<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 31, 1999
File No. 333-73049
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933 /X/
PRE-EFFECTIVE AMENDMENT NO. 1 /X/
POST-EFFECTIVE AMENDMENT NO. ____ /X/
STI CLASSIC FUNDS
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
2 OLIVER STREET
BOSTON, MASSACHUSETTS 02109
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE (800) 342-5734
MARK NAGLE
C/O SEI INVESTMENTS COMPANY
ONE FREEDOM VALLEY ROAD
OAKS, PENNSYLVANIA 19456
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Copies to:
RICHARD W. GRANT, ESQ. JOHN H. GRADY, JR., ESQ.
MORGAN, LEWIS & BOCKIUS LLP MORGAN, LEWIS & BOCKIUS LLP
1701 MARKET STREET 1701 MARKET STREET
PHILADELPHIA, PA 19103 PHILADELPHIA, PA 19103
- --------------------------------------------------------------------------------
Registrant hereby amends this Registration Statement on such date or dates as
may be necessary to delay its effective date until the Registrant shall file a
further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission acting pursuant to said Section 8(a)
may determine.
No filing fee is required because an indefinite number of shares have previously
been registered pursuant to Rule 24f-2 under the Investment Company Act of 1940.
- --------------------------------------------------------------------------------
<PAGE>
STI CLASSIC FUNDS
ITEMS REQUIRED BY FORM N-14
Cross reference sheets, Part A (except the President's letter to shareholders
and the Question and Answer letter to shareholders) and Part B are herein
incorporated by reference to the Registrant's Registration Statement filed on
Form N-14 with the SEC via EDGAR Accession No. 0000104769-99-007683 on
February 26, 1999.
<PAGE>
To Shareholders of the Arbor U.S. Government Securities Money Fund and Arbor
Prime Obligations Fund (the "Arbor Funds"):
Enclosed with this letter is a proxy ballot, an N-14 combined
proxy/prospectus statement and related information concerning a special meeting
of Arbor Funds shareholders.
The purpose of this proxy package is to announce that a Shareholder Meeting
for the Arbor Funds has been scheduled for Friday, May 7, 1999. The purpose of
the meeting is to submit the Agreement and Plan of Reorganization between the
Arbor Funds and the STI Classic Funds to the shareholders for a vote.
The Trustees of the Arbor Funds approved the Agreement and Plan of
Reorganization at a meeting held on Monday, February 22, 1999. In coming to
this conclusion, the Trustees considered a variety of factors including:
- - the compatibility of the funds' objectives and policies
- - the performance of the corresponding STI Classic Funds
- - the experience and resources of the advisers for the corresponding
STI Classic Funds
- - the expense ratios of the combined fund family
- - the potential economies of scale to be gained by the merger
- - the advantages of increased investment opportunities for Arbor Funds'
shareholders; and
- - the fact that the merger will be free from federal income taxes.
The details of the proposed Agreement and Plan of Reorganization are set
forth in the combined prospectus and proxy statement that accompanies this
letter. We encourage you to read them thoroughly. In addition, we have
included a list of commonly asked questions and answers on the next page.
If you and the other shareholders of your fund approve the proposed
reorganization of your fund and certain other conditions are satisfied, you will
be able to continue your investment program through ownership in the STI Classic
Funds portfolio with similar objectives and policies.
Most shareholders cast their votes by filling out and signing the enclosed
proxy card. In order to conduct the Shareholder Meeting, a majority of shares
must be represented. YOUR VOTE IS VERY IMPORTANT. PLEASE MARK, SIGN AND DATE
THE ENCLOSED PROXY CARD AND RETURN IT PROMPTLY IN THE ENCLOSED, POSTAGE-PAID
ENVELOPE, OR VOTE BY FACSIMILE, VIA THE INTERNET OR IN PERSON AS DESCRIBED IN
THE ENCLOSED PROXY CARD.
We thank you for your continued confidence and support.
Sincerely,
Robert A. Nesher
CHAIRMAN OF THE BOARD
IMPORTANT PROXY INFORMATION ENCLOSED
-IMMEDIATE ACTION REQUIRED-
<PAGE>
QUESTIONS & ANSWERS
FOR THE
ARBOR FUNDS
SHAREHOLDER MEETING
Q. WHY IS THE BOARD OF TRUSTEES PROPOSING TO REORGANIZE THE ARBOR FUNDS AND
THE STI CLASSIC FUNDS?
A. As you are aware, Crestar Financial Corporation and SunTrust Banks, Inc.
merged on December 31, 1998. Before approving the integration of the Arbor
Funds and STI Classic Funds, the Arbor Funds Trustees evaluated the
expanded range of investment alternatives that would be available to
shareholders, the opportunities for increased economies of scale, and the
potential for improved shareholder service. After careful consideration,
they determined that the Agreement and Plan of reorganization is in the
best interest of the Arbor Funds shareholders. Through this proxy, they
are submitting the proposal for reorganization to you -- the Arbor Funds
shareholders -- for a vote.
Q. HOW WILL THIS AFFECT ME AS AN ARBOR FUNDS SHAREHOLDER?
A. You will become a shareholder of an STI Classic Fund portfolio with similar
investment objectives and policies as the Arbor Funds you currently hold.
The reorganization provides for the transfer of all of the assets of each
of the Arbor Funds into its corresponding STI Classic Fund in exchange for
shares of the STI Classic Fund. Each Arbor Funds shareholder will receive
shares of STI Classic Funds equal in value to their Arbor Funds shares.
There will be NO CHANGE in the market value of your account as a result of
the merger.
Q. WILL THE REORGANIZATION RESULT IN ANY TAXES?
A. Neither the Arbor Funds nor their shareholders will incur any federal
income tax as a result of the reorganizations.
Q. WHAT FUND(S) WILL I HOLD FOLLOWING THE REORGANIZATION?
A. Arbor Funds shareholders will receive shares of the following corresponding
STI Classic Funds portfolios. Please refer to the STI Classic Fund
prospectus for more details. Listed below are the Arbor Funds and the
corresponding STI Classic Fund portfolio:
ARBOR FUNDS STI CLASSIC FUNDS
Prime Obligations Fund Classic Institutional Cash
Management Money Market
U.S. Government Securities Money Fund Classic Institutional U.S.
Government Securities Money Market
Q. HOW DOES THE ARBOR BOARD OF TRUSTEES RECOMMEND THAT I VOTE?
<PAGE>
A. After careful consideration, the Arbor Board of Trustees unanimously
recommends that you vote "FOR" the proposed reorganizations. The Board
also wishes to remind you to vote and return ALL the proxy ballot cards you
receive. This means that if you receive multiple proxies and ballot cards
because you are invested in more than one Arbor portfolio, please fill out
and return each and every ballot card you receive.
Q. HOW DO I VOTE?
A. You can vote by mail, fax, Internet, or in person. To vote by mail, please
date, sign and return the proxy card using the enclosed, postage-paid
envelope. You may fax your vote by signing and dating the card and faxing
both sides of the card to (xxx) xxx-xxxx. You may also submit your vote
over the Internet at www.proxyvote.com. Finally, you may vote in person by
attending the Special Meeting on May 7, 1999.
Q. WHO SHOULD I CALL WITH QUESTIONS ABOUT THIS PROXY?
A. If you have any questions regarding this proxy, please contact your CAMCO
Portfolio Manager or your Crestar Securities Financial Consultant.
PLEASE VOTE THE ENCLOSED PROXY BALLOT CARD.
YOUR VOTE IS IMPORTANT!
<PAGE>
STI CLASSIC FUNDS
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
FORM N-14
PRE-EFFECTIVE AMENDMENT NO. 1
PART C
OTHER INFORMATION
Item 15. INDEMNIFICATION.
Article VIII of the Agreement and Declaration of Trust filed as Exhibit (a) to
the Registration Statement is incorporated by reference. Insofar as
indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to trustees, directors, officers and controlling persons of the
Registrant by the Registrant pursuant to the Declaration of Trust or otherwise,
the Registrant is aware that in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in the
Act and, therefore, is unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by trustees, directors, officers or
controlling persons of the Registrant in connection with the successful defense
of any act, suit or proceeding) is asserted by such trustees, directors,
officers or controlling persons in connection with the shares being registered,
the Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issues.
Item 16. Exhibits
(1) Agreement and Declaration of Trust -- originally filed with
Registrant's Registration Statement on Form N-1A filed
February 12, 1992 and incorporated by reference to Exhibit 1
of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on Form N-1A with the SEC via
EDGAR Accession No. 0000912057-96-015938 on July 31, 1996.
(2)(a) By-Laws -- originally filed with Registrant's Pre-Effective
Amendment No. 1 filed on Form N-1A April 23, 1992 and
incorporated by reference to Exhibit 2 of Post-Effective
Amendment No. 15 to the Registrant's Registration Statement
filed on Form N-1A with the SEC via EDGAR Accession
No. 0000912057-96-015938 on July 31, 1996.
(2)(b) Amended By-Laws - incorporated by reference to Exhibit
(b)(2) of Post-Effective Amendment No. 23 to the
Registrant's Registration Statement filed on Form N-1A with
the SEC via EDGAR Accession No. 0001047469-98-027407 on
July 15, 1998.
(3) Not applicable.
(4) Form of Agreement and Plan of Reorganization - originally
filed with the Registrant's Registration Statement on Form
N-14 with the SEC via EDGAR accession number
0001047469-99-007683 on February 26, 1999.
(5) Not applicable.
(6)(a) Revised Investment Advisory Agreement with Trusco Capital
Management, Inc. -- as originally filed with Registrant's
Post-Effective Amendment No. 5 filed August 2, 1993 on Form
N-1A and incorporated by reference to Exhibit 5(c) of
Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on
<PAGE>
Form N-1A with the SEC via EDGAR Accession
No. 0000912057-96-015938 on July 31, 1996.
(6)(b) Investment Advisory Agreement with American National Bank
and Trust Company -- as originally filed with Registrant's
Post-Effective Amendment No. 6 filed on Form N-1A
October 22, 1993 and as Exhibit 5(d) of Post-Effective
Amendment No. 15 to the Registrant's Registration Statement
filed with the SEC on Form N-1A via EDGAR Accession
No. 0000912057-96-015938 on July 31, 1996.
(6)(c) Investment Advisory Agreement with Sun Bank
CapitalManagement, National Association (now STI Capital
Management, N.A. -- as originally filed with Registrant's
Post-Effective Amendment No. 6 on Form N-1A filed October
22, 1993 and incorporated by reference to Exhibit 5(e) of
Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed with the SEC on Form N-1A via
EDGAR Accession No. 0000912057-96-015938 on July 31, 1996.
(6)(d) Investment Advisory Agreement with Trust Company Bank (now
SunTrust Bank, Atlanta) -- as originally filed with
Registrant's Post-Effective Amendment No. 6 on Form N-1A
filed October 22, 1993 and filed herewith.
(7)(a) Distribution Agreement -- incorporated by reference to
Exhibit 6 of Post-Effective Amendment No. 16 to the
Registrant's Registration Statement on Form N-1A filed with
the SEC via EDGAR Accession No. 0000912057-96-021336 on
September 27, 1996.
(8) Not applicable.
(9)(a) Custodian Agreement with Trust Company Bank dated
February 1, 1994 -- originally filed with Registrant's
Post-Effective Amendment No. 13 on Form N-1A filed
September 28, 1995 and incorporated by reference to Exhibit
8(b) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on Form N-1A with the SEC via
EDGAR Accession No. 0000912057-96-015938 on July 31, 1996.
(9)(b) Custodian Agreement with the Bank of California --
incorporated by reference to Exhibit 8(a) of Post-Effective
Amendment No. 15 to the Registrant's Registration Statement
filed on Form N-1A with the SEC via EDGAR Accession No.
0000912057-96-015938 on July 31, 1996.
(9)(c) Fourth Amendment to Custodian Agreement by and between STI
Trust & Investment Operations, Inc. and The Bank of New York
dated May 6, 1997 -- incorporated by reference to Exhibit
8(d) of Post-Effective Amendment No. 21 to the
Registrant's Registration Statement filed on Form N-1A with
the SEC via EDGAR Accession No. 0000912057-97-032207 on
September 30, 1997.
(10) Not applicable.
(11) Opinion and Consent of Morgan, Lewis & Bockius LLP that
shares will be validly issued, fully paid and non-assessable
- originally filed with the Registrant's Registration
Statement on Form N-14 with the SEC via EDGAR accession
number 0001047469-99-007683 on February 26, 1999.
(12) Opinion and Consent of Morgan, Lewis & Bockius LLP as to tax
matters and consequences - originally filed with the
Registrant's Registration Statement on Form N-14 with the
SEC via EDGAR accession number 0001047469-99-007683 on
February 26, 1999.
<PAGE>
(13)(a) Transfer Agent Agreement with Federated Services Company
dated May 14, 1994 -- originally filed with Post-Effective
Amendment No. 9 on Form N-1A filed September 22, 1994 and
incorporated by reference to Exhibit 8(c) of Post-Effective
Amendment No. 15 to the Registrant's Registration Statement
on Form N-1A filed with the SEC via EDGAR Accession
No. 0000912057-96-015938 on July 31, 1996.
(13)(b) Administration Agreement with SEI Financial Management
Corporation dated May 29, 1995 -- originally filed with
Post-Effective Amendment No. 12 on Form N-1A filed
August 17, 1995 and incorporated by reference to Exhibit
9(a) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
(13)(c) Consent to Assignment and Assumption of the Administration
Agreement between STI Classic Funds and SEI Financial
Management Corporation -- incorporated by reference to
Exhibit 9(b) of Post-Effective Amendment No. 21 to the
Registrant's Registration Statement filed on Form N-1A with
the SEC via EDGAR Assession No. 0000912057-97-032207 on
September 30, 1997.
(14)(a) Consent of Arthur Andersen LLP is filed herewith.
(14)(b) Consent of PricewaterhouseCoopers LLP is filed herewith.
(15) Not applicable.
(16) Not applicable.
(17)(a) Prospectus and SAI for the Institutional Class Shares of
STI Classic Funds dated October 1, 1998 - incorporated by
reference to the Rule 497(e) filing on Form N-1A with the
SEC via EDGAR accession number 0001047469-98-036330 as filed
October 2, 1998.
(17)(b) Prospectus and SAI for the U.S. Government Securities Money
Fund and the Prime Obligations Fund of the Arbor Fund dated
May 31, 1998 - incorporated by reference to the Rule 485(b)
filing on Form N-1A with the SEC via EDGAR accession number
0001047469-98-022302 as filed May 29, 1998.
(17)(c) Audited Financial Statements dated May 31, 1998 for the STI
Classic Institutional Money Market Funds - incorporated by
reference to the N-30D filing with the SEC via EDGAR
accession number 0000935069-98-000124 as filed
July 30, 1998.
(17)(d) Semi-Annual Financial Report for the STI Classic
Institutional Money Market Funds dated November 30, 1998 -
incorporated by reference to the N-30D filing with the SEC
via EDGAR accession number 0000935069-99-000010 as filed on
January 28, 1999.
(17)(e) Audited Financial Statements for the Arbor Fund dated
January 31, 1998 - incorporated by reference to the N-30D
filing with the SEC via EDGAR accession number
0001041062-98-000095 as filed on March 30, 1998.
(17)(f) Semi-Annual Financial Report for the Arbor Fund dated
July 31, 1998 - incorporated by reference to the N-30D
filing with the SEC via EDGAR accession number
0000935069-98-000147 filed on August 28, 1998.
(17)(g) Pro Forma Financial Statements are filed herewith.
Item 17. Undertakings.
<PAGE>
The registrant agrees that prior to any public reoffering of the securities
registered through the use of a prospectus which is a part of this registration
statement by any person or party who is deemed to be an underwriter within the
meaning of Rule 145(c) of the Securities Act, the reoffering prospectus will
contain the information called for by the applicable registration form for
reofferings by persons who may be deemed underwriters, in addition to the
information called for by the other items of the applicable form.
The registrant agrees that every prospectus that is filed under
paragraph (1) above will be filed as a part of an amendment to the registration
statement and will not be used until the amendment is effective, and that, in
determining any liability under the 1933 Act, each post-effective amendment
shall be deemed to be a new registration statement for the securities offered
therein, and the offering of the securities at that time shall be deemed to be
the initial bona fide offering of them.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 this Registration Statement has
been signed on behalf of STI Classic Funds in the city of Oaks, and state of,
Pennsylvania on the 26th of March, 1999.
STI Classic Funds
By: /s/ Mark Nagle
------------------------------------
Mark Nagle, President and Chief
Executive Officer
As required by the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates
indicated:
* Trustee March 26, 1999
-------------------------
F. Wendell Gooch
* Trustee March 26, 1999
-------------------------
Daniel S. Goodrum
* Trustee March 26, 1999
-------------------------
Jesse S. Hall
* Trustee March 26, 1999
-------------------------
Wilton Looney
* Trustee March 26, 1999
-------------------------
Champney A. McNair
* Trustee March 26, 1999
-------------------------
T. Gordy Germany
* Trustee March 26, 1999
-------------------------
Bernard F. Sliger
* Trustee March 26, 1999
-------------------------
Jonathan T. Walton
* Trustee March 26, 1999
-------------------------
William H. Cammack
* Controller, Treasurer & March 26, 1999
------------------------- Chief Financial Officer
Carol Rooney
/s/ Mark Nagle President & Chief March 26, 1999
------------------------- Executive Officer
Mark Nagle
* By: /s/ Mark Nagle
----------------------------------
Mark Nagle, With Power of Attorney
previously filed
<PAGE>
Exhibit Index
(1) Agreement and Declaration of Trust -- originally filed with
Registrant's Registration Statement on Form N-1A filed February 12,
1992 and incorporated by reference to Exhibit 1 of Post-Effective
Amendment No. 15 on to the Registrant's Registration Statement filed
on Form N-1A with the SEC via EDGAR Accession No. 0000912057-96-015938
on July 31, 1996.
(2)(a) By-Laws -- originally filed with Registrant's Pre-Effective Amendment
No. 1 on Form N-1A filed April 23, 1992 and incorporated by reference
to Exhibit 2 of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on Form N-1A with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
(2)(b) Amended By-Laws -- incorporated by reference to Exhibit (b)(2) of
Post-Effective Amendment No. 23 on Form N-1A to the Registrant's
Registration Statement filed with the SEC via EDGAR Accession
No. 0001047469-98-027407 on July 15, 1998.
(3) Not applicable.
(4) Form of Agreement and Plan of Reorganization - originally filed with
the Registrant's Registration Statement on Form N-14 with the SEC via
EDGAR accession number 0001047469-99-007683 on February 26, 1999.
(5) Not applicable.
(6)(a) Revised Investment Advisory Agreement with Trusco Capital Management,
Inc. -- as originally filed with Registrant's Post-Effective Amendment
No. 5 on Form N-1A filed August 2, 1993 and incorporated by reference
to Exhibit 5(c) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on Form N-1A with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
(6)(b) Investment Advisory Agreement with American National Bank and Trust
Company -- as originally filed with Registrant's Post-Effective
Amendment No. 6 filed on Form N-1A October 22, 1993 and as Exhibit
5(d) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on Form N-1A with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
(6)(c) Investment Advisory Agreement with Sun Bank Capital Management,
National Association (now STI Capital Management, N.A. -- as
originally filed with Registrant's Post-Effective Amendment No. 6 on
Form N-1A filed October 22, 1993 and incorporated by reference to
Exhibit 5(e) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement filed on Form N-1A with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
(6)(d) Investment Advisory Agreement with Trust Company Bank (now SunTrust
Bank, Atlanta) -- as originally filed with Registrant's Post-Effective
Amendment No. 6 on Form N-1A filed October 22, 1993 and incorporated
by reference to Exhibit D(4) of Post-Effective Amendment No. 24 to the
Registrant's Statement on Form N-1A filed with the SEC via EDGAR
Accession No. 0001047469-98-028802 on July 30, 1998.
(7)(a) Distribution Agreement -- incorporated by reference to Exhibit 6 of
Post-Effective Amendment No. 16 to the Registrant's Registration
Statement on Form N-1A filed with the SEC via EDGAR Accession No.
0000912057-96-021336 on September 27, 1996.
(8) Not applicable.
(9)(a) Custodian Agreement with Trust Company Bank dated February 1, 1994 --
originally filed with Registrant's Post-Effective Amendment No. 13 on
Form N-1A filed September 28, 1995 and incorporated by reference to
Exhibit 8(b) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement on Form N-1A filed with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
<PAGE>
(9)(b) Custodian Agreement with the Bank of California -- incorporated by
reference to Exhibit 8(a) of Post-Effective Amendment No. 15 to the
Registrant's Registration Statement on Form N-1A filed with the SEC
via EDGAR Accession No. 0000912057-96-015938 on July 31, 1996.
(9)(c) Fourth Amendment to Custodian Agreement by and between STI Trust &
Investment Operations, Inc. and The Bank of New York dated May 6, 1997
-- incorporated by reference to Exhibit 8(d) of Post-Effective
Amendment No. 21 to the Registrant's Registration Statement on Form
N-1A filed with the SEC via EDGAR Accession No. 0000912057-97-032207
on September 30, 1997.
(10) Not applicable.
(11) Opinion and Consent of Morgan, Lewis & Bockius LLP that shares will be
validly issued, fully paid and non-assessable - originally filed with
the Registrant's Registration Statement on Form N-14 with the SEC via
EDGAR accession number 0001047469-99-007683 on February 26, 1999.
(12) Opinion and Consent of Morgan, Lewis & Bockius LLP as to tax matters
and consequences - originally filed with the Registrant's
Registration Statement on Form N-14 with the SEC via EDGAR accession
number 0001047469-99-007683 on February 26, 1999.
(13)(a) Transfer Agent Agreement with Federated Services Company dated
May 14, 1994 -- originally filed with Post-Effective Amendment No. 9
on Form N-1A filed September 22, 1994 and incorporated by reference to
Exhibit 8(c) of Post-Effective Amendment No. 15 to the Registrant's
Registration Statement on Form N-1A filed with the SEC via EDGAR
Accession No. 0000912057-96-015938 on July 31, 1996.
(13)(b) Administration Agreement with SEI Financial Management Corporation
dated May 29, 1995 -- originally filed with Post-Effective Amendment
No. 12 on Form N-1A filed August 17, 1995 and incorporated by
reference to Exhibit 9(a) of Post-Effective Amendment No. 15 to the
Registrant's Registration Statement on Form N-1A filed with the SEC
via EDGAR Accession No. 0000912057-96-015938 on July 31, 1996.
(13)(c) Consent to Assignment and Assumption of the Administration Agreement
between STI Classic Funds and SEI Financial Management Corporation --
incorporated by reference to Exhibit 9(b) of Post-Effective Amendment
No. 21 to the Registrant's Registration Statement on Form N-1A filed
with the SEC via EDGAR Assession No. 0000912057-97-032207 on
September 30, 1997.
(14)(a) Consent of Arthur Andersen LLP is filed herewith.
(14)(b) Consent of PricewaterhouseCoopers LLP is filed herewith.
(15) Not applicable.
(16) Not applicable.
(17)(a) Prospectus and SAI for the Institutional Shares of STI Classic Funds
dated October 1, 1998 - incorporated by reference to the Rule 497(e)
filing on Form N-1A with the SEC via EDGAR accession number
0001047469-98-036330 as filed October 2, 1998.
(17)(b) Prospectus and SAI for the U.S. Government Securities Money Fund and
the Prime Obligations Fund of the Arbor Fund dated May 31, 1998 -
incorporated by reference to the Rule 497(3) filing on Form N-1A with
the SEC via EDGAR accession number 0001047469-98-028972 as filed
July 31, 1998.
(17)(c) Audited Financial Statements for the STI Classic Institutional Money
Market Funds dated May 31, 1998 - incorporated by reference to the
N-30D filing with the SEC via EDGAR accession number
0000935069-98-000124 as filed July 30, 1998.
<PAGE>
(17)(d) Semi-Annual Financial Report for the STI Classic Institutional Money
Market Funds of the STI Classic Funds dated November 30, 1998 -
incorporated by reference to the N-30D filing with the SEC via EDGAR
accession number 0000935069-99-000010 filed on January 28, 1999.
(17)(e) Audited Financial Statements for the Arbor Fund dated January 31, 1998
- incorporated by reference to the N-30D filing with the SEC via
EDGAR accession number 0001041062-98-000095 filed on March 30, 1998.
(17)(f) Semi-Annual Financial Report for the Arbor Fund dated July 31, 1998
- incorporated by reference to the N-30D filing with the SEC via
EDGAR accession number 0000935069-98-000147 filed on August 28, 1998.
(17)(g) Pro Forma Financial Statements are filed herewith.
<PAGE>
ARTHUR ANDERSEN LLP
CONSENT OF INDEPENDENT ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this registration statement of our report dated July 24, 1998 on
the May 31, 1998 financial statements of STI Classic Funds, included in
Post-Effective Amendment No. 25 to the Registration Statement on Form N-1A dated
September 28, 1998, and to all references to our firm included in this Form N-14
Registration Statement.
/s/ Arthur Andersen LLP
Philadelphia, PA
March 30, 1999
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Pre-Effective Amendment No.
1 to the Registration Statement (File No. 333-73049) of the STI Classic Funds on
Form N-14 of our report dated March 13, 1998 on our audit of the financial
statements and financial highlights of the U.S. Government Securities Money Fund
and the Prime Obligation Fund of The Arbor Fund, which report is included in the
Annual Report to Shareholders for the year ended January 31, 1998, which is
incorporated by reference in the Pre-Effective amendment to the Registration
Statement. We also consent to the reference to our Firm under the heading
"Financial Statements."
/s/ PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
March 29, 1999
<PAGE>
Pro Forma Schedule of Investments (Unaudited)
STI Classic Funds Institutional Cash Management Fund
Crestar/Arbor Prime Obligations Fund
November 30, 1998
<TABLE>
<CAPTION>
-------------------------------
STI Classic Institutional
Cash Management Fund
-------------------------------
- ---------------------------------------------------------------------------------------
Security Par (000) Value (000)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper--33.9%
Finance--30.4%
American Express 4.950% 12/18/98 2,800 2,793
Banc One Funding 5.150% 12/08/98 1,979 1,977
Banc One Funding 5.130% 01/28/99 6,623 6,568
Banc One Funding 5.280% 01/28/99 9,000 8,923
Barclays U.S. Funding 5.180% 01/07/99 15,000 14,920
CS First Boston 4.875% 05/07/99
CS First Boston 5.800% 05/06/99
Chrysler Financial 5.240% 02/11/99 10,000 9,895
Den Norske Bank 4.860% 08/10/99
Den Norske Bank 5.380% 05/04/99
Dresdner U.S. Finance 5.190% 01/08/99 10,000 9,945
Dupont 5.060% 01/27/99
Ford Motor Credit 5.450% 01/13/99
General Electric Capital 5.410% 02/22/99
General Electric Capital 5.270% 01/20/99
GMAC 5.240% 02/11/99 8,500 8,411
Goldman Sachs 5.000% 04/20/99
Goldman Sachs 5.480% 02/09/99
KFW International 5.250% 12/08/98 300 300
KFW International 4.950% 12/07/98 500 500
KFW International 5.300% 12/07/98 600 599
KFW International 5.000% 12/04/98 1,100 1,100
Marsh & Mclennan 5.230% 02/24/99 15,000 14,815
Marsh & Mclennan 5.290% 02/24/99 2,700 2,666
Merrill Lynch 4.820% 06/17/99
Merrill Lynch 5.470% 02/26/99
Metlife Funding 4.950% 12/03/98 254 254
Morgan Stanley Dean Witter 5.200% 01/21/99 10,000 9,926
Morgan Stanley Dean Witter 5.170% 03/26/99
Panasonic Finance 5.330% 01/21/99 100 99
Panasonic Finance 5.380% 01/21/99 15,000 14,886
Republic New York 5.190% 01/15/99 10,000 9,935
Royal Bank of Canada 5.450% 01/15/99 1,000 993
- ---------------------------------------------------------------------------------------
119,505
- ---------------------------------------------------------------------------------------
Industrial--3.5%
Allied Signal 5.550% 01/25/99 2,500 2,479
Allied Signal 5.550% 01/21/99 14,050 13,940
Archer Daniels 5.150% 01/15/99 470 467
Eastman Kodak 5.400% 12/02/98 2,600 2,600
Heinz 5.150% 12/03/98 535 535
IBM 5.500% 12/04/98 650 650
- ---------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------
Crestar/Arbor Prime
Obligations Fund Pro Forma Combined
-------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Security Par (000) Value (000) Par (000) Value (000)
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper--33.9%
Finance--30.4%
American Express 2,800 2,793
Banc One Funding 1,979 1,977
Banc One Funding 6,623 6,568
Banc One Funding 9,000 8,923
Barclays U.S. Funding 15,000 14,920
CS First Boston 10,000 9,787 10,000 9,787
CS First Boston 10,000 10,000 10,000 10,000
Chrysler Financial 10,000 9,895
Den Norske Bank 15,000 14,490 15,000 14,490
Den Norske Bank 30,000 29,310 30,000 29,310
Dresdner U.S. Finance 10,000 9,945
Dupont 35,000 34,720 35,000 34,720
Ford Motor Credit 20,000 19,870 20,000 19,870
General Electric Capital 10,000 9,875 10,000 9,875
General Electric Capital 30,000 29,780 30,000 29,780
GMAC 45,000 44,632 53,500 53,043
Goldman Sachs 30,000 29,417 30,000 29,417
Goldman Sachs 10,000 9,893 10,000 9,893
KFW International 300 300
KFW International 500 500
KFW International 600 599
KFW International 1,100 1,100
Marsh & Mclennan 15,000 14,815
Marsh & Mclennan 2,700 2,666
Merrill Lynch 30,000 29,205 30,000 29,205
Merrill Lynch 10,000 9,868 10,000 9,868
Metlife Funding 254 254
Morgan Stanley Dean Witter 10,000 9,926
Morgan Stanley Dean Witter 35,000 34,422 35,000 34,422
Panasonic Finance 100 99
Panasonic Finance 15,000 14,886
Republic New York 10,000 9,935
Royal Bank of Canada 1,000 993
- -------------------------------------------------------------------------------------------
315,269 434,774
- -------------------------------------------------------------------------------------------
Industrial--3.5%
Allied Signal 2,500 2,479
Allied Signal 14,050 13,940
Archer Daniels 470 467
Eastman Kodak 2,600 2,600
Heinz 535 535
IBM 650 650
- -------------------------------------------------------------------------------------------
<PAGE>
Pro Forma Schedule of Investments (Unaudited)
STI Classic Funds Institutional Cash Management Fund
Crestar/Arbor Prime Obligations Fund
November 30, 1998
<CAPTION>
-------------------------------
STI Classic Institutional
Cash Management Fund
-------------------------------
- ------------------------------------------------------------------------------------------------------
Security Par (000) Value (000)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Motorola 4.950% 12/08/98 900 899
JC Penney Funding 5.250% 12/18/98 493 492
RTZ America 5.230% 12/16/98 5,200 5,189
RTZ America 5.000% 12/11/98 1,230 1,228
RTZ America 5.330% 01/21/99 100 99
RTZ America 5.350% 01/22/99 4,800 4,763
Sara Lee 5.000% 12/09/98 5,000 4,994
Smithkline Beecham 5.000% 12/02/98 300 300
Smithkline Beecham 4.950% 12/11/98 10,900 10,885
Toys R Us 5.250% 12/10/98 300 300
Walt Disney 5.550% 12/04/98 515 515
Walt Disney 4.460% 07/13/99
- ------------------------------------------------------------------------------------------------------
50,335
- ------------------------------------------------------------------------------------------------------
Utilities--0.0%
Bell Atlantic 5.000% 12/11/98 100 100
- ------------------------------------------------------------------------------------------------------
100
- ------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $485,209) 169,940
- ------------------------------------------------------------------------------------------------------
Corporate Obligations--19.7%
Finance--16.2%
Associates MTN 5.650% 12/01/98 1,000 1,000
Associates Corporation 6.750% 06/28/99
Bankers Trust, New York (A) 5.379% 02/19/99 7,000 7,000
Barclays Bank 5.645% 03/02/99
Bear Stearns 5.700% 03/02/99
Bear Stearns 5.715% 07/30/99
Beta Finance 4.850% 08/03/99
British Telecom Finance 9.375% 02/15/99 1,000 1,007
Caterpillar Financial Services MTN (A) 5.160% 05/09/99 5,000 5,000
Caterpillar Financial Services MTN 5.470% 12/15/98 750 750
Caterpillar Financial Services MTN 6.800% 07/01/99 250 253
CS First Boston 4.860% 07/12/99
Dean Witter Discover 5.030% 03/02/99 4,990 4,983
Deutsche Bank, New York (A) 5.120% 04/14/99 5,000 4,999
FCC National Bank (A) 5.120% 04/09/99 5,000 4,999
First Union Bank 5.430% 11/05/99
Ford Motor Credit 8.000% 01/15/99 1,000 1,003
Ford Motor Credit 6.375% 09/15/99 500 506
General Motors Acceptance 7.750% 01/15/99 500 501
GMAC MTN 7.150% 04/30/99 1,000 1,005
Household Finance 4.780% 03/15/99 3,000 2,992
IBM Credit 5.450% 09/15/99 10,000 10,000
International Lease Finance 5.750% 01/15/99 752 752
- ------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------ -------------------------------
Crestar/Arbor Prime
Obligations Fund Pro Forma Combined
------------------------------ -------------------------------
- -----------------------------------------------------------------------------------------------------------
Security Par (000) Value (000) Par (000) Value (000)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Motorola 900 899
JC Penney Funding 493 492
RTZ America 5,200 5,189
RTZ America 1,230 1,228
RTZ America 100 99
RTZ America 4,800 4,763
Sara Lee 5,000 4,994
Smithkline Beecham 300 300
Smithkline Beecham 10,900 10,885
Toys R Us 300 300
Walt Disney 515 515
Walt Disney 40,000 38,889 40,000 38,889
- -----------------------------------------------------------------------------------------------------------
38,889 89,224
- -----------------------------------------------------------------------------------------------------------
Utilities--0.0%
Bell Atlantic 100 100
- -----------------------------------------------------------------------------------------------------------
100
- -----------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $485,209) 354,158 524,098
- -----------------------------------------------------------------------------------------------------------
Corporate Obligations--19.7%
Finance--16.2%
Associates MTN 1,000 1,000
Associates Corporation 5,000 5,025 5,000 5,025
Bankers Trust, New York (A) 7,000 7,000
Barclays Bank 15,000 14,998 15,000 14,998
Bear Stearns 10,000 10,000 10,000 10,000
Bear Stearns 15,000 15,000 15,000 15,000
Beta Finance 25,000 25,000 25,000 25,000
British Telecom Finance 1,000 1,007
Caterpillar Financial Services MTN (A) 5,000 5,000
Caterpillar Financial Services MTN 750 750
Caterpillar Financial Services MTN 250 253
CS First Boston 15,000 15,000 15,000 15,000
Dean Witter Discover 4,990 4,983
Deutsche Bank, New York (A) 5,000 4,999
FCC National Bank (A) 5,000 4,999
First Union Bank 20,000 20,000 20,000 20,000
Ford Motor Credit 1,000 1,003
Ford Motor Credit 500 506
General Motors Acceptance 500 501
GMAC MTN 1,000 1,005
Household Finance 3,000 2,992
IBM Credit 10,000 10,000
International Lease Finance 752 752
- -----------------------------------------------------------------------------------------------------------
<PAGE>
Pro Forma Schedule of Investments (Unaudited)
STI Classic Funds Institutional Cash Management Fund
Crestar/Arbor Prime Obligations Fund
November 30, 1998
<CAPTION>
-------------------------------
STI Classic Institutional
Cash Management Fund
-------------------------------
- -------------------------------------------------------------------------------------------------
Security Par (000) Value (000)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Lease Finance 6.700% 04/30/99 300 302
International Lease Finance MTN 5.960% 07/07/99 500 500
Nationsbank 8.500% 03/01/99 1,000 1,006
Nationsbank 5.190% 08/06/99 10,000 10,010
PHH Corporation 4.860% 03/18/99
PNC Bank 4.800% 05/21/99
PNC Bank 4.790% 06/11/99
PNC Bank 5.116% 08/03/99 10,000 9,996
Salomon Smith Barney MTN 6.050% 12/17/98 2,000 2,001
Transamerica Financial 5.450% 10/22/99 13,500 13,500
Transamerica MTN (A) 5.427% 02/18/99 1,500 1,500
Xerox Credit 10.000% 04/01/99 780 790
- -------------------------------------------------------------------------------------------------
86,355
- -------------------------------------------------------------------------------------------------
Industrial--0.1%
Fortune Brands 7.500% 05/15/99 1,025 1,032
IBM MTN 6.150% 12/11/98 1,000 1,000
- -------------------------------------------------------------------------------------------------
2,032
- -------------------------------------------------------------------------------------------------
Utilities--0.7%
Alabama Power 7.000% 01/01/99 4,500 4,544
GTE Northwest 6.125% 02/15/99 650 650
Hydro-Quebec Yankee MTN 7.430% 12/14/98 1,000 1,001
Hydro-Quebec Yankee MTN 7.740% 03/03/99 1,000 1,005
Pacific Gas & Electric 5.750% 12/01/98 1,000 1,000
Southern California Edison 7.500% 04/15/99 505 508
Virginia Electric & Power 8.875% 06/01/99 450 457
Virginia Electric & Power MTN 9.650% 01/25/99 990 995
- -------------------------------------------------------------------------------------------------
10,160
- -------------------------------------------------------------------------------------------------
Total Corporate Bond (Cost $282,450) 98,547
- -------------------------------------------------------------------------------------------------
Certificates of Deposit--13.2%
Bankers Trust Company 4.850% 04/30/99
Bayerische Landesbank, New York (A) 5.108% 04/21/99 10,000 9,998
Commerzbank (A) 5.130% 04/14/99 10,000 9,999
CS First Boston 5.920% 12/14/99
Deutsche Bank, New York 5.640% 03/23/99 4,000 3,999
First Union Bank 5.660% 04/15/99
Key Bank 4.950% 12/16/98
Nations Bank 5.600% 12/21/98
Rabobank 5.750% 04/27/99 8,000 7,998
Societe Generale, New York 5.580% 02/10/99 2,000 2,000
Societe Generale, New York 5.800% 04/28/99 9,000 8,996
Societe Generale, New York 5.850% 12/17/98
- -------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------ --------------------------
Crestar/Arbor Prime
Obligations Fund Pro Forma Combined
------------------------------ --------------------------
- -----------------------------------------------------------------------------------------------------------
Security Par (000) Value (000) Par (000) Value (000)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Lease Finance 300 302
International Lease Finance MTN 500 500
Nationsbank 1,000 1,006
Nationsbank 10,000 10,010
PHH Corporation 10,000 10,000 10,000 10,000
PNC Bank 20,000 19,995 20,000 19,995
PNC Bank 10,000 9,996 10,000 9,996
PNC Bank 10,000 9,996
Salomon Smith Barney MTN 2,000 2,001
Transamerica Financial 13,500 13,500
Transamerica MTN (A) 1,500 1,500
Xerox Credit 780 790
- ----------------------------------------------------------------------------------------------------------
145,014 231,369
- ----------------------------------------------------------------------------------------------------------
Industrial--0.1%
Fortune Brands 1,025 1,032
IBM MTN 1,000 1,000
- ----------------------------------------------------------------------------------------------------------
- 2,032
- ----------------------------------------------------------------------------------------------------------
Utilities--0.7%
Alabama Power 4,500 4,544
GTE Northwest 650 650
Hydro-Quebec Yankee MTN 1,000 1,001
Hydro-Quebec Yankee MTN 1,000 1,005
Pacific Gas & Electric 1,000 1,000
Southern California Edison 505 508
Virginia Electric & Power 450 457
Virginia Electric & Power MTN 990 995
- ----------------------------------------------------------------------------------------------------------
- 10,160
- ----------------------------------------------------------------------------------------------------------
Total Corporate Bond (Cost $282,450) 145,014 243,561
- ----------------------------------------------------------------------------------------------------------
Certificates of Deposit--13.2%
Bankers Trust Company 10,000 9,998 10,000 9,998
Bayerische Landesbank, New York (A) 10,000 9,998
Commerzbank (A) 10,000 9,999
CS First Boston 5,000 5,000 5,000 5,000
Deutsche Bank, New York 4,000 3,999
First Union Bank 20,000 20,000 20,000 20,000
Key Bank 30,000 30,000 30,000 30,000
Nations Bank 30,000 30,000 30,000 30,000
Rabobank 8,000 7,998
Societe Generale, New York 2,000 2,000
Societe Generale, New York 9,000 8,996
Societe Generale, New York 15,000 15,000 15,000 15,000
- ----------------------------------------------------------------------------------------------------------
<PAGE>
Pro Forma Schedule of Investments (Unaudited)
STI Classic Funds Institutional Cash Management Fund
Crestar/Arbor Prime Obligations Fund
November 30, 1998
<CAPTION>
-------------------------------
STI Classic Institutional
Cash Management Fund
-------------------------------
- -------------------------------------------------------------------------------------------------------------------
Security Par (000) Value (000)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Societe Generale, New York 5.670% 03/11/99
Swiss Bank 5.750% 05/07/99
SBC Warburg, New York 5.650% 03/24/99 5,000 4,999
SBC Warburg, New York 5.810% 04/29/99 5,000 4,999
- -------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit (Cost $188,984) 52,988
- -------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities--4.3%
Americredit Auto Receivables Trust, Ser 1998-B Cl A1 5.638% 09/12/99 2,886 2,886
Americredit Auto Recievables Trust, Ser 1998-B Cl A1 5.629% 06/12/99 1,441 1,441
Americredit Auto Recievables Trust, Ser 1998-B Cl A1 5.199% 11/12/99 8,000 8,000
Arcadia Auto Receivables Trust, Ser 1998-B Cl A1 5.470% 02/16/99 13,197 13,197
Arcadia Auto Receivables Trust, Ser 1998-B Cl A1 5.628% 07/15/99 1,562 1,562
Household Automobile Revolving Trust, Ser 1998-1, Cl A1 5.330% 12/17/99 18,000 18,000
Case Equipment Loan Trust, Ser 1998-C Cl A1 5.420% 12/15/99 10,400 10,400
Chase Manhattan Auto Owner Trust, Ser 1999-B Cl A1 5.578% 05/10/99 778 778
Compass Auto Receivables Trust, Ser 1998-A Cl A1 5.659% 07/15/99 1,583 1,583
First Security Auto Owner Trust, Ser 1998-1 Cl A1 5.248% 11/15/99 2,344 2,344
Ford Credit Auto Owner Trust, Ser 1998-B Cl A1 5.615% 05/15/99 228 228
Union Acceptance, Ser 1998-C Cl A1 5.527% 10/08/99 1,685 1,685
- -------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities (Cost $62,104) 62,104
- -------------------------------------------------------------------------------------------------------------------
Insurance Funding Agreements--6.3%
General America Life GIC (A) 5.790% 12/01/98
Integrity Life Insurance GIC (A) 5.790% 12/01/98
- -------------------------------------------------------------------------------------------------------------------
Total Insurance Funding Agreements (Cost $90,000) -
- -------------------------------------------------------------------------------------------------------------------
Bank Notes--3.4%
American Express Centurion 5.223% 08/09/99 5,000 5,000
American Express Centurion (A) 5.169% 03/24/99 5,000 5,000
First National Bank, Chicago (A) 5.110% 04/19/99 10,000 9,998
Key Bank NA 5.160% 05/05/99 18,000 17,997
Northern Trust (A) 5.120% 04/09/99 10,000 9,999
- -------------------------------------------------------------------------------------------------------------------
Total Bank Notes (Cost $47,994) 47,994
- -------------------------------------------------------------------------------------------------------------------
U.S. Government Agency Obligations--4.1%
FFCB MTN (A) 4.540% 03/02/99 10,000 9,999
FHLB 5.030% 04/09/99 1,000 1,000
FHLMC REMIC, Ser 1314-JB 7.500% 02/15/06 789 789
FNMA 7.050% 12/10/98 110 110
FNMA 5.165% 03/15/99
SLMA, MTN (A) 5.000% 04/01/99 50,000 4,999
SLMA 4.780% 08/02/99 12,000 11,975
- -------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (Cost $58,424) 28,872
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------ -------------------------------
Crestar/Arbor Prime
Obligations Fund Pro Forma Combined
------------------------------ -------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Security Par (000) Value (000) Par (000) Value (000)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Societe Generale, New York 5,000 5,000 5,000 5,000
Swiss Bank 21,000 20,998 21,000 20,998
SBC Warburg, New York 5,000 4,999
SBC Warburg, New York 5,000 4,999
- -----------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit (Cost $188,984) 135,996 188,984
- -----------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities--4.3%
Americredit Auto Receivables Trust, Ser 1998-B Cl A1 2,886 2,886
Americredit Auto Recievables Trust, Ser 1998-B Cl A1 1,441 1,441
Americredit Auto Recievables Trust, Ser 1998-B Cl A1 8,000 8,000
Arcadia Auto Receivables Trust, Ser 1998-B Cl A1 13,197 13,197
Arcadia Auto Receivables Trust, Ser 1998-B Cl A1 1,562 1,562
Household Automobile Revolving Trust, Ser 1998-1, Cl A1 18,000 18,000
Case Equipment Loan Trust, Ser 1998-C Cl A1 10,400 10,400
Chase Manhattan Auto Owner Trust, Ser 1999-B Cl A1 778 778
Compass Auto Receivables Trust, Ser 1998-A Cl A1 1,583 1,583
First Security Auto Owner Trust, Ser 1998-1 Cl A1 2,344 2,344
Ford Credit Auto Owner Trust, Ser 1998-B Cl A1 228 228
Union Acceptance, Ser 1998-C Cl A1 1,685 1,685
- -----------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities (Cost $62,104) - 62,104
- -----------------------------------------------------------------------------------------------------------------------
Insurance Funding Agreements--6.3%
General America Life GIC (A) 45,000 45,000 45,000 45,000
Integrity Life Insurance GIC (A) 45,000 45,000 45,000 45,000
- -----------------------------------------------------------------------------------------------------------------------
Total Insurance Funding Agreements (Cost $90,000) 90,000 90,000
- -----------------------------------------------------------------------------------------------------------------------
Bank Notes--3.4%
American Express Centurion 5,000 5,000
American Express Centurion (A) 5,000 5,000
First National Bank, Chicago (A) 10,000 9,998
Key Bank NA 18,000 17,997
Northern Trust (A) 10,000 9,999
- -----------------------------------------------------------------------------------------------------------------------
Total Bank Notes (Cost $47,994) - 47,994
- -----------------------------------------------------------------------------------------------------------------------
U.S. Government Agency Obligations--4.1%
FFCB MTN (A) 10,000 9,999
FHLB 1,000 1,000
FHLMC REMIC, Ser 1314-JB 789 789
FNMA 110 110
FNMA 30,000 29,552 30,000 29,552
SLMA, MTN (A) 50,000 4,999
SLMA 12,000 11,975
- -----------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (Cost $58,424) 29,552 58,424
- -----------------------------------------------------------------------------------------------------------------------
<PAGE>
Pro Forma Schedule of Investments (Unaudited)
STI Classic Funds Institutional Cash Management Fund
Crestar/Arbor Prime Obligations Fund
November 30, 1998
<CAPTION>
-------------------------------
STI Classic Institutional
Cash Management Fund
-------------------------------
- -------------------------------------------------------------------------------------------------------------------
Security Par (000) Value (000)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Foreign Government Agency Obligation--0.2%
Province of Quebec 9.375% 04/01/99 2,200 2,228
- -------------------------------------------------------------------------------------------------------------------
Total Foreign Government Agency Obligation (Cost $2,228) 2,228
- -------------------------------------------------------------------------------------------------------------------
Municipal Bond--3.1%
Tampa Bay Devil Rays Limited 5.050% 12/01/99
- -------------------------------------------------------------------------------------------------------------------
Total Municipal Bond (Cost $45,000) -
- -------------------------------------------------------------------------------------------------------------------
Repurchase Agreements--12.9%
Barclays, 5.39%, dated 11/30/98, matures 12/01/98 68,692 68,692
Deutsche Bank, 5.39%, dated 11/30/98, matures 12/01/98 21,157 21,157
Greewich, 5.39%, dated 11/30/98, matures 12/01/98
Merrill Lynch, 5.39%, dated 11/30/98, matures 12/01/98 29,936 29,936
Morgan Stanley, 5.39%, dated 11/30/98, matures 12/01/98 5,000 5,000
PaineWebber, 5.39%, dated 11/30/98, matures 12/01/998
Salomon Brothers, 5.39%, dated 11/30/98, matures 12/01/98 17,455 17,455
- -------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $184,075) 142,240
- -------------------------------------------------------------------------------------------------------------------
Total Investments --101.0%
(Cost $1,446,468) 604,913
- -------------------------------------------------------------------------------------------------------------------
Other Asset and Liabilities --(1.0%) (17,463)
- -------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% 587,450
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Crestar/Arbor Prime
Obligations Fund Pro Forma Combined
-----------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Security Par (000) Value (000) Par (000) Value (000)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Foreign Government Agency Obligation--0.2%
Province of Quebec 2,200 2,228
- ---------------------------------------------------------------------------------------------------------------------
Total Foreign Government Agency Obligation (Cost $2,228) - 2,228
- ---------------------------------------------------------------------------------------------------------------------
Municipal Bond--3.1%
Tampa Bay Devil Rays Limited 45,000 45,000 45,000 45,000
- ---------------------------------------------------------------------------------------------------------------------
Total Municipal Bond (Cost $45,000) 45,000 45,000
- ---------------------------------------------------------------------------------------------------------------------
Repurchase Agreements--12.9%
Barclays, 5.39%, dated 11/30/98, matures 12/01/98 68,692 68,692
Deutsche Bank, 5.39%, dated 11/30/98, matures 12/01/98 21,157 21,157
Greewich, 5.39%, dated 11/30/98, matures 12/01/98 20,000 20,000 20,000 20,000
Merrill Lynch, 5.39%, dated 11/30/98, matures 12/01/98 16,949 16,949 46,885 46,885
Morgan Stanley, 5.39%, dated 11/30/98, matures 12/01/98 5,000 5,000
PaineWebber, 5.39%, dated 11/30/98, matures 12/01/998 4,886 4,886 4,886 4,886
Salomon Brothers, 5.39%, dated 11/30/98, matures 12/01/98 17,455 17,455
- --------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $184,075) 41,835 184,075
- --------------------------------------------------------------------------------------------------------------------
Total Investments --101.0%
(Cost $1,446,468) 841,555 1,446,468
- --------------------------------------------------------------------------------------------------------------------
Other Asset and Liabilities --(1.0%) 2,488 (14,975)
- --------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% 844,043 1,431,493
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on November 30, 1998. The date reported on the Statement
of Net Assets is the later of the date on which the security can be redeemed at
par or the next date on which the rate of interest is adjusted.
Cl-Class
FFCB-Federal Farm Credit Bank
FHLB-Federal Home Loan Bank
FHLMC-Federal Home Loan Mortgage Corporation
FNMA-Federal National Mortgage Association
GIC-Guaranteed Investment Contract
MTN-Medium Term Note
REMIC-Real Estate Mortgage Investment Conduit
Ser-Series
SLMA-Student Loan Marketing Association
<PAGE>
Pro Forma Statement of Assets and Liabilities (Unaudited)
STI Classic Funds Institutional Cash Management Fund
Crestar/Arbor Prime Obligations Fund
November 30, 1998
(000)
<TABLE>
<CAPTION>
Pro Forma
Combined STI
Classic
STI Classic Institutional
Institutional Crestar/Arbor Cash
Cash Management Prime Management
Money Market Obligations Pro Forma Money Market
Fund Fund Adjustments Fund
<S> <C> <C> <C> <C>
ASSETS
Total Investments at Amortized Cost Value (Cost $604,913,
$841,555 and $1,446,468) $604,913 $841,555 $1,446,468
Cash 8 0 8
Accrued Income 3,013 6,569 9,582
Other Assets 119 718 837
------------ --------------- -----------
Total Assets 608,053 848,842 1,456,895
------------ --------------- -----------
LIABILITIES
Accrued Expenses (130) (903) (1,033)
Income/Distribution Payable (2,473) (3,896) (6,369)
Payable for Investment Securities Purchased (18,000) 0 (18,000)
------------ --------------- -----------
Total Liabilities (20,603) (4,799) (25,402)
------------ --------------- -----------
NET ASSETS
Portfolio shares of the Institutional Class (unlimited
authorization - no par value) based on (587,451, 1,431,497)
outstanding shares of beneficial interest 587,451 0 844,046 (a) 1,431,497
Portfolio shares of the Trust Class (unlimited authorization -
no par value) based on 844,046 outstanding shares of
beneficial interest 0 844,046 (844,046)(a) 0
Distributions in excess of net investment income (1) (3) (4)
------------ --------------- -----------
Total Net Assets $587,450 $844,043 $0 $1,431,493
------------ --------------- ------------- -----------
------------ --------------- ------------- -----------
Net Asset Value, Offering and Redemption Price Per Share -
Institutional Shares $1.00 $1.00
------------ -----------
------------ -----------
Net Asset Value, Offering and Redemption Price Per Share -
Trust Shares $1.00
---------------
---------------
</TABLE>
<PAGE>
Pro Forma Statement of Operations (000) For the Period December 1, 1997 to
November 30, 1998
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Pro Forma Combined
STI Classic STI Classic
Institutional Cash Institutional Cash
Management Money Arbor Prime Management Money
Market Fund Obligations Fund Market Fund
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<S> <C> <C> <C> <C>
Interest Income $ 22,646 $ 43,631 $ 66,277
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Expenses:
Investment Advisory Fees 812 1,546 1 (b) 2,359
Less: Investment Advisory Fees Waived (326) (715) 618 (b) (423)
Administrator Fees 322 618 (78) (b) 862
Less: Administrator Fees Waived (82) (257) 103 (b) (236)
Transfer Agent Fees 8 232 (224)(b) 16
Transfer Agent Out of Pocket Fees 43 - 77 (b) 120
Printing Expenses 18 31 14 (b) 63
Custody Fees 10 259 (216)(b) 53
Professional Fees 8 25 24 (b) 57
Trustee Fees (2) - 12 (b) 10
Registration Fees 5 - 46 (b) 51
Insurance and Other Fees - 5 7 (b) 12
Amortization of Deferred Organization Costs - 3 - (b) 3
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Total Expenses 816 1,747 384 2,947
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Net Investment Income 21,830 41,884 63,330
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Net Realized Gain on Securities Sold - - -
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Increase in Net Assets Resulting From Operations $ 21,830 $ 41,884 $ 63,330
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Amounts designated as "--" are either $0 or have been rounded to $0.
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STI CLASSIC FUNDS/CRESTAR/ARBOR FUNDS
Notes to Pro Forma Financial Statements
November 30, 1998
1. BASIS OF COMBINATION
The unaudited Pro Forma Combining Schedule of Investments, Pro Forma Combining
Statements of Assets and Liabilities and Pro Forma Combining Statements of
Operations give effect to the proposed acquisition of the Arbor Prime
Obligations Fund by the STI Classic Institutional Cash Management Money Market
Fund. The proposed acquisition will be accounted for by the method of accounting
for tax free mergers of investment companies (sometimes referred to as the
pooling without restatement method). The acquisition will be accomplished by an
exchange of all outstanding shares of the Trust Class of the Arbor Prime
Obligations Fund in exchange for shares of the Institutional Class of the STI
Classic Institutional Cash Management Money Market Fund.
The pro forma combining statements should be read in conjunction with the
historical financial statements of the constituent funds and the notes thereto
incorporated by reference in the Statement of Additional Information.
The STI Classic Funds and the Arbor Funds are both, open-end, management
investment company registered under the Investment Company Act of 1940, as
amended.
PRO FORMA ADJUSTMENTS:
(a) The Pro Forma combining statements of assets and liabilities assume the
issuance of additional shares of the respective STI Classic Fund as if the
reorganization had taken place on November 30, 1998 and are based on the
net asset value of the acquiring fund. In addition, the Arbor Prime
Obligation Fund is the surviving fund for accounting purposes and
accordingly, while the legal entity surviving will be the STI Classic
Institutional Cash Management Fund, the performance history of the Arbor
Prime Obligation Fund will be carried forward..
(b) The Proforma adjustments reflect the impact of applying the contractual
fees in place for the legally surviving STI Classic Institutional Cash
Management Fund for Advisor, Administration and Distribution as well as the
expected savings in other expenses due to the combination of the funds.
