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AmSouth Mutual Funds
ANNUAL REPORT
July 31, 1999
AMSOUTH AmSouth
MUTUAL FUNDS AMSOUTH BANK
Investment Advisor
BISYS Fund Services, Distributor
[LOGO OF AMSOUTH MUTUAL FUNDS APPEARS HERE] [LOGO OF AMSOUTH BANK
APPEARS HERE]
Not FDIC Insured
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Table of Contents
Message From the Chairman and Investment Advisor
Page 1
Report of Independent Accountants
Page 33
Statements of Assets and Liabilities
Page 34
Statements of Operations
Page 38
Statements of Changes in Net Assets
Page 42
Schedules of Portfolio Investments
Page 48
Notes to Financial Statements
Page 94
Financial Highlights
Page 108
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The AmSouth Mutual Funds, like all mutual funds, are
NOT FDIC INSURED nor insured by any other agency and
are not obligations or deposits of, or endorsed or
guaranteed by, AmSouth Bank or any of its
affiliates. Investment products involve investment
risk, including the possible loss of principal.
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Message From the Chairman and Investment Advisor
Dear Shareholders:
We are pleased to send you this annual report for the 12 months ended July 31,
1999, a period full of the soaring volatility that has become customary in
recent years.
It was also a time when two portfolios in our fund family achieved noteworthy
milestones. First, the AmSouth Bond Fund was recognized by The Wall Street
Journal as one of the top 15 funds in its sector--not just once, but for 11
consecutive months through July 1999.
Based on data provided by Lipper Analytical Services, the AmSouth Bond Fund
was a consistent leader in the A-Rated Bond Fund category (for trailing 12-
month performance). In the most recent period that ended July 31, the Fund's
Classic Shares ranked eighth out of more than 159 funds in its peer group./1/
What is truly remarkable about this accomplishment is that the AmSouth Bond
Fund was ranked highly as stated above during both the bull market, which
bonds enjoyed last autumn and into the winter, and the bear market that has
depressed the fixed-income sector in the last six months.
A second achievement that bears mention was that the AmSouth Equity Fund as of
July 31, had portfolio assets under management of $1.03 billion, a testament
to the Fund's long-term performance and service to shareholders.
These feats had a direct bearing on another of our portfolios, the AmSouth
Balanced Fund--which draws upon the AmSouth Equity Fund's style for the stock
portion of its portfolio and follows the AmSouth Bond Fund's lead for its
fixed-income allocation.
Stocks Finish On An Upswing
The summer of 1998 seems like it was a very long time ago, but it was the
start of our latest fiscal year, and it was a treacherous time to be an
investor.
Waves of bad news swept through the markets: Asia was still a depressed
region; Russia defaulted on tens of billions of dollars of government debt; an
enormously leveraged hedge fund, Long-Term Capital Management, threatened to
collapse and take the world's credit stability down with it. The stock market
plummeted.
The Federal Reserve Board's (the Fed's) decision to lower short-term interest
rates not once, but three times in just four months, sparked one of the most
dramatic recoveries ever. Investors rode back into the market on a wave of
liquidity. As had been the case for much of the previous four years, large-cap
growth issues were the biggest winners, along with just about any stock that
had a "dot.com" at the end of its name.
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The bull market kept its momentum into early spring. On March 29, for the
first time ever, the Dow Jones Industrial Average/2/ closed above 10,000, a
near-mythical level. In relatively short order, the 11,000 mark was breached
as well. And as we write this letter in the middle of August, the Dow has
recovered again--this time, from a brief drop this summer--to stand within a
few percentage points of its all-time high.
The individual fund reports that follow will detail the stock market's
gyrations and rotations more fully. But suffice it to say that most equity
investors who stuck with their long-term strategy for the full 12 months, and
remained unshaken by bouts of volatility, are most likely pleased with their
funds' returns.
Where the Fed Led, Bonds Followed
Veteran investors in the fixed-income market know that bond prices are at the
mercy of interest rates; when rates decline, bond prices rise, and vice versa.
This fact was never more evident than during the last 12 months.
The first and last six months of the period were almost mirror images of one
another. Spurred by a flight to quality in the U.S. Treasury market, and then
by the Fed's rate cuts, fixed-income instruments of nearly every stripe rose
sharply through January. Then just as quickly, the tide turned against bonds.
The fear of a global financial disaster abated, making Treasuries less
attractive. Inflation remained mild, but in an almost-perverse display of
looking for trouble where little existed, many observers began to evoke the
specter of rising prices. The Fed did not raise rates immediately, not until
June 30, but just the notion of a rate hike was enough to push rates
significantly higher.
Funds For Every Investor's Needs
Both stocks and bonds sold off modestly in July, the last month of our fiscal
year (though municipal bonds bucked the trend by remaining mostly unchanged).
So where does that leave you, and us, as we begin a new 12-month period?
As we look ahead, we believe bonds are a bit more attractive than stocks, on a
relative basis. That does not mean we think the stock market is troubled, but
rather, that bonds offer a better return on a risk-adjusted basis. In the
first two weeks of August, interest rates have continued to be volatile; the
yield on the bellwether 30-year Treasury bond spiked up to 6.26%, then fell
rapidly below the critical 6% level. It is our feeling that, while interest
rates could dance around for the next few months, the Fed could very well
raise rates a number of times before the end of 1999 bonds should produce
decent returns. Factor in historically low inflation, and the fixed-income
sector could prove to be hospitable.
At the same time, we are not abandoning stocks. Any long-term investor with a
plan that includes an equity allocation should not bail out at the first, or
even
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second, sign of trouble. We remain encouraged by the growth potential of
stocks.
With the addition to our fund family of the AmSouth Select Equity Fund, the
AmSouth Enhanced Market Fund and the AmSouth Institutional Prime Obligations
Fund, we now offer shareholders an impressively diversified array of funds.
This full complement of portfolios, in our opinion, allowed many shareholders
to do well in the markets over the last year, and regardless of future shifts
in the market, this diversification can serve you well in the months and years
ahead.
Sincerely,
/s/ J. DAVID HUBER
J. David Huber
Chairman
AmSouth Mutual Funds
/s/ BRIAN B. SULLIVAN
Brian B. Sullivan
Senior Investment Officer
AmSouth Bank
/1/ The AmSouth Bond Fund (Classic Shares) was ranked 8 out of 159 Corporate A-
Rated Debt Funds for the one-year period, 20 out of 130 funds for the three-
year period, 25 out of 90 funds for the five-year period, and 21 out of 42
funds for the ten-year period, respectively. All rankings are as of July 31,
1999. Lipper rankings are based on total return with dividends and capital
gains reinvested and do not reflect a sales charge.
/2/ The Dow Jones Industrial Average is a price-weighted average based on the
price-only performance of 30 blue-chip stocks (the average is computed by
adding the prices of the 30 stock's splits, stock dividends and
substitutions of stocks).
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The AmSouth Equity Income Fund
The AmSouth Equity Income Fund is subadvised by Rockhaven Asset Management,
LLC and is managed by Christopher Wiles, CFA. President and chief investment
officer of Rockhaven, Mr. Wiles has more than 15 years of investment
management experience. He holds an MBA and a bachelor's degree in finance.
Low Risk, High Income
For the 12 months ended July 31, 1999, the AmSouth Equity Income Fund produced
a total return of 14.17% (Classic Shares at NAV). In comparison, the S&P 500
Stock Index rose 20.20%, and the Lipper Equity Income Fund Index/1/ gained
11.26%.
We provided our shareholders with solid market participation with below-
average risk and above-average income. As of July 31, 1999, the Fund's yield
was 2.82%, more than twice the S&P 500's yield of just 1.26%.
We Made Good Money With Convertibles
In many ways, this was one of the most phenomenal 12-month periods in stock
market history. Last summer, we thought we might be in the throes of a
potentially disastrous, deflationary environment throughout the world. There
was serious trouble in Asia and Russia, with Latin America also looking
vulnerable. Consequently, even though the U.S. economy was strong, the Federal
Reserve acted quickly--lowering short-term interest rates three times in the
latter part of 1998--to stave off a global financial collapse.
In a deflationary environment, it is prudent to hold securities with the
longest duration you can get your hands on. Those long-duration securities
were large-cap growth stocks and, to some degree, Internet stocks. Then all of
a sudden in 1999, the world looked much more stable, and deflationary fears
subsided. Therefore, interest rates began to rise sharply. This turnaround
favored short-duration securities. With regard to stocks, this favored deep-
value stocks.
The Fund participated in the climb from the October 1998 lows to the March
1999 highs. With the abrupt change away from large-cap growth, we gave up some
ground--though not that much.
One significant change in the portfolio during the last 12 months was an
increase in our allocation to convertible securities. Due to an active merger-
and-acquisition environment, we found some very attractive convertible
opportunities. For instance, when Centocor, a biotech company, was acquired by
Johnson & Johnson (0.91% of the Fund's net assets), we found ourselves holding
JNJ convertible (1.42%), which yielded 3.7%. Another example was Level One
Communications, which was taken over by Intel (0.75%). By buying Level One
convertible, which became Intel convertible (0.91%), we were getting
significantly more income than was available through Intel common stock.*
As of July 31, 1999, the Fund's top five holdings were BCE, Inc. (3.04%),
Lincoln National Corp. (2.94%), Nextel STRYPES (2.92%), Skytel/Worldcom
Communications, Inc. (2.85%) and General Electric Co. (2.81%).*
A Blase Market For the Next Few Months
Going forward, we believe there will be many things happening in the next six
months. The main event remains the Year 2000 (Y2K) situation. One factor that
helped the U.S. economy grow robustly in the first seven months of 1999 was a
significant amount of Y2K-related buying of goods before the end of the year.
Many made their purchases early in 1999. Therefore, we expect the economy to
show some signs of slowing in the fourth quarter of 1999, and interest rates
could fall from their relatively high levels. We do not see the stock market
making much of a move either way for the next six months, but we think
conditions could be ripe for an increase in stock prices in the early part of
next year.
/1/The Lipper Equity Income Fund Index is comprised of funds that seek
relatively high current income and growth of income through investing 60% or
more of their portfolios in equities.
* The Fund's portfolio composition is subject to change.
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The AmSouth Equity Income Fund
[THE AMSOUTH EQUITY INCOME FUND APPEARS HERE]
AmSouth Equity AmSouth Equity AmSouth Equity S&P 500 Lipper Equity
Income Fund Income Fund Income Fund Stock Income Fund
Date (Classic Shares)* (Premier Shares) (B Shares)** Index Index
- ---- ----------------- ---------------- -------------- ------- ------------
- -
3/20/97 9,550 10,000 10,000 10,000 10,000
7/97 11,409 11,948 11,421 12,633 11,786
7/98 12,073 12,669 12,142 15,136 12,918
7/99 13,784 14,497 13,915 18,193 14,373
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Average Annual Total Return
- ---------------------------------------------
Since
1 Inception
As of July 31, 1999 Year (3/20/97)
- ---------------------------------------------
Classic* 9.03% 14.54%
- ---------------------------------------------
Premier 14.43% 17.01%
- ---------------------------------------------
B Shares** 8.34% 15.00%
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* Reflects 4.50% sales charge
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 3,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Equity Income Fund is measured against the S&P
500 Stock Index and the Lipper Equity Income Fund Index. The S&P 500 Stock
Index is an unmanaged index generally representative of the U.S. stock market
as a whole. The index does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The Lipper
Equity Income Fund Index, an index that consists of managed funds, 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 effect, performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
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The AmSouth Equity Fund
The AmSouth Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more
than 26 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
We Benefited From a Return To Value
For the 12 months ended July 31, 1999, the AmSouth Equity Fund produced a
total return of 14.92% (Classic Shares at NAV). In comparison, the S&P 500
Stock Index rose 20.20%, while the Lipper Capital Appreciation Fund Index/1/
gained 20.76%.
Looking at our fiscal year as a whole, we had two very good periods. First,
the Fund performed well during the sharp market decline in August 1998; then
during the second calendar quarter of 1999, again turning in strong numbers
when the market became much broader and began to reward our value style of
investing.
In the month of April, we saw a sudden broadening of investor interest--some
of which had to do with the significant signs of improvement in many foreign
economies that had lagged earlier in the year. There was a rapid rotation in
the second calendar quarter of 1999 and in our Fund.
We continued to perform strongly during periods when the market was sloppy,
which is what a value-oriented fund is structured to do.
Energy and Shelter: Our Strong Suits
In particular, we benefited from our holdings in energy and a sector we call
"shelter," which includes forest products and paper. With regard to energy,
many analysts did not believe that the Organization of Petroleum Exporting
Countries (OPEC) members would abide by an agreement to limit production; OPEC
has a long history of not holding together. But what was different this time
was that, due to historically low oil prices, OPEC countries were feeling true
economic pain. For the first time in four or five years, there not only was a
political reason for holding true to an agreement, there also were compelling
economic reasons. OPEC simply needed higher oil prices.
Consequently, production among OPEC nations shrunk by a couple of million
barrels a day. In a commodities market, when you suddenly go from a slight
amount of surplus to a position where inventories are tight, you can have some
dramatic price reactions--which is what happened.
We believe a similar scenario will unfold in forest products over the next
couple of quarters. Some of our favorite paper holdings include Weyerhaeuser
Co. (2.29% of the Fund's net assets), Willamette Industries, Inc. (1.51%),
International Paper Co. (2.35%) and Champion International Corp. (0.25%).*
We are also fond of selected stocks in the consumer nondurables sector,
including American Greetings Corp. (2.08%), Crown Cork & Seal, Inc. (0.70%)
and Dole Food, Inc. (0.42%).*
We Anticipate a Rise In Certain Commodities
With overweightings in energy and shelter, the portfolio is structured to
benefit from a continuation of moderate economic growth in the United States
and abroad. Despite the run-up in oil stocks, for example, we do not believe
we have yet seen a top. Even though the price of energy has risen
significantly, that has only happened in the last quarter, and the bottom
lines of many companies in the sector have not yet fully reflected those price
increases. We have seen a significant tightening in refining capacity, and the
oil squeeze could get even tighter.
As of July 31, 1999, the Fund's top five holdings were Gannett Co., Inc.
(2.74%), Marsh & McLennan Co., Inc. (2.62%), Texaco (2.58%), Newell Rubbermaid
(2.57%) and Kerr McGee Corp. (2.52%).*
/1/Lipper Capital Appreciation Fund Index is comprised of funds that seek
maximum capital appreciation, frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The funds in the index may take large cash positions.
* The Fund's portfolio composition is subject to change.
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The AmSouth Equity Fund
[THE AMSOUTH EQUITY FUND APPEARS HERE]
AmSouth AmSouth
Equity Equity AmSouth
Fund Fund Equity S&P 500 Lipper Capital
(Classic (Premier Fund Stock Appreciation
Date Shares)* Shares) (B Shares) Index Index
- ------ --------- -------- ---------- ------- --------------
7/89 9,550 10,000 10,000 10,000 10,000
7/90 9,707 10,165 10,165 10,647 10,317
7/91 10,530 11,026 11,026 12,007 11,602
7/92 11,891 12,451 12,451 13,539 12,843
7/93 13,533 14,170 14,170 14,713 14,762
7/94 14,603 15,291 15,291 15,477 15,323
7/95 17,415 18,236 18,235 19,509 19,541
7/96 19,344 20,257 20,256 22,739 21,192
7/97 27,536 28,838 28,834 34,590 28,192
7/98 30,935 32,430 32,195 41,282 31,934
7/99 35,547 37,433 36,711 49,623 38,562
For performances purposes the above graph has not been adjusted for CDSC
charges.
- ---------------------------------------------
Average Annual Total Return
- ---------------------------------------------
As of 1 5 10
July 31, 1999 Year Year Year
- ---------------------------------------------
Classic* 9.74% 18.38% 13.53%
- ---------------------------------------------
Premier 15.43% 19.61% 14.11%
- ---------------------------------------------
B Shares** 9.03% 18.95% 13.89%
- ---------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 3,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Equity Fund is measured against the S&P 500
Stock Index and the Lipper Capital Appreciation Funds Index. The S&P 500 Stock
Index is an unmanaged index generally representative of the U.S. stock market
as a whole. The index does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The Lipper
Capital Appreciation Funds Index is an index that consists of managed funds.
The Lipper Capital Appreciation Funds 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
effect, performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
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The AmSouth Enhanced Market Fund
The AmSouth Enhanced Market Fund is subadvised by OakBrook Investments, LLC
and managed by Neil Wright, Janna Sampson and Peter Jankovskis. Mr. Wright has
19 years of investment experience and received his Ph.D. in economics from the
Massachusetts Institute of Technology. Ms. Sampson has 18 years of investment
management experience and has a master's degree in economics from Georgia
State University. Mr. Jankovskis has seven years of investment management
experience and holds a Ph.D. in economics from the University of California at
Santa Barbara.
The Fund Outperformed the Market
The AmSouth Enhanced Market Fund commenced operations on September 1, 1998.
For the period ended July 31, 1999, which represents nearly 11 months of
performance, the Fund produced a total return of 39.93% (Classic Shares at
NAV). In comparison, the S&P 500 Index rose 35.29%.
The Federal Reserve Board's (the Fed) three interest-rate cuts in the last few
months of 1998 pumped liquidity into the market and caused a tremendous surge
in stock prices. However, the benefits of those rate cuts were not evenly
distributed. From November 1998 through January 1999, growth stocks
outperformed value stocks by roughly 20%.
What few people realize is that there was an even greater divergence between
the performance of volatile stocks and more stable stocks. Thanks to the Fed's
actions, these volatile stocks suddenly became very attractive. The difference
in returns between stocks in these two groups during the same November 1998
through January 1999 period was more than 40%, with volatile stocks doing
better.
We define a "volatile stock" as one whose stock price tends to change by a
large degree, up or down, from month to month. To be included in this group, a
stock's average percentage change in its price over the past three years must
rank it among the 100 most-volatile stocks in the S&P 500. A "stable stock" is
one that ranks among the 100 least-volatile, in terms of its average change in
price.
The Enhanced Market Fund is carefully balanced to make sure its allocation
compares to the S&P 500's along the lines of capitalization, in value versus
growth and also in terms of stability versus volatility. Because of these
strong risk controls, our ability to beat the S&P 500 was not influenced very
much by the strong performance of volatile stocks or any other group. The risk
controls worked as designed, allowing the strategy's strength in stock
selection to shine through. The Fund did very well during the time when
volatile stocks were in favor. Since the end of January, the Fund has
continued to do well relative to its benchmark.
A Wide Range Of Successes
We found good stocks in a number of sectors. Our winners ranged from mega-cap
technology powerhouse IBM Corp. (1.99% of the Fund's net assets) to smaller-
cap issues such as King World Productions (0.04%) and Navistar International
(0.05%). The Fund also benefited from positions in oil refiner Atlantic
Richfield Co. (0.47%) and financial service provider American Express
(0.64%).*
A Challenging Climate In the Months Ahead
It is our belief that over the next six months, the market could be pretty
choppy. The Fed will probably raise rates once more before the end of 1999.
Regardless of what the Fed chooses to do, if the yield on the 30-year Treasury
bond stays above 6.00%, that is going to put some pressure on both corporate
earnings and the valuations of the companies that led the last market rally.
As of July 31, 1999, the Fund's top five holdings were Microsoft Corp.
(3.85%), General Electric Co. (3.20%), Intel Corp. (2.20%), IBM Corp. (1.99%)
and Lucent Technologies, Inc. (1.82%).*
* The Fund's portfolio composition is subject to change.
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The AmSouth Enhanced Market Fund
[THE AMSOUTH ENHANCED MARKET FUND APPEARS HERE]
AmSouth Enhanced AmSouth Enhanced AmSouth Enhanced
Market Fund Market Fund Market Fund S&P 500
Date (Classic Shares)* (Premier Shares) (B Shares)** Stock Index
- ---- ----------------- ----------------- ---------------- -----------
9/1/98 9,550 10,000 10,000 10,000
9/98 10,154 10,631 10,123 10,641
10/98 10,955 11,470 10,947 11,506
11/98 11,656 12,204 11,673 12,203
12/98 12,258 12,834 12,299 12,907
1/99 12,757 13,358 12,805 13,446
7/99 13,365 14,010 13,390 16,162
- ----------------------------------
Aggregate Total Return
- ----------------------------------
Since
As of Inception
July 31, 1999 (9/1/98)
- ----------------------------------
Classic* 33.65%
- ----------------------------------
Premier 40.10%
- ----------------------------------
B Shares** 33.90%
- ----------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Premier Shares commenced operations on December 11, 1998. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 2,
1998, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Enhanced Market Fund is measured against the S&P
500 Stock Index. The S&P 500 Stock Index is an unmanaged index generally
representative of the U.S. stock market as a whole. The index does not reflect
the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. During the period shown, the Fund waived
fees for various expenses. Had these waivers not been in effect, performance
quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
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The AmSouth Capital Growth Fund
The AmSouth Capital Growth Fund is subadvised by Peachtree Asset Management
and managed by Dennis Johnson, CFA. President and Chief Investment Officer of
Peachtree Asset Management, Mr. Johnson has more than 18 years of investment
management experience. He holds a master of science degree in finance and a
bachelor's degree in economics.
Solid Performance In the Face Of Volatility
For the 12 months ended July 31, 1999, the Fund produced a total return of
21.76% (Classic Shares at NAV). In comparison, the S&P 500 Stock Index rose
20.20%.
The entire period was marked by bouts of volatility and windows of
opportunity. As long-term investors, we rode through the volatility and took
advantage of numerous opportunities--especially in such sectors as consumer
cyclicals, consumer staples, financial services, health care, technology and
telecommunications. We had either average or above-average exposure in all of
these sectors.
Returns Greater In Stocks, Not Cash
We were fully invested throughout the period, which was very important to our
performance. Stocks provided much greater returns than cash and cash-
equivalent instruments. By minimizing cash, we enabled our shareholders to
fully participate in the market's above-average performance.
The second factor that was helpful was being invested in sectors in the market
that performed very well, as noted above. Being overweighted in the right
sectors was a result of our disciplined investment process. A third positive
factor was judicious, individual security selection. We benefited from our
holdings in Apple Computer, Inc. (1.61% of the Fund's net assets), Microsoft
Corp. (3.64%), General Electric Co. (3.39%), Home Depot, Inc. (1.95%), Applied
Materials, Inc. (2.73%), Lucent Technologies, Inc. (2.37%), Scientific
Atlanta, Inc. (2.67%) and Tyco International (3.51%).*
What do each of these companies have in common? They all exhibit above-average
rates of earnings growth, dominant market positions and valuations that our
research indicates are not fully reflective of these strong earnings trends.
We have a well-defined approach to looking at the growth characteristics of
companies--scrutinizing their earnings potential and cash flow. Therefore,
regardless of the volatility that certain stocks may exhibit in the
marketplace (based on changes in investor perceptions about fundamentals), we
can remain firm in our convictions about individual issues.
We validate our analysis with fundamental and quantitative research, and until
we believe that a company's underlying numbers have changed for the worse, we
do not make changes in the portfolio. This approach allows us to not be scared
off by periodic volatility; we always know why we are in a stock and why we
want to stay with a stock, despite that volatility.
The Stock Market Is the Place To Be
We continue to be optimistic about stocks. We would not want to assume that
absolute returns, going forward, will be comparable to the returns we have
experienced over the last 12 months. Nonetheless, we believe equity returns
will be acceptable, and not far off historical norms. We believe sectors that
offer opportunities for above-average performance include technology, health
care, consumer cyclicals and energy. Energy is particularly appealing. We
believe there is a profit recovery under way in both crude oil and natural gas
that is not fully reflected in current valuations.
As of July 31, 1999, the Fund's top five holdings were Microsoft Corp.
(3.64%), Tyco International (3.51%), General Electric Co. (3.39%), Nextel
Communications, Inc. (3.11%) and Applied Materials, Inc. (2.73%).*
*The Fund's portfolio composition is subject to change.
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The AmSouth Capital Growth Fund
[THE AMSOUTH CAPITAL GROWTH FUND APPEARS HERE]
AmSouth Capital AmSouth Capital AmSouth Capital
Growth Fund Growth Fund Growth Fund S&P 500
Date (Classic Shares)* (Premier Shares) (B Shares)** Stock Index
- ---- ----------------- ---------------- --------------- -----------
8/3/97 9,550 10,000 10,000 10,000
7/98 11,098 11,650 11,040 12,637
7/99 13,514 14,219 13,558 15,190
- --------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------
Since
As of 1 Inception
July 31, 1999 Year (8/3/97)
- --------------------------------------------------------
Classic Shares* 16.26% 16.34%
- --------------------------------------------------------
Premier Shares 22.05% 19.36%
- --------------------------------------------------------
B Shares** 15.96% 16.54%
- --------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 3,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Capital Growth Fund is measured against the S&P
500 Stock Index. The S&P 500 Stock Index is an unmanaged index generally
representative of the U.S. stock market as a whole. The index does not reflect
the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. During the period shown, the Fund waived
fees for various expenses. Had these waivers not been in effect, performance
quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-12-
<PAGE>
The AmSouth Select Equity Fund
The AmSouth Select Equity Fund is subadvised by OakBrook Investments, LLC and
managed by Neil Wright, Janna Sampson and Peter Jankovskis. Mr. Wright has 19
years of investment experience and received his Ph.D. in economics from the
Massachusetts Institute of Technology. Ms. Sampson has 18 years of investment
management experience and has a master's degree in economics from Georgia
State University. Mr. Jankovskis has seven years of investment management
experience and holds a Ph.D. in economics from the University of California at
Santa Barbara.
A Marked Difference Between Volatility and Stability
The AmSouth Select Equity Fund commenced operations on September 1, 1998. For
the period ended, July 31, 1999, which represents nearly 11 months of
performance, the Fund produced a total return of 19.44% (Classic Shares at
NAV). In comparison, the S&P 500 Stock Index rose 35.29%.
The Federal Reserve Board's (the Fed's) three interest-rate cuts in the last
few months of 1998 pumped liquidity into the market and caused a tremendous
surge in stock prices. However, the benefits of those rate cuts were not
distributed evenly.
What few people realize is that there was an even greater divergence between
the performance of volatile stocks and more stable stocks. Thanks to the Fed's
actions, these volatile stocks suddenly became attractive. The difference in
returns between stocks in these two groups during the same November 1998
through January 1999 period was more than 40%, with volatile stocks doing
better than stable ones.
We define a "volatile stock" as one whose stock price tends to change by a
large degree, up or down, from month to month. To be included in this group, a
stock's average percentage change in its price over the past three years must
rank it among the 100 most-volatile stocks in the S&P 500. A "stable stock" is
one that ranks among the 100 least-volatile in terms of its average change in
price.
The AmSouth Select Equity Fund, by its nature, favors more stable stocks, and
this caused the portfolio to underperform its benchmark during the November-
January period. However, since the end of January and through the end of June,
"stability" was the place to be, and the Fund outperformed its benchmark.
Unfortunately, in July, one of the Fund's key holdings, Waste Management
(3.59% of the Fund's net assets), announced disappointing news, and the
subsequent drop in the stock's price dragged down the Fund's overall
performance.*
We Did Well With Food and Tax Preparation Names
The Fund did have some compelling success stories during the period. One issue
that did particularly well for us in the last few months was SYSCO Corp.
(4.86%), a distributor of food and paper products to restaurants. SYSCO is the
leader in its field, and three times larger than any of its competitors.
Despite its dominance and cost advantage, SYSCO's market share is only 12%
nationwide--which means the company has tremendous growth opportunities.
Another good story is H&R Block, Inc. (6.60%), an income tax-preparation
company. The peak tax period is past us, but trends are still good; and we are
confident the stock will continue to outperform. We are also fond of Hershey
Foods Corp. (3.87%), the leading North American manufacturer of quality
chocolate, whose stock was bruised earlier in the year, when the company
reported disappointing earnings.*
A Bumpy Ride Ahead
It is our belief that over the next six months, the market could be pretty
choppy. The Fed will probably raise rates once more before the end of 1999.
Regardless of what the Fed chooses to do, if the yield on the 30-year Treasury
bond stays above 6.00%, that will put pressure on both corporate earnings and
the valuations of the companies that led the last market rally. The Fund's
emphasis on more stable holdings should serve us well in such an environment.
As of July 31, 1999, the Fund's top five holdings were Hubbell, Inc. (10.71%),
Emerson Electric Co. (10.27%), Bristol-Myers Squibb Co. (8.20%), H&R Block,
Inc. (6.60%) and McDonald's Corp. (5.44%).*
* The Fund's portfolio composition is subject to change.
-13-
<PAGE>
The AmSouth Select Equity Fund
[THE AMSOUTH SELECT EQUITY FUND APPEARS HERE]
AmSouth Select AmSouth Select AmSouth Select S&P 500
Equity Fund Equity Fund Equity Fund Stock
(Classic Shares)* (Premier Shares) (B Shares)** Index
----------------- ---------------- -------------- -------
9/1/98 9,550 10,000 10,000 10,000
9/98 10,032 10,504 10,000 10,641
10/98 10,885 11,396 10,890 11,506
11/98 11,168 11,693 11,170 12,203
12/98 11,519 12,051 11,526 12,907
1/99 11,405 11,940 11,395 13,446
7/99 11,408 11,962 11,359 16,162
- ------------------------------------
Aggregate Total Return
- ------------------------------------
Since
As of Inception
July 31, 1999 (9/1/98)
- ------------------------------------
Classic* 14.08%
- ------------------------------------
Premier 19.62%
- ------------------------------------
B Shares** 13.59%
- ------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Premier Shares commenced operations on December 3, 1998. The performance
figures for Premier Shares for periods prior to such date represent the
performance for Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 2,
1998, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Select Equity Fund is measured against the S&P
500 Stock Index. The S&P 500 Stock Index is an unmanaged index generally
representative of the U.S. stock market as a whole. The index does not reflect
the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. During the period shown, the Fund waived
fees for various expenses. Had these waivers not been in effect, performance
quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-14-
<PAGE>
The AmSouth Regional Equity Fund+
The AmSouth Regional Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has
more than 26 years of investment experience as an analyst and portfolio
manager. He holds an MBA in finance and a bachelor's degree in economics.
A Rough Start, a Firm Recovery
For the 12 months ended July 31, 1999, the AmSouth Regional Equity Fund
produced a total return of -9.85% (Classic Shares at NAV). In comparison, the
S&P 500 Index rose 20.20%, while the Lipper Capital Appreciation Fund Index/1/
returned 20.76%.
The Fund's performance suffered during the first part of the period, due to
the narrowness of the market and the fact that the groups we embrace, and the
geographic requirements of the Fund's investment objective, worked against us.
However, in the second calendar quarter of 1999, circumstances changed
dramatically. Our style of investing came back into favor, and the Fund
recovered much of the ground it had lost earlier. Throughout the period, the
Southeast remained a healthy economic region, with growth continuing at a pace
above the national average.
A Rare Venture Into Energy Proved Profitable
We had a number of stocks that did very well, especially during the Fund's
recovery period. Fort James Corp. (3.11% of the Fund's net assets), one of our
favorite paper companies, had a sharp price increase. Scientific Atlanta, Inc.
(1.77%) also came back very strongly; the stock had dropped early on, though
not for any reasons that we thought to be valid. A couple of the energy stocks
in the portfolio were strong performers, including Offshore Logistics, Inc.
(2.43%), Mobil Corp. (1.24%) and Schlumberger, Ltd. (1.47%). Although the
latter two would not ordinarily be identified as Southeast companies (we do
not include Texas), they each bought firms based in the Southeast--which
allowed us to buy their shares. Since it is difficult to get energy exposure
in the region, we have continued to hold these names.*
Any time you are in a geographic region that does not necessarily reflect the
overall balance of the nation as a whole and the broader stock market, a key
factor in determining your fund's relative performance is the performance of
the sectors that can be found in your region. For example, our portfolio has
few technology names. So, when the technology sector declines, as it did
between April and June, the Fund's relative performance is enhanced.
The Southeast Remains An Attractive Region
One key advantage of a regional fund such as ours is that shareholders can
benefit from the fund manager's acute and in-depth knowledge about a
relatively narrow segment of the market. We are based in the Southeast and
have established close and reliable contacts throughout the region; we base
our investment decisions on decades of experience in this region. While it is
not possible to predict exactly when a particular region will drift in or out
of favor, the Southeast has produced some remarkable and profitable growth in
the past. We believe the Fund remains positioned to take full advantage of
such opportunities when they present themselves.
As of July 31, 1999, the Fund's top five holdings were HEALTHSOUTH Corp.
(5.06%), Bank of America Corp. (3.23%), Fort James Corp. (3.11%), Health
Management Associates, Inc. (3.11%) and Modis Professional Services (3.08%).*
+ Regional funds may be subject to additional risk, since the companies they
invest in are located in one geographical location. Small capitalization
funds carry additional risk and volatility.
/1/The Lipper Capital Appreciation Funds Index is comprised of funds that seek
maximum capital appreciation, frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The funds in the index may take large cash positions.
* The Fund's portfolio composition is subject to change.
-15-
<PAGE>
The AmSouth Regional Equity Fund+
[THE AMSOUTH REGIONAL EQUITY FUND APPEARS HERE]
AmSouth AmSouth
Regional Regional AmSouth
Equity Fund Equity Fund Regional S&P 500 Lipper Capital
(Classic (Premier Equity Fund Stock Appreciation
Date Shares)* Shares) (B Shares) Index Index
- ---- ----------- ----------- ----------- ------- --------------
7/89 9,550 10,000 10,000 10,000 10,000
7/90 10,449 10,940 10,940 10,647 10,317
7/91 11,757 12,311 12,311 12,007 11,602
7/92 14,186 14,853 14,853 13,539 12,843
7/93 16,388 17,160 17,160 14,713 14,782
7/94 17,188 17,998 17,998 15,477 15,323
7/95 19,783 20,713 20,713 19,509 19,541
7/96 22,376 23,427 23,427 22,739 21,192
7/97 31,107 32,568 32,568 34,590 28,192
7/98 31,012 32,527 32,261 41,282 31,934
7/99 27,958 29,411 28,859 49,823 38,562
For performance purposes the above graph has not been adjusted for CDSC charges.
- ---------------------------------------------
Average Annual Total Return
- ---------------------------------------------
As of 1 5 10
July 31, 1999 Year Year Year
- ---------------------------------------------
Classic* -13.90% 9.20% 10.83%
- ---------------------------------------------
Premier -9.57% 10.32% 11.39%
- ---------------------------------------------
B Shares** -14.73% 9.63% 11.18%
- ---------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 3,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Regional Equity Fund is measured against the S&P
500 Stock Index and the Lipper Capital Appreciation Funds Index. The S&P 500
Stock Index is an unmanaged index generally representative of the U.S. stock
market as a whole. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
Lipper Capital Appreciation Funds Index is an index that consists of managed
funds. The Capital Appreciation Funds 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
effect, performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-16-
<PAGE>
The AmSouth Small Cap Fund+
The AmSouth Small Cap Fund is subadvised by Sawgrass Asset Management, LLC and
is managed by Dean McQuiddy, CFA. A principal of Sawgrass, Mr. McQuiddy has
more than 16 years of investment management experience. He received his
bachelor's degree in finance from the University of Florida.
Tough Times In Small Caps
For the 12 months ended July 31, 1999, the Fund produced a total return of -
8.10% (Classic Shares at NAV). In comparison, the Russell 2000 Growth Index
rose 14.51%.
Looking at the entire period from beginning to end, the equity markets dove up
and down like a roller coaster. The period began with stocks going into a
tailspin, hitting bottom in early October 1998. Then, buoyed by three
successive interest-rate cuts by the Federal Reserve Board, many sectors
surged higher--though the small-cap arena in which we operate did not fully
participate in the recovery. The rally continued into the beginning of April
1999, when small caps experienced what we call a "capitulation bottom." We
believe many small-cap funds--not including this one, fortunately--were forced
to sell a portion of their holdings to raise cash for redemptions, a situation
that drove small-cap stock prices even lower.
Then, quite abruptly, investor bias shifted away from large-cap growth stocks
and toward cyclical sectors. As sentiment broadened, the Fund experienced a
solid rebound throughout April, May, June and July.
However for the period as a whole, the Fund underperformed its benchmark, the
Russell 2000 Growth Index. The primary reason was the huge impact Internet-
related stocks had on the index--many issues in the sector rose an astonishing
400% to 500%, and the virtual absence of these stocks in our portfolio had an
impact on Fund performance. One of the disciplines we follow is the
requirement that all stocks we buy have current earnings. That is part of our
risk-control approach. However, the vast majority of Internet stocks do not
have current earnings.
Not only do these stocks not have earnings, but they lack many of the
characteristics we find attractive, including above-market sales, earnings
growth rates that are rising, and estimates of future earnings, or valuation
multiples that we consider to be reasonable.
We Scored With Fiber Optic Cable and Handbags
We have talked in the past about our stocks being very "cheap" relative to the
overall market--at the end of the period, the average holding in our portfolio
was selling for just 18 times this year's earnings, while the market as a
whole was selling for close to 30 times earnings--and our strategy produced a
number of spectacular winners. Dycom (2.19% of the Fund's net assets), a
company that lays the fiber optic cable that brings the Internet into people's
homes, more than doubled in price. Among retailers, we profited from our
investment in Fossil (2.80%)--a manufacturer of fashionable watches, belts and
handbags--which grew in sales and earnings very strongly, and was up 130% for
the period. And going forward, we are optimistic about one of our newer
holdings, Forest Oil (1.66%). The energy sector has done very well this year,
and we feel Forest has a marvelous position in the oil-and-gas exploration
segment of the industry.*
Attractive Circumstances For Small Caps
Going forward, we believe we are set up for a very nice rally in smaller
stocks. They are selling at tremendous discounts to the overall market, really
at historical lows. Normally, these high-growth stocks are priced at a premium
to the market, not at a discount. The other essential element is that the
market has begun broadening out, and investors are finally paying attention to
this sector. We have endured a very long bear market for small-company shares,
but it appears that liquidity has returned.
As of July 31, 1999, the Fund's top five holdings were Commscope, Inc.
(3.47%), Antec Corp. (3.03%), Priority Healthcare (3.02%), American
Freightways (2.93%) and Copart, Inc. (2.92%).*
+ Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility
than average.
* The Fund's portfolio composition is subject to change.
-17-
<PAGE>
The AmSouth Small Cap Fund+
[THE AMSOUTH SMALL CAP FUND APPEARS HERE]
AmSouth Small AmSouth Small AmSouth Small
Cap Fund Cap Fund Cap Fund Russell 2000
Date (Classic Shares)* (Premier Shares) (B Shares)** Growth Index
- ------- ---------------- ---------------- -------------- ------------
3/2/98 9,550 10,000 10,000 10,000
7/98 8,756 9,152 8,655 8,639
7/99 8,047 8,441 7,978 9,893
- --------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------
Since
As of 1 Inception
July 31, 1999 Year (3/2/98)
- --------------------------------------------------------
Classic Shares* -12.23% -14.27%
- --------------------------------------------------------
Premier Shares -7.76% -11.30%
- --------------------------------------------------------
B Shares** -13.34% -14.77%
- --------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Classic Shares commenced operations on March 3, 1998. The performance figures
for Classic Shares prior to such date represent the performance of Premier
Shares of the Fund.
The performance of the AmSouth Small Cap Fund is measured against the Russell
2000 Growth Index, an unmanaged index generally representative of domestically
traded common stocks of small to mid-sized companies. The index does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance does 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 effect,
performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-18-
<PAGE>
The AmSouth Balanced Fund
The AmSouth Balanced Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more
than 26 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
Our "Balance" Provided Both Performance and Stability
For the 12 months ended July 31, 1999, the AmSouth Balanced Fund produced a
total return of 9.40% (Classic Shares at NAV). In comparison, the S&P 500
Stock Index rose 20.20%, while the Lehman Brothers Government/Corporate Bond
Index gained 2.33%. For the same period, the Lipper Balanced Fund Index/1/
moved up 10.75%.
Stocks: Big Gain In Energy and "Shelter"
The equity portion of the portfolio did well during periods when market tends
were not well established--times when judicious stock picking was very
advantageous. During the second quarter of 1999, investor sentiment turned to
the type of value stocks we favor.
In particular, we benefited from our holdings in energy and a sector we call
"shelter," which includes forest products and paper. Concerning energy, many
analysts did not believe that OPEC members would abide by an agreement to
limit production; OPEC has a long history of not holding together. However,
what was different this time was that, due to historically low oil prices,
OPEC countries were feeling true economic pain. For the first time in four or
five years, there not only was a political reason for holding true to an
agreement, there also were compelling economic reasons. OPEC simply needed
higher oil prices.
We believe a similar scenario will unfold in forest products over the next
couple of quarters, and we are positioned to take advantage of such a
situation.
Bonds: We Actively Responded To Interest-Rate Moves
The fixed-income portion of the portfolio moved up strongly during the first
six months of the period, during which time interest rates fell sharply.
However, in January, it seemed to us that rates had fallen so far, so quickly,
that a further, significant drop appeared unlikely. Consequently we shortened
the portfolio's average maturity and duration considerably.
At the same time and even prior, spreads on corporate bonds had widened. We
decided to swap the interest-rate risk inherent in long-term Treasuries for
the credit risk of short-term corporate bonds--without diminishing our yield
to maturity. At the same yield, we were trading a greater risk for a smaller
risk. Therefore, when rates reversed direction and headed back up (driving
bond prices lower), our shareholders' capital was protected somewhat.
Since February, we have increased our average maturity and duration. What we
have seen in the last six months is that agency paper and mortgage-backed
securities have outperformed Treasuries. Our buying emphasis in recent months
has been on improving the quality of the portfolio and pushing our maturity
and duration out longer.
As of July 31, 1999, the fixed-income securities within the Fund maintained an
average credit quality of AAA, with an average maturity of 9.05 years.
Bonds Offer More Relative Value
As of July 31, 1999, the allocation of the portfolio indicated a slight bias
toward bonds. Having less than 50% of our assets in stocks is a little bearish
for us, but does not reflect that we feel particularly pessimistic toward
equities; we do not anticipate a bear market. Rather, when we examine the
risk/reward characteristics of both asset classes, we feel that bonds look a
bit more attractive on a relative basis.
As of July 31, 1999, the Fund's top five equity holdings were Washington
Mutual, Inc. (1.38% ), Engelhard Corp. (1.38%), Texaco, Inc. (1.34%),
Cabeltron Systems, Inc. (1.33%) and Kerr-McGee Corp. (1.24%).*
/1/The Lipper Balanced Fund Index is comprised of 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 is
approximately 60%/40% but may vary.
* The Fund's portfolio composition is subject to change.
-19-
<PAGE>
The AmSouth Balanced Fund
[THE AMSOUTH BALANCED FUND APPEARS HERE]
Lehman
AmSouth AmSouth AmSouth Brothers Lipper
Balanced Balanced Balanced S&P 500 Government/ Balanced
Fund (Classic Fund (Premier Fund (B Stock Corporate Fund
Date Shares)* Shares) Shares)** Index Bond Index Index
- ---- ------------- ------------- --------- ------- ----------- -------
- -
12/19/91 9,550 10,000 10,000 10,000 10,000 10,000
7/92 10,861 11,371 10,871 10,337 10,724 11,117
7/93 12,106 12,675 12,275 11,233 11,907 12,400
7/94 12,727 13,325 13,025 11,816 11,892 12,731
7/95 14,670 15,360 15,060 14,895 13,095 14,685
7/96 15,897 16,645 16,445 17,360 13,518 16,087
7/97 20,097 21,043 20,943 26,409 15,482 21,023
7/98 20,846 21,836 21,653 27,363 16,275 21,626
7/98 22,003 23,076 22,873 31,518 16,730 23,037
7/99 24,070 25,324 24,854 37,885 17,120 25,513
For performance purposes the above graph has not been adjusted for CDSC charges.
- --------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------
Since
As of 1 5 Inception
July 31, 1999 Year Year (12/19/91)
- --------------------------------------------------------
Classic* 4.45% 12.55% 12.22%
- --------------------------------------------------------
Premier 9.74% 13.71% 12.97%
- --------------------------------------------------------
B Shares** 3.74% 13.04% 12.70%
- --------------------------------------------------------
* Reflects 4.50% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 3,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
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 as a whole; 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
Stock Index and the Lehman Brothers Government/Corporate Bond Index do not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The Lipper Balanced Fund Index, a managed
index, and the Fund's performance do reflect the deduction of fees for these
value-added services. During the period shown, the Fund waived fees for various
expenses. Had these waivers not been in effect, performance quoted would have
been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-20-
<PAGE>
The AmSouth Limited Maturity Fund
The AmSouth Limited Maturity Fund is managed by John Boston, CFA. Mr. Boston,
Senior Vice President of AmSouth Bank, has more than 10 years of experience as
a fixed-income manager. He holds a bachelor's degree in economics.
Our Short Orientation Led To Outperformance
For the 12 months ended July 31, 1999, the AmSouth Limited Maturity Fund
produced a total return of 4.01% (Classic Shares at NAV). In comparison, the
Merrill Lynch 1-5-Year Government/Corporate Bond Index rose 2.33%, and the
Lipper Short-Term Investment Grade Debt Index/1/ gained 3.84%.
With volatility and credit concerns rampant in the bond market during much of
the period, our shorter maturity and emphasis on quality were the keys to our
relatively high returns and our significant outperformance relative to the
Lipper benchmark. Further, continued low inflation resulted in inflation-
adjusted returns that were generous by historical standards.
The defensive characteristics of our portfolio enabled the Fund to hold up
better than many longer-maturity funds during the last six months of the
period, when skyrocketing interest rates ate away at the value of many
portfolios (higher rates lead to lower bond prices).
Upside Gains, Downside Protection
As interest rates fell during the first six months of the period, the Fund
showed a profit. Concurrently, we allowed the portfolio's average maturity to
shorten. When rates turned around abruptly and began climbing higher, the
Fund's shorter-than-average maturity preserved shareholder value. At that
point, we felt it was prudent to begin allowing the portfolio's maturity to
lengthen again, in order to be prepared to take advantage of any future
decline in rates.
As of July 31, 1999, approximately 80% of the portfolio's net assets was
invested in high-quality corporates, with the remainder invested in Treasuries
and agencies. Our allocation to corporate paper has fallen slightly over the
last six months, as we have been buying longer-term Treasuries in order to
extend the portfolio's maturity structure.*
As of July 31, 1999, the Fund's average maturity was 2.7 years, up from 2.5
years six months earlier (but still lower than 2.9 years a year ago). The
Fund's credit quality was AA.
We Are Positioned For Neutral-To-Lower Rates
We believe that interest rates have reached the upper end of their near-term
band and should remain level or begin to fall again. With that in mind, we
have extended the Fund's average maturity. At current levels, the Fund is
providing shareholders with productive yields. If rates do fall--and we think
this is probably six to 12 months down the road--we should realize capital
gain profits that will be passed along to our investors.
/1/The Lipper Short-Term Investment Grade Debt Index is comprised of funds
that invest at least 65% of their assets in investment-grade debt issues
(rated in the top four grades) with dollar-weighted average maturities of
one to five years.
*The Fund's portfolio composition is subject to change.
-21-
<PAGE>
The AmSouth Limited Maturity Fund
[THE AMSOUTH LIMITED MATURITY FUND APPEARS HERE]
AmSouth AmSouth
Limited Limited AmSouth Merrill Lynch
Maturity Maturity Limited 1-5 Year Lipper Short
Fund Fund Maturity Government/ Investment
(Classic (Premier Fund Corporate Grade Debt
Date Shares)* Shares) (B Shares) Bond Index Index
- ---- --------- -------- ---------- ------------- ------------
7/31/89 9,800 10,000 10,000 10,000 10,000
7/90 10,252 10,879 10,679 10,765 10,618
7/91 11,178 11,644 11,644 11,857 11,590
7/92 12,459 12,978 12,978 13,330 13,165
7/93 13,296 13,850 13,850 14,279 14,258
7/94 13,398 13,957 13,957 14,533 14,306
7/95 14,422 15,024 15,024 15,697 15,351
7/96 15,102 15,732 15,732 16,548 16,130
7/97 16,197 16,872 16,872 17,877 17,377
7/98 17,159 17,892 17,785 19,029 18,401
7/99 17,847 18,631 18,501 19,906 19,030
For performance purposes the above graph has not been adjusted for CDSC charges.
- ------------------------------------------
Average Annual Total Return
- ------------------------------------------
As of 1 5 10
July 31, 1999 Year Year Year
- ------------------------------------------
Classic* -0.11% 5.03% 5.97%
- ------------------------------------------
Premier 4.14% 5.95% 6.42%
- ------------------------------------------
B Shares** -1.42% 5.48% 6.35%
- ------------------------------------------
* Reflects 4.00% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on January 21,
1999, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
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-
Term Investment Grade Debt Index. The Merrill Lynch 1-5-Year
Government/Corporate Bond Index is unmanaged and generally representative of
the total return of short-term government and corporate bonds. The index does
not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The Lipper Short-Term
Investment Grade Debt Index, an index of managed funds, 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 effect, performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-22-
<PAGE>
The AmSouth Government Income Fund
John Boston, CFA, manages the AmSouth Government Income Fund. Mr. Boston,
Senior Vice President of AmSouth Bank, has over 10 years of experience as a
fixed-income manager. He holds a bachelor's degree in economics.
We Favored GNMA Securities
For the 12 months ended July 31, 1999, the AmSouth Government Income Fund
produced a total return of 2.62% (Classic Shares at NAV). In comparison, the
Lehman Brothers Mortgage Index rose 2.78%, while the Lipper U.S. Mortgage Fund
Index/1/ gained 1.49%.
The Fund invests solely in debt instruments issued by the U.S. Treasury or
backed by an agency of the federal government. This allocation allows the Fund
to hold securities of superior quality, which can serve our shareholders well
both in times of economic turmoil and relative stability.
We generally favor mortgage-backed securities, principally Ginnie Maes (GNMAs)
because they offer significantly higher yields than Treasuries. Ginnie Maes
are the highest-quality bonds among mortgage-backed securities and are the
only type of mortgage security backed by the full faith and credit of the U.S.
Government.
Mortgage-Backed Securities Supported the Portfolio
Interest rates, the primary driver of bond prices (prices generally rise when
rates fall, and vice versa) made two large, contrary moves during the period.
First, rates declined sharply last autumn--pushed lower by concerns about the
global economy, a flight to quality in U.S. government issues, and the Fed's
decision to cut short-term rates three times. Then, during the last six months
of our reporting period, rates rapidly climbed higher, retracing most if not
all of their earlier levels.
During this difficult latter period, the mortgage-backed sector was the best-
performing area in the bond market. Our overweighting in this sector benefited
our shareholders.
Throughout this volatility, we saw little reason to make dramatic changes to
our portfolio. For example, on a year-to-year basis, our allocation to GNMAs
changed just one percentage point. The Fund's average maturity did rise a bit
during the period, but such an increase is to be expected in a portfolio that
holds a preponderance of mortgage securities--which normally extend in
maturity as interest rates rise.
As of July 31, 1999, the Fund's average maturity was 7.7 years, and its
average credit quality was AAA (government-quality portfolio). Approximately
67% of the Fund was invested in GNMAs; 18% in noncallable, government agency
debentures; 11% in U.S. Treasury securities and 4% in cash. This mix reflected
only minor shifts from the portfolio's allocation six months earlier.*
We Do Not Expect Rates To Rise
We were a little surprised at the speed at which interest rates rose during
the last six months; we had expected a less-volatile environment. The increase
in market-set rates (as opposed to rate increases mandated by the Fed) will
reinforce the prospects for the economic slowdown that we have been expecting.
We think long-term rates in the 6.15% to 6.25% levels are attractive, meaning
we do not believe they will go much higher and, in our opinion, they should be
lower a year from now.
/1/The Lipper U.S. Mortgage Fund Index is comprised of 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 Fund's portfolio composition is subject to change.
-23-
<PAGE>
The AmSouth Government Income Fund
[THE AMSOUTH GOVERNMENT INCOME FUND APPEARS HERE]
AmSouth Government AmSouth Government Lehman Brothers Lipper U.S.
Income Fund Income Fund Mortgage Mortgage
(Classic Shares)* (Premier Shares) Index Fund Index
------------------ ------------------ --------------- -----------
10/93 9,600 10,000 10,000 10,000
7/94 9,572 9,974 9,924 9,833
7/95 10,378 10,814 10,798 10,432
7/96 10,888 11,345 11,688 10,945
7/97 12,000 12,504 12,933 12,057
1/98 12,581 13,115 13,506 12,573
7/98 12,900 13,443 13,897 12,797
7/99 13,248 13,807 14,284 12,988
- -----------------------------------------------
Average Annual Total Return
- -----------------------------------------------
Since
As of 1 5 Inception
July 31, 1999 Year Year (10/1/93)
- -----------------------------------------------
Classic* -1.47% 5.86% 4.94%
- -----------------------------------------------
Premier 2.72% 6.72% 5.69%
- -----------------------------------------------
* Reflects 4.00% sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
The performance of the AmSouth Government Income Fund is measured against the
Lehman Brothers Mortgage Index and the Lipper U.S. Mortgage Fund Index. The
Lehman Brothers Mortgage Index is an unmanaged index generally representative
of the mortgage bond market as whole. The index does not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The Lipper U.S. Mortgage Fund Index, an index of managed
funds, 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 effect, performance quoted would have
been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-24-
<PAGE>
The AmSouth Bond Fund
Brian Sullivan, CFA, manages the AmSouth Bond Fund. Mr. Sullivan, Senior Vice
President of AmSouth Bank, serves as Chairman of the Trust Investment Policy
and Strategy Group and is AmSouth Bank's Senior Investment Officer. He has 14
years of fixed-income investment management experience and holds an MBA in
finance and a bachelor's degree in economics.
Above-Average Returns, Despite Extreme Volatility
For the 12 months ended July 31, 1999, the AmSouth Bond Fund produced a total
return of 2.58% (Classic Shares at NAV). In comparison, the Lehman Brothers
Government/Corporate Bond Index rose 2.33%, and the Lipper Corporate A-Rated
Debt Fund Index/1/ gained 0.73%.
We were proud of the Fund's performance, which produced a positive return in
the face of extraordinary interest-rate volatility. As with most fixed-income
portfolios, we profited when rates declined sharply last fall, and we
struggled when rates rose just as abruptly in the last six months of the
period.
Apart from total return, the Fund's inflation-adjusted yield was enhanced by
the fact that inflation remained remarkably tame throughout the period.
Making the Right Calls
In January, it seemed to us that the optimism then prevalent in the bond
market was overdone. Rates had fallen so far, so quickly--many rates were near
20-year lows--that a further, significant drop appeared unlikely.
Consequently, we shortened the portfolio's average maturity and duration
considerably.
At the same time, and just prior, spreads on corporate bonds had widened. (A
"spread" is the additional yield offered by an agency or corporate bond over a
U.S. Treasury bond of like maturity.) We decided to swap the interest-rate
risk inherent in long-term Treasuries for the credit risk of short-term
corporate bonds--without diminishing our yield to maturity. At the same yield,
we were, effectively, trading a greater risk for a smaller risk. Therefore,
when rates reversed direction and headed back up (driving bond prices lower),
our shareholders' capital was protected to some degree.
Since February, we have increased our average maturity and duration. What we
have seen in the last six months is that agency paper and mortgage-backed
securities have outperformed Treasuries. Spreads have narrowed. Our buying
emphasis in recent months has been on improving the quality of the portfolio
and pushing our maturity and duration out longer.*
As of July 31, 1999, approximately 46.8% of the portfolio was invested in
corporate issues, 35.3% in securities issued by the U.S. Treasury, 12.8% in
U.S. government agency paper and the remainder in cash and cash equivalents.
The securities within the Fund maintained an average credit quality of AAA,
with an average maturity of 7.84 years.*
A Slower Economy Should Help the Fund
We believe the domestic economy will slow in the coming months. Quite
honestly, we have been surprised that the economy hasn't slowed much to this
point--which makes us even more convinced that the market could lose a little
steam from here on out. At this time, there is one dominant engine in the
economy: the American consumer. There is a chance that foreign economies will
improve and help to maintain our growth rate, but that scenario has not yet
materialized and is, therefore, just a hope. A less robust economy should be
positive for the fixed-income securities we hold.
/1/The Lipper Corporate A-Rated Debt Fund Index is comprised of funds that
invest at least 65% of their assets in corporate debt issues rated "A" or
better, or in government issues.
* The Fund's portfolio composition is subject to change.
-25-
<PAGE>
The AmSouth Bond Fund
[THE AMSOUTH BOND FUND APPEARS HERE]
AmSouth AmSouth AmSouth
Bond Fund Bond Fund Bond Fund
Date (B Shares) (Classic Shares)* (Premier Shares)
- ---- ---------- ----------------- -----------------
7/89 10,000 9,600 10,000
7/90 10,553 10,131 10,553
7/91 11,393 10,938 11,393
7/92 13,258 12,728 13,258
7/93 14,559 13,979 14,559
7/94 14,591 14,011 14,591
7/95 16,000 15,363 16,000
7/96 16,699 16,035 16,699
7/97 18,447 17,714 18,448
7/98 19,682 19,034 19,840
7/99 19,995 19,524 20,374
Lehman Brothers Lipper Corporation
Govt./Corp. A-Rated Debt
Date Bond Index Fund Index
- ---- --------------- ------------------
7/89 10,000 10,000
7/90 10,623 10,515
7/91 11,712 11,556
7/92 13,543 13,468
7/93 15,037 15,004
7/94 15,019 14,815
7/95 16,539 16,302
7/96 17,417 17,138
7/97 19,296 19,106
7/98 20,853 20,501
7/99 21,338 20,652
For performance purposes the above graph has not been adjusted for CDSC charges.
- ----------------------------------------------
Average Annual Total Return
- ----------------------------------------------
As of 1 5 10
July 31, 1999 Year Year Year
- ----------------------------------------------
Classic* -1.52% 6.00% 6.92%
- ----------------------------------------------
Premier 2.68% 6.90% 7.38%
- ----------------------------------------------
B Shares** -3.22% 6.19% 7.17%
- ----------------------------------------------
* Reflects 4.00% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on September 3,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Bond Fund is measured against the Lehman
Brothers Government/Corporate Bond Index, an unmanaged broad-based index
representative of the total return of long-term government and corporate bond,
and the Lipper Corporate A-Rated Debt Fund Index. The Lehman Brothers
Government/Corporate Bond Index does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The Lipper Corporate A-Rated Debt Fund Index, an index of
managed funds, 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 effect, performance quoted
would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-26-
<PAGE>
The AmSouth Municipal Bond Fund+
Dorothy Thomas, who has 16 years of experience as an investment portfolio
manager for municipal bond accounts, personal trusts and endowments, manages
the AmSouth Municipal Bond Fund. Ms. Thomas, Senior Vice President of AmSouth
Bank, holds an MBA and a bachelor's degree in economics.
Suitable Performance In a Challenging Environment
For the 12 months ended July 31, 1999, the Fund produced a total return of
2.31% (Classic Shares at NAV). In comparison, the Merrill Lynch 3-7-Year
Municipal Bond Index rose 3.83%, while the Lipper Intermediate Municipal Debt
Index/1/ gained 2.44%.
Roughly speaking, the first half of the period was very positive for fixed-
income securities, including municipal bond funds, while the second half was
unusually difficult. The Fund's performance followed suit in both instances.
Preserving Total Returns
Last summer, investors began to become very concerned about economic
conditions in Asia and elsewhere. As a result, money flooded into the U.S.
Treasury market. This flight to quality caused U.S. interest rates to plummet
and bond prices to rise sharply (rates and prices move in opposite
directions). At nearly the same time, the Fed cut short-term rates three
times, in part to ensure that there would be plenty of liquidity in the
financial markets. Together, these actions kept interest rates very low
through the end of 1998.
However, as the new year began, these trends started to reverse completely,
and interest rates climbed sharply--pushing bond prices markedly lower.
Fortunately for our shareholders, municipal bonds held their value more than
comparable Treasury or corporate debt. In the last six months of the period,
10-year Treasury bond yields climbed 125 basis points (1.25%), while 10-year
corporate bond yields surged 140 basis points (1.40%)--both substantial moves.
But 10-year AA municipal bond yields rose just 60 basis points (0.60%),
thereby preserving a greater measure of total return.*
We Continued To Focus On Alabama Issues
Because so many of our investors are Alabama residents, we kept 55% to 60% of
the portfolio invested in municipal debt issued in this state (56.5% as of
July 31, 1999). This strategy helped boost the tax-equivalent yield for
Alabama shareholders.*
The Alabama muni market did not produce an abundance of supply during the
period. In fact, issuance in the national municipal market is lower this year
than last year, especially in the last six months, with rising interest rates
making it more expensive for government entities to borrow money. Based on the
amount of quality debt available in Alabama, we have kept our allocation to
Alabama paper as high as we can. If additional, high-quality debt is put on
the market at a reasonable price, we will buy it.
As of July 31, 1999, the securities within the Fund maintained an average
credit quality of AA, with an average maturity of 5.96 years.
Economic Growth Could Slow, One Way Or Another
We are starting to see some signs of a possible economic slowdown in the
United States. If that comes about, it would be good for the bond market. And
if the economy does not slow down by itself, the Fed is likely to step in and
raise rates in order to make it decelerate. Rates have gone up in recent
months, as we noted, and in response, we have lengthened the portfolio's
average maturity modestly.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
/1/The Lipper Intermediate Municipal Debt Fund Index is comprised of funds
that invest in municipal debt issues with dollar-weighted average maturities
of five to ten years.
* The Fund's portfolio composition is subject to change.
-27-
<PAGE>
The AmSouth Municipal Bond Fund+
[GRAPH APPEARS HERE]
AmSouth Merrill Lynch Lipper AmSouth
Municipal AmSouth 3-7-Year Intermediate Municipal
Bond Fund Municipal Municipal Municipal Bond Fund
Date (Classic Shares)* (B Shares)** Bond Index Debt Index (Premier Shares)
- ------ -------------- ---------- ------------- ------------ ----------------
7/1/97 9,500 10,000 10,000 10,000 10,000
7/98 10,199 10,624 10,480 10,460 10,643
7/99 10,434 10,525 10,881 10,715 10,889
- -------------------------------------------------------
Average Annual Total Return
- -------------------------------------------------------
Since
As of 1 Inception
July 31, 1999 Year (7/1/97)
- -------------------------------------------------------
Classic* -1.77% 2.04%
- -------------------------------------------------------
Premier 2.30% 4.17%
- -------------------------------------------------------
B Shares** -3.02% 2.48%
- -------------------------------------------------------
* Reflects 4.00% sales charge.
** Reflects applicable contingent deferred sales charge
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on February 3,
1999, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
The performance of the AmSouth Municipal Bond Fund is measured against the
Merrill Lynch 3-7-Year Municipal Bond Index, an unmanaged index that is
generally representative of municipal bonds with intermediate maturities. The
Fund's performance is also measured against the Lipper Intermediate Municipal
Debt Fund Index. The Merrill Lynch 3-7-Year Municipal Bond Index does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The Lipper Intermediate Municipal Debt
Fund Index, an index of managed funds, 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
effect, performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-28-
<PAGE>
The AmSouth Florida Tax-Free Fund+,++
Steve L. Cass, Assistant Vice President of AmSouth Bank, manages the AmSouth
Florida Tax-Free Fund. Mr. Cass has five years of experience as an investment
portfolio manager and holds a bachelor's degree in economics.
Relative Stability In a Swirl Of Volatility
For the 12 months ended July 31, 1999, the AmSouth Florida Tax-Free Fund
produced a total return of 2.06% (Classic Shares at NAV). In comparison, the
Merrill Lynch 3-7-Year Municipal Bond Index rose 3.83%.
Throughout the period, the Fund offered shareholders some measure of
protection from the excessive volatility present in both the stock market and
the long-term taxable bond market. Along with greater stability, we provided
our investors with current income that was exempt from federal income tax and
Florida intangible taxes--which is one of our primary objectives.
We Took Action To Enhance Returns
During the first months of the period, the Federal Reserve Board (the Fed)
lowered short-term interest rates three times. While this action had only a
moderate effect on the Fund--municipal bonds have less interest-rate
sensitivity than, say, U.S. Treasuries--the constructive environment certainly
provided a welcome boost to our performance. In the second half of the period,
however, interest rates abruptly changed direction and headed back higher,
effectively wiping out all of the gains that we and many other bond funds had
accrued earlier.
A factor that helped was a steady stream of new Florida bonds (at least during
the first half of the period), which further tempered volatility. Even when
supply became more scarce in the last few months of the period, the Fund
benefited from already holding a portfolio of bonds that were in increasingly
greater demand.
Because a majority of our shareholders are residents of Florida, we also took
steps to hold as high a proportion of in-state securities as possible; this
enables Florida residents to reduce their exposure to the state's intangible
tax. At the end of the period, 97.3% of the portfolio was invested in
securities issued in the state of Florida, with the remainder in cash and cash
equivalents.
In addition, we were successful in keeping our turnover and trading costs at
modest levels. With a fixed-income fund such as ours, lower expenses can
translate into higher net returns for shareholders. It is our intent to find
the best bonds we can and hold them to maturity whenever possible.
Lower Rates Possible By the End Of the Year
Looking forward, we believe the Fed quite possibly will raise rates at least
once more in the near future. However, as we get closer to the end of 1999 and
the economy begins to slow, rates should come back down. We remain committed
to maintaining a high-quality portfolio, concentrating on general obligation
bonds along with securities issued by water and sewer entities. The market is
not paying a sufficient premium for taking on additional risk, so we are not
pursuing lower-quality issues.
As of July 31, 1999, the securities within the Fund maintained an average
credit quality of AA1, with an average maturity of 5.83 years.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
++ Regional funds may be subject to additional risk, since companies they
invest in are located in one geographical location.
-29-
<PAGE>
The AmSouth Florida Tax-Free Fund+,++
[THE AMSOUTH FLORIDA TAX-FREE FUND APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Florida AmSouth Florida Merrill Lynch AmSouth Florida
Tax Free Fund Tax Free Fund 3-7-Year Municipal Tax Free Fund
(Classic Shares)* (Premier Shares) Bond Index (B Shares)**
----------------- ---------------- ------------------ -----------------
<S> <C> <C> <C> <C>
9/1/94 9,600 10,000 10,000 10,000
7/95 10,224 10,653 10,670 10,152
7/96 10,658 11,105 11,147 10,702
7/97 11,392 11,870 11,943 11,567
7/98 11,896 12,420 12,516 12,096
7/99 12,142 12,688 12,995 12,410
</TABLE>
- ---------------------------------------------------
Average Annual Total Return
- ---------------------------------------------------
Since
As of 1 Inception
July 31, 1999 Year (9/30/94)
- ---------------------------------------------------
Classic Shares* -2.06% 4.10%
- ---------------------------------------------------
Premier Shares 2.16% 5.05%
- ---------------------------------------------------
B Shares** -3.15% 4.57%
- ---------------------------------------------------
* Reflects 4.00% sales charge.
** Reflects applicable contingent deferred sales charge.
Effective September 2, 1997, the Fund's existing shares, which were previously
unclassified, were designated either Classic or Premier Shares. The performance
figures for Premier Shares for periods prior to such date represent the
performance of Classic Shares of the Fund.
Performance for the Class B Shares, which commenced operations on February 3,
1999, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. The performance of Classic Shares does not
reflect the higher 12b-1 fees or the contingent deferred sales charge (CDSC).
Had the CDSC and higher 12b-1 fees been incorporated, total return and
hypothetical growth figures would have been lower.
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 fees associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance does 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 effect,
performance quoted would have been lower.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-30-
<PAGE>
The AmSouth Money Market Funds
The AmSouth Money Market Funds are managed by John Boston, CFA, Senior Vice
President of AmSouth Bank. Mr. Boston has more than 10 years of experience as
a fixed-income manager. He holds a bachelor's degree in economics.
Interest Rates Fall, Then Rise Sharply
During the first six months of the period, the Fed lowered the fed funds
rate--the benchmark rate banks charge one another for overnight loans--three
times. Remarkably, rates then reversed direction and began a steady climb over
the last six months of the period. This was due to many factors, including the
perception that the Fed would begin raising rates again--in effect, "taking
back" the earlier rate cuts. By the time the Fed did take action, raising
short-term rates by 25 basis points (0.25%) on June 30, the market had already
pushed rates significantly higher on its own.
The yields we generate in the money market funds depend, largely, on Fed
policy. Consequently, our yields fell and rose in response to the Fed's
actions. Throughout the period, inflation remained at very low levels,
providing shareholders with "real returns" (total returns minus inflation)
that were attractive on a historical basis.
. As of July 31, 1999, the Prime Obligations Fund's average maturity was 66
days, compared to 54 days on January 31, 1999, and 63 days on July 31,
1998.*
. As of July 31, 1999, the U.S. Treasury Fund's average maturity was 47 days,
compared to 50 days on January 31, 1999, and 48 days on July 31, 1998.*
. As of July 31, 1999, the Tax-Exempt Fund's+ average maturity was 53 days,
compared to 54 days on January 31, 1999, and 81 days on July 31, 1998.*
. As of July 31, 1999, the Institutional Prime Obligations Fund's average
maturity was 48 days, compared to 23 days on January 31, 1999.*
Investments in the Prime Obligations, the U.S. Treasury, the Tax-Exempt and
the Institutional Prime Obligations Money Market Funds are neither insured nor
guaranteed by the Federal Deposit Insurance Corporation or any government
agency. Although the Funds seek to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the Funds.
Although money market funds may produce higher returns than insured deposit
products, the net asset value may be sensitive to interest rate movement.
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.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
* The composition of the Fund's holdings is subject to change.
-31-
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
-32-
<PAGE>
Report of Independent Accountants
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and
Trustees AmSouth Mutual
Funds
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, and the related statements
of operations and changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of AmSouth Equity
Income Fund, AmSouth Equity Fund, AmSouth Enhanced Market Fund, AmSouth
Capital Growth Fund, AmSouth Select Equity Fund, AmSouth Regional Equity Fund,
AmSouth Small Cap Fund, AmSouth Balanced Fund, AmSouth Limited Maturity Fund,
AmSouth Government Income Fund, AmSouth Bond Fund, AmSouth Municipal Bond
Fund, AmSouth Florida Tax-Free Fund, AmSouth U.S. Treasury Fund, AmSouth Prime
Obligations Fund, AmSouth Institutional Prime Obligations Fund and AmSouth
Tax-Exempt Fund (separate portfolios constituting AmSouth Mutual Funds,
hereafter referred to as the "Funds") at July 31, 1999, the results of each of
their operations for the period then ended, the changes in each of their net
assets for the periods presented, and the financial highlights for each of the
periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Funds'
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at July 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Columbus, Ohio
September 21, 1999
-33-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Equity Enhanced Capital
Income Equity Market Growth
Fund Fund Fund Fund
------- ---------- -------- -------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $36,192,
$711,667, $31,089 and $34,335,
respectively)........................ $40,285 $1,043,170 $33,651 $38,274
Cash.................................. -- -- -- 1,708
Interest and dividends receivable..... 75 1,652 66 16
Receivable for capital shares issued.. 10 61 155 21
Receivable from brokers for
investments sold..................... 1,037 2,830 1,000 --
Prepaid expenses and other assets..... 5 45 6 4
------- ---------- ------- -------
Total Assets....................... 41,412 1,047,758 34,878 40,023
------- ---------- ------- -------
LIABILITIES:
Payable for capital shares redeemed... 19 334 37 1
Payable to brokers for investments
purchased............................ 1,007 3,110 -- 433
Net payable for variation margin on
futures contracts.................... -- -- 41 --
Accrued expenses and other payables:
Investment advisory fees............. 15 379 7 14
Administration fees.................. 1 23 -- --
Distribution fees.................... 12 27 8 10
Accounting fees...................... -- 3 2 --
Transfer agent fees.................. 2 28 2 1
Custodian fees....................... -- 12 -- --
Other................................ 3 48 11 6
------- ---------- ------- -------
Total Liabilities.................. 1,059 3,964 108 465
------- ---------- ------- -------
NET ASSETS:
Capital............................... 33,870 577,771 30,785 34,119
Undistibuted (distributions in excess
of) net investment income............ 6 478 2 --
Net unrealized appreciation
(depreciation) on investments and
futures.............................. 4,093 331,503 2,432 3,939
Undistributed net realized gains
(losses) from investment
transactions......................... 2,384 134,042 1,551 1,500
------- ---------- ------- -------
Net Assets......................... $40,353 $1,043,794 $34,770 $39,558
======= ========== ======= =======
Net Assets
Classic Shares....................... $21,526 $ 70,740 $14,365 $14,040
Premier Shares....................... 10,908 960,660 14,273 18,055
B Shares............................. 7,919 12,394 6,132 7,463
------- ---------- ------- -------
Total.............................. $40,353 $1,043,794 $34,770 $39,558
======= ========== ======= =======
Outstanding units of beneficial
interest (shares)
Classic Shares....................... 1,643 2,801 1,036 1,000
Premier Shares....................... 832 38,024 1,030 1,279
B Shares............................. 607 493 443 539
------- ---------- ------- -------
Total.............................. 3,082 41,318 2,509 2,818
======= ========== ======= =======
Net asset value
Classic Shares--redemption price per
share............................... $ 13.10 $ 25.25 $ 13.86 $ 14.04
======= ========== ======= =======
Premier Shares--offering and
redemption price per share.......... $ 13.10 $ 25.27 $ 13.86 $ 14.11
======= ========== ======= =======
B Shares*--offering price per share.. $ 13.05 $ 25.14 $ 13.82 $ 13.85
======= ========== ======= =======
Maximum Sales Charge (Classic Shares). 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)........... $ 13.72 $ 26.44 $ 14.51 $ 14.70
======= ========== ======= =======
</TABLE>
- --------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-34-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Select Regional
Equity Equity Small Cap Balanced
Fund Fund Fund Fund
------- -------- --------- --------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $21,102,
$69,670, $21,396 and $314,068,
respectively)......................... $22,483 $82,223 $24,019 $369,272
Interest and dividends receivable...... 9 107 2 3,556
Receivable for capital shares issued... 18 -- 12 296
Receivable from brokers for investments
sold.................................. 117 -- 1,343 --
Prepaid expenses and other assets...... 5 9 6 16
------- ------- ------- --------
Total Assets........................ 22,632 82,339 25,382 373,140
------- ------- ------- --------
LIABILITIES:
Payable for capital shares redeemed.... -- 32 -- 266
Payable to brokers for investments
purchased............................. -- -- 1,584 310
Accrued expenses and other payables:
Investment advisory fees.............. 8 30 12 134
Administration fees................... -- 2 -- 8
Distribution fees..................... 4 6 1 18
Accounting fees....................... -- -- -- 2
Transfer agent fees................... 1 4 1 10
Custodian fees........................ -- 1 -- 4
Other................................. 8 3 5 18
------- ------- ------- --------
Total Liabilities................... 21 78 1,603 770
------- ------- ------- --------
NET ASSETS:
Capital................................ 20,644 52,949 23,927 275,601
Undistibuted (distributions in excess
of) net investment income............. -- 13 (1) 577
Net unrealized appreciation
(depreciation) on investments......... 1,381 12,553 2,623 55,204
Undistributed net realized gains
(losses) from investment transactions. 586 16,746 (2,770) 40,988
------- ------- ------- --------
Net Assets.......................... $22,611 $82,261 $23,779 $372,370
======= ======= ======= ========
Net Assets
Classic Shares......................... $10,258 $20,911 $ 1,073 $ 43,223
Premier Shares......................... 10,420 60,385 21,777 319,016
B Shares............................... 1,933 965 929 10,131
------- ------- ------- --------
Total............................... $22,611 $82,261 $23,779 $372,370
======= ======= ======= ========
Outstanding units of beneficial
interest (shares)
Classic Shares........................ 863 913 128 2,895
Premier Shares........................ 877 2,631 2,581 21,368
B Shares.............................. 163 43 112 680
------- ------- ------- --------
Total............................... 1,903 3,587 2,821 24,943
======= ======= ======= ========
Net asset value
Classic Shares--redemption price per
share................................ $ 11.88 $ 22.90 $ 8.40 $ 14.93
======= ======= ======= ========
Premier Shares--offering and
redemption price per share........... $ 11.89 $ 22.95 $ 8.44 $ 14.93
======= ======= ======= ========
B Shares*--offering price per share... $ 11.83 $ 22.68 $ 8.31 $ 14.90
======= ======= ======= ========
Maximum Sales Charge (Classic Shares).. 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)............ $ 12.44 $ 23.98 $ 8.80 $ 15.63
======= ======= ======= ========
</TABLE>
- --------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-35-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Limited Government Municipal Florida
Maturity Income Bond Bond Tax-Free
Fund Fund Fund Fund Fund
-------- ---------- -------- --------- --------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$112,420, $8,566, $385,361,
$321,757 and $75,561,
respectively)............... $111,905 $8,521 $383,287 $323,878 $75,486
Interest and dividends
receivable.................. 1,999 78 6,731 4,967 844
Receivable for capital shares
issued...................... -- 1 -- -- --
Prepaid expenses and other
assets...................... 5 1 15 13 4
-------- ------ -------- -------- -------
Total Assets.............. 113,909 8,601 390,033 328,858 76,334
-------- ------ -------- -------- -------
LIABILITIES:
Payable for capital shares
redeemed.................... 2 8 83 -- --
Payable to brokers for
investments purchased....... -- -- -- 4,754 --
Accrued expenses and other
payables:
Investment advisory fees.... 25 1 86 57 10
Administration fees......... 1 -- 5 4 1
Distribution fees........... 2 -- 3 -- 1
Accounting fees............. 1 1 2 2 1
Transfer agent fees......... 3 -- 9 8 2
Custodian fees.............. 1 -- 4 3 1
Other....................... 5 5 24 27 6
-------- ------ -------- -------- -------
Total Liabilities......... 40 15 216 4,855 22
-------- ------ -------- -------- -------
NET ASSETS:
Capital...................... 115,003 8,967 389,653 319,649 76,062
Undistibuted (distributions
in excess of) net investment
income...................... 483 -- 1,421 599 130
Net unrealized appreciation
(depreciation) on
investments................. (515) (45) (2,074) 2,121 (75)
Undistributed net realized
gains (losses) from
investment transactions..... (1,102) (336) 817 1,634 195
-------- ------ -------- -------- -------
Net Assets................ $113,869 $8,586 $389,817 $324,003 $76,312
======== ====== ======== ======== =======
Net Assets
Classic Shares.............. $ 2,716 $5,436 $ 7,070 $ 2,694 $12,195
Premier Shares.............. 109,554 3,150 380,226 321,293 63,548
B Shares.................... 1,599 -- 2,521 16 569
-------- ------ -------- -------- -------
Total..................... $113,869 $8,586 $389,817 $324,003 $76,312
======== ====== ======== ======== =======
Outstanding units of
beneficial interest (shares)
Classic Shares.............. 264 565 665 273 1,194
Premier Shares.............. 10,647 328 35,778 32,557 6,218
B Shares.................... 156 -- 238 2 56
-------- ------ -------- -------- -------
Total..................... 11,067 893 36,681 32,832 7,468
======== ====== ======== ======== =======
Net asset value
Classic Shares--redemption
price per share............ $ 10.29 $ 9.62 $ 10.63 $ 9.87 $ 10.22
======== ====== ======== ======== =======
Premier Shares--offering
and redemption price per
share...................... $ 10.29 $ 9.62 $ 10.63 $ 9.87 $ 10.22
======== ====== ======== ======== =======
B Shares*--offering price
per share.................. $ 10.27 $ -- $ 10.60 $ 9.87 $ 10.20
======== ====== ======== ======== =======
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)..................... $ 10.72 $10.02 $ 11.07 $ 10.28 $ 10.65
======== ====== ======== ======== =======
</TABLE>
- --------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-36-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Institutional
U.S. Prime Prime Tax-
Treasury Obligations Obligations Exempt
Fund Fund Fund Fund
-------- ----------- ------------- -------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost..... $200,790 $582,351 $ 79,299 $96,133
Repurchase agreements, at cost..... 113,208 92,189 30,200 --
-------- -------- -------- -------
Total investments............... 313,998 674,540 109,499 96,133
Interest and dividends receivable.. 2,446 1,515 9 817
Receivable from brokers for
investments sold.................. 10,000 -- -- --
Prepaid expenses and other assets.. 17 33 5 6
-------- -------- -------- -------
Total Assets.................... 326,461 676,088 109,513 96,956
-------- -------- -------- -------
LIABILITIES:
Dividends payable.................. 1,081 2,540 426 202
Accrued expenses and other
payables:
Investment advisory fees.......... 107 233 6 16
Administration fees............... 7 15 -- 2
Distribution fees................. -- 12 11 2
Accounting fees................... 1 2 1 1
Transfer agent fees............... 7 16 3 1
Custodian fees.................... 5 7 1 1
Other............................. 16 62 32 7
-------- -------- -------- -------
Total Liabilities............... 1,224 2,887 480 232
-------- -------- -------- -------
NET ASSETS:
Capital............................ 325,229 673,208 109,028 96,725
Undistributed (distributions in
excess of) net investment income.. 7 -- 5 --
Undistributed net realized gains
(losses) from investment
transactions...................... 1 (7) -- (1)
-------- -------- -------- -------
Net Assets...................... $325,237 $673,201 $109,033 $96,724
======== ======== ======== =======
Net Assets
Classic Shares (a)................ $ 4,390 $136,078 $ 69,458 $22,844
Premier Shares (b)................ 320,847 536,899 26,000 73,880
B Shares (c)...................... -- 224 13,575 --
-------- -------- -------- -------
Total........................... $325,237 $673,201 $109,033 $96,724
======== ======== ======== =======
Outstanding units of beneficial
interest (shares)
Classic Shares (a)................ 4,390 136,085 69,458 22,845
Premier Shares (b)................ 320,838 536,913 26,000 73,880
B Shares (c)...................... -- 224 13,575 --
-------- -------- -------- -------
Total........................... 325,228 673,222 109,033 96,725
======== ======== ======== =======
Net asset value--offering and
redemption price per share
Classic Shares (a)................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =======
Premier Shares (b)................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =======
B Shares (c)*..................... $ -- $ 1.00 $ 1.00 $ --
======== ======== ======== =======
</TABLE>
- --------
(a) Class I shares for the Institutional Prime Obligations Fund.
(b) Class II shares for the Institutional Prime Obligations Fund.
(c) Class III shares for the Institutional Prime Obligations Fund.
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-37-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Year Ended July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Equity Enhanced Capital
Income Equity Market Growth
Fund Fund Fund (a) Fund
------ -------- -------- -------
<S> <C> <C> <C> <C>
Investment Income:
Interest income............................. $ 274 $ 918 $ 33 $ --
Dividend income............................. 853 21,407 257 184
------ -------- ------ ------
Total Income.............................. 1,127 22,325 290 184
------ -------- ------ ------
Expenses:
Investment advisory fees.................... 325 8,292 78 207
Administration fees......................... 81 2,073 35 52
Shareholder servicing fees (Classic Shares). 59 179 27 28
12b-1 fees (B Shares)....................... 78 102 20 52
Accounting fees............................. 54 335 59 54
Transfer agent fees......................... 47 261 31 40
Custodian fees.............................. 2 63 1 1
Trustee fees and expenses................... 1 23 -- --
Other....................................... 29 229 20 31
------ -------- ------ ------
Total Expenses............................ 676 11,557 271 465
Expenses voluntarily reduced................ (68) (50) (107) (132)
------ -------- ------ ------
Net Expenses.............................. 608 11,507 164 333
------ -------- ------ ------
Net Investment Income (Loss)................ 519 10,818 126 (149)
------ -------- ------ ------
Realized/Unrealized Gains (Losses) From
Investments:
Net realized gains (losses) from investment
transactions............................... 2,385 136,676 1,583 1,650
Net change in unrealized appreciation
(depreciation) from investments............ 2,356 419 2,432 2,629
------ -------- ------ ------
Net realized/unrealized gains (losses) from
investments................................ 4,741 137,095 4,015 4,279
------ -------- ------ ------
Change in net assets resulting from
operations................................. $5,260 $147,913 $4,141 $4,130
====== ======== ====== ======
</TABLE>
- --------
(a) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-38-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Year Ended July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Select Regional Small
Equity Equity Cap Balanced
Fund (a) Fund Fund Fund
-------- -------- ------- --------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.......................... $ 2 $ -- $ 37 $ 10,620
Dividend income.......................... 255 1,877 24 4,660
------ -------- ------- --------
Total Income........................... 257 1,877 61 15,280
------ -------- ------- --------
Expenses:
Investment advisory fees................. 130 856 127 3,046
Administration fees...................... 33 214 21 762
Shareholder servicing fees (Classic
Shares)................................. 28 76 3 113
12b-1 fees (B Shares).................... 8 15 9 79
Accounting fees.......................... 45 55 54 145
Transfer agent fees...................... 30 64 33 115
Custodian fees........................... 1 7 1 23
Trustee fees and expenses................ -- 3 -- 8
Other.................................... 16 58 17 92
------ -------- ------- --------
Total Expenses......................... 291 1,348 265 4,383
Expenses voluntarily reduced or
reimbursed.............................. (106) (50) (105) (50)
------ -------- ------- --------
Net Expenses........................... 185 1,298 160 4,333
------ -------- ------- --------
Net Investment Income (Loss)............. 72 579 (99) 10,947
------ -------- ------- --------
Realized/Unrealized Gains (Losses) From
Investments:
Net realized gains (losses) from
investment transactions................. 612 16,745 (2,191) 43,490
Net change in unrealized appreciation
(depreciation) from investments......... 1,381 (30,363) 2,703 (19,188)
------ -------- ------- --------
Net realized/unrealized gains (losses)
from investments........................ 1,993 (13,618) 512 24,302
------ -------- ------- --------
Change in net assets resulting from
operations.............................. $2,065 $(13,039) $ 413 $ 35,249
====== ======== ======= ========
</TABLE>
- --------
(a) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-39-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Year Ended July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Limited Government Municipal Florida
Maturity Income Bond Bond Tax-Free
Fund Fund Fund Fund Fund
-------- ---------- -------- --------- --------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest income............... $ 7,037 $ 566 $ 22,088 $15,208 $ 3,208
Dividend income............... 95 11 292 193 49
------- ----- -------- ------- -------
Total Income................ 7,132 577 22,380 15,401 3,257
------- ----- -------- ------- -------
Expenses:
Investment advisory fees...... 735 62 2,319 2,121 461
Administration fees........... 226 19 714 653 142
Shareholder servicing fees
(Classic Shares)............. 8 17 18 6 25
12b-1 fees (B Shares)......... 4 -- 17 -- 1
Accounting fees............... 57 47 140 129 63
Transfer agent fees........... 48 23 99 90 38
Custodian fees................ 7 1 21 20 4
Trustee fees and expenses..... 3 -- 8 6 1
Other......................... 28 5 89 83 15
------- ----- -------- ------- -------
Total Expenses.............. 1,116 174 3,425 3,108 750
Expenses voluntarily reduced.. (305) (110) (881) (1,121) (390)
------- ----- -------- ------- -------
Net Expenses................ 811 64 2,544 1,987 360
------- ----- -------- ------- -------
Net Investment Income (Loss).. 6,321 513 19,836 13,414 2,897
------- ----- -------- ------- -------
Realized/Unrealized Gains
(Losses) From Investments:
Net realized gains (losses)
from investment transactions. 464 51 3,588 2,189 376
Net change in unrealized
appreciation (depreciation)
from investments............. (2,240) (283) (15,033) (7,994) (2,004)
------- ----- -------- ------- -------
Net realized/unrealized gains
(losses) from investments.... (1,776) (232) (11,445) (5,805) (1,628)
------- ----- -------- ------- -------
Change in net assets resulting
from operations.............. $ 4,545 $ 281 $ 8,391 $ 7,609 $ 1,269
======= ===== ======== ======= =======
</TABLE>
See notes to financial statements.
-40-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Year Ended July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Institutional
U.S. Prime Prime Tax-
Treasury Obligations Obligations Exempt
Fund Fund Fund (a) Fund
-------- ----------- ------------- ------
<S> <C> <C> <C> <C>
Investment Income:
Interest income..................... $15,108 $35,908 $4,854 $2,906
Dividend income..................... -- -- 136 165
------- ------- ------ ------
Total Income...................... 15,108 35,908 4,990 3,071
------- ------- ------ ------
Expenses:
Investment advisory fees............ 1,262 2,765 198 383
Administration fees................. 631 1,383 99 192
Shareholder servicing fees (Classic
Shares)............................ 16 336 17 63
12b-1 fees (B Shares)............... -- 1 15 --
Accounting fees..................... 107 230 41 53
Transfer agent fees................. 90 171 39 39
Custodian fees...................... 21 41 6 6
Trustee fees and expenses........... 6 15 2 2
Registration and filing fees........ 6 31 24 6
Other............................... 76 138 38 16
------- ------- ------ ------
Total Expenses.................... 2,215 5,111 479 760
Expenses voluntarily reduced........ (40) (252) (225) (271)
------- ------- ------ ------
Net Expenses...................... 2,175 4,859 254 489
------- ------- ------ ------
Net Investment Income (Loss)........ 12,933 31,049 4,736 2,582
------- ------- ------ ------
Realized/Unrealized Gains (Losses)
From Investments:
Net realized gains (losses) from
investment transactions............ -- 2 -- 1
------- ------- ------ ------
Net realized/unrealized gains
(losses) from investments.......... -- 2 -- 1
------- ------- ------ ------
Change in net assets resulting from
operations......................... $12,933 $31,051 $4,736 $2,583
======= ======= ====== ======
</TABLE>
- --------
(a) For the period from September 15, 1998 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-41-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Equity Income Equity Enhanced Market Capital Growth
Fund Fund Fund Fund
------------------ ---------------------- --------------- ------------------
Year Year Year Year Period Year Period
Ended Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31,
1999 1998 1999 1998 1999 (b) 1999 1998 (a)
-------- -------- ---------- ---------- --------------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 519 $ 670 $ 10,818 $ 12,002 $ 126 $ (149) $ (39)
Net realized gains
(losses) from
investment
transactions.......... 2,385 1,649 136,676 124,775 1,583 1,650 177
Net change in
unrealized
appreciation
(depreciation) from
investments and
futures............... 2,356 (405) 419 (21,447) 2,432 2,629 1,310
-------- ------- ---------- ---------- ------- ------- -------
Change in net assets
resulting from
operations............. 5,260 1,914 147,913 115,330 4,141 4,130 1,448
-------- ------- ---------- ---------- ------- ------- -------
Distributions to Classic
Shareholders:
From net investment
income................ (314) (500) (565) (1,668) (79) -- --
In excess of net
investment income..... -- (2) -- (1) -- -- --
From net realized gains
from investment
transactions.......... (525) (763) (7,000) (3,043) (30) (69) --
Distributions to Premier
Shareholders:
From net investment
income................ (144) (132)(c) (9,737) (10,624)(c) (41)(e) -- --
In excess of net
investment income..... -- -- (c) -- (13)(c) -- (e) -- --
From net realized gains
from investment
transactions.......... (184) (189)(c) (94,909) (47,629)(c) -- (e) (40) --
Distributions to Class B
Shareholders:
From net investment
income................ (56) (53)(d) (24) (18)(d) (4)(f) -- --
From net realized gains
from investment
transactions.......... (167) (67)(d) (935) (85)(d) (2)(f) (31) --
-------- ------- ---------- ---------- ------- ------- -------
Change in net assets
resulting from
shareholder
distributions......... (1,390) (1,706) (113,170) (63,081) (156) (140) --
-------- ------- ---------- ---------- ------- ------- -------
Capital Transactions:
Proceeds from shares
issued................ 9,218 25,509 199,148 190,614 40,225 27,139 15,506
Dividends reinvested... 1,155 1,376 25,287 15,125 140 100 --
Cost of shares
redeemed.............. (16,396) (6,860) (244,053) (204,304) (9,580) (7,692) (933)
-------- ------- ---------- ---------- ------- ------- -------
Change in net assets
from capital
transactions........... (6,023) 20,025 (19,618) 1,435 30,785 19,547 14,573
-------- ------- ---------- ---------- ------- ------- -------
Change in net assets.... (2,153) 20,233 15,125 53,684 34,770 23,537 16,021
Net Assets:
Beginning of period.... 42,506 22,273 1,028,669 974,985 -- 16,021 --
-------- ------- ---------- ---------- ------- ------- -------
End of period.......... $ 40,353 $42,506 $1,043,794 $1,028,669 $34,770 $39,558 $16,021
======== ======= ========== ========== ======= ======= =======
Share Transactions:
Issued................. 755 2,121 8,339 8,021 3,204 2,033 1,467
Reinvested............. 98 118 1,125 664 10 8 --
Redeemed............... (1,347) (563) (10,006) (8,575) (705) (603) (87)
-------- ------- ---------- ---------- ------- ------- -------
Change in shares........ (494) 1,676 (542) 110 2,509 1,438 1,380
======== ======= ========== ========== ======= ======= =======
</TABLE>
- --------
(a) For the period from August 3, 1997 (commencement of operations) through
July 31, 1998.
(b) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
(c) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(d) For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
(e) For the period from December 11, 1998 (commencement of operations) through
July 31, 1999.
(f) For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-42-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Select Equity Regional Equity Small Cap Balanced
Fund Fund Fund Fund
------------- ------------------ ------------------ -------------------
Period Year Year Year Period Year Year
Ended Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31,
1999 (b) 1999 1998 1999 1998 (a) 1999 1998
------------- -------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 72 $ 579 $ 520 $ (99) $ (19) $ 10,947 $ 10,904
Net realized gains
(losses) from
investment
transactions.......... 612 16,745 8,874 (2,191) (579) 43,490 36,908
Net change in
unrealized
appreciation
(depreciation) from
investments........... 1,381 (30,363) (9,341) 2,703 (80) (19,188) (13,602)
------- -------- -------- ------- ------ -------- ---------
Change in net assets
resulting from
operations............. 2,065 (13,039) 53 413 (678) 35,249 34,210
------- -------- -------- ------- ------ -------- ---------
Distributions to Classic
Shareholders:
From net investment
income................ (49) (128) (133) -- -- (1,197) (2,131)
In excess of net
investment income..... -- -- (8) -- -- -- --
From net realized gains
from investment
transactions.......... (19) (2,101) (1,577) -- -- (3,540) (3,102)
Distributions to Premier
Shareholders:
From net investment
income................ (22)(f) (436) (390)(c) -- -- (c) (9,447) (8,628)(c)
In excess of net
investment income..... -- (f) -- (18)(c) -- -- (c) -- (1)(c)
Tax return of capital.. -- (f) -- -- (c) -- (1)(c) -- -- (c)
From net realized gains
from investment
transactions.......... (6)(f) (4,934) (3,440)(c) -- -- (c) (25,304) (19,894)(c)
Distributions to Class B
Shareholders:
From net investment
income................ (2)(g) (1) (1)(d) -- -- (153) (43)(e)
From net realized gains
from investment
transactions.......... -- (g) (110) (26)(d) -- -- (554) (71)(e)
------- -------- -------- ------- ------ -------- ---------
Change in net assets
resulting from
shareholder
distributions.......... (98) (7,710) (5,593) -- (1) (40,195) (33,870)
------- -------- -------- ------- ------ -------- ---------
Capital Transactions:
Proceeds from shares
issued................ 27,874 9,981 31,703 18,277 8,135 66,769 96,873
Dividends reinvested... 94 3,734 3,015 -- -- 24,021 22,522
Cost of shares
redeemed.............. (7,324) (50,312) (39,409) (2,226) (141) (95,223) (110,755)
------- -------- -------- ------- ------ -------- ---------
Change in net assets
from capital
transactions........... 20,644 (36,597) (4,691) 16,051 7,994 (4,433) 8,640
------- -------- -------- ------- ------ -------- ---------
Change in net assets.... 22,611 (57,346) (10,231) 16,464 7,315 (9,379) 8,980
Net Assets:
Beginning of period.... -- 139,607 149,838 7,315 -- 381,749 372,769
------- -------- -------- ------- ------ -------- ---------
End of period.......... $22,611 $ 82,261 $139,607 $23,779 $7,315 $372,370 $ 381,749
======= ======== ======== ======= ====== ======== =========
Share Transactions:
Issued................. 2,492 419 1,076 2,300 815 4,511 6,447
Reinvested............. 8 159 105 -- -- 1,666 1,540
Redeemed............... (597) (2,125) (1,354) (279) (15) (6,379) (7,345)
------- -------- -------- ------- ------ -------- ---------
Change in shares........ 1,903 (1,547) (173) 2,021 800 (202) 642
======= ======== ======== ======= ====== ======== =========
</TABLE>
- --------
(a) For the period from March 2, 1998 (commencement of operations) through July
31, 1998.
(b) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
(c) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(d) For the period from September 3, 1997(commencement of operations) through
July 31, 1998.
(e) For the period from September 2, 1997(commencement of operations) through
July 31, 1998.
(f) For the period from December 3, 1998 (commencement of operations) through
July 31, 1999.
(g) For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-43-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Limited Maturity Government Income
Fund Fund Bond Fund
--------------------- ------------------ ------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31,
1999 1998 1999 1998 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................. $ 6,321 $ 6,785 $ 513 $ 632 $ 19,836 $ 18,122
Net realized gains
(losses) from
investment
transactions........... 464 847 51 145 3,588 3,531
Net change in unrealized
appreciation
(depreciation) from
investments............ (2,240) (738) (283) 2 (15,033) 1,192
-------- -------- ------- ------- -------- --------
Change in net assets
resulting from
operations.............. 4,545 6,894 281 779 8,391 22,845
-------- -------- ------- ------- -------- --------
Distributions to Classic
Shareholders:
From net investment
income................. (163) (794) (360) (513) (385) (1,784)
In excess of net
investment income...... -- -- -- (48) -- --
From net realized gains
from investment
transactions........... -- -- -- -- (87) (18)
Distributions to Premier
Shareholders:
From net investment
income................. (5,930) (6,023)(a) (141) (57)(a) (18,671) (16,698)(a)
In excess of net
investment income...... -- -- (a) -- (15)(a) -- -- (a)
From net realized gains
from investment
transactions........... -- -- (a) -- -- (a) (3,997) (788)(a)
Distributions to Class B
Shareholders:
From net investment
income................. (20)(c) -- -- -- (77) (9)(b)
From net realized gains
from investment
transactions........... -- (c) -- -- -- (18) -- (b)
-------- -------- ------- ------- -------- --------
Change in net assets
resulting from
shareholder
distributions........... (6,113) (6,817) (501) (633) (23,235) (19,297)
-------- -------- ------- ------- -------- --------
Capital Transactions:
Proceeds from shares
issued................. 31,324 20,184 2,636 3,053 122,886 99,873
Dividends reinvested.... 709 633 240 320 5,561 5,321
Cost of shares redeemed. (27,080) (49,085) (4,767) (4,444) (59,190) (85,219)
-------- -------- ------- ------- -------- --------
Change in net assets from
capital transactions.... 4,953 (28,268) (1,891) (1,071) 69,257 19,975
-------- -------- ------- ------- -------- --------
Change in net assets..... 3,385 (28,191) (2,111) (925) 54,413 23,523
Net Assets:
Beginning of period..... 110,484 138,675 10,697 11,622 335,404 311,881
-------- -------- ------- ------- -------- --------
End of period........... $113,869 $110,484 $ 8,586 $10,697 $389,817 $335,404
======== ======== ======= ======= ======== ========
Share Transactions:
Issued.................. 2,987 1,930 266 310 11,159 9,081
Reinvested.............. 68 61 24 33 500 485
Redeemed................ (2,579) (4,702) (481) (451) (5,321) (7,771)
-------- -------- ------- ------- -------- --------
Change in shares......... 476 (2,711) (191) (108) 6,338 1,795
======== ======== ======= ======= ======== ========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 16, 1997 (commencement of operations) through
July 31, 1998.
(c) For the period from January 21, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-44-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Municipal Bond Florida Tax-Free
Fund Fund
------------------ ---------------------
Year Year Year Year
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income (loss). $ 13,414 $ 14,134 $ 2,897 $ 2,435
Net realized gains (losses)
from investment
transactions................ 2,189 3,647 376 418
Net change in unrealized
appreciation (depreciation)
from investments............ (7,994) (3,346) (2,004) (353)
-------- -------- -------- --------
Change in net assets resulting
from operations.............. 7,609 14,435 1,269 2,500
-------- -------- -------- --------
Distributions to Classic
Shareholders:
From net investment income... (88) (1,218) (388) (413)
From net realized gains from
investment transactions..... (21) (5) (50) (25)
Distributions to Premier
Shareholders:
From net investment income... (12,760) (12,911)(a) (2,374) (2,016)(a)
In excess of net investment
income...................... -- (6)(a) -- (1)(a)
From net realized gains from
investment transactions..... (3,342) (816)(a) (333) (322)(a)
Distributions to Class B
Shareholders:
From net investment income... -- -- (4)(b) --
-------- -------- -------- --------
Change in net assets resulting
from shareholder
distributions................ (16,211) (14,956) (3,149) (2,777)
-------- -------- -------- --------
Capital Transactions:
Proceeds from shares issued.. 52,433 54,703 25,737 24,956
Dividends reinvested......... 265 100 458 218
Cost of shares redeemed...... (49,246) (63,062) (12,035) (14,553)
-------- -------- -------- --------
Change in net assets from
capital transactions......... 3,452 (8,259) 14,160 10,621
-------- -------- -------- --------
Change in net assets.......... (5,150) (8,780) 12,280 10,344
Net Assets:
Beginning of period.......... 329,153 337,933 64,032 53,688
-------- -------- -------- --------
End of period................ $324,003 $329,153 $ 76,312 $ 64,032
======== ======== ======== ========
Share Transactions:
Issued....................... 5,171 5,391 2,447 2,383
Reinvested................... 27 10 43 21
Redeemed..................... (4,836) (6,210) (1,146) (1,392)
-------- -------- -------- --------
Change in shares.............. 362 (809) 1,344 1,012
======== ======== ======== ========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic 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 March 16, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-45-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
U.S. Treasury Fund Prime Obligations Fund
-------------------- ------------------------
Year Year Year Year
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
1999 1998 1999 1998
--------- --------- ----------- -----------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income (loss). $ 12,933 $ 14,654 $ 31,049 $ 31,203
Net realized gains (losses)
from investment
transactions................ -- 7 2 --
--------- --------- ----------- -----------
Change in net assets resulting
from operations.............. 12,933 14,661 31,051 31,203
--------- --------- ----------- -----------
Distributions to Classic
Shareholders:
From net investment income... (259) (350) (5,916) (5,957)
Distributions to Premier
Shareholders:
From net investment income... (12,674) (14,304) (25,128) (25,246)
Distributions to Class B
Shareholders:
From net investment income... -- -- (5) --
--------- --------- ----------- -----------
Change in net assets resulting
from shareholder
distributions................ (12,933) (14,654) (31,049) (31,203)
--------- --------- ----------- -----------
Capital Transactions:
Proceeds from shares issued.. 767,190 969,887 1,839,819 1,553,766
Dividends reinvested......... 909 737 7,705 7,810
Cost of shares redeemed...... (802,987) (929,752) (1,771,260) (1,492,634)
--------- --------- ----------- -----------
Change in net assets from
capital transactions......... (34,888) 40,872 76,264 68,942
--------- --------- ----------- -----------
Change in net assets.......... (34,888) 40,879 76,266 68,942
Net Assets:
Beginning of period.......... 360,125 319,246 596,935 527,993
--------- --------- ----------- -----------
End of period................ $ 325,237 $ 360,125 $ 673,201 $ 596,935
========= ========= =========== ===========
Share Transactions:
Issued....................... 767,190 969,887 1,839,819 1,553,766
Reinvested................... 909 737 7,705 7,810
Redeemed..................... (802,987) (929,752) (1,771,260) (1,492,634)
--------- --------- ----------- -----------
Change in shares.............. (34,888) 40,872 76,264 68,942
========= ========= =========== ===========
</TABLE>
See notes to financial statements.
-46-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Institutional
Prime
Obligations
Fund Tax-Exempt Fund
------------- --------------------
Period Year Year
Ended Ended Ended
July 31, July 31, July 31,
1999 (a) 1999 1998
------------- --------- ---------
<S> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income (loss)........... $ 4,736 $ 2,582 $ 2,696
Net realized gains (losses) from
investment transactions............... -- 1 --
--------- --------- ---------
Change in net assets resulting from
operations............................. 4,736 2,583 2,696
--------- --------- ---------
Distributions to Classic Shareholders
(b):
From net investment income............. (4,300) (660) (691)
Distributions to Premier Shareholders
(c):
From net investment income............. (306)(e) (1,922) (2,005)
Distributions to Class B Shareholders
(d):
From net investment income............. (130)(f) -- --
--------- --------- ---------
Change in net assets resulting from
shareholder distributions.............. (4,736) (2,582) (2,696)
--------- --------- ---------
Capital Transactions:
Proceeds from shares issued............ 468,518 236,615 225,711
Dividends reinvested................... -- 691 698
Cost of shares redeemed................ (359,485) (231,324) (219,023)
--------- --------- ---------
Change in net assets from capital
transactions........................... 109,033 5,982 7,386
--------- --------- ---------
Change in net assets.................... 109,033 5,983 7,386
Net Assets:
Beginning of period.................... -- 90,741 83,355
--------- --------- ---------
End of period.......................... $ 109,033 $ 96,724 $ 90,741
========= ========= =========
Share Transactions:
Issued................................. 468,518 236,615 225,711
Reinvested............................. -- 691 698
Redeemed............................... (359,485) (231,324) (219,023)
--------- --------- ---------
Change in shares........................ 109,033 5,982 7,386
========= ========= =========
</TABLE>
- --------
(a) For the period from September 15, 1998 (commencement of operations) through
July 31, 1999.
(b) Class I shares for the Institutional Prime Obligations Fund.
(c) Class II shares for the Institutional Prime Obligations Fund.
(d) Class III shares for the Institutional Prime Obligations Fund.
(e) For the period from February 19, 1999 (commencement of operations) through
July 31, 1999.
(f) For the period from February 22, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-47-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Income Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks & Securities Convertible to
Common Stock (99.8%):
Basic Materials (3.2%):
8,600 E.I. du Pont de Nemours & Co. ............................. $ 620
10,600 Sealed Air Corp., CVT. PFD., 4/1/18........................ 652
-------
1,272
-------
Capital Goods/Diversified (6.5%):
9,700 Emerson Electric Co. ...................................... 579
10,400 General Electric Co. ...................................... 1,134
31,000 Ingersoll-Rand Co., 6.75%, CVT. PFD., 12/31/49............. 930
-------
2,643
-------
Consumer Cyclical (2.3%):
8,450 Ford Motor Co. ............................................ 411
8,500 Mattel, Inc. .............................................. 200
11,700 Tribune/The Learning Co., 6.25%, CVT. PFD., 8/1/01......... 304
-------
915
-------
Energy (6.7%):
9,300 Mobil Corp. ............................................... 951
16,000 Shell Transport & Trading Co. PLC (ADR).................... 773
23,200 Williams Cos., Inc. ....................................... 976
-------
2,700
-------
Finance (14.8%):
19,350 Citigroup Inc. ............................................ 862
8,700 Fannie Mae................................................. 600
6,775 J.P. Morgan & Co., Inc. ................................... 866
8,750 Jefferson Pilot/Bank America (ACES)........................ 980
44,400 Lincoln National Corp., 7.75%, CVT. PFD., 8/16/01.......... 1,188
10,000 Merrill Lynch & Co., Inc. ................................. 681
28,000 National Australia Bank, 7.88%, CVT. PFD., 12/31/49........ 791
-------
5,968
-------
Healthcare (11.2%):
12,900 American Home Products Corp. .............................. 658
770,000 Athena Neurosciences Inc., 4.75%, CVT. BD., 11/15/04....... 823
11,800 Bristol-Myers Squibb Co. .................................. 785
450,000 Centocor Inc./JNJ.......................................... 576
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks & Securities Convertible to
Common Stock, continued:
Healthcare, continued:
4,000 Johnson & Johnson.......................................... $ 369
16,700 Monsanto (ACES) 6.50%, CVT. PFD., 11/30/01................. 685
11,500 Pharmacia & Upjohn Inc. ................................... 619
-------
4,515
-------
Retailing (5.9%):
1,340,000 Costco Companies........................................... 1,185
13,800 Dollar General............................................. 365
11,000 Dollar General STRYPES Trust............................... 456
390,000 Rite Aid Corp. ............................................ 379
-------
2,385
-------
Services (5.6%):
19,900 McDonald's Corp. .......................................... 830
390,000 Omnicom Group.............................................. 888
20,300 The Walt Disney Co. ....................................... 561
-------
2,279
-------
Staples (7.6%):
8,000 Coca Cola Co. ............................................. 483
6,200 Estee Lauder............................................... 570
8,800 Hershey Foods Corp. ....................................... 510
17,400 McCormick & Co., Inc. ..................................... 575
13,500 Quaker Oats Co. ........................................... 919
-------
3,057
-------
Technology (24.1%):
32,700 Amdocs LTD., 6.75%, CVT. PFD., 9/11/02..................... 834
13,400 Corning Glass Works........................................ 938
180,000 EMC Corp., 3.25%, CVT. BD., 3/15/02........................ 976
6,400 IBM Corp. ................................................. 804
4,400 Intel Corp. ............................................... 304
290,000 Level One Communications/Intel............................. 674
9,300 Motorola, Inc. ............................................ 849
26,000 Nextel STRYPES Trust....................................... 1,179
12,600 Pitney Bowes, Inc. ........................................ 802
7,300 Texas Instruments, Inc. ................................... 1,050
10,800 United Technologies Corp. ................................. 720
11,900 Xerox Corp. ............................................... 580
-------
9,710
-------
</TABLE>
Continued
-48-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Income Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks & Securities Convertible to
Common Stock, continued:
Transportation (0.9%):
7,400 Union Pacific Corp. ....................................... 381
-------
Utilities (10.5%):
12,200 Ameritech Corp. ........................................... $ 894
24,700 BCE, Inc. ................................................. 1,227
20,300 Nisource Inc. ............................................. 974
32,100 Skytel Communications Inc./WorldCom (b).................... 1,156
-------
4,251
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Investment Companies (0.5%):
208,614 AmSouth Prime Obligations Fund............................. 209
-------
Total Common Stocks & Securities Convertible to Common Stock 40,285
-------
Total (Cost $36,192) (a) $40,285
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $40,353.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $137.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......... $4,918
Unrealized depreciation......... (962)
------
Net unrealized appreciation..... $3,956
======
</TABLE>
(b) Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Security Act of 1933, as amended. These
securities have been deemed liquid under guidelines established by the
Board of Trustees.
ACES--Automatic Common Exchange Securities
ADR--American Depository Receipt
CVT. PFD.--Convertible Preferred
CVT. BD.--Convertible Bond
PLC--Public Limited Co.
STRYPES--Structured Yield Product Exchangeable for Stock
<TABLE>
<CAPTION>
Breakdown of Sectors
- --------------------
<S> <C>
Common Stocks...................... 58.3%
Convertible Preferred Stocks....... 27.5%
Convertible Bonds.................. 13.7%
Investment Companies............... 0.5%
------
Total............................. 100.0%
======
</TABLE>
See notes to financial statements.
-49-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks (97.3%):
Apparel (0.5%):
600,000 Phillips-Van Heusen Corp. .............................. $ 5,100
----------
Automotive (1.6%):
336,000 Ford Motor Co. ......................................... 16,338
----------
Automotive Parts (1.4%):
392,000 Arvin Industries, Inc. ................................. 14,651
----------
Banking (5.2%):
190,000 Bank of America Corp. .................................. 12,611
60,000 Bank One Corp. ......................................... 3,274
285,000 First Union Corp. ...................................... 13,110
735,000 Washington Mutual, Inc. ................................ 25,220
----------
54,215
----------
Beverages (1.6%):
400,000 Diageo PLC ADR.......................................... 16,400
----------
Business Services (1.8%):
815,000 Reynolds & Reynolds Co., Class A........................ 19,153
----------
Chemicals-Speciality (2.7%):
1,025,000 Engelhard Corp. ........................................ 22,870
355,000 M.A. Hanna Co. ......................................... 5,680
----------
28,550
----------
Computer Hardware (2.1%):
177,000 IBM Corp. .............................................. 22,247
----------
Computers & Peripherals (1.5%):
1,285,000 Cabletron Systems, Inc. (b)............................. 15,500
----------
Consumer Goods (2.1%):
740,000 American Greetings Corp., Class A....................... 21,738
----------
Electrical & Electronic (1.1%):
230,000 Avnet, Inc. ............................................ 11,270
----------
Financial Services (2.0%):
660,000 Dun & Bradstreet Corp. ................................. 20,955
----------
Food Processing & Packaging (2.6%):
165,000 Dole Food, Inc. ........................................ 4,352
855,000 Sara Lee Corp. ......................................... 18,810
180,000 Universal Foods Corp. .................................. 3,926
----------
27,088
----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Forest & Paper Products (6.4%):
50,000 Champion International Corp. ........................... $ 2,588
480,000 International Paper Co. ................................ 24,540
370,000 Weyerhauser Co. ........................................ 23,934
350,000 Willamette Industries, Inc. ............................ 15,750
----------
66,812
----------
Health Care (3.3%):
225,000 Aetna, Inc. ............................................ 18,450
260,000 United Healthcare Corp. ................................ 15,860
----------
34,310
----------
Household Products/Wares (2.6%):
620,000 Newell Rubbermaid, Inc. ................................ 26,815
----------
Insurance (5.1%):
25,000 Chubb Corp. ............................................ 1,495
360,000 Marsh & McLennan Cos., Inc. ............................ 27,360
790,000 St. Paul Cos., Inc. .................................... 24,589
----------
53,444
----------
Manufacturing (0.3%):
123,800 Kennametal, Inc. ....................................... 2,987
----------
Medical Supplies (3.5%):
540,000 C.R. Bard, Inc. ........................................ 26,257
365,000 DENTSPLY International, Inc. ........................... 9,878
----------
36,135
----------
Metals & Mining (0.2%):
120,000 Barrick Gold Corp. ..................................... 2,228
----------
Newspapers (3.8%):
230,000 Dow Jones & Co., Inc. .................................. 11,471
395,000 Gannett Co., Inc. ...................................... 28,539
----------
40,010
----------
Oil & Gas Exploration, Production, & Services (14.5%):
240,000 Atlantic Richfield Co. ................................. 21,615
325,000 Burlington Resources, Inc. ............................. 14,361
510,000 Kerr-McGee Corp. ....................................... 26,264
190,000 Noble Affiliates........................................ 5,558
750,000 Sunoco, Inc. ........................................... 22,875
432,000 Texaco, Inc. ........................................... 26,918
</TABLE>
Continued
-50-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas Exploration, Production, & Services, continued:
710,000 Ultramar Diamond Shamrock Corp. ........................ $ 16,774
610,000 USX-Marathon Group...................................... 18,529
----------
152,894
----------
Packaging (0.7%):
250,000 Crown Cork & Seal, Inc. ................................ 7,328
----------
Pharmaceuticals (5.4%):
170,000 American Home Products Corp. ........................... 8,670
335,000 Baxter International, Inc. ............................. 23,010
450,000 Pharmacia & Upjohn, Inc. ............................... 24,216
----------
55,896
----------
Pollution Control Services & Equipment (1.0%):
391,500 Waste Management, Inc. ................................. 10,008
----------
Railroads (1.6%):
350,000 CSX Corp. .............................................. 16,953
----------
Retail (10.3%):
440,000 CVS Corp. .............................................. 21,890
300,000 Dayton Hudson Corp. .................................... 19,406
540,000 Dillard's, Inc., Class A................................ 16,639
600,000 May Department Stores Co. .............................. 23,212
120,000 The Limited, Inc. ...................................... 5,483
500,000 Wal-Mart Stores, Inc. .................................. 21,125
----------
107,755
----------
Temporary Services (0.6%):
700,000 Olsten Corp. ........................................... 5,906
----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Transportation Leasing & Trucking (2.3%):
525,000 Ryder System, Inc. .................................... $ 12,370
243,000 US Freightways Corp. .................................. 11,998
----------
24,368
----------
Utilities--Electric & Gas (3.5%):
615,000 Constellation Energy Group............................. 18,027
40,000 New Century Energies, Inc. ............................ 1,388
650,000 Southern Co. .......................................... 17,184
----------
36,599
----------
Utilities--Telecommunications (6.0%):
435,000 AT&T Corp. ............................................ 22,593
363,216 BellAtlantic Corp. .................................... 23,155
358,000 BellSouth Corp. ....................................... 17,184
----------
62,932
----------
Total Common Stocks 1,016,585
----------
Commercial Paper--Domestic (1.0%):
Automotive--Finance (1.0%):
$ 10,000 General Motors Acceptance Corp., 5.11%, 8/5/99 ........ 10,000
----------
Total Commercial Paper--Domestic 10,000
----------
Investment Companies (1.6%):
16,400,161 AmSouth Prime Obligations Fund......................... 16,400
184,508 AmSouth U.S. Treasury Fund............................. 185
----------
Total Investment Companies 16,585
----------
Total (Cost $711,667) (a) $1,043,170
==========
</TABLE>
- --------
Percentages indicated are based on net assets of $1,043,794.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $891.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $353,248
Unrealized depreciation....... (22,636)
--------
Net unrealized appreciation... $330,612
========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-51-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (91.1%):
Aerospace/Defense (1.8%):
2,600 Alliedsignal, Inc. .......................................... $ 169
3,400 Boeing Co. .................................................. 154
300 General Dynamics Corp. ...................................... 20
2,200 Lockheed Martin Corp. ....................................... 77
100 Northrop Grumman Corp. ...................................... 7
900 Raytheon Company, Class B.................................... 63
2,100 United Technologies Corp. ................................... 140
--------
630
--------
Agriculture (0.1%):
500 Pioneer Hi-Bred International Inc. .......................... 19
--------
Air Freight (0.2%):
1,700 FDX Corp. (b)................................................ 76
--------
Airlines (0.5%):
900 AMR Corp. (b)................................................ 58
800 Delta Air Lines, Inc. ....................................... 48
2,700 Southwest Airlines........................................... 50
400 US Airways Group, Inc. (b)................................... 14
--------
170
--------
Apparel (0.1%):
300 Fruit of the Loom Inc. (b)................................... 2
300 Liz Claiborne, Inc. ......................................... 12
200 Reebok International Ltd. (b)................................ 2
100 Russell Corp. ............................................... 2
700 V F Corp. ................................................... 28
--------
46
--------
Appliances (0.0%):
100 Maytag Corp. ................................................ 7
100 Whirlpool Corp. ............................................. 7
--------
14
--------
Automotive (1.4%):
5,500 Ford Motor Co. .............................................. 268
3,400 General Motors Corp. ........................................ 207
400 Navistar International (b)................................... 18
200 PACCAR, Inc. ................................................ 11
--------
504
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Automotive Parts (0.4%):
200 Cooper Tire & Rubber Co. .................................... $ 5
900 Dana Corp. .................................................. 38
1,737 Delphi Automotive Systems.................................... 31
300 Genuine Parts Co. ........................................... 9
300 Goodyear Tire & Rubber Co. .................................. 16
700 TRW, Inc. ................................................... 37
--------
136
--------
Banking (5.7%):
4,800 Bank of America Corp. ....................................... 319
1,700 Bank of Boston Corp. ........................................ 80
3,500 Bank of New York Co., Inc. .................................. 129
1,748 Bank One Corp. .............................................. 95
3,800 Chase Manhattan Corp. ....................................... 292
900 Comerica, Inc. .............................................. 50
1,100 First Union Corp. ........................................... 51
3,900 Firstar Corp. ............................................... 102
660 Huntington Bancshares, Inc. ................................. 20
1,000 J.P. Morgan & Co., Inc. ..................................... 128
3,200 MBNA Corp. .................................................. 91
2,900 Mellon Bank Corp. ........................................... 98
300 Mercantile Bancorp. ......................................... 16
3,600 National City Corp. ......................................... 107
800 PNC Financial Corp. ......................................... 42
600 Regions Financial Corp. ..................................... 21
600 Republic New York Corp. ..................................... 42
400 SouthTrust Corp. ............................................ 15
300 Summit Bancorp. ............................................. 11
900 SunTrust Banks, Inc. ........................................ 58
400 Synovus Financial Corp. ..................................... 7
600 Wachovia Corp. .............................................. 47
1,700 Washington Mutual, Inc. ..................................... 58
2,500 Wells Fargo Co. ............................................. 98
--------
1,977
--------
Beverages (2.0%):
200 Adolph Coors Co. Class B..................................... 11
1,300 Anheuser-Busch Co., Inc. .................................... 103
5,400 Coca-Cola Co. ............................................... 325
5,000 PepsiCo, Inc. ............................................... 196
1,100 Seagram Co. Ltd. ............................................ 56
--------
691
--------
</TABLE>
Continued
-52-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Biotechnology (0.5%):
2,100 Amgen, Inc. (b).............................................. $ 162
50 Pe Corp. Celera Genomics (b)................................. 1
--------
163
--------
Broadcasting/Cable (0.2%):
2,100 Comcast Corp.--Special Class A............................... 81
--------
Brokerage Services (1.4%):
100 Bear Stearns Co., Inc. ...................................... 4
2,800 Charles Schwab Corp. ........................................ 123
500 Lehman Brothers Holdings, Inc. .............................. 27
1,300 Merrill Lynch & Co., Inc. ................................... 88
2,700 Morgan Stanley Dean Witter & Co. ............................ 244
--------
486
--------
Business Services (0.2%):
1,700 Automatic Data Processing, Inc. ............................. 68
--------
Chemicals (1.8%):
600 Air Products and Chemicals, Inc. ............................ 20
3,900 E.I. du Pont de Nemours & Co. ............................... 280
300 Great Lakes Chemical Corp. .................................. 13
400 Hercules, Inc. .............................................. 14
2,700 Monsanto Co. ................................................ 106
400 Nalco Chemical Co. .......................................... 21
1,000 PPG Industries, Inc. ........................................ 60
900 Praxair, Inc. ............................................... 42
384 Rohm & Haas Co. ............................................. 16
900 Sherwin Williams Co. ........................................ 24
200 Sigma Aldrich Corp. ......................................... 7
400 Union Carbide Corp. ......................................... 19
100 W.R.Grace and Co. (b)........................................ 2
--------
624
--------
Chemicals--Speciality (0.1%):
800 Engelhard Corp. ............................................. 18
--------
Commercial Services (0.4%):
4,220 Cendant Corp. (b)............................................ 84
300 Deluxe Corp. ................................................ 11
117 Gartner Group, Inc. (b)...................................... 3
900 Laidlaw, Inc. ............................................... 6
600 Paychex, Inc. ............................................... 17
1,300 Service Corp. International.................................. 21
--------
142
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Computer Hardware (4.4%):
400 Apple Computer, Inc. (b)..................................... $ 22
6,500 Compaq Computer Corp. ....................................... 156
100 Data General Corp. (b)....................................... 1
9,400 Dell Computer Corp. (b)...................................... 384
400 Gateway, Inc. (b)............................................ 30
5,500 IBM Corp. ................................................... 692
3,400 Sun Microsystems, Inc. (b)................................... 231
--------
1,516
--------
Computer Software (5.2%):
200 Adobe Systems, Inc. ......................................... 17
100 Autodesk, Inc. .............................................. 3
2,500 Computer Associates International, Inc. ..................... 115
600 Computer Sciences Corp. (b).................................. 39
1,000 Compuware Corp. (b).......................................... 28
15,600 Microsoft Corp. (b).......................................... 1,338
900 Novell, Inc. (b)............................................. 23
5,500 Oracle Corp. (b)............................................. 208
700 Parametric Technology Corp. (b).............................. 10
700 Peoplesoft, Inc. (b)......................................... 10
--------
1,791
--------
Computers & Peripherals (4.0%):
1,200 3Com Corp. (b)............................................... 29
500 Cabletron Systems, Inc. (b).................................. 6
700 Ceridian Corp. (b)........................................... 20
9,500 Cisco Systems, Inc. (b)...................................... 589
2,100 Electronic Data Systems Corp. ............................... 127
2,800 EMC Corp. (b)................................................ 170
3,700 Hewlett-Packard Co. ......................................... 387
1,100 Seagate Technology, Inc. (b)................................. 30
500 Silicon Graphics, Inc. (b)................................... 9
400 Unisys Corp. (b)............................................. 16
--------
1,383
--------
Consumer Goods (1.3%):
300 American Greetings Corp., Class A............................ 9
500 Brunswick Corp. ............................................. 14
4,100 Gillette Co. ................................................ 180
2,600 Procter & Gamble Co. ........................................ 234
--------
437
--------
</TABLE>
Continued
-53-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Cosmetics/Personal Care (0.6%):
200 Alberto Culver Co. Class B................................... $ 5
700 Avon Products, Inc. ......................................... 32
100 International Flavors & Fragrances, Inc. .................... 5
2,500 Kimberly Clark Corp. ........................................ 152
--------
194
--------
Diversified Manufacturing (4.3%):
500 Cooper Industries............................................ 27
300 Crane Co. ................................................... 8
300 Eaton Corp. ................................................. 30
200 FMC Corp. (b)................................................ 14
10,200 General Electric Co. ........................................ 1,111
1,800 Minnesota Mining & Manufacturing Co. ........................ 158
200 Raychem Corp. ............................................... 8
900 Tenneco, Inc. ............................................... 21
400 Textron, Inc. ............................................... 33
972 Tyco International Ltd. ..................................... 95
--------
1,505
--------
Electric Utility (0.0%):
500 Niagara Mohawk Holdings Inc. (b)............................. 8
--------
Electrical & Electronic (0.0%):
400 Ameren Corp. ................................................ 16
--------
Electronic Components (0.3%):
700 LSI Logic Corp. (b).......................................... 35
100 Millipore Corp. ............................................. 4
700 Solectron Corp. (b).......................................... 46
200 Tektronix, Inc. ............................................. 6
--------
91
--------
Electronic Components/ Instruments (0.5%):
100 E G & G, Inc. ............................................... 3
2,200 Emerson Electric Co. ........................................ 131
300 Johnson Controls, Inc. ...................................... 21
100 Parker-Hannifin Corp. ....................................... 5
200 Pe Corp. Biosystems.......................................... 11
--------
171
--------
Engineering & Construction (0.0%):
400 Fluor Corp. ................................................. 16
100 Foster Wheeler Corp. ........................................ 1
--------
17
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Entertainment (0.2%):
600 Harrah's Entertainment, Inc. (b)............................. $ 13
2,600 The Walt Disney Co. ......................................... 72
--------
85
--------
Environmental Control (0.1%):
400 Browning-Ferris Industries, Inc. ............................ 18
--------
Financial Services (4.0%):
1,700 American Express Co. ........................................ 224
2,000 Associates First Capital..................................... 77
1,000 Capital One Financial Corp. ................................. 46
10,000 Citigroup, Inc. ............................................. 445
500 Countrywide Credit Industries, Inc. ......................... 19
300 Dun & Bradstreet Corp. ...................................... 10
3,300 Fannie Mae................................................... 227
2,400 Freddie Mac.................................................. 138
200 Golden West Financial Corp. ................................. 19
2,400 Household International, Inc. ............................... 103
750 Providian Financial.......................................... 68
300 SLM Holding Corp. ........................................... 14
--------
1,390
--------
Food Distributors & Wholesalers (0.3%):
945 Albertsons, Inc. ............................................ 47
2,400 Archer-Daniels-Midland Co. .................................. 34
100 Great Atlantic & Pacific Tea Co., Inc. ...................... 3
600 Kroger Co. (b)............................................... 16
--------
100
--------
Food Products, Processing & Packaging (1.4%):
1,600 Bestfoods.................................................... 78
1,200 Campbell Soup Co. ........................................... 53
900 General Mills, Inc. ......................................... 75
2,000 H.J. Heinz Co. .............................................. 94
300 Hershey Foods Corp. ......................................... 17
1,800 Nabisco Group................................................ 34
600 Quaker Oats Co. ............................................. 41
1,550 Unilever NV-W/I ADR.......................................... 108
--------
500
--------
Forest & Paper Products (0.6%):
100 Boise Cascade Corp. ......................................... 4
500 Champion International Corp. ................................ 26
1,200 Fort James Corp. ............................................ 44
</TABLE>
Continued
-54-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Forest & Paper Products, continued:
500 Georgia Pacific Corp. ....................................... $ 22
45 International Paper Co. ..................................... 2
600 Louisiana Pacific Corp. ..................................... 13
600 Mead Corp. .................................................. 25
100 Potlatch Corp. .............................................. 4
600 Westvaco Corp. .............................................. 18
600 Weyerhauser Co. ............................................. 39
--------
197
--------
Gas Distribution (0.6%):
600 Coastal Corp. ............................................... 24
200 Columbia Energy Group........................................ 12
300 Consolidated Natural Gas..................................... 19
1,000 Enron Corp. ................................................. 84
100 Nicor, Inc. ................................................. 4
100 Oneok, Inc. ................................................. 3
700 Sempra Energy................................................ 16
300 Sonat, Inc. ................................................. 11
1,200 Williams Cos., Inc. ......................................... 50
--------
223
--------
Health Care (0.3%):
400 Aetna, Inc. ................................................. 32
400 HCR Manor Care (b)........................................... 8
2,200 HEALTHSOUTH Corp. (b)........................................ 27
900 Humana, Inc. (b)............................................. 10
600 Tenet Healthcare Corp. (b)................................... 11
--------
88
--------
Health Care Services (0.1%):
900 IMS Health, Inc. ............................................ 25
470 Mckesson HBOC, Inc. ......................................... 15
--------
40
--------
Home Builders (0.0%):
100 Centex Corp. ................................................ 4
100 Kaufman & Broad Home Corp. .................................. 2
100 Pulte Corp. ................................................. 2
--------
8
--------
Hotels & Lodging (0.3%):
2,400 Carnival Corp. .............................................. 111
500 Hilton Hotels Corp. ......................................... 7
--------
118
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Household Products/Wares (0.3%):
700 Clorox Corp. ................................................ $ 79
800 Fortune Brands, Inc. ........................................ 32
100 Jostens, Inc. ............................................... 2
72 Newell Rubbermaid, Inc. ..................................... 3
100 Tupperware Corp. ............................................ 2
--------
118
--------
Insurance (2.9%):
503 Aegon Nv..................................................... 38
3,800 Allstate Corp. .............................................. 135
3,700 American International Group, Inc. .......................... 430
300 Chubb Corp. ................................................. 18
1,200 Cigna Corp. ................................................. 106
400 Cincinnati Financial Corp. .................................. 15
1,300 Hartford Financial Services Group............................ 70
200 Jefferson Pilot Corp. ....................................... 15
300 Lincoln National Corp. ...................................... 15
600 Loews Corp. ................................................. 42
600 MBIA, Inc. .................................................. 34
400 MGIC Investment Corp. ....................................... 20
400 Safeco Corp. ................................................ 15
300 St. Paul Cos., Inc. ......................................... 9
1,165 Unumprovident Corp. ......................................... 60
--------
1,022
--------
Internet Software (1.1%):
3,900 America Online, Inc. (b)..................................... 371
--------
Machinery & Equipment (0.3%):
100 Briggs & Stratton Corp. ..................................... 6
900 Deere & Co. ................................................. 34
900 Ingersoll Rand Co. .......................................... 58
100 Milacron Inc. ............................................... 2
100 Snap-On, Inc. ............................................... 4
900 Thermo Electron (b).......................................... 15
--------
119
--------
Media (1.3%):
2,900 CBS Corp. (b)................................................ 127
400 King World Productions, Inc. (b)............................. 14
1,100 McGraw Hill Cos., Inc. ...................................... 56
500 MediaOne Group, Inc. (b)..................................... 36
100 Meredith Corp. .............................................. 4
</TABLE>
Continued
-55-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Media, continued:
2,000 Time Warner, Inc. ........................................... $ 144
1,900 Viacom, Inc., Class B (b).................................... 80
--------
461
--------
Medical Supplies (0.9%):
300 Allergan, Inc. .............................................. 28
300 Bausch & Lomb, Inc. ......................................... 22
1,000 Becton Dickinson & Co. ...................................... 27
300 Biomet, Inc. ................................................ 11
1,600 Guidant Corp. ............................................... 94
400 Mallinckrodt, Inc. .......................................... 14
1,600 Medtronic, Inc. ............................................. 115
200 St Jude Medical, Inc. (b).................................... 7
--------
318
--------
Metals & Mining (0.6%):
600 Alcan Aluminum Ltd. ......................................... 18
1,900 Alcoa, Inc. ................................................. 113
100 Asarco, Inc. ................................................ 2
1,000 Barrick Gold Corp. .......................................... 19
300 Battle Mountain Gold Co. .................................... 1
300 Cyprus Amax Minerals Co. .................................... 4
500 Freeport-McMoRan Copper & Gold, Inc. ........................ 8
600 Homestake Mining............................................. 5
500 Inco Ltd. ................................................... 9
900 Newmont Mining Corp. ........................................ 17
500 Placer Dome, Inc. ........................................... 5
400 Reynolds Metals Co. ......................................... 22
--------
223
--------
Newspapers (0.4%):
200 Dow Jones & Co., Inc. ....................................... 10
1,600 Gannett Co., Inc. ........................................... 116
100 Knight-Ridder, Inc. ......................................... 5
500 New York Times Co. .......................................... 20
--------
151
--------
Office Equipment & Services (0.2%):
300 Avery Dennison Corp. ........................................ 18
400 Harris Corp. ................................................ 12
100 Moore Corp. Ltd. ............................................ 1
800 Pitney Bowes, Inc. .......................................... 51
--------
82
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas Exploration, Production, & Services (6.6%):
100 Amerada Hess Corp. .......................................... $ 6
100 Anadarko Petroleum........................................... 4
200 Apache Corp. ................................................ 8
400 Ashland, Inc. ............................................... 15
1,800 Atlantic Richfield Co. ...................................... 162
1,852 Baker Hughes, Inc. .......................................... 64
500 Burlington Resources, Inc. .................................. 22
1,800 Chevron Corp. ............................................... 164
7,300 Exxon Corp. ................................................. 580
1,200 Halliburton Co. ............................................. 55
200 Helmerich & Payne, Inc. ..................................... 5
510 Kerr-McGee Corp. ............................................ 26
3,500 Mobil Corp. ................................................. 358
500 Occidental Petroleum Corp. .................................. 10
1,400 Phillips Petroleum Co. ...................................... 72
200 Rowan Cos., Inc. (b)......................................... 4
6,000 Royal Dutch Petroleum Co. ................................... 367
2,400 Schlumberger Ltd. ........................................... 145
2,800 Texaco, Inc. ................................................ 174
500 Union Pacific Resources Group................................ 9
1,700 USX-Marathon Group........................................... 52
--------
2,302
--------
Packaging (0.1%):
300 Crown Cork & Seal, Inc. ..................................... 9
200 Sealed Air Corp. (b)......................................... 13
--------
22
--------
Pharmaceuticals (8.9%):
4,900 Abbott Laboratories.......................................... 210
4,200 American Home Products Corp. ................................ 214
1,400 Baxter International, Inc. .................................. 96
6,500 Bristol-Myers Squibb Co. .................................... 432
4,300 Eli Lilly & Co. ............................................. 282
3,800 Johnson & Johnson............................................ 350
7,600 Merck & Co., Inc. ........................................... 515
11,700 Pfizer, Inc. ................................................ 397
2,000 Pharmacia & Upjohn, Inc. .................................... 108
5,400 Schering-Plough Corp. ....................................... 265
2,800 Warner-Lambert Co. .......................................... 185
500 Watson Pharmaceuticals, Inc. (b)............................. 17
--------
3,071
--------
</TABLE>
Continued
-56-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Photography & Imaging (0.3%):
1,300 Eastman Kodak Co. ........................................... $ 90
100 Polaroid Corp. .............................................. 2
--------
92
--------
Railroads (0.5%):
2,600 Burlington Northern Santa Fe................................. 84
600 CSX Corp. ................................................... 29
600 Kansas City Southern Industries.............................. 33
1,000 Norfolk Southern Corp. ...................................... 29
--------
175
--------
Restaurants (0.2%):
1,600 McDonald's Corp. ............................................ 67
400 Tricon Global Restaurants (b)................................ 16
--------
83
--------
Retail (4.4%):
800 Best Buy, Inc. (b)........................................... 60
1,000 Circuit City Stores, Inc. ................................... 47
2,300 CVS Corp. ................................................... 114
1,600 Dayton Hudson Corp. ......................................... 104
300 Dillard's, Inc., Class A..................................... 9
3,000 Gap, Inc. ................................................... 140
2,300 Home Depot, Inc. ............................................ 147
400 Ikon Office Solutions........................................ 5
900 Kohls Corp. (b).............................................. 68
100 Longs Drug Stores Corp. ..................................... 3
1,700 May Department Stores Co. ................................... 66
400 Nordstrom, Inc. ............................................. 13
100 Pep Boys Manny, Moe & Jack................................... 2
200 Rite Aid..................................................... 4
2,200 Staples, Inc. (b)............................................ 64
600 Supervalu, Inc. ............................................. 14
900 Tandy Corp. ................................................. 46
1,700 TJX Co., Inc. ............................................... 56
300 Toys 'R' Us, Inc. (b)........................................ 5
13,000 Wal-Mart Stores, Inc. ....................................... 549
--------
1,516
--------
Semiconductors (3.4%):
400 Advanced Micro Devices, Inc. (b)............................. 7
1,500 Applied Materials, Inc. (b).................................. 108
11,100 Intel Corp. ................................................. 765
200 KLA-Tencor Corp. (b)......................................... 14
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Semiconductors, continued:
1,000 Micron Technology, Inc. (b).................................. $ 62
900 National Semiconductor Corp. (b)............................. 22
1,400 Texas Instruments, Inc. ..................................... 202
--------
1,180
--------
Steel (0.0%):
100 Bethlehem Steel Corp. (b).................................... 1
100 Nucor Corp. ................................................. 5
100 Timken Co. .................................................. 2
100 Worthington Industries, Inc. ................................ 1
--------
9
--------
Telecommunications--Equipment (3.4%):
900 General Instrument Corp. .................................... 41
9,750 Lucent Technologies, Inc. ................................... 634
2,200 Motorola, Inc. .............................................. 201
1,900 Nortel Networks Corp. ....................................... 168
400 Scientific-Atlanta, Inc. .................................... 15
1,800 Tellabs, Inc. (b)............................................ 111
--------
1,170
--------
Telecommunications--Wireless (0.4%):
200 Andrew Corp. (b)............................................. 4
1,250 Sprint Corp. PCS............................................. 76
200 Vodafone Airtouch PLC........................................ 42
--------
122
--------
Tobacco (0.9%):
7,800 Philip Morris Companies, Inc. ............................... 290
500 UST, Inc. ................................................... 16
--------
306
--------
Tobacco Holdings (0.0%):
533 RJ Reynolds.................................................. 15
--------
Toys/Games/Hobbies (0.1%):
550 Hasbro, Inc. ................................................ 14
300 Mattel, Inc. ................................................ 7
--------
21
--------
Transportation & Shipping (0.0%):
200 USX U.S. Steel Group......................................... 5
--------
Transportation Leasing & Trucking (0.0%):
200 Ryder System, Inc. .......................................... 5
--------
</TABLE>
Continued
-57-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Utilities--Electric & Gas (1.6%):
500 American Electric Power Co. ................................. $ 18
400 Carolina Power & Light Co. .................................. 16
600 Central & South West Corp. .................................. 13
400 Cinergy Corp. ............................................... 12
300 CMS Energy Corp. ............................................ 11
700 Consolidated Edison, Inc. ................................... 30
400 Constellation Energy Group................................... 12
500 Dominion Resources, Inc. .................................... 22
400 DTE Energy Co. .............................................. 16
1,000 Duke Energy Corp. ........................................... 52
900 Edison International......................................... 23
700 Entergy Corp. ............................................... 21
600 Firstenergy Corp. ........................................... 17
500 FPL Group, Inc. ............................................. 27
300 GPU Inc. .................................................... 12
300 New Century Energies, Inc. .................................. 10
400 Northern States Power Co. ................................... 9
450 P.P. & L. Resources, Inc. ................................... 13
800 Pacificorp................................................... 15
600 Peco Energy Co. ............................................. 25
100 Peoples Energy Corp. ........................................ 4
1,100 PG&E Corp. .................................................. 35
600 Public Service Enterprise Group, Inc. ....................... 24
800 Reliant Energy, Inc. ........................................ 22
1,900 Southern Co. ................................................ 50
800 Texas Utilities Co. ......................................... 34
600 Unicom Corp. ................................................ 24
--------
567
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Utilities--Telecommunications (7.0%):
3,600 Ameritech Corp. .......................................... $ 264
7,432 AT&T Corp. ............................................... 385
2,500 BellAtlantic Corp. ....................................... 159
7,400 BellSouth Corp. .......................................... 355
700 Centurytel, Inc. ......................................... 30
300 Frontier Corp. ........................................... 17
3,200 GTE Corp. ................................................ 236
4,300 MCI WorldCom, Inc. (b).................................... 355
5,500 SBC Communications, Inc. ................................. 315
2,500 Sprint Corp. ............................................. 129
2,600 U.S. West, Inc. .......................................... 149
--------
2,394
--------
Total Common Stocks 31,661
--------
Investment Companies (2.8%):
979,724 AmSouth Prime Obligations Fund............................ 980
5,326 AmSouth U.S. Treasury Fund................................ 5
--------
Total Investment Companies 985
--------
U.S. Treasury Notes (2.9%):
$ 1,000 6.38%, 1/15/00 (c)........................................ 1,005
--------
Total U.S. Treasury Notes 1,005
--------
Total (Cost $31,089) (a) $ 33,651
========
</TABLE>
- --------
Percentages indicated are based on net assets of $34,770.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $21.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $ 3,697
Unrealized depreciation....... (1,156)
-------
Net unrealized appreciation... $ 2,541
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been pledged as collateral as of July 31,
1999.
<TABLE>
<CAPTION>
Unrealized
# of Contracts Contract Value Expiration Date Gain/(Loss)
-------------- -------------- --------------- -----------
<S> <C> <C> <C> <C>
S&P 500 Stock Index.. 9 $2,997 9/17/99 (130)
</TABLE>
The aggregate market value of securities pledged to cover margin requirements
for open futures positions at July 31, 1999 was $169.
See notes to financial statements.
-58-
<PAGE>
AMSOUTH MUTUAL FUNDS
Capital Growth Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (96.8%):
Advertising (1.6%):
9,000 Omnicom Group, Inc. ......................................... $ 638
-------
Banking (4.4%):
12,300 Commerce Bancshares, Inc..................................... 497
15,000 SouthTrust Corp.............................................. 551
10,692 SunTrust Banks, Inc.......................................... 689
-------
1,737
-------
Beverages (1.6%):
8,100 Anheuser-Busch Co., Inc. .................................... 639
-------
Broadcasting/Cable (1.9%):
20,400 Cox Communications Inc., Class A (b)......................... 764
-------
Brokerage Services (4.3%):
17,000 Lehman Brothers Holdings, Inc................................ 914
8,800 Morgan Stanley Dean Witter & Co.............................. 793
-------
1,707
-------
Chemicals (1.4%):
14,500 Monsanto Co. ................................................ 567
-------
Computer Hardware (2.7%):
11,400 Apple Computer, Inc. (b)..................................... 635
6,400 Sun Microsystems, Inc. (b)................................... 434
-------
1,069
-------
Computer Software (5.7%):
30,000 Compuware Corp. (b).......................................... 833
16,800 Microsoft Corp. (b).......................................... 1,441
-------
2,274
-------
Diversified Manufacturing (7.0%):
12,300 General Electric Co.......................................... 1,341
14,200 Tyco International Ltd. ..................................... 1,387
-------
2,728
-------
Electronic Components (2.5%):
20,000 LSI Logic Corp. (b).......................................... 1,006
-------
Financial Services (1.7%):
7,450 Providian Financial.......................................... 678
-------
Food Products & Services (2.0%):
19,000 Nabisco Holdings Corp........................................ 791
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Household Products/Wares (1.7%):
6,100 Clorox Corp.................................................. $ 683
-------
Insurance (1.6%):
14,000 AFLAC, Inc................................................... 649
-------
Internet Software (4.1%):
5,000 America Online, Inc. (b)..................................... 476
13,000 Earthlink Network, Inc. (b).................................. 628
16,000 Mindspring Enterprises, Inc. (b)............................. 537
-------
1,641
-------
Medical Supplies (1.3%):
7,100 Medtronic, Inc............................................... 512
-------
Newspapers (1.9%):
14,000 Knight-Ridder, Inc. ......................................... 751
-------
Oil & Gas Exploration, Production, & Services (6.9%):
12,000 Phillips Petroleum Co. ...................................... 616
11,400 Royal Dutch Petroleum Co..................................... 695
12,700 Texaco, Inc.................................................. 792
15,000 Unocal Corp. ................................................ 595
-------
2,698
-------
Pharmaceuticals (9.3%):
13,100 Bristol-Myers Squibb Co. .................................... 871
9,900 Eli Lilly & Co. ............................................. 650
12,000 Pharmacia & Upjohn, Inc. .................................... 646
17,000 Schering-Plough Corp......................................... 833
9,900 Warner-Lambert Co. .......................................... 653
-------
3,653
-------
Retail (12.9%):
18,000 Abercrombie & Fitch Co. (b).................................. 747
31,000 Bed Bath & Beyond, Inc. (b).................................. 1,053
14,000 Best Buy, Inc. (b)........................................... 1,045
15,750 Gap, Inc..................................................... 736
12,100 Home Depot, Inc.............................................. 772
17,000 Wal-Mart Stores, Inc......................................... 718
-------
5,071
-------
Semiconductors (5.3%):
15,000 Applied Materials, Inc. (b).................................. 1,079
15,000 KLA-Tencor Corp. (b)......................................... 1,016
-------
2,095
-------
</TABLE>
Continued
-59-
<PAGE>
AMSOUTH MUTUAL FUNDS
Capital Growth Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Telecommunications--Equipment (7.5%):
14,400 Lucent Technologies, Inc..................................... $ 937
175,000 Paging Network, Inc. (b)..................................... 941
29,000 Scientific-Atlanta, Inc. .................................... 1,058
-------
2,936
-------
Telecommunications--Wireless (3.1%):
23,000 Nextel Communications, Inc. (b).............................. 1,232
-------
</TABLE>
- --------
Percentages indicated are based on net assets of $39,558.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $8.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 5,523
Unrealized depreciation............................................. (1,592)
-------
Net unrealized appreciation......................................... $ 3,931
=======
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Utilities--Telecommunications (4.4%):
21,225 Centurytel, Inc.............................................. $ 907
16,400 Sprint Corp.................................................. 848
-------
1,755
-------
Total Common Stocks 38,274
-------
Total (Cost $34,335) (a) $38,274
=======
</TABLE>
See notes to financial statements.
-60-
<PAGE>
AMSOUTH MUTUAL FUNDS
Select Equity Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (97.9%):
Business Services (4.8%):
27,300 Automatic Data Processing, Inc............................... $ 1,094
-------
Commercial Services (0.4%):
3,906 Gartner Group, Inc. (b)...................................... 84
-------
Consumer Goods (4.2%):
32,600 American Greetings Corp., Class A............................ 958
-------
Electrical Equipment (10.7%):
58,700 Hubbell Harvey, Inc., Class B................................ 2,421
-------
Electronic Components/ Instruments (10.3%):
38,900 Emerson Electric Co.......................................... 2,322
-------
Financial Services (11.3%):
33,700 Dun & Bradstreet Corp........................................ 1,070
27,300 H & R Block, Inc............................................. 1,492
-------
2,562
-------
Food Distributors & Wholesalers (4.9%):
33,600 SYSCO Corp................................................... 1,098
-------
Food Processing & Packaging (6.6%):
36,900 Ralston Purina Co............................................ 1,105
15,600 Smuckers Co., Class A........................................ 377
-------
1,482
-------
Food Products, Processing & Packaging (3.9%):
15,100 Hershey Foods Corp........................................... 876
-------
Health Care Services (3.7%):
30,000 IMS Health, Inc.............................................. 836
-------
Machinery & Equipment (4.2%):
10,100 Briggs & Stratton Corp....................................... 608
10,000 Snap-On, Inc................................................. 350
-------
958
-------
</TABLE>
- --------
Percentages indicated are based on net assets of $22,611.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 2,628
Unrealized depreciation............................................. (1,247)
-------
Net unrealized appreciation......................................... $ 1,381
=======
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Media (1.8%):
12,833 Nielsen Media Research (b)................................... $ 417
-------
Newspapers (8.3%):
17,000 Gannett Co., Inc. ........................................... 1,227
8,000 Lee Enterprises.............................................. 244
700 Washington Post, Class B..................................... 396
-------
1,867
-------
Office Equipment & Services (4.7%):
16,800 Pitney Bowes, Inc............................................ 1,069
-------
Pharmaceuticals (8.2%):
27,900 Bristol-Myers Squibb Co. .................................... 1,855
-------
Pollution Control Services & Equipment (3.6%):
31,760 Waste Management, Inc........................................ 812
-------
Restaurants (5.4%):
29,500 McDonald's Corp.............................................. 1,230
-------
Tobacco (0.9%):
5,500 Philip Morris Companies, Inc................................. 205
-------
Total Common Stocks 22,146
-------
Investment Companies (1.5%):
337,441 AmSouth Prime Obligations Fund............................... 337
-------
Total Investment Companies 337
-------
Total (Cost $21,102) (a) $22,483
=======
</TABLE>
See notes to financial statements.
-61-
<PAGE>
AMSOUTH MUTUAL FUNDS
Regional Equity
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (98.0%):
Apparel (2.1%):
90,000 Russell Corp............................................... $ 1,727
-------
Automotive Parts (5.6%):
100,000 Discount Auto Parts, Inc. (b).............................. 2,238
75,000 Genuine Parts Co. ......................................... 2,329
-------
4,567
-------
Banking (9.7%):
40,000 Bank of America Corp....................................... 2,654
30,000 First American Corp.-Tenn.................................. 1,260
50,000 First Union Corp. ......................................... 2,300
40,000 Union Planters Corp........................................ 1,773
-------
7,987
-------
Building Materials (3.0%):
275,000 Interface, Inc............................................. 2,458
-------
Commercial Services (5.5%):
60,000 Equifax, Inc............................................... 1,973
175,000 Modis Professional Services (b)............................ 2,537
-------
4,510
-------
Construction--Manufactured Homes (2.9%):
225,000 Clayton Homes, Inc......................................... 2,363
-------
Diversified Manufacturing (0.8%):
55,000 Walter Industries, Inc. (b)................................ 694
-------
Food Processing & Packaging (3.8%):
90,000 Flowers Industries, Inc.................................... 1,502
110,000 Lance, Inc................................................. 1,616
-------
3,118
-------
Forest & Paper Products (5.5%):
80,000 Caraustar Industries, Inc. ................................ 1,990
70,000 Fort James Corp. .......................................... 2,555
-------
4,545
-------
Furniture (3.7%):
230,000 Heilig-Myers Co............................................ 1,668
40,000 Winsloew Furniture, Inc. (b)............................... 1,345
-------
3,013
-------
Health Care (5.1%):
340,000 HEALTHSOUTH Corp. (b)...................................... 4,165
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Manufacturing (2.7%):
105,000 Wolverine Tube, Inc. (b)................................... $ 2,192
-------
Medical Services (6.5%):
125,000 Coventry Health Care, Inc. (b)............................. 1,383
310,000 Health Management Assoc., Inc., Class A (b)................ 2,557
170,000 MedPartners, Inc. (b)...................................... 1,423
-------
5,363
-------
Office Equipment & Services (1.8%):
50,000 Harris Corp................................................ 1,516
-------
Oil & Gas Exploration, Production, & Services (5.1%):
45,000 Burlington Resources, Inc.................................. 1,988
10,000 Mobil Corp................................................. 1,023
20,000 Schlumberger Ltd........................................... 1,211
-------
4,222
-------
Printing (1.5%):
60,000 John H. Harland Co......................................... 1,208
-------
Railroads (2.7%):
75,000 Norfolk Southern Corp...................................... 2,194
-------
Restaurants (2.4%):
130,000 CRBL Group, Inc............................................ 1,966
-------
Retail (7.6%):
285,000 Hancock Fabrics, Inc....................................... 1,443
85,000 Office Depot, Inc. (b)..................................... 1,594
60,000 Saks, Inc. (b)............................................. 1,380
275,000 Stein-Mart, Inc. (b)....................................... 1,829
-------
6,246
-------
Steel (2.9%):
50,000 Nucor Corp................................................. 2,425
-------
Telecommunications--Equipment (1.8%):
40,000 Scientific-Atlanta, Inc.................................... 1,460
-------
Transportation (5.2%):
165,000 Offshore Logistics, Inc. (b)............................... 2,001
70,000 Tidewater, Inc............................................. 2,314
-------
4,315
-------
Transportation Leasing & Trucking (2.6%):
90,000 Ryder System, Inc.......................................... 2,121
-------
</TABLE>
Continued
-62-
<PAGE>
AMSOUTH MUTUAL FUNDS
Regional Equity
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Utilities-Electric & Gas (4.9%):
50,000 Florida Progress Corp. .................................... $ 2,047
75,000 Southern Co................................................ 1,983
-------
4,030
-------
Utilities-Telecommunications (2.6%):
45,000 BellSouth Corp............................................. 2,160
-------
Total Common Stocks 80,565
-------
</TABLE>
- --------
Percentages indicated are based on net assets of $82,261.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $20,404
Unrealized depreciation............................................. (7,851)
-------
Net unrealized appreciation......................................... $12,553
=======
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -------
<C> <S> <C>
Investment Companies (2.0%):
1,655,457 AmSouth Prime Obligations Fund............................. $ 1,655
2,829 AmSouth U.S. Treasury Fund................................. 3
-------
Total Investment Companies 1,658
-------
Total (Cost $69,670) (a) $82,223
=======
</TABLE>
See notes to financial statements.
-63-
<PAGE>
AMSOUTH MUTUAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (95.3%):
Airlines (0.6%):
22,900 Airtran Holdings, Inc. (b)................................. $ 147
-------
Automotive (5.6%):
28,900 Copart, Inc. (b)........................................... 694
24,150 Monaco Coach Corp. (b)..................................... 638
-------
1,332
-------
Commercial Services (3.1%):
23,100 Dollar Thrifty Automotive Group (b)........................ 497
7,500 Plexus Corp. (b)........................................... 240
-------
737
-------
Computer Software (7.1%):
3,500 Computer Network Tech Co. (b).............................. 51
12,900 Credence Systems Corp. (b)................................. 535
21,900 Handleman Co. (b).......................................... 245
10,800 Mercury Interactive Corp. (b).............................. 498
12,600 Pinnacle Systems, Inc (b).................................. 367
-------
1,696
-------
Computers & Peripherals (9.5%):
17,400 Cybex Computer Products Corp. (b).......................... 463
5,600 Kronos, Inc. (b)........................................... 271
8,000 Lam Research Corp. (b)..................................... 443
46,100 Sybase, Inc. (b)........................................... 473
11,600 Verity, Inc. (b)........................................... 575
-------
2,225
-------
Construction (4.5%):
10,900 Dycom Industries, Inc. (b)................................. 520
25,700 Insituform Technologies, Class A (b)....................... 559
-------
1,079
-------
Construction--Manufactured Homes (2.1%):
18,000 Ryland Group, Inc. ........................................ 502
-------
Diversified Manufacturing (3.3%):
20,550 Labor Ready, Inc. (b)...................................... 353
27,600 WMS Industries, Inc. (b)................................... 425
-------
778
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Electrical & Electronic (6.6%):
8,900 Advanced Digital Info Corp. (b)............................ $ 378
18,400 Aeroflex, Inc. (b)......................................... 348
3,200 Cree Research, Inc. (b).................................... 198
12,000 DII Group, Inc. (b)........................................ 445
9,400 Mentor Graphics Corp. (b).................................. 95
1,400 Optical Coating Laboratory................................. 100
-------
1,564
-------
Entertainment (1.6%):
40,000 Aztar Corp. (b)............................................ 373
-------
Financial Services (4.8%):
18,100 Hambrecht & Quist Group (b)................................ 681
13,400 Legg Mason, Inc. .......................................... 469
-------
1,150
-------
Food Processing & Packaging (2.1%):
18,500 Foodmaker, Inc. (b)........................................ 506
-------
Forest & Paper Products (1.3%):
19,000 Longview Fibre Co. ........................................ 310
-------
Health Care (5.4%):
17,500 Cytyc Corp. (b)............................................ 431
19,000 Hooper Holmes, Inc. ....................................... 375
8,800 Infocure Corp. (b)......................................... 472
-------
1,278
-------
Household Products/Wares (2.8%):
12,700 Fossil, Inc. (b)........................................... 667
-------
Machinery--Construction (0.9%):
6,600 Astec Industries, Inc. (b)................................. 225
-------
Machinery--Diversified (0.4%):
1,600 Tecumseh Products, Inc. ................................... 103
-------
Media (1.8%):
11,550 Valassis Communications, Inc. (b).......................... 430
-------
Medical Services (2.4%):
13,100 Medquist, Inc. (b)......................................... 568
-------
Office Equipment & Services (1.0%):
7,000 Clarify, Inc. (b).......................................... 231
-------
</TABLE>
Continued
-64-
<PAGE>
AMSOUTH MUTUAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas Exploration, Production, & Services (4.1%):
15,100 Basin Exploration, Inc. (b)................................ $ 317
26,500 Forest Oil Corp. (b)....................................... 394
8,700 Syncor International Corp. (b)............................. 258
-------
969
-------
Pharmaceuticals (6.7%):
11,000 Chirex, Inc. (b)........................................... 360
19,400 King Pharmaceuticals, Inc. (b)............................. 526
14,850 Priority Healthcare Corp. Class B (b)...................... 717
-------
1,603
-------
Retail (1.8%):
11,300 American Eagle Outfitters (b).............................. 436
-------
Technology (2.3%):
1,600 Cohu, Inc.................................................. 66
10,900 Integrated Device Tech, Inc. (b)........................... 142
23,500 International Rectifier Corp. (b).......................... 340
-------
548
-------
Telecommunications (2.0%):
31,700 InterVoice, Inc. (b)....................................... 479
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Telecommunications--Equipment (7.4%):
6,700 American Xtal Technology, Inc. (b)......................... $ 206
17,200 ANTEC Corp. (b)............................................ 721
24,100 Commscope, Inc. (b)........................................ 825
-------
1,752
-------
Transportation Leasing & Trucking (4.1%):
29,000 American Freightways Corp. (b)............................. 696
5,600 US Freightways Corp. ...................................... 277
-------
973
-------
Total Common Stocks 22,661
-------
U.S. Treasury Bills (2.1%):
$ 500 9/16/99.................................................... 497
-------
Total U.S. Treasury Bills 497
-------
Investment Companies (3.6%):
861,416 AmSouth Prime Obligations Fund............................. 861
-------
Total Investment Companies 861
-------
Total (Cost $21,396) (a) $24,019
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $23,779.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $20.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......... $3,149
Unrealized depreciation......... (546)
------
Net unrealized appreciation..... $2,603
======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-65-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (48.1%):
Apparel (0.3%):
140,000 Phillips-Van Heusen Corp................................. $ 1,190
--------
Automotive (0.7%):
55,000 Ford Motor Co............................................ 2,674
--------
Automotive Parts (1.0%):
101,000 Arvin Industries, Inc.................................... 3,775
--------
Banking (3.1%):
50,000 Bank of America Corp..................................... 3,319
20,000 Bank One Corp............................................ 1,091
40,000 First Union Corp. ....................................... 1,840
150,000 Washington Mutual, Inc................................... 5,147
--------
11,397
--------
Beverages (0.8%):
70,000 Diageo PLC ADR........................................... 2,870
--------
Business Services (1.0%):
160,000 Reynolds & Reynolds Co., Class A......................... 3,760
--------
Chemicals-Speciality (1.8%):
230,000 Engelhard Corp........................................... 5,132
100,000 M.A. Hanna Co. .......................................... 1,600
--------
6,732
--------
Computer Hardware (0.5%):
15,000 IBM Corp. ............................................... 1,885
--------
Computers & Peripherals (1.3%):
410,000 Cabletron Systems, Inc. (b).............................. 4,946
--------
Consumer Goods (0.7%):
95,000 American Greetings Corp., Class A........................ 2,791
--------
Electrical & Electronic (0.4%):
32,000 Avnet, Inc............................................... 1,568
--------
Financial Services (0.9%):
110,000 Dun & Bradstreet Corp.................................... 3,493
--------
Food Processing & Packaging (1.3%):
20,000 Dole Food, Inc........................................... 528
140,000 Sara Lee Corp............................................ 3,079
56,000 Universal Foods Corp. ................................... 1,222
--------
4,829
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Forest & Paper Products (3.2%):
15,000 Champion International Corp.............................. $ 776
75,000 International Paper Co................................... 3,834
50,000 Weyerhauser Co. ......................................... 3,234
90,000 Willamette Industries, Inc............................... 4,051
--------
11,895
--------
Health Care (1.4%):
40,000 Aetna, Inc. ............................................. 3,280
33,000 United Healthcare Corp................................... 2,013
--------
5,293
--------
Household Products/Wares (1.0%):
90,000 Newell Rubbermaid, Inc. ................................. 3,893
--------
Insurance (2.3%):
5,000 Chubb Corp. ............................................. 299
60,000 Marsh & McLennan Cos., Inc. ............................. 4,560
120,000 St. Paul Cos., Inc....................................... 3,735
--------
8,594
--------
Manufacturing (0.2%):
31,000 Kennametal, Inc. ........................................ 748
--------
Medical Supplies (1.7%):
85,000 C.R. Bard, Inc........................................... 4,133
80,000 DENTSPLY International, Inc.............................. 2,165
--------
6,298
--------
Metals & Mining (0.2%):
40,000 Barrick Gold Corp........................................ 743
--------
Newspapers (1.6%):
30,000 Dow Jones & Co., Inc..................................... 1,496
60,000 Gannett Co., Inc. ....................................... 4,335
--------
5,831
--------
Oil & Gas Exploration, Production, & Services (8.1%):
40,000 Atlantic Richfield Co.................................... 3,603
75,000 Burlington Resources, Inc................................ 3,314
90,000 Kerr-McGee Corp.......................................... 4,634
50,000 Noble Affiliates......................................... 1,463
115,000 Sunoco, Inc.............................................. 3,508
80,000 Texaco, Inc.............................................. 4,984
</TABLE>
Continued
-66-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas Exploration, Production, & Services, continued:
190,000 Ultramar Diamond Shamrock Corp........................... $ 4,488
130,000 USX-Marathon Group....................................... 3,949
--------
29,943
--------
Packaging (0.5%):
60,000 Crown Cork & Seal, Inc. ................................. 1,759
--------
Pharmaceuticals (2.7%):
40,000 American Home Products Corp. ............................ 2,040
60,000 Baxter International, Inc. .............................. 4,121
70,000 Pharmacia & Upjohn, Inc. ................................ 3,767
--------
9,928
--------
Pollution Control Services & Equipment (0.5%):
70,000 Waste Management, Inc. .................................. 1,789
--------
Railroads (0.8%):
60,000 CSX Corp................................................. 2,906
--------
Retail (4.1%):
70,000 CVS Corp................................................. 3,483
18,000 Dayton Hudson Corp. ..................................... 1,164
105,000 Dillard's, Inc., Class A................................. 3,235
105,000 May Department Stores Co. ............................... 4,061
30,000 The Limited, Inc. ....................................... 1,371
46,000 Wal-Mart Stores, Inc. ................................... 1,944
--------
15,258
--------
Temporary Services (0.2%):
100,000 Olsten Corp. ............................................ 844
--------
Transportation Leasing & Trucking (1.4%):
105,000 Ryder System, Inc. ...................................... 2,474
55,000 US Freightways Corp. .................................... 2,716
--------
5,190
--------
Utilities-Electric & Gas (2.0%):
130,000 Constellation Energy Group............................... 3,810
10,000 New Century Energies, Inc. .............................. 347
120,000 Southern Co. ............................................ 3,173
--------
7,330
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Utilities-Telecommunications (2.4%):
35,000 AT&T Corp................................................ $ 1,818
70,000 BellAtlantic Corp. ...................................... 4,462
57,000 BellSouth Corp........................................... 2,736
--------
9,016
--------
Total Common Stocks 179,168
--------
Corporate Bonds (24.6%):
Appliances (0.1%):
$ 500 Whirlpool Corp., 9.50%, 6/15/00.......................... 514
--------
Automotive (0.2%):
700 General Motors Corp., 9.63%, 12/1/00..................... 729
--------
Automotive-Finance (2.0%):
2,500 Chrysler Financial Corp., 6.08%, 4/6/01.................. 2,494
2,000 General Motors Acceptance Corp., 6.00%, 2/1/02........... 1,970
3,000 Toyota Motor Credit Corp.,
5.50%, 9/17/01.......................................... 2,951
--------
7,415
--------
Banking (3.7%):
930 Bank of America Corp., 9.50%, 4/1/01..................... 975
1,000 Bankers Trust Co., 9.50%, 6/14/00........................ 1,028
2,500 Mellon Financial Co., 6.30%, 6/1/00...................... 2,507
4,185 NationsBank Corp., 5.38%, 4/15/00........................ 4,174
2,000 SunTrust Banks, Inc., 7.38%, 7/1/06...................... 2,040
1,565 Wachovia Corp., 5.40%, 2/20/01........................... 1,545
1,475 Wachovia Corp., 6.63%, 11/15/06.......................... 1,440
--------
13,709
--------
Brokerage Services (1.9%):
3,000 Bear Stearns & Co., Inc., 6.50%, 8/1/02.................. 2,970
2,000 Merrill Lynch & Co., Inc.,
6.00%, 3/1/01........................................... 1,990
2,000 Morgan Stanley Group, Inc.,
8.10%, 6/24/02.......................................... 2,070
--------
7,030
--------
Chemicals (0.8%):
3,000 Monsanto Co., 6.00%, 7/1/00.............................. 3,000
--------
</TABLE>
Continued
-67-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Consumer Goods (0.5%):
$ 2,000 Procter & Gamble Co., 5.25%, 9/15/03..................... $ 1,913
--------
Diversified Manufacturing (0.7%):
2,500 Avnet Inc., 6.45%, 8/15/03............................... 2,444
--------
Electronic Components/ Instruments (0.5%):
2,000 Honeywell, Inc., 6.75%, 3/15/02.......................... 2,018
--------
Farm Equipment (0.8%):
3,000 John Deere Capital Corp.,
5.85%, 1/15/01.......................................... 2,981
--------
Financial Services (1.6%):
4,000 Associates Corp. N. A., 6.75%, 7/15/01................... 4,020
1,000 Commercial Credit Co., 7.88%, 7/15/04.................... 1,041
1,000 Pitney Bowes Credit Corp.,
6.80%, 10/1/01.......................................... 1,013
--------
6,074
--------
Food Products & Services (0.3%):
1,000 H.J. Heinz Co., 6.75%, 10/15/99.......................... 1,003
--------
Forest & Paper Products (0.3%):
1,000 Mead Corp., 6.60%, 3/1/02................................ 994
--------
Industrial Goods & Services (2.2%):
500 Browning-Ferris Industries, Inc.,
6.10%, 1/15/03.......................................... 461
2,000 Caterpillar Financial Services,
6.02%, 4/15/02.......................................... 1,974
1,000 Dresser Industries, Inc., 6.25%, 6/1/00.................. 1,003
3,000 First Data Corp., 6.75%, 7/15/05......................... 2,988
2,000 Illinois Tool Works, 5.75%, 3/1/09....................... 1,855
--------
8,281
--------
Insurance (0.4%):
1,400 Capital Holding Corp., 9.20%, 4/17/01.................... 1,462
140 Chubb Corp., 8.75%, 11/15/99............................. 141
--------
1,603
--------
Newspapers (0.5%):
2,000 Gannett Co., Inc., 5.85%, 5/1/00......................... 2,000
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Oil & Gas Exploration, Production, & Services (0.8%):
$ 1,550 BP America, Inc., 9.38%, 11/1/00......................... $ 1,612
1,500 Conoco Inc., 6.35%, 4/15/09.............................. 1,427
--------
3,039
--------
Pollution Control Services & Equipment (0.8%):
1,000 Waste Management, Inc.,
8.25%, 11/15/99......................................... 1,008
2,000 Waste Management, Inc.,
7.70%, 10/1/02.......................................... 2,050
--------
3,058
--------
Retail (2.4%):
2,000 J.C. Penney Co., Inc., 7.25%, 4/1/02..................... 2,018
2,000 Sears, Roebuck and Co., 6.00%, 3/20/03................... 1,950
3,000 Wal-Mart Stores, Inc., 5.85%, 6/1/00..................... 3,003
2,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02.................... 2,024
--------
8,995
--------
Telecommunications--Equipment (0.5%):
1,730 Lucent Technologies, Inc.,
6.90%, 7/15/01.......................................... 1,752
--------
Tools (0.6%):
2,200 Stanley Works, 7.38%, 12/15/02........................... 2,258
--------
Utilities--Electric & Gas (2.1%):
3,450 Duke Power Co., 7.00%, 6/1/00 ........................... 3,475
1,275 Georgia Power Co., 6.13%, 9/1/99......................... 1,275
2,000 Oklahoma Gas & Electric Co.,
6.25%, 10/15/00......................................... 2,005
900 Pennsylvania Power & Light Co.,
6.00%, 6/1/00........................................... 899
--------
7,654
--------
Utilities--Telecommunications (0.9%):
1,000 AT&T Corp., 7.13%, 1/15/02............................... 1,016
2,200 BellSouth Telecommunications,
6.00%, 6/15/02.......................................... 2,173
--------
3,189
--------
Total Corporate Bonds 91,653
--------
</TABLE>
Continued
-68-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds (1.0%):
Illinois (1.0%):
$ 3,800 Chicago Public Building, 7.00%, 1/1/06................... $ 3,824
--------
Total Municipal Bonds 3,824
--------
U.S. Government Agencies (7.7%):
Fannie Mae (2.9%):
2,400 5.50%, 2/2/01............................................ 2,386
5,000 6.21%, 11/07/07.......................................... 4,877
4,000 5.25%, 1/15/09........................................... 3,593
--------
10,856
--------
Freddie Mac (2.4%):
7,000 5.83%, 2/9/06............................................ 6,727
2,000 7.10%, 4/10/07........................................... 2,058
--------
8,785
--------
Government National Mortgage Assoc. (2.4%):
9,626 6.50%, 11/20/28.......................................... 9,093
--------
Total U.S. Government Agencies 28,734
--------
</TABLE>
- --------
Percentages indicated are based on net assets of $372,370.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $297.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $62,726
Unrealized depreciation............................................. (7,819)
-------
Net unrealized appreciation......................................... $54,907
=======
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Bonds (3.0%):
$ 10,000 7.25%, 8/15/22........................................... $ 11,075
--------
Total U.S. Treasury Bonds 11,075
--------
U.S. Treasury Securities (13.1%):
Bonds (12.6%):
9,600 5.88%, 11/15/05.......................................... 9,526
7,000 6.50%, 10/15/06.......................................... 7,160
6,000 7.50%, 11/15/16.......................................... 6,693
23,400 6.25%, 8/15/23........................................... 23,212
--------
46,591
--------
Notes (0.5%):
2,000 6.13%, 8/15/07........................................... 2,004
--------
Total U.S. Treasury Securities 48,595
--------
Investment Companies (1.7%):
6,220,560 AmSouth Prime Obligations Fund........................... 6,220
2,512 AmSouth U.S. Treasury Fund............................... 3
--------
Total Investment Companies 6,223
--------
Total (Cost $314,068) (a) $369,272
========
</TABLE>
See notes to financial statements.
-69-
<PAGE>
AMSOUTH MUTUAL FUNDS
Limited Maturity Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds (79.6%):
Automotive--Finance (9.3%):
$ 1,000 Chrysler Financial Corp., 6.08%, 4/6/01................... $ 998
4,000 Ford Motor Credit Co., 8.20%, 2/15/02..................... 4,149
3,500 General Motors Acceptance Corp., 6.75%, 2/7/02............ 3,509
2,000 Toyota Motor Credit Corp., 5.50%, 9/17/01................. 1,968
--------
10,624
--------
Banking (8.7%):
3,000 Bank One Corp., 6.25%, 9/1/00............................. 3,003
1,500 Firstar Bank, 6.25%, 12/1/02.............................. 1,487
2,000 NationsBank Corp., 5.38%, 4/15/00......................... 1,995
2,500 NationsBank Corp., 5.70%, 9/11/00......................... 2,488
900 Wachovia Bank, 6.30%, 3/15/01............................. 899
--------
9,872
--------
Brokerage Services (4.8%):
3,500 Bear Stearns & Co., Inc., 6.50%, 8/1/02................... 3,465
2,000 Dean Witter Discover & Co., 6.26%, 3/15/00................ 2,005
--------
5,470
--------
Building Products (1.7%):
2,000 Vulcan Materials Co., 5.75%, 4/1/04....................... 1,940
--------
Computers & Peripherals (0.9%):
1,000 IBM Corp., 5.95%, 6/2/03.................................. 981
--------
Consumer Goods (1.7%):
2,000 Procter & Gamble Co., 5.25%, 9/15/03...................... 1,913
--------
Electronic Components/ Instruments (0.8%):
850 Honeywell, Inc., 6.75%, 3/15/02........................... 857
--------
Farm Equipment (2.6%):
3,000 John Deere Capital Corp., 5.85%, 1/15/01.................. 2,981
--------
Financial Services (16.7%):
3,000 Ameritech Capital Funding, 6.13%, 10/15/01................ 2,988
4,200 Associates Corp. of North America, 6.63%, 5/15/01......... 4,210
500 Beneficial Corp., 7.32%, 11/17/99......................... 502
2,000 CIT Group Holdings, 6.38%, 10/1/02........................ 1,983
1,000 Citigroup, Inc., 6.13%, 6/15/00........................... 1,000
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services, continued:
$ 1,000 Commercial Credit Co., 8.26%, 11/1/01..................... $ 1,038
2,500 General Electric Capital Corp., 6.15%, 11/5/01............ 2,491
2,500 Household Finance Co., 8.95%, 9/15/99..................... 2,508
2,500 Household Netherlands, 6.20%, 12/1/03..................... 2,438
--------
19,158
--------
Food Products & Services (2.6%):
1,000 Campbell Soup Co., 6.15%, 12/1/02......................... 996
1,000 McDonald's Corp., 5.90%, 5/11/01.......................... 995
1,000 McDonald's Corp., 6.00%, 6/23/02.......................... 990
--------
2,981
--------
Forest & Paper Products (0.9%):
1,000 Mead Corp., 6.60%, 3/1/02................................. 994
--------
Health Care (1.7%):
2,000 McKesson Corp., 6.88%, 3/1/02............................. 1,985
--------
Industrial Goods & Services (5.3%):
2,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02............ 2,083
1,000 Caterpillar Financial Services, 6.02%, 4/15/02............ 988
3,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02.............. 3,007
--------
6,078
--------
Insurance (5.8%):
2,000 American General Finance, 5.75%, 11/01/03................. 1,923
1,500 AON Corp., 6.88%, 10/1/99................................. 1,502
1,000 St. Paul Cos., Inc., Series A, 6.17%, 1/15/01............. 996
2,200 USLife Corp., 6.38%, 6/15/00.............................. 2,199
--------
6,620
--------
Leasing (1.8%):
2,000 USL Capital Corp., 8.13%, 2/15/00......................... 2,024
--------
Office Equipment & Services (1.2%):
1,274 Xerox Corp., 8.13%, 4/15/02............................... 1,331
--------
Oil & Gas Exploration, Production, & Services (1.9%):
2,200 Amoco Co., 6.25%, 10/15/04................................ 2,178
--------
</TABLE>
Continued
-70-
<PAGE>
AMSOUTH MUTUAL FUNDS
Limited Maturity Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Retail (3.9%):
$ 1,000 Sears, Roebuck and Co., 6.00%, 3/20/03.................... $ 975
3,500 Wal-Mart Stores, Inc., 5.85%, 6/1/00...................... 3,504
--------
4,479
--------
Telecommunications (1.3%):
1,500 AT&T Corp., 5.63%, 3/15/04................................ 1,438
--------
Telecommunications--Equipment (0.9%):
1,000 Lucent Technologies, Inc.,
6.90%, 7/15/01........................................... 1,013
--------
Tools (0.9%):
500 Stanley Works, 7.38%, 12/15/02............................ 514
500 Stanley Works, 5.75%, 3/1/04.............................. 484
--------
998
--------
Utilities--Electric & Gas (2.5%):
1,250 Alabama Power Corp., 5.35%, 11/15/03...................... 1,194
600 Baltimore Gas & Electric Co., 5.50%, 7/15/00.............. 599
1,000 Florida Power Corp., 6.50%, 12/1/99....................... 1,003
--------
2,796
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Utilities--Telecommunications (1.7%):
$ 2,000 BellSouth Telecommunications, 6.00%, 6/15/02............. $ 1,975
--------
Total Corporate Bonds 90,686
--------
U.S. Treasury Notes (16.7%):
18,000 7.25%, 5/15/04........................................... 18,971
--------
Total U.S. Treasury Notes 18,971
--------
Investment Companies (2.0%):
2,248,559 AmSouth Prime Obligations Fund........................... 2,248
339 AmSouth U.S. Treasury Fund............................... --*
--------
Total Investment Companies 2,248
--------
Total (Cost $112,420) (a) $111,905
========
</TABLE>
- --------
Percentages indicated are based on net assets of $113,869.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $ 592
Unrealized depreciation....... (1,107)
-------
Net unrealized depreciation... $ (515)
=======
</TABLE>
* Due to rounding, figure was below thousand dollar threshold.
See notes to financial statements.
-71-
<PAGE>
AMSOUTH MUTUAL FUNDS
Government Income Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
U.S. Government Agencies (84.3%):
Fannie Mae (18.3%):
$ 1,600 5.75%, 4/15/03.............................................. $1,568
------
Government National Mortgage Assoc. (66.0%):
1,360 7.00%, 12/15/26-2/20/29..................................... 1,324
2,207 7.50%, 6/15/24-12/15/25..................................... 2,209
306 8.00%, 7/15/26.............................................. 312
196 8.50%, 12/15/19-2/15/23..................................... 203
874 9.00%, 6/15/18-9/15/22...................................... 921
662 9.50%, 5/15/18-8/15/21...................................... 705
------
5,674
------
Total U.S. Government Agencies 7,242
------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
U.S. Treasury Securities (10.4%):
Bonds (10.4%):
$ 800 7.50%, 11/15/16............................................. $ 892
------
Total U.S. Treasury Securities 892
------
Investment Companies (4.5%):
387,763 AmSouth U.S. Treasury Fund.................................. 387
------
Total Investment Companies 387
------
Total (Cost $8,566) (a) $8,521
======
</TABLE>
- --------
Percentages indicated are based on net assets of $8,586.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......... $ 103
Unrealized depreciation......... (148)
-----
Net unrealized depreciation..... $ (45)
=====
</TABLE>
See notes to financial statements.
-72-
<PAGE>
AMSOUTH MUTUAL FUNDS
Bond Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds (46.8%):
Aerospace/Defense (0.8%):
$ 3,000 Boeing Corp., 6.88%, 11/1/06............................. $ 3,000
--------
Appliances (0.1%):
500 Whirlpool Corp., 9.50%, 6/15/00.......................... 514
--------
Automotive (0.2%):
908 General Motors Corp., 9.63%, 12/1/00..................... 945
--------
Automotive--Finance (2.1%):
3,485 Ford Motor Credit Co., 6.25%, 12/8/05.................... 3,341
2,000 General Motors Acceptance Corp., 6.15%, 4/7/07........... 1,898
3,000 Toyota Motor Credit Corp., 5.50%, 9/17/01................ 2,951
--------
8,190
--------
Banking (5.1%):
1,150 Bank of America Corp., 9.50%, 4/1/01..................... 1,206
3,157 Bank One Corp., 7.00%, 7/15/05........................... 3,157
4,000 Fifth Third Bank, 6.75%, 7/15/05......................... 3,965
3,856 J.P. Morgan & Co., 7.63%, 9/15/04........................ 3,952
4,306 NationsBank Corp., 5.38%, 4/15/00........................ 4,296
3,159 SunTrust Banks, Inc., 7.38%, 7/1/06...................... 3,222
--------
19,798
--------
Beverages (0.9%):
3,500 Coca-Cola Enterprises, Inc., 6.38%, 8/1/01............... 3,509
--------
Brokerage Services (2.2%):
2,910 Bear Stearns & Co. Inc., 6.63%, 10/1/04.................. 2,826
3,500 Dean Witter Discover & Co., 6.50%, 11/1/05............... 3,387
750 Merrill Lynch & Co., Inc., 8.25%, 11/15/99............... 756
1,450 Merrill Lynch & Co., Inc., 6.00%, 2/12/03................ 1,419
--------
8,388
--------
Building Products (0.5%):
2,000 Vulcan Materials, 6.00%, 4/1/09.......................... 1,858
--------
Electronic Components/Instruments (0.5%):
2,000 Honeywell, Inc., 7.00%, 3/15/07.......................... 1,998
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Entertainment (0.7%):
$ 3,000 Walt Disney Company, 5.13%, 12/15/03..................... $ 2,831
--------
Financial Services (5.7%):
2,000 American Express Credit Corp., 6.50%, 8/1/00............. 2,012
3,500 Ameritech Capital, 5.65%, 1/15/01........................ 3,477
2,000 Associates Corp., 5.75%, 10/15/03........................ 1,913
3,000 Associates Corp., 5.75%, 11/01/03........................ 2,869
3,091 Avco Financial Service Corp., 5.50%, 4/1/00.............. 3,086
3,000 Commercial Credit Co., 7.38%, 3/15/02.................... 3,060
3,000 Commercial Credit Co., 6.50%, 8/1/04..................... 2,951
1,000 Margaretten Financial Corp., 6.75%, 6/15/00.............. 1,006
2,000 Norwest Financial, Inc., 6.63%, 7/15/04.................. 1,970
--------
22,344
--------
Food Products & Services (0.7%):
2,750 Campbell Soup Co., 6.15%, 12/1/02........................ 2,740
--------
Forest & Paper Products (0.8%):
3,000 Mead Corp., 6.60%, 3/1/02................................ 2,981
--------
Industrial Goods & Services (4.4%):
3,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02........... 3,124
2,655 Browning-Ferris Industries, Inc., 6.10%, 1/15/03......... 2,446
2,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02............. 2,005
2,570 E. I. Dupont de Nemours & Co., 6.75%, 10/15/02........... 2,596
2,000 First Data Corp., 6.75%, 7/15/05......................... 1,993
1,500 Illinois Tool Works, Inc., 5.88%, 3/1/00................. 1,502
3,456 Rockwell International Corp., 6.63%, 6/1/05.............. 3,433
--------
17,099
--------
Insurance (1.8%):
1,000 AON Corp., 6.88%, 10/1/99................................ 1,001
1,600 Capital Holding Corp., 9.20%, 4/17/01.................... 1,670
330 Chubb Corp., 8.75%, 11/15/99............................. 333
</TABLE>
Continued
-73-
<PAGE>
AMSOUTH MUTUAL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- -------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Insurance, continued:
$ 1,000 Chubb Corp., 6.15%, 8/15/05............................. $ 963
3,100 Hartford Life, Inc., 6.90%, 6/15/04..................... 3,088
--------
7,055
--------
Office Equipment & Services (0.6%):
2,200 Xerox Corp., 7.15%, 8/1/04.............................. 2,247
--------
Oil & Gas Exploration, Production, & Services (1.8%):
3,158 BP America, Inc., 9.38%, 11/1/00........................ 3,284
1,000 Conoco Inc., 6.35%, 4/15/09............................. 951
864 Exxon Capital Corp., 7.45%, 12/15/01.................... 886
2,000 Phillips Petroleum Co., 6.38%, 3/30/09.................. 1,895
--------
7,016
--------
Pharmaceuticals (0.8%):
3,000 Warner-Lambert Co., 5.75%, 1/15/03...................... 2,936
--------
Photography (0.9%):
3,100 Eastman Kodak, 9.38%, 3/15/03........................... 3,379
--------
Pollution Control Services & Equipment (1.1%):
2,449 Waste Management, Inc., 6.38%, 12/1/03.................. 2,412
2,000 Waste Management, Inc., 7.00%, 5/15/05.................. 1,985
--------
4,397
--------
Railroads (0.3%):
1,000 Union Pacific Corp., 7.00%, 6/15/00..................... 1,006
--------
Retail (2.5%):
2,000 JC Penny & Co., 6.13%, 11/15/03......................... 1,930
3,000 Nike, Inc., 6.38%, 12/1/03.............................. 2,959
4,000 Wal-Mart Stores, Inc., 5.85%, 6/1/00.................... 4,004
1,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02................... 1,013
--------
9,906
--------
Tools (0.5%):
2,000 Stanley Works, 5.75%, 3/1/04............................ 1,938
--------
Utilities--Electric & Gas (6.2%):
3,100 Baltimore Gas & Electric, 7.50%, 1/15/07................ 3,216
2,000 Consolidated Edison Co. of New York, Inc., 6.63%,
2/1/02................................................. 2,013
3,500 National Rural Utilities, 5.00%, 10/1/02................ 3,346
3,100 National Rural Utilities, 6.38%, 10/15/04............... 3,030
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- -------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Utilities--Electric & Gas, continued:
$ 2,750 Northern States Power Co., 7.88%, 10/1/01............... $ 2,839
2,250 Oklahoma Gas & Electric Co., 6.25%, 10/15/00............ 2,256
2,000 Tampa Electric Co., 6.13%, 5/1/03....................... 1,968
2,500 Virginia Electric & Power Co., 8.00%, 3/1/04............ 2,625
3,500 Wisconsin Electric Power, 6.63%, 11/15/06............... 3,425
--------
24,718
--------
Utilities--Telecommunications (5.6%):
2,000 BellAtlantic Corp., 6.25%, 2/15/04...................... 1,960
3,500 BellSouth Telecommunications, 6.50%, 6/15/05............ 3,439
2,009 Chesapeake & Potomac Telephone, 6.00%, 5/1/03........... 1,971
2,000 GTE California, Inc., 5.63%, 2/1/01..................... 1,983
2,295 GTE Northwest, Inc., Series A, 7.38%, 5/1/01............ 2,335
1,650 GTE Southwest, Inc., Series A, 5.82%, 12/1/99........... 1,650
500 Michigan Bell Telephone, 5.88%, 9/15/99................. 500
2,000 Southern New England Telecommunications Corp.,
6.50%, 2/15/02......................................... 2,003
2,000 Southwestern Bell Telephone, 6.63%, 4/1/05.............. 1,978
4,000 US West Communications Group, 6.63%, 9/15/05............ 3,854
--------
21,673
--------
Total Corporate Bonds 182,466
--------
U.S. Government Agencies (12.8%):
Fannie Mae (8.9%):
3,000 6.59%, 5/21/02.......................................... 3,036
7,500 7.05%, 11/12/02......................................... 7,706
17,600 5.13%, 2/13/04.......................................... 16,716
7,300 6.56% 11/26/07.......................................... 7,148
--------
34,606
--------
</TABLE>
Continued
-74-
<PAGE>
AMSOUTH MUTUAL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (0.7%):
$ 700 7.14%, 3/12/07........................................... $ 704
2,000 7.10%, 4/10/07........................................... 2,058
--------
2,762
--------
Government National Mortgage Assoc. (2.3%):
9,279 7.00%, 11/20/28.......................................... 9,014
--------
Tennessee Valley Authority (0.9%):
4,000 5.38%, 11/13/08.......................................... 3,632
--------
Total U.S. Government Agencies 50,014
--------
U.S. Treasury Securities (35.3%):
Bonds (30.1%):
8,000 5.75%, 8/15/03........................................... 7,958
15,000 5.88%, 11/15/05.......................................... 14,884
21,000 6.50%, 10/15/06.......................................... 21,480
17,833 3.38%, 1/15/07........................................... 17,070
17,000 7.50%, 11/15/16.......................................... 18,963
37,360 6.25%, 8/15/23........................................... 37,060
--------
117,415
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- -------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Securities, continued:
Notes (4.4%):
$ 17,000 6.13%, 8/15/07.......................................... $ 17,037
--------
Strips (0.8%):
4,000 2/15/04................................................. 3,067
--------
Total U.S. Treasury Securities 137,519
--------
Investment Companies (3.4%):
13,287,510 AmSouth Prime Obligations Fund.......................... 13,288
7 AmSouth U.S. Treasury Fund.............................. --*
--------
Total Investment Companies 13,288
--------
Total (Cost $385,361) (a) $383,287
========
</TABLE>
- --------
Percentages indicated are based on net assets of $389,817.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $ 5,701
Unrealized depreciation....... (7,775)
-------
Net unrealized depreciation... $(2,074)
=======
</TABLE>
* Due to rounding, figure was below thousand dollar threshold.
See notes to financial statements.
-75-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds (98.0%):
Alabama (56.5%):
$ 2,245 Alabama State Agriculture & Mechanical University
Revenue, 4.55%, 11/1/09, Callable 5/1/08 @ 102, MBIA .. $ 2,155
2,355 Alabama State Agriculture & Mechanical University
Revenue, 4.65%, 11/1/10, Callable 5/1/08 @ 102, MBIA .. 2,248
2,035 Alabama State Agriculture & Mechanical University
Revenue, 6.50%, 11/1/25, Callable 11/1/05 @ 102, MBIA . 2,287
3,060 Alabama State Corrections Institution, Series A, 4.90%,
4/1/03, MBIA .......................................... 3,118
1,520 Alabama State Industrial Access Road & Bridge Corp.,
Capital Improvements, Series A, 4.60%, 6/1/03 ......... 1,528
3,700 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.75%, 1/1/05, AMBAC ............... 3,739
3,880 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.85%, 1/1/06, AMBAC ............... 3,927
2,000 Alabama State Mental Health Finance Authority, Special
Tax, 4.88%, 5/1/03, MBIA .............................. 2,039
7,350 Alabama State Public School & College Authority, 4.75%,
12/1/03, Callable 6/1/03 @ 103 ........................ 7,474
3,390 Alabama State Public School & College Authority, 5.00%,
12/1/05, Callable 6/1/03 @ 103 ........................ 3,479
10,000 Alabama State Public School & College Authority Revenue,
Series A, 4.38%, 8/1/04 ............................... 9,981
5,000 Alabama State Public School & College Authority, Capital
Improvement, 4.75%, 11/1/06, Callable 11/1/05 @ 101 ... 5,039
1,760 Alabama State Water Pollution Control Authority,
Revolving Fund, Series B, 5.25%, 8/15/08, Callable
8/15/06 @ 100, AMBAC .................................. 1,805
1,350 Alabama State Water Pollution Control Authority,
Revolving Fund, Series B, 5.38%, 8/15/10, Callable
8/15/06 @ 100, AMBAC .................................. 1,379
2,495 Alabama State Water Pollution Control Authority,
Revolving Fund, Series B, 5.40%, 8/15/11, Callable
8/15/06 @ 100, AMBAC .................................. 2,552
5,000 Alabama State Water Pollution Control Authority,
Revolving Fund, Series B, 5.50%, 8/15/16, Callable
8/15/06 @ 100, AMBAC .................................. 5,046
3,500 Alabama State, Series A, GO, 4.60%, 10/1/05............. 3,517
1,000 Auburn University, University Revenues, General Fee,
5.25%, 6/1/06, Callable 6/1/03 @ 102, MBIA ............ 1,032
1,040 Birmingham Capital Improvement, Series B, GO, 4.80%,
10/1/08, Callable 4/1/07 @ 102 ........................ 1,039
1,375 Birmingham Waterworks & Sewer Board, Water & Sewer
Revenue, 5.90%, 1/1/03, Callable 1/1/02 @ 102 ......... 1,453
1,340 Birmingham, Capital Improvements, Series A, GO, 4.75%,
10/1/10, Callable 4/1/08 @ 102 ........................ 1,309
1,430 Birmingham, Capital Improvements, Series A, GO, 4.85%,
10/1/11, Callable 4/1/08 @ 102 ........................ 1,396
1,500 Birmingham, GO, 4.90%, 7/1/06........................... 1,525
1,300 Birmingham, Industrial Water Board, Industrial Water
Supply, 5.50%, 3/1/06, Pre-refunded 3/1/05 @ 100 ...... 1,362
3,465 Birmingham, Industrial Water Board, Industrial Water
Supply, 6.20%, 7/1/08, Pre-refunded 1/1/07 @ 100 ...... 3,663
1,100 Birmingham, Industrial Water Board, Industrial Water
Supply, ETM, 5.30%, 3/1/04, Callable 3/1/03 @ 102 ..... 1,139
1,000 Birmingham, Industrial Water Board, Industrial Water
Supply, ETM, 5.40%, 3/1/05, Callable 3/1/03 @ 102 ..... 1,042
1,045 Clark & Mobile County, Gas District, 5.60%, 12/1/17,
Callable 12/1/06 @ 102, MBIA .......................... 1,064
9,500 Daphne, Special Care Facilities Financing Authority,
Presbyterian Retirement Corp., 7.30%, 8/15/18, Pre-
refunded 8/15/01 @ 100 ................................ 10,071
720 Decatur, Warrants, Series E, Limited GO, 5.10%, 8/1/05,
Callable 8/1/02 @ 102 ................................. 738
760 Decatur, Warrants, Series E, Limited GO, 5.20%, 8/1/06,
Callable 8/1/02 @ 102 ................................. 779
750 Decatur, Warrants, Series E, Limited GO, 5.25%, 8/1/08,
Callable 8/1/02 @ 102 ................................. 763
780 Decatur, Warrants, Series E, Limited GO, 5.30%, 8/1/09,
Callable 8/1/02 @ 102 ................................. 792
2,845 Florence, Warrants, Series A, GO, 4.65%, 9/1/03, MBIA... 2,879
390 Florence, Warrants, Series A, GO, 4.35%, 12/1/07, FSA... 380
</TABLE>
Continued
-76-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Alabama, continued:
$ 405 Florence, Warrants, Series A, GO, 4.40%, 12/1/08........ $ 392
425 Florence, Warrants, Series A, GO, 4.50%, 12/1/09........ 410
445 Florence, Warrants, Series A, GO, 4.60%, 12/1/10,
Callable 12/1/08 @ 102 ................................ 428
790 Florence, Warrants, Series B, GO, 4.35%, 12/1/07, FSA... 769
825 Florence, Warrants, Series B, GO, 4.40%, 12/1/08, FSA... 798
865 Florence, Warrants, Series B, GO, 4.50%, 12/1/09,
Callable 12/1/08 @ 102, FSA ........................... 834
900 Florence, Warrants, Series B, GO, 4.60%, 12/1/10,
Callable 12/1/08 @ 102, FSA ........................... 865
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 ............................ 5,150
5,450 Hoover, Warrants, GO, 4.50%, 3/1/13, Pre-refunded 3/1/03
@ 100 ................................................. 5,016
550 Huntsville Electric, 4.60%, 12/1/09, Callable 12/1/07 @
102.................................................... 534
660 Huntsville Electric, 4.70%, 12/1/10, Callable 12/1/07 @
102.................................................... 639
680 Huntsville Electric, 4.80%, 12/1/11, Callable 12/1/07 @
102.................................................... 656
3,120 Huntsville, Warrants, Series B, GO, 4.00%, 11/1/05...... 3,026
3,245 Huntsville, Warrants, Series B, GO, 4.00%, 11/1/06...... 3,108
3,380 Huntsville, Warrants, Series B, GO, 4.10%, 11/1/07...... 3,218
2,000 Huntsville, Water System, Warrants, 5.00%, 5/1/02,
AMBAC.................................................. 2,042
3,125 Huntsville, Water System, Warrants, 5.05%, 5/1/03,
Callable 5/1/02 @ 102, AMBAC .......................... 3,202
1,000 Jefferson County Board of Education, Capital Outlay,
5.40%, 2/15/10, Callable 2/15/03 @ 102, AMBAC ......... 1,053
4,000 Jefferson County, GO, 5.30%, 4/1/09, Pre-refunded 4/1/03
@ 102 ................................................. 4,070
2,400 Jefferson County, Sewer Revenue Warrants, 5.40%, 9/1/04,
Pre-refunded 3/1/03 @ 102.5, MBIA ..................... 2,539
5,000 Jefferson County, Warrants, GO, 5.00%, 4/1/04, Callable
4/1/03 @ 102 .......................................... 5,119
2,000 Mobile County Board of School Commissioners, Warrants,
Capital Outlay, 4.80%, 3/1/02, AMBAC .................. 2,030
1,350 Mobile County, Series A, GO, 5.00%, 2/1/04, Callable
2/1/03 @ 102 .......................................... 1,382
1,000 Mobile County, Warrants, Series A, Limited GO, 5.00%,
2/1/04, Callable 2/1/03 @ 102 ......................... 1,024
5,000 Mobile County, Warrants, Series A, Limited GO, 5.10%,
2/1/05, Callable 2/1/03 @ 102 ......................... 5,142
1,630 Mobile, Warrants, GO, 6.50%, 2/15/05, AMBAC............. 1,782
1,685 Mobile, Warrants, GO, 6.50%, 2/15/06, AMBAC............. 1,857
2,700 Mobile, Warrants, GO, 4.85%, 2/15/09, Callable 2/15/00 @
100 ................................................... 2,662
3,250 Mobile, Water & Sewer Commissioners, Water & Sewer
Revenue, 5.00%, 1/1/05, FGIC .......................... 3,327
1,500 Montgomery County, Warrants, GO, 5.00%, 11/1/04,
Callable 11/1/04 @ 102 ................................ 1,539
1,040 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/05,
Callable 5/1/03 @ 102 ................................. 1,066
1,000 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/06,
Callable 5/1/03 @ 102 ................................. 1,019
3,000 Montgomery, Waterworks & Sanitary Sewer Board, 5.50%,
9/1/08, Callable 9/1/06 @ 101, MBIA ................... 3,135
1,000 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
5.70%, 9/1/02 ......................................... 1,041
2,500 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.25%, 9/1/08, Callable 9/1/02 @ 102 .................. 2,667
3,565 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.30%, 9/1/10, Callable 9/1/02 @ 102 .................. 3,808
1,005 Shelby County, Warrants, Board of Education, Capital
Outlay, 4.80%, 2/1/10, Callable 2/1/09 @ 101, AMBAC.... 986
1,990 Shelby County, Warrants, Series A, 5.60%, 8/1/02, AMBAC. 2,070
1,830 Shelby County, Warrants, Series A, 5.70%, 2/1/03, AMBAC. 1,912
335 Talladega County, Industrial Development Board, Cyprus 1
Project, 9.75%, 12/1/13 ............................... 336
</TABLE>
Continued
-77-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Alabama, continued:
$ 740 Tuscaloosa County, Warrants, GO, 5.60%, 10/1/04.......... $ 780
1,200 University Alabama General Fee, 4.60%, 6/1/09, Callable
6/1/07 @ 102, MBIA ..................................... 1,171
1,300 University Alabama General Fee, 4.70%, 6/1/10, Callable
6/1/07 @ 102, MBIA ..................................... 1,265
1,500 University Alabama General Fee, 4.75%, 6/1/11, Callable
6/1/07 @ 102, MBIA ..................................... 1,450
2,185 University of South Alabama, University Revenues,
Tuition, 4.70%, 11/15/08, Callable 5/15/06 @ 102, AMBAC 2,163
--------
183,221
--------
California (1.5%):
4,765 San Mateo County, Transit District Sales Tax Revenue,
Series A, 5.25%, 6/1/16, Callable 6/1/09 @ 101, FSA .... 4,744
--------
Florida (5.7%):
1,150 Escambia County, Utilities Authority Revenue, Series D,
5.00%, 1/1/04, FGIC .................................... 1,179
2,000 Escambia County, Utilities Authority Revenue, Series D,
5.00%, 1/1/05, FGIC .................................... 2,051
6,500 Florida State Board of Education, Capital Outlay, Series
A, GO, 5.00%, 6/1/08 ................................... 6,606
8,070 Reedy Creek, Improvement District, Series 1, 5.50%,
10/1/08, Callable 10/1/07 @ 101, AMBAC ................. 8,510
--------
18,346
--------
Michigan (2.2%):
7,000 Municipal Bond Authority Revenue, 5.00%, 12/1/05......... 7,191
--------
Minnesota (0.7%):
2,175 Centennial Independent School District, No. 12, Series A,
GO, 5.60%, 2/1/07, MBIA ................................ 2,296
--------
Mississippi (0.6%):
2,000 Mississippi State, Capital Improvements, Series A, GO,
5.20%, 8/1/11, Callable 8/1/03 @ 100 ................... 2,007
--------
Missouri (2.4%):
7,535 Missouri State, Water Pollution, Series B, GO, 5.00%,
8/1/07, Callable 8/1/03 @ 102 .......................... 7,699
--------
New York (0.9%):
1,150 Hempstead Town, GO, 5.00%, 2/15/09, Callable 2/15/06 @
102 .................................................... 1,163
1,500 Municipal Assistance Corp. for New York City, GO, 6.00%,
7/1/05 ................................................. 1,615
--------
2,778
--------
North Carolina (2.3%):
355 Durham, Water & Sewer Revenue, 4.60%, 6/1/05............. 357
675 Durham, Water & Sewer Revenue, 4.60%, 6/1/06............. 676
555 Durham, Water & Sewer Revenue, 4.60%, 6/1/07............. 552
765 Durham, Water & Sewer Revenue, 4.60%, 6/1/08............. 754
5,000 North Carolina State, Series A, GO, 4.75%, 4/1/09,
Callable 4/1/08 @ 100.5 ................................ 4,988
--------
7,327
--------
</TABLE>
Continued
-78-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Oregon (2.3%):
$ 2,365 Salem, GO, 4.45%, 12/1/10, Callable 6/1/09 @ 100, FSA... $ 2,247
5,285 Washington County, Criminal Justice Facilities, GO,
5.00%, 12/1/09, Callable 12/1/07 @ 100 ................ 5,331
--------
7,578
--------
South Carolina (2.9%):
5,525 Beaufort County, School District, GO, Series B, 4.10%,
2/1/09, Callable 2/1/07 @ 101, SCSDE .................. 5,151
4,325 Beaufort County, School District, GO, Series B, 4.90%,
3/1/09, Callable 3/1/05 @ 101 ......................... 4,325
--------
9,476
--------
Tennessee (3.3%):
2,000 Jackson, Improvements, 5.00%, 3/1/10, Pre-refunded
3/1/05 @102 ........................................... 1,997
3,000 Metropolitan Government, Nashville & Davidson County,
GO, 5.25%, 5/15/06 .................................... 3,118
5,495 Tennessee State, Series B, GO, 4.60%, 5/1/07, Callable
5/1/06 @ 100 .......................................... 5,487
--------
10,602
--------
Texas (6.7%):
3,000 Dallas County, Series A, GO, 5.25%, 8/15/09............. 3,080
4,000 Mesquite Independent School District, Series A, GO,
4.70%, 8/15/08, Callable 8/15/07 @ 100 ................ 3,967
5,000 Texas State, Series B, GO, 5.25%, 10/1/08, Callable
10/1/03 @ 100 ......................................... 5,082
3,575 University of Texas, 4.60%, 7/1/08, Callable 7/1/06 @
100.................................................... 3,534
5,455 University of Texas, Series B, 4.25%, 8/15/09, Callable
8/15/07 @ 100 ......................................... 5,143
1,000 Whitehouse Texas Independent School District, GO, 4.80%,
2/15/12, Callable 2/15/08 @ 100 ....................... 956
--------
21,762
--------
Utah (4.6%):
4,805 Davis County, School District, GO, 4.38%, 6/1/08, School
Board Guaranty ........................................ 4,662
3,810 Jordan School District, GO, 4.80%, 6/15/08, Callable
6/15/07 @ 100 ......................................... 3,817
6,000 Utah State, GO, Series F, 5.50%, 7/1/07................. 6,343
--------
14,822
--------
Virginia (3.3%):
2,000 Virginia College Building Authority, Series A, 5.00%,
9/1/12, Callable 9/1/07 @ 101.......................... 1,975
5,000 Virginia State, GO, 5.00%, 6/1/08, Callable 6/1/07 @
100,................................................... 5,110
3,500 Virginia State, Public School Authority, Series S,
5.25%, 8/1/09 ......................................... 3,613
--------
10,698
--------
Washington (2.1%):
6,500 Washington State, GO, 5.75%, 9/1/08..................... 6,930
--------
Total Municipal Bonds 317,477
--------
</TABLE>
Continued
-79-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Investment Companies (2.0%):
33,471 Federated Tax-Free Fund.................................. $ 33
6,367,832 Goldman Sachs Tax-Free Fund.............................. 6,368
--------
Total Investment Companies 6,401
--------
Total (Cost $321,757) (a) $323,878
========
</TABLE>
- --------
Percentages indicated are based on net assets of $324,003.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........ $5,063
Unrealized depreciation........ (2,942)
------
Net unrealized appreciation.... $2,121
======
</TABLE>
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.
SCSDE--South Carolina School District Enhancement.
See notes to financial statements.
-80-
<PAGE>
AMSOUTH MUTUAL FUNDS
Florida Tax-Free Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Florida Municipal Bonds (97.3%):
$ 545 Altamonte Springs, Health Facilities Authority, Hospital
Revenue, ETM, 5.60%, 10/1/10.............................. $ 578
1,000 Bay County, Florida Resource Recovery Revenue, 6.00%,
7/1/01, MBIA.............................................. 1,037
1,500 Broward County School District, GO, 5.60%, 2/15/07,
Callable 2/15/03 @ 102.................................... 1,567
2,000 Broward County School District, GO, 6.00%, 2/15/07,
Callable 2/15/02 @ 102.................................... 2,116
1,000 Dade County School District, 5.75%, 8/1/03, AMBAC.......... 1,054
1,000 Dade County School District, GO, 6.00%, 7/15/06............ 1,084
1,000 Dade County School District, GO, 5.00%, 2/15/14, Callable
2/15/07 @ 101, MBIA....................................... 979
1,000 Dade County, Aviation Authority, Series 1994 B, 6.25%,
10/1/04, AMBAC............................................ 1,087
1,115 Dade County, Public Services, Tax Revenue, 5.00%, 10/1/12,
Callable 10/1/09 @ 101, FSA............................... 1,105
1,000 Dade County, Water & Sewer System Revenue, 4.70%, 10/1/04,
FGIC...................................................... 1,016
1,000 Escambia County, Utility Authority, Utility System Revenue,
5.00%, 1/1/08, FGIC....................................... 1,015
755 Florida Housing Finance Agency, Homeowner Mortgages, Series
1995 A-1, 5.65%, 1/1/09, Callable 1/1/06 @ 102 ........... 776
1,000 Florida State Board of Education, GO, 5.00%, 6/1/10,
Callable 6/1/05 @ 101..................................... 1,002
515 Florida State Board of Education, GO, 7.25%, 6/1/23,
Callable 6/1/00 @ 102 .................................... 541
1,355 Florida State Board of Education, Lottery Revenue, Series
A, 5.00%, 7/1/09, Callable 7/1/08 @ 101, FGIC............. 1,369
1,000 Florida State Board of Education, Series A, GO, 4.80%,
1/1/09, Callable 1/1/07 @ 101............................. 995
1,000 Florida State Board of Education, Series A, GO, 5.00%,
1/1/15, Callable 1/1/08 @ 101............................. 975
2,000 Florida State Board of Education, Series B, GO, 5.38%,
6/1/08, Callable 6/1/07 @ 101............................. 2,086
1,000 Florida State Board of Education, Series B, GO, 5.00%,
6/1/08.................................................... 1,016
1,000 Florida State Board of Education, Series E, GO, 5.10%,
6/1/13, Callable 6/1/03 @ 101............................. 993
3,310 Florida State Department of Transportation, Right of Way,
Series B, GO, 5.50%, 7/1/08, Callable 7/1/07 @ 101........ 3,487
1,000 Florida State Division of Bond Finance, Department of
General Services, Preservation 2000,
Series A, 5.50%, 7/1/08, FSA.............................. 1,052
1,000 Florida State Division of Bond Finance, Department of
General Services, Preservation 2000,
Series A, 5.70%, 7/1/09, Callable 7/1/05 @ 101, AMBAC..... 1,048
1,000 Florida State Division of Bond Finance, Department of
General Services, Preservation 2000,
Series A, 5.00%, 7/1/12, Callable 7/1/07 @ 101, AMBAC..... 990
2,000 Florida State Division of Bond Finance, Department of
General Services, Series B, 5.50%, 7/1/05, AMBAC.......... 2,108
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....... 1,027
1,000 Florida State Division of Bond Finance, Department of
Natural Resources, Save Our Coast, 6.30%, 7/1/04,
Callable 7/1/01 @ 101, MBIA............................... 1,052
1,000 Florida State Turnpike Authority, Turnpike Revenue, Series
A, 5.50%, 7/1/11, Callable 7/1/05 @ 101, FGIC............. 1,027
1,000 Florida State Turnpike Authority, Turnpike Revenue, Series
A, 5.00%, 7/1/12, Callable 7/1/09 @ 101, FSA.............. 992
890 Florida State, GO, Senior Lien, Jacksonville
Transportation, 6.25%, 7/1/06............................. 978
1,000 Florida State, GO, Senior Lien, Jacksonville
Transportation, 5.00%, 7/1/11, Callable 7/1/09 @ 101, FSA. 996
1,000 Florida State, GO, Senior Lien, Jacksonville
Transportation, 5.25%, 7/1/15, Callable 7/1/07 @ 101...... 999
1,250 Ft. Lauderdale, Park Improvement Project, GO, 5.50%,
7/1/17, Callable 1/1/04 @ 101............................. 1,261
1,000 Hillsborough County, Capital Improvements, County Center
Project, Series B, 5.00%, 7/1/13, Callable 7/1/06 @ 102,
MBIA...................................................... 983
750 Hillsborough County, Environmental Land, GO, 6.00%,
7/1/03*, Callable 7/1/02 @ 102, AMBAC-TCRS................ 797
1,000 Hillsborough County, Solid Waste & Resource Recovery
Revenue, 5.30%, 10/1/03, MBIA............................. 1,040
</TABLE>
Continued
-81-
<PAGE>
AMSOUTH MUTUAL FUNDS
Florida Tax-Free Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Florida Municipal Bonds, continued:
$ 1,000 Homestead, Special Insurance Assessment Revenue, 4.90%,
9/1/00, MBIA............................................. $ 1,014
1,000 Jacksonville Electric Authority, St. John's River Issue 2,
Series 15, 4.75%, 10/1/07, Callable 4/1/06 @ 101......... 1,004
1,000 Jacksonville Electric Authority, St. John's River Issue 2,
Series 16, 5.00%, 10/1/10, Callable 10/1/03 @ 101........ 1,001
1,000 Jacksonville, District Water & Sewer Revenue, ETM, 5.20%,
10/1/02, MBIA............................................ 1,031
1,010 Jacksonville, Excise Tax Revenue, Series A, 5.50%,
10/1/05, FGIC............................................ 1,067
1,500 Kissimmee Utility Authority, Electric System Revenue,
4.50%, 10/1/05........................................... 1,505
500 Manatee County School Board, Certificates of
Participation, 7/1/09, Callable 7/1/06 @ 102, MBIA....... 543
1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08,
Callable 9/1/05 @ 102, FSA............................... 1,041
1,675 Okeechobee Utility Authority, Utility System Revenue,
5.25% 10/1/14, Callable 10/1/09 @ 101, FSA............... 1,680
1,000 Orange County, Sales Tax Revenue, 4.80%, 1/1/17, Callable
1/1/07 @ 101, FGIC....................................... 930
1,000 Orlando & Orange County Expressway Authority, Expressway
Revenue, Senior Lien, 4.80%, 7/1/01, AMBAC............... 1,015
1,500 Orlando Utilities Commission, Water & Electric Revenue,
Series B, 5.10%, 10/1/11, Callable 10/1/06 @ 100......... 1,504
1,500 Orlando, Wastewater System Revenue, Series B, 4.90%,
10/1/06, Callable 10/1/03 @ 102, AMBAC................... 1,527
1,000 Osceola County, Capital Improvements, 5.00%, 9/1/02, MBIA. 1,026
1,000 Palm Beach County, Criminal Justice Facilities, 5.38%,
6/1/10, FGIC............................................. 1,035
1,000 Pasco County, Water & Sewer Revenue, Series A, 5.50%,
10/1/03, Callable 10/1/02 @ 102, FGIC.................... 1,048
1,000 Port of Palm Beach, 6.25%, 9/1/08, Callable 9/1/02 @ 102,
MBIA..................................................... 1,072
1,000 Reedy Creek, Improvement District, Series A, GO, 5.60%,
6/1/10, Callable 6/1/05 @ 100, MBIA...................... 1,033
1,000 Reedy Creek, Improvement District, Series C, GO, 4.90%,
6/1/08, Callable 12/1/05 @ 101, AMBAC.................... 1,009
1,000 Seminole County, Local Option Gas Tax Revenue, 5.00%,
10/1/02, FGIC............................................ 1,026
1,000 St. Johns River Management District, Land Acquisition,
5.10%, 7/1/09, Callable 7/1/05 @ 100, FSA................ 1,012
1,000 St. Petersburg, Utility Tax Revenue, 5.85%, 6/1/02........ 1,043
1,000 Sunshine Skyway Revenue, 6.60%, 7/1/08 *, Callable 7/1/01
@ 101.................................................... 1,049
1,000 Tallahassee, Consolidated Utility System Revenue, 5.80%,
10/1/08, Callable 10/1/03 @ 102.......................... 1,071
1,000 Tampa Sports Authority, Local Option Sales Tax Revenue,
Stadium Project, 6.00%, 1/1/06, MBIA..................... 1,080
1,000 Tampa Water Utility Systems, Series B, 4.75%, 10/1/27,
Callable 10/1/08 @ 101, FGIC............................. 884
750 Tampa, Water & Sewer Revenue, 5.25%, 10/1/12, Callable
10/1/05 @ 102, FGIC...................................... 757
1,000 Tampa-Hillsborough County, Expressway, 5.00%, 7/1/10,
Callable 7/1/07 @ 101.................................... 1,003
1,000 Volusia County Sales Tax Revenue, 5.00%, 10/1/13, Callable
10/1/08 @ 101, MBIA...................................... 986
1,000 Volusia County School District, GO, 5.30%, 6/1/01, FSA.... 1,023
-------
Total Florida Municipal Bonds 74,247
-------
Investment Companies (1.6%):
6,693 AmSouth Tax-Exempt Fund................................... 7
1,232,054 Dreyfus Florida Money Market Fund......................... 1,232
-------
Total Investment Companies 1,239
-------
Total (Cost $75,561) (a) $75,486
=======
</TABLE>
Continued
-82-
<PAGE>
AMSOUTH MUTUAL FUNDS
Florida Tax-Free Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
- --------
Percentages indicated are based on net assets of $76,312.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $ 1,026
Unrealized depreciation....... (1,101)
-------
Net unrealized depreciation... $ (75)
=======
</TABLE>
* Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly, monthly,
or semiannually.
AMBAC--Insured by AMBAC Indemnity 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.
-83-
<PAGE>
AMSOUTH MUTUAL FUNDS
U.S. Treasury Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. Treasury Bills (35.4%):
$11,000 8/5/99................................................... $ 10,996
5,000 8/12/99.................................................. 4,993
10,000 8/19/99.................................................. 9,977
15,000 8/26/99.................................................. 14,955
10,000 9/2/99................................................... 9,960
10,000 9/16/99.................................................. 9,944
10,000 9/23/99.................................................. 9,932
5,000 10/7/99.................................................. 4,958
10,000 10/21/99................................................. 9,900
10,000 10/28/99................................................. 9,888
10,000 11/12/99................................................. 9,864
10,000 12/16/99................................................. 9,823
--------
Total U.S. Treasury Bills 115,190
--------
U.S. Treasury Notes (26.3%):
10,000 8.00%, 8/15/99........................................... 10,012
10,000 5.88%, 8/31/99........................................... 10,009
5,000 7.13%, 9/30/99........................................... 5,020
10,000 6.00%, 10/15/99.......................................... 10,027
10,000 7.50%, 10/31/99.......................................... 10,069
15,000 7.88%, 11/15/99.......................................... 15,133
10,000 7.75%, 11/30/99.......................................... 10,085
5,000 7.75%, 1/31/00........................................... 5,064
10,000 8.50%, 2/15/00........................................... 10,181
--------
Total U.S. Treasury Notes 85,600
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Repurchase Agreements (34.8%):
$56,604 C.S. First Boston Corp., 5.03%, dated 7/30/99, due
8/2/99, proceeds at maturity of $56,604,
(Collateralized by $47,066 U.S. Treasury Bonds, 8.13%,
8/15/99--Market value $58,165) ....................... $ 56,604
56,604 Solomon Smith Barney, 5.03%, dated 7/30/99, due 8/2/99,
proceeds at maturity of $56,604, (Collateralized by
$57,736 Freddie Mac, 5.75%, 4/15/08 and Fannie Mae,
5.63%, 5/14/04--Market value $57,018) ................ 56,604
--------
Total Repurchase Agreements 113,208
--------
Total (Cost $313,998) (a) $313,998
========
</TABLE>
- --------
Percentages indicated are based on net assets of $325,237.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
-84-
<PAGE>
AMSOUTH MUTUAL FUNDS
Prime Obligations Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Foreign (4.4%):
Banking (1.5%):
$10,000 Toronto Dominion Holdings, 5.01%, 12/7/99................ $ 9,822
--------
Financial Services (1.5%):
10,000 Island Finance Puerto Rico, 5.13%, 10/18/99.............. 9,889
--------
Food Products & Services (1.4%):
10,000 Canadian Wheat Board, 4.74%, 8/20/99..................... 9,975
--------
Total Commercial Paper--Foreign 29,686
--------
Certificates of Deposit (3.7%):
Banking (3.7%):
10,000 BankAmerica, 5.24%, 9/24/99.............................. 10,001
10,000 Canadian Imperial Bank of Commerce, 5.01%, 2/7/00........ 9,998
5,000 Harris Trust, 5.05%, 2/14/00............................. 4,999
--------
Total Certificates of Deposit 24,998
--------
Corporate Bonds (3.7%):
Brokerage Services (1.5%):
5,000 Bear Stearns & Co., Inc., 6.50%, 7/5/00.................. 5,037
5,000 Morgan Stanley Dean Witter, 5.89%, 3/20/00............... 5,022
--------
10,059
--------
Electric Utility (0.7%):
5,000 Alabama Power Co., 6.00%, 3/1/00......................... 5,022
--------
Financial Services (0.8%):
5,000 American General Finance Corp., 7.25%, 4/15/00........... 5,051
--------
Food Products & Services (0.7%):
5,000 Diagio PLC, 6.50%, 9/15/99............................... 5,005
--------
Total Corporate Bonds 25,137
--------
Floating Rate Funding Agreements (5.5%):
Insurance (5.5%):
12,000 General American Life Insurance Co., 5.31%*, 9/1/99**.... 12,000
12,500 Monumental Life Insurance Co., 5.33%*, 8/1/99**.......... 12,500
12,500 Monumental Life Insurance Co., 5.38%*, 8/1/99**.......... 12,500
--------
Total Floating Rate Funding Agreements 37,000
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic (69.2%):
Agriculture (3.0%):
$10,000 Cargill Inc., 4.77%, 8/2/99.............................. $ 9,999
10,000 Monsanto Co., 4.91%, 9/21/99............................. 9,930
--------
19,929
--------
Aircraft Leasing (3.0%):
10,000 International Lease Finance Corp., 4.80%, 8/5/99......... 9,995
10,000 International Lease Finance Corp., 4.74%, 8/13/99........ 9,984
--------
19,979
--------
Aluminum (3.0%):
10,000 Alcoa, 4.78%, 8/24/99.................................... 9,969
10,000 Alcoa, 4.84%, 8/31/99.................................... 9,960
--------
19,929
--------
Automotive (2.9%):
10,000 Daimler Chrysler, 4.85%, 9/20/99......................... 9,932
10,000 Daimler Chrysler, 5.14%, 10/6/99......................... 9,906
--------
19,838
--------
Automotive Credit (5.9%):
10,000 BMW US Capital, 5.17%, 12/10/99.......................... 9,812
10,000 Ford Motor Credit Co., 4.80%, 8/27/99.................... 9,965
10,000 Ford Motor Credit Co., 4.70%, 11/5/99.................... 9,875
10,000 General Motors Acceptance Corp., 5.28%, 1/25/00.......... 9,740
--------
39,392
--------
Banking (6.6%):
10,000 J.P. Morgan & Co., 4.80%, 10/8/99........................ 9,909
5,000 J.P. Morgan & Co., 4.80%, 10/15/99....................... 4,950
10,000 SunTrust Banks, 5.06%, 8/11/99........................... 9,987
10,000 SunTrust Banks, 5.06%, 8/25/99........................... 9,966
10,000 Wells Fargo & Co., 4.86%, 9/10/99........................ 9,946
--------
44,758
--------
Beverages (1.5%):
10,000 Coca Cola Co., 5.00%, 9/17/99............................ 9,935
--------
Brokerage Services (2.9%):
10,000 Goldman Sachs, 5.36%, 1/21/00............................ 9,742
10,000 Merrill Lynch, 5.13%, 9/16/99............................ 9,935
--------
19,677
--------
</TABLE>
Continued
-85-
<PAGE>
AMSOUTH MUTUAL FUNDS
Prime Obligations Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic, continued:
Consumer Goods (8.8%):
$10,000 Clorox Co., 4.88%, 9/8/99................................ $ 9,948
10,000 Clorox Co., 5.11%, 10/21/99.............................. 9,885
10,000 Hasbro Inc., 4.94%, 10/26/99............................. 9,882
10,000 Kimberly Clark, 5.05%, 8/19/99........................... 9,975
10,000 Procter & Gamble, 4.97%, 8/9/99.......................... 9,989
10,000 Proctor & Gamble, 5.10%, 9/29/99......................... 9,916
--------
59,595
--------
Electric Utility (3.7%):
10,000 Alabama Power Co., 5.08%, 8/24/99........................ 9,968
5,000 National Rural Utilities, 4.83%, 8/23/99................. 4,985
10,000 National Rural Utilities, 4.79%, 8/26/99................. 9,967
--------
24,920
--------
Farm Equipment (3.0%):
10,000 John Deere Capital Corp., 4.77%, 8/17/99................. 9,979
10,000 John Deere Capital Corp., 4.78%, 9/7/99.................. 9,951
--------
19,930
--------
Financial Services (8.7%):
10,000 American Express, 4.80%, 12/14/99........................ 9,820
10,000 American Express, 4.78%, 1/11/00......................... 9,784
10,000 American General Finance Corp., 5.14%, 10/28/99.......... 9,874
10,000 Associates First Capital, 5.30%, 4/3/00.................. 9,638
10,000 General Electric Capital Corp., 5.38%, 4/4/00............ 9,631
10,000 Transamerica Finance, 4.80%, 8/12/99..................... 9,985
--------
58,732
--------
Oil & Gas Exploration, Production, & Services (5.9%):
10,000 Chevron USA, 5.03%, 9/3/99............................... 9,954
10,000 Equilon Enterprises, 5.00%, 8/16/99...................... 9,979
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic, continued:
Oil & Gas Exploration, Production, & Services, continued:
$10,000 Equilon Enterprises, 5.16%, 10/19/99.................... $ 9,887
10,000 Texaco Inc., 5.33%, 1/18/00............................. 9,748
--------
39,568
--------
Pharmaceuticals (1.5%):
10,000 Pfizer Inc., 5.05%, 9/2/99.............................. 9,955
--------
Technology (2.2%):
5,000 IBM Credit Corp., 4.67%, 8/6/99......................... 4,997
10,000 IBM Credit Corp., 4.80%, 9/13/99........................ 9,942
--------
14,939
--------
Telecommunications (4.4%):
10,000 BellSouth Telecommunications Inc., 5.11%, 9/28/99....... 9,918
10,000 Lucent Technologies, 4.98%, 1/27/00..................... 9,752
10,000 Lucent Technologies, 4.97%, 2/10/00..................... 9,734
--------
29,404
--------
Telecommunications--Wireless (2.2%):
5,109 Motorola, 5.05%, 8/4/99................................. 5,107
10,000 Motorola, 5.08%, 9/10/99................................ 9,943
--------
15,050
--------
Total Commercial Paper--Domestic 465,530
--------
Repurchase Agreements (13.7%):
92,189 Solomon Smith Barney, 5.13%, dated 7/30/99, due 8/2/99
at maturity of $92,189, (Collateralized by $94,034
Freddie Mac, 5.75%,4/15/08 and Fannie Mae, 5.63%,
5/14/04--Market value $92,864)......................... 92,189
--------
Total Repurchase Agreements 92,189
--------
Total (Cost $674,540) (a) $674,540
========
</TABLE>
- --------
Percentages indicated are based on net assets of $673,201.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate security. Rate presented represents rate in effect at July 31,
1999. Date presented reflects next rate change date.
** Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly,
monthly, quarterly, or semianually.
PLC--Public Limited Co.
See notes to financial statements.
-86-
<PAGE>
AMSOUTH MUTUAL FUNDS
Institutional Prime Obligations Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic (72.7%):
Aircraft Leasing (3.6%):
$4,000 International Lease Finance Corp., 4.91%, 9/8/99......... $ 3,979
--------
Aluminum (3.6%):
4,000 Alcoa, Inc., 5.08%, 9/20/99.............................. 3,972
--------
Automotive (3.6%):
4,000 Daimler Chrysler, 5.13%, 11/19/99........................ 3,937
--------
Automotive-Finance (11.0%):
4,000 BMW US Capital, 5.15%, 11/5/99........................... 3,945
4,000 Ford Motor Credit, 4.80%, 8/3/99......................... 3,999
4,000 General Motors Acceptance Corp., 5.13%, 12/10/99......... 3,925
--------
11,869
--------
Banking (3.6%):
4,000 Wells Fargo & Co., 4.86%, 9/10/99........................ 3,978
--------
Beverages (3.6%):
4,000 Coca Cola Co., 5.09%, 10/19/99........................... 3,955
--------
Brokerage Services (3.6%):
4,000 Goldman Sachs, 5.16%, 10/28/99........................... 3,950
--------
Consumer Goods (3.6%):
4,000 Clorox Co., 5.14%, 10/29/99.............................. 3,949
--------
Electric Utility (3.6%):
4,000 National Rural Utilities, 5.10%, 10/5/99................. 3,963
--------
Farm Equipment (3.7%):
4,000 John Deere Capital Corp., 5.09%, 8/6/99.................. 3,997
--------
Financial Services (14.6%):
4,000 American Express Credit, 5.11%, 11/5/99.................. 3,945
4,000 American General Finance Corp, 5.16%, 11/9/99............ 3,943
4,000 Associates First Capital, 4.96%, 10/4/99................. 3,966
4,000 General Electric Capital Corp., 5.01%, 10/25/99.......... 3,953
--------
15,807
--------
</TABLE>
- --------
Percentages indicated are based on net assets of $109,033.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic, continued:
Oil & Gas Exploration, Production, & Services (3.6%):
$4,000 Equilon Enterprises, 5.13%, 10/22/99.................... $ 3,953
--------
Pharmaceuticals (3.7%):
4,000 Pfizer, Inc., 5.05%, 9/3/99............................. 3,981
--------
Technology (3.6%):
4,000 IBM Credit Corp, 5.05%, 9/7/99.......................... 3,979
--------
Telecommunications (3.7%):
4,000 BellSouth Telecommunications Inc., 5.02%, 8/6/99........ 3,997
--------
Total Commercial Paper--Domestic 79,266
--------
Investment Companies (0.0%):
18,427 AmSouth Prime Obligations Fund.......................... 18
15,291 AmSouth U.S. Treasury Fund.............................. 15
--------
Total Investment Companies 33
--------
Repurchase Agreements (27.7%):
15,100 C.S. First Boston Corp., 5.13%, dated 7/30/99, due
8/2/99, proceeds at maturity of $15,100,
(Collateralized by $15,675 Freddie Mac Discount Note,
0.00%, 8/19/99--Market value $15,631).................. 15,100
15,100 Solomon Smith Barney, 5.13%, dated 7/30/99, due 8/2/99,
proceeds at maturity of $15,100, (Collateralized by
$15,402 Freddie Mac, 5.75%, 4/15/08 and Fannie Mae,
5.63%, 5/14/04--Market value $15,211).................. 15,100
--------
Total Repurchase Agreements 30,200
--------
Total (Cost $109,499) (a) $109,499
========
</TABLE>
See notes to financial statements.
-87-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Tax Anticipation Notes (4.9%):
Florida (1.0%):
$1,000 Orange County School District, Tax Anticipation Notes,
3.10%, 9/15/99 ........................................ $ 1,000
-------
Pennsylvania (1.6%):
1,500 Philadelphia, Tax & Revenue, Anticipation Notes, 4.25%,
6/30/00 ............................................... 1,510
-------
Texas (2.3%):
2,200 Texas State Tax & Revenue Anticipation Notes, 4.50%,
8/31/99 ............................................... 2,203
-------
Total Tax Anticipation Notes 4,713
-------
Demand Notes (40.2%):
Alabama (13.1%):
1,500 Alabama Housing Finance Authority, Huntsville, Series B,
3.15%*, 8/4/99**, FNMA ................................ 1,500
2,000 Alabama State Housing Finance Authority, Multi Family
Housing Revenue, Rime VLG Hoover Project, Series A,
3.15%*, 8/4/99**, FNMA ................................ 2,000
1,000 Bon Air, Industrial Development Board, Avondale Mills,
3.15%*, 8/4/99**, LOC: Trust Co. Bank ................. 1,000
2,000 City of Birmingham, Series 1992A, GO, 3.20%*, 8/4/99**,
LOC: Regions Bank ..................................... 2,000
350 Columbia, Industrial Development Board, PCR, Alabama
Power Co. Project, Series D, 3.40%*, 8/2/99** ......... 350
1,000 Jacksonville, Industrial Development Board, Parker
Hannifin Corp., 3.15%*, 8/5/99** ...................... 1,000
2,000 Mobile, Industrial Development Board, PCR, Alabama Power
Co. Project, Series B, 3.20%*, 8/5/99** ............... 1,999
500 North Alabama, Environmental Improvement Authority, PCR,
Reynolds Metals Co., 3.40%*, 8/2/99**, LOC: Bank of
Nova Scotia ........................................... 500
1,000 Port City, Medical Clinic Board, Infirmary Health
Systems, Series B, 3.15%*, 8/5/99**, AMBAC ............ 1,000
1,365 Stevenson, Industrial Development Board, Environmental
Improvement Revenue, Mead Corp. Project, 3.35%*,
8/2/99**, LOC: Credit Suisse .......................... 1,365
-------
12,714
-------
California (2.6%):
2,500 Los Angeles, Regional Airports Improvements Corp., Los
Angeles International-LAX 2, 3.40%*, 8/2/99 **, LOC:
Societe Generale ...................................... 2,500
-------
Florida (3.3%):
1,500 Alachua County Health, 3.00%*, 8/4/99**, MBIA........... 1,500
1,680 Laurel Club, Certificates of Participation, Series 96A,
3.25%*, 8/4/99**, LOC: Swiss Bank Corp. ............... 1,680
-------
3,180
-------
Georgia (1.0%):
1,000 Cobb County, Post Mill Project, 3.15%*, 8/4/99**........ 1,000
-------
Michigan (2.6%):
2,500 Cornell Township Economic Development Corp., Environment
Improvement Revenue, 3.35%*, 8/2/99**, LOC: Swiss Bank. 2,500
-------
</TABLE>
Continued
-88-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Demand Notes, continued:
Minnesota (3.5%):
$1,000 Minneapolis, GO, Sewer Improvements, Series A, 3.05%*,
8/4/99**, LOC: Bayerische Vereinsbank ................. $ 1,000
2,400 Minneapolis, GO, Sewer Improvements, Series B, 3.05%*,
8/5/99** .............................................. 2,400
-------
3,400
-------
New York (2.6%):
900 New York, GO, 3.50%*, 8/2/99**, LOC: Morgan Guaranty
Trust.................................................. 900
1,600 New York, GO, Series D, 3.00%*, 8/4/99**, FGIC.......... 1,600
-------
2,500
-------
North Carolina (0.5%):
500 North Carolina Educational Facilities, 3.00%*, 8/5/99**,
LOC: Wachovia B&T ..................................... 500
-------
Pennsylvania (2.3%):
2,200 Schuylkill County, Industrial Development Authority,
Resource Recovery Revenue, Gilberton Power Project,
3.05%*, 8/4/99**, LOC: Mellon Bank .................... 2,200
-------
South Carolina (1.0%):
1,000 South Carolina State Jobs & Economic Development
Revenue, St. Francis Hospital, 3.40%*, 8/2/99**, LOC:
Chase Manhattan Bank .................................. 1,000
-------
Tennessee (1.9%):
1,300 Metropolitan Nashville Airport Authority, Special
Facilities Revenue, American Airlines Project, Series
A, 3.40%*, 8/2/99**, LOC: Union Bank of Switzerland ... 1,300
500 Sullivan County, Industrial Development Board , PCR,
Mead Corp. Project, 2.80%*, 8/2/99**, LOC:
Union Bank of Switzerland ............................. 500
-------
1,800
-------
Texas (3.1%):
1,000 Grapevine, Industrial Development Corp., American
Airlines A4, 3.40%*, 8/2/99**, LOC: Morgan Guaranty ... 1,000
2,000 North Central Texas Series C, 3.40%*, 8/2/99**.......... 2,000
-------
3,000
-------
Washington (0.6%):
600 Seattle Municipal Light & Power, 3.00%*, 8/4/99**....... 600
-------
Wyoming (2.1%):
2,000 Lincoln County PCR, Project D, 3.35%*, 8/2/99**......... 2,000
-------
Total Demand Notes 38,894
-------
</TABLE>
Continued
-89-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Tax Free Commercial Paper (11.6%):
Alabama (2.6%):
$1,500 Montgomery, 3.00%, 8/6/99............................... $ 1,500
1,000 Port City Medical Clinic Board, Mobile, 3.05%, 8/4/99... 1,000
-------
2,500
-------
Florida (4.8%):
1,000 Jacksonville, 3.25%, 10/22/99........................... 1,000
1,500 Jacksonville, PCR, 3.35%, 10/18/99...................... 1,500
1,200 Sarasota County, Public Hospital Revenue, 3.20%, 9/7/99. 1,200
1,000 St. Lucie County, PCR, 3.05%, 8/5/99.................... 1,000
-------
4,700
-------
Mississippi (2.1%):
1,000 Mississippi Hospital Equiment & Facilities Authority,
3.10%, 9/13/99 ........................................ 1,000
1,000 Mississippi Hospital Equipment Authority Revenue, 3.25%,
10/7/99 ............................................... 1,000
-------
2,000
-------
Nevada (1.1%):
1,000 Clark County, 5.70%, 6/1/00............................. 1,018
-------
Utah (1.0%):
1,000 Intermountain Power Agency, 3.20%, 10/13/99............. 1,000
-------
Total Tax Free Commercial Paper 11,218
-------
Municipal Bonds (36.6%):
Alabama (3.3%):
1,000 Alabama State College Authority, 5.00%, 8/1/99.......... 1,000
1,000 Alabama State, Municpal Electrics Authority Power Supply
Revenue, 6.10%, 9/1/99, LOC: MBIA ..................... 1,003
380 Alabama Water Pollution Control Authority, 5.00%,
8/15/99, LOC: AMBAC ................................... 380
600 University Birmingham Alabama Medical & Educational
Foundation Revenue, 7.00%, 12/1/19, Prerefunded 12/1/99
@ 102 ................................................. 620
250 University of Alabama Revenue, 4.15%, 10/1/99........... 250
-------
3,253
-------
California (1.6%):
1,500 Los Angeles County, Tax & Revenue, 4.00%, 6/30/00....... 1,509
-------
Colorado (1.0%):
1,000 El Paso County, School District, 0.00%, 12/1/99, LOC:
MBIA .................................................. 989
-------
Florida (1.3%):
250 Homestead, Special Insurance Assessment Revenue, 4.75%,
9/1/99, LOC: MBIA ..................................... 250
1,000 Tampa, Water & Sewer Revenue, 6.20%, 10/1/99, LOC: Bank
of America ............................................ 1,005
-------
1,255
-------
</TABLE>
Continued
-90-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, continued:
Georgia (3.5%):
$1,000 Clayton County, GO, 4.25%, 8/1/99....................... $ 1,000
1,500 Gwinnett County School District, 3.50%, 12/31/99........ 1,501
1,000 Muscogee County School District, 4.00%, 11/1/99......... 1,003
-------
3,504
-------
Hawaii (1.6%):
1,500 Hawaii State, 4.75%, 11/1/99, LOC: FGIC................. 1,505
-------
Illinois (3.0%):
1,075 Chicago Wastewater Transmission Revenue, 7.20%,
11/15/19, Prerefunded 11/15/99 @ 102, LOC:MBIA ........ 1,109
750 Cook County High School District, 6.50%, 12/1/99, LOC:
FSA.................................................... 758
1,000 Illinois Health Facilities Authority Revenue, 4.00%
8/15/99................................................ 1,000
-------
2,867
-------
Kentucky (1.0%):
1,000 Kentucky Asset/Liability Revenue, 4.25%, 6/28/00........ 1,008
-------
Louisianna (0.5%):
525 Louisiana State Gas & Fuels Tax Revenue, 3.35%,
11/15/99............................................... 525
-------
Maryland (1.0%):
1,000 Montgomery County, GO, 5.80%, 10/1/99................... 1,005
-------
Massachusetts (1.4%):
500 Boston Water & Sewer Common Revenue, 7.10%, 11/01/19,
Prerefunded 11/1/99 @ 102, LOC:
US Government Securities .............................. 516
300 Hingham, MA, 5.50%, 10/15/99............................ 301
500 Massachusetts State Convention Center Authority, 6.00%,
9/1/99 ................................................ 501
-------
1,318
-------
New Hampshire (2.1%):
2,000 New Hampshire State Capital Appreciation, College
Savings Bond Program, 0.00%, 8/1/99 ................... 2,000
-------
New York (0.5%):
450 New York City Transitional Finance Authority Revenue,
4.00%, 8/15/99 ........................................ 450
-------
North Carolina (0.3%):
250 Stokes County, 4.80%, 6/1/00, LOC: FGIC................. 252
-------
Ohio (2.2%):
1,500 Cuyahoga County, 6.70%, 10/1/10, Prerefunded 10/1/99 @
102, LOC: US Government Securities .................... 1,539
625 Ottawa County, 4.25%, 9/1/99, LOC: MBIA................. 625
-------
2,164
-------
</TABLE>
Continued
-91-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, continued:
Oklahoma (1.1%):
$1,100 Oklahoma City, 4.65%, 8/1/99............................ $ 1,100
-------
Pennsylvania (2.8%):
1,000 Lehigh County Purpose Authority Revenue, 8.75%, 11/1/14,
Prerefunded 11/1/99 @ 102,
LOC: US Treasury Obligation ........................... 1,034
1,000 Pennsylvania State Turnpike Commission Turnpike Revenue,
7.63%, 12/1/09, Prerefunded 12/1/99 @ 102 ............. 1,035
600 Philadelphia School District, 4.00%, 6/30/00, LOC:
Mellon Bank ........................................... 603
-------
2,672
-------
Rhode Island (1.0%):
1,000 Rhode Island State Contruction Capital Development Loan,
Series A, 4.25% 9/1/99, LOC: FGIC ..................... 1,001
-------
South Carolina (0.7%):
665 South Carolina State Capital Improvement, Series B,
5.60%, 3/1/00 ......................................... 673
-------
Tennessee (2.1%):
1,000 Metro Government Nashville & Davidson Tennesse, Public
Improvement, Series A, 4.60%, 11/15/99 ................ 1,004
1,000 Sullivan County, Health Education & Housing, 7.20%,
2/15/00, LOC: MBIA .................................... 1,040
-------
2,044
-------
Texas (1.6%):
500 Dallas Water Works & Sewer Revenue, 5.90%, 10/1/99...... 502
1,000 Irving Independant School District GO, 4.50%, 8/15/99... 1,001
-------
1,503
-------
Virginia (0.4%):
355 James City County, 6.40%, 12/15/99, LOC: FGIC........... 359
-------
Washington (1.0%):
500 King County, GO, 4.70% 10/1/99.......................... 501
435 Richland Electric Revenue, 5.30% 11/1/99................ 437
-------
938
-------
West Virginia (1.6%):
500 West Virginia State Hospital Finance Authority, 7.00%,
8/1/04, Prerefunded 8/1/99 @ 102, LOC: FSA ............ 510
1,000 West Virginia State, State Road, 3.50%, 6/1/00.......... 1,000
-------
1,510
-------
Total Municipal Bonds 35,404
=======
</TABLE>
Continued
-92-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Investment Companies (6.1%):
4,012,917 Federated Tax-Free Fund.................................. $ 4,013
1,890,596 Goldman Sachs Tax-Free Fund.............................. 1,891
-------
Total Investment Companies 5,904
-------
Total (Cost $96,133) (a) $96,133
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $96,724.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate security. Rate presented represents rate in effect at July
31, 1999. Date presented reflects next rate change date.
** Put and demand features exist allowing the fund to require the repurchase
of the instrument within variable time periods including daily, weekly,
monthly, and semiannually.
AMBAC--Insured by AMBAC Indemnity Corp.
FGIC--Insured by Financial Guaranty Insurance Corp.
FNMA--Insured by Federal National Mortgage Assoc.
FSA--Insured by Financial Security Assoc.
GO--General Obligation
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Assoc.
PCR--Pollution Control Revenue
See notes to financial statements.
-93-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements
July 31, 1999
1. Organization:
AmSouth Mutual Funds (the "Trust") was organized on October 1, 1987, and is
registered under the Investment Company Act of 1940, as amended ("the 1940
Act"), as a diversified, open-end investment company established as a
Massachusetts business trust.
The Trust is authorized to issue an unlimited number of shares without par
value. The Trust currently offers shares of the AmSouth Equity Income Fund
("Equity Income"), the AmSouth Equity Fund ("Equity"), the AmSouth Enhanced
Market Fund ("Enhanced Market"), the AmSouth Capital Growth Fund ("Capital
Growth"), the AmSouth Select Equity Fund ("Select Equity"), the AmSouth
Regional Equity Fund ("Regional Equity"), the AmSouth Small Cap Fund ("Small
Cap"), the AmSouth Balanced Fund ("Balanced"), the AmSouth Limited Maturity
Fund ("Limited Maturity"), the AmSouth Government Income Fund ("Government
Income"), the AmSouth Bond Fund ("Bond"), the AmSouth Municipal Bond Fund
("Municipal Bond"), and the AmSouth Florida Tax-Free Fund ("Florida Tax-
Free")(collectively, "the variable net asset funds"), the AmSouth U.S.
Treasury Fund ("U.S. Treasury") the AmSouth Prime Obligations Fund ("Prime
Obligations"), the AmSouth Institutional Prime Obligations Fund
("Institutional Prime Obligations") and the AmSouth Tax-Exempt Fund ("Tax-
Exempt")(collectively, "the money market funds")(collectively, "the Funds"
and individually "a Fund").
The Equity Income Fund seeks above average income and capital appreciation.
The Equity Fund seeks growth of capital. The Enhanced Market Fund seeks long-
term growth of capital. The Capital Growth Fund seeks long-term capital
appreciation and growth of income. The Select Equity Fund seeks long-term
growth of capital. The Regional Equity Fund seeks growth of capital. The
Small Cap Fund seeks capital appreciation. The Balanced Fund seeks to obtain
long-term capital growth and to produce a reasonable amount of current
income. The Limited Maturity Fund seeks current income, consistent with the
preservation of capital. The Government Income Fund, Bond Fund, Municipal
Bond Fund and Florida Tax-Free Fund seeks to produce as high a level of
current interest income exempt from federal income taxes and Florida
intangible taxes (Florida Tax-Free Fund only) as is consistent with the
preservation of capital. The U.S. Treasury Fund, Prime Obligations Fund and
Institutional Prime Obligations Fund seek current income with liquidity and
stability of principal. The Tax-Exempt Fund seeks to produce as high a level
of current interest income exempt from federal income taxes as is consistent
with the preservation of capital and relative stability of principal.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. These policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
Securities Valuation:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost which, combined with
accrued interest, approximates market value. Under the
Continued
-94-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
amortized cost method, discount or premium is amortized on a constant basis
to the maturity of the security.
Investments in common stocks, corporate bonds, municipal bonds, commercial
paper and U.S. Government securities of the variable net asset value funds
are valued on the basis of valuations provided by dealers or an independent
pricing service approved by the Board of Trustees. Investments in
investment companies are valued at their net asset values as reported by
such companies. The differences between cost and market values of such
investments are reflected as unrealized appreciation or depreciation.
Securities Transactions and Related Income:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Realized gains or losses from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
Financial Futures Contracts:
The Enhanced Market Fund and the Select Equity Fund may invest in financial
futures contracts for the purpose of hedging their existing portfolio
securities, or securties that they intend to purchase, against fluctuations
in fair value caused by changes in prevailing market interest rates. Upon
entering into a financial futures contract, a Fund is required to pledge to
the broker an amount of cash and/or other assets equal to a certain
percentage of the contract amount (initial margin deposit). Subsequent
payments, known as "variation margin," are made or received by a Fund each
day, depending on the daily fluctuations in the fair value of the
underlying security. A Fund recognizes a gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may
not achieve the anticipated benefits of the financial futures contracts and
may realize a loss. The use of futures transactions involves the risk of
imperfect correlation in movements in the price of futures contracts,
interest rates, and the underlying hedged assets.
Repurchase Agreements:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation and from registered broker/dealers
which AmSouth Bank ("AmSouth"), deems creditworthy under guidelines
approved by the Board of Trustees, subject to the seller's agreement to
repurchase such securities at a mutually agreed-upon date and price. The
repurchase price generally equals the price paid by the Funds plus interest
negotiated on the basis of current short-term rates, which may be more or
less than the rate on the underlying portfolio securities. The seller,
under a repurchase agreement, is required to maintain the value of
collateral held pursuant to the agreement at not less than the repurchase
price (including accrued interest). Securities subject to repurchase
agreements are held by the Funds' custodian or another qualified custodian
or in the Federal Reserve/Treasury book-entry system.
Continued
-95-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
Dividends to Shareholders:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized gains, if any, are declared and distributed at
least annually.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net assets
based on their federal tax-basis treatment; temporary differences do not
require reclassification. Dividends and distributions to shareholders which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in
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 31,1999, the following reclassifications have been made to
increase (decrease) such amounts with offsetting adjustments made to
capital (amounts in thousands):
<TABLE>
<CAPTION>
Undistributed
Undistributed Net Realized
Net Investment Gains on
Income Investments
-------------- -------------
<S> <C> <C>
Capital Growth Fund............................. $149 $(149)
Select Equity Fund.............................. 1 (1)
Small Cap Fund.................................. 99 --
Balanced Fund................................... 87 (87)
Limited Maturity Fund........................... 212 (212)
Government Income Fund.......................... (15) 24
Bond Fund....................................... 445 (445)
Municipal Bond Fund............................. 33 (33)
Institutional Prime Obligations Fund............ 5 --
</TABLE>
Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially
all, federal income taxes.
Other:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Trust are prorated to the
Funds on the basis of relative net assets. Fees paid under a Fund's
shareholder servicing or distribution plans are borne by the specific class
of shares to which they apply.
Continued
-96-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
Unamortized Organizational Costs:
Costs incurred by the Equity Income, the Capital Growth and the Small Cap
Funds in connection with their organization and registration of shares have
been deferred and are amortized using the straight-line method over a
period of two years from the commencement of the public offering of shares
of the Fund. As of July 31, 1999 the Small Cap Fund had remaining
unamortized costs of $3,744.
3.Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 1999 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Purchases Sales
--------- -------
<S> <C> <C>
Equity Income Fund........................................ $53,416 $60,382
Equity Fund............................................... 174,713 268,994
Enhanced Market Fund (a).................................. 34,546 6,824
Capital Growth Fund....................................... 38,892 20,058
Select Equity Fund (a).................................... 21,993 1,777
Regional Equity Fund...................................... 15,892 49,539
Small Cap Fund............................................ 36,636 21,062
Balanced Fund............................................. 84,942 119,423
Limited Maturity Fund..................................... 46,173 42,786
Government Income Fund.................................... 2,491 4,521
Bond Fund................................................. 115,567 63,340
Municipal Bond Fund....................................... 72,451 65,956
Florida Tax Free Fund..................................... 24,830 23,460
</TABLE>
--------
(a) For the period from September 1, 1998 (commencement of operations)
through July 31, 1999.
4.Capital Share Transactions:
The Trust has issued three classes of Fund shares in each of the Equity
Income Fund, the Equity Fund, the Enhanced Market Fund, the Capital Growth
Fund, the Select Equity Fund, the Regional Equity Fund, the Small Cap Fund,
the Balanced Fund, the Limited Maturity Fund, the Bond Fund, the Municipal
Bond Fund, the Florida Tax Free Fund, and the Prime Obligations Fund: Classic
Shares, Premier Shares, and B Shares. The Trust has issued two classes of
Fund shares in each of the Government Income Fund, the U.S. Treasury Fund,
and the Tax-Exempt Fund: Classic Shares and Premier Shares. The Trust has
issued three classes of fund shares in the Institutional Prime Obligations
Fund: Class I, Class II and Class III. Each class of shares in a Fund has
identical rights and privileges except with respect to fees paid under
shareholder servicing or distribution plans, expenses allocable exclusively
to each class of shares, voting rights on matters affecting a single class of
shares, and the exchange privilege of each class of shares.
Transactions in capital shares for the Funds for the year ended July 31, 1999
and July 31,1998, respectively, were as follows (amounts in thousands):
Continued
-97-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
<TABLE>
<CAPTION>
Equity Enhanced Capital
Income Equity Market Growth
Fund Fund Fund Fund
----------------- -------------------- -------- ----------------
Period
Year Year Ended
Year Ended Year Year Period Ended July
Ended July Ended Ended Ended July 31,
July 31, 31, July 31, July 31, July 31, 31, 1998
1999 1998 1999 1998 1999 (b) 1999 (a)
-------- ------- --------- --------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued................ $ 1,858 $12,824 $ 57,426 $ 35,457 $19,464 $ 7,168 $11,600
Dividends reinvested... 790 1,113 6,662 3,628 103 65 --
Cost of shares
redeemed.............. (10,017) (5,099) (68,598) (25,227) (8,488) (4,647) (695)
-------- ------- --------- --------- ------- ------- -------
Change in net assets
from Classic Share
transactions.......... $ (7,369) $ 8,838 $ (4,510) $ 13,858 $11,079 $ 2,586 $10,905
======== ======= ========= ========= ======= ======= =======
Premier Shares:
Proceeds from shares
issued................ $ 6,156 $ 4,442 (c) $ 136,777 $ 147,122 (c) $14,504 (e) $16,038 $ 457 (c)
Dividends reinvested... 135 155 (c) 17,681 11,396 (c) 32 (e) 4 -- (c)
Cost of shares
redeemed.............. (4,389) (1,253)(c) (173,589) (178,749)(c) (749)(e) (2,206) (25)(c)
-------- ------- --------- --------- ------- ------- -------
Change in net assets
from Premier Share
transactions.......... $ 1,902 $ 3,344 $ (19,131) $ (20,231) $13,787 $13,836 $ 432
======== ======= ========= ========= ======= ======= =======
Class B Shares:
Proceeds from shares
issued................ $ 1,204 $ 8,243 (d) $ 4,945 $ 8,035 (d) $ 6,257 (f) $ 3,933 $ 3,449 (d)
Dividends reinvested... 230 108 (d) 944 101 (d) 5 (f) 31 -- (d)
Cost of shares
redeemed.............. (1,990) (508)(d) (1,866) (328)(d) (343)(f) (839) (213)(d)
-------- ------- --------- --------- ------- ------- -------
Change in net assets
from Class B Share
transactions.......... $ (556) $ 7,843 $ 4,023 $ 7,808 $ 5,919 $ 3,125 $ 3,236
======== ======= ========= ========= ======= ======= =======
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 153 1,071 2,355 1,497 1,655 538 1,106
Reinvested............. 67 96 296 159 8 5 --
Redeemed............... (821) (418) (2,824) (1,075) (627) (380) (66)
-------- ------- --------- --------- ------- ------- -------
Change in Classic
Shares................ (601) 749 (173) 581 1,036 163 1,040
======== ======= ========= ========= ======= ======= =======
Premier Shares:
Issued................. 501 366 (c) 5,779 6,192 (c) 1,081 (e) 1,196 41 (c)
Reinvested............. 11 13 (c) 787 501 (c) 2 (e) -- -- (c)
Redeemed............... (360) (104)(c) (7,105) (7,487)(c) (53)(e) (159) (2)(c)
-------- ------- --------- --------- ------- ------- -------
Change in Premier
Shares................ 152 275 (539) (794) 1,030 1,037 39
======== ======= ========= ========= ======= ======= =======
Class B Shares:
Issued................. 101 684 (d) 205 332 (d) 468 (f) 299 320 (d)
Reinvested............. 20 9 (d) 42 4 (d) -- (f) 3 -- (d)
Redeemed............... (166) (41)(d) (77) (13)(d) (25)(f) (64) (19)(d)
-------- ------- --------- --------- ------- ------- -------
Change in Class B
Shares................ (45) 652 170 323 443 238 301
======== ======= ========= ========= ======= ======= =======
</TABLE>
- --------
(a) For the period from August 3, 1997 (commencement of operations) through
July 31, 1998.
(b) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
(c) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(d) For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
(e) For the period from December 11, 1998 (commencement of operations) through
July 31, 1999.
(f) For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
Continued
-98-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
<TABLE>
<CAPTION>
Select Equity Regional Equity Small Cap Balanced
Fund Fund Fund Fund
------------- ------------------ ------------------ ------------------
Period Year Year Year Period Year Year
Ended Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31, July 31,
1999 (b) 1999 1998 1999 1998 (a) 1999 1998
------------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued................ $14,740 $ 795 $ 6,724 $ 657 $1,559 (e) $ 3,921 $ 8,568
Dividends reinvested... 67 2,115 1,663 -- -- (e) 4,523 5,169
Cost of shares
redeemed.............. (6,553) (18,502) (11,554) (835) (47)(e) (11,411) (21,937)
------- -------- -------- ------- ------ -------- --------
Change in net assets
from Classic Share
transactions.......... $ 8,254 $(15,592) $ (3,167) $ (178) $1,512 $ (2,967) $ (8,200)
======= ======== ======== ======= ====== ======== ========
Premier Shares:
Proceeds from shares
issued................ $11,128 (g) $ 9,008 $ 22,574 (c) $17,146 $5,609 $ 57,092 $ 82,900 (c)
Dividends reinvested... 25 (g) 1,509 1,325 (c) -- -- 18,818 17,248 (c)
Cost of shares
redeemed.............. (708)(g) (30,812) (27,608)(c) (1,058) (72) (82,279) (88,638)(c)
------- -------- -------- ------- ------ -------- --------
Change in net assets
from Premier Share
transactions.......... $10,445 $(20,295) $ (3,709) $16,088 $5,537 $ (6,369) $ 11,510
======= ======== ======== ======= ====== ======== ========
Class B Shares:
Proceeds from shares
issued................ $ 2,006 (h) $ 178 $ 2,405 (d) $ 474 $ 967 $ 5,756 $ 5,405 (f)
Dividends reinvested... 2 (h) 110 27 (d) -- -- 680 105 (f)
Cost of shares
redeemed.............. (63)(h) (998) (247)(d) (333) (22) (1,533) (180)(f)
------- -------- -------- ------- ------ -------- --------
Change in net assets
from Class B Share
transactions.......... $ 1,945 $ (710) $ 2,185 $ 141 $ 945 $ 4,903 $ 5,330
======= ======== ======== ======= ====== ======== ========
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 1,391 33 231 81 155 (e) 261 567
Reinvested............. 6 90 58 -- -- (e) 314 351
Redeemed............... (534) (781) (397) (103) (5)(e) (763) (1,453)
------- -------- -------- ------- ------ -------- --------
Change in Classic
Shares................ 863 (658) (108) (22) 150 (188) (535)
======= ======== ======== ======= ====== ======== ========
Premier Shares:
Issued................. 933 (g) 379 764 (c) 2,159 562 3,865 5,525 (c)
Reinvested............. 2 (g) 64 46 (c) -- -- 1,305 1,182 (c)
Redeemed............... (58)(g) (1,301) (949)(c) (132) (8) (5,514) (5,880)(c)
------- -------- -------- ------- ------ -------- --------
Change in Premier
Shares................ 877 (858) (139) 2,027 554 (344) 827
======= ======== ======== ======= ====== ======== ========
Class B Shares:
Issued................. 168 (h) 7 81 (d) 60 98 385 355 (f)
Reinvested............. -- (h) 5 1 (d) -- -- 47 7 (f)
Redeemed............... (5)(h) (43) (8)(d) (44) (2) (102) (12)(f)
------- -------- -------- ------- ------ -------- --------
Change in Class B
Shares................ 163 (31) 74 16 96 330 350
======= ======== ======== ======= ====== ======== ========
</TABLE>
- --------
(a) For the period from March 2, 1998 (commencement of operations) through
July 31, 1998.
(b) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
(c) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(d) For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
(e) For the period from March 3, 1998 (commencement of operations) through
July 31, 1998.
(f) For the period from September 2, 1997 (commencement of operations) through
July 31, 1998.
(g) For the period from December 3, 1998 (commencement of operations) through
July 31, 1999.
(h) For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
Continued
-99-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
<TABLE>
<CAPTION>
Limited Maturity Government Income Bond
Fund Fund Fund
--------------------- ------------------ ------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
July 31, July 31, July 31, July 31, July 31, July 31,
1999 1998 1999 1998 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued................ $ 2,211 $ 3,654 $ 1,349 $ 916 $ 3,224 $ 9,635
Dividends reinvested... 159 224 240 320 406 1,185
Cost of shares
redeemed.............. (3,166) (10,734) (4,187) (4,434) (3,293) (19,183)
-------- -------- ------- ------- -------- --------
Change in net assets
from Classic Share
transactions.......... $ (796) $ (6,856) $(2,598) $(3,198) $ 337 $ (8,363)
======== ======== ======= ======= ======== ========
Premier Shares:
Proceeds from shares
issued................ $ 27,407 $ 16,530 (a) $ 1,287 $ 2,137 (a) $116,935 $ 89,740 (a)
Dividends reinvested... 534 409 (a) -- -- (a) 5,091 4,132 (a)
Cost of shares
redeemed.............. (23,812) (38,351)(a) (580) (10)(a) (55,310) (65,976)(a)
-------- -------- ------- ------- -------- --------
Change in net assets
from Premier Share
transactions.......... $ 4,129 $(21,412) $ 707 $ 2,127 $ 66,716 $ 27,896
======== ======== ======= ======= ======== ========
Class B Shares:
Proceeds from shares
issued................ $ 1,706 (c) $ -- $ -- $ -- $ 2,727 $ 498 (b)
Dividends reinvested... 16 (c) -- -- -- 64 4 (b)
Cost of shares
redeemed.............. (102)(c) -- -- -- (587) (60)(b)
-------- -------- ------- ------- -------- --------
Change in net assets
from Class B Share
transactions.......... $ 1,620 $ -- $ -- $ -- $ 2,204 $ 442
======== ======== ======= ======= ======== ========
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 211 350 135 93 289 889
Reinvested............. 15 22 24 33 36 109
Redeemed............... (300) (1,033) (423) (450) (296) (1,781)
-------- -------- ------- ------- -------- --------
Change in Classic
Shares................ (74) (661) (264) (324) 29 (783)
======== ======== ======= ======= ======== ========
Premier Shares:
Issued................. 2,612 1,580 (a) 131 217 (a) 10,625 8,147 (a)
Reinvested............. 51 39 (a) -- -- (a) 458 376 (a)
Redeemed............... (2,269) (3,669)(a) (58) (1)(a) (4,972) (5,985)(a)
-------- -------- ------- ------- -------- --------
Change in Premier
Shares................ 394 (2,050) 73 216 6,111 2,538
======== ======== ======= ======= ======== ========
Class B Shares:
Issued................. 164 (c) -- -- -- 245 45 (b)
Reinvested............. 2 (c) -- -- -- 6 -- (b)
Redeemed............... (10)(c) -- -- -- (53) (5)(b)
-------- -------- ------- ------- -------- --------
Change in Class B
Shares................ 156 -- -- -- 198 40
======== ======== ======= ======= ======== ========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 16, 1997 (commencement of operations)
through July 31, 1998.
(c) For the period from January 21, 1999 (commencement of operations) through
July 31, 1999.
Continued
-100-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
<TABLE>
<CAPTION>
Municipal Bond Fund Florida Tax-Free Fund
------------------------- --------------------------
Year Year Year Year
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
1999 1998 1999 1998
--------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued................ $ 1,032 $ 9,434 $ 6,120 $ 6,245
Dividends reinvested... 76 52 425 218
Cost of shares
redeemed.............. (1,049) (5,477) (2,685) (5,154)
--------- ---------- ---------- ----------
Change in net assets
from Classic Share
transactions.......... $ 59 $ 4,009 $ 3,860 $ 1,309
========= ========== ========== ==========
Premier Shares:
Proceeds from shares
issued................ $ 51,374 $ 45,269 (a) $ 19,040 $ 18,711 (a)
Dividends reinvested... 189 48 (a) 32 -- (a)
Cost of shares
redeemed.............. (48,186) (57,585)(a) (9,350) (9,399)(a)
--------- ---------- ---------- ----------
Change in net assets
from Premier Share
transactions.......... $ 3,377 $ (12,268) $ 9,722 $ 9,312
========= ========== ========== ==========
Class B Shares:
Proceeds from shares
issued................ $ 27 (c) $ -- $ 577 (b) $ --
Dividends reinvested... -- (c) -- 1 (b) --
Cost of shares
redeemed.............. (11)(c) -- -- (b) --
--------- ---------- ---------- ----------
Change in net assets
from Class B Share
transactions.......... $ 16 $ -- $ 578 $ --
========= ========== ========== ==========
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 102 934 580 596
Reinvested............. 8 5 40 21
Redeemed............... (103) (542) (255) (493)
--------- ---------- ---------- ----------
Change in Classic
Shares................ 7 397 365 124
========= ========== ========== ==========
Premier Shares:
Issued................. 5,066 4,457 (a) 1,811 1,787 (a)
Reinvested............. 19 5 (a) 3 -- (a)
Redeemed............... (4,732) (5,668)(a) (891) (899)(a)
--------- ---------- ---------- ----------
Change in Premier
Shares................ 353 (1,206) 923 888
========= ========== ========== ==========
Class B Shares:
Issued................. 3 (c) -- 56 (b) --
Reinvested............. -- (c) -- -- (b) --
Redeemed............... (1)(c) -- -- (b) --
--------- ---------- ---------- ----------
Change in Class B
Shares................ 2 -- 56 --
========= ========== ========== ==========
</TABLE>
- --------
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from March 16, 1999 (commencement of operations) through
July 31, 1999.
(c) For the period from February 3, 1999 (commencement of operations) through
July 31, 1999.
Continued
-101-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
<TABLE>
<CAPTION>
U.S. Treasury Fund Prime Obligations Fund
-------------------- ------------------------
Year Year Year Year
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
1999 1998 1999 1998
--------- --------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued.................... $ 13,408 $ 13,952 $ 282,648 $ 214,118
Dividends reinvested....... 270 354 5,884 5,951
Cost of shares redeemed.... (17,357) (16,122) (269,414) (214,135)
--------- --------- ----------- -----------
Change in net assets from
Classic Share
transactions.............. $ (3,679) $ (1,816) $ 19,118 $ 5,934
========= ========= =========== ===========
Premier Shares:
Proceeds from shares
issued.................... $ 753,782 $ 955,935 $ 1,556,708 $ 1,339,647
Dividends reinvested....... 639 383 1,817 1,859
Cost of shares redeemed.... (785,630) (913,630) (1,501,602) (1,278,499)
--------- --------- ----------- -----------
Change in net assets from
Premier Share
transactions.............. $ (31,209) $ 42,688 $ 56,923 $ 63,007
========= ========= =========== ===========
Class B Shares:
Proceeds from shares
issued.................... $ -- $ -- $ 463 $ 1 (a)
Dividends reinvested....... -- -- 4 -- (a)
Cost of shares redeemed.... -- -- (244) -- (a)
--------- --------- ----------- -----------
Change in net assets from
Class B Share
transactions.............. $ -- $ -- $ 223 $ 1
========= ========= =========== ===========
SHARE TRANSACTIONS:
Classic Shares:
Issued..................... 13,408 13,952 282,648 214,118
Reinvested................. 270 354 5,884 5,951
Redeemed................... (17,357) (16,122) (269,414) (214,135)
--------- --------- ----------- -----------
Change in Classic Shares... (3,679) (1,816) 19,118 5,934
========= ========= =========== ===========
Premier Shares:
Issued..................... 753,782 955,935 1,556,708 1,339,647
Reinvested................. 639 383 1,817 1,859
Redeemed................... (785,630) (913,630) (1,501,602) (1,278,499)
--------- --------- ----------- -----------
Change in Premier Shares... (31,209) 42,688 56,923 63,007
========= ========= =========== ===========
Class B Shares:
Issued..................... -- -- 463 1 (a)
Reinvested................. -- -- 4 -- (a)
Redeemed................... -- -- (244) -- (a)
--------- --------- ----------- -----------
Change in Class B Shares... -- -- 223 1
========= ========= =========== ===========
</TABLE>
- --------
(a) For the period from June 15, 1998 (commencement of operations) through July
31, 1998.
Continued
-102-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
<TABLE>
<CAPTION>
Institutional Prime
Obligations Fund Tax-Exempt Fund
------------------- ------------------
Period Year Year
Ended Ended Ended
July 31, July 31, July 31,
1999 (a) 1999 1998
------------------- -------- --------
<S> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares (b):
Proceeds from shares issued........... $387,727 $ 55,604 $ 56,588
Dividends reinvested.................. -- 686 691
Cost of shares redeemed............... (318,269) (62,103) (56,548)
-------- -------- --------
Change in net assets from Classic
Share transactions................... $ 69,458 $ (5,813) $ 731
======== ======== ========
Premier Shares (c):
Proceeds from shares issued........... $ 56,608 (e) $181,011 $169,123
Dividends reinvested.................. -- (e) 5 7
Cost of shares redeemed............... (30,608)(e) (169,221) (162,475)
-------- -------- --------
Change in net assets from Premier
Share transactions................... $ 26,000 $ 11,795 $ 6,655
======== ======== ========
Class B Shares (d):
Proceeds from shares issued........... $ 24,183 (f) $ -- $ --
Dividends reinvested.................. -- (f) -- --
Cost of shares redeemed............... (10,608)(f) -- --
-------- -------- --------
Change in net assets from Class B
Share transactions................... $ 13,575 $ -- $ --
======== ======== ========
SHARE TRANSACTIONS:
Classic Shares (b):
Issued................................ 387,727 55,604 56,588
Reinvested............................ -- 686 691
Redeemed.............................. (318,269) (62,103) (56,548)
-------- -------- --------
Change in Classic Shares.............. 69,458 (5,813) 731
======== ======== ========
Premier Shares (c):
Issued................................ 56,608 (e) 181,011 169,123
Reinvested............................ -- (e) 5 7
Redeemed.............................. (30,608)(e) (169,221) (162,475)
-------- -------- --------
Change in Premier Shares.............. 26,000 11,795 6,655
======== ======== ========
Class B Shares (d):
Issued................................ 24,183 (f) -- --
Reinvested............................ -- (f) -- --
Redeemed.............................. (10,608)(f) -- --
-------- -------- --------
Change in Class B Shares.............. 13,575 -- --
======== ======== ========
</TABLE>
- --------
(a) For the period from September 15, 1998 (commencement of operations) through
July 31, 1999.
(b) Class I shares for the Institutional Prime Obligations Fund.
(c) Class II shares for the Institutional Prime Obligations Fund.
(d) Class III shares for the Institutional Prime Obligations Fund.
(e) For the period from February 19, 1999 (commencement of operations) through
July 31, 1999.
(f) For the period from February 22, 1999 (commencement of operations) through
July 31, 1999.
Continued
-103-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
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 daily net assets of each of
the Funds. On 8/9/99 AmSouth purchased a Guaranteed Life Insurance Contract
issued by General American Life Insurance Co. at par, plus accrued interest,
from the Prime Obligation Fund. AmSouth also serves as Custodian for the
Trust. Pursuant to the Custodian Agreement with the Trust, AmSouth receives
compensation from each Fund for such services in an amount equal to an asset-
based fee plus fixed fees charged for certain portfolio transactions and out-
of-pocket expenses.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"),
and BISYS Fund Services, Inc. ("BISYS Inc.") are subsidiaries of the BISYS
Group, Inc.
ASO Services Company ("Administrator"), a wholly owned subsidiary of the
BISYS Group, Inc., serves the Funds as administrator. Under the terms of the
administration agreement, The Administrator's fees are computed as 0.20% of
the average daily net assets of each of the Funds. AmSouth and BISYS, with
whom certain officers and trustees of the Trust are affiliated, serve as the
Funds' sub-administrator. Such officers and trustees are paid no fees
directly by the Funds for serving as officers and trustees of the Trust.
Pursuant to its current agreement with the Administrator, AmSouth has assumed
certain of the Administrator's duties, for which AmSouth receives a fee, paid
by the Administrator, calculated at an annual rate of 0.10% of each Fund's
daily average net assets.
Pursuant to its agreement with the Administrator, BISYS, as sub-
administrator, is entitled to compensation as mutually agreed upon from time
to time by it and the Administrator. BISYS also serves as the Funds'
distributor and is entitled to receive commissions on sales of shares of the
variable net asset value funds. For the period ended July 31, 1999, BISYS
received $1,668,740 from commissions earned on sales of shares of the Funds'
variable net asset value funds of which the $1,664,928 was reallowed to
AmSouth Investment Services, a related 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. Under the terms of the
Transfer Agent Agreement, BISYS Ohio receives a fee based on a percentage of
each funds average daily net assets, plus out of pocket charges.
BISYS Inc. serves the Funds as Mutual Fund Accountant. Under the terms of the
Fund Accounting Agreement, BISYS Inc. receives a fee based on a percentage of
average daily net assets, plus out of pocket charges.
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.
Continued
-104-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
Class B Shares, Class II Shares and Class III 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, Class II Shares and Class III 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
the average daily net assets of the Class B Shares of each of the Funds
(0.25% for Class II Shares and 0.50% for Class III Shares), 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 year ended July 31, 1999 (amounts in thousands):
<TABLE>
<CAPTION>
Investment Advisory Fees
---------------------------
Annual Fee as Administration Shareholder Fund Transfer Other
a Percentage of Fees Fees Servicing Fees Accounting Fees Agent Fees Expenses
Average Daily Voluntarily Voluntarily Voluntarily Voluntarily Voluntarily Voluntarily
Net Assets Reduced Reduced Reduced Reduced Reduced Reimbursed
--------------- ----------- -------------- -------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity Income Fund..... 0.80% $-- $-- $-- $38 $30 $--
Equity Fund............ 0.80% -- -- -- 20 30 --
Enhanced Market
Fund (a).............. 0.45% -- 35 9 38 25 --
Capital Growth Fund.... 0.80% -- 52 -- 50 30 --
Select Equity Fund (a). 0.80% -- 33 10 38 25 --
Regional Equity Fund... 0.80% -- -- -- 20 30 --
Small Cap Fund......... 1.20% -- 21 -- 50 30 4
Balanced Fund.......... 0.80% -- -- -- 20 30 --
Limited Maturity Fund.. 0.65% 170 90 5 15 25 --
Government Income Fund. 0.65% 33 10 10 37 20 --
Bond Fund.............. 0.65% 535 285 11 20 30 --
Municipal Bond Fund.... 0.65% 816 261 4 15 25 --
Florida Tax-Free Fund.. 0.65% 248 71 15 32 24 --
U.S. Treasury Fund..... 0.40% -- -- 10 10 20 --
Prime Obligations Fund. 0.40% -- -- 202 20 30 --
Institutional Prime
Obl. Fund (b)......... 0.20% 129 69 -- 9 18 --
Tax-Exempt Fund........ 0.40% 192 -- 38 21 20 --
</TABLE>
- --------
(a) For the period from September 1, 1998 (commencement of operations) through
July 31, 1999.
(b) For the period from September 15, 1998 (commencement of operations)
through July 31, 1999.
Continued
-105-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
6. Eligible Distributions: (Unaudited)
The AmSouth Mutual Funds designate the following eligible distributions for
the dividends received deductions for corporations for the year ended July
31, 1999:
<TABLE>
<CAPTION>
Percentage
----------
<S> <C>
Equity Income Fund................................................ 62.37%
Equity Fund....................................................... 100.00%
Enhanced Market Fund.............................................. 13.18%
Capital Growth Fund............................................... 40.40%
Select Equity Fund................................................ 36.03%
Regional Equity Fund.............................................. 100.00%
Balanced Fund..................................................... 31.97%
</TABLE>
7. Exempt-Interest Income Designations (Unaudited):
The AmSouth Mutual Funds designate the following exempt-interest dividends
for the taxable year ended July 31, 1999 (amounts in thousands):
<TABLE>
<CAPTION>
Tax-Exempt
Distribution
------------
<S> <C>
Municipal Bond Fund............................................. $13,985
Florida Tax-Free Fund........................................... 3,001
Tax-Exempt Fund................................................. 2,613
</TABLE>
8. Federal Income Tax Information (Unaudited):
The accompanying table details distributions from long-term capital gains for
the following funds for the year ended July 31, 1999 (amounts in thousands):
<TABLE>
<CAPTION>
20% Capital
Gains
-----------
<S> <C>
Equity Income Fund............................................... $ 607
Equity Fund...................................................... 97,302
Enhanced Market Fund............................................. 5
Regional Equity Fund............................................. 7,145
Balanced Fund.................................................... 28,585
Bond Fund........................................................ 3,908
Municipal Bond Fund.............................................. 3,301
Florida Tax-Free Fund............................................ 366
</TABLE>
Continued
-106-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
At July 31, 1999, the following Funds have capital loss carryforwards which
are available to offset future capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
Amount Expires
------ -------
<S> <C> <C>
Small Cap Fund................................................ $1,924 2007
Limited Maturity Fund......................................... 65 2002
730 2003
4 2004
304 2005
Government Income Fund........................................ 209 2004
127 2005
Prime Obligations Fund........................................ 6 2000
Tax-Exempt Fund............................................... 2 2006
</TABLE>
Under current tax law, capital losses realized after October 31, within the
Fund's fiscal year may be deferred and treated as occurring on the first day
of the following fiscal year. The following deferred losses will be treated
as arising on the first day of the next fiscal year (amounts in thousands):
<TABLE>
<S> <C>
Small Cap Fund.......................................................... $827
</TABLE>
-107-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Equity Income Fund
------------------------------------------------------------------------------------
Year Ended Year Ended March 20, 1997 to
July 31, 1999 July 31, 1998 July 31, 1997 (g)
-------------------------- -------------------------------------- -----------------
Classic Premier B Shares Classic (a) Premier (a) B Shares (b)
------- ------- -------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 11.89 $ 11.89 $11.86 $ 11.72 $11.35 $11.60 $ 10.00
------- ------- ------ ------- ------ ------ -------
Investment Activities
Net investment income
(loss).................. 0.17 0.19 0.07 0.24 0.25 0.15 0.07
Net realized and
unrealized gains
(losses) from
investments............. 1.46 1.47 1.47 0.59 0.95 0.68 1.71
------- ------- ------ ------- ------ ------ -------
Total from investment
activities.............. 1.63 1.66 1.54 0.83 1.20 0.83 1.78
------- ------- ------ ------- ------ ------ -------
Distributions
Net investment income.... (0.16) (0.19) (0.09) (0.25) (0.25) (0.16) (0.06)
Net realized gains from
investment transactions. (0.26) (0.26) (0.26) (0.41) (0.41) (0.41) --
------- ------- ------ ------- ------ ------ -------
Total Distributions...... (0.42) (0.45) (0.35) (0.66) (0.66) (0.57) (0.06)
------- ------- ------ ------- ------ ------ -------
Net Asset Value, End of
Period................... $ 13.10 $ 13.10 $13.05 $ 11.89 $11.89 $11.86 $ 11.72
======= ======= ====== ======= ====== ====== =======
Total Return (excludes
sales charge).............. 14.17% 14.43% 13.34% 7.29% 7.54%(c) 7.26%(d) 17.81%(d)
Ratios/Supplemental Data:
Net Assets at end of
period (000)............ $21,526 $10,908 $7,919 $26,686 $8,087 $7,733 $22,273
Ratio of expenses to
average net assets...... 1.41% 1.16% 2.16% 1.42% 1.19%(e) 2.19%(e) 1.30%(e)
Ratio of net investment
income to average net
assets.................. 1.37% 1.59% 0.61% 2.03% 2.34%(e) 1.29%(e) 2.13%(e)
Ratio of expenses to
average net assets*..... 1.58% 1.33% 2.33% 1.57% 1.35%(e) 2.35%(e) 1.51%(e)
Portfolio turnover (f).... 133.74% 133.74% 133.74% 83.26% 83.26% 83.26% 27.38%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencements of operations)
through July 31, 1998,
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 10.82%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Period from commencement of operations.
See notes to financial statements.
-108-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Equity Fund
--------------------------------------------------------------------
Year Ended Year Ended
July 31, 1999 July 31, 1998
--------------------------- ---------------------------------------
Classic Premier B Shares Classic (a) Premier (a) B Shares (b)
------- -------- -------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 24.60 $ 24.57 $ 24.55 $ 23.35 $ 22.51 $23.15
------- -------- ------- ------- -------- ------
Investment Activities
Net investment income
(loss)................ 0.20 0.26 0.02 0.21 0.28 0.09
Net realized and
unrealized gains
(losses) from
investments........... 3.11 3.16 3.10 2.54 3.31 2.68
------- -------- ------- ------- -------- ------
Total from Investment
Activities............ 3.31 3.42 3.12 2.75 3.59 2.77
------- -------- ------- ------- -------- ------
Distributions
Net investment income.. (0.19) (0.25) (0.06) (0.25) (0.28) (0.12)
Net realized gains from
investment
transactions.......... (2.47) (2.47) (2.47) (1.25) (1.25) (1.25)
------- -------- ------- ------- -------- ------
Total Distributions.... (2.66) (2.72) (2.53) (1.50) (1.53) (1.37)
------- -------- ------- ------- -------- ------
Net Asset Value, End of
Period................. $ 25.25 $ 25.27 $ 25.14 $ 24.60 $ 24.57 $24.55
======= ======== ======= ======= ======== ======
Total Return (excludes
sales charge).......... 14.92% 15.43% 14.03% 12.34% 12.46%(c) 12.49%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $70,740 $960,660 $12,394 $73,165 $947,575 $7,929
Ratio of expenses to
average net assets.... 1.33% 1.08% 2.08% 1.19% 1.09%(e) 2.11%(e)
Ratio of net investment
income to average net
assets................ 0.82% 1.07% 0.05% 0.89% 1.26%(e) 0.26%(e)
Ratio of expenses to
average net assets*... 1.34% 1.09% 2.09% 1.19% 1.10%(e) 2.11%(e)
Portfolio turnover (f).. 17.65% 17.65% 17.65% 16.95% 16.95% 16.95%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 16.52%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-109-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Equity Fund
----------------------------
Year Ended July 31,
----------------------------
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 17.62 $ 16.75 $ 14.82
-------- -------- --------
Investment Activities
Net investment income (loss)................ 0.30 0.33 0.33
Net realized and unrealized gains (losses)
from investments........................... 6.77 1.48 2.39
-------- -------- --------
Total from Investment Activities............ 7.07 1.81 2.72
-------- -------- --------
Distributions
Net investment income....................... (0.30) (0.33) (0.32)
Net realized gains from investment
transactions............................... (1.04) (0.61) (0.47)
-------- -------- --------
Total Distributions......................... (1.34) (0.94) (0.79)
-------- -------- --------
Net Asset Value, End of Period............... $ 23.35 $ 17.62 $ 16.75
======== ======== ========
Total Return (excludes sales charge)......... 42.35% 11.09% 19.27%
Ratios/Supplemental Data:
Net Assets at end of period (000)........... $974,985 $374,622 $275,757
Ratio of expenses to average net assets..... 1.06% 1.02% 1.03%
Ratio of net investment income to average
net assets................................. 1.52% 1.86% 2.17%
Ratio of expenses to average net assets*.... 1.10% 1.11% 1.11%
Portfolio turnover........................... 24.47% 19.11% 19.46%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-110-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Enhanced Market
--------------------------------------
September 1, 1998
to July 31,
1999 (a)
--------------------------------------
Classic Premier (b) B Shares (c)
------- ----------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.. $ 10.00 $ 12.18 $10.30
------- ------- ------
Investment Activities
Net investment income (loss)......... 0.09 0.07 0.03
Net realized and unrealized gains
(losses) from investments........... 3.89 1.71 3.55
------- ------- ------
Total from Investment Activities..... 3.98 1.78 3.58
------- ------- ------
Distributions
Net investment income................ (0.09) (0.07) (0.03)
Net realized gains from investment
transactions........................ (0.03) (0.03) (0.03)
------- ------- ------
Total Distributions.................. (0.12) (0.10) (0.06)
------- ------- ------
Net Asset Value, End of Period........ $ 13.86 $ 13.86 $13.82
======= ======= ======
Total Return (excludes sales charge).. 39.93%(d) 14.71%(d) 34.85%(d)
Ratios/Supplemental Data:
Net Assets at end of period (000).... $14,365 $14,273 $6,132
Ratio of expenses to average net
assets.............................. 0.88%(e) 0.74%(e) 1.73%(e)
Ratio of net investment income to
average net assets.................. 0.79%(e) 0.90%(e) (0.12)%(e)
Ratio of expenses to average net
assets*............................. 1.52%(e) 1.29%(e) 2.28%(e)
Portfolio turnover (f)................ 36.03% 36.03% 36.03%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) For the period from December 11, 1998 (commencement of operations) through
July 31, 1999.
(c) For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
(d) Not annualized.
(e) Annualized.
(f) 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.
-111-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Capital Growth Fund
-----------------------------------------------------------------------
Year Ended August 3, 1997
July 31, to July 31,
1999 1998 (g)
---------------------------- -----------------------------------------
Classic Premier B Shares Classic (a) Premier (a) B Shares (b)
------- ------- -------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 11.62 $ 11.65 $11.54 $10.00 $ 9.55 $ 9.82
------- ------- ------ ------ ------ ------
Investment Activities
Net investment income
(loss)................ (0.06) (0.02) (0.12) (0.03) -- (0.06)
Net realized and
unrealized gains
(losses) from
investments........... 2.57 2.57 2.52 1.65 2.10 1.78
------- ------- ------ ------ ------ ------
Total from Investment
Activities............ 2.51 2.55 2.40 1.62 2.10 1.72
------- ------- ------ ------ ------ ------
Distributions
Net investment income.. -- -- -- -- -- --
Net realized gains from
investment
transactions.......... (0.09) (0.09) (0.09) -- -- --
------- ------- ------ ------ ------ ------
Total Distributions.... (0.09) (0.09) (0.09) -- -- --
------- ------- ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 14.04 $ 14.11 $13.85 $11.62 $11.65 $11.54
======= ======= ====== ====== ====== ======
Total Return (excludes
sales charge).......... 21.76% 22.05% 20.96% 16.20%(d) 16.50%(c) 17.52%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $14,040 $18,055 $7,463 $9,720 $2,824 $3,477
Ratio of expenses to
average net assets.... 1.23% 0.96% 1.97% 1.40%(e) 0.99%(e) 2.05%(e)
Ratio of net investment
income to average net
assets................ (0.50)% (0.28)% (1.26)% (0.42)%(e) 0.00%(e) (1.10)%(e)
Ratio of expenses to
average net assets*... 1.74% 1.47% 2.48% 2.37%(e) 2.05%(e) 3.11%(e)
Portfolio turnover (f).. 79.30% 79.30% 79.30% 77.26% 77.26% 77.26%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) through
July 31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 4, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 21.99%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
(g) Period from commencement of operations.
See notes to financial statements.
-112-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Select Equity
--------------------------------------
September 1, 1998
to July 31,
1999 (a)
--------------------------------------
Classic Premier (b) B Shares (c)
------- ----------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.. $ 10.00 $ 11.52 $ 9.98
------- ------- ------
Investment Activities
Net investment income (loss)......... 0.04 0.04 0.02
Net realized and unrealized gains
(losses) from investments........... 1.91 0.38 1.86
------- ------- ------
Total from Investment Activities..... 1.95 0.42 1.88
------- ------- ------
Distributions
Net investment income................ (0.05) (0.03) (0.01)
In excess of net investment income... (0.01) (0.01) (0.01)
Net realized gains from investment
transactions........................ (0.01) (0.01) (0.01)
------- ------- ------
Total Distributions.................. (0.07) (0.05) (0.03)
------- ------- ------
Net Asset Value, End of Period....... $ 11.88 $ 11.89 $11.83
======= ======= ======
Total Return (excludes sales charge).. 19.44%(d) 3.63%(d) 18.83%(d)
Ratios/Supplemental Data:
Net Assets at end of period (000).... $10,258 $10,420 $1,933
Ratio of expenses to average net
assets.............................. 1.13%(e) 0.99%(e) 1.99%(e)
Ratio of net investment income to
average net assets.................. 0.43%(e) 0.65%(e) (0.49)%(e)
Ratio of expenses to average net
assets*............................. 1.81%(e) 1.58%(e) 2.58%(e)
Portfolio turnover (f)................ 9.72% 9.72% 9.72%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) For the period from December 3, 1998 (commencement of operations) through
July 31, 1999.
(c) For the period from September 2, 1998 (commencement of operations) through
July 31, 1999.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-113-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Regional Equity Fund
---------------------------------------------------------------------
Year Ended Year Ended
July 31, July 31,
1999 1998
---------------------------- ---------------------------------------
Classic Premier B Shares Classic (a) Premier (a) B Shares (b)
------- ------- -------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 27.18 $ 27.20 $27.05 $ 28.23 $ 27.95 $28.49
------- ------- ------ ------- ------- ------
Investment Activities
Net investment income
(loss)................ 0.09 0.15 (0.09) 0.05 0.13 (0.05)
Net realized and
unrealized gains
(losses) from
investments........... (2.74) (2.73) (2.73) (0.08) 0.17 (0.42)
------- ------- ------ ------- ------- ------
Total from Investment
Activities............ (2.65) (2.58) (2.82) (0.03) 0.30 (0.47)
------- ------- ------ ------- ------- ------
Distributions
Net investment income.. (0.10) (0.14) (0.02) (0.07) (0.10) (0.03)
In excess of net
investment income..... -- -- -- (0.01) (0.01) -
Net realized gains from
investment
transactions.......... (1.53) (1.53) (1.53) (0.94) (0.94) (0.94)
------- ------- ------ ------- ------- ------
Total Distributions.... (1.63) (1.67) (1.55) (1.02) (1.05) (0.97)
------- ------- ------ ------- ------- ------
Net Asset Value, End of
Period................. $ 22.90 $ 22.95 $22.68 $ 27.18 $ 27.20 $27.05
======= ======= ====== ======= ======= ======
Total Return (excludes
sales charge).......... (9.85)% (9.57)% (10.54)% (0.31)% (0.12)%(c) (1.86)%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $20,911 $60,385 $ 965 $42,700 $94,909 $1,998
Ratio of expenses to
average net assets.... 1.38% 1.13% 2.13% 1.30% 1.12%(e) 2.14%(e)
Ratio of net investment
income to average net
assets................ 0.37% 0.63% (0.37)% 0.14% 0.45%(e) (0.65)%(e)
Ratio of expenses to
average net assets*... 1.42% 1.17% 2.17% 1.32% 1.13%(e) 2.15%(e)
Portfolio turnover (f).. 15.60% 15.60% 15.60% 8.17% 8.17% 8.17%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 3, 1997 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 0.87%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-114-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Regional Equity Fund
--------------------------
Year Ended
July 31,
--------------------------
1997 1996 1995
-------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............... $ 20.95 $ 18.94 $ 16.68
-------- ------- -------
Investment Activities
Net investment income (loss)...................... 0.24 0.26 0.23
Net realized and unrealized gains (losses) from
investments...................................... 7.77 2.20 2.26
-------- ------- -------
Total from Investment Activities.................. 8.01 2.46 2.49
-------- ------- -------
Distributions
Net investment income............................. (0.24) (0.26) (0.23)
Net realized gains from investment transactions... (0.49) (0.19) --
-------- ------- -------
Total Distributions............................... (0.73) (0.45) (0.23)
-------- ------- -------
Net Asset Value, End of Period..................... $ 28.23 $ 20.95 $ 18.94
======== ======= =======
Total Return (excludes sales charge)............... 39.02% 13.10% 15.10%
Ratios/Supplemental Data:
Net Assets at end of period (000)................. $149,838 $93,584 $68,501
Ratio of expenses to average net assets........... 1.06% 1.05% 1.07%
Ratio of net investment income to average net
assets........................................... 0.99% 1.30% 1.35%
Ratio of expenses to average net assets*.......... 1.10% 1.13% 1.15%
Portfolio turnover................................. 10.30% 8.22% 14.25%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-115-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Small Cap Fund
-------------------------------------------------------------------
Year Ended March 2, 1998
July 31, to July 31,
1999 1998 (a)
---------------------------- ------------------------------------
Classic Premier B Shares Classic (b) Premier B Shares
------- ------- -------- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.14 $ 9.15 $ 9.11 $ 9.97 $10.00 $10.00
------- ------- ------- ------ ------ ------
Investment Activities
Net investment income
(loss)................ (0.10) (0.03) (0.14) (0.03) (0.02) (0.04)
Net realized and
unrealized gains
(losses) from
investments........... (0.64) (0.68) (0.66) (0.80) (0.83) (0.85)
------- ------- ------- ------ ------ ------
Total from Investment
Activities............ (0.74) (0.71) (0.80) (0.83) (0.85) (0.89)
------- ------- ------- ------ ------ ------
Net Asset Value, End of
Period................. $ 8.40 $ 8.44 $ 8.31 $ 9.14 $ 9.15 $ 9.11
======= ======= ======= ====== ====== ======
Total Return (excludes
sales charge).......... (8.10)% (7.76)% (8.78)% (8.31)%(c) (8.48)%(c) (8.90)%(c)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $ 1,073 $21,777 $ 929 $1,372 $5,072 $ 871
Ratio of expenses to
average net assets.... 1.66% 1.39% 2.41% 1.78%(d) 1.50 %(d) 2.54%(d)
Ratio of net investment
income to average net
assets................ (1.07)% (0.82)% (1.83)% (0.92)%(d) (0.52)%(d) (1.69)%(d)
Ratio of expenses to
average net assets*... 2.68% 2.38% 3.42% 4.23%(d) 3.94%(d) 4.98%(d)
Portfolio turnover (e).. 208.13% 208.13% 208.13% 70.64% 70.64% 70.64%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) For the period from March 3, 1998 (commencement of operations) through July
31, 1998.
(c) Not annualized.
(d) Annualized.
(e) 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.
-116-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Balanced Fund
--------------------------------------------------------------------
Year Ended Year Ended
July 31, July 31,
1999 1998
--------------------------- ---------------------------------------
Classic Premier B Shares Classic (a) Premier (a) B Shares (b)
------- -------- -------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 15.19 $ 15.18 $ 15.16 $ 15.21 $ 14.77 $14.99
------- -------- ------- ------- -------- ------
Investment Activities
Net investment income
(loss)................ 0.41 0.44 0.29 0.38 0.41 0.28
Net realized and
unrealized gains
(losses) from
investments........... 0.93 0.95 0.95 0.98 1.38 1.15
------- -------- ------- ------- -------- ------
Total from Investment
Activities............ 1.34 1.39 1.24 1.36 1.79 1.43
------- -------- ------- ------- -------- ------
Distributions
Net investment income.. (0.40) (0.44) (0.30) (0.41) (0.41) (0.29)
Net realized gains from
investment
transactions.......... (1.20) (1.20) (1.20) (0.97) (0.97) (0.97)
------- -------- ------- ------- -------- ------
Total Distributions.... (1.60) (1.64) (1.50) (1.38) (1.38) (1.26)
------- -------- ------- ------- -------- ------
Net Asset Value, End of
Period................. $ 14.93 $ 14.93 $ 14.90 $ 15.19 $ 15.18 $15.16
======= ======== ======= ======= ======== ======
Total Return (excludes
sales charge).......... 9.40% 9.74% 8.66% 9.54% 9.73%(c) 10.07%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $43,223 $319,016 $10,131 $46,814 $329,626 $5,309
Ratio of expenses to
average net assets.... 1.34% 1.09% 2.09% 1.24% 1.10%(e) 2.12%(e)
Ratio of net investment
income to average net
assets................ 2.67% 2.93% 1.93% 2.77% 2.95%(e) 1.83%(e)
Ratio of expenses to
average net assets*... 1.35% 1.10% 2.10% 1.24% 1.10%(e) 2.12%(e)
Portfolio turnover (f).. 23.24% 23.24% 23.24% 25.40% 25.40% 25.40%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 2, 1997 (commencement of operations) through
July 31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 12.70%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-117-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Balanced Fund
----------------------------
Year Ended July 31,
----------------------------
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 13.03 $ 12.76 $ 11.81
-------- -------- --------
Investment Activities
Net investment income (loss)................ 0.48 0.47 0.47
Net realized and unrealized gains (losses)
from investments........................... 2.78 0.58 1.24
-------- -------- --------
Total from Investment Activities............ 3.26 1.05 1.71
-------- -------- --------
Distributions
Net investment income....................... (0.50) (0.47) (0.46)
Net realized gains from investment
transactions............................... (0.58) (0.31) (0.30)
-------- -------- --------
Total Distributions......................... (1.08) (0.78) (0.76)
-------- -------- --------
Net Asset Value, End of Period............... $ 15.21 $ 13.03 $ 12.76
======== ======== ========
Total Return (excludes sales charge)......... 26.42% 8.37% 15.27%
Ratios/Supplemental Data:
Net Assets at end of period (000)........... $372,769 $338,425 $295,509
Ratio of expenses to average net assets..... 1.05% 0.98% 0.94%
Ratio of net investment income to average
net assets................................. 3.49% 3.61% 3.91%
Ratio of expenses to average net assets*.... 1.10% 1.11% 1.12%
Portfolio turnover........................... 25.00% 20.47% 16.97%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-118-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Limited Maturity Fund
---------------------------------------------------------
Year Ended Year Ended
July 31, July 31,
1999 1998
------------------------------- -----------------------
Classic Premier B Shares (d) Classic (a) Premier (a)
------- -------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.43 $ 10.43 $10.58 $10.42 $ 10.34
------ -------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.57 0.59 0.27 0.85 0.55
Net realized and
unrealized gains
(losses) from
investments........... (0.15) (0.16) (0.30) (0.25) 0.10
------ -------- ------ ------ --------
Total from Investment
Activities............ 0.42 0.43 (0.03) 0.60 0.65
------ -------- ------ ------ --------
Distributions
Net investment income.. (0.56) (0.57) (0.28) (0.59) (0.56)
------ -------- ------ ------ --------
Total Distributions.... (0.56) (0.57) (0.28) (0.59) (0.56)
------ -------- ------ ------ --------
Net Asset Value, End of
Period................. $10.29 $ 10.29 $10.27 $10.43 $ 10.43
====== ======== ====== ====== ========
Total Return (excludes
sales charge).......... 4.01% 4.14% (0.33)%(c) 5.94% 6.04%(b)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $2,716 $109,554 $1,599 $3,531 $106,953
Ratio of expenses to
average net assets.... 0.81% 0.71% 1.69%(e) 0.74% 0.73%(e)
Ratio of net investment
income to average net
assets................ 5.49% 5.60% 4.61%(e) 5.65% 5.70%(e)
Ratio of expenses to
average net assets*... 1.23% 0.98% 1.96%(e) 0.96% 0.98%(e)
Portfolio turnover (f).. 39.15% 39.15% 39.15% 39.31% 39.31%
</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, were designated either Classic Shares or Premier
Shares.
(b) Represents total return based on activity of Classic Shares for the period
from August 1, 1997 to September 1, 1997 and the activity of Premier
Shares for the period from September 2, 1997 to July 31, 1998. Total
return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 6.37%.
(c) Not annualized.
(d) For the period from January 21, 1999 (commencement of operations) through
July 31, 1999.
(e) Annualized
(f) 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.
-119-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Limited Maturity Fund
--------------------------
Year Ended July 31,
--------------------------
1997 1996 1995
-------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............... $ 10.31 $ 10.41 $ 10.23
-------- ------- -------
Investment Activities
Net investment income (loss)...................... 0.58 0.58 0.58
Net realized and unrealized gains (losses) from
investments...................................... 0.14 (0.10) 0.17
-------- ------- -------
Total from Investment Activities.................. 0.72 0.48 0.75
-------- ------- -------
Distributions
Net investment income............................. (0.61) (0.57) (0.57)
Net realized gains from investment transactions... -- (0.01) --
-------- ------- -------
Total Distributions............................... (0.61) (0.58) (0.57)
-------- ------- -------
Net Asset Value, End of Period..................... $ 10.42 $ 10.31 $ 10.41
======== ======= =======
Total Return (excludes sales charge)............... 7.25% 4.74% 7.65%
Ratios/Supplemental Data:
Net Assets at end of period (000)................. $138,675 $46,005 $59,798
Ratio of expenses to average net assets........... 0.77% 0.76% 0.80%
Ratio of net investment income to average net
assets........................................... 5.65% 5.48% 5.69%
Ratio of expenses to average net assets*.......... 1.02% 0.99% 1.03%
Portfolio turnover................................. 64.89% 29.56% 38.11%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-120-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Government Income Fund
-----------------------------------------
Year Ended Year Ended
July 31, July 31,
1999 1998
---------------- -----------------------
Classic Premier Classic (a) Premier (a)
------- ------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period. $ 9.88 $ 9.87 $ 9.75 $ 9.66
------ ------ ------ ------
Investment Activities
Net investment income (loss)........ 0.54 0.54 0.63 0.59
Net realized and unrealized gains
(losses) from investments.......... (0.28) (0.26) 0.09 0.17
------ ------ ------ ------
Total from Investment Activities.... 0.26 0.28 0.72 0.76
------ ------ ------ ------
Distributions
Net investment income............... (0.52) (0.53) (0.53) (0.49)
In excess of net investment income.. -- -- (0.06) (0.06)
------ ------ ------ ------
Total Distributions................. (0.52) (0.53) (0.59) (0.55)
------ ------ ------ ------
Net Asset Value, End of Period....... $ 9.62 $ 9.62 $ 9.88 $ 9.87
====== ====== ====== ======
Total Return (excludes sales charge). 2.62% 2.72% 7.58% 7.58%(b)
Ratios/Supplemental Data:
Net Assets at end of period (000)... $5,436 $3,150 $8,176 $2,521
Ratio of expenses to average net
assets............................. 0.70% 0.60% 0.71% 0.63%(c)
Ratio of net investment income to
average net assets................. 5.35% 5.44% 5.95% 5.72%(c)
Ratio of expenses to average net
assets*............................ 1.90% 1.65% 1.77% 1.80%(c)
Portfolio turnover (d)............... 26.85% 26.85% 34.89% 34.89%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 8.04%.
(c) 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.
-121-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Government Income Fund
-------------------------
Year Ended July 31,
-------------------------
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............ $ 9.40 $ 9.54 $ 9.48
------- ------- -------
Investment Activities
Net investment income (loss)................... 0.58 0.66 0.68
Net realized and unrealized gains (losses) from
investments................................... 0.35 (0.20) 0.08
------- ------- -------
Total from Investment Activities............... 0.93 0.46 0.76
------- ------- -------
Distributions
Net investment income.......................... (0.58) (0.59) (0.70)
Tax return of capital.......................... -- (0.01) --
------- ------- -------
Total Distributions............................ (0.58) (0.60) (0.70)
------- ------- -------
Net Asset Value, End of Period.................. $ 9.75 $ 9.40 $ 9.54
======= ======= =======
Total Return (excludes sales charge)............ 10.21% 4.91% 8.43%
Ratios/Supplemental Data:
Net Assets at end of period (000).............. $11,622 $15,752 $16,679
Ratio of expenses to average net assets........ 0.69% 0.65% 0.58%
Ratio of net investment income to average net
assets........................................ 5.98% 6.81% 7.18%
Ratio of expenses to average net assets*....... 1.29% 1.10% 1.19%
Portfolio turnover.............................. 2.96% 78.31% 27.32%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-122-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Bond Fund
-------------------------------------------------------------------
Year Ended Year Ended
July 31, July 31,
1999 1998
--------------------------- ---------------------------------------
Classic Premier B Shares Classic (a) Premier (a) B Shares (b)
------- -------- -------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ... $11.05 $ 11.05 $11.04 $10.92 $ 10.72 $10.88
------ -------- ------ ------ -------- ------
Investment Activities
Net investment income
(loss)................ 0.61 0.61 0.50 1.41 0.57 0.46
Net realized and
unrealized gains
(losses) from
investments........... (0.32) (0.30) (0.31) (0.62) 0.38 0.24
------ -------- ------ ------ -------- ------
Total from Investment
Activities............ 0.29 0.31 0.19 0.79 0.95 0.70
------ -------- ------ ------ -------- ------
Distributions
Net investment income.. (0.58) (0.60) (0.50) (0.63) (0.59) (0.51)
Net realized gains from
investment
transactions.......... (0.13) (0.13) (0.13) (0.03) (0.03) (0.03)
------ -------- ------ ------ -------- ------
Total Distributions.... (0.71) (0.73) (0.63) (0.66) (0.62) (0.54)
------ -------- ------ ------ -------- ------
Net Asset Value, End of
Period................ $10.63 $ 10.63 $10.60 $11.05 $ 11.05 $11.04
====== ======== ====== ====== ======== ======
Total Return (excludes
sales charge).......... 2.58% 2.68% 1.58% 7.45% 7.54%(c) 6.58%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $7,070 $380,226 $2,521 $7,032 $327,930 $ 442
Ratio of expenses to
average net assets.... 0.81% 0.71% 1.71% 0.73% 0.73%(e) 1.74%(e)
Ratio of net investment
income to average net
assets................ 5.46% 5.57% 4.63% 5.78% 5.72%(e) 4.75%(e)
Ratio of expenses to
average net assets*... 1.20% 0.95% 1.95% 0.95% 0.97%(e) 1.99%(e)
Portfolio turnover (f).. 18.26% 18.26% 18.26% 40.41% 40.41% 40.41%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) For the period from September 16, 1997 (commencement of operations)
through July 31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) through July 31, 1998 was 9.03%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-123-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Bond Fund
---------------------------
Year Ended July 31,
---------------------------
1997 1996 1995
-------- -------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $ 10.54 $ 10.83 $ 10.59
-------- -------- -------
Investment Activities
Net investment income (loss)..................... 0.65 0.65 0.69
Net realized and unrealized gains (losses) from
investments..................................... 0.42 (0.18) 0.28
-------- -------- -------
Total from Investment Activities................. 1.07 0.47 0.97
-------- -------- -------
Distributions
Net investment income............................ (0.69) (0.65) (0.69)
Net realized gains from investment transactions.. -- (0.11) (0.04)
-------- -------- -------
Total Distributions.............................. (0.69) (0.76) (0.73)
-------- -------- -------
Net Asset Value, End of Period.................... $ 10.92 $ 10.54 $ 10.83
======== ======== =======
Total Return (excludes sales charge).............. 10.48% 4.40% 9.70%
Ratios/Supplemental Data:
Net Assets at end of period (000)................ $311,881 $132,737 $94,671
Ratio of expenses to average net assets.......... 0.75% 0.75% 0.75%
Ratio of net investment income to average net
assets.......................................... 6.10% 6.12% 6.63%
Ratio of expenses to average net assets*......... 0.98% 0.98% 0.98%
Portfolio turnover................................ 34.62% 9.60% 17.70%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-124-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Municipal Bond Fund
-------------------------------------------------------------------------
Year Ended Year Ended July 1, 1997
July 31, July 31, July 31,
1999 1998 1997 (a)
------------------------------ ----------------------- ------------
Classic Premier Class B (g) Classic (b) Premier (b)
------- -------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.13 $ 10.14 $10.28 $10.15 $ 10.04 $ 10.00
------ -------- ------ ------ -------- --------
Investment Activities
Net investment income
(loss)................ 0.41 0.42 0.14 0.86 0.39 0.04
Net realized and
unrealized gains
(losses) from
investments........... (0.17) (0.18) (0.41) (0.43) 0.14 0.15
------ -------- ------ ------ -------- --------
Total from Investment
Activities............ 0.24 0.24 (0.27) 0.43 0.53 0.19
------ -------- ------ ------ -------- --------
Distributions
Net investment income.. (0.39) (0.40) (0.14) (0.42) (0.40) (0.04)
Net realized gains from
investment
transactions.......... (0.11) (0.11) -- (0.03) (0.03) --
------ -------- ------ ------ -------- --------
Total Distributions.... (0.50) (0.51) (0.14) (0.45) (0.43) (0.04)
------ -------- ------ ------ -------- --------
Net Asset Value, End of
Period................. $ 9.87 $ 9.87 $ 9.87 $10.13 $ 10.14 $ 10.15
====== ======== ====== ====== ======== ========
Total Return (excludes
sales charge).......... 2.31% 2.30% (2.60)%(c) 4.30% 4.49%(d) 1.86%(c)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $2,694 $321,293 $ 16 $2,689 $326,464 $337,933
Ratio of expenses to
average net assets.... 0.71% 0.61% 1.60%(e) 0.62% 0.64%(e) 0.71%(e)
Ratio of net investment
income to average net
assets................ 4.01% 4.11% 3.17%(e) 4.26% 4.23%(e) 4.31%(e)
Ratio of expenses to
average net assets*... 1.20% 0.95% 1.87%(e) 0.92% 0.97%(e) 1.04%(e)
Portfolio turnover (f).. 20.74% 20.74% 20.74% 28.75% 28.75% 1.59%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(c) Not annualized.
(d) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Municipal Bond Fund Premier Shares for the period
from September 2, 1997 (commencement of operations) through July 31, 1998
was 5.27%.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) For the period from February 3, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-125-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Florida Tax-Free Fund
----------------------------------------------------------------------------------------------
Year Ended
Year Ended Year Ended July 31, September 30, 1994
July 31, July 31, --------------- to July 31,
1999 1998 1997 1996 1995 (f)
----------------------------- ----------------------- ------ ------- ------------------
Classic Premier Class B (g) Classic (a) Premier (a)
------- ------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.45 $ 10.46 $10.52 $10.50 $ 10.39 10.30 $ 10.32 $ 10.00
------- ------- ------ ------ ------- ------ ------- -------
Investment Activities
Net investment income
(loss)................ 0.41 0.43 0.12 0.45 0.41 0.45 0.45 0.34
Net realized and
unrealized gains
(losses) from
investments........... (0.18) (0.20) (0.30) 0.01 0.14 0.24 (0.01) 0.30
------- ------- ------ ------ ------- ------ ------- -------
Total from Investment
Activities............ 0.23 0.23 (0.18) 0.46 0.55 0.69 0.44 0.64
------- ------- ------ ------ ------- ------ ------- -------
Distributions
Net investment income.. (0.40) (0.41) (0.14) (0.44) (0.41) (0.48) (0.45) (0.32)
Net realized gains from
investment
transactions.......... (0.06) (0.06) -- (0.07) (0.07) (0.01) (0.01) --
------- ------- ------ ------ ------- ------ ------- -------
Total Distributions.... (0.46) (0.47) (0.14) (0.51) (0.48) (0.49) (0.46) (0.32)
------- ------- ------ ------ ------- ------ ------- -------
Net Asset Value, End of
Period................. $ 10.22 $ 10.22 $10.20 $10.45 $ 10.46 $10.50 $ 10.30 $ 10.32
======= ======= ====== ====== ======= ====== ======= =======
Total Return (excludes
sales charge).......... 2.06% 2.16% (1.77)%(c) 4.46% 4.66%(b) 6.89% 4.24% 6.53%(c)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $12,195 $63,548 $ 569 $8,883 $55,369 53,688 $48,869 $48,333
Ratio of expenses to
average net assets.... 0.59% 0.49% 1.49%(d) 0.55% 0.49%(d) 0.57% 0.59% 0.70%(d)
Ratio of net investment
income to average net
assets................ 4.00% 4.10% 3.06%(d) 4.24% 4.30%(d) 4.36% 4.33% 4.16%(d)
Ratio of expenses to
average net assets*... 1.26% 1.01% 2.00%(d) 1.06% 1.04%(d) 1.06% 1.04% 1.01%(d)
Portfolio turnover (e).. 34.33% 34.33% 34.33% 29.55% 29.55% 24.05% 12.21% 2.33%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Effective September 2, 1997, the Fund's existing shares, which were
previously unclassified, were designated either Classic Shares or Premier
Shares. For reporting purposes, past performance numbers (prior to
September 2, 1997) are being reflected as Classic Shares.
(b) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Florida Tax-Free Fund Premier Shares for the period
from September 2, 1997 (commencement of operations) through July 31, 1998
was 5.40%.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Period from commencement of operations.
(g) For the period from March 16, 1999 (commencement of operations) through
July 31, 1999.
See notes to financial statements.
-126-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
U.S. Treasury Fund
-------------------------------------------------------
Year Ended July 31,
-------------------------------------------------------
1999 1998 1997
----------------- ----------------- -----------------
Classic Premier Classic Premier Classic Premier
------- -------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $1.000 $ 1.000 $1.000 $ 1.000
------- -------- ------ -------- ------ --------
Investment Activities
Net investment income.. 0.040 0.041 0.046 0.047 0.045 0.046
------- -------- ------ -------- ------ --------
Distributions
Net investment income.. (0.040) (0.041) (0.046) (0.047) (0.045) (0.046)
------- -------- ------ -------- ------ --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $1.000 $ 1.000 $1.000 $ 1.000
======= ======== ====== ======== ====== ========
Total Return............ 4.06% 4.16% 4.67% 4.77% 4.60% 4.70%
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $ 4,390 $320,847 $8,070 $352,055 $9,885 $309,361
Ratio of expenses to
average net assets.... 0.79% 0.69% 0.80% 0.70% 0.79% 0.69%
Ratio of net investment
income to average net
assets................ 4.03% 4.10% 4.57% 4.67% 4.50% 4.60%
Ratio of expenses to
average net assets*... 0.95% 0.70% 0.95% 0.70% 0.94% (a)
</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)There were no waivers during the period.
See notes to financial statements.
-127-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
U.S. Treasury Fund
----------------------------------
Year Ended July 31,
----------------------------------
1996 1995
------------------------- --------
Classic (a) Premier (a)
----------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period....... $ 1.000 $ 1.000 $ 1.000
------- -------- --------
Investment Activities
Net investment income..................... 0.015 0.048 0.048
------- -------- --------
Distributions
Net investment income..................... (0.015) (0.048) (0.048)
------- -------- --------
Net Asset Value, End of Period............. $ 1.000 $ 1.000 $ 1.000
======= ======== ========
Total Return............................... 4.90%(b) 4.93% 4.90%
Ratios/Supplemental Data:
Net Assets at end of period (000)......... $12,263 $368,162 $322,939
Ratio of expenses to average net assets... 0.82%(c) 0.71% 0.70%
Ratio of net investment income to average
net assets............................... 4.44%(c) 4.82% 4.81%
Ratio of expenses to average net assets*.. 0.97%(c) (d) (d)
</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) 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%.
(c) Annualized.
(d) There were no waivers during the period.
See notes to financial statements.
-128-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Prime Obligations Fund
--------------------------------------------------------------
Year Ended
July 31,
--------------------------------------------------------------
1999 1998
---------------------------- --------------------------------
Classic Premier B Shares Classic Premier B Shares (a)
-------- -------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- ------- -------- -------- -------
Investment Activities
Net investment income.. 0.044 0.045 0.035 0.049 0.050 0.005
-------- -------- ------- -------- -------- -------
Distributions
Net investment income.. (0.044) (0.045) (0.035) (0.049) (0.050) (0.005)
-------- -------- ------- -------- -------- -------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======= ======== ======== =======
Total Return............ 4.48% 4.59% 3.55% 4.99% 5.09% 0.49%(b)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $136,078 $536,899 $ 224 $116,960 $479,974 $ 1
Ratio of expenses to
average net assets.... 0.78% 0.68% 1.69% 0.79% 0.69% 1.85%(c)
Ratio of net investment
income to average net
assets................ 4.40% 4.51% 3.39% 4.88% 4.98% 3.83%(c)
Ratio of expenses to
average net assets*... 0.94% 0.69% 1.70% 0.95% 0.70% 1.88%(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) For the period from June 15, 1998 (commencement of operations) through July
31, 1998.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-129-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Prime Obligations Fund
-----------------------------------------------------------
Year Ended July 31,
-----------------------------------------------------------
1997 1996 1995
------------------ -------------------------- --------
Classic Premier Classic (a) Premier (a)
-------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.048 0.049 0.016 0.050 0.050
-------- -------- -------- -------- --------
Distributions
Net investment income.. (0.048) (0.049) (0.016) (0.050) (0.050)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Return............ 4.90% 5.00% 5.07%(b) 5.10% 5.14%
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $111,027 $416,966 $125,075 $478,542 $617,673
Ratio of expenses to
average net assets.... 0.78% 0.68% 0.81%(c) 0.71% 0.69%
Ratio of net investment
income to average net
assets................ 4.79% 4.89% 4.61%(c) 5.00% 5.04%
Ratio of expenses to
average net assets*... 0.93% (d) 0.96%(c) (d) (d)
</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) 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%.
(c) Annualized.
(d) There were no waivers during the period.
See notes to financial statements.
-130-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Institutional Prime
Obligations Fund
----------------------------------------
September 15, 1998 to July 31,
1999(a)
----------------------------------------
Class I Class II (b) Class III (c)
------- ------------ -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.. $ 1.000 $ 1.000 $ 1.000
------- ------- -------
Investment Activities
Net investment income................ 0.042 0.020 0.018
------- ------- -------
Distributions
Net investment income................ (0.042) (0.020) (0.018)
------- ------- -------
Net Asset Value, End of Period........ $ 1.000 $ 1.000 $ 1.000
======= ======= =======
Total Return.......................... 4.31%(d) 1.96%(d) 1.84%(d)
Ratios/Supplemental Data:
Net Assets at end of period (000).... $69,458 $26,000 $13,575
Ratio of expenses to average net
assets.............................. 0.22%(e) 0.49%(e) 0.74%(e)
Ratio of net investment income to
average net assets.................. 4.82%(e) 4.45%(e) 4.22%(e)
Ratio of expenses to average net
assets*............................. 0.45%(e) 0.72%(e) 0.97%(e)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) For the period from February 19, 1999 (commencement of operations) through
July 31, 1999.
(c) For the period from February 22, 1999 (commencement of operations) through
July 31, 1999.
(d) Not annualized
(e) Annualized.
See notes to financial statements.
-131-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Tax-Exempt Fund
----------------------------------------------------
Year Ended July 31,
----------------------------------------------------
1999 1998 1997
---------------- ---------------- ----------------
Classic Premier Classic Premier Classic Premier
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income... 0.026 0.027 0.030 0.031 0.030 0.031
------- ------- ------- ------- ------- -------
Distributions
Net investment income... (0.026) (0.027) (0.030) (0.031) (0.030) (0.031)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Return............. 2.66% 2.76% 3.03% 3.13% 3.04% 3.15%
Ratios/Supplemental Data:
Net Assets at end of
period (000)........... $22,844 $73,880 $28,657 $62,084 $27,926 $55,429
Ratio of expenses to
average net assets..... 0.59% 0.49% 0.60% 0.50% 0.62% 0.52%
Ratio of net investment
income to average net
assets................. 2.64% 2.71% 2.97% 3.07% 3.00% 3.10%
Ratio of expenses to
average net assets*.... 0.98% 0.73% 0.98% 0.73% 0.97% 0.72%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-132-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Tax-Exempt Fund
---------------------------------
Year Ended July 31,
---------------------------------
1996 1995
------------------------- -------
Classic (a) Premier (a)
----------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 1.000 $ 1.000 $ 1.000
------- ------- -------
Investment Activities
Net investment income.................. 0.010 0.031 0.032
------- ------- -------
Distributions
Net investment income.................. (0.010) (0.031) (0.032)
------- ------- -------
Net Asset Value, End of Period.......... $ 1.000 $ 1.000 $ 1.000
======= ======= =======
Total Return............................ 3.12%(b) 3.15% 3.22%
Ratios/Supplemental Data:
Net Assets at end of period (000)...... $17,116 $43,611 $57,640
Ratio of expenses to average net
assets................................ 0.68%(c) 0.54% 0.54%
Ratio of net investment income to
average net assets.................... 2.82%(c) 3.11% 3.15%
Ratio of expenses to average net
assets*............................... 1.03%(c) 0.74% 0.74%
</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) 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)
through July 31, 1996 was 0.95%.
(c) Annualized.
See notes to financial statements.
-133-
<PAGE>
INVESTMENT ADVISOR [LOGO OF AMSOUTH MUTUAL
AmSouth FUNDS APPEARS HERE]
[LOGO OF AMSOUTH APPEARS HERE]
AmSouth Bank ANNUAL REPORT
1901 Sixth Avenue North July 31, 1999
Birmingham, AL 35203
Investment Sub-Advisors
(Equity Income Fund Only)
Rockhaven Asset Management, LLC
100 First Avenue, Suite 1050
Pittsburgh, PA 15222
(Capital Growth Fund Only)
Peachtree Asset Management
A Division of Salomon Smith Barney
Fund Management, LLC
One Peachtree Center
Atlanta, GA 30308
(Small Cap Fund Only)
Sawgrass Asset Management, LLC
4337 Pablo Oaks Court
Jacksonville, FL 32224
(Select Equity and Enhanced Market Funds)
OakBrook Investments, LLC
701 Warrenville Road, Suite 135
Lisle, IL 60532
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Ropes & Gray
One Franklin Square
1301 K Street, N.W.
Suite 800 East
Washington, DC 20005
TRANSFER AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
AUDITORS
Pricewaterhouse Coopers LLP AmSouth
100 East Broad Street AMSOUTH BANK
Columbus, OH 43219 Investment Advisor
[LOGO OF AMSOUTH BANK
APPEARS HERE]