SEMI-ANNUAL
FINANCIAL REPORT
STI CLASSIC VARIABLE TRUST
JUNE 30, 1999
(LOGO) [GRAPHIC OMITTED]
<PAGE>
Dear STI Classic Variable Trust Shareholders:
The following 1999 Semi-Annual Financial Report provides you a detailed summary
of each of the STI Classic Variable Trust Funds. The STI Classic Funds and the
STI Classic Variable Trust Funds have presented investors exposure to a variety
of investment opportunities since 1992. The six STI Classic Variable Trust Funds
were developed specifically to meet the rapidly changing needs of today's
investor. Each of these funds offers an investment discipline that identifies a
specific mix of risk and return. Together, the STI Classic Variable Trust Funds
complement one another, providing access to different segments of the stock and
bond markets. The combination of these funds is intended to offer the ideal
investment program for almost any investor.
The financial statements presented herein relate only to the Value Income Stock
Fund, Capital Appreciation Fund, and International Equity Fund.
<TABLE>
<CAPTION>
STI CLASSIC VARIABLE TRUST FUNDS (UNAUDITED)
NET OF FEES PERFORMANCE AS OF JUNE 30, 1999
THREE SINCE INCEPTION INCEPTION
MONTHS ONE YEAR THREE YEARS (ANNUALIZED) DATE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STI CLASSIC VARIABLE TRUST
VALUE INCOME STOCK FUND 14.48% 15.24% 19.71% 20.41% 10/2/95
- -----------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST
CAPITAL APPRECIATION FUND 8.56% 19.40% 29.32% 28.83% 10/2/95
- -----------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST
INTERNATIONAL EQUITY FUND 2.68% (1.50%) N/A 12.05% 11/7/96
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RETURNS.
</FN>
</TABLE>
The STI Classic Variable Trust is a well-established family of mutual funds,
nationally recognized for the diversity and quality of investment options that
they provide. As the advisor to the STI Classic Variable Trust, STI Capital
Management is committed to providing you quality investment products which will
aid you in achieving your investment objectives.
I hope you will find the information on the following pages useful. It is
intended to give you a better understanding of how our portfolio managers are
investing your money. Thank you for your interest and participation in the STI
Classic Variable Trust. We look forward to many successful years of investing in
the future.
Sincerely,
/s/ [SIGNATURE]
Anthony R. Gray
Chief Executive Officer and Chief Investment Officer
STI Capital Management, N.A.
1
<PAGE>
STATEMENT OF NET ASSETS
- ------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999
VALUE INCOME STOCK FUND
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
COMMON STOCKS (89.0%)
BASIC MATERIALS (10.9%)
Allegheny Teledyne 64,800 $ 1,466
B.F. Goodrich 35,700 1,517
Boise Cascade 35,200 1,509
Consolidated Papers 26,300 703
Du Pont (EI) de Nemours 16,600 1,134
Engelhard 42,300 957
Hercules 30,000 1,179
Minnesota Mining & Manufacturing 13,400 1,165
Reynolds Metals 17,200 1,015
Sonoco Products 42,630 1,276
Worthington Industries 38,800 638
--------
12,559
--------
CAPITAL GOODS (12.6%)
Cooper Industries 35,700 1,856
Corning 8,600 603
Crown Cork & Seal 22,400 638
Dana 19,000 875
Emerson Electric 24,400 1,534
Harris 23,900 937
Hubbell, Cl B 22,500 1,021
National Service Industries 32,500 1,170
Northrop Grumman 26,000 1,724
Pall 48,800 1,083
Raytheon, Cl B 11,400 802
Tenneco 36,700 876
Thomas & Betts 31,600 1,493
--------
14,612
--------
COMMUNICATION SERVICES (3.5%)
Alltel 11,400 815
GTE 43,200 3,272
--------
4,087
--------
CONSUMER CYCLICALS (11.1%)
Albertson's 33,000 1,702
American Greetings, Cl A 29,100 877
Genuine Parts 34,300 1,200
H&R Block 36,400 1,820
J.C. Penney 43,000 2,088
Masco 58,900 1,701
Ryder 33,100 861
Stanley Works 37,100 1,194
TRW 25,800 1,416
--------
12,859
--------
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
CONSUMER STAPLES (12.3%)
Bestfoods 33,900 $ 1,678
ConAgra 84,800 2,258
Dean Foods 28,600 1,189
Flowers Industries 13,100 284
Fortune Brands 29,800 1,233
H.J. Heinz 23,300 1,168
International Flavors & Fragrances 38,100 1,691
Kimberly Clark 35,500 2,023
McCormick 26,400 833
Newell Rubbermaid 25,300 1,176
Wallace Computer Services 28,900 722
--------
14,255
--------
ENERGY (6.7%)
Atlantic Richfield 15,700 1,312
Baker Hughes 27,500 921
Fort James 21,800 826
Kerr-McGee 17,100 858
Murphy Oil 19,100 932
Texaco 26,500 1,657
Unocal 31,600 1,252
--------
7,758
--------
FINANCE (16.4%)
Allstate 33,500 1,202
American Financial Group 22,800 777
American General 14,700 1,108
Bank of America 35,700 2,617
Bank One 39,900 2,377
BankBoston 31,100 1,590
Cigna 17,400 1,549
First American of Tennessee 20,400 848
Hibernia, Cl A 47,900 751
KeyCorp 41,200 1,324
Paine Webber Group 15,800 739
PNC Bank 26,200 1,510
Summit Bancorp 27,000 1,129
Torchmark 19,100 652
Union Planters 18,636 833
--------
19,006
--------
HEALTH CARE (9.0%)
Abbott Laboratories 52,300 2,380
American Home Products 53,100 3,053
Baxter International 44,600 2,704
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
<PAGE>
- ------------------------------------------------------------------
UNAUDITED
- ------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------
HEALTH CARE (CONTINUED)
Bristol-Myers Squibb 16,300 $ 1,148
Pharmacia Upjohn ADR 20,100 1,142
--------
10,427
--------
TECHNOLOGY (3.5%)
EG&G 39,300 1,400
Xerox 44,100 2,605
--------
4,005
--------
UTILITIES (3.0%)
Consolidated Natural Gas 11,500 699
GPU 20,700 873
Questar 47,500 908
Scana 41,200 963
--------
3,443
--------
Total Common Stocks
(Cost $93,410) 103,011
--------
REPURCHASE AGREEMENT (10.6%)
Morgan Stanley
4.850%, dated 06/30/99,
matures 07/01/99, repurchase
price $12,225,286 (collateralized
by U.S. Agency Obligations:
market value $12,485,692) (A) $12,224 12,224
--------
Total Repurchase Agreement
(Cost $12,224) 12,224
--------
Total Investments (99.6%)
(Cost $105,634) 115,235
--------
OTHER ASSETS AND LIABILITIES, NET (0.4%) 427
--------
- ------------------------------------------------------------------
VALUE (000)
- ------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 6,858,477 outstanding
shares of beneficial interest $ 92,270
Accumulated net realized gain on
investments 13,606
Net unrealized appreciation on
investments 9,601
Undistributed net investment income 185
--------
Total Net Assets (100.0%) $115,662
========
Net Asset Value, Offering and Redemption
Price Per Share $16.87
========
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
(A) TRI-PARTY REPURCHASE AGREEMENT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
3
<PAGE>
STATEMENT OF NET ASSETS
- ------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999
CAPITAL APPRECIATION FUND
- ------------------------------------------------------------------
SHARES
- ------------------------------------------------------------------
COMMON STOCKS (93.4%)
BASIC MATERIALS (1.7%)
Air Products & Chemicals 48,700 $ 1,960
Ecolab 2,200 96
Rohm & Haas 4,757 204
--------
2,260
--------
CAPITAL GOODS (12.2%)
Allied Waste Industries* 23,600 466
Browning Ferris Industries 2,200 95
General Electric 45,200 5,108
Honeywell 11,200 1,298
Lockheed Martin 5,900 220
Republic Services, Cl A* 23,400 579
Textron 12,400 1,021
Tyco International 31,040 2,941
United Technologies 27,700 1,986
Waste Management Inc* 44,369 2,385
--------
16,099
--------
COMMUNICATION SERVICES (3.5%)
AT&T 15,549 868
Centurytel 27,300 1,085
Fox Entertainment Group, Cl A* 11,000 296
GTE 11,200 848
MCI WorldCom* 12,112 1,042
Nokia, Cl A ADR 4,400 403
Vodafone ADR 750 148
--------
4,690
--------
CONSUMER CYCLICALS (18.1%)
Albertson's 10,065 519
Automatic Data Processing 7,800 343
Carnival 35,600 1,727
Costco* 27,300 2,186
CVS 36,200 1,837
Dayton Hudson 10,100 656
Eastman Kodak 1,800 122
Federated Department Stores* 6,300 334
Gannett 20,400 1,456
Hasbro 31,400 877
Home Depot 1,900 122
Interpublic Group 1,400 121
Lear* 15,700 781
Lowe's Companies 50,400 2,857
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Masco 60,700 $ 1,753
Mattel 34,300 907
Maytag 5,600 390
McGraw-Hill 17,800 960
New York Times, Cl A 11,500 423
Office Depot* 82,100 1,811
Promus Hotel* 6,600 205
Saks* 28,500 823
SPX* 3,700 309
Starwood Hotels and Resorts 12,800 391
Tandy 41,300 2,019
Young & Rubicam 600 27
--------
23,956
--------
CONSUMER STAPLES (12.4%)
Anheuser Busch 5,100 362
Avon Products 10,900 605
Cendant* 62,206 1,275
Clorox 7,400 790
Coca-Cola 23,200 690
ConAgra 22,201 591
Flowers Industries 12,100 262
Fort James 8,000 303
Gillette 1,600 66
Kroger* 60,700 1,696
McDonald's 8,900 368
Nabisco Group Holdings 34,700 679
Pepsi Bottling Group* 21,800 503
PepsiCo 24,600 952
Philip Morris 6,000 241
Procter & Gamble 6,000 535
Ralston Purina 24,300 740
Rite Aid 45,700 1,125
Safeway* 19,400 960
Sara Lee 38,400 871
Seagram 4,800 242
Suiza Foods* 3,000 126
Unilever NV 882 62
US Foodservice* 20,600 878
United Rentals* 23,300 687
Viacom, Cl B* 18,200 801
--------
16,410
--------
4
<PAGE>
- ------------------------------------------------------------------
UNAUDITED
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
ENERGY (3.1%)
Anadarko Petroleum 8,600 $ 317
Atlantic Richfield 6,700 560
Halliburton 1,800 81
Mobil 5,700 564
Niagara Mohawk Holdings* 7,500 120
Texaco 31,000 1,937
Union Pacific Resources Group 1,201 20
Unocal 12,700 503
--------
4,102
--------
FINANCE (11.5%)
Ace 20,100 568
Allstate 10,000 359
American International Group 11,103 1,300
Associates First Capital 13,600 603
Bank of America 16,042 1,176
Bank of New York 11,300 415
Bank One 13,860 825
Bank United, Cl A 7,300 293
BankBoston 12,800 654
Citigroup 4,500 214
Compass Bancshares 18,150 495
Conseco 26,300 801
FHLMC 8,400 487
First American of Tennessee 3,400 141
First Security 15,600 425
Household International 19,866 941
Mellon Bank 39,400 1,433
Morgan Stanley 1,700 174
North Fork Bancorporation 13,300 283
PNC Bank 13,500 778
Providian Financial 1,600 150
Radian Group 2,100 103
Torchmark 23,500 802
U.S. Bancorp 14,900 507
Unum 9,400 515
Washington Mutual 24,368 862
Wells Fargo 1,200 52
--------
15,356
--------
HEALTH CARE (11.3%)
Abbott Laboratories 27,200 1,238
Alza* 15,200 773
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
HEALTH CARE (CONTINUED)
American Home Products 15,400 $ 885
Baxter International 20,600 1,249
Becton Dickinson 13,100 393
Bristol-Myers Squibb 24,300 1,712
Cardinal Health 16,633 1,067
Eli Lilly 11,400 816
Forest Laboratories* 11,600 536
Health Management
Associates, Cl A* 11,800 133
Healthsouth* 30,302 453
Medtronic 4,904 382
Merck 32,400 2,398
Schering Plough 8,300 440
Tenet Healthcare* 24,800 460
Warner Lambert 27,200 1,887
Watson Pharmaceuticals* 3,900 137
--------
14,959
--------
TECHNOLOGY (18.8%)
ADC Telecommunications* 15,500 706
3Com* 5,500 147
Amgen* 4,500 274
Analog Devices* 12,200 612
BMC Software* 2,400 130
Ceridian* 44,200 1,445
Cisco Systems* 43,800 2,822
Compaq Computer 3,824 92
Computer Sciences* 3,900 270
Comverse Technology* 1,400 106
EMC* 25,600 1,408
Hewlett Packard 14,200 1,427
IBM 35,400 4,575
Intel 15,700 934
Lucent Technologies 18,810 1,268
Microsoft* 36,700 3,310
Networks Associates* 19,208 282
Nortel Networks 10,200 885
Raytheon, Cl B 2,800 197
Sun Microsystems* 21,800 1,501
Texas Instruments 7,400 1,073
Xerox 23,200 1,370
--------
24,834
--------
5
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999
CAPITAL APPRECIATION FUND--CONCLUDED
- ------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------
TRANSPORTATION (0.7%)
AMR* 1,700 $ 116
Burlington Northern Santa Fe 11,100 344
Delta Air Lines 6,200 357
Trans World Air* 2,400 81
--------
898
--------
UTILITIES (0.1%)
Consolidated Natural Gas 1,800 109
--------
Total Common Stocks
(Cost $97,103) 123,673
--------
PREFERRED STOCKS (0.2%)
CONSUMER CYCLICALS (0.2%)
Comcast, CV to 1.425 Shares 3,300 285
--------
Total Preferred Stocks
(Cost $272) 285
--------
REPURCHASE AGREEMENT (5.2%)
Morgan Stanley
4.850%, dated 06/30/99, matures
07/01/99, repurchase price
$6,897,756 (collateralized by
U.S. Agency Obligations:
market value $7,044,804) (A) $6,897 6,897
--------
Total Repurchase Agreement
(Cost $6,897) 6,897
--------
Total Investments (98.8%)
(Cost $104,272) 130,855
--------
OTHER ASSETS AND LIABILITIES, NET (1.2%) 1,525
--------
- ------------------------------------------------------------------
VALUE (000)
- ------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 5,983,298 outstanding
shares of beneficial interest $ 93,502
Accumulated net realized gain on
investments 12,235
Net unrealized appreciation on
investments 26,583
Undistributed net investment income 60
--------
otal Net Assets (100.0%) $132,380
========
Net Asset Value, Offering and Redemption
Price Per Share $22.13
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
CV-- CONVERTIBLE SECURITY
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
(A) TRI-PARTY REPURCHASE AGREEMENT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
- ------------------------------------------------------------------
UNAUDITED
INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
FOREIGN COMMON STOCKS (93.3%)
AUSTRALIA (2.6%)
Broken Hill Proprietary 10,461 $ 122
Leighton Holdings 39,600 156
National Australia Bank 12,100 202
-------
480
-------
AUSTRIA (1.0%)
Erste Bank* 3,200 183
-------
BRAZIL (0.9%)
Tele Norte Leste Participacoes ADR 9,100 169
-------
CANADA (3.3%)
Nortel Networks 4,480 386
Teleglobe 7,900 235
-------
621
-------
DENMARK (0.8%)
Novo-Nordisk, Cl B 1,370 148
-------
FINLAND (3.9%)
Merita 37,400 213
Nokia ADR, Cl A 1,700 156
Nokia Oyj 1,500 132
Sonera Group Oyj 10,900 239
-------
740
-------
FRANCE (13.4%)
Accor 620 156
Assurances Generales de France 3,200 155
Axa 1,635 200
Dexia France 1,490 200
Elf Aquitane 1,300 191
Equant* 1,775 164
Lafarge 1,945 185
Michelin, Cl B 2,850 117
SEITA 1,235 71
Suez Lyonnaise des Eaux 1,350 244
Technip 2,640 297
Valeo* 1,500 124
Vivendi 5,194 422
-------
2,526
-------
GERMANY (6.8%)
DaimlerChrysler 2,600 226
Mannesmann 2,820 422
Metallgesellschaft 11,450 211
Preussag 4,210 227
Siemens 2,500 193
-------
1,279
-------
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
GREECE (2.6%)
Hellenic Telecom Organization 11,280 $ 243
Panafon Hellenic Telecom* 10,300 249
-------
492
-------
HONG KONG (0.9%)
HongKong Electric Holdings 52,000 168
-------
INDONESIA (0.1%)
Modern Photo Film, F* 60,000 22
-------
IRELAND (2.2%)
Bank of Ireland 24,288 408
-------
ISRAEL (2.0%)
Comverse Technology 2,000 151
ECI Telecommunications 6,570 218
-------
369
-------
ITALY (2.8%)
Banca Nazionale del Lavoro* 41,250 130
ENI 30,800 184
San Paolo-IMI 12,370 169
Tecnost* 14,880 37
-------
520
-------
JAPAN (9.7%)
Bank of Tokyo Mitsubishi 10,500 149
Eisai 4,400 87
FamilyMart 2,000 92
Honda Motor 4,000 169
Nippon Telegraph & Telephone 3 35
NTT Mobile Communications
Network-New* 24 321
NTT Mobile Communications
Network 6 81
Olympus Optical 13,000 192
Promise 2,700 159
Sumitomo Bank 10,200 126
Takefuji 2,300 237
TDK 1,300 119
Terumo 2,300 51
-------
1,818
-------
MEXICO (3.1%)
Fomento Economico Mexicano ADR 5,600 223
Grupo Televisa GDR* 2,100 94
Telefonos de Mexico ADR 3,300 267
-------
584
-------
7
<PAGE>
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 UNAUDITED
INTERNATIONAL EQUITY FUND--CONCLUDED
- ------------------------------------------------------------------
SHARES VALUE (000)
- ------------------------------------------------------------------
NETHERLANDS (10.2%)
Ahold 5,500 $ 190
ASM Lithography Holding* 3,900 226
ING Groep 4,763 259
KPN 8,027 378
Philips Electronics 3,760 372
TNT Post Group 8,763 210
Unique International 6,623 162
Wolters Kluwer 2,950 118
-------
1,915
-------
NEW ZEALAND (2.0%)
Fernz 30,700 90
Fletcher Challenge Building 55,038 81
Telecom of New Zealand 46,050 199
-------
370
-------
NORWAY (1.0%)
Petroleum Geo Services ADR* 1,400 21
Petroleum Geo Services* 10,800 163
-------
184
-------
PANAMA (0.7%)
Banco Latinamericano de
Exportaciones 4,600 123
-------
PORTUGAL (0.9%)
BPI-SGPS* 3,188 67
Portugal Telecom ADR 2,400 99
-------
166
-------
SINGAPORE (1.0%)
Overseas Chinese Banking 23,000 192
-------
SOUTH KOREA (0.6%)
Korea Electric Power ADR 5,400 111
-------
SPAIN (2.8%)
Argentaria 12,000 274
Telefonica Bonus Rights* 4,000 4
Telefonica de Espana 5,300 256
-------
534
-------
SWEDEN (2.0%)
Castellum 12,300 117
Electrolux 7,000 148
Swedish Match 32,800 118
-------
383
-------
- ------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------
SWITZERLAND (1.1%)
Compagnie Financiere Richemont 60 $ 116
Novartis, Registered 60 88
-------
204
-------
UNITED KINGDOM (12.7%)
Allied Zurich 15,550 196
AstraZeneca Group 4,050 157
Bass 7,460 108
British Energy PLC 22,500 192
COLT Telecom Group* 12,600 264
Diageo 18,832 197
Glaxo Wellcome 4,100 114
Granada Group* 7,000 130
Lloyds TSB Group 14,318 194
National Westminster Bank 7,003 148
Railtrack Group 7,800 159
Securicor 23,300 204
SmithKline Beecham 14,640 190
South African Breweries* 16,465 141
-------
2,394
-------
UNITED STATES (2.2%)
Global TeleSystems Group* 5,046 409
-------
Total Foreign Common Stocks
(Cost $16,090) 17,512
-------
CORPORATE FOREIGN BONDS (0.1%)
Tecnost (A)
4.487%, 06/23/04 EU 24 26
-------
Total Corporate Foreign Bonds
(Cost $19) 26
-------
Total Investments (93.4%)
(Cost $16,109) $17,538
=======
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
EU -- EURO
F -- FOREIGN
GDR -- GLOBAL DEPOSITORY RECEIPT
PLC -- PUBLIC LIMITED CORPORATION
(A)VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT ON JUNE 30, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (000)
- ------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 UNAUDITED
-------------
INTERNATIONAL
EQUITY
FUND
-------------
Assets:
<S> <C>
Investments at Market Value (Cost $16,109) ................................................. $17,538
Cash and Foreign Currency .................................................................. 632
Receivables for Investment Securities Sold ................................................. 735
Receivables for Portfolio Shares Purchased ................................................. 7
Other Assets ............................................................................... 71
-------
Total Assets ............................................................................... 18,983
-------
Liabilities:
Payables for Investment Securities Purchased ............................................... 159
Accrued Expenses ........................................................................... 44
Other Liabilities .......................................................................... 5
-------
Total Liabilities .......................................................................... 208
-------
Net Assets:
Portfolio Shares (unlimited authorization -- no par value)
based on 1,401,783 outstanding shares of beneficial interest ............................. 16,394
Accumulated net realized gain on investments ............................................... 787
Net unrealized depreciation on forward foreign currency contracts, foreign
currency, and translation of other assets and liabilities in foreign currency ............ (2)
Net unrealized appreciation on investments ................................................. 1,429
Undistributed net investment income ........................................................ 167
-------
Total Net Assets ........................................................................... $18,775
=======
Net Asset Value, Offering and Redemption Price Per Share ...................................... $ 13.39
=======
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
- ---------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1999 UNAUDITED
VALUE
INCOME CAPITAL INTERNATIONAL
STOCK APPRECIATION EQUITY
FUND FUND FUND
----------- ------------ -------------
Investment Income:
<S> <C> <C> <C>
Interest Income ................................... $ 253 $ 206 $ 11
Dividend Income ................................... 1,259 551 240
Less: Foreign Taxes Withheld ...................... -- -- (15)
------- ------- -----
Total Investment Income 1,512 757 236
------- ------- -----
Expenses:
Investment Advisory Fees .......................... 413 660 115
Less: Investment Advisory Fees Waived ............. (3) (108) (48)
Administrator Fees ................................ 31 31 37
Custody Fees ...................................... 13 20 20
Transfer Agent Fees ............................... 12 15 3
Professional Fees ................................. 12 24 6
Trustee Fees ...................................... 2 3 --
Registration Fees ................................. -- -- 4
Printing Expenses ................................. 6 13 2
Pricing Fees ...................................... 2 1 6
Insurance and Other Fees .......................... 2 -- 1
Amortization of Deferred Organization Costs ....... 1 1 2
------- ------- -----
Total Expenses ................................ 491 660 148
------- ------- -----
Net Investment Income (Loss) ................ 1,021 97 88
------- ------- -----
Net Realized Gain (Loss) on Securities Sold ....... 5,104 4,662 517
Net Realized Loss on Foreign Currency Transactions -- -- (13)
Net Unrealized Appreciation
(Depreciation) on Investments .................. 6,947 7,360 (99)
Net Unrealized Depreciation on Forward
Currency Contracts, Foreign Currency,
and Translation of Other Assets
and Liabilities in Foreign Currency ............. -- -- (4)
------- ------- -----
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency ...... 12,051 12,022 401
------- ------- -----
Increase (Decrease) in Net Assets from Operations ... $13,072 $12,119 $ 489
======= ======= =====
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
- ---------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS
UNAUDITED
VALUE INCOME CAPITAL APPRECIATION INTERNATIONAL
STOCK FUND FUND EQUITY FUND
----------------------- --------------------- ----------------------
01/01/99- 01/01/98- 01/01/99- 01/01/98- 01/01/99- 01/01/98-
06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98
-------- -------- -------- -------- -------- --------
Investment Activities:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) ...................... $ 1,021 $ 1,696 $ 97 $ 356 $ 88 $ 108
Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions ............... 5,104 8,551 4,662 7,815 504 255
Net Unrealized Appreciation (Depreciation)
on Investments .................................. 6,947 (2,853) 7,360 12,917 (99) 1,029
Net Unrealized Appreciation (Depreciation)
on Forward Foreign Currency Contracts,
Foreign Currency, and Translation of Other
Assets and Liabilities in Foreign Currency ...... -- -- -- -- (4) 2
-------- ------- -------- -------- ------- -------
Increase (Decrease) in Net Assets Resulting
from Operations ................................. 13,072 7,394 12,119 21,088 489 1,394
-------- ------- -------- -------- ------- -------
Distributions to Shareholders:
Net Investment Income ............................. (1,061) (1,696) (97) (356) -- (21)
Capital Gains ..................................... -- (6,777) -- (8,084) -- (113)
-------- ------- -------- -------- ------- -------
Total Distributions ............................... (1,061) (8,473) (97) (8,440) -- (134)
-------- ------- -------- -------- ------- -------
Capital Transactions:
Proceeds from Shares Issued ....................... 6,315 23,136 16,434 26,149 1,382 5,290
Reinvestment of Cash Distributions ................ 1,061 8,473 97 8,440 -- 134
Cost of Shares Repurchased ........................ (2,484) (4,518) (1,733) (3,554) (2,022) (1,605)
-------- ------- -------- -------- ------- -------
Increase (Decrease) in Net Assets from
Capital Transactions ............................ 4,892 27,091 14,798 31,035 (640) 3,819
-------- ------- -------- -------- ------- -------
Total Increase (Decrease) in Net Assets ........... 16,903 26,012 26,820 43,683 (151) 5,079
-------- ------- -------- -------- ------- -------
Net Assets:
Beginning of Period ............................... 98,759 72,747 105,560 61,877 18,926 13,847
-------- ------- -------- -------- ------- -------
End of Period ..................................... $115,662 $98,759 $132,380 $105,560 $18,775 $18,926
======== ======= ======== ======== ======= =======
Shares Issued and Redeemed:
Shares Issued ..................................... 404 1,451 797 1,374 105 406
Shares Issued in Lieu of Cash Distributions ....... 67 622 5 510 -- 11
Shares Redeemed ................................... (161) (307) (85) (200) (153) (134)
-------- ------- -------- -------- ------- -------
Net Share Transactions ............................ 310 1,766 717 1,684 (48) 283
======== ======= ======== ======== ======= =======
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS FOR THE PERIODS FROM INCEPTION THROUGH JUNE 30, 1999
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET REALIZED AND
NET ASSET VALUE INVESTMENT UNREALIZED GAINS (LOSSES) DISTRIBUTIONS FROM DISTRIBUTIONS FROM
BEGINNING OF PERIOD INCOME (LOSS) ON INVESTMENTS NET INVESTMENT INCOME REALIZED CAPITAL GAINS
------------------- ------------- ------------------------- --------------------- ----------------------
VALUE INCOME STOCK FUND
<S> <C> <C> <C> <C> <C> <C>
1999 $15.08 $ 0.15 $ 1.80 $(0.16) $ --
1998 15.21 0.27 1.02 (0.28) (1.14)
1997 12.41 0.28 3.02 (0.28) (0.22)
1996 10.67 0.23 1.74 (0.23) --
1995 (1) 10.00 0.06 0.67 (0.06) --
CAPITAL APPRECIATION FUND (A)
1999 $20.04 $ 0.02 $ 2.09 $(0.02) $ --
1998 17.27 0.07 4.54 (0.08) (1.76)
1997 13.06 0.10 4.63 (0.10) (0.42)
1996 10.66 0.12 2.40 (0.12) --
1995 (1) 10.00 0.04 0.66 (0.04) --
INTERNATIONAL EQUITY FUND
1999 $13.05 $ 0.06 $ 0.28 $ -- $ --
1998 11.87 0.10 1.17 (0.01) (0.08)
1997 10.16 0.03 1.68 -- --
1996 (2) 10.00 0.01 0.16 (0.01) --
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO OF EXPENSES TO
NET ASSETS NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS
VALUE END TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS
OF PERIOD RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS)
--------- ------ ------------ ------------------ ------------------ -------------------
VALUE INCOME STOCK FUND
<S> <C> <C> <C> <C> <C> <C> <C>
1999 $16.87 12.99% $115,662 0.95% 1.98% 0.96%
1998 15.08 9.69 98,759 0.95 1.90 1.11
1997 15.21 26.82 72,747 0.95 2.09 1.23
1996 12.41 18.64 31,216 0.95 2.45 1.95
1995 (1) 10.67 7.31 4,015 0.95 2.98 5.72
CAPITAL APPRECIATION FUND (A)
1999 $22.13 10.52% $132,380 1.15% 0.17% 1.34%
1998 20.04 28.97 105,560 1.15 0.43 1.41
1997 17.27 36.54 61,877 1.15 0.70 1.60
1996 13.06 23.75 25,189 1.15 1.15 2.43
1995 (1) 10.66 6.96 3,778 1.15 1.69 6.18
INTERNATIONAL EQUITY FUND
1999 $13.39 2.61% $ 18,775 1.60% 0.96% 2.12%
1998 13.05 10.80 18,926 1.60 0.63 2.07
1997 11.87 16.84 13,847 1.60 0.41 2.93
1996 (2) 10.16 1.70 995 1.60 1.83 31.39
</TABLE>
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
Net(Excluding Waivers Turnover
Beginand Reimbursements) Rate
------------------------ ----------
VALUE INCOME STOCK FUND
1999 1.97% 40.82%
1998 1.74 76.36
1997 1.81 104.84
1996 1.45 79.80
1995 (1) (1.79) 7.17
CAPITAL APPRECIATION FUND (A)
1999 (0.02)% 77.60%
1998 0.17 219.17
1997 0.25 195.86
1996 (0.13) 148.48
1995 (1) (3.34) 8.05
INTERNATIONAL EQUITY FUND
1999 0.44% 106.24%
1998 0.16 128.93
1997 (0.92) 99.14
1996 (2) (27.96) --
(1) Commenced operations on October 2, 1995. All ratios for the period have been
annualized.
(2) Commenced operations on November 7, 1996. All ratios for the
period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(A) During the period ended June 30, 1999, the Capital Growth Fund changed its
name to the Capital Appreciation Fund.
Amounts designated as "--" are either $0 or rounded to $0.
12 & 13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999
1. Organization
The STI Classic Variable Trust (the "Trust") was organized as a Massachusetts
business trust under a Declaration of Trust dated April 18, 1995. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with six funds: the Value Income Stock Fund, the
Mid-Cap Equity Fund, the Small Cap Equity Fund, the Capital Appreciation Fund
(formerly the Capital Growth Fund), the International Equity Fund (collectively
"the Equity Funds") and the Investment Grade Bond Fund. The assets of each Fund
are segregated, and a shareholder's interest is limited to the Fund in which
shares are held. The Fund's prospectus provides a description of each Fund's
investment objective policies and strategies. The financial statements presented
herein are those of the Value Income Stock Fund, the Capital Appreciation Fund,
and the International Equity Fund. The financial statements of the Mid-Cap
Equity Fund, the Small Cap Equity Fund, and the Investment Grade Bond Fund are
not presented herein, but presented separately.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust. These policies are in conformity with generally accepted accounting
principles.
SECURITY VALUATION -- Investments in equity securities that are traded on a
national securities exchange (or reported on the NASDAQ national market
system) are valued at the last quoted sales price, if readily available for
such equity securities, on each business day. If there is no such reported
sale, these securities, and unlisted securities for which market quotations
are readily available, are valued at the most recently quoted bid price.
Foreign securities in the International Equity Fund are valued based upon
quotations from the primary market in which they are traded.
Debt obligations exceeding sixty days to maturity for which market
quotations are readily available are valued at the most recently quoted bid
price. Debt obligations with sixty days or less until maturity may be
valued either at the most recently quoted bid price or at their amortized
cost.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company for Federal income tax purposes and distribute
all of its taxable income and net capital gains. Accordingly, no provisions
for Federal income taxes are required.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Dividend
income is recognized on ex-dividend date, and interest income is recognized
on an accrual basis and includes, where applicable, the pro rata
amortization of premium or accretion of discount. The cost used in
determining net realized capital gains and losses on the sale of securities
are those of the specific securities sold, adjusted for the accretion and
amortization of purchase discounts and premiums during the applicable
holding period. Purchase discounts and premiums on securities are accreted
and amortized to maturity using the scientific interest method, which
approximates the effective interest method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the repurchase 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 an
insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day. It is computed by dividing the assets of
each Fund, less its liabilities, by the number of outstanding shares. The
offering price per share of the Funds is the net asset value per share.
FOREIGN CURRENCY TRANSACTIONS -- With respect to the International
Equity Fund, the books and records are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars on the following basis:
o market value of investment securities, assets and
liabilities at the current rate of exchange; and
o purchases and sales of investment securities, income, and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The International Equity Fund does not isolate the portion of gains and
losses on investments in equity securities that is due to changes in the
foreign exchange rates from that which is due to change in market prices of
equity securities.
The International Equity Fund reports certain foreign currency-related
transactions as components of realized gains for financial reporting
purposes, whereas such components are treated as ordinary income for
Federal income tax purposes.
OTHER -- Distributions from net investment income for the Value Income
Stock Fund and the Capital Appreciation Fund are declared and paid
quarterly to shareholders. Distributions from net investment income for the
International Equity Fund are declared and paid annually to shareholders.
Any net realized capital gains are distributed to shareholders at least
annually. Expenses related to a specific Fund are
14
<PAGE>
- --------------------------------------------------------------------------------
UNAUDITED
charged to that Fund. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets.
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. Administration and Distribution Agreements
The Trust and SEI Investments Mutual Funds Services (the "Administrator") are
parties to an administration agreement (the "Administration Agreement") dated
August 18, 1995 as amended November 19, 1997. Under the terms of the
Administration Agreement the Administrator is entitled to a fee, subject to a
minimum, (expressed as a percentage of the combined average daily net assets of
the Trust and the STI Classic Funds) of: .12% up to $1 billion, .09% on the next
$4 billion, .07% on the next $3 billion, .065% on the next $2 billion, and .06%
for over $10 billion.
The Trust and Federated Services Company are parties to a Transfer Agency
servicing agreement dated August 2, 1995 under which Federated Services Company
provides transfer agency services to the Trust.
The Trust and SEI Investments Distribution Co. ("the Distributor") are parties
to a Distribution Agreement dated August 2, 1995. The Distributor receives no
fees for its services under this agreement.
4. Investment Advisory Agreement
Investment advisory services are provided to the Trust by STI Capital
Management, N.A. ("STI Capital"). Under the terms of the investment advisory
agreements, STI Capital is entitled to receive a fee from the Fund, computed
daily and paid monthly, at an annual rate of 1.15%, .80% and 1.25% of the
average daily net assets of the Capital Appreciation Fund, Value Income Stock
Fund, and International Equity Fund, respectively. STI Capital has voluntarily
agreed to waive all or a portion of its fees (and to reimburse Funds' expenses)
in order to limit operating expenses. Fee waivers and expense reimbursements are
voluntary and may be terminated at any time.
SunTrust Bank, Atlanta acts as Custodian for all the Funds except the
International Equity Fund which has a custodian agreement with the Bank of New
York. Fees of the Custodian are paid on the basis of net assets. 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.
5. Organizational Costs and Transactions
with Affiliates
The Trust incurred organization costs of approximately $55,566. These costs have
been deferred in the accounts of the Funds and are being amortized on a straight
line basis over a period of sixty months commencing with operations. The costs
include legal fees of approximately $44,153 for organizational work performed by
a law firm of which two officers of the Trust are partners. In the event any of
the initial shares of the Trust are redeemed by any holder thereof during the
period that the Trust is amortizing its organizational costs, the redemption
proceeds payable to the holder thereof by the Trust will be reduced by the
unamortized organizational cost in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
Certain officers of the Trust are also officers of the Administrator and/or the
Distributor. Such officers are paid no fees by the Trust for serving as officers
of the Trust.
The Fund has entered into an agreement with SEI Investments to manage the
investments of repurchase agreements for the Funds. For its services the
Liquidity Desk received $10,624.03 for the year ended June 30, 1999.
6. Investment Transactions
The cost of security purchases and the proceeds from security sales, excluding
short-term investments, for the six month period ended June 30, 1999 were as
follows:
U.S. GOVT. U.S. GOVT.
PURCHASES SALES PURCHASES SALES
(000) (000) (000) (000)
------------ ------------ ------------ ------------
Value Income Stock Fund $41,148 $ 38,029 $ -- $ --
Capital Appreciation Fund 97,159 83,515 -- --
International Equity Fund 18,970 19,584 -- --
At June 30, 1999, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the
Investment Grade Bond and Equity Funds at June 30, 1999 was as follows:
NET UNREALIZED
APPRECIATION/ DEPRECIATED APPRECIATED
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
---------- ---------- ------------
Value Income Stock Fund $11,789 $(2,188) $ 9,601
Capital Appreciation Fund 29,369 (2,786) 26,583
International Equity Fund 1,998 (569) 1,429
15
<PAGE>
NOTES
<PAGE>
Investment Advisor:
STI Capital Management, N.A.
STI Classic Variable Trust 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 Variable
Trust Fund will achieve its investment objective. The STI Classic Variable Trust
Fundsare advised by an affiliate
of SunTrust Banks, Inc.
Distributor:
SEI Investments Distribution Co.
This information must be preceded or accompanied
by a current prospectus for each Fund described.
