THE WACHOVIA FUNDS
WACHOVIA EQUITY FUND
WACHOVIA QUANTITATIVE EQUITY FUND
WACHOVIA GROWTH AND INCOME FUND
WACHOVIA EQUITY INDEX FUND
WACHOVIA SPECIAL VALUES FUND
WACHOVIA EMERGING MARKETS FUND
WACHOVIA BALANCED FUND
WACHOVIA FIXED INCOME FUND
WACHOVIA INTERMEDIATE FIXED INCOME FUND
WACHOVIA SHORT-TERM FIXED INCOME FUND
THE WACHOVIA MUNICIPAL FUNDS
WACHOVIA GA MUNICIPAL BOND FUND
WACHOVIA NC MUNICIPAL BOND FUND
WACHOVIA SC MUNICIPAL BOND FUND
WACHOVIA VA MUNICIPAL BOND FUND
Combined Semi-Annual Report
Dated May 31, 1998
Effective July 31, 1997 The Biltmore Funds became The Wachovia Funds and The
Biltmore Municipal Funds became The Wachovia Municipal Funds.
[LOGO] WACHOVIA
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- -------------------------------------------------------------------------------
President's Message
Dear Shareholder:
I am pleased to present the combined Semi-Annual Report to Shareholders for The
Wachovia Funds and The Wachovia Municipal Funds.
This Report covers the six-month period from December 1, 1997 through May 31,
1998, and includes a complete list of fund holdings and the financial
statements. The following fund-by-fund highlights cover performance activity in
Class A Shares, Class B Shares, and Class Y Shares.*
The Wachovia Funds
WACHOVIA EQUITY FUND pursues growth by focusing on stocks issued by companies
that are both undervalued and have good growth opportunities. At the end of the
period, the fund's portfolio included blue-chip stocks issued by some of
America's largest, best-known companies such as Black & Decker, Disney, DuPont,
Exxon, Intel, McDonald's, Microsoft, Sears, Time Warner, and Wal-Mart. Fund
assets reached $243.8 million at the end of the period.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Share 10.79% $0.06 $1.68 $15.39 to $15.10
Class B Shares 10.48% $0.01 $1.68 $15.35 to $15.07
Class Y Shares 10.76% $0.08 $1.68 $15.39 to $15.08
</TABLE>
WACHOVIA QUANTITATIVE EQUITY FUND pursues growth and income by investing in a
portfolio of stocks issued by large, established companies across the entire
industrial spectrum. On the last day of the period, the portfolio included
quality names like Anheuser-Busch, BankAmerica, Chrysler, Coca-Cola, Exxon,
General Electric, IBM, PepsiCo, and Xerox. Fund assets ended the period at
$287.7 million.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Shares 12.57% $0.10 $1.75 $19.00 to $19.29
Class B Shares 12.15% $0.04 $1.75 $18.95 to $19.23
Class Y Shares 12.75% $0.12 $1.75 $19.00 to $19.30
</TABLE>
WACHOVIA GROWTH AND INCOME FUND pursues total return through growth of capital
and income. At the end of the period, the fund's holdings included such names as
AT&T, Campbell, Caterpillar, Dow, DuPont, General Motors, Sears, and Travelers
Group. Fund assets ended the period at $328.3 million.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Shares 11.87% $0.03 $1.01 $20.60 to $21.88
Class Y Shares (period
from March 29, 1998
through May 31, 1998) (1.93)% $ -- $ -- $22.31 to $21.88
</TABLE>
WACHOVIA EQUITY INDEX FUND pursues a total return that approximates that of the
Standard & Poor's 500 Index--a classic benchmark of stock market performance.**
As a result, the fund's extensive portfolio contained stocks issued across the
entire spectrum of American business and industry. At the end of the period,
fund assets totaled $363.5 million.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Shares 14.68% $0.12 $0.40 $18.89 to $21.07
Class Y Shares 14.80% $0.14 $0.40 $18.91 to $21.09
</TABLE>
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
** The S&P 500 Index is an unmanaged index comprised of common stocks in
industry, transportation, and financial and public utility companies,
Investments cannot be made in an index.
WACHOVIA SPECIAL VALUES FUND pursues growth by investing in a diversified
portfolio of small-company stocks.*** Unlike many other funds that invest in
small-company stocks through a high-flying approach, this fund is managed
through a highly disciplined approach. Its manager seeks stocks issued by
well-capitalized, and well-run small companies that are selling at less than
their estimated long-term values. At the end of the period, the fund's $161.4
million portfolio was invested across 15 business sectors.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Shares 7.88% $0.12 $1.71 $18.64 to $18.10
Class Y Shares 7.97% $0.15 $1.71 $18.67 to $18.12
</TABLE>
WACHOVIA EMERGING MARKETS FUND pursues growth over the long term by investing in
stocks of foreign companies located in emerging market countries.+ The fund's
managers uses a unique "two-tier, equal weighting" approach to selecting stocks
for the fund that offers greater diversification than most emerging market
funds, with the opportunity for better protection from unexpected negative
developments in any one country. At the end of the period, the fund's portfolio
contained stocks issued by companies from 35 countries.
Fund assets ended the period at $162.8 million.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares (3.57%) $0.11 $11.12 to $10.62
Class Y Shares (3.54%) $0.13 $11.13 to $10.62
</TABLE>
WACHOVIA BALANCED FUND pursues a popular investment objective--long-term growth
and current income--by investing in a quality combination of stocks (43.3% of
portfolio at the end of the period) and bonds. Bond holdings were diversified
across corporate bonds (14.5%), mortgage-backed securities (20.1%), and U.S.
Treasury securities (16.4%). At the end of the period, fund assets stood at
$396.1 million.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Shares 7.94% $0.18 $0.90 $13.26 to $13.15
Class B Shares 7.63% $0.14 $0.90 $13.23 to $13.13
Class Y Shares 8.21% $0.20 $0.90 $13.26 to $13.16
</TABLE>
WACHOVIA FIXED INCOME FUND pursues a high level of total return from a
diversified portfolio of income-producing securities. At the end of the period,
the fund's $217.7 million portfolio was invested across U.S. Treasury securities
(21.6%), government agency securities (21.4%), and corporate bonds (37.4%),
open-ended investment companies (7.3%), a repurchase agreement (6.3%), and
asset-backed securities (5.5%).
<TABLE>
<CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares 3.67% $0.28 $9.85 to $9.93
Class B Shares 3.40% $0.24 $9.84 to $9.93
Class Y Shares 3.79% $0.29 $9.85 to $9.93
</TABLE>
WACHOVIA INTERMEDIATE FIXED INCOME FUND pursues current income consistent with
preservation of capital from a diversified portfolio of intermediate-term
income-producing securities. At the end of the period, the fund's $94.2 million
portfolio was invested across U.S. Treasury securities (51.1%), government
agency securities (5.2%), corporate bonds (35.7%), and a repurchase agreement
(7.0%). <TABLE> <CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares 3.91% $0.26 $10.03 to $10.11
Class Y Shares (period from
March 29, 1998 through May 31,
1998) 1.70% $0.14 $10.04 to $10.12
</TABLE>
*** Small-cap stocks have historically experienced greater volatility than
average.
+ Foreign investing involves special risks including currency risk, increased
volatility of foreign securities, and differences in auditing and other
financial standards. Emerging markets economic structures may be less
diverse and mature, and their political systems may be less stable than
those of established markets.
WACHOVIA SHORT-TERM FIXED INCOME FUND pursues a high level of income from a
diversified portfolio that, at the end of the period, consisted primarily of
corporate bonds (52.1%), U.S. Treasury obligations (33.1%), a repurchase
agreement (12.4%), and U.S. government agency obligations (8.8%). These
short-term, income-producing securities are managed to provide an income stream
and cushion shareholders against volatility during periods of interest rate
increases. Total assets stood at $101.4 million on the last day of the period.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares 3.01% $0.28 $9.77 to $9.78
Class Y Shares 3.14% $0.29 $9.77 to $9.78
</TABLE>
The Wachovia Municipal Funds
WACHOVIA GEORGIA MUNICIPAL BOND FUND pursues monthly income exempt from federal
regular income tax and Georgia state income tax.++ The fund invests in a
portfolio of bonds issued by municipalities across Georgia that are rated A or
higher by nationally recognized rating agencies. Total assets reached $20.8
million on the last day of the period.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares 3.01% $0.21 $11.11 to $11.23
Class Y Shares 3.13% $0.22 $11.11 to $11.23
</TABLE>
WACHOVIA NORTH CAROLINA MUNICIPAL BOND FUND pursues monthly income exempt from
federal regular income tax and North Carolina state income tax.++ At the end of
the period, the fund's $61.3 million portfolio was invested in 90 bonds issued
by municipalities across North Carolina. All holdings are rated A or higher at
the time of purchase by nationally recognized rating agencies.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME CAPITAL GAINS
BASED ON NAV DISTRIBUTIONS DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Class A Shares 3.14% $0.21 $0.01 $11.15 to $11.28
Class Y Shares 3.27% $0.23 $0.01 $11.15 to $11.28
</TABLE>
WACHOVIA SOUTH CAROLINA MUNICIPAL BOND FUND pursues monthly income exempt from
federal regular income tax and South Carolina state income tax.++ The fund
invests in a portfolio of bonds issued by South Carolina municipalities that are
rated A or higher at the time of purchase by nationally recognized rating
agencies. Total assets reached $114.7 million at the period's end.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares 3.51% $0.26 $11.12 to $11.25
Class Y Shares 3.64% $0.27 $11.12 to $11.25
</TABLE>
WACHOVIA VIRGINIA MUNICIPAL BOND FUND pursues monthly income exempt from federal
regular income tax and Virginia state income tax.++ The fund invests in a
portfolio of bonds issued by Virginia municipalities that are rated A or higher
at the time of purchase by nationally recognized rating agencies. Total assets
reached $107.8 million at the period's end.
<TABLE>
<CAPTION>
TOTAL RETURN INCOME
BASED ON NAV DISTRIBUTIONS SHARE PRICE CHANGE
------------ ------------- ------------------
<S> <C> <C> <C>
Class A Shares 3.38% $0.19 $10.30 to $10.38
Class Y Shares (period from
March 29, 1998 through May 31,
1998) 1.17% $0.08 $10.34 to $10.38
</TABLE>
++ Income may be subject to the federal alternative minimum tax.
Thank you for pursuing your financial goals through one or more of The Wachovia
Funds and The Wachovia Municipal Funds. We look forward to keeping you
up-to-date on your investment progress. Sincerely, LOGO John W. McGonigle
President July 15, 1998
Total returns for the period adjusted for the sales charge are as follows:
Wachovia Equity Fund, Class A Shares, 5.77%; Class B Shares, 4.98% Wachovia
Quantitative Equity Fund, Class A Shares, 7.48%; Class B Shares, 6.61% Wachovia
Growth and Income Fund, Class A Shares, 6.84% Wachovia Equity Index Fund, Class
A Shares, 9.52% Wachovia Special Values Fund, Class A Shares, 3.02% Wachovia
Emerging Markets Fund, Class A Shares, (7.88%) Wachovia Balanced Fund, Class A
Shares, 3.11%; Class B Shares, 2.22% Wachovia Fixed Income Fund, Class A Shares,
(0.96%); Class B Shares, (1.71%) Wachovia Intermediate Fixed Income Fund, Class
A Shares, (0.74%) Wachovia Short-Term Fixed Income Fund, Class A Shares, 0.44%
Wachovia Georgia Municipal Bond Fund, Class A Shares, (1.60%) Wachovia North
Carolina Municipal Bond Fund, Class A Shares, (1.54%) Wachovia South Carolina
Municipal Bond Fund, Class A Shares, (1.12%) Wachovia Virginia Municipal Bond
Fund, Class A Shares, (1.22%)
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Wachovia Equity Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- --------------------------------------------------------------
<C> <S> <C>
Common Stocks--80.8%
BASIC MATERIALS--0.7%
37,124 International Paper Co. $ 1,707,704
------------
CAPITAL GOODS--4.0%
72,815 General Electric Co. 6,070,951
32,999 Honeywell, Inc. 2,769,854
21,664 Ingersoll-Rand Co. 976,234
------------
Total 9,817,039
------------
CHEMICAL & ALLIED PRODUCTS--0.8%
24,996 Du Pont (E.I.) de Nemours & Co. 1,924,692
------------
CONSUMER CYCLICAL--1.6%
36,019 Black & Decker Corp. 2,102,609
26,778 Magna International, Inc., Class A 1,887,849
------------
Total 3,990,458
------------
CONSUMER DURABLES--0.8%
27,202 General Motors Corp. 1,956,844
------------
CONSUMER NON-DURABLES--24.1%
21,214 (b)Alza Corp. 1,026,227
23,269 Avon Products, Inc. 1,903,695
12,535 (b)Boston Scientific Corp. 799,106
35,416 Bristol-Myers Squibb Co. 3,807,220
78,785 Coca-Cola Co. 6,174,774
1,726 Colgate-Palmolive Co. 150,162
26,389 Disney (Walt) Co. 2,985,256
21,691 Fortune Brands, Inc. 838,541
17,350 Gillette Co. 2,032,119
16,326 Guidant Corp. 1,052,007
24,244 Johnson & Johnson 1,674,351
40,036 Kimberly-Clark Corp. 1,984,284
32,172 Lilly (Eli) & Co. 1,976,567
23,904 McDonalds Corp. 1,568,700
25,942 Merck & Co., Inc. 3,036,835
18,190 Monsanto Co. 1,007,271
21,722 Newell Co. 1,048,087
104,542 PepsiCo, Inc. 4,266,620
56,718 Pfizer, Inc. 5,944,755
70,408 Philip Morris Cos., Inc. 2,631,499
42,986 Procter & Gamble Co. 3,608,137
46,703 Schering Plough Corp. 3,908,457
30,332 (b)Tenet Healthcare Corp. 1,061,620
65,868 Warner-Lambert Co. 4,203,202
------------
Total 58,689,492
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
ENERGY--6.6%
36,059 Baker Hughes, Inc. $ 1,298,124
28,790 British Petroleum Co. PLC, ADR 2,551,514
36,977 Exxon Corp. 2,606,879
50,729 Mobil Corp. 3,956,862
47,502 Royal Dutch Petroleum Co., ADR 2,663,081
33,150 Schlumberger Ltd. 2,587,772
------------
Total 15,664,232
------------
FINANCE--13.2%
9,424 Allstate Corp. 887,034
29,547 American Express Co. 3,037,336
24,108 American International Group, Inc. 2,955,700
1 Associates First Capital Corp., Class A 48
63,898 Banc One Corp. 3,522,377
19,079 Chase Manhattan Corp. 2,577,339
11,883 Chubb Corp. 945,441
6,707 Citicorp 607,415
19,849 Countrywide Credit Industries, Inc. 918,016
66,471 Federal Home Loan Mortgage Corp. 3,020,693
31,432 Federal National Mortgage Association 1,881,991
40,788 MBIA Insurance Corporation 3,041,689
27,029 MBNA Corp. 856,481
11,282 Merrill Lynch & Co., Inc. 1,077,338
45,150 NationsBank Corp. 3,425,869
20,300 SunTrust Bank, Inc. 1,604,315
29,977 Travelers Group, Inc. 1,828,597
------------
Total 32,187,679
------------
HEALTHCARE--0.4%
17,750 (b)Elan Corp. Plc, ADR 1,086,078
------------
PRODUCER MANUFACTURING--1.2%
28,602 Xerox Corp. 2,938,856
------------
RETAIL TRADE--1.7%
33,167 Sears, Roebuck & Co. 2,050,135
37,681 Wal-Mart Stores, Inc. 2,079,520
------------
Total 4,129,655
------------
SERVICES--5.6%
20,495 (b)Airtouch Communications, Inc. 976,074
</TABLE>
(See Notes to Portfolios of Investments)
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Wachovia Equity Fund
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
SERVICES--CONTINUED
42,263 American Greetings Corp.,
Class A $ 2,007,493
13,302 (b)FMC Corp. 1,016,772
61,640 Praxair, Inc. 3,039,623
25,623 Time Warner, Inc. 1,993,790
17,527 (b)Viacom, Inc., Class B 963,985
82,261 (b)WorldCom, Inc. 3,742,876
------------
Total 13,740,613
------------
TECHNOLOGY SERVICES--14.4%
44,624 (b)3Com Corp. 1,132,334
29,832 (b)Ascend Communications 1,288,370
45,635 (b)Cisco Systems, Inc. 3,451,147
36,659 Compaq Computer Corp. 1,001,249
43,176 Computer Associates International, Inc. 2,266,793
29,512 Cooper Industries, Inc. 1,899,835
20,524 Intel Corp. 1,466,183
21,459 International Business Machines Corp. 2,518,750
48,675 Lucent Technologies, Inc. 3,452,883
78,058 (b)Microsoft Corp. 6,620,294
25,085 (b)Network Associates, Inc. 1,536,456
25,928 OY Nokia AB, Class A, ADR 1,683,700
21,325 Pitney Bowes, Inc. 1,002,275
40,777 (b)Sun Microsystems, Inc. 1,633,629
27,937 Texas Instruments, Inc. 1,435,263
29,642 United Technologies Corp. 2,786,348
------------
Total 35,175,509
------------
TRANSPORTATION--3.4%
20,208 (b)AMR Corp. 3,110,765
51,411 Allied-Signal, Inc. 2,197,820
29,274 Burlington Northern Santa Fe 2,912,763
------------
Total 8,221,348
------------
UTILITIES--2.3%
22,458 BellSouth Corp. 1,448,541
71,801 Edison International 2,118,130
79,103 Southern Co. 2,101,173
------------
Total 5,667,844
------------
Total Common Stocks (identified cost $165,777,732) 196,898,043
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies--11.9%
FEDERAL HOME LOAN BANK--DISCOUNT NOTE--0.6%
$ 1,500,000 Federal Home Loan Bank, 9/10/1998 $ 1,477,485
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--DISCOUNT
NOTE--1.6%
4,000,000 Federal Home Loan Mortgage Corp., 6/18/1998 3,989,680
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--9.7%
12,750,000 Federal National Mortgage Association, 6/12/1998 12,728,708
3,725,000 Federal National Mortgage Association, 6/15/1998 3,717,103
7,250,000 Federal National Mortgage Association, 6/17/1998 7,232,455
------------
Total 23,678,266
------------
Total U.S. Government Agencies (identified cost
$29,146,100) 29,145,431
------------
U.S. Treasury Obligations--0.9%
U.S. TREASURY BILLS--0.9%
2,150,000 6/18/1998 (identified cost $2,144,990) 2,145,378
------------
(a) Repurchase Agreement--5.9%
14,421,507 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998,
due 6/1/1998 (at amortized cost) 14,421,507
------------
Total Investments (identified cost $211,490,329) $242,610,359
------------
</TABLE>
(See Notes to Portfolios of Investments)
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- --------------------------------------------------------------------------------
Wachovia Quantitative Equity Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- ----------------------------------------------------------
<C> <S> <C>
Common Stocks--87.9%
CAPITAL GOODS--5.8%
10,000 Ball Corp. $ 394,375
10,000 General Dynamics Corp. 444,375
63,000 General Electric Co. 5,252,625
20,000 Harsco Corp. 872,500
15,000 Illinois Tool Works, Inc. 990,000
82,500 Ingersoll-Rand Co. 3,717,656
12,000 Pfizer, Inc. 1,257,750
100,000 Timken Co. 3,762,500
------------
Total 16,691,781
------------
CONSUMER CYCLICAL--0.1%
5,000 Magna International, Inc., Class A 352,500
------------
CONSUMER DURABLES--3.2%
60,000 Arvin Industries, Inc. 2,223,750
30,000 Chrysler Corp. 1,668,750
30,000 Deere & Co. 1,556,250
15,000 General Motors Corp. 1,079,063
10,000 Liz Claiborne, Inc. 506,875
10,000 Maytag Corp. 504,375
30,000 PACCAR, Inc. 1,656,563
------------
Total 9,195,626
------------
CONSUMER NON-DURABLES--22.7%
40,000 American Stores Co. 997,500
30,000 Anheuser-Busch Cos., Inc. 1,378,125
72,000 Bergen Brunswig Corp., Class A 2,988,000
35,000 Bristol-Myers Squibb Co. 3,762,500
40,000 Coca Cola Enterprises, Inc. 1,502,500
25,000 (b)Costco Cos., Inc. 1,446,875
136,000 Dayton-Hudson Corp. 6,306,997
50,000 Dean Foods Co. 2,462,500
40,000 Fort James Corp. 1,912,500
26,000 Guidant Corp. 1,675,375
20,000 Heinz (H.J.) Co. 1,061,250
30,000 Johnson & Johnson 2,071,875
60,000 (b)King World Productions, Inc. 1,530,000
70,000 McKesson Corp. 5,468,750
19,000 Merck & Co., Inc. 2,224,188
27,000 Newell Co. 1,302,750
30,000 (b)Office Depot, Inc. 885,000
100,000 PepsiCo, Inc. 4,081,250
60,000 Philip Morris Cos., Inc. 2,242,500
35,000 Premark International, Inc. 1,122,185
40,000 Procter & Gamble Co. 3,357,500
30,000 Quaker Oats Co. 1,730,625
70,000 (b)Safeway, Inc. 2,550,625
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- ---------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CONSUMER NON-DURABLES--CONTINUED
60,000 Schering Plough Corp. $ 5,021,250
30,000 Times Mirror Co., Class A 1,920,000
35,000 TJX Cos., Inc. 1,636,250
80,000 (b)Tenet Healthcare Corp. 2,800,000
------------
Total 65,438,870
------------
CONSUMER SERVICES--1.5%
60,000 Darden Restaurants, Inc. 926,250
35,000 Tribune Co. 2,340,625
30,000 (b)Tricon Global Restaurants, Inc. 931,875
------------
Total 4,198,750
------------
ELECTRONIC TECHNOLOGY--2.7%
85,000 Harris Corp. 4,095,938
45,000 (b)Storage Technology Corp. 3,774,375
------------
Total 7,870,313
------------
ENERGY--6.1%
28,000 British Petroleum Co. PLC, ADR 2,481,500
43,000 Exxon Corp. 3,031,500
5,000 Kerr-McGee Corp. 316,250
48,000 Mobil Corp. 3,744,000
25,000 Phillips Petroleum Co. 1,251,563
40,000 Royal Dutch Petroleum Co., ADR 2,242,500
30,000 (b)Western Atlas, Inc. 2,596,875
60,000 Williams Cos., Inc. (The) 1,946,250
------------
Total 17,610,438
------------
FINANCE--16.3%
86,000 AMBAC 4,703,125
24,000 Aegon N.V. 1,903,500
10,000 Allstate Corp. 941,250
50,000 American General Corp. 3,356,250
60,000 Amsouth Bancorporation 2,306,250
31,000 BankAmerica Corp. 2,563,313
61,500 CIGNA Corp. 4,212,750
26,000 Chase Manhattan Corp. 3,534,375
29,000 First Union Corp. 1,604,063
20,000 Lehman Brothers Holdings, Inc. 1,418,750
55,000 Marsh & McLennan Cos., Inc. 4,815,938
30,000 NationsBank Corp. 2,272,500
65,000 PNC Bank Corp. 3,753,750
10,500 PaineWebber Group, Inc. 450,844
50,000 Reliastar Financial Corp. 2,162,500
76,500 SouthTrust Corp. 3,103,031
60,000 Travelers Group, Inc. 3,660,000
------------
Total 46,762,189
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Quantitative Equity Fund
<TABLE>
<CAPTION>
Shares Value
- ---------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
HEALTHCARE--0.7%
60,000 (b)Rexall Sundown, Inc. $ 2,010,000
------------
NON-ENERGY MINERALS--1.8%
45,000 Vulcan Materials Co. 5,107,500
------------
PRODUCER MANUFACTURING--1.2%
7,000 Whirlpool Corp. 478,188
30,000 Xerox Corp. 3,082,500
------------
Total 3,560,688
------------
RETAIL--0.6%
20,000 (b)Best Buy Co., Inc. 652,500
15,000 May Department Stores Co. 964,688
------------
Total 1,617,188
------------
SERVICES--3.6%
50,000 American Greetings Corp., Class A 2,375,000
110,000 Ecolab, Inc. 3,396,250
95,000 Ennis Business Forms, Inc. 1,045,000
30,000 (b)FMC Corp. 2,293,125
30,000 Olin Corp. 1,297,500
------------
Total 10,406,875
------------
TECHNOLOGY SERVICES--8.6%
15,000 (b)Andrew Corp. 329,531
80,000 (b)Cendant Corp. 1,735,000
115,000 Comdisco, Inc. 4,183,125
171,000 Compaq Computer Corp. 4,670,438
55,000 Computer Associates
International, Inc. 2,887,500
23,000 International Business
Machines Corp. 2,699,625
12,000 (b)Lexmark Intl. Group, Class A 666,000
30,000 Lockheed Martin Corp. 3,367,500
10,000 (b)Sun Microsystems, Inc. 400,625
14,000 Textron, Inc. 1,038,625
50,000 Thomas & Betts Corp. 2,671,875
------------
Total 24,649,844
------------
TRANSPORTATION--1.9%
44,000 GATX Corp. 3,613,500
40,000 Trinity Industries, Inc. 1,910,000
------------
Total 5,523,500
------------
UTILITIES--11.1%
25,000 Alltel Corp. 985,938
92,000 Ameritech Corp. 3,904,250
20,000 Bell Atlantic Corp. 1,832,500
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
UTILITIES--CONTINUED
73,000 BellSouth Corp. $ 4,708,500
90,000 Coastal Corp. 6,345,000
60,000 DQE, Inc. 1,972,500
60,000 GPU, Inc. 2,310,000
40,000 New England Electric System 1,670,000
17,000 Pinnacle West Capital Corp. 763,938
72,000 SBC Communications, Inc. 2,799,000
12,000 SCANA Corp. 345,750
30,000 Sprint Corp. 2,152,500
40,000 U.S. West, Inc. 2,030,000
------------
Total 31,819,876
------------
Total Common Stocks (identified cost $155,330,059) 252,815,938
------------
U.S. Government Agencies--9.6%
$2,000,000 Federal Home Loan Mortgage Corp., 6/12/1998 1,996,660
3,000,000 Federal Home Loan Mortgage Corp., 6/18/1998 2,992,260
2,000,000 Federal National Mortgage Association, 6/12/1998 1,996,660
4,000,000 Federal National Mortgage Association, 6/15/1998 3,991,520
11,750,000 Federal National Mortgage Association, 6/17/1998 11,721,565
1,500,000 Federal National Mortgage Association, 6/19/1998 1,495,890
3,500,000 Federal National Mortgage Association, 9/14/1998 3,444,560
------------
Total U.S. Government Agencies (identified cost
$27,640,437) 27,639,115
------------
U.S. Treasury Obligation--0.6%
1,700,000 United States Treasury Bill, 6/18/1998 (identified
cost $1,695,985) 1,696,345
------------
(a) Repurchase Agreement--1.8%
5,312,890 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998, due
6/1/1998 (at amortized cost) 5,312,890
------------
Total Investments (identified cost $189,979,371) $287,464,288
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Growth & Income Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- ----------------------------------------------------------
<C> <S> <C>
Common Stocks--97.9%
BASIC MATERIALS--3.9%
34,000 Dow Chemical Co. $ 3,293,750
80,000 International Paper Co. 3,680,000
80,000 PPG Industries, Inc. 5,830,000
------------
Total 12,803,750
------------
CAPITAL GOODS--4.8%
65,000 Briggs & Stratton Corp. 2,949,375
116,800 Caterpillar, Inc. 6,416,700
75,000 General Electric Co. 6,253,125
------------
Total 15,619,200
------------
CHEMICAL & ALLIED PRODUCTS--2.5%
105,000 Du Pont (E.I.) de Nemours & Co. 8,085,000
------------
CONGLOMERATES--1.5%
89,600 Raytheon Co., Class B 4,900,000
------------
CONSUMER CYCLICAL--6.0%
180,000 Callaway Golf Co. 3,712,500
75,000 Goodyear Tire & Rubber Co. 5,390,625
140,000 Sturm Ruger & Co., Inc. 2,607,500
120,000 (b)Tommy Hilfiger Corp. 8,070,000
------------
Total 19,780,625
------------
CONSUMER DURABLES--2.3%
105,000 General Motors Corp. 7,553,438
------------
CONSUMER NON-DURABLES--19.8%
135,000 Anheuser-Busch Cos., Inc. 6,201,563
115,000 Campbell Soup Co. 6,267,500
89,000 Colgate-Palmolive Co. 7,743,000
100,000 Heinz (H.J.) Co. 5,306,250
75,000 Johnson & Johnson 5,179,688
140,000 PepsiCo, Inc. 5,713,750
57,000 Merck & Co., Inc. 6,672,562
151,750 Philip Morris Cos., Inc. 5,671,656
70,000 Procter & Gamble Co. 5,875,625
125,000 Schering Plough Corp. 10,460,938
------------
Total 65,092,532
------------
ENERGY--8.5%
90,000 Amoco Corp. 3,763,125
75,000 Chevron Corp. 5,990,625
115,000 Exxon Corp. 8,107,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- ---------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
ENERGY--CONTINUED
67,000 Mobil Corp. $ 5,226,000
81,200 Texaco, Inc. 4,689,300
------------
Total 27,776,550
------------
FINANCE--18.8%
62,000 Bank of New York Co., Inc. 3,789,750
184,000 Federal Home Loan Mortgage Corp. 8,372,000
155,000 Franklin Resources, Inc. 7,575,625
135,000 Green Tree Financial Corp. 5,425,313
50,000 Mellon Bank Corp. 3,371,875
30,000 Merrill Lynch & Co., Inc. 2,685,000
135,300 Morgan Stanley, Dean Witter & Co. 10,561,856
100,000 Norwest Corp. 3,887,500
87,500 PaineWebber Group, Inc. 3,757,031
30,000 Progressive Corp., OH 4,136,250
134,996 Travelers Group, Inc. 8,234,756
------------
Total 61,796,956
------------
HEALTH SERVICES--2.1%
94,000 Abbott Laboratories 6,973,625
------------
PRODUCER MANUFACTURING--1.3%
43,000 Xerox Corp. 4,418,250
------------
RETAIL--1.4%
75,000 Sears, Roebuck & Co. 4,635,938
------------
SERVICES--2.0%
180,000 Equifax, Inc. 6,547,500
------------
TECHNOLOGY SERVICES--12.3%
70,000 AT&T Corp. 4,261,250
240,000 Compaq Computer Corp. 6,555,000
115,000 (b)Gateway 2000, Inc. 5,182,187
125,000 Intel Corp. 8,929,687
65,000 Lockheed Martin Corp. 7,296,250
70,000 (b)Novellus Systems, Inc. 2,646,874
135,000 (b)Sun Microsystems, Inc. 5,408,437
------------
Total 40,279,685
------------
TRANSPORTATION--2.7%
100,000 ASA Holdings Ltd. 3,931,250
114,000 Allied-Signal, Inc. 4,873,500
------------
Total 8,804,750
------------
</TABLE>
(See Notes to Portfolios of Investments)
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Growth & Income Fund
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
UTILITIES--8.0%
75,000 Alltel Corp. $ 2,957,813
66,000 Ameritech Corp. 2,800,875
30,000 Bell Atlantic Corp. 2,748,750
40,000 BellSouth Corp. 2,580,000
55,000 Duke Energy Corp. 3,169,375
50,000 FPL Group, Inc. 3,071,875
70,000 GPU, Inc. 2,695,000
80,000 SBC Communications, Inc. 3,110,000
64,000 U.S. West, Inc. 3,248,000
------------
Total 26,381,688
------------
Total Common Stocks (identified cost $170,848,360) 321,449,487
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
U.S. Treasury Obligation--0.1%
$ 400,000 United States Treasury Bill, 6/18/1998 (identified
cost $399,070) $ 399,140
------------
(a) Repurchase Agreement--0.9%
2,988,537 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998, due
6/1/1998 (at amortized cost) 2,988,537
------------
Total Investments (identified cost $174,235,967) $324,837,164
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--90.1%
BASIC MATERIALS--2.7%
1,607 ASARCO, Inc. $ 36,459
4,182 Air Products & Chemicals, Inc. 363,834
8,662 Alcan Aluminum, Ltd. 246,867
6,713 Allegheny Teledyne, Inc. 156,077
6,637 Aluminum Co. of America 460,442
21,372 Archer-Daniels-Midland Co. 403,397
4,085 (b)Armco, Inc. 22,212
14,224 Barrick Gold Corp. 273,812
8,766 Battle Mountain Gold Co. 46,569
2,023 Bemis Co., Inc. 85,345
4,297 (b)Bethlehem Steel Corp. 52,638
2,122 Boise Cascade Corp. 70,822
3,660 Champion International Corp. 175,680
3,567 Cyprus Amax Minerals 56,626
8,699 Dow Chemical Co. 842,716
2,991 Eastman Chemical Co. 200,397
4,944 Ecolab, Inc. 152,646
5,507 Engelhard Corp. 114,614
7,588 Freeport-McMoRan Copper & Gold, Inc., Class B 127,099
3,491 Georgia-Pacific Corp. 224,079
2,063 Goodrich (B.F.) Co. 105,729
2,771 (b)Grace (W.R.) & Co. 51,437
2,284 Great Lakes Chemical Corp. 91,360
3,780 Hercules, Inc. 166,556
5,599 Homestake Mining Co. 60,889
6,372 Inco Ltd. 91,598
1,862 Inland Steel Industries, Inc. 53,300
4,170 International Flavors & Fragrances, Inc. 200,160
11,540 International Paper Co. 530,840
4,171 Louisiana-Pacific Corp. 83,159
3,992 Mead Corp. 124,251
5,344 Morton International, Inc. 162,658
2,550 Nalco Chemical Co. 95,625
5,964 Newmont Mining Corp. 148,727
3,353 Nucor Corporation 172,680
6,842 PPG Industries, Inc. 498,611
2,305 Phelps Dodge Corp. 140,605
7,614 Pioneer Hi-Bred International 289,808
9,139 Placer Dome, Inc. 113,666
1,103 Potlatch Corp. 48,325
2,813 Reynolds Metals Co. 163,154
2,351 Rohm & Haas Co. 258,316
2,985 (b)Sealed Air Corp. 159,711
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
BASIC MATERIALS--CONTINUED
3,826 Sigma-Aldrich Corp. $ 139,649
3,790 Stone Container Corp. 67,273
2,173 Temple-Inland, Inc. 127,664
10,992 USX Corp. 384,720
3,271 USX-U.S. Steel Group, Inc. 117,347
2,646 Union Camp Corp. 144,703
4,740 Union Carbide Corp. 236,704
3,891 Westvaco Corp. 110,894
7,609 Weyerhaeuser Co. 386,632
4,238 Willamette Industries, Inc. 145,416
3,690 Worthington Industries, Inc. 65,036
-------------
Total 9,849,534
-------------
CAPITAL GOODS--6.9%
8,381 AMP, Inc. 318,478
1,073 Aeroquip-Vickers, Inc. 66,258
3,935 Avery Dennison Corp. 203,882
1,151 Ball Corp. 45,393
38,208 Boeing Co. 1,819,637
967 Briggs & Stratton Corp. 43,878
8,121 Browning-Ferris Industries, Inc. 288,803
2,844 Case Corp. 164,597
14,364 Caterpillar, Inc. 789,122
1,520 Cincinnati Milacron, Inc. 45,505
8,805 Corning, Inc. 347,247
1,752 Crane Co. 92,309
4,897 Crown Cork & Seal Co., Inc. 254,032
1,460 Cummins Engine Co., Inc. 75,920
8,486 Dover Corp. 318,225
2,950 Eaton Corp. 264,947
16,922 Emerson Electric Co. 1,028,012
3,202 Fluor Corp. 152,695
1,551 Foster Wheeler Corp. 39,357
4,768 General Dynamics Corp. 211,878
124,940 General Electric Co. 10,416,873
1,921 General Signal Corp. 79,001
1,897 Grainger (W.W.), Inc. 200,252
1,885 Harnischfeger Industries, Inc. 59,378
4,866 Honeywell, Inc. 408,440
9,517 Illinois Tool Works, Inc. 628,122
6,332 Ingersoll-Rand Co. 285,336
3,197 Johnson Controls, Inc. 190,222
12,542 Laidlaw, Inc. 155,207
2,119 McDermott International, Inc. 80,919
1,662 Millipore Corp. 55,469
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CAPITAL GOODS--CONTINUED
15,854 Minnesota Mining & Manufacturing Co. $ 1,468,477
3,386 Moore Corp. Ltd. 49,097
311 NACCO Industries, Inc., Class A 45,562
1,720 National Service Industries, Inc. 87,720
2,786 (b)Navistar International Corp. 84,102
5,355 (b)Owens-Illinois, Inc. 240,640
4,855 Pall Corp. 96,190
4,262 Parker-Hannifin Corp. 175,008
11,012 Pitney Bowes, Inc. 517,564
3,330 Raychem Corp. 125,291
12,919 Raytheon Co., Class B 706,508
7,968 Rockwell International Corp. 438,240
6,496 Tenneco, Inc. 270,396
5,733 (b)Thermo Electron Corp. 201,372
2,402 Timken Co. 90,375
21,754 Tyco International, Ltd. 1,204,628
------------
Total 24,930,564
------------
CHEMICAL AND ALLIED PRODUCTS--0.9%
43,153 Du Pont (E.I.) de Nemours & Co. 3,322,753
------------
COMMUNICATION--0.2%
26,821 CBS Corp. 851,567
------------
CONSUMER CYCLICAL--4.2%
5,762 (b)AutoZone, Inc. 191,587
3,603 Black & Decker Corp. 210,325
3,790 Brunswick Corp. 119,148
2,214 Centex Corp. 79,151
3,757 Circuit City Stores, Inc. 159,203
4,701 (b)Clear Channel Communications, Inc. 450,708
6,265 Cognizant Corp. 333,611
4,070 (b)Consolidated Stores Corp. 155,423
3,004 Cooper Tire & Rubber Co. 71,157
3,983 Dana Corp. 207,614
4,263 Dillards, Inc., Class A 179,312
3,662 Dow Jones & Co. 176,234
2,406 Echlin, Inc. 114,285
7,980 (b)Federated Department Stores, Inc. 413,464
1,372 Fleetwood Enterprises, Inc. 54,880
2,796 (b)Fruit of the Loom, Inc., Class A 100,481
10,816 Gannett Co., Inc. 713,180
15,346 Gap (The), Inc. 828,684
6,872 Genuine Parts Co. 233,219
5,952 Goodyear Tire & Rubber Co. 427,800
2,700 Harcourt General, Inc. 147,150
3,852 (b)Harrah's Entertainment, Inc. 96,300
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CONSUMER CYCLICAL--CONTINUED
4,845 Hasbro, Inc. $ 185,321
9,542 Hilton Hotels Corp. 299,977
27,858 Home Depot, Inc. 2,188,594
4,520 ITT Industries, Inc. 166,675
4,753 Interpublic Group Cos., Inc. 281,912
1,495 Jostens, Inc. 37,749
18,579 (b)K Mart Corp. 359,968
1,483 Kaufman & Broad Homes Corp. 38,095
3,336 Knight-Ridder, Inc. 190,361
10,362 Limited, Inc. 344,537
4,388 Loews Corp. 398,211
14,465 Marriott International, Inc., Class A 502,659
6,295 Masco Corp. 354,094
11,084 Mattel, Inc. 419,807
3,774 McGraw-Hill Cos., Inc. 295,080
1,402 Mercantile Stores Co., Inc. 110,232
2,042 Meredith Corp. 81,170
6,823 (b)Mirage Resorts, Inc. 142,004
11,018 Nike, Inc., Class B 506,828
2,947 Nordstrom, Inc. 212,368
6,170 Omnicom Group, Inc. 288,833
2,035 Owens Corning 76,313
9,498 Penney (J.C.) Co., Inc. 682,075
2,412 Pep Boys-Manny Moe & Jack 53,667
807 Pulte Corp. 43,023
2,147 (b)Reebok International Ltd. 61,726
1,392 Russell Corp. 37,932
9,600 Service Corp. International 392,400
6,588 Sherwin-Williams Co. 219,051
1,213 Sodexho Marriott Services, Inc. 34,495
3,396 Stanley Works 161,310
4,703 TRW, Inc. 251,904
10,886 (b)Toys 'R' Us, Inc. 288,479
------------
Total 15,169,766
------------
CONSUMER DURABLES--1.5%
1,555 Armstrong World Industries, Inc. 130,814
12,433 Eastman Kodak Co. 887,405
45,577 Ford Motor Co. 2,364,307
27,000 General Motors Corp. 1,942,313
1,739 Polaroid Corp. 70,538
2,334 Snap-On Tools Corp. 102,404
------------
Total 5,497,781
------------
CONSUMER NON-DURABLES--14.3%
406 (b)Agribrands International, Inc. 13,906
3,244 (b)Alza Corp. 156,929
18,767 Anheuser-Busch Cos., Inc. 862,109
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
<TABLE>
<CAPTION>
Shares Value
- ---------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CONSUMER NON-DURABLES--CONTINUED
10,958 BestFoods $ 618,442
3,972 Block (H&R), Inc. 174,768
7,409 (b)Boston Scientific Corp. 472,324
38,036 Bristol-Myers Squibb Co. 4,088,870
25,738 Chrysler Corp. 1,431,676
94,649 Coca-Cola Co. 7,418,115
11,294 Colgate-Palmolive Co. 982,578
8,110 (b)Costco Cos., Inc. 469,366
16,612 Dayton-Hudson Corp. 770,382
9,621 Deere & Co. 499,089
25,763 Disney (Walt) Co. 2,914,439
6,505 Dun & Bradstreet Corp. 219,544
7,210 Fort James Corp. 344,728
6,538 Fortune Brands, Inc. 251,304
5,655 Guidant Corp. 364,394
14,092 Heinz (H.J.) Co. 747,757
50,782 Johnson & Johnson 3,507,132
21,243 Kimberly-Clark Corp. 1,052,856
2,806 (b)King World Productions, Inc. 71,553
42,452 Lilly (Eli) & Co. 2,608,145
2,669 Liz Claiborne, Inc. 135,285
6,635 Lowe's Cos., Inc. 525,409
3,762 Maytag Corp. 189,746
26,255 McDonald's Corp. 1,722,984
46,092 Merck & Co., Inc. 5,395,645
22,495 Monsanto Co. 1,245,661
3,659 New York Times Co., Class A 257,960
2,970 PACCAR, Inc. 164,000
58,405 PepsiCo, Inc. 2,383,654
92,460 Philip Morris Cos., Inc. 3,455,693
5,242 Quaker Oats Co. 302,398
27,958 Schering Plough Corp. 2,339,735
769 Springs Industries, Inc., Class A 43,160
11,556 (b)Tenet Healthcare Corp. 404,460
3,655 Times Mirror Co., Class A 233,920
6,230 TJX Cos., Inc. 291,253
2,799 U.S. Surgical Corp. 111,260
4,794 V.F. Corp. 254,981
1,755 (b)Vlasic Foods International, Inc. 38,062
31,065 Warner-Lambert Co. 1,982,335
5,026 Wendy's International, Inc. 124,079
5,681 Winn-Dixie Stores, Inc. 231,146
5,148 (b)Woolworth (F.W.) Co. 101,673
------------
Total 51,974,905
------------
CONSUMER SERVICES--0.1%
4,684 Tribune Co. 313,243
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CONSUMER STAPLES--5.8%
2,141 Alberto-Culver Co., Class B $ 63,695
9,378 Albertsons, Inc. 434,319
10,391 American Stores Co. 259,126
5,052 Avon Products, Inc. 413,317
2,633 Brown-Forman Corp., Class B 151,727
6,563 CVS Corp. 460,641
17,552 Campbell Soup Co. 956,584
4,142 Cardinal Health, Inc. 369,156
3,944 Clorox Co. 329,324
13,312 Comcast Corp., Class A 456,352
18,046 ConAgra, Inc. 527,846
1,414 Coors Adolph Co., Class B 53,025
5,838 Darden Restaurants, Inc. 90,124
3,145 Deluxe Corp. 105,554
5,583 Donnelley (R.R.) & Sons Co. 251,235
6,102 General Mills, Inc. 416,462
2,290 Giant Foods, Inc., Class A 98,470
21,361 Gillette Co. 2,501,907
1,460 Great Atlantic & Pacific Tea Co., Inc. 46,720
5,452 Hershey Foods Corp. 377,551
15,748 Kellogg Co. 650,589
9,707 (b)Kroger Co., Inc. 416,794
1,496 Longs Drug Stores Corp. 45,348
6,071 Newell Co. 292,926
51,548 Procter & Gamble Co. 4,326,810
4,066 Ralston Purina Co. 452,597
9,384 Rite Aid Corp. 336,065
5,721 Rubbermaid, Inc. 186,648
18,329 Sara Lee Corp. 1,079,120
14,148 Seagram Co. Ltd. 621,628
2,312 Super Valu Stores, Inc. 96,815
13,310 Sysco Corp. 310,289
19,323 (b)Tele-Communications, Inc., Class A 663,020
5,840 (b)Tricon Global Restaurants, Inc. 181,405
2,337 Tupperware Corp. 63,099
7,015 UST, Inc. 186,774
24,428 Unilever N.V., ADR 1,928,285
18,785 Walgreen Co. 660,997
4,435 Wrigley (Wm.), Jr. Co. 426,869
------------
Total 21,289,213
------------
ELECTRONIC TECHNOLOGY--7.0%
5,378 (b)Advanced Micro Devices, Inc. 104,871
3,442 (b)Andrew Corp. 75,616
4,859 (b)Apple Computer, Inc. 129,371
13,912 (b)Applied Materials, Inc. 445,184
7,588 (b)Bay Networks, Inc. 210,093
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
ELECTRONIC TECHNOLOGY--CONTINUED
6,017 (b)Cabletron Systems, Inc. $ 77,469
3,080 (b)Ceridian Corp. 166,320
38,298 (b)Cisco Systems, Inc. 2,896,286
57,696 Compaq Computer Corp. 1,575,822
5,888 (b)Computer Sciences Corp. 305,808
4,481 (b)DSC Communications Corp. 76,597
1,826 (b)Data General Corp. 27,847
25,246 (b)Dell Computer Corp. 2,080,428
5,831 (b)Digital Equipment Corp. 319,976
1,746 EG & G, Inc. 54,999
18,828 (b)EMC Corp. Mass 780,185
3,040 Harris Corp. 146,490
39,693 Hewlett-Packard Co. 2,465,928
62,315 Intel Corp. 4,451,628
37,483 International Business Machines Corp. 4,399,567
5,416 (b)LSI Logic Corp. 115,429
8,039 Micron Technology, Inc. 189,419
22,718 Motorola, Inc. 1,202,634
5,540 (b)National Semiconductor Corp. 90,025
20,010 Northern Telecom Ltd. 1,280,640
2,545 Northrop Corp. 272,792
13,321 (b)Novell, Inc. 139,871
571 (b)Octel Corp. 12,455
1,671 Perkin-Elmer Corp. 114,464
2,959 Scientific-Atlanta, Inc. 65,283
9,332 (b)Seagate Technology, Inc. 215,803
6,755 (b)Silicon Graphics, Inc. 81,060
1,912 Tektronix, Inc. 73,134
6,907 (b)Tellabs, Inc. 474,640
6,672 (b)Unisys Corp. 163,464
------------
Total 25,281,598
------------
ENERGY--7.0%
3,501 Amerada-Hess Corp. 189,273
37,458 Amoco Corp. 1,566,213
2,277 Anadarko Petroleum Corp. 150,282
3,447 Apache Corp. 117,844
2,849 Ashland, Inc. 142,094
12,242 Atlantic Richfield Co. 965,588
6,439 Baker Hughes, Inc. 231,804
6,727 Burlington Resources, Inc. 283,375
24,983 Chevron Corp. 1,995,517
6,682 Dresser Industries, Inc. 311,131
1 (b)EEX Corp. 10
94,421 Exxon Corp. 6,656,681
9,674 Halliburton Co. 458,306
1,906 Helmerich & Payne, Inc. 48,127
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
ENERGY--CONTINUED
1,819 Kerr-McGee Corp. $ 115,052
29,990 Mobil Corp. 2,339,220
12,641 Occidental Petroleum Corp. 349,208
4,023 (b)Oryx Energy Co. 93,786
1,801 Pennzoil Co. 104,120
10,053 Phillips Petroleum Co. 503,278
3,302 (b)Rowan Companies, Inc. 84,407
81,826 Royal Dutch Petroleum Co., ADR 4,587,370
18,891 Schlumberger Ltd. 1,474,679
2,769 Sun Co., Inc. 117,683
20,156 Texaco, Inc. 1,164,009
9,684 Union Pacific Resources Group, Inc. 196,101
9,426 Unocal Corp. 335,801
2,058 (b)Western Atlas, Inc. 178,146
2,845 Whirlpool Corp. 194,349
15,592 Williams Cos., Inc. (The) 505,766
------------
Total 25,459,220
------------
FINANCE--15.9%
6,381 AON Corp. 408,783
5,717 Aetna Services, Inc. 446,998
3,714 Ahmanson (H.F.) & Co. 283,193
16,603 Allstate Corp. 1,562,757
17,889 American Express Co. 1,835,859
9,475 American General Corp. 636,009
26,759 American International Group, Inc. 3,313,099
13,020 Associates First Capital Corp., Class A 974,062
5,080 BB&T Corp. 336,233
24,464 Banc One Corp. 1,348,578
14,481 Bank of New York Co., Inc. 885,151
26,651 BankAmerica Corp. 2,203,705
5,559 BankBoston Corp. 585,780
3,798 Bankers Trust New York Corp. 469,053
2,029 Beneficial Corp. 271,886
8,472 CIGNA Corp. 580,332
16,160 Chase Manhattan Corp. 2,196,750
6,581 Chubb Corp. 523,601
6,270 Cincinnati Financial Corp. 263,340
17,481 Citicorp 2,606,854
6,041 Comerica, Inc. 397,163
7,169 Conseco, Inc. 334,255
4,089 Countrywide Credit Industries, Inc. 189,116
26,521 Federal Home Loan Mortgage Corp. 1,206,706
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
FINANCE--CONTINUED
40,488 Federal National Mortgage Association $ 2,424,219
8,819 Fifth Third Bancorp 434,336
11,282 First Chicago NBD Corp. 986,470
36,434 First Union Corp. 2,015,256
10,340 Fleet Financial Group, Inc. 847,880
9,300 Franklin Resources, Inc. 454,538
3,038 General RE Corp. 667,980
2,165 Golden West Financial Corp. 233,820
5,183 Green Tree Financial Corp. 208,292
4,502 Hartford Financial Services Group, Inc. 495,501
4,076 Household International, Inc. 551,534
7,286 Huntington Bancshares, Inc. 238,617
6,827 J.P. Morgan & Co., Inc. 847,828
4,053 Jefferson-Pilot Corp. 232,034
16,578 KeyCorp 628,928
3,884 Lehman Brothers Holdings, Inc. 275,521
3,890 Lincoln National Corp. 349,614
3,406 MBIA Insurance Corporation 253,960
19,125 MBNA Corp. 606,023
4,355 MGIC Investment Corp. 261,028
6,430 Marsh & McLennan Cos., Inc. 563,027
9,601 Mellon Bank Corp. 647,467
4,960 Mercantile Bancorporation, Inc. 253,580
12,645 Merrill Lynch & Co., Inc. 1,131,728
22,399 Morgan Stanley, Dean Witter & Co. 1,748,522
12,212 National City Corp. 827,363
36,177 NationsBank Corp. 2,740,408
4,200 Northern Trust Corp. 296,231
28,604 Norwest Corp. 1,111,981
11,714 PNC Bank Corp. 676,484
2,751 Progressive Corp., OH 379,294
3,578 Providian Financial Corp. 227,650
2,092 Republic New York Corp. 268,691
4,821 SAFECO Corp. 224,177
10,098 Schwab (Charles) Corp. 333,234
8,788 St. Paul Cos., Inc. 389,973
6,128 State Street Corp. 422,449
6,600 Summit Bancorp 330,825
7,444 SunAmerica, Inc. 361,965
8,160 SunTrust Banks, Inc. 644,640
10,005 Synovus Financial Corp. 224,487
5,282 Torchmark Corp. 226,466
2,415 Transamerica Corp. 277,725
43,657 Travelers Group, Inc. 2,663,077
28,017 U.S. Bancorp, Inc. 1,096,165
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
FINANCE--CONTINUED
5,325 UNUM Corp. $ 295,870
7,777 Wachovia Corp. 622,646
9,558 Washington Mutual, Inc. 675,034
3,355 Wells Fargo & Co. 1,212,833
------------
Total 57,746,634
------------
HEALTHCARE--4.5%
29,362 Abbott Laboratories 2,178,293
123 (b)Allergan Specialty Therapeutics, Inc., Class A 1,292
2,474 Allergan, Inc. 103,908
49,500 American Home Products Corp. 2,391,469
10,118 (b)Amgen, Inc. 612,139
2,191 Bard (C.R.), Inc. 76,000
2,115 Bausch & Lomb, Inc. 105,353
10,665 Baxter International, Inc. 609,905
4,662 Becton, Dickinson & Co. 329,837
4,245 Biomet, Inc. 122,574
24,956 Columbia/HCA Healthcare Corp. 815,749
7,540 HBO & Co. 435,199
14,997 (b)Healthsouth Corp. 425,540
6,247 (b)Humana, Inc. 194,047
2,800 Mallinckrodt, Inc. 86,275
2,428 Manor Care, Inc. 76,634
17,845 Medtronic, Inc. 992,628
49,326 Pfizer, Inc. 5,169,981
19,374 Pharmacia & Upjohn, Inc. 856,089
3,504 (b)St. Jude Medical, Inc. 125,268
7,158 United Healthcare Corp. 458,112
------------
Total 16,166,292
------------
PRODUCER MANUFACTURING--0.6%
21,597 Allied-Signal, Inc. 923,272
12,407 Xerox Corp. 1,274,819
------------
Total 2,198,091
------------
RAILROAD TRANSPORTATION--0.1%
14,385 Norfolk Southern Corp. 450,430
------------
RETAIL--1.7%
8,875 May Department Stores Co. 570,773
14,944 Sears, Roebuck & Co. 923,726
86,419 Wal-Mart Stores, Inc. 4,769,249
------------
Total 6,263,748
------------
SERVICES--1.6%
21,422 (b)Airtouch Communications, Inc. 1,020,223
2,871 American Greetings Corp., Class A 136,373
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
SERVICES--CONTINUED
1,420 (b)FMC Corp. $ 108,541
6,030 Praxair, Inc. 297,354
21,363 Time Warner, Inc. 1,662,308
13,467 (b)Viacom, Inc., Class B 740,685
38,421 (b)WorldCom, Inc. 1,748,156
------------
Total 5,713,640
------------
TECHNOLOGY SERVICES--7.4%
13,152 (b)3Com Corp. 333,732
61,988 AT&T Corp. 3,773,520
2,781 Adobe System, Inc. 111,066
1,828 Autodesk, Inc. 77,690
11,174 Automatic Data Processing, Inc. 710,946
30,186 (b)Cendant Corp. 654,659
20,832 Computer Associates International, Inc. 1,093,680
4,661 Cooper Industries, Inc. 300,052
5,758 Equifax, Inc. 209,447
16,931 First Data Corp., Class 562,956
5,600 (b)Gateway 2000, Inc. 252,350
5,622 (b)General Instrument Corp. 133,874
5,069 Ikon Office Solutions, Inc. 107,399
3,194 (b)KLA-Tencor Corp. 108,197
6,227 (b)Laidlaw Environmental Services, Inc. 24,130
7,404 Lockhead Martin Corp. 831,099
48,974 Lucent Technologies, Inc. 3,474,093
26,401 MCI Communications Corp. 1,411,628
92,456 (b)Microsoft Corp. 7,841,425
37,391 (b)Oracle Corp. 883,362
9,722 (b)Parametric Technology Corp. 298,040
952 Shared Medical Systems Corp. 69,258
14,076 (b)Sun Microsystems, Inc. 563,920
4,044 Tandy Corp. 178,947
14,630 Texas Instruments, Inc. 751,616
6,296 Textron, Inc. 467,085
2,097 Thomas & Betts Corp. 112,058
23,140 (b)U.S. West Media Group 857,626
8,984 United Technologies Corp. 844,496
------------
Total 27,038,351
------------
TRANSPORTATION--0.9%
3,508 (b)AMR Corp. 540,013
5,936 Burlington Northern Santa Fe 590,632
8,313 CSX Corp. 395,907
2,804 Delta Air Lines, Inc. 322,460
5,576 (b)FDX Corp. 357,561
2,967 Ryder Systems, Inc. 101,063
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
TRANSPORTATION--CONTINUED
8,356 Southwest Airlines Co. $ 223,001
3,001 (b)USAir Group, Inc. 210,070
9,428 Union Pacific Corp. 456,080
------------
Total 3,196,787
------------
UTILITIES--6.8%
7,131 Alltel Corp. 281,229
5,228 Ameren Corp. 204,546
7,219 American Electric Power Co., Inc. 327,562
41,968 Ameritech Corp. 1,781,017
5,635 Baltimore Gas & Electric Co. 171,515
29,621 Bell Atlantic Corp. 2,714,024
37,831 BellSouth Corp. 2,440,100
5,775 Carolina Power & Light Co. 236,775
8,099 Central & SouthWest Corp. 214,117
6,017 Cinergy Corp. 194,424
4,045 Coastal Corp. 285,173
2,113 Columbia Gas System, Inc. 178,284
8,969 Consolidated Edison Co. 383,985
3,639 Consolidated Natural Gas Co. 205,831
5,537 DTE Energy Co. 219,058
7,090 Dominion Resources, Inc. 281,384
13,732 Duke Energy Corp. 791,307
777 Eastern Enterprises 31,177
15,148 Edison International 446,866
11,677 Enron Corp. 585,310
9,207 Entergy Corp. 242,259
6,949 FPL Group, Inc. 426,929
8,772 FirstEnergy Corp. 260,419
6,264 Frontier Corp. 190,661
4,608 GPU, Inc. 177,408
36,488 GTE Corp. 2,127,707
10,886 Houston Industries, Inc. 311,612
9,500 (b)NEXTEL Communications, Inc., Class A 223,844
1,854 NICOR, Inc. 71,611
5,511 Niagara Mohawk Power Corp. 68,199
2,816 Northern States Power Co. 160,160
1,068 ONEOK, Inc. 41,719
16,731 P G & E Corp. 527,027
6,301 P P & L Resources, Inc. 139,410
3,179 Pacific Enterprises 121,001
11,302 Pacificorp 260,652
8,492 Peco Energy Co. 239,899
1,338 Peoples Energy Corp. 49,339
8,851 Public Service Enterprises Group, Inc. 292,636
69,752 SBC Communications, Inc. 2,711,609
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Equity Index Fund
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
UTILITIES--CONTINUED
3,272 Sonat, Inc. $ 128,222
26,134 Southern Co. 694,184
16,425 Sprint Corp. 1,178,494
9,176 Texas Utilities Co. 362,452
18,291 U.S. West, Inc. 928,268
8,253 Unicom Corp. 283,697
17,303 Waste Management, Inc. 562,348
------------
Total 24,755,450
------------
Total Common Stocks (identified cost $155,637,547) 327,469,567
------------
Preferred Stocks--0.0%
1,316 Sealed Air Corp., Cumulative Conv. Pfd. (identified
cost $0) 73,297
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies--7.4%
$ 3,000,000 (c)Federal Home Loan Mortgage Corp., 6/18/1998 $ 2,992,260
19,000,000 (c)Federal National Mortgage Association, 6/12/1998 18,968,270
5,000,000 (c)Federal National Mortgage Association, 6/17/1998 4,987,900
------------
Total U.S. Government Agenies (identified cost
$26,949,092) 26,948,430
------------
U.S. Treasury Obligation--0.5%
U.S. TREASURY BILLS--0.5%
1,650,000 (c)6/18/1998 (identified cost $1,646,153) 1,646,453
------------
(a)Repurchase Agreement--2.0%
7,148,162 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998,
due 6/1/1998 (at amortized cost) 7,148,162
------------
Total Investments (identified cost $191,380,954) $363,285,909
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Special Values Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------
<C> <S> <C>
Common Stocks--75.7%
BASIC MATERIALS--2.0%
16,000 Borden Chemical & Plastics, L.P. $ 95,000
33,600 Consolidated Tomoka Co. 592,200
53,000 Deltic Timber Corp. 1,467,438
22,500 Mississippi Chemical Corp. 376,875
51,000 Rock-Tenn Co. 749,063
------------
Total 3,280,576
------------
CAPITAL GOODS--4.8%
150,000 (b)Ansaldo Signal NV 618,750
15,500 Butler Manufacturing Co. 542,500
126,900 Cavalier Homes, Inc. 1,307,819
12,000 Franklin Electronics, Inc. 831,750
38,500 Greif Brothers Corp., Class A 1,400,438
72,000 (b)Harding Lawson Associates Group 711,000
1,800 Patrick Industries, Inc. 28,800
20,000 Skyline Corp. 582,500
52,800 Twin Disc, Inc. 1,689,600
------------
Total 7,713,157
------------
COMMERCIAL SERVICES--2.8%
75,000 Cordiant Communications Group PLC, ADR 806,250
5,000 Emmis Broadcasting Corp. 210,000
4,000 Grey Advertising, Inc. 1,788,000
60,000 (b)On Command Corp. 825,000
60,000 (b)Saatchi & Saatchi PLC, ADR 840,000
------------
Total 4,469,250
------------
CONSUMER CYCLICAL--1.8%
100,000 Johns Manville Corp. 1,450,000
12,790 Primex Technologies, Inc. 591,538
58,700 (b)Racing Champions Corp. 689,725
6,400 Russell Corp. 174,400
4,700 (b)Sport-Haley Inc. 58,750
------------
Total 2,964,413
------------
CONSUMER DURABLES--2.5%
16,000 Allen Organ Co., Class B 656,000
29,000 Boston Acoustics, Inc. 986,000
67,900 Intermet Corp. 1,324,050
25,000 National Presto Industries, Inc. 1,010,938
------------
Total 3,976,988
------------
CONSUMER NON-DURABLES--6.8%
51,000 (b)Anacomp, Inc. 918,000
63,000 (b)Buckhead America Corp. 472,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- ---------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CONSUMER NON-DURABLES--CONTINUED
51,000 CPI Corp. $ 1,306,875
42,000 (b)Craig Corp. 546,000
4,000 (b)Department 56, Inc. 146,750
30,000 Eskimo Pie Corp. 435,000
162,000 (b)Host Marriott Services Corp. 2,308,500
117,400 (b)M & F Worldwide Corp. 1,144,650
10,000 NCH, Corp. 636,875
183,000 (b)Oneita Industries, Inc. 115,290
12,000 Plenum Publishing Corp. 810,000
110,000 (b)Spaghetti Warehouse, Inc. 756,250
11,000 Velco Industries N.V. 1,446,500
------------
Total 11,043,190
------------
CONSUMER SERVICES--1.6%
26,120 (b)Chris Craft Industries, Inc. 1,372,933
22,000 (b)GC Cos., Inc. 1,097,250
19,200 (b)Powerhouse Technologies, Inc. 184,800
------------
Total 2,654,983
------------
ENERGY--5.8%
75,000 (b)American Pacific Corp. 806,250
55,000 Berry Petroleum Co., Class A 783,750
39,700 (b)Dawson Production Services, Inc. 441,663
96,500 (b)EEX Corp. 952,938
100,000 (b)Forest Oil Corp. 1,437,500
47,600 Holly Corp. 1,303,050
600,000 (b)Saxon Petroleum, Inc. 160,615
71,000 Snyder Oil Corp. 1,375,625
45,990 (b)Titan Exploration, Inc. 373,669
40,250 UGI Corp. 1,018,828
60,000 Wiser Oil Co. 626,250
------------
Total 9,280,138
------------
FINANCE--16.6%
55,000 Angeles Mortgage Investment Trust, Class A 1,038,124
54,000 Argonaut Group, Inc. 1,734,750
54,000 (b)CNA Surety Corp. 874,124
5,000 Capital Southwest Corp. 510,000
91,100 Charter Municipal Mortgage Acceptance Co. 1,218,462
133,700 (b)Danielson Holding Corp. 986,037
35,000 Eaton Vance Corp. 1,572,812
34,200 Financial Security Assurance Holdings Ltd. 2,026,350
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Special Values Fund
<TABLE>
<CAPTION>
Shares Value
- --------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
FINANCE--CONTINUED
11,100 Fund American Enterprises, Inc. $ 1,626,843
24,000 IPC Holdings Ltd. 718,500
59,000 John Nuveen & Co., Inc., Class A 2,212,500
30,000 (b)Kaiser Ventures, Inc. 337,500
65,000 Leucadia National Corp. 2,230,312
21,600 Liberty Corp. 1,086,750
8,882 MBIA Insurance Corporation 662,263
50,000 Merchants Group, Inc. 1,234,374
36,000 NAC Re Corp. 1,680,750
57,000 PX Escrow Corp. 1,795,500
11,196 Reliastar Financial Corp. 484,226
7,000 Smith Investment Co. 1,008,000
18,000 Stewart Information Services Corp. 690,750
35,500 Unico American Corp. 550,250
18,000 United Wisconsin Services, Inc. 558,000
------------
Total 26,837,177
------------
HEALTHCARE--0.8%
31,300 (b)ICU Medical, Inc. 457,763
84,800 (b)Medaphis Corp. 636,000
2,300 Mine Safety Appliances Co. 165,097
------------
Total 1,258,860
------------
METALS & MINING--1.0%
44,400 Barrick Gold Corp. 854,700
103,000 Battle Mountain Gold Co. 547,188
5,800 Newmont Gold Co. 151,163
2,500 Newmont Mining Corp. 62,344
------------
Total 1,615,395
------------
RETAIL--1.9%
45,000 Enesco Group, Inc. 1,375,313
56,000 (b)K Mart Corp. 1,085,000
10,000 (b)Pricesmart, Inc. 156,250
12,250 (b)Proffitts, Inc. 480,813
------------
Total 3,097,376
------------
SERVICES--15.8%
41,000 AK Steel Holding Corp. 763,624
39,500 (b)Alltrista Corp. 1,007,250
50,600 Amcast Industrial Corp. 1,091,062
37,400 (b)America Service Group, Inc. 495,550
39,200 (b)Audits & Surveys, Inc. 124,950
28,000 (b)BFC Construction Corp. 264,250
24,000 Blount International, Inc., Class A 676,500
30,000 Cascade Corp. 513,750
30,000 Cleveland Cliffs, Inc. 1,588,124
16,500 Duff & Phelps Credit Rating 948,750
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
SERVICES--CONTINUED
95,000 (b)Emcor Group, Inc. $ 1,894,062
30,000 Forest City Enterprises, Inc.,
Class A 1,691,250
1,950 Forest City Enterprises, Inc.,
Class B 109,687
21,800 Furon Co. 347,438
12,700 Getty Realty Holding Corp. 277,019
15,000 (b)Hanger Orthopedic Group, Inc. 290,625
40,000 (b)Healthcare Services Group, Inc. 560,000
86,000 Homestake Mining Co. 935,250
68,400 LTV Corp. 748,125
8,100 Lafarge Corp. 304,763
84,000 (b)Lexford Residential Trust 1,795,500
65,000 (b)Midwest Grain Products, Inc. 893,750
110,000 (b)Morrison Knudsen Corp. 1,306,250
40,000 Price Enterprises, Inc. 712,500
28,100 Raven Industries, Inc. 562,000
60,000 Roanoke Electric Corp. 1,230,000
64,000 (b)Royal Oak Mines, Inc. 64,000
125,500 (b)Steel West Virginia, Inc. 1,364,813
100,000 (b)Todd Shipyards Corp. 643,750
9,000 Varlen Corp. 304,875
22,700 (b)Vertex Communications Corp. 488,050
16,000 (b)White River Corp. 1,428,000
------------
Total 25,425,517
------------
TECHNOLOGY SERVICES--10.7%
15,300 (b)4Front Software, International, Inc. 191,250
13,800 Cadmus Communications Corp. 353,625
70,500 (b)Cypress Semiconductor Corp. 603,656
42,000 (b)DSC Communications Corp. 717,938
95,000 (b)ESCO Electronics Corp. 1,704,063
33,000 (b)Electroglas, Inc. 449,625
47,500 (b)Evans & Sutherland Computer Co. 1,193,438
35,000 (b)Exar Corp. 805,000
51,000 (b)FSI International, Inc. 586,500
21,000 (b)Intuit, Inc. 994,875
34,000 (b)Moore Products Co. 1,130,500
48,500 Nam Tai Electronics, Inc. 812,375
70,000 (b)Novell, Inc. 735,000
64,000 (b)Phoenix Technology, Ltd. 652,000
37,000 (b)Remedy Corp. 597,781
85,000 Salient 3 Communications, Inc.,
Class A 834,063
52,000 (b)Silicon Valley Group, Inc. 952,250
11,562 Timberline Software Corp. 228,350
130,600 United Industrial Corp. 1,567,200
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Special Values Fund
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
- -----------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
TECHNOLOGY SERVICES--CONTINUED
90,500 (b)Wang Laboratories, Inc. $ 2,173,875
------------
Total 17,283,364
------------
TRANSPORTATION--0.8%
50,000 (b)Consolidated Freightways Corp. 737,500
30,000 (b)Kirby Corp. 580,500
------------
Total 1,318,000
------------
Total Common Stocks (identified cost $96,390,564) 122,218,384
------------
Corporate Bond--0.1%
INDUSTRIAL SERVICES--0.1%
$ 250,000 American Rice Inc., Mtg. Bond, 13.00%, 7/31/2002
(identified cost $231,875) 190,000
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Open-End Investment Company--0.5%
130,000 Royce Global Trust, Inc. (identified cost $604,500)
(at net asset value) $ 735,313
------------
Preferred Stock--0.7%
86,000 (b)Craig Corp., Pfd. B (identified cost $484,174) 1,101,918
------------
U.S. Treasury Obligation--5.6%
$9,000,000 United States Treasury Bill, 6/18/1998 (identified
cost $8,978,778) 8,980,650
------------
(a) Repurchase Agreement--18.5%
29,820,975 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998, due
6/1/1998 (at amortized cost) 29,820,975
------------
Total Investments (identified cost $136,510,866) $163,047,240
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Emerging Markets Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--80.3%
ARGENTINA--5.2%
100,000 Banco Del Suquia SA $ 235,458
30,000 (b)Banco Rio de la Plata SA, ADR 360,000
32,500 Banco de Galicia y Buenos Aires S.A. de C.V., Class
B, ADR 666,250
91,955 Compania Naviera Perez Companc SA, Class B 506,913
11,000 IRSA Inversiones y Representaciones S.A., GDR 389,125
20,000 Importadora y Exportadora de la Patagonia 315,150
146,467 Juan Minetti SA 542,185
37,303 Perez Companc 205,637
40,000 Quilmes Industrial SA, ADR 385,000
124,000 Siderar S.A., Class A 508,642
375,456 Siderca S.A., Class A 758,780
52,000 Telecom Argentina S.A., ADR 1,612,000
66,000 YPF Sociedad Anonima, ADR 2,050,125
------------
Total 8,535,265
------------
BRAZIL--3.2%
20,000 Companhia Brasileira de Distribuicao Grp, ADR 467,500
57,000 Companhia Vale Do Rio Doce 1,055,647
340,922,620 (b)Companhia de Eletricidade do Estado do Rio de
Janeiro 207,281
2,000,000 (b)Companhia de Saneamento Basico do Estado de Sao
Paulo 339,100
30,400 Pan American Beverage, Class A 1,027,900
20,000 Telecomunicacoes Brasileiras SA, ADR 2,132,500
------------
Total 5,229,928
------------
CHILE--3.7%
35,000 Banco de A. Edwards, ADR 485,625
25,800 Compania Cervecerias Unidas SA, ADR 619,200
50,000 Compania Telecomunicacion Chile, ADR 1,109,375
20,600 Cristalerias de Chile, ADR 271,663
25,000 (b)Distribucion y Servicio, ADR 395,313
18,000 Embotelladora Andina S.A., Class A, ADR 338,625
12,000 Embotelladora Andina S.A., Class B, ADR 204,000
38,500 Enersis S.A., ADR 976,938
</TABLE>
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- -----------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
CHILE--CONTINUED
48,542 Gener S.A., ADR $ 976,908
40,000 (b)Quinenco SA, ADR 380,000
10,000 Sociedad Quimica Y Minera De Chile, ADR 344,375
------------
Total 6,102,022
------------
CHINA--0.7%
11,500 (b)Huaneng Power International Inc., Class N, ADR 199,813
2,000,000 Maanshan Iron & Steel Co., Class H 122,596
1,600,000 Qingling Motors Co., Class H 629,758
1,000,000 Shanghai Petrochemical Co. Ltd., Class H 109,691
1,000,000 Yizheng Chemical Fibre Co. 118,724
------------
Total 1,180,582
------------
COLOMBIA--1.2%
30,000 Bancolombia S.A., ADR 363,750
130,000 Bavaria 744,506
75,000 Bco De Bogota 280,049
80,000 Cemento Argos 305,591
100,000 Cementos Diamante S.A. 250,555
------------
Total 1,944,451
------------
CROATIA--1.4%
120,000 (b)(d)Pliva D.D., GDR 1,962,988
13,250 (b)(d)Zagrebacka Banka, GDR 283,219
------------
Total 2,246,207
------------
CZECH REPUBLIC--1.0%
5,000 (b)CKD Praha Holding AS 151,781
12,500 (b)Komercni Banka A.S., GDR 135,625
10,000 SPT Telekom A.S. 1,283,254
------------
Total 1,570,660
------------
DOMINICAN REPUBLIC--0.2%
40,000 (b)Tricom SA, ADR 337,500
------------
EGYPT--1.6%
22,000 (b)Al-Ahram Beverages Co, GDR 695,200
50,000 (b)Commercial International Bank Egypt, GDR 707,500
6,000 (b)Egypt International Pharmaceuticals 404,544
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Emerging Markets Fund
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- --------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
EGYPT--CONTINUED
43,000 (b)(d)Paints & Chemical Industry, GDR $ 397,750
20,000 (b)Suez Cement Co., Class S, GDR 393,000
------------
Total 2,597,994
------------
ESTONIA--0.3%
55,000 (b)(d)Eesti Uhispank, GDR 529,375
------------
GREECE--4.7%
13,250 Alpha Credit Bank 1,382,391
4,000 Ergo Bank SA 363,445
19,360 Goody's S.A. 557,771
35,000 Hellenic Bottling Co., S.A. 1,171,452
12,000 Hellenic Cables S.A. 252,010
17,400 Hellenic Technodomiki 177,283
17,270 Hellenic Telecommunications Organization 507,191
34,560 Michaniki S.A. 192,787
8,814 National Bank of Greece 1,268,088
25,350 Sarantis SA 510,327
17,700 Titan Cement Co. 1,333,526
------------
Total 7,716,271
------------
HONG KONG--3.3%
500,000 Amoy Properties Ltd. 321,009
150,000 CLP Holdings Ltd. 646,535
175,000 Cheung Kong 946,251
235,000 Citic Pacific Ltd. 571,654
176,000 Dah Sing Financial Group 295,264
1,100,000 GZI Transportation Ltd. 326,493
40,000 HSBC Holdings PLC 970,448
2,200,000 Harbin Power Equipment Co., Class H 221,448
50,000 Hutchison Whampoa 261,324
55,000 Sun Hung Kai Properties 265,454
100,000 Swire Pacific Ltd., Class A 369,725
50,000 VTech Holdings Ltd. 162,279
------------
Total 5,357,884
------------
HUNGARY--2.0%
4,000 (b)(d)BorsodChem RT, GDR 107,600
8,000 Danubius Hotels Rt 163,421
4,000 EGIS 147,210
35,000 (b)Euronet Services, Inc., ADR 207,813
10,000 (b)(d)Gedeon Richter, GDR 845,500
15,000 (b)(d)MOL Magyar Olay, GDR 344,250
25,000 (b)Matav RT, ADR 700,000
</TABLE>
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- --------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
HUNGARY--CONTINUED
10,000 OTP Bank RT, GDR $ 416,500
3,500 Pick Szeged Rt 172,831
25,000 (b)Zalakeramia Rt, GDR 168,750
------------
Total 3,273,875
------------
INDIA--1.3%
14,200 Bajaj Auto Ltd., GDR 227,200
13,800 Bses, GDR 186,300
17,000 Gujarat Ambuja, GDR 112,625
7,500 (b)(d)Hindalco Industries Ltd., GDR 105,000
16,500 Indian Hotels Co. Ltd., GDR 181,500
24,500 Larsen & Toubro Ltd., GDR 311,763
20,500 (b)Mahindra and Mahindra, GDR 101,988
11,000 Ranbaxy Labs, GDR 179,850
17,600 (b)Reliance Industries Ltd., GDR 134,200
8,400 (b)(d)Reliance Industries Ltd., GDR 61,320
7,000 State Bank of India, GDR 98,000
20,000 (b)(d)State Bank of India, GDR 280,000
350 Tata Electric Co., GDR 89,250
------------
Total 2,068,996
------------
INDONESIA--1.9%
1,000,000 PT Daya Guna Samudera 617,256
1,000,000 PT Fiskaragung Perkasa 33,185
225,000 PT Gudang Garam 165,265
300,000 PT Hanjaya Mandala Sampoerna 100,885
1,942,115 PT Indah Kiat Pulp & Paper Corp. 317,955
767,500 PT Indosat 1,015,409
2,000,000 PT Mulia Industrindo 79,646
350,000 PT Semen Gresik 187,389
1,685,000 PT Telekomunikasi Indonesia 559,181
------------
Total 3,076,171
------------
KOREA, REPUBLIC OF--1.5%
12,625 Housing & Commercial Bank, Korea 51,935
30,000 (b)Housing & Commercial Bank, Korea, GDR 111,000
27,500 L.G. Chemical, Ltd., ADR 177,375
18,500 L.G. Electronics, Inc. 173,499
4,329 LG Information & Communication Ltd. 101,497
13,610 Pohang Iron and Steel Co. Ltd. 552,252
356 SK Telecom Co. Ltd. 166,618
5,981 Samsung Display Devices 212,053
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Emerging Markets Fund
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- -----------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
KOREA, REPUBLIC OF--CONTINUED
10,199 Samsung Electronics Co. $ 387,671
12,000 (b)(d)Samsung Electronics Co., GDR 231,300
7,500 Seoul City Gas Co. Ltd. 137,478
16,334 Yukong Ltd. 96,205
------------
Total 2,398,883
------------
LEBANON--0.6%
40,000 (b)(d)Banque Libanaise Pour Le Comm, Class B, GDR 674,000
25,000 (b)(d)Solidere, GDR 321,875
------------
Total 995,875
------------
LITHUANIA--0.3%
10,000 Vilniaus Bankas AB, GDR 566,217
------------
MALAYSIA--1.2%
30,000 Carlsberg Brwry(M) 97,524
100,000 Genting Berhad 260,064
200,000 Hap Seng Consolidated Berhad 234,058
40,000 Malayan Banking 56,174
40,000 Malayan Banking BHD 56,174
58,450 O.Y.L. Industries Bhd 151,248
300,000 Perusahaan Otomobil Nasional Bhd 298,034
220,000 Renong Berhad 46,343
147,500 Telekom Malaysia Berhad 337,564
220,000 Tenaga Nasional Berhad 363,310
50,000 United Engineers Ltd. 29,777
------------
Total 1,930,270
------------
MEXICO--7.7%
145,000 Alfa, S.A. de C.V., Class A 690,476
220,000 Cemex SA 912,925
91,700 Consorcio Grupo Dina SA de CV, ADR 286,563
100,000 (b)Corporacion GEO, S.A. de C.V., Class B 571,429
10,310 Desc S.A. de C.V., Class C, ADR 233,264
48,000 Empresas ICA Sociedad Controladora S.A., ADR 498,000
32,000 (b)Fomento Economico Mexicano, SA de C.V., ADR 1,056,000
119,800 Grupo Carso SA de CV 615,978
400,000 Grupo Elektra 471,655
200,000 Grupo Financiero Banamex Accivel, Class B 498,866
1,000,000 Grupo Financiero Bancomer, S.A. de C.V., Class B 498,866
</TABLE>
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- -----------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
MEXICO--CONTINUED
30,000 (b)Grupo Iusacell S.A., ADR $ 480,000
30,000 Grupo Televisa S.A., GDR 1,171,875
90,000 Industrias Penoles S.A. 308,163
100,000 Kimberly-Clark de Mexico 417,234
160,000 Organizacion Soriana SA de CV, Class B 517,914
110,000 Sanluis Corporacion SA de CV 478,288
56,000 Telefonos de Mexico, Class L, ADR 2,656,500
15,000 (b)Tubos de Acero de Mexico SA, ADR 224,063
------------
Total 12,588,059
------------
MOROCCO--0.8%
41,000 (b)(d)Banque Marocaine du Commerce Exterieur, GDR 991,388
23,000 (b)(d)MI Bank, GDR 271,975
------------
Total 1,263,363
------------
PERU--2.4%
39,000 Banco Wiese, ADR 185,250
55,000 CPT Telefonica del Peru S.A., Class B, ADR 1,189,375
13,362 Cementos Lima S.A. 280,175
545,932 Cervecer Backus & Johnston, Class T 337,690
70,000 Cia de Minas Buenaventura SA 444,242
48,721 Credicorp Ltd. 773,449
240,000 Luz Del Sur Servicos SA, Class B 215,551
62,302 Minsur S.A. 131,723
143,300 Telefonica Del Peru CPT, Class B 307,984
------------
Total 3,865,439
------------
PHILIPPINES--2.5%
1,217,812 Ayala Land, Inc. 412,685
7,000,000 (b)Belle Corp. 247,058
1,687,500 (b)Fortune Cement Corp. 102,716
3,192,000 JG Summit Holdings, Inc. 202,459
100,000 La Tondena Distillers, Inc. 70,332
250,000 Manila Electric Co., Class B 735,294
84,000 Metro Bank and Trust Co. 606,905
56,000 Philippine Long Distance Telephone Co., ADR 1,421,000
3,500,000 Solid Group, Inc. 132,479
500,000 (b)Union Bank(Phil) 207,801
------------
Total 4,138,729
------------
POLAND--2.7%
9,000 Agros Holding S.A. 131,481
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Emerging Markets Fund
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- ---------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
POLAND--CONTINUED
13,500 (b)Amica Wronki $ 139,215
13,333 (b)Bank Inicjatyw Gospodarczych, GDR 260,327
6,500 Bank Slaski S.A. 487,826
60,000 (b)Budimex SA 285,305
80,000 Elektrim Spolka Akcyina S.A. 1,051,848
25,000 Kredyt Bank, ADR 425,000
30,000 (b)Okocimskie Zaklady Piwowarskie SA 251,790
24,660 (b)Orbis SA 183,661
92,667 Polifarb-Cieszyn SA 278,718
15,000 (b)Prokom, GDR 254,250
40,000 (b)Zalady Metali Lekkich Kety 624,463
------------
Total 4,373,884
------------
PORTUGAL--7.9%
35,951 BPI-SGPS S.A. 1,456,542
56,649 Banco Commercial Portugues, Class R 1,875,791
15,000 Banco Espirito Santo e Comercial de Lisboa 527,977
22,700 Cimpor Cimentos de Portugal 869,349
40,000 Corticeira Amorim SA 867,232
57,000 Electricidade de Portugal SA 1,497,947
48,996 Estabelecimentos Jeronimo Martins & Filho SGPS,
S.A. 2,211,728
80,000 Portucel Industria 692,910
34,030 Portugal Telecom S.A. 1,788,601
23,916 Somague-Sociedade Gestora de Participacoes 281,257
14,200 Sonae Investimentos Sociedade Gestora de
Participacoes Sociais, S.A. 816,315
------------
Total 12,885,649
------------
ROMANIA--0.7%
10,925 (b)Alro Slatina 84,088
300,000 (b)Arctic S.A. 193,889
35,000 (b)LaFarge Romcin 431,845
499,512 (b)Sanex S.A. 152,612
150,000 (b)Terapia SA 280,259
------------
Total 1,142,693
------------
RUSSIA--3.2%
2,000 (b)Aeroflot 200,800
30,000 Gazprom, ADR 417,000
3,000 Gorkovsky Auto Plant 303,000
</TABLE>
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- ----------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
RUSSIA--CONTINUED
2,000,000 (b)Kostromskaya Gres $ 98,998
14,142 (b)Kubanelectrosvyaz, RDC 281,426
25,000 Lukoil Holding Co., ADR 1,029,418
66,000 Mosenergo, ADR 465,300
100,000 (b)Rostelecom 258,200
30,000 (b)Sun Brewing Ltd., GDR 566,250
90,000 (b)Surgutneftegaz 497,439
16,000 (b)Udmurt Telecom 96,288
2,000,000 (b)Unified Energy System 352,000
20,000 (b)Unified Energy System, RDC 352,000
38,124 (b)Uralmash Zavody 302,914
------------
Total 5,221,033
------------
SLOVAK REPUBLIC--0.3%
80,000 (b)(d)Slovakofarna AS, GDR 560,000
------------
SLOVENIA--0.3%
35,000 (b)(d)Blagovno Trgovinsia Center, GDR 234,500
12,000 (b)(d)SKB Banka, GDR 165,000
------------
Total 399,500
------------
SOUTH AFRICA--6.5%
100,000 ABSA Group Ltd. 786,118
23,200 Anglo American Corp. of South Africa Ltd. 1,112,289
25,000 Barlow Ltd. 205,021
62,600 De Beers Centenary AG 1,305,002
55,000 Liberty Life Association of Africa Ltd. 1,518,081
44,400 Nedcor Limited 1,189,309
200,000 Persetel Q Data Holdings Ltd. 2,096,314
100,000 Sappi Limited 539,607
25,000 Sasol Ltd. 198,956
55,000 South African Breweries, Ltd. 1,552,243
------------
Total 10,502,940
------------
TAIWAN, PROVINCE OF CHINA--1.1%
22,084 (b)Advanced Semiconductor Engineering, GDR 278,258
27,432 (b)Asia Cement Corp., GDR 266,776
25,562 (b)GVC Corp., GDR 166,153
28,800 (b)President Enterprises, GDR 275,616
49,000 (b)Yageo Corp., GDR 545,125
30,500 (b)Yang Ming Marine Transport, GDR 190,625
------------
Total 1,722,553
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Emerging Markets Fund
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- ------------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
THAILAND--1.9%
80,000 BEC World PLC $ 320,871
75,000 Bangkok Bank Public Co., Ltd. 153,194
250,000 Hana Microelectronics Co., Ltd. 866,551
141,000 KCE Electronics 802,921
55,000 PTT Exploration and Production Public Co. 476,603
90,000 Shinawatra Computer Co. 305,273
100,000 Thai Farmers Bank Co. 152,265
------------
Total 3,077,678
------------
TURKEY--5.1%
24,782,026 Akbank T.A.S. 729,162
8,920,000 Aksigorta 543,897
4,200,000 Alcatel Teletas 536,584
12,145,000 Arcelik AS 505,451
3,200,000 Aygaz 507,936
3,540,000 Eregli Demir Ve Celik Fabrikalari T.A.S. 493,377
3,172,734 Koc Holding A.S. 601,871
679,100 Migros Turk 630,987
1,020,000 Otosan Otomobil Sanayii AS 572,589
23,750,000 (b)Sabanci Holding 1,448,156
5,088,000 (b)Tupras Turkiye Petrol Rafinerileri A.S. 709,125
14,360,379 Turk Sise ve Cam Fabrikalari 467,000
12,000,000 Turkiye Is Bankasi 487,800
------------
Total 8,233,935
------------
VENEZUELA--1.9%
40,000 Compania Anonima Nacional Telefonos de Venezuela,
Class D, ADR 1,232,500
120,000 Corporacion Venezolana de Cementos, S.A.C.A. 154,536
1,292,667 Electricidade de Caracas 831,150
137,000 Mavesa SA, ADR 549,521
30,000 Siderurgica Venezolana Sivensa, ADR 315,876
------------
Total 3,083,583
------------
Total Common Stocks (identified cost $139,033,602) 130,717,464
------------
</TABLE>
<TABLE>
<CAPTION>
Value in
Shares U.S. Dollars
- -------------------------------------------------------------------------------
<C> <S> <C>
Preferred Stocks--5.5%
BRAZIL--5.4%
1,800,000 Banco Itau SA, Preference $ 1,072,096
513,000 Centrais Electricas de Santa Catarina SA-Celesc,
Preference, Series B 463,890
15,000,000 (b)Centrais Eletricas Brasileiras SA, Preference,
Series B 536,040
53,500,000 (b)Cia Paranaense de Energia, Preference, Series B 544,256
831,909 (b)Cia Riograndense De Telecomunicacoes, Pfd. 896,937
23,251,630 Companhia Energetica de Minas Gerais, Preference 768,234
35,000,000 Gerdau S.A., Preference 517,335
5,000,000 (b)Petroleo Brasileiro SA, Preference 965,130
8,663,257 Telecomunicacoes de Minas Gerais, Preference,
Series B 873,776
2,602,000 Telecomunicacoes do Parana SA, Preference 916,276
8,663,257 Telemig Celular S.A. 444,416
2,602,000 Telepar Celular S.A., Series B 352,935
7,420,000 Uniao de Bancos Brasileiros SA 467,735
------------
Total 8,819,056
------------
GREECE--0.0%
960 Michaniki S.A., Pfd. 4,284
------------
RUSSIA--0.1%
550 (b)Karelia Electrosvyaz, Pfd. 68,750
2,000,000 (b)Surgutneftegaz, Pfd. 84,000
------------
Total 152,750
------------
Total Preferred Stocks (identified cost $8,720,642) 8,976,090
------------
Rights--0.3%
BRAZIL--0.0%
22,015 Cia Riograndense De Telecomunicacoes 0
------------
KOREA, REPUBLIC OF--0.0%
811 Samsung Electronics Co. 8,413
------------
MEXICO--0.0%
6,600 Cemex S.A. de C.V. 2,447
------------
PHILIPPINES--0.0%
1,596,000 JG Summit Holdings, Inc. 9,388
124,069 Union Bank(Phil.) 0
------------
Total 9,388
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Emerging Markets Fund
<TABLE>
<CAPTION>
Shares or
Principal Value in
Amount U.S. Dollars
- ------------------------------------------------------------------------------
<C> <S> <C>
Rights--continued
PORTUGAL--0.1%
15,000 Banco Espirito Santo e Comercial de Lisboa $ 14,864
15,000 Banco Espirito Santo e Comercial de Lisboa 103,887
------------
Total 118,751
------------
TURKEY--0.2%
13,939,889 Akbank T.A.S. 356,178
------------
Total Rights (identified cost $576,238) 495,177
------------
Warrants--0.0%
HONG KONG--0.0%
50,000 GZI Transportation Ltd., Warrants 452
------------
INDONESIA--0.0%
109,374 PT Bank Dagang Nasional Indonesia, Warrants 155
80,250 PT Bank Internasional Indonesia, Warrants 781
163,544 PT Indah Kiat Pulp & Paper Corp., Warrants 11,578
107,143 PT Pan Indonesia Bank, Warrants 683
------------
Total 13,197
------------
PHILIPPINES--0.0%
500,000 Belle Corp., Warrants 1,407
------------
THAILAND--0.0%
9,375 Thai Farmers Bank Co., Warrants 975
------------
Total Warrants (identified cost $19,946) 16,031
------------
Convertible Bonds--0.0%
BRAZIL--0.0%
$ 53,500 Companhia Vale Do Rio Doce, Conv. Deb., 12/31/1999
(identified cost $417) 465
------------
Closed End Investment Companies--6.6%
EGYPT--0.7%
12,000 (b)Societe Generale Arab Fund 1,206,000
------------
HONG KONG--0.4%
35,000 (b)Formosa Growth Fund Ltd. 659,750
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Value in
Amount U.S. Dollars
- ------------------------------------------------------------------------------
<C> <S> <C>
Closed End Investment Companies--continued
INDIA--1.0%
130,000 India Fund Inc. $ 991,250
495,000 The India Fund 719,550
------------
Total 1,710,800
------------
MEXICO--0.5%
50,000 Mexico Fund 793,750
------------
SOUTH AFRICA--1.0%
105,000 Southern Africa Fund, Inc. 1,594,688
------------
TURKEY--0.2%
50,000 Turkey Trust PLC 277,661
------------
UNITED KINGDOM--0.5%
10,000 (b)Societe Generale Ukraine Fund 845,000
------------
UNITED STATES--2.3%
65,000 Framlington Bulgaria Fund 593,450
2,200 (b)Romania Investment Fund Ltd. 1,925,000
50,000 (b)The Morgan Stanley India Investment Fund, Inc. 400,000
80,000 (b)Ukranian Opportunity Fund 760,000
------------
Total 3,678,450
------------
Total Closed End Investment Companies (identified
cost $12,043,676) 10,766,099
------------
Time Deposit--3.2%
$5,200,743 (b)Bank of New York Co., Inc. (at amortized cost) 5,200,743
------------
(a) Repurchase Agreement--3.8%
6,113,135 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998,
due 6/1/1998 (at amortized cost) 6,113,135
------------
Total Investments (identified cost $171,708,399) $162,285,204
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Balanced Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------
<C> <S> <C>
Common Stocks--43.3%
BASIC MATERIALS--0.4%
32,343 International Paper Co. $ 1,487,778
------------
CAPITAL GOODS--2.2%
63,436 General Electric Co. 5,288,976
28,749 Honeywell, Inc. 2,413,119
18,874 Ingersoll-Rand Co. 850,510
------------
Total 8,552,605
------------
CHEMICAL AND ALLIED PRODUCTS--0.4%
21,776 Du Pont (E.I.) de Nemours & Co. 1,676,752
------------
CONSUMER CYCLICAL--0.9%
31,380 Black & Decker Corp. 1,831,807
23,329 Magna International, Inc., Class A 1,644,694
------------
Total 3,476,501
------------
CONSUMER DURABLES--0.4%
23,698 General Motors Corp. 1,704,775
------------
CONSUMER NON-DURABLES--11.8%
18,482 (b)Alza Corp. 894,067
20,272 Avon Products, Inc. 1,658,503
10,920 (b)Boston Scientific Corp. 696,150
30,855 Bristol-Myers Squibb Co. 3,316,912
68,638 Coca-Cola Co. 5,379,503
22,990 Disney (Walt) Co. 2,600,744
15,464 (b)Elan Corp. PLC, ADR 946,203
21,020 Fortune Brands, Inc. 812,602
15,115 Gillette Co. 1,770,344
14,223 Guidant Corp. 916,494
21,122 Johnson & Johnson 1,458,738
34,880 Kimberly-Clark Corp. 1,728,740
28,028 Lilly (Eli) & Co. 1,721,970
20,826 McDonald's Corp. 1,366,706
22,601 Merck & Co., Inc. 2,645,729
15,847 Monsanto Co. 877,528
18,924 Newell Co. 913,083
91,077 PepsiCo, Inc. 3,717,080
61,340 Philip Morris Cos., Inc. 2,292,582
37,450 Procter & Gamble Co. 3,143,459
40,688 Schering Plough Corp. 3,405,077
26,425 (b)Tenet Healthcare Corp. 924,875
57,384 Warner-Lambert Co. 3,661,817
------------
Total 46,848,906
------------
ENERGY--3.5%
31,415 Baker Hughes, Inc. 1,130,940
25,082 British Petroleum Co. PLC, ADR 2,222,892
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
ENERGY--CONTINUED
32,215 Exxon Corp. $ 2,271,157
44,195 Mobil Corp. 3,447,210
41,384 Royal Dutch Petroleum Co., ADR 2,320,090
28,880 Schlumberger Ltd. 2,254,445
------------
Total 13,646,734
------------
FINANCE--7.1%
8,210 Allstate Corp. 772,766
25,741 American Express Co. 2,646,091
21,003 American International Group, Inc. 2,508,218
1 Associates First Capital Corp., Class A 73
55,668 Banc One Corp. 3,068,698
16,622 Chase Manhattan Corp. 2,167,105
10,353 Chubb Corp. 823,711
5,843 Citicorp 848,706
17,292 Countrywide Credit Industries, Inc. 799,755
57,910 Federal Home Loan Mortgage Corp. 2,631,648
27,384 Federal National Mortgage Association 1,639,617
35,535 MBIA Insurance Corporation 2,649,956
23,548 MBNA Corp. 746,177
9,828 Merrill Lynch & Co., Inc. 879,606
39,335 NationsBank Corp. 2,984,642
18,500 SunTrust Bank, Inc. 1,462,062
26,116 Travelers Group, Inc. 1,593,076
------------
Total 28,221,907
------------
HEALTHCARE--1.3%
49,413 Pfizer, Inc. 5,179,100
------------
PRODUCER MANUFACTURING--0.6%
24,918 Xerox Corp. 2,560,325
------------
RETAIL--0.9%
28,895 Sears, Roebuck & Co. 1,786,072
32,828 Wal-Mart Stores, Inc. 1,811,695
------------
Total 3,597,767
------------
SERVICES--3.0%
17,856 (b)Airtouch Communications, Inc. 850,392
36,820 American Greetings Corp., Class A 1,748,950
11,589 (b)FMC Corp. 885,834
53,701 Praxair, Inc. 2,648,130
22,323 Time Warner, Inc. 1,737,008
15,269 (b)Viacom, Inc., Class B 839,795
71,666 (b)WorldCom, Inc. 3,260,803
------------
Total 11,970,912
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Balanced Fund
<TABLE>
<CAPTION>
Shares or
Principal Value in
Amount U.S. Dollars
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stocks--continued
TECHNOLOGY SERVICES--7.7%
38,877 (b)3Com Corp. $ 986,504
25,989 (b)Ascend Communications 1,122,400
39,758 (b)Cisco Systems, Inc. 3,006,699
31,937 Compaq Computer Corp. 872,279
37,615 Computer Associates International, Inc. 1,974,788
25,711 Cooper Industries, Inc. 1,655,146
17,881 Intel Corp. 1,277,374
18,695 International Business Machines Corp. 2,194,326
42,406 Lucent Technologies, Inc. 3,008,176
68,004 (b)Microsoft Corp. 5,767,589
21,854 (b)Network Associates, Inc. 1,338,558
22,589 OY Nokia AB, Class A, ADR 1,466,873
18,578 Pitney Bowes, Inc. 873,166
35,525 (b)Sun Microsystems, Inc. 1,423,220
24,338 Texas Instruments, Inc. 1,250,365
25,824 United Technologies Corp. 2,427,456
------------
Total 30,644,919
------------
TRANSPORTATION--1.8%
17,605 (b)AMR Corp. 2,710,070
44,790 Allied-Signal, Inc. 1,914,773
25,503 Burlington Northern Santa Fe 2,537,549
------------
Total 7,162,392
------------
UTILITIES--1.3%
19,566 BellSouth Corp. 1,262,007
62,553 Edison International 1,845,314
68,915 Southern Co. 1,830,555
------------
Total 4,937,876
------------
Total Common Stocks (identified cost $143,145,083) 171,669,249
------------
Corporate Bonds--14.5%
ASSET-BACKED SECURITIES--0.9%
$1,000,000 American Express Credit Account Master Trust 1997-1,
Class A, 6.40%, 4/15/2005 1,017,180
965,000 Dayton Hudson Credit Card Master Trust 1995-1, Class
A, 6.10%, 2/25/2002 966,438
575,000 Ford Credit Auto Loan Master Trust 1995-1 A, Class
A, 6.50%, 8/15/2002 582,435
957,250 Prudential Home Mortgage Securities 1993-60, Class
A1, 6.75%, 12/25/2023 961,730
------------
Total 3,527,783
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--continued
CHEMICALS--0.2%
$ 800,000 Nalco Chemical Co., Bond, 6.25%, 5/15/2008 $ 803,568
------------
CONSUMER SERVICES--0.5%
2,000,000 Tribune Co., Note, 6.25%, 11/10/2026 2,070,500
------------
FINANCE--10.5%
2,750,000 Bankers Trust Co., New York, Sr. Note, 5.85%,
5/11/2000 2,744,363
865,000 Bankers Trust New York Corp., Sub. Note, 7.375%,
5/1/2008 915,987
2,500,000 Bear Stearns Cos., Inc., Note, 6.625%, 10/1/2004 2,544,900
825,000 Beneficial Corp., 6.25%, 2/18/2003 824,324
2,500,000 CIT Group Holdings, Inc., Sr. Note, 6.375%,
10/1/2002 2,515,775
2,250,000 Caterpillar Financial Services Corp., Note, 6.50%,
2/1/2002 2,284,830
1,130,000 Chase Manhattan Corp., Sub. Note, 6.75%, 9/15/2006 1,168,793
1,000,000 Fleet Financial Group, Inc., Sr. Note, 6.00%,
10/26/1998 1,000,730
890,000 Ford Motor Credit Corp., Sr. Unsub., 6.55%,
9/10/2002 902,967
3,000,000 General Electric Capital Corp., Deb., 6.66%,
5/1/2018 3,037,560
1,000,000 Hartford Life, Inc., Note, 7.10%, 6/15/2007 1,046,288
650,000 Household Finance Corp., Note, 7.25%, 7/15/2003 677,942
2,750,000 IBM Credit Corp., Sr. Note, 5.79%, 3/20/2010 2,746,233
1,500,000 KFW International Finance, Note, 7.00%, 3/1/2013 1,609,305
735,000 Landeskreditbank B-W, Sub. Note, 7.875%, 4/15/2004 800,783
2,000,000 Lehman Brothers Holdings, Inc., Bond, 6.20%,
1/15/2002 1,995,200
1,500,000 Merrill Lynch & Co., Inc., Note, 6.18%, 4/20/2004 1,502,535
2,000,000 Merrill Lynch & Co., Inc., Note, 6.55%, 8/1/2004 2,039,840
2,500,000 NationsBank Corp., Sub. Note, 6.80%, 3/15/2028 2,520,450
3,500,000 Norwest Financial, Inc., Sr. Note, 6.375%,
9/15/2002 3,527,335
3,000,000 Quebec, Province of, Deb., 9.375%, 4/1/1999 3,079,650
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Balanced Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--continued
FINANCE--CONTINUED
$ 615,000 Sears Roebuck Acceptance Corp., Medium Term Note,
7.03%, 6/4/2003 $ 634,304
1,550,000 Union Planters Corp., Sub. Note, 6.50%, 3/15/2018 1,551,101
------------
Total 41,671,195
------------
INDUSTRIAL SERVICES--0.5%
2,000,000 WMX Technologies, Inc., Note, 8.00%, 4/30/2004 2,138,160
------------
RETAIL TRADE--1.1%
3,980,000 Gap (The), Inc., Note, 6.90%, 9/15/2007 4,162,921
------------
UTILITIES--0.8%
1,660,000 National Fuel Gas Co., Note, 6.303%, 5/27/2008 1,667,985
1,500,000 Ontario Hydro, Sr. Note, 6.10%, 1/30/2008 1,498,935
------------
Total 3,166,920
------------
Total Corporate Bonds (identified cost $56,684,742) 57,541,047
------------
Mortgage Backed Securities--20.1%
FEDERAL HOME LOAN BANK--1.2%
3,600,000 5.87%, 10/22/1999 3,606,732
1,250,000 Discount Note, 9/10/1998 1,231,063
------------
Total 4,837,795
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--4.9%
207,877 6.50%, 12/1/2008 209,800
50,515 6.50%, 2/1/2009 50,939
625,510 6.50%, 3/1/2009 631,296
52,261 6.50%, 4/1/2009 52,745
263,034 6.50%, 6/1/2009 265,467
284,367 6.50%, 7/1/2010 287,236
10,000,000 Discount Note, 6/12/1998 9,983,300
8,000,000 Discount Note, 6/18/1998 7,979,360
------------
Total 19,460,143
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--11.1%
871,440 6.00%, 12/1/2010 861,906
1,484,411 6.00%, 4/1/2011 1,468,171
6,080,775 6.00%, 12/1/2012 6,008,535
6,000,000 6.57%, 8/22/2007 6,253,140
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
or Shares Value
- -----------------------------------------------------------------------------
<C> <S> <C>
Mortgage Backed Securities--continued
FEDERAL NATIONAL MORTGAGE ASSOCIATION--CONTINUED
$ 131,260 7.50%, 4/1/2007 $ 134,836
732,540 7.50%, 9/1/2022 754,509
249,596 8.00%, 6/1/2022 259,969
223,850 8.00%, 1/1/2023 233,015
23,276 8.50%, 8/1/2016 24,581
37,125 8.50%, 6/1/2024 38,830
452,317 8.50%, 7/1/2024 473,232
18,269 8.50%, 10/1/2024 19,108
467,958 8.50%, 12/1/2024 489,451
15,500,000 Discount Note, 6/12/1998 15,474,115
1,500,000 Discount Note, 6/15/1998 1,496,820
10,000,000 Discount Note, 6/17/1998 9,975,800
------------
Total 43,966,018
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--2.9%
953,641 6.50%, 10/15/2008 965,562
989,960 6.50%, 12/15/2012 1,000,473
998,621 6.50%, 2/15/2013 1,009,226
997,438 6.50%, 2/15/2013 1,008,031
987,950 6.50%, 2/15/2013 998,442
2,434,171 6.50%, 4/15/2024 2,431,883
674,493 7.00%, 5/15/2023 686,296
1,486,408 7.00%, 8/15/2023 1,512,420
343,301 7.00%, 8/15/2023 349,309
870,187 7.00%, 12/20/2025 882,700
352,809 7.50%, 3/15/2023 364,272
------------
Total 11,208,614
------------
Total Mortgage Backed Securities (identified cost
$79,035,326) 79,472,570
------------
Open End Investment Companies--1.2%
29,000 Blackrock 1998 Term Trust, Inc. 284,563
233,301 Blackrock 2001 Term Trust, Inc. 2,012,221
164,200 Blackrock Strategic Term Trust, Inc. 1,416,225
97,211 Blackrock Target Term Trust 917,429
------------
Total Open Ended Investment Companies (identified
cost $4,595,966) (at net asset value) 4,630,438
------------
U.S. Treasury Obligations--16.4%
U.S. TREASURY BILL--0.6%
2,250,000 6/18/1998 2,245,163
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Balanced Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<C> <S> <C>
U.S. Treasury Obligations--continued
U.S. TREASURY BOND--4.7%
$16,124,000 7.125%, 2/15/2023 $ 18,655,952
------------
U.S. TREASURY NOTES--11.1%
1,305,000 5.50%, 1/31/2003 1,299,702
1,475,000 5.75%, 8/15/2003 1,485,605
1,750,000 5.875%, 11/30/2001 1,764,490
4,200,000 6.50%, 10/15/2006 4,424,448
250,000 6.50%, 5/15/2005 262,423
11,125,000 6.875%, 8/31/1999 11,298,773
19,340,000 7.25%, 8/15/2004 20,968,815
2,530,000 8.00%, 5/15/2001 2,694,045
------------
Total 44,198,301
------------
Total U.S. Treasury Obligations (identified cost
$64,958,046) 65,099,416
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<C> <S> <C>
(a) Repurchase Agreement--4.2%
$16,770,056 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998,
due 6/1/1998 (at amortized cost) $ 16,770,056
------------
Total Investments (identified cost $365,189,219) $395,182,776
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Fixed Income Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Asset-Backed Securities--5.5%
FINANCE--5.5%
$ 3,575,000 American Express Credit Account Master Trust 1997-
1, Class A, 6.40%, 4/15/2005 $ 3,636,419
3,975,000 Chase Credit Card Master Trust, Class A, 6.30%,
4/15/2003 4,007,277
2,300,000 Circuit City Credit Card Master Trust 1995-1, Class
A, 6.375%, 8/15/2005 2,328,704
1,885,000 First USA Credit Card Master Trust 1997-6, Class A,
6.42%, 3/15/2005 1,917,384
------------
Total Asset-Backed Securities (identified cost
$11,754,601) 11,889,784
------------
Collateralized Mortgage Obligations--3.1%
FINANCE--3.1%
1,275,000 Deutsche Mortgage and Asset Receiving Corp., Series 1998-C1, Class
D, 7.23099995%, 6/15/2031 1,290,147
14,200,000 Deutsche Mortgage and Asset Receiving Corp., Series 1998-C1, Class
X, 1.254%, 6/15/2031 1,000,106
2,400,000 Federal National Mortgage Association, Series 1994- 1, Class L,
6.50%, 1/25/2014 2,443,488
2,000,000 Nomura Asset Securities Corp. 1998-D6, Series 1998-
D6, Class A3, 6.97908%, 3/17/2028 2,057,500
------------
Total Collateralized Mortgage Obligations
(identified cost $6,776,942) 6,791,241
------------
Corporate Bonds--37.4%
CHEMICAL & ALLIED PRODUCTS-- 0.5%
1,000,000 Du Pont (E.I.) de Nemours & Co., Unsecd. Note,
Series G, 6.47%, 9/26/2002 1,020,960
------------
FINANCE--28.1%
2,135,000 Abbey National Bank PLC, London, Sub., 6.69%,
10/17/2005 2,184,489
3,000,000 Associates Corp. of North America, Medium Term
Note, 6.00%, 3/15/1999 3,003,240
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--continued
FINANCE--CONTINUED
$ 3,000,000 Bankers Trust New York Corp., Sr. Note, 6.75%,
10/3/2001 $ 3,053,070
1,880,000 Bankers Trust New York Corp., Sub. Note, 7.375%,
5/1/2008 1,990,431
1,275,000 Bear Stearns Cos., Inc., Sr. Note, 6.50%, 8/1/2002 1,285,761
850,000 Beneficial Corp., Unsecd. Note, Series C, 10.00%,
1/12/2001 929,016
2,000,000 Caterpillar Financial Services Corp., Note, 6.50%,
2/1/2002 2,029,528
755,000 First Union Corp., Sub. Note, 6.824%, 8/1/2026 828,409
2,700,000 Ford Motor Credit Corp., Note, 7.25%, 5/15/1999 2,732,859
2,000,000 Hanson Overseas B.V., Sr. Note, 6.75%, 9/15/2005 2,048,340
1,500,000 Household Finance Corp., Sr. Note, 6.23%, 2/16/1999 1,502,640
3,750,000 IBM Credit Corp., Sr. Note, 5.79%, 3/20/2010 3,744,863
2,000,000 Ikon Capital, Inc., Note, 6.33%, 12/8/2000 2,007,750
2,000,000 Inter-American Development Bank, Deb., 8.875%,
6/1/2009 2,447,760
1,915,000 International Lease Finance Corp., Note, 6.97%,
1/10/2001 1,957,808
2,135,000 Landeskreditbank B-W, Sub. Note, 7.875%, 4/15/2004 2,326,083
2,665,000 Lehman Brothers Holdings, Inc., Note, 6.90%,
3/30/2001 2,718,324
1,000,000 Lehman Brothers Holdings, Inc., Sr. Note, 8.75%,
3/15/2005 1,124,970
2,835,000 Mellon Capital I, Company Guarantee, Series A,
7.72%, 12/1/2026 2,999,884
1,375,000 Mercantile Bancorporation, Inc., 6.80%, 6/15/2001 1,389,726
2,000,000 Merrill Lynch & Co., Inc., Bond, 6.75%, 6/1/2028 1,997,460
500,000 Merrill Lynch & Co., Inc., Medium Term Note, 8.00%,
5/20/2008 491,795
2,100,000 Merrill Lynch & Co., Inc., Note, 6.18%, 4/20/2004 2,103,549
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Fixed Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--continued
FINANCE--CONTINUED
$ 2,000,000 Merrill Lynch & Co., Inc., Sr. Note, Series B,
6.80%, 4/26/2001 $ 2,043,460
1,100,000 Metropolitan Life Ltd., 7.00%, 11/1/2005 1,135,079
2,090,000 Morgan Stanley Group, Inc., Note, 6.875%, 3/1/2007 2,161,290
2,000,000 Norwest Financial, Inc., Note, 6.375%, 12/1/2007 2,020,760
2,100,000 Salomon, Inc., Note, 6.375%, 10/1/2004 2,113,858
2,200,000 Union Planters Corp., Sub. Note, 6.50%, 3/15/2018 2,201,562
2,615,000 World Bank, Note, 5.00%, 11/28/2000 2,571,852
------------
Total 61,145,616
------------
FOOD PRODUCTS--2.0%
4,250,000 Heinz (H.J.) Co., Sr. Unsub., 7.50%, 4/26/2000 4,356,250
------------
MACHINERY & EQUIPMENT--3.1%
4,000,000 Baker Hughes, Inc., Note, 7.625%, 2/15/1999 4,044,120
2,670,000 Ingersoll-Rand Co., Note, 6.13%, 11/18/2027 2,724,436
------------
Total 6,768,556
------------
PRODUCER MANUFACTURING--1.1%
240,000 Armstrong World Industries, Inc., Deb., 9.75%,
4/15/2008 298,949
2,038,000 U.S.G. Corp., Deb., 8.75%, 3/1/2017 2,116,137
------------
Total 2,415,086
------------
RETAIL TRADE--0.7%
1,405,000 Penney (J.C.) Co., Inc., Note, 7.60%, 4/1/2007 1,516,346
------------
UTILITIES--1.9%
3,000,000 National Fuel Gas Co., Note, 6.303%, 5/27/2008 3,014,430
1,135,000 Ontario Hydro, Sr. Note, 6.10%, 1/30/2008 1,134,194
------------
Total 4,148,624
------------
Total Corporate Bonds (identified cost $80,300,460) 81,371,438
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<C> <S> <C>
Foreign Bonds--0.9%
FINANCE--0.9%
$ 1,000,000 Israel AID, 5.625%, 9/15/2003 $ 995,000
1,005,000 Province of Manitoba, Local Gov't. Guarantee,
9.00%, 12/15/2000 1,074,797
------------
Total Foreign Bonds (identified cost $2,032,808) 2,069,797
------------
U.S. Government Agencies--21.4%
FEDERAL HOME LOAN MORTGAGE CORPORATION--1.8%
2,921 12.50%, 2/1/2010 3,381
6,957 12.50%, 7/1/2011 8,100
3,957 12.50%, 3/1/2014 4,650
2,136 11.00%, 10/1/2010 2,388
13,926 11.00%, 10/1/2015 15,625
23,297 9.50%, 7/1/2016 24,978
758 9.50%, 2/1/2019 814
1,923 9.50%, 2/1/2019 2,065
7,433 9.00%, 5/15/2016 8,042
50 9.00%, 9/1/2017 54
1,157 9.00%, 1/1/2019 1,235
1,533 9.00%, 1/1/2019 1,638
5,688 8.50%, 7/1/2017 6,019
1,084 8.50%, 8/1/2017 1,147
18,881 8.00%, 1/1/2008 19,641
14,716 8.00%, 12/1/2008 15,221
787 8.00%, 1/1/2009 817
8,144 8.00%, 2/1/2009 8,424
36,074 8.00%, 4/1/2009 37,426
1,775 8.00%, 7/1/2017 1,867
2,488 8.00%, 1/1/2019 2,616
47,256 7.50%, 9/1/2007 48,827
131,694 7.50%, 2/1/2023 135,521
100,794 7.50%, 2/1/2023 103,723
164,046 7.50%, 2/1/2023 168,813
153,487 7.50%, 2/1/2023 157,947
191,654 7.50%, 2/1/2023 197,223
604,540 7.00%, 11/15/2007 618,801
637,522 6.50%, 4/1/2009 643,419
1,714,896 6.50%, 11/1/2011 1,733,640
------------
Total 3,974,062
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--15.1%
194 12.50%, 9/1/2013 224
1,515 9.50%, 7/1/2016 1,628
711 9.50%, 7/1/2016 768
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Fixed Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies--continued
FEDERAL NATIONAL MORTGAGE ASSOCIATION--CONTINUED
$ 197 9.50%, 7/1/2016 $ 212
318 9.00%, 1/1/2017 341
439 8.50%, 2/1/2017 463
511 8.50%, 2/1/2019 539
3,223 8.00%, 11/1/2008 3,363
6,914 8.00%, 1/1/2009 7,213
27,568 8.00%, 9/1/2009 28,878
330,851 7.50%, 1/1/2023 341,283
166,965 7.50%, 1/1/2023 171,869
181,391 7.50%, 1/1/2023 186,830
1,436,082 7.50%, 5/1/2026 1,476,321
3,025,000 7.00%, 4/1/2028 3,067,532
3,151,757 6.50%, 9/1/2012 3,169,470
3,538,477 6.50%, 9/1/2012 3,558,363
2,997,632 6.29%, 4/1/2008 2,984,052
1,996,478 6.10%, 3/1/2008 1,990,249
1,322,843 6.00%, 1/1/2009 1,313,742
1,663,845 6.00%, 4/1/2011 1,645,642
8,415,004 6.00%, 4/1/2013 8,315,034
4,550,000 5.625%, 3/15/2001 4,539,353
------------
Total 32,803,369
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--4.5%
8,357 12.25%, 8/15/2013 9,440
4,279 12.25%, 5/15/2014 4,845
5,966 11.00%, 9/15/2015 6,743
6,826 11.00%, 9/15/2015 7,672
1,041 11.00%, 11/15/2015 1,177
111 11.00%, 11/15/2015 126
2,173 10.50%, 10/15/2000 2,250
1,297 10.50%, 11/15/2000 1,343
600 10.50%, 11/15/2000 621
5,915 10.50%, 7/15/2017 6,592
10,309 10.50%, 8/15/2017 11,475
1,666 10.50%, 8/15/2017 1,843
522 9.50%, 6/15/2001 535
2,158 9.50%, 5/15/2016 2,343
11,173 9.50%, 5/15/2016 12,130
1,278 9.50%, 5/15/2016 1,387
46,502 9.50%, 6/15/2016 50,483
8,899 9.50%, 7/15/2016 9,661
2,853 9.50%, 7/15/2016 3,097
141,859 9.50%, 12/15/2016 154,003
16,377 9.50%, 9/15/2017 17,771
12,447 9.50%, 10/15/2017 13,509
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- -----------------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies--continued
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--CONTINUED
$ 2,743 9.50%, 7/15/2018 $ 2,975
407 9.50%, 2/15/2019 442
10,967 9.50%, 4/15/2020 11,884
27,648 9.50%, 4/15/2020 29,959
23,284 9.50%, 4/15/2020 25,231
25,145 9.50%, 6/15/2020 27,248
31,793 9.50%, 9/15/2020 34,452
15,576 9.50%, 10/15/2020 16,879
9,757 9.50%, 10/15/2020 10,573
40,862 9.50%, 10/15/2020 44,278
10,104 9.50%, 11/15/2020 10,949
15,138 9.50%, 11/15/2020 16,403
22,323 9.00%, 5/15/2016 24,150
25,612 9.00%, 5/15/2016 27,709
18,328 9.00%, 6/15/2016 19,746
857 9.00%, 6/15/2016 928
22,587 9.00%, 6/15/2016 24,436
14,551 9.00%, 7/15/2016 15,742
1,589 9.00%, 8/15/2016 1,719
117 9.00%, 8/15/2016 127
1,066 9.00%, 9/15/2016 1,154
31,336 9.00%, 9/15/2016 33,901
11,246 9.00%, 9/15/2016 12,167
21,080 9.00%, 9/15/2016 22,805
22,560 9.00%, 9/15/2016 24,407
42,927 9.00%, 10/15/2016 46,442
279 9.00%, 10/15/2016 301
30,949 9.00%, 10/15/2016 33,483
37,667 9.00%, 11/15/2016 40,751
3,551 9.00%, 12/15/2016 3,841
32,344 9.00%, 1/15/2017 34,999
27,044 9.00%, 1/15/2017 29,264
38,645 9.00%, 1/15/2017 41,817
4,477 9.00%, 1/15/2017 4,844
62,680 9.00%, 1/15/2017 67,824
19,757 9.00%, 5/15/2017 21,379
13,228 9.00%, 6/15/2017 14,314
485 9.00%, 7/15/2017 525
7,946 9.00%, 4/15/2018 8,600
31,663 9.00%, 5/15/2018 34,269
21,060 9.00%, 6/15/2018 22,793
33,364 9.00%, 10/15/2019 36,117
33,245 9.00%, 11/15/2019 35,988
44,990 9.00%, 12/15/2019 48,702
37,361 9.00%, 1/15/2020 40,384
26,403 9.00%, 11/15/2020 28,540
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Fixed Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies--continued
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--CONTINUED
$ 36,879 9.00%, 1/15/2021 $ 39,806
33,763 9.00%, 1/15/2021 36,443
47,765 9.00%, 1/15/2021 51,556
68,601 9.00%, 1/15/2021 74,045
21,688 9.00%, 1/15/2021 23,409
18,186 8.50%, 5/15/2016 19,421
91,076 8.50%, 6/15/2016 97,252
34,083 8.50%, 6/15/2016 36,395
9,914 8.50%, 6/15/2016 10,586
22,029 8.50%, 7/15/2016 23,524
5,011 8.50%, 6/15/2017 5,345
2,017 8.50%, 9/15/2017 2,152
39,847 8.50%, 5/15/2021 42,324
14,560 8.50%, 9/15/2021 15,465
74,550 8.50%, 11/15/2021 79,186
20,700 8.50%, 11/15/2021 21,987
39,570 8.50%, 11/15/2021 42,031
60,375 8.50%, 12/15/2021 64,129
12,520 8.50%, 4/15/2022 13,259
91,252 8.50%, 5/15/2022 96,641
44,016 8.50%, 6/15/2022 46,615
15,191 8.00%, 2/15/2017 15,991
9,726 8.00%, 6/15/2017 10,238
99,437 8.00%, 4/15/2022 103,818
285,640 8.00%, 5/15/2022 298,226
99,494 8.00%, 9/15/2022 103,878
136,833 8.00%, 9/15/2022 142,861
143,227 7.50%, 2/15/2022 147,926
128,412 7.50%, 2/15/2022 132,625
175,447 7.50%, 8/15/2022 181,203
150,387 7.50%, 10/15/2022 155,322
144,775 7.50%, 11/15/2022 149,525
186,910 7.50%, 12/15/2022 193,042
95,378 7.50%, 12/15/2022 98,508
145,474 7.50%, 12/15/2022 150,247
160,439 7.50%, 12/15/2022 165,703
139,537 7.50%, 2/15/2023 144,070
123,964 7.50%, 2/15/2023 127,992
75,835 7.50%, 3/15/2023 78,299
984,258 7.50%, 1/15/2024 1,015,321
732,105 7.00%, 6/15/2023 744,917
1,331,494 6.50%, 5/15/2009 1,349,802
835,794 6.50%, 5/15/2011 847,804
1,267,377 6.00%, 5/15/2009 1,264,995
------------
Total 9,818,371
------------
Total U.S. Government Agencies (identified cost
$46,210,633) 46,595,802
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
or Shares Value
- -------------------------------------------------------------------------------
<C> <S> <C>
U.S. Treasury Obligations--21.6%
U.S. TREASURY BONDS--12.8%
$ 7,050,000 6.00%, 2/15/2026 $ 7,155,750
13,470,000 6.75%, 8/15/2026 20,631,544
------------
Total 27,787,294
------------
U.S. TREASURY NOTES--8.8%
550,000 5.375%, 2/15/2001 547,338
740,000 5.50%, 1/31/2003 736,996
4,175,000 5.75%, 4/30/2003 4,203,682
1,630,000 5.75%, 8/15/2003 1,641,720
1,000,000 5.875%, 11/15/2005 1,012,810
2,000,000 5.875%, 2/15/2004 2,027,500
1,340,000 6.00%, 6/30/1999 1,346,486
1,255,000 6.25%, 8/31/2002 1,284,216
1,150,000 6.50%, 5/15/2005 1,207,144
500,000 6.50%, 8/15/2005 524,845
2,000,000 6.625%, 6/30/2001 2,057,180
2,355,000 7.50%, 2/15/2005 2,596,388
------------
Total 19,186,305
------------
Total U.S. Treasury Obligations (identified cost
$45,919,535) 46,973,599
------------
OPEN END INVESTMENT COMPANIES--7.3%
153,200 2002 Target Term Trust, Inc. 2,135,225
280,600 Blackrock 1998 Term Trust, Inc. 2,753,387
46,700 Blackrock 1999 Term Trust 446,569
357,200 Blackrock 2001 Term Trust, Inc. 3,080,850
387,800 Blackrock Strategic Term Trust, Inc. 3,344,775
442,000 Blackrock Target Term Trust 4,171,375
------------
Total Open Ended Investment Companies (at net asset
value) (identified cost $15,626,440) 15,932,181
------------
(a) Repurchase Agreement--6.3%
$13,651,247 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998,
due 6/1/1998 (at amortized cost) 13,651,247
------------
Total Investments (identified cost $222,272,666) $225,275,089
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Intermediate Fixed Income Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--35.7%
BASIC MATERIALS--1.1%
$ 1,000,000 Monsanto Co., Note, 6.00%, 7/1/2000 $ 1,002,410
-----------
CAPITAL GOODS--1.1%
1,000,000 Deere (John) Capital Corp., Note, 6.30%, 6/1/1999 1,003,510
-----------
CONSUMER CYCLICAL--1.1%
1,000,000 Ford Motor Co., Note, 7.25%, 10/1/2008 1,070,540
-----------
CONSUMER NON-DURABLES--1.1%
1,000,000 Philip Morris Cos., Inc., 7.65%, 7/1/2008 1,065,820
-----------
FINANCE--15.0%
1,000,000 BankBoston, N.A., Sub. Note, 6.50%, 12/19/2007 1,000,360
1,000,000 CIGNA Corp., Note, 7.40%, 5/15/2007 1,059,710
500,000 Ford Motor Credit Corp., Unsecd. Note, 5.625%,
1/15/1999 498,855
2,350,000 Ford Motor Credit Corp., Unsecd. Note, 6.25%,
11/8/2000 2,364,006
1,000,000 J.P. Morgan & Co., Inc., Sub. Note, 6.70%, 11/1/2007 1,023,120
1,000,000 J.P. Morgan & Co., Inc., Sub. Note, 7.625%,
9/15/2004 1,073,390
1,000,000 Lehman Brothers Holdings, Inc., Note, 6.89%,
10/10/2000 1,017,040
1,000,000 Lehman Brothers Holdings, Inc., Note, 7.375%,
5/15/2004 1,048,860
1,000,000 Morgan Guaranty Trust Co., New York, 5.75%,
10/8/1999 996,790
1,000,000 Pitney Bowes Credit Corp., Medium Term Note, 6.78%,
7/16/2001 1,026,560
1,000,000 Sears Roebuck Acceptance Corp., 6.95%, 5/15/2002 1,026,100
1,000,000 State Street Boston Corp., 5.95%, 9/15/2003 991,260
1,000,000 Union Planters Corp., Sub. Note, 6.50%, 3/15/2018 1,000,710
-----------
Total 14,126,761
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--continued
FINANCIAL SERVICES--8.1%
$ 1,000,000 Donaldson, Lufkin and Jenrette Securities Corp.,
Note, 6.875%, 11/1/2005 $ 1,025,330
500,000 Household International, Inc., Sr. Note, 6.00%,
3/15/1999 500,530
1,000,000 Merrill Lynch & Co., Inc., Note, 6.00%, 2/12/2003 995,400
1,000,000 Merrill Lynch & Co., Inc., Note, 6.55%, 8/1/2004 1,019,920
1,000,000 PaineWebber Group, Inc., Sr. Note, 6.75%, 2/1/2006 1,011,270
1,000,000 Salomon, Inc., Note, 6.625%, 11/15/2003 1,015,950
1,000,000 Salomon, Inc., Sr. Note, 6.25%, 10/1/1999 1,003,070
1,000,000 Salomon, Inc., Sr. Note, 7.30%, 5/15/2002 1,038,860
-----------
Total 7,610,330
-----------
FOOD PRODUCTS--1.1%
1,000,000 Heinz (H.J.) Co., Unsecd. Note, 6.75%, 10/15/1999 1,011,660
-----------
HEALTHCARE--1.1%
1,000,000 Bristol-Myers Squibb Co., Deb., 6.80%, 11/15/2026 1,062,250
-----------
RECREATION--2.8%
2,500,000 Disney (Walt) Co., Bond, Series B, 6.75%, 3/30/2006 2,604,275
-----------
RETAIL--1.0%
1,000,000 Wal-Mart Stores, Inc., Note, 5.875%, 10/15/2005 992,060
-----------
TRANSPORTATION--2.2%
1,000,000 Burlington Northern, Inc., Equip. Trust, 7.46%,
9/24/2011 1,098,000
1,000,000 CSX Corp., Deb., 7.05%, 5/1/2002 1,024,010
-----------
Total 2,122,010
-----------
Total Corporate Bonds (identified cost $32,848,981) 33,671,626
-----------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Intermediate Fixed Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- --------------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies--5.2%
FEDERAL FARM CREDIT BANK--1.1%
$ 1,000,000 8.65%, 10/1/1999 $ 1,037,030
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--4.1%
1,000,000 8.70%, 6/10/1999 1,029,220
150,000 6.55%, 9/12/2005 155,789
2,625,000 6.35%, 6/10/2005 2,691,859
-----------
Total 3,876,868
-----------
Total U.S. Government Agencies (identified cost
$4,828,168) 4,913,898
-----------
U.S. Treasury Obligations--51.1%
U.S. TREASURY BONDS--25.6%
15,000,000 6.625%, 2/15/2027 2,829,900
6,000,000 6.625%, 2/15/2027 6,615,000
2,100,000 7.125%, 2/15/2023 2,429,763
3,000,000 7.25%, 5/15/2016 3,453,750
6,400,000 7.50%, 11/15/2024 7,760,000
1,000,000 7.50%, 5/15/2002 1,065,940
-----------
Total 24,154,353
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
U.S. Treasury Obligations--continued
U.S. TREASURY NOTES--25.5%
$ 1,000,000 6.125%, 8/15/2007 $ 1,031,870
1,000,000 6.625%, 4/30/2002 1,034,690
1,000,000 7.125%, 2/29/2000 1,025,620
1,500,000 7.50%, 11/15/2001 1,587,885
2,300,000 7.75%, 1/31/2000 2,378,338
2,500,000 7.75%, 11/30/1999 2,577,350
3,100,000 7.875%, 11/15/2004 3,470,542
1,000,000 7.875%, 8/15/2001 1,065,620
9,500,000 9.125%, 5/15/1999 9,810,270
-----------
Total 23,982,185
-----------
Total U.S. Treasury Obligations (identified cost
$44,358,552) 48,136,538
-----------
(a) Repurchase Agreement--7.0%
6,554,398 Goldman Sachs Group, LP, 5.50%, dated 5/29/1998, due
6/1/1998 (at amortized cost) 6,554,398
-----------
Total Investments (identified cost $88,590,099) $93,276,460
-----------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Short Term Fixed Income Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--52.1%
BANKING & FINANCE--2.5%
$ 2,500,000 NationsBank Corp., 5.75%, 3/15/2001 $ 2,485,075
------------
CONSUMER NON-DURABLES--2.5%
2,500,000 Walt Disney Co., 6.25%, 6/21/1999 2,505,850
------------
FINANCE--28.0%
3,000,000 Associates Corp. of North America, 6.00%, 3/15/1999 3,003,240
2,500,000 Banc One Corp., 6.25%, 9/1/2000 2,522,850
1,000,000 First National Bank of Chicago, 7.00%, 5/8/2000 1,014,100
4,000,000 General Electric Capital Corp. Floating Rate Note,
6.66% 4,050,080
2,500,000 General Motors Acceptance Corp., 5.63%, 2/25/2000 2,479,500
3,500,000 Household Finance Corp., 6.81%, 5/25/2000 3,545,591
2,750,000 Lehman Brothers Holdings, Inc., 6.70%, 1/24/2000 2,775,218
1,000,000 Morgan Stanley Group, Inc., 5.625%, 3/1/1999 997,500
2,000,000 Norwest Corp., 6.25%, 4/15/1999 2,007,520
2,000,000 Norwest Corp., 6.75%, 5/12/2000 2,030,680
4,000,000 Sears Roebuck Acceptance Corp., 6.19%, 2/15/2000 4,004,648
------------
Total 28,430,927
------------
FINANCIAL SERVICES--4.0%
4,000,000 Merrill Lynch & Co., Inc., 6.02%, 5/11/2001 3,999,908
------------
FOOD PRODUCTS--3.0%
3,000,000 Heinz (H.J.) Co., 7.50%, 4/26/2000 3,075,000
------------
HEALTH SERVICES--2.5%
2,500,000 McKesson Corp., 6.60%, 3/1/2000 2,526,750
------------
HEALTH TECHNOLOGY--2.5%
2,500,000 American Home Products Corp., 7.70%, 2/15/2000 2,570,875
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
or Shares Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds--continued
TELECOMMUNICATIONS--5.1%
$ 5,000,000 AT&T Corp., 8.25%, 1/11/2000 $ 5,171,850
------------
UTILITIES-ELECTRIC--2.0%
2,000,000 Kansas City Power And Light Co., 6.37%, 10/15/1999 2,010,400
------------
Total Corporate Bonds (identified cost $52,636,410) 52,776,635
------------
U.S. Government Agencies--8.8%
FEDERAL NATIONAL MORTGAGE ASSOCIATION--8.8%
5,600,000 5.625%, 3/15/2001 5,586,896
FEDERAL NATIONAL MORTGAGE ASSOCIATION--REMIC--8.8%
3,397,713 5.85%, 7/25/2000 3,382,830
------------
Total U.S. Government Agencies (identified cost
$8,956,614) 8,969,726
------------
U.S. Treasury Obligations--33.1%
U.S. TREASURY NOTES--33.1%
2,000,000 5.625%, 2/28/2001 2,003,120
11,000,000 (e)5.75%, 4/30/2003 11,123,750
20,000,000 6.25%, 8/31/2002 20,465,600
------------
Total U.S. Treasury Obligations (identified cost
$33,533,649) 33,592,470
------------
Open End Investment Companies--3.4%
285,301 Black Rock 2,728,191
75,978 Blackrock 1998 Term Trust, Inc. 745,534
------------
Total Open Ended Investment Companies (at net asset
value) (identified cost $3,385,201) 3,473,725
------------
(a) Repurchase Agreement--12.4%
12,530,809 Goldman Sachs Group, LP, 5.500%, dated 5/29/1998,
due 6/1/1998 (at amortized cost) 12,530,809
------------
Total Investments (identified cost $111,042,683) $111,343,365
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Georgia Municipal Bond Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--97.1%
GEORGIA--97.1%
$ 600,000 Americus-Sumter County, GA Hospital
Authority, Revenue Bonds, 5.125% (AMBAC INS),
12/1/2018 Aaa $ 595,860
100,000 Atlanta, GA Downtown Development Authority,
Refunding Revenue Bonds, 6.25% (Original
Issue Yield: 6.435%), 10/1/2016 AA 108,635
200,000 Atlanta, GA, GO UT (Series A), 6.125%
(Original Issue Yield: 6.18%), 12/1/2023 AA 218,772
510,000 Atlanta, GA, Urban Residential Finance
Authority, Dorm Facility Revenue Refunding
Bonds, 5.70% (Morehouse College)/(MBIA INS),
12/1/2010 AAA 553,059
80,000 Brunswick, GA, Water & Sewer Refunding
Revenue Bonds, 6.10% (MBIA INS)/(Original
Issue Yield: 6.27%), 10/1/2019 AAA 92,021
500,000 Burke County, GA Development Authority, PCR
(Series 6), 4.375% (Georgia Power Co.)/(AMBAC
INS), 11/1/2000 AAA 504,850
75,000 Burke County, GA Development Authority, PCR
Bonds, 7.50% (Oglethorpe Power Corp.)/(MBIA
INS), 1/1/2003 AAA 81,140
50,000 Chatham County, GA School District, GO UT,
6.75% (MBIA INS), 8/1/2018 AAA 56,838
790,000 Clayton County & Clayton County, GA Water
Authority, Revenue Refunding Bonds, 5.20%
(MBIA INS)/(Original Issue Yield: 5.30%),
5/1/2005 AAA 832,636
100,000 Cobb County, GA Solid Waste Management
Authority, Revenue Bonds, 6.35%, 1/1/2009 AAA 112,976
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
GEORGIA--CONTINUED
$1,000,000 Cobb County, GA, Refunding Revenue Bonds
(Series A), 5.20% (Original Issue Yield:
5.25%), 7/1/2005 AA $ 1,055,080
500,000 Coweta County, GA School System, GO UT Bonds,
5.00%, 8/1/2009 AA- 521,285
1,000,000 Dalton, GA, Refunding Revenue Bonds, 5.00%
(MBIA INS), 1/1/2004 AAA 1,040,960
200,000 De Kalb County, GA School District, GO UT
Bonds (Series A), 6.25%, 7/1/2011 AA 231,742
1,000,000 De Kalb County, GA Water & Sewer, Refunding
Revenue Bonds, 5.125% (Original Issue Yield:
5.25%), 10/1/2011 AA 1,023,630
500,000 De Kalb County, GA Water & Sewer, Refunding Revenue Bonds, 5.25%
(Original Issue Yield:
5.42%), 10/1/2023 AA 502,080
150,000 De Kalb County, GA, GO UT Bonds, 5.50%
(Original Issue Yield: 5.60%), 1/1/2016 AA+ 155,426
500,000 De Kalb County, GA, Refunding Revenue Bonds
Series A, 5.375% (Emory University ),
11/1/2005 AA 535,140
100,000 Decatur, GA Housing Authority, Mortgage
Refunding Revenue Bonds, 6.45% (FHA and MBIA
INS)/(Original Issue Yield: 6.524%), 7/1/2025 AAA 104,906
500,000 Downtown Savannah, GA, Refunding Revenue
Bonds (Series A), 4.95% (Original Issue
Yield: 5.05%), 1/1/2006 AA 517,585
120,000 Fayette County, GA School District, GO UT
Bonds, 6.125% (Original Issue Yield: 6.30%),
3/1/2015 A+ 130,744
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Georgia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
GEORGIA--CONTINUED
$ 160,000 Fayette County, GA, Water Revenue Bonds
(Series B), 6.20% (FGIC INS)/(Original Issue
Yield: 6.30%), 10/1/2022 AAA $ 176,005
60,000 Forsyth County, GA School District, GO UT
Bonds, 6.70%, 7/1/2012 AA- 72,122
25,000 Fulton County, GA School District, GO UT
Bonds, 5.60% (Original Issue Yield: 5.65%),
1/1/2011 AA 26,595
300,000 Fulton County, GA Water & Sewage System,
Revenue Refunding Bonds, 5.625% (FGIC
INS)/(Original Issue Yield: 5.75%), 1/1/2001 AAA 312,090
475,000 Fulton County, GA, Water and Sewer Refunding
Revenue Bonds, 6.25% (FGIC INS)/(Original
Issue Yield: 6.425%), 1/1/2007 AAA 538,356
500,000 Fulton De Kalb, GA Hospital Authority,
Revenue Bonds, 5.50% (MBIA INS)/(Original
Issue Yield: 5.85%), 1/1/2012 AAA 521,410
400,000 Gainsville & Hall County, GA Hospital
Authority, Revenue Anticipation Certificates,
5.75% (Northeast GA Healthcare Project)/(MBIA
INS)/(Original Issue Yield: 5.98%), 10/1/2017 AAA 422,136
300,000 Georgia Medical Center Hospital Authority,
Refunding Revenue Anticipation Certificates
(Series C), 5.90% (Columbus Regional
Healthcare System)/(MBIA INS)/(Original Issue
Yield: 5.95%), 8/1/2001 AAA 316,695
285,000 Georgia Municipal Electric Authority,
Electric Power Revenue Refunding Bonds
(Series B), 6.125% (FGIC INS)/(Original Issue
Yield: 6.30%), 1/1/2014 AAA 307,410
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
GEORGIA--CONTINUED
$ 500,000 Georgia State HFA, Refunding Revenue SFM Bonds (Subser A-2),
6.55% (FHA/VA mtgs GTD),
12/1/2027 AA+ $ 536,755
200,000 Georgia State, GO UT Bonds (Series B), 7.20%,
3/1/2006 AAA 237,686
500,000 Georgia State, GO UT Bonds (Series D), 6.80%,
8/1/2000 AAA 530,485
200,000 Georgia State, GO UT Bonds (Series F), 6.50%,
12/1/2007 AAA 233,356
430,000 Georgia State, GO UT, 6.25%, 4/1/2007 AAA 489,731
500,000 Georgia State, GO UT, 6.50% (Original Issue
Yield: 6.63%), 4/1/2006 AAA 572,865
655,000 Gwinnett County, GA School District, Series
A, 5.125% (Original Issue Yield: 5.35%),
2/1/2011 AA+ 675,312
100,000 Gwinnett County, GA, Water & Sewage Utility
Certificates of Participation, 8.40%,
8/1/2001 AAA 112,965
1,000,000 Henry County, GA & Henry County Water & Sewer
Authority, Revenue Bond, 5.00% (AMBAC
INS)/(Original Issue Yield: 5.32%), 2/1/2026 AAA 977,930
500,000 Houston County, GA School District, GO UT
Bond, 5.50% (MBIA INS), 3/1/2016 AAA 510,210
400,000 Marietta, GA Development Authority, Revenue Bonds (Series B), 5.75%
(Life College, Inc.)/(CGIC LOC)/(Original Issue Yield:
5.91%), 9/1/2014 AAA 427,480
500,000 Meriwether County, GA School District, GO UT
Bonds, 7.00% (FSA INS), 2/1/2007 AAA 593,240
400,000 Newton County School District, GA, GO UT Bonds, 5.625% (FGIC
INS)/(Original Issue
Yield: 5.70%), 2/1/2013 AAA 426,540
100,000 Peach County, GA School District, GO UT
Bonds, 6.30% (MBIA INS)/(Original Issue
Yield: 6.35%), 2/1/2014 AAA 111,754
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Georgia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
GEORGIA--CONTINUED
$ 250,000 Private Colleges & Universities Facilities of GA, Refunding
Revenue Bonds, 5.625% (Agnes Scott College Project)/(Original Issue
Yield:
5.70%), 6/1/2023 AA- $ 261,543
685,000 Richmond County, GA Water & Sewage, Refunding
Revenue Bonds, 5.25% (FGIC INS)/(Original
Issue Yield: 5.491%), 10/1/2021 AAA 685,544
200,000 Rockdale County, GA School District, GO UT
Bonds, 6.30%, 1/1/2007 A1 223,181
300,000 Savannah, GA EDA, Revenue Bonds Weekly VRDNs
(Georgia Kaolin Terminals, Inc.)/(Colonial
Group, Inc. LOC) NR 300,000
150,000 Savannah, GA Resources Recovery Development
Authority, Refunding Revenue Bonds, 5.95%
(Savannah Energy Systems Co.), 12/1/2002 A+ 159,542
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Credit
or shares Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
GEORGIA--CONTINUED
$ 335,000 Savannah, GA Resources Recovery Development
Authority, Revenue Bonds, 6.30% (Savannah
Energy Systems Co.), 12/1/2006 A+ $ 359,020
110,000 Savannah, GA Water & Sewage, Revenue Bonds,
5.10% (Original Issue Yield: 5.55%),
12/1/2010 AA- 112,812
-----------
Long-Term Municipals (identified cost
$19,270,236) 20,206,135
-----------
Short-Term Municipal--2.4%
GEORGIA--2.4%
500,000 Whitfield County, GA Residential Care
Facility (First Union National Bank INS),
11/1/2025 (at amortized cost) A+ 500,000
-----------
Open-End Investment Company--0.0%
550 AIM Stico Tax-Free Cash 550
710 Dreyfus Tax Exempt 710
516 Fidelity Tax Exempt Money Market 516
-----------
Total Open-Ended Investment Companies (at net
asset value) 1,776
-----------
Total Investments (identified cost
$19,770,385) $20,707,911
-----------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia North Carolina Municipal Bond Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipal Securities--91.5%
NORTH CAROLINA--91.5%
$1,030,000 Buncombe County, NC, GO UT Bonds, 4.90%
(Original Issue Yield: 5.15%), 4/1/2014 AA $ 1,035,809
190,000 Buncombe County, NC, GO UT Bonds, 5.20%,
5/1/2008 AA 199,808
1,400,000 Carteret County, NC, GO UT Bonds, 5.40% (MBIA
INS)/(Original Issue Yield: 5.60%), 5/1/2015 AAA 1,463,588
1,000,000 Centennial Authority, NC, Revenue Bonds,
4.85% (FSA INS)/(Original Issue Yield:
4.95%), 9/1/2009 AAA 1,022,060
100,000 Charlotte, NC, GO UT Bonds, 5.70%, 2/1/2007 AAA 108,047
1,500,000 Charlotte, NC, GO UT Refunding Bonds, 5.00%
(Original Issue Yield: 5.05%), 2/1/2008 AAA 1,574,415
1,250,000 Charlotte, NC, GO UT Refunding Bonds, 5.00%
(Original Issue Yield: 5.10%), 2/1/2009 AAA 1,311,625
840,000 Charlotte, NC, GO UT Refunding Bonds, 5.00%
(Original Issue Yield: 5.15%), 2/1/2012 AAA 867,728
900,000 Charlotte, NC, GO UT Water & Sewer Bonds
(Series A), 5.30%, 4/1/2008 AAA 959,013
960,000 Charlotte-Mecklenburg Hospital Authority, NC,
Health System Revenue Refunding Bonds, 5.75%
(Original Issue Yield: 6.498%), 1/1/2012 AA 1,018,310
1,000,000 Charlotte-Mecklenburg Hospital Authority, NC,
Revenue Bonds, 5.60% (Original Issue Yield:
5.70%), 1/15/2009 AA 1,085,090
345,000 Concord, NC, Certificate of Particiapation,
5.60% (MBIA INS)/(Original Issue Yield:
5.70%), 6/1/2005 AAA 369,298
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$ 445,000 Concord, NC, Certificate of Participation,
5.40% (MBIA INS)/(Original Issue Yield:
5.50%), 6/1/2003 AAA $ 468,469
210,000 Cumberland County, NC Hospital Facilities,
Revenue Bonds, 6.00% (MBIA INS)/(Original
Issue Yield: 6.84%), 10/1/2021 AAA 219,320
100,000 Cumberland County, NC, Certificate of
Participation (Series A), 6.375% (Cumberland
County, NC Civic Center Project)/(AMBAC
INS)/(Original Issue Yield: 6.50%), 12/1/2010 AAA 111,730
100,000 Cumberland County, NC, GO UT, 5.70% (MBIA
INS)/(Original Issue Yield: 5.70%), 2/1/2006 AAA 107,909
615,000 Currituck County, NC, GO UT Bonds, 5.40%
(MBIA INS), 4/1/2009 AAA 657,060
110,000 Dare County, NC, GO UT Refunding Bonds, 5.00%
(MBIA INS), 5/1/2010 AAA 113,772
100,000 Durham County, NC, GO UT Bonds, 5.75%
(Original Issue Yield: 5.95%), 2/1/2009 AAA 107,147
50,000 Durham County, NC, GO UT Bonds, 5.80%
(Original Issue Yield: 6.00%), 4/1/2010 AAA 54,424
1,200,000 Durham County, NC, GO UT, 5.40%, 2/1/1999 AAA 1,213,836
50,000 Durham, NC Water & Sewer Utility System, Revenue Bonds, 5.80%
(Original Issue Yield:
5.85%), 12/1/2003 AA 54,075
100,000 Durham, NC, GO UT Revenue Bonds, 5.80%
(Original Issue Yield: 5.95%), 2/1/2012 AAA 108,791
100,000 East Carolina University, NC, Revenue Bonds,
5.50% (Original Issue Yield: 5.60%), 5/1/2018 A 101,663
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia North Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$1,500,000 Fayetteville, NC Public Works Commission,
Refunding Revenue Bonds, 4.75% (FGIC
INS)/(Original Issue Yield: 5.23%), 3/1/2014 AAA $ 1,468,935
1,000,000 Forsyth County, NC, GO UT, 4.75%, 2/1/2005 AAA 1,030,490
500,000 Franklin County, NC, Certificates of Participation, 6.10% (Jail &
School Project)/(FGIC INS)/(Original Issue Yield:
6.20%), 6/1/2003 AAA 542,485
320,000 Fremont, NC Housing Development Corp., First
Lien Revenue Refunding Bonds, 6.75% (Torhunta
Apts)/(Federal National Mortgage Association
COL), 7/15/2022 Aaa 336,906
100,000 Gastonia, NC Combined Utilities System,
Revenue Bonds, 6.00% (MBIA INS)/(Original
Issue Yield: 6.10%), 5/1/2014 AAA 109,146
500,000 Gastonia, NC, GO UT Bonds, 5.30% (FGIC
INS)/(Original Issue Yield: 5.40%), 6/1/2009 AAA 531,750
1,000,000 Greensboro, NC , Certificate of Participation
(Series A), 5.625% (Original Issue Yield:
6.05%), 12/1/2015 AA 1,058,980
105,000 Greensboro, NC , Certificates of Participation, 6.65% (Coliseum
Arena Expansion Project)/(Original Issue Yield:
6.70%), 12/1/2004 AA 114,867
2,535,000 Greensboro, NC , GO UT Bonds, 4.70% (Original
Issue Yield: 4.90%), 4/1/2016 AAA 2,462,093
100,000 Greenville, NC Combined Enterprise System,
Revenue Bonds, 5.70% (Original Issue Yield:
5.75%), 9/1/2006 A+ 108,672
75,000 Harnett County, NC, Certificates of
Participation, 5.90% (AMBAC INS), 12/1/2000 AAA 78,453
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$ 500,000 Harnett County, NC, Certificates of
Participation, 6.20% (AMBAC INS), 12/1/2009 AAA $ 560,085
600,000 High Point, NC, GO UT Revenue Bonds, 5.60%,
3/1/2008 AA 648,714
600,000 Lee County, NC, GO UT, 5.00% (MBIA
INS)/(Original Issue Yield: 5.05%), 4/1/2009 AAA 625,998
100,000 Martin County, NC IFA, PCR Bonds, 6.80%
(Weyerhaeuser Co.), 5/1/2024 A 111,435
850,000 Martin County, NC IFA, Revenue Bonds, 5.65%
(Weyerhaeuser Co.), 12/1/2023 A 863,226
1,705,000 Mecklenburg County, NC, GO UT Bonds, 4.80%
(Original Issue Yield: 4.90%), 3/1/2009 AAA 1,754,871
100,000 Mecklenburg County, NC, GO UT Bonds, 6.25%
(United States Treasury PRF)/(Original Issue
Yield: 6.35%), 1/1/2002 (@102) AAA 109,025
100,000 Mecklenburg County, NC, GO UT Refunding
Bonds, 5.90% (Original Issue Yield: 6.05%),
3/1/2004 AAA 106,878
3,670,000 Mecklenburg County, NC, GO UT, 4.40%
(Original Issue Yield: 4.45%), 2/1/2011 AAA 3,586,801
1,000,000 Mecklenburg County, NC, GO UT, 4.40%,
2/1/2010 AAA 988,080
100,000 North Carolina Educational Facilities Finance Agency, Refunding
Revenue Bonds, 6.00% (Davidson College)/ (Original Issue Yield:
6.20%), 12/1/2012 AA- 107,905
450,000 North Carolina Educational Facilities Finance
Agency, Revenue Bonds (Series B), 4.25% (Duke
University)/ (Original Issue Yield: 4.30%),
10/1/2003 AA+ 453,186
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia North Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$1,000,000 North Carolina Educational Facilities Finance
Agency, Revenue Bonds (Series C), 6.75% (Duke
University)/ (Original Issue Yield: 6.769%),
10/1/2021 AA+ $ 1,091,090
20,000 North Carolina HFA, Multi-Family Refunding
Revenue Bonds (Series B), 6.90% (FHA INS),
7/1/2024 AA 21,416
85,000 North Carolina HFA, Revenue Bonds (Series Z),
6.60%, 9/1/2026 AA 90,780
750,000 North Carolina HFA, Revenue Bonds, 6.20%,
3/1/2018 AA 793,800
2,000,000 North Carolina Medical Care Commission
Hospital, Refunding Revenue Bonds, 5.00%
BANs, 6/1/2013 AAA 2,001,780
50,000 North Carolina Medical Care Commission
Hospital, Refunding Revenue Bonds, 6.125%
(Rex Hospital)/ (Original Issue Yield:
6.219%), 6/1/2010 A+ 55,248
1,000,000 North Carolina Medical Care Commission
Hospital, Revenue Bonds (Series C), 5.25%
(Duke University Hospital)/(Original Issue
Yield: 5.65%), 6/1/2017 AA 1,003,890
525,000 North Carolina Medical Care Commission
Hospital, Revenue Bonds, 5.20% (Moore
Regional Hospital)/(FGIC INS)/(Original Issue
Yield: 5.30%), 10/1/2013 AAA 531,668
1,500,000 North Carolina Medical Care Commission
Hospital, Revenue Bonds, 5.375% (Wake County
Hospital Systems)/(MBIA INS)/(Original Issue
Yield: 5.75%), 10/1/2026 AAA 1,520,880
1,000,000 North Carolina Medical Care Commission
Hospital, Revenue Bonds, 7.00% (Duke
University Hospital)/(Original Issue Yield:
7.08%), 6/1/2021 Aaa 1,100,870
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$1,095,000 North Carolina Medical Care Commission
Hospital, Revenue Refunding Bonds, 5.10%
(Wilson Memorial Hospital)/ (AMBAC
INS)/(Original Issue Yield: 5.25%), 11/1/2009 AAA $ 1,141,548
1,525,000 North Carolina Medical Care Commission
Hospital, Revenue Refunding Bonds, 5.20%
(Wilson Memorial Hospital)/ (AMBAC
INS)/(Original Issue Yield: 5.35%), 11/1/2010 AAA 1,591,414
850,000 North Carolina Medical Care Commission
Hospital, Revenue Refunding Bonds, 7.375%
(Presbyterian Hospital)/(United States
Treasury PRF)/(Original Issue Yield: 7.417%),
10/1/2000 (@102) Aaa 929,985
115,000 North Carolina Municipal Power Agency No. 1,
Catawba Electric Revenue Refunding Bonds,
5.90% (Original Issue Yield: 5.95%), 1/1/2003 A- 121,897
400,000 North Carolina State, GO UT Bonds (Series A),
4.70%, 2/1/2005 AAA 411,744
1,000,000 North Carolina State, GO UT Refunding Bonds
(Series C), 4.80% (North Carolina Prison
Facilities)/(Original Issue Yield: 4.85%),
3/1/2009 AAA 1,029,780
575,000 Onslow County, NC, GO UT Bonds, 5.70% (MBIA
INS)/ (Original Issue Yield: 5.85%), 3/1/2013 AAA 616,101
635,000 Pitt County, NC, Refunding Revenue Bonds,
5.20% (Pitt County Memorial Hospital)/
(Original Issue Yield: 5.30%), 12/1/2008 AA- 663,823
350,000 Raleigh, NC, Certificate Participation
Refunding Bonds, 5.00% (Cabarrus Street
Parking Facilities Project)/(Original Issue
Yield: 5.10%), 12/1/2009 AA 359,324
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia North Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$ 230,000 Raleigh, NC, Certificate Participation
Refunding Bonds, 5.10% (Cabarrus Street
Parking Facilities Project)/(Original Issue
Yield: 5.20%), 12/1/2010 AA $ 236,810
400,000 Raleigh, NC, GO UT Refunding Bonds, 6.40%,
3/1/2006 AAA 432,196
515,000 Randolph County, NC, Certificate of
Participation, 4.25% (MBIA INS), 6/1/1999 AAA 517,446
800,000 Randolph County, NC, Certificates of
Participation, 4.875% (MBIA INS)/(Original
Issue Yield: 5.05%), 6/1/2006 AAA 825,408
500,000 Robeson County, NC, GO UT Refunding Revenue
Bonds, 4.90% (AMBAC INS), 2/1/2007 AAA 519,280
1,025,000 Sanford, NC, GO UT Bonds, 4.90% (MBIA INS),
3/1/2009 AAA 1,059,061
1,115,000 Shelby, NC Housing Development Corp.,
Mortgage Revenue Bonds, 6.10% (Hickory Creek
Apartments)/ (FHA INS), 2/1/2023 AAA 1,174,073
500,000 Wake County, NC, GO UT Refunding Bonds, 4.60%
(Original Issue Yield: 4.70%), 4/1/2004 AAA 512,320
650,000 Wake County, NC, GO UT Refunding Bonds, 4.70%
(Original Issue Yield: 4.80%), 4/1/2005 AAA 668,330
1,000,000 Wake County, NC, GO UT, 4.50% (Original Issue
Yield: 4.62%), 3/1/2009 AAA 1,005,030
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Credit
or Shares Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
NORTH CAROLINA--CONTINUED
$ 500,000 Wake County, NC, GO UT, 4.90%, 3/1/2004 AAA $ 519,770
1,375,000 Wake County, NC, Hospital Revenue Bonds,
5.125% (MBIA INS)/(Original Issue Yield:
5.35%), 10/1/2026 AAA 1,393,387
75,000 Wilmington, NC, GO UT Revenue Bonds, 5.60%
(Original Issue Yield: 5.75%), 6/1/2010 A+ 80,267
-----------
Total Long-Term Municipal Securities
(identified cost $53,317,326) 56,112,384
-----------
Short-Term Municipal Security--1.8%
NORTH CAROLINA--1.8%
1,100,000 Cumberland County, NC Industrial Facilities &
Pollution Control Financing Authority,
Revenue Bonds, 4.30% (Monsanto Co.),
10/1/2014 (at amortized cost) A1 1,100,000
-----------
Open-End Investment Companies--5.8%
1,234,867 AIM Stico Tax-Free Cash 1,234,867
1,220,898 Dreyfus Tax Exempt Fund 1,220,898
1,131,639 Fidelity Tax Exempt Money Market Fund 1,131,639
-----------
Total Open-Ended Investment Companies (at net
asset value) 3,587,404
-----------
Total Investments (identified cost
$58,004,730) $60,799,788
-----------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia South Carolina Municipal Bond Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--95.8%
SOUTH CAROLINA--95.8%
$ 540,000 Barnwell County, SC School District No. 45,
GO UT Refunding Bonds, 5.60% (AMBAC
INS)/(State Aid Withholding LOC)/(Original
Issue Yield: 5.65%), 2/1/2012 AAA $ 572,357
570,000 Barnwell County, SC School District No. 45,
GO UT Refunding Bonds, 5.60% (AMBAC
INS)/(State Aid Withholding LOC)/(Original
Issue Yield: 5.70%), 2/1/2013 AAA 602,159
1,300,000 Beaufort County, SC School District, GO UT,
4.70%, 3/1/2006 AA 1,332,175
500,000 Beaufort County, SC, Certificate of
Participation, 5.00% (Hilton Head Airport),
7/1/2001 NR 512,110
675,000 Beaufort County, SC, Certificates of
Participation, 7.125% (AMBAC INS)/ (Original
Issue Yield: 7.45%), 6/1/2012 AAA 729,027
855,000 Beaufort-Jasper, SC Water & Sewer Authority,
Waterworks and Sewer System Revenue Bonds,
5.90% (FGIC INS)/(Original Issue Yield:
6.00%), 3/1/2016 AAA 918,356
750,000 Berkeley County, SC, Pollution Control
Facilities Revenue Bonds, 6.50% (South
Carolina Electric and Gas), 10/1/2014 A- 817,658
1,500,000 Berkeley County, SC, Water & Sewer Refunding
Revenue Bonds , 5.50% (MBIA INS)/(Original
Issue Yield: 5.55%), 6/1/2013 AAA 1,560,030
1,000,000 Camden, SC Public Utility, Revenue Refunding
Bonds, 5.50% (MBIA INS)/(Original Issue
Yield: 5.80%), 3/1/2022 AAA 1,034,390
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$1,105,000 Charleston County, SC Airport District,
Airport System Refunding Revenue Bonds,
4.75% (MBIA INS), 7/1/2015 AAA $ 1,072,226
1,900,000 Charleston, SC, Certificates of
Participation, 5.00% (AMBAC INS)/(Original
Issue Yield: 5.39%), 9/1/2015 AAA 1,891,165
1,000,000 Charleston, SC, Certificates of
Participation, 7.10% (MBIA INS)/(United
States Treasury PRF), 6/1/2001 (@102) AAA 1,104,570
250,000 Charleston, SC, GO Bonds (Series A), 6.30%,
9/1/2005 AA 270,405
400,000 Charleston, SC, Water & Sewer Refunding
Revenue Bonds (Series A), 7.05%, 1/1/2006 AA- 404,952
1,000,000 Charleston, SC, Water & Sewer Refunding
Revenue Bonds, 6.00% (Original Issue Yield:
6.242%), 1/1/2012 AA- 1,072,060
1,260,000 Charleston, SC, Waterworks & Sewer Refunding
Revenue Bonds, 5.00% (MBIA INS), 1/1/2022 AAA 1,230,944
875,000 Chester County, SC School District, GO UT ,
6.85% (United States Treasury PRF)/(Original
Issue Yield: 6.95%), 2/1/2012 AA 932,505
1,125,000 Chester County, SC School District, GO UT,
6.85% (United States Treasury PRF)/(Original
Issue Yield: 6.90%), 2/1/2000 (@102) AA 1,198,935
1,500,000 Columbia, SC Waterworks & Sewer System,
Refunding Revenue Bonds, 5.70%, 2/1/2010 AA 1,656,915
1,000,000 Columbia, SC, Parking Facilities Refunding
Revenue Bonds, 5.875% (AMBAC INS)/(Original
Issue Yield: 6.007%), 12/1/2013 AAA 1,088,810
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia South Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$1,065,000 Dorchester County, SC School District No.
002, GO UT Bonds, 5.125% (FGIC
INS)/(Original Issue Yield: 5.25%), 2/1/2012 AAA $ 1,085,618
1,500,000 Dorchester County, SC School District No.
002, GO UT Bonds, 5.20% (FGIC INS), 2/1/2018 AAA 1,511,775 2,250,000
Dorchester County, SC School District No.
002, GO UT Bonds, 5.20% (FGIC INS)/(Original
Issue Yield: 5.35%), 2/1/2017 AAA 2,269,080
600,000 Dorchester County, SC School District No.
002, GO UT Bonds, 6.65% (MBIA INS)/(United States Treasury
PRF)/(Original Issue Yield:
6.85%), 7/1/1999 (@102) AAA 630,060
870,000 Edgefield County, SC School District, GO UT Bonds, 6.40% (FSA
INS)/(Original Issue
Yield: 6.60%), 2/1/2009 AAA 962,351
1,155,000 Fairfield County, SC School District,
Certificates of Participation, 5.50%
(Fairfield Primary Geiger)/(Asset Guaranty
GTD)/(Original Issue Yield: 5.60%), 3/1/2007 AA 1,227,003
2,000,000 Fairfield County, SC, PCR Bonds, 6.50%
(South Carolina Electric and Gas), 9/1/2014 A 2,190,520
500,000 Florence County, SC, Hospital Revenue Bonds,
6.75% (Mcleod Regional Medical Center)/(FGIC
INS)/(Original Issue Yield: 7.00%),
11/1/2010 AAA 541,380
1,500,000 Florence County, SC, Revenue Bonds, 4.75%
(Mcleod Regional Medical Center)/(MBIA
INS)/(Original Issue Yield: 4.75%),
11/1/2027 AAA 1,398,795
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$2,805,000 Grand Strand Water & Sewage Authority, SC,
Revenue Refunding Bonds, 6.375% (South
Carolina Waterworks & Sewer System)/(MBIA
INS)/(Original Issue Yield: 6.508%),
6/1/2012 AAA $ 3,283,112
800,000 Grand Strand Water & Sewage Authority, SC,
Waterworks & Sewer System Revenue Refunding
Bonds, 6.00% (MBIA INS)/(Original Issue
Yield: 6.595%), 6/1/2019 AAA 840,848
500,000 Greenville County, SC, Industrial Revenue
Bonds, 7.10% (Lockheed Aeromod Center
Incorporated Project), 11/1/2011 BBB+ 541,780
5,250,000 Greenville, SC Hospital System Facilities,
Refunding Revenue Bonds (Series B), 5.25%
(Original Issue Yield: 6.125%), 5/1/2023 AA 5,242,545
600,000 Greenville, SC Hospital System Facilities,
Refunding Revenue Bonds, 5.75% (Original
Issue Yield: 5.95%), 5/1/2013 AA 634,116
1,500,000 Greenville, SC Hospital System Facilities,
Revenue Bonds (Series B), 5.25% (Original
Issue Yield: 6.076%), 5/1/2017 AA 1,499,940
760,000 Greenville, SC Hospital System Facilities,
Revenue Bonds, 7.00% (Greenville Health
Corporation)/(Original Issue Yield: 7.454%),
5/1/2017* AAA 817,236
2,000,000 Greenville, SC Waterworks Revenue, Revenue
Bonds, 5.50% (Original Issue Yield: 5.60%),
2/1/2022 AA 2,063,400
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia South Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$1,000,000 Hilton Head Island, SC Public Facilities
Corp., Certificates of Participation, 5.40%
(AMBAC INS)/(Original Issue Yield: 5.599%),
3/1/2009 AAA $ 1,062,380
100,000 Horry County, SC, GO UT Bonds, 7.45% (United
States Treasury PRF), 12/1/1988 (@102) A+ 103,828
980,000 Horry County, SC, GO UT Refunding Bonds
(Series B), 4.65% (MBIA INS), 12/1/2005 AAA 1,001,168
1,960,000 Lancaster County, SC School District, GO UT,
6.50% (MBIA INS)/(Original Issue Yield:
6.599%), 7/1/2008 AAA 2,171,288
655,000 Lexington & Richland Counties, SC School
District No. 005, GO UT Bonds, 5.05% (MBIA
INS), 3/1/2005 AAA 683,886
175,000 Lexington County, SC, Revenue Bonds (Series
C), 8.00% (J.B. White & Co. Project),
1/1/2011 NR 197,964
2,000,000 Lexington County, SC Health Services District, Inc., Refunding
Revenue Bonds, 5.125% (Original Issue Yield: 5.50%),
11/1/2021 AAA 1,963,800
2,500,000 Lexington County, SC Health Services
District, Inc., Revenue Bonds, 5.125% (FSA
INS)/(Original Issue Yield: 5.53%),
11/1/2026 AAA 2,450,400
805,000 Medical University of South Carolina,
Hospital Facilities Revenue Bonds, 5.25%
(MBIA INS)/(Original Issue Yield: 5.25%),
7/1/2004 AAA 849,525
2,000,000 North Charleston, SC Sewer District,
Refunding Revenue Bonds (Series A), 6.00%
(MBIA INS)/(Original Issue Yield: 6.593%),
7/1/2018 AAA 2,103,960
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$ 500,000 North Charleston, SC Sewer District, Revenue
Bonds (Series B), 6.00% (MBIA INS)/(Original
Issue Yield: 6.593%), 7/1/2018 AAA $ 525,990
1,275,000 Oconee County, SC School District, GO UT
Bonds, 5.10% (MBIA INS)/(Original Issue
Yield: 5.50%), 9/1/2013 AAA 1,295,591
2,500,000 Oconee County, SC, PCR Refunding Bonds,
5.80% (Duke Energy Corp.), 4/1/2014 AA- 2,626,550
590,000 Piedmont Municipal Power Agency, SC,
Electricity Refunding Revenue Bonds, 6.85%
(FGIC INS), 1/1/2007 AAA 639,300
590,000 Piedmont Municipal Power Agency, SC,
Refunding Bonds, 5.50% (MBIA INS)/(Original
Issue Yield: 5.60%), 1/1/2013 AAA 635,519
970,000 Piedmont Municipal Power Agency, SC,
Refunding Revenue Bonds (Series A), 6.375%
(FGIC LOC)/ (Original Issue Yield: 6.45%),
1/1/2006 AAA 1,085,789
1,000,000 Piedmont Municipal Power Agency, SC,
Refunding Revenue Bonds, 6.50% (FGIC
INS)/(Original Issue Yield: 6.88%),
1/1/2011* AAA 1,071,220
1,325,000 Richland-Lexington Airport District, Airport
& Marina Revenue Bonds, 6.125% (Columbia
Metropolitan Airport)/(AMBAC INS)/ (Original
Issue Yield: 6.40%), 1/1/2025 AAA 1,406,209
600,000 Richland County, SC Hospital Facilities,
Revenue Bonds (Series PG-A), 7.10%
(Community Provider Pooled Loan
Program)/(CGIC INS), 7/1/2005 AAA 666,168
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia South Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$ 255,000 Richland County, SC Hospital Facilities,
Revenue Bonds, 8.125% (Sun Health-
Orangeburg)/(Sumitomo Bank Ltd., Osaka LOC),
10/1/2011 NR $ 263,354
1,500,000 Richland County, SC School District No. 001,
GO UT, 4.625%, 3/1/2022 AA 1,400,460
650,000 Richland County, SC Solid Waste Disposal
Facilities, Revenue Bonds (Series A), 7.45%
(Union Camp Corp. Project)/(Original Issue
Yield: 7.513%), 4/1/2021 A- 710,145
1,390,000 Richland County, SC, GO UT Refunding Bonds
(Series B), 6.25% (State Aid Withholding
LOC), 3/1/2001 AA 1,471,482
140,000 Rock Hill, SC Housing Development Corp.,
Multi-Family Refunding Revenue Bonds, 7.50%,
7/1/2010 NR 150,858
1,000,000 South Carolina Job Development Authority,
Revenue Bonds, 5.25% (Anderson Area Medical
Center, Inc.)/(MBIA INS)/(Original Issue
Yield: 5.63%), 2/1/2015 AAA 1,012,030
500,000 South Carolina Resources Authority, Local
Government Program, Revenue Bonds (Series
A), 7.00%, 6/1/2003 A+ 535,560
1,000,000 South Carolina State Educational Assistance
Authority, Refunding Revenue Bonds (Series
A-3), 5.80% (Original Issue Yield: 5.90%),
9/1/2004 AAA 1,070,680
1,000,000 South Carolina State Educational Assistance
Authority, Refunding Revenue Bonds (Series
B), 5.70% (Original Issue Yield: 5.75%),
9/1/2005 A 1,059,160
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$ 975,000 South Carolina State Housing Finance &
Development Authority, Refunding Revenue
Bonds (Series A), 6.15%, 7/1/2008 AA $ 1,040,111
1,200,000 South Carolina State Housing Finance &
Development Authority, Revenue Bonds (Series
A), 7.30% (FHA/VA mtgs GTD), 7/1/2011 AA 1,273,068
1,000,000 South Carolina State Housing Finance &
Development Authority, Revenue Bonds (Series
A-1), 6.45% (FHA/VA mtgs GTD), 7/1/2017 NR 1,069,350
500,000 South Carolina State Housing Finance &
Development Authority, Revenue Bonds (Series
C), 7.70% (FHA/VA mtgs GTD), 7/1/2011 AA 524,350
520,000 South Carolina State Housing Finance &
Development Authority, Revenue Bonds (Series
C), 7.75% (FHA/VA mtgs GTD), 7/1/2022 AA 548,090
75,000 South Carolina State Housing Finance &
Development Authority, Revenue Refunding
Bonds (Series A), 7.50% (FHA/VA mtgs GTD),
7/1/2011 AA 77,931
1,000,000 South Carolina State Ports Authority,
Revenue Bonds, 6.50% (AMBAC INS)/ (Original
Issue Yield: 6.75%), 7/1/2006 AAA 1,075,360
1,000,000 South Carolina State Ports Authority,
Revenue Bonds, 6.625% (AMBAC INS)/ (Original
Issue Yield: 6.823%), 7/1/2011 AAA 1,078,330
525,000 South Carolina State Ports Authority,
Revenue Bonds, 6.75% (AMBAC INS)/ (Original
Issue Yield: 6.90%), 7/1/2021 AAA 567,042
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia South Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$1,000,000 South Carolina State Public Service
Authority, Refunding Revenue Bonds, 5.00%
(MBIA INS)/(Original Issue Yield: 5.15%),
1/1/2014 AAA $ 1,005,200
2,000,000 South Carolina State Public Service
Authority, Revenue Bond, 5.00% (MBIA INS)/
(Original Issue Yield: 5.20%), 1/1/2015 AAA 2,003,400
1,950,000 South Carolina State Public Service
Authority, Revenue Bonds (Series D), 6.50%
(Santee Cooper)/(AMBAC INS)/(Original Issue
Yield: 6.553%), 7/1/2014 AAA 2,160,210
1,000,000 South Carolina State Public Service
Authority, Revenue Refunding Bonds, 5.00%
(Original Issue Yield: 5.30%), 1/1/2018 AAA 988,880
1,210,000 South Carolina State, GO UT Bonds (Series
A), 4.50% (State Highway), 4/1/2023 AAA 1,122,142
4,500,000 South Carolina State, GO UT Revenue Bonds
(Series A), 5.00% (Original Issue Yield:
5.45%), 3/1/2008 AAA 4,697,460
1,150,000 South Carolina State, GO UT, 4.50% (State
Highway), 4/1/2022 AAA 1,068,546
590,000 South Carolina State, State Capital
Improvement (Series B), 5.75%, 8/1/2000 AAA 613,358
1,500,000 Spartanburg County, SC Health Services
District, Inc., Refunding Revenue Bonds,
5.50% (AMBAC INS)/ (Original Issue Yield:
5.70%), 4/15/2015 AAA 1,559,685
1,500,000 Spartanburg County, SC Health Services
District, Inc., Revenue Bonds, 5.50% (MBIA
INS)/(Original Issue Yield: 6.00%),
4/15/2027 AAA 1,546,991
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$1,000,000 Spartanburg County, SC Hospital Facilities,
Revenue Refunding Bonds, 6.55% (Spartanburg
General Hospital System)/(FSA INS),
4/15/2010 AAA $ 1,088,220
200,000 Spartanburg County, SC Hospital Facilities,
Revenue Refunding Bonds, 7.80% (Mary Black
Memorial Project)/(United States Treasury
PRF)/(Original Issue Yield: 7.80%),
10/1/2000 NR 206,658
100,000 Spartanburg County, SC Hospital Facilities,
Revenue Refunding Bonds, 8.25% (Mary Black
Memorial Project)/(United States Treasury
PRF), 10/1/2008 NR 103,479
450,000 Spartanburg, SC Leased Housing Corp.,
Refunding Revenue Bonds, 7.50%, 10/1/2011 NR 486,203
1,000,000 Spartanburg, SC, Waterworks Revenue
Refunding Bonds, 5.00% (FGIC INS), 6/1/2027 AAA 977,530
1,000,000 Sumter County, SC Hospital Facilities,
Revenue Refunding Bonds, 6.625% (Tuomey
Regional Medical Center)/
(MBIA INS)/(Original Issue Yield: 6.98%),
11/15/2004 AAA 1,133,540
1,000,000 University South Carolina, Parking
Facilities Refunding Revenue Bonds, 5.00%
(MBIA INS)/(Original Issue Yield: 5.40%),
5/1/2015 AAA 1,001,390
1,465,000 University of South Carolina, Revenue Bonds,
5.70% (MBIA INS), 6/1/2020 AAA 1,539,715
1,300,000 Western Carolina Regional Sewer Authority,
SC, Sewer System Revenue Bonds, 5.50% (FGIC
INS)/(Original Issue Yield: 5.627%),
3/1/2010 AAA 1,367,951
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia South Carolina Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
SOUTH CAROLINA--CONTINUED
$1,000,000 York County, SC, GO UT Refunding Bonds,
4.90% (AMBAC INS)/(Original Issue Yield:
5.10%), 6/1/2010 AAA $ 1,011,230
------------
Total Long-Term Municipals (identified cost
$103,033,399) 109,890,992
------------
</TABLE>
<TABLE>
<CAPTION>
Credit
Shares Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Open-End Investment Companies--2.5%
1,226,633 AIM Stico Tax-Free Cash $ 1,226,633
543,429 Dreyfus Tax Exempt 543,429
1,111,165 Fidelity Tax Exempt Money Market 1,111,165
------------
Total Open-Ended Investment Companies (at net
asset value) 2,881,227
------------
Total Investments (identified cost
$105,914,626)(b) $112,772,219
------------
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Virginia Municipal Bond Fund
Portfolio of Investments
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--97.2%
VIRGINIA--97.2%
$ 500,000 Albemarle County, VA, Revenue Refunding
Bonds, 5.50% (Original Issue Yield: 5.634%),
8/1/2006 A+ $ 529,060
850,000 Arlington County, VA, GO UT Refunding Bonds,
6.00%, 6/1/2004 AAA 934,252
2,000,000 Arlington County, VA, GO UT, 5.40% (Original
Issue Yield: 5.55%), 6/1/2014 AAA 2,088,400
1,000,000 Arlington County, VA, GO UT, 5.40% (Original
Issue Yield: 5.55%), 6/1/2015 AAA 1,039,740
2,080,000 Arlington, VA IDA, Revenue Bonds, 5.45% (The
Nature Conservancy)/(Original Issue Yield:
5.57%), 7/1/2027 NR 2,133,893
1,100,000 Arlington, VA IDA, Revenue Refunding Bonds,
5.30% (Arlington Hospital)/(United States
Treasury PRF)/
(Original Issue Yield: 5.47%), 9/1/2003
(@100) NR 1,109,988
2,000,000 Augusta County, VA IDA, Revenue Bonds,
6.625% (Augusta Hospital Corp.)/
(AMBAC INS)/(Original Issue Yield: 6.817%),
9/1/2012 AAA 2,161,800
6,000,000 Chesapeake, VA, GO UT, 5.00% (State Aid Withholding GTD)/(Original
Issue Yield:
5.53%), 12/1/2025 AA 5,955,660
1,000,000 Chesterfield County, VA, GO UT, 5.60%
(Original Issue Yield: 5.65%), 7/15/2006 AAA 1,062,780
600,000 Danville, VA, GO UT, 6.40% (Original Issue
Yield: 6.45%), 5/1/2009 NR 659,394
500,000 Danville, VA, GO UT, 6.40% (Original Issue
Yield: 6.50%), 5/1/2010 NR 549,495
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$1,000,000 Fairfax County, VA IDA, Revenue Refunding
Bonds, 5.00% (Inova Health System)/(AMBAC
INS)/
(Original Issue Yield: 5.30%), 8/15/2013 AAA $ 1,026,790
2,000,000 Fairfax County, VA IDA, Revenue Refunding
Bonds, 5.00% (Inova Health System)/(Original
Issue Yield: 5.25%), 8/15/2025 AA 1,930,660
1,250,000 Fairfax County, VA IDA, Revenue Refunding
Bonds, 5.25% (Inova Health System)/(FSA
INS)/(Original Issue Yield: 5.35%),
8/15/2019 AAA 1,285,513
1,000,000 Fairfax County, VA IDA, Revenue Refunding
Bonds, 5.25% (Inova Health System)/(Original
Issue Yield: 5.35%), 8/15/2019 AA 1,024,460
1,265,000 Fairfax County, VA Water Authority, 6.00%,
4/1/2022 NR 1,386,959
735,000 Fairfax County, VA Water Authority, 6.00%,
4/1/2022 NR 834,078
500,000 Fairfax County, VA Water Authority, Revenue
Bonds, 5.00% (Original Issue Yield: 5.375%),
4/1/2016 AA 498,215
1,500,000 Fairfax County, VA Water Authority, Revenue
Refunding Bonds, 5.00% (Original Issue
Yield: 5.22%), 4/1/2021 AA 1,506,000
2,000,000 Fairfax County, VA Water Authority, Revenue
Refunding Bonds, 5.00% (Original Issue
Yield: 5.30%), 4/1/2029 AA 1,959,800
1,000,000 Fairfax County, VA, GO UT Refunding Bonds,
6.00% (State Aid Withholding GTD)/(Original
Issue Yield: 6.10%), 5/1/2007 AAA 1,047,960
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$1,000,000 Fairfax County, VA, GO UT, 5.50% (State Aid
Withholding GTD), 6/1/2015 AAA $ 1,035,210
500,000 Halifax, VA IDA, Revenue Refunding Bonds,
5.25% (Halifax Regional Hospital, Inc.),
9/1/2017 A 498,455
1,000,000 Hampton, VA, GO UT, 5.90% (Original Issue
Yield: 6.00%), 1/15/2007 AA 1,101,570
1,000,000 Hanover County, VA IDA, Revenue Bonds, 5.50%
(Bon Secours Health System)/
(MBIA INS)/(Original Issue Yield: 5.93%),
8/15/2025 AAA 1,027,550
1,000,000 Hanover County, VA IDA, Revenue Bonds, 5.50%
(Memorial Regional Medical Center)/(MBIA
INS)/(Original Issue Yield: 6.00%),
8/15/2025 AAA 1,027,550
1,000,000 Hanover County, VA IDA, Revenue Bonds,
6.375% (Memorial Regional Medical
Center)/(MBIA INS), 8/15/2018 AAA 1,175,810
2,000,000 Henrico County, VA, GO UT Refunding Bonds,
5.30% (Original Issue Yield: 5.45%),
1/15/2010 AAA 2,087,220
1,000,000 Henrico County, VA, Revenue Refunding Bonds,
6.25% (Original Issue Yield: 6.65%),
5/1/2013 AA- 1,060,140
1,000,000 James City County, VA, GO UT, 5.20% (State Aid Withholding
GTD)/(FGIC INS)/(Original
Issue Yield: 5.35%), 12/15/2010 AAA 1,045,590
725,000 Lynchburg, VA, GO UT, 6.875% (Original Issue
Yield: 6.90%), 4/1/2001 AA 775,301
1,000,000 Manassa, VA, GO UT, 5.00% (Original Issue
Yield: 5.05%), 1/1/2012 AA- 1,016,690
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$1,000,000 Newport News, VA, GO UT (Series A), 5.20%
(Original Issue Yield: 5.35%), 1/15/2018 AA $ 1,003,700
1,000,000 Newport News, VA, GO UT (Series A), 5.70%
(MBIA INS)/(Original Issue Yield: 5.75%),
7/1/2016 AAA 1,059,720
1,000,000 Newport News, VA, GO UT (Series A), 6.00%
(Original Issue Yield: 6.05%), 6/1/2006 AA 1,077,450
1,000,000 Newport News, VA, GO UT (Series A), 6.00%
(Original Issue Yield: 6.10%), 6/1/2007 AA 1,079,570
700,000 Newport News, VA, GO UT (Series B), 5.80%
(Original Issue Yield: 5.85%), 7/1/2006 AA 722,491
1,900,000 Norfolk, VA IDA, Refunding Revenue Bonds,
5.50% (Sentara Hospitals), 11/1/2017 AA 1,947,500
1,000,000 Norfolk, VA IDA, Refunding Revenue Bonds,
6.50% (Daughter's Charity-DePaul Hospital),
12/1/2007 AA+ 1,101,420
2,500,000 Norfolk, VA IDA, Refunding Revenue Bonds,
6.50% (Sentara Hospitals), 11/1/2013 AA 2,806,200
1,000,000 Norfolk, VA IDA, Revenue Bonds, 6.50%
(Children's Hospital King's Group)/
(AMBAC INS)/(Original Issue Yield: 7.043%),
6/1/2021 AAA 1,073,130
2,000,000 Norfolk, VA Water Revenue, Revenue Bonds,
5.75% (MBIA INS)/(Original Issue Yield:
5.95%), 11/1/2012 AAA 2,156,720
500,000 Norfolk, VA Water Revenue, Revenue Bonds,
5.90% (MBIA INS)/(Original Issue Yield:
6.194%), 11/1/2025 AAA 535,400
1,000,000 Norfolk, VA, GO UT (Series A), 5.90%
(Original Issue Yield: 6.00%), 2/1/2006 AA 1,057,240
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$1,000,000 Norfolk, VA, GO UT Refunding Bonds (Series
A), 6.00% (Original Issue Yield: 6.20%),
2/1/2008 AA $ 1,064,530
1,000,000 Norfolk, VA, GO UT Refunding Bonds, 5.25%
(Original Issue Yield: 5.35%), 2/1/2006 AA 1,053,350
2,000,000 Norfolk, VA, GO UT Refunding Bonds, 5.50%
(Original Issue Yield: 5.55%), 2/1/2008 AA 2,122,760
1,000,000 Prince William County, VA IDA, Refunding
Revenue Bonds, 5.625% (Prince William
Hospital)/(Original Issue Yield: 5.75%),
4/1/2012 NR 1,027,010
1,000,000 Prince William County, VA, GO UT Refunding
Bonds, 5.90% (Original Issue Yield: 6.00%),
12/1/2003 AA 1,060,270
1,500,000 Richmond, VA, GO UT Bonds, 5.50% (Original
Issue Yield: 5.72%), 7/15/2023 AA 1,528,200
1,000,000 Richmond, VA, GO UT Refunding Bonds (Series
B), 5.00% (FGIC INS)/(Original Issue Yield:
5.259%), 1/15/2021 AAA 980,030
1,000,000 Rivanna Water & Sewer Authority, Refunding
Revenue Bonds, 4.80% (Original Issue Yield:
5.10%), 10/1/2015 NR 965,680
750,000 Roanoke County, VA IDA, Revenue Bonds, 5.25%
(Hollins College), 3/15/2023 A 747,878
500,000 Roanoke County, VA Water System, Refunding
Revenue Bonds, 5.00% (FGIC INS), 7/1/2021 AAA 488,595
2,000,000 Roanoke, VA IDA, 5.25% (Roanoke Memorial
Hospital Project--Carilion Health
System)/(MBIA INS)/(Original Issue Yield:
5.65%), 7/1/2025 AAA 1,997,020
</TABLE>
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$3,475,000 Roanoke, VA, GO UT Bonds, 5.25% (Original
Issue Yield: 5.30%), 8/1/2024 AA $ 3,486,190
1,000,000 Roanoke, VA, GO UT Bonds, 6.20%, 8/1/2005 AA 1,072,600
1,250,000 Roanoke, VA, GO UT Bonds, 6.30% (Original
Issue Yield: 6.35%), 8/1/2007 AA 1,349,950
1,000,000 Spotsylvania County, VA, GO UT Bonds, 5.50%
(Original Issue Yield: 5.55%), 7/15/2005 A+ 1,061,280
1,000,000 Spotsylvania County, VA, GO UT Bonds, 5.70%
(Original Issue Yield: 5.75%), 7/15/2007 A+ 1,069,000
1,500,000 University of Virginia, Refunding Revenue
Bonds (Series A), 5.20% (Original Issue
Yield: 5.45%), 6/1/2015 AA+ 1,518,960
1,000,000 Virginia Beach, VA, GO UT Bonds (Series C),
6.10% (Original Issue Yield: 6.15%),
8/1/2002 AA 1,076,950
1,000,000 Virginia Beach, VA, GO UT Bonds, 5.70%,
7/15/2006 AA 1,076,460
1,000,000 Virginia Beach, VA, GO UT Bonds, 5.80%,
7/15/2007 AA 1,080,220
1,000,000 Virginia Beach, VA, GO UT Refunding Bonds,
6.20% (Original Issue Yield: 6.25%),
9/1/2014 AA 1,123,480
1,000,000 Virginia College Building Authority,
Refunding Revenue Bonds, 5.80% (Washington &
Lee University Project), 1/1/2024 AA 1,093,990
1,500,000 Virginia Polytechnical Institute & State
University, Refunding Revenue Bonds (Series
C), 5.50% (Original Issue Yield: 5.70%),
6/1/2016 AA 1,558,485
500,000 Virginia State Housing Development
Authority, Refunding Revenue Bonds, 6.10%,
1/1/2007 AA+ 530,115
</TABLE>
(See Notes to Portfolios of Investments)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Wachovia Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$ 500,000 Virginia State Housing Development
Authority, Refunding Revenue Bonds, 6.20%,
1/1/2008 AA+ $ 530,700
500,000 Virginia State Housing Development
Authority, Refunding Revenue Bonds, 6.30%,
1/1/2009 AA+ 530,570
400,000 Virginia State Housing Development
Authority, Refunding Revenue Bonds, 6.45%,
5/1/2001 AA+ 416,660
990,000 Virginia State Housing Development
Authority, Revenue Bonds (Series A), 6.40%,
7/1/2017 AA+ 1,048,526
1,000,000 Virginia State Housing Development
Authority, Revenue Bonds (Series B), 6.35%,
1/1/2015 AA+ 1,078,080
1,000,000 Virginia State Housing Development
Authority, Revenue Bonds (Series B), 6.55%,
1/1/2011 AA+ 1,090,000
1,000,000 Virginia State Housing Development
Authority, Revenue Bonds (Series F), 6.40%,
7/1/2017 AA+ 1,057,030
1,000,000 Virginia State Public School Authority,
Revenue Refunding Bonds, 6.25% (Original
Issue Yield: 6.30%), 1/1/2004 AA 1,084,470
300,000 Virginia State Public School Authority,
School Financing Revenue Bonds (Series B),
5.75% (State Aid Withholding COL), 1/1/2008 AA 322,212
500,000 Virginia State Resource Authority, Refunding
Revenue Bonds, 5.00% (Original Issue Yield:
5.182%), 5/1/2022 AA 489,060
1,000,000 Virginia State Resource Authority, Refunding
Revenue Bonds, 5.25% (Appomattox River Water
Authority)/ (Original Issue Yield: 5.70%),
10/1/2013 AA 1,015,870
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Credit
or Shares Rating* Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
Long-Term Municipals--continued
VIRGINIA--CONTINUED
$1,000,000 Virginia State Resources Authority Water and
Sewer System, Revenue Bonds (Series A),
5.60% (Original Issue Yield: 5.75%),
10/1/2025 AA $ 1,031,460
690,000 Virginia State Resources Authority Water and
Sewer System, Revenue Bonds, 5.50% (Original
Issue Yield: 5.80%), 10/1/2022 AA 710,493
1,000,000 Virginia State, GO UT Bonds, 5.25% (Original
Issue Yield: 5.60%), 6/1/2016 AAA 1,018,760
1,000,000 Virginia State, GO UT Bonds, 5.50% (Original
Issue Yield: 5.55%), 6/1/2006 AAA 1,071,560
1,000,000 Virginia State, GO UT Bonds, 6.00%, 6/1/2006 AAA 1,070,100
750,000 Washington County, VA IDA, Refunding Revenue
Bonds, 6.00% (Original Issue Yield: 6.16%),
7/1/2014 NR 838,508
2,000,000 Williamsburg, VA IDA, Refunding Revenue
Bonds, 5.75% (Williamsburg
Community Hospital)/(Original Issue Yield:
5.94%), 10/1/2022 A 2,051,520
------------
Total Long-Term Municipals (identified cost
$98,145,136) 104,785,106
------------
Open-End Investment Companies--1.5%
519,935 AIM Stico Tax-Free Cash 519,935
545,907 Dreyfus Tax Exempt 545,907
549,725 Fidelity Tax Exempt Money Market 549,725
------------
Total Open-Ended Investment Companies
(at net asset value) 1,615,567
------------
Total Investments (identified cost
$99,760,703) $106,400,673
------------
</TABLE>
(See Notes to Portfolios of Investments)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Notes to Portfolios of Investments
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
(a) The repurchase agreements are fully collateralized by U.S. Government and/or
agency obligations based on market prices at the date of the portfolio.
(b) Non-income producing.
(c) Represents securities held as collateral within a margin account, used to
ensure the Fund is able to satisfy the obligations of its outstanding long
futures contracts.
(d) Denotes a restricted security which is subject to restrictions on resale
under Federal Securities laws. At May 31, 1998 Emerging Markets Fund held
restricted securities amounting to $8,049,052 which represents 4.9% of net
assets.
(e) This security was acquired thru cash received as a result of transactions in
a reverse repurchase agreement.
The following abbreviations are used in these portfolios:
ADR--American Depositary Receipt INS--Insured
AMBAC--American Municipal Bond LOC--Letter of Credit
Assurance Corporation LP--Limited Partnership
AMT--Alternative Minimum Tax LT--Limited Tax
BAN'S--Bond Anticipation Notes LTD--Limited
CGIC--Capital Guaranty Insurance MBIA--Municipal Bond Investors
Corporation Assurance
COL--Collateralized MTN--Medium Term Note
FHA--Federal Housing PCFA--Pollution Control Finance
Administration Authority
FHA/VA--Federal Housing PCR--Pollution Control Revenue
Administration/ Veterans PLC--Public Limited Company
Administration PO--Principal Only
FGIC--Financial Guaranty Insurance PRF--Prerefunded
Company REMIC--Real Estate Mortgage
FSA--Financial Security Assurance Investment Conduit
GO--General Obligation SA--Support Agreement
GDR--Global Depositary Receipt SFM--Single Family Mortgage
GTD--Guaranteed UT--Unlimited Tax
HFA--Housing Finance Authority VRDNs--Variable Rate Demand Notes
IFA--Industrial Finance Authority VA--Veterans Administration
IDA--Industrial Development
Authority
<TABLE>
<CAPTION>
Net Gross Gross
Unrealized Unrealized Unrealized
Cost of Appreciation/ Appreciation Depreciation
Investments (Depreciation) for Federal for Federal
for Federal for Federal Tax Tax Total net
Fund Tax Purposes Tax Purposes Purposes Purposes Assets**
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equity Fund $211,490,329 $ 31,146,818 $ 33,173,153 $ 2,026,335 $243,798,106
Quantitative Equity Fund 189,979,371 97,509,934 99,476,109 1,966,175 287,656,316
Growth & Income Fund 174,235,967 150,601,197 150,756,390 155,193 328,298,149
Equity Index Fund 191,380,954 171,931,440 174,790,969 2,859,529 363,509,172
Special Values Fund 136,510,866 26,641,809 31,182,316 4,540,507 161,358,804
Emerging Markets Fund 171,708,399 (9,424,097) 24,942,331 34,366,428 162,824,539
Balanced Fund 365,189,219 30,093,634 32,268,209 2,174,575 396,124,132
Fixed Income Fund 222,272,666 3,064,284 3,410,593 346,309 217,677,940
Intermediate Fixed
Income Fund 88,590,099 4,686,361 4,693,386 7,025 94,238,251
Short-Term Fixed Income
Fund 111,042,683 300,682 373,367 72,685 101,379,503
Georgia Municipal Bond
Fund 19,770,385 937,526 937,526 -- 20,811,894
North Carolina Municipal
Bond Fund 58,004,730 2,795,058 2,806,978 11,920 61,343,897
South Carolina Municipal
Bond Fund 105,914,626 6,857,593 6,894,241 36,648 114,748,551
Virginia Municipal Bond
Fund 99,760,703 6,639,970 6,645,585 5,615 107,822,509
</TABLE>
** The categories of investments are shown as a percentage of net assets at May
31, 1998.
AtMay 31, 1998, the following Funds had investments that were subject to
alternative minimum tax:
<TABLE>
<CAPTION>
Percentage of total market value
Fund subject to alternative minimum tax
---- ------------------------------------
<S> <C>
Georgia Municipal Bond Fund 4.0%
North Carolina Municipal Bond Fund 2.41%
South Carolina Municipal Bond Fund 9.37%
Virginia Municipal Bond Fund 1.2%
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Statements of Assets and Liabilities
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Wachovia Wachovia Wachovia Wachovia Wachovia Wachovia
Wachovia Quantitative Growth & Equity Index Special Values Emerging Balanced
Equity Fund Equity Fund Income Fund Fund Fund Markets Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments in
securities, at
value $228,188,852 $282,151,398 $321,848,627 $356,137,747 $133,226,265 $156,172,069 $378,412,720
Investments in
repurchase
agreements 14,421,507 5,312,890 2,988,537 7,148,162 29,820,975 6,113,135 16,770,056
Cash 64,686 49,996 193,488 4,913 -- 47,539 --
Income
receivable 265,386 409,092 754,500 591,750 155,894 842,997 2,393,144
Receivable for
investments sold 5,368,003 -- 2,931,677 -- 30,670,117 -- 5,837,651
Receivable for
shares sold 109,398 607,757 112,977 153,851 509,502 59,703 162,964
Receivable for
foreign currency
sold 2,284 -- -- 843 -- -- --
Receivable for
daily variation
margin 119,700 -- -- -- -- -- 1,915
Deferred
organizational
costs -- 9,084 -- -- -- 20,011 --
Deferred
Expenses -- -- -- -- -- -- --
Other Assets 1,557 7,435 -- 3,860 471 10,744 5,625
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total assets 248,541,373 288,547,652 328,829,806 364,041,126 194,383,224 163,266,198 403,584,075
------------ ------------ ------------ ------------ ------------ ------------ ------------
Liabilities:
Payable for
investments
purchased 3,954,338 -- -- -- 2,223,612 -- 6,405,108
Payable for
shares redeemed 76,513 207,751 16,520 -- -- 4,527 86,366
Income
distribution
payable -- -- -- 9,683 72 -- 8
Payable to Bank -- -- -- -- 30,401,824 -- 134,951
Payable for
taxes withheld -- -- -- -- -- 22,071 --
Payable for
dollar roll
transactions -- -- -- -- -- -- --
Payable for
daily variation
margin 282,150 311,850 32,373 321,750 37,125 -- 458,603
Payable for
reverse
repurchase
agreement -- -- -- -- -- -- --
Payable for
foreign currency
purchased 2,284 -- -- 843 -- -- --
Accrued expenses 427,982 371,735 482,764 199,678 361,787 415,061 374,907
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total
liabilities 4,743,267 891,336 531,657 531,954 33,024,420 441,659 7,459,943
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Assets
Consist of:
Paid in capital 185,834,286 185,664,122 157,013,847 188,404,555 128,306,126 173,874,052 328,165,076
Net unrealized
appreciation
(depreciation)
of investments,
futures
contracts, and
translation of
assets and
liabilities in
foreign
currency 31,146,818 97,509,934 150,601,197 171,931,440 26,641,809 (9,424,097) 30,093,634
Accumulated net
realized gain
(loss) on
investments,
futures, and
foreign
currency
transactions 26,577,888 4,150,097 20,174,967 2,580,205 5,582,832 (2,439,913) 35,649,094
Undistributed
net investment
income 239,114 332,163 508,138 592,972 828,037 814,497 2,216,328
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Net
Assets $243,798,106 $287,656,316 $328,298,149 $363,509,172 $161,358,804 $162,824,539 $396,124,132
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Assets
Class A Shares $ 48,266,386 $ 62,576,025 $125,297,769 $ 82,232,322 $ 66,599,750 $ 9,417,514 $ 78,670,168
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class B Shares $ 4,808,567 $ 14,545,921 $ -- $ -- $ -- $ -- $ 10,184,939
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class Y Shares $190,723,153 $210,534,370 $203,000,380 $281,276,850 $ 94,759,054 $153,407,025 $307,269,025
------------ ------------ ------------ ------------ ------------ ------------ ------------
Shares
Outstanding
Class A Shares 3,195,625 3,244,648 5,726,100 3,903,640 3,680,215 886,755 5,981,002
Class B Shares 319,160 756,272 -- -- -- -- 775,892
Class Y Shares 12,646,164 10,910,174 9,275,944 13,338,817 5,228,497 14,442,754 23,347,279
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Shares
Outstanding 16,160,949 14,911,094 15,002,044 17,242,457 8,908,712 15,329,509 30,104,173
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Asset Value
Per Share
Class A Shares $ 15.10 $ 19.29 $ 21.88 $ 21.07 $ 18.10 $ 10.62 $ 13.15
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class B Shares $ 15.07 $ 19.23 -- -- -- -- $ 13.13
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class Y Shares $ 15.08 $ 19.30 $ 21.88 $ 21.09 $ 18.12 $ 10.62 $ 13.16
------------ ------------ ------------ ------------ ------------ ------------ ------------
Offering Price
Per Share*
Class A Shares $ 15.81** $ 20.20** $ 22.91** $ 22.06** $ 18.95** $ 11.12** $ 13.77**
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class B Shares $ 15.07 $ 19.23 -- -- -- -- $ 13.13
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class Y Shares $ 15.08 $ 19.30 $ 21.88 $ 21.09 $ 18.12 $ 10.62 $ 13.16
------------ ------------ ------------ ------------ ------------ ------------ ------------
Redemption
Proceeds Per
Share*
Class A Shares $ 15.10 $ 19.29 $ 21.88 $ 21.07 $ 18.10 $ 10.62 $ 13.15
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class B Shares $ 14.32*** $ 18.27*** -- -- -- -- $ 12.60***
------------ ------------ ------------ ------------ ------------ ------------ ------------
Class Y Shares $ 15.08 $ 19.30 $ 21.88 $ 21.09 $ 18.12 $ 10.62 $ 13.16
------------ ------------ ------------ ------------ ------------ ------------ ------------
Investments, at
identified cost 211,490,329 189,979,371 174,235,967 191,380,954 136,510,866 171,708,399 365,189,219
------------ ------------ ------------ ------------ ------------ ------------ ------------
Investments, at
tax cost 211,490,329 189,979,371 174,235,967 191,380,954 136,510,866 171,708,399 365,189,219
------------ ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
* See "What Shares Cost" in the Prospectus.
** Computation of Offering Price: 100\95.50 of net asset value.
*** Computation of Redemption Proceeds: 95\100 of net asset value.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Statements of Assets and Liabilities--Continued
May 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Wachovia Wachovia
Wachovia Wachovia Wachovia North South Wachovia
Wachovia Intermediate Short Term Georgia Carolina Carolina Virginia
Fixed Income Fixed Income Fixed Income Municipal Municipal Municipal Municipal
Fund Fund Fund Bond Fund Bond Fund Bond Fund Bond Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments in
securities, at
value $211,623,842 $86,722,062 $98,812,556 $20,707,911 $60,799,788 $112,772,219 $106,400,673
Investments in
repurchase
agreements 13,651,247 6,554,398 12,530,809 -- -- -- --
Cash -- 11,095 -- -- -- 32,701 --
Income receivable 3,264,440 1,011,475 1,359,260 343,059 848,726 1,870,340 1,884,305
Receivable for
investments sold -- -- -- -- -- --
Receivable for
shares sold 960,072 -- -- -- -- 754,606 --
Receivable for
foreign currency
sold -- -- -- -- 69,400 -- --
Receivable for
daily variation
margin 164,962 -- -- -- -- -- --
Deferred
organizational
costs -- -- -- 13,987 12,604 -- --
Deferred Expenses -- -- -- -- 9,903 -- --
Other Assets 3,466 -- 3,833 7,736 -- -- --
------------ ----------- ------------ ----------- ----------- ------------ ------------
Total assets 229,668,029 94,299,030 112,706,458 21,072,693 61,740,421 115,429,866 108,284,978
------------ ----------- ------------ ----------- ----------- ------------ ------------
Liabilities:
Payable for
investments
purchased 5,060,840 -- -- -- -- -- --
Payable for shares
redeemed 697,093 3,479 48,601 141,783 -- 99,634 --
Income
distribution
payable -- -- -- 67,710 199,564 440,044 409,653
Payable to Bank 5,826,520 -- 21,768 6,279 82,885 -- --
Payable for taxes
withheld -- -- -- -- -- -- --
Payable for dollar
roll transactions 912 -- -- -- -- -- --
Payable for daily
variation margin 150,928 -- -- -- -- -- --
Payable for
reverse repurchase
agreement -- -- 11,123,750 -- -- -- --
Payable for
foreign currency
purchased -- -- -- -- -- -- --
Accrued expenses 253,796 57,300 132,836 45,027 114,075 141,637 52,816
------------ ----------- ------------ ----------- ----------- ------------ ------------
Total
liabilities 11,990,089 60,779 11,326,955 260,799 396,524 681,315 462,469
------------ ----------- ------------ ----------- ----------- ------------ ------------
Net Assets Consist
of:
Paid in capital 216,502,933 92,075,550 104,798,508 19,862,870 58,456,104 107,772,494 103,282,567
Net unrealized
appreciation
(depreciation) of
investments,
futures
contracts, and
translation of
assets and
liabilities in
foreign currency 3,064,284 4,686,361 300,682 937,526 2,795,058 6,857,593 6,639,970
Accumulated net
realized gain
(loss) on
investments,
futures, and
foreign currency
transactions (1,975,931) (2,527,648) (3,969,309) 11,498 81,467 118,464 (2,101,521)
Undistributed net
investment income 86,654 3,988 249,622 -- 11,268 -- 1,493
------------ ----------- ------------ ----------- ----------- ------------ ------------
Total Net Assets $217,677,940 $94,238,251 $101,379,503 $20,811,894 $61,343,897 $114,748,551 $107,822,509
------------ ----------- ------------ ----------- ----------- ------------ ------------
Net Assets
Class A Shares $ 14,209,904 $ 4,882,829 $ 9,402,450 $ 6,742,970 $10,707,117 $ 65,346,116 $ 8,759,996
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class B Shares $ 321,011 $ -- $ -- $ -- $ -- $ -- $ --
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class Y Shares $203,147,025 $89,355,422 $91,977,053 $14,068,924 $50,636,780 $49,402,435 $ 99,062,513
------------ ----------- ------------ ----------- ----------- ------------ ------------
Shares Outstanding
Class A Shares 1,430,485 482,836 961,707 600,620 948,996 5,810,518 843,686
Class B Shares 32,322 -- -- -- -- -- --
Class Y Shares 20,449,870 8,833,933 9,407,014 1,253,214 4,488,064 4,392,795 9,540,732
------------ ----------- ------------ ----------- ----------- ------------ ------------
Total Shares
Outstanding 21,912,677 9,316,769 10,368,721 1,853,834 5,437,060 10,203,313 10,384,418
------------ ----------- ------------ ----------- ----------- ------------ ------------
Net Asset Value
Per Share
Class A Shares $ 9.93 $ 10.11 $ 9.78 $ 11.23 $ 11.28 $ 11.25 $ 10.38
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class B Shares $ 9.93 -- -- -- -- -- --
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class Y Shares $ 9.93 $ 10.12 $ 9.78 $ 11.23 $ 11.28 $ 11.25 $ 10.38
------------ ----------- ------------ ----------- ----------- ------------ ------------
Offering Price Per
Share*
Class A Shares $ 10.40** $ 10.59** $ 10.03*** $ 11.76** $ 11.81** $ 11.78** $ 10.87**
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class B Shares $ 9.93 -- -- -- -- -- --
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class Y Shares $ 9.93 $ 10.12 $ 9.78 $ 11.23 $ 11.28 $ 11.25 $ 10.38
------------ ----------- ------------ ----------- ----------- ------------ ------------
Redemption
Proceeds Per
Share*
Class A Shares $ 9.93 $ 10.11 $ 9.78 $ 11.23 $ 11.28 $ 11.25 $ 10.38
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class B Shares $ 9.53**** --**** -- -- -- -- --
------------ ----------- ------------ ----------- ----------- ------------ ------------
Class Y Shares $ 9.93 $ 10.12 $ 9.78 $ 11.23 $ 11.28 $ 11.25 $ 10.38
------------ ----------- ------------ ----------- ----------- ------------ ------------
Investments, at
identified cost $222,272,666 $88,590,099 $111,042,683 $19,770,385 $58,004,730 $105,914,626 $ 99,760,703
------------ ----------- ------------ ----------- ----------- ------------ ------------
Investments, at
tax cost $222,272,666 $88,590,099 $111,042,683 $19,770,385 $58,004,730 $105,914,626 $ 99,760,703
------------ ----------- ------------ ----------- ----------- ------------ ------------
</TABLE>
* See "What Shares Cost" in the Prospectus.
*** Computation of Offering Price:
100\97.50 of net asset value.
** Computation of Offering Price: 100\95.50
of net asset value. **** Computation of Redemption
Proceeds: 95\100 of net asset
value.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
Statements of Operations
Six Months Ended May 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Wachovia Wachovia Wachovia Wachovia Wachovia
Wachovia Quantitative Growth & Equity Special Emerging Wachovia
Equity Equity Income Index Values Markets Balanced
Fund Fund Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 1,197,274 $ 1,797,748 $ 1,496,542 $ 2,392,569 $ 826,808 $ 1,994,153 $ 1,124,625
Interest 1,105,097 919,097 1,549,118 684,800 968,841 250,562 6,245,895
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total income 2,302,371 2,716,845 3,045,660 3,077,369 1,795,649 2,244,715 7,370,520
----------- ----------- ----------- ----------- ----------- ----------- -----------
Expenses:
Investment advisory fee 802,413 900,107 1,485,740 500,291 571,852 830,838 1,296,055
Administrative personnel
and services fee 110,911 124,358 270,215 162,021 69,115 80,424 179,146
Custodian fees 22,914 25,332 32,568 31,247 14,296 315,155 33,995
Transfer and dividend
disbursing agent fees and
expenses 8,976 8,976 66,468 5,984 5,984 43,087 8,976
Trustees' fees 3,491 3,242 4,613 2,594 1,745 2,798 7,480
Auditing fees 7,979 7,979 8,758 7,979 7,979 6,769 7,979
Legal fees 3,740 3,740 25,076 4,239 2,244 7,651 6,982
Portfolio accounting fees 6,982 6,982 35,964 6,982 6,982 22,697 10,969
Distribution services
fee--Class A Shares -- -- 270,221 -- -- -- --
Distribution services
fee--Class B Shares 15,511 36,378 -- -- -- -- 29,480
Shareholder services fee--
Class A Shares 56,262 59,042 27,190 86,088 66,897 11,574 83,768
Shareholder services fee--
Class B Shares 5,170 12,126 -- -- -- -- 9,827
Share registration costs 59,631 73,705 40,180 15,290 13,840 16,841 44,530
Printing and postage 7,480 7,480 1,196 7,480 7,480 (4,984) 8,976
Insurance premiums 2,892 3,141 11,988 2,244 1,745 1,255 2,892
Miscellaneous 5,984 7,273 2,105 5,984 5,984 5,141 5,984
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total expenses 1,120,336 1,279,861 2,282,282 838,423 776,143 1,339,246 1,737,039
----------- ----------- ----------- ----------- ----------- ----------- -----------
Waivers--
Waiver of investment
advisory fee (12,083) (53,611) (268,372) (682) -- -- (207,376)
Waiver of administrative
personnel and services
fee -- -- (54,046) -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total waivers (12,083) (53,611) (322,418) (682) -- -- (207,376)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net expenses 1,108,253 1,226,250 1,959,864 837,741 -- -- 1,529,663
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net investment income 1,194,118 1,490,595 1,085,796 2,239,628 1,019,506 905,469 5,840,857
----------- ----------- ----------- ----------- ----------- ----------- -----------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain (loss)
on investments, futures
contracts and foreign
currency transactions 27,667,610 4,854,078 20,174,949 3,152,006 5,547,537 998,937 36,427,818
Net change in unrealized
appreciation
(depreciation) of
investments, futures
contracts and translation
of assets and liabilities
in foreign currency (6,107,691) 23,261,672 16,215,807 39,535,017 4,224,151 (7,927,938) (14,001,955)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net realized and
unrealized gain (loss)
on investments, futures
contracts and foreign
currency 21,559,919 28,115,750 36,390,756 42,687,023 9,771,688 (6,929,001) 22,425,863
----------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations $22,754,037 $29,606,345 $37,476,552 $44,926,651 $10,791,194 $(6,023,532) $28,266,720
----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
Statements of Operations--Continued
Six Months Ended May 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Wachovia Wachovia
Wachovia Wachovia Wachovia North South Wachovia
Wachovia Intermediate Short Term Georgia Carolina Carolina Virginia
Fixed Income Fixed Income Fixed Income Municipal Municipal Municipal Municipal
Fund Fund Fund Bond Fund Bond Fund Bond Fund Bond Fund
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 267,831 $ -- $ 75,206 $ -- $ -- $ -- $ --
Interest 6,402,996 3,020,867 3,116,109 491,881 1,397,427 3,028,486 2,940,654
---------- ---------- ---------- -------- ---------- ---------- ----------
Total income 6,670,827 3,020,867 3,191,315 491,881 1,397,427 3,028,486 2,940,654
---------- ---------- ---------- -------- ---------- ---------- ----------
Expenses:
Investment advisory fee 622,986 323,074 282,063 75,277 216,275 420,740 403,665
Administrative personnel
and services fee 100,628 77,489 49,766 9,729 27,942 54,403 89,938
Custodian fees 20,766 9,501 10,257 2,007 5,767 11,220 11,004
Transfer and dividend
disbursing agent fees and
expenses 8,976 12,055 5,984 5,984 5,984 5,984 11,640
Trustees' fees 4,488 2,226 2,493 1,496 1,995 3,491 2,365
Auditing fees 7,979 5,511 7,979 7,979 7,979 7,979 6,126
Legal fees 6,233 9,025 4,388 2,992 2,493 3,989 9,850
Portfolio accounting fees 9,972 13,099 8,976 6,483 6,483 6,483 20,241
Distribution services
fee--Class A Shares -- 78,135 -- -- -- -- 90,942
Distribution services
fee--Class B Shares 864 -- -- -- -- -- --
Shareholder services fee--
Class A Shares 15,474 1,043 11,533 8,304 13,501 80,785 1,851
Shareholder services fee--
Class B Shares 288 -- -- -- -- -- --
Share registration costs 64,010 40,462 11,884 21,933 61,138 39,353 22,474
Printing and postage 7,480 1,304 7,480 5,984 5,982 5,982 1,686
Insurance premiums 2,892 4,522 1,673 1,496 2,493 2,195 5,115
Miscellaneous 5,984 2,034 7,333 7,979 7,730 3,990 391
---------- ---------- ---------- -------- ---------- ---------- ----------
Total expenses 879,020 579,480 411,809 157,643 365,762 646,594 677,288
---------- ---------- ---------- -------- ---------- ---------- ----------
Waivers--
Waiver of investment
advisory fee (94,045) (106,934) (77,187) (56,999) (107,149) (240,437) (179,398)
Waiver of administrative
personnel and services
fee -- (15,628) -- -- -- -- (18,189)
---------- ---------- ---------- -------- ---------- ---------- ----------
Total waivers (94,045) (122,562) (77,187) (56,999) (107,149) (240,437) (197,587)
---------- ---------- ---------- -------- ---------- ---------- ----------
Net expenses 784,975 456,918 334,622 100,644 258,613 406,157 479,701
---------- ---------- ---------- -------- ---------- ---------- ----------
Net investment income 5,885,852 2,563,949 2,856,693 391,237 1,138,814 2,622,329 2,460,953
---------- ---------- ---------- -------- ---------- ---------- ----------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain (loss)
on investments, futures
contracts and foreign
currency transactions 965,268 651,836 118,576 25,749 104,496 117,807 226,898
Net change in unrealized
appreciation
(depreciation) of
investments, futures
contracts and translation
of assets and liabilities
in foreign currency 947,142 408,961 124,790 180,043 604,877 1,068,191 1,014,382
---------- ---------- ---------- -------- ---------- ---------- ----------
Net realized and
unrealized gain (loss)
on investments, futures
contracts and foreign
currency 1,912,410 1,060,797 243,366 205,792 709,373 1,185,998 1,241,280
---------- ---------- ---------- -------- ---------- ---------- ----------
Change in net assets
resulting from
operations $7,798,262 $3,624,746 $3,100,059 $597,029 $1,848,187 $3,808,327 $3,702,233
---------- ---------- ---------- -------- ---------- ---------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Wachovia
Wachovia Wachovia Growth &
Equity Fund Quantitative Equity Fund Income Fund
-------------------------- -------------------------- ---------------------------
Six-Months Six-Months Six-Months
Ended Year Ended Year Ended Year
(unaudited) Ended (unaudited) Ended (unaudited) Ended
May 31, November 30, May 31, November 30, May 31, November 30,
1998 1997 1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase
(Decrease) in Net
Assets:
Operations--
Net investment
income $ 1,194,118 $ 1,994,072 $ 1,490,595 $ 2,493,563 $ 1,085,796 $ 1,978,918
Net realized gain
(loss) on
investments,
futures
contracts and
foreign currency
transactions 27,667,610 21,611,578 4,854,078 21,181,733 20,174,949 16,598,799
Net change in
unrealized
appreciation
(depreciation)
of investments,
futures
contracts and
translation of
assets and
liabilities in
foreign currency (6,107,691) 8,827,358 23,261,672 25,902,907 16,215,807 52,298,822
------------ ------------ ------------ ------------ ------------- ------------
Change in net
assets
resulting from
operations 22,754,037 32,433,008 29,606,345 49,578,203 37,476,552 70,876,539
------------ ------------ ------------ ------------ ------------- ------------
Distributions to
Shareholders--
Distributions
from net
investment
income
Class A Shares (181,477) (232,040) (228,132) (252,900) (693,342) (1,922,360)
Class B Shares (2,386) (4,850) (16,517) (14,224) -- --
Class Y Shares (911,052) (1,617,271) (1,247,929) (2,258,523) -- --
Distributions
from net
realized gain on
investments,
futures
contracts and
foreign currency
Class A Shares (4,382,604) (2,671,987) (3,354,335) (807,333) (16,598,781) (2,918,533)
Class B Shares (386,343) (136,882) (633,226) (76,012) -- --
Class Y Shares (17,186,819) (16,595,269) (16,891,130) (7,488,144) -- --
------------ ------------ ------------ ------------ ------------- ------------
Change in net
assets from
distributions
to shareholders (23,050,681) (21,258,299) (22,371,269) (10,897,136) (17,292,123) (4,840,893)
------------ ------------ ------------ ------------ ------------- ------------
Share
Transactions--
Proceeds from
sale of shares 48,538,244 69,940,131 48,484,091 41,943,131 224,298,559 115,596,820
Net asset value
of shares issued
to shareholders
in payment of
dividends
declared 17,790,557 16,317,548 20,587,772 10,021,886 9,220,623 2,817,198
Cost of shares
redeemed (21,413,518) (49,207,949) (13,641,483) (35,382,919) (264,129,091) (31,873,304)
------------ ------------ ------------ ------------ ------------- ------------
Change in net
assets from
share
transactions 44,915,283 37,049,730 55,430,380 16,582,098 (30,609,909) 86,540,714
------------ ------------ ------------ ------------ ------------- ------------
Change in net
assets 44,618,639 48,224,439 62,665,456 55,263,165 (10,425,480) 152,576,360
Net Assets:
Beginning of
period 199,179,467 150,955,028 224,990,860 169,727,695 338,723,629 186,147,269
------------ ------------ ------------ ------------ ------------- ------------
End of period $243,798,106 $199,179,467 $287,656,316 $224,990,860 $ 328,298,149 $338,723,629
------------ ------------ ------------ ------------ ------------- ------------
Undistributed net
investment
income included
in net assets at
end of period $ 239,114 $ 139,911 $ 332,163 $ 334,146 $ 508,138 $ 115,684
------------ ------------ ------------ ------------ ------------- ------------
Net gain (loss)
as computed for
federal tax
purposes $ 27,667,610 $ 21,969,527 $ 4,854,078 $ 20,877,543 $ 20,174,949 $ 16,598,799
------------ ------------ ------------ ------------ ------------- ------------
<CAPTION>
Wachovia
Equity Index Fund
---------------------------
Six-Months
Ended Year
(unaudited) Ended
May 31, November 30,
1998 1997
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase
(Decrease) in Net
Assets:
Operations--
Net investment
income $ 2,239,628 $ 4,559,236
Net realized gain
(loss) on
investments,
futures
contracts and
foreign currency
transactions 3,152,006 9,330,534
Net change in
unrealized
appreciation
(depreciation)
of investments,
futures
contracts and
translation of
assets and
liabilities in
foreign currency 39,535,017 52,679,625
------------- -------------
Change in net
assets
resulting from
operations 44,926,651 66,569,395
------------- -------------
Distributions to
Shareholders--
Distributions
from net
investment
income
Class A Shares (383,763) (407,720)
Class B Shares -- --
Class Y Shares (1,821,526) (4,327,003)
Distributions
from net
realized gain on
investments,
futures
contracts and
foreign currency
Class A Shares (1,189,051) (1,056,751)
Class B Shares -- --
Class Y Shares (5,186,506) (12,242,705)
------------- -------------
Change in net
assets from
distributions
to shareholders (8,580,846) (18,034,179)
------------- -------------
Share
Transactions--
Proceeds from
sale of shares 57,248,003 91,500,545
Net asset value
of shares issued
to shareholders
in payment of
dividends
declared 8,266,042 17,882,140
Cost of shares
redeemed (37,116,652) (91,139,571)
------------- -------------
Change in net
assets from
share
transactions 28,397,393 18,243,114
------------- -------------
Change in net
assets 64,743,198 66,778,330
Net Assets:
Beginning of
period 298,765,974 231,987,644
------------- -------------
End of period $363,509,172 $298,765,974
------------- -------------
Undistributed net
investment
income included
in net assets at
end of period $ 592,972 $ 558,633
------------- -------------
Net gain (loss)
as computed for
federal tax
purposes $ 3,152,006 $ 6,555,110
------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Statements of Changes in Net Assets--Continued
<TABLE>
<CAPTION>
Wachovia Wachovia Wachovia
Special Values Fund Emerging Markets Fund Balanced Fund
-------------------------- -------------------------- --------------------------
Six-Months Six-Months Six-Months
Ended Year Ended Year Ended Year
(unaudited) Ended (unaudited) Ended (unaudited) Ended
May 31, November 30, May 31, November 30, May 31, November 30,
1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Operations--
Net investment income $ 1,019,506 $ 815,047 $ 905,469 $ 843,594 $ 5,840,857 $ 8,465,366
Net realized gain
(loss) on investments,
futures contracts and
foreign currency
transactions 5,547,537 11,566,029 998,937 (2,010,173) 36,427,818 21,825,742
Net change in
unrealized
appreciation
(depreciation) of
investments, futures
contracts and
translation of assets
and liabilities in
foreign currency 4,224,151 14,611,780 (7,927,938) (6,335,506) (14,001,955) 10,777,276
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations 10,791,194 26,992,856 (6,023,532) (7,502,085) 28,266,720 41,068,384
------------ ------------ ------------ ------------ ------------ ------------
Distributions to
Shareholders--
Distributions from net
investment income
Class A Shares (272,696) (37,238) (79,885) (48,643) (879,491) (672,386)
Class B Shares -- -- -- -- (75,369) (71,302)
Class Y Shares (656,635) (307,189) (1,627,997) (1,158,562) (4,158,796) (7,260,971)
Distributions from net
realized gain on
investments, futures
contracts and foreign
currency
Class A Shares (3,883,188) (749,987) -- (1,807) (3,838,117) (2,073,561)
Class B Shares -- -- -- -- (425,121) (233,429)
Class Y Shares (7,685,327) (6,186,789) -- (43,032) (16,816,254) (25,776,332)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from distributions to
shareholders (12,497,846) (7,281,203) (1,707,882) (1,252,044) (26,193,148) (36,087,981)
------------ ------------ ------------ ------------ ------------ ------------
Share Transactions--
Proceeds from sale of
shares 42,533,484 60,929,497 31,213,635 46,209,018 97,150,173 93,790,901
Net asset value of
shares issued to
shareholders in
payment of dividends
declared 11,067,461 4,550,589 616,589 366,510 24,304,632 33,640,055
Cost of shares redeemed (12,801,802) (28,264,108) (8,970,433) (18,648,451) (34,371,726) (81,676,189)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions 40,799,143 37,215,978 22,859,791 27,927,077 87,083,079 45,754,767
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets 39,092,491 56,927,631 15,128,377 19,172,948 89,156,651 50,735,170
Net Assets:
Beginning of period 122,266,313 65,338,682 147,696,162 128,523,214 306,967,481 256,232,311
------------ ------------ ------------ ------------ ------------ ------------
End of period $161,358,804 $122,266,313 $162,824,539 $147,696,162 $396,124,132 $306,967,481
------------ ------------ ------------ ------------ ------------ ------------
Undistributed net
investment income
included in net assets
at end of period $ 828,037 $ 737,862 $ 814,497 $ 1,616,910 $2,216,330 $ 1,489,127
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) as
computed for federal
tax purposes $ 5,547,537 $ 11,599,442 $ 998,937 $ (3,405,307) $ 36,427,818 $ 21,079,435
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Statements of Changes in Net Assets--Continued
<TABLE>
<CAPTION>
Wachovia
Intermediate Wachovia
Wachovia Fixed Income Short-Term
Fixed Income Fund Fund Fixed Income Fund
-------------------------- -------------------------- --------------------------
Six-Months Six-Months Six-Months
Ended Year Ended Year Ended Year
(unaudited) Ended (unaudited) Ended (unaudited) Ended
May 31, November 30, May 31, November 30, May 31, November 30,
1998 1997 1998 1997 1998 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Operations--
Net investment income $ 5,885,852 $ 11,110,786 $ 2,563,949 $ 5,172,640 $ 2,856,693 $ 6,473,738
Net realized gain
(loss) on investments 965,268 401,138 651,836 8,742 118,576 (47,627)
Net change in
unrealized
appreciation
(depreciation) of
investments, futures
contracts and
translation of assets
and liabilities in
foreign currency 947,142 187,933 408,961 1,259,312 124,790 (466,786)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations 7,798,262 11,699,857 3,624,746 6,440,694 3,100,059 5,959,325
------------ ------------ ------------ ------------ ------------ ------------
Distributions to
Shareholders--
Distributions from net
investment income
Class A Shares (349,128) (322,564) (2,009,847) (4,996,146) (258,511) (146,241)
Class B Shares (5,672) (6,034) -- -- -- --
Class Y Shares (5,699,521) (10,855,582) (796,514) -- (2,788,412) (6,039,048)
Distributions from net
realized gain on
investments
Class A Shares -- -- -- -- -- --
Class B Shares -- -- -- -- -- --
Class Y Shares -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from distributions to
shareholders (6,054,321) (11,184,180) (2,806,361) (4,996,146) (3,046,923) (6,185,289)
------------ ------------ ------------ ------------ ------------ ------------
Share Transactions--
Proceeds from sale of
shares 36,491,170 69,384,069 95,857,122 73,017,952 16,893,713 25,140,979
Net asset value of
shares issued to
shareholders in
payment of
distributions declared 3,721,946 7,430,398 328,444 415,495 2,944,047 5,994,718
Cost of shares redeemed (19,856,579) (62,554,695) (99,391,325) (21,529,499) (16,807,813) (50,426,221)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions 20,356,537 14,259,772 (3,205,759) 51,903,948 3,029,947 (19,290,524)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets 22,100,478 14,775,449 (2,387,374) 53,348,496 3,083,083 (19,516,488)
Net Assets:
Beginning of period 195,577,462 180,802,013 96,625,625 43,277,129 98,296,420 117,812,908
------------ ------------ ------------ ------------ ------------ ------------
End of period $217,677,940 $195,577,462 $ 94,238,251 $ 96,625,625 $101,379,503 $ 98,296,420
------------ ------------ ------------ ------------ ------------ ------------
Undistributed net
investment income
included in net assets
at end of period $ 86,654 $ 255,123 $ 3,988 $ 246,400 $ 249,622 $ 439,852
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) as
computed for federal
tax purposes $ 965,268 $ 264,995 $ 651,836 $ 8,742 $ 118,576 $ (86,270)
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Statements of Changes in Net Assets--Continued
<TABLE>
<CAPTION>
Wachovia Wachovia Wachovia
Georgia Muncipal North Carolina South Carolina
Bond Fund Municipal Bond Fund Municipal Bond Fund
------------------------- ------------------------- --------------------------
Six-Months Six-Months Six-Months
Ended Year Ended Year Ended Year
(unaudited) Ended (unaudited) Ended (unaudited) Ended
May 31, November 30, May 31, November 30, May 31, November 30,
1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase
(Decrease) in Net
Assets:
Operations--
Net investment
income $ 391,237 $ 628,014 $ 1,138,814 $ 1,997,434 $ 2,622,329 $ 4,986,776
Net realized gain
(loss) on
investments 25,749 (8,085) 104,496 10,685 117,807 10,650
Net change in
unrealized
appreciation
(depreciation)
of investments,
futures
contracts and
translation of
assets and
liabilities in
foreign currency 180,043 206,101 604,877 796,079 1,068,191 1,147,316
----------- ----------- ----------- ----------- ------------ ------------
Change in net
assets
resulting from
operations 597,029 826,030 1,848,187 2,804,198 3,808,327 6,144,742
----------- ----------- ----------- ----------- ------------ ------------
Distributions to
Shareholders--
Distributions
from net
investment
income
Class A Shares (123,800) (276,085) (202,165) (473,828) (1,479,231) (3,029,296)
Class B Shares -- -- -- -- -- --
Class Y Shares (267,437) (351,929) (936,649) (1,512,338) (1,143,098) (1,957,480)
Distributions
from net
realized gain on
investments
Class A Shares (2,076) (16,530) (6,494) (28,618) (5,753) (255,495)
Class B Shares -- -- -- -- -- --
Class Y Shares (3,949) (14,820) (25,032) (60,175) (4,021) (148,165)
----------- ----------- ----------- ----------- ------------ ------------
Change in net
assets from
distributions
to shareholders (397,262) (659,364) (1,170,340) (2,074,959) (2,632,103) (5,390,436)
----------- ----------- ----------- ----------- ------------ ------------
Share
Transactions--
Proceeds from
sale of shares 2,553,338 7,467,225 9,328,168 20,407,274 12,737,359 20,124,701
Net asset value
of shares issued
to shareholders
in payment of
distributions
declared 111,026 279,914 209,097 523,177 835,334 2,257,902
Cost of shares
redeemed (891,144) (3,408,420) (4,538,542) (8,027,587) (8,577,276) (17,051,285)
----------- ----------- ----------- ----------- ------------ ------------
Change in net
assets from
share
transactions 1,773,220 4,338,719 4,998,723 12,902,864 4,995,417 5,331,318
----------- ----------- ----------- ----------- ------------ ------------
Change in net
assets 1,972,987 4,505,385 5,676,570 13,632,103 6,171,641 6,085,624
Net Assets:
Beginning of
period 18,838,907 14,333,522 55,667,327 42,035,224 108,576,910 102,491,286
----------- ----------- ----------- ----------- ------------ ------------
End of period $20,811,894 $18,838,907 $61,343,897 $55,667,327 $114,748,551 $108,576,910
----------- ----------- ----------- ----------- ------------ ------------
Undistributed net
investment
income included
in net assets at
end of period $ -- $ -- $ 11,268 $ 11,268 $ -- $ --
----------- ----------- ----------- ----------- ------------ ------------
Net gain (loss)
as computed for
federal tax
purposes $ 25,749 $ 5,985 $ 104,496 $ 20,140 $ 117,807 $ 10,650
----------- ----------- ----------- ----------- ------------ ------------
<CAPTION>
Wachovia
Virginia Municipal
Bond Fund
----------------------------
Six-Months
Ended Year
(unaudited) Ended
May 31, November 30,
1998 1997
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase
(Decrease) in Net
Assets:
Operations--
Net investment
income $ 2,460,953 $ 5,048,138
Net realized gain
(loss) on
investments 226,898 202,630
Net change in
unrealized
appreciation
(depreciation)
of investments,
futures
contracts and
translation of
assets and
liabilities in
foreign currency 1,014,382 1,718,079
-------------- -------------
Change in net
assets
resulting from
operations 3,702,233 6,968,847
-------------- -------------
Distributions to
Shareholders--
Distributions
from net
investment
income
Class A Shares (1,913,018) (4,898,834)
Class B Shares -- --
Class Y Shares (794,681) --
Distributions
from net
realized gain on
investments
Class A Shares -- --
Class B Shares -- --
Class Y Shares -- --
-------------- -------------
Change in net
assets from
distributions
to shareholders (2,707,699) (4,898,834)
-------------- -------------
Share
Transactions--
Proceeds from
sale of shares 105,247,230 58,796,406
Net asset value
of shares issued
to shareholders
in payment of
distributions
declared 165,750 360,850
Cost of shares
redeemed (109,744,978) (20,445,697)
-------------- -------------
Change in net
assets from
share
transactions (4,331,998) 38,711,559
-------------- -------------
Change in net
assets (3,337,464) 40,781,572
Net Assets:
Beginning of
period 111,159,973 70,378,401
-------------- -------------
End of period $107,822,509 $111,159,973
-------------- -------------
Undistributed net
investment
income included
in net assets at
end of period $ 1,493 $ 248,239
-------------- -------------
Net gain (loss)
as computed for
federal tax
purposes $ 226,898 $ 202,630
-------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class A Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Distributions
from Net
Net Realized Realized
and Unrealized Gain on
Gain/(Loss) on Investment
Investments, Transcations,
Net Futures Futures Distributions
Net Asset Investment Contracts, and Distributions Contracts and in excess Distributions
Value, Income/ Foreign Total from from Net Foreign of net in excess of
Period Ended beginning (Operating Currency Investment Investment Currency investment net realized
November 30, of period Loss) Transactions Operations Income Transactions income gains
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA EQUITY FUND
1993(a) $10.00 0.12 0.25 0.37 (0.09) -- -- --
1994 $10.28 0.20 0.12 0.32 (0.20) (0.08) -- --
1995 $10.32 0.23 2.64 2.87 (0.25) (0.23) -- --
1996 $12.71 0.22(i) 2.83 3.05 (0.22) (0.73) -- --
1997 $14.81 0.14(i) 2.43 2.57 (0.13) (1.86) -- --
1998(k) $15.39 0.05 1.40 1.45 (0.06) (1.68) -- --
WACHOVIA QUANTITATIVE EQUITY FUND
1994(b) $10.00 0.12 (0.43) (0.31) (0.09) -- -- --
1995 $ 9.60 0.22 3.51 3.73 (0.22) -- -- --
1996 $13.11 0.24(i) 2.77 3.01 (0.21) (0.24) -- --
1997 $15.67 0.18(i) 4.14 4.32 (0.20) (0.79) -- --
1998(k) $19.00 (0.02) 2.16 2.14 (0.10) (1.75) -- --
WACHOVIA GROWTH & INCOME FUND
1993(l) $10.00 0.15 0.19 0.34 (0.14) -- -- --
1994 $10.20 0.17 (0.40) (0.23) (0.17) -- -- --
1995 $ 9.80 0.17 3.09 3.26 (0.17) -- (0.01) --
1996 $12.88 0.15 3.67 3.82 (0.15) (0.14) -- --
1997 $16.41 0.13 4.44 4.57 (0.13) (0.25) -- --
1998(k) $20.60 0.05 2.27 2.32 (0.03) (1.01) -- --
WACHOVIA EQUITY INDEX FUND
1993(a) $10.00 0.15 0.43 0.58 (0.11) -- -- --
1994 $10.47 0.25 (0.19) 0.06 (0.24) (0.02) -- --
1995 $10.27 0.28 3.37 3.65 (0.27) (0.03) -- --
1996 $13.62 0.32(i) 3.13 3.45 (0.31) (0.78) -- --
1997 $15.98 0.25(i) 3.85 4.10 (0.28) (0.91) -- --
1998(k) $18.89 0.01 2.69 2.70 (0.12) (0.40) -- --
WACHOVIA SPECIAL VALUES FUND
1993(a) $10.00 (0.002) 0.242 0.24 -- -- -- --
1994 $10.24 0.06 (0.22) (0.16) (0.05) (0.28) -- --
1995 $ 9.75 0.09 2.42 2.51 (0.02) (0.06) -- --
1996 $12.18 0.35 4.13 4.48 (0.08) (0.91) -- --
1997 $15.67 0.13(i) 4.53 4.66 (0.08) (1.61) -- --
1998(k) $18.64 0.08 1.21 1.29 (0.12) (1.71) -- --
WACHOVIA EMERGING MARKETS FUND
1995(c) $10.00 0.05 0.36 0.41 -- -- -- --
1996 $10.41 0.09(i) 1.20 1.29 (0.03) -- -- --
1997 $11.67 0.03(i) (0.47) (0.44) (0.11) -- -- --
1998(k) $11.12 (0.07) (0.32) (0.39) (0.11) -- -- --
WACHOVIA BALANCED FUND
1993(a) $10.00 0.19 0.29 0.48 (0.15) -- -- --
1994 $10.33 0.35 (0.38) (0.03) (0.33) (0.04) -- --
1995 $ 9.93 0.40 2.13 2.53 (0.38) (0.16) -- --
1996 $11.92 0.38(i) 1.72 2.10 (0.38) (0.34) -- --
1997 $13.30 0.34(i) 1.40 1.74 (0.34) (1.44) -- --
1998(k) $13.26 0.08 0.89 0.97 (0.18) (0.90) -- --
<CAPTION>
Period Ended Total
November 30, Distributions
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
WACHOVIA EQUITY FUND
1993(a) (0.09)
1994 (0.28)
1995 (0.48)
1996 (0.95)
1997 (1.99)
1998(k) (1.74)
WACHOVIA QUANTITATIVE EQUITY FUND
1994(b) (0.09)
1995 (0.22)
1996 (0.45)
1997 (0.99)
1998(k) (1.85)
WACHOVIA GROWTH & INCOME FUND
1993(l) (0.14)
1994 (0.17)
1995 (0.18)
1996 (0.29)
1997 (0.38)
1998(k) (1.04)
WACHOVIA EQUITY INDEX FUND
1993(a) (0.11)
1994 (0.26)
1995 (0.30)
1996 (1.09)
1997 (1.19)
1998(k) (0.52)
WACHOVIA SPECIAL VALUES FUND
1993(a) --
1994 (0.33)
1995 (0.08)
1996 (0.99)
1997 (1.69)
1998(k) (1.83)
WACHOVIA EMERGING MARKETS FUND
1995(c) --
1996 (0.03)
1997 (0.11)
1998(k) (0.11)
WACHOVIA BALANCED FUND
1993(a) (0.15)
1994 (0.37)
1995 (0.54)
1996 (0.72)
1997 (1.78)
1998(k) (1.08)
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from May 10, 1993 (date of initial public
investment) to November 30, 1993.
(b) Reflects operations for the period from March 28, 1994 (date of initial
public investment) to November 30, 1994.
(c) Reflects operations for the period from December 26, 1994 (date of initial
public investment) to November 30, 1995.
(d) Prior to November 30, 1993 the Fund's year end was September 30. (e)
Reflects operations for the period from January 11, 1991 (date of initial
public investment) to September 30, 1991.
(f) Reflects operations for the two months ended November 30, 1993.
(g) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(h) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(i) Per share information is based on average shares outstanding. (j) Represents
total comissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which comissions were charged.
(k) For six-months ended May 31, 1998 (unaudited).
(l) Period from January 29, 1993 (commencement of operations) to November 30,
1993.
(m) Period from February 1, 1993 (commencement of operations) to November 30,
1993.
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class A Shares--Continued
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Distributions
from Net
Net Realized Realized
and Unrealized Gain on
Gain/(Loss) on Investment
Investments, Transcations,
Net Futures Futures Distributions
Net Asset Investment Contracts, and Distributions Contracts and in excess Distributions
Value, Income/ Foreign Total from from Net Foreign of net in excess of
Period Ended beginning (Operating Currency Investment Investment Currency investment net realized Total
November 30, of period Loss) Transactions Operations Income Transactions income gains Distributions
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA FIXED INCOME FUND
1993(a) $10.00 0.31 (0.01) 0.30 (0.30) -- -- -- (0.30)
1994 $10.00 0.56 (0.98) (0.42) (0.55) (0.06) -- -- (0.61)
1995 $ 8.97 0.58 0.92 1.50 (0.57) -- -- -- (0.57)
1996 $ 9.90 0.61(i) (0.09) 0.52 (0.59) -- -- -- (0.59)
1997 $ 9.83 0.54(i) 0.04 0.58 (0.56) -- -- -- (0.56)
1998(k) $ 9.85 0.06 0.30 0.36 (0.28) -- -- -- (0.28)
WACHOVIA INTERMEDIATE FIXED INCOME FUND
1993(l) $10.00 0.33 0.19 0.52 (0.32) -- -- -- (0.32)
1994 $10.20 0.44 (0.79) (0.35) (0.43) -- (0.01) (0.10) (0.54)
1995 $ 9.31 0.55 0.76 1.31 (0.54) -- (0.01) -- (0.55)
1996 $10.07 0.55 (0.11) 0.44 (0.55) -- -- -- (0.55)
1997 $ 9.96 0.54 0.06 0.60 (0.53) -- -- -- (.053)
1998(k) $10.03 0.20 0.14 0.34 (0.26) -- -- -- (0.26)
WACHOVIA SHORT-TERM FIXED INCOME FUND
1993(a) $10.00 0.27 (0.10) 0.17 (0.26) -- -- -- (0.26)
1994 $ 9.91 0.45 (0.33) 0.12 (0.45) -- -- -- (0.45)
1995 $ 9.58 0.59 0.24 0.83 (0.52) -- -- -- (0.52)
1996 $ 9.89 0.56(i) (0.06) 0.50 (0.60) -- -- -- (0.60)
1997 $ 9.79 0.50(i) (0.01) 0.49 (0.51) -- -- -- (0.51)
1998(k) $ 9.77 0.28 0.01 0.29 (0.28) -- -- -- 0.28
WACHOVIA GEORGIA MUNICIPAL BOND FUND
1995(c) $10.00 0.41 0.96 1.37 (0.41) -- -- -- (0.41)
1996 $10.96 0.47 0.05 0.52 (0.47) (0.01) -- -- (0.48)
1997 $11.00 0.44 0.13 0.57 (0.44) (0.02) -- -- (0.46)
1998(k) $11.11 0.21 0.12 0.33 (0.21) -- -- -- (0.21)
WACHOVIA NORTH CAROLINA MUNICIPAL BOND FUND
1995(c) $10.00 0.43 0.99 1.42 (0.43) -- -- -- (0.43)
1996 $10.99 0.45 0.09 0.54 (0.45) (0.05) -- -- (0.50)
1997 $11.03 0.43 0.14 0.57 (0.43) (0.02) -- -- (0.45)
1998(k) $11.15 0.21 0.14 0.35 (0.21) (0.01) -- -- (0.22)
WACHOVIA SOUTH CAROLINA MUNICIPAL BOND FUND(D)
9/30/91(e) $10.00 0.43 0.17 0.60 (0.43) -- -- -- (0.43)
9/30/92 $10.17 0.60 0.36 0.96 (0.60) -- -- -- (0.60)
9/30/93 $10.53 0.59 0.74 1.33 (0.59) -- -- -- (0.59)
11/30/93(f) $11.27 0.10 (0.15) (0.05) (0.10) -- -- -- (0.10)
11/30/94 $11.12 0.56 (1.04) (0.48) (0.56) (0.03) -- -- (0.59)
11/30/95 $10.05 0.56 1.10 1.66 (0.56) (0.10) -- -- (0.66)
11/30/96 $11.05 0.55 0.03 0.58 (0.55) (0.03) -- -- (0.58)
11/30/97 $11.05 0.53 0.11 0.64 (0.52) (0.05) -- -- (0.57)
1998(k) $11.12 0.26 0.13 0.39 (0.26) -- -- -- (0.26)
WACHOVIA VIRGINIA MUNICIPAL BOND FUND
1993(m) $10.00 0.28 0.30 0.58 (0.27) -- -- -- (0.27)
1994 $10.31 0.38 (0.90) (0.52) (0.38) -- (0.01) -- (0.39)
1995 $ 9.40 0.42 0.85 1.27 (0.42) -- -- -- (0.42)
1996 $10.25 0.44 (0.10) 0.34 (0.44) -- -- -- (0.44)
1997 $10.15 0.46 0.13 0.59 (0.45) -- -- -- (0.45)
1998(k) $10.30 0.17 0.10 0.27 (0.19) -- -- -- (0.19)
</TABLE>
*Computed on an annualized basis.
(a) Reflects operations for the period from May 10, 1993 (date of initial public
investment) to November 30, 1993.
(b) Reflects operations for the period from March 28, 1994 (date of initial
public investment) to November 30, 1994.
(c) Reflects operations for the period from December 26, 1994 (date of initial
public investment) to November 30, 1995.
(d) Prior to November 30, 1993 the Fund's year end was September 30. (e)
Reflects operations for the period from January 11, 1991 (date of initial
public investment) to September 30, 1991.
(f) Reflects operations for the two months ended November 30, 1993.
(g) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(h) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(i) Per share information is based on average shares outstanding. (j) Represents
total comissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which comissions were charged.
(k) For six-months ended May 31, 1998 (unaudited).
(l) Period from January 29, 1993 (commencement of operations) to November 30,
1993.
(m) Period from February 1, 1993 (commencement of operations) to November 30,
1993.
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class A Shares--Continued
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Ratios to Average Net Assets
-------------------------------------
Net Asset Net Net Assets, end Average Portfolio
Period Ended Value, end Total Investment Expense Waiver/ of period (000 Commission Turnover
November 30, of period Return(g) Expenses Income Reimbursement(h) omitted) Rate Paid(j) Rate
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA EQUITY FUND
1993(a) $10.28 3.68% 0.81%* 2.18%* 0.32%* $ 61,997 -- 50%
1994 $10.32 3.10% 0.87% 1.98% 0.16% $ 87,022 -- 35%
1995 $12.71 28.74% 0.90% 1.99% 0.07% $130,150 -- 65%
1996 $14.81 25.56% 0.90% 1.62% 0.15% $ 20,774 $0.0652 64%
1997 $15.39 20.22% 1.14% 0.95% 0.07% $ 39,494 $0.0434 124%
1998(k) $15.10 10.79% 1.15%* 0.86%* 0.01%* $ 48,266 $0.0311 100%
WACHOVIA QUANTITATIVE EQUITY FUND
1994(b) $ 9.60 (3.08%) 0.90%* 1.83%* 0.10%* $ 91,979 -- 64%
1995 $13.11 39.33% 0.87% 1.93% 0.10% $121,895 -- 63%
1996 $15.67 23.74% 0.87% 1.70% 0.15% $ 15,742 $0.0532 44%
1997 $19.00 29.38% 1.11% 1.09% 0.07% $ 35,413 $0.0493 74%
1998(k) $19.29 12.57% 1.12%* 0.98%* 0.04%* $ 62,576 $0.0500 36%
WACHOVIA GROWTH & INCOME FUND
1993(l) $10.20 3.42% 1.33%* 1.75%* 0.39%* $107,859 -- 30%
1994 $ 9.80 (2.26%) 1.35% 1.75% 0.40% $103,140 -- 30%
1995 $12.88 33.59% 1.35% 1.58% 0.36% $119,484 -- 30%
1996 $16.41 30.10% 1.35% 1.04% 0.31% $186,147 -- 12%
1997 $20.60 28.50% 1.30% 0.70% 0.30% $338,724 -- 13%
1998(k) $21.88 11.87% 1.29%* 0.58%* 0.25%* $125,298 -- 7%
WACHOVIA EQUITY INDEX FUND
1993(a) $10.47 5.80% 0.43%* 2.54%* 0.12%* $149,266 -- 9%
1994 $10.27 0.56% 0.46% 2.44% 0.08% $183,852 -- 9%
1995 $13.62 36.15% 0.48% 2.39% 0.05% $186,841 -- 60%
1996 $15.98 27.19% 0.48% 2.23% 0.13% $ 18,154 $0.0137 12%
1997 $18.89 27.55% 0.72% 1.46% 0.02% $ 50,917 $0.0247 4%
1998(k) $21.07 14.68% 0.70%* 1.15%* -- $ 82,232 $0.0497 10%
WACHOVIA SPECIAL VALUES FUND
1993(a) $10.24 2.40% 1.25%* (0.03%)* 1.79%* $ 12,072 -- 68%
1994 $ 9.75 (1.61%) 1.13% 0.63% 1.09% $ 17,431 -- 62%
1995 $12.18 25.91% 1.29% 0.80% 0.58% $ 24,093 -- 57%
1996 $15.67 39.78% 1.21% 0.47% 0.29% $ 6,642 $0.0650 38%
1997 $18.64 33.08% 1.35% 0.74% 0.01% $ 37,766 $0.0534 46%
1998(k) $18.10 7.88% 1.24%* 1.26%* -- $ 66,600 $0.0692 20%
WACHOVIA EMERGING MARKETS FUND
1995(c) $10.41 4.10% 1.80%* 0.85%* 0.28%* $ 71,276 -- 17%
1996 $11.67 12.45% 1.69% 0.73% 0.09% $ 5,488 $0.0009 30%
1997 $11.12 (3.82%) 1.79% 0.26% -- $ 7,996 $0.0011 60%
1998(k) $10.62 (3.57%) 1.98%* 0.91%* -- $ 9,418 $0.0020 20%
WACHOVIA BALANCED FUND
1993(a) $10.33 4.89% 0.75%* 3.30%* 0.19%* $166,271 -- 60%
1994 $ 9.93 (0.39%) 0.75% 3.46% 0.17% $194,430 -- 74%
1995 $11.92 26.32% 0.76% 3.58% 0.16% $207,421 -- 102%
1996 $13.30 18.55% 0.76% 3.05% 0.24% $ 18,619 $0.0545 99%
1997 $13.26 15.17% 1.02% 2.77% 0.16% $ 50,968 $0.0732 143%
1998(k) $13.15 7.94% 1.01%* 2.98%* 0.11%* $ 78,670 $0.0352 102%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from May 10, 1993 (date of initial public
investment) to November 30, 1993.
(b) Reflects operations for the period from March 28, 1994 (date of initial
public investment) to November 30, 1994.
(c) Reflects operations for the period from December 26, 1994 (date of initial
public investment) to November 30, 1995.
(d) Prior to November 30, 1993 the Fund's year end was September 30. (e)
Reflects operations for the period from January 11, 1991 (date of initial
public investment) to September 30, 1991.
(f) Reflects operations for the two months ended November 30, 1993.
(g) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(h) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(i) Per share information is based on average shares outstanding. (j) Represents
total comissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which comissions were charged.
(k) For six-months ended May 31, 1998 (unaudited).
(l) Period from January 29, 1993 (commencement of operations) to November 30,
1993.
(m) Period from February 1, 1993 (commencement of operations) to November 30,
1993.
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class A Shares--Continued
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Ratios to Average Net Assets
------------------------------------
Net Asset Net Net Assets, end Average Portfolio
Period Ended Value, end Total Investment Expense Waiver/ of period (000 Commission Turnover
November 30, of period Return(g) Expenses Income Reimbursement(h) omitted) Rate Paid(j) Rate
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA FIXED INCOME FUND
1993(a) $10.00 3.02% 0.68%* 5.44%* 0.19%* $140,325 -- 149%
1994 $ 8.97 (4.30%) 0.71% 5.90% 0.13% $148,751 -- 148%
1995 $ 9.90 17.20% 0.74% 6.07% 0.10% $169,846 -- 155%
1996 $ 9.83 5.51% 0.74% 6.05% 0.18% $ 4,853 -- 181%
1997 $ 9.85 6.14% 0.98% 5.65% 0.11% $ 10,039 -- 174%
1998(k) $ 9.93 3.67% 0.99%* 5.45%* 0.09%* $ 14,210 -- 68%
WACHOVIA INTERMEDIATE FIXED INCOME FUND
1993(l) $10.20 5.19% 1.08%* 3.92%* 0.39%* $ 64,674 -- 57%
1994 $ 9.31 (3.51%) 1.09% 4.46% 0.40% $ 48,730 -- 55%
1995 $10.07 14.44% 1.10% 5.60% 0.41% $ 35,796 -- 44%
1996 $ 9.96 4.46% 1.09% 5.62% 0.31% $ 43,277 -- 84%
1997 $10.03 6.32% 1.04% 5.50% 0.30% $ 96,626 -- 81%
1998(k) $10.11 3.91% 1.06%* 5.42%* 2.80%* $ 4,883 -- 24%
WACHOVIA SHORT-TERM FIXED INCOME FUND
1993(a) $ 9.91 1.69% 0.58%* 4.78%* 0.22%* $154,459 -- 73%
1994 $ 9.58 1.27% 0.60% 4.62% 0.18% $148,326 -- 151%
1995 $ 9.89 8.82% 0.63% 5.83% 0.18% $124,720 -- 147%
1996 $ 9.79 5.29% 0.63% 5.50% 0.27% $ 1,675 -- 145%
1997 $ 9.77 5.10% 0.87% 5.49% 0.19% $ 7,233 -- 215%
1998(k) $ 9.78 3.01% 0.88%* 5.34%* 0.16%* $ 9,402 -- 82%
WACHOVIA GEORGIA MUNICIPAL BOND FUND
1995(c) $10.96 13.93% 0.92%* 4.30%* 1.88%* $ 10,220 -- 14%
1996 $11.00 4.97% 0.89% 4.40% 1.61% $ 7,531 -- 14%
1997 $11.11 5.41% 1.14% 4.03% 1.11% $ 6,531 -- 25%
1998(k) $11.23 3.01% 1.17%* 3.73%* 0.57%* $ 6,743 -- 7%
WACHOVIA NORTH CAROLINA MUNICIPAL BOND
FUND
1995(c) $10.99 14.40% 0.85%* 4.40%* 1.19%* $ 18,679 -- 19%
1996 $11.03 5.17% 0.84% 4.24% 0.77% $ 13,752 -- 7%
1997 $11.15 5.36% 1.07% 3.91% 0.44% $ 11,563 -- 17%
1998(k) $11.28 3.14% 1.10%* 3.74%* 0.37%* $ 10,707 -- 7%
WACHOVIA SOUTH CAROLINA MUNICIPAL BOND FUND(D)
9/30/91(e) $10.17 6.32% 0.82%* 5.73%* 0.86%* $ 21,438 -- 0%
9/30/92 $10.53 9.73% 0.61% 5.83% 0.73% $ 63,139 -- 0%
9/30/93 $11.27 13.03% 0.55% 5.46% 0.62% $ 82,674 -- 4%
11/30/93(f) $11.12 (0.48%) 0.55%* 5.11%* 0.60%* $ 83,371 -- 2%
11/30/94 $10.05 (4.52%) 0.60% 5.22% 0.59% $ 75,995 -- 23%
11/30/95 $11.05 16.97% 0.58% 5.23% 0.55% $ 93,725 -- 15%
11/30/96 $11.05 5.54% 0.57% 5.10% 0.59% $ 65,981 -- 20%
11/30/97 $11.12 6.01% 0.81% 4.79% 0.48% $ 64,696 -- 12%
1998(k) $11.25 3.51% 0.83%* 4.56%* 0.43%* $ 65,346 -- 4%
WACHOVIA VIRGINIA MUNICIPAL BOND FUND
1993(m) $10.31 5.84% 1.02%* 3.65%* 0.64%* $ 33,652 -- 86%
1994 $ 9.40 (5.17%) 1.04% 3.90% 0.52% $ 39,978 -- 87%
1995 $10.25 13.79% 1.05% 4.33% 0.46% $ 54,041 -- 78%
1996 $10.15 3.50% 1.04% 4.45% 0.40% $ 70,378 -- 37%
1997 $10.30 5.97% 0.96% 4.50% 0.40% $111,160 -- 15%
1998(k) $10.38 3.38% 0.97%* 4.48%* 0.39%* $ 8,760 -- 15%
</TABLE>
*Computed on an annualized basis.
(a) Reflects operations for the period from May 10, 1993 (date of initial public
investment) to November 30, 1993.
(b) Reflects operations for the period from March 28, 1994 (date of initial
public investment) to November 30, 1994.
(c) Reflects operations for the period from December 26, 1994 (date of initial
public investment) to November 30, 1995.
(d) Prior to November 30, 1993 the Fund's year end was September 30. (e)
Reflects operations for the period from January 11, 1991 (date of initial
public investment) to September 30, 1991.
(f) Reflects operations for the two months ended November 30, 1993.
(g) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(h) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(i) Per share information is based on average shares outstanding. (j) Represents
total comissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which comissions were charged.
(k) For six-months ended May 31, 1998 (unaudited).
(l) Period from January 29, 1993 (commencement of operations) to November 30,
1993.
(m) Period from February 1, 1993 (commencement of operations) to November 30,
1993.
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class B Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Distributions from
Net Realized and Net Realized Gain
Unrealized Gain/ on Investment
(Loss) on Transactions,
Net Asset Investments, Distributions Futures Contracts
Value, Net Futures Contracts and Total From from Net and Foreign
Period Ended beginning Investment Foreign Currency Investment Investment Currency Total
November 30, of period Income Transactions Operations Income Transactions Distributions
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA EQUITY FUND
1996(a) $12.43 0.02 2.37 2.39 (0.03) -- (0.03)
1997 $14.79 0.04 2.42 2.46 (0.04) (1.86) (1.90)
1998(e) $15.35 0.01 1.40 1.41 (0.01) (1.68) (1.69)
WACHOVIA QUANTITATIVE EQUITY FUND
1996(a) $13.09 0.04 2.56 2.60 (0.04) -- (0.04)
1997 $15.65 0.08 4.10 4.18 (0.09) (0.79) (0.88)
1998(e) $18.95 0.03 2.04 2.07 (0.04) (1.75) (1.79)
WACHOVIA BALANCED FUND
1996(a) $11.68 0.09 1.59 1.68 (0.07) -- (0.07)
1997 $13.29 0.26 1.38 1.64 (0.26) (1.44) (1.70)
1998(e) $13.23 0.14 0.80 0.94 (0.14) (0.90) (1.04)
WACHOVIA FIXED INCOME FUND
1996(a) $ 9.45 0.15 0.40 0.55 (0.17) -- (0.17)
1997 $ 9.83 0.48 0.01 0.49 (0.48) -- (0.48)
1998(e) $ 9.84 0.24 0.09 0.33 (0.24) -- (0.24)
</TABLE>
*Computed on an annualized basis.
(a) Reflects operations for the period from July 22, 1996 (date of initial
public investment) to November 30, 1996.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(e) For six-months ended May 31, 1998 (unaudited). (See Notes which are an
integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class B Shares--Continued
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Ratios to Average Net Assets
------------------------------------
Net Net Assets, Average Portfolio
Period Ended Net Asset Value, Total Investment Expense Waiver/ end of period Commission Turnover
November 30, end of period Return(b) Expenses Income Reimbursement(c) (000 omitted) Rate Paid(d) Rate
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA EQUITY FUND
1996(a) $14.79 19.25% 1.90%* 0.02%* 0.20%* $ 976 $0.0652 64%
1997 $15.35 19.27% 1.90% 0.18% 0.06% $ 3,448 $0.0434 124%
1998(e) $15.07 10.48% 1.90%* 0.11%* 0.01%* $ 4,809 $0.0311 100%
WACHOVIA QUANTITATIVE EQUITY FUND
1996(a) $15.65 19.90% 1.87%* 0.46%* 0.11%* $ 1,414 $0.0532 44%
1997 $18.95 28.33% 1.85% 0.31% 0.07% $ 6,564 $0.0493 74%
1998(e) $19.23 12.15% 1.87%* 0.23%* 0.04%* $14,546 $0.0500 36%
WACHOVIA BALANCED FUND
1996(a) $13.29 14.47% 1.76%* 1.93%* 0.16%* $ 1,821 $0.0545 99%
1997 $13.23 14.19% 1.78% 2.01% 0.16% $ 5,916 $0.0732 143%
1998(e) $13.13 7.63% 1.76%* 2.23%* 0.11%* $10,185 $0.0352 102%
WACHOVIA FIXED INCOME FUND
1996(a) $ 9.83 5.83% 1.74%* 5.20%* 0.13%* $ 113 -- 181%
1997 $ 9.84 5.21% 1.75% 4.89% 0.11% $ 140 -- 174%
1998(e) $ 9.93 3.40% 1.74%* 4.70%* 0.09%* $ 321 -- 68%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 22, 1996 (date of initial
public investment) to November 30, 1996.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(e) For six-months ended May 31, 1998 (unaudited). (See Notes which are an
integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class Y Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Net Realized and Distributions from
Unrealized Gain/ Net Realized Gain
(Loss) on on Investment
Investments, Transactions,
Net Asset Futures Distributions Futures Contracts
Value, Net Contracts, and Total From from Net and Foreign
Period Ended beginning Investment Foreign Currency Investment Investment Currency Total
November 30, of period Income Transactions Operations Income Transactions Distributions
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA EQUITY FUND
1996(a) $12.43 0.03 2.40 2.43 (0.05) -- (0.05)
1997 $14.81 0.17 2.43 2.60 (0.16) (1.86) (2.02)
1998(f) $15.39 0.09 1.36 1.45 (0.08) (1.68) (1.76)
WACHOVIA QUANTITATIVE EQUITY FUND
1996(a) $13.09 0.04 2.60 2.64 (0.06) -- (0.06)
1997 $15.67 0.23 4.12 4.35 (0.23) (0.79) (1.02)
1998(f) $19.00 0.12 2.05 2.17 (0.12) (1.75) (1.87)
WACHOVIA GROWTH & INCOME FUND
1998(g) $22.31 0.04 (0.47) (0.43) -- -- --
WACHOVIA EQUITY INDEX FUND
1996(a) $13.37 0.09(d) 2.60 2.69 (0.08) -- (0.08)
1997 $15.98 0.29 3.86 4.15 (0.31) (0.91) (1.22)
1998(f) $18.91 0.14 2.58 2.72 (0.14) (0.40) (0.54)
WACHOVIA SPECIAL VALUES FUND
1996(a) $13.62 0.03 2.02 2.05 -- -- --
1997 $15.67 0.16 4.53 4.69 (0.08) (1.61) (1.69)
1998(f) $18.67 0.14 1.17 1.31 (0.15) (1.71) (1.86)
WACHOVIA EMERGING MARKETS FUND
1996(a) $11.92 0.01(d) (0.26) (0.25) -- -- --
1997 $11.67 0.07 (0.50) (0.43) (0.11) -- (0.11)
1998(f) $11.13 0.07 (0.45) (0.38) (0.13) -- (0.13)
WACHOVIA BALANCED FUND
1996(a) $11.68 0.08 1.63 1.71 (0.09) -- (0.09)
1997 $13.30 0.38 1.39 1.77 (0.37) (1.44) (1.81)
1998(f) $13.26 0.22 0.78 1.00 (0.20) (0.90) (1.10)
WACHOVIA FIXED INCOME FUND
1996(a) $ 9.45 0.17 0.40 0.57 (0.19) -- (0.19)
1997 $ 9.83 0.57 0.03 0.60 (0.58) -- (0.58)
1998(f) $ 9.85 0.28 0.09 0.37 (0.29) -- (0.29)
WACHOVIA INTERMEDIATE FIXED INCOME FUND
1998(g) $10.04 0.14 0.08 0.22 (0.14) -- (0.14)
WACHOVIA SHORT-TERM FIXED INCOME FUND
1996(a) $ 9.67 0.11(d) 0.18 0.29 (0.17) -- (0.17)
1997 $ 9.79 0.56 (0.05) 0.51 (0.53) -- (0.53)
1998(f) $ 9.77 0.07 0.23 0.30 (0.29) -- (0.29)
WACHOVIA GEORGIA MUNICIPAL BOND FUND
1996(a) $10.71 0.17 0.29 0.46 (0.17) -- (0.17)
1997 $11.00 0.47 0.13 0.60 (0.47) (0.02) (0.49)
1998(f) $11.11 0.22 0.12 0.34 (0.22) -- (0.22)
WACHOVIA NORTH CAROLINA MUNICIPAL BOND FUND
1996(a) $10.71 0.16 0.32 0.48 (0.16) -- (0.16)
1997 $11.03 0.46 0.13 0.59 (0.45) (0.02) (0.47)
1998(f) $11.15 0.23 0.14 0.37 (0.23) (0.01) (0.24)
WACHOVIA SOUTH CAROLINA MUNICIPAL BOND FUND
1996(a) $10.73 0.20 0.32 0.52 (0.20) -- (0.20)
1997 $11.05 0.55 0.12 0.67 (0.55) (0.05) (0.60)
1998(f) $11.12 0.27 0.13 0.40 (0.27) -- (0.27)
WACHOVIA VIRGINIA MUNICIPAL BOND FUND
1998(g) $10.34 0.08 0.04 0.12 (0.08) -- (0.08)
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 22, 1996 (date of initial
public investment) to November 30, 1996.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(d) Per share information is based on average shares outstanding. (e) Represents
total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(f) For six-months ended May 31, 1998 (unaudited).
(g) Reflects operations for the period from March 29, 1998 (date of initial
public investment) to May 31, 1998 (unaudited).
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds and The Wachovia Municipal Funds
Financial Highlights--Class Y Shares--Continued
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Ratios to Average Net Assets
------------------------------------
Net Net Assets, Average Portfolio
Period Ended Net Asset Value, Total Investment Expense Waiver/ end of period Commission Turnover
November 30, end of period Return(b) Expenses Income Reimbursement(c) (000 omitted) Rate Paid(e) Rate
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WACHOVIA EQUITY FUND
1996(a) $14.81 19.57% 0.90%* 0.91%* 0.19%* $129,205 $0.0652 64%
1997 $15.39 20.44% 0.90% 1.18% 0.07% $156,238 $0.0434 124%
1998(f) $15.08 10.76% 0.90%* 1.11%* 0.01%* $190,723 $0.0311 100%
WACHOVIA QUANTITATIVE EQUITY FUND
1996(a) $15.67 20.19% 0.87%* 1.19%* 0.11%* $152,571 $0.0532 44%
1997 $19.00 29.60% 0.87% 1.35% 0.08% $183,019 $0.0493 74%
1998(f) $19.30 12.75% 0.87%* 1.25%* 0.04%* $210,534 $0.0500 36%
WACHOVIA GROWTH & INCOME FUND
1998(g) $21.88 (1.93%) 0.86%* 0.92%* -- $203,000 -- 7%
WACHOVIA EQUITY INDEX FUND
1996(a) $15.98 20.14% 0.48%* 1.92%* 0.06%* $213,833 $0.0137 12%
1997 $18.91 27.91% 0.47% 1.72% 0.02% $248,030 $0.0247 4%
1998(f) $21.09 14.80% 0.45%* 1.39%* -- $281,277 $0.0497 10%
WACHOVIA SPECIAL VALUES FUND
1996(a) $15.67 15.05% 1.15%* 1.76%* 0.24%* $ 58,697 $0.0650 38%
1997 $18.67 33.29% 1.11% 0.88% 0.02% $ 84,501 $0.0534 46%
1998(f) $18.12 7.97% 0.99%* 1.52%* -- $ 94,759 $0.0692 20%
WACHOVIA EMERGING MARKETS FUND
1996(a) $11.67 0.00% 0.63%* 0.45%* 0.13%* $123,036 $0.0009 30%
1997 $11.13 (3.73%) 1.54% 0.54% -- $139,700 $0.0011 60%
1998(f) $10.62 (3.54%) 1.73%* 1.10%* -- $153,407 $0.0020 20%
WACHOVIA BALANCED FUND
1996(a) $13.30 14.69% 0.76%* 2.85%* 0.16%* $235,791 $0.0545 99%
1997 $13.26 15.37% 0.77% 3.02% 0.16% $250,083 $0.0732 143%
1998(f) $13.16 8.21% 0.76%* 3.22%* 0.11%* $307,269 $0.0352 102%
WACHOVIA FIXED INCOME FUND
1996(a) $ 9.83 6.12% 0.75%* 6.33%* 0.14%* $175,836 -- 181%
1997 $ 9.85 6.38% 0.74% 5.91% 0.11% $185,398 -- 174%
1998(f) $ 9.93 3.79% 0.74%* 5.68%* 0.09%* $203,147 -- 68%
WACHOVIA INTERMEDIATE FIXED INCOME FUND
1998(g) $10.12 1.70% 0.73%* 5.21%* 0.20%* $ 89,355 -- 24%
WACHOVIA SHORT-TERM FIXED INCOME FUND
1996(a) $ 9.79 3.00% 0.64%* 5.77%* 0.19%* $116,138 -- 145%
1997 $ 9.77 5.33% 0.63% 5.63% 0.20% $ 91,063 -- 215%
1998(f) $ 9.78 3.14% 0.62%* 5.59%* 0.15%* $ 91,977 -- 82%
WACHOVIA GEORGIA MUNICIPAL BOND FUND
1996(a) $11.00 4.31% 0.89%* 4.84%* 1.57%* $ 6,803 -- 14%
1997 $11.11 5.63% 0.92% 4.24% 1.06% $ 12,308 -- 25%
1998(f) $11.23 3.13% 0.92%* 3.98%* 0.57%* $ 14,069 -- 7%
WACHOVIA NORTH CAROLINA MUNICIPAL BOND FUND
1996(a) $11.03 4.55% 0.84%* 4.16%* 0.65%* $ 28,283 -- 7%
1997 $11.15 5.57% 0.85% 4.16% 0.42% $ 44,104 -- 17%
1998(f) $11.28 3.27% 0.85%* 4.00%* 0.37%* $ 50,637 -- 7%
WACHOVIA SOUTH CAROLINA MUNICIPAL BOND FUND
1996(a) $11.05 4.86% 0.57%* 5.56%* 0.54%* $ 36,511 -- 20%
1997 $11.12 6.23% 0.58% 5.01% 0.48% $ 43,881 -- 12%
1998(f) $11.25 3.64% 0.58%* 4.83%* 0.43%* $ 49,402 -- 4%
WACHOVIA VIRGINIA MUNICIPAL BOND FUND
1998(g) $10.38 1.17% 0.67%* 4.57%* 0.30%* $ 99,063 -- 15%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 22, 1996 (date of initial
public investment) to November 30,1996.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(d) Per share information is based on average shares outstanding. (e) Represents
total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(f) For six-months ended May 31, 1998 (unaudited).
(g) Reflects operations for the period from March 29, 1998 (date of initial
public investment) to May 31, 1998 (unaudited).
(See Notes which are an integral part of the Financial Statements)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
Combined Notes to Financial Statements
May 31, 1998 (unaudited)
(1) Organization
The Wachovia Funds and The Wachovia Municipal Funds (individually referred to as
the "Trust" or collectively as the "Trusts") are registered under the Investment
Company Act of 1940, as amended (the "Act") as open-end management investment
companies. The Trusts consist of eighteen portfolios. The financial statements
of the following portfolios (individually referred to as the "Fund" or
collectively as the "Funds") are presented herein:
The Wachovia Funds*
<TABLE>
<CAPTION>
Portfolio Name Investment Objective
-------------- --------------------
<C> <S>
Wachovia Equity Fund ("Equity Fund") To produce
growth of principal and income.
Wachovia Quantitative Equity Fund To provide growth of principal and
("Quantitative Equity Fund") income. Wachovia Growth & Income Fund To provide
total return through ("Growth & Income Fund") growth of capital and current
income. Wachovia Equity Index Fund To provide a total return that ("Equity
Index Fund") approximates that of the stock market
as measured by the S&P 500 Index.
Wachovia Special Values Fund To produce growth of principal.
("Special Values Fund")
Wachovia Emerging Markets Fund To produce long-term capital
("Emerging Markets Fund") appreciation.
Wachovia Balanced Fund ("Balanced Fund") To provide long-term growth of
principal and current income.
Wachovia Intermediate Fixed Income Fund To seek current income consistent
("Intermediate Fixed Income Fund") with preservation of capital. Wachovia Fixed
Income Fund To seek a high level of total return.
("Fixed Income Fund")
Wachovia Short-Term Fixed Income Fund To produce a high level of current
("Short-Term Fixed Income Fund") income with a minimum of principal
volatility.
</TABLE>
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Portfolio Name Investment Objective
-------------- --------------------
<C> <S>
Wachovia Georgia Municipal Bond Fund To provide current income which is
("Georgia Municipal Bond Fund")** exempt from federal regular income tax
and the personal income taxes imposed
by the State of Georgia.
Wachovia North Carolina Municipal Bond To provide current income which is Fund
("North Carolina Municipal Bond exempt from federal regular income tax Fund")**
and the personal income taxes imposed
by the State of North Carolina.
Wachovia South Carolina Municipal Bond To provide current income which is Fund
("South Carolina Municipal Bond exempt from federal regular income tax Fund")**
and South Carolina state income taxes.
</TABLE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
The Wachovia Municipal Funds (continued)
<TABLE>
<CAPTION>
Portfolio Name Investment Objective
-------------- --------------------
<C> <S>
Wachovia Virginia Municipal Bond Fund To provide a high level of current
("Virginia Municipal Bond Fund")** income that is exempt from federal
regular income tax and the income tax
imposed by the Commonwealth of Virginia
as is consistent with the preservation of
capital.
</TABLE>
* In addition, The Wachovia Funds offer the following money market
portfolios, each having distinctive investment objectives and policies:
Wachovia Money Market Fund, Wachovia Prime Cash Management Fund, Wachovia
Tax-Free Money Market Fund, and Wachovia U.S. Treasury Money Market Fund.
The financial statements of the money market portfolios are presented
separately.
** Non-diversified portfolio.
The assets of each portfolio are segregated and a shareholder's interest is
limited to the portfolio in which shares are held.
Effective March 29, 1998, the following events affected the organization of the
Trusts. The Growth & Income Fund, the Intermediate Fixed Income Fund, and the
Virginia Municipal Bond Fund converted into the Trusts from the MarketWatch
Funds. These Funds changed their names as follows: Wachovia Growth and Income
Fund, formerly Marketwatch Equity Fund; Wachovia Intermediate Fixed Income Fund,
formerly Marketwatch Intermediate Fixed Income Fund; Wachovia Virginia Municipal
Bond Fund, formerly Marketwatch Virginia Municipal Bond Fund. The Growth &
Income Fund, the Intermediate Fixed Income Fund, and the Virginia Municipal Bond
Fund added a second class of shares, Class Y Shares.
(2) Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations--Municipal bonds are valued by an independent pricing
service, taking into consideration yield, liquidity, risk, credit quality,
coupon, maturity, type of issue, and any other factors or market data the
pricing service deems relevant. U.S. government securities, listed corporate
bonds, other fixed income and asset-backed securities, unlisted securities and
private placement securities are generally valued at the latest bid prices as
furnished by an independent pricing service. Listed equity securities and
investments in closed-end investment companies are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at the
time of purchase may be valued at amortized cost, which approximates fair
market value. Investments in other open-end regulated investment companies are
valued at net asset value. With respect to valuation of foreign securities,
trading in foreign cities may be completed at times which vary from the
closing of the New York Stock Exchange. Therefore, foreign securities are
valued at the latest closing price on the exchange on which they are traded
prior to the closing of the New York Stock Exchange. Foreign securities quoted
in foreign currencies are translated into US dollars at the foreign exchange
rate in effect at noon, eastern time, on the day the value of the foreign
security is determined. Repurchase Agreements--It is the policy of the Funds
to require the custodian bank to take possession, to have legally segregated
in the Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by the
Funds to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least equals
the repurchase price to be paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Boards of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Funds could receive less
than the repurchase price on the sale of collateral securities. Investment
Income, Expenses and Distributions--Interest income and expenses are accrued
daily. Bond premium and discount, if applicable, are amortized as required by
the Internal Revenue Code, as amended (the "Code").
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
Dividend income and distributions to shareholders are recorded on the ex-
dividend date. Certain dividends from foreign securities may be recorded after
the ex-dividend date based upon when the Fund is reasonably able to obtain
information. Federal Taxes--It is the Funds' policy to comply with the
provisions of the Code applicable to regulated investment companies and to
distribute to shareholders each year substantially all of their income.
Accordingly, no provisions for federal tax are necessary. Withholding taxes on
foreign interest and dividends have been provided for in accordance with the
Emerging Markets Fund's understanding of the applicable country's tax rules
and rates. At November 30, 1997, the Funds listed below, for federal tax
purposes, had capital loss carryforwards, as noted, which will reduce each
Fund's taxable income arising from future net realized gain on investments, if
any, to the extent permitted by the Code, and thus will reduce the amount of
the distributions to shareholders which would otherwise be necessary to
relieve the Funds of any liability for federal tax.
<TABLE>
<CAPTION>
Total Amount Amount Amount Amount Amount
Tax Loss Expiring Expiring Expiring Expiring Expiring
Fund Carryforward In 2001 In 2002 In 2003 In 2004 In 2005
---- ------------ -------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Fixed Income Fund $2,938,421 -- $1,681,174 $1,257,247 -- --
Short-Term Fixed
Income Fund $4,087,884 $493,199 $2,790,650 $ 250,580 $467,184 $ 86,271
Emerging Markets Fund $3,405,307 -- -- -- -- $3,405,307
</TABLE>
When-Issued and Delayed Delivery Transactions--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on the settlement date.
Deferred Expenses--The costs incurred by each Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering their shares, have been deferred and are being
amortized over a period not to exceed five years from each Fund's commencement
date. Futures Contracts--The Funds listed below purchase stock index futures
contracts to manage cashflows, enhance yield, and to potentially reduce
transaction costs. Upon entering into a stock index futures contract with a
broker, the Funds listed below are required to deposit in a segregated account
a specified amount of cash OR U.S. government securities. Futures contracts
are valued daily and unrealized gains or losses are recorded in a "variation
margin" account. Daily, the Funds receive from or pay to the broker a
specified amount of cash based upon changes in the variation margin account.
When a contract is closed, the Funds recognize a realized gain or loss. For
the period ended May 31, 1998, the following Funds had realized gains/losses
on futures contracts as follows:
<TABLE>
<CAPTION>
Realized Gain (Loss)
Fund on Futures Contracts
---- --------------------
<S> <C>
Equity Fund $3,788,467
Quantitative Equity Fund 4,504,629
Equity Index Fund 2,778,653
Balanced Fund 6,107,632
Special Values 397,762
Fixed Income (64,155)
</TABLE>
Futures contracts have market risks, including the risk that the change in the
value of the contract may not correlate with changes in the value of the
underlying securities.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
At May 31,1998, the Funds had outstanding futures contracts as set forth
below:
Equity Fund
<TABLE>
<CAPTION>
Contracts to Unrealized
Expiration Date Deliver/Receive Position Appreciation
--------------- --------------- -------- ------------
<S> <C> <C> <C>
September 1998 114 S&P 500 Index Long $26,788
</TABLE>
Quantitative Equity Fund
<TABLE>
<CAPTION>
Contracts to Unrealized
Expiration Date Deliver/Receive Position Appreciation
--------------- --------------- -------- ------------
<S> <C> <C> <C>
September 1998 126 S&P 500 Index Long $25,017
</TABLE>
Equity Index Fund
<TABLE>
<CAPTION>
Contracts to Unrealized
Expiration Date Deliver/Receive Position Appreciation
--------------- --------------- -------- ------------
<S> <C> <C> <C>
September 1998 130 S&P 500 Index Long $26,485
</TABLE>
Balanced Fund
<TABLE>
<CAPTION>
Unrealized
Contracts to Appreciation
Expiration Date Deliver/Receive Position (Depreciation)
--------------- --------------- -------- --------------
<S> <C> <C> <C>
June 1998 13 Bond Future Index Short $(8,610)
June 1998 7 S&P 500 Index Long $ 70,097
September 1998 184 S&P 500 Index Long $ 38,590
</TABLE>
Special Values Fund
<TABLE>
<CAPTION>
Contracts to Unrealized
Expiration Date Deliver/Receive Position Appreciation
--------------- --------------- -------- ------------
<S> <C> <C> <C>
September 1998 55 S&P Midcap Futures Long $105,435
</TABLE>
Fixed Income Fund
<TABLE>
<CAPTION>
Unrealized
Contracts to Appreciation
Expiration Date Deliver/Receive Position (Depreciation)
--------------- --------------- -------- --------------
<S> <C> <C> <C>
June 1998 27 Bond Future Index Short $(17,883)
June 1998 21 S&P 500 Index Long $ 79,744
</TABLE>
Foreign Exchange Contracts--Emerging Markets Fund may enter into foreign
currency exchange contracts as a way of managing foreign exchange rate risk.
The Fund may enter into these contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date as a hedge or
cross hedge against either specific transactions or portfolio positions. The
objective of the Fund's foreign currency hedging transactions is to reduce
the risk that the U.S. dollar value of the Fund's foreign currency
denominated securities will decline in value due to changes in foreign
currency exchange rates. All foreign currency exchange contracts are "marked
to market" daily at the applicable translation rates resulting in unrealized
gains or losses. Realized gains or losses are recorded at the time the
foreign currency exchange contract is offset by entering into a closing
transaction or by the delivery or receipt of the currency. Risk may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar. At
May 31, 1998, Emerging Markets Fund had no outstanding foreign currency
contracts. Foreign Currency Translation--The accounting records of Emerging
Markets Fund are maintained in U.S. dollars. All assets and liabilities
denominated in foreign currencies ("FC") are translated into U.S. dollars
based on the rate of exchange of such currencies against U.S. dollars on the
date of valuation. Purchases and sales of securities, income and expenses are
translated at the rate of exchange quoted on the respective date that such
transactions are recorded. Differences between income and expense amounts
recorded and collected or paid are adjusted when reported by the custodian
bank. The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments. Reported net realized foreign exchange gains or losses
arise from sales of portfolio securities, sales and maturities of short-term
securities, sales of FCs, currency gains or losses realized between the trade
and settlement dates on securities transactions, the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of assets and liabilities other than investments in securities
at fiscal year end, resulting from changes in the exchange rate.
Restricted Securities--Restricted securities are securities that may only be
resold upon registration under federal securities laws or in transactions
exempt from such registration. In some cases, the issuer of restricted
securities has agreed to register such securities for resale, at the issuer's
expense either upon demand by the Emerging Markets Fund or in connection with
another registered offering of the securities. Many restricted securities may
be resold in the secondary market in transactions exempt from registration.
Such restricted securities may be determined to be liquid under criteria
established by the Trustees. The Fund will not incur any registration costs
upon such resales. The Fund's restricted securities are valued at the price
provided by dealers in the secondary market or, if no market prices are
available, at the fair value as determined by the Fund's pricing committee.
Additional information on each restricted security held by Emerging Markets
Fund at May 31,1998 is as follows:
<TABLE>
<CAPTION>
Security Acquisition Dates Acquisition Cost
-------- ----------------- ----------------
<S> <C> <C>
Banque Libanaise Pour Le Comm, Class B,
GDR 12/11/96 $ 472,000
Banque Marocaine du Commerce Exerieur,
GDR 3/10/97 701,100
Blagovno Trgovinsia Center, GDR 6/6/97 336,700
BorsodChem RT, GDR 2/15/96 49,800
Eesti Uhispank, GDR 3/6/98-3/10/98 746,500
Gedeon Richter, GDR 11/10/95-11/26/96 394,754
Hindalco Industries Ltd., GDR 6/21/95-10/4/95 159,375
MI Bank, GDR 6/25/97 363,400
MOL Magyar Olay, GDR 3/7/97 243,750
Paints & Chemical Industry, GDR 9/26/97 505,250
Pliva D.D., GDR 3/13/98 1,660,000
Reliance Industries Ltd., GDR 12/14/95-11/24/97 188,000
Samsung Electronics Co., GDR 11/24/97 246,000
SKB Banka, GDR 1/30/97 228,000
Slovakofarna AS, GDR 11/7/97-11/9/97 783,000
Solidere, GDR 11/27/96 287,500
State Bank of India, GDR 11/24/97 94,500
Zagrebacka Banka, GDR 4/29/98-5/18/98 338,031
</TABLE>
Use of Estimates--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results could differ
from those estimated. Other--Investment transactions are accounted for on the
trade date.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
(3) Shares of Beneficial Interest
The Declaration of Trust of both The Wachovia Funds and The Wachovia Municipal
Funds permits the Trustees to issue an unlimited number of full and fractional
shares of beneficial interest (without par value). Transactions in shares were
as follows: <TABLE> <CAPTION>
Equity Fund Quantitative Equity Fund
-------------------------------------------------- -------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 441,243 $ 6,490,736 1,212,590 $ 17,823,475 1,347,294 $ 25,554,413 965,307 $ 16,810,698
Shares issued to
share-
holders in pay-
ment of
distributions
declared 336,222 4,546,682 225,294 2,879,078 205,016 3,504,095 68,846 1,031,632
Shares redeemed (148,627) (2,210,517) (274,007) (3,944,850) (171,400) (3,214,771) (175,182) (2,990,173)
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
Net change
resulting
from Class A
Shares
transactions 628,838 $ 8,826,901 1,163,877 $ 16,757,703 1,380,910 $ 25,843,737 858,971 $ 14,852,157
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
<CAPTION>
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS B SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 83,345 $ 1,239,181 157,378 $ 2,214,029 391,006 $ 7,459,838 259,394 $ 4,504,492
Shares issued to
share-
holders in pay-
ment of
distributions
declared 28,657 386,172 10,960 139,526 37,808 643,785 6,072 90,190
Shares redeemed (17,494) (253,052) (9,672) (136,298) (18,900) (357,873) (9,470) (162,976)
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
Net change
resulting
from Class B
Shares
transactions 94,508 $ 1,372,301 158,666 $ 2,217,257 409,914 $ 7,745,750 255,996 $ 4,431,706
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
<CAPTION>
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 2,828,496 $ 40,808,327 3,554,442 $ 49,902,627 850,680 $ 15,469,840 1,230,624 $ 20,627,941
Shares issued to
share-
holders in pay-
ment of
distributions
declared 950,476 12,857,703 1,041,021 13,298,944 962,309 16,439,892 596,353 8,900,064
Shares redeemed (1,282,748) (18,949,949) (3,170,735) (45,126,801) (534,051) (10,068,839) (1,933,606) (32,229,770)
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
Net change re-
sulting
from Class Y
Shares
transactions 2,496,224 $ 34,716,081 1,424,728 $ 18,074,770 1,278,938 $ 21,840,893 (106,629) $ (2,701,765)
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
Net change re-
sulting
from fund shares
transactions 3,219,570 $ 44,915,283 2,747,271 $ 37,049,730 3,069,762 $ 55,430,380 1,008,338 $ 16,582,098
---------- ------------ ---------- ------------ --------- ------------ ---------- ------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Growth & Income Fund
----------------------------------------------------
Six Months Ended Year Ended
May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 411,919 $ 8,638,976 6,682,176 $115,596,820
Shares issued to
share-
holders in pay-
ment of
distributions
declared 466,141 9,220,623 172,539 2,817,198
Shares redeemed (11,593,950) $(255,400,232) (1,755,496) (31,873,304)
----------- ------------- ---------- ------------
Net change
resulting
from Class A
Shares
transactions (10,715,890) $(237,540,633) 5,099,219 $ 86,540,714
----------- ------------- ---------- ------------
<CAPTION>
Period Ended Year Ended
May 31, 1998(a) November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 9,665,958 $ 215,659,583 -- --
Shares issued to
share-
holders in pay-
ment of
distributions
declared -- -- -- --
Shares redeemed (390,014) (8,728,859) -- --
----------- ------------- ---------- ------------
Net change
resulting
from Class Y
Shares
transactions 9,275,944 $ 206,930,724 -- --
----------- ------------- ---------- ------------
Net change
resulting
from fund shares
transactions (1,439,946) $ (30,609,909) 5,099,219 $ 86,540,714
----------- ------------- ---------- ------------
</TABLE>
(a) Reflects operations for the period from March 29, 1998 (date of initial
public investment) to May 31, 1998.
<TABLE>
<CAPTION>
Equity Index Fund Special Values Fund
--------------------------------------------------- ------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 1,313,067 $ 26,152,814 1,795,756 $ 31,728,579 1,656,731 $29,487,620 1,739,422 $ 30,963,930
Shares issued to
share-
holders in payment
of
distributions de-
clared 82,792 1,539,754 92,034 1,446,794 248,937 4,102,490 55,077 3,766,298
Shares redeemed (187,838) (3,760,988) (328,029) (5,569,777) (251,669) (4,513,702) (192,159) (24,998,451)
---------- ------------- ---------- ------------ --------- ----------- ---------- ------------
Net change
resulting from
Class A Shares
transactions 1,208,021 $ 23,931,580 1,559,761 $ 27,605,596 1,653,999 $29,076,408 1,602,340 $ 9,731,777
---------- ------------- ---------- ------------ --------- ----------- ---------- ------------
<CAPTION>
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 1,537,816 $ 31,095,189 3,625,782 $ 59,771,966 744,520 $13,045,864 1,949,765 $ 29,965,567
Shares issued to
share-
holders in payment
of
distributions de-
clared 361,680 6,726,288 1,067,983 16,435,346 422,376 6,964,971 264,487 784,291
Shares redeemed (1,668,126) (33,355,664) (4,964,256) (85,569,794) (464,817) (8,288,100) (1,432,685) (3,265,657)
---------- ------------- ---------- ------------ --------- ----------- ---------- ------------
Net change
resulting from
Class Y Shares
transactions 231,370 $ 4,465,813 (270,491) $(9,362,482) 702,079 $11,722,735 781,567 $ 27,484,201
---------- ------------- ---------- ------------ --------- ----------- ---------- ------------
Net change
resulting from
fund shares
transactions 1,439,391 $ 28,397,393 1,289,270 $ 18,243,114 2,356,078 $40,799,143 2,383,907 $ 37,215,978
---------- ------------- ---------- ------------ --------- ----------- ---------- ------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Emerging Markets Fund Balanced Fund
----------------------------------------------- -------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 270,529 $ 3,035,194 397,024 $ 5,133,749 2,161,096 $ 28,124,447 2,645,070 $34,032,927
Shares issued to
shareholders
in payment of distri-
butions
declared 7,323 79,306 4,411 51,046 375,248 4,620,153 224,438 2,637,286
Shares redeemed (109,825) (1,246,757) (152,774) (1,893,197) (400,252) (5,192,200) (424,714) (5,378,843)
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net change resulting
from
Class A Shares
transactions 168,027 $ 1,867,743 248,661 $ 3,291,598 2,136,092 $ 27,552,400 2,444,794 $31,291,370
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
<CAPTION>
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS B SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold -- $ -- -- $ -- 313,151 $ 4,095,166 307,846 $ 3,836,282
Shares issued to
shareholders
in payment of distri-
butions
declared -- -- -- -- 39,940 491,107 25,319 297,800
Shares redeemed -- -- -- -- (24,224) (312,865) (23,218) (287,652)
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net change resulting
from
Class B Shares
transactions -- $ -- -- $ -- 328,867 $ 4,273,408 309,947 $ 3,846,430
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
<CAPTION>
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 2,516,130 $28,178,441 3,238,727 $41,075,269 5,155,146 $ 64,930,560 4,538,586 $55,921,692
Shares issued to
share-
holders in payment of
distributions de-
clared 49,657 537,283 27,266 315,464 1,556,941 19,193,372 2,622,663 30,704,969
Shares redeemed (675,510) (7,723,676) (1,251,929) (16,755,254) (2,219,762) (28,866,661) (6,039,198) (76,009,694)
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net change resulting
from Class Y Shares
transactions 1,890,277 $20,992,048 2,014,064 $24,635,479 4,492,325 $ 55,257,271 1,122,051 $10,616,967
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net change resulting
from fund shares
transactions 2,058,304 22,859,791 2,262,725 $27,927,077 6,957,284 87,083,079 3,876,792 $45,754,767
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
<CAPTION>
Intermediate
Fixed Income Fund Fixed Income Fund
----------------------------------------------- -------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 482,595 $ 4,786,368 763,371 $ 7,449,000 399,171 $ 4,047,811 7,451,883 $73,017,952
Shares issued to
share-
holders in payment of
distributions de-
clared 32,647 323,082 27,666 268,160 26,330 265,353 42,532 415,495
Shares redeemed (104,340) (1,034,442) (265,357) (2,587,866) (9,578,439) (96,210,824) (2,205,905) (21,529,499)
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net change resulting
from Class A Shares
transactions 410,902 $ 4,075,008 525,680 $ 5,129,294 (9,152,938) $(91,897,660) 5,288,510 $51,903,948
--------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Intermediate Fixed
Fixed Income Fund (continued) Income Fund (continued)
------------------------------------------------ ---------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS B SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 17,794 $ 175,957 2,843 $ $27,578 -- $ -- -- --
Shares issued to share-
holders in payment of
distributions declared 510 5,049 624 6,032 -- -- -- --
Shares redeemed (203) (2,017) (705) (6,809) -- -- -- --
---------- ----------- ---------- ----------- --------- ----------- --------- -----------
Net change resulting
from Class B Shares
transactions 18,101 178,989 2,762 26,801 -- -- -- --
---------- ----------- ---------- ----------- --------- ----------- --------- -----------
<CAPTION>
Six Months Ended Year Ended Period Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998(a) November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 3,179,780 $31,528,845 6,398,418 $61,907,491 9,143,686 $91,809,311 -- --
Shares issued to share-
holders in payment of
distributions declared 342,917 3,393,815 741,178 7,156,206 6,283 63,091 -- --
Shares redeemed (1,902,470) (18,820,120) (6,203,149) (59,960,020) (316,036) (3,180,501) -- --
---------- ----------- ---------- ----------- --------- ----------- --------- -----------
Net change resulting
from Class Y Shares
transactions 1,620,227 $16,102,540 936,447 $ 9,103,677 8,833,933 $88,691,901 -- --
---------- ----------- ---------- ----------- --------- ----------- --------- -----------
Net change resulting
from fund shares
transactions 2,049,230 $20,356,537 1,464,889 $14,259,772 (319,005) $(3,205,759) 5,288,510 $51,903,948
---------- ----------- ---------- ----------- --------- ----------- --------- -----------
</TABLE>
(a) Reflects operations for the period from March 29, 1998 (date of initial
public investment)to May 31, 1998.
<TABLE>
<CAPTION>
Short-Term Fixed Income Fund
--------------------------------------------------
Six Months Ended Year Ended
May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 445,858 $ 4,356,443 598,882 $ 5,854,415
Shares issued to share-
holders
in payment of distribu-
tions
declared 25,144 245,268 12,820 124,911
Shares redeemed (249,721) (2,439,284) (42,556) (415,946)
---------- ------------ ---------- ------------
Net change resulting
from Class A Shares
transactions 221,281 $ 2,162,427 569,146 $ 5,563,380
---------- ------------ ---------- ------------
<CAPTION>
Six Months Ended Year Ended
May 31, 1998 November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 1,281,027 $ 12,537,270 1,976,003 $ 19,286,564
Shares issued to share-
holders
in payment of distribu-
tions
declared 276,729 2,698,779 603,014 5,869,807
Shares redeemed (1,472,761) (14,368,529) (5,121,485) (50,010,275)
---------- ------------ ---------- ------------
Net change resulting
from Class Y Shares
transactions 84,995 $ 867,520 (2,542,468) $(24,853,904)
---------- ------------ ---------- ------------
Net change resulting
from fund shares
transactions 306,276 $ 3,029,947 (1,973,322) $(19,290,524)
---------- ------------ ---------- ------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Georgia Municipal Bond Fund North Carolina Municipal Bond Fund
----------------------------------------------- ---------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------- -------- ----------- ---------- ------------ -------- ----------- --------- -----------
Shares sold 35,161 $ 393,093 67,805 $ 739,368 49,681 $ 560,569 172,088 $ 1,866,534
Shares issued to share-
holders
in payment of distribu-
tions
declared 7,723 86,499 21,179 231,331 12,900 145,280 38,242 419,303
Shares redeemed (30,150) (337,191) (185,896) (2,024,593) (152,341) (1,733,565) (418,688) (4,556,530)
-------- ----------- ---------- ------------ -------- ----------- --------- -----------
Net change resulting
from Class A Shares
transactions 12,734 $ 142,401 (96,912) $ (1,053,894) (89,760) $(1,027,716) (208,358) $(2,270,693)
-------- ----------- ---------- ------------ -------- ----------- --------- -----------
<CAPTION>
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 1998 November 30, 1997 May 31, 1998 November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars Shares Dollars Shares Dollars
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------- -------- ----------- ---------- ------------ -------- ----------- --------- -----------
Shares sold 192,441 $ 2,160,245 612,513 $ 6,727,857 778,609 $ 8,767,599 1,693,364 $18,540,740
Shares issued to share-
holders
in payment of distribu-
tions
declared 2,190 24,527 4,440 48,583 5,674 63,817 9,477 103,874
Shares redeemed (49,394) (553,953) (127,557) (1,383,827) (248,123) (2,804,977) (315,766) (3,471,057)
-------- ----------- ---------- ------------ -------- ----------- --------- -----------
Net change resulting
from
Y Shares transactions 145,237 $ 1,630,819 489,396 $ 5,392,613 536,160 $ 6,026,439 1,387,075 $15,173,557
-------- ----------- ---------- ------------ -------- ----------- --------- -----------
Net change resulting
from
fund shares transac-
tions 157,971 $ 1,773,220 392,484 $ 4,338,719 446,400 $ 4,998,723 1,178,717 $12,902,864
-------- ----------- ---------- ------------ -------- ----------- --------- -----------
<CAPTION>
South Carolina Municipal Bond Fund
-----------------------------------------------
Six Months Ended Year Ended
May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 387,696 $ 4,351,599 714,128 $ 7,829,566
Shares issued to share-
holders in payment of
distributions declared 68,985 774,260 190,426 2,085,665
Shares redeemed (462,545) (5,184,091) (1,062,157) (11,623,252)
-------- ----------- ---------- ------------
Net change resulting
from Class A Shares
transactions (5,864) $ (58,232) (157,603) $ (1,708,021)
-------- ----------- ---------- ------------
<CAPTION>
Six Months Ended Year Ended
May 31, 1998 November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 745,876 $ 8,385,760 1,119,082 $ 12,295,135
Shares issued to share-
holders in payment of
distributions declared 5,444 61,074 15,737 172,237
Shares redeemed (303,391) (3,393,185) (495,245) (5,428,033)
-------- ----------- ---------- ------------
Net change resulting
from Class Y Shares
transactions 447,929 $ 5,053,649 639,574 $ 7,039,339
-------- ----------- ---------- ------------
Net change resulting
from fund shares
transactions 442,065 $ 4,995,417 481,971 $ 5,331,318
-------- ----------- ---------- ------------
</TABLE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Virginia Municipal Bond Fund
----------------------------------------------------
Six Months Ended Year Ended
May 31, 1998 November 30, 1997
CLASS A SHARES Shares Dollars Shares Dollars
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 265,069 $ 2,757,562 5,861,134 $ 58,796,406
Shares issued to
share-
holders in payment of
distributions declared 15,596 161,517 35,790 360,850
Shares redeemed (10,239,037) (105,892,491) (2,025,729) (20,445,697)
----------- ------------- ---------- ------------
Net change resulting
from Class A
Shares transactions (9,958,372) $(102,973,412) 3,871,195 $ 38,711,559
----------- ------------- ---------- ------------
<CAPTION>
Period Ended Year Ended
May 31, 1998(a) November 30, 1997
CLASS Y SHARES Shares Dollars Shares Dollars
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 9,912,143 $ 102,489,668 -- --
Shares issued to
share-
holders in payment of
distributions declared 413 4,233 -- --
Shares redeemed (371,823) (3,852,487) -- --
----------- ------------- ---------- ------------
Net change resulting
from Class Y Shares
transactions 9,540,733 $ 98,641,414 -- --
----------- ------------- ---------- ------------
Net change resulting
from fund shares
transactions (417,639) $ (4,331,998) 3,871,195 $ 38,711,559
----------- ------------- ---------- ------------
</TABLE>
(a) Reflects operations for the period from March 29, 1998 (date of initial
public investment) to May 31, 1998.
(4) Investment Advisory Fee and Other Transactions with Affiliates Investment
Advisory Fee--Wachovia Asset Management, the Funds' investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee based on
a percentage of each Fund's average daily net assets as listed below. The
Adviser may voluntarily choose to waive any portion of its fee. The Adviser can
modify or terminate this voluntary waiver at any time at its sole discretion.
<TABLE>
<CAPTION>
Fund Annual Rate
---- -----------
<S> <C>
Equity Fund 0.70%
Quantitative Equity Fund 0.70%
Growth & Income Fund 0.70%*
Equity Index Fund 0.30%
Special Values Fund 0.80%
Emerging Markets Fund 1.00%
Balanced Fund 0.70%
Fixed Income Fund 0.60%
Intermediate Fixed Income Fund 0.60%*
Short-Term Fixed Income Fund 0.55%
Georgia Municipal Bond Fund 0.75%
North Carolina Municipal Bond Fund 0.75%
South Carolina Municipal Bond Fund 0.75%
Virginia Municipal Bond Fund 0.74%
</TABLE>
* Prior to March 29, 1998, the annual investment advisory fee based on a
percentage of the Fund's average daily net assets for Growth & Income Fund and
Intermediate Fixed Income Fund was 1.00% and 0.74%, respectively.
Effective March 29, 1998, the following funds changed investment advisors from
Central Fidelity National Bank to Wachovia Asset Management. The fees charged by
each advisor for the six months ended May 31, 1998 are listed below.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
<TABLE>
<CAPTION>
Fund Wachovia Asset Management Central Fidelity National Bank
- ---- ------------------------- ------------------------------
<S> <C> <C>
Growth & Income Fund $693,187 $792,553
Intermediate Fixed
Income Fund $173,192 $149,882
Virginia Municipal Bond
Fund $262,422 $141,243
</TABLE>
Sub Advisory Fee--The Adviser has entered into a sub-advisory agreement with
Twin Capital Management, Inc. (the "Sub-Adviser"). The Sub-Adviser furnishes
certain advisory services to the Adviser for Quantitative Equity Fund, including
investment research, quantitative analysis, statistical and other factual
information, and recommendations based on the Sub-Adviser's analysis, and
assists the Adviser in identifying securities for potential purchase and/or
sale. The Sub-Adviser is entitled to receive an annual fee of $55,000 payable by
the Advisor. The Sub-Adviser may elect to waive some or all of its fee.
Administrative Fee, and Transfer and Dividend Disbursing Agent and Portfolio
Accounting Fees--Federated Services Company ("FServ") provides the Funds with
certain administrative personnel and portfolio accounting services. FServ,
through its subsidiary Federated Shareholder Services Company, serves as
transfer and dividend disbursing agent for the Funds. The fee paid to FServ is
based on the level of average aggregate net assets of the Trusts for the period.
Effective March 29, 1998, the following funds changed administrators, transfer
agents, and portfolio accountants from BISYS Fund Services, L.P. to FServ. The
fees charged by each administrator for the six months ended May 31, 1998 are
list below.
<TABLE>
<CAPTION>
Fund FServ BISYS Fund Services, L.P.
- ---- -------- -------------------------
<S> <C> <C>
Growth & Income Fund $124,479 $248,168
Intermediate Fixed Income Fund $ 36,859 $ 65,784
Virginia Municipal Bond Fund $ 41,272 $ 80,547
</TABLE>
Distribution Services Fee--Equity Fund, Quantitative Equity Fund, Balanced Fund,
and Fixed Income Fund have adopted a Distribution Plan (the "Plan") pursuant to
Rule 12B-1 under the Act. Under the terms of the Plan, the Funds will compensate
Federated Securities Corp. ("FSC"), the principal distributor, from their
respective net assets to finance certain activities intended to result in the
sale of Class B Shares. The Plan provides that each Fund may incur distribution
expenses up to 0.75% of the average daily net assets of each Fund's Class B
Shares, annually, to compensate FSC. The FSC may voluntarily choose to waive any
portion of its fee and/or reimburse certain operating expenses of the Funds. The
FSC can modify or terminate this voluntary waiver and/or reimbursement at any
time at its sole discretion. Prior to March 29, 1998, Growth & Income Fund,
Intermediate Fixed Income Fund, and Virginia Municipal Bond Fund could incur
distribution expenses up to 0.25% of the average daily net assets of each Fund's
Class A Shares. Effective March 29,1998, Class A shares no longer incur
distribution expenses. Effective March 29, 1998, the following funds changed
distributors from BISYS Fund Services to FSC. The fees charged by each
distributor for the six months ended May 31, 1998 are listed below.
<TABLE>
<CAPTION>
Fund FSC BISYS Fund Services, L.P.
- ---- ------ -------------------------
<S> <C> <C>
Growth & Income Fund $4,688 $265,533
Intermediate Fixed Income Fund 864 77,271
Virginia Municipal Bond Fund 3,357 89,436
</TABLE>
Shareholder Services Fee--Under the terms of a Shareholder Services Agreement
with Federated Administrative Services, ("FAS"), the Fund will pay FAS up to
0.25% of average daily net assets of each Fund's Class A Shares and Class B
Shares for the period. The fee paid to FAS is used to finance certain services
for shareholders and to maintain shareholder accounts. FAS may voluntarily
choose to waive any portion of its fee. FAS can modify or terminate this
voluntary waiver at any time at its sole discretion. Custodian Fees--Wachovia
Bank, N.A. is the Funds' custodian. The fee is based on the level of each Fund's
average daily net assets for the period, plus out-of-pocket expenses.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
Effective March 29, 1998, the following funds changed custodians from Central
Fidelity National Bank to Wachovia Bank N.A. The fees charged by each custodian
for the six months ended May 31, 1998 are listed below.
<TABLE>
<CAPTION>
Fund Wachovia Bank N.A. Central Fidelity National Bank
- ---- ------------------ ------------------------------
<S> <C> <C>
Growth & Income Fund $11,327 $21,241
Intermediate Fixed Income Fund 3,354 6,147
Virginia Municipal Bond Fund 3,850 7,154
</TABLE>
Organizational Expenses--Organizational expenses were borne initially by FAS.
The Funds have agreed to reimburse FAS for the organizational expenses during
the five year period following the effective date of each Fund. For the period
ended May 31, 1998, the Funds made the following reimbursements to FAS pursuant
to this agreement:
<TABLE>
<CAPTION>
Organizational Organizational
Fund Expenses Expenses Paid
- ---- -------------- --------------
<S> <C> <C>
Equity Fund $34,484 $3,681
Quantitative Equity Fund $34,484 $2,399
Equity Index Fund $34,484 $3,630
Special Values Fund $33,777 $3,753
Emerging Markets Fund $40,764 $6,671
Balanced Fund $31,904 $3,545
Fixed Income Fund $34,484 $3,612
Short-Term Fixed Income Fund $34,484 $3,832
Georgia Municipal Bond Fund $30,000 $1,532
North Carolina Municipal Bond Fund $30,000 $1,380
</TABLE>
General--Certain of the Officers of the Trusts are Officers and Directors or
Trustees of the above companies.
(5) Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
period ended May 31, 1998, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
- ---- ------------ ------------
<S> <C> <C>
Equity Fund $209,524,300 $195,371,735
Quantitative Equity Fund $120,794,901 $ 92,374,056
Growth & Income Fund $ 22,417,754 $ 89,472,878
Equity Index Fund $ 48,498,282 $ 32,273,487
Special Values Fund $ 44,201,779 $ 21,913,985
Emerging Markets Fund $ 61,475,652 $ 29,212,357
Balanced Fund $368,437,332 $277,698,538
Fixed Income Fund $158,325,689 $136,044,796
Intermediate Fixed Income Fund $ 21,867,118 $ 28,697,415
Short-Term Fixed Income Fund $ 84,088,505 $ 81,531,554
Georgia Municipal Bond Fund $ 4,533,965 $ 1,282,338
North Carolina Municipal Bond Fund $ 9,026,848 $ 3,889,461
South Carolina Municipal Bond Fund $ 6,939,543 $ 4,434,335
Virginia Municipal Bond Fund $ 15,886,273 $ 19,847,229
</TABLE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Wachovia Funds
The Wachovia Municipal Funds
(6) Year 2000
Similar to other financial organizations, the Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust's Adviser and Administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Trust's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Trust.
(7) Concentration of Credit Risk
Emerging Markets Fund invests in securities of non-U.S. issuers. Although the
Fund maintains a diversified investment portfolio, the political or economic
developments within a particular country or region may have an adverse effect on
the ability of domiciled issuers to meet their obligations. Additionally,
political or economic developments may have an effect on the liquidity and
volatility of portfolio securities and currency holdings. Since each portfolio
of The Wachovia Municipal Funds invests a substantial portion of its assets in
issuers located in one state, they will be more susceptible to factors adversely
affecting issuers of their respective states than would be a comparable
tax-exempt mutual fund that invests nationally. In order to reduce the credit
risk associated with such factors, at May 31, 1998, the securities in the
portfolio of investments are backed by letters of credit or bond insurance of
various financial institutions and financial guaranty assurance agencies, as
indicated below. The largest percentage of investments insured by or supported
(backed) by a letter of credit from any one institution or agency is also
indicated below.
<TABLE>
<CAPTION>
% of Portfolio % of Portfolio Backed by
Fund Guaranteed/Insured Largest Guarantor/Insurer
- ---- ------------------ -------------------------
<S> <C> <C>
Georgia Municipal Bond Fund 53.9% 24.2%
North Carolina Municipal Bond Fund 30.8% 15.5%
South Carolina Municipal Bond Fund 57.6% 27.2%
Virginia Municipal Bond Fund 17.3% 7.4%
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Trustees Officers
James A. Hanley John W. McGonigle
Samuel E. Hudgins President and Treasurer
J. Berkley Ingram, Jr. Charles L. Davis, Jr.
D. Dean Kaylor Vice President and Assistant Treasurer
Charles S. Way, Jr. Peter J. Germain
Secretary
Gail Cagney
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its investment objective and policies, management fees, expenses and other
information.
Federated Securities Corp., Distributor
831-27 (7/98)
Cusips
929901734
929901742
929901759
929901809
929901882
929901700
929901676
929901668
929901767
929901775
929901841
929901858
929901601
929901502
929901692
929901718
929901726
929901650
929901643
929901783
929901791
929901817
929901866
929901874
929902401
929902302
929902500
929902609
929902104
929902203
929902708
929902807
G01715-01 (7/98)
