<PAGE>
AmSouth Mutual Funds
Semi-annual Report
January 31, 1999
AMSOUTH [LOGO OF AMSOUTH APPEARS HERE]
MUTUAL FUNDS AMSOUTH BANK
Investment Advisor
BISYS Fund Services, Distributor
Not FDIC Insured
<PAGE>
Table of Contents
Message From the Chairman and Investment Advisor
Page 1
Statements of Assets and Liabilities
Page 31
Statements of Operations
Page 35
Statements of Changes in Net Assets
Page 39
Schedules of Portfolio Investments
Page 45
Notes to Financial Statements
Page 92
Financial Highlights
Page 104
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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.
- --------------------------------------------------------------------------------
<PAGE>
Message From the Chairman and Investment Advisor
Dear Shareholders:
We are pleased to send you this semi-annual report for the six-month period
ended January 31, 1999. This period was marked by an extraordinary series of
events, unsettling volatility in the financial markets and positive returns
for both stocks and bonds.
During the period, we introduced three additional funds to the AmSouth family
of funds. One is the Institutional Prime Obligations Fund--a money market
vehicle designed to meet the short-term cash management needs of banks and
other financial entities, corporations and institutional clients.
We also introduced the Select Equity and the Enhanced Market Funds, both
subadvised by OakBrook Investments, LLC. These Funds give you an additional
array of equity investment opportunities.
With the Select Equity Fund, the OakBrook team concentrates on a relatively
small number of stocks, generally 25 or less, of companies with dominant
market positions in their respective industries. With the Enhanced Market
Fund, the investment advisor uses a proprietary model, based on a unique
quantitative approach, to pinpoint those stocks within the Standard & Poor's
500 Stock Index/1/ that could outperform the market. We believe investors with
long-term horizons and adequate tolerance for risk should consider the Select
Equity and Enhanced Market Funds for their portfolios.
Stocks Plunged, Then Recovered Mightily
For stocks, the period began on an ominous note. First, there was lingering
concern about the ongoing situations in Asia, followed by Russia's default on
a $40 billion debt that was held mostly by Western banks. Fears over global
credit pressures followed, along with volatility in bond markets around the
world and the near collapse of a highly leveraged hedge fund holding billions
of dollars of paper losses in its portfolio. Equity investors, clearly
concerned with these occurrences, began to flee from all manner of stocks,
helping to cause the market to tumble quickly.
The Federal Reserve Board (Fed) lowered the Fed Funds Rate--the interest rate
banks charge for overnight loans--three times during autumn, a decision that
caught many investors unaware. With the market flooded with liquidity,
investors returned, and stocks regained their upward momentum. It was truly
one of the quickest and most powerful turnarounds in history.
As 1998 came to a close, stocks posted a fourth straight year of double-digit
gains. The Dow Jones Industrial Average/2/ ended the year with a gain of 16%,
while the S&P 500 and the Nasdaq Composite Index/3/ ended the year with gains
of 26.7% and 39.6%, respectively. During January 1999, stocks maintained their
positive posture, and the tech-heavy Nasdaq surged into record territory.
-1-
<PAGE>
Bonds Also Delivered Handsome Gains
The Fed's decision to lower interest rates certainly did not hinder the
performance of fixed-income investments. Across the yield curve, bonds posted
solid returns. Considering that inflation remained remarkably low, fixed-
income returns were very generous by historical standards.
Bonds also proved, once again, to be good investments in times of uncertainty
in the equity market. When stocks fell apart in late summer, bondholders were
comforted by their relative stability and steady yields.
Our Outlook: Wary, but Optimistic
As we look ahead, we are confronted by a vast number of conflicting
circumstances. From our perspective, the world's economy is uncertain. Asia
has shown only a mild recovery; Russia remains unstable; and the contagion
that began in the Far East now seems to have infected South America. Closer to
home, the fundamental valuations of stocks are high, leaving them susceptible
to even the slightest shocks.
The U.S. economy remains amazingly resilient and strong. We are experiencing
low inflation and steady growth, even if that growth is not as robust as it
was last year. The most recent data reveals few factors, if any, that could
derail our economy in the near future.
We remain neutral about the relative strengths of stocks and bonds. In recent
years, the stock market has rebounded and continues to rise. Bonds could
benefit from the current environment of stable-to-lower interest rates and
declining inflation.
On the following pages, we have included the Schedules of Portfolio
Investments for the AmSouth Mutual Funds and a report for each Fund. Please
review this material closely. It details how your investment was managed
during the past six-month period, and how each Fund is positioned for the
coming year.
Our message to you, our shareholders, is to take time to examine your
financial goals. We encourage you to speak with your AmSouth financial
advisor. As always, your advisor will strive to understand your financial
needs and confirm that you hold the right mix of investments. Whatever your
objectives, it is good to know that the AmSouth family of mutual funds can
offer you a full range of investment tools to help meet your needs and to help
you build and preserve wealth. We thank you for your continued support and
look forward to helping you meet your financial goals.
-2-
<PAGE>
Sincerely,
/s/ George Landreth /s/ Brian B. Sullivan
George Landreth Brian B. Sullivan
Chairman Senior Investment Officer
AmSouth Mutual Funds AmSouth Bank
For more complete information on any of the AmSouth Mutual Funds, including
charges and other ongoing fees, call 800-451-8382 for a prospectus, which you
should read carefully before you invest or send money. Shares are distributed
by BISYS Fund Services.
/1/The Standard & Poor's 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.
/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 stocks and dividing by a denominator, which has
been adjusted over the years for stocks splits, stock dividends and
substitutions of stocks).
/3/The Nasdaq Composite Index is a market capitalization price-only index that
tracks the performance of domestic common stocks traded on the regular
Nasdaq market as well as the National Market System traded foreign common
stocks and ADRs.
-3-
<PAGE>
The AmSouth Equity Income Fund
The AmSouth Equity Income Fund is subadvised by Rockhaven Asset Management and
managed by Christopher Wiles, CFA. President and chief investment officer of
Rockhaven, Mr. Wiles has more than 15 years of investment management
experience. He holds an MBA and a bachelor's degree in finance.
Strong Overall Performance
For the six-month period ended January 31, 1999, the AmSouth Equity Income Fund
produced a total return of 9.75% (Classic Shares at NAV)./1/ In comparison, the
S&P 500 Stock Index returned 15.02%, and the Lipper Equity Income Fund Index/2/
returned 4.55% for the same six-month period.
We were satisfied with the Fund's performance for the period, especially during
the last three months. The full period was an unusually volatile time. The
confluence of continuing troubles in Asia, a virtual collapse in Russia and the
recent turmoil in the White House helped to send stocks into a frenzy, leading
to the market plummeting in the late summer.
With the Federal Reserve Board's rapid easing of interest rates in the fall,
the market recovered and continued to climb to new highs early in the New Year.
We subsequently saw the value of our portfolio rise dramatically. Many of the
issues we held were oversold during the market decline. Renewed investor
optimism helped many of these stocks recover.
We Shifted Into a More Growth-Oriented Mode
Late last summer, we determined we had too strong an emphasis on value stocks
in the portfolio. Therefore, we decided to listen more closely and see where
the market was willing to reward investors. We made some changes to the
portfolio that proved to be very constructive.
For example, the Fund now has a higher growth rate. We are still providing a
yield that is twice that of the S&P 500, and we still seek to provide downside
protection through the use of convertible securities. However, we have added
names that have responded well to the market's upward move.
One stock we bought during the period was Monsanto Convertible Preferred (1.64%
of the Fund's net assets). Monsanto has a higher growth profile than many other
companies in its sector. Another new name in the portfolio is Fannie Mae
(2.00%), the federal mortgage insurer. In our view, Fannie Mae has done a very
good job of growing earnings on a long-term basis. We bought into the company
as a way of adding a blue-chip financial stock to our holdings. During the
period, we also added The Walt Disney Co. (2.02%), which we consider a value
play.
Volatility Will be the Norm
With its strength and power, the economy continues to surprise. We do not
foresee anything on the near-term horizon to derail the market. That does not
mean there will not be shocks along the way. It is possible we could see a lot
of volatility throughout 1999. Consequently, we are advising shareholders to
consider being a little defensive in their portfolio. We feel that a fund
similar to ours could continue to provide good value--participating in the
market's upward surges, while offering some protection during rough periods.
As of January 31, 1999, the Fund's top five holdings were Texas Utilities
Convertible (2.95%), Bristol-Myers Squibb Co. (2.95%), EMC Corp. Convertible
(2.77%), BCE, Inc. (2.62%) and National Australia Bank Convertible (2.55%).*
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.50%, was 4.81%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/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.
-4-
<PAGE>
The AmSouth Equity Income Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Equity Income AmSouth Equity Income AmSouth Equity Income Lipper Equity S&P 500
Date Fund (Classic Shares)* Fund (Premier Shares) Fund (B Shares)** Income Fund Index Stock Index
<S> <C> <C> <C> <C> <C>
3/20/97 $9,551 $10,000 $10,000 $10,000 $10,000
7/1/97 $11,409 $11,948 $11,421 $12,188 $12,108
7/1/98 $12,073 $12,669 $12,142 $13,352 $15,126
1/1/99 $13,250 $13,912 $13,312 $13,960 $17,398
</TABLE>
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Average Annual Total Return
- ----------------------------------------
Since
As of 1 Inception
January 31, 1999 Year (3/20/97)
- ----------------------------------------
Classic* 9.32% 16.26%
- ----------------------------------------
Premier 14.65% 19.33%
- ----------------------------------------
B Shares** 8.55% 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 for 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. Classic Shares performance 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, a managed index, and the Fund's performance do
reflect the deduction of fees for these value-added services.
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.
-5-
<PAGE>
The AmSouth Equity Fund
The AmSouth Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more
than 28 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 Lack of Foreign Exposure
For the six-month period ended January 31, 1999, the AmSouth Equity Fund
produced a total return of 7.21% (Classic Shares at NAV)./1/ In comparison,
the S&P 500 Stock Index returned 15.02%, while the Lipper Capital Appreciation
Fund Index/2/ returned 12.63% for the same six-month period.
During the period, the Fund's portfolio held more domestic than international
stocks, so we were not greatly exposed to the international turmoil. Overall,
the stocks in the portfolio were more dependent on domestic growth than they
were on international economic activity. The U.S. economy stayed somewhat
stable, which helped the earnings performance of many of the companies in the
portfolio.*
Retail and Health Care Were Winners
During the period, two sectors performed well: retail and health care. Some of
our best performers in retail included Dayton Hudson Corp. (3.19% of the
Fund's net assets), Wal-Mart Stores, Inc. (2.90%) and Gap Stores (Our position
was completely liquidated before January 31, 1999). In health care, some of
our investments included Pharmacia & Upjohn Inc. (2.93%), C.R. Bard (2.93%)
and American Home Products (1.13%). As the period progressed, we began to move
into other areas that we felt were relatively more attractive--such as energy,
raw materials and shelter.*
In the energy group, we have broad exposure in both the refining and
exploration sectors, focusing largely on domestic-based companies, rather than
on international concerns. Our energy holdings include Sunoco, Inc. (2.37%),
Texaco, Inc. (1.97%), USX Marathon Group (1.34%), Kerr-McGee Corp. (1.24%),
Atlantic Richfield Co. (0.99%) and Ultramar Diamond Shamrock (0.86%). In
shelter, we have shares of Weyerhauser (2.55%) and Willamette Industries Inc.
(1.18%).*
Volatility Will Continue in Stocks
We believe that the volatility we saw all through 1998 is likely to continue.
Once the market gets to very high levels of valuation, historically it has
been prone to react sharply to very small disruptions. The level of volatility
we saw last year was, to a large extent, a function of market valuations.
We are comfortable with how the portfolio is allocated for the next six
months. We will attempt to find good value in out-of-favor stocks. Though our
performance trailed its benchmark during the period, with a longer-term
horizon, we expect that this value orientation could work in our favor.
As of January 31, 1999, the Fund's top five holdings were Dayton Hudson Corp.
(3.19%), CVS Corp. (3.16%), Washington Mutual (2.97%), Pharmacia & Upjohn Inc.
(2.93%) and C.R. Bard (2.93%).*
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.50%, was 2.39%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/The Lipper Capital Appreciation Fund Index is comprised of funds that aim
at 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.
-6-
<PAGE>
The AmSouth Equity Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Equity Fund AmSouth Equity Fund AmSouth Equity S&P 500 Lipper Capital
Date (Classic Shares) (Premier Series) Fund (B Shares) Stock Index Appreciation Index
<S> <C> <C> <C> <C> <C>
1/1/89 $9,550 $10,000 $10,000 $10,000 $10,000
7/1/89 $11,092 $11,614 $11,614 $11,834 $11,832
7/1/90 $11,247 $11,805 $11,805 $12,600 $12,208
7/1/91 $12,229 $12,806 $12,806 $14,209 $13,727
7/1/92 $13,810 $14,461 $14,461 $16,023 $15,196
7/1/93 $15,717 $16,457 $16,457 $17,412 $17,489
7/1/94 $16,960 $17,759 $17,759 $18,316 $18,131
7/1/95 $20,226 $21,180 $21,179 $23,088 $23,120
7/1/96 $22,467 $23,527 $23,526 $26,910 $25,073
7/1/97 $31,981 $33,492 $33,488 $40,935 $33,351
7/1/98 $35,928 $37,665 $37,392 $48,855 $37,770
1/1/99 $38,521 $40,506 $39,932 $56,194 $42,544
</TABLE>
The Class B contingent deferred sales charge (CDSC) is not included in the
above graph, since the performance is for more than 6 years and the CDSC
would no longer apply.
- -----------------------------------------------
Average Annual Total Return
- -----------------------------------------------
As of 1 5 10
January 31, 1999 Year Year Year
- -----------------------------------------------
Classic* 12.05% 16.05% 14.44%
- -----------------------------------------------
Premier 17.81% 17.23% 15.01%
- -----------------------------------------------
B Shares** 11.42% 16.68% 14.85%
- -----------------------------------------------
*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 for 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. Classic Shares' performance 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 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
Capitalization Appreciation Fund Index is a managed index, and the Fund's
performance does reflect the deduction of fees for these value-added services.
During the period shown, the Fund waived and voluntarily reimbursed fees for
various expenses. Had these waivers not been in 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.
-7-
<PAGE>
The AmSouth Enhanced Market Fund
The AmSouth Enhanced Market Fund is subadvised by OakBrook Investments and
managed by Neil Wright, Janna Sampson and Peter Jankovskis. Mr. Wright has 18
years of investment experience and received his Ph.D. in economics from the
Massachusetts Institute of Technology. Ms. Sampson has 17 years of investment
management experience and has a master's degree in economics from Georgia
State University. Mr. Jankovskis has six years of investment management
experience and holds a Ph.D. in economics from the University of California at
Santa Barbara.
We Began by Outperforming the Market
The AmSouth Enhanced Market Fund commenced operations on September 1, 1998.
For the period ended, January 31, 1999, which represents nearly five months of
performance, the Fund produced a total return of 33.57% (Classic Shares at
NAV)./1/ In comparison, the S&P 500 Stock Index returned 34.46% for the same
period.
A "Pre-Momentum" Strategy
We take a quantitative approach to investing. Using our proprietary model,
based on a number of technical measures, we attempt to foresee which stocks
are going to outperform the market.
We have set up standards that look at the range of expectations for various
stocks. Stocks that have a narrow range and whose ranges are beginning to
widen are the stocks we consider buying. The stocks we want to avoid, and
underweight in the portfolio, are those that already have a particularly wide
range that has begun to shrink.
We are not "momentum" investors who follow the rapid movement in stock prices.
Rather, we try to anticipate buying momentum before it builds. We also try to
liquidate the stocks we hold before their selling momentum becomes overdone.
The Fund seeks to invest at least 80% of its assets in equity securities taken
from the S&P 500. We look at the names within the S&P and apply stringent risk
controls. These risk controls help the Fund maintain risk characteristics
similar to the S&P 500. We therefore hold stocks that we believe are the best
stocks in the index, across all sectors.
Market Drivers Could Weaken
The combination of strong corporate earnings and low inflation has resulted in
four years of good stock market returns. Aggregate corporate earnings began to
decline in the second quarter of 1998. While inflation is likely to remain low
during the remaining period, many stocks have, in our view, already paid the
price for failing to meet earnings expectations, and many more will follow in
coming quarters. Many of the factors that have kept inflation at bay are
temporary. Eventually, we believe these favorable trends may reverse, and we
could see an increase in inflation and interest rates. Equity returns may be
lower in the future as a result.
As of January 31, 1999, the Fund's top five holdings were Microsoft Corp.
(4.01% of the Fund's net assets), General Electric (3.73%), Intel Corp.
(2.28%), IBM (1.74%) and Cisco Systems, Inc. (1.70%).*
/1/The Fund's Classic Shares' return, with the maximum sales charge of 4.50%,
was 27.57%. For the same period, the total return set forth may reflect the
waiver of a portion of the Fund's advisory or administrative fees. In such
instances, and without waiver of fees, total return would have been lower.
* The Fund's portfolio composition is subject to change.
-8-
<PAGE>
The AmSouth Enhanced Market Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Enhanced Market AmSouth Enhanced Market AmSouth Enhanced Market S&P 500
Date Fund (Classic Shares)* Fund (Premier Shares) Fund (B Shares)** Stock Index
<S> <C> <C> <C> <C>
9/1/98 $9,550 $10,000 $10,000 $10,000
9/1/98 $10,154 $10,631 $10,123 $10,641
10/1/98 $10,955 $11,470 $10,947 $11,506
11/1/98 $11,656 $12,204 $11,673 $12,203
12/1/98 $12,258 $12,834 $12,299 $12,907
1/1/98 $12,757 $13,358 $12,805 $13,446
</TABLE>
- --------------------------------
Aggregate Total Return
- --------------------------------
Since
As of Inception
Janury 31, 1999 (9/1/98)
- --------------------------------
Classic* 27.57%
- --------------------------------
Premier 33.57%
- --------------------------------
B Shares** 28.05%
- --------------------------------
*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,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. Classic Shares' performance 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. The Fund's performance does reflect the
deduction of fees for these value-added services. During the period shown, the
Fund waived and voluntarily reimbursed fees for various expenses. Had these
waivers not been in 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.
-9-
<PAGE>
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.
Very Strong Performance
For the six-month period ended January 31, 1999, the Fund produced a total
return of 22.89% (Classic Shares at NAV)./1/ In comparison, the S&P 500 Stock
Index returned 15.02% for the same six-month period.
The Fund turned in a strong performance during the last four months of this
period. The technology, consumer cyclical, financial and telecommunications
sectors contributed to our success during the period. After the market's sharp
decline last summer, especially in August, we experienced a recovery in
valuations for stocks in these sectors. We were also helped by our lack of
exposure to two underperforming sectors: energy and basic industry.
Our Long-Term Commitment Paid off
We have long been attracted to our four key sectors, and our patience was
rewarded during this period. In the technology sector, we favored Oracle Corp.
(2.81% of the Fund's net assets) and Microsoft Corp. (2.20%). In the
hardware/servers arena, we held positions in Sun Microsystems, Inc. (2.71%)
and Compaq Computer Corp. (2.42%). *
We also had holdings in the consumer cyclical and retail sectors, such as Home
Depot, Inc. (1.91%) and Bed, Bath and Beyond, Inc. (1.88%). We also held
holdings in the leisure industry, highlighted by our investment in Carnival
Corp. (1.92%).*
Over the six-month period, the Fund had decent relative performance from
financial stocks, although we have not seen the substantial returns we
anticipated from this group. During the past Summer, many of the financial
companies we favored were under pressure due to a mistaken perception that the
financial sector was about to suffer a meltdown. Our view, which proved to be
correct, was that business was going to continue to be very good. Our exposure
in this sector continued to be with financial services companies, regional
banks and insurers. The Fund's holdings included Providian Financial (2.94%),
AFLAC Inc. (2.01%) and First American National Bank (1.16%).*
Our exposure in the telecommunications sector fell into two areas: full-
service providers, such as AT&T, Inc. (2.13%) and MCI Worldcom, Inc. (2.06%),
and equipment companies, such as Qwest Communications International (1.88%)
and Lucent Technologies, Inc. (1.85%).*
We Continue Pursuing Earnings Growth
We anticipate that, over the next six-month period, fewer companies will show
above-average rates of earnings growth. We expect our portfolio to be
positioned in the types of companies that do sustain their earnings. We
continue to favor technology, consumer cyclical, financial and
telecommunications stocks. Another sector that is becoming increasingly
attractive to us is consumer staples, specifically household product
companies.
As of January 31, 1999, the Fund's top five holdings were Intel Corp. (3.42%),
SunTrust Banks, Inc. (2.95%), Sun Microsystems, Inc. (2.71%), Compaq Computer
Corp. (2.42%) and Home Depot, Inc. (1.91%).*
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.50%, was 17.33%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
* The Fund's portfolio composition is subject to change.
-10-
<PAGE>
The AmSouth Capital Growth Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Capital AmSouth Capital AmSouth Capital S&P 500
Date Growth Classic Shares Growth Premier Shares Growth B Shares Stock Index
<S> <C> <C> <C> <C>
08/04/97 $9,550 $10,000 $10,000 $10,000
07/01/98 $11,098 $11,650 $11,040 $11,931
01/01/99 $13,639 $14,330 $13,720 $13,723
</TABLE>
- ------------------------------------
Average Annual Total Return
- ------------------------------------
Since
As of 1 Inception
January 31, 1999 Year (8/3/97)
- ------------------------------------
Classic Shares* 34.46% 23.10%
- ------------------------------------
Premier Shares 41.18% 27.24%
- ------------------------------------
B Shares** 34.66% 23.59%
- ------------------------------------
*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 for 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. Classic Shares performance 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, which 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 Fund's performance does reflect the deduction of fees for
these value-added services. During the period shown, the Fund waived and
voluntarily reimbursed fees for various expenses. Had these waivers not been in
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.
-11-
<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 18
years of investment experience and received his Ph.D. in economics from the
Massachusetts Institute of Technology. Ms. Sampson has 17 years of investment
management experience and has a master's degree in economics from Georgia
State University. Mr. Jankovskis has six years of investment management
experience and holds a Ph.D. in economics from the University of California at
Santa Barbara.
A Good Beginning for a new Fund
The AmSouth Select Equity Fund commenced operations on September 1, 1998. For
the period ended January 31, 1999, which represents nearly five months of
performance, the Fund produced a total return of 19.40% (Classic Shares at
NAV)./1/ In our view, a good showing for a defensive fund in a rapidly rising
market. For the same period, the S&P 500 Stock Index returned 34.46%.
Our strategy is to concentrate on a group of stocks--generally we hold 25 or
fewer stocks in the portfolio-- of companies that we feel have a dominant
market position. We expect the Fund to hold up well in down markets and
deliver strong, long-term growth.
To enhance the defensive characteristics of the stocks we hold, we buy these
issues only when they are somewhat undervalued, relative to their normal
growth premiums. Typically, we expect the stocks in our universe to sell at a
50% premium to the market's price-to-earnings ratio. We seek to purchase them
when that premium shrinks to 10% or less.
We Are Drawn to Industry Leaders
We do not, as a matter of strategy, attempt to focus on specific sectors.
However, as a consequence of our methodology, the types of stocks we look at
are concentrated more in the consumer non-durables sectors. Many
pharmaceutical stocks also have dominant market positions. Conversely, we hold
few, if any, financial stocks, because rarely do these stocks have the
dominant market position we seek.
An example of the kind of company that we may invest in is McDonald's Corp.
(9.24% of Fund's net assets). We also recently purchased Emerson Electric Co.
(9.23%) and Hubbell, Inc. (4.53%); and we favored H&R Block, Inc. (1.75%).*
Market Returns Will Moderate
Looking forward, we do not expect the market's strong gains to continue. The
surge at the end of 1998 was, in our opinion, an overblown response to the
Federal Reserve Board's interest-rate cuts. We believe that, over the next few
months, investors are going to realize that prospects are not as bright as
they may seem. We think we are going to see a fairly turbulent market in the
coming months. The overall market should have an up year, but gains may be
much more modest than we have enjoyed in the past. The defensive
characteristics of the Fund should serve investors well in this environment.
As of January 31, 1999, the Fund's top five holdings were Bristol-Myers Squibb
Co. (9.57%), McDonald's Corp. (9.24%), Emerson Electric Co. (9.23%), Waste
Management, Inc. (6.63%) and Gannett Company, Inc. (6.43%).*
/1/The Fund's Classic Shares' return, with the maximum sales charge of 4.50%,
was 14.05%. For the same period, the total return set forth may reflect the
waiver of a portion of the Fund's advisory or administrative service fees.
In such instances, and without waiver of fees, total return would have been
lower.
* The Fund's portfolio composition is subject to change.
-12-
<PAGE>
The AmSouth Select Equity Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Select Equity AmSouth Select Equity AmSouth Select Equity S&P 500
Date Fund (Classic Shares) Fund (Premier Shares) Fund (B Shares)** Stock Index
<S> <C> <C> <C> <C>
9/1/98 $9,550 $10,000 $10,000 $10,000
9/1/98 $10,032 $10,504 $10,000 $10,641
10/1/98 $10,885 $11,396 $10,890 $11,506
11/1/98 $11,168 $11,693 $11,170 $12,203
12/1/98 $11,519 $12,051 $11,526 $12,907
1/1/99 $11,405 $11,940 $11,395 $13,446
</TABLE>
- ---------------------------------
Aggregate Total Return
- ---------------------------------
Since
As of Inception
January 31, 1999 (9/1/98)
- ---------------------------------
Classic* 14.05%
- ---------------------------------
Premier 19.40%
- ---------------------------------
B Shares** 13.95%
- ---------------------------------
*Reflects 4.50% sales charge.
**Reflects applicable contingent deferred sales charge.
Premier Shares commenced operations on December 4, 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,
1997, is based on the historical performance of the Classic Shares (without
sales charge) prior to that date. Classic Shares' performance 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. The Fund's performance does reflect the
deduction of fees for these value-added services. During the period shown, the
Fund waived and voluntarily reimbursed fees for various expenses. Had these
waivers not been in 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.
-13-
<PAGE>
The AmSouth Regional Equity Fund+
The AmSouth Regional Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has
more than 28 years of investment experience as an analyst and portfolio
manager. He holds an MBA in finance and a bachelor's degree in economics.
A Difficult Climate for Stocks in the Southeast
For the six-month period ended January 31, 1999, the AmSouth Regional Equity
Fund produced a total return of -7.32% (Classic Shares at NAV)./1/ In
comparison, the S&P 500 Stock Index returned 15.02%, while the Lipper Capital
Appreciation Fund Index/2/ returned 12.63% for the same six-month period.
We continued to see a challenging environment for small-cap stocks/3/,
including those companies headquartered in the Southern region of the United
States that we favor. When the market recovered from it's mid-summer losses,
the sectors that faired well were technology, particularly Internet-related
stocks and pharmaceuticals. Due to geographical restrictions, these two
sectors are not well represented in our universe. However, it is important to
note that the relative underperformance of the Fund was not indicative of poor
economic conditions in the Southern region.
The financial services sector turned in a solid performance for the Fund. We
invested in First Tennessee National Corp. (2.97% of the Fund's net assets),
which had a very strong period, and FDX Corp. (2.21%), the parent company of
Federal Express. Other individual stocks that did well were Scientific
Atlanta, Inc. (4.77%), BellSouth Corp. (3.22%) and WinsLoew Furniture, Inc.
(1.02%).*
Will the Market Broaden its Focus?
Economically, the Southern region, in our view, looks attractive. Over the
next six to twelve months, a major factor that may affect the Fund's
performance is whether the market broadens its focus to include the type of
stocks we purchase, or whether it keeps its focus narrow. If the market
continues to concentrate on a small handful of stocks outside the Fund's
universe, it will be difficult for us to perform well on a relative basis.
Nevertheless, we remain confident that the strength of the Southern region,
coupled with the solid fundamentals of the stocks we purchase, can produce
attractive total returns for shareholders.
As of January 31, 1999, the Fund's top five holdings were Scientific Atlanta,
Inc. (4.77%), HEALTHSOUTH Corp. (4.65%), Health Management Associates (3.74%),
Clayton Homes, Inc. (3.33%) and BellSouth Corp. (3.22%).*
+ Regional Funds may be subject to additional risk, since the companies they
invest in are located in one geographical location.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.50%, was -11.49%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/The Lipper Capital Appreciation Fund Index is comprised of funds that aim
at 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.
/3/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.
-14-
<PAGE>
The AmSouth Regional Equity Fund+
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Regional Equity AmSouth Regional Equity AmSouth Regional Equity S&P 500 Lipper Captial
Date Fund (Classic Shares)* Fund (Premier Shares) Fund (B Shares)** Stock Index Appreciation Index
<S> <C> <C> <C> <C> <C>
1/1/89 $9,550 $10,000 $10,000 $10,000 $10,000
7/1/89 $10,900 $11,444 $11,414 $11,834 $11,832
7/1/90 $11,925 $12,488 $12,488 $12,600 $12,208
7/1/91 $13,419 $14,052 $14,052 $14,209 $13,727
7/1/92 $16,191 $16,954 $16,954 $16,023 $15,196
7/1/93 $18,705 $19,587 $19,587 $17,412 $17,489
7/1/94 $19,618 $20,543 $20,543 $18,316 $18,131
7/1/95 $22,577 $23,642 $23,642 $23,088 $23,120
7/1/96 $25,535 $26,740 $26,740 $26,910 $25,073
7/1/97 $35,499 $37,174 $37,174 $40,935 $33,351
7/1/98 $35,391 $37,127 $36,823 $48,855 $37,770
1/1/99 $32,798 $34,467 $33,987 $56,194 $42,544
</TABLE>
The Class B contingent deferred sales charge (CDSC) is not included in the
above graph, since the performance is for more than 6 years and the CDSC
would no longer apply.
- ---------------------------------------------------
Average Annual Total Return
- ---------------------------------------------------
As of 1 5 10
January 31, 1999 Year Year Year
- ---------------------------------------------------
Classic* -12.64% 8.87% 12.61%
- ---------------------------------------------------
Premier -8.24% 9.96% 13.17%
- ---------------------------------------------------
B Shares** -13.45% 9.38% 13.01%
- ---------------------------------------------------
*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 for 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. Classic Shares' performance 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 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 Capital Appreciation Fund Index is a managed index, and the Fund's
performance does reflect the deduction of fees for these value-added services.
During the period shown, the Fund waived and voluntarily reimbursed fees for
various expenses. Had these waivers not been in 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.
-15-
<PAGE>
The AmSouth Small Cap Fund+
The AmSouth Small Cap Fund is subadvised by Sawgrass Asset Management and is
managed by Dean McQuiddy, CFA. A principal of Sawgrass, Mr. McQuiddy has more
than 16 years of investment management experience. He received his bachelor's
degree in finance from the University of Florida.
Our Value Approach Preserved Capital
For the six-month period ended January 31, 1999, the Fund produced a total
return of -2.41% (Classic Shares at NAV)./1/ In comparison, the Russell 2000
Growth Index returned 9.45% for the same six-month period.
The period was a tale of two markets, characterized by a volatile roller-
coaster ride for equity investors, especially those in small-cap funds. The
period began with a dramatic correction, which carried through until the
market bottomed on October 8, 1998. During this difficult period for stocks,
our shareholders benefited from our focus on valuation. We seek to purchase
stocks that are not selling at excessively high price multiples in relation to
their earnings growth rates. Therefore, during market corrections, our lower-
than-average multiples can help buffer the portfolio from selling pressure.
However, the Fund lost some ground, relative to its benchmark, during the
subsequent market recovery. The Federal Reserve Board's decision to cut
interest rates three times injected a massive flow of liquidity into the
system, and investors' perceptions about the market, in our view, changed
rapidly. Significant monies flowed back into Internet stocks and other related
segments of the technology sector, such as semiconductor and equipment
manufacturers. During this rebound in stock prices, the strongest performances
were an odd combination of the popular Internet stocks and "value" oriented
stocks, which had been deeply oversold. While valuation is an integral element
of our process, so are real and growing earnings. Neither of these groups have
current growing earnings. Though our performance trailed its benchmark during
this period, we believe the focus on these stocks will be short lived, as the
market should return to focus on predictable earnings growth.
We benefited from an overweighting in certain technology groups that fit our
investment profile. We invested in Xircom, Inc. (3.70% of the Fund's net
assets), a manufacturer of computer add-ons, which produces PCMCIA cards that
enable computers to connect to networks. Xircom, Inc. has taken advantage of
growth in the PC market, as well as growth in portable computers and the
networking end of the business. We also invested in Dycom Industries, Inc.
(2.75%). The company delivers and installs fiber optics for cable companies
and some regional Baby Bells looking to provide the Internet to their
subscribers' homes. Mercury Interactive (2.00%) is a software company whose
products enable testing of software and client server applications. Mercury
sells a package of testing tools that companies use to identify errors in
computer code and enterprise-wide software applications.*
Small Stocks Could Outperform Larger Issues
We feel very positive about the relative attractiveness of the stocks we own
in our portfolio. Every stock we buy has accelerated earnings. We believe that
our portfolio, as a whole, can grow earnings at an annual rate of 30%. That is
in sharp contrast to the market in general, where the S&P 500 is expected to
grow in the 7%-10% range over the next year. Yet, the valuations of our
holdings are not relatively high; the average price of the stocks we own is
less than 20 times estimated 1999 earnings.
If larger stocks and stocks with high valuations cannot grow at higher rates,
investors could become more comfortable with the kind of stocks we own--
smaller, growth-oriented and possessing relatively stronger fundamentals.
As of January 31, 1999, the Fund's top five holdings were Xircom, Inc.
(3.70%), MDC Holdings, Inc. (3.05%), Agouron Pharmaceuticals (3.02%), Dycom
Industries, Inc. (2.75%) and Progress Software Corp. (2.70%).*
+ 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.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.50%, was -6.79%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
* The Fund's portfolio composition is subject to change.
-16-
<PAGE>
The AmSouth Small Cap Fund+
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Small Capital AmSouth Small Capital AmSouth Small Capital Russell 2000
Date Growth Classic Shares Growth Premier Shares Growth B Shares Index
<S> <C> <C> <C> <C>
03/02/98 $9,550 $10,000 $10,000 $10,000
07/31/98 $8,756 $9,152 $8,655 $9,001
01/01/99 $8,545 $8,942 $8,417 $9,852
</TABLE>
- -------------------------------------
Aggregate Total Return
- -------------------------------------
Since
As of Inception
January 31, 1999 (3/2/98)
- -------------------------------------
Classic Shares* -14.55%
- -------------------------------------
Premier Shares -10.58%
- -------------------------------------
B Shares** -15.83%
- -------------------------------------
*Reflects 4.5% 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 for Premier
Shares of the Fund.
The performance of the AmSouth Small Cap Fund is measured against the Russell
2000 Growth Index, an unmanaged index generally representative of domestically
traded common stocks of small to mid-sized companies. The index does not
reflect the deduction of 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 and voluntarily reimbursed 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.
-17-
<PAGE>
The AmSouth Balanced Fund
The AmSouth Balanced Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more
than 28 years of investment experience as an analyst and portfolio manager. He
holds an MBA in finance and a bachelor's degree in economics.
Our Balanced Blend Proved Constructive
For the six-month period ended January 31, 1999, the AmSouth Balanced Fund
produced a total return of 6.08% (Classic Shares at NAV)./1/ In comparison,
the S&P 500 Stock Index returned 15.02%, and the Lehman Brothers
Government/Corporate Bond Index returned 5.89% for the same six-month period,
while the Lipper Balanced Fund Index/2/ was up 8.00%.
Despite a great deal of volatility in both stocks and bonds, the period was a
productive one for equity and fixed-income investors alike. The Fund provided
shareholders with the opportunity to realize competitive returns, while not
suffering as much short-term volatility. For the six-month period as a whole,
we achieved the "balance" that gives the Fund both its name and its investment
objective.
Stocks: Solid Gains for the Period
The Fund's equity allocation was helped by our lack of foreign exposure.
International markets were disturbed by continuing concerns over Asia, by
Russia defaulting on its $40 billion debt and by the threat of a worldwide
credit crunch. Our strategy of concentrating on value stocks with strong
domestic orientations shielded us from the fallout abroad. Many of our
significant gains came from the retail and health-care sectors. Some of the
Fund's holdings included Wal-Mart Stores, Inc. (1.08% of the Fund's net
assets), Dayton Hudson Corp. (0.97%) and Gap Stores (position was liquidated
before January 31, 1999). In health care, we enjoyed strong growth by C.R.
Bard (1.39%) and American Home Products (0.77%), among others.*
Bonds: A Shift to "Spread Product'
As the period progressed, we shortened our average maturity. We felt that
interest rates, at that time, were as low as we had anticipated. We decided to
shorten our maturities and not open ourselves to the possibility of higher
interest rates. From October 31 to January 31, interest rates did not fall
markedly. We also increased our exposure to agency and corporate bonds. During
autumn, spreads between agency, corporate bonds and Treasuries widened
significantly. To take advantage of the situation, we sold some Treasuries and
bought high-quality agency and corporate bonds at very attractive spreads--
resulting in higher yields for our shareholders.
As of January 31, 1999, the fixed-income securities within the Fund maintained
an average credit quality of AAA, with an average maturity of 8.1 years.*
A Balanced Approach for the Future
As of January 31, 1999, the Fund's assets were divided roughly 50-50 between
equities and fixed-income securities. During Autumn, with the sharp decline in
the stock market, we decided to increase our equity allocation to 55%.
Subsequently, with the market rallying strongly in December and January, we
resumed our neutral, 50-50 stance. We believe that, going forward, the Fund is
positioned to take advantage of growth opportunities while offering a desired
measure of protection against market downturns.
As of January 31, 1999, the Fund's top five equity holdings were Washington
Mutual, Inc. (1.90%), AMP, Inc. (1.80%), Union Camp Corp. (1.78%), Bell
Atlantic Corp. (1.73%) and CVS Corp. (1.58%).*
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.50%, was 1.28%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/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.
-18-
<PAGE>
The AmSouth Balanced Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPITON>
AmSouth Balanced AmSouth Balanced AmSouth Balanced ) S&P 500 Lehman Brothers Gov't/ Lipper Balanced
Date Fund(Premier) Fund(B Shares) Fund(Classic Stock Index Corporate Bond Index Fund Index
<S> <C> <C> <C> <C> <C> <C>
12/1/91 $10,000 $10,000 $ 9,551 $10,000 $10,000 $10,000
7/1/92 $11,369 $10,869 $10,859 $10,338 $10,511 $10,335
7/1/93 $12,671 $12,271 $12,103 $11,239 $11,670 $11,528
7/1/94 $13,322 $13,022 $12,724 $11,818 $11,655 $11,836
7/1/95 $15,353 $15,053 $14,664 $14,899 $12,836 $13,653
7/1/96 $16,636 $16,436 $15,889 $17,365 $13,517 $14,957
7/1/97 $21,030 $20,930 $20,086 $26,414 $14,975 $19,572
7/1/98 $23,076 $22,873 $22,003 $31,513 $16,183 $21,670
1/1/99 $24,528 $24,180 $23,342 $36,247 $17,114 $23,403
</TABLE>
The Class B contingent deferred sales charge (CDSC) is not included in the
above graph, since the performance is not more than 6 years and the CDSC
would no longer apply.
- ---------------------------------------------
Average Annual Total Return
- ---------------------------------------------
Since
As of 1 5 Inception
January 31, 1999 Year Year (12/19/91)
- ---------------------------------------------
Classic* 6.97% 11.31% 12.65%
- ---------------------------------------------
Premier 12.40% 12.42% 13.43%
- ---------------------------------------------
B Shares** 6.23% 11.84% 13.21%
- ---------------------------------------------
*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 for 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. Classic Shares' performance 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 and voluntarily
reimbursed 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.
-19-
<PAGE>
The AmSouth Limited Maturity Fund
The AmSouth Limited Maturity Fund is managed by John Boston, CFA. Mr. Boston
has 10 years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
High Quality Led to Solid Returns
For the six-month period ended January 31, 1999, the AmSouth Limited Maturity
Fund produced a total return of 4.05% (Classic Shares at NAV)./1/ In
comparison, the Merrill Lynch 1-5-Year Government/Corporate Bond Index
returned 4.35%, and the Lipper Short-Term Investment Grade Debt Index/2/
returned 2.83% for the same six-month period.
During the period higher-quality issues performed better than lower-quality
paper. Our emphasis on investing in top-of-the-line corporate debt, and
avoiding riskier "junk" bonds, not only provided a measure of safety, but also
boosted performance.
Global Concerns Provided Opportunity
The Fund invests primarily in three sectors: U.S. Treasuries, U.S. government
agencies and investment-grade corporate debt. In our last report to you, we
noted that corporate spreads had widened as a result of the crisis in Asia and
the subsequent decline in long-term interest rates.
As the most recent period began, the deteriorating financial situation in
Russia and concern over a worldwide credit crunch led to further spread
widening. We saw this as an opportunity to increase our ownership of corporate
securities. As of January 31, 1999, approximately 85% of the portfolio's net
assets were invested in high-quality corporates, with the remainder invested
in Treasuries and agencies.*
As interest rates fell during the period, the Fund participated in the
resulting price gains. At the same time, we sought to reduce the Fund's
interest-rate risk by allowing the portfolio's average maturity to shorten. As
of January 31, 1999, the Fund's average maturity was 2.5 years, down from 2.9
years six months earlier. The Fund's credit quality was AA.
We Expect a Relatively Stable Environment
We are very comfortable with the Fund's current maturity structure and
significant commitment to corporate paper. Unless we see a major economic
downturn--which we do not foresee in the near future--we will continue to
emphasize corporate bonds, to maximize both yield and total return. One
significant benefit of a short-term, high-quality fund such as ours is that we
are also able to mitigate a great deal of credit risk.
The economy was growing at nearly a 6% annual rate at the end of 1998. So we
went into 1999 with strong economic growth and low inflation, a terrific
combination for the bond market. There have been some problems with foreign
economies, and there is always the risk that difficulties abroad will
negatively impact the United States. However, it is difficult, at this point,
to identify any factors that could derail the domestic economy any time soon.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.00%, was -0.07%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/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.
-20-
<PAGE>
The AmSouth Limited Maturity Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Limited Merrill Lynch AmSouth Limited Lipper Short AmSouth Limited
Maturity Fund 1/5 Year Maturity Fund Investment Grade Maturity Fund
Date (Classic Shares) Government/Corporate Index (Premier Shares) Debt Index (B Shares)
<S> <C> <C> <C> <C> <C>
2/1/89 9,597 10,000 10,000 10,000 10,000
3/30/04 10,255 10,783 10,686 10,640 10,186
3/31/04 10,951 11,608 11,412 11,443 11,012
4/1/04 11,941 12,786 12,442 12,455 12,142
4/2/04 13,308 14,373 13,867 13,829 13,567
4/3/04 14,202 15,397 14,799 14,765 14,599
4/4/04 14,312 15,670 14,914 15,082 14,814
4/5/04 15,406 16,925 16,053 16,093 16,053
4/6/04 16,133 17,842 16,811 16,976 16,811
4/7/04 17,302 19,266 18,029 18,190 18,029
4/8/04 18,329 20,505 19,119 19,230 19,100
1/1/99 19,072 21,438 19,908 19,808 19,874
</TABLE>
The Class B contingent deferred sales charge (CDSC) is not included in the
above graph, since the performance is for more than 6 years and the CDSC
would no longer apply.
- ---------------------------------------------
Average Annual Total Return
- ---------------------------------------------
Since
As of 1 5 Inception
January 31, 1999 Year Year (2/1/89)
- ---------------------------------------------
Classic* 1.95% 4.61% 6.67%
- ---------------------------------------------
Premier 6.34% 5.51% 7.13%
- ---------------------------------------------
B Shares** 1.21% 5.16% 7.11%
- ---------------------------------------------
*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 for 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. Classic Shares' performance 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/Bond
Index is unmanaged and is 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, a
managed index, and the Fund's performance do reflect the deduction of fees for
these value-added services. During the period shown, the Fund waived and
voluntarily reimbursed fees for various expenses. Had these waivers not been
in 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.
-21-
<PAGE>
The AmSouth Government Income Fund
John Boston, CFA, manages the AmSouth Government Income Fund. Mr. Boston has
ten years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
A Mix of GNMAs and Treasuries Provided Competitive Returns
For the six-month period ended January 31, 1999, the AmSouth Government Income
Fund produced a total return of 3.92% (Classic Shares at NAV)./1/ In
comparison, the Lehman Brothers Mortgage Index returned 3.68%, while the
Lipper U.S. Mortgage Fund Index/2/ returned 3.14% for the same six-month
period.
We continued to invest in a mixture of mortgage-backed securities, principally
Ginnie Maes (GNMAs), and intermediate- to long-term U.S. Treasury bonds. We
favor GNMAs because they offer significantly higher yields than Treasuries,
are the highest-quality bonds among mortgage-backed securities and are the
only type of mortgage security backed by the full faith and credit of the U.S.
Government.
During the period, higher-quality debt instruments performed well, and GNMAs
certainly fit into that category. Our emphasis on the highest-quality sector
of the mortgage market enhanced the Fund's performance.
Average Maturity and Allocation Remained Stable
Despite a great deal of volatility in markets around the world, we did not
change our maturity strategy to any dramatic degree over the last six months.
While interest rates came down some during the period, we already had the
portfolio positioned to take advantage of stable or falling rates, and we did
not have to make many additional adjustments. Unlike in previous periods, when
we believed circumstances warranted a shift in the portfolio's average
maturity, the past six months gave us no reason to aggressively lengthen or
shorten our maturity. As of January 31, 1999, the Fund's average maturity was
5.7 years, and its average credit quality was Agency.
Nor did we feel compelled to alter our allocation strategy. At the end of the
period, approximately 62% of the Fund was invested in GNMAs, 19% in
noncallable, government agency debentures, 16% in U.S. Treasury securities and
3% in cash and cash equivalents. This mix reflected only minor shifts from the
portfolio's allocation six months earlier.*
Outlook: A Healthy Economy and Stable Interest Rates
The Federal Reserve Board decided to lower short-term interest rates three
times last fall, but the full impact of that decision probably still is not
reflected in the U.S. economy. Therefore, we believe the economy should
continue to grow, albeit not at the torrid, 6% annualized pace of 1998's
fourth quarter.
Our view on interest rates is neutral. It is our belief that the Fed may
decide to lower rates again. However, we expect rates to remain pretty much
where they are. Therefore, we will take action to boost current income
wherever possible, while maintaining our commitment to a high-quality
portfolio.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.00%, was -0.22%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/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.
-22-
<PAGE>
The AmSouth Government Income Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth Government Income Amsouth Gov Income Lehman Brothers Lipper U.S. Mortgage
Date Fund Classic Shares Fund Premier Shares Mortgage index Fund Index
<S> <C> <C> <C> <C>
10/1/93 $9,600 $10,000 $10,000 $10,000
7/1/94 $9,574 $9,973 $9,967 $9,633
7/1/95 $10,378 $10,811 $10,979 $10,432
7/1/96 $10,884 $11,338 $11,646 $10,951
7/1/97 $11,995 $12,495 $12,896 $12,075
7/1/98 $12,900 $13,443 $13,857 $12,878
1/1/99 $13,406 $13,978 $14,367 $13,282
</TABLE>
- ---------------------------------------------
Average Annual Total Return
- ---------------------------------------------
Since
As of 1 5 Inception
January 31, 1999 Year Year (10/1/93)
- ---------------------------------------------
Classic* 2.41% 5.92% 5.65%
- ---------------------------------------------
Premier 6.66% 6.80% 6.48%
- ---------------------------------------------
*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 for Classic Shares of the Fund.
The performance of the AmSouth Government Income Fund is measured against the
Lehman Brothers Mortgage Index and the Lipper U.S. Mortgage Fund Index. The
Lehman Brothers Mortgage Index is an unmanaged index generally representative
of the mortgage bond market as a whole. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The Lipper U.S. Mortgage Fund Index, a managed
index, and the Fund's performance do reflect the deduction of fees for these
value-added services. During the period shown, the Fund waived and voluntarily
reimbursed fees for various expenses. Had these waivers not been in 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.
-23-
<PAGE>
The AmSouth Bond Fund
Brian Sullivan, CFA, manages the AmSouth Bond Fund. Mr. Sullivan, Senior
Investment Officer for AmSouth Bank serves as Chairman of the Trust Investment
Policy and Strategy Groups. He has 14 years of fixed-income investment
management experience and holds an MBA in finance and a bachelor's degree in
economics.
Outstanding Inflation-Adjusted Returns
For the six-month period ended January 31, 1999, the AmSouth Bond Fund
produced a total return of 5.55% (Classic Shares at NAV)./1/ In comparison,
the Lehman Brothers Government/Corporate Bond Index returned 5.75%, and the
Lipper Corporate A-Rated Debt Fund Index/2/ returned 4.16% for the same six-
month period.
As we started the six-month period, our portfolio was very close to our index
in its average maturity. As the period progressed, we continued to shorten our
average maturity. We felt that interest rates, at that time, had gotten about
as low as we had expected them to get. We decided we could shorten our
maturities and not open ourselves to the risk that interest rates might go a
lot lower. In fact, from October 31 to January 31, interest rates did not fall
markedly.
A Shift to "Spread Product'
We took steps to increase our exposure to agency and corporate bonds. Last
autumn, the additional yield offered by agency and corporate bonds (over
Treasury bonds of like maturity) widened significantly. To take advantage of
this situation, we sold our Treasuries and bought high-quality agency and
corporate bonds. This resulted in higher yields for our shareholders.
As of January 31, 1999, approximately 51.7% of the portfolio's net assets were
invested in corporate issues, 45.0% in U.S. treasuries and government agency
paper and 3.3% in cash and cash equivalents. The securities within the Fund
maintained an average credit quality of AAA, with an average maturity of 7.5
years.*
Bonds Could Remain Relatively Stable
The world's economies have been plagued by a great deal of turmoil over the
last several years. Many of these crises have affected, or at least
threatened, the bond market. Having seen the markets work through many
problems during the last six months, we are now somewhat less worried about
the impact these difficulties might have on the U.S. economy. The recent
problems in Latin America are an adjunct to the Asian crisis; they are a
factor and a concern. In our view, they do not pose the same magnitude of risk
as the near-catastrophe we saw in Asia.
The Federal Reserve Board's decision to lower short-term interest rates three
times during the period was reactive. In an effort to ease a worldwide credit
crunch, the Fed relaxed its previously restrictive policy. We believe the Fed
may lower interest rates once again this year. However, any move has been
postponed by the robustness of the U.S. economy.
If, as we anticipate, short-term rates decline and long-term rates remain
static, we believe fixed-income investors will get their best returns from
holding debt instruments with maturities between five and ten years--right
where we are on the yield curve.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.00%, was 1.33%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/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.
-24-
<PAGE>
The AmSouth Bond Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AmSouth AmSouth AmSouth Lehman Brothers Lipper Corporate
Bond Fund Bond Fund Bond Fund Government/ A Rated
Date (Classic Shares)* (Premier Shares) (B Shares)** Corporate Bond Index Debt Funds Index
<S> <C> <C> <C> <C> <C>
01/01/89 $ 9,600 $10,000 $10,000 $10,000 $10,000
07/01/89 $10,507 $10,945 $10,445 $11,004 $10,888
07/01/90 $11,088 $11,551 $11,550 $11,690 $11,448
07/01/91 $11,971 $12,470 $12,470 $12,888 $12,583
07/01/92 $13,930 $14,511 $14,511 $14,904 $14,663
07/01/93 $15,300 $15,934 $15,934 $16,548 $16,335
07/01/94 $15,355 $15,970 $15,970 $16,527 $16,128
07/01/95 $16,815 $17,512 $17,512 $18,200 $17,747
07/01/96 $17,550 $18,277 $18,277 $19,166 $18,658
07/01/97 $19,388 $20,192 $20,192 $21,234 $20,796
07/01/98 $20,832 $21,715 $21,715 $22,947 $22,314
01/01/99 $21,989 $22,933 $22,631 $24,265 $23,242
</TABLE>
The Class B contingent deferred sales charge (CDSC) is not included in the
above graph, since the performance is for more than 6 years and the CDSC
would no longer apply.
- ------------------------------------------
Average Annual Total Return
- ------------------------------------------
As of 1 5 10
January 31, 1999 Year Year Year
- ------------------------------------------
Classic* 3.75% 5.94% 8.20%
- ------------------------------------------
Premier 8.16% 6.84% 8.65%
- ------------------------------------------
B Shares** 2.03% 6.25% 8.51%
- ------------------------------------------
*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 for 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. Classic Shares' performance 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 and the Lipper Corporate A-Rated Debt
Fund Index. The Lehman Brothers Government/Corporate Bond Index is an
unmanaged index generally representative of the total return of long-term
government and corporate bonds. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Lipper Corporate A-Rated Debt Fund Index, a managed
index, and the Fund's performance do reflect the deduction of fees for these
value-added services. During the period shown, the Fund waived and voluntarily
reimbursed fees for various expenses. Had these waivers not been in 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.
-25-
<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 holds an MBA and a bachelor's
degree in economics.
A Period of Strong Performance
For the six-month period ended January 31, 1999, the Fund produced a total
return of 4.77% (Classic Shares at NAV)./1/ In comparison, the Merrill Lynch
3-7-Year Municipal Bond Index returned 4.51%, while the Lipper Intermediate
Municipal Debt Fund Index/2/ returned 4.28% for the same six-month period.
A number of factors contributed to our solid returns. We started the period
with a maturity structure that was a little bit longer than average. We also
had very high credit quality, which served us well. The municipal market
provided very stable yields, in our opinion. We did not see the price swings
in munis that have been characteristic of the Treasury market. During the
entire period, which was extremely volatile for stocks and many taxable bond
funds, our Fund's net asset value fluctuated within a very narrow range.
In addition, the Federal Reserve Board lowered short-term interest rates three
times during the period. While interest rate moves do not have as great an
impact on muni bonds as they would on taxable debt instruments, we still
benefited somewhat from the fall in rates.
An Emphasis on Alabama Bonds
We continued to keep approximately 55% to 60% of the Fund's assets invested in
municipal bonds issued within the state of Alabama. The remainder was invested
in bonds from other states throughout the country.*
New issues in Alabama remained scarce, for a number of reasons. We saw a lower
level of issuance during the period in the muni market in general. At this
time of year, when new state administrations come into office, historically
they have put borrowing plans on hold temporarily. Also, most state and local
governments have experienced several years of strong tax collections. When tax
revenues are up, governments are less likely to need to borrow in the
municipal market.
As of January 31, 1999, the securities within the Fund maintained an average
credit quality of AA, with an average maturity of 6.7 years.
We Strive to Maintain a High-Quality Portfolio
Looking forward, we anticipate that quality spreads (the extra yields that
might be offered along with lower-rated issues) will remain narrow.
Consequently, we see little reason to take on any additional risk, and we will
continue to focus on maintaining a high-quality portfolio. We also do not
foresee any signs of an economic slowdown in the United States. This could
mean that the muni market will remain strong for some time and continue to
serve as an island of stability in our shareholders' portfolios.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.00%, was 0.61%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
/2/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.
-26-
<PAGE>
The AmSouth Municipal Bond Fund+
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers Municipa
AmSouth Municipal l Bond Index/Merrill AmSouth Municipal
Bond Fund Lynch 3/7 Year Lipper Intermediate Bond Fund
Date (Classic Shares) Municipal Bond Index Municiple Debt Index (Premier Shares)
<S> <C> <C> <C> <C>
7/1/97 $9,600 $10,000 $10,000 $10,000
7/1/98 $9,998 $10,480 $10,468 $10,449
1/1/99 $10,491 $10,953 $10,941 $10,942
</TABLE>
- --------------------------------------
Average Annual Total Return
- --------------------------------------
As of 1 Since
January 31, 1999 Year Inception
- --------------------------------------
Classic* 1.72% 5.95%
- --------------------------------------
Premier 6.11% 6.14%
- --------------------------------------
*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 for Classic Shares of the Fund.
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, a managed index, and the Fund's performance do
reflect the deduction of fees for these value-added services. During the
period shown, the Fund waived and voluntarily reimbursed fees for various
expenses. Had these waivers not been in 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.
-27-
<PAGE>
The AmSouth Florida Tax-Free Fund+,++
Steve L. Cass manages the AmSouth Florida Tax-Free Fund. Mr. Cass has four
years of experience as an investment portfolio manager and holds a bachelor's
degree in economics.
Generous Tax-Free Income
For the six-month period ended January 31, 1999, the AmSouth Florida Tax-Free
Fund produced a total return of 4.43% (Classic Shares at NAV)./1/ In
comparison, the Merrill Lynch 3-7-Year Municipal Bond Index returned 4.51% for
the same six-month period. The Fund remained less volatile than either the
stock market or the long-term taxable bond market, which helped to provide
shareholders with current income that was exempt from federal income tax and
the Florida intangibles taxes.
We maintained a longer-than-average duration throughout the period. The
duration of a static portfolio would naturally grow shorter as time
progressed. Therefore, as we bought new securities, we took steps to keep the
portfolio's duration in line with our targets.
During the period, the Federal Reserve Board lowered short-term interest rates
three times, which had a positive impact on the Fund. We also saw quite a bit
of new issuance throughout the period, so we never experienced the type of
shortage that could result in price volatility.
Quality and Safety Remain Our Hallmark
We continued to focus on quality. The overall muni environment in Florida did
not significantly change during the last six months, and there was not a large
premium being paid for taking on additional credit risk. Therefore, we did not
purchase lower-rated issues.
We generally stayed away from housing and hospital bond issues, for two
reasons. Hospitals and the housing markets are independent of the overall
municipal environment and can be economically cyclical. The structure on many
of these types of bonds is often unfavorable. So while housing and hospital
bonds offer slightly more yield, we do not believe they offer enough of a
premium to compensate for the additional risks involved. Even if such a bond
is insured, a downgrade of the underlying credit can negatively effect the
bond's liquidity, which certainly does not add to its attractiveness.
As of January 31, 1999, the securities within the Fund maintained an average
credit quality of AA1, with an average maturity of 5.8 years.
Positioned to Protect Against Interest-Rate Spikes
We are holding a number of higher-coupon bonds, which could provide a measure
of cushion if interest rates were to creep back up. With higher coupons, these
bonds would still be attractive in the marketplace, and we do not expect to
see a lot of price devaluation, even at higher interest rate levels.*
Overall, our view on interest rates is neutral. If there were to be a downturn
in consumer spending or a problem with the stock market, the Federal Reserve
Board could lower rates further. However, an economic recovery overseas could
work to push rates higher, so we remain neutral.
+ 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 the companies they
invest in are located in one geographical location.
/1/The Fund's Classic Shares' six-month return, with the maximum sales charge
of 4.00%, was 0.21%. For the same period, the total return set forth may
reflect the waiver of a portion of the Fund's advisory or administrative
service fees. In such instances, and without waiver of fees, total return
would have been lower.
* The Fund's portfolio composition is subject to change.
-28-
<PAGE>
The AmSouth Florida Tax-Free Fund+,++
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date AmSouth Florida Tax Free Fund AmSouth Florida Tax-Free Fund
(Classic Shares) Merrill Lynch 3/7 Year Municipal Bond Index (Premier Shares)
<S> <C> <C> <C>
09/01/94 $9,597 $10,000 $10,000
07/01/95 $10,222 $10,668 $10,652
07/01/96 $10,654 $11,144 $11,102
07/01/97 $11,388 $11,941 $11,867
07/01/98 $11,896 $12,514 $12,420
01/01/99 $12,423 $13,079 $12,964
</TABLE>
- ----------------------------------------------
Average Annual Total Return
- ----------------------------------------------
Since
As of 1 Inception
January 31, 1999 Year (9/30/94)
- ----------------------------------------------
Classic* 1.72% 5.13%
- ----------------------------------------------
Premier 6.09% 6.17%
- ----------------------------------------------
*Reflects a 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 for Classic Shares of the Fund.
The performance of the AmSouth Florida Tax-Free Fund is measured against the
Merrill Lynch 3-7-Year Municipal Bond Index, an unmanaged index generally
representative of intermediate-term municipal bonds. The index does not
reflect the deduction of 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 and voluntarily reimbursed 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.
-29-
<PAGE>
The AmSouth Money Market Funds
The AmSouth Money Market Funds are managed by John Boston, CFA. Mr. Boston has
ten years of experience as a fixed-income manager. He holds a bachelor's
degree in finance.
Interest Rate Cuts Put Pressure on Yields
During the six-month period ended January 31, 1999, the Federal Reserve Board
lowered the fed funds rate--the rate banks charge one another for overnight
loans--three times. After the third cut, the rate stood at 4.75%, down from
5.50% at the beginning of the period. The series of cuts had a gradual impact
on the yields we generated in the money market funds. Because the high-quality
debt instruments we purchase for the funds are situated at the short end of
the yield curve, the Fed's action pushed down the yields available on short-
term paper. However, with inflation at remarkably low levels, shareholders
were treated to "real returns" (total returns minus inflation) that were
attractive on a historical basis.
. As of January 31, 1999, the Prime Obligations Fund's average maturity was 54
days, compared to 63 days on July 31, 1998, and 49 days on January 31,
1998.*
. As of January 31, 1999, the U.S. Treasury Fund's average maturity was 50
days, compared to 48 days on July 31, 1998, and 46 days on January 31,
1998.*
. As of January 31, 1999, the Tax-Exempt Fund's+ average maturity was 54 days,
compared to 81 days on July 31, 1998, and 46 days on January 31, 1998.*
. As of January 31, 1999, the Institutional Prime Obligations Fund's average
maturity was 23 days.*
The Institutional Prime Obligations Fund commenced operations on September 15,
1998.
An investment in the Prime Obligations, the U.S. Treasury, the Tax Exempt or
the Institutional Prime Obligations Money Market Funds is not insured or
guaranteed by the FDIC or any other 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.
+ The Fund's income may be subject to the federal alternative minimum tax and
certain state and local taxes.
* The composition of the Fund's portfolio is subject to change.
-30-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
January 31, 1999
(Amounts in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Equity Enhanced Capital
Income Equity Market Growth
Fund Fund Fund Fund
------- ---------- -------- -------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $36,624;
$688,665; $11,965 and $19,198, re-
spectively).......................... $42,567 $1,038,336 $14,742 $24,829
Cash.................................. -- -- -- 1,729
Interest and dividends receivable..... 86 1,803 18 14
Receivable for capital shares issued.. 9 36 80 61
Receivable from brokers for invest-
ments sold........................... 539 3,403 -- --
Net variation margin receivable on
open future contracts................ -- -- 12 --
Prepaid expenses and other assets..... 7 14 10 8
------- ---------- ------- -------
Total Assets....................... 43,208 1,043,592 14,862 26,641
------- ---------- ------- -------
LIABILITIES:
Payable for capital shares redeemed... 76 313 42 8
Dividends payable..................... 8 1,114 11 --
Payable to brokers for investments
purchased............................ 482 -- -- 1,053
Accrued expenses and other payables:
Investment advisory fees............. 29 709 5 15
Administration fees.................. 1 28 -- 1
Distribution fees.................... 13 27 3 7
Accounting fees...................... 1 4 -- --
Transfer agent fees.................. 2 16 -- 1
Custodian fees....................... -- 12 -- --
Other................................ 5 74 2 1
------- ---------- ------- -------
Total Liabilities.................. 617 2,297 63 1,086
------- ---------- ------- -------
NET ASSETS:
Capital............................... 37,488 646,138 11,950 19,976
Undistributed (distributions in excess
of) net investment income............ (4) (78) (2) (51)
Net unrealized appreciation (deprecia-
tion) from investments............... 5,943 349,671 2,793 5,631
Undistributed (distributions in excess
of) net realized gains from invest-
ment transactions.................... (836) 45,564 58 (1)
------- ---------- ------- -------
Net Assets......................... $42,591 $1,041,295 $14,799 $25,555
======= ========== ======= =======
Net Assets
Classic Shares....................... $24,672 $ 75,512 $12,998 $12,033
Premier Shares....................... 9,830 955,542 549 8,285
B Shares............................. 8,089 10,241 1,252 5,237
------- ---------- ------- -------
Total.............................. $42,591 $1,041,295 $14,799 $25,555
======= ========== ======= =======
Outstanding units of beneficial inter-
est (shares)
Classic Shares....................... 1,948 3,194 980 849
Premier Shares....................... 776 40,405 41 583
B Shares............................. 641 434 94 374
------- ---------- ------- -------
Total.............................. 3,365 44,033 1,115 1,806
======= ========== ======= =======
Net asset value
Classic Shares--redemption price per
share............................... $ 12.67 $ 23.64 $ 13.27 $ 14.17
======= ========== ======= =======
Premier Shares--offering and redemp-
tion price per share................ $ 12.67 $ 23.65 $ 13.27 $ 14.22
======= ========== ======= =======
B Shares*--offering price per share.. $ 12.63 $ 23.57 $ 13.25 $ 14.01
======= ========== ======= =======
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)........... $ 13.27 $ 24.75 $ 13.90 $ 14.84
======= ========== ======= =======
</TABLE>
- --------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-31-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
January 31, 1999
(Amounts in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Select Regional Small
Equity Equity Cap Balanced
Fund Fund Fund Fund
------- -------- ------- --------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $13,809;
$81,121; $8,316 and $303,542, respec-
tively)................................. $15,581 $110,830 $ 9,571 $382,041
Interest and dividends receivable........ 6 143 1 3,061
Receivable for capital shares issued..... 40 -- -- 553
Receivable from brokers for investments
sold.................................... 111 -- 674 850
Prepaid expenses and other assets........ 7 13 8 5
------- -------- ------- --------
Total Assets.......................... 15,745 110,986 10,254 386,510
------- -------- ------- --------
LIABILITIES:
Payable for capital shares redeemed...... 39 329 -- 92
Dividends payable........................ -- -- -- 448
Payable to brokers for investments pur-
chased.................................. 431 -- 820 --
Accrued expenses and other payables:
Investment advisory fees................ 10 79 9 261
Administration fees..................... -- 3 -- 11
Distribution fees....................... 2 10 1 18
Accounting fees......................... 1 1 1 2
Transfer agent fees..................... -- 3 -- 6
Custodian fees.......................... -- 2 -- 5
Other................................... 3 11 6 27
------- -------- ------- --------
Total Liabilities..................... 486 438 837 870
------- -------- ------- --------
NET ASSETS:
Capital.................................. 13,390 78,634 10,110 296,244
Undistributed (distributions in excess
of) net investment income............... (9) (15) (40) 30
Net unrealized appreciation (deprecia-
tion) from investments.................. 1,772 29,709 1,255 78,499
Undistributed (distributions in excess
of) net realized gains from investment
transactions............................ 106 2,220 (1,908) 10,867
------- -------- ------- --------
Net Assets............................ $15,259 $110,548 $ 9,417 $385,640
======= ======== ======= ========
Net Assets
Classic Shares.......................... $13,870 $ 31,951 $ 1,379 $ 46,157
Premier Shares.......................... 692 76,856 7,061 331,322
B Shares................................ 697 1,741 977 8,161
------- -------- ------- --------
Total................................. $15,259 $110,548 $ 9,417 $385,640
======= ======== ======= ========
Outstanding units of beneficial interest
(shares)
Classic Shares.......................... 1,165 1,355 155 3,148
Premier Shares.......................... 58 3,253 790 22,599
B Shares................................ 59 74 110 558
------- -------- ------- --------
Total................................. 1,282 4,682 1,055 26,305
======= ======== ======= ========
Net asset value
Classic Shares--redemption price per
share.................................. $ 11.91 $ 23.59 $ 8.92 $ 14.66
======= ======== ======= ========
Premier Shares--offering and redemption
price per share........................ $ 11.91 $ 23.63 $ 8.94 $ 14.66
======= ======== ======= ========
B Shares*--offering price per share..... $ 11.88 $ 23.41 $ 8.86 $ 14.63
======= ======== ======= ========
Maximum sales charge (Classic Shares).... 4.50% 4.50% 4.50% 4.50%
------- -------- ------- --------
Maximum offering price (100%/(100%-maxi-
mum sales charge) of net asset value ad-
justed to the nearest cent) per share
(Classic Shares)........................ $ 12.47 $ 24.70 $ 9.34 $ 15.35
======= ======== ======= ========
</TABLE>
- --------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-32-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
January 31, 1999
(Amounts in thousands, except per share amounts)
(Unaudited)
<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
$107,203; $9,096; $336,048;
$306,145 and $66,799,
respectively)............... $110,334 $9,444 $355,047 $323,220 $70,018
Interest and dividends re-
ceivable.................... 2,185 79 5,527 4,796 749
Receivable for capital shares
issued...................... -- 10 27 -- --
Prepaid expenses and other
assets...................... 2 1 4 3 5
-------- ------ -------- -------- -------
Total Assets.............. 112,521 9,534 360,605 328,019 70,772
-------- ------ -------- -------- -------
LIABILITIES:
Payable for capital shares
redeemed.................... 3 5 4 -- --
Dividends payable............ 436 31 1,485 971 198
Payable to brokers for in-
vestments purchased......... -- -- 3,066 -- 1,046
Accrued expenses and other
payables:
Investment advisory fees.... 48 2 149 110 17
Administration fees......... 2 -- 6 5 1
Distribution fees........... -- 2 1 -- 1
Accounting fees............. 1 -- 1 2 --
Transfer agent fees......... 1 -- 3 2 --
Custodian fees.............. 1 -- 4 4 1
Other....................... 9 4 31 36 10
-------- ------ -------- -------- -------
Total Liabilities......... 501 44 4,750 1,130 1,274
-------- ------ -------- -------- -------
NET ASSETS:
Capital...................... 110,223 9,538 335,768 308,599 66,211
Undistributed (distributions
in excess of) net investment
income...................... 35 2 119 69 15
Net unrealized appreciation
(depreciation) from invest-
ments....................... 3,131 348 18,999 17,075 3,219
Undistributed (distributions
in excess of) net realized
gains from investment
transactions................ (1,369) (398) 969 1,146 53
-------- ------ -------- -------- -------
Net Assets................ $112,020 $9,490 $355,855 $326,889 $69,498
======== ====== ======== ======== =======
Net Assets
Classic Shares.............. $ 2,096 $6,916 $ 7,250 $ 2,139 $ 8,355
Premier Shares.............. 109,900 2,574 346,740 324,750 61,143
B Shares.................... 24 -- 1,865 -- --
-------- ------ -------- -------- -------
Total..................... $112,020 $9,490 $355,855 $326,889 $69,498
======== ====== ======== ======== =======
Outstanding units of benefi-
cial interest (shares)
Classic Shares.............. 198 692 646 208 785
Premier Shares.............. 10,406 258 30,895 31,526 5,745
B Shares.................... 2 -- 166 -- --
-------- ------ -------- -------- -------
Total..................... 10,606 950 31,707 31,734 6,530
======== ====== ======== ======== =======
Net asset value
Classic Shares--redemption
price per share............ $ 10.56 $ 9.99 $ 11.22 $ 10.30 $ 10.64
======== ====== ======== ======== =======
Premier Shares--offering
and redemption price per
share...................... $ 10.56 $ 9.99 $ 11.22 $ 10.30 $ 10.64
======== ====== ======== ======== =======
B Shares*--offering price
per share.................. $ 10.56 -- $ 11.20 -- --
======== ====== ======== ======== =======
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)..................... $ 11.00 $10.41 $ 11.69 $ 10.73 $ 11.08
======== ====== ======== ======== =======
</TABLE>
- --------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-33-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Assets and Liabilities
January 31, 1999
(Amounts in thousands, except per share amounts)
(Unaudited)
<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..... $198,052 $550,057 $ 87,429 $96,406
Repurchase agreements, at cost..... 102,465 124,306 48,855 --
-------- -------- -------- -------
Total investments............... 300,517 674,363 136,284 96,406
Interest receivable................ 2,231 2,177 23 708
Receivable from brokers for invest-
ments sold........................ 10,000 -- -- --
Prepaid expenses and other assets.. 23 9 6 2
-------- -------- -------- -------
Total Assets.................... 312,771 676,549 136,313 97,116
-------- -------- -------- -------
LIABILITIES:
Dividends payable.................. 1,018 2,550 526 210
Accrued expenses and other
payables:
Investment advisory fees.......... 104 229 9 16
Administration fees............... 9 19 2 3
Distributions fees................ 1 13 -- 3
Accounting fees................... 2 3 1 1
Transfer agent fees............... -- -- 2 1
Custodian fees.................... 5 6 1 1
Other............................. 30 56 14 6
-------- -------- -------- -------
Total Liabilities............... 1,169 2,876 555 241
-------- -------- -------- -------
NET ASSETS:
Capital............................ 311,594 673,680 135,758 96,876
Undistributed (distributions in ex-
cess of) net investment income.... 7 -- -- --
Undistributed (distributions in
excess of) net realized gains from
investment transactions........... 1 (7) -- (1)
-------- -------- -------- -------
Net Assets...................... $311,602 $673,673 $135,758 $96,875
======== ======== ======== =======
Net Assets
Classic Shares (a)................ $ 5,942 $135,180 $135,758 $27,877
Premier Shares.................... 305,660 538,362 -- 68,998
B Shares.......................... -- 131 -- --
-------- -------- -------- -------
Total........................... $311,602 $673,673 $135,758 $96,875
======== ======== ======== =======
Outstanding units of beneficial in-
terest (shares)
Classic Shares (a)................ 5,941 135,186 135,758 27,878
Premier Shares.................... 305,653 538,377 -- 68,999
B Shares.......................... -- 131 -- --
-------- -------- -------- -------
Total........................... 311,594 673,694 135,758 96,877
======== ======== ======== =======
Net asset value--offering and re-
demption price per share
Classic Shares (a)................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =======
Premier Shares.................... $ 1.00 $ 1.00 -- $ 1.00
======== ======== ======== =======
B Shares*......................... -- $ 1.00 -- --
======== ======== ======== =======
</TABLE>
- --------
(a) Class I shares for the Institutional Prime Obligations Fund.
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
-34-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Six Months Ended January 31, 1999
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Equity Enhanced Capital
Income Equity Market Growth
Fund Fund Fund (a) Fund
------ ------- -------- -------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.............................. $ 92 $ 800 $ 3 $ --
Dividend income.............................. 483 10,448 70 70
------ ------- ------ ------
Total Income............................... 575 11,248 73 70
------ ------- ------ ------
Expenses:
Investment advisory fees..................... 160 4,052 20 70
Administration fees.......................... 40 1,013 11 18
Distribution fees............................ 69 133 13 31
Accounting fees.............................. 25 164 16 28
Transfer agent fees.......................... 24 133 11 19
Custodian fees............................... 1 32 -- 1
Trustee fees and expenses.................... -- 11 -- --
Other........................................ 19 122 3 13
------ ------- ------ ------
Total Expenses............................. 338 5,660 74 180
Expenses voluntarily reduced................. (32) (25) (40) (59)
------ ------- ------ ------
Net Expenses............................... 306 5,635 34 121
------ ------- ------ ------
Net Investment Income (Loss)................. 269 5,613 39 (51)
------ ------- ------ ------
Realized/Unrealized Gains (Losses) From
Investments:
Net realized gains (losses) from investment
transactions................................ (835) 48,198 90 --
Net change in unrealized appreciation
(depreciation) from investments............. 4,206 18,587 2,793 4,321
------ ------- ------ ------
Net realized/unrealized gains (losses) from
investments................................. 3,371 66,785 2,883 4,321
------ ------- ------ ------
Change in net assets resulting from
operations.................................. $3,640 $72,398 $2,922 $4,270
====== ======= ====== ======
</TABLE>
- --------
(a) For the period from September 1, 1998 (commencement of operations) through
January 31, 1999.
See notes to financial statements.
-35-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Six Months Ended January 31, 1999
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Select Regional Small
Equity Equity Cap Balanced
Fund (a) Fund Fund Fund
-------- -------- ------- --------
<S> <C> <C> <C> <C>
Investment Income:
Interest income........................... $ -- $ -- $ 10 $ 5,185
Dividend income........................... 68 1,024 11 2,339
------ -------- ------- -------
Total Income............................ 68 1,024 21 7,524
------ -------- ------- -------
Expenses:
Investment advisory fees.................. 40 474 44 1,520
Administration fees....................... 12 118 7 380
Distribution fees......................... 13 53 6 90
Accounting fees........................... 16 30 28 73
Transfer agent fees....................... 11 35 16 61
Custodian fees............................ -- 4 -- 12
Trustee fees and expenses................. -- 2 -- 4
Other..................................... 4 34 10 48
------ -------- ------- -------
Total Expenses.......................... 96 750 111 2,188
Expenses voluntarily reduced or
reimbursed............................... (45) (25) (51) (25)
------ -------- ------- -------
Net Expenses............................ 51 725 60 2,163
------ -------- ------- -------
Net Investment Income (Loss).............. 17 299 (39) 5,361
------ -------- ------- -------
Realized/Unrealized Gains (Losses) From
Investments:
Net realized gains (losses) from
investment transactions.................. 112 2,220 (1,329) 13,282
Net change in unrealized appreciation
(depreciation) from investments.......... 1,772 (13,207) 1,335 4,107
------ -------- ------- -------
Net realized/unrealized gains (losses)
from investments......................... 1,884 (10,987) 6 17,389
------ -------- ------- -------
Change in net assets resulting from
operations............................... $1,901 $(10,688) $ (33) $22,750
====== ======== ======= =======
</TABLE>
- --------
(a) For the period from September 1, 1998 (commencement of operations) through
January 31, 1999.
See notes to financial statements.
-36-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Six Months Ended January 31, 1999
(Amounts in thousands)
(Unaudited)
<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................ $3,535 $302 $10,389 $ 7,577 $1,515
Dividend income................ 44 5 276 108 23
------ ---- ------- ------- ------
Total Income................. 3,579 307 10,665 7,685 1,538
------ ---- ------- ------- ------
Expenses:
Investment advisory fees....... 372 33 1,133 1,074 218
Administration fees............ 115 10 348 330 67
Distribution fees.............. 5 10 15 3 11
Accounting fees................ 31 20 68 64 25
Transfer agent fees............ 22 12 51 43 21
Custodian fees................. 3 -- 10 10 2
Trustee fees and expenses...... 1 -- 4 3 1
Other.......................... 16 3 46 50 6
------ ---- ------- ------- ------
Total Expenses............... 565 88 1,675 1,577 351
Expenses voluntarily reduced... (155) (54) (431) (562) (184)
------ ---- ------- ------- ------
Net Expenses................. 410 34 1,244 1,015 167
------ ---- ------- ------- ------
Net Investment Income.......... 3,169 273 9,421 6,670 1,371
------ ---- ------- ------- ------
Realized/Unrealized Gains
(Losses) From Investments:
Net realized gains (losses)
from investment transactions.. (15) 13 3,296 1,667 234
Net change in unrealized
appreciation (depreciation)
from investments.............. 1,406 110 6,040 6,960 1,290
------ ---- ------- ------- ------
Net realized/unrealized gains
(losses) from investments..... 1,391 123 9,336 8,627 1,524
------ ---- ------- ------- ------
Change in net assets resulting
from operations............... $4,560 $396 $18,757 $15,297 $2,895
====== ==== ======= ======= ======
</TABLE>
See notes to financial statements.
-37-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Operations
For the Six Months Ended January 31, 1999
(Amounts in thousands)
(Unaudited)
<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..................... $7,835 $18,795 $2,211 $1,357
Dividend income..................... -- -- 135 97
------ ------- ------ ------
Total Income...................... 7,835 18,795 2,346 1,454
------ ------- ------ ------
Expenses:
Investment advisory fees............ 634 1,392 91 175
Administration fees................. 317 696 45 88
Distribution fees................... 8 162 -- 33
Accounting fees..................... 54 116 15 25
Transfer agent fees................. 47 85 14 19
Custodian fees...................... 11 20 3 3
Trustee fees and expenses........... 3 7 1 1
Other............................... 46 79 21 11
------ ------- ------ ------
Total Expenses.................... 1,120 2,557 190 355
Expenses voluntarily reduced........ (21) (122) (96) (128)
------ ------- ------ ------
Net Expenses...................... 1,099 2,435 94 227
------ ------- ------ ------
Net Investment Income............... 6,736 16,360 2,252 1,227
------ ------- ------ ------
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......................... $6,736 $16,362 $2,252 $1,228
====== ======= ====== ======
</TABLE>
- --------
(a) For the period from September 15, 1998 (commencement of operations) through
January 31, 1999.
See notes to financial statements.
-38-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Equity Income Enhanced Market Capital Growth
Fund Equity Fund Fund Fund
-------------------- ----------------------- --------------- --------------------
Six Months Year Six Months Year Period Six Months Period
Ended Ended Ended Ended Ended Ended Ended
January 31, July 31, January 31, July 31, January 31, January 31, July 31,
1999 1998 1999 1998 1999 (b) 1999 1998 (a)
----------- -------- ----------- ---------- --------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
From Investment Activi-
ties:
Operations:
Net investment income
(loss)................ $ 269 $ 670 $ 5,613 $ 12,002 $ 39 $ (51) $ (39)
Net realized gains
(losses) from
investment
transactions.......... (835) 1,649 48,198 124,775 90 -- 177
Net change in
unrealized
appreciation
(depreciation) from
investments........... 4,206 (405) 18,587 (21,447) 2,793 4,321 1,310
------- ------- ---------- ---------- ------- ------- -------
Change in net assets
resulting from
operations............. 3,640 1,914 72,398 115,330 2,922 4,270 1,448
------- ------- ---------- ---------- ------- ------- -------
Distributions to Classic
Shareholders:
From net investment
income................ (175) (500) (315) (1,668) (39) -- --
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................ (69) (132)(c) (5,351) (10,624)(c) (1)(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................ (30) (53)(d) (11) (18)(d) (1)(f) -- --
From net realized gains
from investment
transactions.......... (167) (67)(d) (935) (85)(d) (2)(f) (31) --
------- ------- ---------- ---------- ------- ------- -------
Change in net assets
from shareholder
distributions.......... (1,150) (1,706) (108,521) (63,081) (73) (140) --
------- ------- ---------- ---------- ------- ------- -------
Capital Transactions:
Proceeds from shares
issued................ 4,919 25,509 109,190 190,614 12,163 7,759 15,506
Dividends reinvested... 983 1,376 24,113 15,125 61 101 --
Cost of shares
redeemed.............. (8,307) (6,860) (84,554) (204,304) (274) (2,456) (933)
------- ------- ---------- ---------- ------- ------- -------
Change in net assets
from share
transactions........... (2,405) 20,025 48,749 1,435 11,950 5,404 14,573
------- ------- ---------- ---------- ------- ------- -------
Change in net assets.... 85 20,233 12,626 53,684 14,799 9,534 16,021
Net Assets:
Beginning of period.... 42,506 22,273 1,028,669 974,985 -- 16,021 --
------- ------- ---------- ---------- ------- ------- -------
End of period.......... $42,591 $42,506 $1,041,295 $1,028,669 $14,799 $25,555 $16,021
======= ======= ========== ========== ======= ======= =======
Share Transactions:
Issued................. 420 2,121 4,684 8,021 1,133 642 1,467
Reinvested............. 85 118 1,079 664 5 8 --
Redeemed............... (716) (563) (3,590) (8,575) (22) (225) (87)
------- ------- ---------- ---------- ------- ------- -------
Change in shares........ (211) 1,676 2,173 110 1,116 425 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
January 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 14, 1998 (commencement of operations) through
January 31, 1999.
(f) For the period from September 2, 1998 (commencement of operations) through
January 31, 1999.
See notes to financial statements.
-39-
<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 Six Months Year Six Months Period Six Months Year
Ended Ended Ended Ended Ended Ended Ended
January 31, January 31, July 31, January 31, July 31, January 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)................ $ 17 $ 299 $ 520 $ (39) $ (19) $ 5,361 $ 10,904
Net realized gains
(losses) from
investment
transactions.......... 112 2,220 8,874 (1,329) (579) 13,282 36,908
Net change in
unrealized
appreciation
(depreciation) from
investments........... 1,772 (13,207) (9,341) 1,335 (80) 4,107 (13,602)
------- -------- -------- ------ ------ -------- --------
Change in net assets
resulting from
operations............. 1,901 (10,688) 53 (33) (678) 22,750 34,210
------- -------- -------- ------ ------ -------- --------
Distributions to Classic
Shareholders:
From net investment
income................ (26) (74) (133) -- -- (636) (2,131)
In excess of net
investment income..... -- -- (8) -- -- -- --
From net realized gains
from investment
transactions.......... (6) (2,101) (1,577) -- -- (3,540) (3,102)
Distributions to Premier
Shareholders:
From net investment
income................ -- (238) (390)(c) -- -- (c) (4,967) (8,628)(c)
In excess of net
investment income..... -- -- (18)(c) -- -- (c) -- (1)(c)
Tax return of capital.. -- -- -- (c) -- (1)(c) -- -- (c)
From net realized gains
from investment
transactions.......... -- (4,935) (3,440)(c) -- -- (c) (25,304) (19,894)(c)
Distributions to Class B
Shareholders:
From net investment
income................ -- (1) (1)(d) -- -- (68) (43)(e)
From net realized gains
from investment
transactions.......... -- (110) (26)(d) -- -- (554) (71)(e)
------- -------- -------- ------ ------ -------- --------
Change in net assets
from shareholder
distributions.......... (32) (7,459) (5,593) -- (1) (35,069) (33,870)
------- -------- -------- ------ ------ -------- --------
Capital Transactions:
Proceeds from shares
issued................ 13,856 8,128 31,703 2,735 8,135 40,816 96,873
Dividends reinvested... 31 3,631 3,015 -- -- 20,982 22,522
Cost of shares
redeemed.............. (497) (22,671) (39,409) (600) (141) (45,588) (110,755)
------- -------- -------- ------ ------ -------- --------
Change in net assets
from share
transactions........... 13,390 (10,912) (4,691) 2,135 7,994 16,210 8,640
------- -------- -------- ------ ------ -------- --------
Change in net assets.... 15,259 (29,059) (10,231) 2,102 7,315 3,891 8,980
Net Assets:
Beginning of period.... -- 139,607 149,838 7,315 -- 381,749 372,769
------- -------- -------- ------ ------ -------- --------
End of period.......... $15,259 $110,548 $139,607 $9,417 $7,315 $385,640 $381,749
======= ======== ======== ====== ====== ======== ========
Share Transactions:
Issued................. 1,323 341 1,076 330 815 2,751 6,447
Reinvested............. 3 155 105 -- -- 1,462 1,540
Redeemed............... (44) (947) (1,354) (76) (15) (3,054) (7,345)
------- -------- -------- ------ ------ -------- --------
Change in shares........ 1,282 (451) (173) 254 800 1,159 642
======= ======== ======== ====== ====== ======== ========
</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
January 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) The Regional Equity Fund Class B Shares commenced operations on September
3, 1997.
(e) The Balanced Fund Class B Shares commenced operations on September 2, 1997.
See notes to financial statements.
-40-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Limited Maturity Government
Fund Income Fund Bond Fund
-------------------- -------------------- --------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
January 31, July 31, January 31, July 31, January 31, July 31,
1999 1998 1999 1998 1999 1998
----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 3,169 $ 6,785 $ 273 $ 632 $ 9,421 $ 18,122
Net realized gains
(losses) from
investment
transactions.......... (15) 847 13 145 3,296 3,531
Net change in
unrealized
appreciation
(depreciation) from
investments........... 1,406 (738) 110 2 6,040 1,192
-------- -------- ------ ------- -------- --------
Change in net assets
resulting from
operations............. 4,560 6,894 396 779 18,757 22,845
-------- -------- ------ ------- -------- --------
Distributions to Classic
Shareholders:
From net investment
income................ (103) (794) (205) (513) (201) (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................ (3,094) (6,023)(a) (69) (57)(a) (9,347) (16,698)(a)
In excess of net
investment income..... -- -- (a) -- (15)(a) -- -- (a)
From net realized gains
from investment
transactions.......... -- -- (a) -- -- (a) (3,998) (788)(a)
Distributions to Class B
Shareholders:
From net investment
income................ -- -- -- -- (27) (9)(b)
From net realized gains
from investment
transactions.......... -- -- -- -- (18) -- (b)
-------- -------- ------ ------- -------- --------
Change in net assets
from shareholder
distributions.......... (3,197) (6,817) (274) (633) (13,678) (19,297)
-------- -------- ------ ------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 12,231 20,184 607 3,053 44,547 99,873
Dividends reinvested... 355 633 129 320 3,154 5,321
Cost of shares
redeemed.............. (12,413) (49,085) (2,065) (4,444) (32,329) (85,219)
-------- -------- ------ ------- -------- --------
Change in net assets
from share
transactions........... 173 (28,268) (1,329) (1,071) 15,372 19,975
-------- -------- ------ ------- -------- --------
Change in net assets.... 1,536 (28,191) (1,207) (925) 20,451 23,523
Net Assets:
Beginning of period.... 110,484 138,675 10,697 11,622 335,404 311,881
-------- -------- ------ ------- -------- --------
End of period.......... $112,020 $110,484 $9,490 $10,697 $355,855 $335,404
======== ======== ====== ======= ======== ========
Share Transactions:
Issued................. 1,154 1,930 60 310 3,938 9,081
Reinvested............. 34 61 13 33 279 485
Redeemed............... (1,173) (4,702) (206) (451) (2,854) (7,771)
-------- -------- ------ ------- -------- --------
Change in shares........ 15 (2,711) (133) (108) 1,363 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) to July
31, 1998.
See notes to financial statements.
-41-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Florida Tax-Free
Municipal Bond Fund Fund
-------------------- --------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
January 31, July 31, January 31, July 31,
1999 1998 1999 1998
----------- -------- ----------- --------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income....... $ 6,670 $ 14,134 $ 1,371 $ 2,435
Net realized gains (losses)
from investment
transactions............... 1,667 3,647 234 418
Net change in unrealized
appreciation (depreciation)
from investments........... 6,960 (3,346) 1,290 (353)
-------- -------- ------- -------
Change in net assets
resulting from operations... 15,297 14,435 2,895 2,500
-------- -------- ------- -------
Distributions to Classic
Shareholders:
From net investment income.. (46) (1,218) (173) (413)
From net realized gains from
investment transactions.... (21) (5) (50) (25)
Distributions to Premier
Shareholders:
From net investment income.. (6,555) (12,911)(a) (1,182) (2,016)(a)
In excess of net investment
income..................... -- (6)(a) -- (1)(a)
From net realized gains from
investment transactions.... (3,341) (816)(a) (333) (322)(a)
-------- -------- ------- -------
Change in net assets from
shareholder distributions... (9,963) (14,956) (1,738) (2,777)
-------- -------- ------- -------
Capital Transactions:
Proceeds from shares issued. 20,713 54,703 9,930 24,956
Dividends reinvested........ 130 100 217 218
Cost of shares redeemed..... (28,441) (63,062) (5,838) (14,553)
-------- -------- ------- -------
Change in net assets from
share transactions.......... (7,598) (8,259) 4,309 10,621
-------- -------- ------- -------
Change in net assets......... (2,264) (8,780) 5,466 10,344
Net Assets:
Beginning of period......... 329,153 337,933 64,032 53,688
-------- -------- ------- -------
End of period............... $326,889 $329,153 $69,498 $64,032
======== ======== ======= =======
Share Transactions:
Issued...................... 2,018 5,391 937 2,383
Reinvested.................. 12 10 20 21
Redeemed.................... (2,767) (6,210) (551) (1,392)
-------- -------- ------- -------
Change in shares............. (737) (809) 406 1,012
======== ======== ======= =======
</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.
See notes to financial statements.
-42-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
U.S. Treasury Fund Prime Obligations Fund
--------------------- -----------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
January 31, July 31, January 31, July 31
1999 1998 1999 1998
----------- --------- ----------- -----------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income......... $ 6,736 $ 14,654 $ 16,360 $ 31,203
Net realized gains (losses)
from investment transactions. -- 7 2 --
--------- --------- --------- -----------
Change in net assets resulting
from operations............... 6,736 14,661 16,362 31,203
--------- --------- --------- -----------
Distributions to Classic Share-
holders:
From net investment income.... (142) (350) (2,983) (5,957)
Distributions to Premier Share-
holders:
From net investment income.... (6,594) (14,304) (13,375) (25,246)
Distributions to Class B Share-
holders:
From net investment income.... -- -- (2) --
--------- --------- --------- -----------
Change in net assets from
shareholder distributions..... (6,736) (14,654) (16,360) (31,203)
--------- --------- --------- -----------
Capital Transactions:
Proceeds from shares issued... 377,490 969,887 997,962 1,553,766
Dividends reinvested.......... 716 737 3,904 7,810
Cost of shares redeemed....... (426,729) (929,752) (925,130) (1,492,634)
--------- --------- --------- -----------
Change in net assets from share
transactions.................. (48,523) 40,872 76,736 68,942
--------- --------- --------- -----------
Change in net assets........... (48,523) 40,879 76,738 68,942
Net Assets:
Beginning of period........... 360,125 319,246 596,935 527,993
--------- --------- --------- -----------
End of period................. $ 311,602 $ 360,125 $ 673,673 $ 596,935
========= ========= ========= ===========
Share Transactions:
Issued........................ 377,490 969,887 997,962 1,553,766
Reinvested.................... 716 737 3,904 7,810
Redeemed...................... (426,729) (929,752) (925,130) (1,492,634)
--------- --------- --------- -----------
Change in shares............... (48,523) 40,872 76,736 68,942
========= ========= ========= ===========
</TABLE>
See notes to financial statements.
-43-
<PAGE>
AMSOUTH MUTUAL FUNDS
Statements of Changes in Net Assets
(Amounts in thousands)
<TABLE>
<CAPTION>
Institutional
Prime
Obligations
Fund Tax-Exempt Fund
------------- ---------------------
Period Six Months Year
Ended Ended Ended
January 31, January 31, July 31,
1999 (a) 1999 1998
------------- ----------- ---------
<S> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income.................... $ 2,252 $ 1,227 $ 2,696
Net realized gains (losses) from
investment transactions................. -- 1 --
--------- --------- ---------
Change in net assets resulting from
operations............................... 2,252 1,228 2,696
--------- --------- ---------
Distributions to Classic Shareholders (b):
From net investment income............... (2,252) (364) (691)
Distributions to Premier Shareholders:
From net investment income............... -- (863) (2,005)
--------- --------- ---------
Change in net assets from shareholder
distributions............................ (2,252) (1,227) (2,696)
--------- --------- ---------
Capital Transactions:
Proceeds from shares issued.............. 328,068 114,812 225,711
Dividends reinvested..................... -- 375 698
Cost of shares redeemed.................. (192,310) (109,054) (219,023)
--------- --------- ---------
Change in net assets from share
transactions............................. 135,758 6,133 7,386
--------- --------- ---------
Change in net assets...................... 135,758 6,134 7,386
Net Assets:
Beginning of period...................... -- 90,741 83,355
--------- --------- ---------
End of period............................ $ 135,758 $ 96,875 $ 90,741
========= ========= =========
Share Transactions:
Issued................................... 328,068 114,812 225,711
Reinvested............................... -- 375 698
Redeemed................................. (192,310) (109,054) (219,023)
--------- --------- ---------
Change in shares.......................... 135,758 6,133 7,386
========= ========= =========
</TABLE>
- --------
(a) For the period from September 15, 1998 (commencement of operations) through
January 31, 1999.
(b) Class I shares for the Institutional Prime Obligations Fund.
See notes to financial statements.
-44-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Income Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks & Securities Convertible to
Common Stock (98.2%):
Basic Materials (2.9%):
10,500 E.I. du Pont de Nemours.................................... $ 537
14,300 Monsanto, 6.50%, (ACES).................................... 699
-------
1,236
-------
Capital Goods/Diversified (6.0%):
15,100 Emerson Electric Co. ...................................... 879
9,800 General Electric Co. ...................................... 1,028
26,000 Ingersoll-Rand Co., 6.75%, PRIDES.......................... 640
-------
2,547
-------
Consumer Cyclical (3.0%):
11,050 Ford Motor Co. ............................................ 679
11,400 Newell Financial Trust, 5.25%, CVT. PFD.................... 607
-------
1,286
-------
Energy (5.9%):
6,704 BP Amoco PLC ADR........................................... 544
8,900 Mobil Corp. ............................................... 779
19,300 Shell Transport & Trading Co. PLC ADR...................... 589
18,500 Williams Cos., Inc. ....................................... 611
-------
2,523
-------
Finance (15.1%):
11,700 Fannie Mae................................................. 853
6,975 J.P. Morgan & Co., Inc. ................................... 736
9,350 Jefferson Pilot/Bank America (ACES)........................ 1,047
40,200 Lincoln National Corp., 7.75%, PRIDES...................... 1,002
35,700 National Australia Bank, 7.88%, CVT. PFD................... 1,085
46,000 Waddell Reed Financial--Class B............................ 963
12,550 Wilmington Trust Corp. .................................... 750
-------
6,436
-------
Health Care (11.7%):
14,200 American Home Products Corp. .............................. 833
10,900 Bausch & Lomb, Inc. ....................................... 669
10,150 Baxter International, Inc. ................................ 720
9,800 Bristol-Myers Squibb Co. .................................. 1,257
10,100 Johnson & Johnson.......................................... 859
6,600 Perkin-Elmer Corp. ........................................ 627
-------
4,965
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks & Securities Convertible to
Common Stock, continued:
Retailing (6.5%):
1,160 Costco Companies, 0.00%, 8/19/17........................... $ 1,112
21 Dollar General STRYPES Trust, 8.50%, 5/15/01............... 787
610 Rite Aid Corp., 5.25%, 9/15/02............................. 883
-------
2,782
-------
Services (5.7%):
9,800 McDonald's Corp. .......................................... 772
29,600 SYSCO Corp. ............................................... 807
26,000 The Walt Disney Co. ....................................... 858
-------
2,437
-------
Staples (8.4%):
23,500 Conagra, Inc. ............................................. 764
13,850 H.J. Heinz Co. ............................................ 780
12,100 Hershey Foods Corp. ....................................... 681
19,200 McCormick & Co., Inc. ..................................... 566
16,800 Philip Morris Cos., Inc. .................................. 789
-------
3,580
-------
Technology (21.7%):
12,500 Airtouch/Mediaone, 6.25%, CVT. PFD......................... 1,028
14,900 Computer Associates International, Inc. ................... 754
17,900 Electronic Data Systems Corp. ............................. 939
245,000 EMC Corp., 3.25%, CVT. BD.................................. 1,177
10,950 Hewlett-Packard Co. ....................................... 858
6,600 Intel Corp. ............................................... 930
16,500 Lockheed Martin Corp. ..................................... 582
13,500 Motorola, Inc. ............................................ 975
14,700 Pitney Bowes, Inc. ........................................ 1,012
8,100 Xerox Corp. ............................................... 1,004
-------
9,259
-------
Transportation (1.0%):
9,100 Union Pacific Corp., 6.25%, CVT. PFD....................... 444
-------
</TABLE>
Continued
-45-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Income Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks & Securities Convertible to
Common Stock, continued:
Utilities (10.3%):
14,500 Ameritech Corp. ........................................... $ 944
25,000 BCE Inc. .................................................. 1,116
22,700 Texas Utilities Co., 9.25%, PRIDES......................... 1,257
17,000 U.S. West, Inc. ........................................... 1,049
-------
4,366
-------
Total Common Stocks & Securities Convertible to Common Stock 41,861
-------
Cash Equivalents (1.7%):
706,196 AmSouth Prime Obligations Fund............................. 706
-------
Total (Cost $36,624) (a) $42,567
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $42,591.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $6,752
Unrealized depreciation.............................................. (809)
------
Net unrealized appreciation.......................................... $5,943
======
</TABLE>
ACES--Automatic Common Exchange Securities
ADR--American Depository Receipt
CVT. BD.--Convertible Bond
CVT. PFD.--Convertible Preferred
PLC--Public Limited Co.
PRIDES--Preferred Redeemable Increased Dividend Equity Securities
STRYPES--Structured Yield Product Exchangeable for Stock
Breakdown of Sectors
<TABLE>
<S> <C>
Common Stocks............................................................ 71.6%
Convertible Preferred Stocks............................................. 14.9%
Convertible Bonds........................................................ 11.7%
Investment Companies..................................................... 1.7%
-----
Total................................................................... 99.9%
=====
</TABLE>
See notes to financial statements.
-46-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks (96.6%):
Apparel (0.4%):
600,000 Phillips-Van Heusen Corp. .............................. $ 3,788
----------
Automotive (2.3%):
396,000 Ford Motor Co. ......................................... 24,329
----------
Automotive Parts (1.5%):
392,000 Arvin Industries, Inc. ................................. 15,509
----------
Banking (5.5%):
160,000 BankAmerica Corp. ...................................... 10,700
150,000 J.P. Morgan & Co., Inc. ................................ 15,825
735,000 Washington Mutual, Inc. ................................ 30,870
----------
57,395
----------
Beverages (1.7%):
400,000 Diageo PLC ADR.......................................... 18,025
----------
Business Services (1.5%):
755,000 Reynolds & Reynolds Co., Class A........................ 15,100
----------
Chemicals-Speciality (2.2%):
1,025,000 Engelhard Corp. ........................................ 20,051
285,000 M.A. Hanna Co. ......................................... 3,153
----------
23,204
----------
Computers & Peripherals (3.9%):
1,165,000 Cabletron Systems, Inc. (b)............................. 12,160
156,000 IBM Corp. .............................................. 28,587
----------
40,747
----------
Consumer Goods (1.7%):
440,000 American Greetings Corp., Class A....................... 17,380
----------
Electrical & Electronic (3.4%):
536,434 AMP, Inc. .............................................. 28,229
150,000 Avnet, Inc. ............................................ 6,741
----------
34,970
----------
Entertainment (0.3%):
200,000 Circus Circus Enterprises, Inc. (b)..................... 2,725
----------
Financial Services (1.9%):
660,000 Dun & Bradstreet Corp. ................................. 20,130
----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Food Processing & Packaging (2.1%):
15,000 Dole Food, Inc. ........................................ $ 455
720,000 Sara Lee Corp. ......................................... 18,360
120,000 Universal Foods Corp. .................................. 2,700
----------
21,515
----------
Forest & Paper Products (5.9%):
50,000 Champion International Corp. ........................... 1,753
335,000 Union Camp Corp. ....................................... 20,665
490,000 Weyerhauser Co. ........................................ 26,521
350,000 Willamette Industries, Inc. ............................ 12,250
----------
61,189
----------
Health Care (3.1%):
225,000 Aetna, Inc. ............................................ 20,278
260,000 United Healthcare Corp. ................................ 11,635
----------
31,913
----------
Household Products/Wares (2.6%):
850,000 Rubbermaid, Inc. ....................................... 27,413
----------
Insurance (4.0%):
360,000 Marsh & McLennan Cos., Inc. ............................ 22,635
630,000 St. Paul Cos., Inc. .................................... 18,506
----------
41,141
----------
Manufacturing (0.2%):
103,800 Kennametal, Inc. ....................................... 2,413
----------
Medical Supplies (5.9%):
335,000 Baxter International, Inc. ............................. 23,764
600,000 C.R. Bard, Inc. ........................................ 30,375
250,000 DENTSPLY International, Inc. ........................... 6,875
----------
61,014
----------
Metals & Mining (0.2%):
120,000 Barrick Gold Corp. ..................................... 2,288
----------
Newspapers (3.3%):
230,000 Dow Jones & Co., Inc. .................................. 10,293
360,000 Gannett Co., Inc. ...................................... 23,692
----------
33,985
----------
</TABLE>
Continued
-47-
<PAGE>
AMSOUTH MUTUAL FUNDS
Equity Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas Exploration, Production, & Services (9.8%):
180,000 Atlantic Richfield Co. ................................. $ 10,328
325,000 Burlington Resources, Inc. ............................. 9,831
380,000 Kerr-McGee Corp. ....................................... 12,896
90,000 Noble Affiliates........................................ 1,772
700,000 Sunoco, Inc. ........................................... 24,587
432,000 Texaco, Inc. ........................................... 20,465
405,000 Ultramar Diamond Shamrock Corp. ........................ 8,910
610,000 USX--Marathon Group..................................... 13,878
----------
102,667
----------
Packaging (0.1%):
30,000 Crown Cork & Seal, Inc. ................................ 951
----------
Pharmaceuticals (4.1%):
200,000 American Home Products Corp. ........................... 11,738
530,000 Pharmacia & Upjohn, Inc. ............................... 30,475
----------
42,213
----------
Pollution Control Services & Equipment (1.9%):
391,500 Waste Management, Inc. ................................. 19,551
----------
Railroads (1.4%):
350,000 CSX Corp. .............................................. 14,088
----------
Retail (13.1%):
600,000 CVS Corp. .............................................. 32,850
520,000 Dayton Hudson Corp. .................................... 33,149
540,000 Dillard's, Inc., Class A................................ 13,399
400,000 May Department Stores Co. .............................. 24,150
120,000 The Limited, Inc. ...................................... 4,095
350,000 Wal-Mart Stores, Inc. .................................. 30,100
----------
137,743
----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
----------- ------------------------------------------------------ ----------
<C> <S> <C>
Common Stocks, continued:
Temporary Services (0.4%):
500,000 Olsten Corp. ......................................... $ 4,063
----------
Transportation Leasing & Trucking (2.0%):
495,000 Ryder System, Inc. ................................... 12,065
243,000 USFreightways Corp. .................................. 8,475
----------
20,540
----------
Utilities--Electric & Gas (3.1%):
555,000 Baltimore Gas & Electric Co. ......................... 15,124
650,000 Southern Co. ......................................... 17,509
----------
32,633
----------
Utilities--Telecommunications (7.1%):
310,000 AT&T Corp............................................. 28,132
393,216 BellAtlantic Corp..................................... 23,593
532,000 BellSouth Corp........................................ 23,740
----------
75,465
----------
Total Common Stocks 1,006,087
----------
Commercial Paper (0.7%):
Financial Services (0.7%):
$ 7,673 General Electric Capital Corp., 4.88%, 2/3/99......... 7,673
----------
Total Commercial Paper 7,673
----------
Investment Companies (2.4%):
18,753,871 AmSouth Prime Obligations Fund........................ 18,754
5,822,060 AmSouth U.S. Treasury Fund............................ 5,822
----------
Total Investment Companies 24,576
----------
Total (Cost $688,665) (a) $1,038,336
==========
</TABLE>
- --------
Percentages indicated are based on net assets of $1,041,295.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................ $380,627
Unrealized depreciation............................................ (30,956)
--------
Net unrealized appreciation........................................ $349,671
========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-48-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (92.3%):
Advertising (0.1%):
100 Interpublic Group Cos., Inc. ................................. $ 8
-------
Aerospace/Defense (1.3%):
1,300 Alliedsignal, Inc. ........................................... 51
100 B.F. Goodrich, Inc. .......................................... 3
1,900 Boeing Co. ................................................... 66
100 General Dynamics Corp. (b).................................... 6
200 Northrop Grumman Corp. ....................................... 11
500 United Technologies Corp. .................................... 60
-------
197
-------
Agriculture (0.1%):
300 Pioneer Hi-Bred International Inc. ........................... 8
-------
Airlines (0.5%):
400 AMR Corp. (b)................................................. 24
400 Delta Air Lines, Inc. ........................................ 22
900 Southwest Airlines............................................ 23
100 US Airways Group, Inc. (b).................................... 5
-------
74
-------
Apparel (0.1%):
100 Fruit of the Loom, Class A (b)................................ 1
100 Liz Claiborne, Inc. .......................................... 4
300 V F Corp. .................................................... 13
-------
18
-------
Appliances (0.1%):
100 Maytag Corp. ................................................. 6
200 Whirlpool Corp. .............................................. 9
-------
15
-------
Automotive (1.6%):
1,600 Ford Motor Co. ............................................... 98
1,500 General Motors Corp. ......................................... 135
200 Navistar International (b).................................... 7
100 PACCAR, Inc. ................................................. 4
-------
244
-------
Automotive Parts (0.0%):
100 Dana Corp. ................................................... 4
100 Genuine Parts Co ............................................. 3
-------
7
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Banking (6.0%):
800 Bank of Boston Corp. ......................................... $ 30
1,000 Bank of New York Co., Inc. ................................... 36
1,548 Bank One Corp. ............................................... 81
2,300 BankAmerica Corp. ............................................ 153
300 Bankers' Trust Corp. ......................................... 26
800 BB&T Corp. ................................................... 31
1,100 Chase Manhattan Corp. ........................................ 85
200 Comerica, Inc. ............................................... 12
600 First Union Corp. ............................................ 32
300 Huntington Bancshares, Inc. .................................. 9
500 J.P. Morgan & Co., Inc. ...................................... 53
600 Keycorp....................................................... 19
700 Mellon Bank Corp. ............................................ 47
100 Mercantile Bancorp. .......................................... 4
400 National City Corp. .......................................... 28
100 Northern Trust Corp. ......................................... 9
400 PNC Financial Corp. .......................................... 20
300 Regions Financial Corp. ...................................... 12
300 Republic New York Corp. ...................................... 11
200 Summit Bancorp. .............................................. 8
600 SunTrust Banks, Inc. ......................................... 42
100 Synovus Financial Corp. ...................................... 3
500 Wachovia Corp. ............................................... 44
800 Washington Mutual, Inc. ...................................... 34
1,500 Wells Fargo Co. .............................................. 52
-------
881
-------
Beverages (2.3%):
600 Anheuser-Busch Co., Inc. ..................................... 42
2,700 Coca-Cola Co. ................................................ 176
2,600 PepsiCo, Inc. ................................................ 102
500 Seagram Co. Ltd. ............................................. 24
-------
344
-------
Brokerage Services (0.7%):
100 Bear Stearns Co., Inc. ....................................... 5
300 Lehman Brothers Holdings, Inc. ............................... 16
700 Merrill Lynch & Co., Inc. .................................... 53
400 Morgan Stanley Dean Witter & Co. ............................. 35
-------
109
-------
</TABLE>
Continued
-49-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Building Materials (0.2%):
100 Armstrong World Industries, Inc. ............................ $ 6
900 Masco Corp. ................................................. 29
-------
35
-------
Chemicals (1.7%):
600 Air Products and Chemicals, Inc. ............................ 20
2,100 E.I. du Pont de Nemours...................................... 107
200 Great Lakes Chemical Corp. .................................. 8
1,400 Monsanto Co. ................................................ 67
300 Morton International, Inc. .................................. 8
200 Praxair, Inc. ............................................... 6
200 Rohm & Haas Co. ............................................. 6
200 Sherwin Williams Co. ........................................ 5
100 Sigma Aldrich Corp. ......................................... 3
400 Union Carbide Corp. ......................................... 16
100 W.R.Grace and Co. (b)........................................ 1
-------
247
-------
Chemicals--Speciality (0.0%):
100 Engelhard Corp. ............................................. 2
-------
Commercial Services (0.6%):
2,200 Cendant Corp. (b)............................................ 47
100 Equifax, Inc. ............................................... 4
370 Mckesson HBOC, Inc. ......................................... 28
200 Paychex, Inc. ............................................... 10
-------
89
-------
Computer Software (5.5%):
100 Adobe Systems, Inc. ......................................... 5
100 Autodesk, Inc. .............................................. 4
300 BMC Software, Inc. (b)....................................... 14
1,000 Computer Associates International, Inc. ..................... 51
200 Computer Sciences Corp. ..................................... 14
400 IMS Health, Inc. ............................................ 15
3,400 Microsoft Corp. (b).......................................... 594
6 Momentum Business Applications (b)........................... --*
500 Novell, Inc. (b)............................................. 10
1,700 Oracle Corp. (b)............................................. 94
300 Parametric Technology Corp. (b).............................. 4
300 Peoplesoft, Inc. (b)......................................... 6
-------
811
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Computers (1.7%):
200 Apple Computer, Inc. (b)...................................... $ 8
800 Compaq Computer Corp. ........................................ 38
100 Data General Corp. (b)........................................ 2
1,900 Dell Computer Corp. (b)....................................... 191
200 Gateway 2000 (b).............................................. 15
-------
254
-------
Computers & Peripherals (6.2%):
800 3Com Corp. (b)................................................ 38
500 Ascend Communications, Inc. (b)............................... 44
100 Cabletron Systems, Inc. (b)................................... 1
100 Ceridian Corp. (b)............................................ 8
2,250 Cisco Systems, Inc. (b)....................................... 251
1,200 Electronic Data Systems Corp. ................................ 63
1,600 Hewlett-Packard Co. .......................................... 125
1,400 IBM Corp. .................................................... 257
600 Seagate Technology, Inc. (b).................................. 24
100 Silicon Graphics, Inc. (b).................................... 2
700 Sun Microsystems, Inc. (b).................................... 78
700 Unisys Corp. (b).............................................. 23
-------
914
-------
Consumer Goods (2.1%):
100 American Greetings Corp., Class A............................. 4
300 Brunswick Corp. .............................................. 7
400 General Mills, Inc. .......................................... 34
1,500 Gillette Co. ................................................. 88
200 Hasbro, Inc. ................................................. 7
1,800 Procter & Gamble Co. ......................................... 164
-------
304
-------
Cosmetics/Personal Care (0.4%):
100 International Flavors & Fragrances, Inc. ..................... 4
1,200 Kimberly Clark Corp. ......................................... 60
-------
64
-------
Diversified Manufacturing (4.4%):
21 Berkshire Hathaway, Inc., Class B (b)......................... 46
300 Cooper Industries............................................. 12
200 Corning, Inc. ................................................ 10
200 Eaton Corp. .................................................. 14
100 FMC Corp. (b)................................................. 5
4,600 General Electric Co. ......................................... 483
</TABLE>
Continued
-50-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Diversified Manufacturing, continued:
200 ITT Industries, Inc. ......................................... $ 8
500 Minnesota Mining & Manufacturing Co. ......................... 39
200 Raychem Corp. ................................................ 5
500 Tenneco, Inc. ................................................ 15
200 Tyco International Ltd. ...................................... 15
-------
652
-------
Electrical & Electronic (0.3%):
200 Ameren Corp. ................................................. 8
562 AMP, Inc. .................................................... 29
-------
37
-------
Electronic Components/Instruments (0.7%):
100 E G & G, Inc. ................................................ 3
900 Emerson Electric Co. ......................................... 52
300 Honeywell, Inc. .............................................. 20
200 Johnson Controls, Inc. ....................................... 13
300 Parker-Hannifin Corp. ........................................ 9
100 Thomas & Betts Corp. ......................................... 4
-------
101
-------
Entertainment (0.8%):
3,500 The Walt Disney Co. .......................................... 116
-------
Environmental Control (0.0%):
200 Browning-Ferris Industries, Inc. ............................. 6
-------
Financial Services (3.8%):
600 American Express Co. ......................................... 62
900 Associates First Capital...................................... 37
200 Capital One Financial Corp. .................................. 26
3,000 Citigroup, Inc. .............................................. 169
100 Countrywide Credit Industries, Inc. .......................... 5
500 Dun & Bradstreet Corp. ....................................... 15
2,000 Fannie Mae.................................................... 146
300 Franklin Resources, Inc. ..................................... 10
900 Freddie Mac................................................... 56
100 Golden West Financial Corp. .................................. 9
100 H & R Block, Inc. ............................................ 4
100 Household International, Inc. ................................ 4
150 Providian Financial........................................... 15
200 SLM Holding Corp. ............................................ 9
-------
567
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Food Distributors & Wholesalers (1.1%):
700 Albertsons, Inc. ............................................. $ 43
700 American Stores Co. .......................................... 25
1,600 Archer-Daniels-Midland Co. ................................... 24
700 Kroger Co. (b)................................................ 45
800 Ralston Purina Co. ........................................... 22
400 SYSCO Corp. .................................................. 11
-------
170
-------
Food Processing & Packaging (0.9%):
400 Bestfoods..................................................... 20
600 Campbell Soup Co. ............................................ 28
800 H.J. Heinz Co. ............................................... 45
400 Hershey Foods Corp. .......................................... 23
400 Quaker Oats Co. .............................................. 22
-------
138
-------
Forest & Paper Products (0.7%):
300 Champion International Corp. ................................. 11
600 Fort James Corp. ............................................. 21
200 Georgia Pacific Corp. ........................................ 13
300 Mead Corp. ................................................... 9
200 Union Camp Corp. ............................................. 12
500 Weyerhauser Co. .............................................. 26
300 Willamette Industries, Inc. .................................. 11
-------
103
-------
Gas Distribution (0.2%):
100 Columbia Energy Group......................................... 5
100 Consolidated Natural Gas...................................... 5
100 Nicor, Inc. .................................................. 4
300 Sempra Energy................................................. 7
100 Sonat, Inc. .................................................. 3
-------
24
-------
Health Care (1.3%):
100 HCR Manor Care (b)............................................ 3
400 HEALTHSOUTH Corp. (b)......................................... 5
400 Humana, Inc. (b).............................................. 7
1,800 Johnson & Johnson............................................. 153
800 Tenet Healthcare Corp. (b).................................... 17
-------
185
-------
</TABLE>
Continued
-51-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Home Builders (0.1%):
200 Centex Corp. ................................................. $ 8
100 Kaufman & Broad Home Corp. ................................... 3
100 Pulte Corp. .................................................. 3
-------
14
-------
Hotels & Lodging (0.1%):
100 Hilton Hotels Corp. .......................................... 1
300 Marriott International, Inc. ................................. 11
100 Park Place Entertainment (b).................................. 1
-------
13
-------
Household Products/Wares (0.5%):
200 Fortune Brands, Inc. ......................................... 7
100 Moore Corp. Ltd. ............................................. 1
100 Rubbermaid, Inc. ............................................. 3
100 Tupperware Corp. ............................................. 2
800 Unilever N V.................................................. 61
-------
74
-------
Insurance (2.9%):
1,400 Allstate Corp. ............................................... 53
1,700 American International Group, Inc. ........................... 174
400 Chubb Corp. .................................................. 24
200 Cincinnati Financial Corp. ................................... 7
300 Hartford Financial Services Group............................. 16
300 Loews Corp. .................................................. 25
700 Marsh & McLennan Cos., Inc. .................................. 44
300 MBIA, Inc. ................................................... 20
400 Provident Co., Inc. .......................................... 17
200 Safeco Corp. ................................................. 8
400 Transamerica Corp. ........................................... 22
400 Unum Corp. ................................................... 24
-------
434
-------
Machinery & Equipment (0.8%):
100 Black & Decker Corp. ......................................... 5
100 Case Corp. ................................................... 2
500 Caterpillar, Inc. ............................................ 22
600 Deere & Co. .................................................. 20
300 Dover Corp. .................................................. 9
400 Ingersoll Rand Co. ........................................... 19
200 Rockwell International Corp. ................................. 9
200 Snap-On, Inc. ................................................ 7
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Machinery & Equipment, continued:
34 SPX Corp. (b)................................................. $ 2
200 Thermo Electron (b)........................................... 3
500 W W Grainger, Inc. ........................................... 20
-------
118
-------
Manufacturing (0.4%):
400 Goodyear Tire & Rubber Co. ................................... 20
100 Pall Corp. ................................................... 2
400 Textron, Inc. ................................................ 30
-------
52
-------
Media (1.9%):
300 Clear Channel Communications, Inc. (b)........................ 19
700 Comcast Corp. ................................................ 48
200 King World Productions, Inc. (b).............................. 5
300 McGraw Hill Cos., Inc. ....................................... 32
800 Mediaone Group, Inc. (b)...................................... 45
100 Meredith Corp. ............................................... 4
700 TCI Group, Class A (b)........................................ 47
700 Time Warner, Inc. ............................................ 44
500 Viacom, Inc., Class B (b)..................................... 43
-------
287
-------
Medical Services (0.4%):
500 Amgen, Inc. (b)............................................... 64
-------
Medical Supplies (0.8%):
200 Allergan, Inc. ............................................... 15
100 Bausch & Lomb, Inc. .......................................... 6
700 Baxter International, Inc. ................................... 49
300 Becton Dickinson & Co. ....................................... 11
100 Biomet, Inc. ................................................. 4
100 C.R. Bard, Inc. .............................................. 5
400 Guidant Corp. ................................................ 24
200 Mallinckrodt, Inc. ........................................... 7
100 St Jude Medical, Inc. (b)..................................... 3
-------
124
-------
Metals & Mining (0.3%):
300 Alcan Aluminum Ltd. .......................................... 8
500 Barrick Gold Corp. ........................................... 10
300 Battle Mountain Gold Co. ..................................... 1
200 Freeport-McMoRan Copper & Gold, Inc. ......................... 2
200 Inco Ltd. .................................................... 2
</TABLE>
Continued
-52-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Metals & Mining, continued:
400 Newmont Mining Corp. ......................................... $ 7
300 Placer Dome, Inc. ............................................ 3
200 Reynolds Metals Co. .......................................... 10
-------
43
-------
Newspapers (0.6%):
100 Dow Jones & Co., Inc. ........................................ 4
800 Gannett Co., Inc. ............................................ 53
500 New York Times Co. ........................................... 17
100 Times Mirror Co., Class A..................................... 6
100 Tribune Co. .................................................. 6
-------
86
-------
Office Equipment & Services (0.2%):
100 Avery Dennison Corp. ......................................... 5
200 Xerox Corp. .................................................. 25
-------
30
-------
Oil & Gas Exploration, Production, & Services (5.8%):
300 Anadarko Petroleum............................................ 8
200 Ashland, Inc. ................................................ 10
800 Atlantic Richfield Co. ....................................... 46
252 Baker Hughes, Inc. ........................................... 4
992 BP Amoco PLC ADR.............................................. 80
500 Burlington Resources, Inc. ................................... 15
400 Chevron Corp. ................................................ 30
300 Coastal Corp. ................................................ 9
400 Enron Corp. .................................................. 26
3,200 Exxon Corp. .................................................. 226
100 Helmerich & Payne, Inc. ...................................... 2
100 Kerr-McGee Corp. ............................................. 3
1,400 Mobil Corp. .................................................. 123
200 Occidental Petroleum Corp. ................................... 3
100 Pennzenergy Co. .............................................. 1
100 Pennzoil-Quaker State Co. (b)................................. 2
200 Rowan Cos., Inc. (b).......................................... 2
2,800 Royal Dutch Petroleum Co. .................................... 112
1,400 Schlumberger Ltd. ............................................ 67
1,100 Texaco, Inc. ................................................. 52
300 Union Pacific Resources Group................................. 2
800 USX--Marathon Group........................................... 18
600 Williams Cos., Inc. .......................................... 20
-------
861
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Packaging (0.1%):
100 Bemis, Inc. .................................................. $ 3
100 Sealed Air Corp. (b).......................................... 5
99 Smurfit-Stone Container Corp. (b)............................. 2
-------
10
-------
Pharmaceuticals (8.8%):
2,000 Abbott Laboratories........................................... 93
100 Alza Corp., Class A (b)....................................... 5
2,200 American Home Products Corp. ................................. 129
1,300 Bristol-Myers Squibb Co. ..................................... 167
1,700 Eli Lilly & Co. .............................................. 159
1,700 Merck & Co., Inc. ............................................ 250
1,900 Pfizer, Inc. ................................................. 244
700 Pharmacia & Upjohn, Inc. ..................................... 40
2,300 Schering-Plough Corp. ........................................ 125
1,400 Warner-Lambert Co. ........................................... 101
-------
1,313
-------
Printing (0.0%):
100 R.R. Donnelley & Sons Co. .................................... 4
-------
Railroads (0.5%):
600 CSX Corp. .................................................... 24
1,000 Norfolk Southern Corp. ....................................... 28
300 Union Pacific Corp. .......................................... 15
-------
67
-------
Restaurants (0.7%):
200 Darden Restaurants, Inc. ..................................... 4
1,200 McDonald's Corp. ............................................. 94
200 Tricon Global Restaurants (b)................................. 10
100 Wendy's International, Inc. .................................. 2
-------
110
-------
Retail (5.1%):
300 Costco Co., Inc, (b).......................................... 25
1,000 CVS Corp. .................................................... 55
600 Dayton Hudson Corp. .......................................... 38
300 Dillard's, Inc., Class A...................................... 7
475 Dollar General................................................ 12
100 Fred Meyer,Inc. (b)........................................... 6
100 Great Atlantic & Pacific Tea Co., Inc. ....................... 3
2,200 Home Depot, Inc. ............................................. 133
</TABLE>
Continued
-53-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Retail, continued:
700 J.C. Penney Co., Inc. ....................................... $ 27
400 Kmart Corp. (b).............................................. 7
200 Kohls Corp. (b).............................................. 14
100 Longs Drug Stores Corp. ..................................... 4
800 Lowes Co., Inc. ............................................. 47
600 May Department Stores Co. ................................... 36
200 Nordstrom, Inc. ............................................. 8
800 Sears, Roebuck & Co. ........................................ 32
600 Staples, Inc. (b)............................................ 17
200 SUPERVALU, Inc. ............................................. 5
300 Tandy Corp. ................................................. 16
200 The Limited, Inc. ........................................... 7
400 TJX Co., Inc. ............................................... 12
100 Toys 'R' Us, Inc. (b)........................................ 2
200 Venerator Group, Inc. (b).................................... 1
2,600 Wal-Mart Stores, Inc. ....................................... 224
200 Walgreen Co. ................................................ 13
-------
751
-------
Semiconductors (3.9%):
900 Applied Materials, Inc. (b).................................. 57
100 Conexant Systems, Inc. (b)................................... 2
2,400 Intel Corp. ................................................. 338
100 KLA-Tencor Corp. (b)......................................... 6
400 LSI Logic Corp. (b).......................................... 11
200 Micron Technology, Inc. (b).................................. 16
1,000 Motorola, Inc. .............................................. 72
200 National Semiconductor Corp. (b)............................. 3
700 Texas Instruments, Inc. ..................................... 69
-------
574
-------
Steel (0.1%):
100 Allegheny Teledyne, Inc. .................................... 2
100 Armco, Inc. (b).............................................. --*
100 Bethlehem Steel Corp. (b).................................... 1
200 Timken Co. .................................................. 5
100 Worthington Industries, Inc. ................................ 1
-------
9
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Telecommunications--Equipment (1.6%):
400 General Instrument Corp. ..................................... $ 14
1,700 Lucent Technology, Inc. ...................................... 191
100 Scientific-Atlanta, Inc. ..................................... 3
300 Tellabs, Inc. (b)............................................. 26
-------
234
-------
Telecommunications--Wireless (0.7%):
800 Airtouch Communications, Inc. (b)............................. 77
100 Andrew Corp. (b).............................................. 2
400 Nextel Communications, Inc. (b)............................... 13
250 Sprint Corp. PCS.............................................. 8
-------
100
-------
Tobacco (1.4%):
3,700 Philip Morris Cos., Inc. ..................................... 175
900 RJR Nabisco Holdings Corp. ................................... 24
200 UST, Inc. .................................................... 6
-------
205
-------
Transportation (0.0%):
400 Laidlaw, Inc. ................................................ 3
-------
Transportation Leasing & Trucking (0.0%):
200 Ryder System, Inc. ........................................... 5
-------
Utilities--Electric & Gas (2.0%):
100 AES Corp. (b)................................................. 3
300 American Electric Power Co. .................................. 13
200 Baltimore Gas & Electric Co. ................................. 5
200 Carolina Power & Light Co. ................................... 8
300 Central & South West Corp. ................................... 8
200 Cinergy Corp. ................................................ 6
300 Consolidated Edison, Inc. .................................... 15
300 Dominion Resources, Inc. ..................................... 13
200 DTE Energy Co. ............................................... 8
500 Duke Energy Corp. ............................................ 32
500 Edison International.......................................... 14
300 Entergy Corp. ................................................ 9
300 Firstenergy Corp. ............................................ 9
200 FPL Group, Inc. .............................................. 11
200 General Public Utilities Corp. ............................... 9
400 Houston Industries, Inc. ..................................... 12
200 Niagara Mohawk Power Corp. (b)................................ 3
200 Northern States Power Co. .................................... 5
</TABLE>
Continued
-54-
<PAGE>
AMSOUTH MUTUAL FUNDS
Enhanced Market Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Utilities--Electric & Gas, continued:
250 P.P. & L. Resources, Inc. .................................... $ 7
500 Pacific Gas & Electric........................................ 16
400 Pacificorp. .................................................. 8
300 Peco Energy Co. .............................................. 11
300 Public Service Enterprise Group, Inc. ........................ 12
900 Southern Co. ................................................. 25
400 Texas Utilities Co. .......................................... 18
300 Unicom Corp. ................................................. 11
-------
291
-------
Utilities--Telecommunications (7.2%):
1,900 Ameritech Corp. .............................................. 124
1,800 AT&T Corp. ................................................... 163
2,500 BellAtlantic Corp. ........................................... 150
3,200 BellSouth Corp. .............................................. 143
100 Frontier Corp. ............................................... 4
1,600 GTE Corp. .................................................... 108
2,400 MCI Worldcom, Inc. (b)........................................ 191
900 Northern Telecom Ltd. ........................................ 57
1,500 SBC Communications, Inc. ..................................... 81
600 Sprint Corp. (b).............................................. 50
-------
1,071
-------
Total Common Stocks 13,671
-------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Investment Companies (5.9%):
661,656 AmSouth Prime Obligations Fund............................. $ 662
208,947 AmSouth U.S. Treasury Fund................................. 209
-------
Total Investment Companies 871
-------
U.S. Treasury Notes (1.4%):
$ 200 5.00%, 2/15/99............................................. 200
-------
Total U.S. Treasury Notes 200
-------
Total (Cost $11,965) (a) $14,742
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $14,799.
Open Futures Contracts
<TABLE>
<CAPTION>
Unrealized
# of Contracts Contract Value Expiration Date Gain/(Loss)
-------------- -------------- --------------- ------------
<S> <C> <C> <C> <C>
S&P 500 Stock Index
Futures (6.4%)......... 3 $946 3/19/99 $16
</TABLE>
The aggregate market value of cash pledged to cover margin requirements for
open futures positions at January 31, 1999 was $149.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $2,939
Unrealized depreciation.............................................. (162)
------
Net unrealized appreciation.......................................... $2,777
======
</TABLE>
(b) Represents non-income producing securities.
* Due to rounding, figure was below the thousand dollar threshold.
See notes to financial statements.
-55-
<PAGE>
AMSOUTH MUTUAL FUNDS
Capital Growth Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (97.2%):
Advertising (2.3%):
9,000 Omnicom Group, Inc. .......................................... $ 576
-------
Banking (8.7%):
5,400 Chase Manhattan Corp. ........................................ 415
7,300 Commerce Bancshares, Inc. .................................... 278
6,900 First American Corp.-Tenn. ................................... 288
11,200 Fleet Financial Group, Inc. .................................. 496
10,692 SunTrust Banks, Inc. ......................................... 754
-------
2,231
-------
Beverages (4.1%):
8,100 Anheuser-Busch Co., Inc. ..................................... 573
12,400 PepsiCo, Inc. ................................................ 484
-------
1,057
-------
Brokerage Services (2.8%):
13,000 Lehman Brothers Holdings, Inc. ............................... 711
-------
Computer Software (6.6%):
6,000 Compuware Corp. (b)........................................... 398
3,200 Microsoft Corp. (b)........................................... 560
13,000 Oracle Corp. (b).............................................. 719
-------
1,677
-------
Computers (4.7%):
14,400 Apple Computer, Inc. (b)...................................... 593
13,000 Compaq Computer Corp. ........................................ 619
-------
1,212
-------
Computers & Peripherals (5.5%):
15,000 3Com Corp. (b)................................................ 705
6,200 Sun Microsystems, Inc. (b).................................... 693
-------
1,398
-------
Consumer Goods (5.1%):
5,600 General Mills, Inc. .......................................... 470
8,000 Gillette Co. ................................................. 470
4,000 Procter & Gamble Co. ......................................... 364
-------
1,304
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Diversified Manufacturing (5.6%):
9,000 Crane Co. .................................................... $ 245
5,300 General Electric Co. ......................................... 556
8,200 Tyco International Ltd. ...................................... 631
-------
1,432
-------
Entertainment (1.9%):
10,000 Carnival Corp. ............................................... 491
-------
Financial Services (2.9%):
7,450 Providian Financial........................................... 751
-------
Insurance (2.0%):
12,000 AFLAC, Inc. .................................................. 515
-------
Media (1.8%):
8,200 Chancellor Media Corp. (b).................................... 472
-------
Medical Supplies (3.7%):
6,300 Baxter International, Inc. ................................... 447
6,100 Medtronic, Inc. .............................................. 486
-------
933
-------
Motorcycles (2.5%):
12,500 Harley-Davidson............................................... 650
-------
Pharmaceuticals (10.2%):
8,300 Abbott Laboratories........................................... 385
3,500 Bristol-Myers Squibb Co. ..................................... 449
5,600 Eli Lilly & Co. .............................................. 524
11,000 Mylan Laboratories............................................ 336
9,000 Schering-Plough Corp. ........................................ 490
5,900 Warner-Lambert Co. ........................................... 426
-------
2,610
-------
Retail (3.8%):
15,000 Bed Bath & Beyond, Inc. (b)................................... 480
8,100 Home Depot, Inc. ............................................. 489
-------
969
-------
Semiconductors (6.2%):
6,200 Intel Corp. .................................................. 874
9,100 Micron Technology, Inc. (b)................................... 711
-------
1,585
-------
</TABLE>
Continued
-56-
<PAGE>
AMSOUTH MUTUAL FUNDS
Capital Growth Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Soaps & Cleaning Agents (3.8%):
5,100 Clorox Corp. ................................................. $ 638
4,000 Colgate-Palmolive, Co. ....................................... 322
-------
960
-------
Telecommunications--Equipment (2.5%):
4,200 Lucent Technology, Inc. ...................................... 473
25,000 Paging Network, Inc. (b)...................................... 167
-------
640
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Utilities--Telecommunications (10.5%):
6,000 AT&T Corp. ................................................... $ 544
6,150 Century Telephone Enterprise, Inc. ........................... 418
6,600 MCI Worldcom, Inc. (b)........................................ 526
8,000 Qwest Communications International, Inc. (b).................. 480
8,200 Sprint Corp. (b).............................................. 687
-------
2,655
-------
Total Common Stocks 24,829
-------
Total (Cost $19,198) (a) $24,829
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $25,555.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $5,944
Unrealized depreciation.............................................. (313)
------
Net unrealized appreciation.......................................... $5,631
======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-57-
<PAGE>
AMSOUTH MUTUAL FUNDS
Select Equity Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (99.8%):
Computer Software (4.5%):
18,800 IMS Health, Inc. ............................................. $ 689
-------
Consumer Goods (8.0%):
21,700 American Greetings Corp., Class A............................. 857
2,869 Clorox Co. ................................................... 359
-------
1,216
-------
Data Processing & Reproduction (5.1%):
18,400 Automatic Data Processing, Inc. .............................. 783
-------
Electrical Equipment (4.5%):
18,900 Hubbell Harvey, Inc., Class B................................. 692
-------
Electronic Components/ Instruments (9.2%):
24,200 Emerson Electric Co. ......................................... 1,408
-------
Financial Services (7.2%):
23,200 Dun & Bradstreet Corp. ....................................... 708
8,900 H & R Block, Inc. ............................................ 390
-------
1,098
-------
Food Distributors & Wholesalers (10.0%):
21,500 Ralston Purina Co. ........................................... 589
11,000 Smuckers Co., Class A......................................... 275
24,600 SYSCO Corp. .................................................. 670
-------
1,534
-------
Food Processing & Packaging (3.5%):
9,600 Hershey Foods Corp. .......................................... 540
-------
Machinery & Equipment (4.9%):
7,900 Briggs & Stratton Corp. ...................................... 429
9,200 Snap-On, Inc. ................................................ 313
-------
742
-------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- ------------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Media (1.1%):
9,033 Nielsen Media Research....................................... $ 170
-------
Newspapers (9.9%):
14,900 Gannett Co., Inc. ........................................... 981
6,300 Lee Enterprises.............................................. 177
600 Washington Post, Class B..................................... 341
-------
1,499
-------
Office Equipment & Services (4.9%):
10,800 Pitney Bowes, Inc. .......................................... 743
-------
Pharmaceuticals (10.0%):
11,400 Bristol-Myers Squibb Co. .................................... 1,461
800 Warner-Lambert Co. .......................................... 58
-------
1,519
-------
Pollution Control Services & Equipment (6.6%):
20,260 Waste Management, Inc. ...................................... 1,012
-------
Restaurants (9.2%):
17,900 McDonald's Corp. ............................................ 1,411
-------
Tobacco (1.2%):
3,800 Philip Morris Cos., Inc. .................................... 179
-------
Total Common Stocks 15,235
-------
Investment Companies (2.3%):
346,151 AmSouth Prime Obligations Fund............................... 346
-------
Total Investment Companies 346
-------
Total (Cost $13,809) (a) $15,581
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $15,259.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 1,969
Unrealized depreciation............................................. (197)
-------
Net unrealized appreciation......................................... $ 1,772
=======
</TABLE>
See notes to financial statements.
-58-
<PAGE>
AMSOUTH MUTUAL FUNDS
Regional Equity
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- ------------------------------------------------------------ --------
<C> <S> <C>
Common Stocks (98.2%):
Air Freight (2.2%):
30,000 Federal Express Corp. (b)................................... $ 2,451
--------
Apparel (2.0%):
115,000 Russell Corp. .............................................. 2,264
--------
Automotive Parts (4.9%):
115,000 Discount Auto Parts, Inc. (b)............................... 2,573
90,000 Genuine Parts Co. .......................................... 2,869
--------
5,442
--------
Banking (10.7%):
40,000 BankAmerica Corp. .......................................... 2,675
75,000 First American Corp.-Tenn................................... 3,131
90,000 First Tennessee National Corp. ............................. 3,290
50,000 First Union Corp. .......................................... 2,631
--------
11,727
--------
Building Materials (2.6%):
280,000 Interface, Inc. ............................................ 2,888
--------
Commercial Services (5.3%):
85,000 Equifax, Inc. .............................................. 3,363
175,000 Modis Professional Services (b)............................. 2,548
--------
5,911
--------
Construction--Manufactured Homes (3.3%):
268,750 Clayton Homes, Inc. ........................................ 3,695
--------
Diversified Manufacturing (0.5%):
35,000 Walter Industries, Inc. (b)................................. 529
--------
Food Processing & Packaging (6.3%):
160,000 Flowers Industries, Inc. ................................... 3,849
165,000 Lance, Inc. ................................................ 3,073
--------
6,922
--------
Forest & Paper Products (4.6%):
80,000 Caraustar Industries, Inc. ................................. 2,260
80,000 Fort James Corp. ........................................... 2,870
--------
5,130
--------
Furniture (2.2%):
200,000 Heilig-Myers Co. ........................................... 1,313
40,000 Winsloew Furniture, Inc. (b)................................ 1,135
--------
2,448
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- ------------------------------------------------------------ --------
<C> <S> <C>
Common Stocks, continued:
Health Care (4.7%):
380,000 HEALTHSOUTH Corp. (b)....................................... $ 5,154
--------
Manufacturing (2.4%):
120,000 Wolverine Tube, Inc. (b).................................... 2,708
--------
Medical Services (6.1%):
160,000 Coventry Health Care, Inc. (b).............................. 1,560
330,000 Health Management Assoc., Inc., Class A (b)................. 4,146
200,000 MedPartners, Inc. (b)....................................... 1,075
--------
6,781
--------
Oil & Gas Exploration, Production, & Services (5.3%):
70,000 Burlington Resources, Inc. ................................. 2,118
26,000 Mobil Corp. ................................................ 2,279
30,000 Schlumberger Ltd. .......................................... 1,429
--------
5,826
--------
Printing (1.3%):
100,000 John H. Harland Co. ........................................ 1,394
--------
Railroads (2.2%):
90,000 Norfolk Southern Corp. ..................................... 2,481
--------
Restaurants (2.7%):
130,000 CRBL Group, Inc. ........................................... 2,974
--------
Retail (7.7%):
275,000 Hancock Fabrics, Inc. ...................................... 2,183
100,000 Office Depot, Inc. (b)...................................... 3,474
20,000 Saks Inc. (b)............................................... 736
280,000 Stein-Mart, Inc. (b)........................................ 2,013
--------
8,406
--------
Steel (2.7%):
60,000 Nucor Corp. ................................................ 2,940
--------
Telecommunications--Equipment (4.8%):
170,000 Scientific-Atlanta, Inc. ................................... 5,291
--------
Transportation (2.8%):
165,000 Offshore Logistics, Inc. (b)................................ 1,609
70,000 Tidewater, Inc. ............................................ 1,514
--------
3,123
--------
Transportation Leasing & Trucking (2.0%):
90,000 Ryder System, Inc. ......................................... 2,194
--------
</TABLE>
Continued
-59-
<PAGE>
AMSOUTH MUTUAL FUNDS
Regional Equity
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- ------------------------------------------------------------ --------
<C> <S> <C>
Common Stocks, continued:
Utilities--Electric & Gas (5.7%):
80,000 Florida Progress Corp. ..................................... $ 3,330
110,000 Southern Co. ............................................... 2,963
--------
6,293
--------
Utilities--Telecommunications (3.2%):
80,000 BellSouth Corp. ............................................ 3,570
--------
Total Common Stocks 108,542
--------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Investment Companies (2.1%):
2,255,155 AmSouth Prime Obligations Fund............................ $ 2,256
32,449 AmSouth U.S. Treasury Fund................................ 32
--------
Total Investment Companies 2,288
--------
Total (Cost $81,121) (a) $110,830
========
</TABLE>
- --------
Percentages indicated are based on net assets of $110,548.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................ $ 38,331
Unrealized depreciation............................................ (8,622)
--------
Net unrealized appreciation........................................ $ 29,709
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-60-
<PAGE>
AMSOUTH MUTUAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
Common Stocks (92.3%):
Audio/Visual Products (2.9%):
10,700 Polycom Inc. (b)............................................ $ 272
------
Automotive Dealer (0.2%):
1,300 Sonic Automotive Inc. (b)................................... 22
------
Commercial Services (8.2%):
3,400 Lason, Inc. (b)............................................. 218
1,600 Meta Group, Inc. (b)........................................ 40
3,400 Metzler Group Inc. (b)...................................... 171
2,800 NCO Group, Inc. (b)......................................... 99
4,900 Plexus Corp. (b)............................................ 196
2,500 RCM Technologies, Inc. (b).................................. 49
------
773
------
Computer Software (14.0%):
18,700 Acclaim Entertainment Inc. (b).............................. 173
4,700 American Management Systems (b)............................. 172
2,100 Applied Voice Technology (b)................................ 57
2,200 Clarify, Inc. (b)........................................... 59
5,500 Dendrite International, Inc. (b)............................ 168
5,900 Medical Manager Corp. (b)................................... 205
3,000 Mercury Interactive Corp. (b)............................... 189
7,600 Progress Software Corp. (b)................................. 255
1,900 THQ, Inc. (b)............................................... 47
------
1,325
------
Computers & Peripherals (10.1%):
5,300 Complete Business Solutions, Inc. (b)....................... 159
9,600 Mastech Corp. (b)........................................... 233
4,900 Miami Computer Supply Corp. (b)............................. 121
2,500 National Computer Systems, Inc.............................. 96
7,700 Xircom, Inc. (b)............................................ 348
------
957
------
Construction (7.3%):
6,600 Dycom Industries, Inc. (b).................................. 259
4,400 Granite Construction, Inc. ................................. 142
6,800 Insituform Technologies, Class A (b)........................ 102
8,500 URS Corp. (b)............................................... 185
------
688
------
Cosmetics/Personal Care (0.4%):
1,100 Chattem Inc. (b)............................................ 42
------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
Common Stocks, continued:
Home Builders (8.6%):
7,300 D. R. Horton, Inc. ......................................... $ 154
13,700 M.D.C Holdings, Inc. ....................................... 288
6,400 Monaco Coach Corp. (b)...................................... 186
6,900 Ryland Group, Inc. ......................................... 180
------
808
------
Household Products/Wares (2.4%):
7,500 Fossil, Inc. (b)............................................ 222
------
Insurance (1.7%):
6,090 Fidelity National Financial, Inc. .......................... 162
------
Medical Equipment & Supplies (1.1%):
2,100 Resmed Inc. (b)............................................. 103
------
Medical Services (8.8%):
5,300 Medquist, Inc. (b).......................................... 184
5,400 Province Healthcare Co. (b)................................. 116
7,300 Renal Care Group, Inc. (b).................................. 226
9,400 Res-Care, Inc. (b).......................................... 210
3,400 Serologicals Corp. (b)...................................... 90
------
826
------
Medical Services-Veterinary (1.9%):
9,800 Veterinary Centers of America, Inc. (b)..................... 179
------
Metals & Mining (2.3%):
8,250 Stillwater Mining Company (b)............................... 217
------
Office Equipment & Services (0.5%):
2,200 Global Imaging Systems Inc. (b)............................. 47
------
Pharmaceuticals (7.2%):
4,800 Agouron Pharmaceuticals, Inc. (b)........................... 285
5,000 Alpharma Inc. Class A....................................... 173
6,600 Pharmaceutical Product Development (b)...................... 222
------
680
------
Restaurants (2.2%):
7,500 Chilis'--Brinker International Inc. (b)..................... 206
------
Retail (6.5%):
2,900 American Eagle Outfitters (b)............................... 198
4,500 Ann Taylor Stores Corp. (b)................................. 174
5,800 Regis Corp.................................................. 240
------
612
------
</TABLE>
Continued
-61-
<PAGE>
AMSOUTH MUTUAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
Common Stocks, continued:
Semiconductors (1.0%):
2,400 Transwitch Corp. (b)........................................ $ 94
------
Telecommunications (2.0%):
17,000 InterVoice, Inc. (b)........................................ 186
------
Telecommunications-Equipment (3.0%):
8,500 Melita International Corp. (b).............................. 170
4,300 Skytel Communications Inc. (b).............................. 113
------
283
------
Total Common Stocks 8,704
------
U.S. Government Agencies (1.1%):
$ 100 Federal Home Loan Bank, 2/3/99.............................. 100
------
Total U.S. Government Agencies 100
------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
U.S. Treasury Bills (3.7%):
$ 350 4/22/99..................................................... $ 347
------
Total U.S. Treasury Bills 347
------
Investment Companies (4.5%):
419,518 AmSouth Prime Obligations Fund.............................. 420
------
Total Investment Companies 420
------
Total (Cost $8,316) (a) $9,571
======
</TABLE>
- --------
Percentages indicated are based on net assets of $9,417.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $1,447
Unrealized depreciation.............................................. (192)
------
Net unrealized appreciation.......................................... $1,255
======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-62-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (53.7%):
Apparel (0.2%):
140,000 Phillips-Van Heusen Corp. ................................ $ 884
--------
Automotive (1.3%):
81,000 Ford Motor Co. ........................................... 4,976
--------
Automotive Parts (1.0%):
101,000 Arvin Industries, Inc. ................................... 3,996
--------
Banking (3.7%):
40,000 BankAmerica Corp. ........................................ 2,675
40,000 J.P. Morgan & Co., Inc. .................................. 4,220
172,500 Washington Mutual, Inc. .................................. 7,245
--------
14,140
--------
Beverages (0.8%):
70,000 Diageo PLC ADR............................................ 3,154
--------
Business Services (0.9%):
178,000 Reynolds & Reynolds Co., Class A.......................... 3,560
--------
Chemicals--Speciality (1.4%):
230,000 Engelhard Corp. .......................................... 4,499
90,000 M.A. Hanna Co. ........................................... 996
--------
5,495
--------
Computers & Peripherals (2.0%):
395,000 Cabletron Systems, Inc. (b)............................... 4,123
20,000 IBM Corp. ................................................ 3,665
--------
7,788
--------
Consumer Goods (0.8%):
75,000 American Greetings Corp., Class A......................... 2,963
--------
Electrical & Electronic (2.2%):
130,838 AMP, Inc. ................................................ 6,885
32,000 Avnet, Inc. .............................................. 1,438
--------
8,323
--------
Entertainment (0.2%):
50,000 Circus Circus Enterprises, Inc. (b)....................... 681
--------
Financial Services (0.9%):
110,000 Dun & Bradstreet Corp. ................................... 3,355
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Food Processing & Packaging (1.2%):
5,000 Dole Food, Inc. .......................................... $ 152
140,000 Sara Lee Corp. ........................................... 3,570
36,000 Universal Foods Corp. .................................... 810
--------
4,532
--------
Forest & Paper Products (4.3%):
15,000 Champion International Corp. ............................. 526
110,000 Union Camp Corp. ......................................... 6,785
100,000 Weyerhauser Co. .......................................... 5,413
115,000 Willamette Industries, Inc. .............................. 4,025
--------
16,749
--------
Health Care (1.6%):
50,000 Aetna, Inc. .............................................. 4,506
33,000 United Healthcare Corp. .................................. 1,477
--------
5,983
--------
Household Products/Wares (1.5%):
180,000 Rubbermaid, Inc. ......................................... 5,805
--------
Insurance (1.9%):
60,000 Marsh & McLennan Cos., Inc. .............................. 3,773
120,000 St. Paul Cos., Inc. ...................................... 3,525
--------
7,298
--------
Manufacturing (0.2%):
31,000 Kennametal, Inc. ......................................... 721
--------
Medical Supplies (3.6%):
100,000 Baxter International, Inc. ............................... 7,093
105,000 C.R. Bard, Inc. .......................................... 5,316
60,000 DENTSPLY International, Inc. ............................. 1,650
--------
14,059
--------
Metals & Mining (0.2%):
40,000 Barrick Gold Corp. ....................................... 763
--------
Newspapers (1.9%):
30,000 Dow Jones & Co., Inc. .................................... 1,343
90,000 Gannett Co., Inc. ........................................ 5,923
--------
7,266
--------
</TABLE>
Continued
-63-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas Exploration, Production, & Services (5.4%):
20,000 Atlantic Richfield Co. ................................... $ 1,148
75,000 Burlington Resources, Inc. ............................... 2,269
80,000 Kerr-McGee Corp. ......................................... 2,715
30,000 Noble Affiliates.......................................... 591
115,000 Sunoco, Inc. ............................................. 4,038
80,000 Texaco, Inc. ............................................. 3,789
145,000 Ultramar Diamond Shamrock Corp. .......................... 3,190
130,000 USX-Marathon Group........................................ 2,958
--------
20,698
--------
Packaging (0.1%):
10,000 Crown Cork & Seal, Inc. .................................. 317
--------
Pharmaceuticals (2.1%):
50,000 American Home Products Corp. ............................. 2,934
90,000 Pharmacia & Upjohn, Inc. ................................. 5,175
--------
8,109
--------
Pollution Control Services & Equipment (1.1%):
83,375 Waste Management, Inc. ................................... 4,164
--------
Railroads (0.6%):
60,000 CSX Corp. ................................................ 2,415
--------
Retail (5.5%):
110,000 CVS Corp. ................................................ 6,022
58,000 Dayton Hudson Corp. ...................................... 3,698
105,000 Dillard's, Inc., Class A.................................. 2,605
70,000 May Department Stores Co. ................................ 4,225
30,000 The Limited, Inc. ........................................ 1,024
48,000 Wal-Mart Stores, Inc. .................................... 4,128
--------
21,702
--------
Temporary Services (0.2%):
100,000 Olsten Corp. ............................................. 813
--------
Transportation Leasing & Trucking (1.2%):
105,000 Ryder System, Inc. ....................................... 2,560
55,000 USFreightways Corp. ...................................... 1,918
--------
4,478
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Utilities--Electric & Gas (2.0%):
140,000 Baltimore Gas & Electric Co............................... $ 3,815
140,000 Southern Co. ............................................. 3,771
--------
7,586
--------
Utilities--Telecommunications (3.7%):
30,000 AT&T Corp. ............................................... 2,723
110,000 BellAtlantic Corp. ....................................... 6,599
110,000 BellSouth Corp. .......................................... 4,909
--------
14,231
--------
Total Common Stocks 207,004
--------
Corporate Bonds (22.7%):
Appliances (0.1%):
$ 500 Whirlpool Corp., 9.50%, 6/15/00........................... 524
--------
Automotive (0.2%):
700 General Motors Corp., 9.63%, 12/1/00...................... 752
--------
Automotive--Finance (2.0%):
2,500 Chrysler Financial Corp., 6.08%, 4/6/01................... 2,534
2,000 General Motors Acceptance Corp., 6.00%, 2/1/02............ 2,028
3,000 Toyota Motor Credit Corp., 5.50%, 9/17/01................. 3,007
--------
7,569
--------
Banking (3.6%):
930 BankAmerica Corp., 9.50%, 4/1/01.......................... 1,002
1,000 Bankers Trust Co., 9.50%, 6/14/00......................... 1,045
2,500 Mellon Financial Co., 6.30%, 6/1/00....................... 2,535
4,185 NationsBank Corp., 5.38%, 4/15/00......................... 4,189
2,000 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 2,218
1,565 Wachovia Corp., 5.40%, 2/20/01............................ 1,569
1,475 Wachovia Corp., 6.63%, 11/15/06........................... 1,575
--------
14,133
--------
Brokerage Services (1.9%):
3,000 Bear Stearns & Co., Inc., 6.50%, 8/1/02................... 3,060
2,000 Merrill Lynch & Co., Inc., 6.00%, 3/1/01.................. 2,020
2,000 Morgan Stanley Group, Inc., 8.10%, 6/24/02................ 2,148
--------
7,228
--------
</TABLE>
Continued
-64-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Chemicals (0.8%):
$3,000 Monsanto Co., 6.00%, 7/1/00............................... $ 3,026
--------
Consumer Goods (0.5%):
2,000 Procter & Gamble Co., 5.25%, 9/15/03...................... 2,010
--------
Diversified Manufacturing (0.7%):
2,500 Avnet Inc., 6.45%, 8/15/03................................ 2,563
--------
Electronic Components/ Instruments (0.5%):
2,000 Honeywell, Inc., 6.75%, 3/15/02........................... 2,085
--------
Farm Equipment (0.8%):
3,000 John Deere Capital Corp., 5.85%, 1/15/01.................. 3,019
--------
Financial Services (1.9%):
4,000 Associates Corp. N. A., 6.75%, 7/15/01.................... 4,124
1,200 British Telecom Finance, Inc., 9.38%, 2/15/99............. 1,202
1,000 Commercial Credit Co., 7.88%, 7/15/04..................... 1,098
1,000 Pitney Bowes Credit Corp.,
6.80%, 10/1/01........................................... 1,040
--------
7,464
--------
Food Products & Services (0.3%):
1,000 H.J. Heinz Co., 6.75%, 10/15/99........................... 1,010
--------
Forest & Paper Products (0.3%):
1,000 Mead Corp., 6.60%, 3/1/02................................. 1,028
--------
Industrial Goods & Services (1.8%):
500 Browning-Ferris Industries, Inc., 6.10%, 1/15/03.......... 509
2,000 Caterpillar Financial Services, 6.02%, 4/15/02............ 2,030
1,000 Dresser Industries, Inc., 6.25%, 6/1/00................... 1,011
3,000 First Data Corp., 6.75%, 7/15/05.......................... 3,210
--------
6,760
--------
Insurance (0.4%):
1,400 Capital Holding Corp., 9.20%, 4/17/01..................... 1,512
140 Chubb Corp., 8.75%, 11/15/99.............................. 144
--------
1,656
--------
Newspapers (0.5%):
2,000 Gannett Co., Inc., 5.85%, 5/1/00.......................... 2,020
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Oil & Gas Exploration, Production, & Services (0.4%):
$1,550 BP America, Inc., 9.38%, 11/1/00.......................... $ 1,660
--------
Pollution Control Services & Equipment (0.8%):
1,000 Waste Management, Inc., 8.25%, 11/15/99................... 1,020
2,000 Waste Management, Inc., 7.70%, 10/1/02.................... 2,118
--------
3,138
--------
Retail (2.4%):
2,000 J.C. Penney Co., Inc., 7.25%, 4/1/02...................... 2,090
2,000 Sears, Roebuck and Co., 6.00%, 3/20/03.................... 2,020
3,000 Wal-Mart Stores, Inc., 5.85%, 6/1/00...................... 3,026
2,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02..................... 2,095
--------
9,231
--------
Telecommunications--Equipment (0.5%):
1,730 Lucent Technologies, Inc., 6.90%, 7/15/01................. 1,804
--------
Utilities--Electric & Gas (2.0%):
3,450 Duke Power Co., 7.00%, 6/1/00............................. 3,532
1,275 Georgia Power Co., 6.13%, 9/1/99.......................... 1,283
2,000 Oklahoma Gas & Electric Co., 6.25%, 10/15/00.............. 2,035
900 Pennsylvania Power & Light Co., 6.00%, 6/1/00............. 909
--------
7,759
--------
Utilities--Telecommunications (0.3%):
1,000 AT&T Corp., 7.13%, 1/15/02................................ 1,050
--------
Total Corporate Bonds 87,489
--------
Municipal Bonds (1.1%):
Illinois (1.1%):
3,800 Chicago Public Building, 7.00%, 1/1/06.................... 4,114
--------
Total Municipal Bonds 4,114
--------
U.S. Government Agencies (8.9%):
Fannie Mae (2.7%):
5,400 5.50%, 2/2/01............................................. 5,458
5,000 6.21%, 11/7/07............................................ 5,297
--------
10,755
--------
</TABLE>
Continued
-65-
<PAGE>
AMSOUTH MUTUAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (2.5%):
$7,000 5.83%, 2/9/06............................................. $ 7,230
2,000 7.10%, 4/10/07............................................ 2,239
--------
9,469
--------
Government National Mortgage Assoc. (2.6%):
9,951 6.50%, 11/20/28........................................... 10,023
--------
Tennessee Valley Authority (1.1%):
4,000 6.00%, 11/1/00............................................ 4,060
--------
Total U.S. Government Agencies 34,307
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Bonds (9.2%):
$ 4,600 5.88%, 11/15/05.......................................... $ 4,902
6,000 7.50%, 11/15/16.......................................... 7,488
10,000 7.25%, 8/15/22........................................... 12,504
9,400 6.25%, 8/15/23........................................... 10,556
--------
Total U.S. Treasury Bonds 35,450
--------
Investment Companies (3.5%):
13,674,719 AmSouth Prime Obligations Fund........................... 13,675
2,464 AmSouth U.S. Treasury Fund............................... 2
--------
Total Investment Companies 13,677
--------
Total (Cost $303,542) (a) $382,041
========
</TABLE>
- --------
Percentages indicated are based on net assets of $385,640.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 86,163
Unrealized depreciation............................................... (7,664)
--------
Net unrealized appreciation........................................... $ 78,499
========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Co.
See notes to financial statements.
-66-
<PAGE>
AMSOUTH MUTUAL FUNDS
Limited Maturity Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds (83.8%):
Automotive--Finance (9.8%):
$1,000 Chrysler Financial Corp., 6.08%, 4/6/01................... $ 1,014
4,000 Ford Motor Credit Co., 8.20%, 2/15/02..................... 4,299
3,500 General Motors Acceptance Corp., 6.75%, 2/7/02............ 3,623
2,000 Toyota Motor Credit Corp.,
5.50%, 9/17/01........................................... 2,005
--------
10,941
--------
Banking (9.0%):
3,000 Bank One Corp., 6.25%, 9/1/00............................. 3,045
1,500 Firstar Bank, 6.25%, 12/1/02.............................. 1,556
2,000 NationsBank Corp., 5.38%, 4/15/00......................... 2,003
2,500 NationsBank Corp., 5.70%, 9/11/00......................... 2,519
900 Wachovia Bank, 6.30%, 3/15/01............................. 918
--------
10,041
--------
Brokerage Services (5.0%):
2,500 Bear Stearns & Co., Inc., 6.50%, 6/15/00.................. 2,529
1,000 Bear Stearns & Co., Inc., 6.50%, 7/5/00................... 1,012
2,000 Dean Witter Discover & Co., 6.26%, 3/15/00................ 2,025
--------
5,566
--------
Computers & Peripherals (0.9%):
1,000 IBM Corp., 5.95%, 6/2/03.................................. 1,026
--------
Consumer Goods (1.8%):
2,000 Procter & Gamble Co., 5.25%, 9/15/03...................... 2,010
--------
Electronic Components/Instruments (0.8%):
850 Honeywell, Inc., 6.75%, 3/15/02........................... 886
--------
Farm Equipment (2.7%):
3,000 John Deere Capital Corp., 5.85%, 1/15/01.................. 3,019
--------
Financial Services (14.8%):
1,200 Associates Corp. of North America, 7.50%, 5/15/99......... 1,208
3,000 Associates Corp. of North America, 7.25%, 9/1/99.......... 3,038
500 Beneficial Corp., 7.32%, 11/17/99......................... 508
2,000 CIT Group Holdings, 6.38%, 10/1/02........................ 2,053
1,000 Citigroup, Inc., 6.13%, 6/15/00........................... 1,010
1,000 Commercial Credit Co., 8.26%, 11/1/01..................... 1,071
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services, continued:
$2,500 General Electric Capital Corp., 6.15%, 11/5/01............ $ 2,563
5,000 Household Finance Co., 8.95%, 9/15/99..................... 5,113
--------
16,564
--------
Food Products & Services (5.3%):
1,000 Campbell Soup Co., 6.15%, 12/1/02......................... 1,035
2,850 Diagio PLC, 6.50%, 9/15/99................................ 2,867
1,000 McDonald's Corp., 5.90%, 5/11/01.......................... 1,014
1,000 McDonald's Corp., 6.00%, 6/23/02.......................... 1,024
--------
5,940
--------
Forest & Paper Products (0.9%):
1,000 Mead Corp., 6.60%, 3/1/02................................. 1,028
--------
Health Care (1.8%):
2,000 McKesson Corp., 6.88%, 3/1/02............................. 2,070
--------
Industrial Goods & Services (5.6%):
2,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02............ 2,160
1,000 Caterpillar Financial Services, 6.02%, 4/15/02............ 1,015
3,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02.............. 3,131
--------
6,306
--------
Insurance (6.1%):
2,000 American General Corp., 7.70%, 10/15/99................... 2,036
1,500 AON Corp., 6.88%, 10/1/99................................. 1,514
1,000 St. Paul Cos., Inc., Series A, 6.17%, 1/15/01............. 1,014
2,200 USLife Corp., 6.38%, 6/15/00.............................. 2,220
--------
6,784
--------
Leasing (1.8%):
2,000 USL Capital Corp., 8.13%, 2/15/00......................... 2,060
--------
Office Equipment & Services (1.2%):
1,274 Xerox Corp., 8.13%, 4/15/02............................... 1,371
--------
Oil & Gas Exploration, Production, & Services (2.1%):
2,200 Amoco Co., 6.25%, 10/15/04................................ 2,318
--------
</TABLE>
Continued
-67-
<PAGE>
AMSOUTH MUTUAL FUNDS
Limited Maturity Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Retail (4.1%):
$1,000 Sears, Roebuck and Co., 6.00%, 3/20/03.................... $ 1,010
3,500 Wal-Mart Stores, Inc., 5.85%, 6/1/00...................... 3,531
--------
4,541
--------
Telecommunications--Equipment (0.9%):
1,000 Lucent Technologies, Inc., 6.90%, 7/15/01................. 1,043
--------
Utilities--Electric & Gas (4.6%):
600 Baltimore Gas & Electric Co., 5.50%, 7/15/00.............. 604
3,000 Florida Power Corp., 6.50%, 12/1/99....................... 3,034
1,500 Georgia Power Co., 6.13%, 9/1/99.......................... 1,509
--------
5,147
--------
Utilities--Telecommunications (4.6%):
3,000 Ameritech Capital Funding, 6.13%, 10/15/01................ 3,071
2,000 BellSouth Telecommunications, 6.00%, 6/15/02.............. 2,043
--------
5,114
--------
Total Corporate Bonds 93,775
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- -------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Bonds (5.6%):
$ 6,000 6.38%, 8/15/02.......................................... $ 6,322
--------
Total U.S. Treasury Bonds 6,322
--------
U.S. Treasury Notes (7.5%):
8,000 5.88%, 2/15/04.......................................... 8,441
--------
Total U.S. Treasury Notes 8,441
--------
Investment Companies (1.6%):
1,795,349 AmSouth Prime Obligations Fund.......................... 1,796
332 AmSouth U.S. Treasury Fund.............................. --*
--------
Total Investment Companies 1,796
--------
Total (Cost $107,203) (a) $110,334
========
</TABLE>
- --------
Percentages indicated are based on net assets of $112,020.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $3,239
Unrealized depreciation.............................................. (108)
------
Net unrealized appreciation.......................................... $3,131
======
</TABLE>
* Due to rounding, figure was below the thousand dollar threshold.
See notes to financial statements.
-68-
<PAGE>
AMSOUTH MUTUAL FUNDS
Government Income Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
U.S. Government Agencies (80.0%):
Fannie Mae (18.5%):
$1,000 5.75%, 4/15/03.............................................. $1,029
700 5.94%, 12/12/05............................................. 730
------
1,759
------
Government National Mortgage Assoc. (61.5%):
421 7.00%, 12/15/26............................................. 431
2,622 7.50%, 6/15/24-12/15/25..................................... 2,708
327 8.00%, 7/15/26.............................................. 340
321 8.50%, 12/15/19-2/15/23..................................... 339
1,063 9.00%, 6/15/18-9/15/22...................................... 1,128
827 9.50%, 5/15/18-8/15/21...................................... 886
------
5,832
------
Total U.S. Government Agencies 7,591
------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ ------
<C> <S> <C>
U.S. Treasury Bonds (10.5%):
$ 800 7.50%, 11/15/16............................................. $ 998
------
Total U.S. Treasury Bonds 998
------
U.S. Treasury Notes (5.4%):
500 5.50%, 5/31/03.............................................. 516
------
Total U.S. Treasury Notes 516
------
Investment Companies (3.6%):
338,677 AmSouth U.S. Treasury Fund.................................. 339
------
Total Investment Companies 339
------
Total (Cost $9,096) (a) $9,444
======
</TABLE>
- --------
Percentages indicated are based on net assets of $9,490.
(a) Represents cost for federal income tax purposes and differs from value by
net appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................................................ $362
Unrealized depreciation................................................ (14)
----
Net unrealized appreciation............................................ $348
====
</TABLE>
See notes to financial statements.
-69-
<PAGE>
AMSOUTH MUTUAL FUNDS
Bond Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds (51.6%):
Aerospace/Defense (0.9%):
$3,000 Boeing Corp., 6.88%, 11/1/06.............................. $ 3,259
--------
Appliances (0.1%):
500 Whirlpool Corp., 9.50%, 6/15/00........................... 524
--------
Automotive (0.3%):
908 General Motors Corp., 9.63%, 12/1/00...................... 975
--------
Automotive--Finance (1.9%):
3,485 Ford Motor Credit Co., 6.25%, 12/8/05..................... 3,602
3,000 Toyota Motor Credit Corp., 5.50%, 9/17/01................. 3,008
--------
6,610
--------
Banking (5.9%):
3,157 Bank One Corp., 7.00%, 7/15/05............................ 3,358
1,150 BankAmerica Corp., 9.50%, 4/1/01.......................... 1,239
4,000 Fifth Third Bank, 6.75%, 7/15/05.......................... 4,245
3,856 J.P. Morgan & Co., 7.63%, 9/15/04......................... 4,198
4,306 NationsBank Corp., 5.38%, 4/15/00......................... 4,312
3,159 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 3,503
--------
20,855
--------
Beverages (1.0%):
3,500 Coca-Cola Enterprises, Inc., 6.38%, 8/1/01................ 3,588
--------
Brokerage Services (2.4%):
2,500 Bear Stearns & Co. Inc., 6.63%, 10/1/04................... 2,559
3,500 Dean Witter Discover & Co., 6.50%, 11/1/05................ 3,653
750 Merrill Lynch & Co., Inc., 8.25%, 11/15/99................ 769
1,450 Merrill Lynch & Co., Inc., 6.00%, 2/12/03................. 1,468
--------
8,449
--------
Entertainment (0.8%):
3,000 Walt Disney Company, 5.13%, 12/15/03...................... 2,981
--------
Financial Services (6.6%):
2,000 American Express Credit Corp., 6.50%, 8/1/00.............. 2,039
3,500 Ameritech Capital, 5.65%, 1/15/01......................... 3,530
2,000 Associates Corp., 5.75%, 10/15/03......................... 2,028
3,000 Associates Corp., 5.75%, 11/01/03......................... 3,041
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services, continued:
$3,091 Avco Financial Service Corp., 5.50%, 4/1/00............... $ 3,097
1,310 British Telecom Finance, Inc., 9.38%, 2/15/99............. 1,312
2,000 Commercial Credit Co., 7.38%, 3/15/02..................... 2,105
3,000 Commercial Credit Co., 6.50%, 8/1/04...................... 3,101
1,000 Margaretten Financial Corp., 6.75%, 6/15/00............... 1,018
2,000 Norwest Financial, Inc., 6.63%, 7/15/04................... 2,110
--------
23,381
--------
Food Products & Services (0.8%):
2,750 Campbell Soup Co., 6.15%, 12/1/02......................... 2,846
--------
Forest & Paper Products (0.9%):
3,000 Mead Corp., 6.60%, 3/1/02................................. 3,083
--------
Industrial Goods & Services (5.1%):
3,000 Air Products & Chemicals, Inc., 8.35%, 1/15/02............ 3,240
2,655 Browning-Ferris Industries, Inc., 6.10%, 1/15/03.......... 2,701
2,000 E. I. Dupont de Nemours & Co., 6.50%, 9/1/02.............. 2,088
2,570 E. I. Dupont de Nemours & Co., 6.75%, 10/15/02............ 2,708
2,000 First Data Corp., 6.75%, 7/15/05.......................... 2,140
1,500 Illinois Tool Works, Inc., 5.88%, 3/1/00.................. 1,513
3,456 Rockwell International Corp., 6.63%, 6/1/05............... 3,668
--------
18,058
--------
Insurance (2.1%):
1,000 AON Corp., 6.88%, 10/1/99................................. 1,009
1,600 Capital Holding Corp., 9.20%, 4/17/01..................... 1,728
330 Chubb Corp., 8.75%, 11/15/99.............................. 339
1,000 Chubb Corp., 6.15%, 8/15/05............................... 1,034
3,100 Hartford Life, Inc., 6.90%, 6/15/04....................... 3,271
--------
7,381
--------
Office Equipment & Services (0.6%):
2,000 Xerox Corporation, 7.15%, 8/1/04.......................... 2,140
--------
</TABLE>
Continued
-70-
<PAGE>
AMSOUTH MUTUAL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Oil & Gas Exploration, Production, &
Services (1.2%):
$3,158 BP America, Inc., 9.38%, 11/1/00.......................... $ 3,383
864 Exxon Capital Corp., 7.45%, 12/15/01...................... 917
--------
4,300
--------
Pharmaceuticals (0.9%):
3,000 Warner-Lambert Co., 5.75%, 1/15/03........................ 3,068
--------
Photography (1.0%):
3,100 Eastman Kodak, 9.38%, 3/15/03............................. 3,565
--------
Pollution Control Services & Equipment
(1.3%):
2,449 Waste Management, Inc., 6.38%, 12/1/03.................... 2,501
2,000 Waste Management, Inc., 7.00%, 5/15/05.................... 2,110
--------
4,611
--------
Railroads (1.0%):
2,395 Union Pacific Corp., 6.25%, 3/15/99....................... 2,395
1,000 Union Pacific Corp., 7.00%, 6/15/00....................... 1,016
--------
3,411
--------
Retail (2.9%):
2,000 JC Penney & Co., 6.13%, 11/15/03.......................... 2,055
3,000 Nike, Inc., 6.38%, 12/1/03................................ 3,113
4,000 Wal-Mart Stores, Inc., 5.85%, 6/1/00...................... 4,034
1,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02..................... 1,048
--------
10,250
--------
Utilities--Electric & Gas (7.5%):
3,100 Baltimore Gas &
Electric, 7.50%, 1/15/07................................. 3,502
2,000 Consolidated Edison Co.
of New York, Inc., 6.63%, 2/1/02......................... 2,075
3,500 National Rural
Utilities, 5.00%, 10/1/02................................ 3,461
3,100 National Rural Utilities, 6.38%, 10/15/04................. 3,278
1,000 Northern States Power Co., 5.50%, 2/1/99.................. 1,000
2,750 Northern States Power Co., 7.88%, 10/1/01................. 2,936
2,250 Oklahoma Gas & Electric Co., 6.25%, 10/15/00.............. 2,289
2,000 Tampa Electric Co., 6.13%, 5/1/03......................... 2,073
2,500 Virginia Electric & Power Co., 8.00%, 3/1/04.............. 2,788
3,500 Wisconsin Electric Power, 6.63%, 11/15/06................. 3,779
--------
27,181
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Utilities--Telecommunications (6.4%):
$2,000 Bell Atlantic Corp., 6.25%, 2/15/04....................... $ 2,073
3,500 BellSouth Telecommunications, 6.50%, 6/15/05.............. 3,722
2,009 Chesapeake & Potomac Telephone, 6.00%, 5/1/03............. 2,054
2,000 GTE California, Inc., 5.63%, 2/1/01....................... 2,013
2,295 GTE Northwest, Inc., Series A, 7.38%, 5/1/01.............. 2,393
1,650 GTE Southwest, Inc., Series A, 5.82%, 12/1/99............. 1,658
500 Michigan Bell Telephone, 5.88%, 9/15/99................... 503
2,000 Southern New England Telecommunications Corp.,
6.50%, 2/15/02........................................... 2,063
2,000 Southwestern Bell Telephone,
6.63%, 4/1/05............................................ 2,125
4,000 US West Communications Group,
6.63%, 9/15/05........................................... 4,249
--------
22,853
--------
Total Corporate Bonds 183,369
--------
U.S. Government Agencies (13.7%):
Fannie Mae (10.1%):
3,000 6.59%, 5/21/02............................................ 3,142
7,500 7.05%, 11/12/02........................................... 8,020
1,500 7.40%, 7/1/04............................................. 1,662
15,000 8.40%, 10/25/04........................................... 15,349
7,300 6.56% 11/26/07............................................ 7,608
--------
35,781
--------
Freddie Mac (0.8%):
700 7.14%, 3/12/07............................................ 739
2,000 7.10%, 4/10/07............................................ 2,239
--------
2,978
--------
Government National Mortgage Assoc. (2.8%):
9,902 7.00%, 11/20/28........................................... 10,106
--------
Total U.S. Government Agencies 48,865
--------
</TABLE>
Continued
-71-
<PAGE>
AMSOUTH MUTUAL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Bonds (30.1%):
$18,000 5.75%, 8/15/03............................................ $ 18,782
15,000 5.88%, 11/15/05........................................... 15,985
11,000 6.50%, 10/15/06........................................... 12,192
17,600 3.38%, 1/15/07............................................ 17,099
17,000 7.50%, 11/15/16........................................... 21,215
19,360 6.25%, 8/15/23............................................ 21,741
--------
Total U.S. Treasury Bonds 107,014
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
----------- ------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Strips (0.9%):
$ 4,000 2/15/04................................................ $ 3,172
--------
Total U.S. Treasury Strips 3,172
--------
Investment Companies (3.5%):
12,626,526 AmSouth Prime Obligations Fund......................... 12,627
6 AmSouth U.S. Treasury Fund............................. --*
--------
Total Investment Companies 12,627
--------
Total (Cost $336,048) (a) $355,047
========
</TABLE>
- --------
Percentages indicated are based on net assets of $355,855.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................ $ 19,903
Unrealized depreciation............................................ (904)
--------
Net unrealized appreciation........................................ $ 18,999
========
</TABLE>
* Due to rounding, figure was below the thousand dollar threshold.
See notes to financial statements.
-72-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Municipal Bonds (96.9%):
Alabama (56.8%):
$ 2,245 Alabama State Agriculture & Mechanical University Revenue,
4.55%, 11/1/09, Callable 5/1/08 @ 102, MBIA................ $ 2,306
2,355 Alabama State Agriculture & Mechanical University Revenue,
4.65%, 11/1/10, Callable 5/1/08 @ 102, MBIA................ 2,417
2,035 Alabama State Agriculture & Mechanical University Revenue,
6.50%, 11/1/25, MBIA, Callable 11/1/05 @ 102............... 2,394
3,060 Alabama State Corrections Institution, 4.90%, 4/1/03, MBIA.. 3,205
1,520 Alabama State Industrial Access Road & Bridge Corp., Capital
Improvements, Series A, 4.60%, 6/1/03...................... 1,569
3,700 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.75%, 1/1/05, AMBAC.................... 3,889
3,880 Alabama State Judicial Building Authority, Judicial
Facilties Project, 4.85%, 1/1/06, AMBAC.................... 4,106
2,640 Alabama State Mental Health Finance Authority, Special Tax,
4.88%, 5/1/03, MBIA........................................ 2,768
7,350 Alabama State Public School & College Authority, 4.75%,
12/1/03, Callable 6/1/03 @ 103............................. 7,722
3,390 Alabama State Public School & College Authority, 5.00%,
12/1/05, Callable 6/1/03 @ 103............................. 3,639
10,000 Alabama State Public School & College Authority Revenue,
Series A, 4.38%, 8/1/04.................................... 10,339
5,000 Alabama State Public School & College Authority, Capital
Improvement, 4.75%, 11/1/06, Callable 11/1/05 @ 101........ 5,292
1,760 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.25%, 8/15/08,
Callable 8/15/06 @ 100, AMBAC.............................. 1,898
1,350 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.38%, 8/15/10,
Callable 8/15/06 @ 100, AMBAC.............................. 1,451
2,495 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.40%, 8/15/11,
Callable 8/15/06 @ 100, AMBAC.............................. 2,656
5,000 Alabama State Water Pollution Control Authority, Revolving
Fund, Series B, 5.50%, 8/15/16,
Callable 8/15/06 @100...................................... 5,264
1,000 Auburn University, University Revenues, General Fee, 5.25%,
6/1/06, Callable 6/1/03 @ 102, MBIA........................ 1,070
1,040 Birmingham Capital Improvement, Series B, 4.80%, 10/1/08,
Callable 4/1/07 @ 102...................................... 1,104
1,375 Birmingham Waterworks & Sewer Board, Water & Sewer Revenue,
5.90%, 1/1/03, Callable 1/1/02 @ 102....................... 1,490
1,340 Birmingham, Capital Improvements, 4.75%, 10/1/10, Callable
4/1/08 @ 102............................................... 1,391
1,430 Birmingham, Capital Improvements, 4.85%, 10/1/11, Callable
4/1/08 @ 102............................................... 1,483
1,500 Birmingham, GO, 4.90%, 7/1/06............................... 1,598
3,465 Birmingham, Industrial Water Board, Industrial Water Supply,
6.20%, 7/1/08, Pre-refunded 1/1/07 @ 100................... 3,797
1,100 Birmingham, Industrial Water Board, Industrial Water Supply,
ETM, 5.30%, 3/1/04, Callable 3/1/03 @ 102.................. 1,170
1,000 Birmingham, Industrial Water Board, Industrial Water Supply,
ETM, 5.40%, 3/1/05, Callable 3/1/03 @ 102.................. 1,069
1,300 Birmingham, Industrial Water Board, Industrial Water Supply,
5.50%, 3/1/06, Pre-refunded 3/1/05 @ 100................... 1,417
1,045 Clark & Mobile County, Gas District, 5.60%, 12/1/17,
Callable 12/1/06 @ 102, MBIA............................... 1,119
9,500 Daphne, Special Care Facilities Financing Authority,
Presbyterian Retirement Corp., 7.30%, 8/15/18,
Pre-refunded 8/15/01 @ 100................................. 10,371
720 Decatur, Warrants, Series E, Limited GO, 5.10%, 8/1/05,
Callable 8/1/02 @ 102...................................... 762
760 Decatur, Warrants, Series E, Limited GO, 5.20%, 8/1/06,
Callable 8/1/02 @ 102...................................... 808
750 Decatur, Warrants, Series E, Limited GO, 5.25%, 8/1/08,
Callable 8/1/02 @ 102...................................... 792
780 Decatur, Warrants, Series E, Limited GO, 5.30%, 8/1/09,
Callable 8/1/02 @ 102...................................... 822
2,845 Florence, Warrants, Series A, GO, 4.65%, 9/1/03, MBIA....... 2,962
1,180 Florence, Warrants, Series A, GO, 4.35%, 12/1/07, FSA....... 1,212
1,230 Florence, Warrants, Series A, GO, 4.40%, 12/1/08............ 1,264
1,290 Florence, Warrants, Series A, GO, 4.50%, 12/1/09............ 1,328
</TABLE>
Continued
-73-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Municipal Bonds, continued
Alabama, continued:
$1,345 Florence, Warrants, Series A, GO, 4.60%, 12/1/10, Callable
12/1/08 @ 102............................................ $ 1,385
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..... 5,317
5,450 Hoover, Warrants, 4.50%, 3/1/13, Pre-refunded 3/1/03 @
100...................................................... 5,450
550 Huntsville Electric, 4.60%, 12/1/09, Callable 12/1/07 @
102...................................................... 571
660 Huntsville Electric, 4.70%, 12/1/10, Callable 12/1/07 @
102...................................................... 684
680 Huntsville Electric, 4.80%, 12/1/11, Callable 12/1/07 @
102...................................................... 704
3,120 Huntsville, Warrants, Series B, GO, 4.00%, 11/1/05........ 3,164
3,245 Huntsville, Warrants, Series B, GO, 4.00%, 11/1/06........ 3,275
3,380 Huntsville, Warrants, Series B, GO, 4.10%, 11/1/07........ 3,417
2,500 Huntsville, Water System, Warrants, 5.00%, 5/1/02,........ 2,610
3,125 Huntsville, Water System, Warrants, 5.05%, 5/1/03,
Callable 5/1/02 @ 102, AMBAC............................. 3,294
1,000 Jefferson County Board of Education, Capital Outlay,
5.40%, 2/15/10, Callable 2/15/03 @ 102, AMBAC............ 1,085
4,000 Jefferson County, GO, 5.30%, 4/1/09, Pre-refunded 4/1/03 @
102...................................................... 4,229
2,400 Jefferson County, Sewer Revenue Warrants, 5.40%, 9/1/04,
Pre-refunded 3/1/03 @ 102.5, MBIA........................ 2,617
5,000 Jefferson County, Warrants, GO, 5.00%, 4/1/04, Callable
4/1/03 @ 102............................................. 5,272
2,500 Mobile County Board of School Commissioners, Warrants,
Capital Outlay, 4.80%, 3/1/02, AMBAC..................... 2,595
1,350 Mobile County, Series A, GO, 5.00%, 2/1/04, Callable
2/1/03 @ 102............................................. 1,426
1,000 Mobile County, Warrants, Series A, Limited GO, 5.00%,
2/1/04, Callable 2/1/03 @ 102............................ 1,057
5,000 Mobile County, Warrants, Series A, Limited GO, 5.10%,
2/1/05, Callable 2/1/03 @ 102............................ 5,324
1,630 Mobile, Warrants, GO, 6.50%, 2/15/05...................... 1,864
1,685 Mobile, Warrants, GO, 6.50%, 2/15/06, AMBAC............... 1,951
3,250 Mobile, Water & Sewer Commissioners, Water & Sewer
Revenue, 5.00%, 1/1/05, FGIC............................. 3,455
1,500 Montgomery County, Warrants, GO, 5.00%, 11/1/04, Callable
11/1/04 @ 102............................................ 1,593
1,040 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/05,
Callable 5/1/03 @ 102.................................... 1,105
1,000 Montgomery, Warrants, Series A, GO, 5.00%, 5/1/06,
Callable 5/1/03 @ 102.................................... 1,058
3,000 Montgomery, Waterworks & Sanitary Sewer Board, 5.50%,
9/1/08, Callable 9/1/06 @ 101, MBIA...................... 3,308
1,000 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
5.70%, 9/1/02............................................ 1,069
2,500 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.25%, 9/1/08, Callable 9/1/02 @ 102..................... 2,744
3,565 Montgomery, Waterworks & Sanitary Sewer Board, Series B,
6.30%, 9/1/10, Callable 9/1/02 @ 102..................... 3,918
1,990 Shelby County, Warrants, Series A, 5.60%, 8/1/02, AMBAC... 2,127
1,830 Shelby County, Warrants, Series A, 5.70%, 2/1/03, AMBAC... 1,973
335 Talladega County, Industrial Development Board, Cyprus 1
Project, 9.75%, 12/1/13.................................. 337
740 Tuscaloosa County, Warrants, GO, 5.60%, 10/1/04........... 811
1,200 University Alabama General Fee, 4.60%, 6/1/09, Callable
6/1/07 @ 102............................................. 1,249
1,300 University Alabama General Fee, 4.70%, 6/1/10, Callable
6/1/07 @ 102............................................. 1,351
1,500 University Alabama General Fee, 4.75%, 6/1/11, Callable
6/1/07 @ 102............................................. 1,552
2,185 University of South Alabama, University Revenues, Tuition,
4.70%, 11/15/08, Callable 5/15/06 @ 102, AMBAC........... 2,299
-------
185,184
-------
</TABLE>
Continued
-74-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Municipal Bonds, continued
Florida (5.9%):
$1,150 Escambia County Utilities Authority Revenue, Series D,
5.00%, 1/1/04............................................ $ 1,219
2,000 Escambia County Utilities Authority Revenue, Series D,
5.00%, 1/1/05............................................ 2,135
6,500 Florida State Board of Education, Capital Outlay, Series
A, GO, 5.00%, 6/1/08..................................... 7,034
8,070 Reedy Creek, Improvement District, 5.50%, 10/1/08......... 9,044
-------
19,432
-------
Georgia (1.4%):
4,390 Cobb County, Detention Buildings & Facilities, GO, 5.30%,
1/1/07, Callable 1/1/03 @ 102............................ 4,690
-------
Maryland (0.8%):
2,500 Montgomery County, Consolidated Public Improvements,
Series A, GO, 5.50%, 10/1/04............................. 2,736
-------
Michigan (2.3%):
7,000 Municipal Bond Authority Revenue, 5.00%, 12/1/05.......... 7,501
-------
Minnesota (0.7%):
2,175 Centennial Independent School District, No. 12, Series A,
GO, 5.60%, 2/1/07, MBIA.................................. 2,419
-------
Mississippi (0.6%):
2,000 Mississippi State, Capital Improvements, GO, 5.20%,
8/1/11, Callable 8/1/03 @ 100............................ 2,093
-------
Missouri (2.5%):
7,535 Missouri State, Water Pollution, Series B, GO, 5.00%,
8/1/07, Callable 8/1/03 @ 102............................ 8,024
-------
New York (0.9%):
1,150 Hempstead Town, GO, 5.00%, 2/15/09, Callable 2/15/06 @
102...................................................... 1,232
1,500 Municipal Assistance Corp. for New York City, GO, 6.00%,
7/1/05................................................... 1,688
-------
2,920
-------
North Carolina (3.4%):
355 Durham, Water & Sewer Revenue, 4.60%, 6/1/05.............. 372
675 Durham, Water & Sewer Revenue, 4.60%, 6/1/06.............. 708
555 Durham, Water & Sewer Revenue, 4.60%, 6/1/07.............. 582
765 Durham, Water & Sewer Revenue, 4.60%, 6/1/08.............. 801
1,565 Greensboro, Public Improvement, 4.70%, 4/1/11............. 1,632
2,355 Greensboro, Public Improvement, 4.70%, 4/1/13............. 2,417
4,250 Wake County, GO, 4.90%, 3/1/08, Callable 3/1/07 @ 100.5... 4,555
-------
11,067
-------
Oregon (1.7%):
5,285 Washington County Criminal Justice Facilities, 5.00%,..... 5,655
-------
South Carolina (1.4%):
4,325 Beaufort County, School District, GO, Series B, 4.90%,
3/1/09, Callable 3/1/05 @ 101............................ 4,541
-------
</TABLE>
Continued
-75-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued
Tennessee (3.4%):
$2,000 Jackson, Improvements, 5.00%, 3/1/10, Pre-refunded 3/1/05
@102.................................................... $ 2,106
3,000 Metropolitan Government, Nashville & Davidson County, GO,
5.25%, 5/15/06.......................................... 3,265
5,495 Tennessee State, Series B, GO, 4.60%, 5/1/07, Callable
5/1/06 @ 100............................................ 5,746
--------
11,117
--------
Texas (6.0%):
4,000 Mesquite Independent School District, Series A, 4.70%,
8/15/08, Callable 8/15/07 @ 100......................... 4,189
5,000 Texas State, Series B, GO, 5.25%, 10/1/08, Callable
10/1/03 @ 100........................................... 5,264
3,575 University of Texas, 4.60%, 7/1/08, Callable 7/1/06 @
100..................................................... 3,721
5,455 University of Texas, Series B, 4.25%, 8/15/09, Callable
8/15/07 @ 100........................................... 5,525
1,000 Whitehouse Texas Independent School District, 4.80%,
2/15/12, Callable 2/15/08 @ 100......................... 1,023
--------
19,722
--------
Utah (3.3%):
3,810 Jordan School District, GO, 4.80%, 6/15/08, Callable
6/15/07 @ 100........................................... 4,036
6,000 Utah State, GO, Series F, 5.50%, 7/1/07.................. 6,693
--------
10,729
--------
Virginia (3.5%):
2,000 Virginia College Building Authority, Series A, 5.00%,
9/1/12, Callable 9/1/07 @ 101........................... 2,090
5,000 Virginia State, GO, 5.00%, 6/1/08, Callable 6/1/07 @ 100. 5,391
3,500 Virginia State, Public School Authority, Series S, 5.25%,
8/1/09.................................................. 3,841
--------
11,322
--------
Washington (2.3%):
6,500 Washington State, GO, 5.75%, 9/1/08...................... 7,382
--------
Total Municipal Bonds 316,534
--------
Investment Companies (2.0%):
23,639 Federated Tax-Free Fund.................................. 24
6,662,556 Goldman Sachs Tax-Free Fund.............................. 6,662
--------
Total Investment Companies 6,686
--------
Total (Cost $306,145) (a) $323,220
========
</TABLE>
Continued
-76-
<PAGE>
AMSOUTH MUTUAL FUNDS
Municipal Bond Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
- --------
Percentages indicated are based on net assets of $326,889.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........ $17,082
Unrealized depreciation........ (7)
-------
Net unrealized appreciation.... $17,075
=======
</TABLE>
AMBAC--Insured by AMBAC Indemnity Corp.
ETM--Escrowed to Maturity
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
See notes to financial statements.
-77-
<PAGE>
AMSOUTH MUTUAL FUNDS
Florida Tax-Free Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Florida Municipal Bonds (96.9%):
$ 545 Altamonte Springs, Health Facilities Authority, Hospital
Revenue, ETM, 5.60%, 10/1/10............................. $ 619
1,000 Bay County, Florida Resource Recovery Revenue, 6.00%,
7/1/01, MBIA............................................. 1,063
1,500 Broward County School District, GO, 5.60%, 2/15/07,
Callable 2/15/03 @ 102................................... 1,620
2,000 Broward County School District, 6.00%, 2/15/07, Callable
2/15/02 @ 102............................................ 2,171
1,000 Dade County School District, 5.75%, 8/1/03, AMBAC......... 1,091
1,000 Dade County School District, GO, 6.00%, 7/15/06........... 1,140
1,000 Dade County School District, 5.00%, 2/15/14, Callable
2/15/07 @ 101, MBIA...................................... 1,033
1,000 Dade County, Aviation Authority, Series 1994 B, 6.25%,
10/1/04, AMBAC........................................... 1,132
1,000 Dade County, Water & Sewer System Revenue, 4.70%, 10/1/04,
FGIC..................................................... 1,053
1,000 Division of Bond Finance, Department of Natural Resources,
Save Our Coast, 6.30%, 7/1/04,
Callable 7/1/01 @ 101, MBIA.............................. 1,079
1,000 First Florida Goverment, 4.30%, 7/1/06, AMBAC............. 1,033
775 Florida Housing Finance Agency, Homeowner Mortgages,
Series 1995 A-1, 5.65%, 1/1/09, Callable 1/1/06 @ 102.... 816
1,000 Florida State Board of Education, 5.00%, 6/1/10, Callable
6/1/05 @ 101............................................. 1,055
515 Florida State Board of Education, GO, 7.25%, 6/1/23,
Callable 6/1/00 @ 102.................................... 553
2,000 Florida State Board of Education, Series B, GO, 5.38%,
6/1/08, Callable 6/1/07 @ 101............................ 2,215
1,000 Florida State Department of Transportation, Right of Way,
GO, 5.30%, 7/1/15, Callable 7/1/06 @ 101................. 1,049
3,310 Florida State Department of Transportation, Right of Way,
Series B, GO, 5.50%, 7/1/08, Callable 7/1/07 @ 101....... 3,701
1,000 Florida State Division of Bond Finance, Department of
General Services, Preservation 2000,
Series A, 5.50%, 7/1/08, FSA............................. 1,119
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.... 1,098
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...... 1,071
1,000 Florida State Turnpike Authority, Turnpike Revenue, Series
A, 5.50%, 7/1/11, Callable 7/1/05 @ 101, FGIC............ 1,083
890 Florida State, GO, Senior Lien, Jacksonville
Transportation, 6.25%, 7/1/06............................ 1,029
1,250 Ft. Lauderdale, Park Improvement Project, GO, 5.50%,
7/1/17, Callable 1/1/04 @ 101............................ 1,304
1,000 Hillsborough County, Capital Improvements, County Center
Project,
Series B, 5.00%, 7/1/13, Callable 7/1/06 @ 102, MBIA..... 1,041
750 Hillsborough County, Environmental Land, 6.00%, 7/1/03 *,
Callable 7/1/02 @ 102, AMBAC-TCRS........................ 822
1,000 Hillsborough County, Solid Waste & Resource Recovery
Revenue, 5.30%, 10/1/03, MBIA............................ 1,076
1,000 Homestead, Special Insurance Assessment Revenue, 4.90%,
9/1/00, MBIA............................................. 1,028
1,000 Jacksonville Electric Authority, St. John's River Issue 2,
Series 16, 5.00%, 10/1/10, Callable 10/1/03 @ 101........ 1,040
1,000 Jacksonville, District Water & Sewer Revenue, ETM, 5.20%,
10/1/02, MBIA............................................ 1,060
1,000 Jacksonville, Electric Authority, St. John's River Issue
2, Series 15, 4.75%, 10/1/07, Callable 4/1/06 @ 101...... 1,058
1,010 Jacksonville, Excise Tax Revenue, Series A, 5.50%,
10/1/05, FGIC............................................ 1,117
1,500 Kissimmee Utility Authority, Electric System Revenue,
4.50%, 10/1/05........................................... 1,570
500 Manatee County School Board, Certificates of
Participation, 7/1/09, Callable 7/1/06 @ 102, MBIA....... 569
1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08,
Callable 9/1/05 @ 102, FSA............................... 1,098
1,500 Orange County, 4.38%, 10/1/09, Callable 10/1/08 @ 101..... 1,544
1,000 Orange County, Sales Tax Revenue, 4.80%, 1/1/17, Callable
1/1/07 @ 101, FGIC....................................... 1,001
1,000 Orlando & Orange County Expressway Authority, 4.75%,
7/1/10, FGIC, Callable 7/1/08 @ 101...................... 1,051
</TABLE>
Continued
-78-
<PAGE>
AMSOUTH MUTUAL FUNDS
Florida Tax-Free Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Florida Municipal Bonds, continued
$ 1,000 Orlando & Orange County Expressway Authority, Expressway
Revenue, Senior Lien, 4.80%, 7/1/01, AMBAC............... $ 1,035
1,500 Orlando Utilities Commission, Water & Electric Revenue,
Series B, 5.10%, 10/1/11, Callable 10/1/06 @ 100......... 1,585
1,500 Orlando, Wastewater System Revenue, Series B, 4.90%,
10/1/06, Callable 10/1/03 @ 102, AMBAC................... 1,592
1,000 Osceola County, Capital Improvements, 5.00%, 9/1/02,...... 1,053
1,000 Palm Beach County, Criminal Justice Facilities, 5.38%,
6/1/10, FGIC............................................. 1,110
1,000 Pasco County, Water & Sewer Revenue, Series A, 5.50%,
10/1/03, Callable 10/1/02 @ 102, FGIC.................... 1,084
1,000 Polk County, Capital Improvement, 4.30%, 12/1/02, FGIC.... 1,031
1,000 Port of Palm Beach, 6.25%, 9/1/08, Callable 9/1/02 @ 102,
MBIA..................................................... 1,104
1,000 Reedy Creek, Improvement District, Series A, GO, 5.60%,
6/1/10, Callable 6/1/05 @ 100, MBIA...................... 1,084
1,000 Reedy Creek, Improvement District, Series C, 4.90%,
6/1/08, Callable 12/1/05 @ 101, AMBAC.................... 1,064
1,000 Seminole County, Local Option Gas Tax Revenue, 5.00%,
10/1/02, FGIC............................................ 1,054
1,000 St. Johns River Management District, Land Acquisition,
5.10%, 7/1/09, Callable 7/1/05 @ 100, FSA................ 1,057
1,000 St. Petersburg, Utility Tax Revenue, 5.85%, 6/1/02........ 1,070
1,000 Sunshine Skyway Revenue, 6.60%, 7/1/08 *, Callable 7/1/01
@ 101.................................................... 1,075
1,000 Tallahassee, Consolidated Utility System Revenue, 5.80%,
10/1/08, Callable 10/1/03 @ 102.......................... 1,108
1,000 Tampa Sports Authority, Local Option Sales Tax Revenue,
Stadium Project, 6.00%, 1/1/06, MBIA..................... 1,132
1,000 Tampa Water Utility Systems, Series B, 4.75%, 10/1/27,
Callable 10/1/08 @ 101, FGIC............................. 968
750 Tampa, Water & Sewer Revenue, 5.25%, 10/1/12, Callable
10/1/05 @ 102, FGIC...................................... 802
1,000 Tampa-Hillsborough County, Expressway, 5.00%, 7/1/10,
Callable 7/1/07 @ 101.................................... 1,067
1,000 Volusia County Sales Tax Revenue, 5.00%, 10/1/13, Callable
10/1/08 @ 101, MBIA...................................... 1,047
1,000 Volusia County School District, 5.30%, 6/1/01, FSA........ 1,045
-------
Total Florida Municipal Bonds 67,369
-------
Investment Companies (3.8%):
1,732 AmSouth Tax-Exempt Fund................................... 2
2,647,365 Dreyfus Florida Money Market Fund......................... 2,647
-------
Total Investment Companies 2,649
-------
Total (Cost $66,799) (a) $70,018
=======
</TABLE>
Continued
-79-
<PAGE>
AMSOUTH MUTUAL FUNDS
Florida Tax-Free Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
- --------
Percentages indicated are based on net assets of $69,498.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......... $3,266
Unrealized depreciation......... (47)
------
Net unrealized appreciation..... $3,219
======
</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.
-80-
<PAGE>
AMSOUTH MUTUAL FUNDS
U.S. Treasury Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. Treasury Bills (37.3%):
$10,000 2/4/99................................................... $ 9,997
10,000 2/11/99.................................................. 9,990
10,000 2/18/99.................................................. 9,982
10,000 2/25/99.................................................. 9,972
10,000 2/28/99.................................................. 10,005
10,000 3/4/99................................................... 9,963
10,000 3/18/99.................................................. 9,945
10,000 3/25/99.................................................. 9,941
7,000 4/1/99................................................... 6,950
10,000 4/22/99.................................................. 9,906
10,000 4/29/99.................................................. 9,897
10,000 5/20/99.................................................. 9,873
--------
Total U.S. Treasury Bills 116,421
--------
U.S. Treasury Notes (26.2%):
10,000 8.88%, 2/15/99........................................... 10,015
14,000 6.25%, 3/31/99........................................... 14,018
10,000 7.00%, 4/15/99........................................... 10,041
7,000 6.38%, 4/30/99........................................... 7,029
10,000 9.13%, 5/15/99........................................... 10,124
5,000 6.75%, 5/31/99........................................... 5,033
10,000 6.75%, 6/30/99........................................... 10,086
5,000 7.13%, 9/30/99........................................... 5,079
10,000 7.50%, 10/31/99.......................................... 10,206
--------
Total U.S. Treasury Notes 81,631
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Repurchase Agreements (32.9%):
$49,965 Salomon Smith Barney, 4.77%, dated 1/29/99, due 2/1/99,
proceeds at maturity of $49,965, (Collateralized by
$69,876 Fannie Mae, 6.00%, 5/15/08--Market value
$74,276).............................................. $ 49,965
52,500 C.S. First Boston Corp., 4.72%, dated 1/29/99, due
2/1/99, proceeds at maturity of $52,500,
(Collateralized by $37,746 U.S. Treasury Bond, 8,50%,
2/15/20--Market value $53,935)........................ 52,500
--------
Total Repurchase Agreements 102,465
--------
Total (Cost $300,517) (a) $300,517
========
</TABLE>
- --------
Percentages indicated are based on net assets of $311,602.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
-81-
<PAGE>
AMSOUTH MUTUAL FUNDS
Prime Obligations Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic (59.4%):
Aircraft Leasing (1.5%):
$10,000 International Lease Finance Corp., 5.13%, 2/8/99......... $ 9,990
-------
Automotive (2.9%):
10,000 Daimler Chrysler, 4.72%, 6/25/99......................... 9,811
10,000 Daimler-Benz, 4.96%, 5/21/99............................. 9,850
-------
19,661
-------
Automotive Credit (7.3%):
10,000 Ford Motor Credit Co., 4.87%, 2/8/99..................... 9,991
10,000 Ford Motor Credit Co., 4.80%, 8/27/99.................... 9,724
10,000 General Motors Acceptance Corp., 4.78%, 4/29/99.......... 9,884
10,000 General Motors Acceptance Corp., 4.77%, 6/17/99.......... 9,820
10,000 Toyota Motor Credit, 5.00%, 2/19/99...................... 9,975
-------
49,394
-------
Banking (7.6%):
10,000 BankAmerica, 4.86%, 6/4/99............................... 9,834
7,000 Bankers Trust, 5.50%, 2/5/99............................. 6,996
5,000 J. P. Morgan & Co., 4.80%, 4/14/99....................... 4,952
10,000 J. P. Morgan & Co., 4.85%, 4/15/99....................... 9,902
10,000 SunTrust Banks, 4.85%, 2/9/99............................ 9,989
10,000 SunTrust Banks, 4.93%, 5/14/99........................... 9,860
-------
51,533
-------
Brokerage Services (4.4%):
10,000 Goldman Sachs, 5.15%, 2/12/99............................ 9,984
10,000 Merrill Lynch, 5.05%, 2/22/99............................ 9,971
10,000 Salomon Smith Barney Holdings, 5.12%, 2/17/99............ 9,977
-------
29,932
-------
Consumer Goods (3.7%):
10,000 Clorox Co., 5.12%, 2/11/99............................... 9,986
5,000 Clorox Co., 4.79%, 4/22/99............................... 4,947
10,000 Procter & Gamble, 4.78%, 3/12/99......................... 9,948
-------
24,881
-------
Farm Equipment (2.9%):
10,000 John Deere Capital Corp., 4.83%, 4/20/99................. 9,895
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic, continued:
Farm Equipment, continued:
$10,000 John Deere Capital Corp., 4.80%, 5/11/99................. $ 9,868
-------
19,763
-------
Financial Services (9.9%):
10,000 American Express, 4.90%, 3/19/99......................... 9,937
10,000 American Express, 4.90%, 4/2/99.......................... 9,918
10,000 American General Finance Corp., 4.98%, 3/18/99........... 9,938
10,000 Associates First Capital, 4.97%, 4/30/99................. 9,879
10,000 General Electric Capital Corp., 4.95%, 4/23/99........... 9,889
10,000 General Electric Capital Corp., 4.72%, 7/30/99........... 9,765
7,000 Transamerica Finance, 5.02%, 3/11/99..................... 6,963
-------
66,289
-------
Insurance (1.5%):
10,000 Marsh & McLennan, 5.50%, 2/8/99.......................... 9,989
-------
Oil & Gas Exploration, Production, & Services (5.9%):
10,000 Chevron Oil Finance, 4.75%, 3/19/99...................... 9,940
10,000 Chevron Oil Finance, 4.75%, 4/8/99....................... 9,913
10,000 Texaco, Inc., 4.77%, 3/22/99............................. 9,935
10,000 Texaco, Inc., 4.80%, 4/13/99............................. 9,905
-------
39,693
-------
Pharmaceuticals (2.9%):
10,000 Glaxo Wellcome, PLC, 4.76%, 4/21/99...................... 9,896
10,000 Pfizer, Inc., 4.76%, 3/17/99............................. 9,941
-------
19,837
-------
Technology (3.0%):
10,000 IBM Credit Corp., 5.02%, 3/3/99.......................... 9,958
10,000 Motorola, 4.95%, 4/1/99.................................. 9,919
-------
19,877
-------
Telecommunications--Equipment (2.9%):
10,000 Lucent Technology, 4.82%, 3/17/99........................ 9,942
10,000 Lucent Technology, 4.76%, 4/9/99......................... 9,911
-------
19,853
-------
</TABLE>
Continued
-82-
<PAGE>
AMSOUTH MUTUAL FUNDS
Prime Obligations Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper--Domestic, continued:
Utilities--Telecommunications (3.0%):
$ 10,000 BellSouth Telecommunications, Inc., 5.00%, 2/5/99........ $ 9,994
10,000 BellSouth Telecommunications, Inc., 5.03%, 2/24/99....... 9,968
-------
19,962
-------
Total Commercial Paper-Domestic 400,654
-------
Commercial Paper--Foreign (4.4%):
Banking (4.4%):
Canada (2.9%):
10,000 Toronto Dominion Holdings, 5.44%, 2/18/99................ 9,975
10,000 Toronto Dominion Holdings, 4.77%, 6/7/99................. 9,833
-------
19,808
-------
United Kingdom (1.5%):
10,000 Bank of Scotland Treasury, 4.80%, 4/22/99................ 9,893
-------
Total Commercial Paper--Foreign 29,701
-------
Certificates of Deposit (3.7%):
Banking (3.7%):
10,000 BankAmerica, 5.24%, 9/24/99.............................. 10,000
5,000 Deutsche Bank Yankee, 5.66%, 3/26/99..................... 5,000
5,000 First National Bank of Chicago,
5.75%, 5/10/99.......................................... 4,999
5,000 Swiss Bank Yankee, 5.65%, 3/24/99........................ 5,000
-------
Total Certificates of Deposit 24,999
-------
Corporate Bonds (8.6%):
Aircraft Leasing (2.2%):
10,000 International Lease Finance,
8.00%, 2/16/99.......................................... 10,011
5,000 International Lease Finance,
6.63%, 4/1/99........................................... 5,007
-------
15,018
-------
Automotive--Finance (0.5%):
3,043 Ford Motor Credit Co., 7.25%, 5/15/99.................... 3,055
-------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Corporate Bonds, continued:
Banking (2.3%):
$ 5,000 Chase Manhattan Corp, 8.00%, 6/15/99.................... $ 5,052
10,000 Harris Trust & Savings, 5.09%, 3/16/99.................. 10,001
--------
15,053
--------
Financial Services (1.5%):
5,000 Associates Corp., 6.00%, 3/15/99........................ 5,003
5,000 Household Finance, 7.75%, 6/1/99........................ 5,031
--------
10,034
--------
Food Products & Services (0.7%):
5,000 Diagio PLC, 6.50%, 9/15/99.............................. 5,024
--------
Technology (0.6%):
4,000 IBM Credit Corp., 5.68%, 5/7/99......................... 3,999
--------
Utilities--Telecommunications (0.8%):
3,305 GTE North, Inc., 5.50%, 2/15/99......................... 3,305
2,200 Southwestern Bell Capital,
6.68%, 7/26/99......................................... 2,215
--------
5,520
--------
Total Corporate Bonds 57,703
--------
Floating Rate Funding Agreements (5.5%):
Insurance (5.5%):
12,500 Commonwealth Life Insurance Co., 5.11%*, 2/4/99**....... 12,500
12,000 General American Life Insurance Co., 5.14%*,
2/4/99**(b)............................................ 12,000
12,500 Peoples Security Life Insurance Co., 5.06%*,
2/4/99**(b)............................................ 12,500
--------
Total Floating Rate Funding Agreements 37,000
--------
Repurchase Agreements (18.5%):
124,306 C.S. First Boston Corp., 4.80%, dated 1/29/99, due
2/1/99, proceeds at maturity of $124,306,
(Collateralized by $128,860 Various Fannie Mae Notes,
5.00%-7.25%, 11/30/00-1/30/08--Market value $130,708).. 124,306
--------
Total Repurchase Agreements 124,306
--------
Total (Cost $674,363) (a) $674,363
========
</TABLE>
Continued
-83-
<PAGE>
AMSOUTH MUTUAL FUNDS
Prime Obligations Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands)
(Unaudited)
- --------
Percentages indicated are based on net assets of $673,673.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
(b) Illiquid.
* Variable rate security. Rate presented represents rate in effect at January
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 semiannually.
PLC--Public Limited Co.
See notes to financial statements.
-84-
<PAGE>
AMSOUTH MUTUAL FUNDS
Institutional Prime Obligations Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Commercial Paper--Domestic (61.5%):
Aircraft Leasing (2.9%):
$ 4,000 International Lease Finance Corp., 5.10%, 2/5/99.......... $ 3,998
--------
Automotive--Finance (8.8%):
4,000 Ford Motor Credit Co., 4.80%, 3/5/99...................... 3,983
4,000 General Motors Acceptance Corp., 4.80%, 3/26/99........... 3,972
4,000 Toyota Motor Credit, 4.77%, 2/22/99....................... 3,990
--------
11,945
--------
Banking (5.9%):
4,000 J. P. Morgan & Co., 4.85%, 4/15/99........................ 3,961
4,000 SunTrust Banks, 4.86%, 2/26/99............................ 3,986
--------
7,947
--------
Consumer Goods (5.7%):
3,800 Clorox Co., 4.79%, 3/31/99................................ 3,771
4,000 Procter & Gamble, 5.05%, 2/11/99.......................... 3,994
--------
7,765
--------
Farm Equipment (2.9%):
4,000 John Deere Capital Corp., 4.77%, 2/19/99.................. 3,990
--------
Financial Services (11.8%):
4,000 American Express, 4.80%, 3/8/99........................... 3,982
4,000 American General Finance Corp., 4.86%, 3/12/99............ 3,979
4,000 Associates First Capital, 4.80%, 4/7/99................... 3,965
4,000 Transamerica Finance, 4.78%, 3/17/99...................... 3,977
--------
15,903
--------
Pharmaceuticals (5.9%):
4,000 Glaxo Wellcome, PLC, 4.76%, 4/21/99....................... 3,958
4,000 Pfizer, Inc., 5.20%, 2/3/99............................... 3,999
--------
7,957
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Commercial Paper--Domestic, continued:
Technology (5.9%):
$ 4,000 IBM Credit Corp., 4.80%, 2/24/99......................... $ 3,987
4,000 Motorola, 4.95%, 4/1/99.................................. 3,968
--------
7,955
--------
Telecommunications--Equipment (5.9%):
4,000 Lucent Technology, 5.12%, 2/12/99........................ 3,994
4,000 Lucent Technology, 5.12%, 2/9/99......................... 3,995
--------
7,989
--------
Utilities--Electric (2.9%):
4,000 Edison International, 4.80%, 2/4/99...................... 3,998
--------
Utilities--Telecommunications (2.9%):
4,000 BellSouth Telecommunications, Inc., 4.82%, 2/23/99....... 3,988
--------
Total Commercial Paper--Domestic 83,435
--------
Commercial Paper--Foreign (2.9%):
Banking (2.9%):
Canada (2.9%):
4,000 Toronto Dominion Holdings, 4.81%, 4/9/99................. 3,964
--------
Total Commercial Paper--Foreign 3,964
--------
Investment Companies (0.0%):
16,429 AmSouth Prime Obligations Fund........................... 16
13,668 AmSouth U.S. Treasury Fund............................... 14
--------
Total Investment Companies 30
--------
Repurchase Agreements (36.0%):
26,000 C.S. First Boston Corp., 4.80%, dated 1/29/99, due 2/1/99
at maturity of $26,000, (Collateralized by $26,855 FHLB
Disc. Corp., 0.00%, 2/17/99--Market value $26,788)...... 26,000
22,855 Solomon Smith Barney, 4.77%, dated 1/29/99, due 2/1/99 at
maturity of $22,855, (Collateralized by $69,876 Fannie
Mae, 6.00%, 5/15/08--Market value $74,276).............. 22,855
--------
Total Repurchase Agreements 48,855
--------
Total (Cost $136,284) (a) $136,284
========
</TABLE>
- --------
Percentages indicated are based on net assets of $135,758.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
PLC--Public Limited Co
See notes to financial statements.
-85-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Tax Anticipation Notes (5.9%):
Arizona (1.7%):
$1,500 Arizona State, Transportation Board, Excise Tax &
Revenue, 5.50%, 7/1/99, AMBAC.......................... $ 1,511
-------
California (1.2%):
1,200 Los Angeles County, Tax & Revenue, 4.50%, 6/30/99....... 1,204
-------
New Mexico (1.0%):
1,000 New Mexico State, Tax & Revenue, 4.25%, 6/30/99......... 1,003
-------
Oregon (1.0%):
1,000 Multnomah County, Tax & Revenue, 4.50%, 6/30/99......... 1,004
-------
Pennsylvania (1.0%):
1,000 Philadelphia, Tax & Revenue, 4.25%, 6/30/99............. 1,002
-------
Total Tax Anticipation Notes 5,724
-------
Demand Notes (50.6%):
Alabama (16.0%):
1,500 Alabama Housing Finance Authority, Huntsville, Series B,
2.25%*, 2/3/99**, FNMA................................. 1,500
2,000 Alabama State Housing Finance Authority, Multi Family
Housing Revenue, Rime VLG Hoover Project, Series A,
2.70%*, 2/3/99**, FNMA................................. 2,000
1,000 Bon Air, Industrial Development Board, Avondale Mills,
2.75%*, 2/3/99**, LOC: Trust Co. Bank.................. 1,000
2,000 City of Birmingham, Series 1992A, GO, 2.65%*, 2/3/99**,
LOC: Regions Bank...................................... 2,000
1,700 Columbia, Industrial Development Board, PCR, Alabama
Power Co. Project , Series D, 3.25%*, 2/1/99**......... 1,700
1,000 Jacksonville, Industrial Development Board, Parker
Hannifin Corp., 2.75%*, 2/4/99**....................... 1,000
2,000 Mobile, Industrial Development Board, PCR, Alabama Power
Co. Project, Series B, 2.95%*, 2/4/99**................ 2,001
1,500 North Alabama, Environmental Improvement Authority, PCR,
Reynolds Metals Co., 3.25%*, 2/1/99**, LOC: Bank of
Nova Scotia............................................ 1,500
1,000 Port City, Medical Clinic Board, Infirmary Health
Systems, Series B, 2.70%*, 2/4/99**, AMBAC............. 1,000
1,765 Stevenson, Industrial Development Board, Environmental
Improvement Revenue, Mead Corp. Project,
3.25%*, 2/1/99**, LOC: Credit Suisse................... 1,765
-------
15,466
-------
California (2.0%):
1,900 Los Angeles Regional Airport Improvement, 3.25%*,
2/1/99**, LOC: Wachovia Bank of Georgia................ 1,900
-------
Florida (3.3%):
1,500 Alachua County Florida Health, 2.75%*, 2/3/99**, MBIA... 1,500
1,680 Laurel Club, Certificates of Participation, Series 96A,
2.80%*, 2/3/99**, LOC: Swiss Bank Corp................. 1,680
-------
3,180
-------
Georgia (1.0%):
1,000 Cobb County, Post Mill Project, 2.70%*, 2/3/99**........ 1,000
-------
</TABLE>
Continued
-86-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Demand Notes, continued:
Illinois (2.8%):
$1,545 Chicago O'Hare International Airport, 2.75%*, 2/3/99**. $ 1,545
1,200 Illinois Health Authority, Decatur Memorial Hospital,
Project A, 2.85%*, 2/3/99**........................... 1,200
-------
2,745
-------
Minnesota (3.5%):
1,000 Minneapolis, GO, Sewer Improvements, Series A, 2.60%*,
2/3/99**, LOC: Bayerische Vereinsbank................. 1,000
2,400 Minneapolis, GO, Sewer Improvements, Series B, 2.60%*,
2/4/99**.............................................. 2,400
-------
3,400
-------
Missouri (0.9%):
900 Kansas City, Industrial Development Authority, Hospital
Revenue, Resh Health Services System, 3.20%*,
2/1/99**, MBIA, SPA: Bank of America.................. 900
-------
New York (2.2%):
500 New York, GO, 3.30*, 2/1/99**, LOC: Morgan Guaranty.... 500
1,600 New York, GO, Series D, 2.90%*, 2/3/99**, FGIC......... 1,600
-------
2,100
-------
North Carolina (1.2%):
500 North Carolina Educational Facilities, 2.75%*,
2/4/99**, LOC: Wachovia B&T........................... 500
700 North Carolina Medical Care Commumity Hospital, Series
B, 3.25%*, 2/1/99**, LOC: First Union National Bank... 700
-------
1,200
-------
Pennsylvania (2.3%):
2,200 Schuylkill County, Industrial Development Authority,
Resource Recovery Revenue, Gilberton Power Project,
2.70%*, 2/3/99**, LOC: Mellon Bank.................... 2,200
-------
South Carolina (1.7%):
1,670 South Carolina State Jobs & Economic Development
Revenue, St. Francis Hospital, 3.25%*, 2/1/99**, LOC:
Chase Manhattan Bank.................................. 1,670
-------
Tennessee (2.4%):
600 Metropolitan Nashville Airport Authority, American
Airlines Project, Series B, 3.25%*, 2/1/99**, LOC:
Bayerische Landesbank................................. 600
100 Metropolitan Nashville Airport Authority, Special
Facilities Revenue, American Airlines Project, Series
A, 3.25%*, 2/1/99**, LOC: Union Bank of Switzerland... 100
1,600 Sullivan County, Industrial Development Board, PCR,
Mead Corp. Project, 3.25%*, 2/1/99**, LOC: Union Bank
of Switzerland........................................ 1,600
-------
2,300
-------
</TABLE>
Continued
-87-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Demand Notes, continued:
Texas (4.6%):
$ 500 Grapevine, Industrial Development Corp., American
Airlines A1, 3.25%*, 2/1/99**, LOC: Morgan Guaranty.... $ 500
1,200 Grapevine, Industrial Development Corp., American
Airlines A4, 3.25%*, 2/1/99**, LOC: Morgan Guaranty.... 1,200
1,000 Harris County Texas Health Facilities, 3.25%*, 2/1/99**. 1,000
500 Lone Star Texas Airport Improvement Authority, A1,
2.30%*, 2/1/99**....................................... 500
1,300 Lone Star Texas Airport Improvement Authority, A5,
3.25%*, 2/1/99**....................................... 1,300
-------
4,500
-------
Washington (2.7%):
600 Seattle Municipal Light & Power, 2.75%*, 2/3/99**....... 600
1,000 Seattle Washington Municipal Light & Power Revenue,
Series B,
3.10%*, 2/10/99**, SPA-Morgan Guaranty Trust........... 1,000
1,000 Washington State, GO, Series 96A, 2.70%*, 2/3/99**...... 1,000
-------
2,600
-------
West Virginia (0.8%):
785 Mercer County, Industrial Development Revenue, 2.75%*,
2/1/99**, LOC: SunTrust Bank........................... 785
-------
Wisconsin (2.1%):
1,000 La Crosse Wisconsin, Industrial Development Revenue,
3.20%*, 2/1/99**, AMBAC................................ 1,000
1,000 Wisconsin State Health, 2.85%*, 2/3/99**, AMBAC......... 1,000
-------
2,000
-------
Wyoming (1.1%):
1,100 Lincoln County PCR, Project D, 3.20%*, 2/1/99**......... 1,100
-------
Total Demand Notes 49,046
-------
Tax Free Commercial Paper (9.5%):
Alabama (3.1%):
1,000 Fairfield Alabama Industrial Development Board, 3.00%,
6/1/99................................................. 1,000
1,000 Montgomery, Industrial Development Board, Pollution
Revenue, 2.70%, 2/12/99................................ 1,000
1,000 Port City, Mobile, 2.90%, 6/11/99....................... 1,000
-------
3,000
-------
Florida (1.2%):
1,200 Sarasota County, 3.05%, 2/8/99.......................... 1,200
-------
Kentucky (1.0%):
1,000 Kentucky Asset / Liability Commission Tax & Revenue,
4.50%, 6/25/99......................................... 1,003
-------
Mississippi (2.1%):
1,000 Mississippi Hospital Equipment, 2.90%, 5/13/99.......... 1,000
1,000 Mississippi Hospital Equipment, 2.90%, 6/10/99.......... 1,000
-------
2,000
-------
</TABLE>
Continued
-88-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Tax Free Commercial Paper, continued:
Utah (2.1%):
$1,000 Intermountain Power, 2.85%, 4/9/99, LOC: Bank of
America................................................ $ 1,000
1,000 Intermountain Power Agency, 2.80%, 3/15/99, LOC: Morgan
Gauranty Trust......................................... 1,000
-------
2,000
-------
Total Tax Free Commercial Paper 9,203
-------
Municipal Bonds (30.0%):
Alabama (2.5%):
1,780 Alabama Mental Health Finance Authority, 7.38%, 5/1/99.. 1,799
600 University Birmingham Alabama Medical & Educational
Foundation Revenue,
7.00%, 12/1/19, Prerefunded 12/1/99 @102............... 631
-------
2,430
-------
Arizona (1.3%):
250 Phoenix, GO, Water Utility Improvements, 4.40%, 7/1/99.. 251
1,000 Pima County Street & Highway Revenue, 5.00%, 7/1/99..... 1,005
-------
1,256
-------
Georgia (1.8%):
1,700 Metropolitan Atlanta Rapid Transit Authority, 5.90%,
7/1/99, MBIA........................................... 1,716
-------
Hawaii (1.1%):
1,060 Hawaii State, 5.70%, 3/1/99............................. 1,062
-------
Illinois (2.9%):
1,000 Illinois Health Facilities Authority Revenue, 4.00%
8/15/99................................................ 1,004
480 Illinois Housing Development Authority, 5.20%, 8/1/17,
Puttable 6/29/99 @100.................................. 480
1,000 Illinois State, GO, 5.70%, 6/1/99....................... 1,009
300 Illinois State, GO, 4.50%, 2/1/99....................... 300
-------
2,793
-------
Kentucky (2.0%):
1,000 Kentucky State Turnpike Authority, 4.80%, 7/1/99........ 1,005
905 University Louisville Kentucky, 5.20%, 5/1/99........... 909
-------
1,914
-------
Maryland (1.1%):
1,000 Montgomery County, GO, 5.80%, 10/1/99................... 1,019
-------
</TABLE>
Continued
-89-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, continued:
Mississippi (1.1%):
$ 500 Mississippi Hospital Equipment & Facilities Authority
Revenue, 4.60%, 3/1/99, FSA............................ $ 501
545 Mississippi State, GO, 5.00%, 6/1/99.................... 547
-------
1,048
-------
New Jersey (1.0%):
1,000 New Jersey State, GO, 5.00% 7/15/99..................... 1,009
-------
New York (1.6%):
500 New York State Dormatory Authority, Series A, 7.13%,
5/15/17, Prerefunded 5/15/99 @ 102..................... 516
1,000 New York State Local Government Assistance Corp., Series
A, 6.00%, 4/1/99....................................... 1,004
-------
1,520
-------
Ohio (1.8%):
700 Butler County Transportation Improvement District,
Series A, 4.75%, 4/1/99, FSA........................... 702
1,000 University of Cincinnati, General Receipts, Series I,
7.30%, 6/1/09, Prerefunded 6/1/99 @100................. 1,014
-------
1,716
-------
Pennsylvania (4.0%):
1,850 Pennsylvania State, GO, 5.30%, 7/1/99................... 1,863
960 Philadelphia Hospitals & Higher Education Facilities
Authority, 4.75%, 5/15/99.............................. 964
1,000 Philadelphia Hospitals & Higher Education Facilities
Authority, 4.75%, 5/15/99.............................. 1,004
-------
3,831
-------
Texas (5.3%):
1,000 Alamo Texas Community College, 7.00%, 2/15/99........... 1,001
1,000 Lubbock Independent School District, Series A, GO,
7.20%, 2/15/07, Prerefunded 2/15/99 @ 100, FGIC........ 1,002
1,000 Northside, Independent School District, 7.40%, 4/1/01,
Prerefunded 4/1/99 @100................................ 1,007
1,000 San Antonio, Independent School District, 0.00%,
2/15/99, PSFG.......................................... 999
1,000 Tarrant County Water Control, 5.40%, 3/1/99............. 1,002
250 Weslaco, GO, 6.70%, 2/15/99, MBIA....................... 250
-------
5,261
-------
Utah (1.0%):
1,000 Intermountain Power Agency, 5.50%, 7/1/99, MBIA......... 1,007
-------
Washington (1.0%):
500 King County, GO, 4.70% 10/1/99, Callable 4/1/99 @ 100... 504
435 Richland Electric Revenue, 5.30% 11/1/99................ 442
-------
946
-------
</TABLE>
Continued
-90-
<PAGE>
AMSOUTH MUTUAL FUNDS
Tax-Exempt Fund
Schedule of Portfolio Investments, Continued
January 31, 1999
(Amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, continued:
West Virginia (0.5%):
$ 500 West Virginia State Hospital Finance Authority, 7.00%,
8/1/04, Prerefunded 8/1/99 @ 102, FSA.................. $ 519
-------
Total Municipal Bonds 29,047
-------
Investment Companies (3.5%):
1,399,688 Federated Tax-Free Fund................................. 1,400
1,986,679 Goldman Sachs Tax-Free Fund............................. 1,986
-------
Total Investment Companies 3,386
-------
Total (Cost $96,406) (a) $96,406
=======
</TABLE>
- --------
Percentages indicated are based on net assets of $96,875.
(a)Cost for federal income tax and financial reporting purposes are the same.
* Variable rate security. Rate presented represents rate in effect at January
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.
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
PSFG--Public School Fund Guaranteed
SPA--Standby Purchase Agreement
See notes to financial statements.
-91-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements
January 31, 1999
(Unaudited)
1.Organization:
AmSouth Mutual Funds (the "Trust") was organized on October 1, 1987, and is
registered under the Investment Company Act of 1940, as amended ("the 1940
Act"), as a diversified, open-end investment company established as a
Massachusetts business trust.
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 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, 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
-92-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
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 its 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
-93-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
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.
Federal Income Taxes:
It is the policy of each Fund to qualify or to continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
Other:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Trust are prorated to the
Funds on the basis of relative net assets. Fees paid under a Fund's
shareholder servicing or distribution plans are borne by the specific class
of shares to which they apply.
Unamortized Organizational Costs:
Costs incurred by the Equity Income, the Capital Growth, the Small Cap and
the Municipal Bond Funds in connection with their organization and
registration of shares have been deferred and are amortized using the
straight-line method over a period of two years from the commencement of
the public offering of shares of the Funds.
Continued
-94-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
3.Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
period ended January 31, 1999 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Purchases Sales
--------- --------
<S> <C> <C>
Equity Income Fund....................................... $27,184 $ 30,984
Equity Fund.............................................. 90,465 124,932
Enhanced Market Fund (a)................................. 11,076 204
Capital Growth Fund...................................... 11,751 6,404
Select Equity Fund (a)................................... 13,642 317
Regional Equity Fund..................................... 10,608 18,909
Small Cap Fund........................................... 10,242 8,117
Balanced Fund............................................ 32,926 55,181
Limited Maturity Fund.................................... 5,137 6,036
Government Income Fund................................... 517 1,968
Bond Fund................................................ 35,033 30,688
Municipal Bond Fund...................................... 35,652 44,705
Florida Tax Free Fund.................................... 8,423 17,235
</TABLE>
- --------
(a)For the period from September 1, 1998 (commencement of operations)
through January 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: Classic
Shares, Premier Shares, and B Shares. As of 1/31/99, the Florida Tax Free
Fund and the Municipal Bond Fund had no B shares outstanding and therefore,
no operational information has been presented for these 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 one class of fund shares in the Institutional
Prime Obligations Fund: Class I. 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 six month period ended
and the year ended January 31, 1999 and July 31, 1998, respectively, were as
follows (amounts in thousands):
Continued
-95-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Equity Income Enhanced Market Capital Growth
Fund Equity Fund Fund Fund
-------------------- --------------------- --------------- --------------------
Six Months Year Six Months Year Period Six Months Period
Ended Ended Ended Ended Ended Ended Ended
January 31, July 31, January 31, July 31, January 31, January 31, July 31,
1999 1998 1999 1998 1999 (b) 1999 1998 (a)
----------- -------- ----------- --------- --------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued................ $ 1,049 $12,824 $ 10,168 $ 35,457 $10,493 $2,525 $11,600
Dividends reinvested... 670 1,113 6,374 3,628 59 66 --
Shares redeemed........ (5,182) (5,099) (11,600) (25,227) (269) (2,160) (695)
------- ------- -------- --------- ------- ------ -------
Change in net assets
from Classic Share
transactions.......... $(3,463) $ 8,838 $ 4,942 $ 13,858 $10,283 $ 431 $10,905
======= ======= ======== ========= ======= ====== =======
Premier Shares:
Proceeds from shares
issued................ $ 3,144 $ 4,442 (c) $ 96,586 $ 147,122 (c) $ 526 (e) $4,169 $ 457 (c)
Dividends reinvested... 109 155 (c) 16,811 11,396 (c) -- (e) 4 -- (c)
Shares redeemed........ (2,076) (1,253)(c) (72,177) (178,749)(c) -- (e) (75) (25)(c)
------- ------- -------- --------- ------- ------ -------
Change in net assets
from Premier Share
transactions.......... $ 1,177 $ 3,344 $ 41,220 $ (20,231) $ 526 $4,098 $ 432
======= ======= ======== ========= ======= ====== =======
Class B Shares:
Proceeds from shares
issued................ $ 726 $ 8,243 (d) $ 2,436 $ 8,035 (d) $ 1,144 (f) $1,065 $ 3,449 (d)
Dividends reinvested... 204 108 (d) 928 101 (d) 2 (f) 31 -- (d)
Shares redeemed........ (1,049) (508)(d) (777) (328)(d) (5)(f) (221) (213)(d)
------- ------- -------- --------- ------- ------ -------
Change in net assets
from Class B Share
transactions.......... $ (119) $ 7,843 $ 2,587 $ 7,808 $ 1,141 $ 875 $ 3,236
======= ======= ======== ========= ======= ====== =======
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 90 1,071 430 1,497 997 206 1,106
Reinvested............. 58 96 285 159 5 5 --
Redeemed............... (444) (418) (496) (1,075) (22) (199) (66)
------- ------- -------- --------- ------- ------ -------
Change in Classic
Shares................ (296) 749 219 581 980 12 1,040
======= ======= ======== ========= ======= ====== =======
Premier Shares:
Issued................. 267 366 (c) 4,150 6,192 (c) 41 (e) 347 41 (c)
Reinvested............. 9 13 (c) 752 501 (c) -- (e) -- -- (c)
Redeemed............... (180) (104)(c) (3,060) (7,487)(c) -- (e) (7) (2)(c)
------- ------- -------- --------- ------- ------ -------
Change in Premier
Shares................ 96 275 1,842 (794) 41 340 39
======= ======= ======== ========= ======= ====== =======
Class B Shares:
Issued................. 63 684 (d) 104 332 (d) 95 (f) 89 320 (d)
Reinvested............. 18 9 (d) 42 4 (d) -- (f) 3 -- (d)
Redeemed............... (92) (41)(d) (34) (13)(d) -- (f) (19) (19)(d)
------- ------- -------- --------- ------- ------ -------
Change in Class B
Shares................ (11) 652 112 323 95 73 301
======= ======= ======== ========= ======= ====== =======
</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
January 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 14, 1998 (commencement of operations) through
January 31, 1999.
(f) For the period from September 2, 1998 (commencement of operations) through
January 31, 1999.
Continued
-96-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Select Equity Regional Equity Small Cap Balanced
Fund Fund Fund Fund
------------- -------------------- -------------------- --------------------
Period Six Months Year Six Months Period Six Months Year
Ended Ended Ended Ended Ended Ended Ended
January 31, January 31, July 31, January 31, July 31, January 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................ $12,487 $ 543 $ 6,724 $ 565 $1,559 (e) $ 2,168 $ 8,568
Dividends reinvested... 31 2,063 1,663 -- -- (e) 3,959 5,169
Shares redeemed........ (481) (7,828) (11,554) (521) (47)(e) (5,305) (21,937)
------- -------- -------- ------ ------ -------- --------
Change in net assets
from Classic Share
transactions.......... $12,037 $ (5,222) $ (3,167) $ 44 $1,512 $ 822 $ (8,200)
======= ======== ======== ====== ====== ======== ========
Premier Shares:
Proceeds from shares
issued................ $ 677 (g) $ 7,449 $ 22,574 (c) $2,002 $5,609 $ 35,600 $ 82,900 (c)
Dividends reinvested... -- (g) 1,458 1,325 (c) -- -- 16,429 17,248 (c)
Shares redeemed........ (1)(g) (14,610) (27,608)(c) (38) (72) (39,730) (88,638)(c)
------- -------- -------- ------ ------ -------- --------
Change in net assets
from Premier Share
transactions.......... $ 676 $ (5,703) $ (3,709) $1,964 $5,537 $ 12,299 $ 11,510
======= ======== ======== ====== ====== ======== ========
Class B Shares:
Proceeds from shares
issued................ $ 692 (h) $ 136 $ 2,405 (d) $ 168 $ 967 $ 3,048 $ 5,405 (f)
Dividends reinvested... -- (h) 110 27 (d) -- -- 594 105 (f)
Shares redeemed........ (15)(h) (233) (247)(d) (41) (22) (553) (180)(f)
------- -------- -------- ------ ------ -------- --------
Change in net assets
from Class B Share
transactions.......... $ 677 $ 13 $ 2,185 $ 127 $ 945 $ 3,089 $ 5,330
======= ======== ======== ====== ====== ======== ========
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 1,205 22 231 69 155 (e) 143 567
Reinvested............. 3 88 58 -- -- (e) 276 351
Redeemed............... (43) (326) (397) (65) (5)(e) (354) (1,453)
------- -------- -------- ------ ------ -------- --------
Change in Classic
Shares................ 1,165 (216) (108) 4 150 65 (535)
======= ======== ======== ====== ====== ======== ========
Premier Shares:
Issued................. 58 (g) 313 764 (c) 241 562 2,405 5,525 (c)
Reinvested............. -- (g) 62 46 (c) -- -- 1,144 1,182 (c)
Redeemed............... -- (g) (611) (949)(c) (6) (8) (2,663) (5,880)(c)
------- -------- -------- ------ ------ -------- --------
Change in Premier
Shares................ 58 (236) (139) 235 554 886 827
======= ======== ======== ====== ====== ======== ========
Class B Shares:
Issued................. 60 (h) 6 81 (d) 20 98 203 355 (f)
Reinvested............. -- (h) 5 1 (d) -- -- 42 7 (f)
Redeemed............... (1)(h) (10) (8)(d) (5) (2) (37) (12)(f)
------- -------- -------- ------ ------ -------- --------
Change in Class B
Shares................ 59 1 74 15 96 208 350
======= ======== ======== ====== ====== ======== ========
</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
January 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 4, 1998 (commencement of operations) through
January 31, 1999, past performance numbers (prior to December 4, 1998) are
being reflected as Classic Shares.
(h) For the period from September 2, 1998 (commencement of operations) through
January 31, 1999.
Continued
-97-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Limited Maturity Fund Government Income Fund Bond Fund
---------------------------- -------------------------- --------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
January 31, July 31, January 31, July 31, January 31, July 31,
1999 1998 1999 1998 1999 1998
------------ ----------- ------------ ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares
issued................ $ 909 $ 3,654 $ 323 $ 916 $ 1,836 $ 9,635
Dividends reinvested... 102 224 129 320 233 1,185
Shares redeemed........ (2,487) (10,734) (1,806) (4,434) (1,953) (19,183)
---------- ----------- ----------- ----------- -------- --------
Change in net assets
from Classic Share
transactions.......... $ (1,476) $ (6,856) $ (1,354) $ (3,198) $ 116 $ (8,363)
========== =========== =========== =========== ======== ========
Premier Shares:
Proceeds from shares
issued................ $ 11,298 $ 16,530 (a) $ 284 $ 2,137 (a) $ 41,162 $ 89,740 (a)
Dividends reinvested... 253 409 (a) -- -- (a) 2,895 4,132 (a)
Shares redeemed........ (9,926) (38,351)(a) (259) (10)(a) (30,229) (65,976)(a)
---------- ----------- ----------- ----------- -------- --------
Change in net assets
from Premier Share
transactions.......... $ 1,625 $ (21,412) $ 25 $ 2,127 $ 13,828 $ 27,896
========== =========== =========== =========== ======== ========
Class B Shares:
Proceeds from shares
issued................ $ 24 (c) $ -- $ -- $ -- $ 1,549 $ 498 (b)
Dividends reinvested... -- (c) -- -- -- 26 4 (b)
Shares redeemed........ -- (c) -- -- -- (147) (60)(b)
---------- ----------- ----------- ----------- -------- --------
Change in net assets
from Class B Share
transactions.......... $ 24 $ -- $ -- $ -- $ 1,428 $ 442
========== =========== =========== =========== ======== ========
SHARE TRANSACTIONS:
Classic Shares:
Issued................. 86 350 32 93 162 889
Reinvested............. 10 22 13 33 21 109
Redeemed............... (236) (1,033) (181) (450) (173) (1,781)
---------- ----------- ----------- ----------- -------- --------
Change in Classic
Shares................ (140) (661) (136) (324) 10 (783)
========== =========== =========== =========== ======== ========
Premier Shares:
Issued................. 1,066 1,580 (a) 28 217 (a) 3,639 8,147 (a)
Reinvested............. 24 39 (a) -- -- (a) 256 376 (a)
Redeemed............... (937) (3,669)(a) (25) (1)(a) (2,668) (5,985)(a)
---------- ----------- ----------- ----------- -------- --------
Change in Premier
Shares................ 153 (2,050) 3 216 1,227 2,538
========== =========== =========== =========== ======== ========
Class B Shares:
Issued................. 2 (c) -- -- -- 137 45 (b)
Reinvested............. -- (c) -- -- -- 2 -- (b)
Redeemed............... -- (c) -- -- -- (13) (5)(b)
---------- ----------- ----------- ----------- -------- --------
Change in Class B
Shares................ 2 -- -- -- 126 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
January 31, 1999.
Continued
-98-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Florida Tax-
Municipal Bond Fund Free Fund
-------------------- --------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
January 31, July 31, January 31, July 31,
1999 1998 1999 1998
----------- -------- ----------- --------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares issued.. $ 218 $ 9,434 $ 1,879 $ 6,245
Dividends reinvested......... 44 52 202 218
Shares redeemed.............. (856) (5,477) (2,527) (5,154)
-------- -------- ------- -------
Change in net assets from
Classic Share transactions.. $ (594) $ 4,009 $ (446) $ 1,309
======== ======== ======= =======
Premier Shares:
Proceeds from shares issued.. $ 20,495 $ 45,269 (a) $ 8,051 $18,711 (a)
Dividends reinvested......... 86 48 (a) 15 -- (a)
Shares redeemed.............. (27,585) (57,585)(a) (3,311) (9,399)(a)
-------- -------- ------- -------
Change in net assets from
Premier Share transactions.. $ (7,004) $(12,268) $ 4,755 $ 9,312
======== ======== ======= =======
SHARE TRANSACTIONS:
Classic Shares:
Issued....................... 21 934 177 596
Reinvested................... 4 5 19 21
Redeemed..................... (83) (542) (239) (493)
-------- -------- ------- -------
Change in Classic Shares..... (58) 397 (43) 124
======== ======== ======= =======
Premier Shares:
Issued....................... 1,997 4,457 (a) 760 1,787 (a)
Reinvested................... 8 5 (a) 1 -- (a)
Redeemed..................... (2,684) (5,668)(a) (312) (899)(a)
-------- -------- ------- -------
Change in Premier Shares..... (679) (1,206) 449 888
======== ======== ======= =======
</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.
Continued
-99-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
U.S. Treasury Fund Prime Obligations Fund
--------------------- -----------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
January 31, July 31, January 31, July 31,
1999 1998 1999 1998
----------- --------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares:
Proceeds from shares is-
sued...................... $ 6,026 $ 13,952 $ 118,564 $ 214,118
Dividends reinvested....... 153 354 2,962 5,951
Shares redeemed............ (8,307) (16,122) (103,306) (214,135)
--------- --------- --------- -----------
Change in net assets from
Classic share transac-
tions..................... $ (2,128) $ (1,816) $ 18,220 $ 5,934
========= ========= ========= ===========
Premier Shares:
Proceeds from shares is-
sued...................... $ 371,464 $ 955,935 $ 879,129 $ 1,339,647
Dividends reinvested....... 563 383 941 1,859
Shares redeemed............ (418,422) (913,630) (821,684) (1,278,499)
--------- --------- --------- -----------
Change in net assets from
Premier share transac-
tions..................... $ (46,395) $ 42,688 $ 58,386 $ 63,007
========= ========= ========= ===========
Class B Shares:
Proceeds from shares is-
sued...................... $ -- $ -- $ 269 $ 1 (a)
Dividends reinvested....... -- -- 1 -- (a)
Shares redeemed............ -- -- (140) -- (a)
--------- --------- --------- -----------
Change in net assets from
Class B share transac-
tions..................... $ -- $ -- $ 130 $ 1
========= ========= ========= ===========
SHARE TRANSACTIONS:
Classic Shares:
Issued..................... 6,026 13,952 118,564 214,118
Reinvested................. 153 354 2,962 5,951
Redeemed................... (8,307) (16,122) (103,306) (214,135)
--------- --------- --------- -----------
Change in Classic Shares... (2,128) (1,816) 18,220 5,934
========= ========= ========= ===========
Premier Shares:
Issued..................... 371,464 955,935 879,129 1,339,647
Reinvested................. 563 383 941 1,859
Redeemed................... (418,422) (913,630) (821,684) (1,278,499)
--------- --------- --------- -----------
Change in Premier Shares... (46,395) 42,688 58,386 63,007
========= ========= ========= ===========
Class B Shares:
Issued..................... -- -- 269 1 (a)
Reinvested................. -- -- 1 -- (a)
Redeemed................... -- -- (140) -- (a)
--------- --------- --------- -----------
Change in Class B Shares... -- -- 130 1
========= ========= ========= ===========
</TABLE>
- --------
(a) For the period from June 15, 1998 (commencement of operations) to July 31,
1998.
Continued
-100-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Institutional Prime
Obligations Fund Tax-Exempt Fund
------------------- ---------------------
Period Six Months Year
Ended Ended Ended
January 31, January 31, July 31,
1999 (a) 1999 1998
------------------- ----------- ---------
<S> <C> <C> <C>
CAPITAL TRANSACTIONS:
Classic Shares (b):
Proceeds from shares issued........ $ 328,068 $ 23,408 $ 56,588
Dividends reinvested............... -- 375 691
Shares redeemed.................... (192,310) (24,563) (56,548)
--------- -------- ---------
Change in net assets from Classic
share transactions................ $ 135,758 $ (780) $ 731
========= ======== =========
Premier Shares:
Proceeds from shares issued........ $ -- $ 91,404 $ 169,123
Dividends reinvested............... -- -- 7
Shares redeemed.................... -- (84,491) (162,475)
--------- -------- ---------
Change in net assets from Premier
share transactions................ $ -- $ 6,913 $ 6,655
========= ======== =========
SHARE TRANSACTIONS:
Classic Shares (b):
Issued............................. 328,068 23,408 56,588
Reinvested......................... -- 375 691
Redeemed........................... (192,310) (24,563) (56,548)
--------- -------- ---------
Change in Classic Shares........... 135,758 (780) 731
========= ======== =========
Premier Shares:
Issued............................. -- 91,404 169,123
Reinvested......................... -- -- 7
Redeemed........................... -- (84,491) (162,475)
--------- -------- ---------
Change in Premier Shares........... -- 6,913 6,655
========= ======== =========
</TABLE>
- --------
(a) For the period from September 15, 1998 (commencement of operations) through
January 31, 1999,
(b) Class I shares for the Institutional Prime Obligations Fund.
Continued
-101-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
5.Related Party Transactions:
Investment advisory services are provided to each of the Funds by AmSouth.
Under the terms of the investment advisory agreement, AmSouth is entitled to
receive fees based on a percentage of the average daily net assets of each of
the Funds. 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 January 31, 1999, BISYS
received $677,317 from commissions earned on sales of shares of the Funds'
variable net asset value funds of which the $663,617 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.
Class B Shares of the Trust are subject to a Distribution and Shareholder
Servicing Plan (the "Distribution Plan") permitting payment of compensation
to a participating organization as payment for its services or
Continued
-102-
<PAGE>
AMSOUTH MUTUAL FUNDS
Notes to Financial Statements, Continued
January 31, 1999
(Unaudited)
expenses in connection with distribution assistance of the Funds' Class B
Shares to the participating organizations customers. Each Fund has entered
into a specific arrangement with BISYS for the provision of such services and
pays BISYS for its cost of providing such services, subject to a maximum rate
of 1.00% of the average daily net assets of the Class B Shares of each of the
Funds, which includes a Shareholder Servicing Fee of 0.25% of the average
daily net assets of the Class B Shares of each Fund.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the period ended January 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% $ -- $ -- $-- $17 $15 $--
Equity Fund............ 0.80% -- -- -- 10 15 --
Enhanced Market
Fund (a).............. 0.45% -- 11 9 10 10 --
Capital Growth Fund.... 0.80% -- 18 -- 26 15 --
Select Equity Fund (a). 0.80% -- 12 10 13 10 --
Regional Equity Fund... 0.80% -- -- -- 10 15 --
Small Cap Fund......... 1.20% -- 7 -- 25 15 4
Balanced Fund.......... 0.80% -- -- -- 10 15 --
Limited Maturity Fund.. 0.65% 86 46 3 10 10 --
Government Income Fund. 0.65% 18 5 6 15 10 --
Bond Fund.............. 0.65% 261 139 6 10 15 --
Municipal Bond Fund.... 0.65% 413 132 2 5 10 --
Florida Tax-Free Fund.. 0.65% 118 34 6 11 10 --
U.S. Treasury Fund..... 0.40% 1 -- 5 5 10 --
Prime Obligations Fund. 0.40% -- -- 97 10 15 --
Institutional Prime
Obl. Fund (b)......... 0.20% 59 32 -- -- 5 --
Tax-Exempt Fund........ 0.40% 88 -- 20 10 10 --
</TABLE>
- --------
(a) For the period from September 1, 1998 (commencement of operations) through
January 31, 1999.
(b) For the period from September 15, 1998 (commencement of operations)
through January 31, 1999.
6.Subsequent Events:
On February 19, 1999, the Institutional Prime Obligations Fund commenced the
public offering of Class II and Class III shares.
-103-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Equity Income Fund
---------------------------------------------------------------------------------------------
Year Ended
Six Months Ended July 31, March 20, 1997 to
January 31, 1999 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)................ 0.09 0.10 0.04 0.24 0.25 0.15 0.07
Net realized and
unrealized gains
(losses) from
investments........... 1.04 1.04 1.04 0.59 0.95 0.68 1.71
------- ------ ------ ------- ------ ------ -------
Total from Investment
Activities............ 1.13 1.14 1.08 0.83 1.20 0.83 1.78
------- ------ ------ ------- ------ ------ -------
Distributions
Net investment income.. (0.09) (0.10) (0.05) (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.... (0.35) (0.36) (0.31) (0.66) (0.66) (0.57) (0.06)
------- ------ ------ ------- ------ ------ -------
Net Asset Value, End of
Period................. $ 12.67 $12.67 $12.63 $ 11.89 $11.89 $11.86 $ 11.72
======= ====== ====== ======= ====== ====== =======
Total Return (excludes
sales charge).......... 9.75%(d) 9.81%(d) 9.33%(d) 7.29% 7.54%(c) 7.26%(d) 17.81%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $24,672 $9,830 $8,089 $26,686 $8,087 $7,733 $22,273
Ratio of expenses to
average net assets.... 1.44%(e) 1.18%(e) 2.18%(e) 1.42% 1.19%(e) 2.19%(e) 1.30%(e)
Ratio of net investment
income to average net
assets................ 1.44%(e) 1.68%(e) 0.68%(e) 2.03% 2.34%(e) 1.29%(e) 2.13%(e)
Ratio of expenses to
average net assets*... 1.60%(e) 1.34%(e) 2.34%(e) 1.57% 1.35%(e) 2.35%(e) 1.51%(e)
Portfolio turnover (f).. 69.17% 69.17% 69.17% 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 (commencement of operations) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 10.82%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
(g) Period from commencement of operations.
See notes to financial statements.
-104-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Equity Fund
-----------------------------------------------------------------------------
Six Months Ended Year ended
January 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, Begin-
ning of Period......... $ 24.60 $ 24.57 $ 24.55 $ 23.35 $ 22.51 $23.15
------- -------- ------- ------- -------- ------
Investment Activities
Net investment income
(loss)................ 0.11 0.14 0.03 0.21 0.28 0.09
Net realized and
unrealized gains
(losses) from
investments........... 1.51 1.55 1.49 2.54 3.31 2.68
------- -------- ------- ------- -------- ------
Total from Investment
Activities............ 1.62 1.69 1.52 2.75 3.59 2.77
------- -------- ------- ------- -------- ------
Distributions
Net investment income.. (0.11) (0.14) (0.03) (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.... (2.58) (2.61) (2.50) (1.50) (1.53) (1.37)
------- -------- ------- ------- -------- ------
Net Asset Value, End of
Period................. $ 23.64 $ 23.65 $ 23.57 $ 24.60 $ 24.57 $24.55
======= ======== ======= ======= ======== ======
Total Return (excludes
sales charge).......... 7.21%(d) 7.54%(d) 6.79%(d) 12.34% 12.46%(c) 12.49%(d)
Ratios/Supplemental Da-
ta:
Net Assets at end of
period (000).......... $75,512 $955,542 $10,241 $73,165 $947,575 $7,929
Ratio of expenses to
average net assets.... 1.34%(e) 1.09%(e) 2.08%(e) 1.19% 1.09%(e) 2.11%(e)
Ratio of net investment
income to average net
assets................ 0.88%(e) 1.13%(e) 0.13%(e) 0.89% 1.26%(e) 0.26%(e)
Ratio of expenses to
average net assets*... 1.34%(e) 1.09%(e) 2.09%(e) 1.19% 1.10%(e) 2.11%(e)
Portfolio turnover (f).. 9.51% 9.51% 9.51% 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) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 16.52%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-105-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Equity Fund
--------------------------------------
Year ended July 31,
--------------------------------------
1997 1996 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 17.62 $ 16.75 $ 14.82 $ 14.38
-------- -------- -------- --------
Investment Activities
Net investment income (loss).......... 0.30 0.33 0.33 0.28
Net realized and unrealized gains
(losses) from investments............ 6.77 1.48 2.39 0.83
-------- -------- -------- --------
Total from Investment Activities...... 7.07 1.81 2.72 1.11
-------- -------- -------- --------
Distributions
Net investment income................. (0.30) (0.33) (0.32) (0.28)
Net realized gains from investment
transactions......................... (1.04) (0.61) (0.47) (0.39)
-------- -------- -------- --------
Total Distributions................... (1.34) (0.94) (0.79) (0.67)
-------- -------- -------- --------
Net Asset Value, End of Period......... $ 23.35 $ 17.62 $ 16.75 $ 14.82
======== ======== ======== ========
Total Return (excludes sales charge)... 42.35% 11.09% 19.27% 7.90%
Ratios/Supplemental Data:
Net Assets at end of period (000)..... $974,985 $374,622 $275,757 $205,611
Ratio of expenses to average net
assets............................... 1.06% 1.02% 1.03% 0.94%
Ratio of net investment income to
average net assets................... 1.52% 1.86% 2.17% 1.93%
Ratio of expenses to average net
assets*.............................. 1.10% 1.11% 1.11% 1.11%
Portfolio turnover..................... 24.47% 19.11% 19.46% 11.37%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-106-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Enhanced Market
--------------------------------------
September 1, 1998
to January 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).......... 0.04 0.01 0.02
Net realized and unrealized gains
(losses) from investments............ 3.30 1.12 2.98
------- ------ ------
Total from Investment Activities...... 3.34 1.13 3.00
------- ------ ------
Distributions
Net investment income................. (0.04) (0.01) (0.02)
Net realized gains from investment
transactions......................... (0.03) (0.03) (0.03)
------- ------ ------
Total Distributions................... (0.07) (0.04) (0.05)
------- ------ ------
Net Asset Value, End of Period......... $ 13.27 $13.27 $13.25
======= ====== ======
Total Return (excludes sales charge)... 33.57%(d) 9.36%(d) 29.17%(d)
Ratios/Supplemental Data:
Net Assets at end of period (000)..... $12,998 $ 549 $1,252
Ratio of expenses to average net
assets............................... 0.71%(e) 0.79%(e) 1.71%(e)
Ratio of net investment income to
average net assets................... 0.92%(e) 0.39%(e) (0.28)%(e)
Ratio of expenses to average net
assets*.............................. 1.61%(e) 1.47%(e) 2.39%(e)
Portfolio turnover (f)................. 1.87% 1.87% 1.87%
</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 14, 1999 (commencement of operations) to
January 31, 1999.
(c) For the period from September 2, 1998 (commencement of operations) to
January 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.
-107-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Capital Growth Fund
--------------------------------------------------------------------------------
Six Months Ended August 3, 1997
January 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)................ (0.03) (0.01) (0.05) (0.03) -- (0.06)
Net realized and
unrealized gains
(losses) from
investments........... 2.67 2.67 2.61 1.65 2.10 1.78
------- ------ ------ ------ ------ ------
Total from Investment
Activities............ 2.64 2.66 2.56 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................. $ 14.17 $14.22 $14.01 $11.62 $11.65 $11.54
======= ====== ====== ====== ====== ======
Total Return (excludes
sales charge).......... 22.89%(d) 23.00%(d) 22.35%(d) 16.20%(d) 16.50%(c) 17.52%(d)
Ratios/Supplemental Da-
ta:
Net Assets at end of
period (000).......... $12,033 $8,285 $5,237 $9,720 $2,824 $3,477
Ratio of expenses to
average net assets.... 1.28%(e) 1.01%(e) 2.02%(e) 1.40%(e) 0.99%(e) 2.05%(e)
Ratio of net investment
income to average net
assets................ (0.48)%(e) (0.24)%(e) (1.23)%(e) (0.42)%(e) 0.00%(e) (1.10)%(e)
Ratio of expenses to
average net assets*... 1.96%(e) 1.69%(e) 2.70%(e) 2.37%(e) 2.05%(e) 3.11%(e)
Portfolio turnover (f).. 68.55% 68.55% 68.55% 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) to 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) to July 31, 1998 was 21.99%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Period from commencement of operations.
See notes to financial statements.
-108-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Select Equity
---------------------------------------
September 1, 1998
to January 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)......... 0.02 -- 0.01
Net realized and unrealized gains
(losses) from investments........... 1.93 0.40 1.91
------- ------ ------
Total from Investment Activities..... 1.95 0.40 1.92
------- ------ ------
Distributions
Net investment income................ (0.03) (0.00) (0.01)
Net realized gains from investment
transactions........................ (0.01) (0.01) (0.01)
------- ------ ------
Total Distributions.................. (0.04) (0.01) (0.02)
------- ------ ------
Net Asset Value, End of Period........ $ 11.91 $11.91 $11.88
======= ====== ======
Total Return (excludes sales charge).. 19.40%(d) 3.45%(d) 18.95%(d)
Ratios/Supplemental Data:
Net Assets at end of period (000).... $13,870 $ 692 $ 697
Ratio of expenses to average net
assets.............................. 0.98%(e) 0.99%(e) 1.96%(e)
Ratio of net investment income to
average net assets.................. 0.38%(e) (0.23)%(e) (0.83)%(e)
Ratio of expenses to average net
assets*............................. 1.90%(e) 1.69%(e) 2.66%(e)
Portfolio turnover (f)................ 2.45% 2.45% 2.45%
</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 4, 1999 (commencement of operations) to
January 31, 1999.
(c) For the period from September 2, 1998 (commencement of operations) to
January 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.
-109-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Regional Equity Fund
------------------------------------------------------------------------------
Six Months Ended Year ended
January 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)................ 0.04 0.07 (0.03) 0.05 0.13 (0.05)
Net realized and
unrealized gains
(losses) from
investments........... (2.05) (2.04) (2.07) (0.08) 0.17 (0.42)
------- ------- ------ ------- ------- ------
Total from Investment
Activities............ (2.01) (1.97) (2.10) (0.03) 0.30 (0.47)
------- ------- ------ ------- ------- ------
Distributions
Net investment income.. (0.05) (0.07) (0.01) (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.... (1.58) (1.60) (1.54) (1.02) (1.05) (0.97)
------- ------- ------ ------- ------- ------
Net Asset Value, End of
Period................. $ 23.59 $ 23.63 $23.41 $ 27.18 $ 27.20 $27.05
======= ======= ====== ======= ======= ======
Total Return (excludes
sales charge).......... (7.32)%(d) (7.16)%(d) (7.70)%(d) (0.31)% (0.12)%(c) (1.86)%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $31,951 $76,856 $1,741 $42,700 $94,909 $1,998
Ratio of expenses to
average net assets.... 1.39%(e) 1.14%(e) 2.14%(e) 1.30% 1.12%(e) 2.14%(e)
Ratio of net investment
income to average net
assets................ 0.34%(e) 0.60%(e) (0.40)%(e) 0.14% 0.45%(e) (0.65)%(e)
Ratio of expenses to
average net assets*... 1.43%(e) 1.18%(e) 2.18%(e) 1.32% 1.13%(e) 2.15%(e)
Portfolio turnover (f).. 9.63% 9.63% 9.63% 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) to July 31, 1998 was 0.87%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-110-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Regional Equity Fund
-----------------------------------
Year ended
July 31,
-----------------------------------
1997 1996 1995 1994
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period...... $ 20.95 $ 18.94 $ 16.68 $ 16.74
-------- ------- ------- -------
Investment Activities
Net investment income (loss)............. 0.24 0.26 0.23 0.23
Net realized and unrealized gains
(losses) from investments............... 7.77 2.20 2.26 0.58
-------- ------- ------- -------
Total from Investment Activities......... 8.01 2.46 2.49 0.81
-------- ------- ------- -------
Distributions
Net investment income.................... (0.24) (0.26) (0.23) (0.23)
Net realized gains from investment
transactions............................ (0.49) (0.19) -- (0.41)
In excess of net realized gains.......... -- -- -- (0.23)
-------- ------- ------- -------
Total Distributions...................... (0.73) (0.45) (0.23) (0.87)
-------- ------- ------- -------
Net Asset Value, End of Period............ $ 28.23 $ 20.95 $ 18.94 $ 16.68
======== ======= ======= =======
Total Return (excludes sales charge)...... 39.02% 13.10% 15.10% 4.87%
Ratios/Supplemental Data:
Net Assets at end of period (000)........ $149,838 $93,584 $68,501 $54,744
Ratio of expenses to average net assets.. 1.06% 1.05% 1.07% 0.79%
Ratio of net investment income to average
net assets.............................. 0.99% 1.30% 1.35% 1.36%
Ratio of expenses to average net assets*. 1.10% 1.13% 1.15% 1.24%
Portfolio turnover........................ 10.30% 8.22% 14.25% 5.83%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-111-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Small Cap Fund
---------------------------------------------------------------------------
Six Months Ended March 2, 1998
January 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)................ (0.04) (0.02) (0.07) (0.03) (0.02) (0.04)
Net realized and
unrealized gains
(losses) from
investments........... (0.18) (0.19) (0.18) (0.80) (0.83) (0.85)
------ ------ ------ ------ ------ ------
Total from Investment
Activities............ (0.22) (0.21) (0.25) (0.83) (0.85) (0.89)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 8.92 $ 8.94 $ 8.86 9.14 $ 9.15 $ 9.11
====== ====== ====== ====== ====== ======
Total Return (excludes
sales charge).......... (2.41)%(c) (2.29)%(c) (2.74)%(c) (8.31)%(c) (8.48)%(c) (8.90)%(c)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $1,379 $7,061 $ 977 $1,372 $5,072 $ 871
Ratio of expenses to
average net assets.... 1.70%(d) 1.46%(d) 2.47%(d) 1.78%(d) 1.50%(d) 2.54%(d)
Ratio of net investment
income to average net
assets................ (1.14)%(d) (0.90)%(d) (1.90)%(d) (0.92)%(d) (0.52)%(d) (1.69)%(d)
Ratio of expenses to
average net assets*... 3.13%(d) 2.86%(d) 3.87%(d) 4.23%(d) 3.94%(d) 4.98%(d)
Portfolio turnover (e).. 117.34% 117.34% 117.34% 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) to 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.
-112-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------------------------------------------------
Six Months Ended Year ended
January 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)................ 0.20 0.22 0.15 0.38 0.41 0.28
Net realized and
unrealized gains
(losses) from
investments........... 0.68 0.69 0.68 0.98 1.38 1.15
------- -------- ------ ------- -------- ------
Total from Investment
Activities............ 0.88 0.91 0.83 1.36 1.79 1.43
------- -------- ------ ------- -------- ------
Distributions
Net investment income.. (0.21) (0.23) (0.16) (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.... (1.41) (1.43) (1.36) (1.38) (1.38) (1.26)
------- -------- ------ ------- -------- ------
Net Asset Value, End of
Period................. $ 14.66 $ 14.66 $14.63 $ 15.19 $ 15.18 $15.16
======= ======== ====== ======= ======== ======
Total Return (excludes
sales charge).......... 6.08%(d) 6.29%(d) 5.71%(d) 9.54% 9.73%(c) 10.07%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $46,157 $331,322 $8,161 $46,814 $329,626 $5,309
Ratio of expenses to
average net assets.... 1.34%(e) 1.09%(e) 2.09%(e) 1.24% 1.10%(e) 2.12%(e)
Ratio of net investment
income to average net
assets................ 2.62%(e) 2.87%(e) 1.85%(e) 2.77% 2.95%(e) 1.83%(e)
Ratio of expenses to
average net assets*... 1.35%(e) 1.10%(e) 2.10%(e) 1.24% 1.10%(e) 2.12%(e)
Portfolio turnover (f).. 9.13% 9.13% 9.13% 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) to July
31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 12.70%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-113-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Balanced Fund
--------------------------------------
Year ended July 31,
--------------------------------------
1997 1996 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 13.03 $ 12.76 $ 11.81 $ 11.86
-------- -------- -------- --------
Investment Activities
Net investment income (loss).......... 0.48 0.47 0.47 0.42
Net realized and unrealized gains
(losses) from investments............ 2.78 0.58 1.24 0.18
-------- -------- -------- --------
Total from Investment Activities...... 3.26 1.05 1.71 0.60
-------- -------- -------- --------
Distributions
Net investment income................. (0.50) (0.47) (0.46) (0.42)
Net realized gains from investment
transactions......................... (0.58) (0.31) (0.30) (0.23)
-------- -------- -------- --------
Total Distributions................... (1.08) (0.78) (0.76) (0.65)
-------- -------- -------- --------
Net Asset Value, End of Period......... $ 15.21 $ 13.03 $ 12.76 $ 11.81
======== ======== ======== ========
Total Return (excludes sales charge)... 26.42% 8.37% 15.27% 5.13%
Ratios/Supplemental Data:
Net Assets at end of period (000)..... $372,769 $338,425 $295,509 $236,306
Ratio of expenses to average net
assets............................... 1.05% 0.98% 0.94% 0.84%
Ratio of net investment income to
average net assets................... 3.49% 3.61% 3.91% 3.56%
Ratio of expenses to average net
assets*.............................. 1.10% 1.11% 1.12% 1.11%
Portfolio turnover..................... 25.00% 20.47% 16.97% 14.43%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-114-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Limited Maturity Fund
--------------------------------------------------------------
Six Months Ended Year ended
January 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)................ 0.29 0.30 0.04 0.85 0.55
Net realized and
unrealized gains
(losses) from
investments........... 0.13 0.13 (0.02) (0.25) 0.10
------ -------- ------ ------ --------
Total from Investment
Activities............ 0.42 0.43 0.02 0.60 0.65
------ -------- ------ ------ --------
Distributions
Net investment income.. (0.29) (0.30) (0.04) (0.59) (0.56)
------ -------- ------ ------ --------
Total Distributions.... (0.29) (0.30) (0.04) (0.59) (0.56)
------ -------- ------ ------ --------
Net Asset Value, End of
Period................. $10.56 $ 10.56 $10.56 $10.43 $ 10.43
====== ======== ====== ====== ========
Total Return (excludes
sales charge).......... 4.05%(c) 4.13%(c) 0.19%(c) 5.94% 6.04%(b)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $2,096 $109,900 $ 24 $3,531 $106,953
Ratio of expenses to
average net assets.... 0.81%(e) 0.71%(e) 1.59%(e) 0.74% 0.73%(e)
Ratio of net investment
income to average net
assets................ 5.46%(e) 5.54%(e) 3.99%(e) 5.65% 5.70%(e)
Ratio of expenses to
average net assets*... 1.23%(e) 0.98%(e) 2.24%(e) 0.96% 0.98%(e)
Portfolio turnover (f).. 4.69% 4.69% 4.69% 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) to July 31, 1998 was 6.37%.
(c) Not annualized.
(d) For the period from January 21, 1999 (commencement of operations) to
January 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.
-115-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Limited Maturity Fund
-----------------------------------
Year ended July 31,
-----------------------------------
1997 1996 1995 1994
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period...... $ 10.31 $ 10.41 $ 10.23 $ 10.81
-------- ------- ------- -------
Investment Activities
Net investment income (loss)............. 0.58 0.58 0.58 0.54
Net realized and unrealized gains
(losses) from investments............... 0.14 (0.10) 0.17 (0.45)
-------- ------- ------- -------
Total from Investment Activities......... 0.72 0.48 0.75 0.09
-------- ------- ------- -------
Distributions
Net investment income.................... (0.61) (0.57) (0.57) (0.54)
Net realized gains from investment
transactions............................ -- (0.01) -- --
In excess of net realized gains.......... -- -- -- (0.13)
-------- ------- ------- -------
Total Distributions...................... (0.61) (0.58) (0.57) (0.67)
-------- ------- ------- -------
Net Asset Value, End of Period............ $ 10.42 $ 10.31 $ 10.41 $ 10.23
======== ======= ======= =======
Total Return (excludes sales charge)...... 7.25% 4.74% 7.65% 0.77%
Ratios/Supplemental Data:
Net Assets at end of period (000)........ $138,675 $46,005 $59,798 $51,660
Ratio of expenses to average net assets.. 0.77% 0.76% 0.80% 0.79%
Ratio of net investment income to average
net assets.............................. 5.65% 5.48% 5.69% 5.05%
Ratio of expenses to average net assets*. 1.02% 0.99% 1.03% 1.02%
Portfolio turnover........................ 64.89% 29.56% 38.11% 48.06%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
-116-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Government Income Fund
---------------------------------------------------
Six Months Ended Year ended
January 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)................... 0.27 0.28 0.63 0.59
Net realized and
unrealized gains (losses)
from investments......... 0.12 0.12 0.09 0.17
-------- -------- ------ ------
Total from Investment
Activities............... 0.39 0.40 0.72 0.76
-------- -------- ------ ------
Distributions
Net investment income..... (0.28) (0.28) (0.53) (0.49)
In excess of net
investment income........ -- -- (0.06) (0.06)
-------- -------- ------ ------
Total Distributions....... (0.26) (0.28) (0.59) (0.55)
-------- -------- ------ ------
Net Asset Value, End of
Period.................... $ 9.99 $ 9.99 $ 9.88 $ 9.87
======== ======== ====== ======
Total Return (excludes
sales charge)............. 3.92%(c) 3.98%(c) 7.58% 7.58%(b)
Ratios/Supplemental Data:
Net Assets at end of
period (000)............. $ 6,916 $ 2,574 $8,176 $2,521
Ratio of expenses to
average net assets....... 0.70%(d) 0.60%(d) 0.71% 0.63%(d)
Ratio of net investment
income to average net
assets................... 5.37%(d) 5.45%(d) 5.95% 5.72%(d)
Ratio of expenses to
average net assets*...... 1.79%(d) 1.54%(d) 1.77% 1.80%(d)
Portfolio turnover (e)..... 5.29% 5.29% 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) to July 31, 1998 was 8.04%.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-117-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Government Income Fund
------------------------------------------
Year ended July 31, October 1, 1993
------------------------- to July 31,
1997 1996 1995 1994 (a)
------- ------- ------- ---------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 9.40 $ 9.54 $ 9.48 $ 10.00
------- ------- ------- -------
Investment Activities
Net investment income (loss)...... 0.58 0.66 0.68 0.54
Net realized and unrealized gains
(losses) from investments........ 0.35 (0.20) 0.08 (0.57)
------- ------- ------- -------
Total from Investment Activities.. 0.93 0.46 0.76 (0.03)
------- ------- ------- -------
Distributions
Net investment income............. (0.58) (0.59) (0.70) (0.33)
Tax return of capital............. -- (0.01) -- (0.16)
------- ------- ------- -------
Total Distributions............... (0.58) (0.60) (0.70) (0.49)
------- ------- ------- -------
Net Asset Value, End of Period..... $ 9.75 $ 9.40 $ 9.54 $ 9.48
======= ======= ======= =======
Total Return (excludes sales
charge)........................... 10.21% 4.91% 8.43% (0.26)%(b)
Ratios/Supplemental Data:
Net Assets at end of period (000). $11,622 $15,752 $16,679 $15,465
Ratio of expenses to average net
assets........................... 0.69% 0.65% 0.58% 0.37%(c)
Ratio of net investment income to
average net assets............... 5.98% 6.81% 7.18% 6.56%(c)
Ratio of expenses to average net
assets*.......................... 1.29% 1.10% 1.19% 1.22%(c)
Portfolio turnover................. 2.96% 78.31% 27.32% 122.94%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If such fee
reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-118-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Bond Fund
----------------------------------------------------------------------------
Six Months Ended Year ended
January 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)................ 0.29 0.31 0.29 1.41 0.57 0.46
Net realized and
unrealized gains
(losses) from
investments........... 0.32 0.30 0.26 (0.62) 0.38 0.24
------ -------- ------ ------ -------- ------
Total from Investment
Activities............ 0.61 0.61 0.55 0.79 0.95 0.70
------ -------- ------ ------ -------- ------
Distributions
Net investment income.. (0.31) (0.31) (0.26) (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.... (0.44) (0.44) (0.39) (0.66) (0.62) (0.54)
------ -------- ------ ------ -------- ------
Net Asset Value, End of
Period................ $11.22 $ 11.22 $11.20 $11.05 $ 11.05 $11.04
====== ======== ====== ====== ======== ======
Total Return (excludes
sales charge).......... 5.55%(d) 5.61%(d) 5.05%(d) 7.45% 7.54%(c) 6.58%(d)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $7,250 $346,740 $1,865 $7,032 $327,930 $ 442
Ratio of expenses to
average net assets.... 0.81%(e) 0.71%(e) 1.70%(e) 0.73% 0.73%(e) 1.74%(e)
Ratio of net investment
income to average net
assets................ 5.31%(e) 5.41%(e) 4.40%(e) 5.78% 5.72%(e) 4.75%(e)
Ratio of expenses to
average net assets*... 1.20%(e) 0.95%(e) 1.94%(e) 0.95% 0.97%(e) 1.99%(e)
Portfolio turnover (f).. 9.08% 9.08% 9.08% 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) to
July 31, 1998.
(c) Represents total return based on the activity of Classic Shares for the
period from August 1, 1997 to September 1, 1997 and the activity of
Premier Shares for the period from September 2, 1997 to July 31, 1998.
Total return for the Premier Shares for the period from September 2, 1997
(commencement of operations) to July 31, 1998 was 9.03%.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distingushing between the classes of shares issued.
See notes to financial statements.
-119-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Bond Fund
------------------------------------
Year ended July 31,
------------------------------------
1997 1996 1995 1994
-------- -------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 10.54 $ 10.83 $ 10.59 $ 11.29
-------- -------- ------- -------
Investment Activities
Net investment income (loss)............ 0.65 0.65 0.69 0.69
Net realized and unrealized gains
(losses) from investments.............. 0.42 (0.18) 0.28 (0.66)
-------- -------- ------- -------
Total from Investment Activities........ 1.07 0.47 0.97 0.03
-------- -------- ------- -------
Distributions
Net investment income................... (0.69) (0.65) (0.69) (0.70)
Net realized gains from investment
transactions........................... -- (0.11) (0.04) (0.03)
-------- -------- ------- -------
Total Distributions..................... (0.69) (0.76) (0.73) (0.73)
-------- -------- ------- -------
Net Asset Value, End of Period........... $ 10.92 $ 10.54 $ 10.83 $ 10.59
======== ======== ======= =======
Total Return (excludes sales charge)..... 10.48% 4.40% 9.70% 0.23%
Ratios/Supplemental Data:
Net Assets at end of period (000)....... $311,881 $132,737 $94,671 $79,472
Ratio of expenses to average net assets. 0.75% 0.75% 0.75% 0.78%
Ratio of net investment income to
average net assets..................... 6.10% 6.12% 6.63% 6.31%
Ratio of expenses to average net
assets*................................ 0.98% 0.98% 0.98% 1.01%
Portfolio turnover....................... 34.62% 9.60% 17.70% 30.90%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. If these 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>
Municipal Bond Fund
----------------------------------------------------------------
Six Months Ended Year ended July 1, 1997
January 31, July 31, to July 31,
1999 1998 1997 (a)
-------------------- ----------------------- ------------
Classic Premier Classic (b) Premier (b)
------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.13 $ 10.14 $10.15 $ 10.04 $ 10.00
------ -------- ------ -------- --------
Investment Activities
Net investment income
(loss)................ 0.20 0.21 0.86 0.39 0.04
Net realized and
unrealized gains
(losses) from
investments........... 0.28 0.27 (0.43) 0.14 0.15
------ -------- ------ -------- --------
Total from Investment
Activities............ 0.48 0.48 0.43 0.53 0.19
------ -------- ------ -------- --------
Distributions
Net investment income.. (0.20) (0.21) (0.42) (0.40) (0.04)
Net realized gains from
investment
transactions.......... (0.11) (0.11) (0.03) (0.03) --
------ -------- ------ -------- --------
Total Distributions.... (0.31) (0.32) (0.45) (0.43) (0.04)
------ -------- ------ -------- --------
Net Asset Value, End of
Period................. $10.30 $ 10.30 $10.13 $ 10.14 $ 10.15
====== ======== ====== ======== ========
Total Return (excludes
sales charge).......... 4.77%(c) 4.72%(c) 4.30% 4.49%(d) 1.86%(c)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $2,139 $324,750 $2,689 $326,464 $337,933
Ratio of expenses to
average net assets.... 0.71%(e) 0.61%(e) 0.62% 0.64%(e) 0.71%(e)
Ratio of net investment
income to average net
assets................ 3.95%(e) 4.04%(e) 4.26% 4.23%(e) 4.31%(e)
Ratio of expenses to
average net assets*... 1.20%(e) 0.95%(e) 0.92% 0.97%(e) 1.04%(e)
Portfolio turnover (f).. 11.20% 11.20% 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) to 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.
See notes to financial statements.
-121-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Florida Tax-Free Fund
----------------------------------------------------------------------------------------
Year ended
Six Months Ended Year ended July 31, September 30, 1994
January 31, July 31, ---------------- to July 31,
1999 1998 1997 1996 1995 (f)
--------------------- ----------------------- ------- ------- ------------------
Classic Premier Classic (a) Premier (a)
-------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 10.45 $ 10.46 $10.50 $ 10.39 $ 10.30 $ 10.32 $ 10.00
------- -------- ------ ------- ------- ------- -------
Investment Activities
Net investment income
(loss)................. 0.21 0.22 0.45 0.41 0.45 0.45 0.34
Net realized and
unrealized gains
(losses) from
investments............ 0.25 0.24 0.01 0.14 0.24 (0.01) 0.30
------- -------- ------ ------- ------- ------- -------
Total from Investment
Activities............. 0.46 0.46 0.46 0.55 0.69 0.44 0.64
------- -------- ------ ------- ------- ------- -------
Distributions
Net investment income... (0.21) (0.22) (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..... (0.27) (0.28) (0.51) (0.48) (0.49) (0.46) (0.32)
------- -------- ------ ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 10.64 $ 10.64 $10.45 $ 10.46 $ 10.50 $ 10.30 $ 10.32
======= ======== ====== ======= ======= ======= =======
Total Return (excludes
sales charge)........... 4.43%(c) 4.39%(c) 4.46% 4.66%(b) 6.89% 4.24% 6.53%(c)
Ratios/Supplemental Data:
Net Assets at end of
period (000)........... $ 8,355 $ 61,143 $8,663 $55,369 $53,688 $48,869 $48,333
Ratio of expenses to
average net assets..... 0.58%(d) 0.48%(d) 0.55% 0.49%(d) 0.57% 0.59% 0.70%(d)
Ratio of net investment
income to average net
assets................. 3.99%(d) 4.09%(d) 4.24% 4.30%(d) 4.36% 4.33% 4.16%(d)
Ratio of expenses to
average net assets*.... 1.25%(d) 1.00%(d) 1.06% 1.04%(d) 1.06% 1.04% 1.01%(d)
Portfolio turnover (e)... 13.12% 13.12% 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) to 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 distingushing between the classes of shares issued.
(f) Period from commencement of operations.
See notes to financial statements.
-122-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
U.S. Treasury Fund
-------------------------------------------------------------
Six Months Ended Year ended July 31,
January 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.. 0.021 0.021 0.046 0.047 0.045 0.046
------ -------- ------ -------- ------ --------
Distributions
Net investment income.. (0.021) (0.021) (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............ 2.11%(a) 2.16%(a) 4.67% 4.77% 4.60% 4.70%
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $5,942 $305,660 $8,070 $352,055 $9,885 $309,361
Ratio of expenses to
average net assets.... 0.79%(b) 0.69%(b) 0.80% 0.70% 0.79% 0.69%
Ratio of net investment
income to average net
assets................ 4.18%(b) 4.25%(b) 4.57% 4.67% 4.50% 4.60%
Ratio of expenses to
average net assets*... 0.95%(b) 0.70%(b) 0.95% 0.70% 0.94% (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) Not annualized.
(b) Annualized.
(c) There were no waivers during the period.
See notes to financial statements.
-123-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
U.S. Treasury Fund
-----------------------------------------------
Year ended July 31,
-----------------------------------------------
1996 1995 1994
------------------------- -------- --------
Classic (a) Premier (a)
----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period....................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- -------- --------
Investment Activities
Net investment income........ 0.015 0.048 0.048 0.028
------- -------- -------- --------
Distributions
Net investment income........ (0.015) (0.048) (0.048) (0.028)
------- -------- -------- --------
Net Asset Value, End of
Period....................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======== ========
Total Return.................. 4.90%(b) 4.93% 4.90% 2.80%
Ratios/Supplemental Data:
Net Assets at end of period
(000)....................... $12,263 $368,162 $322,939 $300,603
Ratio of expenses to average
net assets.................. 0.82%(c) 0.71% 0.70% 0.71%
Ratio of net investment
income to average net
assets...................... 4.44%(c) 4.82% 4.81% 2.77%
Ratio of expenses to average
net assets*................. 0.97%(c) (d) (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.
-124-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Prime Obligations Fund
----------------------------------------------------------------------
Six Months Ended Year ended
January 31, 1999 July 31, 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.. 0.023 0.024 0.022 0.049 0.050 0.005
-------- -------- ------ -------- -------- -------
Distributions
Net investment income.. (0.023) (0.024) (0.022) (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............ 2.35%(b) 2.40%(b) 1.88%(b) 4.99% 5.09% 0.49%(b)
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $135,180 $538,362 $ 131 $116,960 $479,974 $ 1
Ratio of expenses to
average net assets.... 0.78%(c) 0.68%(c) 1.70%(c) 0.79% 0.69% 1.85%(c)
Ratio of net investment
income to average net
assets................ 4.61%(c) 4.72%(c) 3.64%(c) 4.88% 4.98% 3.83%(c)
Ratio of expenses to
average net assets*... 0.94%(c) 0.69%(c) 1.70%(c) 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) to July 31,
1998.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-125-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Prime Obligations Fund
-----------------------------------------------------------------------
Year ended July 31,
-----------------------------------------------------------------------
1997 1996 1995 1994
------------------ -------------------------- -------- --------
Classic Premier Classic (a) Premier (a)
-------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.048 0.049 0.016 0.050 0.050 0.029
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.048) (0.049) (0.016) (0.050) (0.050) (0.029)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 4.90% 5.00% 5.07%(b) 5.10% 5.14% 2.94%
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $111,027 $416,966 $125,075 $478,542 $617,673 $577,331
Ratio of expenses to
average net assets.... 0.78% 0.68% 0.81%(c) 0.71% 0.69% 0.70%
Ratio of net investment
income to average net
assets................ 4.79% 4.89% 4.61%(c) 5.00% 5.04% 2.92%
Ratio of expenses to
average net assets*... 0.93% (d) 0.96%(c) (d) (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.
-126-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Institutional Prime
Obligations Fund
-------------------
Six Months Ended
January 31,
1999 (a)
-------------------
Class I
-------------------
<S> <C>
Net Asset Value, Beginning of Period........................ $ 1.000
--------
Investment Activities
Net investment income...................................... 0.019
--------
Distributions
Net investment income...................................... (0.019)
--------
Net Asset Value, End of Period.............................. $ 1.000
========
Total Return................................................ 1.91%(b)
Ratios/Supplemental Data:
Net Assets at end of period (000).......................... $135,758
Ratio of expenses to average net assets.................... 0.21%(c)
Ratio of net investment income to average net assets....... 4.96%(c)
Ratio of expenses to average net assets*................... 0.46%(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 September 15, 1998 (commencement of operations) through
January 31, 1999.
(b) Not annualized
(c) Annualized.
See notes to financial statements.
-127-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Tax Exempt Fund
--------------------------------------------------------------
Six Months Ended Year ended July 31,
January 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.. 0.014 0.014 0.030 0.031 0.030 0.031
-------- -------- ------- ------- ------- -------
Distributions
Net investment income.. (0.014) (0.014) (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............ 1.38%(a) 1.44%(a) 3.03% 3.13% 3.04% 3.15%
Ratios/Supplemental
Data:
Net Assets at end of
period (000).......... $ 27,877 $ 68,998 $28,657 $62,084 $27,926 $55,429
Ratio of expenses to
average net assets.... 0.59%(b) 0.49%(b) 0.60% 0.50% 0.62% 0.52%
Ratio of net investment
income to average net
assets................ 2.73%(b) 2.82%(b) 2.97% 3.07% 3.00% 3.10%
Ratio of expenses to
average net assets*... 0.99%(b) 0.74%(b) 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.
(a) Not annualized
(b) Annualized.
See notes to financial statements.
-128-
<PAGE>
AMSOUTH MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Tax Exempt Fund
------------------------------------------
Year ended July 31,
------------------------------------------
1996 1995 1994
------------------------- ------- -------
Classic (a) Premier (a)
----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
Investment Activities
Net investment income............. 0.010 0.031 0.032 0.019
------- ------- ------- -------
Distributions
Net investment income............. (0.010) (0.031) (0.032) (0.019)
------- ------- ------- -------
Net Asset Value, End of Period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= =======
Total Return....................... 3.12%(b) 3.15% 3.22% 1.95%
Ratios/Supplemental Data:
Net Assets at end of period (000). $17,116 $43,611 $57,640 $60,923
Ratio of expenses to average net
assets........................... 0.68%(c) 0.54% 0.54% 0.57%
Ratio of net investment income to
average net assets............... 2.82%(c) 3.11% 3.15% 1.93%
Ratio of expenses to average net
assets*.......................... 1.03%(c) 0.74% 0.74% 0.77%
</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 0.95%.
(c) Annualized.
See notes to financial statements.
-129-
<PAGE>
INVESTMENT ADVISOR
[LOGO OF AMSOUTH APPEARS HERE]
AmSouth Bank AMSOUTH
1901 Sixth Avenue North MUTUAL FUNDS
Birmingham, AL 35203
Investment Sub-Advisors SEMI-ANNUAL REPORT
(Equity Income Fund Only) January 31, 1999
Rockhaven Asset Management, LLC
100 First Avenue, Suite 1050
Pittsburgh, PA 15222
(Capital Growth Fund Only)
Peachtree Asset Management
A Division of Smith Barney
Mutual Funds Management, Inc.
One Peachtree Center
Atlanta, GA 30308
(Small Cap Fund Only)
Sawgrass Asset Management, LLC
4337 Pablo Oaks Court
Jacksonville, FL 32224
(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
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
[LOGO OF AMSOUTH APPEARS HERE]
AMSOUTH BANK
Investment Advisor
3/99
