ANNUAL
FINANCIAL REPORT
STI CLASSIC FUNDS
[GRAPHIC OMITTED]
A FAMILY OF MUTUAL FUNDS
MAY 31, 1996
STI CLASSIC FUNDS
<PAGE>
Dear STI Classic Trust Shareholder:
As of May 31, 1996, STI Classic Funds' assets totaled $6.8 billion or 26.1% more
than the $5.4 billion reported to you as of May 31, 1995. The newest addition to
the family, the STI Classic International Equity Fund, introduced in December
1995, has been well received in the marketplace and now totals $217.8 million in
assets.
The STI Classic family of 19 funds was recognized by BARRON'S as the tenth best
overall total return performing family for full year 1995 among 62 major fund
families. This survey included fund families that offer at least three equity
funds, three taxable bond funds, two tax-exempt bond funds, and a minimum of one
fund for international stocks, money markets, and both stocks and bonds.
Economic and financial market sentiment has shifted over the past 12 months. We
began the period (June 1995) with slow economic growth and even fears, by some
investors, of a recession. As a result, the Federal Reserve lowered short-term
interest rates. Concurrently, long-term rates also declined. As a result, total
return for domestic fixed income securities was quite good.
With the start of 1996, which is a U.S. presidential election year, the economy
rebounded and interest rates rose even though inflation appeared under control.
Through much of this period, stocks rose and have continued to provide excellent
total return performance. We believe that the STI Classic Funds with a wide
variety of investment objectives and disciplined investment styles are well
positioned to serve shareholders in the future.
Sincerely,
/s/ ANTHONY R. GRAY
Anthony R. Gray
President, Chief Investment Officer
STI Capital Management, N.A.
/s/ DOUGLAS S. PHILLIPS
Douglas S. Phillips, CFA
President, Chief Investment Officer
Trusco Capital Management, Inc.
<PAGE>
STI CLASSIC VALUE INCOME STOCK FUND
-----------------------------------
The STI Classic Value Income Stock Fund (the Fund) continues its solid
performance. Due to anticipated changes and increasing commodity prices in the
Energy Sector, this group has considerably outperformed the market. We have
taken this opportunity to sell or reduce many of these positions and now are
underweighted in this group. This sector has been a significant contributor to
our funds outperformance year-to-date.
The Fund currently is diversified and broad based in its industry weighting,
which is expected based on current market conditions.
The Fund's Trust Class returned 27.91% for the fiscal year ended May 31, 1996,
compared to 26.35% for the S&P Barra Value and 26.34% for the average mutual
fund in its peer group according to the Lipper Equity Income Fund Average.
The Fund seeks to invest in stocks with an above-average market yield which are
undervalued compared to their historical relative valuation and have improving
fundamental prospects. This process has historically delivered superior returns
with less volatility in a variety of market conditions.
Driven by large cash inflows, the market continues its unprecedented rise
reaching new valuation highs and yield lows at fiscal year end. We continue
though to find ample opportunities to invest in securities which meet our strict
disciplined process.
The year saw significant changes in market leadership and shifting sentiment
towards various industry sectors. The industry overweighting which most
significantly added to the Fund's performance during the year included
financials, energy (at fiscal year end), and consumer staples. Each of these
areas, after periods of outperformance, were reduced and are currently
underweighted.
Bottom-up stock selections has led to a broad based, diversified portfolio. No
significant overweighting occurs at this time. Each security in the Fund has
attractive valuations and fundamentals of interest.
/s/ MILLS A. RIDDICK
Mills A. Riddick, CFA
Senior Vice President
2
<PAGE>
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
Trust Class
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
27.91% 18.76% 17.89% 72.00%
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the S&P / Equity Income Funds
Classic Value Income BARRA Value Index Average
Stock Trust Class
<S> <C> <C> <C>
2/28/93 $10,000 $10,000 $10,000
5/31/93 10,395 10,426 10,353
5/31/94 11,432 11,202 10,875
5/31/95 13,611 13,114 12,278
5/31/96 17,410 16,568 15,151
</TABLE>
Investor Class
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
27.39% 18.23% 18.46% 74.36% Wiithout load
- --------------------------------------------------------------------------------
22.62% 16.73% 17.08% 67.80% With load
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the S&P / Equity Income Funds
Classic Value Income BARRA Value Index Average
Stock Investor Class
<S> <C> <C> <C>
2/28/93 $ 9,625 $10,000 $10,000
5/31/93 10,010 10,426 10,353
5/31/94 10,940 11,202 10,875
5/31/95 12,986 13,114 12,278
5/31/96 16,543 16,568 15,151
</TABLE>
Flex Class*
[GRAPHIC OMITTED]
- -------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -------------------------------------------
26.52% 26.52% Without load
- -------------------------------------------
24.52% 24.52% With load
- -------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the S&P / Equity Income Funds
Classic Value Income BARRA Value Index Average
Stock Flex Class
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 12,366 12,539 11,266
</TABLE>
*Commenced operations June 1, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
3
<PAGE>
STI CLASSIC MID-CAP EQUITY FUND
-------------------------------
The investment objective of the STI Classic Mid-Cap Equity Fund (the Fund),
formerly the Aggressive Growth Fund, seeks to provide capital appreciation by
investing in a diversified portfolio of common stocks, preferred stocks and
securities, convertible into common stocks of small to mid-size companies
primarily in the $50 million to $1 billion and $500 million to $5 billion,
respectively, capitalization range which have above-average growth of earnings.
Stock selection is centered around buying companies that are at the low end of
their historical price earnings ratio when compared to the stock market and
selling when the value dissipates due to appreciation, a change in
fundamentals/earnings or a change in the market.
For the year, several industry groups contributed positively to the Fund's
performance due to the strong economy and in turn positive earnings surprises
including certain segments of technology, leisure, and capital goods. While
healthcare performed poorly and impacted performance, biotechnology issues were
strong as new drug trials and FDA approvals occurred at an accelerated pace. The
last third of the year was impacted by rising interest rates which penalized
interest sensitive sectors.
Looking forward, productivity needs to continue to outstrip wages if inflation
is to be kept in check. This outlook leads us toward those corporations which
provide technological improvement. The other current force that is shaping
equity selection is interest rates which are high historically, relative to
inflation. As a result, we have been concentrating our purchases in growth
stocks due to their consistent earnings.
We believe that going forward mid-cap stocks over time will continue to
outperform large capitalization stocks as they have historically. New
opportunities for capital appreciation continue to present themselves in the
mid-cap arena.
/s/ THOMAS EDGAR
Thomas Edgar
Senior Vice President
4
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
Trust Class
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
25.54% 15.35% 39.34%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the S&P
Classic Mid-Cap Equity Mid-Cap 400 Index
Trust Class
2/28/94 $10,000 $10,000
5/31/94 9,735 9,516
5/31/95 10,958 10,801
5/31/96 13,756 13,877
Investor Class
[GRAPHIC OMITTED]
- ------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- ------------------------------------------------------------
24.93% 14.71% 37.64% Wiithout load
- ------------------------------------------------------------
20.23% 12.84% 32.48% With load
- ------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the S&P
Classic Mid-Cap Equity Mid-Cap 400 Index
Investor Class
1/31/94 $ 9,625 $10,000
5/31/94 9,471 9,381
5/31/95 10,603 10,648
5/31/96 13,247 13,680
Flex Class*
[GRAPHIC OMITTED]
- ------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- ------------------------------------------
23.00% 22.75% Without load
- ------------------------------------------
21.00% 20.75% With load
- ------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the S&P
Classic Mid-Cap Equity Mid-Cap 400 Index
Flex Class
6/30/95 $10,000 $10,000
5/31/96 11,639 12,345
*Commenced operations June 5, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
5
<PAGE>
STI CLASSIC CAPITAL GROWTH FUND
-------------------------------
Our equity philosophy emphasizes business cycle analysis, sector rotation and
meticulous stock selection. By evaluating the relative value of the various
sectors at different points in the business cycle, we identify those industries
that we believe will perform well in a given environment. Stocks that fall
within favored sectors are analyzed based on fundamentals: the quality of
margins, dependability of growth rates, relative attractiveness of
price/earnings and yields.
We concentrate on buying stocks at reasonable prices based primarily on relative
earnings ratios and selling when they do not offer as much value as other stocks
in the sector. In order to make this relative value comparison, each stock is
compared to its own historical price earnings ratio range, to other stocks in
the sector, and to the stock market as measured by other indices, such as the
S&P 500 Composite Index.
In 1995, the STI Classic Capital Growth Fund (the Fund) was positively impacted
by strong performance in the drug area with 12-month returns in the 30-60%
range. Other big concentrations with strong results were names such as GE,
Chase, Philip Morris, UTD Technology, Microsoft, Travelers and Federated
Department Stores. All of these gains were in excess of 37%. The Fund continues
to be heavily overweighted in large technology, beverage, household, financial,
health and leisure. The Fund is underexposed to cyclical sectors such as
building, machinery, metals and forest products.
/s/ ANTHONY R. GRAY
Anthony R. Gray
President and Chief Investment Officer
6
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
Trust Class
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------
28.97% 12.62% 13.86% 66.21%
- --------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the S&P 500 Growth Funds Average
Classic Capital Growth Composite Index
Trust Class
<S> <C> <C> <C>
7/31/92 $10,000 $10,000 $10,000
5/31/93 11,203 10,886 11,184
5/31/94 11,638 11,350 11,727
5/31/95 12,409 13,639 13,306
5/31/96 16,004 17,516 17,225
</TABLE>
Investor Class
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
28.18% 11.92% 13.96% 68.13% Wiithout load
- --------------------------------------------------------------------------------
23.41% 10.52% 12.87% 61.82% With load
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the S&P 500 Growth Funds Average
Classic Capital Growth Composite Index
Investor Class
<S> <C> <C> <C>
6/30/92 $ 9,625 $10,000 $10,000
5/31/93 11,206 11,330 11,584
5/31/94 11,572 11,813 12,147
5/31/95 12,258 14,195 13,782
5/31/96 15,712 18,231 17,842
</TABLE>
Flex Class*
[GRAPHIC OMITTED]
- -----------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------
27.48% 27.48% Without load
- -----------------------------------------------------
25.48% 25.48% With load
- -----------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the S&P 500 Growth Funds Average
Classic Capital Growth Composite Index
Flex Class
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 12,187 12,552 12,417
</TABLE>
*Commenced operations June 1, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
7
<PAGE>
STI CLASSIC BALANCED FUND
-------------------------
The STI Classic Balanced Fund (the Fund) seeks to provide capital appreciation
and current income through investments in a diversified portfolio of common and
preferred stocks, warrants, securities convertible into common stocks and
investment grade fixed income securities.
Our equity philosophy emphasizes business cycle analysis, sector rotation and
meticulous stock selection. By evaluating the relative value of the various
sectors at different points in the business cycle, we identify those industries
that we believe will perform well in a given environment. Stocks that fall
within favored sectors are analyzed based on fundamentals; the quality of
margins, dependability of growth rates, relative attractiveness of
price/earnings and yields.
We concentrate on buying stocks at reasonable prices based primarily on relative
earnings ratios and selling when they do not offer as much value as other stocks
in the sector, and to the stock market as measured by other indices, such as the
S&P 500 Composite Index.
In 1995, the Fund was positively impacted by strong performance in the drug area
with 12 month returns in the 30-60% range. Other big concentrations with strong
results were names such as GE, Chase, Philip Morris, UTD Technology, Microsoft,
Travelers & Federated Department Stores. All of these gains were in excess of
37%. The Fund continues to be heavily overweighted in large technology,
beverage, household, financial, health & leisure. The Fund is underexposed to
cyclical sectors such as building, machinery, metals and forest products.
The fixed income portion of the Fund is managed with only moderate shifts in the
average maturity and duration. Total return is enhanced through yield curve
analysis (monitoring and analyzing the risk/reward tradeoffs of different
maturity sectors), sector rotation, credit analysis, and other low risk
strategies. By actively pursuing these strategies, the Fund strives to add to
total return while reducing risk. During the past year the Fund increased its
mortgage holdings and this has contributed positively to the Fund's performance.
Corporate holdings have generally been limited to shorter maturity ranges as
this sector seems expensive on a historic basis.
/s/ ANTHONY R. GRAY
Anthony R. Gray
President and Chief Investment Officer
/s/ L. EARL DENNEY
L. Earl Denney, CFA
Executive Vice President
8
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
17.26% 9.80% 25.21%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the Invested in the Invested in the Lipper Balanced
STI Classic S&P 500 Composite Lehman Funds Objective
Balanced Trust Index Government/Corporate Average
Class Bond Index
<S> <C> <C> <C> <C>
01/31/94 $10,000 $10,000 $10,000 $10,000
5/31/94 9,554 9,578 9,446 9,504
5/31/95 10,387 11,510 10,543 10,628
5/31/96 12,180 14,783 10,628 12,509
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------
16.88% 9.32% 23.91% Wiithout load
- -----------------------------------------------------------
12.51% 7.60% 19.26% With load
- -----------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the Invested in the Invested in the Lipper Balanced
STI Classic S&P 500 Composite Lehman Funds Objective
Balanced Investor Index Government/Corporate Average
Class Bond Index
<S> <C> <C> <C> <C>
01/31/94 $ 9,625 $10,000 $10,000 $10,000
5/31/94 9,238 9,578 9,446 9,504
5/31/95 10,004 11,510 10,543 10,628
5/31/96 11,693 14,783 10,975 12,509
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -------------------------------------------
15.58% 15.03% Without load
- -------------------------------------------
13.58% 13.03% With load
- -------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the Invested in the Invested in the Lipper Balanced
STI Classic S&P 500 Composite Lehman Funds Objective
Balanced Flex Class Index Government/Corporate Average
Bond Index
<S> <C> <C> <C> <C>
06/30/95 $10,000 $10,000 $10,000 $10,000
5/31/96 11,201 12,552 10,327 11,545
</TABLE>
*Commenced operations June 14, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
9
<PAGE>
STI CLASSIC INTERNATIONAL EQUITY INDEX FUND
-------------------------------------------
The STI Classic International Equity Index Fund (the Fund) seeks to provide
investment results that correspond to the aggregate price and dividend
performance of the securities included in the Morgan Stanley Capital
International Europe, Australasia, Far East Gross Domestic Product Index ("MSCI
EAFE-GDP Index"). The Fund has been constructed to have the aggregate investment
characteristics similar to those of the MSCI EAFE-GDP Index. The Fund limits
investments to a representative sample of securities contained within the Index.
Not all securities or countries in the Index will be held in the Fund.
Securities are selected using a statisticaly-based optimization process. No
attempt is made to manage the Fund using traditional economic, financial and
market analysis. The Fund's investment decisions are not affected by general
market conditions. All securities are purchased and held in their local
currencies.
For the year ending May 31, 1996, the Fund met its objectives. Additionally, the
Fund's correlation to the MSCI EAFE-GDP Index was .99. This exceeded the
expected annual correlation of .951. The Fund's overall performance for the
fiscal year was similar to the MSCI EAFE-GDP Index on a post fee adjusted basis.
/s/ ROBERT J. RHODES
Robert J. Rhodes, CFA
Group Vice President
/s/ STANLEY J. CHERNY
Stanley J. Cherny
Associate
- --------------------------
1Prospectus, Trust Shares, the STI Classic Funds dated October 1, 1995, page 6.
10
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
9.29% 5.99% 12.23%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the MSCI
Classic International EAFE-GDP Weighted Index,
Equity Index Fund in US $
Trust Class
6/30/94 $10,000 $10,000
5/31/95 10,331 10,481
5/31/96 11,291 11,573
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
8.90% 5.53% 11.28% Wiithout load
- -----------------------------------------------------------------------
4.79% 3.52% 7.10% With load
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the MSCI
Classic International EAFE-GDP Weighted Index,
Equity Index Fund in US $
Investor Class
6/30/94 $9,625 $10,000
5/31/95 9,904 10,481
5/31/96 10,786 11,573
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- ------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- ------------------------------------------
8.32% 8.14% Without load
- ------------------------------------------
6.26% 6.14% With load
- ------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the MSCI
Classic International EAFE-GDP Weighted Index,
Equity Index Fund in US $
Flex Class
6/30/95 $10,000 $10,000
5/31/96 10,711 11,167
*Commenced operations June 8, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
11
<PAGE>
STI INTERNATIONAL EQUITY FUND
-----------------------------
The STI Classic International Equity Fund (the Fund), which commenced operations
on December 1, 1995, seeks to provide investment results that outperform the
international markets and the average international mutual fund by focusing on
sector analysis globally. The Fund invests in quality, financially productive
companies which are selling at a discount to their global industry peers.
Since the beginning of the calendar year the Fund (Trust Shares) has returned
9.72%, compared to the MSCI EAFE Index of 3.85% and the average international
mutual fund of 7.47% according to the Lipper International Fund Average. Over
this period the portfolio's overweighting in the capital equipment sector,
European markets and underweighting in the Japan market have all contributed to
our relative outperformance.
Currently our stock selection process continues to lead us to overweight the
capital equipment sector. We view this group as having the best 3-5 year
appreciation potential. Our other large overweightings include consumer goods
and services.
Geographically our largest exposure remains Europe. Viewing the world on an
industry basis led us to identify many financially solid companies with
compelling valuations in Europe. Most of these companies receive a majority of
their sales and profits from outside their local market where economic trends
are more favorable. Another attractive area is the emerging markets due to a
combination of low share valuations and improving fundamentals.
Despite an improving outlook for the Japanese economy, Japanese stocks are
expensive compared to their global industry peers, and thus we remain
underweighted.
The Fund continues to perform well. Our exposure to Europe (especially the
Nordic countries), emerging markets and the capital equipment industry group all
have enhanced the Fund's performance. Other areas where we continue to be
overweighted are consumer goods and services. The Fund also continues to be
underweighted in Japan.
/s/ DANIEL R. JAWORSKI
Daniel R. Jaworski
Senior Vice President--International Equity Division
12
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS* (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------
30.05% 14.00%
- -----------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the MSCI
Classic International EAFE Index, in US $
Equity Fund
Trust Class
12/31/95 $10,000 $10,000
5/31/96 10,973 10,385
INVESTOR CLASS(1) (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -------------------------------------------
23.34% 9.00% Without load
- -------------------------------------------
12.31% 4.88% With load
- -------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the MSCI
Classic International EAFE Index, in US $
Equity Fund Investor
Class
1/31/96 $ 9,625 $10,000
5/31/96 10,421 10,344
FLEX CLASS(1) (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -------------------------------------------
21.82% 8.91% Without load
- -------------------------------------------
17.65% 6.91% With load
- -------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the MSCI
Classic International EAFE Index, in US $
Equity Index Fund
Flex Class
1/31/96 $10,000 $10,000
5/31/96 10,618 10,344
*Commenced operations December 1, 1995.
(1)Commenced operations January 2, 1996.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
13
<PAGE>
STI CLASSIC SUNBELT EQUITY FUND
-------------------------------
The STI Classic Sunbelt Equity Fund (the Fund) offers long-term investors the
potential for above average returns by focusing on companies that possess
positive earnings trends. The Fund's objective is to provide capital
appreciation by investing in U.S. companies located in the Sunbelt region.
The Fund's philosophy is based on the premise that a portfolio of companies with
positive earnings characteristics, namely strong earnings growth and earnings
momentum, will provide investors with superior performance over time. Our
primary focus is on identifying and investing in those companies with strong
characteristics and reasonable valuations.
The Fund invests in small and mid-sized companies which are primarily
headquartered or conduct the majority of their business in the southeastern
region of the U.S. encompassing the twelve states from Texas, up to Virginia and
down to Florida. The favorable economic and demographic trends of the Sunbelt
region promote a healthy business climate, and may lead to above average
investment opportunities. These trends include more favorable wage levels, an
excellent transportation system, a rising average personal income, and a growing
population.
The Fund's investment universe consists of approximately 1,400 public companies,
of which roughly 200 are covered extensively by our seven dedicated research
analysts. Before a company can be considered for investment, it must satisfy
initial screening criteria. These criteria include: five year operating history,
market capitalization of at least $50 million, monthly trading volume of $20
million, management continuity and strong fundamental history.
Declining interest rates and a healthy business climate during the last fiscal
year led to strong performance for most of the market indices. More recently,
the uncertainty surrounding the future state of the economy has led to upward
pressure on interest rates. This rise in interest rates has negatively impacted
the bond markets, yet the equity markets have continued to surge, albeit with an
increase in volatility.
The Fund with its "bottom-up" strategy of focusing on individual companies
exhibiting strong earnings characteristics has performed well over the last
twelve months. This strong performance may be due to the slowdown in earnings
growth experienced by many companies, while the projected average earnings
growth for the Fund remains in double digits. In closing, we think the Fund is
attractive because it offers investors unique diversification and the potential
for superior long-term appreciation.
/s/ JAMES P. FOSTER
James P. Foster
Vice President
14
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
43.19% 16.44% 44.21%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the Invested in the
STI Classic S&P 600 Small Cap
Sunbelt Equity Index
Trust Class
1/31/94 $10,000 $10,000
5/31/94 9,530 9,209
5/31/95 9,893 10,096
5/31/96 14,165 13,966
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -------------------------------------------------------------
42.58% 15.89% 42.58% Wiithout load
- -------------------------------------------------------------
37.21% 14.06% 37.23% With load
- -------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the Invested in the
STI Classic S&P 600 Small Cap
Sunbelt Equity Index
Investor Class
1/31/94 $ 9,625 $10,000
5/31/94 9,162 9,209
5/31/95 9,455 10,096
5/31/96 13,481 13,966
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------
39.86% 39.42% Without load
- -----------------------------------------------------
37.90% 37.42% With load
- -----------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the Invested in the
STI Classic S&P 600 Small Cap
Sunbelt Equity Index
Flex Class
06/30/95 $10,000 $10,000
5/31/96 13,371 13,113
*Commenced operations June 5, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
15
<PAGE>
STI CLASSIC INVESTMENT GRADE TAX-EXEMPT BOND FUND
-------------------------------------------------
The investment objective of the STI Classic Investment Grade Tax-Exempt Fund
(the Fund) is to maximize the total rate of return consistent with the Fund's
objectives and constraints. Total return numbers are the return on an investment
for a period of time. Current yield is also an important objective of the Fund
which is simply the annual dollar interest divided by the market price. The
drawback with the current yield is that it does not recognize principal gains or
losses. Total return numbers assume that a bondholder buys a bond, collects all
interest payments and sells it at the end of a specific time period. Investors
should consider total return performance and compare it to other funds and
indices to determine if they are receiving an adequate rate of return for the
risk being taken. As of May 31, 1996, the Fund had an average maturity of
approximately eight years and realized a one year total return of 5.40% based on
net asset value of Investor Shares. The Lehman Brothers 5 year Municipal GO Bond
Index had total return of 4.74% (which does not include operating expenses), and
the Lipper Intermediate Debt Municipal Average had an average return of 3.86%
for the year ending May 31, 1996.
Our philosophy of investing in the municipal bond market is to limit risk as
much as possible. We do not make major maturity shifts. We will bias the
portfolio based upon our near term fundamental and technical analysis, however,
these will be moderate maturity shifts. Our style of investing enables us to
enhance performace by utilizing various techniques. One such technique is
emphasizing cheap sectors of the yield curve. Another is to be a relative value
investor, we try to overweight undervalued sectors of the market and to
underweight overvalued sectors. Also, we take advantage of changes in yield
spreads. We buy specific bonds when spreads are trading historically wide and
sell when the spreads are trading historically narrow. Credit analysis is an
important technique especially in today's market. We try to identify and invest
in imporving credits and avoid those credits which are deteriorating. The
underlying concept to all these techniques is to enhance total return without
adding risk.
The past year has been an extremely volatile and challenging year for the
municipal bond market. During the second half of 1995 individual investors, who
play a dominant role in the municipal bond market, tended to shun the product
during that period as a result of declining yields, a powerful equity market and
fears regarding tax reform. That pattern kept municipal yields artificially
high. However, during the first several months of 1996 we have seen the
municipal bond market outperform relative to taxables. The catalyst for the
municipal market's strong relative performance was a substantially diminished
fear of tax reform. Other factors contributing to the municipal outperformance
are: sparse new issue supply, higher interest rates and seasonal heavy cash
flows into investors hands as a result of bond calls, maturities, and coupon
payments.
During the third quarter of 1995 the Fund was managed in a defensive style due
to the talk of tax-reform risks. The Portfolio consisted of mainly high quality
bonds with short to intermediate maturities. This enabled the Fund to perform
well in an adverse municipal bond market environment. In the fourth quarter
concerns of tax-reform subsided and we extended the duration of the Fund. This
enabled the Fund to fully participate in the year-end bond market rally.
In 1996 we became defensive and established a neutral or short duration for the
Fund. We remain diversified throughout the yield curve and remain invested in
high quality bonds.
/s/ RONALD H. SCHWARTZ
Ronald H. Schwartz, CFA
Senior Vice President
16
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
5.82% 5.63% 15.36%
- ------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Intermediate Municipal
Classic Investment Grade Brothers 5 Year G.O. Funds Average
Tax-Exempt Bond Fund Index
Trust Class
<S> <C> <C> <C>
10/31/93 $10,000 $10,000 $10,000
5/31/94 9,976 9,943 9,831
5/31/95 10,995 10,627 10,512
5/31/96 11,635 11,131 10,918
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- ----------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- ----------------------------------------------------------------------------
5.40% 6.87% 8.08% 36.21% Wiithout load
- ----------------------------------------------------------------------------
1.45% 5.52% 7.05% 31.09% With load
- ----------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Intermediate Municipal
Classic Investment Grade Brothers 5 Year G.O. Funds Average
Tax-Exempt Bond Fund Index
Investor Class
<S> <C> <C> <C>
6/30/92 $ 9,625 $10,000 $10,000
5/31/93 10,731 10,778 10,879
5/31/94 11,308 11,112 11,194
5/31/95 12,428 11,877 11,970
5/31/96 13,099 12,440 12,432
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------
4.91% 4.91% Without load
- -----------------------------------------------------
2.95% 2.95% With load
- -----------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Intermediate Municipal
Classic Investment Grade Brothers 5 Year G.O. Funds Average
Tax-Exempt Bond Fund Index
Flex Class
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,341 10,465 10,424
</TABLE>
*Commenced operations June 1, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
17
<PAGE>
STI CLASSIC FLORIDA TAX-EXEMPT BOND FUND
----------------------------------------
The investment objective of the STI Classic Florida Tax-Exempt Bond Fund (the
Fund) is to maximize the total rate of return consistent with the Fund's
objectives and constraints. Total rate of return numbers are an average return
on an investment for a period of time. Current yield is also an important
objective of the Fund which is simply the annual dollar interest divided by the
market price. The drawback with the current yield is that it does not recognize
principal gains or losses. Total return numbers assume that a bondholder buys a
bond, collects all interest payments and sells it at the end of a specific time
period. Investors should consider total return performance and compare it to
other funds and indices to determine if they are receiving an adequate rate of
return for the risk being taken. As of May 31, 1996, the Fund had an average
maturity of approximately twelve years and realized a one year total return of
3.87% based on net asset value of Trust Shares. The Lehman 10 year Municipal
Bond Index had total return of 4.73% (which does not include operating
expenses), and the Lipper Florida Municipal Debt Average had an average return
of 3.29% for the year ending May 31, 1996.
Our philosophy of investing in the municipal bond market is to limit risk as
much as possible. We do not make major maturity shifts. We will bias the
portfolio based upon our near term fundamental and technical analysis, however,
these will be moderate maturity shifts. Our style of investing enables us to
enhance performance by utilizing various techniques. One such technique is
emphasizing cheap sectors of the yield curve. Another is to be a relative value
investor, we try to overweight undervalued sectors of the market and to
underweight overvalued sectors. Also, we take advantage of changes in yield
spreads. We buy specific bonds when spreads are trading historically wide and
sell when the spreads are trading historically narrow. Credit analysis is an
important technique especially in today's market. We try to identify and invest
in improving credits and avoid those credits which are deteriorating. The
underlying concept to all these techniques is to enhance total return without
adding risk.
The past year has been extremely volatile and challenging year for the
municipal bond market. During the second half of 1995 individual investors, who
play a dominant role in the municipal bond market, tended to shun the product
during that period as a result of declining yields, a powerful equity market,
and fears regarding tax reform. That pattern kept municipal yields artificially
high. However, during the first several months of 1996 we have seen the
municipal bond market outperform relative to taxables. The catalyst for the
municipal market's strong relative performance was a substantially diminished
fear of tax reform. Other factors contributing to the municipal outperformance
are: sparse new issue supply, higher interest rates and seasonal heavy cash
flows into investors hands as a result of bond calls, maturities, and coupon
payments.
During the third quarter of 1995 the Fund was managed in a defensive style due
to the talk of tax-reform risks. The Fund consisted of mainly high quality bonds
with short to intermediate maturities. This enabled the Fund to perform well in
an adverse municipal bond market environment. In the fourth quarter concerns of
tax-reform subsided and we extended the duration of the Fund. This enabled the
Fund to fully participate in the year-end bond market rally.
In 1996 we became defensive and established a neutral or short duration for the
Fund. We remain diversified throughout the yield curve and remain invested in
high quality bonds.
/s/ RONALD H. SCHWARTZ
Ronald H. Schwartz, CFA
Senior Vice President
18
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
3.87% 5.01% 12.14%
- ------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Florida Municipal Debt
Classic Florida 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Trust Class
<S> <C> <C> <C>
1/31/94 $10,000 $10,000 $10,000
5/31/94 9,786 9,533 9,348
5/31/95 10,692 10,389 10,196
5/31/96 11,106 10,880 10,532
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------
3.76% 4.82% 11.77% Wiithout load
- -----------------------------------------------------------
-0.16% 3.13% 7.57% With load
- -----------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Florida Municipal Debt
Classic Florida 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Investor Class
<S> <C> <C> <C>
1/31/94 $ 9,625 $10,000 $10,000
5/31/94 9,418 9,533 9,348
5/31/95 10,270 10,389 10,196
5/31/96 10,656 10,880 10,532
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------
3.27% 3.27% Without load
- -----------------------------------------------------
1.29% 1.29% With load
- -----------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Florida Municipal Debt
Classic Florida 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Flex Class
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,224 10,539 10,477
</TABLE>
*Commenced operations June 1, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
19
<PAGE>
STI CLASSIC TENNESSEE TAX-EXEMPT BOND FUND
------------------------------------------
The STI Classic Tennessee Tax-Exempt Bond Fund (the Fund) seeks to provide
current income exempt from federal and state income tax for Tennessee residents
without undue investment risk. The income tax exemption objective was met except
for income generated on cash reserves. As of May 31, 1996, the Fund had an
average maturity of approximately twelve years. The one year total return was
3.28% for Investor Shares and 3.43% for Trust Shares based on net asset value.
The Lehman 10-Year Municipal Bond Index had a total return of 4.73% (which does
not include operating expenses), and the Lipper Tennessee Municipal Debt Average
had an average total return of 3.63% for the year ending May 31, 1996.
Our philosophy of investing in the municipal bond market is to limit risk as
much as possible. We do not make major maturity shifts. We will bias the
portfolio based upon our near term fundamental and technical analysis, however,
these will be moderate maturity shifts. Our style of investing enables us to
enhance performance by emphasizing cheap sectors of the yield curve,
overweighting undervalued sectors and underweighting overvalued sectors. Another
technique is credit analysis, where we try to identify and invest in improving
credits and avoid those credits which are deteriorating.
This past year has seen a continuance in the volatility experienced in
1994-1995. Several factors have been responsible for this volatility, including
changing outlooks for inflation and recession, tax-reform, and relatively low
new issuance of municipal bonds. Fears of inflation in mid-1995 changed in early
1996 to talk of a recession and once again returned to an inflationary mode in
recent weeks. Over the past year, AAA general obligation bond yields have
increased 20 basis points, however they have fallen as much as 25 basis points
in the interim. Also in this past year, talk of tax reform reached a fevered
pitch as Steve Forbes focused upon it in his campaign for the presidency. The
tax-reform issue contributed to municipal bonds trading cheap to treasuries in
late 1995 and early 1996. Once Mr. Forbes dropped out of the race, the issue
dropped almost out of sight and municipals began to outperform treasuries
because of the relatively light volume of new issuance and strong demand for
municipal bonds. The low supply of new issuance particularly applies to
Tennessee residents, as new issuance in this state accounts for less than one
percent of total new issuance for the entire United States.
During the year, the focus of the Fund was to purchase high quality bonds with
good call protection and to slightly increase exposure to bonds in the 20 year
maturity range, where the yield curve appeared to be trading cheap versus the
treasury market. The slight lengthening of the average maturity and duration,
also brought the structure of the Fund more in line with the structure of the
Lipper Tennessee Municipal Debt Average. For the majority of the year, the
Fund's average maturity was shorter than both indices, so that it did not fully
participate in the rally which occurred in mid-to-late 1995.
/s/ PATRICIA LOVE
Patricia Love
Vice President
/s/ RONALD H. SCHWARTZ
Ronald H. Schwartz, CFA
Senior Vice President
20
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
3.43% 1.94% 4.59%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Tennessee Municipal Debt
Classic Tennessee 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Trust Class
<S> <C> <C> <C>
1/31/94 $10,000 $10,000 $10,000
5/31/94 9,282 9,533 9,428
5/31/95 10,040 10,389 10,175
5/31/96 10,385 10,880 10,545
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- ------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- ------------------------------------------------------------
3.28% 1.94% 4.64% Wiithout load
- ------------------------------------------------------------
-0.58% 0.30% 0.71% With load
- ------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Tennessee Municipal Debt
Classic Tennessee 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Investor Class
<S> <C> <C> <C>
1/31/94 $9,625 $10,000 $10,000
5/31/94 8,942 9,533 9,428
5/31/95 9,679 10,389 10,175
5/31/96 9,996 10,880 10,545
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -------------------------------------------
1.96% 1.98% Without load
- -------------------------------------------
0.00% 0.00% With load
- -------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Tennessee Municipal Debt
Classic Tennessee 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Flex Class
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,201 10,539 10,469
</TABLE>
*Commenced operations June 5, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
21
<PAGE>
STI CLASSIC GEORGIA TAX-EXEMPT BOND FUND
----------------------------------------
The investment objective of STI Classic Georgia Tax-Exempt Bond Fund (the Fund)
seeks to provide current income exempt from federal and state income taxes for
Georgia residents without undue investment risk. Total return for the Fund
includes current income as well as changes in the value of the Fund's assets. As
of May 31, 1996 the Fund's Trust Class had an average maturity of 9.2 years and
a one year annualized total return of 3.89% which compared very favorably with
to the Lipper Georgia Municipal Debt Average at 3.63%. For the same period the
Lehman 10-year Municipal Bond Index, which does not include Fund expenses, had
an annualized return of 4.72%.
Our investment philosophy in the municipal market is to provide our
shareholders, as conservative investors, with high quality investments, income
stability, and a favorable risk/return ratio. In keeping with our philosophy we
look for value within the state of Georgia utilizing internal as well as outside
credit analysis to identify areas in the state that are possible quality upgrade
candidates, monitoring shifts within the Georgia market which may create
investment opportunities and subsequently allow the Fund to achieve gains, while
at the same time maintaining a geographical diversity to minimize credit risk.
Given our philosophy, and in light of the market's volatile nature in recent
years, we are maintaining a relatively defensive position. The average maturity
and duration may vary slightly in the future however, depending on our outlook
for the market.
The municipal market was volatile in the second half of 1995 stemming from fears
of possible radical tax-reform and conflicting reports regarding the strength of
the economy. The yield spread between Treasury bonds and municipals narrowed
dramatically reflecting continuing concerns as to the outcome of future
tax-reform debates. The Federal Reserve eased interest rates in late December
1995, bolstering weakening prices. It was expected at that time that the Federal
Reserve would repeat that move several times in early 1996 which did not happen.
In the first half of 1996, fears of tax-reform faded, but signs were present
that the economy was picking up strength resulting in renewed fears of rising
inflation among investors. This perception on investors part drove municipal
prices down. The absence of Fed activity in early 1996 also played a part in the
decline in prices during this period. As volatile as the bond market was during
the year, yields overall for the one year period ending May 31, 1996 rose by
only fifteen basis points in the ten year range.
The Fund remained slightly defensive throughout the fiscal year. This strategy
protected our participants from undue principal risk as the market declined in
value. We expect more volatility in the market going forward into the second
half of 1996. Our strategy is to maintain a conservative approach in our Fund,
given the volatility in the marketplace.
Ongoing campaign debates regarding tax-reform proposals, continued perception of
rising inflation and supply and demand factors could keep the municipal market
in a trading range for the rest of 1996.
/s/ GAY B. CASH
Gay B. Cash
Vice President
22
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------------------------------
3.89% 2.57% 6.19%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Georgia Municipal Debt
Classic Georgia 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Trust Class
<S> <C> <C> <C>
01/31/94 $10,000 $10,000 $10,000
5/31/94 9,529 9,533 9,338
5/31/95 10,190 10,389 10,124
5/31/96 10,587 10,880 10,492
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -------------------------------------------------------------
3.69% 2.46% 5.90% Wiithout load
- -------------------------------------------------------------
-0.24% 0.81% 1.92% With load
- -------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Georgia Municipal Debt
Classic Georgia 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Investor Class
<S> <C> <C> <C>
01/31/94 $ 9,625 $10,000 $10,000
5/31/94 9,171 9,533 9,338
5/31/95 9,786 10,389 10,124
5/31/96 10,147 10,880 10,492
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -------------------------------------------
2.26% 2.22% Without load
- -------------------------------------------
0.26% 0.26% With load
- -------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Georgia Municipal Debt
Classic Georgia 10-Year Municipal Bond Average
Tax-Exempt Bond Fund Index
Flex Class
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,170 10,539 10,479
</TABLE>
*Commenced operations June 6, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
23
<PAGE>
STI CLASSIC INVESTMENT GRADE BOND FUND
--------------------------------------
The STI Classic Investment Grade Bond Fund (the Fund) seeks to provide as high a
level of total return through current income and capital appreciation as is
consistent with the preservation of capital primarily through investment in
investment grade fixed income securities. Total return includes not only the
current income but also the changes in value of the assets held by the Fund. For
the year ended May 31, 1996 the Fund's Trust Class had a total return of 4.02%
versus an average return of 3.75% for the Lipper Intermediate Investment Grade
Debt Average category. For the same period the Lehman Government/Corporate
Index, which has no fees taken out, had an annualized return of 4.10%.
During the second half of 1995 interest rates declined, but the first half of
1996 saw an increase in interest rates. The fixed income market seems to be
continuing its trend of volatility we have seen over the last few years.
Corporate bonds continue to be relatively expensive on a historic basis, because
of this we continue to limit corporate positions mainly to the short end of the
maturity range. This has limited total return somewhat. Even though corporate
securities are expensive they have continued to perform well. Mortgage
securities seem fairly valued and we have added mortgage positions over the last
year. They have performed well and added materially to total return.
Changing perceptions of economic growth and Federal Reserve policy have caused
the market to remain volatile. Early in 1996 expectations were that the economy
was headed toward recession. A few months later the concern was that the economy
was growing too rapidly and the Fed might need to tighten. As 1996 progresses we
expect these changes in psychology to keep volatility relatively high.
The Fund continues to be managed with only moderate shifts in the average
maturity and duration. Total return is enhanced through yield curve analysis
(monitoring and analyzing the risk/reward tradeoffs of different maturity
sectors), sector rotation, credit analysis, and other low risk strategies. By
actively pursuing these strategies the Fund strives to add to total return while
reducing risk.
/S/ L. EARL DENNEY
L. Earl Denney, CFA
Executive Vice President
24
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- -----------------------------------------------------------------------
4.02% 5.13% 6.07% 25.66%
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Intermediate Investment
Classic Investment Grade Government/Corporate Grade Debt Average
Bond Trust Class Index
<S> <C> <C> <C>
7/31/92 $10,000 $10,000 $10,000
05/31/93 10,736 10,788 10,677
5/31/94 10,861 10,897 10,742
5/31/95 11,990 12,162 11,815
5/31/96 12,472 12,660 12,258
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- ----------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- ----------------------------------------------------------------------------
3.50% 4.73% 5.82% 25.20% Wiithout load
- ----------------------------------------------------------------------------
-0.38% 3.40% 4.81% 20.50% With load
- ----------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Intermediate Investment
Classic Investment Grade Government/Corporate Grade Debt Average
Bond Investor Class Index
<S> <C> <C> <C>
6/30/92 $ 9,625 $10,000 $10,000
05/31/93 10,486 11,064 10,917
5/31/94 10,577 11,176 10,984
5/31/95 11,639 12,473 12,081
5/31/96 12,046 12,984 12,534
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- ------------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- ------------------------------------------------------
2.50% 2.45% Without load
- ------------------------------------------------------
0.51% 0.51% With load
- ------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Lehman Intermediate Investment
Classic Investment Grade Government/Corporate Grade Debt Average
Bond Flex Class Index
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,032 10,327 10,313
</TABLE>
*Commenced operations June 7, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
25
<PAGE>
STI CLASSIC SHORT-TERM BOND FUND
--------------------------------
The investment objective of the STI Classic Short-Term Bond Fund (the Fund)
is to provide as high a level of current income, relative to funds with like
investment objectives, as is consistent with the preservation of capital
primarily through investment in short to intermediate-term investment grade
fixed income securities. The Fund attempts to capture the yield advantage which
normally exists between money market instruments and short to intermediate-term
bonds. The price volatility of short to intermediate-term bonds is fairly modest
and over time it consistently has been offset by the incremental yield these
instruments offer relative to money market securities. The Fund is managed from
a total return perspective; that is, day to day decisions are made with a view
towards maximizing income and price appreciation. The investment discipline
applied in managing the Fund emphasizes adding value through yield curve, sector
and credit analysis. Investments are made in those sectors, credits, and
segments of the yield curve within the applicable universe which offer the most
attractive risk/reward trade-offs. For example, we study historical yield spread
data of the corporate and mortgage sectors and compare it with the current
environment to identify buying and selling opportunities between various
sectors. We also use internal credit analysis and screening to identify
opportunities in corporate bonds. We look for those instruments that offer
incremental yield for a given level of credit risk.
The total return earned by the Fund (Trust Shares) over the past twelve
months was 4.45%, as compared to 5.38% for the Salomon 1-3 year
Treasury/Government Sponsored/Corporate Index, and 5.73% for the Salomon
One-Year Treasury Benchmark On-the-Run. The Fund's return was competitive with
money market funds despite the rise in short-term interest rates in the first
half of 1996. Three to five year interest rates rose approximately one-half
percent and the corresponding price decline of the bonds held by the Fund offset
some of the income earned. We continue to emphasize high quality corporate
securities to increase the yield of the Fund.
/s/ AGNES G. PAMPUSH
Agnes G. Pampush, CFA
Vice President
26
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- ----------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- ----------------------------------------------------------
4.45% 4.67% 4.66% 15.73%
- ----------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Salomon Salomon One Year
Classic Short-Term Bond 1-3 Year Treasury Benchmark
Trust Class Treasury/Government On-the-Run
Sponsored/ Corporate
Index
<S> <C> <C> <C>
3/31/93 $10,000 $10,000 $10,000
5/31/93 10,035 10,039 10,035
5/31/94 10,238 10,260 10,303
5/31/95 11,016 11,021 10,965
5/31/96 11,506 11,614 11,593
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
4.23% 4.47% 4.30% 14.37% Without load
- --------------------------------------------------------------------------------
2.19% 3.78% 3.62% 12.03% With load
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Salomon Salomon One Year
Classic Short-Term Bond 1-3 Year Treasury Benchmark
Investor Class Treasury/Government On-the-Run
Sponsored/ Corporate
Index
<S> <C> <C> <C>
03/31/93 $ 9,800 $10,000 $10,000
05/31/93 9,838 10,039 10,035
5/31/94 10,017 10,260 10,303
5/31/95 10,762 11,021 10,965
5/31/96 11,218 11,614 11,593
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- ------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- ------------------------------------------------
3.73% 3.54% Without load
- ------------------------------------------------
1.65% 1.56% With load
- ------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Salomon Salomon One Year
Classic Short-Term Bond 1-3 Year Treasury Benchmark
Flex Class Treasury/Government On-the-Run
Sponsored/ Corporate
Index
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,159 10,481 10,511
</TABLE>
*Commenced operations June 7, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
27
<PAGE>
STI CLASSIC SHORT-TERM U.S. TREASURY SECURITIES FUND
----------------------------------------------------
The investment objective of STI Classic Short-Term U.S. Treasury Securities Fund
(the Fund) is to provide as high a level of current income, relative to funds
with like investment objectives, as is consistent with the preservation of
capital through investment exclusively in short-term U.S. Treasury securities.
The goal of the Fund is to capture the yield advantage which normally exists
between money market instruments and short-term bonds. The price volatility of
short-term bonds is very modest and over time has consistently been offset by
the incremental yield of these instruments relative to money market securities.
The Fund is managed from a total return perspective, that is, day to day
decisions are made with a view toward maximizing income and price appreciation.
The investment discipline applied in managing the Fund emphasizes adding value
through yield curve analysis. Investments are made in those segments of the
yield curve within the applicable universe which offer the most attractive
risk/reward trade-off.
The total return earned by the Fund (Trust Shares) over the past twelve
months was 4.73%, as compared to 5.38% for the Salomon 1-3 year
Treasury/Government Sponsored/Corporate Index, and 5.67% for the Salomon 6-Month
Treasury Bill Index.. The Fund's return was competitive with money market funds,
despite the one half percent increase in two and three years interest rates,
which depressed bond prices, and offset some of the income earned.
/s/ AGNES G. PAMPUSH
Agnes G. Pampush, CFA
Vice President
28
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- -----------------------------------------------------------
4.73% 4.33% 4.19% 14.08%
- -----------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Salomon Salomon 6 Month Treasury
Classic Short-Term U.S. 1-3 Year Bill Index
Treasury Securities Treasury/Government
Trust Class Sponsored/ Corporate
Index
<S> <C> <C> <C>
03/31/93 $10,000 $10,000 $10,000
05/31/93 10,024 10,039 10,053
5/31/94 10,241 10,260 10,391
5/31/95 10,867 11,021 10,953
5/31/96 11,381 11,614 11,575
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
4.52% 4.17% 4.03% 13.47% Without load
- --------------------------------------------------------------------------------
3.48% 3.83% 3.70% 12.35% With load
- --------------------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Salomon Salomon 6 Month Treasury
Classic Short-Term U.S. 1-3 Year Bill Index
Treasury Securities Treasury/Government
Investor Class Sponsored/ Corporate
Index
<S> <C> <C> <C>
03/31/93 $ 9,900 $10,000 $10,000
05/31/93 9,921 10,039 10,053
5/31/94 10,120 10,260 10,391
5/31/95 10,730 11,021 10,953
5/31/96 11,215 11,614 11,575
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- ------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- ------------------------------------------------
3.72% 3.51% Without load
- ------------------------------------------------
1.64% 1.54% With load
- ------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Salomon Salomon 6 Month Treasury
Classic Short-Term U.S. 1-3 Year Bill Index
Treasury Securities Flex Treasury/Government
Class Sponsored/ Corporate
Index
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,157 10,481 10,516
</TABLE>
*Commenced operations June 22, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
29
<PAGE>
STI CLASSIC LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
---------------------------------------------------------
The STI Classic Limited-Term Federal Mortgage Securities Fund (the Fund)
seeks to provide as high a level of current income as is consistent with the
preservation of capital by investing primarily in mortgage-related securities
issued or guaranteed (as to the timely payment of principal and interest) by
U.S. government agencies and instrumentalities.
For the year ended May 31, 1996 the Fund's Trust Class had a cumulative total
return of 4.84% versus an average return of 4.05% for the Lipper
Short/Intermediate U.S. Government Average category. For the same period the
Merrill Lynch 1-5 year Short/Intermediate U.S. Treasury Index, which has no fees
taken out, had an annualized return of 4.92%.
Bond market investors experienced considerable price return in the first half of
the year as market participants expected the Federal Reserve to continue easing
rates in an effort to guide the economy to a soft landing and avert a recession.
However, these slowing economic concerns proved to be incorrect in March as
strong jobs data and ensuing economic releases indicated that economic growth
was indeed stronger than expected. As a result the Federal Reserve signaled that
it would no longer ease rates. With these events the bond market sold off
sharply retracting the year's gains. The managers maintained the long term
target average maturity/duration of the Fund making slight adjustments only.
Mortgage securities, which had underperformed other market sectors earlier in
the year, performed very well as more investors looked for yield to offset
principal losses. During this time, the Fund managers continued to add these
securities to the core position in mortgages thereby enhancing the Fund's
performance with additional income.
The Fund continues to be managed with only moderate shifts in the average
maturity and duration. Return is enhanced through income via participation in
mortgage securities. Additionally, return is enhanced by adjusting sector
weighting and yield curve analysis (monitoring and analyzing the risk/reward
trade-off of different maturity sectors). By actively pursuing these strategies,
the Fund strives to add income and total return while reducing risk.
/s/ L. EARL DENNEY
L. Earl Denney, CFA
Executive Vice President
/s/ DAVID WEST
David West, CFA
Vice President
30
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- ----------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- ----------------------------------------------
4.84% 6.21% 12.70%
- ----------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Merrill Short/Intermediate U.S.
Classic Limited-Term Lynch 1-5 Year Government Average
Federal Mortgage Short/Intermediate U.S.
Securities Trust Class Treasury Index
<S> <C> <C> <C>
06/30/94 $10,000 $10,000 $10,000
5/31/95 10,756 10,809 10,737
5/31/96 11,276 11,341 11,171
</TABLE>
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- --------------------------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- --------------------------------------------------------------
4.59% 6.45% 12.39% Without load
- --------------------------------------------------------------
1.97% 4.99% 9.53% With load
- --------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Merrill Short/Intermediate U.S.
Classic Limited-Term Lynch 1-5 Year Government Average
Federal Mortgage Short/Intermediate U.S.
Securities Investor Class Treasury Index
<S> <C> <C> <C>
07/31/94 $ 9,750 $10,000 $10,000
5/31/95 10,440 10,696 10,634
5/31/96 10,919 11,222 11,064
</TABLE>
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------------------------
4.10% 4.03% Without load
- -----------------------------------------------------------------------
2.09% 2.06% With load
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper
Invested in the STI Invested in the Merrill Short/Intermediate U.S.
Classic Limited-Term Lynch 1-5 Year Government Average
Federal Mortgage Short/Intermediate U.S.
Securities Flex Class Treasury Index
<S> <C> <C> <C>
6/30/95 $10,000 $10,000 $10,000
5/31/96 10,193 10,431 10,354
</TABLE>
*Commenced operations June 7, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
31
<PAGE>
STI CLASSIC U.S. GOVERNMENT SECURITIES FUND
-------------------------------------------
The objective for the STI Classic U.S. Government Securities Fund (the Fund) is
to provide a high level of income consistent with the preservation of capital by
investing primarily in obligations issued or guaranteed by the U.S. Government
or its agencies or instrumentalities. The Fund met its objectives for the fiscal
year of operations ending May 31, 1996. The Fund (Trust Class) had an annualized
inception-to-date total return of 6.21%. In addition, the Fund was comprised of
37% U.S. Treasuries and 54% Government Agency Mortgage-Backed Securities.
The last four quarters have been characterized by a great deal of
volatility in interest rates and fixed income returns. The third and fourth
quarter of 1995 experienced strong positive returns for fixed income investors.
Conversely, the first and second quarter of 1996 experienced a rise in interest
rates due to fears of a stronger than expected economy that might produce higher
inflation. Thus far, these fears appear overblown and we feel interest rates
will start to fall during the second half of 1996.
The Fund has been taking advantage of these higher yields to increase income for
the shareholders. Our current strategy is to purchase mortgage-backed securities
which offer attractive yields versus alternatives.
/s/ CHARLES B. LEONARD
Charles B. Leonard, CFA
First Vice President
/s/ MICHAEL FORD
Michael Ford
Associate
32
<PAGE>
Shown immediately following the Advisor's Discussion of Fund Performance are
three line graphs depicting the growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 as compared with the
growth of a hypothetical investment of $10,000 in the Fund's benchmark(s).
TRUST CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------
Annualized Cumulative
One Year Inception Inception
Return to Date to Date
- -----------------------------------------------
2.77% 6.21% 11.65%
- -----------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Lipper
Classic U.S. Government Intermediate Government
Securities Trust Class Average
8/31/94 $10,000 $10,000
5/31/95 10,832 10,752
5/31/96 11,132 11,101
INVESTOR CLASS (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
One Year Annualized Cumulative
Return Inception Inception
to Date to Date
- -----------------------------------------------------------------------
2.47% 5.54% 11.29% Without load
- -----------------------------------------------------------------------
-1.38% 3.52% 7.11% With load
- -----------------------------------------------------------------------
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Lipper
Classic U.S. Government Intermediate Government
Securities Investor Class Average
6/30/94 $ 9,625 $10,000
5/31/95 10,571 10,916
5/31/96 10,832 11,271
FLEX CLASS* (Graph)
[GRAPHIC OMITTED]
- -----------------------------------------------------------------------
Annualized Cumulative
Inception Inception
to Date to Date
- -----------------------------------------------------------------------
1.42% 1.39% Without load
- -----------------------------------------------------------------------
-0.54% -0.53% With load
- -----------------------------------------------------------------------
Flex Class*
Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000
Invested in the STI Invested in the Lipper
Classic U.S. Government Intermediate Government
Securities Flex Class Average
6/30/95 $10,000 $10,000
5/31/96 9,944 10,259
*Commenced operations June 7, 1995.
Past performance is no indication of future performance.
The Fund's comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
33
<PAGE>
STI CLASSIC PRIME QUALITY MONEY MARKET FUND
-------------------------------------------
The Investment objective of the STI Classic Prime Quality Money Market Fund
(the Fund) is to provide as high a level of current income as is consistent with
the preservation of capital and liquidity by investing exclusively in high
quality money market instruments. The investment discipline which we use in
managing the Fund emphasizes adding incremental value through yield curve,
sector and credit analysis. Investments are made in those sectors, credits, and
segments of the yield curve within the universe of money market eligible
securities which offer the most attractive risk/reward trade-off and current
yield. The maturity structure and average maturity of the Fund are actively
managed to maximize the yield of the Fund over time based on the current market
rates and conditions and on our market outlook.
The Federal Reserve lowered the Federal Funds Rate three times during the fiscal
year ending May 31, 1996, with the last cut in rates on January 31, 1996.
Interest rates on short-term money market securities have followed the decline
in the Fed Funds Rate.
During this period, the Fund has extended its average maturity in order to
minimize the impact of the declining rates on the yield of the Fund. This
strategy has allowed the Fund to maintain a very competitive yield.
STI CLASSIC U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
--------------------------------------------------------
The investment objective of the STI Classic U.S. Government Securities Money
Market Fund (the Fund) is to provide as high a level of current income as is
consistent with the preservation of capital and liquidity by investing
exclusively in money market eligible securities. Eligible securities include
U.S. Treasury securities, U.S. Government Subsidiary Corporation securities that
are backed by the full faith and credit of the U.S. Government, and repurchase
agreements ("repos") collateralized by U.S. Treasury obligations and U.S.
Government Subsidiary Corporation securities. The investment discipline which we
use in managing the Fund emphasizes adding incremental value through yield curve
analysis. The maturity structure and average maturity of the Fund are actively
managed to maximize the yield of the Fund over time based on the current market
rates and conditions and our market outlook.
The Federal Reserve lowered the Federal Funds Rate three times during the fiscal
year ending May 31, 1996, with the last cut in rates on January 31, 1996.
Interest rates on short-term money market securities have followed the decline
in the Fed Funds Rate.
During this period, the Fund has extended its average maturity in order to
minimize the impact of the declining rates on the yield of the Fund. This
strategy has allowed the Fund to maintain a very competitive yield.
/s/ DAVID S. YEALY
David S. Yealy
Vice President
34
<PAGE>
STI CLASSIC TAX-EXEMPT MONEY MARKET FUND
----------------------------------------
The STI Classic Tax-Exempt Money Market Fund (the Fund) seeks to provide a high
level of current income exempt from Federal income tax while preserving capital
and liquidity. The Fund invests in high quality, U.S. dollar-denominated
municipal securities of issuers located in all fifty states, the District of
Columbia, and Puerto Rico.
The Federal Reserve lowered the Federal Funds Rate three times during the fiscal
year ending May 31, 1996, with the last cut in rates on January 31, 1996.
Interest rates on short-term tax-exempt money market securities have declined
during this period in response to the drop in the Fed Funds Rate but not as much
as for taxable securities due to an increase in supply of short-term tax-exempt
securities.
During this period, the Fund has extended its average maturity in order to
minimize the impact of the declining rates on the yield of the Fund. This
strategy has allowed the Fund to maintain a very competitive yield.
/s/ MARY F. CERNILLI
Mary F. Cernilli
Associate
35
<PAGE>
This page intentionally left blank.
36
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees of
STI Classic Funds:
We have audited the accompanying statements of net assets of the Value
Income Stock, Mid-Cap Equity, Capital Growth, Balanced, International Equity
Index, International Equity, Sunbelt Equity, Investment Grade Tax-Exempt Bond,
Florida Tax-Exempt Bond, Tennessee Tax-Exempt Bond, Georgia Tax-Exempt Bond,
Investment Grade Bond, Short-Term Bond, Short-Term U.S. Treasury Securities,
Limited-Term Federal Mortgage Securities, U.S. Government Securities, Prime
Quality Money Market, U.S. Government Securities Money Market and Tax-Exempt
Money Market Funds of STI Classic Funds (the "Trust") as of May 31, 1996, and
the related statements of operations, changes in net assets and financial
highlights for the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of May
31, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Value Income Stock, Mid-Cap Equity, Capital Growth, Balanced, International
Equity Index, International Equity, Sunbelt Equity, Investment Grade Tax-Exempt
Bond, Florida Tax-Exempt Bond, Tennessee Tax-Exempt Bond, Georgia Tax-Exempt
Bond, Investment Grade Bond, Short-Term Bond, Short-Term U.S. Treasury
Securities, Limited-Term Federal Mortgage Securities, U.S. Government
Securities, Prime Quality Money Market, U.S. Government Securities Money Market
and Tax-Exempt Money Market Funds of STI Classic Funds as of May 31, 1996, the
results of their operations, changes in their net assets, and financial
highlights for the periods presented, in conformity with generally accepted
accounting principles.
ARTHUR ANDERSEN LLP
Philadelphia, PA
July 12, 1996
37
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
VALUE INCOME STOCK FUND
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (92.1%)
BANKS (7.5%)
AmSouth Bancorp 169,300 $ 6,433
Bank of Boston 162,500 8,105
Bankers Trust New York 283,000 21,260
Central Fidelity Banks 257,400 8,816
Crestar Financial 111,200 6,269
First American Bank 139,200 6,368
First American of Tennessee 160,900 7,059
First Virginia Banks 158,300 6,332
Fleet Financial Group 324,000 14,297
Great Western Financial 307,100 7,063
Magna Group 291,500 6,996
Summit Bancorp 170,554 6,204
----------
Total Banks 105,202
----------
CHEMICALS (6.6%)
Akzo 155,400 9,421
Ethyl 1,789,300 18,564
Imperial Chemical Industries 397,200 21,101
Lawter International 520,600 5,987
Nalco Chemical 618,500 19,637
Rohm & Haas 195,100 13,218
Witco Chemical 164,800 5,253
----------
Total Chemicals 93,181
----------
CONCRETE & MINERAL PRODUCTS (1.5%)
Tele Danmark A/S ADR 852,100 21,196
----------
ELECTRICAL SERVICES (3.7%)
Central & South West 502,000 13,868
Cinergy 563,008 16,679
General Public Utilities 203,700 6,824
Pacificorp 701,800 14,124
----------
Total Electrical Services 51,495
----------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS (15.5%)
B.A.T. Industries ADR 1,848,000 30,261
ConAgra 527,200 22,472
Dean Foods 460,200 11,217
Dial 251,100 7,219
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS --(CONTINUED)
Grand Metropolitan ADR 1,023,500 $ 27,507
H.J. Heinz 376,200 12,509
Lance 265,800 4,419
Masco 879,200 27,475
Maytag 604,200 12,990
McCormick 934,000 21,249
Snap-On Tools 279,800 13,465
Unilever 181,100 13,673
Unilever ADR 98,300 13,258
----------
Total Food, Beverage, Tobacco
& Household 217,714
----------
ENERGY (7.5%)
Atlantic Richfield 110,500 13,219
Elf Aquitaine ADR 377,200 13,815
Occidental Petroleum 476,300 12,324
Pennzoil 336,000 14,532
Phillips Petroleum 314,800 13,064
Questar 380,700 12,468
Repsol 409,600 13,926
USX-Marathon Group 564,500 12,348
----------
Total Energy 105,696
----------
HEALTH CARE (6.4%)
Bausch & Lomb 473,700 20,369
Bristol-Myers Squibb 334,400 28,549
Pharmacia Upjohn ADR 545,700 22,306
Warner Lambert 341,400 19,118
----------
Total Health Care 90,342
----------
INSURANCE (7.1%)
American Financial Group 465,200 13,956
American General 448,000 15,904
ITT Hartford Group 551,400 28,535
Lincoln National 448,400 21,075
Marsh & McLennan 217,600 20,373
----------
Total Insurance 99,843
----------
38
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
MACHINERY (5.6%)
Cooper Industries 544,700 $ 23,218
General Signal 715,400 27,364
Goulds Pumps 310,800 7,382
Tenneco 385,600 20,726
----------
Total Machinery 78,690
----------
MEDIA (4.2%)
American Greetings, Cl A 724,800 19,660
Houghton Mifflin 293,500 13,905
McGraw-Hill 415,600 19,481
Reader's Digest, Cl A 152,600 6,466
----------
Total Media 59,512
----------
METALS & MINING (2.9%)
Allegheny Ludlum 671,900 13,438
Reynolds Metals 380,200 20,531
USX-U.S. Steel Group 183,100 5,676
----------
Total Metals & Mining 39,645
----------
MISCELLANEOUS BUSINESS
SERVICES (3.9%)
Deluxe 377,500 13,684
Kelly Services, Cl A 398,800 11,864
Ogden 786,900 15,246
Xerox 91,600 14,416
----------
Total Miscellaneous Business
Services 55,210
----------
PAPER & PAPER PRODUCTS (3.8%)
International Paper 342,100 13,641
James River 815,900 20,296
Tambrands 410,300 18,925
----------
Total Paper & Paper Products 52,862
----------
RETAIL (2.7%)
Giant Food 228,900 7,897
J.C. Penney 273,000 14,162
May Department Stores 331,600 15,710
----------
Total Retail 37,769
----------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TECHNOLOGY (6.2%)
AMP 417,600 $ 17,591
GTE 452,300 19,336
ITT Industries 1,041,100 28,500
Philips Electronics ADR 602,500 21,163
----------
Total Technology 86,590
----------
TELEPHONES &
TELECOMMUNICATION (5.6%)
Alltel 618,800 19,492
Frontier 702,800 22,490
Southern New England
Telecommunications 467,300 20,152
Sprint 336,700 14,268
----------
Total Telephones &
Telecommunication 76,402
----------
TRANSPORTATION (1.4%)
Ryder System 686,800 20,089
----------
Total Common Stocks
(Cost $1,170,974,717) 1,291,438
----------
REPURCHASE AGREEMENTS (8.3%)
Deutsche Bank 5.33%, dated
05/31/96, matures 06/03/96,
repurchase price $57,449,239
(collateralized by various FHLB
discount notes, total par value
$15,275,000, 07/01/96-07/29/96;
various FHLMC obligations,
total par value $20,759,349,
5.494%-996.969%, 11/15/05-
11/15/23; and various FNMA
obligations, total par value
$43,981,328, 0.00%-8.40%,
02/25/08-03/25/24: total
market value $58,576,767) 57,424 57,424
39
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
VALUE INCOME STOCK FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Salomon Brothers 5.33%, dated
05/31/96, matures 06/03/96,
repurchase price $38,606,723
(collateralized by various
FHLMC obligations, total par
value $15,729,565, 6.00%-9.50%,
07/01/99-03/01/26; and various
FNMA obligations, total par
value $57,245,349, 6.00%-9.50%,
10/01/01-05/01/26: total
market value $39,635,606) $ 38,590 $ 38,590
Swiss Bank 5.33%, dated
05/31/96, matures 06/03/96,
repurchase price $19,932,895
(collateralized by various
FHLMC obligations, total par
value $7,263,678, 7.50%,
11/01/25-12/01/25; and
various U.S. Treasury
obligations, total par value
$11,207,000, 7.25%-13.25%,
02/15/05-05/15/20: total
market value $20,367,151) 19,924 19,924
----------
Total Repurchase Agreements
(Cost $115,937,362) 115,938
----------
Total Investments (100.4%)
(Cost $1,286,912,079) 1,407,376
----------
OTHER ASSETS AND LIABILITIES (-0.4%)
Total Other Assets and Liabilities, Net (6,082)
----------
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 94,636,309 outstanding shares of
benefical interest $1,004,096
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 9,944,754 outstanding shares of
beneficial interest 106,927
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 2,009,853 outstanding shares of
beneficial interest 24,778
Undistributed net investment income 5,610
Accumulated net realized gain on
investments 139,419
Unrealized appreciation on investments 120,464
----------
Total Net Assets (100.0%) $1,401,294
==========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 13.15
==========
Net Asset Value, and Redemption Price
Per Share--Investor Shares $ 13.13
==========
Maximum Public Offering Price Per
Share--Investor Shares
($13.13 (DIVIDE) 96.25%) $ 13.64
==========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 13.08
==========
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
40
<PAGE>
================================================================================
MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (85.3%)
AEROSPACE & DEFENSE (2.2%)
General Dynamics 31,100 $ 1,917
Litton Industries* 52,000 2,412
Sundstrand 49,600 1,748
----------
Total Aerospace & Defense 6,077
----------
AUTOMOTIVE (1.6%)
Dana 37,800 1,266
Federal Signal 23,500 590
Magna International, Cl A 29,800 1,438
Sonoco Products 39,500 1,081
----------
Total Automotive 4,375
----------
BANKS (7.8%)
Bancorp Hawaii 29,500 1,073
Bank of Boston 34,100 1,701
Cal Fed Bancorp* 82,400 1,514
Crestar Financial 20,200 1,139
First Security 59,550 1,414
Merchantile Bancorp 28,400 1,335
Northern Trust 40,000 2,190
PNC Bank 37,965 1,153
Regions Financial 21,700 1,025
Republic New York 61,900 3,915
Signet Banking 39,700 1,027
SouthTrust 59,200 1,621
Summit Bancorp 67,900 2,470
----------
Total Banks 21,577
----------
BUILDING (1.5%)
Clayton Homes 58,200 1,120
Foster Wheeler 66,200 2,946
----------
Total Building 4,066
----------
CHEMICALS (1.9%)
Georgia Gulf 28,000 959
IMC Fertilizer Group 39,600 1,450
Olin 13,800 1,277
Witco Chemical 49,500 1,578
----------
Total Chemicals 5,264
----------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES (2.7%)
Aes* 42,700 $ 1,185
Illinova 124,900 3,279
Nipsco Industries 42,700 1,590
Wisconsin Energy 48,500 1,358
----------
Total Electrical Services 7,412
----------
ENERGY (4.1%)
Anadarko Petroleum 40,400 2,171
Apache 44,900 1,285
Kerr-McGee 36,200 2,127
Mapco 17,000 982
Lyondell Petrochemical 26,600 688
Valero Energy 47,100 1,295
Noble Affiliates 50,800 1,721
Questar 34,900 1,143
----------
Total Energy 11,412
----------
ENVIRONMENTAL SERVICES (0.8%)
Laidlaw, Cl B 47,000 476
Molten Metal Technology* 57,300 1,748
----------
Total Environmental Services 2,224
----------
FINANCIAL SERVICES (2.6%)
Bear Stearns 59,975 1,447
Charles Schwab 75,100 1,821
Franklin Resources 49,100 2,878
Green Tree Financial 33,000 1,081
----------
Total Financial Services 7,227
----------
FOOD, BEVERAGE,TOBACCO &
HOUSEHOLD PRODUCTS (5.0%)
Dial 67,900 1,952
First Brands 81,300 2,012
Hubbell, Cl B 30,520 2,132
IBP 57,500 1,574
McCormick 65,700 1,495
Nine West Group* 26,300 1,279
Solectron* 43,800 1,900
Tyson Foods 64,800 1,587
----------
Total Food, Beverage,Tobacco
& Household 13,931
----------
41
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND) -- CONTINUED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
HEALTH CARE (9.2%)
Apria Healthcare Group* 26,800 $ 784
Biogen* 42,600 2,577
Cardinal Health 28,100 1,795
Chiron* 17,700 1,859
Elan ADR* 26,100 1,638
Healthcare & Retirement* 26,900 972
HEALTHSOUTH Rehabilitation* 82,400 2,884
Ivax 64,100 1,763
Mylan Laboratories 55,700 1,058
Nellcor* 23,300 1,270
R.P. Scherer* 22,500 945
Stryker 37,000 1,915
Sunglass Hut International * 45,800 1,259
Tenet Healthcare* 57,300 1,232
Teva Pharmaceuticals ADR 41,900 1,875
Varian Associates 31,200 1,778
----------
Total Health Care 25,604
----------
INSURANCE (5.5%)
AFLAC 55,800 1,681
Aon 48,900 2,463
Equifax 62,500 1,547
Healthcare Compare* 33,700 1,630
Pacificare Health Systems, Cl B* 27,300 2,259
Progressive of Ohio 43,900 2,030
Sunamerica 44,600 2,498
Transatlantic Holdings 17,900 1,150
----------
Total Insurance 15,258
----------
LEISURE (2.8%)
Circus Circus Enterprises* 59,600 2,481
HFS* 36,200 2,258
Mirage Resorts* 37,100 2,110
Wendy's International 48,000 864
----------
Total Leisure 7,713
----------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
MACHINERY (4.0%)
Agco 52,300 $ 1,576
American Standard* 75,300 2,231
General Signal 40,600 1,553
Goulds Pumps 28,100 667
Smith International* 12,600 397
Trinity Industries 30,900 1,070
Tyco International 37,800 1,493
York International 38,300 2,025
----------
Total Machinery 11,012
----------
MEDIA (1.6%)
Chris-Craft Industries* 18,722 765
Interpublic Group 30,400 1,410
Omnicom Group 32,200 1,405
TCA Cable Television 27,300 771
----------
Total Media 4,351
----------
METALS & MINING (1.3%)
Alumax* 39,600 1,317
Potash of Saskatchewan 33,300 2,214
----------
Total Metals & Mining 3,531
----------
PAPER & PAPER PRODUCTS (1.1%)
Bowater 21,800 858
Tambrands 20,200 932
Westvaco 40,800 1,306
----------
Total Paper & Paper Products 3,096
----------
PRINTING & PUBLISHING (1.7%)
American Greetings, Cl A 100,800 2,734
Belo, Cl A 36,000 1,377
Houghton Mifflin 11,400 540
----------
Total Printing & Publishing 4,651
----------
RAILROADS (0.8%)
Illinois Central 72,750 2,173
----------
42
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL (7.9%)
Cintas 13,200 $ 706
Dollar General 26,300 730
Federated Department Stores* 85,400 2,957
Fisher Scientific International 43,500 1,778
Hannaford Brothers 72,100 2,280
Kohls* 42,100 1,394
Lone Star Steakhouse & Saloon* 33,700 1,361
Office Depot* 73,400 1,881
Outback Steakhouse* 100,100 3,791
Price/Costco* 107,000 2,140
Staples* 141,800 2,836
----------
Total Retail 21,854
----------
TECHNOLOGY (15.3%)
ADC Telecommunications* 24,200 1,113
Adobe Systems 31,500 1,169
America Online* 48,800 2,757
Analog Devices* 79,525 2,197
Atmel* 58,200 2,066
Avnet 29,900 1,540
Borland International* 48,800 656
Cabletron Systems* 10,100 735
Cadence Design Systems* 19,950 1,132
CUC International* 35,400 1,310
Dell Computer* 25,800 1,429
Diebold 45,600 1,739
Electronic Arts* 27,500 870
EMC* 68,500 1,516
Fiserv* 26,000 816
Informix* 77,300 1,758
Linear Technology 46,800 1,615
Mentor Graphics* 51,000 912
Molex 42,337 1,349
Network General * 81,400 1,933
Octel Communications * 15,000 368
Olsten 42,300 1,301
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
Parametric Technology* 52,400 $ 2,397
Reynolds & Reynolds 22,200 1,107
Seagate Technology* 64,000 3,760
Stratacom* 28,600 1,555
Symantec* 43,600 687
U.S. Robotics* 28,000 2,569
----------
Total Technology 42,356
----------
TELEPHONES &
TELECOMMUNICATION (3.4%)
360 Communications* 68,300 1,579
Century Telephone Enterprises 34,100 1,108
Frontier 84,800 2,714
Southern New England Telecom 34,400 1,484
Telephone & Data Systems 21,300 929
Worldcom* 34,100 1,667
----------
Total Telephones &
Telecommunication 9,481
----------
TRANSPORTATION (0.5%)
Atlantic Southeast Airlines 51,500 1,365
----------
Total Common Stocks
(Cost $215,086,805) 236,010
----------
CONVERTIBLE BOND (0.7%)
Broadband Tech, Convertible to
24.108 shares (B)
5.000%, 05/15/01 $2,000 2,000
----------
Total Convertible Bond
(Cost $2,000,000) 2,000
----------
43
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND) -- CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (15.2%)
Deutsche Bank 5.33%, dated
05/31/96, matures 06/03/96,
repurchase price $42,138,594
(collateralized by FHLB discount
note, par value $15,895,000, 0.00%,
07/01/96, various FHLMC
obligations, total par value
$11,493,334, 0.00%-8.2055%,
10/15/08-07/15/19, and various
FNMA obligations, total par
value $29,123,728, 0.00%-7.5075%,
12/25/06-10/25/23: total
market value $42,962,287) 42,120 $ 42,120
----------
Total Repurchase Agreement
(Cost $42,119,885) 42,120
----------
Total Investments (101.2%)
(Cost $259,206,690) 280,130
----------
OTHER ASSETS AND LIABILITIES (-1.2%)
Total Other Assets and Liabilities, Net (3,225)
----------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 19,896,278 outstanding shares of
benefical interest 216,555
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 1,410,060 outstanding shares of
beneficial interest 15,667
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 396,479 outstanding shares of
beneficial interest 4,840
Undistributed net investment income 249
Accumulated net realized gain on
investments 18,671
Unrealized appreciation on investments 20,923
----------
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
Total Net Assets (100.0%) $276,905
========
Net Asset Value, Offering Price and Redemption
Price Per Share--Trust Shares $ 12.76
========
Net Asset Value and Redemption Price
Per Share--Investor Shares $ 12.74
========
Maximum Public Offering Price Per Share--
Investor Shares ($12.74 (DIVIDE) 96.25%) $ 13.24
========
Net Asset Value, Offering Price and Redemption
Price Per Share--Flex Shares (1) $ 12.69
========
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
44
<PAGE>
================================================================================
CAPITAL GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (93.0%)
AEROSPACE & DEFENSE (3.9%)
Allied Signal 317,500 $ 17,383
General Dynamics 54,000 3,328
Lockheed Martin 68,000 5,704
United Technologies 182,600 19,972
----------
Total Aerospace & Defense 46,387
----------
AUTOMOTIVE (3.5%)
General Motors 222,900 12,287
General Motors, Cl E 266,700 15,035
Goodyear Tire & Rubber 137,600 6,949
Lear* 202,200 7,810
----------
Total Automotive 42,081
----------
BANKS (3.5%)
Bank of Boston 170,700 8,514
BayBanks 1,900 205
Chase Manhattan Bank 377,900 26,453
CoreStates Financial 41,300 1,626
Cullen/Frost Bankers 65,100 3,353
Signet Banking 59,700 1,545
Wells Fargo 565 136
----------
Total Banks 41,832
----------
BUILDING (1.4%)
American Standard* 345,300 10,230
Foster Wheeler 136,000 6,052
----------
Total Building 16,282
----------
CHEMICALS (2.9%)
Air Products & Chemicals 103,300 6,146
Dow Chemical 36,400 3,044
E.I. du Pont de Nemours 118,400 9,442
Hercules 233,200 13,234
Morton International 74,200 2,820
----------
Total Chemicals 34,686
----------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (4.2%)
Emerson Electric 75,000 $ 6,422
General Electric 348,500 28,838
General Signal 393,000 15,032
----------
Total Electrical Equipment 50,292
----------
ENERGY (5.5%)
Amoco 231,000 16,748
Atlantic Richfield 50,100 5,993
Dresser Industries 148,400 4,341
Enron 130,200 5,208
Halliburton 25,100 1,396
Kerr-McGee 96,500 5,669
Mobil 112,400 12,687
Schlumberger 60,600 5,053
Texaco 35,000 2,931
Union Texas Petroleum 261,700 4,874
----------
Total Energy 64,900
----------
ENVIRONMENTAL SERVICES (0.7%)
Molten Metal Technology* 196,100 5,981
WMX Technologies 81,100 2,859
----------
Total Environmental Services 8,840
----------
FINANCIAL SERVICES (0.8%)
FHLMC 118,500 9,791
----------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS (10.5%)
Bush Boake Allen* 144,400 3,574
Coca Cola 162,600 7,480
Colgate-Palmolive 59,700 4,701
CPC International 207,900 14,371
Dial 50,000 1,438
Gillette 66,400 3,926
JP Foodservice* 114,700 2,695
Kellogg 36,400 2,648
Newell 230,400 6,912
PepsiCo 550,200 18,294
Philip Morris 218,950 21,758
45
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
CAPITAL GROWTH FUND--CONTINUED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS--CONTINUED
Procter & Gamble 232,900 $ 20,466
Ralston-Ralston Purina Group 101,500 6,217
Sara Lee 114,800 3,831
Sysco 163,700 5,586
----------
Total Food, Beverage,
Tobacco & Household 123,897
----------
HEALTH CARE (12.1%)
Abbott Laboratories 111,800 4,821
Allergan 3,200 123
American Home Products 57,800 3,092
Astra, Cl A ADR 100,100 4,555
Boston Scientific* 84,200 3,610
Bristol-Myers Squibb 98,300 8,392
Columbia/HCA Healthcare 297,564 16,031
HEALTHSOUTH Rehabilitation* 117,700 4,120
Johnson & Johnson 283,194 27,576
Medtronic 47,100 2,649
Merck 339,482 21,939
Pfizer 100,300 7,096
Pharmacia Upjohn ADR 50,800 2,076
Schering Plough 42,800 2,509
SmithKline Beecham 285,600 14,566
Tenet Healthcare* 349,100 7,506
Varian Associates 78,300 4,463
Vencor* 243,370 7,697
----------
Total Health Care 142,821
----------
INSURANCE (6.2%)
American International Group 163,450 15,405
Chubb 120,400 5,614
General Re 55,000 8,030
ITT Hartford Group 127,400 6,593
MGIC Investment 91,000 5,346
PMI Group 145,400 6,289
Sphere Drake Holdings 306,000 2,984
Travelers 308,697 12,811
Washington National 374,600 9,927
----------
Total Insurance 72,999
----------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
LEISURE (6.6%)
ITT* 177,700 $ 10,929
Carnival 716,800 21,325
Marriott 177,900 8,450
Mattel 207,300 5,649
McDonald's 397,100 19,110
Walt Disney 201,066 12,215
Wendy's International 55,000 990
----------
Total Leisure 78,668
----------
MACHINERY (0.8%)
Deere 215,400 8,966
----------
MEDIA (3.2%)
Hollinger International 235,300 2,912
McGraw-Hill 34,000 1,594
Tele-Communications, Cl A* 858,200 16,199
Viacom, Cl B* 377,721 16,006
World Color Press* 41,800 982
----------
Total Media 37,693
----------
METALS & MINING (0.8%)
Alumax* 24,700 821
Aluminum Company of America 137,800 8,492
Worthington Industries 22,100 445
----------
Total Metals & Mining 9,758
----------
MISCELLANEOUS (2.5%)
Eastman Kodak 73,200 5,444
Tyco International 598,700 23,649
----------
Total Miscellaneous 29,093
----------
PAPER & PAPER PRODUCTS (0.3%)
Kimberly Clark 51,100 3,724
----------
RETAIL (6.3%)
Federated Department Stores* 342,200 11,849
General Nutrition* 128,900 1,998
Home Depot 534,032 27,302
Intimate Brands 198,100 4,284
Melville 40,200 1,633
Office Depot* 279,400 7,160
46
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL--CONTINUED
Price/Costco* 84,100 $ 1,682
Safeway* 58,300 1,968
Staples* 149,100 2,982
Wal-Mart Stores 513,700 13,292
----------
Total Retail 74,150
----------
TECHNOLOGY (11.6%)
AMP 8,600 362
Arrow Electronics* 150,800 7,427
Automatic Data Processing 73,000 2,801
Bay Networks* 140,800 4,083
Cisco Systems* 268,600 14,706
CompuServe* 7,500 186
Ericsson Telephone ADR 254,700 5,874
First Data 41,900 3,342
Hewlett Packard 92,000 9,821
IBM 125,600 13,408
Informix* 61,700 1,404
Intel 65,500 4,945
Microsoft* 147,900 17,563
Motorola 206,100 13,757
Oracle* 300,950 9,969
Scientific-Atlanta 726,800 13,718
Xerox 92,100 14,494
----------
Total Technology 137,860
----------
TELEPHONES & TELECOMMUNICATION (3.5%)
Airtouch Communications* 94,100 2,999
Alltel 44,800 1,411
AT&T 468,358 29,214
BellSouth 61,900 2,515
Cellular Communications, Cl A* 70,000 3,763
Pacific Telesis Group 48,100 1,605
----------
Total Telephones &
Telecommunication 41,507
----------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
TRANSPORTATION (2.1%)
Burlington Northern Santa Fe 100,200 $ 8,492
Conrail 21,800 1,531
Southwest Airlines 126,800 3,471
Union Pacific 162,700 11,409
----------
Total Transportation 24,903
----------
Total Common Stocks
(Cost $966,088,933) 1,101,130
----------
PREFERRED STOCKS (2.5%)
AIR TRANSPORTATION (0.6%)
Continental Airline Financial,
8.50% (A) 110,000 7,205
----------
BROADCASTING, NEWSPAPERS &
ADVERTISING (0.3%)
SFX Broadcasting, Ser D (B) 70,000 3,614
----------
CONTAINERS & PACKAGING (0.2%)
Crown Cork & Seal 43,000 1,962
----------
PAPER & PAPER PRODUCTS (0.4%)
International Paper CV, 5.25% 100,000 4,775
----------
PETROLEUM & FUEL PRODUCTS (0.4%)
Occidental Petroleum (B) 80,000 4,890
----------
TELEPHONES &
TELECOMMUNICATION (0.2%)
TCI Communications CV, $2.125 50,000 2,300
----------
WHOLESALE (0.4%)
Westinghouse Electric, Convertible
to 0.885 Shares (B) 300,000 5,138
----------
Total Preferred Stocks
(Cost $27,955,615) 29,884
----------
47
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
CAPITAL GROWTH FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS (2.2%)
Baker Hughes
Zero Coupon, 05/05/08 $ 6,500 $ 4,436
Continental Airlines Convertible
to 16.5590 Shares
6.750%, 04/15/06 3,100 3,418
Mariott, LYON (A) (B)
Zero Coupon, 03/25/11 5,000 2,638
Molten Metal Technology,
Convertible to 25.8065 Shares (B)
5.500%, 05/01/06 2,000 1,985
Noble Affiliates
4.250%, 11/01/03 2,500 2,603
Tele Communications International,
Convertible to 36.63 Shares
4.500%, 02/15/06 4,000 3,610
Tenet Healthcare
6.000%, 12/01/05 4,500 4,770
WMX Technologies
2.000%, 01/24/05 2,000 1,962
----------
Total Convertible Bonds
(Cost $25,430,492) 25,422
----------
REPURCHASE AGREEMENTS (1.6%)
Salomon Brothers 5.33%, dated
05/31/96, matures 06/03/96,
repurchase price $14,986,982
(collateralized by FHLMC
obligation, par value $11,200,000,
7.7291%, 06/15/23; and various
FNMA obligations, total par
value $123,624,662, 5.90%-9.50%,
07/01/22-02/25/23: total
market value $16,138,834) 14,980 14,980
Swiss Bank 5.33%, dated
05/31/96, matures 06/03/96,
repurchase price $3,513,875
(collateralized by U.S.
Treasury Bond, par value
$2,778,000, 9.875%, 11/15/15:
market value $3,604,137) 3,512 3,512
----------
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $18,492,644) $ 18,492
----------
Total Investments (99.3%)
(Cost $1,037,967,684) 1,174,928
----------
OTHER ASSETS AND LIABILITIES (0.7%)
Total Other Assets and Liabilities, Net 8,617
----------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 65,851,300 outstanding shares of
benefical interest 740,420
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 12,833,227 outstanding shares of
beneficial interest 146,753
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 739,091 outstanding shares of
beneficial interest 10,094
Undistributed net investment income 3,296
Accumulated net realized gain on
investments 146,022
Unrealized appreciation on investments 136,960
----------
Total Net Assets (100.0%) $1,183,545
==========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 14.90
==========
Net Asset Value and Redemption Price
Per Share--Investor Shares $ 14.89
==========
Maximum Public Offering Price Per Share--
Investor Shares ($14.89 (DIVIDE) 96.25%) $ 15.47
==========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 14.84
==========
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
48
<PAGE>
================================================================================
BALANCED FUND
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (55.7%)
AEROSPACE & DEFENSE (2.3%)
Allied Signal 18,800 $ 1,029
General Dynamics 3,200 197
Lockheed Martin 4,000 336
United Technologies 10,900 1,192
--------
Total Aerospace & Defense 2,754
--------
AUTOMOTIVE (2.1%)
General Motors 13,300 733
General Motors, Cl E 15,200 857
Goodyear Tire & Rubber 8,200 414
Lear* 11,800 456
--------
Total Automotive 2,460
--------
BANKS (2.4%)
Bank of Boston 6,400 319
BayBanks 3,300 356
Chase Manhattan Bank 22,400 1,568
CoreStates Financial 2,500 98
Cullen/Frost Bankers 3,900 201
Signet Banking 3,900 101
Wells Fargo 900 217
--------
Total Banks 2,860
--------
BUILDING (0.9%)
American Standard* 18,700 554
Foster Wheeler 12,000 534
--------
Total Building 1,088
--------
CHEMICALS (1.7%)
Air Products & Chemicals 5,800 345
Dow Chemical 1,400 117
E.I. du Pont de Nemours 6,700 534
Hercules 13,400 760
Morton International 6,000 228
--------
Total Chemicals 1,984
--------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (2.5%)
Emerson Electric 4,700 $ 402
General Electric 20,500 1,696
General Signal 23,300 891
--------
Total Electrical Equipment 2,989
--------
ENERGY (3.0%)
Amoco 13,700 993
Atlantic Richfield 2,800 335
Dresser Industries 8,800 257
Enron 7,700 308
Halliburton 1,500 84
Kerr-McGee 5,700 335
Mobil 6,700 756
Schlumberger 3,600 300
Union Texas Petroleum 9,400 175
--------
Total Energy 3,543
--------
ENVIRONMENTAL SERVICES (0.6%)
Molten Metal Technology* 13,600 415
WMX Technologies 8,100 286
--------
Total Environmental Services 701
--------
FINANCIAL SERVICES (0.5%)
FHLMC 6,900 570
--------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS (6.1%)
Bush Boake Allen* 5,300 131
Coca Cola 9,500 437
Colgate-Palmolive 3,500 276
CPC International 13,500 933
Gillette 4,200 248
JP Foodservice * 8,900 209
Kellogg 2,000 146
Newell 13,700 411
PepsiCo 33,300 1,107
Philip Morris 12,700 1,262
49
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
BALANCED FUND--CONTINUED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS--CONTINUED
Procter & Gamble 13,900 $ 1,221
Ralston-Ralston Purina Group 6,000 368
Sara Lee 5,700 190
Sysco 9,800 334
--------
Total Food, Beverage, Tobacco
& Household 7,273
--------
HEALTH CARE (7.4%)
Abbott Laboratories 6,600 285
American Home Products 2,600 139
Astra, Cl A ADR 3,600 164
Boston Scientific* 8,000 343
Bristol-Myers Squibb 5,600 478
Columbia/HCA Healthcare 17,040 918
Healthcare & Retirement* 6,000 217
HEALTHSOUTH Rehabilitation* 12,284 430
Johnson & Johnson 16,800 1,636
Medtronic 3,200 180
Merck 20,100 1,299
Pfizer 6,000 425
Pharmacia Upjohn ADR 3,000 123
Schering Plough 2,600 152
SmithKline Beecham 16,900 862
Tenet Healthcare* 22,000 473
Varian Associates 6,100 348
Vencor* 12,400 392
--------
Total Health Care 8,864
--------
INSURANCE (3.8%)
American International Group 9,700 914
Chubb 11,800 550
General Re 3,200 467
ITT Hartford Group 7,600 393
MGIC Investment 5,900 347
PMI Group 9,700 420
Sphere Drake Holdings 21,000 205
Travelers 18,300 759
Washington National 19,500 517
--------
Total Insurance 4,572
--------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
LEISURE (4.8%)
Carnival 39,000 $ 1,160
ITT* 10,500 646
Marriott 9,500 451
Mattel 11,750 320
McDonald's 29,700 1,429
Viacom, Cl B* 21,544 913
Walt Disney 11,195 680
Wendy's International 10,000 180
--------
Total Leisure 5,779
--------
MACHINERY (0.4%)
Deere 12,400 516
--------
MEDIA (0.5%)
Tele-Communications, Cl A* 34,000 642
--------
METALS (0.6%)
Alumax* 1,400 47
Aluminum Company of America 7,900 487
Worthington Industries 12,000 242
--------
Total Metals 776
--------
MISCELLANEOUS BUSINESS SERVICES (1.5%)
Eastman Kodak 5,400 402
Tyco International 35,600 1,406
--------
Total Miscellaneous Business Services 1,808
--------
PAPER & PAPER PRODUCTS (0.2%)
Kimberly Clark 3,000 219
--------
RETAIL (3.7%)
Federated Department Stores* 19,400 672
General Nutrition* 7,600 118
Home Depot 31,700 1,621
Intimate Brands 10,500 227
Melville 2,400 98
Office Depot* 11,100 284
Price/Costco* 12,700 254
Safeway 7,000 236
Staples* 4,700 94
Wal-Mart Stores 30,500 789
--------
Total Retail 4,393
--------
50
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
TECHNOLOGY (7.1%)
AMP 3,600 $ 152
Arrow Electronics* 10,500 517
Automatic Data Processing 4,270 164
Bay Networks* 8,300 241
Cisco Systems* 16,100 881
Ericsson Telephone ADR 15,100 348
First Data 4,400 351
Hewlett Packard 5,500 587
IBM 8,800 939
Intel 3,400 257
Microsoft* 8,800 1,045
Motorola 12,200 814
Oracle* 17,900 593
Scientific-Atlanta 38,600 729
Xerox 5,400 850
--------
Total Technology 8,468
--------
TELEPHONES &
TELECOMMUNICATION (2.0%)
Airtouch Communications* 8,600 274
Alltel 4,100 129
AT&T 27,800 1,734
BellSouth 3,500 142
Pacific Telesis Group 2,900 97
--------
Total Telephones &
Telecommunication 2,376
--------
TRANSPORTATION (1.3%)
Burlington Northern Santa Fe 6,300 534
Conrail 1,400 98
Southwest Airlines 8,300 227
Union Pacific 9,700 680
--------
Total Transportation 1,539
--------
UTILITIES (0.3%)
Texas Utilities 8,200 335
--------
Total Common Stocks
(Cost $58,836,551) 66,509
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PREFERRED STOCKS (1.0%)
AIR TRANSPORTATION (0.3%)
Continental Airline
Financial, 8.50% 5,000 $ 328
--------
CONTAINERS & PACKAGING (0.4%)
Crown Cork & Seal 11,800 538
--------
PETROLEUM & FUEL PRODUCTS (0.3%)
Occidental Petroleum (B) 6,000 367
--------
Total Preferred Stocks
(Cost $1,172,700) 1,233
--------
CORPORATE OBLIGATIONS (12.0%)
Aristar Financial
7.500%, 07/01/99 $1,000 1,014
AT&T Capital
5.500%, 02/09/98 1,000 985
Capital One Bank
6.660%, 08/17/98 500 497
Capital One Bank, MTN
6.490%, 08/15/97 1,000 998
Ford Motor Credit, MTN
6.110%, 12/28/01 1,000 953
General Electric Capital
6.660%, 05/01/18 1,000 988
International Lease Finance
8.125%, 01/15/98 1,000 1,023
Merrill Lynch
7.375%, 05/15/06 1,500 1,481
Paine Webber
6.250%, 06/15/98 3,500 3,442
Salomon
6.700%, 12/01/98 1,000 994
Sears, MTN
7.360%, 08/15/97 1,000 1,013
Societe Generale - NY
7.400%, 06/01/06 1,000 990
--------
Total Corporate Obligations
(Cost $14,561,130) 14,378
--------
51
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
BALANCED FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS (1.0%)
Pennzoil, 4.75%
4.750%, 10/01/03 $ 800 $ 870
Time Warner Finance, $1.24
Zero Coupon, 06/22/13 900 372
--------
Total Convertible Bonds
(Cost $1,216,874) 1,242
--------
U.S. AGENCY MORTGAGE-BACKED
OBLIGATIONS (5.5%)
FHLMC
8.000%, 06/01/02 730 749
FNMA
8.500%, 04/01/17 904 924
GNMA
6.500%, 12/15/23 2,458 2,275
9.000%, 11/15/17 2,500 2,653
--------
Total U.S. Agency Mortgage-Backed
Obligations
(Cost $6,639,387) 6,601
--------
U.S. TREASURY OBLIGATIONS (21.7%)
U.S. Treasury Bonds
7.500%, 11/15/16 4,000 4,142
8.125%, 08/15/19 3,750 4,144
U.S. Treasury Notes
5.625%, 01/31/98 250 248
7.500%, 10/31/99 1,500 1,542
6.250%, 08/31/00 4,500 4,436
7.500%, 11/15/01 750 777
7.500%, 05/15/02 3,500 3,637
5.750%, 08/15/03 7,500 7,060
--------
Total U.S. Treasury Obligations
(Cost $26,837,668) 25,986
--------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.0%)
Merrill Lynch 5.31%, dated 05/31/96, matures 06/03/96, repurchase price
$4,754,406 (collateralized by FHLMC ARM, par value $8,062,000, 7.86%,
04/01/24: total market value
$4,929,158) $ 4,752 $ 4,752
--------
Total Repurchase Agreement
(Cost $4,752,303) 4,752
--------
Total Investments (100.9%)
(Cost $114,016,613) 120,701
--------
OTHER ASSETS AND LIABILITIES (-0.9%)
Total Other Assets and Liabilities, Net (1,036)
--------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 9,665,824 outstanding shares of
benefical interest 97,978
Fund shares of the Investor Class (unlimited
authorization--no par value) based on
422,202 outstanding shares of
beneficial interest 4,229
Fund shares of the Flex Class (unlimited
authorization--no par value) based on
271,519 outstanding shares of
beneficial interest 2,980
Undistributed net investment income 527
Accumulated net realized gain on
investments 7,267
Unrealized appreciation on investments 6,684
--------
Total Net Assets (100.0%) $119,665
========
52
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 11.55
========
Net Asset Value and Redemption
Price Per Share--Investor Shares $ 11.60
========
Maximum Public Offering Price Per
Share--Investor Shares
($11.60 (DIVIDE) 96.25%) $ 12.05
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 11.53
========
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
53
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS (97.6%)
AUSTRALIA (2.4%)
Amcor 13,361 $ 91
Broken Hill Proprietary 39,869 601
Coles Myer 40,644 149
CRA 9,418 153
CSR 27,994 102
Lend Lease 9,731 152
Mount Isa Mines Holdings 42,910 61
National Australia Bank 38,256 359
Newscorp 33,881 190
Pacific Dunlop 68,655 148
Western Mining 25,702 195
Westpac Banking 36,880 172
--------
Total Australia 2,373
--------
AUSTRIA (1.7%)
Bank of Austria 5,549 517
Creditanstalt Bankverein 4,114 290
Ea - Generali 720 236
Oest El Wirtsch , Cl A 3,274 250
OMV 2,270 235
Wienerberger Baustoff 570 118
--------
Total Austria 1,646
--------
BELGIUM (1.8%)
Bekaert 150 128
Delhaize Freres 2,100 107
Electrabel 1,000 215
Fortis 1,400 189
Generale Banque 470 163
Groupe Bruxelles Lambert 700 93
Kredietbank 540 157
Petrofina 600 179
Royale Belge 500 101
Solvay, Cl A 275 165
Tractabel 350 155
Union Minere* 680 51
--------
Total Belgium 1,703
--------
DENMARK (1.0%)
Carlsberg, Cl B 1,540 86
D/S 1912, Cl B 6 132
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
D/S Svendborg, Cl B 5 $ 163
Danisco 3,040 147
Novo Nordisk, Cl B 1,490 205
Sophus Berendsen, Cl B 410 55
Tele Danmark, Cl B 3,958 195
--------
Total Denmark 983
--------
FINLAND (0.5%)
Merita* 16,000 34
Nokia, Cl K 3,700 161
Outokumpu Oy Akt, Cl A 3,500 62
UPM - Kymmene 11,900 229
--------
Total Finland 486
--------
FRANCE (10.9%)
Accor 1,197 173
Air Liquide 2,497 435
Alcatel Alsthom 4,183 381
Axa 5,898 335
Banque National Paris, Cl A 4,950 186
Bouygues 1,800 196
Carrefour 669 367
Carrefour Bonus Rights* 668 184
Cie Bancaire 1,660 182
Cie de Saint Gobain 3,826 489
Cie Financiara Paribas 4,093 249
Cie Generale des Eaux 2,945 315
Compagnie de Suez 5,063 196
CSF Thomson 7,000 183
Elf Aquitaine 8,312 602
Elf Sanofi 4,123 317
Eridania Beghin - Say 1,709 268
Groupe Danone 2,414 353
Havas 3,700 317
Lafarge Coppee 2,218 146
Legrand 950 168
L'Oreal 2,213 674
Louis Vuitton - Moet Hennessy 3,837 932
Lyonnaise des Eaux Dumez 2,050 199
Michelin, Cl B 4,244 214
Pernod - Ricard 3,729 245
Peugeot 2,290 319
Pinault - Printemps Redoute 550 170
54
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FRANCE--CONTINUED
Promodes 650 $ 170
Rhone - Poulenc, Cl A 13,550 338
Schneider 6,627 307
Societe Generale 2,630 280
Total Compaigne, Cl B 6,920 501
Unibail 1,850 192
--------
Total France 10,583
--------
GERMANY (16.4%)
Aachener & Munchener Bete 216 136
Allianz 1,208 2,002
Asko Deutche Kaufhaus 156 106
BASF 2,755 766
Bayer 3,211 1,076
Bayerische Hypotheken und
Wechselbank 9,900 250
Bayerische Vereinsbank 9,760 275
Biersdorf 167 152
Bremer Vulkan Verbund* 788 2
Colonia Konzern 156 102
Daimler - Benz* 2,123 1,166
Degussa 399 137
Deutsche Bank 26,770 1,258
Dresdner Bank Frankfurt 20,600 517
Heidelberger Zement 299 196
Hochtief 676 297
Karstadt 1,025 402
Kaufhof 821 284
Linde 341 218
Lufthansa 2,108 325
Man Muenchen 531 137
Mannesmann 1,103 384
Munchener Ruckvers 356 631
Preussag 1,261 321
RWE 15,240 600
SAP 2,800 381
Schering 4,610 347
Siemens 25,340 1,421
Strabag 90 9
Thyssen 1,351 250
Veba 19,110 1,001
Viag 1,133 440
Volkswagen 1,061 374
--------
Total Germany 15,963
--------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
HONG KONG (1.0%)
Cathay Pacific Airways 45,000 $ 83
Cheung Kong Holdings 18,000 133
China Light & Power 15,000 71
Hang Seng Bank 14,900 156
Hong Kong Telecommunications 92,000 171
Hutchison Whampoa 22,000 141
Sun Hung Kai Properties 14,000 143
Swire Pacific, Cl A 9,000 80
--------
Total Hong Kong 978
--------
ITALY (9.0%)
Assicurazioni Generali 67,575 1,607
Banca Commerciale Italiana 68,500 145
Banco Ambrosian 37,000 104
Benetton Group 14,500 178
Credito Italiano 245,000 305
Edison 52,000 303
Fiat 275,000 971
Fiat Non-Convertible 42,000 78
Fidis 44,000 125
Finanziaria Autogrill* 640 1
Istituto Bancario san Paolo di Torino 75,000 459
Istituto Nazionale 323,919 486
Italgas 80,000 289
Mediobanca 41,400 287
Montedison* 182,000 111
Olivetti* 252,500 158
Parmalat Finanziaria 102,800 129
Pirelli 120,000 198
RAS 34,835 369
Sirti 19,500 125
SME Meridonale di Electric 31,640 36
Telecom Italia 410,000 821
Telecom Italia di Risp 88,000 149
Telecom Italia Mobile 515,946 1,103
Telecom Italia Mobile di Risp 154,164 213
--------
Total Italy 8,750
--------
JAPAN (33.8%)
Ajinomoto 16,000 193
Asahi Bank 37,000 446
Asahi Chemical Industries 46,000 334
Asahi Glass 31,000 374
55
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INTERNATIONAL EQUITY INDEX FUND--CONTINUED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN--CONTINUED
Bank of Tokyo - Mitsubushi* 24,800 $ 589
Bank of Yokohama 11,000 94
Bridgestone 21,000 366
Chiba Bank 12,000 104
Chiyoda 5,000 56
Citizen Watch 17,000 139
Cosmo Oil 48,000 313
Dai-Ichi Kangyo Bank 45,000 814
Dai Nippon Printing 25,000 464
Daiei 11,000 135
Daimaru 17,000 124
Daiwa Kosho Lease 11,000 115
Daiwa Securities 24,000 323
Ebara 11,000 167
Fanuc 4,300 168
Fuji Bank 42,000 915
Fuji Photo Film 9,000 280
Fujitsu 22,000 200
Furukawa Electric 39,000 230
Hankyu 48,000 287
Hitachi 54,000 501
Honda Motor 16,000 386
Industrial Bank of Japan 38,000 980
Ito Ham Foods 1,000 8
Ito Yokado 5,000 284
Itochu 31,000 223
Japan Air Lines* 49,000 396
Japan Energy 41,000 159
Joyo Bank 13,000 102
Jusco 5,000 148
Kansai Electric Power 13,800 319
Kao 23,000 307
Kawasaki Steel 46,000 171
Kinki Nippon Railway 26,780 198
Kirin Brewery 21,000 261
Kobe Steel* 60,000 166
Komatsu 13,000 124
Kubota 37,000 248
Kyocera 4,000 274
Marui 6,000 124
Matsushita Electric 33,000 569
Mitsubishi 21,000 288
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
Mitsubishi Chemical 45,000 $ 223
Mitsubishi Electric 62,000 425
Mitsubishi Estate 35,000 490
Mitsubishi Heavy Industries 65,000 560
Mitsubishi Materials 47,000 275
Mitsubishi Steel* 13,000 71
Mitsubishi Trust & Banking 23,000 384
Mitsui 23,000 212
Mitsui Trust & Banking 28,000 309
Mitsukoshi 16,000 177
Murata Manufacturing 3,000 110
NEC 32,000 353
New Oji Paper 39,000 341
Nichido Fire & Marine Insurance 15,750 128
Nippon Express 38,000 381
Nippon Oil 36,000 239
Nippon Paper Industries 30,000 202
Nippon Sharyo 5,000 50
Nippon Steel 88,000 299
Nippon Yusen 27,000 159
Nippondenso 26,000 562
Nissan Motor 45,000 371
NKK* 24,000 70
Nomura Securities 35,000 662
Obayashi 44,000 406
Odakyu Electric Railway 24,720 165
Olympus Optical 8,000 82
Osaka Gas 44,000 172
Ricoh 20,000 202
Sakura Bank 48,000 525
Sankyo 16,000 380
Sanyo Electric 32,000 191
Sega Enterprises 1,600 75
Sekisui Chemical 16,000 190
Sekisui House 7,000 82
Seven Eleven 7,000 428
Sharp 16,000 261
Shimizu 21,000 241
Shin - Etsu Chemical 9,450 189
Shizuoka Bank 13,000 169
Skylark 3,000 61
Sony 6,000 382
Sumitomo Bank 58,000 1,145
56
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN--CONTINUED
Sumitomo Chemical 47,000 $ 235
Sumitomo Metal 42,000 130
Taisei 61,000 461
Takeda Chemical 33,000 548
Teijin 28,000 145
Tobu Railway 23,000 149
Tohoku Electric Power 8,600 196
Tokai Bank 29,000 363
Tokio Marine & Fire Insurance 34,000 441
Tokyo Electric Power 16,600 426
Tokyo Electronics 5,000 154
Tokyo Gas 36,000 137
Tokyu 42,000 315
Toppan Printing 11,000 157
Toray 38,000 257
Tostem 5,000 146
Toto 18,000 265
Toyo Seikan Kaisha 5,000 179
Toyoda Automatic Loom 8,000 162
Toyota Motor 65,000 1,489
Yamaichi Securities 28,000 203
Yamanouchi Pharmaceutical 18,000 389
Yasuda Trust & Banking 20,000 121
--------
Total Japan 32,933
--------
NETHERLANDS (2.7%)
ABN-Amro Holdings 3,850 212
Akzo Nobel 970 117
International Nederlanden 4,477 369
Koninklijke 5,370 194
Koninklijke Nederlanden
Papierfabriek 2,724 68
Philips Electronics 3,742 133
Royal Dutch Petroleum 7,190 1,091
Unilever 1,850 252
Wolters Kluwer 1,761 197
--------
Total Netherlands 2,633
--------
NORWAY (1.0%)
Bergesen, Cl A 5,700 111
Hafslund Nycomed, Cl B 5,900 41
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
Kvaerner 2,250 $ 88
Norsk Hydro 12,200 579
Nycomed, Cl B* 5,900 119
Uni Storebrand* 16,012 77
--------
Total Norway 1,015
--------
SPAIN (3.8%)
Argentaria Bancaria de Espana 4,616 193
Autopistas CESA 12,879 139
Banco Bilbao Vizcaya 7,937 300
Banco Central Hispano 5,523 111
Banco de Santander 5,066 231
Dragados Construccion 6,786 91
Empresa Nacional de Electricidad 10,736 667
Fomento de Construcciones Contratas 958 77
Gas Natural 1,322 233
Iberdola 37,946 385
Mapfre 1,018 50
Repsol 12,707 435
Telefonica de Espana 37,645 676
Union Electrica Fenosa 26,994 164
--------
Total Spain 3,752
--------
SWEDEN (1.9%)
Asea, Cl A 1,950 202
Astra, Cl A 14,150 647
Electrolux, Cl B 1,300 66
Ericsson, Cl B 18,400 412
Skandinaviska Enskilda Banken 13,500 106
Skanska, Cl B 2,500 81
Stora Kopparbergs Bergslags, Cl A 5,000 67
Svenska Cellulosa, Cl B 7,000 137
Swedish Match 4,500 15
Volvo, Cl B 4,500 95
--------
Total Sweden 1,828
--------
SWITZERLAND (2.0%)
Asea Brown Boveri 60 72
Ciba - Geigy 320 353
Nestle 372 420
Roche Holdings, Genusshein 34 261
Roche Holdlings, Bearer 12 146
57
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INTERNATIONAL EQUITY INDEX FUND--CONCLUDED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
SWITZERLAND--CONTINUED
Sandoz Pharmaceutical, Cl R 300 $ 312
Schweizerische Bankgesellschaft 200 187
Schweizerische Bankverein 1,300 231
--------
Total Switzerland 1,982
--------
UNITED KINGDOM (7.7%)
Abbey National 32,519 279
B.A.T. Industries 36,624 295
Barclays Bank 28,563 333
Bass 17,787 225
Blue Circle Industries 46,936 256
British Gas 20,778 61
British Petroleum 93,113 802
British Telecommunications 55,837 308
BTR 47,897 209
Cable & Wireless 29,090 200
General Electric 61,851 357
Glaxo Wellcome 31,899 416
Grand Metropolitan 39,465 266
Great Universal Stores 14,129 149
Guinness 42,734 308
Hanson Trust 128,670 373
HSBC Holdings HK$10 22,268 338
HSBC Holdings, Ordinary 12,295 187
Imperial Chemical 15,754 208
Marks & Spencer 48,514 348
National Power 11,877 96
Reuters Holdings 24,899 290
Rio Tinto Zinc 20,914 326
RMC Group 6,371 99
Sainsbury, J. 22,515 138
SmithKline Beecham, Cl A 24,760 252
Unilever 13,002 242
Vodafone Groupe 36,942 146
--------
Total United Kingdom 7,507
--------
Total Foreign Common Stocks
(Cost $86,238,260) 95,115
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN PREFERRED STOCKS (1.2%)
AUSTRALIA (0.1%)
Newscorp 22,401 $ 109
--------
AUSTRIA (0.2%)
Creditanstalt Bankverein 3,876 211
--------
FINLAND (0.1%)
Nokia, Cl A 2,600 113
--------
GERMANY (0.7%)
RWE 8,480 262
SAP 2,130 295
Volkswagen 197 53
--------
Total Germany 610
--------
ITALY (0.1%)
Fiat 42,800 80
--------
Total Foreign Preferred Stocks
(Cost $1,032,723) 1,123
--------
CASH EQUIVALENT (0.2%)
Highmark Diversified Money
Market Fund (A)
4.670% $ 257 257
--------
Total Cash Equivalent
(Cost $256,765) 257
--------
Total Investments (99.0%)
(Cost $87,527,748) 96,495
--------
OTHER ASSETS AND LIABILITIES (1.0%)
Total Other Assets and Liabilities, Net 999
--------
NET ASSETS:
Fund shares of the Trust Shares
(unlimited authorization --
no par value) based on
8,304,051 outstanding shares
of beneficial interest 81,977
58
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
Fund shares of the Investor Shares
(unlimited authorization --
no par value) based on
514,693 outstanding shares
of beneficial interest $ 5,175
Fund shares of the Flex Shares
(unlimited authorization --
no par value) based
on 84,360 outstanding shares
of beneficial interest 878
Undistributed net investment income 232
Accumulated net realized gain
on investments 269
Net unrealized appreciation
on investments 8,967
Net unrealized depreciation on
foreign currency and translation
of other assets and liabilities in
foreign currency (4)
--------
Total Net Assets (100.0%) $ 97,494
========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Trust Shares $ 10.96
========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share-- Investor Shares $ 10.88
========
Maximum Public Offering
Price Per Share -- Investor Shares
($10.88 (DIVIDE) 96.25%) $ 11.30
========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Flex Shares (1) $ 10.87
========
(1)The Flex Shares have a contingent sales charge. For a description
of a possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
59
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS (95.7%)
ARGENTINA (0.8%)
Compania Inversiones Telefonica 30,000 $ 1,755
--------
AUSTRALIA (3.6%)
Comalco 420,000 2,463
Leighton Holdings 560,000 1,881
Newscorp 125,779 706
QBE Insurance 88,632 506
Queensland Nickel 900,000 2,191
--------
Total Australia 7,747
--------
BRAZIL (2.2%)
Telecom Brasileiras ADR 43,800 2,820
Usiminas ADR 180,000 1,947
--------
Total Brazil 4,767
--------
CANADA (3.5%)
Alcan Aluminum 60,000 1,965
Bank of Montreal 85,000 2,022
CAE 224,988 1,946
Noranda 83,000 1,793
--------
Total Canada 7,726
--------
CROATIA (0.2%)
Pliva GDR* 14,700 454
--------
DENMARK (1.8%)
Novo Nordisk, Cl B 12,700 1,745
Sophus Berendsen, Cl B 16,000 2,130
--------
Total Denmark 3,875
--------
FINLAND (6.5%)
Cultor, Ser 2 117,700 5,571
Finnair, Ser 1 220,000 1,760
Konecranes International* 50,000 1,221
Metra, Cl B 27,800 1,304
Tietotehdas, Cl B 50,000 2,271
UPM - Kymmene 110,000 2,120
--------
Total Finland 14,247
--------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
FRANCE (6.0%)
B.I.S.* 11,135 $ 1,445
Christian Dior 42,350 5,986
Lagardere Groupe 87,500 2,377
Michelin, Cl B 40,000 2,018
Societe Generale 11,000 1,171
--------
Total France 12,997
--------
GERMANY (3.8%)
Hoechst 3,000 1,003
Mannesmann 3,500 1,217
Siemens 32,000 1,795
Veba 59,600 3,121
Wella 2,000 1,066
--------
Total Germany 8,202
--------
HONG KONG (2.7%)
Cheung Kong Holdings 300,000 2,220
Esprit Asia Holdings 1,066,000 355
HSBC Holdings 142,000 2,147
Swire Pacific, Cl A 125,000 1,111
--------
Total Hong Kong 5,833
--------
INDONESIA (1.3%)
Asahimas Flat Glass 800,000 926
Indorama Synthetic, F 364,500 1,016
Tambang Timah, F 500,000 986
--------
Total Indonesia 2,928
--------
IRELAND (0.2%)
CRH - Dublin 36,661 346
--------
ISRAEL (0.8%)
Comverse Technology* 40,700 1,196
Koor Industries ADR 30,700 553
--------
Total Israel 1,749
--------
60
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
ITALY (2.4%)
Cartiere Burgo 336,000 $ 2,084
Instituto Mobiliare Italiano 130,000 1,063
Saipem 500,000 2,051
--------
Total Italy 5,198
--------
JAPAN (15.2%)
Amway Japan ADR 87,900 2,110
Canon 282,000 5,543
Dai Nippon Printing 177,000 3,282
Fuji Photo Film 108,000 3,365
Mitsubishi Heavy Industries 475,000 4,092
Nippon Television Network 11,000 3,121
Omron 119,000 2,416
Paris Miki 51,700 2,267
Sanyo Shinpan Finance 13,300 911
Sony 95,400 6,077
--------
Total Japan 33,184
--------
MEXICO (4.0%)
Alfa, Cl A 270,000 4,381
Panamerican Beverages, Cl A 103,000 4,326
--------
Total Mexico 8,707
--------
NETHERLANDS (8.6%)
ABN - Amro Holding 46,000 2,537
Dutch State Mines 17,500 1,797
Fortis AMEV 56,000 4,364
Hollandsche Beton Groep 11,000 2,054
IHC Caland 24,200 1,117
International Nederlanden 55,000 4,528
VNU 140,000 2,295
--------
Total Netherlands 18,692
--------
NEW ZEALAND (0.3%)
Fletcher Challenge Building
Division 297,500 604
--------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
PANAMA (1.2%)
Banco Latinamericano
de Exportaciones 44,800 $ 2,570
--------
PERU (1.8%)
Credicorp 102,707 1,900
Telefonica del Peru, Cl B 971,569 1,923
--------
Total Peru 3,823
--------
PHILIPPINES (2.0%)
Benpres Holdings GDR* 519,961 4,290
--------
SOUTH AFRICA (0.7%)
Rembrandt Group 173,000 1,540
--------
SOUTH KOREA (0.6%)
Korea Chemical 10,000 1,253
--------
SPAIN (3.4%)
Repsol 36,000 1,232
Telefonica de Espana 349,000 6,268
--------
Total Spain 7,500
--------
SWEDEN (8.5%)
Avesta Sheffield* 170,200 1,733
Cardo 80,000 1,754
Dahl International* 45,000 616
Ericsson, Cl B 108,100 2,419
Gettinge, Cl B 213,300 3,900
Pharmacia & Upjohn 50,000 2,044
SKF, Cl B 70,000 1,571
Svedala Industrial 236,800 4,541
--------
Total Sweden 18,578
--------
61
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INTERNATIONAL EQUITY FUND--CONCLUDED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
SWITZERLAND (4.0%)
Asea Brown Boveri 1,315 $ 1,575
Ciba - Geigy 2,100 2,314
Sandoz Pharmaceutical 1,300 1,351
SMH 13,700 2,127
Societe Generale de Surveillance 640 1,444
--------
Total Switzerland 8,811
--------
UNITED KINGDOM (9.6%)
Astec 457,000 1,063
Bank of Ireland 301,055 2,128
B.A.T. Industries 520,000 4,184
British Airport Authority 200,000 1,522
CRH - Dublin 139,545 1,330
Grand Metropolitan 205,000 1,382
National Power 150,000 1,212
Orange ADR* 283,000 5,377
Rank Organisation 207,000 1,643
Unilever 55,000 1,023
--------
Total United Kingdom 20,864
--------
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
Total Foreign Common Stocks
(Cost $194,622,776) $208,240
--------
Total Investments (95.7% of Net Assets)
(Cost $194,622,776) $208,240
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
62
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
SUNBELT EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (96.3%)
AEROSPACE & DEFENSE (1.1%)
Tech-Sym * 146,316 $ 4,993
--------
AIR TRANSPORTATION (3.9%)
Atlantic Southeast Airlines 190,960 5,060
Comair 318,408 8,358
Southwest Airlines 139,901 3,830
--------
Total Air Transportation 17,248
--------
BANKS (2.8%)
CCB Financial 64,475 3,353
Eagle Bancshares 78,426 1,314
First Tennessee National 125,577 4,223
Hibernia, Cl A 230,693 2,538
Texas Regional Bancshares, Cl A 43,740 1,072
--------
Total Banks 12,500
--------
BUILDING & CONSTRUCTION (1.0%)
Beazer Homes USA* 89,605 1,534
Centex 89,994 2,711
--------
Total Building & Construction 4,245
--------
BUILDING & CONSTRUCTION SUPPLIES (1.4%)
American Buildings* 111,881 3,440
NCI Building Systems* 78,427 2,686
--------
Total Building & Construction Supplies 6,126
--------
BUILDING-MOBILE HOMES (2.9%)
Clayton Homes 167,943 3,233
Oakwood Homes 65,759 3,189
Palm Harbor Homes* 100,222 2,781
Redman Industries* 175,439 3,838
--------
Total Building-Mobile Homes 13,041
--------
COMMUNICATIONS EQUIPMENT (1.3%)
Glenayre Technologies* 113,833 5,606
--------
COMPUTER SOFTWARE & SERVICES (5.1%)
Harbinger* 102,328 2,456
Landmark Graphics* 148,237 2,779
National Data 115,701 4,368
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES--CONTINUED
Nichols Research* 129,689 $ 4,182
Optical Data Systems* 47,458 1,092
SCB Computer Technology* 82,993 1,743
Sterling Commerce* 64,475 2,829
Sterling Software* 40,622 3,270
--------
Total Computer Software & Services 22,719
--------
ELECTRONICS (0.7%)
SCI Systems* 73,747 3,319
--------
ENVIRONMENTAL SERVICES (1.0%)
USA Waste Services* 147,491 4,351
--------
FINANCE-MORTGAGE (0.6%)
Triad Guaranty* 80,530 2,879
--------
FINANCE-REIT (1.7%)
Equity Inns 259,867 3,086
Felcor Suite Hotels 104,828 3,237
Winston Hotels 115,953 1,333
--------
Total Finance-REIT 7,656
--------
FINANCIAL SERVICES (3.2%)
Capital One Financial 110,620 3,360
Medaphis* 284,812 10,752
--------
Total Financial Services 14,112
--------
FOOD, BEVERAGE & TOBACCO (1.0%)
Tyson Foods 174,961 4,287
--------
HOTELS & LODGING (1.1%)
Promus Hotel* 175,392 4,823
--------
INSURANCE (3.9%)
Compdent* 135,960 6,594
Jefferson-Pilot 65,080 3,343
Provident* 92,296 3,311
United Finance 136,100 4,134
--------
Total Insurance 17,382
--------
63
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
SUNBELT EQUITY FUND--CONTINUED
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
LEISURE (1.1%)
Play By Play Toys & Novelties* 92,182 $ 1,302
Varsity Spirit 209,341 3,506
--------
Total Leisure 4,808
--------
LUMBER & WOOD PRODUCTS (0.6%)
American Homestar* 119,786 2,665
--------
MACHINERY (4.5%)
Agco 92,182 2,777
Blount International 330,327 10,983
Greenfield Industries 116,591 4,401
Roper Industries 40,601 1,908
--------
Total Machinery 20,069
--------
MEASURING DEVICES (3.1%)
Input/Output 344,567 13,912
--------
MEDICAL PRODUCTS & SERVICES (4.7%)
Gulf South Medical Supply* 210,931 10,072
Phycor* 116,439 6,317
Quorum Health Group* 186,951 4,791
--------
Total Medical Products & Services 21,180
--------
METAL PRODUCTS & SERVICES (2.5%)
Citation* 283,174 4,177
Imco Recycling 110,745 2,575
Wolverine Tube* 113,942 4,159
--------
Total Metal Products & Services 10,911
--------
MISCELLANEOUS BUSINESS SERVICES (2.8%)
Norrell 106,725 4,416
PMT Services* 231,008 7,854
--------
Total Miscellaneous Business Services 12,270
--------
MISCELLANEOUS CONSUMER SERVICES (1.9%)
Accustaff* 240 8
Central Parking 85,827 2,661
Service International 101,849 5,691
--------
Total Miscellaneous Consumer Services 8,360
--------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
OIL & GAS-DRILLING (4.2%)
Diamond Offshore Drilling* 120,600 $ 5,774
Ensco International* 107,975 3,280
Global Marine * 383,022 4,692
Sonat Offshore Drilling 92,709 4,914
--------
Total Oil & Gas-Drilling 18,660
--------
OIL & GAS-EXPLORATION (1.9%)
Nuevo Energy* 148,647 4,608
Stone Energy* 214,614 3,997
--------
Total Oil & Gas-Exploration 8,605
--------
OIL & GAS-INTEGRATED (1.6%)
Louisiana Land & Exploration 73,838 3,978
Union Pacific Resources Group 119,934 3,088
--------
Total Oil & Gas-Integrated 7,066
--------
OIL & GAS-MACHINERY & EQUIPMENT (1.8%)
Baker Hughes 70,386 2,208
Tidewater 135,956 5,608
--------
Total Oil & Gas-Machinery &
Equipment 7,816
--------
OIL & GAS-MARKETING (0.9%)
World Fuel Services 230,924 4,128
--------
OIL & GAS-SERVICES (2.6%)
Global Industries* 92,183 2,858
Offshore Logistics* 92,182 1,337
Pride Petroleum Service* 255,444 4,406
Production Operators 79,513 2,902
--------
Total Oil & Gas-Services 11,503
--------
PAPER & PAPER PRODUCTS (2.5%)
Inbrand* 262,435 7,643
Rock Tenn, Cl A 176,973 3,495
--------
Total Paper & Paper Products 11,138
--------
PRINTING & PUBLISHING (0.5%)
Cadmus Communications 144,169 2,379
--------
64
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL (9.0%)
Autozone* 203,852 $ 7,160
Bombay* 253,132 1,962
Books-A-Million* 367,876 4,368
Claire's Stores 222,839 5,571
Discount Auto Parts* 219,123 5,642
Dollar General 161,548 4,483
Food Lion, Cl A 11,187 86
Friedman's, Cl A* 148,271 4,189
Movie Gallery* 139,340 4,250
Sports & Recreation* 222,153 2,110
--------
Total Retail 39,821
--------
RETAIL-RESTAURANT (3.3%)
Brinker International* 184,260 3,086
Cracker Barrel Old Country Stores 127,591 3,381
Longhorn Steaks* 93,233 2,401
Luby's Cafeterias 147,490 3,632
O'Charleys* 112,066 1,401
Sonic* 29,876 717
--------
Total Retail-Restaurant 14,618
--------
SEMI-CONDUCTORS/INSTRUMENTS (0.7%)
AVX 92,123 2,004
Kemet* 53,241 1,185
--------
Total Semi-Conductors/Instruments 3,189
--------
STEEL & STEEL WORKS (0.6%)
Maverick Tube* 204,034 2,678
--------
TELEPHONES &
TELECOMMUNICATION (1.3%)
Harris 52,056 3,364
Premiere Technologies* 37,418 1,768
U.S. Long Distance* 22,407 804
--------
Total Telephones &
Telecommunication 5,936
--------
TRANSPORTATION SERVICES (1.3%)
United Transnet* 222,334 5,642
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TRUCK & PARTS-HEAVY DUTY (1.8%)
Miller Industries* 256,869 $ 8,059
--------
TRUCKING (2.5%)
American Freightways* 458,778 5,849
M.S. Carriers* 46,096 887
MTL* 84,290 1,465
USA Truck* 233,217 2,682
--------
Total Trucking 10,883
--------
WHOLESALE (5.9%)
Barnett* 188,947 4,535
Isolyser* 317,432 4,365
Kent Electronics* 183,645 6,519
Richfood Holdings 129,056 4,323
Serologicals* 63,717 1,657
Watsco 161,176 4,855
--------
Total Wholesale 26,254
--------
Total Common Stocks
(Cost $329,210,358) 427,837
--------
CONVERTIBLE BONDS (3.0%)
Food Lion, Convertible to
126.582 shares (B)
5.000%, 06/01/03 $1,873 1,981
HEALTHSOUTH Rehabilitation,
Convertible to 26.5781 shares
5.000%, 04/01/01 4,413 8,407
Pride Petroleum Services,
Convertible to 81.6327 shares
6.250%, 02/15/06 1,872 2,979
--------
Total Convertible Bonds
(Cost $11,611,272) 13,367
--------
65
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
SUNBELT EQUITY FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.1%)
Swiss Bank 5.27%, dated 05/31/96,
matures 06/03/96, repurchase
price $432,113 (collateralized by
U.S. Treasury Bond, par value
$746,000, 8.75%, 05/15/20:
market value $888,829) 432 $ 432
--------
Total Repurchase Agreement
(Cost $431,924) 432
--------
Total Investments (99.4%)
(Cost $341,253,554) 441,636
--------
OTHER ASSETS AND LIABILITIES (0.6%)
Total Other Assets and Liabilities, Net 2,501
--------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 29,227,841 outstanding shares of
benefical interest 298,601
Fund shares of the Investor Class (unlimited
authorization--no par value) based on
2,078,593 outstanding shares of
beneficial interest 20,386
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 193,565 outstanding shares of
beneficial interest $ 2,386
Accumulated net realized gain on
investments 22,383
Unrealized appreciation on investments 100,381
--------
Total Net Assets (100.0%) $444,137
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 14.11
========
Net Asset Value and Redemption Price
Per Share--Investor Shares $ 13.95
========
Maximum Public Offering Price Per
Share--Investor Shares
($13.95 (DIVIDE) 96.25%) $ 14.49
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 13.97
========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
66
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INVESTMENT GRADE TAX-EXEMPT BOND FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (89.8%)
ARIZONA (2.0%)
Phoenix, GO, Ser A
5.000%, 07/01/19 $1,600 $ 1,400
Phoenix, Ser B Callable
07/01/05 @ 100
5.500%, 07/01/08 2,000 2,005
--------
Total Arizona 3,405
--------
FLORIDA (12.8%)
Dade County, Water & Sewer
Systems, RB (FGIC)
6.250%, 10/01/10 1,000 1,064
Jacksonville, Electric Authority
Revenue, RB, Callable
10/01/00 @ 101.50
6.750%, 10/01/05 1,000 1,085
Okeechobee Correctional Facility,
COP (AMBAC)
5.800%, 03/01/03 1,000 1,041
Palm Beach County, Solid Waste
Resource Recovery Revenue, RB
Callable 12/01/04 @ 100 (MBIA)
6.000%, 12/01/06 1,500 1,575
Reedy Creek, Improvement District
Utility Revenue Ser 1991-1, RB,
Pre-Refunded 10/01/01 @ 101
(MBIA)
6.500%, 10/01/16 3,000 3,274
State Board of Education Capital
Outlay, Ser C, Pre-Refunded
06/01/02 @ 101
6.625%, 06/01/22 3,000 3,304
State Bond Finance Department,
Environmental Department,
Preservation 2000 Project,
Ser A (MBIA)
5.000%, 07/01/03 3,000 2,993
5.000%, 07/01/04 5,000 4,956
Volusia County, Master Lease
Program, COP, Callable
08/01/01 @ 102 (FSA)
6.625%, 08/01/06 2,000 2,210
--------
Total Florida 21,502
--------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
GEORGIA (0.9%)
Downtown Savannah Authority,
Chatham County Detention
Project, Ser A, RB, Pre-Refunded
01/01/99 @ 102
6.400%, 01/01/01 $1,415 $ 1,509
--------
ILLINOIS (2.6%)
Chicago, GO, Callable 07/01/07
@ 100 (AMBAC)
5.900%, 01/01/09 1,680 1,705
Chicago, Motor Fuel Tax Revenue,
RB, Pre-Refunded 01/01/01
@ 102 (AMBAC)
7.100%, 01/01/11 1,500 1,665
Chicago, Wastewater Transmission
Revenue, RB (FGIC)
5.375%, 01/01/13 1,100 1,046
--------
Total Illinois 4,416
--------
IOWA (0.7%)
LeClaire, Electric Authority
Revenue, RB, Mandatory
Put 09/01/96 @ 100
4.125%, 09/01/26 1,185 1,186
--------
LOUISIANA (1.2%)
State Refunding GO, Ser A (FGIC)
6.000%, 08/01/00 2,000 2,085
--------
MARYLAND (3.8%)
Stadium Authority, Sports
Facility, RB
5.300%, 03/01/07 1,205 1,194
5.300%, 03/01/08 1,000 983
5.400%, 03/01/10 1,125 1,098
State Industrial Development
Authority, Bon Secours Health
Systems Project, RB (MBIA)
5.500%, 08/15/20 1,940 1,814
Worcester County, Public
Improvements Project, RB
5.400%, 08/01/11 1,315 1,262
--------
Total Maryland 6,351
--------
67
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INVESTMENT GRADE TAX-EXEMPT BOND FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
MICHIGAN (5.5%)
Detroit, School District, Ser A,
GO (AMBAC)
6.250%, 05/01/06 $1,040 $ 1,106
6.500%, 05/01/07 1,165 1,258
6.500%, 05/01/08 2,305 2,481
6.500%, 05/01/09 2,455 2,642
Underground Storage Tank
Financial Assurance Authority,
Ser I, RB (AMBAC)
5.000%, 05/01/01 1,750 1,757
--------
Total Michigan 9,244
--------
MINNESOTA (14.4%)
Burnsville, Independent School
District #191, Ser A, GO
4.875%, 02/01/13 1,450 1,269
State GO
4.750%, 05/01/00 4,710 4,734
4.750%, 05/01/01 2,430 2,436
5.000%, 08/01/01 4,000 4,055
State RB, Ser A, (AMBAC)
5.000%, 06/30/99 6,445 6,509
5.000%, 06/30/00 5,000 5,031
--------
Total Minnesota 24,034
--------
MISSISSIPPI (1.7%)
State GO, Callable 12/01/04 @ 100
6.400%, 12/01/07 2,595 2,767
--------
MISSOURI (1.4%)
State Environmental Improvements
Energy Resource Authority,
Pollution Control, RB
5.750%, 12/01/02 2,305 2,391
--------
NEW JERSEY (2.1%)
State GO, Ser E
5.000%, 07/15/00 3,475 3,518
--------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
NEW YORK (10.4%)
Battery Park City Authority, RB,
Pre-Refunded 05/01/99 @ 100
6.500%, 05/01/20 $10,000 $ 10,563
State Dorm Authority, State
University Educational Facilities,
RB (FGIC)
5.875%, 05/15/11 2,000 2,060
State GO, Pre-Refunded 03/01/00
@ 102 (AMBAC)
7.100%, 03/01/20 1,650 1,821
State Local Assistance Corporation,
Ser A, RB, Pre-Refunded
04/01/01 @ 102
7.000%, 04/01/16 1,065 1,186
Triborough Bridge & Tunnel
Authority, Ser B, RB
5.000%, 01/01/14 2,000 1,828
--------
Total New York 17,458
--------
OHIO (3.4%)
Cleveland, Waterworks First
Mortgage, Ser F-92 A, RB,
Pre-Refunded 01/01/02
@ 102 (AMBAC)
6.500%, 01/01/21 3,250 3,567
State Building Authority, State
Correctional Facilities, Ser C,
RB, Callable 10/01/1996 @ 102
8.400%, 04/01/97 2,000 2,064
--------
Total Ohio 5,631
--------
OKLAHOMA (2.7%)
State Industrial Authority Health
Systems, Integris Baptist Medical
Center, RB, (AMBAC)
6.000%, 08/15/10 1,000 1,025
Tulsa, Hospital Revenue, RB,
Pre-Refunded 06/01/03 @ 102
7.200%, 06/01/17 3,000 3,439
--------
Total Oklahoma 4,464
--------
68
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO (14.4%)
Commonwealth Highway &
Transportation Authority,
Ser Z, RB (FSA)
6.000%, 07/01/18 $10,500 $ 10,920
Commonwealth Public
Improvements, RB, Pre-Refunded
07/01/02 @ 101.50
6.800%, 07/01/21 7,000 7,805
Commonwealth Unlimited
Tax GO (MBIA)
6.500%, 07/01/07 1,500 1,661
Electric & Power Authority, Ser K, RB,
Pre-Refunded 07/01/97 @ 102
9.250%, 07/01/06 2,500 2,690
Electric Power Authority, Ser W,
RB (MBIA)
6.000%, 07/01/01 1,000 1,049
--------
Total Puerto Rico 24,125
--------
SOUTH CAROLINA (0.7%)
State Public Service Authority, Ser B,
RB, Pre-Refunded 07/01/01 @ 102
7.100%, 07/01/21 1,000 1,120
--------
TEXAS (2.7%)
Alief, Independent School
District, GO (PSFG)
5.000%, 02/15/13 1,025 935
5.000%, 02/15/14 1,025 923
State Unlimited GO, College
Student Loan, Callable
08/01/02 @ 100 (F)
6.200%, 08/01/04 1,420 1,491
Wylie, Independent School
District, GO, Callable
08/15/11 @ 100 (PSFG)
6.900%, 08/15/13 1,100 1,213
--------
Total Texas 4,562
--------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
VIRGINIA (4.6%)
Southeastern Public Service
Authority, Ser A (MBIA)
5.000%, 07/01/07 $5,700 $ 5,493
State Transportation Board,
U.S. Route 58 Corridor
Project, Ser A, RB
5.250%, 05/15/12 2,250 2,129
--------
Total Virginia 7,622
--------
WASHINGTON (1.8%)
Tacoma, Department of Public
Utilities, RB, Callable
07/01/96 @ 102
8.600%, 01/01/97 2,000 2,048
9.000%, 01/01/00 1,000 1,023
--------
Total Washington 3,071
--------
Total Municipal Bonds
(Cost $151,156,212) 150,461
--------
CASH EQUIVALENT (4.5%)
SEI Tax Exempt Trust Institutional
Tax Free Portfolio 7,509 7,509
--------
Total Cash Equivalent
(Cost $7,509,478) 7,509
--------
Total Investments (94.3% of Net Assets)
(Cost $158,665,690) 157,970
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
69
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
FLORIDA TAX-EXEMPT BOND FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (91.2%)
FLORIDA (72.8%)
Brevard County, Health Facilities,
Wuesthoff Memorial Hospital
Project, RB (MBIA)
6.250%, 04/01/06 $ 930 $ 996
Brevard County, School Board,
COP, Ser A (AMBAC)
5.400%, 07/01/12 1,000 963
Dade County, Aviation Revenue,
Ser A, RB, Callable 10/01/05
@ 102 (AMBAC)
6.000%, 10/01/09 500 517
Dade County, Seaport Revenue,
RB (MBIA)
6.200%, 10/01/07 750 801
6.200%, 10/01/08 750 797
Dade County, Water & Sewer
System, RB (FGIC)
6.250%, 10/01/07 755 815
6.250%, 10/01/09 750 803
Deerfield Beach, Water & Sewer
Revenue, RB (FGIC)
6.125%, 10/01/06 250 267
Florida Keys, Aqueduct Authority
Revenue, RB, Pre-Refunded
09/01/01 @ 101 (AMBAC)
6.750%, 09/01/21 170 187
Gainesville Utility Systems,
Ser A, RB
5.750%, 10/01/09 500 511
Gulf Breeze, Local Government
Lien, Ser B, RB, Mandatory
Tender 12/01/08 (FGIC)
5.650%, 12/01/15 460 466
Gulf Breeze, Local Government
Lien, Ser B, RB, Mandatory
Tender 12/01/09 (FGIC)
5.750%, 12/01/15 410 416
Hillsborough County, Capital
Improvement Revenue,
RB (FGIC)
5.900%, 08/01/04 300 320
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Hillsborough County, School
Board Revenue, COP, Callable
07/01/06 @ 100 (MBIA)
5.875%, 07/01/08 $1,000 $ 1,025
Hillsborough County, Tampa
Port Authority, RB, ETM,
Callable 06/01/05 @ 102
(FSA) (F)
5.600%, 06/01/07 500 500
Hillsborough County, University
Community Hospital,
RB (MBIA)
6.500%, 08/15/19 145 156
Indian Trace Community, Water
Management Split Benefit,
Ser A-1, RB, Callable 05/01/05
@ 102 (MBIA)
5.500%, 05/01/07 455 458
Jacksonville, Water & Sewer
Revenue, RB, Callable
10/01/06 @ 102 (MBIA)
5.125%, 10/01/15 500 454
Key West, Sewer Revenue, Ser A,
RB, Pre-Refunded 10/01/96
@ 103 (FGIC)
7.125%, 10/01/26 500 520
Lakeland, Electric & Water
Revenue, RB
6.650%, 10/01/98 100 105
Lakeland, Hospital Systems,
Lakeland Regional Medical
Center Project, RB Callable
11/15/06 @ 102 (MBIA)
5.000%, 11/15/11 1,570 1,444
Miami, Health Facilities, Mercy
Hospital Project, Ser A,
RB Callable 8/15/04 @ 102 (AMBAC)
5.125%, 08/15/20 1,700 1,500
North Broward, Hospital District
Revenue, RB (MBIA)
5.950%, 01/01/01 1,000 1,045
70
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Orange County, Health
Facilities Authority,
Pre-Refunded Municipal
Certificates, RB, ETM
5.700%, 10/01/12 $ 500 $ 504
Orange County, Public Facilities
Revenue, Ser A, RB, Callable
10/01/04 @ 102 (AMBAC)
5.650%, 10/01/07 200 204
Orlando, Community Water &
Electric Revenue, RB, ETM
9.625%, 10/01/03 450 578
Orlando, Community Water &
Electric Revenue, Ser D, RB
6.750%, 10/01/17 500 563
Orlando, Parking Facilities
Revenue, Ser A, RB Callable
10/01/04 @ 101 (FGIC)
5.000%, 10/01/12 1,000 911
Palm Beach, Health Facilities
Revenue, JFK Medical Center
Project, RB, Pre-Refunded
12/01/03 @ 102 (FSA)
5.750%, 12/01/14 365 389
Pinellas County, Morton Plant
Health Systems Project, RB,
Callable 11/15/03 @ 102
(MBIA)
5.500%, 11/15/08 1,500 1,494
Plant City, Utility System
Revenue, RB, Callable
10/01/04 @ 101 (MBIA)
6.000%, 10/01/15 400 410
Reedy Creek, Utility Revenue,
Ser 1991-1, RB, Pre-Refunded
10/01/01 @ 101 (MBIA)
6.250%, 10/01/11 240 259
Sarasota, Sarasota-Manatee
Airport Authority, Ser B,
Callable 08/01/96 @ 102
7.700%, 08/01/06 200 205
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
South Miami, Health Facilities
Revenue, Baptist Health
Systems, RB, Callable
10/01/05 @ 102 (MBIA)
5.250%, 10/01/09 $1,000 $ 963
State Board of Education
Capital Outlay, RB
6.600%, 06/01/98 125 130
State Board of Education
Capital Outlay, Ser B, GO,
Callable 06/01/02 @ 101
5.900%, 06/01/12 450 452
State Board of Education
Capital Outlay, Ser B, RB,
Callable 06/01/02 @ 101
6.000%, 06/01/15 170 171
State Board of Education, Public
Education Administration
Cap, Ser B, GO Pre-Refunded
06/01/97 @ 102
7.750%, 06/01/16 425 450
State Board of Education, Ser C,
GO, ETM, Pre-Refunded
06/01/97 @ 102
7.100%, 07/01/07 190 196
State Board of Education,
Ser E, GO, Callable
06/01/05 @ 101
5.000%, 06/01/20 2,000 1,750
State Board of Finance
Department, General Services
Revenue, Preservation 2000
Project, Ser A, RB (AMBAC)
5.300%, 07/01/04 460 466
State Department of Natural
Resources, Preservation 2000
Project, Ser A, RB,
Callable 07/01/01 @ 102 (AMBAC)
6.750%, 07/01/06 80 88
State Pollution Control, Ser N,
GO, Callable 07/01/96 @ 102
8.000%, 07/01/97 420 427
71
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
FLORIDA TAX-EXEMPT BOND FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
State Transportation Authority,
GO, Pre-Refunded 07/01/00
@ 102
7.375%, 07/01/11 $ 100 $ 112
State Turnpike Authority Revenue,
Ser A, RB, Callable 07/01/03
@ 101 (FGIC)
5.000%, 07/01/16 500 444
State Turnpike Authority, Ser A,
RB, Pre-Refunded 07/01/02
@ 101 (FGIC)
6.350%, 07/01/22 970 1,056
-------
Total Florida 27,288
-------
PUERTO RICO (18.4%)
Commonwealth, GO (MBIA)
4.500%, 07/01/03 2,100 2,061
Commonwealth, GO,
Pre-Refunded 07/01/98 @ 102
8.000%, 07/01/06 500 546
Commonwealth, Highway &
Transportation Authority,
Ser Y, RB (FSA)
5.000%, 07/01/16 750 678
Commonwealth, Highway &
Transportation Authority,
Ser Z, RB (MBIA)
6.250%, 07/01/14 2,000 2,140
Electric Power Authority
Revenue, Ser S, RB
5.500%, 07/01/00 200 206
Public Buildings Authority
Revenue, Guaranteed
Government Facilities, Ser A,
RB (AMBAC)
6.250%, 07/01/14 750 798
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Public Buildings Authority
Revenue, Public Education
& Health Facilities, RB
5.300%, 07/01/03 $ 475 $ 479
-------
Total Puerto Rico 6,908
-------
Total Municipal Bonds
(Cost $34,552,846) 34,196
-------
CASH EQUIVALENTS (3.8%)
AIM Management Institutional
Tax-Free Portfolio 1,352 1,352
SEI Tax-Exempt
Trust Institutional Tax-Free
Portfolio 102 102
-------
Total Cash Equivalents
(Cost $1,454,437) 1,454
-------
Total Investments (95.0% of Net Assets)
(Cost $36,007,283) 35,650
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
72
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
TENNESSEE TAX-EXEMPT BOND FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (98.0%)
TENNESSEE (74.7%)
Chattanooga, Health Facilities
Board, Memorial Hospital
Project, Ser A, RB (MBIA)
6.300%, 09/01/05 $ 20 $ 21
Chattanooga, GO, Callable
08/01/02 @ 102
5.900%, 08/01/05 50 52
Chattanooga-Hamilton County,
Erlanger Medical Center Project,
RB (FSA)
5.600%, 10/01/08 50 50
Hamilton County, GO, Callable
07/01/04 @ 102
5.500%, 07/01/08 100 100
Harpeth Valley, Utility District
Revenue, RB, Callable
09/01/03 @ 102
5.625%, 09/01/07 100 100
Jackson, Water & Sewer Utilities
Revenue, RB, Callable 07/01/06
@ 100 (AMBAC)
5.250%, 07/01/11 200 190
Johnson City, Water & Sewer
Regulation System, GO, Callable
05/01/06 @ 100 (AMBAC)
5.800%, 05/01/09 100 101
Kingsport, GO
5.500%, 09/01/02 50 52
Knox County, First Utility District
Sewer Revenue, RB, ETM
7.250%, 12/01/05 55 64
Knox County, Health Facilities
Board, Mercy Health Systems,
Ser B, RB, Callable 09/01/05
@ 100 (AMBAC)
5.875%, 09/01/15 50 50
Knoxville, Natural Gas Revenue,
Ser E, Callable 03/01/03 @ 100
5.900%, 03/01/10 100 100
Madison County, Ser A, GO,
Callable 08/01/01 @ 102
6.000%, 08/01/05 40 41
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Madison County, Water Revenue,
RB, Callable 02/01/08 @ (MBIA)
5.500%, 02/01/09 $250 $ 244
Memphis-Shelby County, Airport
Authority, RB, Callable 09/01/05
@ 100 (MBIA)
5.550%, 09/01/08 50 50
Memphis-Shelby County, Airport
Authority, Ser B, RB (MBIA) (F)
6.500%, 02/15/09 85 90
Metro Government, Nashville &
Davidson County, Electric System
Revenue, RB
5.625%, 05/15/14 200 194
Metro Government, Nashville &
Davidson County, Water & Sewer
Revenue, RB, ETM
6.500%, 12/01/14 225 242
Metro Government, Nashville &
Davidson County, Convention
Center Project, GO, ETM
6.250%, 03/01/10 200 214
Metro Government, Nashville &
Davidson County, Electric
Revenue, RB, ETM
6.000%, 07/01/04 100 107
Metro Government, Nashville &
Davidson County, Correctional
Facility Impovements, RB,
Callable 09/01/01 @ 102
7.000%, 09/01/11 100 108
Metro Government, Nashville &
Davidson County, Water &
Sewer, RB, Callable 01/01/04
@ 100 (AMBAC)
5.900%, 01/01/07 100 103
Metro Government, Nashville &
Davidson County, Vanderbilt
University Hospital, RB, ETM,
Callable 07/01/06 @ 100
6.100%, 07/01/10 100 107
Metro Government, Nashville &
Davidson County, Vanderbilt
University, Ser A, RB
5.500%, 01/01/06 125 126
73
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
TENNESSEE TAX-EXEMPT BOND FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- -------------------------------------------------------------------------------
TENNESSEE --CONTINUED
Shelby County, GO
5.100%, 03/01/13 $300 $ 281
Shelby County, School Boards,
GO, Callable 03/01/02 @ 101
5.800%, 03/01/10 300 301
Shelby County, Ser A, GO
5.500%, 03/01/10 300 293
Sullivan County, Health Facilities
Board, Holston Valley Health,
RB, Callable 02/15/05
@ 100 (MBIA)
5.750%, 02/15/13 50 49
State GO, Ser C
5.000%, 03/01/04 100 100
State GO, Ser A, Callable
03/01/07 @ 100
5.500%, 03/01/09 50 50
State Local Development Authority,
State Loan Program, Ser A, RB,
Callable 03/01/04 @ 100
7.000%, 03/01/12 50 54
State Metropolitan Nashville Airport,
Ser B, RB, Pre-Refunded 07/01/01
@ 102 (FGIC)
7.750%, 07/01/06 100 115
State Housing Development Agency,
Ser A, RB (AMBAC)
6.550%, 01/01/08 50 52
State School Board Authority, Higher
Education Facilities, Ser A, RB,
Callable 05/01/02 @ 101.5
5.800%, 05/01/04 150 155
Williamson County, Rural School,
GO, Callable 09/01/06 @ 100
5.400%, 09/01/07 50 49
------
Total Tennessee 4,005
------
PUERTO RICO (23.3%)
Commonwealth, GO, Pre-Refunded
07/01/98 @ 102
8.000%, 07/01/06 500 547
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Commonwealth, GO, Callable
07/01/05 @ 100 (MBIA)
5.500%, 07/01/13 $175 $ 170
Commonwealth, Highway &
Transportation Authority,
Ser Z, RB (MBIA)
6.250%, 07/01/15 500 533
------
Total Puerto Rico 1,250
------
Total Municipal Bonds
(Cost $5,287,821) 5,255
------
CASH EQUIVALENT (0.7%)
SEI Tax-Exempt Trust
Institutional Tax-Free Portfolio 36 36
------
Total Cash Equivalent
(Cost $36,106) 36
------
Total Investments (98.7%)
(Cost $5,323,927) 5,291
------
OTHER ASSETS AND LIABILITIES, NET (1.3%)
Total Other Assets and Liabilities, Net 72
------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 193,781 outstanding shares of
benefical interest 1,813
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 161,737outstanding shares of
beneficial interest 1,528
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 214,422 outstanding shares of
beneficial interest 2,056
Accumulated net realized loss on investments (1)
Unrealized depreciation on investments (33)
------
Total Net Assets (100.0%) $5,363
======
74
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS--CONTINUED:
Net Asset Value, Offering Price and Redemption
Price Per Share--Trust Shares $ 9.40
======
Net Asset Value Redemption Price
Per Share--Investor Shares $ 9.42
======
Maximum Public Offering Price Per Share--
Investor Shares ($9.42 (DIVIDE) 96.25%) $ 9.79
======
Net Asset Value, Offering Price and Redemption
Price Per Share--Flex Shares (1) $ 9.41
======
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
75
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
GEORGIA TAX-EXEMPT BOND FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (93.0%)
GEORGIA (93.0%)
Albany-Dougherty County, Georgia
Hospital Authority, Ser B,
Anticipation Cerificate,
Pre-Refunded 09/01/00 @ 102
(AMBAC)
7.500%, 09/01/20 $ 255 $ 287
Athens, Water & Sewer Revenue,
RB (ETM)
5.700%, 07/01/00 165 172
Atlanta, Airport Facilities Revenue,
Callable Anytime @ 100 (AMBAC)
6.300%, 01/01/07 500 501
Augusta, Water & Sewer Revenue,
RB, Callable 05/01/02 @ 102
6.200%, 05/01/03 130 138
Bibb County, GO
7.000%, 01/01/04 985 1,102
Cherokee County, School District,
GO, Callable 06/01/02 @ 102
6.375%, 06/01/07 605 645
Clayton County, Water & Sewer
Authority, RB (AMBAC)
5.350%, 05/01/09 1,500 1,463
Cobb County & Marietta, Coliseum &
Exhibit Hall Authority, RB (MBIA)
5.500%, 10/01/12 940 920
Cobb County & Marietta, Water
Authority, RB
5.100%, 11/01/04 1,000 1,003
Cobb County, GO
5.000%, 02/01/03 1,025 1,025
Columbus, Water & Sewer, RB (FGIC)
6.300%, 05/01/07 300 318
Dalton-Whitfield County, Hospital
Authority, RB, Pre-Refunded
07/01/00 @ 102
7.000%, 07/01/03 355 391
DeKalb County, Development
Authority, Emory University
Project, RB
5.375%, 11/01/05 650 657
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
DeKalb County, Development Authority,
Emory University Project, Ser A, RB
5.200%, 11/01/08 $ 500 $ 485
DeKalb County, RB, Pre-Refunded
01/01/02 @ 102
6.350%, 01/01/05 510 555
DeKalb County, School District,
Ser A, GO
6.250%, 07/01/11 1,250 1,345
DeKalb County, Water & Sewer
Authority, RB, Callable
10/01/03 @ 102
5.125%, 10/01/14 1,455 1,309
East Point Building Authority, RB
(AMBAC)
4.800%, 02/01/07 535 506
Fayette County, School District, GO
6.250%, 03/01/07 450 487
Fayette County, Water Authority,
RB (MBIA) (ETM)
8.550%, 10/01/01 300 352
Forsyth County, GO
6.500%, 07/01/06 1,000 1,097
Fulton County, Hospital Authority,
Northside Hospital Project, Ser B,
RB, Pre-Refunded 10/01/02
@ 102 (MBIA)
6.625%, 10/01/16 575 638
6.600%, 10/01/11 1,250 1,386
Gwinnett County, Recreation
Authority, RB
5.875%, 02/01/07 1,390 1,442
Gwinnett County, School District,
Ser B
6.400%, 02/01/07 1,000 1,087
Hall County, GO
6.300%, 12/01/05 675 728
Henry County, School District,
Ser B, GO (MBIA)
5.500%, 08/01/01 350 361
Henry County, School District,
Ser A, GO
6.150%, 08/01/06 150 159
76
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
GEORGIA--CONTINUED
Henry County, GO
6.300%, 08/01/08 $ 300 $ 321
Henry County, Water & Sewer
Authority, GO
4.700%, 02/01/04 120 116
Housing Authority, Single Family
Mortgage, Ser B, Sub-series B-1, RB
5.550%, 12/01/07 550 553
Medical Center Hospital Authority,
Columbus Regional Healthcare
System, RB
6.000%, 08/01/06 1,000 1,049
Metrpolitan Atlanta Rapid Transit
Authority, Sinking Fund
07/01/08 @ 100
7.000%, 07/01/11 875 973
Paulding County, School District,
Ser A
6.625%, 02/01/08 500 553
Private Colleges & Universities
Facilities Authority, Emory
University Project, Ser C, RB,
Callable 10/01/02 @ 102
5.900%, 10/01/04 305 320
Private Colleges & Universities
Facilities Authority, Spelman
College Project, RB (FGIC)
6.000%, 06/01/09 475 487
Rockdale County, School District, RB,
Pre-Refunded 01/01/99 @ 102
6.400%, 01/01/05 150 160
Savannah, Water & Sewer
Revenue, RB
6.450%, 12/01/04 1,000 1,099
State GO, Ser B, Pre-Refunded
07/01/99 @ 102
6.800%, 07/01/06 460 498
State GO, Ser C
6.500%, 04/01/08 1,000 1,107
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Vidalia, Water & Sewer Revenue,
RB (ETM)
6.000%, 07/01/07 $ 605 $ 642
-------
Total Georgia 28,437
-------
Total Municipal Bonds
(Cost $29,017,611) 28,437
-------
CASH EQUIVALENTS (5.5%)
AIM Management Institutional
Tax-Free Portfolio 424 424
SEI Tax-Exempt Trust
Institutional Tax-Free Portfolio 1,241 1,241
-------
Total Cash Equivalents
(Cost $1,664,716) 1,665
-------
Total Investments (98.5%)
(Cost $30,682,327) 30,102
-------
OTHER ASSETS AND LIABILITIES (1.5%)
Total Other Assets and Liabilities, Net 473
-------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 2,400,749 outstanding shares of
benefical interest 23,200
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 356,968 outstanding shares of
beneficial interest 3,478
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 440,098 outstanding shares of
beneficial interest 4,281
77
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
GEORGIA TAX-EXEMPT BOND FUND--CONCLUDED
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS--CONTINUED:
Accumulated net realized gain on
investments $ 196
Unrealized depreciation on investments (580)
-------
Total Net Assets (100.0%) $30,575
=======
Net Asset Value, Offering Price and
Redemption Price Per Share--Trust Shares $ 9.56
=======
Net Asset Value and Redemption Price
Per Share--Investor Shares $ 9.58
=======
Maximum Public Offering Price Per Share--
Investor Shares ($9.58 (DIVIDE) 96.25%) $ 9.95
=======
Net Asset Value, Offering Price and Redemption
Price Per Share--Flex Shares (1) $ 9.56
=======
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
78
<PAGE>
================================================================================
INVESTMENT GRADE BOND FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (52.0%)
U.S. Treasury Bonds
7.500%, 11/15/16 $65,000 $ 67,310
8.125%, 08/15/19 37,500 41,444
U.S. Treasury Notes
5.625%, 01/31/98 16,000 15,860
7.500%, 10/31/99 27,600 28,379
6.250%, 08/31/00 56,000 55,201
7.500%, 11/15/01 11,000 11,394
7.500%, 05/15/02 50,500 52,471
5.750%, 08/15/03 64,500 60,716
--------
Total U.S. Treasury Obligations
(Cost $340,493,441) 332,775
--------
CORPORATE OBLIGATIONS (29.0%)
Aristar Financial
7.500%, 07/01/99 11,000 11,157
Associates of North America, MTN
8.470%, 01/12/00 6,000 6,316
AT&T Capital
5.500%, 02/09/98 14,000 13,786
Capital One Bank
6.660%, 08/17/98 7,000 6,956
Capital One Bank, MTN
6.490%, 08/15/97 19,850 19,800
Ford Motor Credit, MTN
6.110%, 12/28/01 13,000 12,383
General Electric Capital
6.660%, 05/01/18 21,000 20,737
International Lease Finance, MTN
8.125%, 01/15/98 15,000 15,346
Merrill Lynch
7.375%, 05/15/06 23,000 22,713
Paine Webber
6.250%, 06/15/98 5,500 5,409
Salomon
6.700%, 12/01/98 20,000 19,874
Sears, MTN
7.360%, 08/15/97 15,000 15,187
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Societe Generale, New York
7.400%, 06/01/06 $16,500 $ 16,335
--------
Total Corporate Obligations
(Cost $187,719,112) 185,999
--------
U.S. GOVERNMENT AGENCY
OBLIGATIONS (15.9%)
FHLMC
8.000%, 06/01/02 10,232 10,484
FNMA
8.500%, 04/01/17 18,099 18,484
GNMA
9.000%, 11/15/17 34,172 36,255
6.500%, 12/15/23 39,335 36,397
--------
Total U.S. Government Agency Obligations
(Cost $102,434,144) 101,620
--------
ASSET-BACKED SECURITIES (0.1%)
Merrill Lynch, Ser 1993-1, A2
5.125%, 07/15/98 394 394
--------
Total Asset-Backed Securities
(Cost $394,377) 394
--------
REPURCHASE AGREEMENT (4.5%)
Deutsche Bank
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$28,939,456 (collateralized by
various U.S. Treasury obligations,
total par value $53,881,000,
0.00%-9.125%, 08/22/96-
08/15/20: total market
value $29,506,244) 28,927 28,927
--------
Total Repurchase Agreement
(Cost $28,926,752) 28,927
--------
Total Investments (101.5%)
(Cost $659,967,826) 649,715
--------
79
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
INVESTMENT GRADE BOND FUND--CONCLUDED
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-1.5%)
Total Other Assets and Liabilities, Net $ (9,425)
--------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 59,555,941 outstanding shares of
benefical interest 615,859
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 3,592,421 outstanding shares of
beneficial interest 37,624
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 458,624 outstanding shares of
beneficial interest 4,759
Undistributed net investment income 157
Accumulated net realized loss
on investments (7,856)
Unrealized depreciation on investments (10,253)
--------
Total Net Assets (100.0%) $640,290
========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Asset Value, Offering Price and Redemption
Price Per Share--Trust Shares $ 10.07
========
Net Asset Value and Redemption
Price Per Share--Investor Shares $ 10.06
========
Maximum Public Offering Price Per
Share--Investor Shares
($10.06 (DIVIDE) 96.25%) $ 10.45
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 10.07
========
1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
80
<PAGE>
================================================================================
SHORT-TERM BOND FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (57.5%)
U.S. Treasury Bond
6.125%, 05/15/98 $ 2,000 $ 1,996
U.S. Treasury Notes
6.000%, 08/31/97 3,750 3,749
7.250%, 02/15/98 7,500 7,622
4.750%, 09/30/98 10,000 9,668
4.750%, 10/31/98 9,000 8,684
5.500%, 02/28/99 18,000 17,588
7.500%, 11/15/01 5,000 5,179
-------
Total U.S. Treasury Obligations
(Cost $55,153,402) 54,486
-------
CORPORATE OBLIGATIONS (27.5%)
Associates of North America
5.790%, 01/19/01 750 714
Associates of North America, MTN
5.980%, 12/19/00 1,250 1,200
Chrysler Financial
6.440%, 06/23/99 1,000 989
Dow Capital BV
5.750%, 09/15/97 1,250 1,247
Federal Express
6.250%, 04/15/98 750 743
Ford Motor Credit
6.250%, 11/08/00 1,500 1,453
General Electric Capital Callable &
Putable 4/14/98 @ 100 (C)(D)
6.650%, 04/14/08 2,000 2,005
General Motors Acceptance
8.170%, 01/02/00 1,672 1,715
Household Netherlands BV
6.125%, 03/01/03 2,035 1,915
International Lease Finance
5.625%, 03/01/98 1,000 985
6.125%, 11/01/99 1,500 1,464
Norwest
6.125%, 10/15/00 1,000 965
NYNEX Credit, MTN
6.900%, 06/15/99 2,000 2,005
Pacific
5.880%, 10/15/97 1,000 993
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
Philip Morris
9.000%, 05/15/98 $ 1,500 $ 1,564
Puget Sound Power & Light, MTN
7.875%, 10/01/97 1,250 1,275
RJR Nabisco
8.300%, 04/15/99 1,000 1,033
Sears Roebuck Acceptance, MTN
6.300%, 10/18/00 1,250 1,209
6.150%, 11/15/05 750 722
Tenneco Credit
10.000%, 08/01/98 1,750 1,864
-------
Total Corporate Obligations
(Cost $26,548,543) 26,060
-------
U.S. AGENCY MORTGAGE-BACKED
OBLIGATIONS (5.2%)
FHLMC
6.500%, 04/01/98 1,135 1,125
8.000%, 01/01/00 1,318 1,325
FNMA
8.500%, 11/01/01 2,395 2,456
-------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $4,962,568) 4,906
-------
ASSET-BACKED SECURITIES (4.6%)
Premier Auto Trust Series,
Ser 1995-3, Cl A4
6.100%, 07/06/99 3,000 2,997
Union Pacific Equipment Trust
7.060%, 05/15/03 1,500 1,479
-------
Total Asset-Backed Securities
(Cost $4,520,923) 4,476
-------
CERTIFICATE OF DEPOSIT (1.5%)
Wachovia Bank
5.400%, 02/20/01 1,500 1,404
-------
Total Certificate of Deposit
(Cost $1,474,542) 1,404
-------
81
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
SHORT-TERM BOND FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT (2.7%)
SEI Daily Income Trust Prime
Obligation Portfolio $2,584 $ 2,584
-------
Total Cash Equivalent
(Cost $2,583,673) 2,584
-------
Total Investments (99.0%)
(Cost $95,243,651) 93,916
-------
OTHER ASSETS AND LIABILITIES (1.0%)
Total Other Assets and Liabilities, Net 906
-------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 9,240,587 outstanding shares of
benefical interest 91,971
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 273,195 outstanding shares of
beneficial interest 2,729
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 97,806 outstanding shares of
beneficial interest 983
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
Undistributed net investment income $ 90
Accumulated net realized gain on
investments 377
Unrealized depreciation on investments (1,328)
-------
Total Net Assets (100.0%) $94,822
=======
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 9.86
=======
Net Asset Value and Redemption Price
Per Share--Investor Shares $ 9.88
=======
Maximum Public Offering Price Per
Share--Investor Shares
($9.88 (DIVIDE) 98.00%) $ 10.08
=======
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 9.88
=======
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
82
<PAGE>
================================================================================
SHORT-TERM U.S. TREASURY SECURITIES FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (93.1%)
U.S. Treasury Bond
6.125%, 05/15/98 $2,250 $ 2,245
U.S. Treasury Notes
7.500%, 01/31/97 300 303
6.375%, 06/30/97 2,000 2,010
6.000%, 08/31/97 2,650 2,649
7.250%, 02/15/98 900 915
5.125%, 06/30/98 2,250 2,201
5.875%, 08/15/98 1,400 1,388
5.500%, 11/15/98 1,600 1,569
5.000%, 01/31/99 1,900 1,836
6.375%, 05/15/99 500 499
-------
Total U.S. Treasury Obligations
(Cost $15,734,275) 15,615
-------
CASH EQUIVALENT (3.0%)
SEI Daily Income Trust Treasury II
Portfolio 501 501
-------
Total Cash Equivalent
(Cost $500,598) 501
-------
Total Investments (96.1%)
(Cost $16,234,873) 16,116
-------
OTHER ASSETS AND LIABILITIES (3.9%)
Total Other Assets and Liabilities, Net 648
-------
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 1,031,587 outstanding shares of
benefical interest $10,430
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 426,165 outstanding shares of
beneficial interest 4,283
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 245,766 outstanding shares of
beneficial interest 2,454
Undistributed net investment income 52
Accumulated net realized loss on
investments (337)
Unrealized depreciation on investments (118)
-------
Total Net Assets (100.0%) $16,764
=======
Net Asset Value, Offering Price and Redemption
Price Per Share--Trust Shares $ 9.84
=======
Net Asset Value and Redemption Price
Per Share--Investor Shares $ 9.84
=======
Maximum Public Offering Price Per
Share--Investor Shares
($9.84 (DIVIDE) 99.00%) $ 9.94
=======
Net Asset Value, Offering Price and
Redemption Price Per Share--
Flex Shares (1) $ 9.82
=======
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
83
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (37.6%)
U.S. Treasury Notes
8.750%, 10/15/97 $ 600 $ 621
8.125%, 02/15/98 5,800 5,976
8.875%, 11/15/98 1,600 1,689
8.875%, 02/15/99 4,300 4,557
9.125%, 05/15/99 4,200 4,495
7.125%, 09/30/99 2,200 2,238
7.500%, 10/31/99 4,300 4,421
7.125%, 02/29/00 3,960 4,027
6.125%, 07/31/00 1,000 981
-------
Total U.S. Treasury Obligations
(Cost $29,422,934) 29,005
-------
U.S. GOVERNMENT AGENCY
OBLIGATIONS (59.1%)
FHLMC
6.830%, 09/29/97 3,000 3,038
6.000%, 07/01/00 5,315 5,103
8.000%, 06/01/02 1,461 1,498
7.000%, 10/01/02 4,736 4,716
8.000%, 12/01/02 4,053 4,121
FHLMC REMIC, Ser 1637-E
5.750%, 02/15/19 2,699 2,605
FNMA
8.500%, 04/01/17 1,357 1,386
FNMA REMIC, Ser 92-68J
7.500%, 10/25/05 4,200 4,227
FNMA REMIC, Ser 93-95PC
5.500%, 12/25/05 7,000 6,861
FNMA REMIC, Ser G96-1PC
7.000%, 05/01/26 4,921 4,922
FNMA REMIC, Ser 1992-134G
6.000%, 11/25/18 5,586 5,372
GNMA
9.000%, 11/15/17 1,666 1,768
-------
Total U.S. Government Agency Obligations
(Cost $45,647,939) 45,617
-------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT (0.7%)
SEI Liquid Asset Trust Prime
Obligation Portfolio $ 548 $ 548
-------
Total Cash Equivalent
(Cost $548,340) 548
-------
REPURCHASE AGREEMENT (7.4%)
J.P. Morgan
5.24%, dated 05/31/96, matures
06/03/96, repurchase price
$5,760,404 (collateralized by
various FNMA obligations,
total par value $6,210,000,
6.00%-7.00%, 05/01/11: total
market value $5,874,449) 5,758 5,758
-------
Total Repurchase Agreement
(Cost $5,757,890) 5,758
-------
Total Investments (104.8%)
(Cost $81,377,103) 80,928
-------
OTHER ASSETS AND LIABILITIES, NET (-4.8%)
Investment Securities Purchased Payable (4,924)
Other Assets and Liabilities,Net 1,227
-------
Total Other Assets and Liabilities,Net (3,697)
-------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 7,347,381 outstanding shares of
benefical interest 73,656
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 251,847 outstanding shares of
beneficial interest 2,534
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 135,071 outstanding shares of
beneficial interest 1,369
Accumulated net investment loss (2)
84
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS--CONTINUED:
Accumulated net realized gain on
investments $ 122
Unrealized depreciation on investments (448)
-------
Total Net Assets (100.0%) $77,231
=======
Net Asset Value, Offering Price and Redemption
Price Per Share--Trust Shares $ 9.99
=======
Net Asset Value and Redemption
Price Per Share--Investor Shares $ 9.97
=======
Maximum Public Offering Price Per Share--
Investor Shares ($9.97 (DIVIDE) 97.50%) $ 10.23
=======
Net Asset Value, Offering Price and Redemption
Price Per Share--Flex Shares (1) $ 9.99
=======
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
85
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (37.5%)
U.S. Treasury Bond
6.875%, 08/15/25 $1,000 $ 976
U.S. Treasury Notes
8.500%, 04/15/97 100 102
7.875%, 04/15/98 150 154
7.125%, 10/15/98 500 509
7.750%, 11/30/99 200 207
8.500%, 11/15/00 1,000 1,071
7.750%, 02/15/01 100 104
8.000%, 05/15/01 200 211
7.500%, 11/15/01 600 621
7.500%, 05/15/02 100 104
7.875%, 11/15/04 275 292
7.500%, 02/15/05 1,000 1,041
7.625%, 02/15/25 400 425
------
Total U.S. Treasury Obligations
(Cost $5,992,435) 5,817
------
U.S. AGENCY MORTGAGE-BACKED
OBLIGATIONS (54.9%)
FHLMC
7.000%, 01/01/09 153 151
7.000%, 04/01/09 511 503
7.000%, 04/01/09 164 162
FHLMC CMO
7.000%, 08/01/10 1,004 986
FNMA REMIC, Ser G93-40, Cl VC
6.500%, 08/25/10 261 242
FNMA, Ser 1990-143, Cl J
8.750%, 12/25/20 140 146
GNMA
7.500%, 10/20/09 83 83
8.250%, 01/15/12 123 127
7.000%, 11/15/22 436 415
8.000%, 02/15/23 42 43
8.500%, 03/15/23 91 93
7.500%, 04/15/23 146 143
7.500%, 05/20/23 1,000 948
7.500%, 09/15/23 922 903
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------------------------
7.000%, 01/15/24 $ 179 $ 171
7.500%, 04/15/24 958 939
7.000%, 06/15/24 953 908
8.000%, 08/15/24 120 122
8.000%, 09/15/24 29 29
8.000%, 10/15/24 38 39
8.000%, 11/15/24 42 43
8.500%, 12/15/24 78 80
8.500%, 02/15/25 41 42
7.000%, 12/15/25 495 472
7.000%, 12/20/25 248 235
7.000%, 03/15/26 509 485
-------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $8,763,727) 8,510
-------
CASH EQUIVALENTS (7.5%)
SEI Daily Income Trust
Government II Portfolio 730 730
SEI Daily Income Trust
Treasury II Portfolio 431 431
-------
Total Cash Equivalents
(Cost $1,160,595) 1,161
-------
Total Investments (99.9%)
(Cost $15,916,757) 15,488
-------
OTHER ASSETS AND LIABILITIES (0.1%)
Total Other Assets and Liabilities, Net 11
-------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 1,037,259 outstanding shares of
benefical interest 10,588
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 241,893 outstanding shares of
beneficial interest 2,453
86
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
MARKET
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS--CONTINUED:
Fund shares of the Flex Class (unlimited
authorization--no par value) based
on 285,283 outstanding shares of
beneficial interest $ 2,930
Accumulated net realized loss on
investments (44)
Unrealized depreciation on investments (428)
-------
Total Net Assets (100.0%) $15,499
=======
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 9.91
=======
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share--Investor Shares $ 9.90
=======
Maximum Public Offering Price Per Share--
Investor Shares ($9.90 (DIVIDE) 96.25%) $ 10.29
=======
Net Asset Value, Offering Price and Redemption
Price Per Share--Flex Shares (1) $ 9.91
=======
(1)The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
87
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
PRIME QUALITY MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (55.0%)
Arco Coal Australia
5.310%, 07/10/96 $20,429 $ 20,312
Associates of North America
5.300%, 06/17/96 35,000 34,918
AT&T
5.300%, 06/27/96 1,300 1,295
5.300%, 08/05/96 2,700 2,674
Banc One Funding
5.310%, 06/11/96 28,951 28,908
5.310%, 06/14/96 7,419 7,405
5.320%, 07/10/96 8,703 8,653
Bankers Trust (C)
5.550%, 02/14/97 20,000 20,000
BellSouth Telephone
5.300%, 06/13/96 10,000 9,982
Beneficial Finance
5.300%, 06/05/96 25,000 24,985
Cargill
5.290%, 07/01/96 20,000 19,912
5.350%, 06/14/96 4,500 4,491
Cargill Financial Services
5.400%, 06/03/96 16,399 16,394
Carolina Power & Light
5.300%, 09/03/96 1,782 1,757
Caterpillar Finance Australia
5.300%, 06/03/96 2,238 2,237
Colgate-Palmolive
5.280%, 06/25/96 1,200 1,196
5.320%, 07/22/96 25,400 25,209
Commoloco
5.320%, 07/10/96 20,000 19,885
Dow Chemical
5.300%, 06/06/96 2,200 2,198
5.300%, 06/18/96 1,000 998
Dresser Industries
5.300%, 06/03/96 1,486 1,486
5.320%, 06/03/96 3,300 3,299
5.290%, 06/24/96 1,271 1,267
Eaton
5.400%, 01/03/97 7,570 7,325
5.380%, 01/13/97 13,711 13,248
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
Exxon Imperial
5.300%, 06/12/96 $12,110 $ 12,090
5.280%, 06/18/96 1,226 1,223
First Chicago Financial
5.330%, 06/03/96 20,000 19,994
Ford Motor Credit
5.300%, 06/26/96 1,000 996
5.310%, 06/07/96 2,500 2,498
Gannett
5.300%, 06/14/96 8,775 8,758
General Electric Capital
5.290%, 06/17/96 1,410 1,407
General Re
5.320%, 06/27/96 7,100 7,073
General Telephone Northwest
5.290%, 06/12/96 2,376 2,372
Golden Peanut
5.230%, 06/10/96 2,000 1,997
GTE Northwest
5.320%, 06/14/96 16,883 16,851
H.J. Heinz
5.300%, 06/10/96 1,600 1,598
Hanson Finance
5.380%, 07/17/96 10,000 9,931
5.390%, 07/29/96 20,000 19,826
5.400%, 08/09/96 5,000 4,948
5.370%, 08/19/96 2,500 2,471
IBM Credit
5.300%, 06/03/96 6,650 6,648
5.280%, 06/03/96 2,000 2,000
5.290%, 06/13/96 3,300 3,294
International Lease Finance
5.300%, 06/12/96 1,210 1,208
John Hancock Capital
5.300%, 07/11/96 2,800 2,784
Kansas City Power & Light
5.290%, 06/11/96 1,830 1,827
5.290%, 06/12/96 1,500 1,498
Marsh & McLennan
5.320%, 07/12/96 17,000 16,897
McGraw Hill
5.230%, 07/09/96 5,000 4,972
88
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--CONTINUED
New England Power
5.300%, 06/11/96 $ 1,796 $ 1,793
5.300%, 06/13/96 6,475 6,464
5.290%, 06/18/96 2,275 2,269
5.320%, 06/19/96 5,300 5,286
5.350%, 06/20/96 8,000 7,977
5.350%, 06/21/96 7,703 7,680
Panasonic Finance
5.350%, 06/03/96 2,000 1,999
5.350%, 06/04/96 1,268 1,268
5.310%, 06/07/96 10,000 9,991
5.300%, 07/16/96 10,000 9,934
Philip Morris
5.400%, 06/03/96 26,845 26,837
PPG Industries
5.300%, 07/11/96 18,000 17,894
Progress Capital
5.300%, 06/03/96 15,800 15,795
5.300%, 06/05/96 1,600 1,599
5.320%, 06/07/96 2,100 2,098
5.290%, 06/10/96 7,000 6,991
Sony Capital
5.280%, 06/05/96 12,147 12,140
5.320%, 06/21/96 2,892 2,884
South Carolina Electric & Gas
5.320%, 06/07/96 1,000 999
5.400%, 07/12/96 2,500 2,485
Southern California Edison
5.300%, 09/05/96 10,035 9,893
Transamerica
5.310%, 06/14/96 26,375 26,324
Unilever
5.330%, 12/12/96 4,000 3,885
Walt Disney
5.320%, 07/08/96 1,000 995
5.220%, 07/17/96 10,000 9,933
Weyerhauser
5.300%, 06/04/96 1,500 1,499
5.320%, 06/10/96 2,700 2,696
5.310%, 06/10/96 3,725 3,720
5.300%, 06/12/96 19,050 19,019
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
WMX Technologies
5.330%, 11/01/96 $23,050 $ 22,528
5.330%, 11/05/96 15,000 14,651
Xerox
5.300%, 06/19/96 2,021 2,016
----------
Total Commercial Paper
(Cost $696,736,514) 696,737
----------
CORPORATE OBLIGATIONS (19.4%)
American General Finance
5.800%, 04/01/97 1,000 1,000
Associates of North America
4.625%, 11/30/96 3,000 2,992
Banc One Milwaukee (C)
5.420%, 05/14/97 25,000 24,984
BankAmerica
7.500%, 03/15/97 2,850 2,889
Bankers Trust New York
8.000%, 03/15/97 5,642 5,736
Beneficial, MTN
8.700%, 08/15/96 9,000 9,057
9.375%, 02/17/97 1,500 1,544
Caterpillar Financial Services, MTN
4.640%, 09/30/96 1,000 997
Caterpillar Financial Services,
MTN (C)
5.400%, 06/14/96 1,000 1,000
5.394%, 07/23/96 15,000 15,000
CoreStates Capital (C)
5.410%, 11/26/96 30,000 30,000
5.430%, 12/03/96 10,000 10,000
Dean Witter Discover, MTN (C)
5.618%, 11/22/96 15,000 15,010
Ford Motor
5.200%, 01/01/97 9,800 9,799
Ford Motor Credit
5.625%, 03/03/97 4,500 4,511
8.875%, 08/01/96 2,400 2,413
Ford Motor Credit, MTN
9.050%, 07/23/96 2,000 2,010
89
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
PRIME QUALITY MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS--CONTINUED
Ford Motor Credit, MTN (C)
5.600%, 05/20/97 $ 2,000 $ 1,999
Ford Motor, Global Note
7.875%, 10/15/96 2,500 2,525
General Electric Capital Callable
& Putable 12/15/96 @ 100
7.980%, 12/15/07 5,500 5,582
General Electric Capital, MTN
6.877%, 03/21/97 10,000 10,092
General Electric Capital,
MTN (C)(D)
5.390%, 07/26/96 575 575
Household Finance
7.625%, 12/15/96 5,000 5,058
7.500%, 03/15/97 2,800 2,839
Household Finance, MTN
4.551%, 08/16/96 2,521 2,515
International Lease Finance
4.750%, 07/15/96 5,000 4,996
7.900%, 10/01/96 3,675 3,702
6.375%, 11/01/96 7,010 7,030
NationsBank
7.500%, 02/15/97 1,600 1,619
Pacific Gas & Electric, MTN
4.900%, 12/09/96 4,500 4,480
PHH
8.000%, 01/01/97 1,450 1,468
Philip Morris
8.750%, 12/01/96 1,300 1,323
7.500%, 03/15/97 3,255 3,297
9.750%, 05/01/97 1,500 1,550
Society Bank Cleveland
7.125%, 04/15/97 2,000 2,020
Toyota Motor Credit, MTN (C)
5.360%, 06/13/96 16,270 16,269
Virginia Electric & Power
7.250%, 03/01/97 7,000 7,081
Waste Management
7.875%, 08/15/96 3,000 3,013
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
Xerox Credit, MTN
5.810%, 03/17/97 $18,000 $ 18,016
----------
Total Corporate Obligations
(Cost $245,990,716) 245,991
----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS (3.7%)
FHLMC
5.100%, 01/13/97 1,000 1,000
FHLMC Gold Balloon,
Pool #M90081
7.000%, 01/15/97 16,546 16,649
FNMA MTN
6.490%, 06/10/98 7,500 7,505
FNMA (C)
5.465%, 09/27/96 6,000 6,001
SLMA (C)
5.370%, 06/02/96 5,000 4,979
5.370%, 12/20/96 10,000 10,000
Tennessee Valley Authority
4.600%, 12/15/96 500 499
----------
Total U.S. Government Agency Obligations
(Cost $46,632,963) 46,633
----------
U.S. TREASURY OBLIGATION (5.0%)
U.S. Treasury Note
6.875%, 02/28/97 62,000 62,776
----------
Total U.S. Treasury Obligation
(Cost $62,775,537) 62,776
----------
BANK NOTES (1.2%)
Comerica Bank of Detroit (C)
5.390%, 12/31/96 10,000 9,990
Huntington National Bank (C)
5.390%, 11/13/96 5,000 5,000
----------
Total Bank Notes
(Cost $14,990,111) 14,990
----------
90
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (15.8%)
Deutsche Bank
5.33%, dated 05/31/96, matures
06/03/96, repurchase price
$131,189,359 (collateralized by
FHLB obligation, par value
$15,505,000, 0.00%, 07/01/96,
various FHLMC obligations,
total par value
$90,241,632, 0.00%-928.25%,
07/15/07-03/15/24, and
various FNMA obligations,
par value $117,530,748, 0.00%-
11.198%, 08/25/05-03/25/24:
total market value
$133,756,481), $131,131 $ 131,131
Swiss Bank
5.33%, dated 05/31/96, matures
06/03/96, repurchase price
$26,824,249 (collateralized by
U.S. Treasury Bond, par value
$21,201,000, 9.875%, 11/15/15:
total market value $27,505,870) 26,812 26,812
UBS Securities
5.33%, dated 05/31/96, matures
06/03/96, repurchase price
$42,342,759 (collateralized by
FHLMC obligation, par value
$45,105,000, 7.00%, 12/15/07:
total market value $43,595,735)
42,324 42,324
----------
- --------------------------------------------------------------------------------
VALUE
(000)
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $200,267,414) $ 200,267
----------
Total Investments (100.1%)
(Cost $1,267,393,255) 1,267,394
----------
OTHER ASSETS AND LIABILITIES (-0.1%)
Total Other Assets and Liabilities, Net (898)
----------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization--no par value) based
on 1,051,048,972 outstanding shares
of benefical interest 1,051,049
Fund shares of the Investor Class (unlimited
authorization--no par value) based
on 215,731,965 outstanding shares
of beneficial interest 215,732
Accumulated net realized loss
on investments (285)
----------
Total Net Assets (100.0%) $1,266,496
==========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 1.00
==========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Investor Shares $ 1.00
==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
91
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (35.2%)
U.S. Treasury Bills
5.145%, 11/29/96 $25,000 $ 24,353
5.190%, 12/12/96 10,000 9,720
5.400%, 04/03/97 5,000 4,771
U.S. Treasury Notes
6.250%, 08/31/96 10,000 10,018
7.500%, 01/31/97 50,000 50,769
6.875%, 02/28/97 25,000 25,313
6.875%, 03/31/97 10,000 10,103
--------
Total U.S. Treasury Obligations
(Cost $135,046,455) 135,047
--------
REPURCHASE AGREEMENTS (64.7%)
Barclay's
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$17,009,913 (collateralized by
various U.S. Treasury obligations,
total par value $69,332,000, 0.00%-
11.25%, 02/15/15-08/15/19: total
market value $17,343,717) 17,002 17,002
Deutsche Bank
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$90,221,797 (collateralized by
various U.S. Treasury obligations,
total par value $87,539,000, 0.00%-
12.00%, 11/21/96-05/15/21: total
market value $91,986,687) 90,182 90,182
Merrill Lynch
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$17,012,807 (collateralized by
various GNMA obligations, total
par value $33,290,000, 6.50%-
9.50%, 08/15/09-05/15/26: total
market value $17,349,017) 17,005 17,005
Salomon Brothers
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$16,954,509 (collateralized by
various U.S. Treasury obligations,
total par value $83,327,000, 5.75%-
9.125%, 10/31/00-05/15/18: total
market value $17,317,855) 16,947 16,947
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
Swiss Bank
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$17,456,231 (collateralized by
U.S. Treasury Note, par value
$17,364,000, 6.875%, 02/28/97:
market value $17,816,219) $17,449 $ 17,449
Union Bank of Switzerland
5.27%, dated 05/31/96, matures
06/03/96, repurchase price
$90,158,025 (collateralized by
various U.S. Treasury STRIPS,
total par value $142,042,000,
02/15/00-11/15/04: total market
value $91,921,160) 90,119 90,119
--------
Total Repurchase Agreements
(Cost $248,704,059) 248,704
--------
Total Investments (99.9%)
(Cost $383,750,514) 383,751
--------
OTHER ASSETS AND LIABILITIES (0.1%)
Total Other Assets and Liabilities, Net 350
--------
NET ASSETS:
Fund shares of the Trust Class (unlimited
authorization --no par value) based
on 325,493,550 outstanding shares of
benefical interest 325,493
Fund shares of the Investor Class (unlimited
authorization--no par value) based on
58,617,308 outstanding shares of
beneficial interest 58,617
Accumulated net realized loss
on investments (9)
--------
Total Net Assets (100.0%) $384,101
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 1.00
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Investor Shares $ 1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
92
<PAGE>
================================================================================
TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (99.7%)
ALABAMA (1.4%)
McIntosh, Industrial Development
Board, Ciba-Geigy Project,
Ser A, VRDN (C)(D)(E)
3.600%, 06/05/96 $3,500 $3,500
Special Care Facilities, Montgomery
Hospital Revenue,
VRDN (FGIC) (C)(D)
3.500%, 06/05/96 1,600 1,600
--------
Total Alabama 5,100
--------
ALASKA (3.1%)
Anchorage, TAN
4.250%, 12/13/96 1,500 1,507
Valolez, TECP (E)
3.400%, 06/18/96 9,900 9,900
--------
Total Alaska 11,407
--------
ARIZONA (4.2%)
Cochise County, Electric Power
Cooperative Project, RB Putable
09/01/96 @ 100 (C)(D)(E)(F)
3.900%, 09/01/24 2,000 2,000
Maricopa County, Pollution
Control Authority,
Ser A, VRDN (C)(D)(E)
3.600%, 06/05/96 4,000 4,000
Pima County, Industrial
Development Authority, Tucson
Electric Project, VRDN (C)(D)(E)(F)
3.750%, 06/05/96 3,400 3,400
Pima County, Industrial
Development Authority, Tuscon
Electric Project,
Ser A, VRDN (C)(D)(E)
3.500%, 06/05/96 6,000 6,000
--------
Total Arizona 15,400
--------
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
CALIFORNIA (1.7%)
Contra Costa County, Multi-Family
Mortgage, Delta Square Project,
Ser A, VRDN (C)(D)(E)
3.500%, 06/06/96 $4,200 $ 4,200
Higher Education Loan Authority,
VRDN (C)(D)(E)
3.600%, 06/05/96 1,900 1,900
--------
Total California 6,100
--------
COLORADO (1.1%)
Highlands Ranch, Metropolitan
District #2, GO, Pre-Refunded
06/15/96 @ 100 (G)
6.700%, 06/15/01 2,000 2,002
Jefferson County, COP (MBIA)
5.450%, 12/01/96 1,000 1,010
North Glen, Castle Garden
Retirement Center, VRDN (C)(D)(E)
3.500%, 06/06/96 1,200 1,200
--------
Total Colorado 4,212
--------
DELAWARE (0.5%)
State Educational Development
Authority, VRDN (C)(D)(E)
3.875%, 06/06/96 1,875 1,875
--------
FLORIDA (8.5%)
Collier County, Housing Finance
Authority, VRDN (C)(D)(E)
3.600%, 06/05/96 2,400 2,400
Dade County, Power & Light
Project, VRDN (C)(D)(E)
3.600%, 06/03/96 2,200 2,200
Housing Finance Agency,
VRDN (C)(D)(E)(F)
3.750%, 06/05/96 8,900 8,900
Housing Finance Agency,
Multi-Family Housing,
VRDN (C)(D)(E)
3.600%, 06/05/96 4,400 4,400
Jacksonville, TECP (E)
3.150%, 08/09/96 3,000 3,000
93
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
FLORIDA--CONTINUED
Monroe County, Industrial
Development Authority, Beverly
Enterprises Project,
VRDN (C)(D)(E)
3.600%, 06/05/96 $2,300 $ 2,300
Palm Beach County, Norton
Gallery Project, VRDN (C)(D)(E)
3.600%, 06/05/96 3,000 3,000
Saint Lucie County, Pollution
Control Board, Power & Light
Project, VRDN (C)(D)(E)
3.600%, 06/03/96 5,000 5,000
--------
Total Florida 31,200
--------
GEORGIA (7.4%)
Burke County, Development
Authority, TECP (E)
3.250%, 06/03/96 4,000 4,000
Cobb County, Industrial
Development Authority,
VRDN (C)(D)(E)
3.700%, 06/05/96 1,030 1,030
Cobb County, TAN
4.000%, 12/31/96 6,000 6,014
Dekalb County, TRAN
3.750%, 12/31/96 5,000 5,014
Fulton County, Industrial
Development Authority,
American Red Cross Project,
VRDN (C)(D)(E)
3.650%, 06/06/96 1,600 1,600
Fulton County, School District, RB,
Pre-Refunded 05/01/97 @ 103 (G)
7.625%, 05/01/17 3,000 3,195
Lafayette, Industrial Development
Authority, Blue-Bird Project,
Ser 1991, VRDN (C)(D)(E)
3.650%, 06/06/96 1,000 1,000
Monroe County, Industrial
Development Authority, Forsyth
Inns Project, VRDN (C)(D)(E)
3.700%, 06/05/96 2,525 2,525
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
GEORGIA--CONTINUED
Municipal Electric Authority,
VRDN (FGIC) (C)(D)
3.650%, 06/06/96 $3,000 $ 3,000
--------
Total Georgia 27,378
--------
HAWAII (0.8%)
State Housing Finance &
Development Authority,
VRDN (C)(D)(E)
3.800%, 06/05/96 3,000 3,000
--------
IDAHO (0.8%)
Nez Pierce County, Pollution
Control Board, VRDN (C)(D)(E)
3.550%, 06/05/96 1,000 1,000
Nez Pierce County, Pollution
Control Board, Potlatch
Corporation Project,
VRDN (C)(D)(E)
3.600%, 06/05/96 2,000 2,000
--------
Total Idaho 3,000
--------
ILLINOIS (4.9%)
Chicago, Board of Education, COP (E)
3.700%, 12/01/96 3,000 3,000
Cook County, VRDN (C)(D)
3.650%, 06/05/96 4,900 4,900
Decatur, GO (AMBAC)
3.850%, 10/01/96 1,030 1,030
Savanna, Industrial Development
Authority, Metform Project,
Ser B, VRDN (C)(D)(E)
3.750%, 06/05/96 1,400 1,400
Savanna, Industrial Development
Authority, Ser A, VRDN (C)(D)(E)
3.700%, 06/05/96 500 500
State Anti-Pollution Authority, GO
5.250%, 11/01/96 1,400 1,411
94
<PAGE>
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
ILLINOIS--CONTINUED
State Health Facilities Authority,
University of Chicago Hospital
Project, Ser C,
VRDN (MBIA) (C)(D)
3.600%, 06/05/96 $4,000 $ 4,000
State Health Facilities Authority,
Streeterville Project,
VRDN (C)(D)(E)
3.600%, 06/05/96 2,000 2,000
--------
Total Illinois 18,241
--------
INDIANA (2.2%)
Allen County, Industrial Economic
Development, Mattel Power
Wheels Project, VRDN (C)(D)(E)(F)
3.900%, 06/05/96 1,500 1,500
Fort Wayne, Economic Development
Authority, ND Tech Project,
VRDN (C)(D)(E)(F)
3.700%, 06/05/96 1,000 1,000
Indianapolis, Industrial Economic
Development Authority,
VRDN (C)(D)(E)
3.750%, 06/05/96 2,000 2,000
Jasper County, Pollution Control
Board, Northern Indiana Public
Service Project, Ser C,
VRDN (C)(D)(E)
3.700%, 06/03/96 2,200 2,200
State Bond Bank Advance Funding
Notes (E)
4.250%, 07/08/96 1,250 1,251
--------
Total Indiana 7,951
--------
IOWA (0.7%)
West Des Moines, Commercial
Development Authority,
Greyhound Lines Project,
VRDN (C)(D)(E)
3.700%, 06/05/96 2,500 2,500
--------
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
KANSAS (0.5%)
Burlington, Pollution Control
Authority, Kansas City Power &
Light Project, Ser B, TECP (E)
3.650%, 08/08/96 $2,000 $ 2,000
--------
KENTUCKY (1.2%)
Lexington-Fayette Urban County,
Government Residential Facilities,
Richmond Place Project,
RB Mandatory Put 04/01/97
@ 100 (E)
4.500%, 04/01/15 1,000 1,000
Pendleton County, VRDN (C)(D)(E)
3.966%, 07/01/96 1,000 1,000
State League of Cities,
VRDN (C)(D)(E)
3.700%, 06/05/96 1,380 1,380
State Turnpike Authority, RB,
Pre-Refunded 07/01/96 @ 102 (G)
7.400%, 01/01/97 1,025 1,048
--------
Total Kentucky 4,428
--------
LOUISIANA (2.0%)
Lake Charles, Harbor & Terminal
District Authority, Reynolds
Metals Project, VRDN (C)(D)(E)
3.500%, 06/05/96 3,000 3,000
Port Authority, Occidental
Petroleum Project, VRDN (C)(D)(E)
3.600%, 06/05/96 4,500 4,500
--------
Total Louisiana 7,500
--------
MARYLAND (3.5%)
Baltimore County, Gas &
Electric, TECP (E)
3.200%, 06/04/96 5,000 5,000
Baltimore County, Allied Signal
Project, VRDN (C)(D)(E)
3.700%, 06/05/96 1,000 1,000
95
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
MARYLAND--CONTINUED
Health & Higher Education
Authority, Pooled Loan Program,
Ser B, VRDN (C)(D)(E)
3.700%, 06/05/96 $5,000 $ 5,000
Montgomery County, TECP (E)
3.250%, 06/05/96 2,000 2,000
--------
Total Maryland 13,000
--------
MICHIGAN (4.0%)
State Housing Finance Authority,
VRDN (C)(D)(E)(F)
3.800%, 06/05/96 1,000 1,000
State Housing Development
Authority, VRDN (C)(D)(E)
3.625%, 06/06/96 3,000 3,000
State Industrial Development
Authority, VRDN (C)(D)(E)
3.600%, 06/05/96 3,000 3,000
Pollution Control Board,
Underground Storage Tanks
Project, VRDN (C)(D)(E)
4.000%, 06/05/96 4,900 4,900
State Strategic Fund, Dow
Chemical Project, TECP (E)
3.550%, 06/17/96 2,900 2,900
--------
Total Michigan 14,800
--------
MINNESOTA (0.3%)
Hennepin County, Waste
Treatment Authority, GO
4.400%, 10/01/96 1,000 1,003
--------
MISSISSIPPI (0.6%)
State GO
4.500%, 12/01/96 2,300 2,309
--------
MISSOURI (3.8%)
Environmental Improvement
Authority, RB Putable
06/01/96 @ 100 (E)
4.000%, 06/01/14 1,000 1,000
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
MISSOURI--CONTINUED
Environmental Improvement
Authority, Utilicorp United
Project, VRDN (C)(D)(E)
3.750%, 06/05/96 $ 700 $ 700
Improvement & Energy Resource
Authority, Kansas City Power &
Light Project, TECP (E)
3.750%, 11/06/96 5,000 5,000
Industrial Development Authority,
Bachman Machine Project,
Ser A, VRDN (C)(D)(E)(F)
3.950%, 06/05/96 140 140
Industrial Development Authority,
Excelsior Manufacturing Project,
Ser B, VRDN (C)(D)(E)(F)
3.950%, 06/05/96 40 40
Industrial Development Authority,
Milbank Systems Project, Ser B,
VRDN (C)(D)(E)(F)
3.950%, 06/05/96 115 115
Industrial Development Authority,
Precision Stainless Project,
Ser I, VRDN (C)(D)(E)(F)
3.950%, 06/05/96 80 80
Industrial Development Authority,
Plastic Enterprises Project,
Ser A, VRDN (C)(D)(E)(F)
3.950%, 06/05/96 415 415
Saint Louis, Industrial Development
Authority, Multi-Family Housing,
Sugar Pines Apartments Project,
VRDN (C)(D)(E)
3.600%, 06/06/96 1,200 1,200
State Custody Receipt, Third Street
Building Project, VRDN (C)(D)
3.900%, 06/05/96 2,000 2,000
State Ecomonic Development
Authority, Milbank System
Project, Ser C, VRDN (C)(D)(E)
3.950%, 06/05/96 200 200
96
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
MISSOURI--CONTINUED
State Health & Educational Facilities
Authority, Sisters of Mercy Health
Systems Project, RB
3.600%, 12/01/96 $1,000 $ 1,000
State VRDN
3.650%, 06/06/96 2,125 2,125
--------
Total Missouri 14,015
--------
NEBRASKA (0.6%)
Higher Education Authority,
Student Loan Program,
Ser C, VRDN (SLMA) (C)(D)
3.700%,06/05/96 2,300 2,300
--------
NEVADA (1.4%)
Clark County, Nevada Power
Project, Ser A, VRDN (C)(D)(E)(F)
3.700%, 06/05/96 5,000 5,000
--------
NEW HAMPSHIRE (2.8%)
State Housing Finance Authority,
Multi-Family Housing,
Fairways Project, VRDN (C)(D)(E)
3.750%, 06/05/96 5,000 5,000
State Housing Finance Authority,
Ser A, RB Putable 01/15/97 @ 100 (F)
3.650%, 07/01/26 1,500 1,500
State Pollution Control Authority,
VRDN (C)(D)(E)
3.700%, 06/05/96 800 800
State Business Finance Authority,
TECP (E)
3.750%, 06/12/96 3,000 3,000
--------
Total New Hampshire 10,300
--------
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
NEW MEXICO (2.4%)
Educational Assistance Foundation,
Student Loan Program, VRDN
(AMBAC)
3.800%, 06/06/96 $3,950 $ 3,950
Mortgage Finance Authority,
Single-Family Mortgage,
Ser A, RB Mandatory Put 12/31/96
@ 100 (GNMA)
3.250%, 01/01/28 5,000 4,987
--------
Total New Mexico 8,937
--------
NEW YORK (1.4%)
Suffolk County, Ser I, TAN (E)
4.000%, 08/15/96 5,000 5,007
--------
NORTH DAKOTA (1.4%)
Mercer County, Solid Waste
Disposal Authority, United
Power Project, RB Optional Put
12/01/96 @ 100 (F)
3.650%, 12/01/18 5,000 5,000
--------
OHIO (1.6%)
State Air Quality Development
Authority, JMG Limited
Partnership, Ser A,
VRDN (C)(D)(E)(F)
3.600%, 06/05/96 3,000 3,000
State Pollution Control Authority,
Duquesne Project, VRDN (C)(D)(E)
3.750%, 06/05/96 3,000 3,000
--------
Total Ohio 6,000
--------
OREGON (0.3%)
State Housing & Community
Services, Single-Family Mortgage
Program, Ser C, RB (F)
3.850%, 05/15/97 1,000 1,000
--------
97
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA (6.5%)
Allegheny County Health Center
Development Ser B, TECP (E)
3.700%, 06/10/96 $5,000 $ 5,000
Beaver County, Industrial
Development Authority,
Duquesne Light Company
Project, Ser B, VRDN (C)(D)(E)
3.650%, 06/05/96 1,000 1,000
Delaware County, Industrial
Development Authority,
Philadelphia Electric Project,
Ser C, TECP (FGIC)
3.250%, 06/05/96 6,000 6,000
Philadelphia School District,
Ser 1995, TRAN
4.500%, 06/28/96 3,000 3,001
Philadelphia, Ser A, TRAN
4.500%, 06/27/96 4,000 4,002
State TAN
4.500%, 06/28/96 5,000 5,003
--------
Total Pennsylvania 24,006
--------
RHODE ISLAND (3.0%)
State TAN (E)
4.500%, 06/28/96 5,000 5,003
Student Loan Authority,
VRDN (C)(D)(E)(F)
3.650%, 06/05/96 6,000 6,000
--------
Total Rhode Island 11,003
--------
SOUTH CAROLINA (1.4%)
State Public Service Authority,
Ser C, RB
3.800%, 01/01/97 2,000 2,006
York County, Pollution Control
Authority, North Carolina Electric
Power Project, Ser N-5,
VRDN (C)(D)(E)
3.250%, 09/15/96 3,000 3,000
--------
Total South Carolina 5,006
--------
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
TENNESSEE (4.0%)
Covington, Industrial Development
Board, Charms Project,
VRDN (C)(D)(E)
3.700%, 06/05/96 $3,000 $ 3,000
Hamilton County, Industrial
Development Board, Tennessee
Aquarium Project, VRDN (C)(D)(E)
3.650%, 06/06/96 3,000 3,000
Memphis-Shelby County, Industrial
Development Board, Ponderosa
Fibres American Project,
VRDN (C)(D)(E)
3.800%, 06/06/96 1,800 1,800
Nashville & Davidson County,
Government Health & Education
Authority, Vanderbilt University
Project, Ser B, VRDN (C)(D)
3.700%, 05/01/97 1,400 1,400
Nashville & Davidson County,
Industrial Development
Authority, Multi-Family
Mortgage, Chimneytop II
Project, VRDN (C)(D)(E)
3.700%, 06/05/96 1,325 1,325
State School Board Authority,
VRDN (C)(D)
3.600%, 06/05/96 750 750
State School Board Authority,
Ser B, BAN, VRDN (C)(D)
3.600%, 06/05/96 1,400 1,400
State School Board Authority,
VRDN (C)(D)
3.600%, 06/05/96 2,200 2,200
--------
Total Tennessee 14,875
--------
98
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
TEXAS (7.9%)
Brazos River, TECP (E)(F)
3.700%, 08/08/96 $2,790 $ 2,790
Brazos River, Dow Chemical
Project, TECP (E)
3.450%, 08/23/96 2,700 2,700
Harris County, Health Facility
Authority, TECP (E)
3.200%, 06/10/96 3,000 3,000
Harris County, Industrial
Development Authority,
Lubrizol Project, VRDN (C)(D)(E)
3.600%, 06/05/96 1,600 1,600
Harris County, Toll Roads,
Ser H, VRDN (C)(D)
3.600%, 06/05/96 5,500 5,500
Harris County, Housing Finance
Corporation, Ser 1985,
VRDN (C)(D)(E)
3.875%, 06/06/96 1,000 1,000
Houston, TECP (E)
3.250%, 06/11/96 5,000 5,000
Lone Star, Airport Improvement,
VRDN (C)(D)
3.650%, 06/03/96 1,700 1,700
State Public Finance Authority,
Ser C, GO
6.400%, 10/01/96 1,000 1,009
State TAN (E)
4.750%, 08/30/96 5,000 5,008
--------
Total Texas 29,307
--------
UTAH (4.3%)
Davis County, School District, TAN
4.250%, 06/28/96 6,500 6,502
Salt Lake County, Solid Waste
Disposal Authority, Kennecott
Copper Project, Ser A,
VRDN (C)(D)(E)(F)
3.800%, 06/05/96 6,400 6,400
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
Tooele County, Hazardous Waste
Treatment, Westinghouse
Project, Ser A, TECP (E)
3.650%, 07/23/96 $3,000 $ 3,000
--------
Total Utah 15,902
--------
VERMONT (2.7%)
State TECP (E)
3.400%, 06/14/96 10,000 10,000
--------
VIRGINIA (2.4%)
Chesterfield County, Industrial
Development Authority, Allied
Signal Project, VRDN (C)(D)(E)
3.750%, 06/05/96 3,000 3,000
Commonwealth, Ser 1994,
VRDN (C)(D)
3.750%, 06/06/96 3,000 3,000
Front Royal & Warren County,
Industrial Development Authority,
Pen Tab Industries Project,
VRDN (C)(D)(E)(F)
3.900%, 06/06/96 3,000 3,000
--------
Total Virginia 9,000
--------
WASHINGTON (0.5%)
Port of Seattle, VRDN (C)(D)
3.500%, 06/05/96 1,800 1,800
--------
WEST VIRGINIA (1.1%)
Marshall County, Pollution Control
Authority, Allied Signal Project,
VRDN (C)(D)(E)
3.750%, 06/05/96 2,000 2,000
Marshall County, PPG Industries
Project, VRDN (C)(D)(E)
3.800%, 06/06/96 2,000 2,000
--------
Total West Virginia 4,000
--------
99
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
TAX-EXEMPT MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
WISCONSIN (0.8%)
State VRDN (C)(D)
3.600%, 06/06/96 $3,000 $ 3,000
--------
Total Municipal Bonds
(Cost $367,861,479) 367,862
--------
CASH EQUIVALENT (1.1%)
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio 3,966 3,966
--------
Total Cash Equivalent
(Cost $3,965,853) 3,966
--------
Total Investments (100.8%)
(Cost $371,827,332) 371,828
--------
OTHER ASSETS AND LIABILITIES (-0.8%)
Total Other Assets and Liabilities, Net (2,992)
--------
- --------------------------------------------------------------------------------
VALUE
(000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Class (unlimited authorization --no par value) based
on 273,619,007 outstanding shares of
benefical interest $273,619
Fund shares of the Investor Class (unlimited
authorization--no par value) based on
95,230,640 outstanding shares of
beneficial interest 95,231
Accumulated net realized loss on
investments (14)
--------
Total Net Assets (100.0%) $368,836
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Trust Shares $ 1.00
========
Net Asset Value, Offering Price and
Redemption Price Per Share--
Investor Shares $ 1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101.
100
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
KEY TO ABBREVIATIONS USED IN
THE STATEMENT OF NET ASSETS
ADR American Depository Receipt
AMBAC Security insured by the American Municipal
Bond Assurance Company
ARM Adjustable Rate Mortgage
BAN Bond Anticipation Note
Cl Class
CMO Collateralized Mortgage Obligation
COP Certificate of Participation
CV Convertible Security
ETM Escrowed to Maturity
F Foreign Registry Shares
FGIC Security insured by the Financial Guaranty
Insurance Corporation
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Security insured by Financial Security
Assurance
GDR Global Depository Receipt
GECC General Electric Capital Corporation
GMAC General Motors Acceptance Corporation
GNMA Government National Mortgage Association
GO General Obligation
MBIA Security insured by the Municipal Bond
Insurance Association
MTN Medium Term Note
PSFG Permanent School Fund Guarantee
RB Revenue Bond
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
Ser Series
SLMA Student Loan Marketing Association
STRIPS Separately Traded Registered Interest and
Principal Security
TAN Tax Anticipation Note
TECP Tax Exempt Commercial Paper
TRAN Tax & Revenue Anticipation Note
VRDN Variable Rate Demand Note
* Non-income producing securities
(A) Zero Coupon Bond
(B) Private Placement Security
(C) Variable rate security. The rate reported on the
Statement of Net Assets is the rate in effect on May 31, 1996
(D) Put and demand features exist requiring the
issuer to repurchase the instrument prior to
maturity
(E) Securities are held in connection with a letter
of credit issued by a major bank
(F) Income on security may be subject to the
Alternative Minimum Tax
(G) Collateralized by U.S. Government Securities
101
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
102
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
================================================================================
STI CLASSIC FUNDS FOR THE YEAR ENDED MAY 31, 1996
<TABLE>
<CAPTION>
---------- ---------- ----------
INTERNATIONAL INVESTMENT FLORIDA
EQUITY GRADE TAX-EXEMPT TAX-EXEMPT
FUND BOND FUND BOND FUND
---------- ---------- ----------
<S> <C> <C> <C>
Assets:
Investments at Market Value
(Cost $194,622,776, $158,665,690, $36,007,283, respectively) .................... $208,240 $157,970 $ 35,650
Cash and Foreign Currency ......................................................... 12,765 -- --
Receivables for Investment Securities Sold ........................................ -- 6,359 --
Receivables for Capital Shares Sold ............................................... 493 5,660 1,459
Other Assets ...................................................................... 622 2,546 578
-------- -------- --------
Total Assets ...................................................................... 222,120 172,535 37,687
-------- -------- --------
Liabilities:
Payables for Investment Securities Purchased ...................................... 3,488 3,970 --
Payables for Capital Shares Repurchased ........................................... 512 285 --
Accrued Expenses .................................................................. 413 177 43
Distribution Payable .............................................................. -- 535 137
Other Liabilities ................................................................. -- 98 --
-------- -------- --------
Total Liabilities ................................................................. 4,413 5,065 180
-------- -------- --------
Net Assets:
Fund Shares of the Trust Shares (Unlimited Authorization -- No Par Value)
Based on 18,703,354, 11,214,957, 3,059,386, respectively Outstanding Shares
of Beneficial Interest .......................................................... 195,165 123,950 31,003
Fund Shares of the Investor Shares (Unlimited Authorization -- No Par Value)
Based on 302,894, 3,367,080, 399,731, respectively Outstanding Shares
of Beneficial Interest .......................................................... 3,247 36,440 3,971
Fund Shares of the Flex Shares (Unlimited Authorization -- No Par Value)
Based on 83,847, 498,358, 267,043, respectively Outstanding Shares
of Beneficial Interest .......................................................... 908 5,632 2,741
Undistributed Net Investment Income ............................................... 986 2 4
Accumulated Net Realized Gain on Investments ...................................... 4,059 2,142 145
Accumulated Net Realized Loss on Foreign Currency Transactions .................... (265) -- --
Net Unrealized Appreciation (Depreciation) on Investments ......................... 13,617 (696) (357)
Net Unrealized Depreciation on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency ................. (10) -- --
-------- -------- --------
Total Net Assets .................................................................. $217,707 $167,470 $ 37,507
======== ======== ========
Net Asset Value, Offering Price and Redemption Price Per Share -- Trust Shares ....... $ 11.40 $ 11.10 $ 10.06
======== ======== ========
Net Asset Value and Redemption Price Per Share -- Investor Shares .................... $ 11.38 $ 11.12 $ 10.07
======== ======== ========
Maximum Public Offering Price Per Share -- Investor Shares ($11.38 (DIVIDE) 96.25%),
($11.12 (DIVIDE) 96.25%), ($10.07 (DIVIDE) 96.25%) ................................ $ 11.82 $ 11.55 $ 10.46
======== ======== ========
Net Asset Value,Offering and Redemption Price Per Share-- Flex Shares (1) ............ $ 11.37 $ 11.11 $ 10.08
======== ======== ========
<FN>
(1) Flex Class has a contingent deferred sales charge. For a description of a possible
sales charge, see notes to the Financial Statements
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
103
<PAGE>
STATEMENT OF OPERATIONS (000)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 1996
<TABLE>
<CAPTION>
MID-CAP CAPITAL INTERNATIONAL
VALUE INCOME EQUITY GROWTH BALANCED EQUITY
STOCK FUND FUND FUND FUND INDEX FUND
--------- --------- --------- --------- ----------
06/01/95- 06/01/95- 06/01/95- 06/01/95- 06/01/95-
05/31/96 05/31/96 05/31/96 05/31/96 05/31/96
--------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Income:
Interest Income ......................................... $ 4,145 $ 1,718 $ 4,354 $ 3,136 $ 34
Dividend Income ......................................... 40,342 2,105 19,620 972 2,008
Less Foreign Taxes Withheld ............................. -- -- -- -- (182)
-------- ------- -------- ------- ------
Total Investment Income ................................. 44,487 3,823 23,974 4,108 1,860
-------- ------- -------- ------- ------
Expenses:
Investment Advisory Fees ................................ 9,448 2,377 13,507 990 885
Investment Advisory Fees Waived ......................... -- (319) (1,409) (166) (144)
Contribution from Advisor ............................... -- -- -- -- --
Administrator Fees ...................................... 846 148 842 75 71
Transfer Agent Fees-- Trust Class of Shares ............. 14 15 10 15 15
Transfer Agent Fees-- Investor Class of Shares .......... 131 31 218 23 24
Transfer Agent Fees-- Flex Class of Shares .............. 26 16 19 13 13
Transfer Agent Out of Pocket Fees ....................... 74 16 95 8 10
Printing Expenses ....................................... 99 22 109 10 10
Custody Fees ............................................ 43 9 48 3 132
Professional Fees ....................................... 76 19 90 9 8
Trustee Fees ............................................ 18 3 22 2 2
Registration Fees ....................................... 144 51 132 12 4
Distribution Fees-- Investor Class of Shares ............ 363 55 1,188 12 18
Distribution Fees Waived-- Investor Class of Shares ..... (60) (4) (275) (1) (18)
Distribution Fees-- Flex Class of Shares ................ 116 22 49 16 6
Distribution Fees Waived-- Flex Class of Shares ......... (17) (12) (12) (9) (6)
Insurance and Other Fees ................................ 52 6 53 5 22
Amortization of Deferred Organization Costs ............. 13 3 10 3 8
-------- ------- -------- ------- ------
Total Expenses .......................................... 11,386 2,458 14,696 1,020 1,060
-------- ------- -------- ------- ------
Net Investment Income (Loss) ............................ 33,101 1,365 9,278 3,088 800
-------- ------- -------- ------- ------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain on Securities Sold .................... 196,134 29,513 224,050 11,091 1,134
Net Realized Loss on Foreign Currency Transactions ...... -- -- -- -- --
Net Change in Unrealized Depreciation on Foreign Currency
and Translation of Other Assets and Liabilities in
Foreign Currency ...................................... -- -- -- -- (7)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ........................................ 60,796 12,518 63,301 1,891 6,362
-------- ------- -------- ------- ------
Net Increase in Net Assets from Operations .............. $290,031 $43,396 $296,629 $16,070 $8,289
======== ======= ======== ======= ======
<FN>
*Commencement of operations
Amounts designated as "--" are either $0 or round to $0.
</FN>
</TABLE>
104
<PAGE>
================================================================================
<TABLE>
<CAPTION>
INTERNATIONAL INVESTMENT GRADE FLORIDA TENNESSEE
EQUITY SUNBELT TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND EQUITY FUND BOND FUND BOND FUND BOND FUND
---------- --------- --------- --------- ---------
12/01/95*- 06/01/95- 06/01/95- 06/01/95- 06/01/95-
05/31/96 05/31/96 05/31/96 05/31/96 05/31/96
---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Income:
Interest Income ......................................... $ 192 $ 443 $7,184 $1,438 $226
Dividend Income ......................................... 2,079 2,293 -- -- --
Less Foreign Taxes Withheld ............................. (235) -- -- -- --
------- -------- ------ ------ ----
Total Investment Income ................................. 2,036 2,736 7,184 1,438 226
------- -------- ------ ------ ----
Expenses:
Investment Advisory Fees ................................ 899 3,890 1,120 182 29
Investment Advisory Fees Waived ......................... (152) (465) (204) (76) (29)
Contribution from Advisor ............................... -- -- -- -- (18)
Administrator Fees ...................................... 50 242 108 20 3
Transfer Agent Fees-- Trust Class of Shares ............. 7 15 15 16 16
Transfer Agent Fees-- Investor Class of Shares .......... 9 58 45 15 14
Transfer Agent Fees-- Flex Class of Shares .............. 6 13 14 13 12
Transfer Agent Out of Pocket Fees ....................... 6 26 14 3 2
Printing Expenses ....................................... 9 34 15 4 --
Custody Fees ............................................ 113 14 6 1 --
Professional Fees ....................................... 10 28 13 3 1
Trustee Fees ............................................ 1 5 2 1 --
Registration Fees ....................................... 83 30 30 10 1
Distribution Fees-- Investor Class of Shares ............ 3 107 175 7 2
Distribution Fees Waived-- Investor Class of Shares ..... (3) (7) (61) (1) (1)
Distribution Fees-- Flex Class of Shares ................ 2 10 39 17 14
Distribution Fees Waived-- Flex Class of Shares ......... (2) (9) (17) (14) (5)
Insurance and Other Fees ................................ 8 17 9 1 --
Amortization of Deferred Organization Costs ............. 1 3 10 1 --
------- -------- ------ ------ ----
Total Expenses .......................................... 1,050 4,011 1,333 203 41
------- -------- ------ ------ ----
Net Investment Income (Loss) ............................ 986 (1,275) 5,851 1,235 185
------- -------- ------ ------ ----
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain on Securities Sold .................... 4,059 39,898 5,634 220 13
Net Realized Loss on Foreign Currency Transactions ...... (265) -- -- -- --
Net Change in Unrealized Depreciation on Foreign Currency
and Translation of Other Assets and Liabilities in
Foreign Currency ...................................... (10) -- -- -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments ........................................ 13,617 84,777 (3,672) (723) (96)
------- -------- ------ ------ ----
Net Increase in Net Assets from Operations .............. $18,387 $123,400 $7,813 $ 732 $102
======= ======== ====== ====== ====
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
105
<PAGE>
STATEMENT OF OPERATIONS (000) (concluded)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 1996
<TABLE>
<CAPTION>
SHORT-TERM
GEORGIA INVESTMENT U.S. TREASURY LIMITED-TERM
TAX-EXEMPT GRADE BOND SHORT-TERM SECURITIES FEDERAL MORTGAGE
BOND FUND FUND BOND FUND FUND SECURITIES FUND
---------- ---------- ---------- ------------- ----------------
06/01/95- 06/01/95- 06/01/95- 06/01/95- 06/01/95-
05/31/96 05/31/96 05/31/96 05/31/96 05/31/96
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Income:
Interest Income ...................................... $1,144 $40,504 $4,745 $1,037 $ 3,533
Dividend Income ...................................... -- -- -- -- --
------ ------- ------ ------ -------
Total Investment Income .............................. 1,144 40,504 4,745 1,037 3,533
------ ------- ------ ------ -------
Expenses:
Investment Advisory Fees ............................. 149 4,580 512 109 344
Investment Advisory Fees Waived ...................... (65) (711) (150) (72) (119)
Administrator Fees ................................... 16 444 56 12 38
Administrator Fees Waived ............................ -- -- -- -- --
Transfer Agent Fees-- Trust Class of Shares .......... 16 15 14 16 13
Transfer Agent Fees-- Investor Class of Shares ....... 15 54 18 17 14
Transfer Agent Fees-- Flex Class of Shares ........... 13 14 12 12 12
Transfer Agent Out of Pocket Fees .................... 3 46 7 3 8
Printing Expenses .................................... 3 58 8 2 5
Custody Fees ......................................... 1 26 3 -- 2
Professional Fees .................................... 2 51 7 1 6
Trustee Fees ......................................... -- 9 1 -- 1
Registration Fees .................................... 7 98 16 6 13
Distribution Fees-- Investor Class of Shares ......... 6 152 6 10 3
Distribution Fees Waived-- Investor Class of Shares .. (1) (73) (1) (2) (1)
Distribution Fees-- Flex Class of Shares ............. 24 24 6 12 7
Distribution Fees Waived-- Flex Class of Shares ...... (17) (15) (6) (12) (7)
Insurance and Other Fees ............................. 1 28 4 -- 2
Amortization of Deferred Organization Costs .......... -- 10 8 8 11
------ ------- ------ ------ -------
Total Expenses ....................................... 173 4,810 521 122 352
------ ------- ------ ------ -------
Net Investment Income ................................... 971 35,694 4,224 915 3,181
------ ------- ------ ------ -------
Net Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on Securities Sold .......... 330 19,716 1,358 95 389
Net Change in Unrealized Depreciation
on Investments ..................................... (789) (32,383) (2,395) (294) (1,359)
------ ------- ------ ------ -------
Net Increase in Net Assets from Operations .............. $ 512 $23,027 $3,187 $ 716 $ 2,211
====== ======= ====== ====== =======
<FN>
Amounts designated as "--" are either $0 or round to $0.
</FN>
</TABLE>
106
<PAGE>
================================================================================
<TABLE>
<CAPTION>
TAX-EXEMPT
U.S. PRIME QUALITY U.S. GOVERNMENT MONEY
GOVERNMENT MONEY MARKET SECURITIES MONEY MARKET
SECURITIES FUND FUND MARKET FUND FUND
--------------- ------------- ---------------- ----------
06/01/95- 06/01/95- 06/01/95- 06/01/95-
05/31/96 05/31/96 05/31/96 05/31/96
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Income:
Interest Income ...................................... $698 $60,664 $22,883 $14,248
Dividend Income ...................................... -- -- -- --
---- ------- ------- -------
Total Investment Income .............................. 698 60,664 22,883 14,248
---- ------- ------- -------
Expenses:
Investment Advisory Fees ............................. 76 6,950 2,646 2,108
Investment Advisory Fees Waived ...................... (60) (1,603) (578) (685)
Administrator Fees ................................... 7 765 292 275
Administrator Fees Waived ............................ -- (450) (73) --
Transfer Agent Fees-- Trust Class of Shares .......... 16 16 16 16
Transfer Agent Fees-- Investor Class of Shares ....... 13 48 29 25
Transfer Agent Fees-- Flex Class of Shares ........... 14 -- -- --
Transfer Agent Out of Pocket Fees .................... 3 70 27 25
Printing Expenses .................................... 1 95 38 38
Custody Fees ......................................... -- 43 18 17
Professional Fees .................................... 1 83 30 32
Trustee Fees ......................................... -- 14 3 6
Registration Fees .................................... 6 200 63 72
Distribution Fees-- Investor Class of Shares ......... 5 382 97 139
Distribution Fees Waived-- Investor Class of Shares .. (1) (108) (53) (59)
Distribution Fees-- Flex Class of Shares ............. 16 -- -- --
Distribution Fees Waived-- Flex Class of Shares ...... (12) -- -- --
Insurance and Other Fees ............................. 1 17 7 12
Amortization of Deferred Organization Costs .......... 10 10 10 10
---- ------- ------- -------
Total Expenses ....................................... 96 6,532 2,572 2,031
---- ------- ------- -------
Net Investment Income ................................... 602 54,132 20,311 12,217
---- ------- ------- -------
Net Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on Securities Sold .......... (24) (82) 90 9
Net Change in Unrealized Depreciation
on Investments ..................................... (557) -- -- --
---- ------- ------- -------
Net Increase in Net Assets from Operations .............. $ 21 $54,050 $20,401 $12,226
==== ======= ======= =======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
107
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 1996
<TABLE>
<CAPTION>
VALUE INCOME MID-CAP EQUITY
STOCK FUND FUND CAPITAL GROWTH FUND BALANCED FUND
---------------------- ------------------- --------------------- --------------------
06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94-
05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95
---------- ---------- -------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .................. $ 33,101 $ 27,417 $ 1,365 $ 848 $ 9,278 $ 13,878 $ 3,088 $ 2,894
Net Realized Gain (Loss) on Investments 196,134 63,692 29,513 3,443 224,050 (25,085) 11,091 (2,649)
Net Realized Gain (Loss) on Foreign
Currency Transactions ................ -- -- -- -- -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Foreign Currency
and Translation of Other Assets and
Liabilities in Foreign Currency ...... -- -- -- -- -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ........ 60,796 72,296 12,518 9,545 63,301 81,722 1,891 7,258
---------- ---------- -------- -------- ---------- ---------- -------- --------
Increase in Net Assets from Operations 290,031 163,405 43,396 13,836 296,629 70,515 16,070 7,503
---------- ---------- -------- -------- ---------- ---------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ......................... (29,124) (23,754) (1,285) (718) (9,644) (11,234) (2,933) (2,702)
Investor Shares ...................... (2,618) (1,920) (30) (14) (570) (928) (115) (97)
Flex Shares .......................... (206) -- (1) -- (5) -- (31) --
Capital Gains:
Trust Shares ......................... (92,363) (38,976) (13,072) -- (41,659) (30,893) (904) --
Investor Shares ...................... (9,853) (3,570) (922) -- (7,343) (5,364) (44) --
Flex Shares .......................... (1,106) -- (167) -- (227) -- (18) --
---------- ---------- -------- -------- ---------- ---------- -------- --------
Total Distributions .................... (135,270) (68,220) (15,477) (732) (59,448) (48,419) (4,045) (2,799)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .......... 371,542 468,283 133,402 86,594 187,108 394,468 54,735 44,516
Reinvestment of Cash Distributions ... 111,671 58,468 13,361 546 48,431 40,271 3,784 2,692
Cost of Shares Repurchased ........... (369,739) (195,046) (44,487) (31,035) (439,271) (362,047) (47,301) (53,242)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets
From Trust Share Transactions ........ 113,474 331,705 102,276 56,105 (203,732) 72,692 11,218 (6,034)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Investor Shares:
Proceeds from Shares Issued .......... 31,177 32,292 10,027 4,519 21,971 25,080 1,315 2,054
Reinvestment of Cash Distributions ... 12,291 5,319 948 14 7,818 6,057 155 93
Cost of Shares Repurchased ........... (19,420) (13,939) (2,010) (875) (34,867) (43,510) (844) (891)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets
From Investor Share Transactions ... 24,048 23,672 8,965 3,658 (5,078) (12,373) 626 1,256
---------- ---------- -------- -------- ---------- ---------- -------- --------
Flex Shares:
Proceeds from Shares Issued .......... 24,893 -- 5,125 -- 10,505 -- 3,359 --
Reinvestment of Cash Distributions ... 1,301 -- 163 -- 230 -- 49 --
Cost of Shares Repurchased ........... (1,416) -- (450) -- (641) -- (428) --
---------- ---------- -------- -------- ---------- ---------- -------- --------
Increase in Net Assets From Flex
Share Transactions ................... 24,778 -- 4,838 -- 10,094 -- 2,980 --
---------- ---------- -------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets
From Share Transactions ............ 162,300 355,377 116,079 59,763 (198,716) 60,319 14,824 (4,778)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Total Increase (Decrease) in
Net Assets ....................... 317,061 450,562 143,998 72,867 38,465 82,415 26,849 (74)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Net Assets:
Beginning of Period .................... 1,084,233 633,671 132,907 60,040 1,145,080 1,062,665 92,816 92,890
---------- ---------- -------- -------- ---------- ---------- -------- --------
End of Period .......................... $1,401,294 $1,084,233 $276,905 $132,907 $1,183,545 $1,145,080 $119,665 $ 92,816
========== ========== ======== ======== ========== ========== ======== ========
Shares Issued and Redeemed(1):
Trust Shares:
Shares Issued ........................ 29,898 43,588 10,952 8,666 13,624 33,987 4,974 4,636
Shares Issued in Lieu of Cash
Distributions ...................... 9,282 5,715 1,144 54 3,617 3,668 346 283
Shares Redeemed ...................... (30,154) (18,063) (3,620) (3,090) (32,204) (31,242) (4,335) (5,520)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Net Trust Share Transactions ........... 9,026 31,240 8,476 5,630 (14,963) 6,413 985 (601)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Investor Shares:
Shares Issued ........................ 2,522 2,985 824 448 1,605 2,153 119 212
Shares Issued in Lieu of Cash
Distributions ...................... 1,023 521 82 1 585 555 14 10
Shares Redeemed ...................... (1,569) (1,297) (165) (86) (2,576) (3,751) (76) (92)
---------- ---------- -------- -------- ---------- ---------- -------- --------
Net Investor Share Transactions ........ 1,976 2,209 741 363 (386) (1,043) 57 130
---------- ---------- -------- -------- ---------- ---------- -------- --------
Flex Shares:
Shares Issued ........................ 2,014 -- 419 -- 768 -- 305 --
Shares Issued in Lieu of Cash
Distributions ...................... 108 -- 14 -- 17 -- 5 --
Shares Redeemed ...................... (113) -- (37) -- (46) -- (38) --
---------- ---------- -------- -------- ---------- ---------- -------- --------
Net Flex Share Transactions ............ 2,009 -- 396 -- 739 -- 272 --
========== ========== ======== ======== ========== ========== ======== ========
<FN>
*Commencement of operations.
Amounts designated as "--" are either $0 or round to $0.
</FN>
</TABLE>
108
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
EQUITY EQUITY
INDEX FUND FUND SUNBELT EQUITY FUND
-------------------- ---------- ---------------------
06/01/95- 06/06/94-* 12/01/95-* 06/01/95- 01/03/94-*
5/31/96 05/31/95 05/31/96 05/31/96 05/31/95
-------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .................. $ 800 $ 583 $ 986 $ (1,275) $ (390)
Net Realized Gain (Loss) on Investments 1,134 28 4,059 39,898 (10,446)
Net Realized Gain (Loss) on Foreign
Currency Transactions ................ -- 42 (265) -- --
Net Change in Unrealized Appreciation
(Depreciation) on Foreign Currency
and Translation of Other Assets and
Liabilities in Foreign Currency ...... (7) 3 (10) -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ........ 6,362 2,605 13,617 84,777 20,987
------- ------- -------- -------- --------
Increase in Net Assets from Operations 8,289 3,261 18,387 123,400 10,151
------- ------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ......................... (1,048) (143) -- -- --
Investor Shares ...................... (59) (4) -- -- --
Flex Shares .......................... (7) -- -- -- --
Capital Gains:
Trust Shares ......................... (743) (31) -- (5,188) (999)
Investor Shares ...................... (43) (2) -- (426) (89)
Flex Shares .......................... (6) -- -- (20) --
------- ------- -------- -------- --------
Total Distributions .................... (1,906) (180) -- (5,634) (1,088)
------- ------- -------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .......... 62,965 96,472 212,805 132,237 168,189
Reinvestment of Cash Distributions ... 1,417 115 -- 4,956 948
Cost of Shares Repurchased ........... (68,891) (10,101) (17,640) (92,700) (46,896)
------- ------- -------- -------- --------
Increase (Decrease) in Net Assets
From Trust Share Transactions ........ (4,509) 86,486 195,165 44,493 122,241
------- ------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued .......... 3,017 4,324 3,467 5,187 10,546
Reinvestment of Cash Distributions ... 101 5 -- 426 89
Cost of Shares Repurchased ........... (1,782) (490) (220) (7,209) (5,208)
------- ------- -------- -------- --------
Increase (Decrease) in Net Assets
From Investor Share Transactions ... 1,336 3,839 3,247 (1,596) 5,427
------- ------- -------- -------- --------
Flex Shares:
Proceeds from Shares Issued .......... 992 -- 911 2,489 --
Reinvestment of Cash Distributions ... 13 -- -- 20 --
Cost of Shares Repurchased ........... (127) -- (3) (123) --
------- ------- -------- -------- --------
Increase in Net Assets From Flex
Share Transactions ................... 878 -- 908 2,386 --
------- ------- -------- -------- --------
Increase (Decrease) in Net Assets
From Share Transactions ............ (2,295) 90,325 199,320 45,283 127,668
------- ------- -------- -------- --------
Total Increase (Decrease) in
Net Assets ....................... 4,088 93,406 217,707 163,049 136,731
------- ------- -------- -------- --------
Net Assets:
Beginning of Period .................... 93,406 -- -- 281,088 144,357
------- ------- -------- -------- --------
End of Period .......................... $97,494 $93,406 $217,707 $444,137 $281,088
======= ======= ======== ======== ========
Shares Issued and Redeemed(1):
Trust Shares:
Shares Issued ........................ 5,971 9,758 20,338 10,848 17,356
Shares Issued in Lieu of Cash
Distributions ...................... 134 12 -- 437 96
Shares Redeemed ...................... (6,536) (1,035) (1,635) (7,882) (4,848)
------- ------- -------- -------- --------
Net Trust Share Transactions ........... (431) 8,735 18,703 3,403 12,604
------- ------- -------- -------- --------
Investor Shares:
Shares Issued ........................ 286 438 324 428 1,095
Shares Issued in Lieu of Cash
Distributions ...................... 10 1 -- 38 9
Shares Redeemed ...................... (170) (51) (21) (614) (537)
------- ------- -------- -------- --------
Net Investor Share Transactions ........ 126 388 303 (148) 567
------- ------- -------- -------- --------
Flex Shares:
Shares Issued ........................ 95 -- 84 202 --
Shares Issued in Lieu of Cash
Distributions ...................... 1 -- -- 2 --
Shares Redeemed ...................... (12) -- -- (10) --
------- ------- -------- -------- --------
Net Flex Share Transactions ............ 84 -- 84 194 --
======= ======= ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT GRADE FLORIDA TENNESSEE
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
BOND FUND BOND FUND BOND FUND
-------------------- -------------------- --------------------
06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94-
05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .................. $ 5,851 $ 4,295 $ 1,235 $ 395 $ 185 $ 103
Net Realized Gain (Loss) on Investments 5,634 2,511 220 85 13 (11)
Net Realized Gain (Loss) on Foreign
Currency Transactions ................ -- -- -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Foreign Currency
and Translation of Other Assets and
Liabilities in Foreign Currency ...... -- -- -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ........ (3,672) 3,246 (723) 421 (96) 99
-------- -------- ------- ------- ------ ------
Increase in Net Assets from Operations 7,813 10,052 732 901 102 191
-------- -------- ------- ------- ------ ------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ......................... (4,292) (2,582) (996) (264) (80) (45)
Investor Shares ...................... (1,492) (1,658) (171) (130) (54) (58)
Flex Shares .......................... (120) -- (65) -- (51) --
Capital Gains:
Trust Shares ......................... (3,335) (17) (111) -- -- --
Investor Shares ...................... (1,295) (11) (21) -- -- --
Flex Shares .......................... (137) -- (10) -- -- --
-------- -------- ------- ------- ------ ------
Total Distributions .................... (10,671) (4,268) (1,374) (394) (185) (103)
-------- -------- ------- ------- ------ ------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .......... 87,347 51,898 30,124 8,390 414 1,263
Reinvestment of Cash Distributions ... 4,062 1,220 228 83 36 29
Cost of Shares Repurchased ........... (42,946) (23,091) (9,139) (1,914) (264) (274)
-------- -------- ------- ------- ------ ------
Increase (Decrease) in Net Assets
From Trust Share Transactions ........ 48,463 30,027 21,213 6,559 186 1,018
-------- -------- ------- ------- ------ ------
Investor Shares:
Proceeds from Shares Issued .......... 4,535 6,818 1,865 1,793 668 398
Reinvestment of Cash Distributions ... 2,347 1,410 127 97 35 45
Cost of Shares Repurchased ........... (10,550) (14,915) (1,235) (990) (333) (436)
-------- -------- ------- ------- ------ ------
Increase (Decrease) in Net Assets
From Investor Share Transactions ... (3,668) (6,687) 757 900 370 7
-------- -------- ------- ------- ------ ------
Flex Shares:
Proceeds from Shares Issued .......... 6,823 -- 2,844 -- 2,235 --
Reinvestment of Cash Distributions ... 222 -- 50 -- 36 --
Cost of Shares Repurchased ........... (1,413) -- (153) -- (215) --
-------- -------- ------- ------- ------ ------
Increase in Net Assets From Flex
Share Transactions ................... 5,632 -- 2,741 -- 2,056 --
-------- -------- ------- ------- ------ ------
Increase (Decrease) in Net Assets
From Share Transactions ............ 50,427 23,340 24,711 7,459 2,612 1,025
-------- -------- ------- ------- ------ ------
Total Increase (Decrease) in
Net Assets ....................... 47,569 29,124 24,069 7,966 2,529 1,113
-------- -------- ------- ------- ------ ------
Net Assets:
Beginning of Period .................... 119,901 90,777 13,438 5,472 2,834 1,721
-------- -------- ------- ------- ------ ------
End of Period .......................... $167,470 $119,901 $37,507 $13,438 $5,363 $2,834
======== ======== ======= ======= ====== ======
Shares Issued and Redeemed(1):
Trust Shares:
Shares Issued ........................ 7,736 4,811 2,945 857 43 137
Shares Issued in Lieu of Cash
Distributions ...................... 362 113 22 9 4 3
Shares Redeemed ...................... (3,816) (2,168) (902) (199) (28) (29)
-------- -------- ------- ------- ------ ------
Net Trust Share Transactions ........... 4,282 2,756 2,065 667 19 111
-------- -------- ------- ------- ------ ------
Investor Shares:
Shares Issued ........................ 401 630 182 183 70 43
Shares Issued in Lieu of Cash
Distributions ...................... 208 131 12 10 4 5
Shares Redeemed ...................... (934) (1,389) (120) (101) (35) (47)
-------- -------- ------- ------- ------ ------
Net Investor Share Transactions ........ (325) (628) 74 92 39 1
-------- -------- ------- ------- ------ ------
Flex Shares:
Shares Issued ........................ 603 -- 277 -- 233 --
Shares Issued in Lieu of Cash
Distributions ...................... 20 -- 5 -- 4 --
Shares Redeemed ...................... (125) -- (15) -- (23) --
-------- -------- ------- ------- ------ ------
Net Flex Share Transactions ............ 498 -- 267 -- 214 --
======== ======== ======= ======= ====== ======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
109
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000) (concluded)
================================================================================
STI CLASSIC FUNDS FOR THE YEAR ENDED MAY 31, 1996
<TABLE>
<CAPTION>
GEORGIA
TAX-EXEMPT INVESTMENT GRADE SHORT-TERM BOND
BOND FUND BOND FUND FUND
------------------- ------------------- -------------------
06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94-
05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income ........................ $ 971 $ 598 $ 35,694 $ 32,705 $ 4,224 $ 2,786
Net Realized Gain (Loss) on Investments ...... 330 (92) 19,716 (17,663) 1,358 (854)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (789) 488 (32,383) 38,279 (2,395) 2,073
------- ------- -------- -------- -------- -------
Increase in Net Assets from Operations ... 512 994 23,027 53,321 3,187 4,005
------- ------- -------- -------- -------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ............................... (747) (459) (33,703) (30,731) (4,065) (2,639)
Investor Shares ............................ (139) (137) (1,908) (1,979) (133) (144)
Flex Shares ................................ (88) -- (114) -- (26) --
Capital Gains:
Trust Shares ............................... (26) -- -- (181) (124) --
Investor Shares ............................ (6) -- -- (12) (4) --
Flex Shares ................................ (4) -- -- -- (1) --
------- ------- -------- -------- -------- -------
Total Distributions ...................... (1,010) (596) (35,725) (32,903) (4,353) (2,783)
------- ------- -------- -------- -------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ................ 17,893 12,139 203,235 209,252 60,843 34,765
Reinvestment of Cash Distributions ......... 215 107 26,403 28,634 2,588 1,886
Cost of Shares Redeemed .................... (7,944) (3,723) (161,583) (174,411) (32,113) (11,630)
------- ------- -------- -------- -------- -------
Increase (Decrease) in Net Assets From
Trust Share Transactions 10,164 8,523 68,055 63,475 31,318 25,021
------- ------- -------- -------- -------- -------
Investor Shares:
Proceeds from Shares Issued ................ 661 1,052 8,832 6,058 642 1,244
Reinvestment of Cash Distributions ......... 109 104 1,510 1,695 90 110
Cost of Shares Redeemed .................... (596) (1,260) (7,248) (10,879) (606) (1,189)
------- ------- -------- -------- -------- -------
Increase (Decrease) in Net Assets From
Investor Share Transactions ................ 174 (104) 3,094 (3,126) 126 165
------- ------- -------- -------- -------- -------
Flex Shares:
Proceeds from Shares Issued ................ 4,355 -- 5,179 -- 1,014 --
Reinvestment of Cash Distributions ......... 75 -- 88 -- 22 --
Cost of Shares Redeemed .................... (150) -- (508) -- (53) --
------- ------- -------- -------- -------- -------
Increase in Net Assets From Flex
Share Transactions ......................... 4,280 -- 4,759 -- 983 --
------- ------- -------- -------- -------- -------
Increase (Decrease) in Net Assets From
Share Transactions ....................... 14,618 8,419 75,908 60,349 32,427 25,186
------- ------- -------- -------- -------- -------
Total Increase (Decrease) in Net Assets .. 14,120 8,817 63,210 80,767 31,261 26,408
------- ------- -------- -------- -------- -------
Net Assets:
Beginning of Period .......................... 16,455 7,638 577,080 496,313 63,561 37,153
------- ------- -------- -------- -------- -------
End of Period ................................ $30,575 $16,455 $640,290 $577,080 $ 94,822 $63,561
======= ======= ======== ======== ======== =======
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued .............................. 1,832 1,295 19,682 21,353 6,066 3,561
Shares Issued in Lieu of Cash Distributions 22 11 2,550 2,923 258 193
Shares Redeemed ............................ (823) (398) (15,629) (17,890) (3,190) (1,201)
------- ------- -------- -------- -------- -------
Net Trust Share Transactions ............. 1,031 908 6,603 6,386 3,134 2,553
------- ------- -------- -------- -------- -------
Investor Shares:
Shares Issued .............................. 68 113 856 618 64 128
Shares Issued in Lieu of Cash Distributions 11 11 146 173 9 11
Shares Redeemed ............................ (61) (135) (701) (1,115) (60) (121)
------- ------- -------- -------- -------- -------
Net Investor Share Transactions .......... 18 (11) 301 (324) 13 18
------- ------- -------- -------- -------- -------
Flex Shares:
Shares Issued .............................. 448 -- 499 -- 101 --
Shares Issued in Lieu of Cash Distributions 8 -- 8 -- 2 --
Shares Redeemed ............................ (15) -- (49) -- (5) --
------- ------- -------- -------- -------- -------
Net Flex Share Transactions .............. 441 -- 458 -- 98 --
======= ======= ======== ======== ======== =======
<FN>
*Commencement of operations
Amounts designated as "--" are either $0 or round to $0.
</FN>
</TABLE>
110
<PAGE>
<TABLE>
<CAPTION>
SHORT-TERM LIMITED-TERM
U.S. TREASURY FEDERAL MORTGAGE U. S. GOVERNMENT
SECURITIES FUND SECURITIES FUND SECURITIES FUND
------------------- --------------------- ---------------------
06/01/95- 06/01/94- 06/01/95- 06/07/94-* 06/01/95- 06/09/94-*
05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95
--------- --------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income ........................ $ 915 $ 679 $ 3,181 $ 1,515 $ 602 $ 69
Net Realized Gain (Loss) on Investments ...... 95 (160) 389 (267) (24) 6
Net Change in Unrealized Appreciation
(Depreciation) on Investments (294) 375 (1,359) 910 (557) 130
------- ------- -------- -------- ------- ------
Increase in Net Assets from Operations ... 716 894 2,211 2,158 21 205
------- ------- -------- -------- ------- ------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ............................... (551) (415) (3,012) (1,573) (453) (54)
Investor Shares ............................ (308) (264) (68) (8) (68) (15)
Flex Shares ................................ (56) -- (37) -- (81) --
Capital Gains:
Trust Shares ............................... -- -- -- -- (18) --
Investor Shares ............................ -- -- -- -- (3) --
Flex Shares ................................ -- -- -- -- (5) --
------- ------- -------- -------- ------- ------
Total Distributions ...................... (915) (679) (3,117) (1,581) (628) (69)
------- ------- -------- -------- ------- ------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ................ 5,744 7,487 46,841 50,881 9,824 3,385
Reinvestment of Cash Distributions ......... 334 271 1,846 1,254 144 15
Cost of Shares Redeemed .................... (5,409) (11,026) (16,287) (10,879) (2,556) (224)
------- ------- -------- -------- ------- ------
Increase (Decrease) in Net Assets From
Trust Share Transactions 669 (3,268) 32,400 41,256 7,412 3,176
------- ------- -------- -------- ------- ------
Investor Shares:
Proceeds from Shares Issued ................ 966 4,263 2,404 633 2,290 562
Reinvestment of Cash Distributions ......... 278 260 51 7 50 8
Cost of Shares Redeemed .................... (4,147) (2,291) (533) (27) (456) (2)
------- ------- -------- -------- ------- ------
Increase (Decrease) in Net Assets From
Investor Share Transactions ................ (2,903) 2,232 1,922 613 1,884 568
------- ------- -------- -------- ------- ------
Flex Shares:
Proceeds from Shares Issued ................ 2,603 -- 1,538 -- 3,019 --
Reinvestment of Cash Distributions ......... 39 -- 27 -- 59 --
Cost of Shares Redeemed .................... (188) -- (196) -- (148) --
------- ------- -------- -------- ------- ------
Increase in Net Assets From Flex
Share Transactions ......................... 2,454 -- 1,369 -- 2,930 --
------- ------- -------- -------- ------- ------
Increase (Decrease) in Net Assets From
Share Transactions ....................... 220 (1,036) 35,691 41,869 12,226 3,744
------- ------- -------- -------- ------- ------
Total Increase (Decrease) in Net Assets .. 21 (821) 34,785 42,446 11,619 3,880
------- ------- -------- -------- ------- ------
Net Assets:
Beginning of Period .......................... 16,743 17,564 42,446 -- 3,880 --
------- ------- -------- -------- ------- ------
End of Period ................................ $16,764 $16,743 $ 77,231 $ 42,446 $15,499 $3,880
======= ======= ======== ======== ======= ======
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued .............................. 579 765 4,639 5,110 952 342
Shares Issued in Lieu of Cash Distributions 34 28 182 126 14 2
Shares Redeemed ............................ (547) (1,122) (1,610) (1,101) (249) (23)
------- ------- -------- -------- ------- ------
Net Trust Share Transactions ............. 66 (329) 3,211 4,135 717 321
------- ------- -------- -------- ------- ------
Investor Shares:
Shares Issued .............................. 97 433 238 64 225 56
Shares Issued in Lieu of Cash Distributions 28 27 5 1 5 1
Shares Redeemed ............................ (418) (234) (53) (3) (45) --
------- ------- -------- -------- ------- ------
Net Investor Share Transactions .......... (293) 226 190 62 185 57
------- ------- -------- -------- ------- ------
Flex Shares:
Shares Issued .............................. 262 -- 152 -- 294 --
Shares Issued in Lieu of Cash Distributions 4 -- 2 -- 6 --
Shares Redeemed ............................ (19) -- (19) -- (15) --
------- ------- -------- -------- ------- ------
Net Flex Share Transactions .............. 247 -- 135 -- 285 --
======= ======= ======== ======== ======= ======
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
PRIME QUALITY SECURITIES TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
---------------------- -------------------- --------------------
06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94-
05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income ........................ $ 54,132 $ 38,348 $ 20,311 $ 15,936 $ 12,217 $ 8,400
Net Realized Gain (Loss) on Investments ...... (82) 71 90 (98) 9 (14)
Net Change in Unrealized Appreciation
(Depreciation) on Investments -- -- -- -- -- --
---------- --------- ---------- --------- --------- --------
Increase in Net Assets from Operations ... 54,050 38,419 20,401 15,838 12,226 8,386
---------- --------- ---------- --------- --------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ............................... (44,689) (32,217) (17,516) (14,171) (9,342) (6,323)
Investor Shares ............................ (9,442) (6,118) (2,795) (1,765) (2,872) (2,044)
Flex Shares ................................ -- -- -- -- -- --
Capital Gains:
Trust Shares ............................... -- -- -- -- -- --
Investor Shares ............................ -- -- -- -- -- --
Flex Shares ................................ -- -- -- -- -- --
---------- --------- ---------- --------- --------- --------
Total Distributions ...................... (54,131) (38,335) (20,311) (15,936) (12,214) (8,367)
---------- --------- ---------- --------- --------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ................ 2,131,623 2,066,213 1,156,411 1,082,598 719,678 493,579
Reinvestment of Cash Distributions ......... 1,223 538 60 14 3 1
Cost of Shares Redeemed .................... (1,881,171) (1,851,031) (1,265,169) (957,634) (661,491) (422,164)
---------- --------- ---------- --------- --------- --------
Increase (Decrease) in Net Assets From
Trust Share Transactions 251,675 215,720 (108,698) 124,978 58,190 71,416
---------- --------- ---------- --------- --------- --------
Investor Shares:
Proceeds from Shares Issued ................ 1,012,310 1,019,462 231,451 338,408 322,435 235,805
Reinvestment of Cash Distributions ......... 8,255 5,689 2,414 1,594 2,480 1,523
Cost of Shares Redeemed .................... (962,468) (996,964) (221,906) (325,755) (317,341) (211,360)
---------- --------- ---------- --------- --------- --------
Increase (Decrease) in Net Assets From
Investor Share Transactions ................ 58,097 28,187 11,959 14,247 7,574 25,968
---------- --------- ---------- --------- --------- --------
Flex Shares:
Proceeds from Shares Issued ................ -- -- -- -- -- --
Reinvestment of Cash Distributions ......... -- -- -- -- -- --
Cost of Shares Redeemed .................... -- -- -- -- -- --
---------- --------- ---------- --------- --------- --------
Increase in Net Assets From Flex
Share Transactions ......................... -- -- -- -- -- --
---------- --------- ---------- --------- --------- --------
Increase (Decrease) in Net Assets From
Share Transactions ....................... 309,772 243,907 (96,739) 139,225 65,764 97,384
---------- --------- ---------- --------- --------- --------
Total Increase (Decrease) in Net Assets .. 309,691 243,991 (96,649) 139,127 65,776 97,403
---------- --------- ---------- --------- --------- --------
Net Assets:
Beginning of Period .......................... 956,805 712,814 480,750 341,623 303,060 205,657
---------- --------- ---------- --------- --------- --------
End of Period ................................ $1,266,496 $ 956,805 $ 384,101 $ 480,750 $ 368,836 $303,060
========== ========= ========== ========= ========= ========
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued .............................. 2,131,623 2,066,213 1,156,411 1,082,598 719,678 493,579
Shares Issued in Lieu of Cash Distributions 1,223 538 60 14 3 1
Shares Redeemed ............................ (1,881,171) (1,851,031) (1,265,169) (957,634) (661,491) (422,164)
---------- --------- ---------- --------- --------- --------
Net Trust Share Transactions ............. 251,675 215,720 (108,698) 124,978 58,190 71,416
---------- --------- ---------- --------- --------- --------
Investor Shares:
Shares Issued .............................. 1,012,310 1,019,462 231,451 338,408 322,435 235,805
Shares Issued in Lieu of Cash Distributions 8,255 5,689 2,414 1,594 2,480 1,523
Shares Redeemed ............................ (962,468) (996,964) (221,906) (325,755) (317,341) (211,360)
---------- --------- ---------- --------- --------- --------
Net Investor Share Transactions .......... 58,097 28,187 11,959 14,247 7,574 25,968
---------- --------- ---------- --------- --------- --------
Flex Shares:
Shares Issued .............................. -- -- -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed ............................ -- -- -- -- -- --
---------- --------- ---------- --------- --------- --------
Net Flex Share Transactions .............. -- -- -- -- -- --
========== ========= ========== ========= ========= ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
111
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET VALUE NET AND UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) FROM NET FROM REALIZED VALUE END
OF PERIOD INCOME ON INVESTMENTS INVESTMENT INCOME CAPITAL GAINS OF PERIOD
--------------- ---------- -------------- ----------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
VALUE INCOME STOCK FUND
Trust Shares
1996 $11.59 $0.35 $ 2.71 $(0.34) $(1.16) $13.15
1995 10.54 0.32 1.56 (0.32) (0.51) 11.59
1994 10.23 0.29 0.70 (0.32) (0.36) 10.54
1993(1) 10.00 0.11 0.16 (0.04) -- 10.23
Investor Shares
1996 $11.58 $0.30 $ 2.71 $(0.30) $(1.16) $13.13
1995 10.52 0.28 1.56 (0.27) (0.51) 11.58
1994 10.23 0.26 0.67 (0.27) (0.37) 10.52
1993(2) 9.73 0.09 0.44 (0.03) -- 10.23
Flex Shares
1996(3) $11.59 $0.26 $ 2.65 $(0.26) $(1.16) $13.08
MID-CAP EQUITY FUND (A)
Trust Shares
1996 $11.00 $0.08 $ 2.63 $(0.08) $(0.87) $12.76
1995 9.85 0.08 1.15 (0.08) -- 11.00
1994(4) 10.00 0.02 (0.16) (0.01) -- 9.85
Investor Shares
1996 $10.99 $0.03 $ 2.62 $(0.03) $(0.87) $12.74
1995 9.84 0.03 1.15 (0.03) -- 10.99
1994(5) 10.00 0.01 (0.17) -- -- 9.84
Flex Shares
1996(6) $11.13 -- $ 2.45 $(0.02) $(0.87) $12.69
CAPITAL GROWTH FUND
Trust Shares
1996 $12.18 $0.12 $ 3.32 $(0.13) $(0.59) $14.90
1995 11.99 0.16 0.57 (0.14) (0.40) 12.18
1994 11.95 0.16 0.31 (0.17) (0.26) 11.99
1993(7) 10.36 0.12 1.57 (0.10) -- 11.95
Investor Shares
1996 $12.17 $0.03 $ 3.32 $(0.04) $(0.59) $14.89
1995 11.98 0.09 0.57 (0.07) (0.40) 12.17
1994 11.93 0.09 0.31 (0.09) (0.26) 11.98
1993(8) 10.00 0.06 1.93 (0.06) -- 11.93
Flex Shares
1996(3) $12.20 $0.02 $ 3.26 $(0.05) $(0.59) $14.84
BALANCED FUND
Trust Shares
1996 $10.26 $0.33 $ 1.41 $(0.34) $(0.11) $11.55
1995 9.76 0.33 0.49 (0.32) -- 10.26
1994(9) 10.00 0.11 (0.29) (0.06) -- 9.76
Investor Shares
1996 $10.30 $0.30 $ 1.41 $(0.30) $(0.11) $11.60
1995 9.79 0.28 0.51 (0.28) -- 10.30
1994(10) 10.00 0.03 (0.24) -- -- 9.79
Flex Shares
1996(11) $10.36 $0.24 $ 1.29 $(0.25) $(0.11) $11.53
INTERNATIONAL EQUITY
INDEX FUND
Trust Shares
1996 $10.24 $0.10 $ 0.84 $(0.13) $(0.09) $10.96
1995(12) 10.00 0.08 0.19 (0.02) (0.01) 10.24
Investor Shares
1996 $10.20 $0.05 $ 0.85 $(0.13) $(0.09) $10.88
1995(12) 10.00 0.05 0.17 (0.01) (0.01) 10.20
Flex Shares
1996(13) $10.24 -- $ 0.82 $(0.10) $(0.09) $10.87
<FN>
* Annualized.
(DAGGER) Cumulative since inception.
(1) Commenced operations on February 12, 1993.
(2) Commenced operations on February 17, 1993.
(3) Commenced operations on June 1, 1995.
(4) Commenced operations on February 2, 1994.
(5) Commenced operations on February 1, 1994.
(6) Commenced operations on June 5, 1995.
</FN>
</TABLE>
112
<PAGE>
================================================================================
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
RATIO OF NET EXPENSES TO INCOME (LOSS)
RATIO OF INVESTMENT AVERAGE NET TO AVERAGE NET
NET ASSETS EXPENSES TO INCOME (LOSS) ASSETS EXCLUDING ASSETS (EXCLUDING PORTFOLIO
TOTAL END OF AVERAGE TO AVERAGE WAIVERS AND WAIVERS AND TURNOVER
RETURN (B) PERIOD (000) NET ASSETS NET ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE
---------- ------------ ----------- ------------- ---------------- ----------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
VALUE INCOME STOCK FUND
Trust Shares
1996 27.91% $1,244,399 0.92% 2.86% 0.92% 2.86% 133.99%
1995 19.06% 991,977 0.95% 3.16% 0.95% 3.16% 125.71%
1994 9.95% 573,082 0.88% 3.21% 0.97% 3.12% 149.28%
1993(1) 9.05%* 137,761 0.80%* 4.32%* 0.96%* 4.16%* 34.71%
Investor Shares
1996 27.39% $ 130,597 1.30% 2.47% 1.37% 2.40% 133.99%
1995 18.71% 92,256 1.30% 2.80% 1.41% 2.69% 125.71%
1994 9.27% 60,589 1.25% 2.80% 1.44% 2.61% 149.28%
1993(2) 19.42%* 24,779 1.15%* 4.51%* 1.63%* 4.04%* 34.71%
Flex Shares
1996(3) 26.52%* $ 26,298 2.00%* 1.72%* 2.15%* 1.57%* 133.99%
MID-CAP EQUITY FUND (A)
Trust Shares
1996 25.54% $ 253,905 1.15% 0.70% 1.29% 0.56% 115.62%
1995 12.56% 125,562 1.15% 0.88% 1.32% 0.71% 65.63%
1994(4) (1.39%)(DAGGER) 57,036 1.15%* 1.20%* 1.68%* 0.67%* 7.99%
Investor Shares
1996 24.93% $ 17,971 1.60% 0.25% 1.96% (0.11%) 115.62%
1995 11.96% 7,345 1.60% 0.43% 2.27% (0.24%) 65.63%
1994(5) (1.60%)(DAGGER) 3,004 1.60%* 0.74%* 4.60%* (2.26%)* 7.99%
Flex Shares
1996(6) 23.00%* $ 5,029 2.20%* (0.37%)* 3.04%* (1.21%)* 115.62%
CAPITAL GROWTH FUND
Trust Shares
1996 28.97% $ 981,498 1.15% 0.90% 1.27% 0.78% 156.46%
1995 6.63% 984,205 1.15% 1.38% 1.28% 1.25% 127.79%
1994 3.87% 891,870 1.15% 1.25% 1.29% 1.11% 123.87%
1993(7) 17.90%* 507,692 1.15%* 1.43%* 1.28%* 1.30%* 95.02%
Investor Shares
1996 28.18% $ 191,078 1.80% 0.24% 2.08% (0.04%) 156.46%
1995 5.93% 160,875 1.80% 0.73% 2.10% 0.43% 127.79%
1994 3.26% 170,795 1.80% 0.64% 2.11% 0.33% 123.87%
1993(8) 20.49%* 131,858 1.80%* 0.81%* 2.06%* 0.55%* 95.02%
Flex Shares
1996(3) 27.48%* $ 10,969 2.27%* (0.29%)* 2.68%* (0.70%)* 156.46%
BALANCED FUND
Trust Shares
1996 17.26% $ 111,638 0.95% 3.00% 1.09% 2.86% 154.63%
1995 8.72% 89,051 0.95% 3.44% 1.11% 3.28% 156.61%
1994(9) (1.78%)(DAGGER) 90,579 0.95%* 2.76%* 1.25%* 2.46%* 105.65%
Investor Shares
1996 16.88% $ 4,896 1.25% 2.70% 1.89% 2.06% 154.63%
1995 8.29% 3,765 1.25% 3.17% 1.80% 2.62% 156.61%
1994(10) (2.10%)(DAGGER) 2,311 1.25%* 2.46%* 4.91%* (1.20%)* 105.65%
Flex Shares
1996(11) 15.58%* $ 3,131 2.00%* 1.85%* 2.97%* 0.88%* 154.63%
INTERNATIONAL EQUITY
INDEX FUND
Trust Shares
1996 9.29% $ 90,980 1.05% 0.84% 1.19% 0.70% 30.46%
1995(12) 2.69%(DAGGER) 89,446 1.05%* 1.13%* 1.31%* 0.87%* 10.37%
Investor Shares
1996 8.90% $ 5,597 1.45% 0.48% 2.06% (0.13%) 30.46%
1995(12) 2.18%(DAGGER) 3,960 1.45%* 0.67%* 2.44%* (0.32%)* 10.37%
Flex Shares
1996(13) 8.32%(DAGGER) $ 917 2.10%* (0.24%)* 4.14%* (2.28%)* 30.46%
<FN>
(7) Commenced operations on July 1, 1992.
(8) Commenced operations on June 9, 1992.
(9) Commenced operations on January 3, 1994.
(10) Commenced operations on January 4, 1994.
(11) Commenced operations on June 14, 1995.
(12) Commenced operations on June 6, 1994.
(13) Commenced operations on June 8, 1995.
(A) During the fiscal year ended May 31, 1996, the Aggressive Growth Fund
changed its name to the Mid-Cap Equity Fund.
(B) Total return figures do not reflect applicable sales loads.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
113
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
NET NET REALIZED AND DISTRIBUTIONS
NET ASSET VALUE INVESTMENT UNREALIZED FROM DISTRIBUTIONS NET ASSET
BEGINNING INCOME GAINS (LOSSES) NET INVESTMENT FROM REALIZED VALUE END
OF PERIOD (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD
--------------- ---------- ---------------- -------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY FUND
Trust Shares
1996(1) $10.00 $ 0.05 $ 1.35 -- -- $11.40
Investor Shares
1996(2) $10.44 $ 0.04 $ 0.90 -- -- $11.38
Flex Shares
1996(2) $10.44 $ 0.02 $ 0.91 -- -- $11.37
SUNBELT EQUITY FUND
Trust Shares
1996 $10.03 $(0.04) $ 4.32 -- $(0.20) $14.11
1995 9.70 (0.01) 0.38 -- (0.04) 10.03
1994(3) 10.00 -- (0.30) -- -- 9.70
Investor Shares
1996 $9.96 $(0.11) $ 4.30 -- $(0.20) $13.95
1995 9.69 (0.05) 0.36 -- (0.04) 9.96
1994(4) 10.00 (0.02) (0.29) -- -- 9.69
Flex Shares
1996(5) $10.20 $(0.07) $ 4.04 -- $(0.20) $13.97
INVESTMENT GRADE
TAX-EXEMPT BOND FUND
Trust Shares
1996 $11.28 $ 0.45 $ 0.19 $(0.45) $(0.37) $11.10
1995 10.68 0.46 0.60 (0.46) -- 11.28
1994(6) 11.37 0.22 (0.34) (0.22) (0.35) 10.68
Investor Shares
1996 $11.30 $ 0.41 $ 0.19 $(0.41) $(0.37) $11.12
1995 10.69 0.42 0.61 (0.42) -- 11.30
1994 10.79 0.33 0.25 (0.33) (0.35) 10.69
1993(7) 10.00 0.35 0.82 (0.35) (0.03) 10.79
Flex Shares
1996(8) $11.30 $ 0.37 $ 0.18 $(0.37) $(0.37) $11.11
FLORIDA TAX-EXEMPT
BOND FUND
Trust Shares
1996 $10.18 $ 0.46 $(0.07) $(0.46) $(0.05) $10.06
1995 9.75 0.44 0.43 (0.44) -- 10.18
1994(9) 10.00 0.13 (0.25) (0.13) -- 9.75
Investor Shares
1996 $10.18 $ 0.44 $(0.06) $(0.44) $(0.05) $10.07
1995 9.75 0.42 0.43 (0.42) -- 10.18
1994(10) 10.00 0.13 (0.25) (0.13) -- 9.75
Flex Shares
1996(8) $10.19 $ 0.39 $(0.06) $(0.39) $(0.05) $10.08
TENNESSEE TAX-EXEMPT
BOND FUND
Trust Shares
1996 $9.50 $ 0.43 $(0.11) $(0.42) $ -- $ 9.40
1995 9.22 0.44 0.28 (0.44) -- 9.50
1994(11) 10.00 0.12 (0.77) (0.13) -- 9.22
Investor Shares
1996 $9.53 $ 0.41 $(0.10) $(0.42) $ -- $ 9.42
1995 9.23 0.44 0.29 (0.43) -- 9.53
1994(12) 10.00 0.13 (0.77) (0.13) -- 9.23
Flex Shares
1996(5) $9.59 $ 0.37 $(0.18) $(0.37) $ -- $ 9.41
<FN>
* Annualized.
(DAGGER) Cumulative since inception.
(1) Commenced operations on December 1, 1995.
(2) Commenced operations on January 2, 1996.
(3) Commenced operations on January 3, 1994.
(4) Commenced operations on January 4, 1994.
(5) Commenced operations on June 5, 1995.
</FN>
</TABLE>
114
<PAGE>
<TABLE>
<CAPTION>
RATIO OF
RATIO OF RATIO OF NET INVESTMENT
RATIO OF NET INVESTMENT EXPENSES TO INCOME (LOSS) TO
NET ASSETS EXPENSES INCOME (LOSS) AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO
TOTAL END OF TO AVERAGE TO AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER
RETURN (A) PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE
---------- ------------ ---------- -------------- ------------------- ------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY FUND
Trust Shares
1996(1) 14.00%(DAGGER) $213,306 1.46%* 1.36%* 1.65%* 1.17%* 113.34%
Investor Shares
1996(2) 9.00%(DAGGER) $ 3,448 1.81%* 1.73%* 3.14%* 0.40%* 113.34%
Flex Shares
1996(2) 8.91%(DAGGER) $ 953 2.51%* 1.08%* 5.86%* (2.27)%* 113.34%
SUNBELT EQUITY FUND
Trust Shares
1996 43.19% $412,430 1.15% (0.34%) 1.28% (0.47%) 106.27%
1995 3.81% 258,908 1.15% (0.12%) 1.30% (0.27%) 80.03%
1994(3) (2.99%)(DAGGER) 128,280 1.15%* (0.19%)* 1.58%* (0.62%)* 21.42%
Investor Shares
1996 42.58% $ 29,002 1.60% (0.79%) 1.93% (1.12%) 106.27%
1995 3.20% 22,180 1.60% (0.57%) 1.98% (0.95%) 80.03%
1994(4) (3.10%)(DAGGER) 16,077 1.60%* (0.63%)* 2.04%* (1.07%)* 21.42%
Flex Shares
1996(5) 39.86%* $ 2,705 2.20%* (1.43%)* 3.62%* (2.85%)* 106.27%
INVESTMENT GRADE
TAX-EXEMPT BOND FUND
Trust Shares
1996 5.82% $124,507 0.75% 4.01% 0.89% 3.87% 513.90%
1995 10.21% 78,208 0.75% 4.34% 0.91% 4.18% 591.91%
1994(6) (1.10%)(DAGGER) 44,595 0.75%* 3.46%* 0.95%* 3.26%* 432.46%
Investor Shares
1996 5.40% $ 37,427 1.15% 3.61% 1.42% 3.34% 513.90%
1995 9.91% 41,693 1.15% 3.88% 1.43% 3.60% 591.91%
1994 5.37% 46,182 1.14% 2.96% 1.51% 2.59% 432.46%
1993(7) 11.88%* 15,844 1.12%* 3.61%* 1.83%* 2.90%* 344.87%
Flex Shares
1996(8) 4.91%* $ 5,536 1.63%* 3.12%* 2.25%* 2.50%* 513.90%
FLORIDA TAX-EXEMPT
BOND FUND
Trust Shares
1996 3.87% $ 30,790 0.65% 4.49% 0.88% 4.26% 62.68%
1995 9.26% 10,118 0.65% 4.63% 1.13% 4.15% 105.01%
1994(9) (1.19%)(DAGGER) 3,192 0.65%* 3.86%* 1.12%* 3.39%* 53.24%
Investor Shares
1996 3.76% $ 4,025 0.85% 4.28% 1.36% 3.77% 62.68%
1995 9.04% 3,320 0.85% 4.36% 1.50% 3.71% 105.01%
1994(10) (1.22%)(DAGGER) 2,280 0.85%* 3.67%* 3.20%* 1.32%* 53.24%
Flex Shares
1996(8) 3.27%* $ 2,692 1.35%* 3.79%* 2.54%* 2.60%* 62.68%
TENNESSEE TAX-EXEMPT
BOND FUND
Trust Shares
1996 3.43% $ 1,823 0.65% 4.49% 1.68% 3.46% 41.00%
1995 8.17% 1,664 0.65% 4.90% 2.65% 2.90% 27.73%
1994(11) (6.52%)(DAGGER) 594 0.65%* 4.24%* 1.43%* 3.46%* 13.05%
Investor Shares
1996 3.28% $ 1,523 0.85% 4.29% 2.08% 3.06% 41.00%
1995 8.24% 1,170 0.85% 4.70% 2.10% 3.45% 27.73%
1994(12) (6.39%)(DAGGER) 1,127 0.85%* 3.74%* 6.60%* (2.01%)* 13.05%
Flex Shares
1996(5) 1.98%* $ 2,017 1.34%* 3.80%* 2.74%* 2.40%* 41.00%
<FN>
(6) Commenced operations on October 21, 1993.
(7) Commenced operations on June 9, 1992.
(8) Commenced operations on June 1, 1995.
(9) Commenced operations on January 25, 1994.
(10) Commenced operations on January 18, 1994.
(11) Commenced operations on January 27, 1994.
(12) Commenced operations on January 19, 1994.
(A) Total return figures do not reflect applicable sales loads.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
115
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
NET REALIZED AND DISTRIBUTIONS
NET ASSET VALUE NET UNREALIZED FROM DISTRIBUTIONS NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) NET INVESTMENT FROM REALIZED VALUE END
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD
--------------- ---------- ---------------- -------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
GEORGIA TAX-EXEMPT
BOND FUND
Trust Shares
1996 $ 9.63 $0.43 $(0.05) $(0.43) $(0.02) $ 9.56
1995 9.42 0.42 0.21 (0.42) -- 9.63
1994 (1) 10.00 0.14 (0.58) (0.14) -- 9.42
Investor Shares
$ 9.65 $0.41 $(0.05) $(0.41) $(0.02) $ 9.58
1995 9.44 0.40 0.21 (0.40) -- 9.65
1994 (2) 10.00 0.13 (0.56) (0.13) -- 9.44
Flex Shares
1996(3) $ 9.72 $0.36 $(0.14) $(0.36) $(0.02) $ 9.56
INVESTMENT GRADE
BOND FUND
Trust Shares
1996 $10.26 $0.60 $(0.19) $(0.60) -- $10.07
1995 9.89 0.61 0.37 (0.61) -- 10.26
1994 10.45 0.50 (0.36) (0.50) $(0.20) 9.89
1993(4) 10.09 0.45 0.36 (0.45) -- 10.45
Investor Shares
1996 $10.26 $0.56 $(0.20) $(0.56) -- $10.06
1995 9.89 0.57 0.38 (0.58) -- 10.26
1994 10.44 0.46 (0.35) (0.46) $(0.20) 9.89
1993(5) 10.00 0.44 0.44 (0.44) -- 10.44
Flex Shares
1996(6) $10.33 $0.52 $(0.26) $(0.52) -- $10.07
SHORT-TERM BOND FUND
Trust Shares
1996 $ 9.98 $0.54 $(0.10) $(0.54) $(0.02) $ 9.86
1995 9.79 0.53 0.19 (0.53) -- 9.98
1994 10.01 0.42 (0.21) (0.42) (0.01) 9.79
1993(7) 10.00 0.08 0.01 (0.08) -- 10.01
Investor Shares
1996 $10.01 $0.52 $(0.10) $(0.53) $(0.02) $ 9.88
1995 9.81 0.51 0.19 (0.50) -- 10.01
1994 10.03 0.40 (0.21) (0.40) (0.01) 9.81
1993(8) 10.06 0.06 (0.03) (0.06) -- 10.03
Flex Shares
1996(9) $10.02 $0.47 $(0.12) $(0.47) $(0.02) $ 9.88
SHORT-TERM U.S. TREASURY
SECURITIES FUND
Trust Shares
1996 $ 9.93 $0.55 $(0.09) $(0.55) -- $ 9.84
1995 9.82 0.47 0.11 (0.47) -- 9.93
1994 9.98 0.33 (0.11) (0.33) $(0.05) 9.82
1993(7) 10.00 0.07 (0.02) (0.07) -- 9.98
Investor Shares
1996 $ 9.94 $0.54 $(0.10) $(0.54) -- $ 9.84
1995 9.83 0.46 0.11 (0.46) -- 9.94
1994 9.99 0.32 (0.12) (0.31) $(0.05) 9.83
1993(10) 10.01 0.06 (0.02) (0.06) -- 9.99
Flex Shares
1996(11) $ 9.96 $0.48 $(0.14) $(0.48) -- $ 9.82
<FN>
* Annualized.
(DAGGER) Cumulative since inception.
(1) Commenced operations on January 18, 1994.
(2) Commenced operations on January 19, 1994.
(3) Commenced operations on June 6, 1995.
(4) Commenced operations on July 16, 1992.
(5) Commenced operations on June 11, 1992.
</FN>
</TABLE>
116
<PAGE>
================================================================================
<TABLE>
<CAPTION>
RATIO OF
RATIO OF RATIO OF NET INVESTMENT
RATIO OF NET INVESTMENT EXPENSES TO INCOME (LOSS) TO
NET ASSETS EXPENSES INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO
TOTAL END OF TO AVERAGE AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER
RETURN (A) PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE
---------- ------------ ---------- ------------- ------------------- ------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
GEORGIA TAX-EXEMPT
BOND FUND
Trust Shares
1996 3.89% $ 22,950 0.65% 4.36% 0.89% 4.12% 60.02%
1995 6.94% 13,187 0.65% 4.56% 0.98% 4.23% 24.50%
1994 (1) (4.43%)(DAGGER) 4,338 0.65%* 4.12%* 1.06%* 3.71%* 25.90%
Investor Shares
3.69% $ 3,418 0.85% 4.17% 1.41% 3.61% 60.02%
1995 6.70% 3,268 0.85% 4.31% 1.43% 3.73% 24.50%
1994 (2) (4.29%)(DAGGER) 3,300 0.85%* 3.93%* 2.36%* 2.42%* 25.90%
Flex Shares
1996(3) 2.25%* $ 4,207 1.35%* 3.66%* 2.35%* 2.66%* 60.02%
INVESTMENT GRADE
BOND FUND
Trust Shares
1996 4.02% $599,514 0.75% 5.81% 0.87% 5.69% 184.33%
1995 10.39% 543,308 0.75% 6.22% 0.88% 6.09% 237.66%
1994 1.17% 460,538 0.75% 4.77% 0.88% 4.64% 259.19%
1993(4) 9.34%* 336,132 0.74%* 5.14%* 0.87%* 5.01%* 299.32%
Investor Shares
1996 3.50% $ 36,155 1.15% 5.40% 1.44% 5.11% 184.33%
1995 10.04% 33,772 1.15% 5.79% 1.49% 5.45% 237.66%
1994 0.86% 35,775 1.14% 4.39% 1.41% 4.12% 259.19%
1993(5) 9.21% 24,375 1.14%* 4.75%* 1.46%* 4.43%* 299.32%
Flex Shares
1996(6) 2.50%* $ 4,621 1.64%* 4.84%* 2.49%* 3.99%* 184.33%
SHORT-TERM BOND FUND
Trust Shares
1996 4.45% $ 91,156 0.65% 5.39% 0.81% 5.23% 162.62%
1995 7.60% 60,952 0.65% 5.49% 0.85% 5.29% 200.49%
1994 2.02% 34,772 0.65% 4.15% 0.85% 3.95% 74.85%
1993(7) 4.45%* 25,334 0.64%* 3.88%* 1.11%* 3.41%* 63.89%
Investor Shares
1996 4.23% $ 2,700 0.85% 5.20% 1.72% 4.33% 162.62%
1995 7.44% 2,609 0.85% 5.24% 1.56% 4.53% 200.49%
1994 1.81% 2,381 0.85% 3.94% 2.52% 2.27% 74.85%
1993(8) 1.65%* 716 0.85%* 3.85%* 7.22%* (2.52%)* 63.89%
Flex Shares
1996(9) 3.73%* $ 966 1.20%* 4.77%* 4.06%* 1.91%* 162.62%
SHORT-TERM U.S. TREASURY
SECURITIES FUND
Trust Shares
1996 4.73% $ 10,149 0.65% 5.56% 1.00% 5.21% 94.00%
1995 6.11% 9,599 0.65% 4.91% 1.08% 4.48% 87.98%
1994 2.17% 12,723 0.65% 3.23% 0.81% 3.07% 116.57%
1993(7) 2.22%* 30,336 0.63%* 3.34%* 1.04%* 2.93%* 36.44%
Investor Shares
1996 4.52% $ 4,192 0.80% 5.43% 1.32% 4.91% 94.00%
1995 6.03% 7,144 0.80% 4.74% 1.33% 4.21% 87.98%
1994 2.01% 4,841 0.78% 3.11% 1.41% 2.48% 116.57%
1993(10) 1.84%* 2,423 0.80%* 3.16%* 3.42%* 0.54%* 36.44%
Flex Shares
1996(11) 3.72%* $ 2,423 1.05%* 5.03%* 2.97%* 3.11%* 94.00%
<FN>
(6) Commenced operations on June 7, 1995.
(7) Commenced operations on March 15, 1993.
(8) Commenced operations on March 22, 1993.
(9) Commenced operations on June 20, 1995.
(10) Commenced operations on March 18, 1993.
(11) Commenced operations on June 22, 1995.
(A) Total return figures do not reflect applicable sales loads.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
117
<PAGE>
FINANCIAL HIGHLIGHTS (concluded)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
NET REALIZED AND DISTRIBUTIONS
NET ASSET VALUE NET UNREALIZED FROM DISTRIBUTIONS NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) NET INVESTMENT FROM REALIZED VALUE END
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD
--------------- ---------- ---------------- -------------- ------------- ---------
LIMITED-TERM FEDERAL
MORTGAGE SECURITIES FUND
Trust Shares
<S> <C> <C> <C> <C> <C> <C>
1996 $10.11 $0.62 $(0.14) $(0.60) -- $ 9.99
1995(1) 10.00 0.58 0.13 (0.60) -- 10.11
Investor Shares
1996 $10.11 $0.60 $(0.14) $(0.60) -- $ 9.97
1995(2) 9.98 0.58 0.13 (0.58) -- 10.11
Flex Shares
1996(3) $10.14 $0.55 $(0.15) $(0.55) -- $ 9.99
U.S. GOVERNMENT
SECURITIES FUND
Trust Shares
1996 $10.27 $0.62 $(0.33) $(0.62) $(0.03) $ 9.91
1995(4) 9.98 0.53 0.29 (0.53) -- 10.27
Investor Shares
1996 $10.26 $0.59 $(0.33) $(0.59) $(0.03) $ 9.90
1995(5) 10.00 0.56 0.26 (0.56) -- 10.26
Flex Shares
1996(3) $10.31 $0.52 $(0.37) $(0.52) $(0.03) $ 9.91
PRIME QUALITY MONEY
MARKET FUND
Trust Shares
1996 $1.00 $0.05 -- $(0.05) -- $1.00
1995 1.00 0.05 -- (0.05) -- 1.00
1994 1.00 0.03 -- (0.03) -- 1.00
1993(6) 1.00 0.03 -- (0.03) -- 1.00
Investor Shares
1996 $1.00 $0.05 -- $(0.05) -- $1.00
1995 1.00 0.05 -- (0.05) -- 1.00
1994 1.00 0.03 -- (0.03) -- 1.00
1993(6) 1.00 0.03 -- (0.03) -- 1.00
U.S. GOVERNMENT SECURITIES
MONEY MARKET FUND
Trust Shares
1996 $1.00 $0.05 -- $(0.05) -- $1.00
1995 1.00 0.05 -- (0.05) -- 1.00
1994 1.00 0.03 -- (0.03) -- 1.00
1993(6) 1.00 0.03 -- (0.03) -- 1.00
Investor Shares
1996 $1.00 $0.05 -- $(0.05) -- $1.00
1995 1.00 0.04 -- (0.04) -- 1.00
1994 1.00 0.03 -- (0.03) -- 1.00
1993(6) 1.00 0.03 -- (0.03) -- 1.00
TAX-EXEMPT MONEY
MARKET FUND
Trust Shares
1996 $1.00 $0.03 -- $(0.03) -- $1.00
1995 1.00 0.03 -- (0.03) -- 1.00
1994 1.00 0.02 -- (0.02) -- 1.00
1993(6) 1.00 0.02 -- (0.02) -- 1.00
Investor Shares
1996 $1.00 $0.03 -- $(0.03) -- $1.00
1995 1.00 0.03 -- (0.03) -- 1.00
1994 1.00 0.02 -- (0.02) -- 1.00
1993(6) 1.00 0.02 -- (0.02) -- 1.00
<FN>
* Annualized.
(DAGGER) Cumulative since inception.
(1) Commenced operations on June 7, 1994.
(2) Commenced operations on July 17, 1994.
(3) Commenced operations on June 7, 1995.
(4) Commenced operations on June 31, 1994.
(5) Commenced operations on June 9, 1994.
(6) Commenced operations on June 8, 1992.
</FN>
</TABLE>
118
<PAGE>
================================================================================
<TABLE>
<CAPTION>
RATIO OF
RATIO OF RATIO OF NET INVESTMENT
RATIO OF NET INVESTMENT EXPENSES TO INCOME (LOSS) TO
NET ASSETS EXPENSES TO INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO
TOTAL END OF AVERAGE AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER
RETURN PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE
------ ------------ ----------- --------------- ------------------- ------------------- ---------
LIMITED-TERM FEDERAL
MORTGAGE SECURITIES FUND
Trust Shares
<S> <C> <C> <C> <C> <C> <C> <C>
1996 4.84% $ 73,370 0.65% 6.04% 0.84% 5.85% 83.01%
1995(1) 7.50%(DAGGER) 41,823 0.65%* 6.43%* 0.93%* 6.15%* 67.63%
Investor Shares
1996 4.59% $ 2,512 0.90% 5.75% 2.25% 4.40% 83.01%
1995(2) 7.45%(DAGGER) 623 0.90%* 6.27%* 7.74%* (0.57%)* 67.63%
Flex Shares
1996(3) 4.10%* 1,349 1.25%* 5.38%* 3.59%* 3.04%* 83.01%
U.S. GOVERNMENT
SECURITIES FUND
Trust Shares
1996 2.77% $ 10,277 0.75% 6.05% 1.25% 5.55% 83.38%
1995(4) 8.64%(DAGGER) 3,291 0.75%* 6.67%* 3.33%* 4.09%* 30.39%
Investor Shares
1996 2.47% $ 2,396 1.15% 5.68% 2.50% 4.33% 83.38%
1995(5) 8.61%(DAGGER) 589 1.15%* 6.08%* 6.84%* 0.39%* 30.39%
Flex Shares
1996(3) 1.42%* $ 2,826 1.66%* 5.18%* 2.86%* 3.98%* 83.38%
PRIME QUALITY MONEY
MARKET FUND
Trust Shares
1996 5.25% $1,050,800 0.58% 5.11% 0.78% 4.91% --
1995 4.79% 799,189 0.58% 4.77% 0.79% 4.56% --
1994 2.88% 583,399 0.58% 2.86% 0.79% 2.65% --
1993(6) 2.92%* 410,991 0.58%* 2.85%* 0.78%* 2.65%* --
Investor Shares
1996 5.08% $ 215,696 0.75% 4.94% 1.00% 4.69% --
1995 4.62% 157,616 0.75% 4.55% 1.01% 4.29% --
1994 2.71% 129,415 0.75% 2.67% 0.99% 2.43% --
1993(6) 2.75%* 61,578 0.75%* 2.68%* 1.02%* 2.41%* --
U.S. GOVERNMENT SECURITIES
MONEY MARKET FUND
Trust Shares
1996 5.14% $ 325,493 0.61% 5.02% 0.78% 4.85% --
1995 4.67% 434,111 0.61% 4.64% 0.80% 4.45% --
1994 2.77% 309,228 0.61% 2.69% 0.77% 2.53% --
1993(6) 2.79%* 453,567 0.61%* 2.71%* 0.78%* 2.54%* --
Investor Shares
1996 4.99% $ 58,608 0.75% 4.88% 0.99% 4.64% --
1995 4.51% 46,639 0.75% 4.51% 1.02% 4.24% --
1994 2.63% 32,395 0.75% 2.54% 0.97% 2.32% --
1993(6) 2.65%* 16,688 0.75%* 2.57%* 1.11%* 2.21%* --
TAX-EXEMPT MONEY
MARKET FUND
Trust Shares
1996 3.28% $ 273,613 0.50% 3.23% 0.68% 3.05% --
1995 3.10% 215,413 0.45% 3.12% 0.70% 2.87% --
1994 2.08% 143,982 0.42% 2.05% 0.71% 1.76% --
1993(6) 2.12%* 78,416 0.41%* 2.07%* 0.70%* 1.78%* --
Investor Shares
1996 3.16% $ 95,223 0.62% 3.10% 0.85% 2.87% --
1995 3.00% 87,647 0.55% 3.00% 0.87% 2.68% --
1994 1.96% 61,675 0.54% 1.93% 0.88% 1.59% --
1993(6) 2.00%* 35,209 0.53%* 1.95%* 0.95%* 1.53%* --
<FN>
(A) Total return figures do not reflect applicable sales loads.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
1. Organization:
The STI Classic Funds (the "Trust") was organized as a Massachusetts Business
Trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with nineteen portfolios: the Prime Quality Money
Market Fund, the U.S. Government Securities Money Market Fund, the Tax-Exempt
Money Market Fund (collectively the "Money Market Funds"), the Investment Grade
Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Short-Term U.S.
Treasury Securities Fund, the Short-Term Bond Fund, the Capital Growth Fund, the
Value Income Stock Fund, the Sunbelt Equity Fund, the Mid-Cap Equity Fund, the
Balanced Fund, the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond
Fund, the Tennessee Tax-Exempt Bond Fund, the U.S. Government Securities Fund,
the Limited-Term Federal Mortgage Securities Fund, the International Equity Fund
and the International Equity Index Fund (collectively the "Non-Dollar Funds").
The assets of each portfolio are segregated, and a shareholder's interest is
limited to the Fund in which shares are held. Each Fund's prospectus provides a
description of the Fund's investment objectives, policies and strategies.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust.
SECURITY VALUATION -- Investment securities held by the Money Market Funds
are stated at amortized cost, which approximates market value.
Investment securities held by the Non-Dollar Funds which are listed on a
securities exchange for which market quotations are available are valued at
the last quoted sales price on each business day. If there is no such
reported sale, these securities and unlisted securities for which market
quotations are readily available are valued at the most recently quoted bid
price. Foreign securities in the International Equity Fund and the
International Equity Index Fund are valued based upon quotations from the
primary market in which they are traded. Debt obligations with sixty days
or less remaining until maturity may be valued at their amortized cost.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company for Federal income tax purposes and distribute
all of its taxable income and net capital gains. Accordingly, no provisions
for Federal income taxes are required.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date and interest income
is recognized on an accrual basis. Costs used in determining net realized
gains and losses on the sales of investment securities are those of the
specific securities sold adjusted for the accretion and amortization of
purchase discounts and premiums during the respective holding period.
Purchase discounts and premiums on securities held by the Money Market
Funds are accreted and amortized ratably to maturity and are included in
interest income. Purchase discounts and premiums on securities held by the
Non-Dollar Funds are accreted and amortized to maturity using the
scientific interest method, which approximates the effective interest
method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in
120
<PAGE>
================================================================================
the event of default of the counterparty. If the counterparty defaults and
the value of the collateral declines or if the counterparty enters into an
insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day, by dividing the total value of each Fund's
assets, less liabilities, by the number of shares outstanding. The maximum
offering price per share for Investor shares of the Investment Grade Bond,
the Investment Grade Tax-Exempt Bond, the Capital Growth, the Value Income
Stock, the Sunbelt Equity, the Mid-Cap Equity, the Balanced, the Florida
Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Tennessee Tax-Exempt
Bond, the U.S. Government Securities, the International Equity, and the
International Equity Index Funds is equal to the net asset value per share
plus a sales load of 3.75%. The maximum offering price per share for
Investor shares of the Short-Term U.S. Treasury Securities Fund is equal to
the net asset value per share plus a sales load of 1.00%. The maximum
offering price per share for Investor shares of the Short-Term Bond Fund is
equal to the net asset value per share plus a sales load of 2.00%. The
maximum offering price per share for Investor shares of the Limited-Term
Federal Mortgage Securities Fund is equal to the net asset value per share
plus a sales load of 2.50%
Flex Shares of the Funds may be purchased at their net asset value. Shares
redeemed within the first year after purchase will be subject to a
contingent deferred sales charge ("CDSC") equal to 2.00% of the net asset
value of the shares at the time of redemption. The CDSC will not apply to
shares redeemed after such time.
FOREIGN CURRENCY TRANSLATION -- The books and records of the International
Equity and the International Equity Index Funds are maintained in U.S.
dollars on the following basis:
(I) market value of investment securities, assets and liabilities at
the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective dates of
such transactions.
The International Equity and the International Equity Index Funds do not
isolate that portion of gains and losses on investments in equity
securities which is due to changes in the foreign exchange rates from that
which is due to changes in market prices of equity securities.
The International Equity and the International Equity Index Funds report
certain foreign currency related transactions as components of realized and
unrealized gains and losses for financial reporting purposes, whereas such
components are treated as ordinary income for Federal income tax purposes.
OTHER -- Expenses that are directly related to a specific Fund are charged
to that Fund. Class specific expenses are borne by that class. Other
operating expenses of the Trust are pro-rated to the Funds on the basis of
relative net assets. Fund expenses are pro-rated to the respective classes
on the basis of relative net assets.
Distributions from net investment income of each of the Money Market Funds and
the Investment Grade Bond, the Investment Grade Tax-Exempt Bond, the Short-Term
U.S. Treasury Securities, the Short-Term Bond, the Florida Tax-Exempt Bond, the
Georgia Tax-Exempt Bond, the Tennessee Tax-Exempt Bond, the U.S. Government
Securities and the Limited-Term Federal Mortgage Securities Funds are declared
on each business day and paid to shareholders on a monthly basis. Distributions
from net investment income are declared and paid each calendar quarter by the
Capital Growth, the Value Income Stock, the
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
Sunbelt Equity, the Mid-Cap Equity and the Balanced Funds. Distributions from
net investment income are declared and paid annually by the International Equity
and the International Equity Index Funds. Any net realized capital gains on
sales of securities are distributed to shareholders at least annually.
RECLASSIFICATION ON COMPONENTS OF NET ASSETS -- In accordance with Statement of
Position 93-2, "Determination, Disclosure, and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distribution by Investment
Companies", $2,231,493, $1,362,183, $187,659, $87,216, and $52,703 relating to
differences attributable to the classification of short-term capital gains and
net investment income for tax distribution purposes of the Capital Growth,
Sunbelt, Investment Grade Bond, Short-Term Bond, and Short-Term U.S. Treasury
Securities Funds, respectively, as of May 31, 1996 have been reclassified
between the Fund's accumulated net realized gains/losses and undistributed net
income accounts, as appropriate. These reclassifications had no effect on net
asset value.
3. Organization Costs and Transactions with Affiliates:
The Trust incurred organization costs of approximately $653,100. These costs
have been deferred in the accounts of the Funds and are being amortized on a
straight line basis over a period of sixty months commencing with operations.
These costs include legal fees of approximately $41,100 for organizational work
performed by a law firm of which an officer of the Trust is a partner. On March
18, 1992, the Trust sold initial shares of beneficial interest to SEI Financial
Management Corporation (the "Administrator"). In the event any of the initial
shares of the Trust are redeemed by any holder thereof during the period that
the Trust is amortizing its organizational costs, the redemption proceeds
payable to the holder thereof by the Trust will be reduced by the unamortized
organizational costs in the same ratio as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of
redemption.
Certain officers of the Trust are also officers of the Administrator and/or SEI
Financial Services Company (the "Distributor"). Such officers are paid no fees
by the Trust for serving as officers of the Trust.
4. Administration, Transfer Agency Servicing and Distribution Agreements:
The Trust and the Administrator are parties to an Administration Agreement dated
May 29, 1995, under which the Administrator provides administrative services for
an annual fee (expressed as a percentage of the combined average daily net
assets of the Trust and STI Classic Variable Annuity Trust) of: .10% up to $1
billion, .07% on the next $4 billion, .05% on the next $3 billion, .045% on the
next $2 billion and .04% for over $10 billion.
The Trust and Federated Services Company are parties to a Transfer Agency
servicing agreement dated May 14, 1994 under which Federated Services Company
provides transfer agency services to the Trust.
The Trust and the Distributor are parties to a Distribution Agreement dated May
29, 1995. The Distributor will receive no fees for its distribution services
under this agreement for the Trust Shares of any Fund. With respect to the
Investor Shares and Flex Shares, the Distributor receives amounts, pursuant to a
Distribution Plan and (in the case of Flex Shares) a Service Plan, as outlined
in the table in footnote 5 under the column titled "Distribution Fee".
5. Investment Advisory and Custodian Agreements:
The Trust and STI Capital Management, N.A., ("STI Capital Management, N.A."),
Trusco Capital
122
<PAGE>
================================================================================
Management ("Trusco"), the SunTrust Bank, Atlanta and SunTrust Bank, Chattanooga
have entered into advisory agreements dated May 29, 1992 (December 20, 1993 in
the case of SunTrust Bank, Chattanooga) (the "Advisory Agreements"). On May 26,
1993, the Trust's Board of Trustees approved the termination of Trust Company
Bank as investment advisor to the Trust's Tax-Exempt Money Market Fund and
approved the appointment of Trusco as advisor to such Fund. The Trust and Trusco
subsequently entered into an advisory agreement dated June 15, 1993 (the
"Advisory Agreement") which superseded the May 29, 1992 agreement between the
parties.
Under terms of the respective agreements, the Funds are charged the following
annual fees based upon average daily net assets:
MAXIMUM
FLEX
SHARE
MAXIMUM DISTRI-
MAXIMUM TRUST INVESTOR INVESTOR BUTION FLEX
ANNUAL SHARE SHARE SHARE AND SHARE
ADVISORY MAXIMUM DISTRI- MAXIMUM SERVICE MAXIMUM
FEE EXPENSE BUTION FEE EXPENSE FEE EXPENSE
------- ------- ---------- -------- ------- --------
TRUSCO:
International
Equity Index
Fund* .......... .90% 1.05% .38% 1.45% 1.00% 2.10%
Sunbelt Equity
Fund ........... 1.15% 1.15% .43% 1.60% 1.00% 2.20%
Short-Term Bond
Fund ........... .65% .65% .23% .85% 1.00% 1.20%
Short-Term U.S.
Treasury
Securities
Fund ........... .65% .65% .18% .80% 1.00% 1.05%
U.S. Government
Securities
Fund ........... .74% .75% .38% 1.15% 1.00% 1.65%
Prime Quality
Money Market
Fund ........... .65% .58% .20% .75% -- --
U.S. Government
Securities
Money Market
Fund ........... .65% .61% .17% .75% -- --
Tax-Exempt
Money Market
Fund ........... .55% .60% .15% .72% -- --
MAXIMUM
FLEX
SHARE
MAXIMUM DISTRI-
MAXIMUM TRUST INVESTOR INVESTOR BUTION FLEX
ANNUAL SHARE SHARE SHARE AND SHARE
ADVISORY MAXIMUM DISTRI- MAXIMUM SERVICE MAXIMUM
FEE EXPENSE BUTION FEE EXPENSE FEE EXPENSE
------- ------- ---------- -------- ------- --------
STI CAPITAL MANAGEMENT, N.A.:
Value Income
Stock Fund ..... .80% .95% .33% 1.30% 1.00% 2.00%
Mid-Cap Equity
Fund ........... 1.15% 1.15% .43% 1.60% 1.00% 2.20%
Capital Growth
Fund ........... 1.15% 1.15% .68% 1.80% 1.00% 2.27%
Balanced Fund ... .95% .95% .28% 1.25% 1.00% 2.00%
Investment
Grade
Tax-Exempt
Bond Fund ...... .74% .75% .43% 1.15% 1.00% 1.63%
Florida
Tax-Exempt
Bond Fund ...... .65% .65% .18% .85% 1.00% 1.35%
Investment
Grade Bond
Fund ........... .74% .75% .43% 1.15% 1.00% 1.64%
Limited-Term
Federal Mortgage
Securities
Fund ........... .65% .65% .23% .90% 1.00% 1.25%
International
Equity Fund .... 1.25% 1.46% .33% 1.81% 1.00% 2.51%
SUNTRUST BANK, ATLANTA:
Georgia
Tax-Exempt
Bond Fund ...... .65% .65% .18% .85% 1.00% 1.35%
SUNTRUST BANK, CHATTANOOGA:
Tennessee
Tax-Exempt
Bond Fund ...... .65% .65% .18% .85% 1.00% 1.35%
- -----------------
*Trusco and SunBank serve as joint advisors to the International Equity Index
Fund.
The Investment Advisors, the Administrator and the Distributor have voluntarily
agreed to waive all or a portion of their fees (and to reimburse Funds'
expenses) in order to limit operating expenses to an amount as outlined in the
table above. Fee waivers and expense reimbursements are voluntary and may be
terminated at any time.
SunTrust Bank, Atlanta, formerly Trust Company Bank, acts as custodian for all
the Funds except the International Equity and the International Equity
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
Index Funds. The Bank of New York serves as custodian to the International
Equity Fund and the Bank of California serves as custodian to the International
Equity Index Fund. Fees of the Custodians are paid on the basis of the net
assets of the Funds. The Custodians play no role in determining the investment
policies of the Trust or which securities are to be purchased or sold in the
Funds.
6. Investment Transactions:
The cost of purchases and the proceeds from sales of securities, excluding
short-term investments and U.S. Government Securities, for the period ended May
31, 1996, were as follows:
PURCHASES SALES
(000) (000)
---------- ----------
Value Income Stock Fund ..................... $1,493,020 $1,485,530
Mid-Cap Equity Fund ......................... 289,235 205,572
Capital Growth Fund ......................... 1,729,362 1,898,664
Balanced Fund ............................... 117,600 110,702
International Equity Index Fund ............. 29,233 31,167
International Equity Fund ................... 361,787 171,233
Sunbelt Equity Fund ......................... 387,532 349,431
Investment Grade Tax-Exempt Bond Fund ....... 660,206 618,286
Florida Tax-Exempt Bond Fund ................ 38,105 15,798
Tennessee Tax-Exempt Bond Fund .............. 4,376 1,626
Georgia Tax-Exempt Bond Fund ................ 27,200 12,685
Investment Grade Bond Fund .................. 416,076 456,626
Short-Term Bond Fund ........................ 67,798 50,754
Short-Term U.S. Treasury Securities Fund .... -- --
Limited-Term Federal Mortgage Securities Fund -- --
U.S. Government Securities Fund ............. -- --
The cost of purchases and proceeds from sales of U.S. Government Securities
were:
PURCHASES SALES
(000) (000)
--------- ----------
Value Income Stock Fund ..................... -- --
Mid-Cap Equity Fund ......................... -- --
Capital Growth Fund ......................... -- --
Balanced Fund ............................... $ 54,234 $ 36,688
International Equity Index Fund ............. -- --
International Equity Fund ................... -- --
Sunbelt Equity Fund ......................... -- --
Investment Grade Tax-Exempt Bond Fund ....... -- --
Florida Tax-Exempt Bond Fund ................ -- --
Tennessee Tax-Exempt Bond Fund .............. -- --
Georgia Tax-Exempt Bond Fund ................ -- --
PURCHASES SALES
(000) (000)
--------- ----------
Investment Grade Bond Fund .................. $828,696 $619,825
Short-Term Bond Fund ........................ 84,205 67,661
Short-Term U.S. Treasury Securities Fund .... 15,534 14,800
Limited-Term Federal Mortgage Securities Fund 76,783 42,100
U.S. Government Securities Fund ............. 19,279 8,016
The aggregate gross unrealized appreciation and depreciation for securities held
by the Funds at May 31, 1996, and the total cost of securities for Federal
income tax purposes were as follows:
VALUE INCOME MID-CAP CAPITAL
STOCK EQUITY GROWTH
FUND FUND FUND
(000) (000) (000)
------------ -------- --------
Aggregate gross unrealized
appreciation ................... $128,322 $ 25,315 $150,430
Aggregate gross unrealized
depreciation ................... (7,858) (4,392) (13,470)
---------- -------- ----------
Net unrealized appreciation ...... $120,464 $ 20,923 $136,960
========== ======== ==========
Total cost of securities for
Federal income tax purposes .... $1,287,255 $260,367 $1,042,462
========== ======== ==========
INTERNATIONAL INTERNATIONAL SUNBELT
BALANCED EQUITY EQUITY EQUITY
FUND INDEX FUND FUND FUND
(000) (000) (000) (000)
-------- ------------- ------------- --------
Aggregate gross unrealized
appreciation ............... $ 8,701 $11,273 $ 15,901 $113,112
Aggregate gross unrealized
depreciation ............... (2,017) (2,306) (2,284) (12,731)
-------- ------- -------- --------
Net unrealized appreciation . $ 6,684 $ 8,967 $ 13,617 $100,381
======== ======= ======== ========
Total cost of securities for
Federal income tax purposes $114,332 $87,565 $195,658 $341,821
======== ======= ======== ========
INVESTMENT
GRADE
TAX-EXEMPT FLORIDA TENNESSEE
BOND TAX-EXEMPT TAX-EXEMPT
FUND BOND FUND BOND FUND
(000) (000) (000)
---------- ---------- ----------
Aggregate gross unrealized appreciation .. $ 482 $ 246 $ 43
Aggregate gross unrealized depreciation .. (1,178) (603) (76)
-------- ------- ------
Net unrealized depreciation .............. $ (696) $ (357) $ (33)
======== ======= ======
Total cost of securities for
Federal income tax purposes ............ $158,666 $36,007 $5,325
======== ======= ======
124
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================================================================================
INVESTMENT
GEORGIA GRADE SHORT-
TAX-EXEMPT BOND TERM BOND
FUND FUND FUND
(000) (000) (000)
--------- ---------- ---------
Aggregate gross unrealized appreciation . $ 114 $ 3,382 $ 14
Aggregate gross unrealized depreciation . (694) (13,635) (1,342)
------- -------- -------
Net unrealized depreciation ............. $ (580) $(10,253) $(1,328)
======= ======== =======
Total cost of securities for
Federal income tax purposes ........... $30,682 $661,060 $95,244
======= ======== =======
SHORT- LIMITED-
TERM TERM
U.S. FEDERAL U.S.
TREASURY MORTGAGE GOVERNMENT
SECURITIES SECURITIES SECURITIES
FUND FUND FUND
(000) (000) (000)
--------- ---------- ----------
Aggregate gross unrealized appreciation . $ 19 $ 301 $ 37
Aggregate gross unrealized depreciation . (137) (749) (465)
------- -------- -------
Net unrealized depreciation ............. $ (118) $ (448) $ (428)
======= ======== =======
Total cost of securities for
Federal income tax purposes ........... $16,235 $341,253 $15,964
======= ======== =======
Subsequent to October 31, 1995, the Funds recognized net capital losses for tax
purposes that have been deferred to 1996 and can be used to offset future
capital gains at May 31, 1996. The Funds also had capital losses carryforward at
May 31, 1996, to the extent provided in the regulations for Federal income tax
as follows:
CAPITAL LOSS
CARRYOVER EXPIRES EXPIRES EXPIRES
5/31/96 2002 2003 2004
FUND (000) (000) (000) (000)
------------- ------- ------- -------
Investment Grade Bond Fund $6,806 -- $6,806 --
Short-Term U.S. Treasury Fund 232 -- 203 $ 29
Prime Quality Money Market Fund 176 -- 3 173
U.S. Government Securities
Money Market Fund 11 -- -- 11
Tax-Exempt Money Market Fund 14 $9 1 4
CAPITAL LOSS
POST OCTOBER UTILIZED DURING
DEFERRED LOSSES THE CURRENT YEAR
FUND (000) (000)
--------------- ----------------
Capital Growth Fund -- $ 1,541
Sunbelt Equity Fund -- 3,762
Balanced Fund -- 2,002
Investment Grade Bond Fund -- 11,848
Georgia Tax-Exempt Bond Fund -- 12
Tennessee Tax-Exempt Bond Fund -- 3
Short-Term Bond Fund -- 288
Limited Term Federal Mortgage
Securities Fund -- 15
U.S. Government Securities Fund $37 --
Prime Quality Money Market Fund 82 --
U.S. Govenment Securities Money
Market Fund -- 59
7. Concentration of Credit Risk:
The Prime Quality Money Market Fund Invests primarily in high quality money
market instruments rated in the highest short-term rating category by Standard &
Poor's Corporation ("S&P") or Moody's Investors Services, Inc. ("Moody's") or,
if not rated, are determined by the Advisor to be of comparable quality. The
U.S. Government Securities Money Market Fund invests exclusively in U.S.
Treasury obligations, U.S. Government subsidiary corporation securities which
are backed by the full faith and credit of the U.S. Government and repurchase
agreements with approved dealers collateralized by U.S. Treasury securities and
U.S. Government subsidiary corporation securities. The Tax-Exempt Money Market
Fund invests in high quality, U.S. dollar denominated municipal securities rated
in one of the two highest short-term rating categories or, if not rated, are
determined by the Advisor to be of comparable quality. The Investment Grade Bond
Fund, the Short-Term Bond Fund and the Balanced Fund invest primarily in
investment grade obligations rated at least BBB or better by S&P or Baa or
better by Moody's or, if not rated, are determined by the Advisor to be of
comparable quality. The Investment Grade Tax-Exempt Fund invests primarily in
investment grade municipal securities. Municipal
125
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
================================================================================
STI CLASSIC FUNDS MAY 31, 1996
securities must be rated BBB or better by S&P or Baa or better by Moody's in the
case of bonds; SP-1, SP-2 or MIG-1, MIG-2 in the case of notes; A-1, A-2 or P-1,
P-2 in the case of commercial paper; and VMIG-1, VMIG-2 in the case of variable
rate demand obligations. The Short-Term U.S. Treasury Securities Fund invests
exclusively in obligations issued by the U.S. Treasury with a maximum remaining
maturity of 3 years or less. The Florida Tax-Exempt Bond Fund, the Georgia
Tax-Exempt Bond Fund, and the Tennessee Tax-Exempt Bond Fund invest primarily in
municipal bonds concentrated in each of their respective states. Municipal
securities must be rated BBB or better by S&P or Baa or better by Moody's in the
case of bonds; A-1, A-2 or P-1, P-2 in the case of tax-exempt commercial paper;
and VMIG-1, VMIG-2 in the case of variable rate demand obligations. The U.S.
Government Securities Fund invests primarily in obligations issued or guaranteed
by the U.S. Government or its agencies or instrumentalities, including mortgage
backed securities. The Limited-Term Federal Mortgage Securities Fund invests in
mortgage related securities issued or guaranteed by U.S. Government agencies. Up
to 35% of the U.S. Government Securities Fund and the Limited-Term Federal
Mortgage Securities Fund may be invested in corporate, or government bonds that
carry a rating of BBB or better by S&P or Baa or better by Moody's. The ability
of the issuers of the securities held by the Funds to meet their obligations may
be affected by economic developments in a specific industry, state or region, or
by changing business conditions.
The summary of credit quality ratings for the securities held by the Funds as
rated by S & P at May 31, 1996 were as follows:
U.S. GOV'T.
PRIME QUALITY SECURITIES TAX-EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------- ------------ ------------
AAA ................... 7.5% 35.0% 5.5%
AA .................... 0.2% -- 6.9%
A ..................... 12.7% -- 5.4%
A-1 ................... 57.2% -- 51.1%
A-2 ................... 2.9% -- --
A1+ ................... -- -- 1.1%
SP-1. ................. -- -- 12.5%
Not Rated ............. 3.7% -- 16.5%
Repurchase Agreement .. 15.8% 65.0% --
Cash Equivalents ...... -- -- 1.0%
------------- ------------ ------------
Totals .............. 100.0% 100.0% 100.0%
============= ============ ============
SHORT-TERM
INVESTMENT INVESTMENT U.S.
GRADE GRADE SHORT-TERM TREASURY
BOND TAX-EXEMPT BOND SECURITIES
FUND BOND FUND FUND FUND
---------- ---------- ---------- ----------
AAA ...................... 70.6% 57.7% 68.6% 96.9%
AA ....................... 3.1% 22.7% 6.1%
A ........................ 10.1% 9.4% 12.7 --
A-3 ...................... -- -- 2.1% --
BBB ...................... 11.8% 2.2% 7.7% --
Not Rated ................ -- 3.3% -- --
Repurchase Agreement ..... 4.4% -- -- --
Cash Equivalents ......... -- 4.7% 2.8% 3.1%
---------- ---------- ---------- ----------
Totals ................. 100.0% 100.0% 100.0% 100.0%
========== ========== ========== ==========
LTD.-TERM
FEDERAL
FLORIDA TENNESSEE GEORGIA MORTGAGE U.S. GOV'T
BALANCED TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT SECURITIES SECURITIES
FUND BOND FUND BOND FUND BOND FUND FUND FUND
-------- ---------- ---------- ---------- ---------- -----------
AAA ......... 27.8% 81.2% 53.3% 35.7% 88.4% 92.5%
AA .......... .8% 11.5% 32.2% 41.5% -- --
A ........... 3.7% 1.9% 4.9% 8.7% -- --
A-1 ......... -- -- -- -- -- --
A-2 ......... -- -- -- -- -- --
A-3 ......... -- -- -- -- -- --
BBB ......... 7.6% -- -- -- -- --
BB .......... -- -- -- -- -- --
S - 1 ....... -- -- -- -- -- --
Equities .... 56.2% -- -- -- -- --
Not Rated ... -- 1.3% 8.6% 8.6% 3.8% --
Repurchase
Agreement . 3.9% -- -- -- 7.1% --
Cash
Equivalents -- 4.1% 0.7% 5.5% 0.7% 7.5%
------ ------ ------ ------ ------ ------
Totals .... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ====== ====== ======
126
<PAGE>
================================================================================
The summary of credit quality ratings for the securities held by the Funds as
rated by Moody's at May 31, 1996 were as follows:
U.S. GOV'T.
PRIME QUALITY SECURITIES TAX-EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------- ------------ ------------
Aaa .................. 9.9% 35.0% 6.4%
Aa ................... 0.4% -- 10.5%
A .................... -- -- 1.3%
A-1 .................. 3.0% -- 2.5%
A-2 .................. 8.3% -- 2.2%
A-3 .................. 0.8% -- --
P-1 .................. 57.2% -- 14.2%
P-2. ................. 2.9% -- --
MIG-1 ................ -- -- 12.9%
VMIG-1 ............... -- -- 30.4%
Not Rated ............ 1.7% -- 18.5%
Repurchase Agreement . 15.8% 65.0% --
Cash Equivalents ..... -- -- 1.1%
------------- ------------ ------------
Totals ............ 100.0% 100.0% 100.0%
============= ============ ============
INVESTMENT SHORT-TERM
GRADE U.S.
INVESTMENT TAX-EXEMPT SHORT-TERM TREASURY
GRADE BOND BOND SECURITIES
BOND FUND FUND FUND FUND
---------- ---------- ---------- ----------
Aaa ................ 70.6% 61.5% 68.6% 96.9%
Aa ................. 5.5% 16.0% 6.1% --
A .................. -- 5.0% 2.1% --
A-1 ................ 5.3% 4.8% 2.9% --
A-2 ................ 4.6% -- 6.3% --
A-3 ................ -- -- 6.3% --
Baa ................ 9.6% -- 4.9% --
Not Rated .......... -- 7.9% -- --
Repurchase Agreement 4.4% -- -- --
Cash Equivalents ... -- 4.8% 2.8% 3.1%
---------- ---------- ---------- ----------
Totals .......... 100.0% 100.0% 100.0% 100.0%
========== ========== ========== ==========
LTD.-TERM
FEDERAL
FLORIDA TENNESSEE GEORGIA MORTGAGE U.S. GOV'T
BALANCED TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT SECURITIES SECURITIES
FUND BOND BOND FUND BOND FUND FUND FUND
-------- ---------- ---------- ---------- ---------- ----------
Aaa ....... 27.8% 80.4% 51.1% 41.7% 92.2% 92.5%
Aa ........ 1.6% 11.5% 25.4% 32.3% -- --
A ......... -- -- 1.8% 5.1% -- --
A-1 ....... 2.0% -- 10.7% 11.1% -- --
A-2 ....... 1.7% -- -- -- -- --
Baa ....... 6.5% 3.5% 10.3% -- -- --
Ba-1 ...... 0.3% -- -- -- -- --
Not Rated . -- 0.5% -- 4.3% -- --
Equities .. 56.2% -- -- -- -- --
Repurchase
Agreement 3.9% -- -- -- 7.1% --
Cash
Equivalents -- 4.1% 0.7% 5.5% 0.7% 7.5%
------ ------ ------ ------ ------ ------
Totals .. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ====== ====== ======
127
<PAGE>
NOTICE TO SHAREHOLDERS UNAUDITED
OF
STI CLASSIC FUNDS
For shareholders that do not have a May 31, 1996 tax year end, this notice is
for informational purposes only. For shareholders with a May 31, 1996 tax year
end, please consult your tax advisor as to the pertinence of this notice. For
the fiscal year ended May 31, 1996, each portfolio is designating the following
items with regard to distributions paid during the year:
<TABLE>
<CAPTION>
(A) (B) (C)
LONG TERM ORDINARY
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS)
- -------- ---------- ------------- -------------
<S> <C> <C> <C>
Value Income Stock 7.25% 92.75% 100%
Mid-Cap Equity 20.04% 79.96% 100%
Capital Growth 20.89% 79.11% 100%
Balanced 23.40% 76.60% 100%
International Equity Index 9.68% 90.32% 100%
International Equity 0% 0% 0%
Sunbelt Equity 93.93% 6.07% 100%
Investment Grade Tax-Exempt Bond 0% 100% 100%
Florida Tax-Exempt Bond 1.63% 98.37% 100%
Tennessee Tax-Exempt Bond 0% 100% 100%
Georgia Tax-Exempt Bond 3.58% 96.42% 100%
Investment Grade Bond 0% 100% 100%
Short-Term Bond 0% 100% 100%
Short-Term U.S. Treasury Securities 0% 100% 100%
Limited-Term Federal Mortgage Securities 0% 100% 100%
U.S. Government Securities 0% 100% 100%
Prime Quality Money Market 0% 100% 100%
U.S. Government Securities Money Market 0% 100% 100%
Tax-Exempt Money Market 0% 100% 100%
</TABLE>
(D) (E)
QUALIFYING TAX-EXEMPT
PORTFOLIO DIVIDENDS(1) INTEREST
- -------- ------------ ----------
Value Income Stock 97.00% 0%
Mid-Cap Equity 100.00% 0%
Capital Growth 100.00% 0%
Balanced 23.83% 0%
International Equity Index 0% 0%
International Equity 0% 0%
Sunbelt Equity 0% 0%
Investment Grade Tax-Exempt Bond 0% 95%
Florida Tax-Exempt Bond 0% 98%
Tennessee Tax-Exempt Bond 0% 97%
Georgia Tax-Exempt Bond 0% 98%
Investment Grade Bond 0% 95%
Short-Term Bond 0% 0%
Short-Term U.S. Treasury Securities 0% 0%
Limited-Term Federal Mortgage Securities 0% 0%
U.S. Government Securities 0% 0%
Prime Quality Money Market 0% 0%
U.S. Government Securities Money Market 0% 0%
Tax-Exempt Money Market 0% 100%
- ----------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction. * Items (A) and (B) are based on a percentage
of each portfolio's total distributions.
** Item (D) is based on the net income of the portfolio.
*** Item (E) is based on the gross income of the portfolio.
128
<PAGE>
STI CLASSIC INTERNATIONAL EQUITY INDEX FUND UNAUDITED
FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS,
THIS NOTICE IS FOR INFORMATIONAL PURPOSES ONLY.
Dear STI Classic International Equity Index Fund Shareholder:
The following is important information regarding foreign tax credits.
The STI Classic International Equity Index Fund has made an election under
Section 853 of the Internal Revenue Code to pass through the benefit of foreign
tax credits to its shareholders. The information provided below is pertinent to
taxpayers who meet the following criteria:
1) File a U.S. Federal Income Tax Return on the basis of fiscal year ended
May 31, 1996, and
2) Held shares of the Fund on the dividend record date of December 28, 1995.
The amount per share of income from and foreign taxes paid to each country is
listed in the following schedule:
<TABLE>
<CAPTION>
TRUST SHARES INVESTOR SHARES FLEX SHARES
GROSS FOREIGN GROSS FOREIGN GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID DIVIDEND TAXED PAID DIVIDEND TAXED PAID
------ -------- ---------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Australia 0.0068 0.0007 0.0067 0.0007 0.0056 0.0007
Austria 0.0013 0.0002 0.0013 0.0002 0.0011 0.0002
Belgium 0.0056 0.0002 0.0055 0.0002 0.0045 0.0002
Denmark 0.0024 0.0014 0.0024 0.0014 0.0022 0.0014
Finland 0.0014 0.0003 0.0013 0.0003 0.0011 0.0003
France 0.0174 0.0006 0.0170 0.0006 0.0140 0.0006
Germany 0.0216 0.0032 0.0211 0.0032 0.0179 0.0032
Hong Kong 0.0018 0.0000 0.0017 0.0000 0.0014 0.0000
Italy 0.0098 0.0021 0.0096 0.0021 0.0083 0.0021
Japan 0.0223 0.0047 0.0219 0.0047 0.0187 0.0047
Netherlands 0.0086 0.0016 0.0084 0.0016 0.0072 0.0016
Norway 0.0016 0.0003 0.0015 0.0003 0.0013 0.0003
Spain 0.0115 0.0024 0.0112 0.0024 0.0096 0.0024
Sweden 0.0023 0.0005 0.0023 0.0005 0.0019 0.0005
Switzerland 0.0035 0.0007 0.0035 0.0007 0.0030 0.0007
United Kingdom 0.0261 0.0053 0.0257 0.0053 0.0220 0.0053
United States 0.0085 0.0000 0.0083 0.0000 0.0069 0.0000
------ ------ ------ ------ ------ ------
0.1525 0.0242 0.1494 0.0242 0.1267 0.0242
</TABLE>
Please consult your tax advisor for proper treatment of this information.
129
<PAGE>
NOTES
130
<PAGE>
Investment Advisors:
STI Capital Management, N.A.
Trusco Capital Management, Inc.
SunTrust Bank, Chattanooga, N.A.
SunTrust Bank, Atlanta
STI Classic Funds are not deposits, are not
insured or guaranteed by the FDIC or any
other government agency, and are not
endorsed by and do not constitute obligations of
SunTrust Banks, Inc. or any other of its
affiliates. Investment in the Funds involves risk,
including the possible loss of principal. There
is no guarantee that any STI Classic Fund
will achieve its investment objective. The STI
Classic Funds are advised by affiliates of
SunTrust Banks, Inc.
Distributor:
SEI Financial Services Company
This information must be preceded or
accompanied by a current prospectus for each
Fund described.
