ANNUAL
- --------------------------------------------------------------------------------
FINANCIAL REPORT
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STI CLASSIC FUNDS
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A Family of Mutual Funds
- --------------------------------------------------------------------------------
Prime Quality Money Market Fund
Tax-Exempt Money Market Fund
Tax-Free Money Market Fund
U.S. Government Securities Money Market Fund
U.S. Treasury Money Market Fund
May 31, 1999
[logo omitted]
<PAGE>
STI Classic Prime Quality Money Market Fund
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The investment objective of the STI Classic Prime Quality Money Market Fund (the
"Fund") is to provide as high a level of current income as is consistent with
the preservation of capital and liquidity by investing exclusively in high
quality money market instruments. The investment discipline, which we use in
managing the Fund, emphasizes adding incremental value through yield curve,
sector and credit analysis. Investments are made in those sectors, credits, and
segments of the yield curve within the universe of money market eligible
securities, which offer the most attractive risk/reward trade-off and current
yield. The maturity structure and average maturity of the Fund are actively
managed to maximize the yield of the Fund based on the current market rates and
conditions and our market outlook.
The Federal reserve lowered the Federal Funds Rate three times between September
and November of last year. The three quarter of a percent drop in the Federal
Funds Rate led to a similar decrease in the yields for short-term money market
securities.
The Fund maintained an extended average maturity during most of the fiscal year
ending May 31, 1999. This strategy along with good security selection allowed
the fund to maximize its yield during a period of declining rates and provide a
very competitive return as compared to its peer money market funds.
/s/ David S. Yealy
--------------
David S. Yealy
Vice President
STI Classic Tax-Exempt Money Market Fund
----------------------------------------
The STI Classic Tax-Exempt Money Market Fund (the "Fund") seeks to provide as
high a level of current interest income exempt from regular federal income tax
as is consistent with preserving capital and liquidity. The Fund invests in high
quality, U.S. dollar-denominated municipal securities of issuers located in all
fifty states, the District of Columbia, and Puerto Rico.
During most of this period, the Fund maintained a longer average maturity. We
bought longer maturities when market conditions were advantageous in order to
maximize the yield of the Fund.
/s/ Mary F. Cernilli
----------------
Mary F. Cernilli
Vice President
1
<PAGE>
STI Classic Tax-Free Money Market Fund
--------------------------------------
The STI Classic Tax-Free Money Market Fund (the "Fund") is a new member of the
STI Classic mutual fund family, as the successor Fund to the former CrestFunds
Tax-Free Money Market Fund. CrestFunds merged into STI on May 24, 1999. The Fund
invests substantially all of its assets in money market instruments issued by
states and municipalities that are exempt from federal income taxes. At least
25% of the Fund's assets will be invested in money market instruments issued by
tax exempt entities located in Virginia. High quality and high liquidity are the
Fund's primary focus.
The past year was volatile for the economy and the money markets, as
policy-makers and investors successfully navigated potential significant
pitfalls. Tax-exempt money market yields ended the fiscal year somewhat lower
than at the beginning of the fiscal year, but rates were far from stable. The
Fund performed well in this changing environment, producing a 2.74% (Trust
Shares) return for the twelve months ended May 31, 1999.
Reviewing the past twelve months, the second half of 1998 was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Russia and Latin America fell victim to backlash, sending investors to the
safety of U.S. Treasury securities. The Federal Reserve cut interest rates three
times in an effort to restore liquidity to financial markets. Yields on one year
tax exempt securities fell from 3.7% to 3.0%.
The drop in yields occurred within a healthy domestic economy highlighted by low
unemployment and high consumer confidence. Municipalities generally enjoyed
strengthening credit ratings coming from fiscal surpluses, and many embarked on
a number of spending initiatives. This provided opportunities for increased
diversification and yield for the Fund.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America. In
addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on
news that world oil producers were acting together to reduce the global energy
glut. Bond investors, concerned about a possible pick up in future inflation,
began to worry that the Federal Reserve might raise interest rates. Interest
rates rose, with one year tax exempt yields rising to 3.3% by the end of the
fiscal year.
The outlook for the U.S. and world economies remains favorable based on current
reports, suggesting that credit quality can remain high over the near term.
Tight labor markets remain a concern for the inflation-wary Fed, and interest
rates could face additional upward pressure over the near term. However, the
longer-term outlook for inflation is favorable in our view, and interest rates
may head lower following some near-term tightness. The STI Classic Tax-Free
Money Market Fund will continue to emphasize high-quality, current, tax free
income for our shareholders.
/s/ Robert S. Bowman
---------------------
Robert S. Bowman, CFA
Vice President
2
<PAGE>
STI Classic U.S. Government Securities Money Market Fund
--------------------------------------------------------
The investment objective of the STI Classic U.S. Government Securities Money
Market Fund (the "Fund") is to provide as high a level of current income as is
consistent with the preservation of capital and liquidity by investing
exclusively in money market eligible securities. Eligible securities include
U.S. Treasury securities, U.S. Government Subsidiary Corporation securities that
are backed by the full faith and credit of the U.S. Government, and repurchase
agreements ("repos") collateralized by U.S. Treasury obligations and U.S.
Government Subsidiary Corporation securities. The investment discipline, which
is used in managing the Fund, emphasizes adding incremental value through yield
curve analysis. The maturity structure and average maturity of the Fund are
actively managed to maximize the yield of the Fund over time based on the
current market rates and conditions and our market outlook.
The Federal reserve lowered the Federal Funds Rate three times between September
and November of last year. The three quarter of a percent drop in the Federal
Funds Rate led to a similar decrease in the yields for short-term money market
securities.
The Fund was able to provide a competitive return as compared to its peer money
market funds during the fiscal year ending May 31, 1999 by purchasing
longer-term money market securities from time to time in order to minimize the
impact from falling rates.
/s/ David S. Yealy
--------------
David S. Yealy
Vice President
3
<PAGE>
STI Classic U.S. Treasury Money Market Fund
-------------------------------------------
The STI Classic U.S. Treasury Money Fund (the "Fund") is a new member of the STI
Classic mutual fund family, as the successor Fund to the former CrestFunds U.S.
Treasury Money Fund. CrestFunds merged into STI on May 24, 1999. The Fund
invests solely in short term U.S. Treasury securities and repurchase agreements
backed by U.S. Treasury securities. The Fund has a maximum average maturity of
60 days or less, and has received a AAA rating from Standard and Poor's
Corporation, a nationally recognized rating agency.
The past year was volatile for the economy and the money markets, as
policy-makers and investors successfully navigated potential significant
pitfalls. Treasury bill yields ended the fiscal year approximately one-half
percentage point lower than at the beginning of the fiscal year, but rates were
far from stable. The Fund performed well in this changing environment, producing
a 4.5% return for the twelve months ended May 31, 1999. This return placed the
Fund in the top 36% of similar money market funds according to Lipper Analytical
Services.
Reviewing the past twelve months, the second half of 1998 was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Russia and Latin America fell victim to backlash, sending investors to the
safety of U.S. Treasury securities. The Federal Reserve cut interest rates three
times in an effort to restore liquidity to financial markets. Yields on 3-month
Treasury bills fell from 5.1% to 3.6%.
The drop in yields occurred within a healthy domestic economy highlighted by low
unemployment and high consumer confidence. Sectors benefiting from lower rates
such as housing and autos surged. By the first quarter of 1999, glimmers of
economic hope began to appear for battered economies in the Pacific rim region
as well as in Latin America. In addition, oil prices, which plummeted to under
$11/barrel, jumped over 70% on news that world oil producers were acting
together to reduce the global energy glut. Bond investors, concerned about a
possible pick up in future inflation, began to worry that the Federal Reserve
might raise interest rates. Interest rates rose, with 3-month Treasury yields
rising to 4.6% by the end of the fiscal year.
The outlook for the U.S. and world economies remains favorable based on current
reports, suggesting that credit quality can remain high over the near term.
Tight labor markets remain a concern for the inflation-wary Fed, and interest
rates could face additional upward pressure over the near term. However, the
longer-term outlook for inflation is favorable in our view, and interest rates
may head lower following some near-term tightness.
/s/ Robert S. Bowman
---------------------
Robert S. Bowman, CFA
Vice President
4
<PAGE>
STATEMENT OF NET ASSETS
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STI CLASSIC FUNDS May 31, 1999
Prime Quality Money Market Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Commercial Paper (44.7%)
Finance (19.3%)
ABN-AMRO
4.880%, 10/18/99 $147,000 $144,230
AI Credit
4.900%, 06/01/99 50,000 50,000
Allstate
4.930%, 06/01/99 1,435 1,435
Associates
4.800%, 06/14/99 35,000 34,939
Bank of Montreal
4.810%, 07/19/99 75,000 74,519
BankAmerica
4.830%, 10/27/99 50,000 49,007
Credit Suisse First Boston
4.860%, 07/12/99 1,000 994
Den Norske Bank
4.900%, 07/07/99 800 796
4.860%, 08/10/99 20,000 19,811
Ford Motor Credit
4.750%, 11/03/99 25,000 24,489
General Electric Capital
4.800%, 06/11/99 80,000 79,889
4.800%, 06/14/99 2,000 1,997
4.820%, 07/16/99 3,600 3,578
4.730%, 08/19/99 20,000 19,792
4.740%, 12/01/99 25,000 24,398
General Motors Acceptance
4.670%, 10/20/99 55,000 53,994
Goldman Sachs
4.770%, 09/17/99 25,000 24,642
4.910%, 10/21/99 99,000 97,083
GTE Funding
4.830%, 06/02/99 21,560 21,557
4.800%, 06/03/99 3,200 3,199
J.P. Morgan
4.820%, 07/15/99 2,425 2,411
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Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Marsh & McClennan
4.900%, 06/03/99 $ 50,000 $ 49,986
Merrill Lynch
4.820%, 06/17/99 40,000 39,914
Paccar
4.850%, 06/23/99 325 324
Progress Capital
4.930%, 06/01/99 5,691 5,691
4.810%, 06/02/99 4,812 4,811
Sigma Finance
4.850%, 06/01/99 1,070 1,070
4.900%, 08/10/99 7,273 7,204
Sony Capital
4.930%, 06/03/99 41,025 41,014
Ubs Finance
4.980%, 10/05/99 17,130 16,831
4.890%, 12/13/99 8,815 8,582
4.780%, 12/20/99 25,000 24,329
--------
932,516
--------
Industrial (24.4%)
Albertson's
4.800%, 06/07/99 18,200 18,185
Allied Signal
4.890%, 06/08/99 23,432 23,410
Allstate
4.830%, 07/22/99 25,000 24,829
Arco
4.840%, 06/11/99 20,000 19,973
4.820%, 06/29/99 8,200 8,169
4.810%, 07/21/99 25,000 24,833
AT&T
4.810%, 07/28/99 120,000 119,086
Becton Dickinson
4.870%, 07/19/99 504 501
BP America
4.920%, 06/01/99 53,845 53,845
5
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Prime Quality Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Caterpillar
4.810%, 07/13/99 $20,000 $19,888
4.900%, 09/09/99 28,100 27,718
Daimler Chrysler
4.720%, 07/15/99 35,000 34,798
Dupont (EI) de Nemour
4.800%, 11/16/99 25,000 24,440
Eastman Kodak
4.810%, 08/23/99 4,871 4,817
4.840%, 09/13/99 27,600 27,214
4.840%, 09/23/99 53,300 52,483
Edison International
4.820%, 08/02/99 50,000 49,585
4.850%, 08/16/99 85,000 84,130
Exxon Asset
4.910%, 06/02/99 80,000 79,989
Exxon Imperial
4.890%, 06/03/99 20,000 19,995
4.890%, 06/04/99 50,000 49,980
4.880%, 06/11/99 6,500 6,491
Ford Motor
4.950%, 06/03/99 3,400 3,399
4.850%, 07/26/99 1,525 1,514
4.850%, 07/27/99 2,800 2,779
General Electric
4.820%, 06/04/99 2,800 2,799
4.820%, 06/07/99 2,000 1,998
4.820%, 06/10/99 6,300 6,292
4.820%, 06/11/99 1,500 1,498
4.810%, 06/18/99 2,715 2,709
4.850%, 07/06/99 4,500 4,479
4.830%, 07/16/99 3,600 3,578
4.830%, 07/28/99 17,900 17,762
4.890%, 08/13/99 1,000 990
Golden Peanut
4.860%, 09/01/99 5,000 4,938
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
International Lease
4.900%, 06/01/99 $ 8,474 $ 8,474
J.C. Penney
4.930%, 06/11/99 3,200 3,196
5.040%, 07/29/99 20,000 19,841
New York Times
4.850%, 06/11/99 4,550 4,544
4.850%, 06/25/99 1,000 997
PPG Industries
4.850%, 06/11/99 400 399
Rio Tinto
4.840%, 06/14/99 23,400 23,359
4.850%, 06/16/99 5,919 5,907
4.850%, 06/17/99 11,700 11,675
4.810%, 07/06/99 20,000 19,906
4.810%, 07/16/99 5,700 5,666
4.850%, 08/17/99 38,085 37,690
Sara Lee
4.900%, 06/03/99 2,190 2,189
SmithKline Beecham
4.930%, 06/01/99 2,470 2,470
South Carolina
4.810%, 06/03/99 16,925 16,920
4.830%, 06/11/99 9,642 9,629
4.820%, 06/18/99 5,400 5,388
4.850%, 06/29/99 1,565 1,559
Southern California Edison
4.850%, 07/06/99 10,000 9,953
4.840%, 08/17/99 9,570 9,471
St. Paul
4.900%, 06/01/99 29,640 29,640
4.800%, 06/11/99 10,000 9,987
4.800%, 06/17/99 20,000 19,957
Toys "R" Us
4.820%, 06/01/99 14,273 14,273
6
<PAGE>
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- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Unilever
4.910%, 06/01/99 $ 9,575 $ 9,575
Walt Disney
4.460%, 07/13/99 60,000 59,688
Xerox
4.920%, 06/01/99 3,158 3,158
4.850%, 06/24/99 494 492
----------
1,175,097
----------
Utilities (1.0%)
BellSouth
4.930%, 06/04/99 1,130 1,130
Consolidated Natural Gas
4.870%, 06/08/99 3,107 3,104
Georgia Power
4.810%, 07/19/99 39,300 39,048
GTE
4.910%, 06/02/99 3,032 3,032
Southwestern Pub
4.870%, 06/25/99 900 897
----------
47,211
----------
Total Commercial Paper
(Cost $2,154,824) 2,154,824
----------
Corporate Obligations (24.7%)
Finance (21.5%)
American Express Centurion
Bank Note (C)
4.990%, 06/01/99 50,000 50,000
5.060%, 06/01/99 35,000 35,000
American Express Credit
8.500%, 06/15/99 1,500 1,502
American General
8.000%, 02/15/00 5,993 6,112
American General, MTN
6.350%, 10/29/99 5,000 5,026
6.190%, 11/08/99 5,000 5,024
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
American International
Group, MTN
6.050%, 11/01/99 $10,000 $10,040
Associates
6.625%, 07/15/99 7,350 7,364
7.250%, 09/01/99 350 352
8.250%, 12/01/99 3,000 3,045
Associates (C)
4.890%, 06/01/99 50,000 49,994
Associates, MTN
6.750%, 06/28/99 5,500 5,505
7.550%, 07/15/99 4,000 4,012
6.125%, 11/12/99 4,000 4,017
Bear Stearns, MTN
5.715%, 07/30/99 20,000 20,000
Bear Stearns, Ser B, MTN
5.300%, 03/09/00 20,000 20,000
Beneficial, MTN
6.650%, 10/11/99 3,300 3,318
8.100%, 11/09/99 1,600 1,621
7.180%, 12/20/99 2,500 2,528
Beneficial, MTN (C)
5.117%, 08/27/99 3,000 3,001
5.100%, 09/01/99 40,000 40,045
Beta Finance (A)
5.200%, 03/01/00 50,000 49,944
Beta Finance, MTN
6.250%, 02/18/00 631 634
Chrysler Financial
12.750%, 11/01/99 5,000 5,155
9.500%, 12/15/99 22,000 22,506
Chrysler Financial, MTN
6.280%, 06/21/99 8,280 8,286
6.280%, 06/23/99 5,000 5,004
6.160%, 07/28/99 1,000 1,001
6.375%, 01/28/00 17,000 17,137
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Prime Quality Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Credit Suisse First Boston
International (C)
5.425%, 06/02/99 $25,000 $25,000
Credit Suisse First Boston
International Gue, MTN (A)
5.400%, 03/20/00 50,000 50,000
CS First Boston (A)
5.290%, 03/20/00 15,000 15,000
CS First Boston (C)
4.860%, 06/01/99 25,000 25,000
Export Development, MTN
8.625%, 03/24/00 3,000 3,075
First Union National Bank (C)
5.020%, 08/19/99 30,000 30,000
Ford Motor Credit
6.375%, 09/15/99 1,500 1,505
Ford Motor Credit, MTN
5.730%, 02/23/00 4,750 4,771
Ford Motor Credit, MTN (C)
5.220%, 08/01/99 6,000 6,007
General Motors Acceptance
7.125%, 06/01/99 5,000 5,000
8.625%, 06/15/99 480 481
8.400%, 10/15/99 5,000 5,058
7.000%, 03/01/00 1,500 1,520
General Motors Acceptance (A)
6.500%, 01/17/00 1,750 1,764
General Motors Acceptance, MTN
6.150%, 09/20/99 6,060 6,080
8.625%, 01/10/00 10,000 10,209
6.250%, 01/11/00 2,100 2,115
7.500%, 06/09/00 1,650 1,683
General Motors
Acceptance, MTN (C)
4.960%, 06/01/99 7,500 7,495
Goldman Sachs Group, MTN (A)
5.280%, 02/24/00 25,000 25,000
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Household Finance
7.625%, 06/15/99 $ 5,800 $ 5,805
Household Finance, MTN
7.280%, 07/22/99 2,500 2,507
Household International,
MTN (C)
5.080%, 07/22/99 15,000 15,004
IBM Credit
5.680%, 07/07/99 1,000 1,001
IBM Credit, MTN (C)
4.950%, 06/15/99 40,000 40,000
International Lease Finance
6.375%, 01/18/00 5,000 5,039
John Deere Capital, MTN
6.430%, 08/09/99 2,000 2,005
J.P. Morgan
5.700%, 02/15/00 2,000 2,004
J.P. Morgan (C)
4.990%, 06/24/99 60,000 59,997
J.p. Morgan, MTN (C)
5.060%, 06/01/99 80,000 80,000
Merrill Lynch (C)
5.090%, 06/01/99 60,000 60,000
Merrill Lynch, MTN (C)
4.990%, 08/05/99 5,000 4,999
5.450%, 08/16/99 10,000 10,019
National City Capital
6.750%, 06/01/99 30,050 30,050
Nationsbank, MTN (C)
5.030%, 06/02/99 28,000 28,006
5.060%, 06/03/99 13,000 13,004
5.066%, 06/03/99 10,000 10,000
NYNEX Capital Funding, MTN
7.640%, 07/19/99 2,000 2,006
Paccar Financial, MTN
6.110%, 12/15/99 5,000 5,027
6.570%, 12/15/99 5,000 5,039
8
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Pitney Bowes, MTN
6.540%, 07/15/99 $ 2,025 $ 2,028
PNC Bank, (C)
4.790%, 06/01/99 20,000 20,000
Teco Finance, MTN (A)
7.140%, 11/19/99 12,000 12,111
Texaco Capital
6.875%, 07/15/99 1,000 1,002
9.450%, 03/01/00 1,600 1,651
Transamerica Finance, MTN
8.750%, 10/01/99 1,000 1,012
5.970%, 12/06/99 1,500 1,506
7.570%, 12/09/99 1,000 1,012
Transamerica Finance, MTN (C)
5.250%, 07/22/99 750 750
----------
1,036,520
----------
Industrial (2.6%)
American Home Products
7.700%, 02/15/00 10,520 10,707
Anheuser Busch
8.750%, 12/01/99 12,150 12,366
AT&T, MTN
8.250%, 01/11/00 5,000 5,090
Ford
9.250%, 03/01/00 7,000 7,203
General Mills
6.820%, 10/29/99 5,250 5,286
May Department Stores, MTN
9.560%, 12/01/99 1,000 1,022
Mobil Oil
9.170%, 02/29/00 3,833 3,907
Philip Morris
6.000%, 11/15/99 2,300 2,305
Philip Morris (C)
6.150%, 09/16/99 52,460 52,776
Shell Oil
6.625%, 07/01/99 630 631
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
United Technologies, MTN
8.300%, 12/15/99 $ 2,000 $ 2,034
Wal-Mart
6.125%, 10/01/99 660 662
5.650%, 02/01/00 22,000 22,073
---------
126,062
---------
Utilities (0.6%)
Duke Energy
8.000%, 11/01/99 5,330 5,392
GTE Southwest
5.820%, 12/01/99 5,900 5,922
Province of Quebec
9.125%, 03/01/00 12,500 12,859
Southern California Edison
6.750%, 01/15/00 2,000 2,019
8.250%, 02/01/00 3,500 3,571
---------
29,763
---------
Total Corporate Obligations
(Cost $1,192,345) 1,192,345
---------
Asset Backed Securities (5.2%)
Americredit Auto Receivables Trust,
Ser 1998-B, Cl A1
5.199%, 11/12/99 8,644 8,645
Americredit Auto Receivables Trust,
Ser 1999-A Cl A1
4.980%, 03/12/00 11,259 11,259
Americredit Auto Receivables Trust,
Ser 1999-B, Cl A1
4.917%, 06/12/00 23,000 23,000
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Prime Quality Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Arcadia Auto Receivables Trust,
Ser 1998-D, Cl A1
5.482%, 12/15/99 $ 383 $ 384
Arcadia Auto Receivables Trust,
Ser 1999-A, Cl A1
4.960%, 03/15/00 18,662 18,663
Case Equipment Loan Trust,
Ser 1998-C, Cl A1
5.420%, 12/15/99 4,017 4,018
First Security Auto Owner Trust,
Ser 1999-2, Cl A1
5.015%, 06/15/00 90,000 90,000
Honda Auto Receivables Owner
Trust, Ser 1999-1, Cl A1
4.974%, 02/15/00 14,188 14,188
Household Automobile Revolving
Trust, Ser 1998-1, Cl A1
5.330%, 12/17/99 9,073 9,073
Key Auto Finance Trust,
Ser 1999-1, Cl A1
4.960%, 04/15/00 12,040 12,041
MMCA Automobile Trust,
Ser 1999-1, Cl A1
5.066%, 01/15/00 12,065 12,065
Onyx Acceptance Auto Trust,
Ser 1999-B, Cl A1
4.930%, 05/15/00 17,000 17,000
Union Acceptance,
Ser 1999-A, Cl A1
4.980%, 03/08/00 8,659 8,659
Union Acceptance,
Ser 1999-B, Cl A1
4.960%, 06/08/00 22,000 22,000
-------
Total Asset Backed Securities
(Cost $250,995) 250,995
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Bank Notes (2.5%)
American Express Centurion (A) (C)
4.841%, 06/09/99 $ 5,000 $ 5,000
First Union Bank Note (C)
5.040%, 06/01/99 75,000 74,986
First USA
6.500%, 12/23/99 2,200 2,217
Inter-American Development
9.500%, 04/11/00 760 785
Nationsbank
4.880%, 10/18/99 35,000 35,000
--------
Total Bank Notes
(Cost $117,988) 117,988
--------
Certificates of Deposit (6.9%)
Bayerische Hypo
5.270%, 03/03/00 50,000 49,962
Bayerische Landesbank
4.830%, 06/21/99 100,000 100,000
Bear Stearns, MTN (C)
5.029%, 06/18/99 15,000 15,000
Branch Banking and Trust (C)
5.060%, 06/01/99 50,000 49,990
Canadian Imperial Bank
5.120%, 02/23/00 50,000 49,982
Commerzbank AG
5.160%, 02/25/00 22,000 21,991
PNC Bank N.A. (C)
4.779%, 06/03/99 15,000 14,998
Toronto Dominion Bank
5.270%, 03/03/00 30,000 29,977
--------
Total Certificates of Deposit
(Cost $331,900) 331,900
--------
10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Insurance Funding Agreements (5.6%)
General American Life
Insurance, GIC (C) (F)
5.130% $160,000 $160,000
Integrity Life Insurance,
GIC (C) (F)
5.130% 110,000 110,000
--------
Total Insurance Funding Agreements
(Cost $270,000) 270,000
--------
U.S. Government Agency Obligations (1.7%)
FHLMC
4.935%, 06/04/99 15,000 14,994
FNMA
4.680%, 06/10/99 65,000 64,924
SLMA, Ser 1996-3, Cl A1 (C)
5.115%, 06/02/99 2,525 2,510
SLMA, Ser 1996-4, Cl A1 (C)
5.105%, 06/02/99 909 909
--------
Total U.S. Government Agency
Obligations
(Cost $83,337) 83,337
--------
Repurchase Agreements (9.7%)
Barclays
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$20,023,992 (collateralized
by FHLB, FHLMC and FNMA
obligations: total market
value $20,418,104) (B) 20,013 20,013
Deutsche Bank
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$75,060,980 (collateralized by
FHLMC obligation: total
market value $76,521,219) (B) 75,021 75,021
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Merrill Lynch
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$139,825,303 (collateralized by
various GNMA obligations:
total market value
$142,547,920) (B) $ 139,750 $ 139,750
J.P. Morgan
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$121,360,378 (collateralized
by various FNMA obligaions:
total market value
$123,721,327) (B) 121,295 121,295
Salomon Brothers
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$90,056,124 (collateralized by
various FHLMC and FNMA
obligations: total market
value $91,908,156) (B) 90,008 90,008
Swiss
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$20,040,207 (collateralized by
FNMA obligation: total market
value $20,430,541) (B) 20,030 20,030
----------
Total Repurchase Agreements
(Cost $466,117) 466,117
----------
Total Investments (101.0%)
(Cost $4,867,506) 4,867,506
----------
Other Assets and Liabilities, Net (-1.0%) (46,174)
----------
11
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Prime Quality Money Market Fund--concluded
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 3,903,658,704
outstanding shares of beneficial interest $3,903,579
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 918,111,878
outstanding shares of beneficial interest 918,144
Overdistributed net investment income (43)
Accumulated net realized loss
on investments (348)
----------
Total Net Assets 100.0% 4,821,332
==========
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 31.
12
<PAGE>
- --------------------------------------------------------------------------------
Tax-Exempt Money Market Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (99.4%)
Alabama (1.9%)
Special Care Facilities, Montgomery
Hospital, RB, VRDN
(FGIC) (C) (D)
3.350%, 06/03/99 $ 1,120 $ 1,120
University of Alabama, Birmingham
Hospital, Ser A, RB, VRDN (C)
3.300%, 06/02/99 13,220 13,220
-------
14,340
-------
Alaska (1.0%)
Alaska State Housing Finance
Authority, Ser C, GO (C)
3.350%, 06/02/99 7,870 7,870
-------
Arizona (1.0%)
City of Mesa, TECP
3.300%, 10/06/99 5,000 5,000
State, Educational Loan Marketing,
Ser A, RB, VRDN, AMT (C)
3.300%, 06/02/99 2,500 2,500
-------
7,500
-------
Arkansas (0.1%)
State, Development Financial
Authority, Potlatch Projects,
Ser A, RB, VRDN,
AMT (C) (D) (E)
3.450%, 06/02/99 1,000 1,000
-------
California (0.7%)
State, Higher Educational Loan
Authority, Student Loan
Revenue, Ser D-2, RB
3.650%, 04/01/00 5,000 5,000
-------
Colorado (1.1%)
Cherry Creek, South Metropolitan
District Number 1, GO, VRDN (C)
3.250%, 06/03/99 1,350 1,350
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Lowry Economic, Redevelopment
Authority, Ser B, RB, VRDN (C)
3.250%, 06/02/99 $2,000 $2,000
Smith Creek, Metropolitan District,
RB, VRDN (C)
3.300%, 06/03/99 5,300 5,300
------
8,650
------
Delaware (0.2%)
State, Educational Development
Authority, RB, VRDN (C) (D) (E)
3.625%, 06/03/99 1,875 1,875
------
District of Columbia (0.1%)
Metropolitan Airports Authority,
Ser B, RB, AMT
4.000%, 10/01/99 1,000 1,002
------
Florida (7.6%)
Citrus Park, Community
Development, RB, VRDN
(C) (D) (E)
3.350%, 06/02/99 1,500 1,500
Dade County, Aviation Revenue,
Ser B, RB (AMBAC)
5.600%, 10/01/99 750 756
Dade County, Aviation Revenue,
Ser C, RB (MBIA)
5.000%, 10/01/99 5,160 5,194
Dade County, Water & Sewer
System, Ser 1994, RB, VRDN
(FGIC) (C) (D)
3.150%, 06/02/99 8,000 8,000
Hillsborough County, Industrial
Development Authority, Pollution
Control Revenue, Tampa Electric
Project, RB, VRDN, AMT (C)
3.500%, 06/01/99 1,100 1,100
13
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Exempt Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Jacksonville, TECP
2.950%, 06/10/99 $4,100 $ 4,100
Palm Beach County, Jewish
Community Campus Corporation,
VRDN, RB (AMBAC) (C) (E)
3.200%, 06/02/99 4,000 4,000
Palm Beach County, RB, VRDN (C)
3.300%, 06/03/99 1,000 1,000
State, Housing Financial Agency,
Heron Park Project, Ser U, RB,
VRDN, AMT (C) (E)
3.450%, 06/02/99 1,190 1,190
State, Local Government Pooled
Loan Program, TECP
3.050%, 06/08/99 4,810 4,810
3.000%, 06/10/99 4,000 4,000
State, RB, VRDN (C)
3.320%, 06/03/99 5,295 5,295
St. Lucie County, Pollution
Control, TECP
3.000%, 06/09/99 6,500 6,500
2.950%, 06/10/99 5,000 5,000
University of North Florida
Foundation, Parking System,
RB, VRDN (C)
3.300%, 06/03/99 6,000 6,000
-------
58,445
-------
Georgia (6.4%)
Conyers-Rockdale-Big Haynes,
Impoundment Authority
Revenue, RB, VRDN (C)
3.250%, 06/02/99 3,000 3,000
Fulton County, Industrial
Development Authority,
American Red Cross Project,
RB, VRDN (C) (D) (E)
3.300%, 06/03/99 1,200 1,200
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Gordon County, Development
Authority, Sara Lee Corporation, RB,
VRDN (C) (D)
3.300%, 06/03/99 $ 1,400 $ 1,400
Lafayette, Industrial Development
Authority, Blue-Bird Project,
Ser 1991, RB, VRDN (C) (D) (E)
3.300%, 06/03/99 1,000 1,000
Metropolitan Atlanta, Rapid Transit
Authority, Georgia Sales Tax
Revenue, RB, VRDN (C)
3.320%, 06/03/99 10,000 10,000
Monroe County, Industrial
Development Authority, Forsyth
Inns Project, RB,
VRDN (C) (D) (E)
3.350%, 06/02/99 2,425 2,425
Putnam County, Development
Authority, Pollution Control,
RB, VRDN (C)
3.350%, 06/01/99 1,700 1,700
State, RB, VRDN (C)
3.320%, 06/03/99 10,545 10,545
State, Ser E, GO
4.000%, 02/01/00 5,600 5,637
State, Municipal Electric Authority,
RB, VRDN (C) (D) (E)
3.300%, 06/02/99 4,000 4,000
State, Municipal Gas Authority,
Portfolio II Project, Ser A,
RB, VRDN (C)
3.150%, 06/02/99 6,625 6,625
Summerville, Development
Authority, Ser 1997, RB,
VRDN, AMT (C) (E)
3.350%, 06/10/99 2,000 2,000
-------
49,532
-------
14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Hawaii (3.1%)
Hawaii State Highway, RB,
VRDN (C) (E)
3.320%, 06/03/99 $19,790 $19,790
State, GO, VRDN (MBIA) (C)
3.320%, 06/02/99 4,260 4,260
-------
24,050
-------
Idaho (0.9%)
Nez Pierce County, Pollution
Control, Potlatch Project, RB,
VRDN (C) (D) (E)
3.350%, 06/02/99 2,000 2,000
3.350%, 06/03/99 1,000 1,000
State, TRAN
4.500%, 06/30/99 4,000 4,003
-------
7,003
-------
Illinois (8.3%)
Bloomington, Airport Authority,
GO, VRDN (C) (D) (E)
3.300%, 06/02/99 1,300 1,300
Chicago, Airport Facilities,
Centerpoint O'Hare,
International Airport Project,
RB, VRDN, (C) (E)
3.400%, 06/02/99 3,500 3,500
Chicago, Industrial Development
Midwest Project, RB,
VRDN, (C) (E)
3.420%, 06/03/99 2,055 2,055
Chicago, O'Hare International
Airport, RB, VRDN (C) (D) (E)
3.350%, 07/01/99 1,840 1,840
Chicago, Single-Family Mortage,
RB, VRDN, AMT (B) (C)
3.100%, 09/01/99 5,595 5,595
Lockport, Industrial Development
Panduit Project, RB,
VRDN (C) (E)
3.350%, 06/02/99 2,000 2,000
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Savannah, Industrial Development
Authority, Metform Project,
Ser A, RB, VRDN (C) (D) (E)
3.400%, 06/02/99 $1,900 $1,900
State, Chicago Illinois Sales Tax,
RB (FGIC)
4.000%, 01/01/00 1,875 1,885
State, Development Financial
Authority, Derby Project, RB,
VRDN, AMT (C) (D) (E)
3.500%, 06/02/99 900 900
State, Development Financial
Authority, Pollution Control,
Illinois Power, Ser A, RB,
VRDN (C) (E)
3.400%, 06/02/99 5,000 5,000
State, Educational Facilities
Authority, Chicago Children's
Museum, RB, VRDN (C) (D) (E)
3.250%, 06/02/99 1,600 1,600
State, Educational Facilities
Authority, Museum of Science
and Industry, RB, VRDN (C) (E)
3.250%, 06/03/99 5,600 5,600
State, Educational Facilities
Authority, RB, VRDN, (C) (E)
3.370%, 06/03/99 9,900 9,903
State, Health Facilities Authority,
Advocate Healthcare, Ser B,
RB, VRDN (C) (D)
3.300%, 06/02/99 2,900 2,900
State, Health Facilities Authority,
Proctor Hospital Project,
RB, VRDN (C)
3.250%, 06/02/99 5,400 5,400
15
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Exempt Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Health Facilities Authority,
Streeterville Corporation,
RB, VRDN (C) (D) (E)
3.250%, 06/02/99 $2,000 $ 2,000
State, Health Facilities Authority,
Streeterville Corporation,
Ser A, RB, VRDN (C) (E)
3.250%, 06/02/99 3,500 3,500
State, Health Facilities Authority,
University of Chicago Hospital
Project, Ser C, RB, VRDN
(MBIA) (C) (D)
3.200%, 06/02/99 4,000 4,000
Wheeling, Industrial Development
Circuit Service Project, RB,
VRDN (C) (E)
3.420%, 06/03/99 2,800 2,800
-------
63,678
-------
Indiana (4.0%)
Elkhart County, Economic
Development, Godfrey Conveyor,
RB, VRDN, AMT (C)
3.500%, 06/02/99 1,900 1,900
Elkhart County, Economic
Development, Holly Park, RB,
AMT, VRDN (C) (D) (E)
3.500%, 06/02/99 2,100 2,100
Fort Wayne, Economic Development
Authority, ND Tech Project, RB,
VRDN, AMT (C) (D) (E)
3.400%, 06/02/99 1,000 1,000
Indiana State, Educational Facilities
Authority, Indiana Wesleyan
Project, Ser B, RB, VRDN (C)
3.300%, 06/01/99 2,500 2,500
Indianapolis, Industrial Economic
Development Authority, Allied
Signal, RB, VRDN (C) (D)
3.400%, 06/02/99 3,500 3,500
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Indianapolis, Local Public
Improvements, Ser G, RB
3.500%, 08/15/99 $5,000 $5,005
Indianapolis, Local Public
Improvements, Ser B, RB (MBIA)
3.350%, 06/01/00 1,550 1,550
Indianapolis, Multi-Family Housing,
RB, VRDN, AMT (C) (D) (E)
3.500%, 06/02/99 2,700 2,700
Jasper, Economic Development,
Wabash Valley Produce Project,
RB, AMT, VRDN (C) (E)
3.420%, 06/03/99 2,000 2,000
La Porte County, Economic
Development Revenue, Pedcor
Investments-Woodland, RB,
VRDN, AMT (C)
3.350%, 06/03/99 2,000 2,000
Michigan City, Industrial Economic
Development, Performance
Packaging, RB, VRDN,
AMT (C) (D) (E)
3.550%, 06/02/99 800 800
State, Development Financial
Authority, Culver Educational
Facilities, RB, VRDN (C) (E)
3.250%, 06/02/99 2,000 2,000
State, Development Financial
Authority, Dekko International
Project, RB, VRDN (C) (D) (E)
3.420%, 06/02/99 430 430
State, Development Financial
Authority, Educational Facility,
Indiana Historical Society, RB,
VRDN (C) (E)
3.250%, 06/02/99 1,200 1,200
16
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Health Facility Financing
Authority, Clarian Health Partners,
Ser B, RB, VRDN (C) (D)
3.200%, 06/02/99 $2,000 $ 2,000
-------
30,685
-------
Iowa (0.4%)
Davenport, Ser C, GO
4.375%, 06/01/99 465 465
West Des Moines, Commercial
Development, Greyhound Lines
Project, RB, VRDN (C) (D) (E)
3.300%, 06/02/99 2,500 2,500
-------
2,965
-------
Kansas (0.1%)
Johnson County, School District
Number 229, Ser B, GO
4.250%, 09/01/99 1,000 1,003
-------
Kentucky (1.7%)
Clark County, Pollution Control,
RB, VRDN (C) (D) (E)
3.100%, 10/15/99 2,500 2,500
Jefferson County, Industrial Building,
Fisher-Klosterman Project, RB,
VRDN, AMT (C) (D) (E)
3.420%, 06/03/99 2,170 2,170
State, Asset/Liability Commission,
General Fund Revenue, TRAN
3.500%, 11/01/99 4,000 4,009
State, Higher Education Student
Loan, Ser B, RB, AMT
6.400%, 12/01/99 4,125 4,191
-------
12,870
-------
Louisiana (3.0%)
Calcasieu Parish, Industrial
Development Board, Hydroserve
Westlake, RB, AMT, VRDN (C) (E)
3.450%, 06/02/99 5,000 5,000
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Plaquemines, TECP
3.100%, 06/09/99 $5,500 $ 5,500
State, Eagle Trust
3.340%, 06/03/99 8,000 8,000
State, Offshore Terminal Authority,
Deepwater Port, First Stage
A-Loop Project, Ser A, RB,
VRDN (C) (D) (E)
3.200%,06/02/99 2,000 2,000
State, Public Facilites Authority,
Pollution Control, Ciba-Geigy
Project, RB, VRDN (C)
3.200%, 06/02/99 2,400 2,400
-------
22,900
-------
Maryland (2.1%)
Baltimore County, Allied Signal
Project, VRDN (C) (D) (E)
3.350%, 06/02/99 1,000 1,000
State, Community Development,
Department Housing &
Community, RB, AMT (FHA)
3.100%, 01/13/00 4,655 4,655
State, Department of Transportation,
RB, Prerefunded at 100.75
6.600%, 11/01/99 1,885 1,927
State, Department of Transportation,
RB, Prerefunded at 101
6.700%, 11/01/99 3,250 3,332
University of Maryland, Revolving
Equipment Loan Program,
Ser B, RB, VRDN (C) (E)
3.300%, 06/02/99 4,100 4,100
Washington Suburban, General
Construction, GO
Prerefunded at 102
6.750%, 12/01/99 1,400 1,453
-------
16,467
-------
17
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Exempt Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Michigan (1.9%)
Oakland County, Economic
Development Authority, Moody
Family Limited Project, RB,
VRDN, AMT (C) (E)
3.500%, 06/02/99 $ 900 $ 900
State, Building Authority Revenue,
Facilities Program Ser I, RB
4.500%, 10/01/99 2,200 2,211
State, Housing Development
Authority, RB, VRDN, AMT
(C) (D) (E)
3.350%, 06/02/99 1,000 1,000
State, Industrial Development
Authority, RB, VRDN
(C) (D) (E)
3.300%, 06/01/99 3,000 3,000
State, Municipal Bond Authority,
School Loan, RB
3.500%, 12/01/99 2,000 2,006
State, Municipal Bond Authority,
Ser B-1, RB
4.500%, 07/02/99 1,000 1,001
State Recreation Program, GO
5.500%, 11/01/99 2,000 2,021
State, Strategic Fund, Consolidated
Industrial Project, RB, AMT,
VRDN (C) (E)
3.500%, 06/02/99 2,500 2,500
-------
14,639
-------
Mississippi (2.3%)
State, Business Finance, Solid Waste
Disposal Revenue, Choctaw
Generation, RB, VRDN (C)
3.350%, 06/02/99 3,000 3,000
State, Government Bond, Ser B, GO
4.250%, 08/01/99 4,515 4,519
State, Hospital Equipment &
Facilities, TECP
2.800%, 06/15/99 10,000 10,000
-------
17,519
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Missouri (0.9%)
Carthage, Industrial Development
Authority, Schrieber Project, RB,
VRDN, AMT (C) (D) (E)
3.400%, 06/02/99 $3,100 $3,100
Saint Charles County, Industrial
Development Authority, Casalon
Apartment Project, Ser 95, RB,
VRDN (C) (D) (E)
3.200%, 06/03/99 3,100 3,100
State, Environmental Improvement
& Energy Resource Authority,
Utilicorp United Project, RB,
VRDN, AMT (C) (D) (E)
3.400%, 06/02/99 700 700
------
6,900
------
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)
3.000%, 07/15/99 1,825 1,825
------
2,480
------
Nevada (3.1%)
Clark County, Airport Improvement
Authority, Ser A-1, RB,
VRDN (C) (D) (E)
3.150%, 06/02/99 4,200 4,200
Clark County, Industrial
Development, RB, VRDN, (C)
3.470%, 06/03/99 6,495 6,495
Clark County, Nevada Airport
Improvement Ser A-1, RB,
VRDN, AMT, (C) (E)
3.450%, 06/02/99 5,090 5,090
18
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Clark County, School District, RB,
VRDN (C)
3.340%, 06/03/99 $8,345 $ 8,345
-------
24,130
-------
New Hampshire (0.6%)
State, Housing Finance Authority,
Multi-Family Housing, Fairways
Project, RB, VRDN,
AMT (C) (D) (E)
3.450%, 06/02/99 5,000 5,000
-------
New Jersey (0.4%)
Parsippany, Troy Hills
Township, GO
4.500%, 12/01/99 1,055 1,063
State, Ser D, GO (D)
5.100%, 08/15/99 2,000 2,029
-------
3,092
-------
New Mexico (0.8%)
Farmington, Pollution
Control, RB, VRDN (C)
3.250%, 11/04/99 4,785 4,785
State, Mortgage Financial
Authority, Ser B, RB, VRDN (C)
3.000%, 07/01/99 1,700 1,700
-------
6,485
-------
New York (4.5%)
Long Island Power, TECP
2.800%, 08/12/99 3,000 3,000
New York, GO, VRDN, (C) (E)
3.400%, 06/01/99 7,000 7,000
New York, Industrial Development
Special Facility, Korean Airlines
Co. Project, Ser A , RB,
VRDN, (C) (E)
3.200%, 06/02/99 3,000 3,000
New York, Ser J, RB, GO
5.500%, 07/01/99 1,000 1,002
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Southeast Industrial Development,
Unilock Project, RB, VRDN,
AMT (C) (D) (E)
3.400%, 06/02/99 $ 2,200 $ 2,200
State, Urban Development
Corporation, Senior Lien, RB,
VRDN (C)
3.300%, 06/03/99 12,155 12,155
Suffolk County, Tax Anticipation
Notes, Ser I, RB
3.500%, 08/12/99 6,000 6,006
-------
34,363
-------
North Carolina (2.5%)
Cleveland County, Family YMCA,
Recreational Facilities Revenue,
RB, VRDN (B) (C)
3.350%, 06/02/99 3,000 3,000
Mecklenburg County, Industrial
Facilities & Pollution Control,
Sterigenics International Project,
RB, VRDN, AMT (C) (D) (E)
3.400%, 06/02/99 1,800 1,800
Mecklenburg County, Ser C,
GO, VRDN (C)
3.200%, 06/02/99 5,000 5,000
State, Educational Facilities
Catawba College, RB,
VRDN (C) (E)
3.250%, 06/02/99 2,000 2,000
State, Educational Facilities,
Guilford College, RB,
VRDN (C) (D) (E)
3.300%, 06/02/99 2,200 2,200
State, GO, VRDN (C)
3.320%, 06/03/99 5,340 5,340
-------
19,340
-------
Ohio (3.6%)
Lorain County, Catholic
Healthcare, TECP
3.000%, 06/08/99 7,000 7,000
19
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Exempt Money Market Fund--continued
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Air Quality Development
Authority, JMG Limited
Partnership, Ser A, RB, VRDN,
AMT (D) (E)
3.400%, 06/02/99 $ 3,000 $ 3,000
State, Air Quality Development
Authority, Edison Project, Ser A,
RB, VRDN (C) (D) (E)
2.950%, 06/07/99 8,000 8,000
State, GO
5.400%, 08/01/99 1,000 1,004
State, Pollution Control Authority,
Duquesne Project, RB, VRDN,
AMT (C) (D) (E)
3.350%, 06/02/99 3,000 3,000
Warrren County, Health Care
Facilities Revenue, RB,
VRDN (C)
3.250%, 06/02/99 5,700 5,700
-------
27,704
-------
Oregon (0.8%)
State, Ser 73, GO, VRDN (C) (E)
3.200%, 06/02/99 6,000 6,000
-------
Pennsylvania (4.5%)
Beaver County, Industrial
Development Authority,
Duquesne Light Company
Project, Ser B, RB, VRDN (C) (D)
3.250%, 06/02/99 1,000 1,000
Cambria County, Industrial
Development Authority, Cambria
Cogeneration, Ser A-1, RB, AMT,
VRDN (C) (D) (E)
3.250%, 06/02/99 10,000 10,000
Geisinger Authority, Health System,
Penn State, RB
4.500%, 06/03/99 1,000 1,002
Philadelphia, School District, Tax &
Anticipation Notes, Ser A, RB
4.250%, 06/30/99 1,500 1,501
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Philadelphia, Tax & Anticipation
Notes, Ser A, GO
4.250%, 06/30/99 $ 5,000 $ 5,002
State, Intergovernmental
Cooperation Authority, Special
Tax Revenue, RB, VRDN (C)
2.900%, 06/15/99 9,630 9,630
State, Ser A, RB, VRDN (C) (D)
3.340%, 06/03/99 6,830 6,830
-------
34,965
-------
Rhode Island (0.9%)
State, GO, VRDN (C)
3.320%, 06/03/99 6,635 6,635
-------
South Carolina (1.5%)
Piedmont, Municipal Power
Agency, Electrical Revenue,
Ser D, RB, VRDN (C)
3.200%, 06/02/99 3,100 3,100
State, Economic Development
Authority, Kiswire Project, RB,
AMT, VRDN (C) (D) (E)
3.500%, 06/03/99 3,000 3,000
State, Public Service Authority, TECP
3.150%, 06/17/99 4,000 4,000
State, Public Service Authority,
Ser A, RB
4.500%, 01/01/00 1,500 1,513
-------
11,613
-------
Tennessee (5.7%)
Covington, Industrial Development
Board, Charms Project, RB,
VRDN, AMT (C) (D) (E)
3.400%, 06/02/99 3,000 3,000
Hamilton County, Industrial
Development Board, Tennessee
Aquarium Project, RB,
VRDN (C) (D) (E)
3.250%, 06/03/99 3,000 3,000
Jackson County, TECP
2.900%, 06/10/99 10,000 10,000
20
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Jackson, Water & Sewer, RB,
Prerefunded @ 102
(AMBAC) (D) (E)
10.375%, 07/01/99 $1,500 $ 1,539
Lower County, River Authority,
TECP
2.850%, 06/08/99 5,000 5,000
Memphis-Shelby County, Industrial
Development Board, Ponderosa
Fibres American Project, RB,
AMT, VRDN (C) (D) (E)
3.350%, 06/03/99 1,200 1,200
Nashville & Davidson County,
Industrial Development Authority,
Multi-Family Mortgage,
Chimneytop II Project, RB,
VRDN (C) (D) (E)
3.400%, 06/02/99 1,325 1,325
Nashville & Davidson County,
Vanderbilt University, RB,
VRDN (C) (D)
3.100%, 07/15/99 7,000 7,000
State, Ser A, Anticipation Notes,
VRDN (C) (E)
3.150%, 06/02/99 8,000 8,000
State, Ser 108, GO
3.370%, 06/03/99 2,500 2,500
State, School Bond Authority, TECP
3.000%, 06/16/99 1,400 1,400
-------
43,964
-------
Texas (9.9%)
Austin, Convention Center
Revenue, Ser B, RB,
Prerefunded @ 102 (D) (E)
8.250%, 11/15/99 4,100 4,277
Brazos, River Authority, TECP
2.800%, 06/10/99 6,000 6,000
Dallas, GO
5.500%, 02/15/00 2,105 2,140
Dallas, Rapid Transit, TECP
2.950%, 06/10/99 3,600 3,600
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Fort Worth, Water & Sewer,
Ser B, RB
5.875%, 02/15/00 $1,325 $1,351
Georgetown, Higher Education
Financing Authority, Southwestern
University Project, Ser 1984, RB,
VRDN (C) (D) (E)
3.250%, 06/02/99 2,000 2,000
Gulf Coast, Waste Disposal,
Texwater Pollution Control,
RB, VRDN (C) (D)
3.000%, 07/15/99 8,280 8,280
Harris County, Health Facilities
Authority, Memorial Hospital
Project, Ser B, RB, VRDN (C) (D)
3.150%, 06/02/99 2,600 2,600
Harris County, Industrial
Development Authority, Lubrizol
Project, RB, VRDN (C) (D)
3.150%, 06/02/99 1,600 1,600
Houston, Water & Sewer, RB,
VRDN (FGIC) (C) (E) (D)
3.050%, 06/01/99 8,835 8,835
Lone Star, Airport Improvement
Authority, RB, VRDN (C) (D) (E)
3.250%, 06/01/99 1,700 1,700
San Antonio, Electric & Gas,
RB (MBIA)
6.375%, 02/01/00 1,350 1,380
Southwest Higher Education
Authority, Southern Methodist
University Project B, RB,
VRDN (C) (E)
3.200%, 06/02/99 5,000 5,000
State, College Student Loan,
GO, AMT
5.100%, 08/01/99 1,000 1,003
21
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Exempt Money Market Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
State, Public Facilities, RB,
VRDN (C)
3.340%, 06/03/99 $ 7,180 $ 7,180
State, RB, VRDN (C) (D)
3.450%, 06/03/99 4,935 4,935
State, Public Finance Authority,
State Preservation Board,
Ser A, RB (AMBAC)
4.250%, 02/01/00 1,200 1,209
State, TRAN
4.500%, 08/31/99 10,000 10,039
University of Houston, RB
5.500%, 02/15/00 2,850 2,898
-------
76,027
-------
Utah (2.8%)
State, Housing Finance Agency, RB,
VRDN, AMT (C)
3.100%, 07/01/99 8,600 8,600
State, Housing Finance Agency, RB,
VRDN (C) (D) (E)
3.100%, 07/01/99 11,135 11,135
Utah County, Utah Environmental
Impact, USX Corporate
Project, RB, VRDN (C)
3.000%, 06/01/99 2,000 2,000
-------
21,735
-------
Virginia (3.3%)
Braxton County, Solid Waste
Disposal, Weyerhaeuser Co.
Project, RB, VRDN, AMT (C) (E)
3.300%, 06/02/99 7,650 7,650
Chesterfield County, Industrial
Development Authority, Allied
Signal Project, RB, VRDN (C)
3.400%, 06/02/99 3,000 3,000
Front Royal & Warren County,
Industrial Development Authority,
Pen Tab Industries Project, RB,
VRDN, AMT (C) (D) (E)
3.300%, 06/03/99 2,700 2,700
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Prince George County, Industrial
Development Authority, Industrial
Development Revenue,
RB, VRDN, AMT (C)
3.470%, 06/03/99 $5,000 $ 5,000
State, College Building Authority,
Educational Facilities,
Leasing program, RB
4.250%, 02/01/00 6,610 6,664
-------
25,014
-------
Washington (3.4%)
Pierce County, Washington Economic
Development, Weyerhaeuser
Real Estate Project, RB,
VRDN (C) (D) (E)
3.250%, 06/02/99 3,000 3,000
Port of Seattle, VRDN (C) (D)
3.350%, 06/02/99 1,200 1,200
Seattle, Water Systems Revenue,
RB, VRDN (C)
3.350%, 06/02/99 4,200 4,200
South Columbia Basin, RB
5.700%, 12/01/99 1,000 1,013
State, Public Power Supply System,
Nuclear Project No. 1, Ser 1A-3,
RB, VRDN (C) (D) (E)
3.200%, 06/02/99 3,300 3,300
State, Public Power Supply System,
Nuclear Project No. 1, Ser 1A-1,
RB, VRDN (C) (D) (E)
3.300%, 06/02/99 4,725 4,725
State, Public Power Supply System,
Nuclear Project No. 3, Ser 3A,
RB, VRDN (MBIA) (C) (D)
3.000%, 06/01/99 5,000 5,000
State, GO, VRDN (C) (D) (E)
3.200%, 12/09/99 3,335 3,335
-------
25,773
-------
22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
West Virginia (0.5%)
Marshall County, Pollution Control
Authority, Allied Signal Project,
RB, VRDN (C) (D)
3.400%, 06/02/99 $2,000 $2,000
Marshall County, Pollution
Control Authority, PPG
Industries Project,
RB, VRDN (C) (D)
3.550%, 06/03/99 2,000 2,000
------
4,000
------
Wisconsin (0.9%)
Appleton, Industrial Development
Revenue, Pro Lable Project, RB,
VRDN, AMT (C)
3.520%, 06/02/99 950 950
Germantown, Industrial Revenue,
Speaker Project, RB,
VRDN, AMT (C)
3.520%, 06/03/99 905 905
Holland, Industrial Development
Revenue, White Clover Dairy
Project, RB, VRDN, AMT (C)
3.420%, 06/02/99 1,500 1,500
Oconomowoc, Industrial
Development Revenue, Quest
Technologies Project, RB,
VRDN, AMT (C)
3.420%, 06/02/99 1,550 1,550
Wisconsin, Health Facilities, Saint
Lukes Medical Center, RB,
VRDN (C) (D) (E)
3.250%, 06/02/99 1,840 1,840
------
6,745
------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Wyoming (0.6%)
Sweetwater, RB, VRDN (C)
3.200%, 06/01/99 $ 4,600 $4,600
---------
Total Municipal Bonds
(Cost $765,558) 765,558
---------
Cash Equivalent (0.3%)
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio 2,227 2,227
---------
Total Cash Equivalent
(Cost $2,227) 2,227
---------
Total Investments (99.7%)
(Cost $767,785) 767,785
---------
Other Assets and Liabilities, Net (0.3%) 2,709
---------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 641,639,113
outstanding shares of beneficial interest 641,639
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 128,859,463
outstanding shares of beneficial interest 128,860
Accumulated net realized loss
on investments (5)
---------
Total Net Assets 100.0% $ 770,494
=========
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 31.
23
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds (96.9%)
Colorado (1.3%)
Denver, Public Facility Improvements,
Major League Baseball Stadium
Project, Ser A, RB (FGIC)
5.900%, 10/01/99 $3,500 $ 3,529
-------
District of Columbia (2.7%)
District of Columbia, Healthcare
Facility, St. John's Child
Development Center, RB (C)
3.800%, 06/01/99 1,100 1,100
District of Columbia, RB (C) (E)
3.250%, 06/01/99 6,260 6,260
-------
7,360
-------
Georgia (2.9%)
State, COP (MBIA) (C)
3.320%, 06/03/99 8,000 8,000
-------
Hawaii (0.8%)
State, Housing Finance &
Development Authority, Single-
Family Housing, RB, AMT (C)
3.420%, 07/01/99 2,250 2,250
-------
Illinois (6.2%)
Chicago, O'Hare International
Airport, RB, AMT (C)
3.390%, 06/03/99 5,000 5,000
Chicago, Public Improvements,
Ser C, GO (E)
3.050%, 10/31/99 5,000 5,000
State, Health Facility Authority,
Swedish Covenant Hospital
Project, RB (AMBAC) (C)
3.400%, 06/02/99 2,200 2,200
State, Toll Highway Authority,
RB (FSA) (C)
3.250%, 06/03/99 5,000 5,000
-------
17,200
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Kansas (0.9%)
Johnson County, School
Improvements, GO (AMBAC)
8.000%, 09/01/99 $ 2,525 $ 2,555
-------
Louisiana (2.8%)
Jefferson Parish, Home Mortgage,
RB (C)
3.390%, 06/03/99 7,720 7,720
-------
Maryland (4.2%)
Montgomery County, Housing
Opportunity Commission, Issue 1,
RB, AMT (C) (E)
3.500%, 06/03/99 10,000 10,000
State, Health & Higher Educational
Facilities Authority, Pooled Loan
Project, Ser D, RB (C) (E)
3.200%, 06/03/99 1,675 1,675
-------
11,675
-------
Michigan (3.6%)
Detroit, Sewer Disposal, Ser B,
RB (MBIA) (C)
3.400%, 06/02/99 10,000 10,000
-------
New York (9.0%)
Long Island, Power Authority,
Electric System Project, RB (C)
3.430%, 06/03/99 4,000 4,000
New York City, GO (C)
3.340%, 06/03/99 11,960 11,960
New York City, Municipal Water
Financing Authority, RB (FSA) (C)
3.320%, 06/03/99 9,000 9,000
-------
24,960
-------
Pennsylvania (11.1%)
Emmaus, General Authority,
RB (FSA) (C)
3.250%, 06/02/99 12,000 12,000
24
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Philadelphia, Gas Works, RB
(FSA) (C)
3.320%, 06/03/99 $3,635 $ 3,635
Philadelphia, Water & Wastewater,
RB (AMBAC) (C)
3.320%, 06/03/99 7,000 7,000
Pittsburgh, GO (C)
3.320%, 06/03/99 8,000 8,000
-------
30,635
-------
South Carolina (3.0%)
Florence County, McLeod Regional
Medical Center Project, Ser A,
RB (FGIC) (C) (E)
3.250%, 06/03/99 8,200 8,200
-------
Tennessee (1.8%)
Shelby County, Health, Educational
& Housing Facilities, Multi-Family
Housing, Ser A, RB, AMT (C) (E)
3.450%, 06/02/99 5,000 5,000
-------
Texas (7.6%)
Houston, Water & Sewer System,
RB (FGIC) (C)
3.320%, 06/03/99 5,000 5,000
Plano, TECP
2.950%, 06/16/99 7,000 7,000
San Antonio, Electric & Gas, RB,
Partially Prerefunded
02/01/07 @ 101 (C) (E)
3.320%, 06/03/99 9,000 9,000
-------
21,000
-------
Virginia (35.4%)
Alexandria, Industrial Development,
Pooled Loan Project, Ser A,
RB (C) (E)
3.250%, 06/02/99 2,875 2,875
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Alexandria, Industrial Development,
Ser A, RB (C)
3.800%, 06/02/99 $ 3,500 $ 3,500
Almermarle County, Industrial
Development, Health Services,
RB (C)
3.250%, 06/02/99 4,400 4,400
Chesterfield, TECP
2.850%, 06/25/99 10,000 10,000
Fairfax County, Economic
Development, Flint Hill School
Project, RB (C) (E)
3.250%, 06/02/99 4,340 4,340
Fairfax County, Public Improvements,
GO (C)
3.320%, 06/03/99 6,300 6,300
Hampton Roads, Regional Jail
Authority, Ser B, RB (C) (E)
3.300%, 06/02/99 2,000 2,000
King George County, Industrial
Development, Birchwood Power
Partners, Ser B, RB (C) (E)
3.500%, 06/01/99 4,000 4,000
Louisa County, Industrial
Development, RB (C) (E)
3.250%, 06/03/99 1,900 1,900
Norfolk, Industrial Development,
Childrens Hospital Project,
RB (C) (E)
3.250%, 06/01/99 4,000 4,000
Pulaski County, Industrial
Development Authority, Pulaski
Furniture Project, Ser A, RB (C)
3.800%, 06/02/99 4,219 4,219
Pulaski County, Industrial
Development Authority, Pulaski
Furniture Project, Ser B, RB (C)
3.800%, 06/02/99 500 500
25
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
Tax-Free Money Market Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Richmond, BAN (C)
3.250%, 06/03/99 $ 570 $ 570
Richmond, Redevelopment &
Housing Authority, Multi-Family
Housing, RB (C)
3.420%, 06/03/99 13,000 13,000
Roanoke County, Industrial
Development, Roanoke Memorial
Hospital Project, Ser C, RB (C) (E)
3.200%, 06/02/99 2,000 2,000
State, College Building Authority,
Public Higher Education Financing,
Ser A, RB
3.150%, 09/01/99 1,850 1,850
State, Port Authority, RB, AMT
(MBIA) (C)
3.390%, 06/03/99 10,100 10,100
State, Public Building Authority, RB
5.100%, 08/01/99 7,115 7,139
State, University & Hospital &
Public Improvements, GO
5.000%, 06/02/99 2,000 2,035
Suffolk, Redevelopment & Housing
Authority, Multi-Family Housing,
Windsor Fieldstone Project, RB (C)
3.800%, 6/03/99 4,218 4,218
York County, TECP
2.800%, 06/25/99 8,800 8,800
-------
97,746
-------
Washington (3.6%)
Washington State, Public Power
Supply System, Nuclear Project
Number 1, RB,
Prerefunded @ 100
6.000%, 07/01/99 10,000 10,019
-------
Total Municipal Bonds
(Cost $267,849) 267,849
-------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Cash Equivalents (2.4%)
Financial Square Tax Free
Portfolio $ 6,003 $6,003
SEI Institutional Tax Free
Portfolio 644 644
---------
Total Cash Equivalents
(Cost $6,647) 6,647
---------
Total Investments (99.3%)
(Cost $274,496) 274,496
---------
Other Assets and Liabilities, Net (0.7%) 1,890
---------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no
par value) based on 270,461,831
outstanding shares of beneficial interest 270,439
Fund shares of the Investor Class
(unlimited authorization -- no
par value) based on 5,955,089
outstanding shares of beneficial interest 5,955
Overdistributed net investment income (1)
Accumulated net realized loss
on investments (7)
---------
Total Net Assets 100.0% $ 276,386
=========
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 31.
26
<PAGE>
- --------------------------------------------------------------------------------
U.S. Government Securities Money Market Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligation (10.8%)
U.S. Treasury Note
5.500%, 02/29/00 $50,000 $50,256
-------
Total U.S. Treasury Obligation
(Cost $50,256) 50,256
-------
Government Agency Obligations (14.1%)
Agency for International
Development, Ser 5A
7.750%, 11/15/99 50,000 50,637
Agency for International
Development (C)
4.756%, 11/15/99 15,000 14,976
-------
Total Government Agency Obligations
(Cost $65,613) 65,613
-------
Repurchase Agreements (75.3%)
ABN-AMRO
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$14,007,466 (collateralized by
U.S. Treasury Note: total market
value $14,280,482) (B) 14,000 14,000
Barclays
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$19,044,181 (collateralized by
U.S. Treasury Note: total market
value $19,414,792) (B) 19,034 19,034
Deutsche Bank
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$19,968,414 (collateralized by
U.S. Treasury Note: total market
value $20,356,970) (B) 19,958 19,958
Greenwich
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$20,020,513 (collateralized by
U.S. Treasury Note: total market
value $20,412,490) (B) 20,010 20,010
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
J.P. Morgan
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$110,917,235 (collateralized by
a GNMA obligation: total
market value $113,075,273) (B) $ 110,858 $110,858
Merrill Lynch
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$20,031,391 (collateralized by
various GNMA obligations: total
market value $20,424,265) (B) 20,021 20,021
Morgan Stanley
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$109,997,946 (collateralized by
various GNMA obligations: total
market value $113,740,112) (B) 109,939 109,939
Salomon Brothers
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$17,099,617 (collateralized by
U.S. Treasury Note: total market
value $17,446,918) (B) 17,091 17,091
SBC Warburg
4.80%, dated 05/28/99, matures
06/01/99, repurchase price
$19,914,879 (collateralized by
U.S. Treasury Note: total market
value $20,306,494) (B) 19,904 19,904
--------
Total Repurchase Agreements
(Cost $350,815) 350,815
--------
Total Investments (100.2%)
(Cost $466,684) 466,684
--------
Other Assets and Liabilities, Net (-0.2%) (753)
--------
27
<PAGE>
STATEMENTS OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
U.S. Government Securities Money Market Fund--concluded
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 404,208,908
outstanding shares of beneficial interest $404,209
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 61,445,158
outstanding shares of beneficial interest 61,445
Undistributed net investment income 86
Accumulated net realized gain
on investments 191
--------
Total Net Assets 100.0% $465,931
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $1.00
========
Net Asset Value, Offering Price and Redemption
Price Per Share -- Investor Shares $1.00
========
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 31.
28
<PAGE>
- --------------------------------------------------------------------------------
U.S. Treasury Money Market Fund
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations (28.3%)
U.S. Treasury Bills
4.190%, 06/03/99 $ 50,000 $ 49,989
4.250%, 06/17/99 50,000 49,912
U.S. Treasury Notes
6.750%, 06/30/99 15,000 15,014
5.625%, 11/30/99 15,000 15,067
5.625%, 12/31/99 15,000 15,080
5.875%, 02/15/00 15,000 15,100
5.500%, 03/31/00 25,000 25,102
6.375%, 05/15/00 30,000 30,372
--------
Total U.S. Treasury Obligations
(Cost $215,636) 215,636
--------
Repurchase Agreements (70.5%)
ABN-AMRO
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$34,046,305 (collateralized by
U.S. Treasury STRIPS: total
market value $34,709,165) (B) 34,028 34,028
Barclays
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$29,219,675 (collateralized by
U.S. Treasury Note: total market
value $29,788,780) (B) 29,204 29,204
Deutsche Bank
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$179,292,640 (collateralized by
various U.S. Treasury Bonds and
Notes: total market value
$182,782,325) (B) 179,198 179,198
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Greenwich Bank
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$179,851,869 (collateralized by
U.S. Treasury Note: total market
value $183,353,384) (B) $179,757 $179,757
Merrill Lynch
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$20,014,602 (collateralized by
U.S. Treasury STRIPS: total
market value $20,404,674) (B) 20,004 20,004
Morgan Stanley
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$22,425,774 (collateralized by
U.S. Treasury Note: total market
value $22,870,506) (B) 22,414 22,414
J.P. Morgan
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$20,789,780 (collateralized by
U.S. Treasury Note: total market
value $21,195,355) (B) 20,779 20,779
Salomon
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$23,408,760 (collateralized by
various U.S. Treasury Notes: total
market value $23,869,853) (B) 23,396 23,396
SBC Warburg
4.77%, dated 05/28/99, matures
06/01/99, repurchase price
$27,014,310 (collateralized by
U.S. Treasury Bond: total market
value $27,545,730) (B) 27,000 27,000
--------
Total Repurchase Agreements
(Cost $535,780) 535,780
--------
29
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
U.S. Treasury Money Market Fund--concluded
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Total Investments (98.8%)
(Cost $751,416) $751,416
--------
Other Assets and Liabilities, Net (1.2%) 9,417
--------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 760,916,765
outstanding shares of beneficial interest 760,833
--------
Total Net Assets 100.0% $760,833
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $1.00
========
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 31.
30
<PAGE>
- --------------------------------------------------------------------------------
Key to Abbreviations used in
the Statement of Net Assets
AMBAC Security insured by the American Municipal
Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
Cl Class
COP Certificate of Participation
FGIC Security insured by the Financial Guaranty Insurance Company
FFCB Federal Farm Credit Bank
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Security insured by Financial Securities Assurance
GIC Guaranteed Investment Contract
GNMA Government National Mortgage Association
GO General Obligation
MBIA Security insured by the Municipal Bond Insurance Association
MTN Medium Term Note
RB Revenue Bond
Ser Series
SLMA Student Loan Marketing Association
STRIPS Separately Traded Registered Interest and
Principal Security
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) Adjustable Rate Security. The rate reported on
the Statement of Net Assets is the rate in effect
on May 31, 1999. The date shown is the next
scheduled reset date.
(D) Put and demand features exist requiring the
issuer to repurchase the instrument prior to maturity.
(E) Securities are held in connection with a letter of
credit issued by a major bank.
(F) The contract has no stated maturity date, but may be
terminated unconditionally by the Fund at anytime
upon at least 7 days notice to the issuer.
31
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
- ------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended May 31, 1999 and November 30, 1998
U.S.
Government
Tax-Exempt Securities
Prime Quality Money Money
Money Market Market Tax-Free Market U.S. Treasury
Fund Fund Money Market Fund Fund Money Market Fund
------------- ---------- --------------------- ---------- ----------------------
06/01/98- 06/01/98- 12/01/98 12/01/97 06/01/98- 12/01/98 12/01/97
05/31/99 05/31/99 05/31/99 11/30/98 05/31/99 05/31/99 11/30/98
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Income ........................ $142,719 $24,519 $4,823 $8,624 $23,472 $18,000 $33,565
-------- ------- ------ ------ ------- ------- -------
Expenses:
Investment Advisory Fees ............ 17,531 4,122 607 963 2,992 1,486 2,412
Less: Investment Advisory
Fees Waived/Reimbursed......... (4,356) (1,057) (3) -- (607) (21) --
Administrator Fees .................. 2,093 584 222 361 359 550 927
Less: Administrator Fees Waived ..... (250) -- -- -- (3) -- --
Transfer Agent Fees-- Trust Shares .. 18 14 73 121 13 183 309
Transfer Agent Fees-- Investor Shares 19 17 -- -- 33 -- --
Transfer Agent Out of Pocket Fees ... 291 77 1 -- 55 1 --
Printing Expenses ................... 142 32 12 9 46 27 24
Custody Fees ........................ 73 15 56 95 11 143 230
Professional Fees ................... 164 41 35 24 23 103 65
Trustee Fees ........................ 29 11 2 3 2 5 9
Registration Fees ................... 414 49 7 21 6 27 68
Distribution Fees-- Trust Shares .... -- -- 213 349 -- 539 927
Less: Distribution Fees Waived --
Trust Shares ................... -- -- (213) (349) -- (539) (927)
Distribution Fees-- Investor Shares . 1,157 214 14 33 104 -- --
Less: Distribution Fees Waived --
Investor Shares ................ (188) (58) (14) (33) (49) -- --
Insurance and Other Fees ............ 39 4 5 3 -- 59 40
-------- ------- ------ ------ ------- ------- -------
Total Expenses ...................... 17,176 4,065 1,017 1,600 2,985 2,563 4,084
-------- ------- ------ ------ ------- ------- -------
Net Investment Income ............... 125,543 20,454 3,806 7,024 20,487 15,437 29,481
-------- ------- ------ ------ ------- ------- -------
Net Realized Gain (Loss) on
Securities Sold ................ (19) (1) 2 (9) 191 -- --
-------- ------- ------ ------ ------- ------- -------
Net Increase in Net Assets
from Operations ................ $125,524 $20,453 $3,808 $7,015 $20,678 $15,437 $29,481
======== ======= ====== ====== ======= ======= =======
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, and The Year Ended May 31,
<TABLE>
<CAPTION>
Prime Quality Tax-Exempt Tax-Free
Money Market Fund Money Market Fund Money Market Fund
---------------------- ------------------- -----------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97- 12/01/98- 12/01/97- 12/01/96-
05/31/99 05/31/98 05/31/99 05/31/98 05/31/99 11/30/98 11/30/97
---------- ---------- -------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .............................. $ 125,543 $ 95,132 $ 20,454 $ 17,568 $ 3,806 $ 7,024 $ 6,505
Net Realized Gain (Loss) on Investments............. (19) 50 (1) -- 2 (9) 3
---------- ---------- -------- ---------- -------- -------- --------
Increase in Net Assets from Operations............ 125,524 95,182 20,453 17,568 3,808 7,015 6,508
---------- ---------- -------- ---------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (99,427) (77,500) (16,665) (13,717) (3,739) (6,778) (6,352)
Investor Shares .................................. (26,132) (17,632) (3,788) (3,852) (91) (239) (161)
---------- ---------- -------- ---------- -------- -------- --------
Total Distributions ............................ (125,559) (95,132) (20,453) (17,569) (3,830) (7,017) (6,513)
---------- ---------- -------- ---------- -------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued....................... 4,698,805 3,915,486 984,432 1,039,352 246,896 369,536 393,449
Shares Issued in Connection with Crestar Merger... 1,179,761 -- -- -- -- -- --
Reinvestment of Cash Distributions................ 4,306 3,699 -- -- -- -- --
Cost of Shares Redeemed .......................... (3,859,828) (3,125,552) (790,815) (924,334) (247,343) (325,471) (348,927)
---------- ---------- -------- ---------- -------- -------- --------
Increase (Decrease) in Net Assets From
Trust Share Transactions.......................... 2,023,044 793,633 193,617 115,018 (447) 44,065 44,522
---------- ---------- -------- ---------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued....................... 1,199,739 806,517 356,214 346,323 5,749 22,060 16,177
Shares Issued in Connection with Crestar Merger... 187,089 -- -- -- -- -- --
Reinvestment of Cash Distributions................ 24,846 15,979 3,497 3,314 110 237 144
Cost of Shares Redeemed .......................... (905,401) (694,228) (365,395) (317,112) (8,754) (21,081) (11,681)
---------- ---------- -------- ---------- -------- -------- --------
Increase (Decrease) in Net Assets From
Investor Share Transactions....................... 506,273 128,268 (5,684) 32,525 (2,895) 1,216 4,640
---------- ---------- -------- ---------- -------- -------- --------
Increase (Decrease) in Net Assets
From Share Transactions......................... 2,529,317 921,901 187,933 147,543 (3,342) 45,281 49,162
---------- ---------- -------- ---------- -------- -------- --------
Total Increase (Decrease) in Net Assets......... 2,529,282 921,951 187,933 147,542 (3,364) 45,279 49,157
---------- ---------- -------- ---------- -------- -------- --------
Net Assets:
Beginning of Period ................................ 2,292,050 1,370,099 582,561 435,019 279,750 234,471 185,314
---------- ---------- -------- ---------- -------- -------- --------
End of Period ...................................... $4,821,332 $2,292,050 $770,494 $ 582,561 $276,386 $279,750 $234,471
========== ========== ======== ========== ======== ======== ========
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................... 4,698,805 3,915,486 984,432 1,039,352 246,896 369,536 393,449
Shares Issued in Connection with Crestar Merger... 1,179,840 -- -- -- -- -- --
Shares Issued in Lieu of Cash Distributions....... 4,306 3,699 -- -- -- -- --
Shares Redeemed .................................. (3,859,828) (3,125,552) (790,815) (924,334) (247,343) (325,471) (348,927)
---------- ---------- -------- ---------- -------- -------- --------
Net Trust Share Transactions.................... 2,023,123 793,633 193,617 115,018 (447) 44,065 44,522
---------- ---------- -------- ---------- -------- -------- --------
Investor Shares:
Shares Issued .................................... 1,199,740 806,517 356,214 346,323 5,749 22,060 16,177
Shares Issued in Connection with Crestar Merger... 187,089 -- -- -- -- -- --
Shares Issued in Lieu of Cash Distributions....... 24,846 15,979 3,497 3,314 110 237 144
Shares Redeemed .................................. (905,433) (694,228) (365,395) (317,112) (8,754) (21,081) (11,681)
---------- ---------- -------- ---------- -------- -------- --------
Net Investor Share Transactions................. 506,242 128,268 (5,684) 32,525 (2,895) 1,216 4,640
---------- ---------- -------- ---------- -------- -------- --------
Net Change in Capital Shares.................... 2,529,365 921,901 187,933 147,543 (3,342) 45,281 49,162
---------- ---------- -------- ---------- -------- -------- --------
<CAPTION>
U.S. Government U.S. Treasury
Securities Securities
Money Market Fund Money Market Fund
--------------------- -------------------------------------
06/01/98- 06/01/97- 12/01/98- 12/01/97- 12/01/96-
05/31/99 05/31/98 05/31/99 11/30/98 11/30/97
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .............................. $ 20,487 $ 19,342 $ 15,437 $ 29,481 $ 24,451
Net Realized Gain (Loss) on Investments............. 191 146 -- -- --
-------- -------- -------- ---------- ----------
Increase in Net Assets from Operations............ 20,678 19,488 15,437 29,481 24,451
-------- -------- -------- ---------- ----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (17,844) (16,621) (15,522) (29,476) (24,456)
Investor Shares .................................. (2,641) (2,723) -- -- --
-------- -------- -------- ---------- ----------
Total Distributions ............................ (20,485) (19,344) (15,522) (29,476) (24,456)
-------- -------- -------- ---------- ----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued....................... 739,766 776,773 681,589 1,131,937 1,251,595
Shares Issued in Connection with Crestar Merger... -- -- -- -- --
Reinvestment of Cash Distributions................ 1,170 380 1 4 146
Cost of Shares Redeemed .......................... (714,135) (744,136) (620,595) (1,064,404) (1,008,406)
-------- -------- -------- ---------- ----------
Increase (Decrease) in Net Assets From
Trust Share Transactions.......................... 26,801 33,017 60,995 67,537 243,335
-------- -------- -------- ---------- ----------
Investor Shares:
Proceeds from Shares Issued....................... 294,871 178,312 -- -- --
Shares Issued in Connection with Crestar Merger... -- -- -- -- --
Reinvestment of Cash Distributions................ 2,578 2,600 -- -- --
Cost of Shares Redeemed .......................... (294,755) (185,358) -- -- --
-------- -------- -------- ---------- ----------
Increase (Decrease) in Net Assets From
Investor Share Transactions....................... 2,694 (4,446) -- -- --
-------- -------- -------- ---------- ----------
Increase (Decrease) in Net Assets
From Share Transactions......................... 29,495 28,571 60,995 67,537 243,335
-------- -------- -------- ---------- ----------
Total Increase (Decrease) in Net Assets......... 29,688 28,715 60,910 67,542 243,330
-------- -------- -------- ---------- ----------
Net Assets:
Beginning of Period ................................ 436,243 407,528 699,923 632,381 389,051
-------- -------- -------- ---------- ----------
End of Period ...................................... $465,931 $436,243 $760,833 $ 699,923 $ 632,381
======== ======== ======== ========== ==========
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................... 739,766 776,773 681,589 1,131,937 1,251,595
Shares Issued in Connection with Crestar Merger... -- -- -- -- --
Shares Issued in Lieu of Cash Distributions....... 1,170 380 1 4 146
Shares Redeemed .................................. (714,135) (744,136) (620,595) (1,064,404) (1,008,406)
-------- -------- -------- ---------- ----------
Net Trust Share Transactions.................... 26,801 33,017 60,995 67,537 243,335
-------- -------- -------- ---------- ----------
Investor Shares:
Shares Issued .................................... 294,871 178,312 -- -- --
Shares Issued in Connection with Crestar Merger... -- -- -- -- --
Shares Issued in Lieu of Cash Distributions....... 2,578 2,600 -- -- --
Shares Redeemed .................................. (294,755) (185,358) -- -- --
-------- -------- -------- ---------- ----------
Net Investor Share Transactions................. 2,694 (4,446) -- -- --
-------- -------- -------- ---------- ----------
Net Change in Capital Shares.................... 29,495 28,571 60,995 67,537 243,335
-------- -------- -------- ---------- ----------
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
33
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period From Inception Through May 31,
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Net Distributions
Asset Value Net from Net Net Asset
Beginning Investment Investment Value End
of Period Income Income of Period
----------- ---------- ------------- ---------
<S> <C> <C> <C> <C>
Prime Quality Money Market Fund
Trust Shares
1999 $1.00 $0.05 $(0.05) $1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
1995 1.00 0.05 (0.05) 1.00
Investor Shares
1999 $1.00 $0.05 $(0.05) $1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
1995 1.00 0.05 (0.05) 1.00
Tax-Exempt Money Market Fund
Trust Shares
1999 $1.00 $0.03 $(0.03) $1.00
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
1995 1.00 0.03 (0.03) 1.00
Investor Shares
1999 $1.00 $0.03 $(0.03) $1.00
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
1995 1.00 0.03 (0.03) 1.00
Tax-Free Money Market Fund (A)
Trust Shares
1999* $1.00 $0.01 $(0.01) $1.00
For the Year Ended November 30:
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
1995 1.00 0.03 (0.03) 1.00
1994 1.00 0.02 (0.02) 1.00
Investor Shares
1999* $1.00 $0.01 $(0.01) $1.00
For the Year Ended November 30:
1998 1.00 0.03 $(0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
1995 1.00 0.03 (0.03) 1.00
1994 1.00 0.02 (0.02) 1.00
</TABLE>
- ----------
+ Total return is for the period indicated and has not been annualized.
* For the period December 1, 1998 to May 31, 1999. All ratios for the period
have been annualized.
(A) On May 24, 1999, the Crestar Tax-Free Money Fund exchanged all of its
assets and certain liabilities for shares of the Tax-Free Money Market
Fund. The Crestar Tax-Free Money Fund is the accounting survivor in this
transaction, and as a result, its basis of accounting for assets and
liabilities and its operating results for the periods prior to May 24, 1999
have been carried forward in these financial highlights.
Amounts designated as "--" are either $0 or round to $0.
34
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Net
Ratio of Investment
Ratio of Expenses to Income to
Net Average Average
Ratio of Investment Net Assets Net Assets
Net Assets Expenses Income to (Excluding (Excluding
Total End of to Average Average Waivers) and Waivers and
Return+ Period (000) Net Assets Net Assets Reimbursements) Reimbursements)
------- ------------ ---------- ---------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Prime Quality Money Market Fund
Trust Shares
1999 4.83% $3,903,232 0.60% 4.69% 0.77% 4.52%
1998 5.22% 1,880,229 0.59% 5.10% 0.77% 4.92%
1997 5.01% 1,086,555 0.58% 4.90% 0.76% 4.72%
1996 5.25% 1,050,800 0.58% 5.11% 0.78% 4.91%
1995 4.79% 799,189 0.58% 4.77% 0.79% 4.56%
Investor Shares
1999 4.66% $ 918,100 0.77% 4.52% 0.97% 4.32%
1998 5.04% 411,821 0.76% 4.93% 0.98% 4.71%
1997 4.84% 283,544 0.75% 4.74% 0.97% 4.52%
1996 5.08% 215,696 0.75% 4.94% 1.00% 4.69%
1995 4.62% 157,616 0.75% 4.55% 1.01% 4.29%
Tax-Exempt Money Market Fund
Trust Shares
1999 2.81% $ 641,640 0.52% 2.75% 0.66% 2.61%
1998 3.21% 448,023 0.51% 3.14% 0.67% 2.98%
1997 3.09% 333,006 0.50% 3.04% 0.66% 2.88%
1996 3.28% 273,613 0.50% 3.23% 0.68% 3.05%
1995 3.10% 215,413 0.45% 3.12% 0.70% 2.87%
Investor Shares
1999 2.69% $ 128,854 0.64% 2.66% 0.82% 2.48%
1998 3.09% 134,538 0.62% 3.04% 0.83% 2.83%
1997 2.97% 102,013 0.62% 2.92% 0.83% 2.71%
1996 3.16% 95,223 0.62% 3.10% 0.85% 2.87%
1995 3.00% 87,647 0.55% 3.00% 0.87% 2.68%
Tax-Free Money Market Fund (A)
Trust Shares
1999* 1.27% $ 270,431 0.67% 2.51% 0.82% 2.36%
For the Year Ended November 30:
1998 2.97% 270,899 0.66% 2.92% 0.81% 2.77%
1997 3.06% 226,837 0.66% 3.02% 0.81% 2.87%
1996 3.14% 182,320 0.66% 2.88% 0.81% 2.73%
1995 3.26% 202,333 0.66% 3.19% 0.81% 3.04%
1994 2.07% 157,602 0.67% 2.06% 0.67% 2.06%
Investor Shares
1999* 1.27% $ 5,955 0.67% 2.52% 1.06% 2.13%
For the Year Ended November 30:
1998 2.96% 8,851 0.67% 2.92% 1.07% 2.52%
1997 3.05% 7,634 0.68% 3.42% 1.08% 3.02%
1996 3.13% 2,994 0.67% 2.86% 1.07% 2.46%
1995 3.25% 1,627 0.67% 3.16% 1.07% 2.76%
1994 1.98% 757 0.76% 1.97% 1.44% 1.29%
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
FINANCIAL HIGHLIGHTS (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period From Inception Through May 31,
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Net Distributions
Asset Value Net from Net Net Asset
Beginning Investment Investment Value End
of Period Income Income of Period
----------- ---------- ------------- ---------
<S> <C> <C> <C> <C>
U.S. Government Securities
Money Market Fund
Trust Shares
1999 $1.00 $0.04 $(0.04) $1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
1995 1.00 0.05 (0.05) 1.00
Investor Shares
1999 $1.00 $0.04 $(0.04) $1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
1995 1.00 0.04 (0.04) 1.00
U.S. Treasury Money Market Fund (A)
Trust Shares
1999** $1.00 $0.02 $(0.02) $1.00
For the Year Ended November 30:
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
1995 1.00 0.05 (0.05) 1.00
Investor Shares(1)
For the Year Ended November 30:
1999 $1.00 $0.01 $(0.01) $1.00
</TABLE>
- ----------
(1) Ceased operations March 31, 1994.
* Annualized.
** For the period December 1, 1998 to May 31, 1999. All ratios for the period
have been annualized.
+ Total return is for the period indicated and has not been annualized.
(A) On May 24, 1999, the Crestar U.S. Treasury Money Fund exchanged all of its
assets and certain liabilities for shares of the U.S. Treasury Money Market
Fund. The Crestar U.S. Treasury Money Fund is the accounting survivor in
this transaction, and as a result, its basis of accounting for assets and
liabilities and its operating results for the periods prior to May 24, 1999
have been carried forward in these financial highlights.
Amounts designated as "--" are either $0 or round to $0.
36
<PAGE>
<TABLE>
<CAPTION>
Ratio of
Net
Ratio of Investment
Ratio of Expenses to Income to
Net Average Average
Ratio of Investment Net Assets Net Assets
Net Assets Expenses Income to (Excluding (Excluding
Total End of to Average Average Waivers) and Waivers and
Return+ Period (000) Net Assets Net Assets Reimbursements) Reimbursements)
------- ------------ ---------- ---------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
U.S. Government Securities
Money Market Fund
Trust Shares
1999 4.57% $404,459 0.63% 4.47% 0.76% 4.34%
1998 5.04% 377,490 0.62% 4.92% 0.78% 4.76%
1997 4.83% 344,350 0.61% 4.73% 0.76% 4.58%
1996 5.14% 325,493 0.61% 5.02% 0.78% 4.85%
1995 4.67% 434,111 0.61% 4.64% 0.80% 4.45%
Investor Shares
1999 4.41% $ 61,472 0.77% 4.32% 0.98% 4.11%
1998 4.90% 58,753 0.76% 4.79% 0.96% 4.59%
1997 4.69% 63,178 0.75% 4.59% 0.96% 4.38%
1996 4.99% 58,608 0.75% 4.88% 0.99% 4.64%
1995 4.51% 46,639 0.75% 4.51% 1.02% 4.24%
U.S. Treasury Money Market Fund (A)
Trust Shares
1999** 2.08% $760,833 0.68% 4.10% 0.83% 3.95%
For the Year Ended November 30:
1998 4.89% 699,923 0.66% 4.77% 0.81% 4.62%
1997 4.91% 632,381 0.65% 4.82% 0.80% 4.67%
1996 4.80% 389,051 0.66% 4.69% 0.81% 4.54%
1995 5.29% 370,454 0.66% 5.16% 0.81% 5.01%
Investor Shares(1)
For the Year Ended November 30:
1999 0.79% $ -- 0.92% 2.31% 29.16% (25.93%)*
</TABLE>
The Accompanying notes are an integral part of the financial statements.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS May 31, 1999
1. Organization:
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with thirty-four portfolios as of May 31, 1999:
the Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund),
the Emerging Markets Equity Fund, the Growth and Income Fund, the International
Equity Fund, the International Equity Index Fund, the Life Vision Balanced
Portfolio, the Life Vision Growth and Income Portfolio, the Life Vision Maximum
Growth Portfolio, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small
Cap Growth Stock Fund, the Sunbelt Equity Fund, the Tax Sensitive Growth Stock
Fund, the Value Income Stock Fund, (collectively the "Equity Funds"), the
Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade
Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal
Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond
Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government
Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia
Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality
Money Market Fund, the Tax-Exempt Money Market Fund, the Tax-Free Money Market
Fund, the U.S. Government Securities, the U.S. Treasury Money Market Fund
(collectively the "Retail Money Market Funds" or the "Funds"), the Classic
Institutional Cash Management Money Market Fund, the Classic Institutional U.S.
Government Securities Money Market Fund and the Classic Institutional U.S.
Treasury Securities Money Market Fund, (collectively the "Institutional Money
Market Funds"). The assets of each portfolio are segregated, and a shareholder's
interest is limited to the fund in which shares are held. Each fund's prospectus
provides a description of the fund's investment objectives, policies and
strategies. The financial statements presented herein are those of the Retail
Money Market Funds. The financial statements of the Equity Funds, the Fixed
Income Funds and the Institutional Money Market Funds are not presented herein,
but are presented separately.
On February 17, 1999 and February 19, 1999, respectively, the Board of Trustees
of the STI Classic Funds and Board of Directors of the CrestFunds Inc.
("CrestFunds") approved an Agreement and Plan of Reorganization (the
"Reorganization Agreement") providing for the transfer of all assets and
liabilities of the CrestFunds in exchange for the issuance of shares in the
Trust in a tax-free reorganization (see Note 7).
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust:
Basis of Presentation of Statements -- As more fully described in Note 7,
the STI Classic Funds acquired certain Crestar Funds in a tax-free business
combination. While each Fund now exists as a STI Classic Fund, a number of
the surviving funds for accounting purposes are Crestar Funds. In
accordance with generally accepted accounting principles, the financial
statements presented herein represent those of accounting survivors.
Accordingly, the Statements of Operations, Statements of Changes in Net
Assets and Financial Highlights presented reflect periods beginning on the
first day of the accounting survivor's fiscal year.
Security Valuation -- Investment securities held by the Funds 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.
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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.
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.
Reclassification of Components of Net Assets -- The timing and
characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may
differ from generally accepted accounting principles. As a result, net
investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from
distributions during such period. These book/tax differences may be
temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to paid-in-capital or accumulated
net realized gain, as appropriate, in the period that the differences
arise.
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, Transfer Agency Servicing and Distribution Agreements:
The Trust and SEI Investments Mutual Funds Services ("the Administrator") are
parties to an Administration Agreement dated May 29, 1995, as amended November
19, 1997 and March 1, 1999,
39
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NOTES TO FINANCIAL STATEMENTS (concluded)
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STI CLASSIC FUNDS May 31, 1999
under which the Administrator provides administrative services for an annual fee
(expressed as a percentage of the combined average daily net assets of the Trust
and STI Classic Variable Trust) of: .12% up to $1 billion, .09% on the next $4
billion, .07% on the next $3 billion, .065% on the next $2 billion and .06% for
over $10 billion.
Prior to May 24, 1999, administrative and accounting services were provided to
the CrestFunds by SEI Investments Mutual Funds Services who was entitled to
receive a fee at an annual rate of .15% of the average daily net assets of the
CrestFunds.
The 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 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
Tax-Free Money
Market Fund .40 .51 .40 .67
U.S. Government
Securities Money
Market Fund .65 .63 .17 .77
U.S. Treasury Money
Market Fund .65 .63 -- --
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.
Prior to May 24, 1999 Crestar Asset Management Company ("CAMCO") provided
investment advisory services to the CrestFunds. CAMCO was paid for advisory
services to each CrestFund money market fund at an annual rate of .40% of each
CrestFund money market fund's average daily net assets for the first $500
million of net assets, .35% of each Fund's average daily net assets on the next
$500 million of net assets, .30% of each money market fund's average daily net
assets on all remaining net assets.
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. Investment Transactions:
At May 31, 1999, the Prime Quality Money Market Fund and the Tax-Exempt Money
Market Fund had capital loss carryforwards for Federal tax purposes of $314,064
and $3,830, respectively, resulting from security sales. For tax purposes, the
losses in the Funds can be carried forward for a maximum of eight years to
offset any net realized capital gains. The carryforward for the Prime Quality
Money Market Fund expires between May 2003 and May 2005 and the carryforward for
the Tax-Exempt Money Market Fund expires between May 2004 and May 2007.
40
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7. CrestFunds Merger:
The Board of Directors and shareholders of the CrestFunds approved a
reorganization of the CrestFunds into the STI Classic Funds which was effective
on May 17, 1999 for the Prime Quality Money Market Fund and May 24, 1999 for the
Tax-Free Money Market Fund and U.S. Treasury Money Market Fund.
The following table summarizes certain relevant information of the Funds prior
to and immediately after business combinations on May 17, 1999 and May 24, 1999
and is unaudited:
<TABLE>
<CAPTION>
Shares
Outstanding Shares Issued Net Assets NAV
On Merger in Business after Per
Crest Fund Date STI Classic Fund Combination Combination Share
---------- ------------- ------------------------------ ------------- ------------- -----
<S> <C> <C> <C> <C> <C>
Cash Reserve Prime Quality Money Market (2)
Trust Shares 1,179,840,320 Trust Shares 1,179,992,513 3,898,000,842 $1.00
Investor Class A 187,019,982 Investor Shares 187,134,402 897,327,829 1.00
Investors Class B (1) 68,609 Flex Shares n/a n/a n/a
U.S. Treasury Money Fund (2) U.S. Treasury Money Market
Trust Shares 278,919,943 Trust Shares 278,919,943 278,898,164 1.00
Investor Class A 5,967,857 Investor Shares 5,967,857 5,968,442 1.00
Tax Free Money Fund (2) Tax-Free Money Market
Trust Shares 732,825,211 Trust Shares 732,825,211 732,779,926 1.00
</TABLE>
(1) Investors Class B Shares of the CrestFunds Cash Reserve Fund were exchanged
for Investors Shares of the STI Classic Prime Quality Money Market Fund.
(2) Represents the accounting survivor in this business combination.
8. 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 Tax-Exempt Money Market and Tax-Free Money Market Funds invest 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. The U.S. Government Securities
Money Market and U.S. Treasury Money Market Funds invest 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.
41
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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STI CLASSIC FUNDS May 31, 1999
To the Shareholders and Board of Trustees of
STI Classic Funds:
We have audited the accompanying statements of net assets of the Prime Quality
Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S. Government
Securities Money Market, and U.S. Treasury Money Market Funds of STI Classic
Funds (the "Trust") as of May 31, 1999, and the related statements of
operations, changes in net assets, and financial highlights for the periods
presented. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The statements of operations for the year ended November 30, 1998,
statements of changes for the years ended November 30, 1998 and November 30,
1997, and financial highlights for the periods presented prior to May 31, 1999,
for the Tax-Free Money Market and U.S. Treasury Money Market Funds were audited
by other auditors whose report dated January 15, 1999, expressed an unqualified
opinion on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of May 31, 1999, by correspondence with the custodian and
the application of alternative auditing procedures with respect to unsettled
securities transactions. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Prime Quality Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S.
Government Securities Money Market, and U.S. Treasury Money Market Funds, of STI
Classic Funds as of May 31, 1999, the results of their operations, changes in
their net assets, and financial highlights for each of the periods described in
the first paragraph above, in conformity with generally accepted accounting
principles.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
July 23, 1999
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NOTICE TO SHAREHOLDERS
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STI CLASSIC FUNDS May 31, 1999
For shareholders that do not have a May 31, 1999 tax year end, this notice is
for informational purposes only. For shareholders with a May 31, 1999 tax year
end, please consult your tax advisor as to the pertinence of this notice. For
the fiscal year ended May 31, 1999, each portfolio is designating the following
items with regard to distributions paid during the year:
<TABLE>
<CAPTION>
Long Term
(20% Rate) Ordinary
Capital Gains Income Tax-Exempt Total Qualifying
Fund Distributions Distributions Interest Distributions Dividends (1)
---- ------------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Prime Quality Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Tax-Exempt Money Market Fund 0.00% 0.02% 99.98% 100.00% 0.00%
Tax Free-Money Market Fund 0.00% 0.00% 100.00% 100.00% 0.00%
U.S. Government Securities
Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
U.S. Treasury Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
</TABLE>
- ------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of "Ordinary
Income Distribution".
43
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NOTES
<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.
