<PAGE>
ANNUAL
................................................................................
FINANCIAL REPORT
................................................................................
STI CLASSIC FIXED INCOME FUNDS
................................................................................
A Family of Mutual Funds
................................................................................
May 31, 1999
[logo]
<PAGE>
Dear Valued STI Classic Trust Shareholder:
As of May 31, 1999 your STI Classic Funds reached a new milestone with assets
totaling $19.96 billion. This dramatic increase is a direct result of two major
factors over the past year. First, growth within the existing STI Funds exceeded
20%. Secondly, as of May 24, 1999, the CrestFunds, which were proprietary mutual
funds of Crestar Financial Corporation, and two of the Arbor Funds, which were
advised by Crestar Asset Management Co., merged into the STI Classic Funds. The
Funds' merger followed the corporate merger between SunTrust Banks, Inc.
and Crestar Financial Corporation on December 31, 1998.
Your new STI Classic Funds family now consists of 34 stock, bond, and money
market funds and currently ranks among the 15 largest bank proprietary fund
complexes. Additionally, as a result of the merger, shareholders have a broader
and more diversified variety of funds from which to choose.
The U.S. economic expansion is now approaching nine years in duration while
inflation continues to be quite low. As a result, stock market returns have been
excellent. However, long-term interest rates recently rebounded to over 6% in
yield and the Federal Reserve Board increased short-term interest by one quarter
of one percent. These rate increases are due to fears that the accelerated
economic growth of late 1998 and early 1999 will lead to higher inflation. We
believe that the recent increase in interest rates will lead to slower, more
sustainable economic growth and inflation will continue to be modest.
As always, your STI Classic Funds continue to be managed with a disciplined,
quality oriented approach. Accordingly, we believe you, our valued shareholders,
are well positioned for the current and future investment environment.
On behalf of all of the advisors to the Funds, thank you for your confidence and
the opportunity to help you achieve your investment objectives.
Sincerely,
/s/ Signature omitted
--------------------------------------
Anthony R. Gray
Chairman, Chief Investment Officer
STI Capital Management, N.A.
/s/ Signature omitted
--------------------------------------
Douglas S. Phillips, CFA
President, Chief Investment Officer
Trusco Capital Management, Inc.
<PAGE>
STI Classic Florida Tax-Exempt Bond Fund
----------------------------------------
The STI Classic Florida Tax-Exempt Bond Fund (the "Fund") seeks to provide
current income exempt from regular federal income tax for Florida residents and
without undue investment risk. We invest in investment grade municipal bonds
issued by the state of Florida and its municipalities.
In the municipal bond funds we try to limit risk as much as possible. We do not
make major maturity shifts. We will bias the Fund 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 to emphasize cheap sectors of the
yield curve. Also, we take advantage of changes in yield spread. 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 credit
and avoid those credits that are deteriorating. The underlying concept to all
these techniques is to enhance total return without adding risk.
The Fund's return from June 1998 to May 1999 was 3.72% (Trust Shares). The Fund
outperformed the Lipper Florida Municipal Debt by 0.39%.
1998 saw heavy municipal issuance; most of which came at the longest end of the
yield curve. Most of the individual demand came at the short end. By the end of
1998 the yield curve had steepened considerably; with a one-year Triple A rated
GO bond coming down 90 basis points in yield while the five-year fell just 40
basis points and the 30-year fell just 9 basis points. Our decision to focus on
the shorter end of the yield curve was profitable since that was where the
greatest appreciation in bond values took place.
The supply/demand imbalance of the last half of 1998 pushed yields on
municipals, relative to treasuries, to such attractive levels that even
non-traditional buyers of municipals couldn't pass up owning municipals. We saw
the likes of crossover buyers, tender option bond programs, hedge funds, and
arbitrage accounts supporting the municipal market well into early 1999.
While the taxable bond market was working through potential liquidity crises
created by hedge funds, municipal credit spreads stayed narrow and in some cases
narrowed further. Surplus revenues at all levels of municipal government also
contributed to this narrowing of quality spreads. We continue to focus on high
quality bonds, as we do not see adequate compensation for the additional credit
risk.
The first few months of 1999 saw municipals outperform Treasury securities. We
emphasized bonds paying yield premiums because they hold their value better in a
down market. It was difficult to enhance performance with trading activity
because issuance was light.
Our emphasis in the intermediate area of the curve was a negative strategy
during the first few months of 1999. This sector of the market had very limited
support. The retail investor supported the short end of the municipal market
while the longer end was supported by non-traditional buyers, like the
cross-over and hedge players. In the intermediate range we saw the yield on a 7
year Triple A rated municipal bond increase by 23 basis points between January
and May 1999, making the principal value decrease. The yield on a 12 year Triple
A rated municipal bond during the same period increased 32 basis points.
/s/ Signature omitted
--------------------------------------
Ronald H. Schwartz, CFA, CFP
Managing Director
2
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.72% 6.55% 6.54% 5.87% 35.64%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Florida Tax-Exempt Bond Fund, Trust Shares
Lehman 10-Year Municipal Bond Index
Lipper Florida Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Florida Lipper Florida
Tax-Exempt Bond Fund, Lehman 10-Year Municipal Debt
Trust Shares Municipal Bond Index Average
------------ -------------------- -------
<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 10,201
5/31/96 11,106 10,880 10,560
5/31/97 11,908 11,769 11,335
5/31/98 12,952 12,860 12,358
5/31/99 13,434 13,455 12,770
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.62% 6.34% 6.35% 5.66% 34.39% Without load
- ----------------------------------------------------------------------------------------------
-0.29% 5.00% 5.54% 4.91% 29.34% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Florida Tax-Exempt Bond Fund, Investor Shares
Lehman 10-Year Municipal Bond Index
Lipper Florida Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Florida Lipper Florida
Tax-Exempt Bond Fund, Lehman 10-Year Municipal Debt
Investor Shares Municipal Bond Index Average
--------------- -------------------- -------
<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 10,201
5/31/96 10,656 10,880 10,560
5/31/97 1,402 11,769 11,335
5/31/98 12,367 12,860 12,358
5/31/99 12,814 13,455 12,770
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
One Year Annualized Annualized Cumulative
Return 3 Year Inception Inception
Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.13% 5.87% 5.23% 22.53% Without load
- --------------------------------------------------------------------------------
1.16% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Florida Tax-Exempt Bond Fund, Flex Shares
Lehman 10-Year Municipal Bond Index
Lipper Florida Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Florida Lipper Florida
Tax-Exempt Bond Fund, Lehman 10-Year Municipal Debt
Flex Shares Municipal Bond Index Average
----------- -------------------- -------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,424 10,539 10,487
5/31/97 11,099 11,400 11,257
5/31/98 11,991 12,456 12,273
5/31/99 12,367 13,032 12,682
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
3
<PAGE>
STI Classic Georgia Tax-Exempt Bond Fund
----------------------------------------
The investment objective of the STIClassic Georgia Tax-Exempt Bond Fund (the
"Fund") seeks to provide current income exempt from federal and Georgia 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. Returns for the Fund reflect our conservative strategy which tends to
better protect our participants from undue principal risk when interest rates
rise.
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. We monitor 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 underperformed the Treasury market the second half of 1998
as investors sought the safety of Treasuries in an uncertain world economic
environment. The lure of the stock market also kept money out of the municipal
funds. In the first five months of 1999, however, the municipal market was
essentially flat as yields on Treasury issues rose resulting in a municipal
market that outperformed Treasuries. Investors nervously watched economic data
trying to determine if the economy would continue to show strength that could
result in rising inflation and a tightening by the Federal Reserve. Municipals
have been in a trading range for the past year of a high of about 4.60% to a low
of 3.90% for a ten-year AA rated maturity.
Total return for the Fund for the fiscal year ended May 31, 1999 was 3.33%
(Trust Shares) versus 4.62% for the Lehman 10-year Municipal Bond Index.
Issuance of Georgia bonds was fairly active in the second half of 1998. A few
small Georgia issues have come to market to date in 1999, with a $1 billion
Atlanta Water & Sewer deal being the exception. Outside of that, the volume in
Georgia has been extremely light through May 1999. A slightly higher volume is
anticipated for the balance of 1999.
/s/ Signature omitted
--------------------------------------
Gay B. Cash
First Vice President
4
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Cumulative
Return 3 Year 5 Year Inception Inception
Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.33% 6.14% 5.85% 4.55% 26.98%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Georgia Tax-Exempt Bond Fund, Trust Shares
Lehman 10-Year Municipal Bond Index
Lipper Georgia Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Georgia Lipper Georgia
Tax-Exempt Bond Fund, Lehman 10-Year Municipal Debt
Trust Shares Municipal Bond Index Average
------------ -------------------- -------
<S> <C> <C> <C>
1/31/94 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 10,495
5/31/97 11,305 11,769 11,300
5/31/98 12,252 12,860 12,359
5/31/99 12,660 13,455 12,759
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Cumulative
Return 3 Year 5 Year Inception Inception
Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.13% 5.93% 5.63% 4.38% 25.88% Without load
- ----------------------------------------------------------------------------------------------
-0.69% 4.60% 4.82% 3.64% 21.15% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Georgia Tax-Exempt Bond Fund, Investor Shares
Lehman 10-Year Municipal Bond Index
Lipper Georgia Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Georgia Lipper Georgia
Tax-Exempt Bond Fund, Lehman 10-Year Municipal Debt
Investor Shares Municipal Bond Index Average
--------------- -------------------- -------
<S> <C> <C> <C>
1/31/94 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 10,495
5/31/97 10,804 11,769 11,300
5/31/98 11,696 12,860 12,359
5/31/99 12,062 13,455 12,759
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2.63% 5.45% 4.67% 19.87% Without load
- --------------------------------------------------------------------------------
0.64% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Georgia Tax-Exempt Bond Fund, Flex Shares
Lehman 10-Year Municipal Bond Index
Lipper Georgia Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Georgia Lipper Georgia
Tax-Exempt Bond Fund, Lehman 10-Year Municipal Debt
Flex Shares Municipal Bond Index Average
----------- -------------------- -------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,370 10,539 10,482
5/31/97 10,998 11,400 11,286
5/31/98 11,850 12,456 12,344
5/31/99 12,161 13,032 12,744
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
5
<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 fiscal year ended May 31, 1999, the Fund had a total return of 4.25% (Trust
Shares) versus an average return of 3.15% for the Lipper Analytical Service
Intermediate Investment Grade Debt Category. For the same period, the Lehman
Government/Corporate Bond Index, which has no fees taken out, had a return of
4.06%.
The second half of 1998 was an eventful period for the fixed income markets. As
the financial problems in Asia spilled over into Russia and hedge funds,
liquidity in our domestic markets dried up. The Federal Reserve orchestrated a
bail out of a large hedge fund and lowered interest rates three times to
reliquify the markets. This caused interest rates to decline with the long
treasury bond reaching 4 3/4 %. During this period, corporate bonds and mortgage
securities dramatically under performed treasury securities. Our emphasis on
treasury securities in the longer maturity ranges performed well in this
environment.
As we moved into the first half of 1999, interest rates increased and both
mortgages and corporate securities performed well. Our relatively heavy
weightings in both of these sectors added to the total return of the Fund. We
reduced the duration of the portfolio during this period, which also added
value. Toward the end of the period, we reduced our mortgage positions, as they
were primarily premium securities and are very defensive securities. We
currently are shifting emphasis to somewhat higher quality corporate bonds as
they currently represent good relative value.
The Fund continues to be managed with only moderate shifts in the average
maturity (duration). We seek to enhance total return by monitoring and analyzing
the risk/reward trade-offs of different maturities, exploiting the yield spread
between market sectors, credit analysis, and other low risk strategies. By
actively pursuing these strategies, the Fund strives to add total return while
reducing risk.
/s/ Signature omitted
--------------------------------------
L. Earl Denney, CFA
Managing Director
6
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.25% 7.35% 7.28% 6.63% 55.45%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Investment Grade Bond Fund, Trust Shares
Lehman Brothers Government/Corporate Bond Index
Lipper Intermediate Investment Grade Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Investment Lehman Brothers Lipper Intermediate
Grade Bond Fund, Government/Corporate Investment Grade
Trust Shares Bond Index Debt Average
------------ ---------- ------------
<S> <C> <C> <C>
7/31/92 10,000 10,000 10,000
5/31/93 10,736 10,788 10,728
5/31/94 10,861 10,897 10,809
5/31/95 11,990 12,162 11,918
5/31/96 12,472 12,660 12,367
5/31/97 13,344 13,661 13,322
5/31/98 14,801 15,229 14,645
5/31/99 15,430 15,847 15,106
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Cumulative
Return 3 Year 5 Year Inception Inception
Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.86% 6.97% 6.87% 6.31% 53.24% Without load
- ----------------------------------------------------------------------------------------------
0.01% 5.62% 6.05% 5.73% 47.49% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Investment Grade Bond Fund, Investor Shares
Lehman Brothers Government/Corporate Bond Index
Lipper Intermediate Investment Grade Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Investment Lehman Brothers Lipper Intermediate
Grade Bond Fund, Government/Corporate Investment Grade
Investor Shares Bond Index Debt Average
--------------- ---------- ------------
<S> <C> <C> <C>
6/30/92 9,625 10,000 10,000
5/31/93 10,486 11,064 10,959
5/31/94 10,577 11,176 10,999
5/31/95 11,639 12,473 12,121
5/31/96 12,046 12,984 12,587
5/31/97 12,849 14,010 13,554
5/31/98 14,197 15,619 14,889
5/31/99 14,743 16,253 15,457
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
One Year Annualized Annualized Cumulative
Return 3 Year Inception Inception
Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.35% 6.47% 5.49% 23.64% Without load
- --------------------------------------------------------------------------------
1.41% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Investment Grade Bond Fund, Flex Shares
Lehman Brothers Government/Corporate Bond Index
Lipper Intermediate Investment Grade Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Investment Lehman Brothers Lipper Intermediate
Grade Bond Fund, Government/Corporate Investment Grade
Flex Shares Bond Index Debt Average
----------- ---------- ------------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,232 10,327 10,315
5/31/97 10,862 11,143 11,111
5/31/98 11,948 12,422 12,215
5/31/99 12,348 12,927 12,599
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
7
<PAGE>
STI Classic Investment Grade Tax-Exempt Bond Fund
-------------------------------------------------
The STI Classic Investment Grade Tax-Exempt Bond Fund (the "Fund") seeks to
provide high total return through (i) current income exempt from federal income
taxes and (ii) capital appreciation, while preserving the principal amount
invested by investing in investment grade tax-exempt obligations.
In the municipal bond funds we try to limit risk as much as possible. We do not
make major maturity shifts. We will bias the Fund 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 to emphasize the cheap sector of the
yield curve. Also, we take advantage of changes in yield spread. 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 credit
and avoid these credits that are deteriorating. The underlying concept to all
these techniques is to enhance total return without adding risk.
The Fund's return from June 1998 to May 1999 was 4.67% (Trust Shares). The Fund
outperformed the Lipper Intermediate Municipal Debt Average by 0.95%.
1998 saw heavy municipal issuance: most of which came at the longest end of the
yield curve. Most of the individual demand came at the short end. By the end of
1998 the yield curve had steepened considerably with a one-year Triple A rated
GO bond coming down 90 basis points in yield while the five-year fell just 40
basis points and the 30-year fell just 9 basis points. Our decision to focus on
the shorter end of the yield curve was profitable since that was where the
greatest appreciation in bond values took place.
The supply/demand imbalance of the last half of 1998 pushed yields on
municipals, relative to treasuries, to such attractive levels that even
non-traditional buyers of municipals couldn't pass up owning municipals. We saw
the likes of crossover buyers, tender option bond programs, hedge funds, and
arbitrage accounts supporting the municipal market well into early 1999.
While the taxable bond market was working through potential liquidity crises
created by hedge funds, municipal credit spreads stayed narrow and in some cases
narrowed further. Surplus revenues at all levels of municipal government also
contributed to this narrowing of quality spreads. We continue to focus on high
quality bonds, as we do not see adequate compensation for the additional credit
risk.
The first few months of 1999 saw municipals outperform Treasury securities. We
emphasized bonds paying yield premiums because they hold their value better in a
down market. It was difficult to enhance performance with trading activity
because issuance was light.
Our emphasis in the intermediate area of the curve was a negative strategy
during the first few months of 1999. This sector of the market had very limited
support. The retail investor supported the short end of the municipal market
while the longer end was supported by non-traditional buyers, like the
cross-over and hedge players. In the intermediate range we saw the yield on a 7
year Triple A rated municipal bond increase by 23 basis points between January
and May 1999, making the principal value decrease. The yield on a 12 year Triple
A rated municipal bond during the same period increased 32 basis points.
/s/ Signature omitted
--------------------------------------
Ronald H. Schwartz, CFA, CFP
Managing Director
8
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.67% 6.77% 7.26% 6.23% 40.39%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Investment Grade Tax-Exempt Bond Fund, Trust Shares
Lehman Brothers 5-Year G.O. Index
Lipper Intermediate Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Investment
Grade Tax-Exempt Lehman Brothers Lipper Intermediate
Bond Fund 5-Year Municipal Debt
Trust Shares G.O. Index Average
------------ ---------- -------
<S> <C> <C> <C>
10/31/93 10,000 10,000 10,000
5/31/94 9,976 9,943 9,832
5/31/95 10,995 10,627 10,533
5/31/96 11,634 11,131 10,959
5/31/97 12,462 11,807 11,659
5/31/98 13,530 12,629 12,533
5/31/99 14,162 13,248 12,999
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4.35% 6.35% 6.86% 7.33% 63.83% Without load
- ----------------------------------------------------------------------------------------------
0.48% 5.01% 6.04% 6.74% 57.68% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Investment Grade Tax-Exempt Bond Fund, Investors Shares
Lehman Brothers 5-Year G.O. Index
Lipper Intermediate Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Investment
Grade Tax-Exempt Lehman Brothers Lipper Intermediate
Bond Fund 5-Year Municipal Debt
Flex Shares G.O. Index Average
----------- ---------- -------
<S> <C> <C> <C>
6/30/92 9,625 10,000 10,000
5/31/93 10,731 10,778 10,914
5/31/94 11,309 11,112 11,248
5/31/95 12,429 11,877 12,050
5/31/96 13,101 12,440 12,538
5/31/97 13,977 13,196 13,339
5/31/98 15,101 14,114 14,338
5/31/99 15,758 14,806 14,871
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.78% 5.81% 5.60% 24.27% Without load
- --------------------------------------------------------------------------------
1.83% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Investment Grade Tax-Exempt Bond Fund, Flex Shares
Lehman Brothers 5-Year G.O. Index
Lipper Intermediate Municipal Debt Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Investment
Grade Tax-Exempt Lehman Brothers Lipper Intermediate
Bond Fund 5-Year Municipal Debt
Flex Shares G.O. Index Average
----------- ---------- -------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,541 10,465 10,455
5/31/97 11,193 11,102 11,123
5/31/98 12,033 11,874 11,956
5/31/99 12,487 12,456 12,400
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
9
<PAGE>
STI Classic Limited-Term Federal Mortgage Securities Fund
---------------------------------------------------------
The STI Classic Limited-Term Federal Mortgage Securities Fund (the "Fund") seeks
to provide high current income while preserving capital by primarily investing
in U.S. government agency mortgage-backed securities, such as Fannie Mae, GNMA
and collateralized mortgage obligations.
The Fund utilizes an investment philosophy that minimizes the risks of fixed
income investing. Interest rate risk is managed by maintaining a short to
intermediate effective average maturity, and by minimizing maturity shifts.
Credit risk is addressed by emphasizing U.S. government and government agency
securities.
The Fund's intent is to add value by generally emphasizing income or yield.
Additionally, the Fund seeks relative value within the government sponsored
mortgage market and through yield curve analysis.
The Fund's return from June 1998 to May 1999 was 4.75% (Trust Shares). The Fund
outperformed the Lipper Short-Intermediate U.S. Government Average which
returned 3.92%.
Interest rates declined during the Asian crisis as investors fled to quality,
and central banks lowered rates around the world. By the end of calendar '98,
U.S. Treasuries delivered the highest total return. Mortgages generally
under-performed investment grade alternatives as mortgagors refinanced at lower
rates. During this period, the Fund emphasized U.S. Treasuries and
call-protected mortgages.
At the turn of the new year, economic confidence returned and rates began the
current retreat to higher levels. Fortunately, by seeking relative value, the
Fund correctly identified the opportunity created in the mortgage market and
placed a majority of the Fund assets in this sector via higher coupon
securities. This outstanding value in mortgages, along with the high level of
income they generate, helped to preserve principal and generate positive returns
during the current rising rate environment.
/s/ Signature omitted
--------------------------------------
David E. West, CFA
Managing Director
10
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
4.75% 6.10% 6.14% 34.60%
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares
Merril Lynch 1-5 Year Short/Intermediate U.S. Treasury Index
Lipper Short/Intermediate U.S. Government Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Limited-Term Merrill Lynch Lipper
Federal Mortgage 1-5 Year Short/Intermediate
Securities Fund, Short/Intermediate U.S. Government
Trust Shares U.S. Treasury Index Average
------------ ------------------- -------
<S> <C> <C> <C>
6/30/94 10,000 10,000 10,000
5/31/95 10,756 10,809 10,737
5/31/96 11,276 11,341 11,173
5/31/97 12,002 12,110 11,889
5/31/98 12,856 13,040 12,762
5/31/99 13,467 13,722 13,262
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.47% 5.86% 6.08% 33.29% Without load
- --------------------------------------------------------------------------------
1.85% 4.95% 5.52% 29.90% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Limited-Term Federal Mortgage Securities Fund, Investor Shares
Merril Lynch 1-5 Year Short/Intermediate U.S. Treasury Index
Lipper Short/Intermediate U.S. Government Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Limited-Term Merrill Lynch Lipper
Federal Mortgage 1-5 Year Short/Intermediate
Securities Fund, Short/Intermediate U.S. Government
Investor Shares U.S. Treasury Index Average
--------------- ------------------- -------
<S> <C> <C> <C>
7/31/94 9,750 10,000 10,000
5/31/95 10,440 10,697 10,629
5/31/96 10,919 11,223 11,060
5/31/97 11,593 11,984 11,779
5/31/98 12,398 12,904 12,633
5/31/99 12,953 13,579 13,128
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.14% 5.47% 5.14% 22.05% Without load
- --------------------------------------------------------------------------------
2.18% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Limited-Term Federal Mortgage Securities Fund, Flex Shares
Merril Lynch 1-5 Year Short/Intermediate U.S. Treasury Index
Lipper Short/Intermediate U.S. Government Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Limited-Term Merrill Lynch Lipper
Federal Mortgage 1-5 Year Short/Intermediate
Securities Fund, Short/Intermediate U.S. Government
Flex Shares U.S. Treasury Index Average
----------- ------------------- -------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,393 10,431 10,353
5/31/97 10,996 11,139 11,017
5/31/98 11,709 11,994 11,825
5/31/99 12,194 12,621 12,289
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
11
<PAGE>
STI Classic Maryland Municipal Bond Fund
----------------------------------------
The STI Classic Maryland Municipal Bond Fund (the "Fund") is a new member of the
STI Classic mutual fund family, as the successor fund to the former CrestFunds
Maryland Municipal Bond Fund. CrestFunds merged into STI on May 24, 1999. The
Fund invests substantially all of its assets in municipal securities with income
that is exempt from federal and Maryland state income taxes. The Fund seeks high
current, tax-exempt income consistent with the preservation of capital.
The past year was volatile and exciting for the economy and the municipal bond
markets, as policy-makers and investors successfully navigated potential
significant pitfalls. Tax-exempt yields ended the fiscal year very close to the
levels at the beginning of the fiscal year, but rates were far from stable. The
Fund performed well in this changing environment, taking advantage of enhanced
income yields offered by high-quality revenue bonds. The Fund returned 4.19%
(Trust Shares) during the twelve months ended May 31, 1999.
The beginning of the fiscal year, the second half of 1998, was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Russia and Latin America fell victim to backlash, sending investors to the
safety of U.S. Treasury securities. As a result, bond yields fell dramatically
during the fall, and the Federal Reserve cut interest rates three times in an
effort to restore liquidity to international financial markets. While municipal
bonds generally under-performed comparable maturity Treasury securities, the
yield on a AAA-rated, tax free, 5-year general obligation securities fell from
4.1% to 3.6%.
The drop in yields occurred within a healthy domestic economy highlighted by low
unemployment and high consumer confidence. The drop in Treasury yields pushed
mortgage rates to new lows, lifting the housing market to new cyclical highs.
Municipalities generally enjoyed high credit ratings coming from fiscal
surpluses. As a result, many embarked on a number of spending initiatives. Much
of the new borrowing came in the form of higher yielding revenue bonds from
housing and local water authorities, among others. The Fund purchased a number
of these securities as a means of boosting the current yield to Fund
shareholders.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America, as
governments gradually swallowed painful reform measures dictated by the
International Monetary Fund. This improved the outlook for the manufacturing
sector in the U.S. In addition, oil prices, which plummeted to under $11/barrel,
jumped over 70% on news that world oil producers were acting together to reduce
the global energy glut. Bond investors, concerned about a possible pick up in
future inflation, began to worry that the Federal Reserve might raise interest
rates. The yield on the 5-year tax free municipal general obligation bond
returned to 4% during the spring.
The outlook for the U.S. and world economies remains favorable based on current
reports, suggesting that credit quality can remain high over the near term.
Tight labor markets remain a concern for the inflation-wary Fed, and interest
rates could face additional upward pressure over the near term. However, the
longer-term outlook for inflation is favorable in our view, and interest rates
may head lower following some near-term tightness. The Fund will continue to
emphasize high-quality, current, tax free income for our shareholders, while
maintaining a relatively neutral average duration.
/s/ Signature omitted
--------------------------------------
Robert S. Bowman, CFA
Vice President
12
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
4.19% 6.59% 4.52% 15.44%
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Maryland Municipal Bond Fund, Trust Shares
Lehman G.O. Bond Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic
Maryland Municipal
Bond Fund, Lehman G.O.
Trust Shares Bond Index
------------ ----------
<S> <C> <C>
3/31/96 10,000 10,000
5/31/96 9,846 9,949
5/31/97 10,500 10,767
5/31/98 11,443 11,734
5/31/99 11,923 12,300
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.25% 5.71% 5.28% 17.30% Without load
- --------------------------------------------------------------------------------
1.25% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Maryland Municipal Bond Fund, Flex Shares
Lehman G.O. Bond Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic
Maryland Municipal
Bond Fund, Lehman G.O.
Flex Shares Bond Index
----------- ----------
<S> <C> <C>
4/30/96 10,000 10,000
5/31/96 9,936 9,984
5/31/97 10,514 10,805
5/31/98 11,366 11,775
5/31/99 11,735 12,344
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
13
<PAGE>
STI Classic Short-Term Bond Fund
--------------------------------
The investment objective of the STI Classic Short-Term Bond Fund (the "Fund") is
to provide high current income while preserving 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 moderate 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 over the last twelve months was 4.06% (Trust
Shares), as compared to 5.29% for the Salomon One-Year Treasury Benchmark On-the
Run and 5.38% for the Salomon 1-3 Year Treasury/Government Sponsored/Corporate
Index, neither of which include fees or expenses. We believe the Fund continues
to meet its objective.
/s/ Signature
--------------------------------------
Agnes G. Pampush, CFA
Vice President
14
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.06% 5.88% 5.93% 5.24% 37.37%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Short-Term Bond Fund, Trust Shares
Salomon 1-3 Year Treasury/Government Sponsored/Corporate Index
Salomon One Year Treasury Benchmark On-the-Run
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
Salomon 1-3 Year
STI Classic Short-Term Treasury/Government Salomon One Year
Bond Fund, Sponsored/Corporate Treasury Benchmark
Trust Shares Index On-the-Run
------------ ----- ----------
<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
5/31/97 12,231 12,384 12,315
5/31/98 13,125 13,254 13,061
5/31/99 13,658 13,968 13,752
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.88% 5.67% 5.73% 4.96% 34.96% Without load
- ----------------------------------------------------------------------------------------------
1.76% 4.97% 5.31% 4.61% 32.20% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Short-Term Bond Fund, Investor Shares
Salomon 1-3 Year Treasury/Government Sponsored/Corporate Index
Salomon One Year Treasury Benchmark On-the-Run
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
Salomon 1-3 Year
STI Classic Short-Term Treasury/Government Salomon One Year
Bond Fund, Sponsored/Corporate Treasury Benchmark
Investor Shares Index On-the-Run
--------------- ----- ----------
<S> <C> <C> <C>
3/31/93 9,800 10,000 10,000
5/31/93 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
5/31/97 11,887 12,384 12,315
5/31/98 12,742 13,254 13,061
5/31/99 13,236 13,968 13,752
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.50% 5.31% 4.94% 20.93% Without load
- --------------------------------------------------------------------------------
1.53% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Short-Term Bond Fund, Flex Shares
Salomon 1-3 Year Treasury/Government Sponsored/Corporate Index
Salomon One Year Treasury Benchmark On-the-Run
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
Salomon 1-3 Year
STI Classic Short-Term Treasury/Government Salomon One Year
Bond Fund, Sponsored/Corporate Treasury Benchmark
Flex Shares Index On-the-Run
----------- ----- ----------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,359 10,481 10,511
5/31/97 10,941 11,176 11,166
5/31/98 11,689 11,962 11,843
5/31/99 12,098 12,606 12,469
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
15
<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 high current income while preserving 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.
We believe the Fund met its objective to provide incremental return over
treasury money market funds.
/s/ Signature omitted
--------------------------------------
David S. Yealy
Vice President
16
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.59% 5.55% 5.50% 4.84% 34.15%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Short-Term U.S. Treasury Securities Fund, Trust Shares
Salomon 1-3 Year Treasury Index
Salomon 1-3 Year Treasury/Government Sponsored/Corporate Index
Salomon 6-Month Treasury Bill Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Salomon
Short-Term 1-3 Year
U.S. Treasury Salomon Treasury/Government Salomon 6-Month
Securities Fund, 1-3 Year Sponsored/Corporate Treasury Bill
Trust Shares Treasury Index Index Index
------------ -------------- ----- -----
<S> <C> <C> <C> <C>
3/31/93 10,000 10,000 10,000 10,000
5/31/93 10,024 10,036 10,039 10,053
5/31/94 10,242 10,244 10,260 10,391
5/31/95 10,868 10,991 11,021 10,953
5/31/96 11,382 11,523 11,614 11,554
5/31/97 12,038 12,333 12,384 12,176
5/31/98 12,796 13,194 13,254 12,837
5/31/99 13,384 13,896 13,968 13,474
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4.54% 5.39% 5.34% 4.68% 32.83% Without load
- ----------------------------------------------------------------------------------------------
3.50% 5.03% 5.13% 4.51% 31.52% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Short-Term U.S. Treasury Securities Fund, Investor Shares
Salomon 1-3 Year Treasury Index
Salomon 1-3 Year Treasury/Government Sponsored/Corporate Index
Salomon 6-Month Treasury Bill Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Salomon
Short-Term 1-3 Year
U.S. Treasury Salomon Treasury/Government Salomon 6-Month
Securities Fund, 1-3 Year Sponsored/Corporate Treasury Bill
Investor Shares Treasury Index Index Index
--------------- -------------- ----- -----
<S> <C> <C> <C> <C>
3/31/93 9,900 10,000 10,000 10,000
5/31/93 9,921 10,036 10,039 10,053
5/31/94 10,122 10,244 10,260 10,391
5/31/95 10,732 10,991 11,021 10,953
5/31/96 11,217 11,523 11,614 11,554
5/31/97 11,844 12,333 12,384 12,176
5/31/98 12,559 13,194 13,254 12,837
5/31/99 13,130 13,896 13,968 13,474
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4.32% 5.13% 4.81% 20.28% Without Load
- --------------------------------------------------------------------------------
2.32% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Short-Term U.S. Treasury Securities Fund, Flex Shares
Salomon 1-3 Year Treasury Index
Salomon 1-3 Year Treasury/Government Sponsored/Corporate Index
Salomon 6-Month Treasury Bill Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Salomon
Short-Term 1-3 Year
U.S. Treasury Salomon Treasury/Government Salomon 6-Month
Securities Fund, 1-3 Year Sponsored/Corporate Treasury Bill
Flex Shares Treasury Index Index Index
----------- -------------- ----- -----
<S> <C> <C> <C> <C>
6/30/95 10,000 10,000 10,000 10,000
5/31/96 10,357 10,428 10,481 10,500
5/31/97 10,894 11,161 11,176 11,065
5/31/98 11,537 11,940 11,962 11,666
5/31/99 12,036 12,576 12,606 12,244
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
17
<PAGE>
STI Classic U.S. Government Securities Fund
-------------------------------------------
The objective for the STI Classic U.S. Government Securities Fund (the "Fund")
is to provide high current income while preserving capital by investing in
obligations issued or guaranteed by the U.S. Government or its agencies or
instrumentalities. We believe the Fund met its objectives for the fiscal year of
operations ending May 31, 1999. The Fund was comprised of 71% U.S. Treasuries
and 29% Government Agency Mortgage-Backed Securities.
We feel domestic economic growth will continue on a moderate sustainable path
and that inflation will remain well controlled. With inflation at these low
levels we feel the Fed will not have to take much additional action to raise
rates and have a positive outlook for the bond market. We have positioned the
Fund to take advantage of this outlook.
/s/ Signature omitted
--------------------------------------
Charlie B. Leonard, CFA
First Vice President
/s/ Signature omitted
--------------------------------------
Mike L. Ford
Associate
18
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
3.90% 7.36% 6.92% 38.16%
- --------------------------------------------------------------------------------
</TABLE>
STI Classic U.S. Government Securities Fund, Trust Shares
Merrill Government/Mortgage Custom Index
Lipper Intermediate Government Funds Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic U.S. Government Lipper Intermediate
Securities Fund, Merrill Government/ Government Funds
Trust Shares Mortgage Custom Index Average
------------ --------------------- -------
<S> <C> <C> <C>
8/31/94 10,000 10,000 10,000
5/31/95 10,832 11,138 10,754
5/31/96 11,132 11,627 11,113
5/31/97 11,972 12,572 11,885
5/31/98 13,260 13,920 12,982
5/31/99 13,777 14,563 13,429
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.56% 6.96% 6.39% 36.19% Without load
- --------------------------------------------------------------------------------
-0.35% 5.60% 5.58% 31.08% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic U.S. Government Securities Fund, Investor Shares
Merrill Government/Mortgage Custom Index
Lipper Intermediate Government Funds Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic U.S. Government Lipper Intermediate
Securities Fund, Merrill Government/ Government Funds
Investor Shares Mortgage Custom Index Average
--------------- --------------------- -------
<S> <C> <C> <C>
6/30/94 9,625 10,000 10,000
5/31/95 10,572 11,138 10,914
5/31/96 10,833 11,627 11,278
5/31/97 11,614 12,572 12,062
5/31/98 12,802 13,920 13,176
5/31/99 13,257 14,563 13,629
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2.99% 6.41% 5.17% 22.16% Without load
- --------------------------------------------------------------------------------
1.02% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic U.S. Government Securities Fund, Flex Shares
Merrill Government/Mortgage Custom Index
Lipper Intermediate Government Funds Average
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic U.S. Government Lipper Intermediate
Securities Fund, Merrill Government/ Government Funds
Flex Shares Mortgage Custom Index Average
----------- --------------------- -------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 10,143 10,365 10,271
5/31/97 10,809 11,207 10,985
5/31/98 11,866 12,409 11,999
5/31/99 12,221 12,982 12,412
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
19
<PAGE>
STI Classic Virginia Intermediate Municipal Bond Fund
-----------------------------------------------------
The STI Classic Virginia Intermediate Municipal Bond Fund (the "Fund") is a new
member of the STI Classic mutual fund family, as the successor fund to the
former CrestFunds Virginia Intermediate Municipal Bond Fund. CrestFunds merged
into STI on May 24, 1999. The Fund invests substantially all of its assets in
municipal securities with income that is exempt from federal and Virginia state
income taxes. The Fund seeks to provide high current, tax-exempt income
consistent with the preservation of capital with a high quality intermediate
maturity municipal portfolio.
The past year was volatile and exciting for the economy and the municipal bond
markets, as policy-makers and investors successfully navigated potential
significant pitfalls. Tax-exempt yields ended the fiscal year very close to the
levels at the beginning of the fiscal year, but rates were far from stable. The
Fund performed well in this changing environment, taking advantage of enhanced
income yields offered by high-quality revenue bonds. Yields of Virginia
municipal securities tend to have somewhat lower yields relative to those of
other states due to the strong reputation for fiscal discipline enjoyed by the
state and many of its localities. The Fund returned 3.47% (Trust Shares) during
the twelve months ended May 31, 1999.
Looking back twelve months, recall the second half of 1998 was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Russia and Latin America fell victim to backlash, sending investors to the
safety of U.S. Treasury securities. As a result, bond yields fell dramatically
during the fall, and the Federal Reserve cut interest rates three times in an
effort to restore liquidity to financial markets. While municipal bonds
generally under-performed comparable maturity Treasury securities, the yield on
a AAA-rated, tax free, 5-year general obligation security fell from 4.1% to
3.6%.
The drop in yields occurred within a healthy domestic economy highlighted by low
unemployment and high consumer confidence. The drop in Treasury yields pushed
mortgage rates to new lows, lifting the housing market to new cyclical highs.
Municipalities generally enjoyed strengthening credit ratings coming from fiscal
surpluses. Combined with high levels of consumer confidence, many embarked on a
number of spending initiatives. Much of the new borrowing came in the form of
higher yielding revenue bonds to build schools and courthouses, meet increased
housing demand, and expand water and sewer services. The Fund focused on these
types of issues, which not only increased the diversification of the portfolio,
but also boosted the current yield to Fund shareholders.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America. This
improved the outlook for the manufacturing sector in the U.S. In addition, oil
prices, which plummeted to under $11/barrel, jumped over 70% on news that world
oil producers were acting together to reduce the global energy glut. Bond
investors, concerned about a possible pick up in future inflation, began to
worry that the Federal Reserve might raise interest rates. As interest rates
rose, municipals outperformed taxable securities even as the yield on the 5-year
tax free municipal general obligation bond returned to 4% during the spring.
The outlook for the U.S. and world economies remains favorable based on current
reports, suggesting that credit quality can remain high over the near term.
Tight labor markets remain a concern for the inflation-wary Fed, and interest
rates could face additional upward pressure over the near term. However, the
longer-term outlook for inflation is favorable in our view, and interest rates
may head lower following some near-term tightness. The Fund will continue to
emphasize high-quality, current, tax free income for our shareholders, while
maintaining an intermediate, 5-10 year average maturity.
/s/ Signature omitted
--------------------------------------
Cheryl L. Page, CFA
Vice President
20
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.47% 5.59% 5.65% 4.95% 36.10%
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Virginia Intermediate Municipal Bond Fund, Trust Shares
Lehman 5-Year G.O. Bond Index
Lehman G.O. Bond Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Virginia
Intermediate Municipal Lehman 5-Year Lehman G.O.
Bond Fund, Trust Shares G.O. Bond Index Bond Index
----------------------- --------------- ----------
<S> <C> <C> <C>
1/31/93 10,000 10,000 10,000
5/31/93 10,282 10,246 10,366
5/31/94 10,280 10,563 10,657
5/31/95 11,089 11,290 11,543
5/31/96 11,494 11,825 12,082
5/31/97 12,179 12,544 13,075
5/31/98 13,078 13,417 14,249
5/31/99 13,532 14,075 14,937
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.50% 5.63% 5.65% 4.58% 31.24% Without load
- ----------------------------------------------------------------------------------------------
-0.35% 4.29% 4.84% 3.92% 26.30% With load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Virginia Intermediate Municipal Bond, Investor Shares
Lehman 5-Year G.O. Bond Index
Lehman G.O. Bond Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Virginia
Intermediate Municipal Lehman 5-Year Lehman G.O.
Bond Fund, Investor Shares G.O. Bond Index Bond Index
-------------------------- --------------- ----------
<S> <C> <C> <C>
5/31/93 9,625 10,000 10,000
5/31/94 9,623 10,310 10,281
5/31/95 10,369 11,019 11,135
5/31/96 10,746 11,542 11,655
5/31/97 11,386 12,243 12,613
5/31/98 12,236 13,096 13,746
5/31/99 12,664 13,737 14,410
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
21
<PAGE>
STI Classic Virginia Municipal Bond Fund
----------------------------------------
The STI Classic Virginia Municipal Bond Fund (the "Fund") is a new member of the
STI Classic mutual fund family, as the successor fund to the former CrestFunds
Virginia Municipal Bond Fund. CrestFunds merged into STI on May 24, 1999. The
Fund invests substantially all of its assets in municipal securities with income
that is exempt from federal and Virginia state income taxes. The Fund seeks high
current, tax-exempt income consistent with the preservation of capital.
The past year was volatile and exciting for the economy and the municipal bond
markets, as policy-makers and investors successfully navigated potential
significant pitfalls. Tax-exempt yields ended the fiscal year very close to the
levels at the beginning of the fiscal year, but rates were far from stable. The
Fund performed well in this changing environment, taking advantage of enhanced
income yields offered by high-quality revenue bonds. The Fund returned 3.75%
(Trust Shares) during the twelve months ended May 31, 1999.
The beginning of the fiscal year, the second half of 1998, was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Russia and Latin America fell victim to backlash, sending investors to the
safety of U.S. Treasury securities. As a result, bond yields fell dramatically
during the fall, and the Federal Reserve cut interest rates three times in an
effort to restore liquidity to international financial markets. While municipal
bonds generally under-performed comparable maturity Treasury securities, the
yield on a AAA-rated, tax free, 5-year general obligation security fell from
4.1% to 3.6%.
The drop in yields occurred within a healthy domestic economy highlighted by low
unemployment and high consumer confidence. The drop in Treasury yields pushed
mortgage rates to new lows, lifting the housing market to new cyclical highs.
Municipalities generally enjoyed high credit ratings coming from fiscal
surpluses. As a result, many embarked on a number of spending initiatives. Much
of the new borrowing came in the form of higher yielding revenue bonds from
housing and local water authorities, among others. The Fund purchased a number
of these securities as a means of boosting the current yield to Fund
shareholders.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America, as
governments gradually swallowed painful reform measures dictated by the
International Monetary Fund. This improved the outlook for the manufacturing
sector in the U.S. In addition, oil prices, which plummeted to under $11/barrel,
jumped over 70% on news that world oil producers were acting together to reduce
the global energy glut. Bond investors, concerned about a possible pick up in
future inflation, began to worry that the Federal Reserve might raise interest
rates. The yield on the 5-year tax free municipal general obligation bond
returned to 4% during the spring.
The outlook for the U.S. and world economies remains favorable based on current
reports, suggesting that credit quality can remain high over the near term.
Tight labor markets remain a concern for the inflation-wary Fed, and interest
rates could face additional upward pressure over the near term. However, the
longer-term outlook for inflation is favorable in our view, and interest rates
may head lower following some near-term tightness. The Fund will continue to
emphasize high-quality, current, tax free income for our shareholders, while
maintaining a relatively neutral average duration.
/s/ Signature omitted
--------------------------------------
Robert S. Bowman, CFA
Vice President
22
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
3.75% 6.65% 6.03% 27.47%
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Virginia Municipal Bond Fund, Trust Shares
Lehman G.O. Bond Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Virginia
Municipal Bond Fund, Lehman G.O.
Trust Shares Bond Index
------------ ----------
<S> <C> <C>
4/30/95 10,000 10,000
5/31/95 10,333 10,298
5/31/96 10,568 10,779
5/31/97 11,302 11,665
5/31/98 12,356 12,712
5/31/99 12,820 13,326
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2.90% 5.77% 5.02% 22.36% Without load
- --------------------------------------------------------------------------------
0.92% With load
- --------------------------------------------------------------------------------
</TABLE>
STI Classic Virginia Municipal Bond Fund, Flex Shares
Lehman G.O. Bond Index
COMPARISON OF CHANGE IN THE VALUE
OF A $10,000 INVESTMENT
[Line Graph Omitted--Plot Points as Follows:]
<TABLE>
<CAPTION>
STI Classic Virginia
Municipal Bond Fund, Lehman G.O.
Flex Shares Bond Index
----------- ----------
<S> <C> <C>
4/30/95 10,000 10,000
5/31/95 10,336 10,298
5/31/96 10,480 10,779
5/31/97 11,121 11,665
5/31/98 12,051 12,712
5/31/99 12,400 13,326
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
23
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Florida Tax-Exempt Bond Fund
- -------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- -------------------------------------------------------------------------------
Municipal Bonds (92.9%)
Florida (85.2%)
Brevard County, School Board,
Ser A, COP (AMBAC)
5.400%, 07/01/12 $ 1,500 $ 1,573
Brevard County, State Health
Facilities Authority, Holmes
Regional Medical Center Project,
RB, Callable 10/01/03 @ 102 (MBIA)
5.700%, 10/01/08 3,000 3,239
Brevard County, State Health
Facilities Authority, Wuesthoff
Memorial Hospital Project, Ser A,
RB (MBIA)
6.250%, 04/01/06 930 1,033
Broward County, School District, Ser B,
COP, Callable 07/01/07 @ 101
(AMBAC)
5.100%, 07/01/09 1,465 1,527
Citrus County, Pollution Control,
Florida Power, Crystal River Project,
RB, Callable 08/01/02 @ 102
6.350%, 02/01/22 335 360
Dade County, Aviation Revenue,
Miami International Airport,
Ser B, RB, AMT, Callable
10/01/07 @ 101.50 (FSA)
5.125%, 10/01/13 2,255 2,256
Dade County, Aviation Revenue,
RB, AMT, Callable 10/01/02
@ 102 (MBIA)
6.600%, 10/01/22 825 898
Dade County, Aviation Revenue,
Ser A, RB, Callable 10/01/05 @
102 (AMBAC)
6.000%, 10/01/09 500 550
Dade County, Educational Facility,
University of Miami,
Ser A, RB (MBIA)
5.500%, 04/01/01 2,465 2,544
Dade County, School Board,
Ser B, COP (AMBAC)
5.750%, 08/01/03 250 267
Dade County, Seaport, RB (MBIA)
6.200%, 10/01/08 750 846
6.500%, 10/01/09 1,000 1,158
6.200%, 10/01/10 1,000 1,132
Dade County, State Educational
Facilities Authority, University
of Miami, RB, Callable
04/01/06 @ 102 (MBIA)
5.750%, 04/01/20 2,000 2,108
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- -------------------------------------------------------------------------------
Florida--continued
Dade County, State Educational
Facilities Authority, University
of Miami, Ser A, RB (MBIA)
6.000%, 04/01/08 $ 755 $ 836
Dade County, Water & Sewer,
RB (FGIC)
6.250%, 10/01/07 1,000 1,124
Daytona Beach, Water & Sewer,
ETM, RB, Callable
11/15/1999 @ 102 (F)
6.750%, 11/15/07 1,000 1,106
Deerfield Beach, Water & Sewer,
RB (FGIC)
6.125%, 10/01/06 250 274
Gainesville, Utility Systems,
Ser A, RB
5.750%, 10/01/04 1,300 1,404
5.750%, 10/01/09 750 826
Gulf Breeze, Local Government
Lien, Ser B, RB, Mandatory
Tender 12/01/08 (FGIC)
5.650%, 12/01/15 460 491
Gulf Breeze, Local Government
Lien, Ser B, RB, Mandatory
Tender 12/01/09 (FGIC)
5.750%, 12/01/15 410 440
Hillsborough County,
Capital Improvement Program,
ETM, RB (FGIC) (F)
5.900%, 08/01/04 300 325
Hillsborough County,
School Board Revenue, COP,
Callable 07/01/06 @ 100 (MBIA)
5.875%, 07/01/08 1,000 1,098
Hillsborough County,
University Community Hospital,
RB (MBIA)
6.500%, 08/15/19 145 170
Indian Trace Community,
Water Management Split Benefit,
Ser A-1, RB, Callable
05/01/05 @ 102 (MBIA)
5.500%, 05/01/07 455 487
Jacksonville, Electric Authority,
Bulk Power Supply, RB,
Prerefunded 10/01/00 @ 101.5 (F)
6.750%, 10/01/16 250 265
Jacksonville, Excise Tax, Ser B,
RB, AMT, Callable
10/01/03 @ 100 (FGIC)
5.200%, 10/01/04 1,500 1,546
24
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Florida--continued
Jacksonville, River City
Renaissance Project, RB (FGIC)
6.000%, 10/01/04 $ 2,430 $ 2,653
Jacksonville, State Health
Facilities Authority,
Charity Obligation Group,
Ser A, RB , Callable
08/15/07 @ 101 (MBIA)
5.250%, 08/15/15 1,465 1,481
Jacksonville, Water & Sewer,
RB, Prerefunded 09/30/08 @ 101
(MBIA) (G)
5.000%, 10/01/20 610 637
Lakeland, Electric & Water, Ser A,
RB, Callable 10/01/09 @ 101
(MBIA)
5.000%, 10/01/36 3,000 2,868
Lakeland, Electric & Water, Ser B,
RB (FSA)
6.550%, 10/01/05 2,590 2,926
Lakeland, Electric & Water, Ser C,
RB (FSA)
6.050%, 10/01/07 1,000 1,116
Lee County, Industrial
Development Authority,
Bonita Springs Utilities Project, RB,
Callable 11/01/06 @ 101 (MBIA)
5.750%, 11/01/10 1,480 1,576
Lee County, Water & Sewer, Ser A, RB,
Callable 10/01/09 @ 101 (AMBAC)
4.750%, 10/01/19 3,720 3,507
Manatee County, Community
Redevelopment Administration,
Center Project, RB, Callable
04/01/00 @ 102 (MBIA)
7.000%, 04/01/08 1,000 1,049
Martin County, State Health Facilities
Authority, Martin Memorial
Medical Center, Ser B, RB,
Callable 11/15/07 @ 102 (MBIA)
5.150%, 11/15/11 1,070 1,097
Miami, Packaging Facility, RB (MBIA)
5.250%, 10/01/15 1,000 1,033
Miami-Dade County, School District,
GO (FSA)
5.375%, 08/01/12 5,000 5,283
Miami-Dade County, School District,
Ser C, COP, Callable
08/01/08 @ 101 (FSA)
5.250%, 08/01/13 1,910 1,957
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Florida--continued
Miami-Dade County, Special
Obligation, RB, Callable
04/01/08 @ 86.60 (MBIA) (A)
0.000% 10/01/11 $ 1,635 $ 881
Miami-Dade County,
USMA Public Improvements, RB,
Callable 10/01/09 @ 101 (FSA)
5.125%, 10/01/13 2,515 2,565
North Broward, Hospital District,
ETM, RB (MBIA) (G)
5.950%, 01/01/01 1,000 1,034
Orange County, Public Facilities,
Ser A, RB, Callable
10/01/04 @ 102 (AMBAC)
5.650%, 10/01/07 200 215
Orange County, State Housing
Finance Authority, Single
Family Mortgage, Ser B, RB,
Callable 9/01/07 @ 102
5.800%, 09/01/17 655 676
Orlando, Aviation Authority,
Airport Facilities, RB,
AMT (FGIC)
5.250%, 10/01/13 1,725 1,770
5.500%, 10/01/17 1,810 1,882
Orlando, Aviation Authority,
Airport Facilities, Ser A, RB,
AMT, Callable 10/01/03 @
102 (AMBAC)
5.400%, 10/01/06 1,340 1,409
Orlando, Electric & Water, Ser D, RB
6.750%, 10/01/17 5,385 6,430
Osceola County, COP (AMBAC)
6.250%, 06/01/01 1,080 1,133
Palm Beach County, Apartment
System, RB, Callable
10/01/01 @ 102 (MBIA)
7.625%, 10/01/04 1,410 1,550
Palm Beach County, Criminal
Justice Facilities, RB (FGIC)
5.375%, 06/01/09 1,500 1,600
5.750%, 06/01/12 2,000 2,184
Palm Beach County,
Solid Waste Authority, Ser A,
ETM, RB (AMBAC) (F)
6.000%, 10/01/09 300 338
25
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Florida Tax-Exempt Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Florida--continued
Palm Beach County,
Solid Waste Authority,
Ser A, RB (AMBAC)
6.000%, 10/01/09 $ 2,225 $ 2,471
Pensacola, Airport, Ser A, RB, AMT,
Callable 10/01/08 @ 102 (MBIA)
6.250%, 10/01/09 505 565
6.000%, 10/01/12 1,075 1,170
Pinellas County, Morton Plant
Health Systems Project, RB,
Callable 11/15/03 @ 102 (MBIA)
5.500%, 11/15/08 1,500 1,580
Pinellas County, State Housing
Finance Authority,
Single Family Mortgage, Ser C,
RB, Callable 03/01/07 @ 102
5.050%, 09/01/07 215 221
5.100%, 09/01/08 230 236
Plant City, Utility System, RB (MBIA)
6.000%, 10/01/15 400 448
Polk County, Utility System, ETM,
RB (FGIC) (G)
6.000%, 10/01/08 2,250 2,468
Reedy Creek, Utility System,
Ser 1991-1, RB, Prerefunded
10/01/01 @ 101 (MBIA) (F)
6.250%, 10/01/11 405 432
South Broward, Hospital District, RB,
Callable 05/01/03 @ 102 (AMBAC)
7.500%, 05/01/08 1,000 1,137
St. Lucie County, School District, GO,
Callable 07/01/02 @ 102 (AMBAC)
6.000%, 07/01/04 500 537
State, Aqueduct Authority,
RB, Prerefunded 09/01/01 @ 101
(AMBAC)
6.750%, 09/01/21 170 183
State, Board of Education,
Capital Outlay, GO
6.100%, 06/01/00 125 127
State, Board of Education,
Capital Outlay, Ser A, GO,
Callable 06/01/00 @ 102
7.250%, 06/01/23 355 374
State, Board of Education,
Capital Outlay, Ser A, GO,
Callable 01/01/08 @ 101
5.250%, 01/01/12 2,495 2,571
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Florida--continued
State, Board of Education,
Capital Outlay, Ser A, GO,
Callable 01/01/09 @ 101
4.750%, 01/01/19 $ 2,000 $ 1,885
State, Board of Education,
Capital Outlay, Ser B, GO (F)
6.000%, 06/01/02 1,000 1,054
State, Board of Education,
Capital Outlay, Ser B, GO,
Callable 06/01/02 @ 101
5.900%, 06/01/12 450 480
6.000%, 06/01/15 170 182
State, Board of Education, Ser B,
GO, Callable 06/01/01 @ 101
6.000%, 06/01/22 500 535
State, Board of Education, Ser C,
ETM, GO (F)
7.100%, 06/01/07 190 192
State, Department of General Services,
Preservation 2000, Ser A , RB,
Callable 07/01/09 @ 101 (FGIC)
5.250%, 07/01/12 2,000 2,066
State, Finance Department,
Department of Natural Resources,
Preservation 2000, Ser A, RB,
Prerefunded 07/01/01 @ 102
(AMBAC) (F)
6.750%, 07/01/06 80 86
State, Finance Department, General
Services, Environmental Protection,
Preservation 2000, Ser B, RB,Callable
07/01/08 @ 101 (FSA)
5.250%, 07/01/12 3,000 3,092
State, Municipal Power Agency,
Saint Lucie Project, ETM, RB (F)
5.000%, 10/01/17 500 496
Sunrise, Utility System, RB,
Callable 10/01/18 @ 100
(AMBAC)
5.200%, 10/01/22 2,000 2,010
5.000%, 10/01/28 1,500 1,457
Sunrise, Utility System, Ser A,
RB (AMBAC) (A)
0.000%, 10/01/09 1,000 617
Tallahassee, Utility System,
Ser B, RB, Prerefunded
10/01/99 @ 102 (F)
6.900%, 10/01/14 240 248
26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Florida--continued
Tampa, Health System,
Catholic Health, Ser A-1, RB,
Callable 11/15/08 @ 102 (MBIA)
5.250%, 11/15/11 $ 2,300 $ 2,362
Tampa, Health System,
Catholic Health, Ser A-2, RB,
Callable 11/15/08 @ 102 (AMBAC)
5.250%, 11/15/10 2,030 2,074
Tampa, Refunding Bond, RB,
Callable 10/1/01 @ 102 (AMBAC)
7.050%, 10/01/07 1,000 1,089
Tampa, Special Tax Allocation,
Callable 10/01/01 @ 102 (AMBAC)
6.900%, 10/01/09 1,500 1,626
---------
116,804
---------
Puerto Rico (7.7%)
Commonwealth, Aqueduct & Sewer
Authority, RB (MBIA)
6.250%, 07/01/12 1,000 1,147
Commonwealth, GO (MBIA)
5.650%, 07/01/15 1,000 1,084
Commonwealth, Electric Power
Authority, Ser S, RB
5.500%, 07/01/00 200 205
Commonwealth,
Highway & Transportation
Authority, Ser X, RB (MBIA)
5.500%, 07/01/15 1,690 1,804
Commonwealth,
Highway & Transportation
Authority, Ser Z, RB (MBIA)
6.250%, 07/01/14 3,000 3,460
Commonwealth, Housing Finance,
Homeowner Mortgage, Ser A, AMT,
Callable 12/01/08 @ 101 (GNMA)
5.100%, 12/01/18 2,000 2,002
Commonwealth, Public Buildings
Authority, Guaranteed Government
Facilities, Ser A, RB (AMBAC)
6.250%, 07/01/14 750 865
---------
10,567
---------
Total Municipal Bonds
(Cost $126,082) 127,371
---------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Cash Equivalents (7.7%)
AIM Management Institutional
Tax-Free Portfolio $ 3,843 $ 3,843
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio 6,715 6,715
---------
Total Cash Equivalents
(Cost $10,558) 10,558
---------
Total Investments (100.6%)
(Cost $136,640) 137,929
---------
Other Assets and Liabilities, Net (-0.6%) (759)
---------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 11,196,099 outstanding shares of
beneficial interest 117,104
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
358,375 outstanding shares of
beneficial interest 3,587
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
1,390,405 outstanding shares of
beneficial interest 14,763
Overdistributed net investment income (5)
Accumulated net realized gain
on investments 432
Net unrealized appreciation on investments 1,289
---------
Total Net Assets (100.0%) $ 137,170
=========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.59
=========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.60
=========
Maximum Offering Price Per Share --
Investor Shares ($10.60 / 96.25%) $ 11.01
=========
Net Asset Value, Offering and Redemption
Price Per Shares -- Flex Shares (1) $ 10.62
=========
(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 56.
27
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Georgia Tax-Exempt Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (94.3%)
Georgia (94.3%)
Albany-Dougherty County,
State Hospital Authority,
Ser B, Prerefunded 09/01/00 @
102 (AMBAC) (F)
7.500%, 09/01/20 $ 255 $ 273
Alpharetta, GO
5.000%, 05/01/07 1,650 1,718
Athens, Water & Sewer,
ETM, RB (F)
5.700%, 07/01/00 165 169
Atlanta, Airport Facility,
RB (AMBAC)
6.000%, 01/01/03 1,000 1,066
6.000%, 01/01/04 500 539
6.500%, 01/01/06 1,000 1,122
Augusta, Water & Sewer,
RB, Prerefunded 05/01/02 @ 102 (F)
6.200%, 05/01/03 130 140
Bibb County, GO
7.000%, 01/01/04 985 1,099
Carroll County, Water and Sewer, RB,
Callable 07/01/09 @ 102 (AMBAC)
5.000%, 07/01/10 720 739
5.000%, 07/01/11 805 819
Cartersville, Water & Sewer,
RB, Callable 07/01/08 @102 (FSA)
5.000%, 07/01/12 1,255 1,259
Cherokee County, School District, GO
5.000%, 02/01/12 1,690 1,717
5.000%, 02/01/13 1,370 1,389
Clarke County, Athens Regional
Medical Center Project, RB
5.375%, 01/01/07 1,425 1,508
Clayton County, GO
5.000%, 08/01/02 1,000 1,034
Clayton County, Water & Sewer
Authority, RB (MBIA)
5.000%, 05/01/11 600 611
Clayton County, Water Authority,
RB, Callable 05/01/06 @
102 (AMBAC)
5.350%, 05/01/09 1,500 1,586
Cobb County, GO
5.000%, 02/01/03 1,025 1,063
Cobb County & Marietta,
Coliseum & Exhibit Hall Authority,
RB (MBIA)
5.500%, 10/01/12 940 1,004
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Georgia--continued
Cobb County & Marietta,
Water Authority, RB
5.000%, 11/01/03 $ 1,255 $ 1,306
5.100%, 11/01/04 1,000 1,049
Columbia County, Courthouse/
Detention Center Projects, GO,
Callable 02/01/08 @ 102
5.000%, 02/01/10 920 931
Dalton, Utilities Revenue,
RB (MBIA)
6.000%, 01/01/08 3,240 3,581
Dalton-Whitfield County,
Hospital Authority, RB,
Prerefunded 07/01/00 @ 102 (F)
7.000%, 07/01/03 355 375
DeKalb County, Development
Authority, Emory University
Project, Ser A, RB
5.375%, 11/01/05 1,650 1,762
DeKalb County, Development
Authority, Emory University Project,
Ser A, RB, Callable 11/01/05 @ 101
5.200%, 11/01/08 500 524
DeKalb County, School District,
Ser A, GO
6.250%, 07/01/11 1,500 1,708
Douglasville - Douglas County,
Water & Sewer Authority,
RB (AMBAC)
5.625%, 06/01/15 1,370 1,467
East Point, Building Authority,
RB, Callable 02/01/06 @
102 (AMBAC)
4.800%, 02/01/07 535 548
Fayette County, School District, GO
6.250%, 03/01/07 450 498
Fayette County, School District, GO,
Callable 03/01/09 @ 102
4.625%, 03/01/12 1,000 977
4.625%, 03/01/13 1,000 969
Fayette County, Water Authority,
ETM, RB (MBIA) (F)
8.550%, 10/01/01 300 332
Forsyth County, School District, GO
6.400%, 07/01/05 750 835
6.500%, 07/01/06 1,000 1,128
Forsyth County, School District,
GO (MBIA)
5.350%, 07/01/10 780 839
Forsyth County, Water & Sewer
Authority, RB
5.000%, 04/01/04 1,000 1,040
28
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Georgia--continued
Forsyth County, Water & Sewer
Authority, RB,
Callable 04/01/08 @ 101
5.000%, 04/01/09 $ 1,120 $ 1,160
5.000%, 04/01/10 460 472
Fulco, Hospital Authority,
Catholic Health East, Ser A, RB,
Callable 11/15/08 @ 102 (MBIA)
5.250%, 11/15/12 1,000 1,022
Fulton County, Hospital Authority,
Northside Hospital Project,
Ser B, RB, Prerefunded 10/01/02
@ 102 (MBIA) (F)
6.600%, 10/01/11 2,000 2,203
Fulton County, School District, GO
5.250%, 01/01/12 1,000 1,044
Gwinnett County, Recreation
Authority, RB
5.800%, 02/01/06 785 851
5.875%, 02/01/07 1,390 1,520
Gwinnett County, School District, GO
6.400%, 02/01/06 500 560
Gwinnett County, School District,
Ser B, GO
6.400%, 02/01/07 1,500 1,691
Gwinnett County, Water & Sewer
Authority, RB, Callable
08/01/08 @ 102
5.000%, 08/01/13 800 810
Hall County, School District,
Ser B, GO
6.300%, 12/01/05 675 753
Henry County, GO
6.300%, 08/01/08 300 340
Henry County, Henry Medical
Center Project, RB,
Callable 07/01/07 @ 102 (AMBAC)
5.500%, 07/01/08 2,460 2,629
Henry County, School District,
Ser A, GO
6.150%, 08/01/06 150 166
6.450%, 08/01/11 500 575
Henry County, School District,
Ser B, GO (MBIA)
5.500%, 08/01/01 350 363
Henry County, Water & Sewer
Authority, RB (AMBAC)
6.150%, 02/01/20 1,750 1,983
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Georgia--continued
Houston County, School District,
Intergovernmental Contract,
COP, Prerefunded 03/01/04
@ 102 (MBIA)
6.000%, 03/01/14 $ 2,000 $ 2,197
Jackson County, School District,
GO, Callable 07/01/08 @ 101
5.000%, 07/01/10 1,020 1,046
Medical Center Hospital Authority,
Columbus Regional Healthcare
System, RB, Callable 08/01/05
@ 102, (MBIA)
6.000%, 08/01/06 1,340 1,471
Meriwether County, School District,
GO (FSA)
7.000%, 02/01/06 740 850
Metro Atlanta, Rapid Transportation
Authority, Ser N, RB
6.000%, 07/01/07 1,000 1,097
Metro Atlanta, Rapid Transportation
Authority, Ser P, RB (AMBAC)
6.250%, 07/01/08 1,000 1,131
Milledgeville, Water & Sewer,
RB (FSA)
6.000%, 12/01/16 1,000 1,117
6.000%, 12/01/21 1,000 1,118
Paulding County, School District,
GO (MBIA)
6.000%, 02/01/10 1,000 1,110
Paulding County, School District,
Ser A, GO
6.625%, 02/01/07 1,000 1,139
6.625%, 02/01/08 500 574
Private Colleges & Universities,
Agnes Scott College Project, RB,
Callable 06/01/09 @ 101 (MBIA)
5.250%, 06/01/10 1,360 1,423
Private Colleges & Universities,
Emory University Project, Ser A, RB
5.500%, 11/01/06 525 563
Private Colleges & Universities,
Emory University Project, Ser A,
RB, Callable 11/01/07 @ 100
5.000%, 11/01/10 1,000 1,021
Private Colleges & Universities,
Emory University Project, Ser C,
RB, Callable 10/01/02 @ 102
5.900%, 10/01/04 305 328
29
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Georgia Tax-Exempt Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Georgia--continued
Private Colleges & Universities,
Mercer University Project,
RB (MBIA)
6.400%, 10/01/11 $ 500 $ 580
Private Colleges & Universities,
Mercer University Project, Ser A,
RB, Callable 10/01/09 @ 101
5.250%, 10/01/13 1,000 1,016
Private Colleges & Universities,
Spelman College Project, RB (FGIC)
6.000%, 06/01/09 475 520
Putnam County, School District,
GO, Callable 2/01/08 @ 102
4.500%, 02/01/12 930 916
Savannah, Hospital Authority,
St. Josephs/Candler Health System,
Ser B, RB, Callable 01/01/09 @ 101
5.250%, 07/01/12 1,040 1,063
Savannah, Water & Sewer,
ETM, RB (F)
6.450%, 12/01/04 1,000 1,115
Smyrna, Development Authority, RB
5.600%, 02/01/20 735 774
State, Fulco Hospital, Health System,
Catholic Health East, Ser A, RB,
Callable 11/15/08 @ 102 (MBIA)
5.250%, 11/15/13 2,000 2,034
State, GO
6.250%, 08/01/13 650 748
State, Housing & Financial Authority,
Single Family Mortgage, Ser B,
RB, Callable 06/01/05 @ 102
5.550%, 12/01/07 550 579
State, Housing & Financial Authority,
Single Family Mortgage, Ser B,
RB, Callable 06/01/06
@ 102 (FHA)
5.550%, 12/01/10 325 339
5.600%, 12/01/11 450 469
State, Housing & Financial Authority,
Single Family Mortgage, Ser C,
RB, Callable 12/01/07 @ 101.50
5.550%, 12/01/16 500 518
State, Municipal Electric Authority,
ETM, RB, Callable 01/12/98 @
101 (F)
8.000%, 01/01/15 1,900 2,509
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Georgia--continued
State, Ser A, GO
6.250%, 04/01/11 $ 1,000 $ 1,141
State, Ser C, GO
6.500%, 04/01/08 1,000 1,148
6.250%, 08/01/08 1,360 1,544
State, Ser D, GO
6.700%, 08/01/10 2,250 2,661
5.250%, 10/01/14 780 816
State, Tollway Authority,
Georgia 400 Project, RB
5.000%, 07/01/09 1,280 1,334
Upper Oconee Basin, Water Authority,
RB, Callable 07/01/08 @ 102 (FGIC)
5.000%, 07/01/12 500 503
Vidalia, Water & Sewer, ETM, RB (F)
6.000%, 07/01/07 605 671
Walker County, School District, GO
5.000%, 02/01/03 1,000 1,035
Walker, Dade & Catoosa Counties,
Hutchinson Medical Center
Project, Ser A, RB,
Callable 10/01/07 @ 102 (FSA)
5.500%, 10/01/08 1,370 1,453
---------
Total Municipal Bonds
(Cost $97,514) 98,537
---------
Cash Equivalents (6.8%)
AIM Management Institutional
Tax-Free Portfolio 2,297 2,297
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio 4,812 4,812
---------
Total Cash Equivalents
(Cost $7,109) 7,109
---------
Total Investments (101.1%)
(Cost $104,623) 105,646
---------
Other Assets and Liabilities, Net (-1.1%) (1,160)
---------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 8,715,572 outstanding shares of
beneficial interest 86,243
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
365,831 outstanding shares of
beneficial interest 3,562
30
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
1,330,702 outstanding shares of
beneficial interest $ 13,302
Undistributed net investment income 2
Accumulated net realized gain on investments 354
Net unrealized appreciation on investments 1,023
--------
Total Net Assets (100.0%) $104,486
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.03
========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.05
========
Maximum Offering Price Per Share --
Investor Shares ($10.05 / 96.25%) $ 10.44
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 10.04
========
(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 56.
31
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Investment Grade Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations (40.4%)
U.S. Treasury Bonds
7.500%, 11/15/16 $ 80,000 $ 91,592
8.125%, 08/15/19 75,750 93,066
6.125%, 11/15/27 35,000 35,378
5.250%, 11/15/28 3,150 2,851
5.250%, 02/15/29 14,550 13,354
U.S. Treasury Notes
4.625%, 12/31/00 9,000 8,901
5.000%, 04/30/01 103,000 102,255
6.250%, 04/30/01 12,300 12,485
6.500%, 05/31/01 15,435 15,746
6.625%, 06/30/01 3,480 3,559
6.250%, 06/30/02 1,000 1,018
5.750%, 10/31/02 7,215 7,239
4.750%, 02/15/04 15,000 14,475
6.125%, 08/15/07 65,350 66,630
4.750%, 11/15/08 22,000 20,459
----------
Total U.S. Treasury Obligations
(Cost $484,065) 489,008
----------
Corporate Obligations (39.2%)
Finance (24.0%)
Americal Financial Group
7.125%, 12/15/07 7,000 6,956
Central Fidelity
8.150%, 11/15/02 3,000 3,180
Conseco
6.800%, 06/15/05 16,000 14,960
6.400%, 06/15/11 11,500 11,270
Countrywide Home Loan,
Ser F, MTN
6.510%, 02/11/05 23,300 22,572
Donaldson Lufkin Jenrette
5.875%, 04/01/02 16,500 16,232
Donaldson Lufkin Jenrette, MTN
6.150%, 05/04/04 8,400 8,148
Finova Capital
6.250%, 11/01/02 11,625 11,509
6.110%, 02/18/03 18,750 18,445
6.750%, 03/09/09 6,100 5,963
Ford Motor Credit
6.500%, 02/28/02 14,600 14,691
Goldman Sachs
6.650%, 05/15/09 9,400 9,259
Great Western Financial
8.600%, 02/01/02 9,800 10,167
Household Finance
6.250%, 08/15/03 5,825 5,738
5.875%, 02/01/09 18,750 17,414
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Finance--continued
Merrill Lynch, Ser B, MTN
5.710%, 01/15/02 $ 12,750 $ 12,591
Paine Webber Group, Ser C, MTN
6.020%, 04/22/02 20,250 19,794
Provident
7.000%, 07/15/18 30,600 29,797
Reliastar Financial
6.500%, 11/15/08 16,750 15,996
Salomon
7.300%, 05/15/02 16,000 16,400
6.250%, 01/15/05 20,000 19,100
----------
290,182
----------
Industrial (15.2%)
AT&T
6.000%, 03/15/09 17,275 16,476
6.500%, 03/15/29 10,200 9,473
AT&T Capital, MTN
6.890%, 01/25/02 23,325 23,354
Bausch & Lomb
6.750%, 12/15/04 11,800 11,549
Bausch & Lomb (C)
6.150%, 08/01/99 12,000 11,940
Corning
6.300%, 03/01/09 4,000 3,874
Dillards
6.430%, 08/01/04 27,000 26,123
Ford Motor
6.625%, 10/01/28 2,085 1,931
Ikon Capital, MTN
6.730%, 06/15/01 13,000 12,838
Philip Morris
7.250%, 09/15/01 13,500 13,770
7.500%, 04/01/04 14,500 14,953
Sprint Capital
5.875%, 05/01/04 11,500 11,141
6.125%, 11/15/08 2,705 2,543
6.375%, 05/01/09 10,270 9,808
6.900%, 05/01/19 14,850 14,200
----------
183,973
----------
Total Corporate Obligations
(Cost $484,858) 474,155
----------
32
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed Obligations (15.3%)
FHLMC
7.000%, 01/01/11 $ 1,430 $ 1,452
7.000%, 02/01/12 8,192 8,318
FNMA
4.750%, 11/14/03 3,500 3,330
6.500%, 01/01/13 1,702 1,695
6.500%, 02/01/13 6,262 6,236
6.500%, 03/01/13 4,304 4,285
7.500%, 12/01/26 139 143
7.000%, 01/01/27 6,902 6,906
7.500%, 03/01/27 48 50
7.500%, 05/01/27 386 395
7.500%, 06/01/27 65 67
7.500%, 07/01/27 451 461
7.500%, 08/01/27 138 142
7.500%, 09/01/27 366 375
7.500%, 10/01/27 1,099 1,124
7.500%, 11/01/27 121 124
7.500%, 12/01/27 623 637
7.500%, 01/01/28 1,152 1,179
7.500%, 02/01/28 236 242
7.500%, 04/01/28 1,466 1,500
7.500%, 05/01/28 693 710
7.500%, 06/01/28 103 106
FNMA REMIC, Ser 1997-63, Cl PC
6.500%, 03/18/26 9,160 9,024
GNMA
8.000%, 11/15/09 5,825 6,064
7.000%, 12/15/22 208 209
8.000%, 12/15/22 83,154 86,453
7.000%, 09/15/23 215 216
6.500%, 12/15/23 6,166 6,018
7.000%, 09/15/25 472 474
7.000%, 03/15/26 282 283
7.000%, 04/15/26 1,047 1,049
7.000%, 11/15/26 485 486
7.000%, 01/15/27 744 746
7.000%, 02/15/27 970 972
7.000%, 03/15/27 1,872 1,878
7.000%, 04/15/27 409 411
7.000%, 08/15/27 548 549
7.000%, 10/15/27 1,134 1,138
7.000%, 11/15/27 2,107 2,111
7.000%, 12/15/27 6,084 6,095
7.000%, 01/15/28 170 170
6.500%, 02/15/28 1,477 1,442
6.500%, 03/15/28 8,061 7,870
7.000%, 03/15/28 511 513
6.500%, 04/15/28 395 386
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed Obligations--continued
7.000%, 04/15/28 $ 626 $ 627
6.500%, 05/15/28 451 441
7.000%, 06/15/28 37 37
6.500%, 08/15/28 193 189
7.000%, 08/15/28 46 47
6.500%, 09/15/28 1,502 1,468
6.500%, 10/15/28 249 243
6.500%, 11/15/28 1,041 1,017
6.500%, 12/15/28 5,823 5,685
6.500%, 02/15/29 984 961
----------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $185,683) 184,749
----------
Asset-Backed Securities (1.5%)
American Express Master Trust,
Ser 1992-2, Cl A
6.600%, 05/15/00 6,350 6,361
Chase Commercial Mortgage
Securities, Ser 1998-1,
Cl A2, CMO
6.560%, 05/18/08 3,495 3,460
Discover Card Master Trust I,
Ser 1998-4, Cl A
5.750%, 10/16/03 8,190 8,077
EQCC Home Equity Loan Trust,
Ser 1994-1, Cl A
5.800%, 03/15/09 457 449
Merrill Lynch Mortgage Investors,
Ser 1998-C1 A1, CMO
6.310%, 11/15/26 394 392
Olympic Automobile Receivables Trust,
Ser 1995-D, Cl A4
6.050%, 11/15/00 62 62
----------
Total Asset-Backed Securities
(Cost $18,986) 18,801
----------
Cash Equivalent (1.0%)
AIM Liquid Assets Portfolio 12,160 12,160
----------
Total Cash Equivalent
(Cost $12,160) 12,160
----------
Repurchase Agreements (3.0%)
Deutsche Bank
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$19,945,118 (collateralized
by various U.S. Treasury
obligations: total market
value $20,333,418) (H) 19,935 19,935
33
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Investment Grade Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreements--continued
SBC Warburg
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$15,991,506 (collateralized by
U.S. Treasury Bond: total market
value $16,307,771) (H) $ 15,983 $ 15,983
----------
Total Repurchase Agreements
(Cost $35,918) 35,918
----------
Total Investments (100.4%)
(Cost $1,221,671) 1,214,791
----------
Other Assets and Liabilities, Net (-0.4%) (4,790)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 110,931,510 outstanding shares of
beneficial interest 1,160,025
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
3,371,284 outstanding shares of
beneficial interest 35,499
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
2,510,327 outstanding shares of
beneficial interest 26,536
Overdistributed net investment income (145)
Accumulated net realized loss
on investments (5,034)
Net unrealized depreciation on investments (6,880)
----------
Total Net Assets (100.0%) $1,210,001
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.36
==========
Net Asset Value and Redemption
Price Per Share -- Investor Shares $ 10.36
==========
Maximum Offering Price Per Share --
Investor Shares ($10.36 / 96.25%) $ 10.76
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 10.37
==========
(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 56.
34
<PAGE>
- --------------------------------------------------------------------------------
Investment Grade Tax-Exempt Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (88.5%)
Alabama (2.1%)
Huntsville, Ser B, GO
4.000%, 11/01/01 $ 1,660 $ 1,671
Montgomery,
Baptist Methodist Church,
Special Care Facilities Financing
Authority, Baptist Health, Ser B, RB,
Callable 11/15/08 @ 101 (MBIA)
5.250%, 11/15/12 1,450 1,470
State Docks Authority, Docks
Facility, RB (MBIA)
5.250%, 10/01/00 1,000 1,024
----------
4,165
----------
Arizona (4.3%)
Maricopa County,
Community College Project,
Ser C, GO,
5.250%, 07/01/01 5,000 5,158
Maricopa County, School District
No. 80, Chandler, GO, Partially
Prerefunded 07/01/01 @
101 (FGIC) (F)
6.400%, 07/01/10 3,050 3,224
----------
8,382
----------
California (1.8%)
Orange County, Loma Ridge
Data Center Project, COP,
Prerefunded 06/01/19
@ 100 (AMBAC) (F)
6.000%, 06/01/21 2,075 2,299
State, GO (FGIC)
5.750%, 02/01/11 1,000 1,098
----------
3,397
----------
Connecticut (0.4%)
State, Special Tax Obligation,
Transportation Infrastructure,
Ser A, RB (FGIC)
5.500%, 10/01/12 800 854
----------
District of Columbia (1.1%)
District of Columbia, American
College Obstetricians, RB,
Prerefunded 8/15/01 @ 102
(AMBAC) (F)
6.500%, 08/15/18 1,930 2,078
----------
Florida (7.3%)
Miami-Dade County, School District,
GO (FSA)
5.375%, 08/01/12 5,000 5,283
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Palm Beach County, Criminal Justice
Facilities, RB (FGIC)
5.750%, 06/01/12 $ 5,000 $ 5,461
State, Finance Department,
General Services, Environmental
Protection, Preservation 2000, Ser B,
RB, Callable 07/01/08 @ 101 (FSA)
5.250%, 07/01/12 3,500 3,608
----------
14,352
----------
Georgia (4.1%)
Atlanta, Water & Sewer, RB,
Prerefunded 01/01/04
@ 100 (FGIC-TCRS) (F)
4.500%, 01/01/18 2,500 2,543
State, Electric Authority, Ser X,
RB (MBIA)
6.500%, 01/01/12 4,700 5,419
----------
7,962
----------
Hawaii (0.5%)
State, Ser CR, GO,
Callable 04/01/08 @ 101 (MBIA)
5.250%, 04/01/13 1,000 1,020
----------
Illinois (13.3%)
Chicago, School Finance Authority, GO,
Callable 6/01/02 @ 102 (FGIC)
6.250%, 06/01/09 6,000 6,454
Chicago, Midway Airport,
Ser C, RB (MBIA)
5.500%, 01/01/13 2,380 2,515
5.500%, 01/01/14 2,520 2,660
State, Financial Authority,
Provena Health, Ser A, RB,
Callable 05/15/08 @ 101 (MBIA)
5.500%, 05/15/11 2,500 2,607
State, Health Facilities Authority,
Trinity Medical Center Project,
RB, Callable 07/01/02 @
102 (FSA)
7.000%, 07/01/12 5,000 5,506
State, Regional Transportation
Authority, RB (FGIC)
6.000%, 06/01/15 2,000 2,216
State, Regional Transportation
Authority, Ser A, RB,
Callable 06/01/02 @
102 (AMBAC)
6.500%, 06/01/15 3,830 4,151
----------
26,109
----------
35
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Investment Grade Tax-Exempt Bond Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Indiana (1.1%)
State, Transportation Finance
Authority, Ser A, RB,
Callable 12/01/08 @ 101
(MBIA)
5.250%, 12/01/12 $2,000 $ 2,050
-------
Maryland (1.5%)
Baltimore, Water Project, Ser A, RB,
Callable 07/01/06 @ 101 (FGIC)
5.800%, 07/01/15 2,800 2,985
-------
Massachusetts (0.7%)
Boston, City Hospital Project, RB,
Partially Prerefunded 08/15/99
@ 100 (FHA) (F)
7.650%, 02/15/10 1,260 1,347
-------
Michigan (1.6%)
State, Building Authority, Ser II, RB,
Callable 10/01/01 @ 102
6.750%, 10/01/11 2,950 3,182
-------
Missouri (1.5%)
St. Louis, Water Utility Improvements,
RB, Callable 07/01/04 @ 102 (FGIC)
5.950%, 07/01/06 1,170 1,287
State, Health & Educational Facilities
Authority, Healthcare Project,
Ser B, ETM, RB,
Callable 06/01/00
@ 102 (MBIA) (F)
7.000%, 06/01/05 1,500 1,581
-------
2,868
-------
Nebraska (4.3%)
American Public Energy Agency,
Public Gas Agency Project, Ser A,
RB (AMBAC)
5.000%, 06/01/05 1,000 1,034
5.250%, 06/01/09 2,250 2,339
5.250%, 06/01/11 2,800 2,898
State, Public Power District, Power
Supply System, Ser C, RB,
Prerefunded 07/01/04 @ 101 (F)
4.750%, 01/01/07 2,000 2,078
-------
8,349
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Nevada (3.7%)
Clark County, School District, GO,
Callable 06/01/03 @ 101 (FGIC)
5.250%, 06/01/07 $7,000 $ 7,260
-------
New Jersey (1.5%)
State, Transportation System, Ser A,
RB, Callable 6/15/08 @ 100
5.000%, 06/15/12 3,000 3,024
-------
New York (6.2%)
Oneida-Herkimer, Solid Waste
Management Authority, RB (FSA)
5.500%, 04/01/14 1,285 1,356
State, Dormitory Authority, RB,
Callable 07/01/14 @ 100 (FSA)
5.750%, 07/01/18 1,800 1,951
State, Dormitory Authority, Ser A,
RB (AMBAC)
6.000%, 07/01/10 1,550 1,724
State, Environmental Facilities,
Corporate Pollution Control,
Ser E, RB (MBIA)
6.000%, 06/15/12 3,050 3,408
Triborough Bridge & Tunnel
Authority, Ser V, RB,
Callable 01/01/01
@ 102 (FGIC-TCRS)
6.875%, 01/01/05 3,500 3,728
-------
12,167
-------
North Carolina (2.2%)
State, Eastern Municipal Power
Agency, Ser A, RB, Prerefunded
01/01/22 @ 100 (F)
6.000%, 01/01/26 1,550 1,735
State, Medical Care Community
Hospital, Mercy Hospital Project,
RB, ETM, Callable 08/01/02
@ 102 (F)
6.500%, 08/01/15 1,000 1,096
State, Medical Care Community
Hospital, Rex Hospital Project, RB
5.100%, 06/01/00 1,500 1,525
-------
4,356
-------
36
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Ohio (0.9%)
Cleveland, City School District,
Ser A, GO, Callable 12/01/02
@ 102 (FGIC)
5.875%, 12/01/11 $1,650 $ 1,769
-------
Oregon (1.1%)
Clackamas County,
School District No. 12, RB,
Callable 06/01/09 @ 100 (FGIC)
5.250%, 06/01/13 2,000 2,052
-------
Pennsylvania (2.1%)
Allegheny County, Hospital
Development Authority,
Ohio Valley General, RB,
Callable 04/01/03 @ 100 (MBIA)
5.875%, 04/01/11 1,500 1,577
State, University of Pennsylvania,
Health Services, Ser A, RB,
Callable 07/01/08 @ 100 (MBIA)
5.250%, 01/01/12 2,450 2,503
-------
4,080
-------
Puerto Rico (0.2%)
Commonwealth, Telecom Authority,
RB, Prerefunded 01/01/03
@ 101.5 (MBIA) (F)
5.250%, 01/01/05 300 317
-------
South Dakota (3.6%)
State, Health & Educational Facility
Authority, St. Lukes Midland
Regional Medical Center, RB,
Callable 07/01/01 @ 102 (MBIA)
6.625%, 07/01/11 6,675 7,132
-------
Tennessee (3.2%)
Metropolitan Nashville Airport,
Ser C, RB, Callable 07/01/01
@ 102 (FGIC)
6.600%, 07/01/15 3,900 4,176
Shelby County, GO, Prerefunded
12/01/00 @ 102 (G)
6.250%, 12/01/09 2,000 2,121
-------
6,297
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Texas (8.5%)
Amarillo, Health Facilities
Corporation, Baptist Saint Anthonys
Hospital, RB (FSA)
5.500%, 01/01/13 $1,000 $ 1,049
Austin, Independent School District,
GO, Prerefunded 08/01/06
@ 100 (F)
5.750%, 08/01/14 2,100 2,287
Corpus Christi, Utility Systems, RB,
Callable 7/15/09 @ 100 (FSA)
5.250%, 07/15/12 2,780 2,852
5.250%, 07/15/13 2,200 2,247
Harris County, Memorial Hermann
Hospital System Project, RB (FSA)
5.500%, 06/01/13 6,280 6,594
University, Ser B, RB,
Callable 08/15/01 @ 102
6.750%, 08/15/13 1,475 1,589
-------
16,618
-------
Vermont (1.1%)
Burlington, Ser A,
Callable 07/01/02 @102 (MBIA)
6.250%, 07/01/14 2,000 2,156
-------
Washington (8.1%)
Snohomish County,
School District No. 015 Edmonds,
GO, Callable 6/01/09 @100 (FGIC)
5.250%, 12/01/15 2,000 2,017
Spokane County,
School District No. 356, Ser A, GO,
Callable 06/01/08 @ 100 (FGIC)
5.250%, 12/01/12 1,740 1,781
State, Ser B, GO,
Callable 05/01/04 @ 100
5.750%, 05/01/14 5,600 5,921
Whatcom County,
School District No. 501,
Bellingham, GO (FSA)
5.250%, 12/01/13 3,110 3,229
Yakima & Benton Countys,
School District, GO,
Callable 06/01/09 @ 100 (AMBAC)
5.250%, 12/01/13 1,315 1,339
5.250%, 12/01/15 1,530 1,543
-------
15,830
-------
37
<PAGE>
SCHEDULE OF INVESTMENTS/STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Investment Grade Tax-Exempt Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
West Virginia (0.5%)
West Virginia University, University
Projects, Ser A, RB (MBIA)
5.500%, 04/01/14 $ 1,000 $ 1,059
--------
Total Municipal Bonds
(Cost $173,797) 173,217
--------
Repurchase Agreement (0.6%)
Deutsche Bank
4.78%, dated 05/28/99, matures
06/01/99, repurchase price
$1,209,350 (collateralized by
U.S. Treasury Bond: total market
value $1,233,463) (H) 1,209 1,209
-------
Total Repurchase Agreement
(Cost $1,209) 1,209
-------
Cash Equivalents (9.8%)
AIM Management Institutional
Tax-Free Portfolio 9,630 9,630
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio 9,643 9,643
-------
Total Cash Equivalents
(Cost $19,273) 19,273
-------
Total Investments (98.9%)
(Cost $194,279) 193,699
-------
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 56.
38
<PAGE>
- --------------------------------------------------------------------------------
Limited-Term Federal Mortgage Securities Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations (27.7%)
U.S. Treasury Notes
5.750%, 11/30/02 $26,000 $ 26,065
5.250%, 05/15/04 12,800 12,611
-------
Total U.S. Treasury Obligations
(Cost $38,963) 38,676
-------
U.S. Agency Mortgage-Backed Obligations (69.5%)
FHLMC
8.000%, 12/01/02 1,198 1,228
7.000%, 03/01/04 6,383 6,471
6.500%, 06/01/13 9,325 9,282
FHLMC REMIC, Ser 1614-H
6.000%, 06/15/20 4,550 4,537
FHLMC REMIC, Ser 1624-KC
6.000%, 06/15/08 11,084 10,949
FHLMC REMIC, Ser 1666-E
6.000%, 12/15/19 5,000 4,973
FHLMC REMIC, Ser 29-Q
7.500%, 06/25/20 15,000 15,345
FNMA
7.000%, 03/01/04 7,313 7,411
8.500%, 04/01/17 543 570
7.000%, 03/01/29 2,977 2,978
FNMA REMIC, Ser 1993-206G
6.000%, 04/25/19 11,000 10,962
FNMA REMIC, Ser 1993-223PH
6.050%, 10/25/22 5,375 5,270
GNMA
9.000%, 11/15/17 741 800
8.000%, 12/15/22 15,542 16,160
-------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $96,801) 96,936
-------
Repurchase Agreement (2.1%)
Morgan Stanley
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$2,967,059 (collateralized by
FNMA obligation: total market
value $3,058,818) (H) 2,965 2,965
-------
Total Repurchase Agreement
(Cost $2,965) 2,965
-------
Total Investments (99.3%)
(Cost $138,729) 138,577
-------
Other Assets and Liabilities, Net (0.7%) 1,012
-------
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 13,606,488 outstanding shares of
beneficial interest $136,690
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
223,041 outstanding shares of
beneficial interest 2,240
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
213,079 outstanding shares of
beneficial interest 2,155
Overdistributed net investment income (40)
Accumulated net realized loss
on investments (1,304)
Net unrealized depreciation on investments (152)
--------
Total Net Assets (100.0%) $139,589
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 9.94
========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 9.93
========
Maximum Offering Price Per Share --
Investor Shares ($9.93 / 97.50%) $ 10.18
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 9.94
========
(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 56.
39
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (95.3%)
Maryland (72.5%)
Anne Arundel County, Water Utility
Improvements, GO,
Callable 02/01/08 @ 101
5.125%, 02/01/24 $ 750 $ 743
Baltimore County, Construction &
Public Improvements, GO,
Callable 06/01/06 @ 101
5.500%, 06/01/16 250 260
Baltimore County, Oak Crest
Village Project, Retirement
Facilities, RB (C) (E)
3.250%, 06/02/99 1,000 1,000
Baltimore County, Pension Funding,
GO, Callable 08/01/08 @ 101
5.125%, 08/01/15 500 507
Baltimore County, Public
Improvements, GO,
Callable 07/01/08 @ 101
4.750%, 07/01/09 500 510
Baltimore County, Revenue
Authority, RB,
Prerefunded 07/01/99 @ 102 (F)
7.200%, 07/01/19 200 205
Baltimore, Emergency
Telecommunication Facilities, Ser A,
COP, Callable 10/01/07 @ 102
(AMBAC)
5.000%, 10/01/17 400 399
Baltimore, Parking Authority, City
Parking System Facilities,
RB (FGIC)
4.350%, 07/01/02 200 203
Baltimore, Pollution Control, General
Motors Corporate Project, RB
5.350%, 04/01/08 250 265
Calvert County, Economic
Development Authority, Asbury-
Solomons Project, RB,
Callable 01/01/08 @ 102 (MBIA)
5.000%, 01/01/17 250 246
5.000%, 01/01/27 250 243
Calvert County, Pollution Control,
Baltimore Gas & Electric Company
Project, RB, Callable 07/15/04 @ 102
5.550%, 07/15/14 250 257
Carroll County, Public Improvements,
GO, Callable 12/01/06 @ 101
5.125%, 12/01/14 500 507
Elkton, Highway Service Ventures,
RB (C) (E)
3.300%, 06/02/99 705 705
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Howard County, Metropolitan District,
Public Improvements, Ser A, GO,
Prerefunded 02/15/05 @ 101 (G)
5.650%, 02/15/16 $ 100 $ 108
Montgomery County, Economic
Development, Genomic Research
Facility, RB (C) (E)
3.250%, 06/03/99 700 700
Montgomery County, Housing
Authority, Kensington Park,
RB (MBIA) (C)
3.400%, 06/02/99 1,600 1,600
Montgomery County, Human
Services Headquarters Project, RB
5.400%, 08/01/06 200 214
Montgomery County, Pollution
Control, Potomac Electric Power
Company Project, RB,
Callable 02/15/04 @ 102
5.375%, 02/15/24 100 101
Montgomery County, Ser A, GO
5.800%, 07/01/07 500 549
Northeast Maryland, Waste Disposal
Authority, Montgomery County
Resource Recovery Project, RB,
Callable 07/01/03 @ 102
6.200%, 07/01/10 275 294
Prince Georges County, Public
Improvements, Ser A, GO,
Callable 03/01/02 @ 102 (MBIA)
5.625%, 09/01/04 250 265
Queen Annes County,
Public Facilities, GO (FGIC)
5.125%, 11/15/06 350 369
Saint Mary's County, Public Facilities,
GO, Callable 11/01/03 @ 102 (AMBAC)
5.500%, 11/01/07 150 160
Saint Mary's County, Public
Improvements, GO (MBIA)
4.500%, 09/01/00 500 507
State, Aviation Administration
Facilities, COP, AMT,
Callable 05/01/09 @ 101
4.750%, 05/01/13 1,500 1,469
State, Community Development,
RB, AMT, Callable 03/01/09 @ 101
5.250%, 09/01/19 1,000 1,000
State, Economic Development,
Chesapeake Bay Foundation,
RB (C) (E)
3.250%, 06/03/99 1,000 1,000
State, Economic Development,
Dietz & Watson Project, RB (C) (E)
3.400%, 06/02/99 1,000 1,000
40
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, GO (C)
3.320%, 06/03/99 $ 700 $ 700
State, Health & Higher Educational
Facilities Authority, Anne Arundel
Medical Center Project, RB,
Callable 7/01/08 @ 101 (FSA)
5.125%, 07/01/28 1,500 1,472
State, Health & Higher Educational
Facilities Authority, Broadmead
Project, RB, Callable 07/01/07 @ 102
5.500%, 07/01/17 300 300
State, Health & Higher Educational
Facilities Authority, Calvert
Memorial Hospital Project, RB,
Callable 07/01/08 @ 102
5.000%, 07/01/13 400 396
State, Health & Higher Educational
Facilities Authority, Johns Hopkins
Health System Project, RB,
Callable 07/01/07 @ 102 (AMBAC)
5.250%, 07/01/17 350 351
State, Health & Higher Educational
Facilities Authority, Loyola College
Project, Ser A, RB,
Callable 10/01/06 @ 102 (MBIA)
5.500%, 10/01/16 250 259
State, Health & Higher Educational
Facilities Authority, Pickersgill
Project, Ser A, RB,
Callable 01/01/07 @ 102
6.000%, 01/01/15 350 365
State, Health & Higher Educational
Facilities Authority, Pooled Loan
Project, Ser D, RB (C) (E)
3.200%, 06/03/99 500 500
State, Health & Higher Educational
Facilities Authority, University
of Maryland Medical
Systems Project, Ser A, RB,
Prerefunded 07/01/01 @ 100 (FGIC) (F)
6.500%, 07/01/21 200 211
State, Health & Higher Educational
Facilities Authority, Upper
Chesapeake Hospital Project,
RB, Callable 01/01/08 @ 101 (FSA)
5.125%, 01/01/33 1,500 1,461
State, Housing & Community
Development, RB (C)
3.320%, 06/03/99 675 675
State, Housing & Community Development,
Ser B, RB, AMT, Callable 03/01/07 @
101.50 (E)
5.875%, 09/01/25 500 518
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Housing & Community
Development, Single Family
Housing, First Ser, RB,
Callable 04/01/07 @ 101.50 (E)
5.600%, 04/01/18 $ 430 $ 441
State, Housing & Community
Development, Single Family
Program, Second Series, RB,
Callable 04/01/09 @ 101
5.000%, 04/01/17 1,000 990
State, Industrial Development
Authority, Holy Cross Health
System, RB, Callable 12/01/03 @ 102
5.500%, 12/01/15 100 101
State, Public Improvements,
First Ser, GO,
Callable 02/15/06 @ 101.50
4.700%, 02/15/10 300 302
State, Public Improvements,
Third Ser, GO
5.500%, 10/15/04 500 536
State, Stadium Authority, Sports
Facility Project, RB,
Callable 03/01/06 @ 101 (AMBAC)
5.800%, 03/01/26 250 265
State, Transportation Authority,
Transportation Facilities
Project, ETM, RB
6.800%, 07/01/16 120 141
University of Maryland, System
Auxiliary Facility & Tuition
Revenue, Ser A, RB,
Callable 04/01/08 @ 100
5.000%, 04/01/19 500 491
University of Maryland, University &
College Improvements, Ser A, RB
5.000%, 04/01/05 400 417
University of Maryland, University &
College Improvements, Ser A, RB,
Callable 04/01/05 @ 102
5.400%, 04/01/09 100 106
University of Maryland, University &
College Improvements, Ser A, RB,
Callable 04/01/06 @ 101
5.500%, 04/01/08 100 107
University of Maryland, University &
College Improvements, Ser C, RB
4.350%, 10/01/03 250 254
Washington County, Public
Improvements, GO,
Callable 01/01/03 @ 102 (FGIC)
5.250%, 01/01/07 100 104
41
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Maryland Municipal Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Washington County, Suburban
Sanitation District, GO,
Callable 06/01/06 @ 100
5.600%, 06/01/19 $ 250 $ 260
--------
27,109
--------
Puerto Rico (22.2%)
Commonwealth, Electric Power
Authority, RB (C)
3.390%, 06/03/99 1,600 1,600
Commonwealth, Government
Development, RB (MBIA) (C)
3.000%, 06/02/99 1,600 1,600
Commonwealth, Highway &
Transportation Authority, RB (C)
3.120%, 06/03/99 1,600 1,600
Commonwealth, Highway &
Transportation Authority, Ser Y, RB,
Callable 07/01/06 @ 101.50
5.500%, 07/01/26 300 306
Commonwealth, Public Finance, RB (C)
3.120%, 06/03/99 1,600 1,600
Commonwealth, RB (C)
3.120%, 06/03/99 1,600 1,600
--------
8,306
--------
Texas (0.6%)
Grapevine, Industrial Development
Authority, American Airlines
Project, Ser A2, RB (C) (D) (E)
3.250%, 06/01/99 200 200
--------
Total Municipal Bonds
(Cost $35,360) 35,615
--------
Cash Equivalents (4.0%)
AIM Tax Free Institutional
Cash Reserve 763 763
Federated Maryland Municipal
Cash Trust 731 731
--------
Total Cash Equivalents
(Cost $1,494) 1,494
--------
Total Investments (99.3%)
(Cost $36,854) 37,109
--------
Other Assets and Liabilities, Net (0.7%) 272
--------
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization -- no
par value) based on 2,948,238
outstanding shares $29,388
Fund Shares of Flex Class
(unlimited authorization -- no
par value) based on 766,159
outstanding shares 7,759
Overdistributed net investment income (2)
Accumulated net realized loss
on investments (19)
Net unrealized appreciation on investments 255
-------
Total Net Assets (100.0%) $37,381
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.06
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 10.08
=======
(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 56.
42
<PAGE>
- --------------------------------------------------------------------------------
Short-Term Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations (34.1%)
U.S. Treasury Notes
5.625%, 10/31/99 $ 3,000 $ 3,009
5.000%, 04/30/01 15,000 14,892
6.500%, 08/31/01 7,000 7,150
6.375%, 09/30/01 8,000 8,152
6.250%, 10/31/01 4,750 4,830
7.500%, 11/15/01 9,000 9,405
6.250%, 02/28/02 3,250 3,304
6.250%, 06/30/02 2,000 2,036
6.000%, 07/31/02 8,000 8,089
6.250%, 08/31/02 6,000 6,107
5.750%, 10/31/02 1,280 1,284
5.250%, 08/15/03 1,000 984
4.750%, 02/15/04 2,850 2,750
U.S. Treasury STRIPS
0.000%, 08/15/03 1,250 988
--------
Total U.S. Treasury Obligations
(Cost $73,499) 72,980
--------
Corporate Obligations (40.8%)
Finance (15.4%)
American Express
6.750%, 06/23/04 3,000 3,019
American General
5.900%, 01/15/03 2,000 1,962
6.250%, 03/15/03 1,100 1,089
Associates Corporation
5.750%, 11/01/03 2,000 1,942
Associates Corporation, MTN
7.080%, 04/15/03 1,500 1,532
Bank One Arizona
6.000%, 09/15/05 2,270 2,185
Chrysler Financial
9.500%, 12/15/99 1,000 1,023
CIT Group Holdings
6.375%, 08/01/02 1,345 1,345
Commercial Credit
6.375%, 09/15/02 2,500 2,503
Conoco
5.900%, 04/15/04 1,150 1,121
Ford Motor Credit
6.500%, 02/28/02 725 730
General Motors Acceptance
5.950%, 03/14/03 1,000 984
Household Finance, MTN
7.080%, 06/03/02 2,500 2,547
International Lease, MTN
5.500%, 09/29/03 2,000 1,925
Merrill Lynch, Ser B, MTN
5.640%, 01/27/03 3,750 3,656
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Finance--continued
Morgan Stanley Dean Witter, Ser C
5.625%, 04/12/02 $1,750 $ 1,719
Salomon Brothers
7.125%, 08/01/99 1,300 1,304
Sears Roebuck Acceptance, MTN
6.920%, 06/17/04 2,250 2,267
--------
32,853
--------
Industrial (15.7%)
American Home Products
7.900%, 02/15/05 2,000 2,132
Clark Equipment
9.750%, 03/01/01 1,750 1,844
Computer Associates
6.375%, 04/15/05 2,300 2,194
Dayton Hudson
6.800%, 10/01/01 1,500 1,524
5.950%, 06/15/10 500 501
General Foods
6.000%, 06/15/01 500 494
IBM, MTN
5.800%, 05/15/01 1,250 1,247
Norfolk Southern
7.875%, 02/15/04 1,500 1,577
Philip Morris
7.250%, 09/15/01 1,000 1,020
7.500%, 01/15/02 500 512
Raytheon
6.450%, 08/15/02 2,900 2,904
RJR Nabisco
6.800%, 09/01/01 1,500 1,509
Tenneco
10.075%, 02/01/01 3,000 3,180
TRW (B)
6.500%, 06/01/02 3,000 2,996
TRW, MTN
9.000%, 02/09/01 1,000 1,041
Union Pacific
7.060%, 05/15/03 1,500 1,519
USAA, Cl B, MTN (B)
8.880%, 09/21/99 2,000 2,019
Walt Disney, MTN
5.600%, 01/13/00 2,500 2,497
Waste Management
6.500%, 12/15/02 3,000 2,992
--------
33,702
--------
Utilities (9.7%)
Baltimore Gas and Electric
6.125%, 07/01/03 1,750 1,730
43
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Short-Term Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Utilities--continued
Bellsouth Savings
9.125%, 07/01/03 $1,506 $ 1,582
Indiana & Michigan Power, MTN
6.400%, 03/01/00 2,250 2,258
Northern States Power
6.125%, 12/01/05 5,000 4,875
NYNEX Credit, MTN
6.900%, 06/15/99 2,000 2,001
Pacific Gas and Electric
5.875%, 10/01/05 3,500 3,373
Philadelphia Electric
7.125%, 09/01/02 2,000 2,040
Southern New England Telephone,
Ser C, MTN
6.125%, 12/15/03 3,000 2,974
-------
20,833
-------
Total Corporate Obligations
(Cost $88,238) 87,388
-------
U.S. Agency Mortgage-Backed Obligations (12.2%)
FHLB
5.510%, 02/06/01 2,750 2,745
FHLMC
8.000%, 01/01/00 241 243
6.500%, 12/01/00 1,271 1,277
FNMA
8.500%, 11/01/01 8 9
6.500%, 06/01/13 4,534 4,517
6.500%, 09/01/13 2,902 2,893
7.500%, 09/01/26 657 672
7.000%, 01/01/27 1,733 1,735
7.500%, 09/01/27 709 725
7.500%, 10/01/27 673 687
7.500%, 11/01/27 604 617
7.500%, 12/01/27 1,862 1,903
7.500%, 01/01/28 765 782
7.500%, 03/01/28 780 796
7.500%, 06/01/28 304 311
FNMA REMIC, Ser 1996-30, Cl PC
7.000%, 11/25/20 2,600 2,641
GNMA
8.000%, 11/15/09 1,358 1,414
7.500%, 01/15/24 49 51
7.500%, 04/15/24 53 55
7.500%, 10/15/25 273 280
7.500%, 11/15/25 335 343
7.500%, 07/15/26 247 253
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed Obligations--continued
7.500%, 10/15/26 $ 385 $ 395
7.500%, 02/15/27 453 464
7.500%, 07/15/27 297 304
-------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $26,173) 26,112
-------
U.S. Government Agency Obligation (0.5%)
FFCB
7.125%, 06/01/01 1,000 1,028
-------
Total U.S. Government Agency Obligation
(Cost $1,002) 1,028
-------
Asset-Backed Securities (7.4%)
American Express Master Trust,
Ser 1992-2, Cl A
6.600%, 05/15/00 2,000 2,003
Arcadia Automobile Receivables
Trust, Ser 1998-E, Cl A1
5.429%, 07/15/02 2,526 2,527
Chase Manhattan Grantor Trust,
Ser 1995-B, Cl A
5.900%, 11/15/01 138 139
CoreStates Home Equity Trust,
Ser 1994-1, Cl A
6.650%, 05/15/09 629 636
Discover Card Master Trust I,
Ser 1998-4, Cl A
5.750%, 10/16/03 1,990 1,962
Discover Card Master Trust I,
Ser 1999-2, Cl A
5.900%, 10/15/04 3,000 2,961
EQCC Home Equity Loan Trust,
Ser 1994-1, Cl A
5.800%, 03/15/09 553 545
Equivantage Home Equity Loan
Trust, Ser 1996-1, Cl A
6.550%, 10/25/25 667 666
Fleet Credit Card Master Trust
Ser 1995-F, Cl A1
6.050%, 08/01/03 1,000 994
Metris Master Trust,
Ser 1997-1, Cl A
6.870%, 10/20/05 2,000 2,026
Money Store Home Equity
Trust, Cl B
6.290%, 01/15/06 375 375
44
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Asset-Backed Securities--continued
Spiegel Master Trust,
Ser 1995-A, Cl A
7.500%, 09/15/04 $ 1,000 $ 1,018
--------
Total Asset-Backed Securities
(Cost $15,911) 15,852
--------
Cash Equivalent (3.9%)
AIM Liquid Assets Portfolio 8,298 8,298
--------
Total Cash Equivalent
(Cost $8,298) 8,298
--------
Total Investments (98.9%)
(Cost $213,121) 211,658
--------
Other Assets and Liabilities, Net (1.1%) 2,412
--------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 21,170,603 outstanding shares of
beneficial interest 213,955
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 183,767 outstanding shares of
beneficial interest 1,837
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 235,594 outstanding shares
of beneficial interest 2,374
Overdistributed net investment income (2)
Accumulated net realized loss on investments (2,631)
Net unrealized depreciation on investments (1,463)
--------
Total Net Assets (100.0%) $214,070
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 9.91
========
Net Asset Value and Redemption
Price Per Share -- Investor Shares $ 9.93
========
Maximum Offering Price Per Share --
Investor Shares ($9.93 / 98.00%) $ 10.13
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 9.93
========
(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 56.
45
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Short-Term U.S. Treasury Securities Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations (92.2%)
U.S. Treasury Notes
5.875%, 11/15/99 $ 2,000 $ 2,009
5.625%, 12/31/99 11,500 11,544
5.875%, 02/15/00 2,250 2,264
6.875%, 03/31/00 1,250 1,268
5.500%, 04/15/00 2,500 2,508
6.125%, 07/31/00 2,250 2,273
6.125%, 09/30/00 2,000 2,020
5.750%, 10/31/00 2,000 2,012
5.375%, 02/15/01 12,800 12,796
6.250%, 10/31/01 3,000 3,051
7.500%, 11/15/01 7,500 7,838
6.250%, 01/31/02 4,500 4,576
6.625%, 03/31/02 4,500 4,620
--------
Total U.S. Treasury Obligations
(Cost $58,986) 58,779
--------
Cash Equivalent (3.4%)
SEI Daily Income Trust
Treasury II Portfolio 2,150 2,150
--------
Total Cash Equivalent
(Cost $2,150) 2,150
--------
Total Investments (95.6%)
(Cost $61,136) 60,929
--------
Other Assets and Liabilities, Net (4.4%) 2,828
--------
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 5,631,770 outstanding shares
of beneficial interest $56,173
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 281,282 outstanding shares of
beneficial interest 2,843
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 496,670 outstanding shares of
beneficial interest 4,969
Overdistributed net investment income (53)
Accumulated net realized gain on investments 32
Net unrealized depreciation on investments (207)
-------
Total Net Assets (100.0%) $63,757
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 9.95
=======
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 9.95
=======
Maximum Offering Price Per Share --
Investor Shares ($9.95 / 99.00%) $ 10.05
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 9.93
=======
(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 56.
46
<PAGE>
- --------------------------------------------------------------------------------
U.S Government Securities Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations (42.0%)
U.S. Treasury Bonds
7.250%, 05/15/16 $1,000 $ 1,118
7.625%, 02/15/25 400 480
6.875%, 08/15/25 1,000 1,104
6.000%, 02/15/26 2,000 1,985
6.625%, 02/15/27 1,000 1,075
6.125%, 11/15/27 8,545 8,637
5.250%, 11/15/28 2,350 2,127
5.250%, 02/15/29 1,000 918
U.S. Treasury Notes
8.500%, 11/15/00 950 992
4.625%, 12/31/00 1,260 1,246
6.250%, 04/30/01 6,700 6,801
8.000%, 05/15/01 200 209
6.625%, 06/30/01 580 593
7.500%, 05/15/02 750 788
6.250%, 06/30/02 550 560
5.750%, 10/31/02 845 848
4.750%, 02/15/04 6,700 6,466
7.250%, 05/15/04 500 532
7.875%, 11/15/04 275 302
7.500%, 02/15/05 500 541
6.500%, 10/15/06 8,500 8,836
6.625%, 05/15/07 1,050 1,103
4.750%, 11/15/08 1,700 1,581
-------
Total U.S. Treasury Obligations
(Cost $49,415) 48,842
-------
U.S. Agency Mortgage-Backed Obligations (52.7%)
FHLMC
6.000%, 02/01/01 59 59
7.000%, 01/01/09 72 73
7.000%, 04/01/09 228 233
7.000%, 08/01/10 476 484
7.000%, 01/01/11 282 287
7.000%, 02/01/12 974 990
6.500%, 03/01/12 2,707 2,699
7.000%, 05/01/12 722 733
6.500%, 12/01/12 1,361 1,357
FHLMC REMIC, Ser 2039, Cl PC
6.000%, 05/15/09 1,000 984
FNMA
6.000%, 11/25/07 741 738
7.500%, 06/01/11 385 396
7.000%, 09/17/11 580 589
7.000%, 05/01/12 627 636
7.000%, 06/01/12 522 530
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed Obligations--continued
7.000%, 07/01/12 $ 616 $ 625
6.500%, 06/01/13 1,619 1,614
6.500%, 09/01/13 194 193
7.000%, 10/25/16 566 567
6.500%, 07/01/18 1,015 998
6.290%, 08/01/18 1,477 1,440
6.500%, 08/01/18 933 913
6.000%, 12/01/18 1,963 1,868
7.000%, 01/01/27 866 867
7.500%, 04/01/27 496 507
6.000%, 03/01/28 998 950
6.500%, 03/02/28 790 773
6.500%, 03/01/29 3,992 3,903
FNMA REMIC, Ser 1990-143, Cl J
8.750%, 12/25/20 64 67
FNMA REMIC, Ser 1993-156, Cl B
6.500%, 04/25/18 100 99
FNMA REMIC, Ser 1996-30, Cl PC
7.000%, 11/25/20 2,000 2,032
FNMA REMIC, Ser 1996-68, Cl C
6.500%, 08/18/18 1,000 999
FNMA REMIC, Ser 1996-9, Cl H
6.500%, 11/25/13 1,337 1,313
FNMA REMIC, Ser 1997-34, Cl VC
7.500%, 05/01/12 1,000 1,025
FNMA REMIC, Ser 1997-6, Cl H
7.000%, 08/18/08 1,058 1,066
FNMA REMIC, Ser 1997-63, Cl PC
6.500%, 03/18/26 1,140 1,123
FNMA REMIC, Ser G93-40, Cl VC
6.500%, 08/25/10 261 258
GNMA
7.500%, 10/20/09 38 40
8.000%, 11/15/09 878 915
8.250%, 01/15/12 64 68
6.000%, 07/15/13 975 952
6.000%, 01/15/14 1,947 1,902
9.000%, 04/15/17 205 220
8.500%, 05/15/17 633 669
10.000%, 06/15/19 1 2
7.500%, 05/15/22 314 322
7.000%, 11/15/22 348 349
8.000%, 02/15/23 17 18
8.500%, 03/15/23 33 36
7.500%, 04/15/23 104 107
7.500%, 09/15/23 663 678
6.500%, 10/15/23 845 826
6.500%, 11/15/23 1,122 1,096
47
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
U.S Government Securities Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed Obligations--continued
7.000%, 01/15/24 $ 110 $ 111
7.500%, 04/15/24 586 600
7.000%, 06/15/24 650 652
8.000%, 08/15/24 58 60
8.000%, 09/15/24 13 14
8.000%, 10/15/24 19 21
8.000%, 11/15/24 15 16
8.500%, 12/15/24 44 47
8.500%, 02/15/25 10 11
7.000%, 12/15/25 367 368
7.500%, 01/15/26 400 410
7.500%, 09/15/26 598 612
7.000%, 03/15/27 236 236
7.000%, 04/15/27 762 764
7.500%, 07/15/27 333 341
7.000%, 09/15/27 63 63
7.000%, 10/15/27 769 772
7.500%, 10/15/27 43 45
7.000%, 11/15/27 1,047 1,049
7.000%, 12/15/27 844 846
7.000%, 01/15/28 1,212 1,215
7.500%, 01/15/28 334 342
6.500%, 02/15/28 949 927
6.500%, 03/15/28 137 134
6.500%, 04/15/28 85 83
6.500%, 05/20/28 1,899 1,843
6.500%, 06/15/28 40 40
6.500%, 09/15/28 2,968 2,898
6.250%, 10/15/28 1,985 1,910
6.500%, 02/15/29 704 687
GNMA REMIC, Ser 1995-6A, Cl E
7.500%, 05/20/23 1,000 1,022
GNMA REMIC, Ser 1998-9, Cl D
6.500%, 08/20/24 1,000 972
--------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $61,794) 61,299
--------
Asset-Backed Securities (0.1%)
EQCC Home Equity Loan Trust,
Ser 1994-1, Cl A
5.800%, 03/15/09 57 56
Olympic Auto Receivables Trust,
Ser 1995-D, Cl A4
6.050%, 11/15/00 12 12
--------
Total Asset-Backed Securities
(Cost $69) 68
--------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Cash Equivalents (4.7%)
AIM Liquid Assets Portfolio $ 3 $ 3
SEI Daily Income Trust
Government II Portfolio 4,224 4,224
SEI Daily Income Trust Treasury II
Portfolio 1,240 1,240
--------
Total Cash Equivalents
(Cost $5,467) 5,467
--------
Total Investments (99.5%)
(Cost $116,744) 115,676
--------
Other Assets and Liabilities, Net (0.5%) 545
--------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 9,935,496 outstanding shares
of beneficial interest 104,017
Fund shares of the Investor Class (unlimited
authorization -- no par value)
based on 246,587 outstanding shares of
beneficial interest 2,490
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
1,120,289 outstanding shares of
beneficial interest 11,737
Undistributed net investment income 4
Accumulated net realized
loss on investments (959)
Net unrealized depreciation
on investments (1,068)
--------
Total Net Assets (100.0%) $116,221
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.28
========
Net Asset Value and Redemption
Price Per Share -- Investor Shares $ 10.28
========
Maximum Offering Price Per Share --
Investor Shares ($10.28 / 96.25%) $ 10.68
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 10.28
========
(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 56.
48
<PAGE>
- --------------------------------------------------------------------------------
Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (98.4%)
Virginia (98.4%)
Abingdon, Industrial Development
Authority, Johnston Memorial
Hospital Project, RB,
Callable 07/01/08 @ 102
5.250%, 07/01/16 $ 2,000 $ 1,956
Alexandria, Public Improvement,
GO
4.500%, 01/01/15 2,000 1,915
Arlington County, Industrial
Development, Resource Recovery,
Alexandria/Arlington Waste,
Ogden Martin, Ser A, RB (FSA)
5.250%, 01/15/05 4,000 4,177
Arlington County, Industrial
Development, Resource Recovery,
Alexandria/Arlington Waste,
Ogden Martin, Ser B, RB, AMT,
Callable 07/01/08 @ 101 (FSA)
5.375%, 01/01/11 3,000 3,082
Arlington County, Public
Improvements, GO,
Callable 10/01/08 @ 101
5.000%, 10/01/11 3,220 3,298
Chesapeake Bay, Bridge & Tunnel
Authority, RB,
Prerefunded 07/01/01 @ 102
(MBIA)
6.375%, 07/01/22 7,000 7,504
Chesapeake, GO
5.400%, 12/01/08 2,500 2,664
Chesapeake, Hospital Authority,
General Hospital Project, RB,
Callable 07/01/00 @ 102
8.200%, 07/01/05 1,000 1,064
Chesterfield County, Health Center
Community Project, Lucy Corr
Nursing Home Project, RB,
Callable 12/01/06 @ 102 (E)
5.875%, 12/01/21 500 527
Chesterfield County, Public
Improvements, Ser A, GO,
Callable 01/01/08 @ 100 (E)
4.700%, 01/01/12 3,215 3,193
Danville, Industrial Development
Authority, Danville Regional
Medical Center Project, RB
(AMBAC)
5.250%, 10/01/28 4,250 4,256
Fairfax County, Industrial
Development, Inova Health System
Project, RB, Callable 08/15/06 @ 102
5.300%, 08/15/07 1,500 1,574
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Fairfax County, Industrial
Development, Inova Health System
Project, Ser A, RB,
Callable 02/15/08 @ 101
5.000%, 08/15/10 $ 2,890 $ 2,923
Fairfax County, Public Improvement,
Ser A, GO, Callable 06/01/07 @ 102
4.500%, 06/01/10 3,000 2,967
Fairfax County, School & Transit
Improvements, Ser B, GO,
Callable 06/01/01 @ 102 (E)
5.200%, 06/01/13 5,000 5,238
Fairfax County, Sewer Authority, RB,
Callable 11/15/03 @ 102 (AMBAC)
5.500%, 11/15/09 3,000 3,146
Fairfax County, Water Authority, RB,
Callable 04/01/07 @ 102 (AMBAC)
6.000%, 04/01/22 5,000 5,433
Fluvanna County, Industrial
Development, Elementary School
Project, RB, Callable 07/26/99 @ 100
4.150%, 01/15/01 3,465 3,466
Fredericksburg, Industrial
Development, Hospital Facilities,
Medicorp Health System, RB,
Callable 06/15/07 @ 102 (AMBAC)
5.250%, 06/15/16 5,000 4,980
Harrisonburg, Industrial
Development, Rockingham
Memorial Hospital Project, RB,
Callable 12/01/02 @ 102 (MBIA)
5.750%, 12/01/13 3,000 3,200
Henrico County, Industrial
Development, Educational
Facilities, Collegiate Schools, RB,
Callable 10/15/08 @ 102
5.000%, 10/15/19 2,250 2,158
Henrico County, Industrial
Development, Government Projects,
RB, Callable 06/01/06 @ 102
5.150%, 06/01/07 2,500 2,619
Henrico County, Industrial
Development, Residential &
Healthcare Facility, Our Lady
of Hope Project, RB,
Callable 07/01/03 @ 102 (E)
6.150%, 07/01/26 2,000 2,011
Henrico County, Industrial
Development, Residential Care
Facility, Westminister-
Canterbury Project, RB,
Callable 08/16/99 @ 100.5
7.300%, 10/01/99 1,060 1,067
49
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Virginia Intermediate Municipal Bond Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Henrico County, Industrial
Development, Solid Waste Facility,
Browning Ferris Project, RB,
Mandatory Put 12/01/05 @ 100 (C)
5.300%, 06/01/99 $ 1,000 $ 996
Henry County, Public Improvements,
GO, Callable 07/15/04 @ 102
6.000%, 07/15/14 1,000 1,079
Henrico County, Water & Sewer, RB,
Callable 05/01/09 @ 102
4.625%, 05/01/17 1,900 1,777
Loudoun County, Sanitation
Authority, Water & Sewer,
RB (FGIC)
5.900%, 01/01/02 1,000 1,049
Loudoun County, Sanitation
Authority, Water & Sewer, RB,
Callable 01/01/03 @ 102 (FGIC)
6.100%, 01/01/04 1,250 1,352
Loudoun County, Sanitation
Authority, Water & Sewer, RB,
Callable 01/01/09 @ 102 (MBIA)
4.750%, 01/01/30 4,450 4,069
Loudoun County, School & Public
Improvement, Ser A, GO,
Callable 08/01/07 @ 102 (E)
5.000%, 08/01/17 2,000 1,965
Lynchburg, GO,
Callable 04/01/03 @ 102
5.250%, 04/01/08 2,000 2,075
Lynchburg, Industrial Development,
Healthcare Facility, Central Health
Project, RB,
Callable 01/01/08 @ 101
5.200%, 01/01/23 3,000 2,909
Martinsville, GO
3.600%, 01/15/01 1,500 1,499
Newport News, Recreational Facility
Improvements, Ser A, GO,
Callable 07/01/05 @ 102 (MBIA)
5.500%, 07/01/12 2,500 2,606
Newport News, Ser A, GO
4.000%, 07/01/07 2,000 1,943
Newport News, Water, Utility &
Public Improvements, GO,
Callable 01/15/07 @ 102
5.250%, 01/15/14 3,530 3,597
Norfolk, Industrial Development,
Bon Secours Health Project, RB,
Callable 08/15/07 @ 102 (MBIA)
5.250%, 08/15/26 4,200 4,128
Norfolk, Industrial Development,
Children's Hospital Project, RB (AMBAC)
6.900%, 06/01/06 1,000 1,140
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Norfolk, Industrial Development,
Children's Hospital Project, RB,
Callable 06/01/04 @ 102 (AMBAC)
5.100%, 06/01/07 $ 1,000 $ 1,034
Norfolk, Industrial Development,
Public Health Center Project, RB,
Callable 09/15/06 @ 102
5.625%, 09/15/17 1,600 1,655
Norfolk, Industrial Development,
Sentara Hospital Project, Ser A, RB,
Callable 11/01/04 @ 102
4.900%, 11/01/07 2,500 2,551
5.000%, 11/01/08 2,500 2,551
Norfolk, Redevelopment & Housing
Authority, Educational Facilities
Revenue, Tidewater Community
College Campus Project, RB,
Callable 11/01/05 @ 102
5.800%, 11/01/08 700 753
Peninsula Ports, Hospital Authority,
Mary Immaculate Project, ETM, RB,
8.000%, 08/01/99 245 247
Peumansend Creek, Regional Jail
Authority, Grant Anticipation Note,
RB, Callable 09/01/99 @ 100
4.550%, 04/01/00 5,000 5,004
Portsmouth, GO,
Callable 08/01/03 @ 102
5.450%, 08/01/07 2,000 2,095
Portsmouth, Public Improvements,
GO, Prerefunded 08/01/00 @ 102
6.750%, 08/01/04 1,500 1,587
Prince William County, Park
Authority, Recreational Facility
Improvement, RB
5.500%, 10/15/99 500 504
5.800%, 10/15/01 500 522
Prince William County, Park
Authority, Recreational Facility
Improvement, RB,
Callable 10/15/04 @ 102
6.200%, 10/15/05 500 550
Prince William County, Ser C, RB,
Callable 08/01/03 @ 102 (E)
5.000%, 08/01/07 5,000 5,158
Prince William County, Water &
Sewer Improvements, RB,
Prerefunded 07/01/01 @ 102 (FGIC)
6.500%, 07/01/21 1,000 1,075
Richmond, Metropolitan Expressway
Authority, Ser A, RB,
Callable 07/15/02 @ 102 (FGIC)
5.900%, 07/15/03 1,500 1,609
50
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Richmond, Public Improvements,
Ser A, GO,
Callable 01/15/05 @ 102
5.300%, 01/15/09 $ 1,500 $ 1,563
Richmond, Redevelopment &
Housing Authority, Richmeade
Project, RB, AMT (C)
4.000%, 06/24/99 500 500
Roanoke, Industrial Development,
Roanoke Memorial Hospital Project,
Ser B, RB, Callable 07/01/02 @ 102
5.900%, 07/01/06 2,500 2,641
Roanoke, Public Improvements, GO
4.900%, 02/01/06 1,000 1,033
Roanoke, Public Improvements, GO,
Callable 02/01/06 @ 102
5.000%, 02/01/12 3,165 3,187
Roanoke Valley, Solid Waste System
Authority, Resource Recovery
Improvements, RB
5.400%, 09/01/02 1,450 1,504
Southeastern Public Service
Authority, Ser A, RB (MBIA)
5.150%, 07/01/09 5,000 5,179
State, College Building Authority,
Public Higher Education Financing,
Ser A, RB, Callable 09/01/08 @ 100
4.625%, 09/01/15 3,080 2,926
4.800%, 09/01/17 1,500 1,435
State, College Building Authority,
University of Richmond Project,
RB, Callable 11/01/02 @ 102
6.250%, 11/01/12 2,000 2,168
State, College Building Authority,
University of Richmond Project,
RB, Optional Put 11/01/04 @ 100
5.550%, 11/01/19 6,500 6,896
State, Commonwealth University,
Ser A, RB, Callable 05/01/06 @ 102
5.625%, 05/01/16 2,500 2,620
State, Education Loan Authority,
Ser B, RB, AMT, Prerefunded to
Various Call Dates @ 100 (E)
5.550%, 09/01/10 1,800 1,905
State, Education Loan Authority,
Student Loan Program,
Ser B, ETM, RB, AMT
4.850%, 09/01/01 520 532
State, Education Loan Authority,
Student Loan Program, Ser D,
ETM, RB, AMT
5.600%, 03/01/03 2,500 2,619
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, GO
5.600%, 06/01/02 $ 4,750 $ 4,995
State, Housing Development
Authority, Commonwealth
Mortgage, Ser B, RB,
Callable 01/01/06 @ 102
6.350%, 01/01/15 3,000 3,217
State, Housing Development
Authority, Commonwealth
Mortgage, Ser E, RB,
Callable 07/01/08 @ 101
4.950%, 01/01/11 1,250 1,249
State, Housing Development
Authority, Multi Family Housing,
RB, Callable 01/01/2008 @ 102
5.350%, 11/01/11 1,250 1,306
State, Housing Development
Authority, Multi Family Housing,
Ser B, RB, Callable 05/01/00 @ 102
7.375%, 05/01/05 1,000 1,039
State, Housing Development
Authority, Multi Family Housing,
Ser I, RB, AMT,
Callable 01/01/09 @ 101
4.875%, 11/01/12 1,950 1,936
State, Housing Development
Authority, Multi Family Housing,
Ser I, RB, Callable 01/01/08 @ 102
5.450%, 05/01/18 2,000 2,040
State, Housing Development
Authority, Ser C, RB,
Callable 01/01/02 @ 102
6.000%, 07/01/06 2,000 2,051
State, Housing Development
Authority, Ser C, RB,
Callable 01/01/08 @ 102
4.850%, 07/01/09 1,600 1,619
State, Housing Development
Authority, Single Family Housing,
Ser C, RB, Callable 01/01/02 @ 102
5.550%, 01/01/11 3,000 3,050
State, Polytechnic Institute &
University, Ser A, RB,
Callable 06/01/06 @ 102
5.450%, 06/01/13 2,500 2,591
5.500%, 06/01/16 5,435 5,610
State, Polytechnic Institute &
University, University & College
Improvements, Ser A, RB,
Callable 06/01/06 @ 102
5.350%, 06/01/09 2,000 2,107
51
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Virginia Intermediate Municipal Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Public Building Authority, RB,
Callable 08/01/05 @ 101
5.200%, 08/01/15 $1,500 $ 1,511
State, Public Building Authority, RB,
Callable 08/01/08 @ 100
4.375%, 08/01/10 1,000 972
State, Public Building Authority,
Ser A, RB
6.000%, 08/01/06 6,000 6,600
State, Public Building Authority,
Ser B, RB
5.600%, 08/01/01 4,000 4,155
State, Public School Authority, RB
4.375%, 08/01/10 1,000 969
State, Public School Authority, RB,
Callable 01/01/02 @ 102
6.250%, 01/01/08 2,000 2,143
State, Public School Authority, School
Financing, Ser B, RB,
Callable 01/01/03 @ 102 (E)
5.600%, 01/01/05 1,600 1,701
State, Public School Authority, School
Improvements, Ser B, RB,
Callable 01/01/00 @ 102
5.850%, 01/01/02 1,500 1,546
Suffolk, GO
5.200%, 08/01/02 1,500 1,558
Suffolk, GO, Callable 08/01/03 @ 102
5.600%, 08/01/06 2,000 2,125
5.700%, 08/01/07 2,000 2,141
Tazewell County, Industrial
Development, Courthouse
Project, RB,
Callable 01/01/07 @ 102 (MBIA)
5.300%, 01/01/27 1,000 1,003
University of Virginia, Hospital
Authority, Ser E, RB,
Prerefunded 06/01/99 @ 102 (F)
6.900%, 06/01/04 1,815 1,852
Virginia Beach, Development
Authority, Residential &
Healthcare Facility Project,
1st Mortgage, Our Lady of Perpetual
Hope Project, RB,
Callable 07/01/07 @ 102
6.050%, 07/01/20 1,500 1,506
Virginia Beach, Development
Authority, Sentara Bayside
Hospital Project, RB,
Callable 11/01/01 @ 102
6.300%, 11/01/21 1,750 1,883
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Virginia Beach, Refunding Bond, GO
5.300%, 07/15/07 $2,000 $ 2,130
5.250%, 08/01/08 2,000 2,112
5.450%, 07/15/11 1,000 1,061
Virginia Beach, Refunding Bond, GO,
Prerefunded 11/01/04 @ 102 (E)
5.750%, 11/01/10 3,500 3,829
243,812
--------
Total Municipal Bonds
(Cost $238,743) 243,812
--------
Cash Equivalent (0.9%)
AIM Tax Free Institutional
Cash Reserve 2,120 2,120
--------
Total Cash Equivalent
(Cost $2,120) 2,120
--------
Total Investments (99.3% )
(Cost $240,863) 245,932
--------
Other Assets and Liabilities, Net (0.7%) 1,857
--------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization -- no
par value) based on 23,543,767
outstanding shares 233,739
Fund Shares of Investor Class
(unlimited authorization -- no
par value) based on 755,319
outstanding shares 7,754
Undistributed net investment income 51
Accumulated net realized gain
on investments 1,176
Net unrealized appreciation on investments 5,069
--------
Total Net Assets (100.0%) $247,789
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.20
========
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $ 10.20
========
Maximum Offering Price Per Share --
Investor Shares ($10.20 / 96.25%) $ 10.60
========
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 56.
52
<PAGE>
- --------------------------------------------------------------------------------
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (90.1%)
Virginia (90.1%)
Albemarle County, Industrial
Development Authority, Martha
Jefferson Hospital Project, RB,
Callable 10/01/03 @ 102
5.800%, 10/01/09 $ 500 $ 524
Albemarle County, Industrial
Development Authority, Our Lady
of Peace Project, Ser A, RB,
Callable 07/01/05 @ 102
5.800%, 07/01/25 500 488
Alexandria, Industrial Development
Authority, Episcopal High School
Project, RB, Callable 01/01/06 @ 102
5.300%, 01/01/11 500 516
Alexandria, Industrial Development
Authority, Potomac Electric
Project, Ser A, RB,
Callable 02/15/04 @ 102 (MBIA)
5.375%, 02/15/24 400 403
Alexandria, Redevelopment &
Housing Authority, Buckingham
Village Apartments Project, RB,
Callable 01/01/06 @ 102
6.050%, 07/01/16 250 260
Alexandria, Redevelopment &
Housing Authority, Essex House
Project, Ser A, RB, AMT,
Callable 01/01/08 @ 102
5.550%, 07/01/28 1,000 1,017
Arlington County, Industrial
Development Authority,
Headquarters Facility Project,
Ser A, RB, Callable 07/01/07 @ 102
5.250%, 07/01/12 300 307
Arlington County, Public
Improvements, GO,
Callable 06/01/05 @ 101.50
5.400%, 06/01/12 250 260
Brunswick County, Industrial
Development Authority,
Correctional Facility Lease, RB,
Callable 07/01/06 @ 102 (MBIA)
5.500%, 07/01/17 400 411
Chesapeake, Refunding Bond, GO
5.250%, 12/01/06 500 530
Chesapeake, Water & Sewer, Ser A,
GO, Callable 12/01/05 @ 102
5.000%, 12/01/25 475 458
Chesapeake Bay, Bridge & Tunnel
Commission, RB, Callable 07/01/05
@ 102 (MBIA)
5.000%, 07/01/22 1,000 964
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Dinwiddie County, Industrial
Development Authority,
County School Completion
Project, Ser A, RB,
Callable 02/01/08 @ 102 (MBIA)
5.000%, 02/01/19 $1,500 $ 1,445
Fairfax County, Industrial
Development Authority, Fairfax
Hospital, Ser A, RB (C)
3.300%, 06/02/99 100 100
Fairfax County, Industrial
Development Authority,
Inova Health System
Project, RB (FSA)
5.250%, 08/15/19 500 507
Fairfax County, Public
Improvements, Ser A, GO,
Callable 06/01/03 @ 102
5.000%, 06/01/07 500 517
Fairfax County, Redevelopment &
Housing Authority, Mott & Gum
Springs Community Centers, RB,
Callable 06/01/06 @ 102
5.500%, 06/01/12 425 441
Fairfax County, Redevelopment &
Housing Authority, Paul Spring
Center Project, Ser A, RB,
Callable 12/01/06 @ 103 (C)
5.900%, 06/15/17 250 264
Fairfax County, Water Authority,
Refunding Bond, RB,
Callable 04/01/07 @ 102 (AMBAC)
6.000%, 04/01/22 315 342
Fredericksburg, Industrial
Development Authority, Hospital
Facilities Project, Medicorp
Health System Obligation, RB,
Callable 06/15/07 @ 102 (AMBAC)
5.300%, 06/15/10 500 516
5.250%, 06/15/23 300 295
Giles County, Industrial Development
Authority, Hoechst Celanese,
RB, AMT, Callable 05/01/06 @ 102
6.450%, 05/01/26 500 542
Hampton Roads, Regional Jail
Facilities, Ser B, RB (C) (E)
3.300%, 06/02/99 100 100
Henrico County, Industrial
Development Authority,
Collegiate Schools, RB,
Callable 10/15/08 @ 102
5.000%, 10/15/19 1,000 959
Henrico County, Industrial
Development Authority, Our
Lady of Hope Project, RB,
Callable 07/01/03 @ 102
6.100%, 07/01/20 1,000 1,006
53
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Virginia Municipal Bond Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Henry County, Industrial
Development Authority, Martinsville
& Henry Hospital Project, RB,
Callable 01/01/07 @ 101
6.000%, 01/01/17 $ 500 $ 525
James City County, Public
Improvements, GO,
Callable 12/15/05 @ 102 (FGIC)
5.250%, 12/15/14 250 255
King George County, Industrial
Development Authority, Birchwood
Power Partners, Ser A,
RB, AMT (C) (E)
3.500%, 06/01/99 1,500 1,500
Leesburg, Public Improvements,
GO, Callable 06/01/05 @ 102
(AMBAC)
5.400%, 06/01/10 250 261
Leesburg, Utility Systems, RB,
Callable 07/01/07 @ 102 (MBIA)
5.000%, 07/01/10 750 766
Loudoun County, Sanitation
Authority, Water & Sewer Project,
RB, Callable 01/01/07 @ 102 (FGIC)
5.125%, 01/01/26 750 736
Loudoun County, School
Improvements, Ser A, GO,
Callable 06/01/06 @ 102 (C)
5.600%, 06/01/10 250 266
Lynchburg, Industrial Development
Authority, Healthcare Facility,
Centra Health Project, RB,
Callable 01/01/08 @ 101
5.200%, 01/01/23 500 485
5.200%, 01/01/28 1,000 960
Lynchburg, Public Improvements,
GO, Callable 05/01/06 @ 102
5.100%, 05/01/11 500 510
Manassas, Water Utility
Improvements, Ser A, GO,
Callable 01/01/08 @ 102
5.000%, 01/01/18 500 491
Manassas Park, GO,
Callable 04/01/09 @ 101 (FSA)
5.100%, 04/01/22 500 491
Newport News, Redevelopment &
Housing Authority, Mortgage
Financing, Ser A, RB,
Callable 08/20/07 @102
(GNMA) (C)
5.850%, 12/20/30 500 525
Norfork, GO
5.500%, 02/01/13 475 496
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Norfolk, Industrial Development
Authority, Bon Secours
Healthcare Project, RB,
Callable 08/15/07 @ 102 (MBIA)
5.250%, 08/15/17 $ 750 $ 744
Norfolk, Public Improvements, GO,
Callable 06/01/06 @ 101
5.250%, 06/01/09 500 522
Portsmouth, Public Improvements,
GO, Callable 08/01/06 @ 101 (FGIC)
5.250%, 08/01/21 500 500
Prince William County, Industrial
Development Authority,
Residential Care Facilities,
Westminster Lake Ridge, Ser A,
RB, Callable 01/01/07 @ 102
6.625%, 01/01/26 200 212
Roanoke County, Industrial
Development Authority, Roanoke
Memorial Hospital Project,
Ser C, RB (C) (E)
3.200%, 06/01/99 1,000 1,000
Roanoke, Public Improvements, GO,
Callable 08/01/04 @ 102
5.150%, 08/01/12 250 254
Spotsylvania County, GO (FSA)
5.000%, 07/15/14 1,000 1,013
Spotsylvania County, Water &
Sewer System, RB,
Callable 06/01/07 @ 102 (MBIA)
5.250%, 06/01/12 500 513
State, Biotechnology Research Park
Authority, Biotech Two Project,
RB, Callable 09/01/06 @ 101
5.250%, 09/01/18 500 502
State, College Building Authority,
Educational Facilites, Marymount
University Project, RB,
Callable 07/01/08 (C)
5.100%, 07/01/18 1,000 976
State, Housing Development
Authority, Commonwealth
Mortgage Project, Ser E, GO
5.125%, 07/01/17 2,000 1,989
State, Housing Development
Authority, Commonwealth
Mortgage Project, Ser A, RB,
Callable 01/01/03 @ 102
6.400%, 07/01/17 985 1,036
State, Housing Development
Authority, Commonwealth
Mortgage Project, Ser A, RB, AMT,
Callable 01/01/06 @ 102 (MBIA)
6.350%, 07/01/18 150 160
54
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Polytechnic Institute &
State University, University
Service Systems, RB,
Callable 06/01/06 @ 102
5.500%, 06/01/16 $ 200 $ 206
State, Public Building Authority,
Public Improvements, RB,
Callable 08/01/05 @ 101
5.200%, 08/01/16 300 301
State, Public School Authority,
School Financing, Ser A, RB,
Callable 08/01/07 @ 102 (C)
5.375%, 08/01/18 500 511
State, University & College
Improvements, Ser A, RB,
Callable 05/01/06 @ 102
5.625%, 05/01/16 1,000 1,048
Virginia Beach, Industrial
Development Authority, Our
Lady of Perpetual Hope Project,
RB, Callable 07/01/07 @ 102
6.150%, 07/01/27 250 251
Virginia Beach, Refunding Bond, GO
5.450%, 07/15/11 200 212
West Point, Industrial Development
Authority, Chesapeake Corporation
Project, Ser B, RB,
Callable 03/01/04 @ 102
6.250%, 03/01/19 165 174
Williamsburg, Industrial
Development Authority,
Hospital Facilities, Williamsburg
Community Hospital, RB,
Callable 10/01/03 @ 102
5.750%, 10/01/22 1,450 1,474
-------
Total Municipal Bonds
(Cost $34,677) 35,037
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Cash Equivalents (8.3%)
AIM Tax Free Institutional
Cash Reserve $1,588 $ 1,588
Federated Virginia Municipal
Cash Trust 1,637 1,637
-------
Total Cash Equivalents
(Cost $3,225) 3,225
-------
Total Investments (98.4%)
(Cost $37,902) 38,262
-------
Other Assets and Liabilities, Net (1.6%) 616
-------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization -- no
par value) based on 3,061,763
outstanding shares 31,515
Fund Shares of Flex Class
(unlimited authorization -- no
par value) based on 662,147
outstanding shares 6,972
Accumulated net realized gain
on investments 31
Net unrealized appreciation on investments 360
-------
Total Net Assets (100.0%) $38,878
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.43
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 10.48
=======
(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 56.
55
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
Key to Abbreviations used in
the Statement of Net Assets
AMBAC Security insured by the American Municipal
Bond Assurance Corporation
AMT Alternative Minimum Tax
Cl Class
CMO Collateralized Mortgage Obligation
COP Certificate of Participation
ETM Escrowed to Maturity
FFCB Federal Farm Credit Bank
FGIC Security insured by the Financial Guaranty
Insurance Company
FHA Federal Housing Authority
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Security insured by Financial Security
Assurance
GNMA Government National Mortgage Association
GO General Obligation
MBIA Security insured by the Municipal Bond
Insurance Association
MTN Medium Term Note
RB Revenue Bond
REMIC Real Estate Mortgage Investment Conduit
Ser Series
STRIPS Separately Traded Registered Interest and
Principal Security
TCRS Transferrable Custodial Receipts
(A) Zero Coupon Bond
(B) Private Placement Security
(C) Adjustable rate security. The rate reported on
the Statement of Net Assets is the rate in effect
on May 31, 1999. The date shown is the next
scheduled reset date.
(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) Collateralized by U.S. government Securities
(G) Collateralized by State and Local Government
Securities
(H) Tri-Party Repurchase Agreement
56
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
<TABLE>
<CAPTION>
Investment
Grade
Tax-Exempt
Bond Fund
------------
Assets:
<S> <C>
Investments at value (Cost $194,279) ........................................................................ $193,699
Cash ........................................................................................................ 104
Accrued income .............................................................................................. 3,615
Receivable for investment securities sold ................................................................... 6,559
Receivable for portfolio shares purchased ................................................................... 21
Other Assets ................................................................................................ 16
--------
Total Assets ................................................................................................ 204,014
--------
Liabilities:
Payable for investment securities purchased ................................................................. 7,095
Accrued expenses ............................................................................................ 225
Payable for portfolio shares redeemed ....................................................................... 271
Distributions payable ....................................................................................... 587
--------
Total liabilities .............................................................................................. 8,178
--------
Net Assets ..................................................................................................... $195,836
========
Net Assets:
Fund shares of the Trust Class (unlimited authorization -- no par value)
based on 13,880,127 outstanding shares of beneficial interest ............................................... 153,346
Fund shares of the Investor Class (unlimited authorization -- no par value)
based on 2,266,151 outstanding shares of beneficial interest ................................................ 23,958
Fund shares of the Flex Class (unlimited authorization -- no par value)
based on 1,487,506 outstanding shares of beneficial interest ................................................ 16,800
Undistributed net investment income ............................................................................ 4
Accumulated net realized gain on investments ................................................................... 2,308
Net unrealized depreciation on investments ..................................................................... (580)
--------
Total Net Assets ............................................................................................... $195,836
========
Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ....................................... $ 11.10
========
Net Asset Value and Redemption Price Per Share -- Investor Shares .............................................. $ 11.12
========
Maximum Offering Price Per Share -- Investor Shares ($11.12 / 96.25%) .......................................... $ 11.55
========
Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) .................................... $ 11.10
========
</TABLE>
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
57
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FIXED FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Limited-
Investment Term Federal
Florida Georgia Investment Grade Mortgage
Tax-Exempt Tax-Exempt Grade Bond Tax-Exempt Securities
Bond Fund Bond Fund Fund Bond Fund Fund
---------- ---------- ---------- ---------- ------------
06/01/98- 06/01/98- 06/01/98- 06/01/98- 06/01/98-
05/31/99 05/31/99 05/31/99 05/31/99 05/31/99
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Interest Income ........................................... $5,658 $4,015 $52,830 $8,431 $8,743
------ ------ ------- ------ ------
Expenses:
Investment Advisory Fees ............................... 804 575 6,499 1,381 955
Less: Investment Advisory Fees Waived/Reimbursed........ (133) (96) (743) (191) (153)
Administrator Fees ..................................... 96 69 683 146 115
Less: Administrative Fees Waived ....................... -- -- -- -- --
Transfer Agent Fees -- Trust Shares .................... 13 15 20 13 15
Transfer Agent Fees -- Investor Shares ................. 13 11 28 6 13
Transfer Agent Fees -- Flex Shares ..................... 14 13 27 18 11
Transfer Agent Out of Pocket Fees ...................... 11 8 98 21 12
Printing Expenses ...................................... 6 4 46 23 4
Custody Fees ........................................... 2 1 30 9 2
Professional Fees ...................................... 5 4 38 15 8
Trustee Fees ........................................... 2 1 9 5 2
Registration Fees ...................................... 12 8 43 8 9
Distribution Fees -- Trust Shares ...................... -- -- -- -- --
Less: Distribution Fees Waived -- Trust Shares ......... -- -- -- -- --
Distribution Fees -- Investor Shares ................... 7 6 142 115 6
Less: Distribution Fees Waived -- Investor Shares ...... (2) (6) (36) (12) (1)
Distribution Fees -- Flex Shares ....................... 115 100 183 107 18
Less: Distribution Fees Waived -- Flex Shares .......... (48) (42) (47) (30) (18)
Insurance and Other Fees ............................... 3 -- 29 4 1
Amortization of Deferred Organization Costs ............ 1 -- -- -- 3
------ ------ ------- ------ ------
Total Expenses ......................................... 921 671 7,049 1,638 1,002
------ ------ ------- ------ ------
Net Investment Income ..................................... 4,737 3,344 45,781 6,793 7,741
------ ------ ------- ------ ------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ............ 1,160 414 15,248 4,833 88
Net Change in Unrealized Appreciation ..................
(Depreciation) on Investments ........................... (1,845) (1,241) (27,720) (3,278) (1,037)
------ ------ ------- ------ ------
Total Net Realized and Unrealized Gain (Loss)
on Investments ....................................... (685) (827) (12,472) 1,555 (949)
------ ------ ------- ------ ------
Net Increase in Net Assets from Operations ................ $4,052 $2,517 $33,309 $8,348 $6,792
====== ====== ======= ====== ======
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-Term
Maryland U.S. Treasury U.S.
Municipal Short-Term Securities Government
Bond Fund Bond Fund Fund Securities Fund
---------------------- ---------- ------------- ---------------
12/01/98- 12/01/97- 06/01/98- 06/01/98- 06/01/98-
05/31/99 11/30/98 05/31/99 05/31/99 05/31/99
--------- --------- ---------- ------------- ---------------
<S> <S> <C> <C> <C> <C>
Interest Income ........................................... $ 616 $ 826 $ 7,921 $ 2,903 $ 3,247
------ ------- ------- ------- -------
Expenses:
Investment Advisory Fees ............................... 84 105 890 352 380
Less: Investment Advisory Fees Waived/Reimbursed........ (49) (61) (139) (62) (57)
Administrator Fees ..................................... 33 26 106 42 40
Less: Administrative Fees Waived ....................... -- -- -- -- --
Transfer Agent Fees -- Trust Shares .................... 5 9 14 17 14
Transfer Agent Fees -- Investor Shares ................. -- -- 11 12 11
Transfer Agent Fees -- Flex Shares ..................... 2 -- 12 13 13
Transfer Agent Out of Pocket Fees ...................... -- -- 13 4 5
Printing Expenses ...................................... 1 1 3 -- 2
Custody Fees ........................................... 3 5 5 -- 1
Professional Fees ...................................... 6 2 7 -- 3
Trustee Fees ........................................... -- -- -- -- 1
Registration Fees ...................................... 1 4 9 -- --
Distribution Fees -- Trust Shares ...................... 41 30 -- -- --
Less: Distribution Fees Waived -- Trust Shares ......... (35) (29) -- -- --
Distribution Fees -- Investor Shares ................... -- -- 4 5 11
Less: Distribution Fees Waived -- Investor Shares ...... -- -- (4) (5) (2)
Distribution Fees -- Flex Shares ....................... 24 18 21 27 54
Less: Distribution Fees Waived -- Flex Shares .......... -- (1) (21) (27) (22)
Insurance and Other Fees ............................... 3 16 -- -- --
Amortization of Deferred Organization Costs ............ -- -- -- -- --
------ ------- ------- ------- -------
Total Expenses ......................................... 119 125 931 378 454
------ ------- ------- ------- -------
Net Investment Income ..................................... 497 701 6,990 2,525 2,793
------ ------- ------- ------- -------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ............ (19) 58 414 243 15
Net Change in Unrealized Appreciation ..................
(Depreciation) on Investments ........................... (437) 406 (2,357) (388) (1,299)
------ ------- ------- ------- -------
Total Net Realized and Unrealized Gain (Loss)
on Investments ....................................... (456) 464 (1,943) (145) (1,284)
------ ------- ------- ------- -------
Net Increase (Decrease) in Net Assets from Operations ..... $ 41 $ 1,165 $ 5,047 $ 2,380 $ 1,509
====== ======= ======= ======= =======
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
Virginia
Intermediate Virginia
Municipal Municipal
Bond Fund Bond Fund
--------------------- --------------------
12/01/98- 12/01/97- 12/01/98- 12/01/97
05/31/99 11/30/98 05/31/99 11/30/98
--------- --------- --------- --------
<S> <C> <C> <C> <C>
Interest Income ........................................... $ 6,288 $12,776 $ 895 $ 1,419
------- ------- ------- -------
Expenses:
Investment Advisory Fees ............................... 641 1,248 110 167
Less: Investment Advisory Fees Waived/Reimbursed........ -- -- (20) (28)
Administrator Fees ..................................... 185 375 27 42
Less: Administrative Fees Waived ....................... -- -- (20) (36)
Transfer Agent Fees -- Trust Shares .................... 84 125 8 13
Transfer Agent Fees -- Investor Shares ................. 3 1 -- --
Transfer Agent Fees -- Flex Shares ..................... -- -- 2 1
Transfer Agent Out of Pocket Fees ...................... -- -- -- --
Printing Expenses ...................................... 5 24 2 1
Custody Fees ........................................... 47 92 6 10
Professional Fees ...................................... 25 29 5 5
Trustee Fees ........................................... 2 6 -- --
Registration Fees ...................................... 2 11 2 5
Distribution Fees -- Trust Shares ...................... 469 464 59 48
Less: Distribution Fees Waived -- Trust Shares ......... (410) (445) (52) (46)
Distribution Fees -- Investor Shares ................... 6 13 -- --
Less: Distribution Fees Waived -- Investor Shares ...... (6) (13) -- --
Distribution Fees -- Flex Shares ....................... -- -- 25 26
Less: Distribution Fees Waived -- Flex Shares .......... -- -- -- (1)
Insurance and Other Fees ............................... 13 37 7 9
Amortization of Deferred Organization Costs ............ -- -- -- --
------- ------- ------- -------
Total Expenses ......................................... 1,066 1,967 161 216
------- ------- ------- -------
Net Investment Income ..................................... 5,222 10,809 734 1,203
------- ------- ------- -------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ............ 1,177 1,725 31 175
Net Change in Unrealized Appreciation ..................
(Depreciation) on Investments ........................... (5,509) 2,380 (722) 507
------- ------- ------- -------
Total Net Realized and Unrealized Gain (Loss)
on Investments ....................................... (4,332) 4,105 (691) 682
------- ------- ------- -------
Net Increase (Decrease) in Net Assets from Operations ..... $ 890 $14,914 $ 43 $ 1,885
======= ======= ======= =======
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
59
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Florida Tax-Exempt Georgia Tax-Exempt
Bond Fund Bond Fund
-------------------------- --------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
05/31/99 05/31/98 05/31/99 05/31/98
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income ............................................... $ 4,737 $ 3,410 $ 3,344 $ 2,430
Net Realized Gain (Loss) on Investments ............................. 1,160 720 414 195
Net Change in Unrealized Appreciation (Depreciation)
on Investments .................................................... (1,845) 2,334 (1,241) 1,962
--------- -------- -------- --------
Increase in Net Assets from Operations ............................ 4,052 6,464 2,517 4,587
--------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ...................................................... (4,235) (3,070) (2,897) (2,075)
Investor Shares ................................................... (134) (128) (128) (147)
Flex Shares ....................................................... (369) (211) (318) (207)
Capital Gains:
Trust Shares ...................................................... (1,037) (42) (162) (61)
Investor Shares ................................................... (37) (2) (8) (4)
Flex Shares ....................................................... (122) (3) (20) (7)
--------- -------- -------- --------
Total Distributions ................................................. (5,934) (3,456) (3,533) (2,501)
--------- -------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ....................................... 51,929 59,209 36,255 34,479
Shares Issued in Connection with Crestar Merger ................... -- -- -- --
Reinvestment of Cash Distributions ................................ 1,663 420 1,180 924
Cost of Shares Repurchased ........................................ (27,307) (18,838) (11,514) (14,516)
--------- -------- -------- --------
Increase in Net Assets From Trust Share Transactions ................ 26,285 40,791 25,921 20,887
--------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued ....................................... 1,105 870 1,195 1,508
Shares Issued in Connection with Crestar Merger ................... -- -- -- --
Reinvestment of Cash Distributions ................................ 143 101 118 131
Cost of Shares Repurchased ........................................ (780) (955) (1,586) (1,314)
--------- -------- -------- --------
Increase (Decrease) in Net Assets From Investor Share Transactions .. 468 16 (273) 325
--------- -------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... 11,906 6,969 5,982 4,983
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Reinvestment of Cash Distributions ............................... 433 172 304 186
Cost of Shares Repurchased ....................................... (5,520) (2,189) (1,034) (1,770)
--------- -------- -------- --------
Increase in Net Assets From Flex Share Transactions ................ 6,819 4,952 5,252 3,399
--------- -------- -------- --------
Increase in Net Assets From Share Transactions ................... 33,572 45,759 30,900 24,611
--------- ------- ------- --------
Total Increase (Decrease) in Net Assets ........................ 31,690 48,767 29,884 26,697
--------- ------- ------- --------
Net Assets:
Beginning of Period .............................................. 105,480 56,713 74,602 47,905
--------- -------- -------- --------
End of Period .................................................... $ 137,170 $105,480 $104,486 $ 74,602
========= ======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 4,807 5,591 3,562 3,445
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 154 40 116 92
Shares Redeemed .................................................. (2,530) (1,777) (1,128) (1,456)
--------- -------- -------- --------
Net Trust Share Transactions ....................................... 2,431 3,854 2,550 2,081
--------- -------- -------- --------
Investor Shares:
Shares Issued .................................................... 102 82 117 149
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 13 10 12 13
Shares Redeemed .................................................. (72) (90) (155) (131)
--------- -------- -------- --------
Net Investor Share Transactions .................................... 43 2 (26) 31
--------- -------- -------- --------
Flex Shares:
Shares Issued .................................................... 1,102 658 586 495
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 40 16 30 19
Shares Redeemed .................................................. (512) (205) (102) (176)
--------- -------- -------- --------
Net Flex Share Transactions ........................................ 630 469 514 338
========= ======== ======== ========
Net Change in Capital Shares ....................................... 3,104 4,325 3,038 2,450
--------- -------- -------- --------
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
The accompanying notes are an integral part of the financial statements
60
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investment Grade Investment Grade
Bond Fund Tax-Exempt Bond Fund
----------------------- ------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
05/31/99 05/31/98 05/31/99 05/31/98
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income .............................................. $ 45,781 $ 43,082 $ 6,793 $ 6,699
Net Realized Gain (Loss) on Investments ............................ 15,248 10,888 4,833 6,478
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (27,720) 24,005 (3,278) 1,225
---------- -------- -------- --------
Increase in Net Assets from Operations ........................... 33,309 77,975 8,348 14,402
---------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (43,474) (40,937) (5,587) (5,523)
Investor Shares .................................................. (1,621) (1,729) (901) (1,002)
Flex Shares ...................................................... (807) (416) (305) (173)
Capital Gains:
Trust Shares ..................................................... (13,468) -- (4,790) (3,989)
Investor Shares .................................................. (547) -- (914) (799)
Flex Shares ...................................................... (306) -- (323) (152)
---------- -------- -------- --------
Total Distributions ................................................ (60,223) (43,082) (12,820) (11,638)
---------- -------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 310,338 258,775 58,516 39,596
Shares Issued in Connection with Crestar Merger .................. 314,362 -- -- --
Reinvestment of Cash Distributions ............................... 42,773 30,522 5,421 4,599
Cost of Shares Repurchased ....................................... (286,648) (162,448) (52,929) (38,924)
---------- -------- -------- --------
Increase in Net Assets From Trust Share Transactions ............... 380,825 126,849 11,008 5,271
---------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued ...................................... 8,100 5,860 2,158 2,484
Shares Issued in Connection with Crestar Merger .................. 2,385 -- -- --
Reinvestment of Cash Distributions ............................... 2,052 1,609 1,627 1,614
Cost of Shares Repurchased ....................................... (9,990) (8,920) (6,100) (8,284)
---------- -------- -------- --------
Increase (Decrease) in Net Assets From Investor Share Transactions . 2,547 (1,451) (2,315) (4,186)
---------- -------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... 19,438 9,584 10,543 6,179
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Reinvestment of Cash Distributions ............................... 1,002 351 551 296
Cost of Shares Repurchased ....................................... (6,765) (2,932) (2,643) (2,842)
---------- -------- -------- --------
Increase in Net Assets From Flex Share Transactions ................ 13,675 7,003 8,451 3,633
---------- -------- -------- --------
Increase in Net Assets From Share Transactions ................... 397,047 132,401 17,144 4,718
---------- -------- -------- --------
Total Increase (Decrease) in Net Assets ........................ 370,133 167,294 12,672 7,482
---------- -------- -------- --------
Net Assets:
Beginning of Period .............................................. 839,868 672,574 183,164 175,682
---------- -------- -------- --------
End of Period .................................................... $1,210,001 $839,868 $195,836 $183,164
========== ======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 28,937 24,713 5,150 3,486
Shares Issued in Connection with Crestar Merger .................. 30,233 -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 3,979 2,915 479 407
Shares Redeemed .................................................. (26,711) (15,497) (4,614) (3,425)
---------- -------- -------- --------
Net Trust Share Transactions ....................................... 36,438 12,131 1,015 468
---------- -------- -------- --------
Investor Shares:
Shares Issued .................................................... 758 557 190 218
Shares Issued in Connection with Crestar Merger .................. 229 -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 191 154 143 142
Shares Redeemed .................................................. (931) (852) (535) (727)
---------- -------- -------- --------
Net Investor Share Transactions .................................... 247 (141) (202) (367)
---------- -------- -------- --------
Flex Shares:
Shares Issued .................................................... 1,821 908 936 544
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 93 33 49 26
Shares Redeemed .................................................. (634) (278) (234) (250)
---------- -------- -------- --------
Net Flex Share Transactions ........................................ 1,280 663 751 320
========== ======== ======== ========
Net Change in Capital Shares ....................................... 37,965 12,653 1,564 421
---------- -------- -------- --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Limited-Term Federal
Mortgage Securities Fund
-------------------------
06/01/98- 06/01/97-
05/31/99 05/31/98
-------- --------
<S> <C> <C>
Operations:
Net Investment Income .............................................. $ 7,741 $ 7,936
Net Realized Gain (Loss) on Investments ............................ 88 502
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (1,037) 1,031
--------- --------
Increase in Net Assets from Operations ........................... 6,792 9,469
--------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (7,568) (7,721)
Investor Shares .................................................. (125) (135)
Flex Shares ...................................................... (83) (78)
Capital Gains:
Trust Shares ..................................................... (1,611) (194)
Investor Shares .................................................. (28) (3)
Flex Shares ...................................................... (19) (2)
--------- --------
Total Distributions ................................................ (9,434) (8,133)
--------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 54,404 43,610
Shares Issued in Connection with Crestar Merger .................. -- --
Reinvestment of Cash Distributions ............................... 6,287 5,346
Cost of Shares Repurchased ....................................... (60,354) (36,666)
--------- --------
Increase in Net Assets From Trust Share Transactions ............... 337 12,290
--------- --------
Investor Shares:
Proceeds from Shares Issued ...................................... 853 1,128
Shares Issued in Connection with Crestar Merger .................. -- --
Reinvestment of Cash Distributions ............................... 151 131
Cost of Shares Repurchased ....................................... (1,458) (1,006)
--------- --------
Increase (Decrease) in Net Assets From Investor Share Transactions . (454) 253
--------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... 1,082 691
Shares Issued in Connection with Crestar Merger .................. -- --
Reinvestment of Cash Distributions ............................... 96 75
Cost of Shares Repurchased ....................................... (566) (647)
--------- --------
Increase in Net Assets From Flex Share Transactions ................ 612 119
--------- --------
Increase in Net Assets From Share Transactions ................... 495 12,662
--------- --------
Total Increase (Decrease) in Net Assets ........................ (2,147) 13,998
--------- --------
Net Assets:
Beginning of Period .............................................. 141,736 127,738
--------- --------
End of Period .................................................... $139,589 $141,736
========= ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 5,379 4,313
Shares Issued in Connection with Crestar Merger .................. -- --
Shares Issued in Lieu of Cash Distributions ...................... 620 529
Shares Redeemed .................................................. (5,979) (3,626)
-------- --------
Net Trust Share Transactions ....................................... 20 1,216
-------- --------
Investor Shares:
Shares Issued .................................................... 84 112
Shares Issued in Connection with Crestar Merger .................. -- --
Shares Issued in Lieu of Cash Distributions ...................... 15 13
Shares Redeemed .................................................. (144) (100)
-------- --------
Net Investor Share Transactions .................................... (45) 25
-------- --------
Flex Shares:
Shares Issued .................................................... 107 68
Shares Issued in Connection with Crestar Merger .................. -- --
Shares Issued in Lieu of Cash Distributions ...................... 10 7
Shares Redeemed .................................................. (56) (64)
-------- --------
Net Flex Share Transactions ........................................ 61 11
======== ========
Net Change in Capital Shares ....................................... 36 1,252
-------- --------
</TABLE>
<TABLE>
<CAPTION>
Maryland Municipal
Bond Fund
----------------------------------
12/01/98- 12/01/97- 12/01/96-
05/31/99 11/30/98 11/30/97
-------- -------- --------
<S> <C> <C> <C>
Operations:
Net Investment Income .............................................. $ 497 $ 701 $ 374
Net Realized Gain (Loss) on Investments ............................ (19) 58 (5)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (437) 406 241
------- ------- -------
Increase in Net Assets from Operations ........................... 41 1,165 610
------- ------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (425) (645) (363)
Investor Shares .................................................. -- -- --
Flex Shares ...................................................... (77) (56) (11)
Capital Gains:
Trust Shares ..................................................... (24) -- --
Investor Shares .................................................. -- -- --
Flex Shares ...................................................... (4) -- --
------- ------- -------
Total Distributions ................................................ (530) (701) (374)
------- ------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 15,770 13,041 6,495
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... 14 11 2
Cost of Shares Repurchased ....................................... (4,854) (5,813) (1,067)
------- ------- -------
Increase in Net Assets From Trust Share Transactions ............... 10,930 7,239 5,430
------- ------- -------
Investor Shares:
Proceeds from Shares Issued ...................................... -- -- --
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... -- -- --
Cost of Shares Repurchased ....................................... -- -- --
------- ------- -------
Increase (Decrease) in Net Assets From Investor Share Transactions . -- -- --
------- ------- -------
Flex Shares:
Proceeds from Shares Issued ...................................... 4,739 2,772 518
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... 66 41 9
Cost of Shares Repurchased ....................................... (226) (177) (92)
------- ------- -------
Increase in Net Assets From Flex Share Transactions ................ 4,579 2,636 435
------- ------- -------
Increase in Net Assets From Share Transactions ................... 15,509 9,875 5,865
------- ------- -------
Total Increase (Decrease) in Net Assets ........................ 15,020 10,339 6,101
------- ------- -------
Net Assets:
Beginning of Period .............................................. 22,361 12,022 5,921
------- ------- -------
End of Period .................................................... $37,381 $22,361 $12,022
======= ======= =======
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 1,556 1,292 667
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 2 1 --
Shares Redeemed .................................................. (479) (575) (110)
------- ------- -------
Net Trust Share Transactions ....................................... 1,079 718 557
------- ------- -------
Investor Shares:
Shares Issued .................................................... -- -- --
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... -- -- --
Shares Redeemed .................................................. -- -- --
------- ------- -------
Net Investor Share Transactions .................................... -- -- --
------- ------- -------
Flex Shares:
Shares Issued .................................................... 464 274 53
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 7 4 1
Shares Redeemed .................................................. (22) (17) (9)
------- ------- -------
Net Flex Share Transactions ........................................ 449 261 45
======= ======= =======
Net Change in Capital Shares ....................................... 1,528 979 602
------- ------- -------
</TABLE>
The accompanying notes are an integral part of the financial statements
61
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Short-Term Short-Term U.S. Treasury
Bond Fund Securities Fund
----------------------- ------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
05/31/99 05/31/98 05/31/99 05/31/98
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income .............................................. $ 6,990 $ 6,036 $ 2,525 $ 1,816
Net Realized Gain on Investments ................................... 414 502 243 47
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (2,357) 1,163 (388) 211
-------- -------- -------- --------
Increase in Net Assets from Operations ........................... 5,047 7,701 2,380 2,074
-------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (6,805) (5,864) (2,281) (1,575)
Investor Shares .................................................. (92) (106) (133) (178)
Flex Shares ...................................................... (95) (67) (111) (63)
Capital Gains:
Trust Shares ..................................................... (356) (100) -- --
Investor Shares .................................................. (4) (2) -- --
Flex Shares ...................................................... (5) (1) -- --
-------- -------- -------- --------
Total Distributions ................................................ (7,357) (6,140) (2,525) (1,816)
-------- -------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 57,981 59,682 17,499 33,653
Shares Issued in Connection with Crestar Merger .................. 72,757 -- -- --
Reinvestment of Cash Distributions ............................... 3,614 3,238 951 661
Cost of Shares Repurchased ....................................... (42,626) (33,705) (9,243) (9,594)
-------- -------- -------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................................... 91,726 29,215 9,207 24,720
-------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued ...................................... 589 190 1,382 479
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Reinvestment of Cash Distributions ............................... 94 103 133 180
Cost of Shares Repurchased ....................................... (781) (560) (1,983) (1,338)
-------- -------- -------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................... (98) (267) (468) (679)
-------- -------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... 2,540 1,392 5,314 1,012
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Reinvestment of Cash Distributions ............................... 96 65 94 56
Cost of Shares Repurchased ....................................... (2,365) (441) (1,855) (757)
-------- -------- -------- --------
Increase (Decrease) in Net Assets From Flex Share Transactions ..... 271 1,016 3,553 311
-------- -------- -------- --------
Increase (Decrease) in Net Assets From Share Transactions ........ 91,899 29,964 12,292 24,352
-------- -------- -------- --------
Total Increase (Decrease) in Net Assets ........................ 89,589 31,525 12,147 24,610
-------- -------- -------- --------
Net Assets:
Beginning of Period ................................................ 124,481 92,956 51,610 27,000
-------- -------- -------- --------
End of Period ...................................................... $214,070 $124,481 $ 63,757 $ 51,610
======== ======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 5,746 5,955 1,750 3,381
Shares Issued in Connection with Crestar Merger .................. 7,308 -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 357 323 95 66
Shares Redeemed .................................................. (4,219) (3,364) (921) (965)
-------- -------- -------- --------
Net Trust Share Transactions ....................................... 9,192 2,914 924 2,482
-------- -------- -------- --------
Investor Shares:
Shares Issued .................................................... 58 19 138 48
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 9 10 13 18
Shares Redeemed .................................................. (77) (56) (198) (134)
-------- -------- -------- --------
Net Investor Share Transactions .................................... (10) (27) (47) (68)
-------- -------- -------- --------
Flex Shares:
Shares Issued .................................................... 251 139 531 102
Shares Issued in Connection with Crestar Merger .................. -- -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 10 6 9 6
Shares Redeemed .................................................. (235) (44) (185) (76)
-------- -------- -------- --------
Net Flex Share Transactions ........................................ 26 101 355 32
======== ======== ======== ========
Net Change in Capital Shares ....................................... 9,208 2,988 1,232 2,446
-------- -------- -------- --------
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
The accompanying notes are an integral part of the financial statements
62
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U. S. Government
Securities Fund
------------------------
06/01/98- 06/01/97-
05/31/99 05/31/98
--------- ---------
<S> <C> <C>
Operations:
Net Investment Income .............................................. $ 2,793 $ 1,894
Net Realized Gain on Investments ................................... 15 55
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (1,299) 1,207
-------- --------
Increase in Net Assets from Operations ........................... 1,509 3,156
-------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (2,385) (1,585)
Investor Shares .................................................. (153) (141)
Flex Shares ...................................................... (252) (168)
Capital Gains:
Trust Shares ..................................................... -- --
Investor Shares .................................................. -- --
Flex Shares ...................................................... -- --
-------- --------
Total Distributions ................................................ (2,790) (1,894)
-------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 23,161 20,160
Shares Issued in Connection with Crestar Merger .................. 56,128 --
Reinvestment of Cash Distributions ............................... 520 380
Cost of Shares Repurchased ....................................... (11,462) (6,142)
-------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................................... 68,347 14,398
-------- --------
Investor Shares:
Proceeds from Shares Issued ...................................... 956 1,625
Shares Issued in Connection with Crestar Merger .................. -- --
Reinvestment of Cash Distributions ............................... 152 134
Cost of Shares Repurchased ....................................... (1,762) (880)
-------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................... (654) 879
-------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... 5,920 2,695
Shares Issued in Connection with Crestar Merger .................. 3,174 --
Reinvestment of Cash Distributions ............................... 206 145
Cost of Shares Repurchased ....................................... (1,637) (1,748)
-------- --------
Increase (Decrease) in Net Assets From Flex Share Transactions ..... 7,663 1,092
-------- --------
Increase (Decrease) in Net Assets From Share Transactions ........ 75,356 16,369
-------- --------
Total Increase (Decrease) in Net Assets ........................ 74,075 17,631
-------- --------
Net Assets:
Beginning of Period ................................................ 42,146 24,515
-------- --------
End of Period ...................................................... $116,221 $ 42,146
======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 2,197 1,949
Shares Issued in Connection with Crestar Merger .................. 5,439 --
Shares Issued in Lieu of Cash Distributions ...................... 49 37
Shares Redeemed .................................................. (1,087) (592)
-------- --------
Net Trust Share Transactions ....................................... 6,598 1,394
-------- --------
Investor Shares:
Shares Issued .................................................... 91 157
Shares Issued in Connection with Crestar Merger .................. -- --
Shares Issued in Lieu of Cash Distributions ...................... 15 13
Shares Redeemed .................................................. (167) (85)
-------- --------
Net Investor Share Transactions .................................... (61) 85
-------- --------
Flex Shares:
Shares Issued .................................................... 564 260
Shares Issued in Connection with Crestar Merger .................. 308 --
Shares Issued in Lieu of Cash Distributions ...................... 19 14
Shares Redeemed .................................................. (156) (169)
-------- --------
Net Flex Share Transactions ........................................ 735 105
======== ========
Net Change in Capital Shares ....................................... 7,272 1,584
-------- --------
</TABLE>
<TABLE>
<CAPTION>
Virginia Intermediate Municipal Bond Fund
------------------------------------------
12/01/98- 12/01/97- 12/01/96-
05/31/99 11/30/98 11/30/97
---------- -------- ---------
<S> <C> <C> <C>
Operations:
Net Investment Income .............................................. $ 5,222 $ 10,809 $ 11,260
Net Realized Gain on Investments ................................... 1,177 1,725 1,641
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (5,509) 2,380 490
-------- -------- --------
Increase in Net Assets from Operations ........................... 890 14,914 13,391
-------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (5,069) (10,471) (10,835)
Investor Shares .................................................. (166) (364) (353)
Flex Shares ...................................................... -- -- --
Capital Gains:
Trust Shares ..................................................... (1,670) (793) --
Investor Shares .................................................. (56) (28) --
Flex Shares ...................................................... -- -- --
-------- -------- --------
Total Distributions ................................................ (6,961) (11,656) (11,188)
-------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 26,357 36,891 35,373
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... 43 629 22
Cost of Shares Repurchased ....................................... (24,041) (34,155) (43,571)
-------- -------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................................... 2,359 3,365 (8,176)
-------- -------- --------
Investor Shares:
Proceeds from Shares Issued ...................................... 653 2,174 938
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... 164 289 274
Cost of Shares Repurchased ....................................... (821) (2,503) (1,639)
-------- -------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................... (4) (40) (427)
-------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... -- -- --
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... -- -- --
Cost of Shares Repurchased ....................................... -- -- --
-------- -------- --------
Increase (Decrease) in Net Assets From Flex Share Transactions ..... -- -- --
-------- -------- --------
Increase (Decrease) in Net Assets From Share Transactions ........ 2,355 3,325 (8,603)
-------- -------- --------
Total Increase (Decrease) in Net Assets ........................ (3,716) 6,583 (6,400)
-------- -------- --------
Net Assets:
Beginning of Period ................................................ 251,505 244,922 251,322
-------- -------- --------
End of Period ...................................................... $247,789 $251,505 $244,922
======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 2,543 3,557 3,476
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 4 61 2
Shares Redeemed .................................................. (2,327) (3,293) (4,278)
-------- -------- --------
Net Trust Share Transactions ....................................... 220 325 (800)
-------- -------- --------
Investor Shares:
Shares Issued .................................................... 62 210 92
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 16 28 27
Shares Redeemed .................................................. (79) (241) (161)
-------- -------- --------
Net Investor Share Transactions .................................... (1) (3) (42)
-------- -------- --------
Flex Shares:
Shares Issued .................................................... -- -- --
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... -- -- --
Shares Redeemed .................................................. -- -- --
-------- -------- --------
Net Flex Share Transactions ........................................ -- -- --
======== ======== ========
Net Change in Capital Shares ....................................... 219 322 (842)
-------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
Virginia Municipal Bond Fund
------------------------------------------
12/01/98- 12/01/97- 12/01/96-
05/31/99 11/30/98 11/30/97
--------- --------- ---------
<S> <C> <C> <C>
Operations:
Net Investment Income .............................................. $ 734 $ 1,203 $ 832
Net Realized Gain on Investments ................................... 31 175 67
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................... (722) 507 278
-------- -------- --------
Increase in Net Assets from Operations ........................... 43 1,885 1,177
-------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................................... (650) (1,116) (792)
Investor Shares .................................................. -- -- --
Flex Shares ...................................................... (88) (87) (40)
Capital Gains:
Trust Shares ..................................................... (155) (50) (12)
Investor Shares .................................................. -- -- --
Flex Shares ...................................................... (20) (4) (1)
-------- -------- --------
Total Distributions ................................................ (913) (1,257) (845)
-------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................................... 7,281 13,751 9,497
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... 29 60 26
Cost of Shares Repurchased ....................................... (3,890) (5,172) (5,693)
-------- -------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................................... 3,420 8,639 3,830
-------- -------- --------
Investor Shares:
Proceeds from Shares Issued ...................................... -- -- --
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... -- -- --
Cost of Shares Repurchased ....................................... -- -- --
-------- -------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................... -- -- --
-------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................................... 3,816 2,474 743
Shares Issued in Connection with Crestar Merger .................. -- -- --
Reinvestment of Cash Distributions ............................... 77 64 31
Cost of Shares Repurchased ....................................... (514) (376) (115)
-------- -------- --------
Increase (Decrease) in Net Assets From Flex Share Transactions ..... 3,379 2,162 659
-------- -------- --------
Increase (Decrease) in Net Assets From Share Transactions ........ 6,799 10,801 4,489
-------- -------- --------
Total Increase (Decrease) in Net Assets ........................ 5,929 11,429 4,821
-------- -------- --------
Net Assets:
Beginning of Period ................................................ 32,949 21,520 16,699
-------- -------- --------
End of Period ...................................................... $ 38,878 $ 32,949 $ 21,520
======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................................... 688 1,302 928
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 3 6 2
Shares Redeemed .................................................. (368) (488) (559)
-------- -------- --------
Net Trust Share Transactions ....................................... 323 820 371
-------- -------- --------
Investor Shares:
Shares Issued .................................................... -- -- --
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... -- -- --
Shares Redeemed .................................................. -- -- --
-------- -------- --------
Net Investor Share Transactions .................................... -- -- --
-------- -------- --------
Flex Shares:
Shares Issued .................................................... 359 233 73
Shares Issued in Connection with Crestar Merger .................. -- -- --
Shares Issued in Lieu of Cash Distributions ...................... 7 6 3
Shares Redeemed .................................................. (49) (35) (11)
-------- -------- --------
Net Flex Share Transactions ........................................ 317 204 65
======== ======== ========
Net Change in Capital Shares ....................................... 640 1,024 436
-------- -------- --------
</TABLE>
The accompanying notes are an integral part of the financial statements
63
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS For the Periods Ended May 31, (unless otherwise
indicated)
For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Asset Net Realized and Distributions
Value Net Unrealized Gains from Net Distributions Net Asset
Beginning Investment (Losses) Investment from Realized Value End
of Period Income (Loss) on Investments Income Capital Gains of Period
--------- ------------- -------------- ------ ------------- ---------
Florida Tax-Exempt Bond Fund
Trust Shares
<S> <C> <C> <C> <C> <C> <C>
1999 $10.72 $ 0.42 $(0.02) $(0.42) $(0.11) $10.59
1998 10.28 0.44 0.45 (0.44) (0.01) 10.72
1997 10.06 0.46 0.25 (0.46) (0.03) 10.28
1996 10.18 0.46 (0.07) (0.46) (0.05) 10.06
1995 9.75 0.44 0.43 (0.44) -- 10.18
Investor Shares
1999 $10.72 $ 0.40 $(0.01) $(0.40) $(0.11) $10.60
1998 10.29 0.42 0.44 (0.42) (0.01) 10.72
1997 10.07 0.44 0.25 (0.44) (0.03) 10.29
1996 10.18 0.44 (0.06) (0.44) (0.05) 10.07
1995 9.75 0.42 0.43 (0.42) -- 10.18
Flex Shares
1999 $10.74 $ 0.35 $(0.01) $(0.35) $(0.11) $10.62
1998 10.30 0.37 0.45 (0.37) (0.01) 10.74
1997 10.08 0.39 0.25 (0.39) (0.03) 10.30
1996(1) 10.19 0.39 (0.06) (0.39) (0.05) 10.08
Georgia Tax-Exempt Bond Fund
Trust Shares
1999 $10.11 $ 0.39 $(0.06) $(0.39) $(0.02) $10.03
1998 9.73 0.41 0.39 (0.41) (0.01) 10.11
1997 9.56 0.42 0.22 (0.42) (0.05) 9.73
1996 9.63 0.43 (0.05) (0.43) (0.02) 9.56
1995 9.42 0.42 0.21 (0.42) -- 9.63
Investor Shares
1999 $10.13 $ 0.37 $(0.06) $(0.37) $(0.02) $10.05
1998 9.74 0.39 0.40 (0.39) (0.01) 10.13
1997 9.58 0.40 0.21 (0.40) (0.05) 9.74
1996 9.65 0.41 (0.05) (0.41) (0.02) 9.58
1995 9.44 0.40 0.21 (0.40) -- 9.65
Flex Shares
1999 $10.12 $ 0.32 $(0.06) $(0.32) $(0.02) $10.04
1998 9.73 0.34 0.40 (0.34) (0.01) 10.12
1997 9.56 0.35 0.22 (0.35) (0.05) 9.73
1996(2) 9.72 0.36 (0.14) (0.36) (0.02) 9.56
Investment Grade Bond Fund
Trust Shares
1999 $10.65 $ 0.56 $(0.11) $(0.56) $(0.18) $10.36
1998 10.16 0.60 0.49 (0.60) -- 10.65
1997 10.07 0.60 0.09 (0.60) -- 10.16
1996 10.26 0.60 (0.19) (0.60) -- 10.07
1995 9.89 0.61 0.37 (0.61) -- 10.26
Investor Shares
1999 $10.65 $ 0.52 $(0.11) $(0.52) $(0.18) $10.36
1998 10.16 0.55 0.49 (0.55) -- 10.65
1997 10.06 0.56 0.10 (0.56) -- 10.16
1996 10.26 0.56 (0.20) (0.56) -- 10.06
1995 9.89 0.57 0.38 (0.58) -- 10.26
Flex Shares
1999 $10.66 $ 0.47 $(0.11) $(0.47) $(0.18) $10.37
1998 10.17 0.51 0.49 (0.51) -- 10.66
1997 10.07 0.51 0.10 (0.51) -- 10.17
1996 (3) 10.33 0.52 (0.26) (0.52) -- 10.07
</TABLE>
+ Returns are for the period indicated and have not been annualized. Total
return figures do not reflect applicable sales loads.
(1) Commenced operations on June 1, 1995. All ratios for the period have been
annualized.
(2) Commenced operations on June 6, 1995. All ratios for the period have been
annualized.
(3) Commenced operations on June 7, 1995. All ratios for the period have been
annualized.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Ratio of Expenses to
Net Assets Ratio of Net Investment Average Net Assets
Total End of Expenses to Income (Loss) to (Excluding Waivers
Return (+) Period (000) Average Net Assets Average Net Assets and Reimbursements)
---------- ------------ ------------------ ------------------ -------------------
Florida Tax-Exempt Bond Fund
Trust Shares
<S> <C> <C> <C> <C> <C>
1999 3.72% $ 118,609 0.67% 3.90% 0.77%
1998 8.77 93,939 0.66 4.16 0.80
1997 7.22 50,487 0.65 4.48 0.80
1996 3.87 30,790 0.65 4.49 0.88
1995 9.26 10,118 0.65 4.63 1.13
Investor Shares
1999 3.62% $ 3,799 0.87% 3.71% 1.31%
1998 8.46 3,381 0.86 3.98 1.34
1997 7.00 3,226 0.85 4.28 1.31
1996 3.76 4,025 0.85 4.28 1.36
1995 9.04 3,320 0.85 4.36 1.50
Flex Shares
1999 3.13% $ 14,762 1.37% 3.21% 1.88%
1998 8.04 8,160 1.36 3.45 2.01
1997 6.48 3,000 1.35 3.78 2.28
1996(1) 3.27 2,692 1.35 3.79 2.54
Georgia Tax-Exempt Bond Fund
Trust Shares
1999 3.33% $ 87,452 0.67% 3.87% 0.78%
1998 8.37 62,363 0.66 4.09 0.81
1997 6.79 39,732 0.65 4.31 0.81
1996 3.89 22,950 0.65 4.36 0.89
1995 6.94 13,187 0.65 4.56 0.98
Investor Shares
1999 3.13% $ 3,676 0.87% 3.67% 1.25%
1998 8.26 3,975 0.86 3.89 1.30
1997 6.47 3,511 0.85 4.10 1.33
1996 3.69 3,418 0.85 4.17 1.41
1995 6.70 3,268 0.85 4.31 1.43
Flex Shares
1999 2.63% $ 13,358 1.37% 3.19% 1.89%
1998 7.74 8,264 1.36 3.39 2.02
1997 6.06 4,662 1.35 3.60 2.07
1996(2) 2.25* 4,207 1.35 3.66 2.35
Investment Grade Bond Fund
Trust Shares
1999 4.25% $1,149,068 0.77% 5.25% 0.85%
1998 10.92 793,488 0.76 5.67 0.86
1997 6.99 633,646 0.75 5.89 0.85
1996 4.02 599,514 0.75 5.81 0.87
1995 10.39 543,308 0.75 6.22 0.88
Investor Shares
1999 3.86% $ 34,913 1.17% 4.87% 1.36%
1998 10.49 33,269 1.14 5.29 1.38
1997 6.66 33,165 1.15 5.48 1.41
1996 3.50 36,155 1.15 5.40 1.44
1995 10.04 33,772 1.15 5.79 1.49
Flex Shares
1999 3.35% $ 26,020 1.66% 4.40% 2.00%
1998 9.99 13,111 1.65 4.76 2.11
1997 6.16 5,763 1.64 5.00 2.20
1996 (3) 2.50 4,621 1.64 4.84 2.49
</TABLE>
<TABLE>
<CAPTION>
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
(Excluding Waivers Turnover
and Reimbursements) Rate
------------------- ----
Florida Tax-Exempt Bond Fund
Trust Shares
<S> <C> <C>
1999 3.80% 72%
1998 4.02 69
1997 4.33 135
1996 4.26 63
1995 4.15 105
Investor Shares
1999 3.27% 72%
1998 3.50 69
1997 3.82 135
1996 3.77 63
1995 3.71 105
Flex Shares
1999 2.70% 72%
1998 2.80 69
1997 2.85 135
1996(1) 2.60 63
Georgia Tax-Exempt Bond Fund
Trust Shares
1999 3.76% 12%
1998 3.94 7
1997 4.15 15
1996 4.12 60
1995 4.23 25
Investor Shares
1999 3.29% 12%
1998 3.45 7
1997 3.62 15
1996 3.61 60
1995 3.73 25
Flex Shares
1999 2.67% 12%
1998 2.73 7
1997 2.88 15
1996(2) 2.66 60
Investment Grade Bond Fund
Trust Shares
1999 5.17% 221%
1998 5.57 109
1997 5.79 298
1996 5.69 184
1995 6.09 238
Investor Shares
1999 4.68% 221%
1998 5.05 109
1997 5.22 298
1996 5.11 184
1995 5.45 238
Flex Shares
1999 4.06% 221%
1998 4.30 109
1997 4.44 298
1996 (3) 3.99 184
</TABLE>
The accompanying notes are an integral part of the financial statements
65
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS For the Periods Ended May 31, (unless otherwise
indicated) For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Asset Net Realized and Distributions
Value Net Unrealized Gains from Net Distributions Net Asset
Beginning Investment (Losses) Investment from Realized Value End
of Period Income (Loss) on Investments Income Capital Gains of Period
--------- ------------- -------------- ------ ------------- ---------
Investment Grade Tax-Exempt
Bond Fund
Trust Shares
<S> <C> <C> <C> <C> <C> <C>
1999 $11.40 $ 0.43 $ 0.10 $(0.43) $(0.40) $11.10
1998 11.22 0.44 0.50 (0.44) (0.32) 11.40
1997 11.10 0.44 0.33 (0.44) (0.21) 11.22
1996 11.28 0.45 0.19 (0.45) (0.37) 11.10
1995 10.68 0.46 0.60 (0.46) -- 11.28
Investor Shares
1999 $11.41 $ 0.38 $ 0.11 $(0.38) $(0.40) $11.12
1998 11.24 0.39 0.49 (0.39) (0.32) 11.41
1997 11.12 0.40 0.33 (0.40) (0.21) 11.24
1996 11.30 0.41 0.19 (0.41) (0.37) 11.12
1995 10.69 0.42 0.61 (0.42) -- 11.30
Flex Shares
1999 $11.40 $ 0.33 $ 0.10 $(0.33) $(0.40) $11.10
1998 11.23 0.33 0.49 (0.33) (0.32) 11.40
1997 11.11 0.35 0.33 (0.35) (0.21) 11.23
1996(1) 11.30 0.37 0.18 (0.37) (0.37) 11.11
Limited-Term Federal Mortgage
Securities Fund
Trust Shares
1999 $10.12 $ 0.54 $(0.06) $(0.54) $(0.12) $ 9.94
1998 10.02 0.58 0.11 (0.58) (0.01) 10.12
1997 9.99 0.58 0.04 (0.58) (0.01) 10.02
1996 10.11 0.62 (0.14) (0.60) -- 9.99
1995(2) 10.00 0.58 0.13 (0.60) -- 10.11
Investor Shares
1999 $10.11 $ 0.51 $(0.06) $(0.51) $(0.12) $ 9.93
1998 10.00 0.56 0.12 (0.56) (0.01) 10.11
1997 9.97 0.56 0.04 (0.56) (0.01) 10.00
1996 10.11 0.60 (0.14) (0.60) -- 9.97
1995(3) 9.98 0.58 0.13 (0.58) -- 10.11
Flex Shares
1999 $10.12 $ 0.48 $(0.06) $(0.48) $(0.12) $ 9.94
1998 10.02 0.52 0.11 (0.52) (0.01) 10.12
1997 9.99 0.52 0.04 (0.52) (0.01) 10.02
1996(4) 10.14 0.55 (0.15) (0.55) -- 9.99
Maryland Municipal Bond Fund (A)
Trust Shares
1999(5) $10.22 $ 0.20 $(0.15) $(0.20) $(0.01) $10.06
For the years ended
November 30:
1998 9.95 0.42 0.27 (0.42) -- 10.22
1997 9.76 0.43 0.19 (0.43) -- 9.95
1996(6) 10.00 0.31 (0.24) (0.31) -- 9.76
Flex Shares
1999 $10.24 $ 0.15 $(0.15) $(0.15) $(0.01) $10.08
For the years ended
November 30:
1998 9.96 0.33 0.28 (0.33) -- 10.24
1997 9.76 0.34 0.20 (0.34) -- 9.96
1996(7) 9.53 0.20 0.23 (0.20) -- 9.76
Short-Term Bond Fund
Trust Shares
1999 $10.05 $ 0.51 $(0.10) $(0.52) $(0.03) $ 9.91
1998 9.90 0.55 0.16 (0.55) (0.01) 10.05
1997 9.86 0.53 0.07 (0.53) (0.03) 9.90
1996 9.98 0.54 (0.10) (0.54) (0.02) 9.86
1995 9.79 0.53 0.19 (0.53) -- 9.98
Investor Shares
1999 $10.07 $ 0.49 $(0.10) $(0.50) $(0.03) $ 9.93
1998 9.91 0.53 0.17 (0.53) (0.01) 10.07
1997 9.88 0.51 0.06 (0.51) (0.03) 9.91
1996 10.01 0.52 (0.10) (0.53) (0.02) 9.88
1995 9.81 0.51 0.19 (0.50) -- 10.01
Flex Shares
1999 $10.07 $ 0.47 $(0.11) $(0.47) $(0.03) $ 9.93
1998 9.91 0.50 0.17 (0.50) (0.01) 10.07
1997 9.88 0.48 0.06 (0.48) (0.03) 9.91
1996(8) 10.02 0.47 (0.12) (0.47) (0.02) 9.88
</TABLE>
+ Returns are for the period indicated and have not been annualized. Total
return figures do not reflect applicable sales loads.
(1) Commenced operations on June 1, 1995. All ratios for the period have been
annualized.
(2) Commenced operations on June 7, 1994. All ratios for the period have been
annualized.
(3) Commended operations on July 17, 1994. All ratios for the period have been
annualized.
(4) Commended operations on June 7, 1995. All ratios for the period have been
annualized.
(5) For the six month period ended May 31, 1999. All ratios for the period have
been annualized.
(6) Commenced operations on March 1, 1996. All ratios for the period have been
annualized.
66
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Ratio of Expenses to
Net Assets Ratio of Net Investment Average Net Assets
Total End of Expenses to Income (Loss) to (Excluding Waivers
Return (+) Period (000) Average Net Assets Average Net Assets and Reimbursements)
---------- ------------ ------------------ ------------------ -------------------
Investment Grade Tax-Exempt
Bond Fund
Trust Shares
<S> <C> <C> <C> <C> <C>
1999 4.67% $ 154,123 0.77% 3.75% 0.87%
1998 8.57 146,606 0.76 3.83 0.88
1997 7.13 139,144 0.75 3.96 0.86
1996 5.82 124,507 0.75 4.01 0.89
1995 10.21 78,208 0.75 4.34 0.91
Investor Shares
1999 4.35% $ 25,195 1.17% 3.36% 1.32%
1998 8.05 28,159 1.16 3.43 1.43
1997 6.69 31,857 1.15 3.56 1.38
1996 5.40 37,427 1.15 3.61 1.42
1995 9.91 41,693 1.15 3.88 1.43
Flex Shares
1999 3.78% $ 16,518 1.65% 2.86% 2.03%
1998 7.50 8,399 1.64 2.95 2.10
1997 6.19 4,681 1.63 3.08 2.15
1996(1) 4.91 5,536 1.63 3.12 2.25
Limited-Term Federal Mortgage
Securities Fund
Trust Shares
1999 4.75% $ 135,256 0.67% 5.28% 0.77%
1998 7.12 137,488 0.66 5.75 0.77
1997 6.43 123,903 0.65 5.81 0.78
1996 4.84 73,370 0.65 6.04 0.84
1995(2) 7.50 41,823 0.65 6.43 0.93
Investor Shares
1999 4.47% $ 2,214 0.92% 5.03% 1.52%
1998 6.95 2,705 0.91 5.50 1.51
1997 6.17 2,426 0.90 5.55 1.48
1996 4.59 2,512 0.90 5.75 2.25
1995(3) 7.45 623 0.90 6.27 7.74
Flex Shares
1999 4.14% $ 2,119 1.27% 4.69% 2.42%
1998 6.49 1,543 1.26 5.16 2.72
1997 5.80 1,409 1.25 5.20 2.66
1996(4) 4.10 1,349 1.25 5.38 3.59
Maryland Municipal Bond Fund (A)
Trust Shares
1999(5) 0.48% $ 29,658 0.70% 3.83% 1.37%
For the years ended
November 30:
1998 7.03 19,115 0.62 4.11 1.15
1997 6.50 11,461 0.63 4.38 1.16
1996(6) 1.07 5,808 0.71 4.30 1.36
Flex Shares
1999 0.05% $ 7,723 1.59% 2.94% 1.98%
For the years ended
November 30:
1998 6.17 3,246 1.57 3.16 1.96
1997 5.64 561 1.54 3.43 2.00
1996(7) 7.67 113 1.55 3.42 2.20
Short-Term Bond Fund
Trust Shares
1999 4.06% $ 209,904 0.67% 5.12% 0.77%
1998 7.31 120,422 0.66 5.47 0.79
1997 6.30 89,701 0.65 5.37 0.78
1996 4.45 91,156 0.65 5.39 0.81
1995 7.60 60,952 0.65 5.49 0.85
Investor Shares
1999 3.88% $ 1,825 0.87% 4.92% 1.59%
1998 7.19 1,949 0.86 5.27 1.71
1997 5.97 2,182 0.85 5.16 1.58
1996 4.23 2,700 0.85 5.20 1.72
1995 7.44 2,609 0.85 5.24 1.56
Flex Shares
1999 3.50% $ 2,341 1.22% 4.55% 2.33%
1998 6.84 2,110 1.21 4.93 2.85
1997 5.62 1,073 1.20 4.82 3.02
1996(8) 3.73 966 1.20 4.77 4.06
</TABLE>
<TABLE>
<CAPTION>
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
(Excluding Waivers Turnover
and Reimbursements) Rate
------------------- ----
Investment Grade Tax-Exempt
Bond Fund
Trust Shares
<S> <C> <C>
1999 3.65% 224%
1998 3.71 378
1997 3.85 489
1996 3.87 514
1995 4.18 592
Investor Shares
1999 3.21% 224%
1998 3.16 378
1997 3.33 489
1996 3.34 514
1995 3.60 592
Flex Shares
1999 2.48% 224%
1998 2.49 378
1997 2.56 489
1996(1) 2.50 514
Limited-Term Federal Mortgage
Securities Fund
Trust Shares
1999 5.18% 379%
1998 5.64 163
1997 5.68 133
1996 5.85 83
1995(2) 6.15 68
Investor Shares
1999 4.43% 379%
1998 4.90 163
1997 4.97 133
1996 4.40 83
1995(3) (0.57) 68
Flex Shares
1999 3.54% 379%
1998 3.70 163
1997 3.79 133
1996(4) 3.04 83
Maryland Municipal Bond Fund (A)
Trust Shares
1999(5) 3.16% 19%
For the years ended
November 30:
1998 3.58 12
1997 3.85 5
1996(6) 3.65 9
Flex Shares
1999 2.55% 19%
For the years ended
November 30:
1998 2.77 12
1997 2.97 5
1996(7) 2.77 9
Short-Term Bond Fund
Trust Shares
1999 5.02% 108%
1998 5.34 87
1997 5.24 118
1996 5.23 163
1995 5.29 200
Investor Shares
1999 4.20% 108%
1998 4.42 87
1997 4.43 118
1996 4.33 163
1995 4.53 200
Flex Shares
1999 3.44% 108%
1998 3.29 87
1997 3.00 118
1996(8) 1.91 163
</TABLE>
(7) Commenced operations on April 25, 1996. All ratios for the period have been
annualized.
(8) Commenced operations on June 20, 1995. All ratios for the period have been
annualized.
(A) On May 24, 1999, the Crestar Maryland Municipal Bond Fund exchanged all of
its assets and certain liabilities for shares of the Maryland Municipal
Bond Fund. The Crestar Maryland Municipal Bond Fund is the accounting
survivor in this transaction, and as a result, its basis of accounting for
assets and liabilities and its operating results for the periods prior to
May 24, 1999 have been carried forward in these financial highlights.
The accompanying notes are an integral part of the financial statements
67
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS For the Periods Ended May 31, (unless otherwise
indicated) For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Asset Net Realized and Distributions
Value Net Unrealized Gains from Net Distributions Net Asset
Beginning Investment (Losses) Investment from Realized Value End
of Period Income (Loss) on Investments Income Capital Gains of Period
--------- ------------- -------------- ------ ------------- ---------
Short-Term U.S. Treasury
Securities Fund
Trust Shares
<S> <C> <C> <C> <C> <C> <C>
1999 $ 9.97 $ 0.47 $(0.02) $(0.47) $ -- $ 9.95
1998 9.88 0.51 0.10 (0.52) -- 9.97
1997 9.84 0.51 0.04 (0.51) -- 9.88
1996 9.93 0.55 (0.09) (0.55) -- 9.84
1995 9.82 0.47 0.11 (0.47) -- 9.93
Investor Shares
1999 $ 9.96 $ 0.46 $(0.01) $(0.46) $ -- $ 9.95
1998 9.88 0.49 0.09 (0.50) -- 9.96
1997 9.84 0.50 0.04 (0.50) -- 9.88
1996 9.94 0.54 (0.10) (0.54) -- 9.84
1995 9.83 0.46 0.11 (0.46) -- 9.94
Flex Shares
1999 $ 9.94 $ 0.44 $(0.02) $(0.43) $ -- $ 9.93
1998 9.85 0.47 0.10 (0.48) -- 9.94
1997 9.82 0.47 0.03 (0.47) -- 9.85
1996(1) 9.96 0.48 (0.14) (0.48) -- 9.82
U.S. Government Securities Fund
Trust Shares
1999 $10.46 $ 0.59 $(0.18) $(0.59) $ -- $10.28
1998 10.02 0.61 0.44 (0.61) -- 10.46
1997 9.91 0.62 0.11 (0.62) -- 10.02
1996 10.27 0.62 (0.33) (0.62) (0.03) 9.91
1995(2) 9.98 0.53 0.29 (0.53) -- 10.27
Investor Shares
1999 $10.45 $ 0.54 $(0.17) $(0.54) $ -- $10.28
1998 10.02 0.57 0.43 (0.57) -- 10.45
1997 9.90 0.58 0.12 (0.58) -- 10.02
1996 10.26 0.59 (0.33) (0.59) (0.03) 9.90
1995(3) 10.00 0.56 0.26 (0.56) -- 10.26
Flex Shares
1999 $10.46 $ 0.49 $(0.18) $(0.49) $ -- $10.28
1998 10.02 0.52 0.44 (0.52) -- 10.46
1997 9.91 0.53 0.11 (0.53) -- 10.02
1996(4) 10.31 0.52 (0.37) (0.52) (0.03) 9.91
Virginia Intermediate Municipal
Bond Fund (A)
Trust Shares
1999(5) $10.44 $ 0.21 $(0.17) $(0.21) $(0.07) $10.20
For years ended
November 30:
1998 10.31 0.45 0.17 (0.45) (0.04) 10.44
1997 10.22 0.46 0.09 (0.46) -- 10.31
1996 10.24 0.42 (0.02) (0.42) -- 10.22
1995 9.21 0.43 1.03 (0.43) -- 10.24
1994 10.33 0.44 (1.10) (0.44) (0.02) 9.21
Investor Shares
1999(5) $10.45 $ 0.22 $(0.18) $(0.22) $(0.07) $10.20
For years ended
November 30:
1998 10.31 0.46 0.17 (0.45) (0.04) 10.45
1997 10.21 0.47 0.09 (0.46) -- 10.31
1996 10.23 0.42 (0.02) (0.42) -- 10.21
1995 9.20 0.43 1.03 (0.43) -- 10.23
1994 10.32 0.44 (1.10) (0.44) (0.02) 9.20
Virginia Municipal Bond Fund (A)
Trust Shares
1999(5) $10.68 $ 0.22 $(0.19) $(0.22) $(0.06) $10.43
For years ended
November 30:
1998 10.44 0.47 0.27 (0.47) (0.03) 10.68
1997 10.28 0.48 0.17 (0.48) (0.01) 10.44
1996 10.40 0.47 (0.12) (0.47) -- 10.28
1995(6) 10.00 0.31 0.44 (0.31) (0.04) 10.40
Flex Shares
1999(5) $10.73 $ 0.17 $(0.18) $(0.18) $(0.06) $10.48
For years ended
November 30:
1998 10.48 0.37 0.28 (0.37) (0.03) 10.73
1997 10.31 0.39 0.18 (0.39) (0.01) 10.48
1996 10.43 0.38 (0.12) (0.38) -- 10.31
1995(7) 10.06 0.24 0.41 (0.24) (0.04) 10.43
</TABLE>
+ Returns are for the period indicated and have not been annualized. Total
return figures do not reflect applicable sales loads.
(1) Commenced operations on June 22, 1995. All ratios for the period have been
annualized.
(2) Commenced operations on July 31, 1994. All ratios for the period have been
annualized.
(3) Commenced operations on June 9, 1994. All ratios for the period have been
annualized.
(4) Commenced operations on June 7, 1995. All ratios for the period have been
annualized.
(5) For the six month period ended May 31, 1999. All ratios for the period have
been annualized.
(6) Commenced operations on April 5, 1995. All ratios for the period have been
annualized.
68
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Ratio of Expenses to
Net Assets Ratio of Net Investment Average Net Assets
Total End of Expenses to Income (Loss) to (Excluding Waivers
Return (+) Period (000) Average Net Assets Average Net Assets and Reimbursements)
---------- ------------ ------------------ ------------------ -------------------
Short-Term U.S. Treasury
Securities Fund
Trust Shares
<S> <C> <C> <C> <C> <C>
1999 4.59% $ 56,027 0.67% 4.69% 0.78%
1998 6.30 46,920 0.66 5.19 0.84
1997 5.76 21,988 0.65 5.23 0.92
1996 4.73 10,149 0.65 5.56 1.00
1995 6.11 9,599 0.65 4.91 1.08
Investor Shares
1999 4.54% $ 2,799 0.82% 4.54% 1.34%
1998 6.04 3,277 0.81 5.07 1.33
1997 5.59 3,921 0.80 5.05 1.35
1996 4.52 4,192 0.80 5.43 1.32
1995 6.03 7,144 0.80 4.74 1.33
Flex Shares
1999 4.32% $ 4,931 1.07% 4.22% 2.25%
1998 5.90 1,413 1.06 4.81 2.87
1997 5.19 1,091 1.05 4.75 2.51
1996(1) 3.72 2,423 1.05 5.03 2.97
U.S. Government Securities Fund
Trust Shares
1999 3.90% $ 102,167 0.77% 5.58% 0.88%
1998 10.76 34,899 0.76 5.93 0.92
1997 7.54 19,471 0.75 6.19 1.02
1996 2.77 10,277 0.75 6.05 1.25
1995(2) 8.64 3,291 0.75 6.67 3.33
Investor Shares
1999 3.56% $ 2,534 1.17% 5.17% 1.60%
1998 10.23 3,225 1.16 5.53 1.76
1997 7.21 2,243 1.15 5.76 1.79
1996 2.47 2,396 1.15 5.68 2.50
1995(3) 8.61 589 1.15 6.08 6.84
Flex Shares
1999 2.99% $ 11,520 1.68% 4.66% 2.08%
1998 9.78 4,022 1.67 5.02 2.32
1997 6.57 2,801 1.66 5.26 2.42
1996(4) 1.42 2,826 1.66 5.18 2.86
Virginia Intermediate Municipal
Bond Fund (A)
Trust Shares
1999(5) 0.42% $ 240,083 0.84% 4.12% 1.18%
For years ended
November 30:
1998 6.10 243,606 0.79 4.33 0.97
1997 5.55 237,096 0.78 4.57 0.93
1996 4.01 243,137 0.78 4.35 0.93
1995 16.09 43,373 0.72 4.34 0.94
1994 (6.53) 41,365 0.65 4.48 0.77
Investor Shares
1999(5) 0.35% $ 7,706 0.79% 4.17% 0.93%
For years ended
November 30:
1998 6.19 7,899 0.79 4.33 0.94
1997 5.65 7,826 0.79 4.56 0.94
1996 4.01 8,185 0.79 4.12 0.94
1995 16.10 8,649 0.73 4.33 0.95
1994 (6.56) 7,481 0.66 4.47 0.80
Virginia Municipal Bond Fund (A)
Trust Shares
1999(5) 0.27% $ 31,939 0.76% 4.20% 1.30%
For years ended
November 30:
1998 7.19 29,252 0.69 4.41 1.10
1997 6.46 20,044 0.69 4.65 1.09
1996 3.48 15,911 0.71 4.61 1.11
1995(6) 7.67 6,247 0.71 4.61 1.11
Flex Shares
1999(5) (0.16)% $ 6,939 1.65% 3.32% 1.91%
For years ended
November 30:
1998 6.24 3,697 1.64 3.46 1.92
1997 5.58 1,476 1.60 3.73 2.00
1996 2.58 787 1.57 3.73 1.97
1995(7) 6.51 628 1.57 3.76 1.97
</TABLE>
<TABLE>
<CAPTION>
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
(Excluding Waivers Turnover
and Reimbursements) Rate
------------------- ----
Short-Term U.S. Treasury
Securities Fund
Trust Shares
<S> <C> <C>
1999 4.58% 57%
1998 5.01 39
1997 4.96 93
1996 5.21 94
1995 4.48 88
Investor Shares
1999 4.02% 57%
1998 4.55 39
1997 4.50 93
1996 4.91 94
1995 4.21 88
Flex Shares
1999 3.04% 57%
1998 3.00 39
1997 3.29 93
1996(1) 3.11 94
U.S. Government Securities Fund
Trust Shares
1999 5.47% 19%
1998 5.77 14
1997 5.92 21
1996 5.55 83
1995(2) 4.09 30
Investor Shares
1999 4.74% 19%
1998 4.93 14
1997 5.12 21
1996 4.33 83
1995(3) 0.39 30
Flex Shares
1999 4.26% 19%
1998 4.37 14
1997 4.50 21
1996(4) 3.98 83
Virginia Intermediate Municipal
Bond Fund (A)
Trust Shares
1999(5) 3.78% 19%
For years ended
November 30:
1998 4.15 24
1997 4.42 30
1996 4.20 25
1995 4.12 28
1994 4.36 24
Investor Shares
1999(5) 4.03% 19%
For years ended
November 30:
1998 4.18 24
1997 4.41 30
1996 3.97 25
1995 4.11 28
1994 4.33 24
Virginia Municipal Bond Fund (A)
Trust Shares
1999(5) 3.66% 7%
For years ended
November 30:
1998 4.00 28
1997 4.25 39
1996 4.21 24
1995(6) 4.21 35
Flex Shares
1999(5) 3.06% 7%
For years ended
November 30:
1998 3.18 28
1997 3.33 39
1996 3.33 24
1995(7) 3.36 35
</TABLE>
(7) Commenced operations on April 17, 1995. All ratios for the period have been
annualized.
(A) On May 24, 1999, the Crestar Virginia Intermediate Municipal Bond and the
Crestar Virginia Municipal Bond Funds exchanged all of their assets and
certain liabilities for shares of the Virginia Intermediate Municipal Bond
and the Virginia Municipal Bond Funds, respectively. The Crestar Virginia
Intermediate Municipal Bond and the Crestar Virginia Municipal Bond Funds
are the accounting survivors in this transaction, and as a result, their
basis of accounting for assets and liabilities and their operating results
for the periods prior to May 24, 1999 have been carried forward in these
financial highlights.
The accompanying notes are an integral part of the financial statements
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
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 thirty-four portfolios as of May 31, 1999:
the Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund),
the Emerging Markets Equity Fund, the Growth and Income Fund, the International
Equity Fund, the International Equity Index Fund, the Life Vision Balanced
Portfolio, the Life Vision Growth and Income Portfolio, the Life Vision Maximum
Growth Portfolio, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small
Cap Growth Stock Fund, the Sunbelt Equity Fund, the Tax Sensitive Growth Stock
Fund, the Value Income Stock Fund, (collectively the "Equity Funds"), the
Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade
Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal
Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond
Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government
Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia
Municipal Bond Fund, (collectively the "Fixed Income Funds" or the "Funds"), the
Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the Tax-Free
Money Market Fund, the U.S. Government Securities, the U.S. Treasury Money
Market Fund (collectively the "Retail Money Market Funds"), the Classic
Institutional Cash Management Money Market Fund, the Classic Institutional U.S.
Government Securities Money Market Fund and the Classic Institutional U.S.
Treasury Securities Money Market Fund, (collectively the "Institutional Money
Market 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. The financial statements presented herein are those of the Fixed
Income Funds. The financial statements of the Equity Funds, the Retail Money
Market Funds and the Institutional Money Market Funds are not presented herein,
but are presented separately.
On February 17, 1999 and February 19, 1999, respectively, the Board of Trustees
of the STI Classic Funds Inc. and Board of Directors of the CrestFunds Inc.
("CrestFunds") approved an Agreement and Plan of Reorganization (the
"Reorganization Agreement") providing for the transfer of all assets and
liabilities of the CrestFunds in exchange for the issuance of shares in the
Funds in a tax-free reorganization (see Note 8).
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust:
Basis of Presentation of Statements -- As more fully described in Note 8,
the STI Classic Funds acquired certain Crestar Funds in a tax-free business
combination. While each Fund now exists as a STI Classic Fund, a number of
the surviving funds for accounting purposes are Crestar Funds. In
accordance with generally accepted accounting principles, the financial
statements presented herein represent those of accounting survivors.
Accordingly, the Statements of Operations, Statements of Changes in Net
Assets and Financial Highlights presented reflect periods beginning on the
first day of the accounting survivor's fiscal year.
Security Valuation -- Investment securities held by the Funds that are
listed on a securities exchange for which market quotations are available
are valued at the last quoted sales price 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. 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).
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 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 the event of default of the counterparty. If the coun-
70
<PAGE>
- --------------------------------------------------------------------------------
terparty 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 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 Florida Tax-Exempt
Bond, the Georgia Tax-Exempt Bond, the Investment Grade Bond, the
Investment Grade Tax-Exempt Bond, the U.S. Government Securities, and the
Virginia Intermediate Municipal Bond 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.
TBA Purchase Commitments -- The Funds may enter into "TBA" (To Be
Announced) purchase commitments to purchase securities for a fixed price at
a future date beyond customary settlement time. TBA purchase commitments
may be considered securities in themselves, and involve a risk of loss if
the value of the security to be purchased declines prior to settlement
date, which risk is in addition to the risk of decline in the value of the
funds' other assets. Unsettled TBA purchase commitments are valued at the
current market value of the underlying securities, generally according to
the procedures described under "Security Valuation."
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 for each of the Fixed Income Funds are
declared daily and paid monthly. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
Reclassification of Components of Net Assets -- The timing and
characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may
differ from generally accepted accounting principles. As a result, net
investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from
distributions during such period. These book/tax differences may be
temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to paid-in-capital or accumulated
net realized gain, as appropriate, in the period that the differences
arise. Accordingly, the following permanent differences, primarily
attributable to the classification of short-term capital gains and ordinary
income for tax purposes related to the other funds, has been reclassified
to/from the following accounts:
Accumulated Undistributed
Paid-In Realized Net Investment
Capital Gain (Loss) Income (Loss)
(000) (000) (000)
----- ----- -----
Florida Tax-Exempt Bond Fund .... $ -- $ 5 $ (5)
Investment Grade Bond Fund ...... 236 (349) 113
Investment Grade Tax-Exempt
Bond Fund ..................... -- (3) 3
Limited-Term Federal Mortgage
Securities Fund ............... -- 3 (3)
Maryland Municipal Bond Fund .... (3) -- 3
Short-Term Bond Fund ............ (25) 144 (119)
U.S. Government Securities Fund . (9) (2) 11
Virginia Intermediate Municipal
Bond Fund ..................... (20) -- 20
Virginia Municipal Bond Fund .... (3) -- 3
These reclassifications have no effect on net assets or net asset values
per share.
Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that effect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and reported amounts
of revenues and expenses during the reporting period. Actual amounts could
differ from these estimates.
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
3. Organization Costs and Transactions with Affiliates:
In April 1998, the AICPA issued Statement of Position (SOP) No. 98-5, "Reporting
on the Costs of Start-Up Activities." This SOP provides guidance on the
financial reporting of start-up costs and organization costs and requires costs
of start-up activities and organization costs to be expensed as incurred.
Investment companies that began operations prior to June 30, 1998 can adopt the
SOP prospectively. Therefore, previously capitalized organization costs will
continue to be amortized over a period of 60 months. Any future start-up or
organization costs will be expensed as incurred.
Certain officers of the Trust are also officers of the Administrator and/or SEI
Investments Distribution Co. (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, as amended November 19, 1997 and March 1, 1999, 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 Trust) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on
the next $3 billion, .065% on the next $2 billion and .06% for over $10 billion.
Prior to May 24, 1999, administrative and accounting services were provided to
the CrestFunds by SEI Investments Mutual Funds Services who was entitled to
receive a fee at an annual rate of .15% of the average daily net assets of the
CrestFunds. The Administrator had voluntarily agreed to waive a portion of its
fee for Government Bond Fund and Virginia Municipal Bond Fund in order to limit
operating expenses.
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 regarding the Flex Shares and a Distribution Agreement dated November
21, 1995 with respect to the Trust and Investor shares. 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 Distribution and Service Plan, as outlined in the table in
footnote 5 under the column titled "Distribution Fee".
Prior to May 24, 1999, the Distributor, a wholly owned subsidiary of SEI
Investments Co., served as distributor of each of the CrestFunds shares pursuant
to an agreement with the CrestFunds. The Trust Class and Investors Class A
shares of the CrestFunds had a separate distribution plan (the 12b-1 Plan)
pursuant to Rule 12b-1 under the 1940 Act. As provided in the 12b-1 Plan, the
Trust Class and Investors Class A shares of the CrestFunds paid the Distributor
as compensation for its services .15% of the aggregate average daily net assets
of such classes of the CrestFunds. The Distributor had voluntarily agreed to
waive any fees payable pursuant to the 12b-1 Plan. Additionally, the Investors
Class B Shares of the CrestFunds had a distribution plan (the B Shares Plan)
pursuant to Rule 12b-1 under the 1940 Act. As provided in the B Shares Plan, the
Investors Class B Shares of the CrestFunds paid the Distributor as compensation
for its services .75% of the aggregate average daily net assets of such class of
the CrestFunds. In addition, pursuant to the B Shares Plan, the Distributor was
compensated at an annual rate of .25% of the B shares' average net assets for
providing ongoing shareholder support services to investors in B shares. The
Distributor had agreed to waive the portion of its fees pursuant to the B Shares
Plan in order to limit distribution fees to .95% for each of the CrestFunds.
Prior to May 24, 1999, the CrestFunds had adopted a shareholder service plan
(the "Plan") for Trust Class Shares of the Limited Term Bond Fund, Intermediate
Bond Fund, Government Bond Fund, Maryland Municipal Bond Fund, Virginia
Intermediate Municipal Bond Fund and Virginia Municipal Bond Fund. Under the
Plan, the CrestFunds paid the Distributor a negotiated fee at a rate of up to
.25% annually of the average daily net assets of such Fund attributable to the
shares that are subject to the arrangement in return for provision of a broad
range of shareholder and administrative services. The Distributor had agreed to
waive a portion of its shareholder service plan for trust class shares in order
to limit shareholder service fees to .05%.
5. Investment Advisory and Custodian Agreements:
The Trust and STI Capital Management, N.A., ("STI Capital Management, N.A."),
Trusco Capital Management ("Trusco") and the SunTrust Bank, Atlanta have entered
into advisory agreements dated May 29, 1992, June 15, 1993, and December 20,
1993 respectively.
Under terms of the respective agreements, the Funds are charged the following
annual fees based upon average daily net assets:
72
<PAGE>
- --------------------------------------------------------------------------------
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:
Maryland
Municipal Bond
Fund .......... .65% .68% -- -- 1.00% 1.59%
Short-Term Bond
Fund .......... .65% .67% .23% .87% 1.00% 1.22%
Short-Term U.S.
Treasury
Securities
Fund .......... .65% .67% .18% .82% 1.00% 1.07%
U.S. Government
Securities
Fund .......... .74% .77% .38% 1.17% 1.00% 1.68%
Virginia
Intermediate
Municipal
Bond Fund ..... .65% .76% .15% .79% -- --
Virginia
Municipal
Bond Fund ..... .65% .74% -- -- 1.00% 1.65%
STI Capital Management, N.A.:
Florida
Tax-Exempt
Bond Fund ..... .65% .67% .18% .87% 1.00% 1.37%
Investment
Grade Bond
Fund .......... .74% .77% .43% 1.17% 1.00% 1.66%
Investment
Grade
Tax-Exempt
Bond Fund ..... .74% .77% .43% 1.17% 1.00% 1.65%
Limited-Term
Federal Mortgage
Securities
Fund .......... .65% .67% .23% .92% 1.00% 1.27%
SunTrust Bank, Atlanta:
Georgia
Tax-Exempt
Bond Fund ..... .65% .67% .18% .87% 1.00% 1.37%
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.
Prior to May 24, 1999 Crestar Asset Management Company ("CAMCO") provided
Investment Advisory services to the CrestFunds. CAMCO was paid for advisory
services at an annual rate of .50% of average daily net assets for the Limited
Term Bond Fund and Virginia Intermediate Municipal Bond Fund, and .60% of
average daily net assets for the Intermediate Bond Fund, Government Bond Fund,
Maryland Municipal Bond Fund and Virginia Municipal Bond Fund.
SunTrust Bank, Atlanta, formerly Trust Company Bank, acts as custodian for all
of the funds. Fees of the Custodian are paid on the basis of net assets of the
Funds. The Custodian plays 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, 1999, were as follows:
Purchases Sales
(000) (000)
----- -----
Florida Tax-Exempt Bond Fund ................. $109,044 $ 84,195
Georgia Tax-Exempt Bond Fund ................. 41,881 9,957
Investment Grade Bond Fund ................... 790,041 501,981
Investment Grade Tax-Exempt Bond Fund ........ 384,981 392,218
Limited-Term Federal Mortgage
Securities Fund ........................... -- --
Maryland Municipal Bond Fund ................. 4,476 3,679
Short-Term Bond Fund ......................... 78,478 58,853
Short-Term U.S. Treasury Securities Fund ..... -- --
U.S. Government Securities Fund .............. -- --
Virginia Intermediate Municipal Bond Fund .... 50,485 46,578
Virginia Municipal Bond Fund ................. 4,270 2,217
The cost of purchases and proceeds from sales of U.S. Government securities
were:
Purchases Sales
(000) (000)
----- -----
Florida Tax-Exempt Bond Fund ................ $ -- $ --
Georgia Tax-Exempt Bond Fund ................ -- --
Investment Grade Bond Fund .................. 1,453,066 1,342,296
Investment Grade Tax-Exempt Bond Fund ....... -- --
Limited-Term Federal Mortgage
Securities Fund ........................... 537,297 532,443
Maryland Municipal Bond Fund ................ -- --
Short-Term Bond Fund ........................ 81,928 74,867
Short-Term U.S. Treasury Securities Fund .... 38,693 29,515
U.S. Government Securities Fund ............. 25,478 9,512
Virginia Intermediate Municipal Bond Fund ... -- --
Virginia Municipal Bond Fund ................ -- --
The Investment Grade Bond, Limited-Term Federal Mortgage Securities, and U.S.
Government Securities Funds had cumulative wash sales for the fiscal year ended
May 31, 1999 amounting to $1,370,449, $109,760, and $169,083, respectively.
These wash sales cannot be used in the current year for federal income tax
purposes, therefore they are deferred.
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
At May 31, 1999, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes.The aggregate
gross unrealized appreciation anddepreciation for securities held by the funds
at May 31, 1999, were as follows:
Aggregate Aggregate Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation/
Appreciation Depreciation Depreciation
------------ ------------ ------------
Florida Tax-Exempt Bond Fund ..... $2,225 $ (936) $1,289
Georgia Tax-Exempt Bond Fund ..... 1,675 (652) 1,023
Investment Grade Bond Fund ....... 9,705 (16,585) (6,880)
Investment Grade Tax-Exempt
Bond Fund ...................... 957 (1,537) (580)
Limited-Term Federal Mortgage
Securities Fund ................ 357 (509) (152)
Maryland Municipal Bond Fund ..... 327 (72) (255)
Short-Term Bond Fund ............. 316 (1,779) (1,463)
Short-Term U.S. Treasury
Securities Fund ................ 111 (318) (207)
U.S. Government Securities Fund .. 618 (1,686) (1,068)
Virginia Intermediate Municipal
Bond Fund ..................... 6,524 (1,455) 5,069
Virginia Municipal Bond Fund ..... 615 (255) 360
Subsequent to October 31, 1998, the Funds recognized net capital losses for tax
purposes that have been deferred to 1999 and can be used to offset future
capital gains at May 31, 1999. The Funds also had capital loss carryforwards at
May 31, 1999 as follows:
<TABLE>
<CAPTION>
Post
Carryover Expires Expires Expires Expires Expires Expires 10/31
5/31/99 2002 2003 2004 2005 2006 2007 Deferred
(000) (000) (000) (000) (000) (000) (000) Loss (000)
----- ----- ----- ----- ----- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment
Grade Bond
Fund ......... $3,029 $ -- $ -- $ -- $ -- $3,029 $ -- $ 635
Limited-Term
Federal Mortgage
Securities
Fund.......... -- -- -- -- -- -- -- 1,194
Maryland
Municipal
Bond
Fund ......... 19 -- -- -- -- -- 19 --
Short-Term
Bond
Fund.......... 2,755 528 254 555 284 1,134 -- --
U.S.
Government
Securities
Fund.......... 792 -- -- -- -- 792 -- --
</TABLE>
For tax purposes, the losses in the Funds can be carried forward for a maximum
of eight years to offset any net realized capital gains.
7. Concentration of Credit Risk:
The Investment Grade Bond Fund and the Short-Term Bond 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 investment advisor to
be of comparable quality. The Investment Grade Tax-Exempt Fund invests primarily
in investment grade municipal securities. Municipal 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, the Maryland Municipal Bond Fund, the Virginia Intermediate Municipal Bond
Fund, and the Virginia Municipal 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.
8. CrestFunds Merger
The Board of Directors and shareholders of the CrestFunds approved a
reorganization of the CrestFunds into STI Classic Funds which took place at the
close of business on May 17, 1999 (May 24, 1999 for Maryland Municipal Bond
Fund, Virginia Intermediate Municipal Bond Fund, and Virginia Municipal Bond
Fund).
74
<PAGE>
- --------------------------------------------------------------------------------
The following table summarizes certain relevant information of the Funds prior
to and immediately after the business combinations on May 17, 1999 and May 24,
1999 and is unaudited:
<TABLE>
<CAPTION>
Outstanding Unrealized
on Merger Appreciation
CrestFunds Date (Depreciation)
- ---------- ----------- --------------
<S> <C> <C>
Intermediate Bond
Trust Shares ............................ $32,817,534 $(3,403,150)
Investor Class A ........................ 248,950 (67,865)
Investor Class B ........................ -- --
Limited Term Bond
Trust Shares ............................ 7,494,047 31,650
Investor Class A ........................ -- --
Investor Class B ........................ -- --
Government Bond
Trust Shares ............................ 5,608,897 (698,071)
Investor Class A ........................ -- --
Investor Class B ........................ 315,993 61,930
Maryland Municipal Bond (1)
Trust Shares ............................ 2,941,190 305,068
Investor Class B ........................ 764,740 (31,446)
Virginia Intermediate Municipal Bond (1)
Trust Shares ............................ 23,538,137 5,880,351
Investor Class A ........................ 753,539 76,972
Virginia Municipal Bond (1)
Trust Shares ............................ 3,019,996 511,586
Investor Class B ........................ 647,089 (13,152)
</TABLE>
<TABLE>
<CAPTION>
Shares Issued Net Assets NAV
in Business after Per
STI Classic Fund Combination Combination Share
- ---------------- ------------- ----------- -----
<S> <C> <C> <C>
Investment Grade Bond (1)
Trust Shares .......................... $30,232,924 $1,152,435,532 $10.40
Investor Shares ....................... 229,458 35,442,645 10.40
Flex Shares ........................... -- 25,684,095 10.41
Short-Term Bond (1)
Trust Shares .......................... 7,307,720 209,577,527 9.96
Investor Shares ....................... -- 1,817,569 9.97
Flex Shares ........................... -- 2,447,180 9.98
U.S. Government Securities (1)
Trust Shares .......................... 5,438,788 101,799,419 10.32
Investor Shares ....................... -- 2,563,370 10.31
Flex Shares ........................... 307,517 11,288,553 10.32
Maryland Municipal Bond
Trust Shares .......................... 2,941,190 29,603,005 10.06
Flex Shares ........................... 764,740 7,712,932 10.09
Virginia Intermediate Municipal Bond
Trust Shares .......................... 23,538,137 240,886,726 10.23
Investor Shares ....................... 753,539 7,715,363 10.24
Virginia Municipal Bond
Trust Shares .......................... 3,019,996 31,617,660 10.47
Flex Shares ........................... 647,089 6,805,221 10.52
</TABLE>
(1) Represents the accounting survivor in this business combination.
75
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999
To the Shareholders and Board of Trustees of
STI Classic Funds:
We have audited the accompanying statements of net assets of the Florida
Tax-Exempt Bond, Georgia Tax-Exempt Bond, Investment Grade Bond, Limited-Term
Federal Mortgage Securities, Maryland Municipal Bond, Short-Term Bond,
Short-Term U.S. Treasury Securities, U.S. Government Securities, Virginia
Intermediate Municipal Bond, and Virginia Municipal Bond Funds and the statement
of assets and liabilities, including the schedule of investments, of the
Investment Grade Tax-Exempt Bond Fund of STI Classic Funds (the "Trust") as of
May 31, 1999, and the related statements of operations, changes in net assets,
and financial highlights for the periods presented, excluding the periods
indicated below. 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. The statements of operations for the year ended November 30, 1998,
statements of changes for the years ended November 30, 1998 and November 30,
1997, and financial highlights for the periods prior to May 31, 1999, for the
Maryland Municipal Bond, Virginia Intermediate Municipal Bond, and Virginia
Municipal Bond Funds were audited by other auditors whose report dated January
15, 1999, expressed an unqualified opinion on this information.
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 and financial highlights. Our procedures included confirmation of
securities owned as of May 31, 1999, by correspondence with the custodian and
the application of alternative auditing procedures with respect to unsettled
securities transactions. 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 audited by us
present fairly, in all material respects, the financial position of the Florida
Tax-Exempt Bond, Georgia Tax-Exempt Bond, Investment Grade Bond, Investment
Grade Tax-Exempt Bond, Limited-Term Federal Mortgage Securities, Maryland
Municipal Bond, Short-Term Bond, Short-Term U.S. Treasury Securities, U.S.
Government Securities, Virginia Intermediate Municipal Bond, and Virginia
Municipal Bond Funds, of STI Classic Funds as of May 31, 1999, the results of
their operations, changes in their net assets, and financial highlights for each
of the periods described in the first paragraph above, in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
July 23, 1999
76
<PAGE>
NOTICE TO SHAREHOLDERS
- --------------------------------------------------------------------------------
STI CLASSIC FIXED INCOME FUNDS May 31, 1999 Unaudited
For shareholders that do not have a May 31, 1999 tax year end, this notice is
for informational purposes only. For shareholders with a May 31, 1999 tax year
end, please consult your tax advisor as to the pertinence of this notice. For
the fiscal year ended May 31, 1999, each portfolio is designating the following
items with regard to distributions paid during the year:
<TABLE>
<CAPTION>
Long Term
(20% Rate) Ordinary
Capital Gains Income Tax-Exempt Total
Fund Distributions Distributions Distributions Distributions
- -------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Florida Tax-Exempt Bond 5.35% 15.18% 79.47% 100.00%
Georgia Tax-Exempt Bond 4.38% 1.65% 93.97% 100.00%
Investment Grade Bond 10.88% 89.12% 0.00% 100.00%
Investment Grade Tax-Exempt Bond 5.16% 43.80% 51.04% 100.00%
Limited-Term Federal Mortgage Securities 1.66% 98.34% 0.00% 100.00%
Maryland Municipal Bond 5.68% 1.72% 92.60% 100.00%
Short-Term Bond 3.62% 96.38% 0.00% 100.00%
Short-Term U.S. Treasury Securities 0.00% 100.00% 0.00% 100.00%
U.S. Government Securities 0.00% 100.00% 0.00% 100.00%
Virginia Intermediate Municipal Bond 23.68% 2.07% 74.25% 100.00%
Virginia Municipal Bond 16.21% 4.17% 79.62% 100.00%
</TABLE>
77
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
INVESTMENT ADVISORS
STI Capital Management, N.A.
Trusco Capital Management, Inc.
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 Investments Distribution Co.
This information must be preceded or accompanied by
a current prospectus for each Fund described.
