SEMI-ANNUAL
- --------------------------------------------------------------------------------
FINANCIAL REPORT
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS
- --------------------------------------------------------------------------------
A Family of Mutual Funds
- --------------------------------------------------------------------------------
Prime Quality Money Market Fund
Tax-Exempt Money Market Fund
U.S. Government Securities Money Market Fund
November 30, 1998
STI Classic Funds
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998 Unaudited
Prime Quality Money Market Fund
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Commercial Paper (25.5%)
Finance (20.4%)
Banc One Funding
5.230%, 12/07/98 $ 1,871 $ 1,869
5.230%, 01/21/99 5,065 5,028
5.130%, 01/28/99 50,000 49,587
5.280%, 01/28/99 25,000 24,787
Barclays U.S. Funding
5.180%, 01/07/99 25,000 24,867
Chrysler Financial
5.240%, 02/11/99 40,000 39,581
Dresdner U.S. Finance
5.190%, 01/08/99 40,000 39,781
GMAC
5.240%, 02/11/99 41,500 41,065
General Electric Capital
5.250%, 12/09/98 4,900 4,894
J.P. Morgan
5.200%, 01/14/99 1,000 994
5.150%, 01/14/99 2,000 1,987
5.250%, 01/19/99 5,500 5,461
Marsh & Mclennen
5.290%, 02/24/99 25,000 24,688
5.230%, 02/25/99 50,000 49,375
Morgan Stanley Dean Witter
5.200%, 01/21/99 50,000 49,632
Panasonic Finance
5.380%, 01/21/99 59,500 59,047
Republic New York
5.190%, 01/15/99 50,000 49,676
RTZ America Finance
5.120%, 12/21/98 29,000 28,918
----------
501,237
----------
Industrial (4.5%)
Allied Signal
5.550%, 01/21/99 47,000 46,630
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Industrial--continued
RTZ America
5.130%, 12/10/98 $ 2,000 $ 1,997
5.250%, 01/04/99 5,000 4,975
5.350%, 01/22/99 20,000 19,845
Sony Capital
5.350%, 12/09/98 23,697 23,669
Wal-Mart Stores
5.400%, 12/01/98 12,000 12,000
----------
109,116
----------
Utilities (0.6%)
British Petroleum America
5.400%, 12/01/98 522 522
Duke Energy
5.400%, 12/01/98 14,775 14,775
----------
15,297
----------
Total Commercial Paper
(Cost $625,650) 625,650
----------
Corporate Obligations (18.6%)
Finance (17.2%)
Associates Corporation of
North America (C)
4.940%, 01/04/99 20,000 19,999
4.850%, 04/23/99 20,000 19,993
7.250%, 09/01/99 350 355
Associates MTN
6.750%, 06/28/99 5,500 5,542
Bankamerica Corporation, MTN
7.230%, 05/02/99 1,500 1,513
Bankers Trust, New York (B) (C)
5.234%, 02/10/99 25,000 24,999
5.379%, 02/19/99 25,000 24,999
Beneficial, MTN (A)
5.758%, 08/27/99 3,000 3,002
Caterpillar Financial Service, MTN
6.040%, 03/01/99 3,300 3,302
1
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Prime Quality Money Market Fund--continued
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Finance--continued
Caterpillar Financial Service,
MTN (C)
5.160%, 05/09/99 $ 45,000 $ 45,000
Chrysler Financial, MTN
5.860%, 02/22/99 5,000 5,005
6.160%, 07/28/99 1,000 1,004
Chrysler Financial (C)
12.750%, 11/01/99 1,000 1,067
Credit Suisse First Boston
International (A)
5.360%, 10/14/99 25,000 25,000
Dean Witter Discover
5.030%, 03/02/99 15,000 14,978
Ford Motor Credit, MTN (C)
8.000%, 01/15/99 8,000 8,025
General Electric Capital, MTN
15.000%, 01/21/99 6,500 6,585
General Motors Acceptance
8.625%, 06/15/99 480 488
General Motors Acceptance, MTN
6.000%, 12/30/98 1,575 1,575
Household Finance, MTN (A)
4.780%, 03/15/99 7,000 6,982
7.280%, 07/22/99 2,500 2,532
Household International, MTN (A)
5.268%, 10/22/99 15,000 15,010
IBM Credit, MTN (A)
5.450%, 09/15/99 40,000 40,000
Morgan Stanley Dean Witter,
MTN (A)
5.000%, 01/22/99 20,000 19,997
Morgan Stanley Dean Witter,
MTN (A)
5.908%, 03/01/99 2,000 2,001
Morgan Stanley Group, MTN (C)
5.508%, 12/28/98 1,500 1,500
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Finance--continued
Morgan Stanley Group, MTN
6.125%, 01/05/99 $ 1,000 $ 1,000
Nationsbank, MTN (A)
4.910%, 08/05/99 28,000 28,023
5.190%, 08/06/99 13,000 13,013
Transamerica, MTN (A)
5.427%, 02/18/99 2,500 2,500
5.450%, 10/22/99 76,500 76,500
----------
421,489
----------
Industrial (1.1%)
Allied Signal
9.120%, 03/08/99 3,500 3,534
General Mills
8.950%, 12/15/98 2,655 2,659
Philip Morris
8.625%, 03/01/99 10,191 10,270
7.750%, 05/01/99 2,000 2,014
Pitney Bowes, MTN
6.540%, 07/15/99 2,025 2,041
Texaco Capital
6.875%, 07/15/99 1,000 1,010
Walt Disney
15.000%, 12/14/98 6,300 6,321
----------
27,849
----------
Utilities (0.3%)
Duke Energy
8.000%, 11/01/99 5,330 5,465
Northern States Power
5.500%, 02/01/99 200 200
NYNEX Capital Funding, MTN
7.640%, 07/19/99 2,000 2,029
----------
7,694
----------
Total Corporate Obligations
(Cost $457,032) 457,032
----------
2
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Asset-Backed Securities (9.6%)
Americredit Auto Recievables
Trust, Ser 1998-B, Cl A1
5.629%, 06/12/99 $ 10,629 $ 10,629
Americredit Auto Receivables
Trust, Ser 1998-C, Cl A1
5.638%, 09/12/99 11,545 11,545
Americredit Auto Recievables
Trust, Ser 1998-B, Cl A1
5.199%, 11/12/99 27,000 27,000
Arcadia Auto Receivables
Trust, Ser 1998-C, Cl A1
5.470%, 02/16/99 18,632 18,632
Arcadia Auto Receivables
Trust, Ser 1998-B, Cl A1
5.628%, 07/15/99 5,624 5,624
Arcadia Auto Receivables Trust,
Ser 1998-D, Cl A1
5.482%, 12/15/99 13,000 13,000
Case Equipment Loan Trust,
Ser 1998-C, Cl A1
5.420%, 12/15/99 40,000 40,000
Chase Manhattan Auto Owner
Trust, Ser 1999-B, Cl A1
5.578%, 05/10/99 3,111 3,111
Compass Auto Receivables Trust,
Ser 1998-A, Cl A1
5.659%, 07/15/99 5,276 5,276
First Security Auto Owner Trust,
Ser 1998-1, Cl A1
5.248%, 11/15/99 27,346 27,346
Household Automobile Revolving
Trust, Ser 1998-1, Cl A1
5.330%, 12/17/99 62,000 62,000
Union Acceptance,
Ser 1998-C, Cl A1
5.527%, 10/08/99 11,236 11,236
----------
Total Asset-Backed Securities
(Cost $235,399) 235,399
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Bank Notes (16.7%)
American Express Centurion (C)
5.169%, 03/24/99 $ 45,000 $ 45,000
American Express Centurion (A)
5.223%, 08/09/99 5,000 5,000
FCC National Bank (C)
5.120%, 04/09/99 50,000 49,993
First National Bank, Chicago (C)
5.110%, 04/19/99 62,000 61,989
First USA Bank Bank Notes
5.750%, 01/15/99 6,000 6,002
Key Bank N.A. (A)
5.160%, 05/05/99 61,000 60,989
National Westminister Bank,
New York
5.820%, 05/06/99 59,000 58,986
Northern Trust (C)
5.120%, 04/09/99 70,000 69,990
Swiss Bank, New York
5.650%, 03/24/99 20,000 19,995
5.810%, 04/29/99 30,000 29,993
Wachovia Bank N.A.
5.600%, 03/08/99 3,500 3,499
----------
Total Bank Notes
(Cost $411,436) 411,436
----------
Certificates of Deposit (15.1%)
Barclays Bank
5.800%, 04/29/99 50,000 49,988
Bayerische Landesbank (C)
5.108%, 04/21/99 62,000 61,988
Commerzbank (C)
5.125%, 04/14/99 25,000 24,996
5.130%, 04/14/99 40,000 39,994
Deutsche Bank (C)
5.120%, 04/14/99 50,000 49,991
Deutsche Bank AG, New York
5.640%, 03/23/99 18,000 17,995
PNC Bank N.A. (A)
5.116%, 08/03/99 15,000 14,993
3
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Prime Quality Money Market Fund--concluded
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Certificates of Deposit--continued
Rabobank
5.750%, 04/27/99 $ 50,000 $ 49,990
Societe Generale, New York
5.580%, 02/10/99 25,000 24,999
5.800%, 04/01/99 35,000 34,996
----------
Total Certificates of Deposit
(Cost $369,930) 369,930
----------
U.S. Government Agency Obligations (4.0%)
FFCB, MTN (C)
4.540%, 03/02/99 40,000 39,995
FNMA (C)
0.000%, 02/18/99 6,020 5,949
SLMA, Callable 01/05/99 @ 100 (C)
4.770%, 02/08/99 5,000 4,999
SLMA (C)
5.000%, 04/01/99 45,000 44,994
SLMA, Ser 1996-4, Cl A1 (C)
5.040%, 12/02/99 1,079 1,072
SLMA, Ser 1996-3, Cl A1 (C)
4.488%, 12/02/99 2,939 2,920
----------
Total U.S. Government Agency Obligations
(Cost $99,929) 99,929
----------
Repurchase Agreements (12.7%)
Barclays
5.390%, dated 11/30/98, matures
12/01/98, repurchase price
$22,153,441 (collateralized by
FHLMC and FNMA obligations:
total market value $22,595,982) (B) 22,150 22,150
Deutsche Bank
5.390%, dated 11/30/98, matures
12/01/98, repurchase price
$182,034,337 (collateralized
by a FNMA obligation: market
value $185,648,500) (B) 182,008 182,008
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Repurchase Agreements--continued
Greenwich
5.390%, dated 11/30/98, matures
12/01/98, repurchase price
$53,076,384 (collateralized
by a FNMA obligation: market
value $54,131,531) (B) $ 53,068 $ 53,068
Morgan Stanley
5.390%, dated 11/30/98, matures
12/01/98, repurchase price
$36,007,865 (collateralized
by various FHLMC and
FNMA obligations: total
market value $37,357,716) (B) 36,003 36,003
Salomon Brothers
5.390%, dated 11/30/98, matures
12/01/98, repurchase price
$20,007,120 (collateralized
by various FHLMC and FNMA
obligations: total market
value $20,533,101) (B) 20,004 20,004
----------
Total Repurchase Agreements
(Cost $313,233) 313,233
----------
Total Investments (102.2%)
(Cost $2,512,609) 2,512,609
----------
Other Assets and Liabilities, Net (-2.2%) (54,312)
----------
4
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Value (000)
- -----------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
1,913,468,156 outstanding shares of
beneficial interest $1,913,468
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
545,215,859 outstanding shares of
beneficial interest 545,215
Overdistributed net investment income (4)
Accumulated net realized loss
on investments (382)
----------
Total Net Assets 100.0% $2,458,297
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 1.00
==========
Net Asset Value, Offering and
Redemption Price Per Share --
Investor Shares $ 1.00
==========
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 20.
5
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Municipal Bonds (98.7%)
Alabama (2.5%)
Birmingham-Carraway, Alabama
Special Care Facilities Financing
Authority, Carraway Methodist
Health, Ser A, RB, VRDN (B) (C)
3.150%, 12/02/98 $ 6,000 $ 6,000
Special Care Facilities, Montgomery
Hospital, RB, VRDN
(FGIC) (C) (D)
3.150%, 12/02/98 1,160 1,160
University of Alabama,
Birmingham Hospital,
Ser A, RB, VRDN (C)
3.100%, 12/02/98 13,220 13,220
----------
20,380
----------
Arizona (2.3%)
City of Mesa, TECP (B)
3.300%, 10/06/99 5,000 5,000
Maricopa County, Pollution
Control Authority, Arizona
Public Services Corporation,
VRDN (C) (D) (E)
3.250%, 12/01/98 9,250 9,250
Phoenix, Series 95-2, GO, VRDN (C)
3.300%, 12/01/98 2,100 2,100
State, Educational Loan Marketing,
Ser A, RB, VRDN, AMT (B) (C)
3.200%, 12/02/98 2,500 2,500
----------
18,850
----------
Arkansas (0.1%)
State, Development Financial
Authority, Potlatch Projects,
Ser A, RB, VRDN,
AMT (C) (D) (E)
3.200%, 12/02/98 1,000 1,000
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
California (0.6%)
State, Higher Educational Loan
Authority, Student Loan
Revenue, Ser D-2, RB (B)
3.650%, 01/02/99 $ 5,000 $ 5,000
----------
Colorado (1.1%)
Cherry Creek, South Metropolitian
District Number 1, GO,
VRDN (B) (C)
3.100%, 12/03/98 1,500 1,500
Lowry Economic, Redevelopment
Authority, Ser B, RB,
VRDN (B) (C)
3.150%, 12/02/98 2,000 2,000
Smith Creek, Metropolitan
District, RB, VRDN (B) (C)
3.150%, 12/03/98 5,300 5,300
----------
8,800
----------
Delaware (0.9%)
State, Economic Development
Authority, Industrial
Development, Delaware Clean
Power Project, Ser A, RB,
VRDN, AMT (C) (D) (E)
3.250%, 12/02/98 5,000 5,000
State, Educational Development
Authority, VRDN (C) (D) (E)
3.475%, 12/03/98 1,875 1,875
----------
6,875
----------
District of Columbia (0.1%)
Metropolitan Airports Authority,
Ser B, RB, AMT
4.000%, 10/01/99 1,000 1,006
----------
6
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Florida (4.0%)
Citrus Park, Community
Development, RB,
VRDN (C) (D) (E)
3.150%, 12/02/98 $ 1,500 $ 1,500
Dade County, Power &
Light Project, VRDN (C) (D) (E)
3.250%, 12/01/98 4,035 4,035
Dade County, Water & Sewer
System, Ser 1994, RB,
VRDN (FGIC) (C) (D)
3.000%, 12/02/98 10,000 10,000
State, Local Government,
Pooled Loan, TECP (B)
3.050%, 03/09/99 4,810 4,810
Hillsborough County, Industrial
Development Authority,
Pollution Control Revenue,
Tampa Electric Project, RB,
VRDN, AMT (C)
3.500%, 12/01/98 1,100 1,100
Miami, Health Facility Authority,
Mercy Hospital, RB,
VRDN (B) (C)
3.000%, 12/02/98 4,000 4,000
Palm Beach County, VRDN (B) (C)
3.250%, 12/03/98 1,000 1,000
University of North Florida
Foundation, Parking System,
RB, VRDN, (B) (C)
3.150%, 12/03/98 6,000 6,000
----------
32,445
----------
Georgia (10.9%)
Burke County, Development
Authority, TECP
3.200%, 02/10/99 2,000 2,000
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Georgia--continued
Burke County, Development
Authority, Pollution Control
Revenue, Georgia Power
Pollution Vogtle-1st, RB,
VRDN (C)
3.250%, 12/01/98 $ 9,400 $ 9,400
Conyers-Rockdale-Big Haynes,
Impoundment Authority
Revenue, VRDN (C)
3.150%, 12/02/98 3,000 3,000
Fulton County, Industrial
Development Authority,
American Red Cross Project,
RB, VRDN (C) (D) (E)
3.150%, 12/03/98 1,200 1,200
Gordon County, Developement
Authority, Sara Lee Corporation,
VRDN (C) (D)
3.200%, 12/03/98 1,400 1,400
Gwinnett County, School District,
Construction Sales Tax, TRAN
4.000%, 12/31/98 9,880 9,886
Lafayette, Industrial Development
Authority, Blue-Bird Project,
Ser 1991, VRDN (C) (D) (E)
3.150%, 12/03/98 1,000 1,000
Metropolitan Atlanta, Rapid
Transit Authority, Georgia
Sales Tax Revenue, VRDN (C)
3.300%, 12/03/98 10,000 10,000
Monroe County, Development
Authority, Pollution Control,
RB, VRDN (C)
3.250%, 12/01/98 6,000 6,000
Monroe County, Industrial
Development Authority, Forsyth
Inns Project, VRDN (C) (D) (E)
3.300%, 12/02/98 2,425 2,425
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund--continued
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Georgia--continued
State, Municipal Electric
Authority, TECP
3.050%, 02/09/99 $ 4,500 $ 4,500
Municipal Electric Authority,
VRDN (MBIA) (C)
3.300%, 12/03/98 4,675 4,675
Putnam County, Georgia
Development Authority,
Pollution Control Revenue,
FirstSer, RB, VRDN (C)
3.250%, 12/01/98 10,000 10,000
State, Municipal Electric
Authority, RB, VRDN (C) (D) (E)
3.100%, 12/02/98 4,000 4,000
State, Municipal Electric
Authority, RB, VRDN
(FGIC) (C) (D)
3.500%, 12/03/98 14,610 14,610
State, Residential Financial
Authority, Home Ownership
Mortgage, FHA Insured Loans,
Ser C, RB, VRDN, AMT (C) (D)
3.800%, 12/01/98 1,615 1,615
Summerville, Development
Authority, Ser 1997, RB,
VRDN, AMT (C) (E)
3.300%, 01/14/99 2,000 2,000
----------
87,711
----------
Hawaii (1.4%)
State, GO, VRDN (C)
3.300%, 12/02/98 7,000 7,000
State, GO, VRDN (MBIA) (C)
3.300%, 12/02/98 4,260 4,260
----------
11,260
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Idaho (0.9%)
Nez Pierce County, Pollution
Control, Potlatch Project, RB,
VRDN (C) (D) (E)
3.150%, 12/02/98 $ 2,000 $ 2,000
3.150%, 12/03/98 1,000 1,000
State, TRAN
4.500%, 06/30/99 4,000 4,020
----------
7,020
----------
Illinois (6.8%)
Bloomington, Airport Authority,
GO, VRDN (C) (D) (E)
3.200%, 12/02/98 1,400 1,400
Chicago, O'Hare International
Airport (AMBAC) (D)
3.800%, 05/06/99 8,890 8,890
Chicago, Single Family Mortage,
RB VRDN, AMT (B) (C)
3.100%, 09/01/29 5,595 5,595
Health Facilities Authority,
Northwestern Memorial
Hospital Project, VRDN (C) (E)
3.350%, 12/01/98 5,300 5,300
Savanna, Industrial Development
Authority, Metform Project,
Ser A, RB, VRDN (C) (D) (E)
3.250%, 12/02/98 500 500
Savanna, Industrial Development
Authority, Metform Project,
Ser B, RB, VRDN (C) (D) (E)
3.250%, 12/02/98 1,400 1,400
State, Development Financial
Authority, Chicago Symphony,
RB, VRDN (C) (D) (E)
3.100%, 12/02/98 5,000 5,000
State, Development Financial
Authority, Derby Project, RB,
VRDN, AMT (C) (D) (E)
3.300%, 12/02/98 900 900
8
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Illinois--continued
State, Development Financial
Authority, Pollution Control,
Illinois Power, Ser A, RB,
VRDN (C) (E)
3.150%, 12/02/98 $ 5,000 $ 5,000
State, Educational Facilities
Authority, Chicago Childrens
Museum, RB, VRDN (C) (D) (E)
3.150%, 12/02/98 1,600 1,600
State, Educational Facilities
Authority, Museum of Science
and Industry, RB, VRDN (C) (E)
3.150%, 12/03/98 5,600 5,600
State, Health Facilities Authority,
Advocate Health Care, Ser B,
RB, VRDN (C) (D)
3.150%, 12/02/98 2,900 2,900
State, Health Facilities Authority,
RB, VRDN (C)
3.300%, 12/03/98 3,000 3,000
State, Health Facilities Authority,
Streeterville Corporation, RB,
VRDN (C) (D) (E)
3.150%, 12/02/98 2,000 2,000
State, Health Facilities Authority,
Streeterville Corporation,
Ser A, RB, VRDN (C) (E)
3.150%, 12/02/98 1,500 1,500
State, Health Facilities Authority,
University of Chicago Hospital
Project, Ser C, RB, VRDN
(MBIA) (C) (D)
3.150%, 12/02/98 4,000 4,000
----------
54,585
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Indiana (4.0%)
Allen County, Industrial Economic
Development Authority,
Mattel Power Wheels Project,
RB, VRDN, AMT (C) (D)
3.500%, 12/02/98 $ 1,500 $ 1,500
Elkhart, Economic Development
Revenue, Godfrey Conveyor,
RB, VRDN, AMT (B) (C)
3.300%, 12/02/98 2,000 2,000
Fort Wayne, Economic
Development Authority,
ND Tech Project, RB, VRDN,
AMT (B) (C) (D) (E)
3.250%, 12/02/98 1,000 1,000
Indianapolis, Industrial Economic
Development Authority,
Allied Signal, RB, VRDN
(B) (C) (D)
3.300%, 12/02/98 3,500 3,500
Indianapolis, Multi-Family
Housing, RB, VRDN,
AMT (C) (D) (E)
3.350%, 12/02/98 6,200 6,200
La Porte County, Economic
Development Revenue, Pedcor
Investments-Woodland,
RB, VRDN, AMT (B) (C)
3.250%, 12/03/98 2,000 2,000
Michigan City, Industrial
Economic Development,
Performance Packaging, RB,
VRDN, AMT (B) (C) (D) (E)
3.300%, 12/02/98 800 800
Princeton, Pollution Control,
PSI Energy Project, RB,
VRDN (C) (E)
3.300%, 12/01/98 8,800 8,800
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund--continued
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Indiana--continued
Rockport County, Pollution
Control, Aep Generating
Company Project, Ser B, RB,
VRDN (AMBAC) (C) (D)
3.350%, 12/01/98 $ 700 $ 700
State, Development Financial
Authority, Culver Educational
Facilities, RB, VRDN (C) (E)
3.150%, 12/02/98 2,000 2,000
State, Development Financial
Authority, Dekko International
Project, RB, VRDN (C) (D) (E)
3.300%, 12/03/98 610 610
State, Development Financial
Authority, Educational Facility,
Indiana Historical Society,
RB, VRDN (C) (E)
3.150%, 12/02/98 1,200 1,200
State, Health Facility Financing
Authority, Clarian Health
Partners, Ser B, RB,
VRDN (C) (D)
3.100%, 12/02/98 2,000 2,000
----------
32,310
----------
Iowa (0.4%)
Davenport, Ser C, GO
4.375%, 06/01/99 465 466
West Des Moines, Commercial
Development, Greyhound
Lines Project, VRDN (C) (D) (E)
3.100%, 12/02/98 2,500 2,500
----------
2,966
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Kentucky (1.6%)
Jefferson County, Industrial
Building, Fisher-Klosterman
Project, RB, VRDN,
AMT (C) (D) (E)
3.300%, 12/03/98 $ 2,255 $ 2,255
Pulaski County, Solid Waste
Disposal, National Rural
Utility-East, RB, VRDN,
AMT (C)
3.600%, 02/15/99 5,000 5,000
State, Asset/Liability
Commission, General
Fund Revenue, TRAN
3.500%, 11/01/99 4,000 4,020
State, Economic Development,
Hospital Facilities, RB,
VRDN (C) (D) (E)
3.100%, 12/03/98 1,400 1,400
----------
12,675
----------
Louisiana (2.8%)
Parish of Saint Charles, Pollution
Control Board, Shell Oil
Company Project, Ser B,
VRDN (C)
3.300%, 12/01/98 5,000 5,000
Plaqeumines, Port Facilities,
International Marine Terminal
Project, RB, VRDN (C) (D) (E)
3.750%, 03/15/99 1,000 1,000
Saint Charles Parish, Louisiana
Pollution Control Revenue,
Shell Oil Norco Project,
RB, VRDN, AMT (C)
3.450%, 12/01/98 1,200 1,200
10
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Louisiana--continued
Saint James Parish, Pollution
Control Revenue, TECP
3.300%, 12/29/98 $ 10,000 $ 10,000
State, Offshore Terminal
Authority, Deepwater Port,
First Stage A-Loop Project,
Ser A, RB, VRDN (C) (D) (E)
3.100%, 12/02/98 2,000 2,000
State, Public Facilites Authority,
Pollution Control Revenue,
Ciba-Geigy Project, RB,
VRDN (B) (C)
3.100%, 12/02/98 2,400 2,400
State, Public Facilities Authority,
Ser B, GO
6.100%, 03/01/99 1,000 1,007
----------
22,607
----------
Maryland (1.3%)
Baltimore County,
Allied Signal Project,
VRDN (C) (D) (E)
3.250%, 12/02/98 1,000 1,000
State, Health & Higher Education
Authority, Pooled Loan Program,
Ser B, VRDN (C) (D) (E)
3.150%, 12/02/98 5,000 5,000
University of Maryland, Revolving
Equipment Loan Program,
Ser B, RB, VRDN (C) (E)
3.150%, 12/02/98 4,100 4,100
----------
10,100
----------
Michigan (2.3%)
Delta County, Environmental
Improvement Revenue,
Escanaba Paper Project, RB,
VRDN, AMT (C) (E)
3.150%, 12/01/98 1,400 1,400
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Michigan--continued
Oakland County, Economic
Development Authority,
Moody Family Ltd. Project, RB,
VRDN, AMT (B) (C) (E)
3.250%, 12/02/98 $ 900 $ 900
State, Building Authority Revenue,
Facilties Program Ser I, RB
4.500%, 10/01/99 2,200 2,226
State, Housing Development
Authority, RB, VRDN,
AMT (C) (D) (E)
3.200%, 12/02/98 1,000 1,000
State, Industrial Development
Authority, RB,
VRDN (B) (C) (D) (E)
3.100%, 12/02/98 3,000 3,000
State, Municipal Bond Authority,
Ser B-1, RB
4.500%, 07/02/99 1,000 1,005
State, Municipal Bond Authority,
School Loan, RB
3.500%, 12/01/99 2,000 2,012
State, Strategic, TECP
3.000%, 03/10/99 7,100 7,100
----------
18,643
----------
Mississippi (0.9%)
State, Business Finance, Solid Waste
Disposal Revenue, Choctaw
Generation, VRDN (C)
3.250%, 12/02/98 3,000 3,000
State, Government Bond, Ser B, GO
4.250%, 08/01/99 4,515 4,531
----------
7,531
----------
11
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund--continued
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Missouri (3.0%)
Carthage, Industrial Development
Authority, Schrieber Project, RB,
VRDN, AMT (C) (D) (E)
3.250%, 12/02/98 $ 3,100 $ 3,100
Improvement & Energy Resource
Authority, Kansas City Power &
Light Project, RB,
VRDN (C) (D) (E)
3.350%, 12/10/98 12,366 12,366
Kansas City, Municipal Assistance
Revenue VRDN (C)
3.600%, 04/01/99 4,995 4,995
Saint Charles County, Industrial
Development Authority, Casalon
Apartment Project, Ser 95, RB,
VRDN (C) (D) (E)
3.100%, 12/03/98 3,100 3,100
State, Environmental
Improvement & Energy
Resource Authority, Utilicorp
United Project, RB, VRDN,
AMT (C) (D) (E)
3.250%, 12/02/98 700 700
----------
24,261
----------
Nebraska (0.3%)
American Public Energy Agency,
Gas Supply Revenue, Public
Gas Agency, Ser C, RB
3.350%, 09/01/99 655 655
Investment Finance Authority,
Single Family Mortgage,
Ser B, RB,
VRDN (FGIC) (C) (D)
3.600%, 01/15/99 2,000 2,000
----------
2,655
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Nevada (1.6%)
Clark County, Airport
Improvement Authority,
Ser A-1, RB, VRDN (C) (D) (E)
3.050%, 12/02/98 $ 4,200 $ 4,200
Clark County, School District,
VRDN (C)
3.180%, 12/03/98 8,345 8,345
----------
12,545
----------
New Hampshire (1.1%)
Business Finance Authority, TECP
3.400%, 02/25/99 4,000 4,000
State, Housing Finance Authority,
Multi-Family Housing,
Fairways Project, RB, VRDN,
AMT (C) (D) (E)
3.250%, 12/02/98 5,000 5,000
----------
9,000
----------
New Jersey (0.6%)
State, Transportation,
Ser 1999a, TECP
2.900%, 01/28/99 5,000 5,000
----------
New Mexico (0.6%)
Educational Assistance
Foundation, Student
Loan Program, RB, VRDN
(AMBAC) (C)
3.350%, 12/03/98 2,720 2,720
State, Financial Authority,
Ser B, RB
3.700%, 01/01/99 2,295 2,295
----------
5,015
----------
12
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
New York (3.8%)
Long Island, Power Authority,
TECP (B)
3.250%, 12/09/98 $ 3,000 $ 3,000
3.125%, 01/21/99 2,000 2,000
3.050%, 02/10/99 3,000 3,000
Nassau County, Ser C, TRAN
4.250%, 12/22/98 4,500 4,501
Southeast Industrial Development,
Unilock Project, RB, VRDN,
AMT (C) (D) (E)
3.250%, 12/02/98 6,200 6,200
State, Urban Development
Corporation, Senior Lien,
VRDN (C)
3.180%, 12/03/98 12,155 12,155
----------
30,856
----------
North Carolina (3.8%)
Alamance County, Industrial
Facilities & Pollution Control,
Financing Authority Revenue,
Industrial Manufacturing Project,
RB, VRDN (B) (C)
3.350%, 12/01/98 1,400 1,400
Cleveland County, Family YMCA,
Recreational Facilities Revenue,
RB, VRDN (B) (C)
3.250%, 12/02/98 3,000 3,000
Mecklenburg County, Industrial
Facilities & Pollution Control,
Sterigenics International Project,
RB, VRDN, AMT (B) (C) (D) (E)
3.300%, 12/02/98 2,000 2,000
Mecklenburg County, Ser C,
GO, VRDN (C)
3.100%, 12/02/98 5,000 5,000
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
North Carolina--continued
State, Eastern, TECP (B)
3.550%, 12/09/98 $ 3,950 $ 3,950
State, Educational Facilities,
Guilford College,
VRDN (C) (D) (E)
3.150%, 12/02/98 2,200 2,200
Wake County, Industrial
Facilities & Pollution Control,
Financing Authority Revenue,
Power and Light Project, RB,
VRDN, AMT (B) (C)
3.350%, 12/01/98 13,000 13,000
----------
30,550
----------
Ohio (4.3%)
Cincinnati, Student Loan
Funding, Ser A-1, VRDN
3.300%, 12/02/98 5,000 5,000
Lorain County, Hospital Revenue,
Catholic Healthcare, TECP (B)
3.350%, 12/08/98 6,100 6,100
Lorraine County, TECP
2.950%, 03/03/99 7,000 7,000
State, Air Quality Development
Authority, JMG Limited
Partnership, Ser A, RB, VRDN,
AMT (C) (D) (E)
3.200%, 12/02/98 3,000 3,000
State, Higher Education Authority,
Lake Erie Project,
VRDN (C) (D) (E)
3.200%, 12/03/98 4,945 4,945
13
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund--continued
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Ohio--continued
State, Pollution Control Authority,
Duquesne Project, RB, VRDN,
AMT (C) (D) (E)
3.200%, 12/02/98 $ 3,000 $ 3,000
Warrren County, Health Care
Facilities Revenue, RB,
VRDN (B) (C)
3.150%, 12/02/98 5,700 5,700
----------
34,745
----------
Oregon (0.3%)
State, Housing and Community
Service Department, Single Family
Mortgage Program, Ser C, RB (D)
3.750%, 05/13/99 2,500 2,500
----------
Pennsylvania (5.3%)
Beaver County, Industrial
Development Authority,
Duquesne Light Company
Project, Ser B, RB, VRDN (C) (D)
3.100%, 12/02/98 1,000 1,000
Emmaus, General Authority,
RB, VRDN (C)
3.150%,12/02/98 17,300 17,300
Geisinger Authority,
Health System, Penn State, RB
4.500%, 08/15/99 1,000 1,005
Philadelphia, State
School District, Tax Revenue
and Anticipation Notes,
Ser A, RB (B)
4.250%, 06/30/99 1,500 1,505
Philadelphia, Tax and Revenue
Anticipation Note, Ser A, GO
4.250%, 06/30/99 5,000 5,017
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Pennsylvania--continued
State, Intergovernmental
Cooperation Authority,
Special Tax Revenue, VRDN (C)
3.600%, 12/15/98 $9,630 $ 9,630
State, Ser A, VRDN (C) (D)
3.180%, 12/03/98 6,830 6,830
----------
42,287
----------
Rhode Island (0.8%)
State, GO, VRDN (C)
3.300%, 12/03/98 6,635 6,635
----------
South Carolina (2.8%)
Piedmont, Municipal Power
Agency, Electrical Revenue,
Ser D, RB, VRDN (C)
3.100%, 12/02/98 3,100 3,100
Santee Coop, Public Service
Authority, TECP
3.300%, 01/13/99 2,800 2,800
State, Public Service Authority,
Santee Project, TECP
3.000%, 02/10/99 8,000 8,000
State, Public Service Authority,
TECP
3.000%, 03/11/99 9,000 9,000
----------
22,900
----------
South Dakota (0.4%)
Yankton, Industrial Development
Revnue, Var Kolberg Pioneer,
RB, VRDN, AMT (B) (C)
3.250%, 12/02/98 3,000 3,000
----------
14
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Tennessee (1.3%)
Covington, Industrial
Development Board,
Charms Project, RB, VRDN,
AMT (C) (D) (E)
3.250%, 12/02/98 $ 3,000 $ 3,000
Hamilton County, Industrial
Development Board, Tennessee
Aquarium Project, RB,
VRDN (C) (D) (E)
3.200%, 12/03/98 3,000 3,000
Memphis-Shelby County,
Industrial Development Board,
Ponderosa Fibres American
Project, RB, VRDN,
AMT (B) (C) (D) (E)
3.300%, 12/03/98 1,400 1,400
Nashville & Davidson County,
Industrial Development
Authority, Multi-Family
Mortgage, Chimneytop II
Project, RB, VRDN (C) (D) (E)
3.200%, 12/02/98 1,325 1,325
Nashville & Davidson County,
Vanderbilt University, RB,
VRDN (C) (D)
3.650%, 01/15/99 2,000 2,000
----------
10,725
----------
Texas (12.5%)
Brazos River Authority,
Pollution Control Revenue,
TECP, AMT (B)
3.400%, 12/10/98 5,170 5,170
Brazos River Authority,
Pollution Control, Utilities
Electric, Ser C, RB, VRDN,
AMT (AMBAC) (C) (D)
3.450%, 12/01/98 2,000 2,000
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Texas--continued
Brazos River Authority,
TECP, AMT
3.250%, 02/19/99 $ 2,700 $ 2,700
Brazos River Authority,
TECP, AMT (B)
3.150%, 02/05/99 6,000 6,000
Brownsville, Utilities System,
TECP (B)
3.600%, 12/23/98 4,000 4,000
Dallas, Water and Sewer
Program, TECP
3.375%, 12/07/98 5,000 5,000
Georgetown, Higher Education
Financing Authority,
Southwestern University Project,
Ser 1984, RB, VRDN (C) (D) (E)
3.150%, 12/02/98 2,000 2,000
Gulf Coast, Waste Disposal
Authority, Pollution Control
Revenue, Amoco Oil Project,
RB, VRDN (C)
3.450%, 12/01/98 4,000 4,000
Gulf Coast, Waste Disposal,
Texwater Pollution Control,
RB, VRDN (C) (D)
3.600%, 01/15/99 4,140 4,140
Harris County, Health Facilities
Authority, Memorial Hospital
Project, Ser B, RB, VRDN (C) (D)
3.050%, 12/02/98 1,500 1,500
Harris County, Industrial
Development Authority,
Lubrizol Project, RB,
VRDN (C) (D)
3.100%, 12/02/98 1,600 1,600
Lone Star, Airport Improvement
Authority, RB, VRDN (C) (D) (E)
3.250%, 12/01/98 1,700 1,700
15
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund--continued
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Texas--continued
North Central Health, TECP
3.400%, 02/23/99 $ 5,000 $ 5,000
Sabine, River Authority,
Pollution Control, RB,
VRDN (MBIA) (D) (C)
3.150%, 12/02/98 10,700 10,700
State, College Student Loan,
GO, AMT
5.100%, 08/01/99 1,000 1,013
State, Higher Education Authority,
RB, VRDN (MBIA) (C) (D)
3.150%, 12/02/98 5,000 5,000
State, Public Facilities, RB,
VRDN (B) (C)
3.130%, 12/03/98 7,180 7,180
State, RB, VRDN (C) (D)
3.600%, 04/01/99 4,935 4,935
State, Transportation, Ser D,
VRDN (C) (D)
3.450%, 12/16/98 15,000 15,000
State, Veterans Housing Assistance,
Ser A-1, GO, AMT
3.200%, 12/01/98 4,600 4,600
Texas A & M University, TECP
3.200%, 02/16/99 2,700 2,700
State, Public Financial Authority,
TECP
3.300%, 01/12/99 5,000 5,000
----------
100,938
----------
Utah (4.3%)
Carbon County, Pollution Control
Authority, Pacificorp Project,
RB, VRDN (AMBAC) (C) (D)
3.350%, 12/01/98 4,400 4,400
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Utah--continued
Intermountain Power Agency,
Power Supply, TECP
3.250%, 12/09/98 $ 5,000 $ 5,000
Intermountain Power Agency,
TECP
3.000%, 03/18/99 5,000 5,000
State, Housing Finance Agency,
VRDN, AMT (C)
3.100%, 01/01/99 8,885 8,885
State, Housing Finance Authority,
RB (D)
3.650%, 01/01/99 11,230 11,230
----------
34,515
----------
Virginia (1.9%)
Alexandria, Redevelopment &
Housing Authority, Multi Family
First Mortgage, Goodwin Project,
Ser B, RB, VRDN (B) (C) (D) (E)
3.350%, 12/01/98 2,000 2,000
Chesterfield County, Industrial
Development Authority,
Allied Signal Project,
RB, VRDN (C)
3.300%, 12/02/98 3,000 3,000
Commonwealth, Ser 1994,
VRDN (C) (D)
3.280%, 12/03/98 4,000 4,000
Front Royal & Warren County,
Industrial Development
Authority, Pen Tab Industries
Project, RB, VRDN,
AMT (B) (C) (D) (E)
3.200%, 12/03/98 2,800 2,800
16
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Virginia--continued
Prince George County, Industrial
Development Authority,
Industrial Development Revenue,
RB, VRDN, AMT (B) (C)
3.300%, 12/03/98 $ 3,760 $ 3,760
----------
15,560
----------
Washington (1.6%)
Pierce County, Washington
Economic Development,
Weyerhaeuser Real Estate Project,
RB, VRDN (C) (D) (E)
3.150%, 12/02/98 3,000 3,000
Port of Seattle, VRDN (C) (D)
3.150%, 12/02/98 1,400 1,400
Seattle, Water Systems Revenue,
RB, VRDN (B) (C)
3.150%, 12/02/98 4,200 4,200
South Columbia Basin, RB
5.700%, 12/01/99 1,000 1,026
State, Public Power Supply System,
Nuclear Project Number 1,
Ser 1A-3, RB, VRDN (C) (D) (E)
3.050%, 12/02/98 3,300 3,300
----------
12,926
----------
West Virginia (0.5%)
Marshall County, Pollution
Control Authority, Allied Signal
Project, RB, VRDN (B) (C) (D)
3.300%, 12/02/98 2,000 2,000
Marshall County, Pollution
Control Authority, PPG Industries
Project, RB, VRDN (C) (D)
3.350%, 12/03/98 2,000 2,000
----------
4,000
----------
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Wisconsin (1.6%)
Appleton, Industrial Development
Revenue, Pro Lable Project, RB,
VRDN, AMT (B) (C)
3.400%, 12/02/98 $ 950 $ 950
Carlton, Pollution Control, Power
and Light Company, Project B,
RB, VRDN (C) (D)
3.350%, 12/01/98 1,200 1,200
Germantown, Industrial Revenue,
Speaker Project RB, VRDN,
AMT (B) (C)
3.400%, 12/03/98 905 905
Holland, Industrial Development
Revenue, White Clover Dairy
Project, RB, VRDN, AMT (B) (C)
3.300%, 12/02/98 1,500 1,500
Oconomowoc, Industrial
Development Revenue,
Quest Technologies Project,
RB, VRDN, AMT (B) (C)
3.300%, 12/02/98 1,600 1,600
Rhinelander, School District, GO
4.400%, 03/01/99 430 431
State, Ser A, GO
4.700%, 05/01/99 4,125 4,155
Wisconsin, Health Facilities,
Saint Lukes Medical Center,
RB, VRDN (C) (D) (E)
3.150%, 12/02/98 1,900 1,900
----------
12,641
----------
Wyoming (1.4%)
Lincoln County, Pollution Control
Authority, Exxon Project, Ser A,
RB, VRDN (C)
3.300%, 12/01/98 4,300 4,300
17
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Tax-Exempt Money Market Fund--concluded
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Wyoming--continued
Sweetwater, VRDN (C)
3.050%, 12/02/98 $ 4,600 $ 4,600
Uinta County, Pollution Control,
Amoco Company, RB,
VRDN (C) (D)
3.850%, 12/01/98 2,000 2,000
----------
10,900
----------
Total Municipal Bonds
(Cost $795,918) 795,918
----------
Cash Equivalents (1.3%)
AIM Management Institutional
Tax-Free Portfolio (C) 5,712 5,712
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio (C) 4,732 4,732
----------
Total Cash Equivalents
(Cost $10,444) 10,444
----------
Total Investments (100.0%)
(Cost $806,362) 806,362
----------
Other Assets and Liabilities, Net (0.0%) (270)
----------
- -----------------------------------------------------------------------
Value (000)
- -----------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 656,075,126 outstanding shares of
beneficial interest $ 656,075
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
150,022,350 outstanding shares of
beneficial interest 150,022
Accumulated net realized loss
on investments (5)
----------
Total Net Assets 100.0% $ 806,092
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 1.00
==========
Net Asset Value, Offering and
Redemption Price Per Share --
Investor Shares $ 1.00
==========
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 20.
18
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998 Unaudited
U.S. Government Securities Money Market Fund
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
U.S. Treasury Obligations (10.7%)
U.S. Treasury Notes
5.500%, 02/28/99 $ 15,000 $ 14,999
6.375%, 05/15/99 40,000 40,122
----------
Total U.S. Treasury Obligations
(Cost $55,121) 55,121
----------
Cash Equivalent (3.9%)
AIM Management Institutional
Treasury Portfolio (C) 20,000 20,000
----------
Total Cash Equivalent
(Cost $20,000) 20,000
----------
Repurchase Agreements (72.1%)
Barclays
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$20,021,387 (collateralized by
U.S. Treasury Notes: total market
value $20,419,189) (B) 20,018 20,018
Deutsche Bank
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$21,647,678 (collateralized
by various U.S. Treasury
obligations: total market
value $22,077,733) (B) 21,644 21,644
Greenwich
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$22,631,538 (collateralized
by U.S. Treasury Bond: market
value $23,082,544) (B) 22,628 22,628
- -----------------------------------------------------------------------
Face Amount
(000) Value (000)
- -----------------------------------------------------------------------
Repurchase Agreements--continued
J.P. Morgan
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$115,076,617 (collateralized by
GNMA obligations: market
value $117,368,651) (B) $115,059 $ 115,059
Merrill Lynch
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$23,380,173 (collateralized by
GNMA obligations: total
market value $23,847,284) (B) 23,377 23,377
Morgan Stanley, 5.37%, dated
11/30/98, matures 12/01/98,
repurchase price $120,079,439
(collateralized by GNMA
obligations: total market
value $128,194,125) (B) 120,062 120,062
Salomon Brothers
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$24,569,393 (collateralized
by various U.S. Treasury
obligations: total market
value $25,061,471) (B) 24,566 24,566
SBC Warburg
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$22,396,390 (collateralized
by various U.S. Treasury
obligations: total market
value $22,843,280) (B) 22,393 22,393
----------
Total Repurchase Agreements
(Cost $369,747) 369,747
----------
Total Investments (86.7% of Net Assets)
(Cost $444,868) $ 444,868
----------
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 20.
19
<PAGE>
- --------------------------------------------------------------------------------
Key to Abbreviations used in
the Statement of Net Assets
AMBAC Security insured by the American Municipal
Bond Assurance Company
AMT Alternative Minimum Tax
Cl Class
FGIC Security insured by the Financial Guaranty
Insurance Corporation
FFCB Federal Farm Credit Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GO General Obligation
MBIA Security insured by the Municipal Bond
Investors Assurance
MTN Medium Term Note
RB Revenue Bond
Ser Series
SLMA Student Loan Marketing Association
TECP Tax Exempt Commercial Paper
TRAN Tax & Revenue Anticipation Note
VRDN Variable Rate Demand Note
(A) Private Placement Security
(B) Tri-Party Repurchase Agreement
(C) Variable rate security. The rate reported on the
Statement of Net Assets is the rate in effect on
November 30, 1998.
(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.
20
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 Unaudited
<TABLE>
<CAPTION>
U.S. Government
Securities
Money Market
Fund
---------------
<S> <C>
Assets:
Investments at market value (Cost $444,868)............................................... $444,868
Accrued income............................................................................ 2,106
Receivables for investment securities sold................................................ 69,559
Receivables for capital shares sold....................................................... 251
Other assets.............................................................................. 62
--------
Total Assets.............................................................................. 516,846
--------
Liabilities:
Accrued expenses.......................................................................... (402)
Distribution payable...................................................................... (1,824)
Payable for capital shares redeemed....................................................... (23)
Other liabilities......................................................................... (1,685)
--------
Total Liabilities......................................................................... (3,934)
--------
Net Assets:
Fund Shares of the Trust Shares (unlimited authorization -- no par value)
based on 448,611,518 outstanding shares of beneficial interest.......................... 448,612
Fund Shares of the Investor Shares (unlimited authorization -- no par value)
based on 64,204,453 outstanding shares of beneficial interest........................... 64,204
Net realized gain on investments.......................................................... 96
--------
Total Net Assets.......................................................................... $512,912
========
Net Asset Value, Offering and Redemption Price Per Share - Trust Shares................... $ 1.00
========
Net Asset Value, Offering and Redemption Price Per Share - Investor Shares................ $ 1.00
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, 1998 Unaudited
<TABLE>
<CAPTION>
Tax-Exempt
Prime Quality Money U.S. Government
Money Market Market Securities Money
Fund Fund Market Fund
------------- ---------- ----------------
06/01/98- 06/01/98- 06/01/98-
11/30/98 11/30/98 11/30/98
-------- -------- --------
<S> <C> <C> <C>
Interest Income.................................................. $66,412 $12,334 $12,516
------- ------- -------
Expenses:
Investment Advisory Fees...................................... 7,807 1,963 1,515
Less: Investment Advisory Fees Waived......................... (1,792) (492) (322)
Administrator Fees............................................ 942 280 183
Less: Administrator Fees Waived............................... (159) -- (2)
Transfer Agent Fees -- Trust Shares........................... 10 7 7
Transfer Agent Fees -- Investor Shares........................ 9 14 16
Transfer Agent Out of Pocket Fees............................. 87 13 23
Printing Expenses............................................. 114 34 16
Custody Fees.................................................. 34 9 4
Professional Fees............................................. 69 16 11
Trustee Fees.................................................. 17 6 4
Registration Fees............................................. 44 4 15
Distribution Fees -- Investor Shares.......................... 491 109 51
Less: Distribution Fees Waived -- Investor Shares............. (81) (35) (24)
Insurance and Other Fees...................................... 41 14 12
------- ------- -------
Total Expenses................................................ 7,633 1,942 1,509
------- ------- -------
Net Investment Income......................................... 58,779 10,392 11,007
------- ------- -------
Net Realized Gain (Loss) on Securities Sold................... (26) (1) 10
------- ------- -------
Net Increase in Net Assets from Operations....................... $58,753 $10,391 $11,017
======= ======= =======
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, 1998 and The Year Ended
May 31, 1998 Unaudited
<TABLE>
<CAPTION>
Prime Quality Tax-Exempt U.S. Government Securities
Money Market Fund Money Market Fund Money Market Fund
------------------------- ---------------------- -------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98 11/30/98 05/31/98
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income ........................... $ 58,779 $ 95,132 $ 10,392 $ 17,568 $ 11,007 $ 19,342
Net Realized Gain (Loss) on Investments ......... (26) 50 (1) -- 10 146
----------- ------------ --------- ---------- --------- ---------
Increase in Net Assets from Operations ...... 58,753 95,182 10,391 17,568 11,017 19,488
----------- ------------ --------- ---------- --------- ---------
Distributions to Shareholders:
Net Investment Income:
Trust Shares .................................. (47,112) (77,500) (8,333) (13,717) (9,634) (16,621)
Investor Shares ............................... (11,671) (17,632) (2,058) (3,852) (1,371) (2,723)
Capital Gains:
Trust Shares .................................. -- -- -- -- -- --
Investor Shares ............................... -- -- -- -- -- --
----------- ------------ --------- ---------- --------- ---------
Total Distributions ......................... (58,783) (95,132) (10,391) (17,569) (11,005) (19,344)
----------- ------------ --------- ---------- --------- ---------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ................... 1,992,039 3,915,486 452,112 1,039,352 442,396 776,773
Reinvestment of Cash Distributions ............ 2,268 3,699 -- -- 284 380
Cost of Shares Redeemed ....................... (1,961,375) (3,125,552) (244,059) (924,334) (371,476) (744,136)
----------- ------------ --------- ---------- --------- ---------
Increase in Net Assets From Trust Share
Transactions ................................... 32,932 793,633 208,053 115,018 71,204 33,017
----------- ------------ --------- ---------- --------- ---------
Investor Shares:
Proceeds from Shares Issued ................... 550,712 806,517 210,128 346,323 149,026 178,312
Reinvestment of Cash Distributions ............ 11,307 15,979 1,879 3,314 1,339 2,600
Cost of Shares Redeemed ....................... (428,674) (694,228) (196,529) (317,112) (144,912) (185,358)
----------- ------------ --------- ---------- --------- ---------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................. 133,345 128,268 15,478 32,525 5,453 (4,446)
----------- ------------ --------- ---------- --------- ---------
Increase in Net Assets From Share
Transactions ................................. 166,277 921,901 223,531 147,543 76,657 28,571
----------- ------------ --------- ---------- --------- ---------
Total Increase in Net Assets ................ 166,247 921,951 223,531 147,542 76,669 28,715
----------- ------------ --------- ---------- --------- ---------
Net Assets:
Beginning of Period ............................. 2,292,050 1,370,099 582,561 435,019 436,243 407,528
----------- ------------ --------- ---------- --------- ---------
End of Period ................................... $ 2,458,297 $ 2,292,050 $ 806,092 $ 582,561 $ 512,912 $ 436,243
=========== ============ ========= ========== ========= =========
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued ................................. 1,992,039 3,915,486 452,112 1,039,352 442,396 776,773
Shares Issued in Lieu of Cash Distributions ... 2,268 3,699 -- -- 284 380
Shares Redeemed ............................... (1,961,375) (3,125,552) (244,059) (924,334) (371,476) (744,136)
----------- ------------ --------- ---------- --------- ---------
Net Trust Share Transactions ................ 32,932 793,633 208,053 115,018 71,204 33,017
----------- ------------ --------- ---------- --------- ---------
Investor Shares:
Shares Issued ................................. 550,712 806,517 210,128 346,323 149,026 178,312
Shares Issued in Lieu of Cash Distributions ... 11,307 15,979 1,879 3,314 1,339 2,600
Shares Redeemed ............................... (428,674) (694,228) (196,529) (317,112) (144,912) (185,358)
----------- ------------ --------- ---------- --------- ---------
Net Investor Share Transactions ............. 133,345 128,268 15,478 32,525 5,453 (4,446)
----------- ------------ --------- ---------- --------- ---------
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 and the Years Ended
May 31.
For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Net Realized
Net Asset Value Investment Gains (Losses) Distributions from Distributions from
Beginning of Period Income on Investments Net Investment Income Realized Capital Gains
------------------- ---------- -------------- --------------------- ----------------------
<S> <C> <C> <C> <C> <C>
Prime Quality Money Market Fund
Trust Shares
1998** $1.00 $0.02 $ -- $(0.02) $ --
1998 1.00 0.05 -- (0.05) --
1997 1.00 0.05 -- (0.05) --
1996 1.00 0.05 -- (0.05) --
1995 1.00 0.05 -- (0.05) --
1994 1.00 0.03 -- (0.03) --
Investor Shares
1998** $1.00 $0.02 $ -- $(0.02) $ --
1998 1.00 0.05 -- (0.05) --
1997 1.00 0.05 -- (0.05) --
1996 1.00 0.05 -- (0.05) --
1995 1.00 0.05 -- (0.05) --
1994 1.00 0.03 -- (0.03) --
Tax-Exempt Money Market Fund
Trust Shares
1998** $1.00 $0.01 $ -- $(0.01) $ --
1998 1.00 0.03 -- (0.03) --
1997 1.00 0.03 -- (0.03) --
1996 1.00 0.03 -- (0.03) --
1995 1.00 0.03 -- (0.03) --
1994 1.00 0.02 -- (0.02) --
Investor Shares
1998** $1.00 $0.01 $ -- $(0.01) $ --
1998 1.00 0.03 -- (0.03) --
1997 1.00 0.03 -- (0.03) --
1996 1.00 0.03 -- (0.03) --
1995 1.00 0.03 -- (0.03) --
1994 1.00 0.02 -- (0.02) --
U.S. Government Securities Money Market Fund
Trust Shares
1998** $1.00 $0.02 $ -- $(0.02) $ --
1998 1.00 0.05 -- (0.05) --
1997 1.00 0.05 -- (0.05) --
1996 1.00 0.05 -- (0.05) --
1995 1.00 0.05 -- (0.05) --
1994 1.00 0.03 -- (0.03) --
Investor Shares
1998** $1.00 $0.02 $ -- $(0.02) $ --
1998 1.00 0.05 -- (0.05) --
1997 1.00 0.05 -- (0.05) --
1996 1.00 0.05 -- (0.05) --
1995 1.00 0.04 -- (0.04) --
1994 1.00 0.03 -- (0.03) --
</TABLE>
**For the six month period ended November 30, 1998. All ratios have been
annualized. Total Return is for the period indicated and has not been
annualized.
24
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
Ratio of
Net Asset Net Assets Ratio of Net Investment
Value End Total End of Expenses to Income to
of Period Return Period (000) Average Net Assets Average Net Assets
---------- ------ ------------ ------------------ ------------------
<S> <C> <C> <C> <C> <C>
Prime Quality Money Market Fund
Trust Shares
1998** $1.00 2.50% $1,913,136 0.60% 4.93%
1998 1.00 5.22% 1,880,229 0.59% 5.10%
1997 1.00 5.01% 1,086,555 0.58% 4.90%
1996 1.00 5.25% 1,050,800 0.58% 5.11%
1995 1.00 4.79% 799,189 0.58% 4.77%
1994 1.00 2.88% 583,399 0.58% 2.86%
Investor Shares
1998** $1.00 2.42% $ 545,161 0.77% 4.76%
1998 1.00 5.04% 411,821 0.76% 4.93%
1997 1.00 4.84% 283,544 0.75% 4.74%
1996 1.00 5.08% 215,696 0.75% 4.94%
1995 1.00 4.62% 157,616 0.75% 4.55%
1994 1.00 2.71% 129,415 0.75% 2.67%
Tax-Exempt Money Market Fund
Trust Shares
1998** $1.00 1.49% $ 656,077 0.52% 2.93%
1998 1.00 3.21% 448,023 0.51% 3.14%
1997 1.00 3.09% 333,006 0.50% 3.04%
1996 1.00 3.28% 273,613 0.50% 3.23%
1995 1.00 3.10% 215,413 0.45% 3.12%
1994 1.00 2.08% 143,982 0.42% 2.05%
Investor Shares
1998** $1.00 1.43% $ 150,015 0.64% 2.83%
1998 1.00 3.09% 134,538 0.62% 3.04%
1997 1.00 2.97% 102,013 0.62% 2.92%
1996 1.00 3.16% 95,223 0.62% 3.10%
1995 1.00 3.00% 87,647 0.55% 3.00%
1994 1.00 1.96% 61,675 0.54% 1.93%
U.S. Government Securities Money Market Fund
Trust Shares
1998** $1.00 2.41% $ 448,705 0.63% 4.74%
1998 1.00 5.04% 377,490 0.62% 4.92%
1997 1.00 4.83% 344,350 0.61% 4.73%
1996 1.00 5.14% 325,493 0.61% 5.02%
1995 1.00 4.67% 434,111 0.61% 4.64%
1994 1.00 2.77% 309,228 0.61% 2.69%
Investor Shares
1998** $1.00 2.34% $ 64,207 0.77% 4.60%
1998 1.00 4.90% 58,753 0.76% 4.79%
1997 1.00 4.69% 63,178 0.75% 4.59%
1996 1.00 4.99% 58,608 0.75% 4.88%
1995 1.00 4.51% 46,639 0.75% 4.51%
1994 1.00 2.63% 32,395 0.75% 2.54%
<CAPTION>
Ratio of
Ratio of Net Investment
Expenses to Income to
Average Net Assets Average Net Assets
(Excluding Waivers (Excluding Waivers
and Reimbursements) and Reimbursements)
------------------- ------------------
<S> <C> <C>
Prime Quality Money Market Fund
Trust Shares
1998** 0.76% 4.77%
1998 0.77% 4.92%
1997 0.76% 4.72%
1996 0.78% 4.91%
1995 0.79% 4.56%
1994 0.79% 2.65%
Investor Shares
1998** 0.97% 4.56%
1998 0.98% 4.71%
1997 0.97% 4.52%
1996 1.00% 4.69%
1995 1.01% 4.29%
1994 0.99% 2.43%
Tax-Exempt Money Market Fund
Trust Shares
1998** 0.66% 2.80%
1998 0.67% 2.98%
1997 0.66% 2.88%
1996 0.68% 3.05%
1995 0.70% 2.87%
1994 0.71% 1.76%
Investor Shares
1998** 0.82% 2.64%
1998 0.83% 2.83%
1997 0.83% 2.71%
1996 0.85% 2.87%
1995 0.87% 2.68%
1994 0.88% 1.59%
U.S. Government Securities Money Market Fund
Trust Shares
1998** 0.77% 4.60%
1998 0.78% 4.76%
1997 0.76% 4.58%
1996 0.78% 4.85%
1995 0.80% 4.45%
1994 0.77% 2.53%
Investor Shares
1998** 0.99% 4.38%
1998 0.96% 4.59%
1997 0.96% 4.38%
1996 0.99% 4.64%
1995 1.02% 4.24%
1994 0.97% 2.32%
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
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 twenty-three portfolios: the Balanced Fund,
the Capital Growth Fund, the Emerging Markets Equity Fund, the International
Equity Fund, the International Equity Index Fund, the Mid-Cap Equity Fund, the
Small Cap Equity Fund, the Small Cap Growth Stock Fund, the Sunbelt Equity Fund,
the Value Income Stock Fund, the Florida Tax-Exempt Bond Fund, the Georgia
Tax-Exempt Bond Fund, the Investment Grade Bond Fund, the Investment Grade
Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the
Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S.
Government Securities Fund, (collectively the "Non-Dollar Funds"), the Prime
Quality Money Market Fund, the Tax-Exempt Money Market Fund, the U.S. Government
Securities Money Market Fund, the Classic Institutional Cash Management Money
Market Fund and the Classic Institutional U.S. Treasury Securities Money Market
Fund, (collectively the "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 of the Prime
Quality Money Market Fund, the Tax-Exempt Money Market Fund, and the U.S.
Government Securities Money Market Fund, (collectively the "Funds") are included
herein. The financial statements of the remaining funds are presented
separately.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust:
Security Valuation -- Investment securities held by the Funds are stated at
amortized cost, which approximates market value.
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 ratably to maturity and are
included in interest income.
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 counterparty defaults
and the value of the collateral declines or if the counterparty enters into
an insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
26
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
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.
Other -- Expenses that are directly related to a specific Fund are charged
to that Fund. Class specific expenses are borne by that class. Other
operating expenses of the Trust are pro-rated to the Funds on the basis of
relative net assets. Fund expenses are pro-rated to the respective classes
on the basis of relative net assets.
Distributions from net investment income of each of the Funds are declared on
each business day and paid to shareholders on a monthly basis. Any net realized
capital gains on sales of securities are distributed to shareholders at least
annually.
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.
3. Transactions with Affiliates:
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 and Transfer Agency Servicing Agreements:
The Trust and SEI Investments Mutual Fund Services ("the Administrator") are
parties to an Administration Agreement dated May 29, 1995, as amended November
19, 1997, under which the Administrator provides administrative services for an
annual fee (expressed as a percentage of the combined average daily net assets
of the Trust and STI Classic Variable Annuity Trust) of: .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.
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.
5. Investment Advisory and Custodian Agreements:
The Trust and Trusco Capital Management, Inc. (the "Investment Advisor") have
entered into an advisory agreement dated July 15, 1993.
Under terms of the respective agreements, the Funds are charged the following
annual fees based upon average daily net assets:
Maximum
Maximum Trust Investor Investor
Annual Share Share Share
Advisory Maximum Distribution Maximum
Fee Expense Fee Expense
-------- ------- ------------ --------
Prime Quality Money
Market Fund .65% .60% .20% .77%
Tax-Exempt Money
Market Fund .55% .62% .15% .74%
U.S. Government
Securities Money
Market Fund .65% .63% .17% .77%
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998 Unaudited
The Investment Advisor and the Administrator have voluntarily agreed to waive
all or a portion of their fees (and to reimburse Funds' expenses) in order to
limit operating expenses to an amount as outlined in the table above. Fee
waivers and expense reimbursements are voluntary and may be terminated at any
time.
SunTrust Bank, Atlanta, formerly Trust Company Bank, acts as custodian for the
Funds. Fees of the Custodian are paid on the basis of the 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. Concentration of Credit Risk:
The Prime Quality Money Market Fund invests primarily in high quality money
market instruments rated in the highest short-term rating category by Standard &
Poor's Ratings Group ("S&P") or Moody's Investors Services, Inc. (Moody's) or,
if not rated, are determined by the Investment Advisor to be of comparable
quality. The U.S. Government Securities Money Market Fund invests exclusively in
U.S. Treasury obligations, U.S. Government subsidiary corporation securities
which are backed by the full faith and credit of the U.S. Government and
repurchase agreements with approved dealers collateralized by U.S. Treasury
securities and U.S. Government subsidiary corporation securities. The Tax-Exempt
Money Market Fund invests in high quality, U.S. dollar denominated municipal
securities rated in one of the two highest short-term rating categories or, if
not rated, are determined by the Investment Advisor to be of comparable quality.
7. Subsequent Event:
On July 20, 1998 it was announced that Crestar Financial Corporation
("Crestar"), the parent of Crestar Bank, and SunTrust Banks, Inc. ("SunTrust")
had signed a definitive agreement for the acquisition of Crestar by SunTrust.
The acquisition of Crestar by SunTrust was completed on December 31, 1998. It is
currently the intention of Crestar and SunTrust to file an exemptive application
with the Securities and Exchange Commission to permit the combination of certain
of the CrestFunds with certain of the STI Classic Funds (mutual funds that are
served by investment advisers that are subsidiaries of SunTrust). Any
combination of CrestFunds and STI Classic Funds would require the approval of
the board of directors and the shareholders of the CrestFunds.
28
<PAGE>
INVESTMENT ADVISOR
Trusco Capital Management, Inc.
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.
