Network, Inc.(b) .................................... 217
1 Tellabs, Inc.(b) ........................................... 72
------
475
------
Tobacco & Tobacco Products (1.0%):
2 Philip Morris Cos., Inc. ................................... $ 87
------
Utilities-Telecommunications (2.3%):
3 AT&T Corp. ................................................. 188
------
Total Common Stocks 8,210
------
Total (Cost--$7,958) (a) $8,210
======
</TABLE>
- --------
Percentages indicated are based on net assets of $8,301.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation ......................................... $ 579
Unrealized depreciation ......................................... (327)
------
Net unrealized appreciation ..................................... $ 252
======
(b) Represents non-income producing securities.
See notes to financial statements
-44-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (52.3%):
Apparel (0.5%):
140 Phillips-Van Heusen Corp. ................................ $ 1,689
--------
Automotive (1.7%):
120 Ford Motor Co. ........................................... 6,120
--------
Automotive Parts (1.0%):
101 Arvin Industries, Inc. ................................... 3,485
--------
Banking (1.8%):
40 J.P. Morgan & Co., Inc. .................................. 4,048
40 NationsBank Corp. ........................................ 2,400
--------
6,448
--------
Chemicals-Speciality (0.9%):
205 Engelhard Corp. .......................................... 3,434
--------
Computers & Peripherals (0.5%):
20 International Business Machines Corp. .................... 1,974
--------
Consumer Goods (0.8%):
65 American Greetings Corp., Class A ........................ 2,815
--------
Containers (1.1%):
150 Rubbermaid, Inc. ......................................... 3,881
--------
Electrical & Electronic (1.9%):
120 AMP, Inc. ................................................ 4,800
32 Avnet, Inc. .............................................. 1,952
--------
6,752
--------
Entertainment (0.7%):
105 Circus Circus Enterprises, Inc.(b) ....................... 2,415
--------
Financial Services (3.1%):
35 American Express Co. ..................................... 2,929
110 Dun & Bradstreet Corp. ................................... 3,506
75 Washington Mutual, Inc. .................................. 4,819
--------
11,254
--------
Food Processing & Packaging (2.2%):
90 Diageo PLC, ADR .......................................... 3,279
70 Sara Lee Corp. ........................................... 3,820
18 Universal Foods Corp. .................................... 765
--------
7,864
--------
Forest & Paper Products (1.3%):
90 Weyerhauser Co. .......................................... 4,483
10 Willamette Industries, Inc. .............................. 335
--------
4,818
--------
Health Care (1.6%):
50 Aetna, Inc. .............................................. 3,675
43 United Healthcare Corp. .................................. 2,204
--------
5,879
--------
Insurance-Broker (0.8%):
40 Marsh & McLennan Cos., Inc. .............................. 2,955
--------
Insurance-Property, Casualty, Health & Other (1.3%):
55 St. Paul Cos., Inc. ...................................... 4,785
--------
Manufacturing (0.4%):
31 Kennametal, Inc. ......................................... 1,525
--------
Medical Supplies (2.2%):
75 Bard (C.R.), Inc. ........................................ 2,325
100 Baxter International, Inc. ............................... 5,569
--------
7,894
--------
Metals & Mining (0.2%):
40 Barrick Gold Corp. ....................................... 775
--------
Newspapers (1.9%):
30 Dow Jones & Co., Inc. .................................... 1,508
90 Gannett Co., Inc. ........................................ 5,445
--------
6,953
--------
Oil & Gas Exploration, Production, & Services (4.8%):
60 Burlington Resources, Inc. ............................... 2,565
105 Sun Co., Inc. ............................................ 4,069
80 Texaco, Inc. ............................................. 4,165
50 Ultramar Diamond Shamrock Corp. .......................... 1,666
150 USX--Marathon Group ...................................... 5,034
--------
17,499
--------
Oilfield Equipment & Services (0.8%):
75 Dresser Industries, Inc. ................................. 2,681
10 McDermott International, Inc. ............................ 319
--------
3,000
--------
</TABLE>
Continued
-45-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals (2.6%):
45 American Home Products Corp. ............................. $ 4,295
134 Pharmacia & Upjohn, Inc. ................................. 5,150
--------
9,445
--------
Pollution Control Services & Equipment (0.7%):
115 Waste Management, Inc. ................................... 2,703
--------
Railroads (0.7%):
50 CSX Corp. ................................................ 2,650
--------
Retail (7.5%):
70 CVS Corp. ................................................ 4,589
54 Dayton Hudson Corp. ...................................... 3,885
105 Dillard's, Inc., Class A ................................. 3,688
120 Gap, Inc. ................................................ 4,688
70 May Department Stores Co. ................................ 3,679
30 The Limited, Inc. ........................................ 795
150 Wal-Mart Stores, Inc. .................................... 5,980
--------
27,304
--------
Services (Non-Financial) (0.4%):
80 Reynolds & Reynolds Co., Class A ......................... 1,590
--------
Temporary Services (0.5%):
120 Olsten Corp. ............................................. 1,770
--------
Transportation Leasing & Trucking (1.3%):
85 Ryder System, Inc. ....................................... 2,848
55 USFreightways Corp. ...................................... 1,925
--------
4,773
--------
Transportation-Marine (0.2%):
30 Kirby Corp.(b) ........................................... 626
--------
Utilities-Electric & Gas (1.7%):
110 Baltimore Gas & Electric Co. ............................. 3,341
115 Southern Co. ............................................. 2,796
--------
6,137
--------
Utilities-Telecommunications (5.2%):
60 AT&T Corp. ............................................... 3,758
55 Bell Atlantic Corp. ...................................... 5,091
90 BellSouth Corp. .......................................... 5,449
80 Sprint Corp. ............................................. 4,750
--------
19,048
--------
Total Common Stocks 190,260
--------
CORPORATE BONDS (21.4%):
Appliances (0.1%):
$ 500 Whirlpool Corp., 9.50%, 6/15/00 .......................... $ 541
--------
Automotive (0.6%):
1,430 Ford Capital B.V., 9.13%, 5/1/98 (Guaranteed by Ford
Motor Co.) .............................................. 1,442
700 General Motors Corp., 9.63%, 12/1/00 ..................... 768
--------
2,210
--------
Banking (4.7%):
930 BankAmerica Corp., 9.50%, 4/1/01 ......................... 1,024
1,000 Bankers Trust Co., 9.50%, 6/14/00 ........................ 1,079
3,000 John Deere, 5.85%, 01/15/01 .............................. 3,008
2,500 Mellon Financial Co., 6.30%, 6/1/00 (Guaranteed By Mellon
Bank Corp.) ............................................. 2,531
4,185 NationsBank Corp., 5.38%, 4/15/00 ........................ 4,153
2,000 SunTrust Banks, Inc., 7.38%, 7/1/06 ...................... 2,143
1,565 Wachovia Corp., 5.40%, 02/20/01 .......................... 1,545
1,475 Wachovia Corp., 6.63%, 11/15/06 .......................... 1,512
--------
16,995
--------
Brokerage Services (3.4%):
3,000 Bear Stearns & Co., Inc., 6.50%, 8/1/02 .................. 3,049
4,000 Dean Witter Discover & Co., 6.00%, 3/1/98 ................ 4,000
2,000 Merrill Lynch & Co., Inc., 6.00%, 3/1/01 ................. 2,013
1,000 Morgan Stanley Group, Inc., 9.25%, 3/1/98 ................ 1,003
2,000 Morgan Stanley Group, Inc., 8.10%, 6/24/02 ............... 2,163
--------
12,228
--------
Entertainment (0.3%):
1,000 Columbia Pictures Entertainment, Inc., 9.88%, 2/1/98 ..... 1,000
--------
Financial Commercial (1.1%):
4,000 Associates Corp. N. A., 6.75%, 7/15/01 ................... 4,110
--------
Financial Services (0.9%):
1,200 British Telecom Finance, Inc., 9.38%, 2/15/99 (Guaranteed
by British Telecommunications PLC) ...................... 1,246
</TABLE>
Continued
-46-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, continued:
$ 1,000 Commercial Credit Co., 7.88%, 7/15/04 .................... $ 1,094
1,000 Ford Motor Credit Corp., 5.63%, 1/15/99 .................. 1,000
--------
3,340
--------
Food Products & Services (0.3%):
1,000 H.J. Heinz Co., 6.75%, 10/15/99 .......................... 1,016
--------
Forest & Paper Products (0.3%):
1,000 Mead Corp., 6.60%, 3/1/02 ................................ 1,020
--------
Industrial Goods & Services (4.1%):
500 Browning-Ferris Industries, Inc., 6.10%, 1/15/03 ......... 503
1,000 Dresser Industries, Inc., 6.25%, 6/1/00 .................. 1,014
3,000 First Data Corp., 6.75%, 7/15/05 ......................... 3,122
2,000 Gannett Co., Inc., 5.85%, 5/1/00 ......................... 2,008
2,000 Honeywell, Inc., 6.75%, 3/15/02 .......................... 2,055
3,000 Monsanto Co., 6.00%, 7/1/00 .............................. 3,023
1,000 Waste Management, Inc., 8.25%, 11/15/99 .................. 1,036
2,000 Waste Management, Inc., 7.70%, 10/1/02 ................... 2,128
--------
14,889
--------
Insurance (1.1%):
1,000 Allstate Corp., 5.88%, 6/15/98 ........................... 1,001
1,400 Capital Holding Corp., 9.20%, 4/17/01 .................... 1,533
279 Chubb Corp., 8.75%, 11/15/99 ............................. 293
1,200 Torchmark Corp., 9.63%, 5/1/98 ........................... 1,211
--------
4,038
--------
Oil & Gas Exploration, Production, & Services (0.5%):
1,550 BP America, Inc., 9.38%, 11/1/00 (Guaranteed by British
Petroleum PLC) ............................................. 1,693
--------
Pharmaceuticals (0.3%):
1,000 McKesson Corp., 8.63%, 2/1/98 ............................ 1,000
--------
Retail (1.1%):
2,000 J.C. Penney Co., Inc., 7.25%, 4/1/02 ..................... 2,080
2,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02 .................... 2,068
--------
4,148
--------
Telecommunications-Equipment (0.5%):
1,730 Lucent Technologies, Inc., 6.90%, 7/15/01 ................ 1,791
--------
Utilities-Electric & Gas (2.1%):
3,450 Duke Power Co., 7.00%, 6/1/00 ............................ 3,549
1,275 Georgia Power Co., 6.13%, 9/1/99 ......................... 1,281
2,000 Oklahoma Gas & Electric Co., 6.25%, 10/15/00 ............. 2,028
900 Pennsylvania Power & Light Co., 6.00%, 6/1/00 ............ 906
--------
7,764
--------
Total Corporate Bonds 77,783
--------
MUNICIPAL BONDS (1.1%):
Illinois (1.1%):
3,800 Chicago Building Taxable, 7.00%, 1/1/06 .................. 4,099
--------
Total Municipal Bonds 4,099
--------
U.S. GOVERNMENT AGENCIES (6.5%):
7,000 Federal Home Loan Mortgage Corp., 5.83%, 2/9/06 .......... 6,994
2,000 Federal Home Loan Mortgage Corp., 7.10%, 4/10/07 ......... 2,176
5,400 Federal National Mortgage Association, 5.50%, 2/2/01 ..... 5,388
5,000 Federal National Mortgage Association, 6.21, 11/7/07 ..... 5,129
4,000 Tennessee Valley Authority, 6.00%, 11/1/00 ............... 4,025
--------
Total U.S. Government Agencies 23,712
--------
U.S. TREASURY BONDS (12.6%):
6,300 5.75%, 8/15/03 ........................................... 6,388
7,000 5.88%, 11/15/05 .......................................... 7,141
6,000 7.50%, 11/15/16 .......................................... 7,107
10,000 7.25%, 8/15/22 ........................................... 11,732
12,900 6.25%, 8/15/23 ........................................... 13,501
--------
Total U.S. Treasury Bonds 45,869
--------
U.S. TREASURY STRIPS (2.4%):
12,000 2/15/04 .................................................. 8,643
--------
Total U.S. Treasury Strips 8,643
--------
</TABLE>
Continued
-47-
<PAGE>
AMSOUTH MUTUAL FUNDS
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (2.9%):
$10,693 AmSouth Prime Obligations Fund ........................... $ 10,693
1 AmSouth U.S. Treasury Fund ............................... 1
--------
Total Investment Companies 10,694
--------
Total (Cost--$282,003) (a) $361,060
========
</TABLE>
- --------
Percentages indicated are based on net assets of $363,931.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation ....................................... $81,502
Unrealized depreciation ....................................... (2,445)
-------
Net unrealized appreciation ................................... $79,057
=======
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-48-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (46.9%):
Aerospace/Defense (1.0%):
$ 3,000 Boeing Corp., 6.875%, 11/1/06............................. $ 3,176
--------
Appliances (0.2%):
500 Whirlpool Corp., 9.50%, 6/15/00........................... 541
--------
Automotive (1.6%):
4,070 Ford Capital B.V., 9.13%, 5/1/98 (Guaranteed by Ford Motor
Co.)....................................................... 4,104
908 General Motors Corp., 9.63%, 12/1/00...................... 997
--------
5,101
--------
Banking (7.4%):
3,032 Banc One Corp., 7.00%, 7/15/05............................ 3,149
1,150 BankAmerica Corp., 9.50%, 4/1/01.......................... 1,266
7,000 Bankers Trust Co., 9.50%, 6/14/00......................... 7,552
3,856 J.P. Morgan & Co., 7.63%, 9/15/04......................... 4,179
4,306 NationsBank Corp., 5.38%, 4/15/00......................... 4,274
2,259 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 2,420
--------
22,840
--------
Beverages (2.1%):
3,000 Coca-Cola Enterprises, Inc., 6.38%, 8/1/01................ 3,049
3,530 PepsiCo, Inc., 7.63%, 11/1/98............................. 3,571
--------
6,620
--------
Brokerage Services (2.7%):
2,500 Bear Stearns & Co., Inc., 6.63%, 10/1/04.................. 2,553
3,000 Dean Witter Discover & Co., 6.50%, 11/1/05................ 3,052
1,035 Merrill Lynch & Co., Inc., 9.00%, 5/1/98.................. 1,043
1,000 Merrill Lynch & Co., Inc., 6.38%, 3/30/99................. 1,008
750 Merrill Lynch & Co., Inc., 8.25%, 11/15/99................ 780
--------
8,436
--------
Entertainment (0.3%):
1,000 Columbia Pictures Entertainment, Inc., 9.88%, 2/1/98...... 1,000
--------
Financial Services (5.7%):
2,000 American Express Credit Corp., 6.50%, 8/1/00.............. 2,035
2,000 Associates Corp., 6.25%, 3/15/99.......................... 2,012
3,091 Avco Financial Service Corp., 5.50%, 4/1/00............... 3,082
2,000 Commercial Credit Co., 7.38%, 3/15/02..................... 2,108
3,000 Commercial Credit Co., 6.50%, 8/1/04...................... 3,041
1,100 Ford Motor Credit Co., 6.25%, 12/8/05..................... 1,101
1,000 Margaretten Financial Corp., 6.75%, 6/15/00............... 1,019
2,000 Norwest Financial, Inc., 6.63%, 7/15/04................... 2,068
--------
16,466
--------
Food Products & Services (0.6%):
2,000 Campbell Soup Co., 6.15%, 12/1/02......................... 2,025
--------
Forest & Paper Products (1.0%):
3,000 Mead Corp., 6.60%, 3/1/02................................. 3,060
--------
Industrial Goods & Services (6.5%):
2,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02............ 2,168
2,655 Browning-Ferris Industries, Inc., 6.10%, 1/15/03.......... 2,670
2,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02.............. 2,053
2,570 E. I. Dupont de Nemours & Co., 6.75%, 10/15/02............ 2,660
774 Exxon Capital Corp., 7.45%, 12/15/01...................... 820
2,000 First Data Corp., 6.75%, 7/15/05.......................... 2,083
1,475 Illinois Tool Works, Inc., 5.88%, 3/1/00.................. 1,481
1,456 Rockwell International Corp., 6.63%, 6/1/05............... 1,516
2,449 Waste Management, Inc., 6.38%, 12/1/03.................... 2,437
2,000 Waste Management, Inc., 7.00%, 5/15/05.................... 2,060
--------
19,948
--------
Insurance (2.5%):
1,000 AON Corp., 6.88%, 10/1/99................................. 1,017
1,600 Capital Holding Corp., 9.20%, 4/17/01..................... 1,752
660 Chubb Corp., 8.75%, 11/15/99.............................. 693
3,000 Hartford Life, Inc., 6.90%, 6/15/04....................... 3,112
1,300 Torchmark Corp., 9.63%, 5/1/98............................ 1,312
--------
7,886
--------
</TABLE>
Continued
-49-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Oil & Gas Exploration, Production, & Services (0.5%):
$ 1,464 BP America, Inc., 9.38%, 11/1/00 (Guaranteed by British
Petroleum PLC).......................................... $ 1,599
--------
Pharmaceuticals (0.3%):
1,000 McKesson Corp., 8.63%, 2/1/98............................ 1,000
--------
Railroads (1.1%):
2,395 Union Pacific Corp., 6.25%, 3/15/99...................... 2,407
1,000 Union Pacific Corp., 7.00%, 6/15/00...................... 1,024
--------
3,431
--------
Retail (1.6%):
1,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02.................... 1,034
4,000 Wal-Mart Stores, Inc., 5.65%, 2/1/10..................... 3,995
--------
5,029
--------
Utilities--Electric & Gas (5.5%):
1,310 British Telecom Finance, Inc., 9.38%, 2/15/99 (Guaranteed
by British Telecommunications PLC)...................... 1,361
2,000 Consolidated Edison Co. of New York, Inc., 6.63%, 2/1/02. 2,045
1,000 Northern States Power Co., 5.50%, 2/1/99................. 999
2,500 Northern States Power Co., 7.88%, 10/1/01................ 2,669
2,250 Oklahoma Gas & Electric Co., 6.25%, 10/15/00............. 2,281
500 Pacific Gas & Electric Co., 5.38%, 6/1/98................ 499
1,000 Southern California Edison Co., 5.60%, 12/15/98.......... 999
2,000 Tampa Electric Co., 6.13%, 5/1/03........................ 2,028
2,500 Virginia Electric & Power Co., 8.00%, 3/1/04............. 2,744
3,000 Wisconsin Electric Power, 6.625%, 11/15/96............... 3,115
--------
18,740
--------
Utilities--Telecommunications (6.3%):
3,000 BellSouth Telecommunications, Inc., 6.25%, 5/15/03....... 3,053
2,000 GTE California, Inc., 5.63%, 2/1/01...................... 1,985
2,295 GTE Northwest, Inc., Series A, 7.38%, 5/1/01............. 2,390
1,600 GTE Southwest, Inc., Series A, 5.82%, 12/1/99............ 1,600
500 Michigan Bell Telephone, 5.88%, 9/15/99.................. 502
2,000 Pacific Bell, 6.88%, 8/15/06............................. 2,098
2,000 Southern New England Telecommunications Corp.,
6.50%, 2/15/02.......................................... 2,040
2,000 Southwestern Bell Telephone, 6.63%, 4/1/05............... 2,058
4,000 US West Communications Group, 6.63%, 9/15/05............. 4,113
--------
19,839
--------
Total Corporate Bonds 146,737
--------
U.S. GOVERNMENT AGENCIES (10.1%):
2,000 Federal Home Loan Mortgage Corp., 7.10%, 4/10/07......... 2,176
3,000 Federal National Mortgage Assoc., 6.59%, 5/21/02......... 3,106
7,500 Federal National Mortgage Assoc., 7.05%, 11/12/02........ 7,930
1,500 Federal National Mortgage Assoc., 7.40%, 7/1/04.......... 1,628
13,700 Federal National Mortgage Assoc., 8.50%, 2/1/05.......... 14,428
2,300 Federal National Mortgage Assoc., 5.88%, 2/2/06.......... 2,305
--------
Total U.S. Government Agencies 31,573
--------
U.S. TREASURY BONDS (38.8%):
24,000 5.75%, 8/15/03........................................... 24,336
19,000 7.88%, 11/15/05.......................................... 19,384
8,000 6.50%, 10/15/06.......................................... 8,502
17,329 3.38%, 1/15/07**......................................... 16,944
18,000 7.50%, 11/15/16.......................................... 21,321
29,700 6.25%, 8/15/23........................................... 31,083
--------
Total U.S. Treasury Bonds 121,570
--------
U.S. TREASURY STRIPS (1.8%):
8,000 2/15/04.................................................. 5,762
--------
Total U.S. Treasury Strips 5,762
--------
</TABLE>
Continued
-50-
<PAGE>
AMSOUTH MUTUAL FUNDS
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MEDIUM TERM NOTES (0.0%):
$ 25 Associates Corp. N.A., 6.00%, 3/15/99..................... $ 25
--------
Total Medium Term Notes 25
--------
INVESTMENT COMPANIES (1.1%):
3,501 AmSouth Prime Obligations Fund............................ 3,501
--------
Total Investment Companies 3,501
--------
Total (Cost--$294,194) (a) $309,168
========
</TABLE>
- --------
Percentages indicated are based on net assets of $313,167.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation......................................... $15,484
Unrealized depreciation......................................... (510)
-------
Net unrealized appreciation..................................... $14,974
=======
**Inflation indexed bonds
PLC--Public Limited Co.
See notes to financial statements.
-51-
<PAGE>
AMSOUTH MUTUAL FUNDS
GOVERNMENT INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (85.0%):
Federal National Mortgage Assoc.:
$ 700 5.94%, 12/12/05............................................. $ 706
Government National Mortgage Assoc.
49 9.50%, 5/15/18, Pool #237970................................ 53
82 9.00%, 6/15/18, Pool #251674................................ 88
101 9.00%, 8/15/18, Pool #256195................................ 107
85 9.50%, 2/15/19, Pool #229511................................ 91
149 9.50%, 6/15/19, Pool #273497................................ 161
12 9.50%, 7/15/19, Pool #272490................................ 13
67 9.00%, 10/15/19, Pool #265423............................... 71
130 9.00%, 10/15/19, Pool #282314............................... 138
63 8.50%, 12/15/19, Pool #192962............................... 67
115 9.00%, 12/15/19, Pool #155126............................... 123
103 9.00%, 1/15/20, Pool #145478................................ 111
55 9.00%, 3/15/20, Pool #281980................................ 59
83 9.00%, 5/15/20, Pool #282467................................ 88
64 9.50%, 5/15/20, Pool #288952................................ 69
253 9.50%, 9/15/20, Pool #287187................................ 273
25 9.50%, 9/15/20, Pool #210730................................ 27
147 8.50%, 11/15/20, Pool #296517............................... 154
74 9.00%, 11/15/20, Pool #293865............................... 79
207 9.50%, 11/15/20, Pool #282659............................... 223
136 9.50%, 11/15/20, Pool #299157............................... 147
51 9.50%, 12/15/20, Pool #295078............................... 55
7 9.50%, 12/15/20, Pool #297517............................... 7
22 9.50%, 1/15/21, Pool #300061................................ 23
370 9.00%, 2/15/21, Pool #295094................................ 394
118 8.50%, 8/15/21, Pool #310287................................ 124
66 8.50%, 8/15/21, Pool #310782................................ 69
185 9.50%, 8/15/21, Pool #306082................................ 199
48 9.00%, 9/15/21, Pool #312960................................ 51
103 9.00%, 9/15/21, Pool #312637................................ 110
88 8.50%, 10/15/21, Pool #313828............................... 93
94 9.00%, 10/15/21, Pool #309619............................... 101
94 9.00%, 1/15/22, Pool #316246................................ 101
25 9.00%, 4/15/22, Pool #312880................................ 27
79 9.00%, 6/15/22, Pool #315171................................ 85
23 9.00%, 9/15/22, Pool #333385................................ 25
11 8.50%, 2/15/23, Pool #343166................................ 11
191 7.50%, 6/15/24, Pool #401000................................ 196
985 7.50%, 7/15/25, Pool #365408................................ 1,011
444 7.50%, 8/15/25, Pool #408478................................ 457
652 7.50%, 9/15/25, Pool #394478................................ 671
790 7.50%, 9/15/25, Pool #377615................................ 813
426 7.50%, 12/15/25, Pool #384943............................... 439
470 8.00%, 7/15/26, Pool #391645................................ 489
------
Total U.S. Government Agencies 8,399
------
U.S TREASURY SECURITIES (11.6%)
200 5.88%, 11/15/99............................................. 202
800 7.50%, 11/15/16............................................. 948
------
Total U.S. Treasury Bonds 1,150
------
INVESTMENT COMPANIES (3.8%):
377 AmSouth U.S. Treasury Fund.................................. 377
------
Total Investment Companies 377
------
Total (Cost--$9,667) (a) $9,926
======
</TABLE>
- --------
Percentages indicated are based on net assets of $9,885.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation........................................... $268
Unrealized depreciation........................................... (9)
----
Net unrealized appreciation....................................... $259
====
See notes to financial statements.
-52-
<PAGE>
AMSOUTH MUTUAL FUNDS
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (79.8%):
Automotive (3.1%):
$3,500 GMAC, 6.75%, 2/7/02....................................... $ 3,583
--------
Banking (8.5%):
3,000 Banc One Corp., 6.25%, 9/1/00............................. 3,033
1,500 Firstar Bank, 6.25%, 12/1/02.............................. 1,515
2,000 NationsBank Corp., 5.38%, 4/15/00......................... 1,985
2,500 NationsBank Corp., 5.70%, 9/11/00......................... 2,497
900 Wachovia Bank, 6.30%, 3/15/01............................. 911
--------
9,941
--------
Beverages (1.3%):
1,500 PepsiCo, Inc., 5.46%, 7/1/98.............................. 1,498
--------
Brokerage Services (3.1%):
2,500 Bear Stearns & Co., Inc., 6.50%, 6/15/00.................. 2,543
1,000 Bear Stearns & Co., Inc., 6.05%, 7/5/00................... 1,018
--------
3,561
--------
Farm Equipment (2.6%)
3,000 John Deere, 5.85%, 1/15/01................................ 3,008
--------
Financial Services (18.4%):
1,200 Associates Corp. of North America, 7.50%, 5/15/99......... 1,225
3,000 Associates Corp. of North America, 7.25%, 9/1/99.......... 3,063
500 Beneficial Corp., 7.32%, 11/17/99......................... 511
1,000 Commercial Credit Co., 8.26%, 11/1/01..................... 1,080
2,000 Dean Witter Discover & Co., 6.26%, 3/15/00................ 2,023
1,500 Ford Motor Credit Co., 6.00%, 3/24/98..................... 1,501
4,000 Ford Motor Credit Co., 8.20%, 2/15/02..................... 4,315
2,500 General Electric Capital Corp., 6.15%, 11/5/01............ 2,528
5,000 Household Finance Co., 8.95%, 9/15/99..................... 5,230
--------
21,476
--------
Food Products & Services (3.4%):
1,000 Campbell Soup Co., 6.15%, 12/1/02......................... 1,013
2,850 Diageo PLC, 6.50%, 9/15/99................................ 2,882
--------
3,895
--------
Forest & Paper Products (0.9%):
1,000 Mead Corp., 6.60%, 3/1/02................................. 1,020
--------
Industrial Goods & Services (7.2%):
2,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02............ 2,168
2,200 Amoco Co., 6.25%, 10/15/04................................ 2,241
3,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02.............. 3,079
850 Honeywell, Inc., 6.75%, 3/15/02........................... 873
--------
8,361
--------
Insurance (10.2%):
2,000 American General Corp., 7.70%, 10/15/99................... 2,063
1,500 AON Corp., 6.88%, 10/1/99................................. 1,526
2,000 CIT Group Holdings, 6.38%, 10/1/02........................ 2,023
2,000 Hartford Financial Services Group, Inc., 8.20%, 10/15/98.. 2,034
1,000 St. Paul Cos., Inc., Series A, 6.17%, 1/15/01............. 1,009
1,000 Travelers, Inc., 6.13%, 6/15/00........................... 1,010
2,200 USLife Corp., 6.38%, 6/15/00.............................. 2,207
--------
11,872
--------
Leasing (1.8%):
2,000 USL Capital Corp., 8.13%, 2/15/00......................... 2,093
--------
Office Equipment & Services (1.2%):
1,274 Xerox Corp., 8.13%, 4/15/02............................... 1,378
--------
Pharmaceuticals (1.8%):
2,000 McKesson Corp., 6.88%, 3/1/02............................. 2,070
--------
Retail (3.0%):
3,500 Wal-Mart Stores, Inc., 5.65%, 2/1/10...................... 3,496
--------
Telecommunications--Equipment (0.9%):
1,000 Lucent Technologies, Inc., 6.90%, 7/15/01................. 1,035
--------
Utilities--Electric & Gas (9.8%):
600 Baltimore Gas & Electric Co., 5.50%, 7/15/00.............. 598
1,500 British Gas Finance, 8.75%, 3/15/98 (Guaranteed by
British Gas PLC)......................................... 1,506
3,000 Florida Power Corp., 6.50%, 12/1/99....................... 3,036
1,500 Georgia Power Co., 6.13%, 9/1/99.......................... 1,508
</TABLE>
Continued
-53-
<PAGE>
AMSOUTH MUTUAL FUNDS
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities-Electric & Gas, continued:
$1,770 Northern Illinois Gas Co., 5.88%, 5/1/00, Callable 5/1/98
@ 100................................................... $1,768
3,000 SCANA Corp., 5.76%, 7/1/98............................... 3,004
--------
11,420
--------
Utilities-Telecommunications (2.6%):
3,000 Ameritech Capital Funding, 6.13%, 10/15/01............... 3,034
--------
Total Corporate Bonds 92,741
--------
U.S. GOVERNMENT AGENCIES (1.7%):
1,000 Federal Home Loan Mortgage Corp., 5.75%, 11/16/98,
Continuously callable @ 100............................. 1,001
1,000 Federal Home Loan Mortgage Corp., 5.90%, 4/21/00,
Continuously callable @ 100............................. 1,000
--------
Total U.S. Government Agencies 2,001
--------
U.S. TREASURY BONDS (8.2%):
$9,200 6.38%, 8/15/02............................................ $ 9,547
--------
Total U.S. Treasury Bonds 9,547
--------
U.S. TREASURY NOTES (7.9%):
9,000 5.88%, 2/15/04............................................ 9,216
--------
Total U.S. Treasury Notes 9,216
--------
INVESTMENT COMPANIES (0.8%):
914 AmSouth Prime Obligations Fund............................ 915
--------
Total Investment Companies 915
--------
Total (Cost--$111,778) (a) $114,420
========
</TABLE>
- --------
Percentages indicated are based on net assets of $116,249.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation........................................ $2,698
Unrealized depreciation........................................ (56)
------
Net unrealized appreciation.................................... $2,642
======
PLC--Public Limited Co.
See notes to financial statements.
-54-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS (94.5%):
$ 545 Altamonte Springs, Health Facilities Authority, Hospital
Revenue, ETM, 5.60%, 10/1/10.............................. $ 604
1,000 Broward County Expressway Authority, Series A, GO, 6.50%,
7/1/04, Callable 3/11/98 @ 101............................ 1,011
1,500 Broward County School District, GO, 5.60%, 2/15/07,
Callable 2/15/03 @ 102.................................... 1,610
1,000 Clearwater, Water & Sewer Revenue, 4.75%, 12/1/00, AMBAC... 1,024
1,000 Dade County School District, GO, 6.00%, 7/15/06,........... 1,119
1,000 Dade County, Aviation Authority, Series 1994 B, 6.25%,
10/1/04, AMBAC............................................ 1,120
1,000 Dade County, Water & Sewer System Revenue, 4.70%, 10/1/04,
FGIC...................................................... 1,029
1,000 Division of Bond Finance, Department of Natural Resources,
Save Our Coast, 6.30%, 7/1/04,
Callable 7/1/01 @ 101, MBIA............................... 1,078
1,000 Hillsborough County, Capital Improvements, County Center
Project, Series B, 5.00%, 7/1/13,
Callable 7/1/06 @ 102, MBIA............................... 1,013
750 Hillsborough County, Environmental Land, 6.00%, 7/1/03 *,
Callable 7/1/02 @ 102, AMBAC-TCRS......................... 820
1,000 Hillsborough County, Solid Waste & Resource Recovery
Revenue, 5.30%, 10/1/03, MBIA............................. 1,062
1,000 Homestead, Special Insurance Assessment Revenue, 4.90%,
9/1/00, MBIA.............................................. 1,027
515 Florida State Board of Education, GO, 7.25%, 6/1/23........ 563
2,000 Florida State Board of Education, GO, Series B, 5.375%,
6/1/08, Callable 6/1/07 @ 101............................. 2,155
3,310 Florida State Department of Transportation, GO, Right of
Way, Series B, 5.50%, 7/1/08, Callable, 7/1/07 @ 101...... 3,622
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....... 1,060
805 Florida State Housing Finance Agency, Homeowner Mortgages,
Series 1995 A-1, 5.65%, 1/1/09,
Callable 1/1/06 @ 102..................................... 837
1,000 Florida State Turnpike Authority, Turnpike Revenue, Series
A, 5.50%, 7/1/11, Callable 7/1/05 @ 101, FGIC............. 1,061
1,250 Ft. Lauderdale, Park Improvement Project, GO, 5.50%,
7/1/17, Callable 1/1/04 @ 101............................. 1,282
1,000 Jacksonville Electric Authority, Water & Sewer-Ser B,
5.00%, 10/1/03............................................ 1,047
1,000 Jacksonville, District Water & Sewer Revenue, ETM, 5.20%,
10/1/02, MBIA............................................. 1,052
1,000 Jacksonville, Electric Authority, St. John's River Issue 2-
15, 4.75%, 10/1/07, Callable 4/1/06 @ 101................. 1,031
1,010 Jacksonville, Excise Tax Revenue, Series A, 5.50%, 10/1/05,
FGIC...................................................... 1,094
890 Jacksonville Transportation Authority, Senior Lien, GO,
6.25%, 7/1/06............................................. 1,016
1,500 Kissimmee Utility Authority Electic Sys Rev, 4.50%,
10/1/05................................................... 1,527
1,000 Lee County, Capital Improvements Revenue, Series B, 4.75%,
10/1/00, MBIA............................................. 1,023
1,000 Lee County, Local Option Gas Tax Revenue, 4.50%, 10/1/01,
MBIA...................................................... 1,018
500 Manatee County School Board, Certificates of Participation,
7/1/09, Callable 7/1/06 @ 102, MBIA....................... 559
1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08, Callable
9/1/05 @ 102, FSA......................................... 1,074
1,000 Orange County, Sales Tax Revenue, Series A, 4.38%, 1/1/01,
FGIC...................................................... 1,012
1,000 Orlando & Orange County Expressway Authority, Expressway
Revenue, Senior Lien, 4.80%, 7/1/01, AMBAC................ 1,026
1,500 Orlando Utilities Commission, Water & Electric Revenue,
Series B, 5.10%, 10/1/11, Callable 10/1/06 @ 100.......... 1,544
1,500 Orlando, Wastewater System Revenue, Series B, 4.90%,
10/1/06, Callable 10/1/03 @ 102, AMBAC.................... 1,558
1,000 Ormond Beach, Water & Sewer Revenue, 5.60%, 9/1/99, FGIC... 1,029
1,000 Pasco County, Water & Sewer Revenue, Series A, 5.50%,
10/1/03, Callable 10/1/02 @ 102, FGIC..................... 1,072
1,000 Pembroke Pines, Public Improvement, 4.63%, 10/1/00, AMBAC.. 1,020
1,000 Polk County, Capital Improvement, 4.30%, 12/1/02, FGIC..... 1,012
1,000 Port of Palm Beach, Revenue Bonds, 6.25%, 9/1/08, Callable
9/1/02 @ 102, MBIA........................................ 1,103
1,000 Reedy Creek, Improvement District, Series C, 4.90%, 6/1/08,
Callable 12/1/05 @ 101, AMBAC............................. 1,035
</TABLE>
Continued
-55-
<PAGE>
AMSOUTH MUTUAL FUNDS
FLORIDA TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -------
<C> <S> <C>
FLORIDA MUNICIPAL BONDS, CONTINUED:
$1,000 Seminole County, Local Option Gas Tax Revenue, 5.00%,
10/1/02, FGIC............................................ $ 1,041
1,000 St. Johns River Management District, Land Acquisition,
5.10%, 7/1/09, Callable 7/1/05 @ 100, FSA................ 1,037
1,000 Sunshine Skyway Revenue, 6.60%, 7/1/08 *, Callable 7/1/01
@ 101.................................................... 1,083
1,000 Tallahassee, Consolidated Utility System Revenue, 5.80%,
10/1/08, Callable 10/1/03 @ 102.......................... 1,087
1,000 Tampa Sports Authority, Local Option Sales Tax Revenue,
Stadium Project, 6.00%, 1/1/06, MBIA..................... 1,115
750 Tampa Water & Sewer Revenue, 5.25%, 10/1/12, Callable
10/1/05 @ 102, FGIC...................................... 781
1,000 Tampa-Hillsborough County, Expressway, 5.00%, 7/1/10,
Callable 7/1/07 @ 101.................................... 1,035
1,000 Volusia County School District, GO, 5.30%, 6/1/01, FSA.... 1,041
-------
53,169
-------
Total Florida Municipal Bonds 53,169
-------
INVESTMENT COMPANIES (1.6%):
89 AmSouth Tax Exempt Fund................................... 89
833 Dreyfus Florida Money Market Fund......................... 833
-------
Total Investment Companies 922
-------
Total (Cost--$51,763) (a) $54,091
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $56,276.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation......... $2,361
Unrealized depreciation......... (33)
------
Net unrealized appreciation..... $2,328
======
*Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly, monthly,
or semiannually.
AMBAC--Insured by AMBAC Indemnity Corp.
ETM--Escrowed to Maturity
FGIC--Insured by Financial Guaranty Insurance Corp.
FSA--Insured by Financial Security Assurance
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
TCRS--Transferrable Custodial Receipts
See notes to financial statements.
-56-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (98.5%):
Alabama (56.0%):
$1,000 Alabama State Industrial Access Road & Bridge Corp.,
Capital Improvements, Series A, 4.40%, 6/1/02............. $ 1,009
1,520 Alabama State Industrial Access Road & Bridge Corp.,
Capital Improvements, Series A, 4.60%, 6/1/03............. 1,547
3,700 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.75%, 1/1/05, AMBAC................... 3,810
3,880 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.85%, 1/1/06, AMBAC................... 4,022
2,640 Alabama State Mental Health Finance Authority, Special Tax,
4.88%, 5/1/03, MBIA....................................... 2,739
3,000 Alabama State Municipal Electric Authority, Power Supply
Revenue, Series A, 5.75%, 9/1/01, MBIA.................... 3,161
7,000 Alabama State Public School & College Authority, 4.50%,
12/1/01................................................... 7,128
7,350 Alabama State Public School & College Authority, 4.75%,
12/1/03, Callable 6/1/03 @ 103............................ 7,603
3,340 Alabama State Public School & College Authority, 5.00%,
12/1/05, Callable 6/1/03 @ 103............................ 3,505
5,000 Alabama State Public School & College Authority, Capital
Improvement, 4.75%, 11/1/06, Callable 11/1/05 @ 101....... 5,170
2,445 Alabama State Water Pollution Control Authority, Revolving
Fund, Series A, 4.60%, 8/15/02, AMBAC..................... 2,500
1,760 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.25%, 8/15/08,
Callable 8/15/06 @ 100, AMBAC............................. 1,855
1,350 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.38%, 8/15/10,
Callable 8/15/06 @ 100, AMBAC............................. 1,423
2,495 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.40%, 8/15/11,
Callable 8/15/06 @ 100, AMBAC............................. 2,619
5,000 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.50%, 8/15/16,
Callable 8/15/06 @100..................................... 5,197
1,000 Auburn University, University Revenues, General Fee, 5.25%,
6/1/06, Callable 6/1/03 @ 102, MBIA....................... 1,058
1,040 Birmingham Capital Improvement, Series B, 4.80%, 10/1/08,
Callable 4/1/07 @ 102..................................... 1,071
500 Birmingham Medical Clinic Board, Baptist Medical Centers,
ETM, 8.30%, 7/1/08, Callable 1/1/98 @ 100................. 608
1,375 Birmingham Waterworks & Sewer Board, Water & Sewer Revenue,
5.90%, 1/1/03, Callable 1/1/02 @ 102...................... 1,486
1,500 Birmingham, GO, 4.90%, 7/1/06.............................. 1,563
3,465 Birmingham, Industrial Water Board, Industrial Water
Supply, 6.20%, 7/1/08, Pre-refunded 1/1/07 @ 100.......... 3,761
1,100 Birmingham, Industrial Water Board, Industrial Water
Supply, ETM, 5.30%, 3/1/04, Callable 3/1/03 @ 102......... 1,166
1,000 Birmingham, Industrial Water Board, Industrial Water
Supply, ETM, 5.40%, 3/1/05, Callable 3/1/03 @ 102......... 1,070
1,300 Birmingham, Industrial Water Board, Industrial Water
Supply, 5.50%, 3/1/06, Pre-refunded 3/1/05 @ 100.......... 1,398
1,045 Clark & Mobile County, Gas District, 5.60%, 12/1/17,
Callable 12/1/06 @ 102, MBIA.............................. 1,101
1,100 Daphne Utility Board, Water & Gas, Natural Gas
Improvements, Series A, 7.35%, 6/1/20..................... 1,205
9,500 Daphne, Special Care Facilities Financing Authority,
Presbyterian Retirement Corp., 7.30%, 8/15/18,
Pre-refunded 8/15/01 @ 100................................ 10,480
655 Decatur, Warrants, Series E, Limited GO, 4.85%, 8/1/03,
Callable 8/1/02 @ 102..................................... 679
685 Decatur, Warrants, Series E, Limited GO, 5.00%, 8/1/04,
Callable 8/1/02 @ 102..................................... 716
720 Decatur, Warrants, Series E, Limited GO, 5.10%, 8/1/05,
Callable 8/1/02 @ 102..................................... 752
760 Decatur, Warrants, Series E, Limited GO, 5.20%, 8/1/06,
Callable 8/1/02 @ 102..................................... 796
750 Decatur, Warrants, Series E, Limited GO, 5.25%, 8/1/08,
Callable 8/1/02 @ 102..................................... 781
750 Decatur, Warrants, Series E, Limited GO, 5.30%, 8/1/09,
Callable 8/1/02 @ 102..................................... 781
2,845 Florence, Warrants, Series A, GO, 4.65%, 9/1/03, MBIA...... 2,927
1,020 Florence, Warrants, Series B, GO, 4.45%, 9/1/02, AMBAC..... 1,038
1,065 Florence, Warrants, Series B, GO, 4.55%, 9/1/03, AMBAC..... 1,090
</TABLE>
Continued
-57-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Alabama, continued:
$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.... $ 5,381
5,000 Hoover, Warrants, 4.50%, 3/1/13, Pre Refunded 3/1/03 @
100..................................................... 4,830
9,455 Hoover, Warrants, Series B, GO, 8.00%, 3/1/20, Pre-
refunded 3/1/00 @ 102, AMBAC............................ 10,404
1,000 Houston County, Warrants, Series A, Limited GO, 5.00%,
7/1/02.................................................. 1,038
6,545 Huntsville, Warrants, Series A, GO, 4.50%, 2/1/02........ 6,655
2,780 Huntsville, Water System, Warrants, 5.00%, 5/1/02, AMBAC. 2,881
3,125 Huntsville, Water System, Warrants, 5.05%, 5/1/03,
Callable 5/1/02 @ 102, AMBAC............................ 3,262
1,000 Jefferson County Board of Education, Capital Outlay,
5.40%, 2/15/10, Callable 2/15/03 @ 102, AMBAC........... 1,049
4,000 Jefferson County, GO, 5.30%, 4/1/09, Pre Refunded 4/1/03
@ 102................................................... 4,167
2,400 Jefferson County, Sewer Revenue Warrants, 5.40%, 9/1/04,
Pre-refunded 3/1/03 @ 102.5, MBIA....................... 2,597
5,000 Jefferson County, Warrants, GO, 5.00%, 4/1/04, Callable
4/1/03 @ 102............................................ 5,196
2,670 Mobile County Board of School Commissioners, Warrants,
Capital Outlay, 4.80%, 3/1/02, AMBAC.................... 2,745
1,350 Mobile County, Series A, GO, 5.00%, 2/1/04, Callable
2/1/03 @ 102............................................ 1,408
1,000 Mobile County, Warrants, GO, 6.35%, 2/1/04, Pre-refunded
2/1/00 @ 102............................................ 1,066
1,850 Mobile County, Warrants, GO, 6.55%, 2/1/06, Pre-refunded
2/1/00 @ 102............................................ 1,979
1,000 Mobile County, Warrants, Series A, Limited GO, 5.00%,
2/1/04, Callable 2/1/03 @ 102........................... 1,043
5,000 Mobile County, Warrants, Series A, Limited GO, 5.10%,
2/1/05, Callable 2/1/03 @ 102........................... 5,246
1,685 Mobile, Warrants, GO, 6.50%, 2/15/06, AMBAC.............. 1,934
2,500 Mobile, Warrants, GO, Convention Center Project, 7.13%,
8/15/20, Pre-refunded 8/15/00 @ 102, AMBAC.............. 2,740
3,250 Mobile, Water & Sewer Commissioners, Water & Sewer
Revenue, 5.00%, 1/1/05, FGIC............................ 3,391
1,500 Montgomery County, Warrants, GO, 5.00%, 11/1/04, Callable
11/1/04 @ 102........................................... 1,570
1,040 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/05,
Callable 5/1/03 @ 102................................... 1,086
1,000 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/06,
Callable 5/1/03 @ 102................................... 1,041
3,000 Montgomery, Waterworks & Sanitary Sewer Board, 5.50%,
9/1/08, Callable 9/1/06 @ 101, MBIA..................... 3,236
1,410 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
5.60%, 3/1/01........................................... 1,472
1,000 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
5.70%, 9/1/02........................................... 1,065
2,500 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.25%, 9/1/08, Callable 9/1/02 @ 102.................... 2,737
3,565 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.30%, 9/1/10, Callable 9/1/02 @ 102.................... 3,894
1,510 Shelby County, Warrants, Series A, 5.60%, 2/1/02, AMBAC.. 1,597
1,990 Shelby County, Warrants, Series A, 5.60%, 8/1/02, AMBAC.. 2,118
1,830 Shelby County, Warrants, Series A, 5.70%, 2/1/03, AMBAC.. 1,964
335 Talladega County, Industrial Development Board, Cyprus 1
Project, 9.75%, 12/1/13, Callable 8/30/97 @ 101.5....... 339
600 Tuscaloosa County, Warrants, GO, 5.50%, 10/1/03.......... 643
740 Tuscaloosa County, Warrants, GO, 5.60%, 10/1/04.......... 801
1,200 University of Alabama General Fee, 4.60%, 6/1/09,
Callable 6/1/07 @ 102................................... 1,214
1,300 University of Alabama General Fee, 4.70%, 6/1/10,
Callable 6/1/07 @ 102................................... 1,313
1,500 University of Alabama General Fee, 4.75%, 6/1/11,
Callable 6/1/07 @ 102................................... 1,506
2,185 University of South Alabama, University Revenues,
Tuition, 4.70%, 11/15/08, Callable 5/15/06 @ 102, AMBAC. 2,230
--------
187,653
--------
</TABLE>
Continued
-58-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Florida (3.2%):
$6,500 Florida State Board of Education, Capital Outlay, Series
A, GO, 5.00%, 6/1/08.................................... $ 6,843
3,625 Florida State Board of Education, Capital Outlay, Series
A, GO, 5.00%, 6/1/09.................................... 3,817
--------
10,660
--------
Georgia (2.2%):
4,390 Cobb County, Detention Buildings & Facilities, GO, 5.30%,
1/1/07, Callable 1/1/03 @ 102........................... 4,661
2,500 Georgia State Tollway Authority, Georgia 400 Project,
6.50%, 7/1/04, Callable 7/1/01 @ 102, State Guaranteed.. 2,728
--------
7,389
--------
Maryland (1.7%):
3,000 Anne Arundel County, GO, 4.70%, 4/1/04................... 3,092
2,500 Montgomery County, Consolidated Public Improvements,
Series A, GO, 5.50%, 10/1/04............................ 2,702
--------
5,794
--------
Massachusetts (0.4%):
1,150 Massachusetts State Consolidated Loan, Series C, GO,
6.75%, 8/1/06, Pre-refunded 8/1/01 @ 102................ 1,273
--------
Minnesota (0.7%):
2,175 Centennial Independent School District, No. 12, Series A,
GO, 5.60%, 2/1/07, MBIA................................. 2,381
--------
Mississippi (0.6%):
2,000 Mississippi State, Capital Improvements, GO, 5.2%,
8/1/11, Callable 8/1/03 @100............................ 2,053
--------
Missouri (2.4%):
7,535 Missouri State, State Water Pollution, Series B, GO,
5.00%, 8/1/07, Callable 8/1/03 @ 102.................... 7,910
--------
New Jersey (1.6%):
5,000 New Jersey State, Series E, GO, 5.00%, 7/15/04........... 5,244
--------
New York (1.1%):
1,150 Hempstead Town, GO, 5.00%, 2/15/09, Callable 2/15/06 @
102..................................................... 1,199
1,440 Municipal Assistance Corp For New York City, GO, Series
M, 4.00%, 7/1/03........................................ 1,432
1,000 Municipal Assistance Corp For New York City, GO, Series
M, 4.20%, 7/1/06........................................ 993
--------
3,624
--------
North Carolina (4.4%):
9,875 North Carolina State, Capital Improvements, Series A, GO,
4.70%, 2/1/06, Callable 2/1/04 @ 101.................... 10,233
4,250 Wake County, GO, 4.90%, 3/1/08, Callable 3/1/07 @ 100.5.. 4,448
--------
14,681
--------
South Carolina (1.3%):
4,325 Beaufort County, School District, GO, Series B, 4.90%,
3/1/09, Callable 3/1/05 @ 101........................... 4,453
--------
</TABLE>
Continued
-59-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee (4.2%):
$2,000 Jackson, Improvements, 5.00%, 3/1/10, Pre-refunded 3/1/05
@102.................................................... $ 2,059
3,000 Metropolitan Government, Nashville & Davidson County, GO,
5.25%, 5/15/06.......................................... 3,210
3,000 Tennessee State, Series B, GO, 6.40%, 6/1/02, Pre-
refunded 6/1/01 @ 101.5................................. 3,264
5,495 Tennessee State, Series B, GO, 4.60%, 5/1/07, Callable
5/1/06 @ 100............................................ 5,623
--------
14,156
--------
Texas (6.0%):
1,845 Dallas Independent School District, GO, 5.60%, 8/15/05,
Callable 8/15/03 @ 100.................................. 1,965
4,000 Mesquite Independent School District, Series A, 4.70%,
8/15/08, Callable 8/15/07 @ 100......................... 4,071
5,000 Texas State, Series B, GO, 5.25%, 10/1/08, Callable
10/1/03 @ 100........................................... 5,193
3,575 University of Texas, 4.60%, 7/1/08, Callable 7/1/06 @
100..................................................... 3,630
5,455 University of Texas, Series B, 4.25%, 8/15/09, Callable
8/15/07 @ 100........................................... 5,366
--------
20,225
--------
Utah (3.1%):
3,810 Jordan School District, GO, 4.80%, 6/15/08, Callable
6/15/07 @ 100........................................... 3,938
6,000 Utah State, GO, Series F, 5.50%, 7/1/07.................. 6,577
--------
10,515
--------
Virginia (5.9%):
3,200 Chesapeake, Public Improvements, GO, 5.00%, 5/1/04....... 3,346
5,165 Fairfax County, Public Improvements, Series A, GO, 4.75%,
6/1/04.................................................. 5,345
2,000 Virginia College Building Authority, Series A, 5.00%,
9/1/12, Callable 9/1/07................................. 2,033
5,000 Virginia State, GO, 5.00%, 6/1/08, Callable 6/1/07 @ 100. 5,255
3,500 Virginia State, Public School Authority, Series S, 5.25%,
8/1/09.................................................. 3,756
--------
19,735
--------
Washington (2.2%):
6,500 Washington State, GO, 5.75%, 9/1/08...................... 7,230
--------
Wisconsin (1.5%):
4,650 Wisconsin State, Series 1, GO, 5.30%, 11/1/03............ 4,940
--------
Total Municipal Bonds 329,916
--------
INVESTMENT COMPANIES (2.6%):
199 Federated Tax Free Fund.................................. 199
8,503 Goldman Sachs Tax Free Fund.............................. 8,503
--------
Total Investment Companies 8,702
--------
Total (Cost $323,811) (a) $338,618
========
</TABLE>
Continued
-60-
<PAGE>
AMSOUTH MUTUAL FUNDS
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
- --------
Percentages indicated are based on net assets of $334,997.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation................... $14,894
Unrealized depreciation................... (87)
-------
Net unrealized appreciation................ $14,807
=======
AMBAC--Insured by AMBAC Indemnity 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.
-61-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (1.6%):
Banking (1.6%):
$ 10,000 Bankers Trust New York, 5.92%, 07/17/98.................. $ 9,999
--------
Total Certificates of Deposit 9,999
--------
COMMERCIAL PAPER--DOMESTIC (61.9%):
Aircraft Leasing (4.0%):
10,000 International Lease Finance, 5.42%, 4/2/98............... 9,909
5,000 International Lease Finance, 5.40%, 5/15/98.............. 4,923
10,000 International Lease Finance, 5.36%, 6/12/98.............. 9,805
--------
24,637
--------
Asset Backed (1.1%):
6,927 Greenwich Funding, 5.95%, 2/11/98........................ 6,916
--------
Automotive (9.8%):
10,000 Daimler-Benz North America Corp., 5.53%, 2/4/98.......... 9,996
5,000 Daimler-Benz North America Corp., 5.60%, 3/18/98......... 4,965
5,000 Daimler-Benz North America Corp., 5.65%, 3/24/98......... 4,960
10,000 Daimler-Benz North America Corp., 5.57%, 4/21/98......... 9,878
10,000 Ford Motor Credit Co., 5.46%, 2/13/98.................... 9,982
5,000 Ford Motor Credit Co., 5.43%, 4/2/98..................... 4,955
5,000 Ford Motor Credit Co., 5.40%, 4/28/98.................... 4,936
10,000 Ford Motor Credit Co., 5.32%, 10/5/98.................... 9,636
--------
59,308
--------
Banking (3.2%):
10,000 Suntrust Bank Co., 5.65%, 2/25/98........................ 9,962
10,000 Suntrust Bank Co., 5.42%, 4/7/98......................... 9,902
--------
19,864
--------
Electric Utility (4.8%):
10,000 AES Shady Point, Inc., 5.61%, 2/10/98.................... 9,986
10,000 Alabama Power Co., 5.38%, 4/14/98........................ 9,892
10,000 Alabama Power Co., 5.42%, 4/17/98........................ 9,887
--------
29,765
--------
Financial Services (7.4%):
8,000 Cooperative Assoc. of Tractor Dealers, 5.52%, 4/3/98..... 7,925
8,000 Cooperative Assoc. of Tractor Dealers, 5.40%, 7/24/98.... 7,792
10,000 Elf Aquitaine Finance, 5.55%, 4/1/98..................... 9,910
5,000 General Electric Capital Corp., 5.41%, 5/21/98........... 4,918
5,000 Island Finance Puerto Rico, 5.42%, 4/20/98............... 4,941
10,000 Peacock Funding, 5.63%, 4/8/98........................... 9,897
--------
45,383
--------
Food Processing (3.2%):
10,000 Cargill, Inc., 5.73%, 2/27/98............................ 9,959
5,000 Cargill, Inc., 5.67% 3/12/98............................. 4,969
5,000 Cargill, Inc., 5.66%, 3/16/98............................ 4,966
--------
19,894
--------
Food Products & Services (1.6%):
10,000 McCormick & Co., 5.43%, 2/18/98.......................... 9,974
--------
Hotels & Lodging (3.2%):
10,000 Accor, SA, 5.77%, 2/19/98................................ 9,971
10,000 Accor, SA, 5.46%, 3/17/98................................ 9,933
--------
19,904
--------
Insurance (8.1%):
5,000 International Nederlandan Holdings, 5.65%, 2/12/98....... 4,991
10,000 International Nederlanden Holdings, 5.65%, 2/17/98....... 9,976
5,000 International Nederlanden Holdings, 5.66%, 3/12/98....... 4,969
5,000 USAA Capital Corp., 5.70%, 2/2/98........................ 4,999
10,000 USAA Capital Corp., 5.46%, 3/6/98........................ 9,950
10,000 USAA Capital Corp., 5.42%, 3/16/98....................... 9,935
5,000 USAA Capital Corp., 5.51%, 4/6/98........................ 4,951
--------
49,771
--------
Pharmaceuticals (0.8%):
5,000 Glaxo-Wellcome, 5.67%, 2/20/98........................... 4,985
--------
Retail (1.5%):
9,000 Southland Corp., 5.75%, 2/9/98........................... 8,989
--------
</TABLE>
Continued
-62-
<PAGE>
AMSOUTH MUTUAL FUNDS
PRIME OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER--DOMESTIC, CONTINUED:
Security Brokers & Dealers (4.9%):
$ 5,000 Merrill Lynch & Co., Inc., 5.56%, 2/6/98................. $ 4,996
5,000 Merrill Lynch & Co., Inc., 5.56%, 2/11/98................ 4,992
5,000 Merrill Lynch & Co., Inc., 5.57%, 3/11/97................ 4,971
5,000 Merrill Lynch & Co., Inc., 5.40%, 3/26/98................ 4,960
5,000 Merrill Lynch & Co., Inc., 5.44%, 4/9/98................. 4,949
5,000 Merrill Lynch & Co., Inc., 5.35%, 4/14/98................ 4,947
--------
29,815
--------
Telecommunications (8.3%):
10,000 Bellsouth Telecom, Inc., 5.70%, 2/5/98................... 9,994
11,020 Bellsouth Telecom, Inc., 5.70%, 2/12/98.................. 11,001
7,000 Bellsouth Telecom, Inc., 5.43%, 2/24/98.................. 6,976
5,000 Lucent Technologies, Inc, 5.42%, 2/3/98.................. 4,998
7,392 MCI Communications Corp., 5.55%, 2/6/98.................. 7,386
10,000 MCI Communications Corp., 5.52%, 2/23/98................. 9,966
--------
50,321
--------
Total Commercial Paper--Domestic 379,526
--------
COMMERCIAL PAPER--FOREIGN (11.2%):
Australia (1.6%):
10,000 Queensland Treasury, 5.61%, 6/17/98...................... 9,788
--------
Brazil (1.6%):
10,000 Petroleo Brasileiro, Sa, 5.72%, 3/30/98.................. 9,909
--------
Canada (6.4%):
10,000 Canadian Wheat Board, 5.40%, 5/11/98..................... 9,852
10,000 Canadian Wheat Board, 5.32%, 7/13/98..................... 9,761
10,000 Province of Quebec, 5.60%, 6/9/98........................ 9,801
10,000 Toronto Dominion Holdings, 5.55%, 3/5/98................. 9,950
--------
39,364
--------
United Kingdom (1.6%):
10,000 Abbey National, NA, 5.55%, 3/3/98........................ 9,954
--------
Total Commercial Paper--Foreign 69,015
--------
CORPORATE BONDS (2.4%):
Financial Services (1.1%):
1,500 General Electric Capital
Corp., 7.95%, 2/2/98.................................... 1,500
5,000 IBM Credit Corp, 5.65%,
9/15/98................................................. 4,998
--------
6,498
--------
Security Brokers & Dealers (0.8%):
5,000 Credit Suisse, 6.15%,
6/2/98.................................................. 5,005
--------
Utilities--Telecommunications (0.5%):
3,349 Bellsouth Telecom, Inc., 5.25%, 6/8/98................... 3,341
--------
Total Corporate Bonds 14,844
--------
FLOATING RATE FUNDING AGREEMENTS
(6.0%):
12,500 Commonwealth Life
Insurance Co., 5.83%*, 2/1/98(b)........................ 12,500
12,000 General American Life
Insurance Co., 6.14%*, 2/1/98(b)........................ 12,000
12,500 Peoples Security Life
Insurance Co., 5.78%*, 2/1/98(b)........................ 12,500
--------
Total Floating Rate Funding Agreements 37,000
--------
REPURCHASE AGREEMENTS (17.2%):
105,832 First Boston Corp., 5.60%, 2/2/98
(Collateralized by $103,185 U.S.
Government Agency Securities,
6.12%-7.27%, 8/25/00-7/27/26,
market value--$109,006)................................. 105,832
--------
Total Repurchase Agreements 105,832
--------
Total (Cost $616,216) (a) $616,216
========
</TABLE>
- --------
Percentages indicated are based on net assets of $614,104.
(a) Cost and value for federal income tax and financial
reporting purposes are the same.
(b) 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 semiannually.
*Variable rate security. Rate presented represents rate in effect at January 31,
1998. Date presented reflects next rate change date.
See notes to financial statements.
-63-
<PAGE>
AMSOUTH MUTUAL FUNDS
U.S. TREASURY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY BILLS (38.0%):
$ 5,000 5.09%, 2/5/98............................................ $ 4,997
16,000 5.14%, 2/5/98............................................ 15,991
5,000 5.05%, 2/12/98........................................... 4,992
10,000 5.21%, 2/12/98........................................... 9,984
5,000 4.98%, 2/26/98........................................... 4,983
10,000 5.04%, 3/5/98............................................ 9,955
5,000 5.08%, 3/5/98............................................ 4,978
6,000 5.06%, 3/12/98........................................... 5,967
10,000 5.00%, 3/19/98........................................... 9,936
10,000 5.12%, 3/26/98........................................... 9,925
5,000 5.06%, 4/2/98............................................ 4,958
5,000 4.98%, 5/7/98............................................ 4,934
5,000 6.13%, 5/15/98........................................... 5,011
5,000 4.99%, 5/28/98........................................... 4,920
5,000 5.08%, 6/4/98............................................ 4,913
10,000 5.22%, 6/25/98........................................... 9,791
5,000 5.19%, 8/20/98........................................... 4,856
--------
Total U.S. Treasury Bills 121,091
--------
U.S. TREASURY NOTES (28.6%):
11,000 7.25%, 2/15/98........................................... 11,007
12,000 8.13%, 2/15/98........................................... 12,012
6,000 5.13%, 2/28/98........................................... 5,999
5,000 5.13%, 2/28/98........................................... 4,999
5,000 5.13%, 3/31/98........................................... 4,998
6,000 5.13%, 4/30/98........................................... 5,994
10,000 5.88%, 4/30/98........................................... 10,010
5,000 5.38%, 5/31/98........................................... 4,996
10,000 6.00%, 5/31/98........................................... 10,013
5,000 5.98%, 6/1/98............................................ 5,007
6,000 6.25%, 6/30/98........................................... 6,024
10,000 6.25%, 7/31/98........................................... 10,047
--------
Total U.S. Treasury Notes 91,106
--------
REPURCHASE AGREEMENTS (33.2%):
53,026 First Boston Corp., 5.54%, 2/2/98
(Collateralized by $52,865
U.S. Treasury Securities,
6.25%-6.38%, 3/31/99-4/30/99,
market value--$54,465).................................. 53,026
53,026 Merrill Lynch & Co., 5.54%, 2/2/98
(Collateralized by $46,165
U.S. Treasury Securities,
6.25%-10.75%, 5/15/03-2/15/07,
market value--$54,089).................................. 53,026
--------
Total Repurchase Agreements 106,052
--------
Total (Cost $318,249) (a) $318,249
========
</TABLE>
- --------
Percentages indicated are based on net assets of $318,956.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
-64-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
SHARES OR VALUE OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
TAX ANTICIPATION NOTES (7.6%):
California (2.6%):
$ 400 California State, 4.50%, 6/30/98........................ $ 401
1,000 Los Angeles County, Tax & Revenue Anticipation Notes,
GO, 4.50%, 6/30/98..................................... 1,002
1,000 Los Angeles County, Tax & Revenue Anticipation Notes,
GO, Series A, 4.50%, 6/30/98, LOC:
Credit Suisse, NY & Morgan Guaranty.................... 1,003
-------
2,406
-------
Colorado (1.7%):
1,500 Colorado General Fund, Tax & Revenue Anticipation Notes,
Series A, 4.50%, 6/26/98............................... 1,504
-------
Illinois (1.1%):
1,000 Metropolitan Pier & Exposition Authority, 5.00%, 6/1/98,
AMBAC.................................................. 1,004
-------
New York (1.1%):
1,000 New York City, Revenue Anticipation Notes, GO, Series A,
4.50%, 6/30/98, LOC: Morgan Guaranty................... 1,003
-------
Texas (1.1%):
1,000 Texas State, Tax & Revenue Anticipation Notes, GO,
Series A, 4.75%, 8/31/98............................... 1,007
-------
Total Tax Anticipation Notes 6,924
-------
DEMAND NOTES (56.8%):
Alabama (18.5%):
2,000 Alabama State Housing Finance Authority, Multi Family
Housing Revenue, Rime VLG Hoover Project,
Series A, 3.60%*, 2/4/98**, FNMA....................... 2,000
2,000 Bon Air, Industrial Development Board, Avondale Mills,
3.60%*, 2/4/98**, LOC: Trust Co. Bank.................. 2,000
2,000 City of Birmingham, Alabama, Series 1992A, GO, 3.60%*,
2/4/98**, LOC: Regions Bank............................ 2,000
2,700 Columbia, Industrial Development Board, PCR, Alabama
Power Co. Project , Series D, 3.70%*, 2/1/98**......... 2,700
1,000 Jacksonville, Industrial Development Board, Parker
Hannifin Corp., 3.45%*, 2/4/98**....................... 1,000
2,000 Mobile, Industrial Development Board, PCR, Alabama Power
Co. Project, Series B, 3.55%*, 2/4/98**................ 2,000
505 Montgomery, Industrial Development Board, Industrial
Partners Project, 3.70%*, 2/4/98**, LOC: Wachovia Bank. 505
2,700 North Alabama, Environmental Improvement Authority, PCR,
Reynolds Metals Co., 3.70%*, 2/1/98**, LOC: Bank of
Nova Scotia............................................ 2,700
1,865 Stevenson, Industrial Development Board, Environmental
Improvement Revenue, Mead Corp. Project,
3.70%*, 2/1/98**, LOC: Credit Suisse................... 1,865
-------
16,770
-------
California (2.6%):
1,000 Los Angeles, Regional Airports Improvements Corp.,
American Airlines--Los Angeles International--A, 3.70*,
2/1/98**, LOC: Wachovia Bank........................... 1,000
1,400 Los Angeles, Regional Airports Improvements Corp., Los
Angeles International--LAX 2, 3.70*, 2/1/98**, LOC:
Societe Generale....................................... 1,400
-------
2,400
-------
</TABLE>
Continued
-65-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
SHARES OR VALUE OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
DEMAND NOTES, CONTINUED:
Florida (1.9%):
$1,680 Laurel Club, Certificates of Participation, Series 96A,
3.70%*, 2/4/98**, LOC: Swiss Bank Corp................. $ 1,680
-------
Georgia (1.9%):
1,000 Cobb County, Post Mill Project, 3.60%*, 2/4/98**........ 1,000
750 Savannah, Downtown Development Authority, Parking
Facilities Project, 3.55%*, 2/4/98**, SPA: National
Westminster Bank PLC................................... 750
-------
1,750
-------
Illinois (2.5%):
1,100 Chicago, O'Hare International Airport, General Airport
2nd Lein, Series A, 3.55%*, 2/4/98**,
LOC: Societe Generale, NY.............................. 1,100
1,200 Illinois Health Authority, Decatur Memorial Hospital,
Project A, 3.60%*, 2/4/98**............................ 1,200
-------
2,300
-------
Minnesota (3.9%):
1,000 Minneapolis, GO, Sewer Improvements, Series A, 3.45%*,
2/1/98**, LOC: Bayerische Vereinsbank.................. 1,000
2,500 Minneapolis, GO, Sewer Improvements, Series B, 3.45%*,
2/4/98**............................................... 2,500
-------
3,500
-------
Missouri (6.4%):
900 Kansas City, Industrial Development Authority, Hospital
Revenue, Resh Health Services System, 3.65%*, 2/1/98**,
MBIA, SPA: Bank of America............................. 900
2,000 St. Charles County, Industrial Development Authority,
Sun River Village Apartments Project, 3.50%*, 2/4/98**,
LOC: Bank of America................................... 2,000
2,900 State of Missouri, Health & Education Authority, SSM
Health Care Projects, Series C, 3.55%*, 2/4/98**, MBIA. 2,900
-------
5,800
-------
Nebraska (1.9%):
1,700 Nebraska Educational Facilities Authority, Educational
Equipment & Improvements, 3.80%*, 2/4/98**, FGIC, SPA:
Mitsubishi Bank, NY.................................... 1,700
-------
New York (1.8%):
1,600 New York City, GO, Sub Series E5, 3.65%*, 2/1/98**, LOC:
Morgan Guaranty........................................ 1,600
-------
Ohio (0.4%):
400 Hamilton County, Health Care System, West Park Issue,
3.60%*, 4/2/98**, LOC: Fifth Third Bank................ 400
-------
Oregon (1.7%):
1,500 Port of Portland, Reynolds Metals, 3.70*, 2/1/98**, LOC:
Bank of Nova Scotia.................................... 1,500
-------
Pennsylvania (1.3%):
1,200 Schuylkill County, Industrial Development Authority,
Resource Recovery Revenue, Gilberton Power Project,
3.60%*, 2/4/98**, LOC: Mellon Bank..................... 1,200
-------
</TABLE>
Continued
-66-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
SHARES OR VALUE OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
DEMAND NOTES, CONTINUED:
South Carolina (1.7%):
$1,500 South Carolina State Jobs & Economic Development
Revenue, St. Francis Hospital, 3.70%*, 2/1/98**,
LOC: Chase Manhattan Bank.............................. $ 1,500
-------
Tennessee (3.1%):
1,000 Metropolitan Nashville Airport Authority, Special
Facilities Revenue, American Airlines PJ--Series A,
3.70%*, 2/1/98**, LOC: Union Bank of Switzerland....... 1,000
1,800 Sullivan County, Industrial Develop Board , PCR, Mead
Corp. Project, 3.70%*, 2/1/98**,
LOC: Union Bank of Switzerland......................... 1,800
-------
2,800
-------
Texas (3.5%):
1,100 Grapevine Industrial Development Corp., American
Airlines-A2, 3.70%*, 2/1/98**, LOC: Morgan Guaranty.... 1,100
1,100 Grapevine Industrial Development Corp., American
Airlines-B4, 3.70%*, 2/1/98**, LOC: Morgan Guaranty.... 1,100
1,000 Lone Star Airport Improvement Authority, Series B4,
3.70%*, 2/1/98**, LOC: Royal Bank of Canada............ 1,000
-------
3,200
-------
Washington (2.9%):
600 Seattle Municipal Light & Power, 3.55%*, 2/4/98**....... 600
2,000 Washington State, GO, Series VR 96A, 3.55%*, 2/4/98**... 2,000
-------
2,600
-------
West Virginia (0.8%):
700 Putnam County, Industrial Development Revenue, FMC
Corp., 3.85%*, 2/1/98**, LOC: Union Bank of
Switzerland............................................ 700
-------
Total Demand Notes 51,400
-------
TAX FREE COMMERCIAL PAPER (2.2%):
Alabama (1.1%):
1,000 Port City Medical Clinic Board of Mobile, 3.55%, 5/6/98. 1,000
-------
Texas (1.1%):
1,000 Lone Star Airport Improvement Authority, Series B2,
3.70%*, 2/2/98**, LOC: Royal Bank of Canada............ 1,000
-------
Total Tax Free Commercial Paper 2,000
-------
MUNICIPAL BONDS (28.6%):
Alabama (1.7%):
1,500 Alabama Housing Finance Authority, Huntsville, Series B,
3.60%*, 2/1/98**, FNMA................................. 1,500
-------
Arizona (0.2%):
200 Maricopa County, School District, GO, 5.40%, 7/1/98..... 201
-------
California (1.6%):
400 Northern California Power Agency, Geothermal Project No.
3, Series B, 5.00%, 7/1/98, AMBAC...................... 402
1,000 Riverside, GO, Series A, 4.50%, 6/30/98................. 1,003
-------
1,405
-------
</TABLE>
Continued
-67-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
SHARES OR VALUE OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Connecticut (0.1%):
$ 120 Hartford Metropolitan District, GO, Water Utility
Improvements, 6.00%, 8/1/98............................ $ 121
-------
Florida (0.3%):
295 Hernando County, Water and Sewer Revenue, 5.10%, 6/1/98,
FGIC................................................... 296
-------
Georgia (2.6%):
1,000 Georgia State, GO, School Improvements, Series F, 6.50%,
12/1/98................................................ 1,024
1,300 Spalding County, Sales Tax, GO, 4.15%, 7/1/98, FSA...... 1,302
-------
2,326
-------
Hawaii (1.6%):
1,000 Hawaii State, Dept. Budget & Finance, Special Purpose
Mortgage, Queens Medical Center Project, 6.90%, 7/1/04,
Pre-refunded 7/1/98 @ 102, FGIC........................ 1,032
400 Hawaii State, GO, Series BN, 7.10%, 6/1/09, Pre-refunded
6/1/98 @ 101.5......................................... 410
-------
1,442
-------
Illinois (2.2%):
2,000 Illinois State, GO, 5.25%, 7/1/98, FGIC................. 2,014
-------
Indiana (0.6%):
500 Upland Indiana Economic Development, Taylor University
Project, 7.75%, 9/1/09, Pre-refunded 9/01/98 @ 102,
FSA.................................................... 521
-------
Kansas (1.1%):
1,000 Olathe, Temporary Notes, Series A, 4.50%, 6/1/98........ 1,002
-------
Louisiana (1.1%):
1,000 Louisiana State, Recovery District, Sales Tax Revenue,
ETM, 4.25%, 7/1/98, MBIA............................... 1,002
-------
Maryland (1.1%):
1,000 Baltimore County, GO, 6.90%, 9/1/99, Pre-refunded 9/1/98
@ 102.................................................. 1,037
-------
Minnesota (0.8%):
755 Minnesota State Housing Finance Authority, Rental
Housing, Series C2, 4.20%, 8/1/98...................... 756
-------
New York (1.8%):
640 New York City, GO, Capital Appreciation, Series I, Zero
Coupon, 8/1/98, FSA.................................... 628
1,000 New York City, GO, Sub Series E2, 3.65%*, 2/1/98**, LOC:
Morgan Guaranty........................................ 1,000
-------
1,628
-------
North Carolina (1.3%):
1,200 North Carolina State, Correctional Facility
Improvements, Series A, 5.75%, 3/1/98.................. 1,202
-------
Pennsylvania (2.2%):
2,000 Pittsburgh, GO, Series A, 5.00%, 3/1/98, MBIA........... 2,002
-------
South Carolina (0.7%):
125 Greenville County, School District, GO, 6.50%, 2/2/98... 125
500 Greenville, Hospital System, Hospital Facilities
Revenue, 7.80%, 5/1/15, Pre-refunded 5/1/98 @ 102,
FGIC................................................... 514
-------
639
-------
</TABLE>
Continued
-68-
<PAGE>
AMSOUTH MUTUAL FUNDS
TAX-EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
January 31, 1998
(Amounts in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
SHARES OR VALUE OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee (1.4%):
$ 200 Fayette County, GO, 6.00%, 4/1/98, AMBAC................ $ 201
1,000 Shelby County, Health Educational & Hospital, Lebonheur
Childrens Medical Center, 7.60%, 8/15/19, Pre-refunded
8/15/98 @ 102.......................................... 1,039
-------
1,240
-------
Texas (4.6%):
450 Austin, Public Property, GO, 7.00%, 5/1/98.............. 453
1,000 Dallas, GO, 5.20%, 2/15/98.............................. 1,001
635 Houston Independent School District, GO, 7.00%, 8/15/98. 646
1,000 San Antonio, Electric & Gas Revenue, 10.50%, 2/1/13,
Pre-refunded 2/1/98 @ 102.............................. 1,022
1,000 San Antonio, Electric & Gas Revenue, Series 1991, 6.00%,
2/1/98................................................. 1,000
-------
4,122
-------
Washington (0.4%):
400 Washington State, GO, 7.30%, 6/1/00, Pre-refunded 6/1/98
@ 100.................................................. 405
-------
Wisconsin (0.6%):
500 Wisconsin State, GO, 7.10%, 5/1/00, Pre-refunded 5/1/98
@100................................................... 504
-------
Wyoming (0.6%):
500 University of Wyoming, University Revenues, 4.50%,
6/1/98, MBIA........................................... 501
-------
Total Municipal Bonds 25,866
-------
INVESTMENT COMPANIES (5.4%):
2,135 Federated Tax Free Fund................................. 2,135
2,754 Goldman Sachs Tax Free Fund............................. 2,754
-------
Total Investment Companies 4,889
-------
Total (Cost--$91,079) (a) $91,079
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $90,535.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
*Variable rate security. Rate represents rate in effect at January 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
or semiannually.
AMBAC--Insured by AMBAC Indemnity Corp.
ETM--Escrowed to Maturity
FGIC--Insured by Financial Guaranty Insurance Corp.
FNMA--Insured by Federal National Mortgage Assoc.
FSA--Insured by Financial Security Assurance
GO--General Obligation
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Assoc.
PCR--Pollution Control Revenue
PLC--Public Limited Co.
SPA--Standby Purchase Agreement
See notes to financial statements.
-69-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
January 31, 1998
(Unaudited)
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. Between the date of organization and the dates
of commencement of operations, the Trust had no operations other than
incurring organizational expenses and the sale of initial units of beneficial
interest ("shares").
The Trust is authorized to issue an unlimited number of shares without par
value. The Trust currently offers shares of the AmSouth Regional Equity Fund,
the AmSouth Equity Fund, the AmSouth Equity Income Fund, the AmSouth Capital
Growth Fund, the AmSouth Balanced Fund, the AmSouth Bond Fund, the AmSouth
Government Income Fund, the AmSouth Limited Maturity Fund, the AmSouth
Florida Tax-Free Fund, the AmSouth Municipal Bond Fund, the AmSouth Prime
Obligations Fund, the AmSouth U.S. Treasury Fund and the AmSouth Tax-Exempt
Fund (collectively, "the Funds" and individually "a Fund"). The AmSouth
Alabama Tax-Free Fund and the AmSouth Small Cap Fund have not yet commenced
operations as of January 31, 1998. Sales of shares of the Funds may be made
to customers of AmSouth Bank, ("AmSouth") and its affiliates, to all accounts
of correspondent banks of AmSouth and to the general public.
The AmSouth Prime Obligations Fund, the AmSouth U.S. Treasury Fund and the
AmSouth Tax-Exempt Fund (the "money market funds") each offer two classes of
shares: Classic Shares and Premier Shares. Effective April 1, 1996, the
existing shares of the money market funds, which were previously
unclassified, were designated Premier Shares, and the money market funds
commenced offering Classic Shares. Effective September 2, 1997, the existing
shares of the AmSouth Regional Equity Fund, the AmSouth Equity Fund, the
AmSouth Equity Income Fund, the AmSouth Capital Growth Fund, the AmSouth
Balanced Fund, the AmSouth Bond Fund, the AmSouth Government Income Fund, the
AmSouth Limited Maturity Fund, the AmSouth Florida Tax-Free Fund and the
AmSouth Municipal Bond Fund (the "variable funds") which were previously
unclassified, exchanged their shares for either the Fund's Classic Shares or
Premier Shares. The Class B Shares also became effective on September 2, 1997
in the AmSouth Prime Obligations Fund, the AmSouth Regional Equity Fund, the
AmSouth Equity Fund, the AmSouth Equity Income Fund, the AmSouth Capital
Growth Fund, the AmSouth Balanced Fund and the AmSouth Bond Fund. 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.
The AmSouth Regional Equity Fund and the AmSouth Equity Fund seek growth of
capital. The AmSouth Equity Income Fund seeks above average income and
capital appreciation. The AmSouth Capital Growth Fund seeks long-term capital
appreciation and growth of income. The AmSouth Balanced Fund seeks to obtain
long-term capital growth and to produce a reasonable amount of current
income. The AmSouth Bond Fund and AmSouth Limited Maturity Fund seek current
income, consistent with the preservation of capital. The AmSouth Government
Income Fund seeks to provide a high level of current income consistent with
prudent investment risk. The AmSouth Florida Tax-Free Fund seeks to produce
as high a level of current interest
Continued
-70-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
income exempt from federal income taxes and Florida intangible taxes as is
consistent with the preservation of capital. The AmSouth Municipal Bond Fund
seeks a high level of current interest income exempt from federal income
taxes. The AmSouth Prime Obligations Fund and AmSouth U.S. Treasury Fund seek
current income with liquidity and stability of principal. The AmSouth 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. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITIES VALUATION:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost which, combined with
accrued interest, approximates market value. Under the amortized cost
method, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the money market funds may not (a)
purchase any instrument with a remaining maturity greater than thirteen
months unless such instrument is subject to a demand feature, or (b)
maintain a dollar-weighted average maturity which exceeds 90 days.
Investments in common stocks, corporate bonds, municipal bonds, commercial
paper and U.S. Government securities of the variable net asset value funds
are valued at their market values determined on the basis of the mean
between the latest available bid and asked prices in the principal market
(closing sales prices if the principal market is an exchange) in which such
securities are normally traded. Investments in investment companies are
valued at their net asset values as reported by such companies. The
differences between cost and market values of such investments are
reflected as unrealized appreciation or depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Realized gains or losses from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation and from registered broker/dealers
which AmSouth deems creditworthy under guidelines
Continued
-71-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
approved by the Board of Trustees, subject to the seller's agreement to
repurchase such securities at a mutually agreed-upon date and price. The
repurchase price generally equals the price paid by the Funds plus interest
negotiated on the basis of current short-term rates, which may be more or
less than the rate on the underlying portfolio securities. The seller,
under a repurchase agreement, is required to maintain the value of
collateral held pursuant to the agreement at not less than the repurchase
price (including accrued interest). Securities subject to repurchase
agreements are held by the Funds' custodian or another qualified custodian
or in the Federal Reserve/Treasury book-entry system. Repurchase agreements
are considered to be loans by a Fund under the 1940 Act.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized gains, if any, are declared and distributed
annually.
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
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, 1997, the following reclassifications have been made to
increase (decrease) such amounts with offsetting adjustments made to paid-
in-capital:
<TABLE>
<CAPTION>
UNDISTRIBUTED ACCUMULATED NET
NET INVESTMENT REALIZED GAINS
INCOME ON INVESTMENTS
-------------- ---------------
<S> <C> <C>
Regional Equity Fund.......................... $ 2,083 $ (1,037)
Balanced Fund................................. (181,583) 219,123
Bond Fund..................................... 356,959 (211,171)
Government Income Fund........................ (62,440) 61,768
Limited Maturity Fund......................... 25,919 (32,203)
Florida Tax-Free Fund......................... 5,722 --
</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
Continued
-72-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
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, 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 five years from the commencement of the public offering of shares
of the Funds.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six month period ended January 31, 1998 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -------
<S> <C> <C>
Regional Equity Fund........................................ $ 6,988 $ 5,035
Equity Fund................................................. 57,885 98,745
Equity Income Fund.......................................... 23,149 13,623
Capital Growth Fund......................................... 9,965 1,939
Balanced Fund............................................... 34,998 56,545
Bond Fund................................................... 63,546 72,096
Government Income Fund...................................... 884 2,934
Limited Maturity Fund....................................... 33,809 56,662
Florida Tax Free Fund....................................... 10,898 12,049
Municipal Bond Fund......................................... 53,275 48,907
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares for the Funds which offer multiple classes of
shares for the six month period ended January 31, 1998 and the year ended
July 31, 1997 were as follows:
Continued
-73-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
REGIONAL EQUITY FUND EQUITY FUND EQUITY INCOME FUND
----------------------- ----------------------- -----------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 (A) 1997 1998 (A) 1997 1998 (A) 1997 (B)
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares
issued................ $ 3,916 $34,563 $ 22,488 $556,310 $6,524 $20,123
Dividends reinvested... 1,615 1,945 3,261 14,093 887 37
Shares redeemed........ (3,764) (16,518) (17,995) (131,517) (996) (292)
-------- ------- -------- -------- ------ -------
Change in net assets
from investor share
transactions.......... $ 1,767 $19,990 $ 7,754 $438,886 $6,415 $19,868
======== ======= ======== ======== ====== =======
PREMIER SHARES:
Proceeds from shares
issued................ $ 10,921 $ -- $ 71,759 $ -- $1,254 $ --
Dividends reinvested... 1,280 -- 10,067 -- 119 --
Shares redeemed........ (13,393) -- (92,871) -- (534) --
-------- ------- -------- -------- ------ -------
Change in net assets
from investor share
transactions.......... $ (1,192) $ -- $(11,045) $ -- $ 839 $ --
======== ======= ======== ======== ====== =======
CLASS B SHARES:
Proceeds from shares
issued................ $ 1,122 $ -- $ 2,605 $ -- $3,023 $ --
Dividends reinvested... 26 -- 85 -- 72 --
Shares redeemed........ (53) -- (53) -- (113) --
-------- ------- -------- -------- ------ -------
Change in net assets
from investor share
transactions.......... $ 1,095 $ -- $ 2,637 $ -- $2,982 $ --
======== ======= ======== ======== ====== =======
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................. 138 1,439 983 26,434 563 1,923
Reinvested............. 56 84 144 773 79 4
Redeemed............... (132) (683) (787) (6,713) (87) (27)
-------- ------- -------- -------- ------ -------
Change in Classic
Shares................ 62 840 340 20,494 555 1,900
======== ======= ======== ======== ====== =======
PREMIER SHARES:
Issued................. 380 -- 3,167 -- 108 --
Reinvested............. 45 -- 447 -- 10 --
Redeemed............... (474) -- (4,036) -- (46) --
-------- ------- -------- -------- ------ -------
Change in Premier
Shares................ (49) -- (422) -- 72 --
======== ======= ======== ======== ====== =======
CLASS B SHARES:
Issued................. 39 -- 113 -- 262 --
Reinvested............. 1 -- 4 -- 6 --
Redeemed............... (2) -- (2) -- (9) --
-------- ------- -------- -------- ------ -------
Change in Class B
Shares................ 38 -- 115 -- 259 --
======== ======= ======== ======== ====== =======
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
The Class B Shares also become effective on September 2, 1997.
(b) For the period from March 20, 1997 (commencement of operations) through
July 31, 1997.
Continued
-74-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
CAPITAL GROWTH FUND BALANCED FUND
------------------- -----------------------
PERIOD ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JANUARY 31, JULY 31,
1998 (A) 1998 (A) 1997
------------------- ------------ ----------
<S> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares issued....... $7,080 $ 5,474 $ 79,422
Dividends reinvested.............. -- 4,608 20,289
Shares redeemed................... (325) (13,760) (121,323)
------ ------- --------
Change in net assets from investor
share transactions............... $6,755 $(3,678) $(21,612)
====== ======= ========
PREMIER SHARES:
Proceeds from shares issued....... $ 98 $36,854 $ --
Dividends reinvested.............. -- 14,632 --
Shares redeemed................... -- (43,016) --
------ ------- --------
Change in net assets from investor
share transactions............... $ 98 $ 8,470 $ --
====== ======= ========
CLASS B SHARES:
Proceeds from shares issued....... $1,291 $ 1,620 $ --
Dividends reinvested.............. -- 77 --
Shares redeemed................... (13) (33) --
------ ------- --------
Change in net assets from investor
share transactions............... $1,278 $ 1,664 $ --
====== ======= ========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued............................ 714 364 5,836
Reinvested........................ -- 315 1,523
Redeemed.......................... (33) (921) (8,820)
------ ------- --------
Change in Classic Shares.......... 681 (242) (1,461)
====== ======= ========
PREMIER SHARES:
Issued............................ 10 2,514 --
Reinvested........................ -- 1,010 --
Redeemed.......................... -- (2,908) --
------ ------- --------
Change in Premier Shares.......... 10 616 --
====== ======= ========
CLASS B SHARES:
Issued............................ 129 108 --
Reinvested........................ -- 5 --
Redeemed.......................... (1) (2) --
------ ------- --------
Change in Class B Shares.......... 128 111 --
====== ======= ========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
The Class B Shares also became effective on September 2, 1997.
Continued
-75-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
BOND FUND GOVERNMENT INCOME FUND LIMITED MATURITY FUND
----------------------- ----------------------- -----------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 (A) 1997 1998 (B) 1997 1998 (B) 1997
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares
issued................ $ 8,794 $201,871 $ 497 $ 1,446 $ 1,141 $115,330
Dividends reinvested... 1,040 5,240 155 412 156 865
Shares redeemed........ (17,694) (37,772) (2,885) (6,512) (8,593) (25,250)
-------- -------- ------- ------- -------- --------
Change in net assets
from investor share
transactions.......... $ (7,860) $169,339 $(2,233) $(4,654) $ (7,296) $ 90,945
======== ======== ======= ======= ======== ========
PREMIER SHARES:
Proceeds from shares
issued................ $ 40,563 $ -- $ 329 $ -- $ 6,154 $ --
Dividends reinvested... 1,976 -- -- -- 191 --
Shares redeemed........ (38,461) -- (4) -- (22,343) --
-------- -------- ------- ------- -------- --------
Change in net assets
from investor share
transactions.......... $ 4,078 $ -- $ 325 $ -- $(15,998) $ --
======== ======== ======= ======= ======== ========
CLASS B SHARES:
Proceeds from shares
issued................ $ 103 $ -- $ -- $ -- $ -- $ --
Dividends reinvested... 1 -- -- -- -- --
Shares redeemed........ -- -- -- -- -- --
-------- -------- ------- ------- -------- --------
Change in net assets
from investor share
transactions.......... $ 104 $ -- $ -- $ -- $ -- $ --
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................. 813 18,995 52 153 110 11,205
Reinvested............. 96 494 16 43 15 84
Redeemed............... (1,647) (3,539) (295) (680) (829) (2,449)
-------- -------- ------- ------- -------- --------
Change in Classic
Shares................ (738) 15,950 (227) (484) (704) 8,840
======== ======== ======= ======= ======== ========
PREMIER SHARES:
Issued................. 3,699 -- 33 -- 588 --
Reinvested............. 181 -- -- -- 18 --
Redeemed............... (3,495) -- -- -- (2,139) --
-------- -------- ------- ------- -------- --------
Change in Premier
Shares................ 385 -- 33 -- (1,533) --
======== ======== ======= ======= ======== ========
CLASS B SHARES:
Issued................. 10 -- -- -- -- --
Reinvested............. -- -- -- -- -- --
Redeemed............... -- -- -- -- -- --
-------- -------- ------- ------- -------- --------
Change in Class B
Shares................ 10 -- -- -- -- --
======== ======== ======= ======= ======== ========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
The Class B Shares also became effective on September 2, 1997.
(b) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
Continued
-76-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
FLORIDA TAX-FREE FUND MUNICIPAL FUND
----------------------- -----------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 (A) 1997 1998 (A) 1997 (B)
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares issued... $ 189 $12,780 $ 8,904 $342,930
Dividends reinvested.......... 110 213 28 --
Shares redeemed............... (3,828) (9,213) (5,123) (10,165)
------- ------- -------- --------
Change in net assets from in-
vestor share transactions.... $(3,529) $ 3,780 $ 3,809 $332,765
======= ======= ======== ========
PREMIER SHARES:
Proceeds from shares issued... $ 9,913 $ -- $ 19,859 $ --
Dividends reinvested.......... -- -- 14 --
Shares redeemed............... (3,850) -- (28,848) --
------- ------- -------- --------
Change in net assets from in-
vestor share transactions.... $ 6,063 $ -- $ (8,975) $ --
======= ======= ======== ========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued........................ 18 1,240 882 34,283
Reinvested.................... 10 21 3 --
Redeemed...................... (366) (894) (507) (1,004)
------- ------- -------- --------
Change in Classic Shares...... (338) 367 378 33,279
======= ======= ======== ========
PREMIER SHARES:
Issued........................ 947 -- 1,958 --
Reinvested.................... -- -- 1 --
Redeemed...................... (368) -- (2,843) --
------- ------- -------- --------
Change in Premier Shares...... 579 -- (884) --
======= ======= ======== ========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
(b) For the period from July 1, 1997 (commencement of operations) through July
31, 1997.
Continued
-77-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND U.S. TREASURY FUND TAX EXEMPT FUND
------------------------ ----------------------- -----------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1998 (A) 1997 1998 1997 1998 1997
------------ ----------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASSIC SHARES:
Proceeds from shares
issued................ $ 110,650 $ 568,041 $ 8,377 $ 24,470 $ 23,843 $ 36,497
Dividends reinvested... 2,915 5,860 198 507 354 572
Shares redeemed........ (105,328) (587,948) (12,325) (27,354) (32,028) (26,258)
--------- ----------- --------- --------- -------- ---------
Change in net assets
from investor share
transactions.......... $ 8,237 $ (14,047) $ (3,750) $ (2,377) $ (7,831) $ 10,811
========= =========== ========= ========= ======== =========
PREMIER SHARES:
Proceeds from shares
issued................ $ 793,503 $ 1,050,377 $ 457,285 $ 837,301 $ 99,048 $ 165,204
Dividends reinvested... 873 1,518 237 369 4 18
Shares redeemed........ (716,502) (1,113,472) (454,063) (896,472) (84,041) (153,403)
--------- ----------- --------- --------- -------- ---------
Change in net assets
from investor share
transactions.......... $ 77,874 $ (61,577) $ 3,459 $ (58,802) $ 15,011 $ 11,819
========= =========== ========= ========= ======== =========
CLASS B SHARES:
Proceeds from shares
issued................ $ -- $ -- $ -- $ -- $ -- $ --
Dividends reinvested... -- -- -- -- -- --
Shares redeemed........ -- -- -- -- -- --
--------- ----------- --------- --------- -------- ---------
Change in net assets
from investor share
transactions.......... $ -- $ -- $ -- $ -- $ -- $ --
========= =========== ========= ========= ======== =========
SHARE TRANSACTIONS:
CLASSIC SHARES:
Issued................. 110,650 568,041 8,377 24,470 23,843 36,497
Reinvested............. 2,915 5,860 198 507 354 572
Redeemed............... (105,328) (587,948) (12,325) (27,354) (32,028) (26,258)
--------- ----------- --------- --------- -------- ---------
Change in Classic
Shares................ 8,237 (14,047) (3,750) (2,377) (7,831) 10,811
========= =========== ========= ========= ======== =========
PREMIER SHARES:
Issued................. 793,503 1,050,377 457,285 837,301 99,048 165,204
Reinvested............. 873 1,518 237 369 4 18
Redeemed............... (716,502) (1,113,472) (454,063) (896,472) (84,041) (153,403)
--------- ----------- --------- --------- -------- ---------
Change in Premier
Shares................ 77,874 (61,577) 3,459 (58,802) 15,011 11,819
========= =========== ========= ========= ======== =========
CLASS B SHARES:
Issued................. -- -- -- -- -- --
Reinvested............. -- -- -- -- -- --
Redeemed............... -- -- -- -- -- --
--------- ----------- --------- --------- -------- ---------
Change in Class B
Shares................ -- -- -- -- -- --
========= =========== ========= ========= ======== =========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund commenced offering Class B Shares.
Continued
-78-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
5. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to each of the Funds by AmSouth.
Under the terms of the investment advisory agreement, AmSouth is entitled to
receive fees based on a percentage of the average net assets of each of the
Funds.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of the BISYS Group, Inc.
ASO Services Company, a wholly owned subsidiary of The BISYS Group, Inc.,
serves the Funds as administrator. Under the terms of the administration
agreement, ASO Services Company's fees are computed daily as 0.20% of the
average net assets of each of the Funds. 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 average
net assets. AmSouth became Custodian for the Trust on April 17, 1997.
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. 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 six months ended January 31,
1998, BISYS received $1,053,698 from commissions earned on sales of shares of
the Funds' variable net asset value funds of which the $1,047,049 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 Mutual Fund Accountant. Under the terms of
the Transfer Agent and Fund Accounting Agreement, BISYS Ohio's fees are based
on the number of shareholders and as a percentage of average 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 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 such services and pays BISYS for
its cost of providing such services, subject to a maximum rate of 1.00% of
Continued
-79-
<PAGE>
AMSOUTH MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
January 31, 1998
(Unaudited)
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 six month period ended January 31, 1998 (amounts in
thousands):
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
---------------------------
ANNUAL FEE AS ADMINISTRATION SHAREHOLDER FUND TRANSFER
A PERCENTAGE OF FEES FEES SERVICING FEES ACCOUNTING FEES AGENT AND
AVERAGE DAILY VOLUNTARILY VOLUNTARILY VOLUNTARILY VOLUNTARILY CUSTODY
NET ASSETS REDUCED REDUCED REDUCED REDUCED FEES
--------------- ----------- -------------- -------------- --------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Regional Equity Fund.... 0.80% $ 1 $ -- $ -- $ -- $ 20
Equity Fund............. 0.80% -- -- -- -- 127
Equity Income Fund...... 0.80% -- -- -- -- 5
Capital Growth Fund(a).. 0.80% -- 3 -- -- --
Balanced Fund........... 0.80% -- -- -- -- 48
Bond Fund............... 0.65% 233 124 4 -- 39
Government Income Fund.. 0.65% 19 6 6 -- 1
Limited Maturity Fund... 0.65% 94 50 2 -- 16
Florida Tax-Free Fund... 0.65% 93 27 3 -- 5
Municipal Bond Fund..... 0.65% 424 136 1 -- 46
Prime Obligations Fund.. 0.40% -- -- 90 -- 77
U.S. Treasury Fund...... 0.40% -- -- 6 -- 36
Tax-Exempt Fund......... 0.40% 82 -- 16 -- 10
</TABLE>
- --------
(a) For the period from August 1, 1997 (commencement of operations) through
January 31, 1998.
-80-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
REGIONAL EQUITY FUND
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, --------------------------------------------
1998 1997 1996 1995 1994 1993
---------------------------------------- -------- ------- ------- ------- -------
CLASSIC (A) PREMIER (A) B SHARES (A)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 28.23 $ 27.95 $ 28.50 $ 20.95 $ 18.94 $ 16.68 $ 16.74 $ 14.86
------- ------- ------- -------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................ 0.04 0.08 (0.01) 0.24 0.26 0.23 0.23 0.19
Net realized and
unrealized gains
(losses) from
investments........... 0.27 0.53 (0.03) 7.77 2.20 2.26 0.58 2.09
------- ------- ------- -------- ------- ------- ------- -------
Total from Investment
Activities............ 0.31 0.61 (0.04) 8.01 2.46 2.49 0.81 2.28
------- ------- ------- -------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.05) (0.08) (0.02) (0.24) (0.26) (0.23) (0.23) (0.20)
Net realized gains from
investment
transactions.......... (0.93) (0.93) (0.93) (0.49) (0.19) -- (0.41) (0.20)
In excess of net real-
ized gains............ -- -- -- -- -- -- (0.23) --
------- ------- ------- -------- ------- ------- ------- -------
Total Distributions.... (0.98) (1.01) (0.95) (0.73) (0.45) (0.23) (0.87) (0.40)
------- ------- ------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 27.56 $ 27.55 $ 27.51 $ 28.23 $ 20.95 $ 18.94 $ 16.68 $ 16.74
======= ======= ======= ======== ======= ======= ======= =======
Total Return (excludes
sales charge).......... 0.96%(c) 1.04%(c) 0.68%(c) 39.02% 13.10% 15.10% 4.87% 15.53%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $47,966 $98,594 $ 1,047 $149,838 $93,584 $68,501 $54,744 $41,347
Ratio of expenses to
average net assets.... 1.25%(b) 1.08%(b) 2.08%(b) 1.06% 1.05% 1.07% 0.79% 0.80%
Ratio of net investment
income to average net
assets................ 0.22%(b) 0.65%(b) (0.43)%(b) 0.99% 1.30% 1.35% 1.36% 1.17%
Ratio of expenses to
average net assets*... 1.25%(b) 1.08%(b) 2.08%(b) 1.10% 1.13% 1.15% 1.24% 1.28%
Ratio of net investment
income to average net
assets*............... 0.22%(b) 0.65%(b) (0.43)%(b) 0.95% 1.22% 1.27% 0.90% 0.69%
Portfolio turnover (d).. 3.48% 3.48% 3.48% 10.30% 8.22% 14.25% 5.83% 10.22%
Average commission rate
paid (e)............... $0.0621 $0.0621 $0.0621 $ 0.0760 $0.0827 -- -- --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic
Shares. The Class B Shares also became effective on September 2, 1997.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September
1, 1996.
See notes to financial statements.
-81-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY FUND
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ------------------------------------------------
1998 1997 1996 1995 1994 1993
----------------------------------------- -------- -------- -------- -------- --------
CLASSIC (A) PREMIER (A) B SHARES (A)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 23.35 $ 22.51 $ 23.16 $ 17.62 $ 16.75 $ 14.82 $ 14.38 $ 13.40
------- -------- ------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.06 0.12 0.04 0.30 0.33 0.33 0.28 0.28
Net realized and
unrealized gains from
investments........... 0.55 1.33 0.71 6.77 1.48 2.39 0.83 1.48
------- -------- ------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.61 1.45 0.75 7.07 1.81 2.72 1.11 1.76
------- -------- ------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.10) (0.12) (0.06) (0.30) (0.33) (0.32) (0.28) (0.29)
Net realized gains from
investment
transactions.......... (1.25) (1.25) (1.25) (1.04) (0.61) (0.47) (0.39) (0.49)
------- -------- ------- -------- -------- -------- -------- --------
Total Distributions.... (1.35) (1.37) (1.31) (1.34) (0.94) (0.79) (0.67) (0.78)
------- -------- ------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 22.61 $ 22.59 $ 22.60 $ 23.35 $ 17.62 $ 16.75 $ 14.82 $ 14.38
======= ======== ======= ======== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 2.65%(c) 2.66%(c) 2.42%(c) 42.35% 11.09% 19.27% 7.90% 13.81%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $61,808 $879,561 $ 2,602 $974,985 $374,622 $275,757 $205,611 $153,074
Ratio of expenses to
average net assets.... 1.16%(b) 1.08%(b) 2.07%(b) 1.06% 1.02% 1.03% 0.94% 0.95%
Ratio of net investment
income to average net
assets................ 0.82%(b) 1.02%(b) 0.07%(b) 1.52% 1.86% 2.17% 1.93% 2.08%
Ratio of expenses to
average net assets*... 1.16%(b) 1.08%(b) 2.07%(b) 1.10% 1.11% 1.11% 1.11% 1.13%
Ratio of net investment
income to average net
assets*............... 0.82%(b) 1.02%(b) 0.07%(b) 1.48% 1.77% 2.09% 1.76% 1.90%
Portfolio turnover (d).. 6.25% 6.25% 6.25% 24.47% 19.11% 19.46% 11.37% 15.12%
Average commission rate
paid (e)............... $0.0700 $ 0.0700 $0.0700 $ 0.0657 $ 0.0700 -- -- --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic
Shares. The Class B Shares also became effective on September 2, 1997.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September
1, 1996.
See notes to financial statements.
-82-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INCOME FUND
---------------------------------------------------------
SIX MONTHS ENDED MARCH 20, 1997
JANUARY 31, TO JULY 31,
1998 1997 (F)
---------------------------------------- --------------
CLASSIC (A) PREMIER (A) B SHARES (A)
----------- ----------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 11.72 $ 11.35 $ 11.61 $ 10.00
------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income
(loss)................. 0.13 0.15 0.09 0.07
Net realized and
unrealized gains from
investments............ 0.20 0.56 0.30 1.71
------- ------- ------- -------
Total from Investment
Activities............. 0.33 0.71 0.39 1.78
------- ------- ------- -------
DISTRIBUTIONS
Net investment income... (0.13) (0.14) (0.10) (0.06)
Net realized gains from
investment
transactions........... (0.41) (0.41) (0.41) --
------- ------- ------- -------
Total Distributions..... (0.54) (0.55) (0.51) (0.06)
------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 11.51 $ 11.51 $ 11.49 $ 11.72
======= ======= ======= =======
Total Return (excludes
sales charge)........... 2.89%(c) 3.00%(c) 2.50%(c) 17.81%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of pe-
riod (000)............. $23,593 $ 5,497 $ 2,973 $22,273
Ratio of expenses to
average net assets..... 1.42%(b) 1.21%(b) 2.18%(b) 1.30%(b)
Ratio of net investment
income to average net
assets................. 2.21%(b) 2.60%(b) 1.65%(b) 2.13%(b)
Ratio of expenses to
average net assets*.... 1.42%(b) 1.21%(b) 2.18%(b) 1.51%(b)
Ratio of net investment
income to average net
assets*................ 2.21%(b) 2.60%(b) 1.65%(b) 1.92%(b)
Portfolio turnover (d)... 51.52% 51.52% 51.52% 27.38%
Average commission rate
paid (e)................ $0.0599 $0.0599 $0.0599 $0.0600
<CAPTION>
CAPITAL GROWTH FUND
---------------------------------------------
SIX MONTHS ENDED
JANUARY 31,
1998 (F)
---------------------------------------------
CLASSIC (A) PREMIER (A) B SHARES (A)
-------------- -------------- ---------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 10.00 $ 9.55 $ 9.82
-------------- -------------- ---------------
INVESTMENT ACTIVITIES
Net investment income
(loss)................. (0.02) -- (0.03)
Net realized and
unrealized gains from
investments............ 0.16 0.60 0.32
-------------- -------------- ---------------
Total from Investment
Activities............. 0.14 0.60 0.29
-------------- -------------- ---------------
DISTRIBUTIONS
Net investment income... -- -- --
Net realized gains from
investment
transactions........... -- -- --
-------------- -------------- ---------------
Total Distributions..... -- -- --
-------------- -------------- ---------------
NET ASSET VALUE, END OF
PERIOD.................. $ 10.14 $ 10.15 $ 10.11
============== ============== ===============
Total Return (excludes
sales charge)........... -- -- --
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of pe-
riod (000)............. $ 4,838 $ 2,165 $ 1,298
Ratio of expenses to
average net assets..... 1.75%(b) 0.99%(b) 2.19%(b)
Ratio of net investment
income to average net
assets................. (0.69)%(b) 0.07%(b) (1.19)%(b)
Ratio of expenses to
average net assets*.... 1.89%(b) 1.13%(b) 2.33%(b)
Ratio of net investment
income to average net
assets*................ (0.83)%(b) (0.07)%(b) (1.33)%(b)
Portfolio turnover (d)... 39.84% 39.84% 39.84%
Average commission rate
paid (e)................ $0.0411 $0.0411 $0.0411
</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, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic
Shares. The Class B Shares also became effective on September 2, 1997.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September
1, 1996.
(f) Period from August 1, 1997 (commencement of operations).
See notes to financial statements.
-83-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BALANCED FUND
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ------------------------------------------------
1998 1997 1996 1995 1994 1993
----------------------------------------- -------- -------- -------- -------- --------
CLASSIC (A) PREMIER (A) B SHARES (A)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 15.21 $ 14.77 $ 15.03 $ 13.03 $ 12.76 $ 11.81 $ 11.86 $ 11.12
------- -------- ------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.18 0.23 0.16 0.48 0.47 0.47 0.42 0.44
Net realized and
unrealized gains from
investments........... 0.36 0.76 0.51 2.78 0.58 1.24 0.18 0.80
------- -------- ------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.54 0.99 0.67 3.26 1.05 1.71 0.60 1.24
------- -------- ------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.21) (0.23) (0.18) (0.50) (0.47) (0.46) (0.42) (0.45)
Net realized gains from
investment
transactions.......... (0.97) (0.97) (0.97) (0.58) (0.31) (0.30) (0.23) (0.05)
------- -------- ------- -------- -------- -------- -------- --------
Total Distributions.... (1.18) (1.20) (1.15) (1.08) (0.78) (0.76) (0.65) (0.50)
------- -------- ------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 14.57 $ 14.56 $ 14.55 $ 15.21 $ 13.03 $ 12.76 $ 11.81 $ 11.86
======= ======== ======= ======== ======== ======== ======== ========
Total Return (excludes
sales charge).......... 3.72%(c) 3.77%(c) 3.37%(c) 26.42% 8.37% 15.27% 5.13% 11.47%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $49,167 $313,150 $ 1,614 $372,769 $338,425 $295,509 $236,306 $179,134
Ratio of expenses to
average net assets.... 1.20%(b) 1.08%(b) 2.08%(b) 1.05% 0.98% 0.94% 0.84% 0.84%
Ratio of net investment
income to average net
assets................ 2.87%(b) 2.99%(b) 1.98%(b) 3.49% 3.61% 3.91% 3.56% 3.90%
Ratio of expenses to
average net assets*... 1.20%(b) 1.08%(b) 2.08%(b) 1.10% 1.11% 1.12% 1.11% 1.12%
Ratio of net investment
income to average net
assets*............... 2.87%(b) 2.99%(b) 1.98%(b) 3.44% 3.48% 3.73% 3.28% 3.62%
Portfolio turnover (d).. 9.90% 9.90% 9.90% 25.00% 20.47% 16.97% 14.43% 11.09%
Average commission rate
paid (e)............... $0.0750 $ 0.0750 $0.0750 $ 0.0734 $ 0.0773 -- -- --
</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, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic
Shares. The Class B Shares also became effective on September 2, 1997.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September
1, 1996.
See notes to financial statements.
-84-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BOND FUND
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ---------------------------------------------
1998 1997 1996 1995 1994 1993
----------------------------------------- -------- -------- ------- ------- -------
CLASSIC (A) PREMIER (A) B SHARES (A)
----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.92 $ 10.72 $10.75 $ 10.54 $ 10.83 $ 10.59 $ 11.29 $ 11.29
------ -------- ------ -------- -------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 1.04 0.31 0.18 0.65 0.65 0.69 0.69 0.71
Net realized and
unrealized gains
(losses) from
investments........... (0.51) 0.43 0.49 0.42 (0.18) 0.28 (0.66) 0.33
------ -------- ------ -------- -------- ------- ------- -------
Total from Investment
Activities............ 0.53 0.74 0.67 1.07 0.47 0.97 0.03 1.04
------ -------- ------ -------- -------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.32) (0.33) (0.29) (0.69) (0.65) (0.69) (0.70) (0.71)
Net realized gains from
investment transac-
tions................. (0.03) (0.03) (0.03) -- (0.11) (0.04) (0.03) (0.33)
------ -------- ------ -------- -------- ------- ------- -------
Total Distributions.... (0.35) (0.36) (0.32) (0.69) (0.76) (0.73) (0.73) (1.04)
------ -------- ------ -------- -------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $11.10 $ 11.10 $11.10 $ 10.92 $ 10.54 $ 10.83 $ 10.59 $ 11.29
====== ======== ====== ======== ======== ======= ======= =======
Total Return (excludes
sales charge).......... 4.97%(c) 5.01%(c) 4.67%(c) 10.48% 4.40% 9.70% 0.23% 9.80%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $7,569 $305,493 $ 105 $311,881 $132,737 $94,671 $79,472 $65,777
Ratio of expenses to
average net assets.... 0.74%(b) 0.71%(b) 1.70%(b) 0.75% 0.75% 0.75% 0.78% 0.78%
Ratio of net investment
income to average net
assets................ 5.97%(b) 5.68%(b) 4.64%(b) 6.10% 6.12% 6.63% 6.31% 6.37%
Ratio of expenses to
average net assets*... 0.98%(b) 0.94%(b) 1.93%(b) 0.98% 0.98% 0.98% 1.01% 1.01%
Ratio of net investment
income to average net
assets*............... 5.73%(b) 5.45%(b) 4.41%(b) 5.87% 5.89% 6.40% 6.08% 6.14%
Portfolio turnover (d).. 21.01% 21.01% 21.01% 34.62% 9.60% 17.70% 30.90% 14.98%
</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, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
The Class B Shares also became effective on September 2, 1997.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-85-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND
---------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31, OCTOBER 1, 1993
JANUARY 31, ------------------------- TO JULY 31,
1998 1997 1996 1995 1994 (E)
------------------------- ------- ------- ------- ---------------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 9.75 $9.66 $ 9.40 $ 9.54 $ 9.48 $ 10.00
------ ----- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.30 0.29 0.58 0.66 0.68 0.54
Net realized and
unrealized gains
(losses) from
investments........... 0.16 0.27 0.35 (0.20) 0.08 (0.57)
------ ----- ------- ------- ------- -------
Total from Investment
Activities............ 0.46 0.56 0.93 0.46 0.76 (0.03)
------ ----- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.31) (0.32) (0.58) (0.59) (0.70) (0.33)
Tax return of capital.. -- -- -- (0.01) -- (0.16)
------ ----- ------- ------- ------- -------
Total Distributions.... (0.31) (0.32) (0.58) (0.60) (0.70) (0.49)
------ ----- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 9.90 $9.90 $ 9.75 $ 9.40 $ 9.54 $ 9.48
====== ===== ======= ======= ======= =======
Total Return (excludes
sales charge).......... 4.84%(c) 4.88%(c) 10.21% 4.91% 8.43% (0.26)%(c)
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $9,164 $ 721 $11,622 $15,752 $16,679 $15,465
Ratio of expenses to
average net assets.... 0.70%(b) 0.61%(b) 0.69% 0.65% 0.58% 0.37%(b)
Ratio of net investment
income to average net
assets................ 6.23%(b) 6.27%(b) 5.98% 6.81% 7.18% 6.56%(b)
Ratio of expenses to
average net assets*... 1.27%(b) 1.06%(b) 1.29% 1.10% 1.19% 1.22%(b)
Ratio of net investment
income to average net
assets*............... 5.66%(b) 5.82%(b) 5.38% 6.36% 6.57% 5.71%(b)
Portfolio turnover (d).. 8.32% 8.32% 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, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
-86-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LIMITED MATURITY FUND
-------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, --------------------------------------------
1998 1997 1996 1995 1994 1993
------------------------- -------- ------- ------- ------- -------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $10.42 $ 10.34 $ 10.31 $ 10.41 $ 10.23 $ 10.81 $ 10.81
------ -------- -------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.61 0.29 0.58 0.58 0.58 0.54 0.60
Net realized and
unrealized gains
(losses) from
investments........... (0.22) 0.18 0.14 (0.10) 0.17 (0.45) 0.09
------ -------- -------- ------- ------- ------- -------
Total from Investment
Activities............ 0.39 0.47 0.72 0.48 0.75 0.09 0.69
------ -------- -------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.30) (0.30) (0.61) (0.57) (0.57) (0.54) (0.61)
Net realized gains from
investment transac-
tions................. -- -- -- (0.01) -- -- (0.08)
In excess of net real-
ized gains............ -- -- -- -- -- (0.13) --
------ -------- -------- ------- ------- ------- -------
Total Distributions.... (0.30) (0.30) (0.61) (0.58) (0.57) (0.67) (0.69)
------ -------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $10.51 $ 10.51 $ 10.42 $ 10.31 $ 10.41 $ 10.23 $ 10.81
====== ======== ======== ======= ======= ======= =======
Total Return (excludes
sales charge).......... 3.79%(c) 3.84%(c) 7.25% 4.74% 7.65% 0.77% 6.72%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $3,113 $113,136 $138,675 $46,005 $59,798 $51,660 $53,933
Ratio of expenses to
average net assets.... 0.74%(b) 0.72%(b) 0.77% 0.76% 0.80% 0.79% 0.69%
Ratio of net investment
income to average net
assets................ 5.83%(b) 5.64%(b) 5.65% 5.48% 5.69% 5.05% 5.67%
Ratio of expenses to
average net assets*... 0.99%(b) 0.95%(b) 1.02% 0.99% 1.03% 1.02% 1.03%
Ratio of net investment
income to average net
assets*............... 5.58%(b) 5.41%(b) 5.40% 5.25% 5.46% 4.82% 5.33%
Portfolio turnover (d).. 28.17% 28.17% 64.89% 29.56% 38.11% 48.06% 141.27%
</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, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
(b) Annualized.
(c) Not 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.
-87-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA TAX-FREE FUND
----------------------------------------------------------------
YEAR ENDED
SIX MONTHS ENDED JULY 31, SEPTEMBER 30, 1994
JANUARY 31, ---------------- TO JULY 31,
1998 1997 1996 1995 (E)
------------------------- ------- ------- ------------------
CLASSIC (A) PREMIER (A)
----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.50 $ 10.39 $ 10.30 $ 10.32 $ 10.00
------ ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.27 0.22 0.45 0.45 0.34
Net realized and
unrealized gains
(losses) from
investments........... 0.03 0.20 0.24 (0.01) 0.30
------ ------- ------- ------- -------
Total from Investment
Activities............ 0.30 0.42 0.69 0.44 0.64
------ ------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.22) (0.23) (0.48) (0.45) (0.32)
Net realized gains from
investment
transactions.......... (0.07) (0.07) (0.01) (0.01) --
------ ------- ------- ------- -------
Total Distributions.... (0.29) (0.30) (0.49) (0.46) (0.32)
------ ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.......... $10.51 $ 10.51 $ 10.50 $ 10.30 $ 10.32
====== ======= ======= ======= =======
Total Return (excludes
sales charge).......... 2.93%(c) 2.98%(c) 6.89% 4.24% 6.53%(c)
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $3,858 $52,418 $53,688 $48,869 $48,333
Ratio of expenses to
average net assets.... 0.55%(b) 0.50%(b) 0.57% 0.59% 0.70%(b)
Ratio of net investment
income to average net
assets................ 4.38%(b) 4.29%(b) 4.36% 4.33% 4.16%(b)
Ratio of expenses to
average net assets*... 1.05%(b) 0.95%(b) 1.06% 1.04% 1.01%(b)
Ratio of net investment
income to average net
assets*............... 3.88%(b) 3.84%(b) 3.87% 3.88% 3.86%(b)
Portfolio turnover (d).. 21.39% 21.39% 24.05% 12.21% 2.33%
<CAPTION>
MUNICIPAL BOND FUND
-------------------------------------------
SIX MONTHS ENDED JULY 1, 1997
JANUARY 31, TO JULY 31,
1998 1997 (E)
---------------------------- --------------
CLASSIC (A) PREMIER (A)
------------- --------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.15 $ 10.04 $ 10.00
------------- -------------- --------------
INVESTMENT ACTIVITIES
Net investment income.. 0.69 0.21 0.04
Net realized and
unrealized gains
(losses) from
investments........... (0.39) 0.21 0.15
------------- -------------- --------------
Total from Investment
Activities............ 0.30 0.42 0.19
------------- -------------- --------------
DISTRIBUTIONS
Net investment income.. (0.21) (0.22) (0.04)
Net realized gains from
investment
transactions.......... (0.02) (0.02) --
------------- -------------- --------------
Total Distributions.... (0.23) (0.24) (0.04)
------------- -------------- --------------
NET ASSET VALUE,
END OF PERIOD.......... $10.22 $ 10.22 $ 10.15
============= ============== ==============
Total Return (excludes
sales charge).......... 3.09%(c) 3.13%(c) 1.86%(c)
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $2,509 $332,488 $337,933
Ratio of expenses to
average net assets.... 0.63%(b) 0.61%(b) 0.71%(b)
Ratio of net investment
income to average net
assets................ 4.40%(b) 4.24%(b) 4.31%(b)
Ratio of expenses to
average net assets*... 0.96%(b) 0.94%(b) 1.04%(b)
Ratio of net investment
income to average net
assets*............... 4.07%(b) 3.91%(b) 3.98%(b)
Portfolio turnover (d).. 14.97% 14.97% 0.31%
</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, exchanged their shares for either the Fund's
Classic Shares or Premier Shares. For reporting purposes, past performance
numbers (prior to September 2, 1997) are being reflected as Classic Shares.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
-88-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
-----------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ---------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
--------------------- ------------------ -------------------------- -------- -------- --------
CLASSIC PREMIER CLASSIC PREMIER CLASSIC (A) PREMIER (A)
-------- -------- -------- -------- ----------- -----------
<S> <C> <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 $ 1.000
-------- -------- -------- -------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income... 0.025 0.025 0.048 0.049 0.016 0.050 0.050 0.029 0.027
-------- -------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income... (0.025) (0.025) (0.048) (0.049) (0.016) (0.050) (0.050) (0.029) (0.027)
-------- -------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return............. 2.51%(d) 2.56%(d) 4.90% 5.00% 5.07%(e) 5.10% 5.14% 2.94% 2.76%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of
period (000)........... $119,264 $494,840 $111,027 $416,966 $125,075 $478,542 $617,673 $577,331 $456,428
Ratio of expenses to
average net assets..... 0.78%(b) 0.68%(b) 0.78% 0.68% 0.81%(b) 0.71% 0.69% 0.70% 0.71%
Ratio of net investment
income to average net
assets................. 4.93%(b) 5.03%(b) 4.79% 4.89% 4.61%(b) 5.00% 5.04% 2.92% 2.73%
Ratio of expenses to
average net assets*.... 0.93%(b) 0.68%(b) 0.93% (c) 0.96%(b) (c) (c) (c) (c)
Ratio of net investment
income to average net
assets*................ 4.78%(b) 5.03%(b) 4.64% (c) 4.46%(b) (c) (c) (c) (c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) There were no waivers during the period.
(d) 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%.
See notes to financial statements.
-89-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY FUND
--------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, -------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
-------------------- ----------------- ------------------------- -------- -------- --------
CLASSIC PREMIER CLASSIC PREMIER CLASSIC (A) PREMIER (A)
------- -------- ------- -------- ----------- -----------
<S> <C> <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 $ 1.000
------- -------- ------- -------- ------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income.. 0.023 0.024 0.045 0.046 0.015 0.048 0.048 0.028 0.027
------- -------- ------- -------- ------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income.. (0.023) (0.024) (0.045) (0.046) (0.015) (0.048) (0.048) (0.028) (0.027)
------- -------- ------- -------- ------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= ======== ======= ======== ======== ======== ========
Total Return............ 2.34%(d) 2.39%(d) 4.60% 4.70% 4.90%(e) 4.93% 4.90% 2.80% 2.69%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets at end of
period (000).......... $ 6,136 $312,820 $ 9,885 $309,361 $12,263 $368,162 $322,939 $300,603 $404,473
Ratio of expenses to
average net assets.... 0.79%(b) 0.69%(b) 0.79% 0.69% 0.82%(b) 0.71% 0.70% 0.71% 0.72%
Ratio of net investment
income to average net
assets................ 4.60%(b) 4.70%(b) 4.50% 4.60% 4.44%(b) 4.82% 4.81% 2.77% 2.66%
Ratio of expenses to
average net assets*... 0.94%(b) 0.69%(b) 0.94% (c) 0.97%(b) (c) (c) (c) (c)
Ratio of net investment
income to average net
assets*............... 4.45%(b) 4.70%(b) 4.35% (c) 4.29%(b) (c) (c) (c) (c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective April 1, 1996, the Fund's existing shares, which were previously
unclassified, were designated as Premier Shares, and the Fund commenced
offering Classic Shares.
(b) Annualized.
(c) There were no waivers during the period.
(d) 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 1.49%.
See notes to financial statements.
-90-
<PAGE>
AMSOUTH MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX EXEMPT FUND
-----------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, ---------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
--------------------- ---------------- ------------------------- ------- ------- -------
CLASSIC PREMIER CLASSIC PREMIER CLASSIC (A) PREMIER (A)
-------- -------- ------- ------- ----------- -----------
<S> <C> <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 $ 1.000
-------- -------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income... 0.015 0.016 0.030 0.031 0.010 0.031 0.032 0.019 0.021
-------- -------- ------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income... (0.015) (0.016) (0.030) (0.031) (0.010) (0.031) (0.032) (0.019) (0.021)
-------- -------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======= ======= ======= ======= ======= ======= =======
Total Return............. 1.55%(c) 1.60%(c) 3.04% 3.15% 3.12%(d) 3.15% 3.22% 1.95% 2.16%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of pe-
riod (000)............. $ 20,095 $ 70,440 $27,926 $55,429 $17,116 $43,611 $57,640 $60,923 $48,151
Ratio of expenses to av-
erage net assets....... 0.60%(b) 0.50%(b) 0.62% 0.52% 0.68%(b) 0.54% 0.54% 0.57% 0.49%
Ratio of net investment
income to average net
assets................. 3.05%(b) 3.15%(b) 3.00% 3.10% 2.82%(b) 3.11% 3.15% 1.93% 2.12%
Ratio of expenses to av-
erage net assets*...... 0.95%(b) 0.70%(b) 0.97% 0.72% 1.03%(b) 0.74% 0.74% 0.77% 0.78%
Ratio of net investment
income to average net
assets*................ 2.70%(b) 2.95%(b) 2.65% 2.90% 2.47%(b) 2.91% 2.95% 1.73% 1.83%
</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 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) Not annualized.
(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 0.95%.
See notes to financial statements.
-91-
<PAGE>
INVESTMENT ADVISOR
[LOGO OF AMSOUTH APPEARS HERE] [LOGO OF AMSOUTH MUTUAL FUNDS
AmSouth Bank APPEARS HERE]
1901 Sixth Avenue North
Birmingham, AL 35203 SEMI-ANNUAL REPORT
INVESTMENT SUB-ADVISORS January 31, 1998
(Equity Income Fund Only)
Rochhaven Asset Management, LLC
100 First Avenue, Ste. 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
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
Coopers & Lybrand L.L.P.
100 East Broad Street
Columbus, OH 43215
[LOGO OF AMSOUTH APPEARS HERE]
AMSOUTH BANK
INVESTMENT ADVISOR
3/98
