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Previous: CCB FUNDS, NSAR-A, 1999-01-28 |
Next: STI CLASSIC FUNDS, N-30D, 1999-01-28 |
<PAGE>
Semi-Annual
- --------------------------------------------------------------------------------
Financial Report
- --------------------------------------------------------------------------------
STI Classic Funds
- --------------------------------------------------------------------------------
A Family of Mutual Funds
- --------------------------------------------------------------------------------
November 30, 1998
STI Classic Funds
<PAGE>
Investment Advisors
STI Capital Management, N.A.
Trusco Capital Management, Inc.
SunTrust Bank, Atlanta
STI Classic Funds are not deposits, are not
insured or guaranteed by the FDIC or any other
government agency, and are not endorsed by and
do not constitute obligations of SunTrust
Banks, Inc. or any other of its affiliates.
Investment in the Funds involves risk,
including the possible loss of principal. There
is no guarantee that any STI Classic Fund will
achieve its investment objective. The STI
Classic Funds are advised by affiliates of
SunTrust Banks, Inc.
DISTRIBUTOR
SEI Investments Distribution Co.
This information must be preceded or accompanied by
a current prospectus for each Fund described.
<PAGE>
Dear Valued STI Classic Funds Shareholder:
As of November 30, 1998, your STI Classic Funds' assets totaled $12.2 billion or
4.2% more than the totals reported to you as of May 31, 1998, the Funds' fiscal
year end.
With the U.S. economic expansion now seven years old, investors have been
sensitive to any developments that could derail the expansion. This concern
resulted in a significant stock market correction this past summer due to
serious economic/financial difficulties in Asia and Russia.
However, predictions of a U.S. recession proved to be premature and the U.S.
economy remains relatively strong based on low inflation and declining interest
rates, which have stimulated consumer demand. Further, continued low inflation
has allowed the Federal Reserve the flexibility to lower interest rates when
necessary.
The STI Classic Funds introduced two new funds in the fourth quarter of this
year: the Small Cap Growth Stock Fund, a growth fund and the Tax Sensitive
Growth Stock Fund, a tax efficient fund. With 24 funds now available, the STI
Classic Funds are well positioned, as we approach 1999, with a broad range of
high quality mutual funds that utilize a time tested and disciplined investment
management approach.
Sincerely,
/s/ Anthony R. Gray
----------------------------------
Anthony R. Gray
Chairman, Chief Investment Officer
STI Capital Management, N.A.
/s/ Douglas S. Phillips, CFA
-----------------------------------
Douglas S. Phillips, CFA
President, Chief Investment Officer
Trusco Capital Management, Inc.
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Balanced Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (54.7%)
Basic Materials (1.6%)
Air Products & Chemicals $ 58,900 $ 2,246
Ecolab 6,800 210
Imperial Chemical ADR 7,300 276
Monsanto 18,700 847
Morton International 12,500 368
----------
3,947
----------
Capital Goods (7.2%)
Allied Signal 7,300 321
Allied Waste Industries* 21,600 440
AMP 4,600 203
Autozone* 3,800 114
Eastern Environmental Services 3,000 65
General Electric 60,000 5,430
Honeywell 19,600 1,567
Lockheed Martin 8,600 892
Republic Services, Cl A* 24,100 449
Textron 8,400 653
Thermo Electron* 9,700 164
Tyco International 37,998 2,501
U.S. Filter* 39,425 872
United Technologies 21,500 2,305
Waste Management* 51,140 2,193
----------
18,169
----------
Communication Services (1.5%)
Alltel 1,400 74
Century Telephone Enterprises 16,500 940
Ericsson Telephone ADR 12,500 345
Fox Entertainment Cl A* 14,900 352
GTE 3,500 217
MCI WorldCom* 31,144 1,837
----------
3,765
----------
Consumer Cyclicals (10.6%)
American Greetings, Cl A 21,000 889
Carnival 80,200 2,767
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Cyclicals--continued
Cendant* 59,058 $ 1,122
Consolidated Stores* 14,500 312
Costco* 38,600 2,422
CVS 42,000 2,074
Dayton Hudson 7,300 328
Dollar General 19,100 455
Federated Department Stores* 14,800 617
Gannett 800 52
Hasbro 25,900 908
Lear* 25,200 973
Lowe's Companies 66,700 2,819
Masco 74,400 2,148
Mattel 36,850 1,274
McGraw-Hill 13,200 1,181
New York Times, Cl A 14,900 463
Office Depot* 64,700 2,103
Promus Hotel* 6,600 220
Republic Industries* 6,400 109
Royal Caribbean 3,000 91
Saks* 18,900 520
Service International 20,000 747
SPX 6,200 360
Stanley Works 3,900 119
Starwood Lodging Trust REIT 11,955 363
Tandy 26,900 1,212
----------
26,648
----------
Consumer Staples (8.1%)
American Stores 5,300 178
Avon Products 33,900 1,377
Bestfoods 3,000 174
Campbell Soup 8,800 503
Colgate-Palmolive 12,000 1,027
ConAgra 19,176 603
Flowers Industries 28,000 639
Fort James 21,300 833
Fred Meyer* 8,700 443
2
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Staples--continued
Gillette 9,200 $ 423
Hershey Foods 3,200 215
McDonald's 5,000 350
Newell 10,800 478
PepsiCo 7,600 294
Philip Morris 28,800 1,611
Procter & Gamble 18,600 1,630
Ralston Purina 52,800 1,838
Rite Aid 42,800 1,985
Rubbermaid 12,300 407
Safeway* 14,000 739
Sara Lee 35,700 2,084
Tele-Communications, Cl A* 23,100 976
US Foodservice* 19,680 904
Viacom, Cl B* 7,400 493
William Wrigley Jr 2,600 229
----------
20,433
----------
Energy (2.2%)
British Petroleum ADR 7,307 673
Conoco* 14,700 348
Halliburton 40,900 1,201
Mobil 6,600 569
Texaco 24,000 1,381
Union Pacific Resources Group 23,622 264
Unocal 11,900 403
Weatherford International* 15,345 280
Williams Companies 9,700 279
----------
5,398
----------
Financials (7.9%)
Allstate 2,700 110
American International Group 7,075 665
AmSouth Bancorp 800 34
Associates First Capital 8,100 631
Bank One 35,189 1,806
Bank United, Cl A 6,900 303
BankAmerica 21,832 1,423
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials--continued
BankBoston 7,900 $ 329
Citigroup 149 7
Colonial Bancgroup 13,100 162
Compass Bancshares 6,800 253
Conseco 34,100 1,130
FHLMC 21,000 1,271
First American of Tennessee 3,600 156
First Security 5,000 101
First Union 4,300 261
First Virginia 1,700 76
Fleet Financial Group 1,300 54
FNMA 7,000 509
Household International 29,599 1,158
KeyCorp 15,700 482
Mellon Bank 33,400 2,102
MGIC Investment 13,300 584
North Fork Bancorporation 8,100 171
PNC Bank 30,600 1,578
Regions Financial 4,800 186
SouthTrust 3,000 110
Summit Bancorp 11,100 464
Sunamerica 15,100 1,197
Torchmark 32,700 1,243
Waddell & Reed, Cl A* 8 --
Waddell & Reed, Cl B* 8,008 187
Washington Mutual 12,176 472
Wells Fargo 13,700 493
----------
19,708
----------
Health Care (6.9%)
Abbott Laboratories 42,700 2,050
Allegiance 15,100 609
Alza, Cl A* 3,100 162
American Home Products 11,400 607
Arterial Vascular Engineering 1,200 59
Baxter International 14,700 934
Becton Dickinson 8,100 344
3
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Balanced Fund--continued
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Health Care--continued
Boston Scientific* 11,000 $ 545
Bristol-Myers Squibb 31,800 3,897
Eli Lilly 11,600 1,040
Forest Laboratories* 8,600 401
Healthsouth* 50,328 676
Johnson & Johnson 2,700 219
Merck 16,900 2,617
Pfizer 2,100 234
Safeskin* 5,100 97
Tenet Healthcare* 38,300 1,132
Warner Lambert 23,200 1,752
----------
17,375
----------
Technology (8.1%)
3Com* 7,700 298
Ceridian* 27,300 1,776
Cisco Systems* 36,900 2,781
Compaq Computer 12,500 406
EMC* 17,000 1,233
HBO 10,500 262
Hewlett Packard 7,600 477
IBM 20,500 3,383
Intel 11,800 1,270
Lucent Technologies 7,808 672
Microsoft* 23,800 2,904
Networks Associates* 28,586 1,454
Northern Telecom 9,300 434
Sun Microsystems* 11,800 874
Tellabs* 700 38
Texas Instruments 6,300 481
W.W. Grainger 13,800 583
Xerox 8,900 957
----------
20,283
----------
- ---------------------------------------------------------------------
Shares/Face
Amount(000) Value (000)
- ---------------------------------------------------------------------
Transportation (0.6%)
Burlington Northern Santa Fe 19,100 $ 649
Delta Air Lines 12,800 687
Trans World Air* 5,800 262
----------
1,598
----------
Total Common Stocks
(Cost $109,004) 137,324
----------
Preferred Stocks (0.7%)
Finance (0.2%)
Conseco Financial Trust*
CV to 0.9363 Shares 10,000 414
----------
Technology (0.5%)
Microsoft, CV to 1 Share 12,500 1,217
----------
Total Preferred Stocks
(Cost $998) 1,631
----------
Corporate Obligations (18.0%)
Finance (10.6%)
Bank of Boston
6.625%, 12/01/05 $ 500 521
Bear Stearns
6.250%, 07/15/05 1,000 978
Capital One
6.530%, 11/26/99 1,450 1,461
Conseco
6.400%, 06/15/01 1,350 1,375
6.800%, 06/15/05 1,100 1,056
Countrywide Home Loan,
Ser F, MTN
6.510%, 02/11/05 2,300 2,303
Finova Capital
6.250%, 11/01/02 1,200 1,203
Ford Motor Credit
6.500%, 02/28/02 2,100 2,166
Great Western Financial
8.600%, 02/01/02 800 861
4
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Finance--continued
Homeside Lending, MTN
6.875%, 05/15/00 $ 1,600 $ 1,632
Household Finance
6.500%, 11/15/08 750 773
Liberty Property, MTN
6.600%, 06/05/02 1,100 1,126
Merrill Lynch
6.875%, 11/15/18 850 893
Merrill Lynch, MTN
6.060%, 10/15/01 2,300 2,326
Morgan Stanley, Ser C, MTN,
Callable 3/9/01 @ 100
6.090%, 03/09/01 1,500 1,513
Provident
7.000%, 07/15/18 1,650 1,609
Salomon
7.300%, 05/15/02 1,750 1,824
Salomon Smith Barney
6.250%, 01/15/05 1,750 1,757
Sprint Capital
6.125%, 11/15/08 1,225 1,245
----------
26,622
----------
Industrial (7.4%)
American Home Products
7.900%, 02/15/05 1,850 2,079
Bausch & Lomb
6.750%, 12/15/04 1,000 1,056
Bausch & Lomb,
Callable 08/01/01 @ 100
6.150%, 08/01/11 1,200 1,209
Dillards
6.430%, 08/01/04 2,700 2,788
Ikon Capital, MTN
6.730%, 06/15/01 1,000 1,028
Philip Morris
7.250%, 09/15/01 2,100 2,195
7.500%, 04/01/04 1,000 1,063
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Industrial--continued
Praxair
6.900%, 11/01/06 $ 1,250 $ 1,291
Western Resources
6.250%, 08/15/03 2,000 2,020
Worldcom
6.125%, 08/15/01 3,850 3,908
----------
18,637
----------
Total Corporate Obligations
(Cost $44,512) 45,259
----------
Convertible Bonds (1.1%)
Mascotech, CV to 32.2580 Shares,
4.500%, 12/15/03 1,000 806
Network Associates,
CV to 8.5380 Shares,
Callable 02/13/03 @
49.452 (A) (B)
0.000%, 02/13/18 1,000 480
Office Depot, CV to 21.2340
Shares,
0.000%, 11/01/08 1,000 794
Suiza Cap Trust Pfd,
CV to 0.639 Share
5.500%, 04/01/28 4 153
WMX Technologies,
CV to 26.078 Shares
2.000%, 01/24/05 700 662
----------
Total Convertible Bonds
(Cost $2,897) 2,895
----------
U.S. Agency Mortgage-Backed
Obligations (10.8%)
FHLMC
8.000%, 06/01/02 197 201
7.500%, 09/01/03 594 607
5.125%, 10/15/08 2,500 2,465
FNMA
7.000%, 10/01/03 3,049 3,114
5
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Balanced Fund--concluded
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
U.S. Agency Mortgage-Backed
Obligations--continued
GNMA
8.000%, 12/15/22 $ 11,200 $ 11,662
GNMA TBA
7.000%, 11/19/28 9,000 9,211
----------
Total U.S. Agency Mortgage-
Backed Obligations
(Cost $27,177) 27,260
----------
U.S. Treasury Obligations (6.9%)
U.S. Treasury Bonds
7.500%, 11/15/16 5,050 6,323
8.125%, 08/15/19 7,500 10,092
U.S. Treasury Note
5.625%, 12/31/02 965 998
----------
Total U.S. Treasury Obligations
(Cost $14,884) 17,413
----------
Regulated Investment
Company (0.2%)
Dollar General, STRYPES* 14,100 490
----------
Total Regulated Investment
Company
(Cost $556) 490
----------
Repurchase Agreement (11.3%)
Merrill Lynch
5.40%, dated 11/30/98, matures
12/01/98, repurchase price
$28,296,978 (collateralized by
various FHLMC and FNMA
obligations: total market
value $28,861,791) (H) 28,293 28,293
----------
Total Repurchase Agreement
(Cost $28,293) 28,293
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Total Investments (103.7%)
(Cost $228,321) $ 260,565
----------
Other Assets and Liabilities, Net (-3.7%) (9,421)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 14,630,932 outstanding shares of
beneficial interest 156,262
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
818,691 outstanding shares of
beneficial interest 9,297
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 2,956,184 outstanding shares of
beneficial interest 37,053
Undistributed net investment income 806
Accumulated net realized gain
on investments 15,482
Net unrealized appreciation on investments 32,244
----------
Total Net Assets 100.0% $ 251,144
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 13.65
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 13.71
==========
Maximum Offering Price Per Share --
Investor Shares ($13.71 / 96.25%) $ 14.24
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 13.58
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
6
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Capital Growth Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (89.6%)
Basic Materials (2.6%)
Air Products & Chemicals 774,900 $ 29,543
Ecolab 89,700 2,775
Imperial Chemical ADR 96,400 3,651
Monsanto 245,300 11,115
Morton International 145,700 4,289
----------
51,373
----------
Capital Goods (12.3%)
Allied Signal 95,300 4,193
Allied Waste Industries* 285,000 5,807
AMP 54,600 2,641
Autozone* 47,700 1,437
Eastern Environmental Services* 38,300 833
General Electric 789,700 71,468
Honeywell 257,700 20,600
Lockheed Martin 113,300 11,755
Newell 126,400 5,593
Republic Services, Cl A* 324,600 6,046
Textron 105,300 8,180
Thermo Electron* 96,400 1,627
Tyco International 499,706 32,887
U.S. Filter* 492,625 10,899
U.S. Industries 158,000 2,765
United Technologies 283,400 30,377
Waste Management Inc* 692,445 29,689
----------
246,797
----------
Communication Services (2.8%)
Alltel 28,100 1,489
Century Telephone Enterprises 181,800 10,363
Ericsson Telephone ADR 173,400 4,790
Fox Entertainment Group, Cl A* 196,500 4,642
GTE 47,200 2,926
MCI WorldCom* 529,769 31,256
----------
55,466
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Cyclicals (17.0%)
American Greetings 279,400 $ 11,822
Carnival 1,055,900 36,429
Consolidated Stores* 191,100 4,109
Costco* 508,800 31,927
CVS 575,800 28,430
Dayton Hudson 96,100 4,324
Dollar General 250,700 5,970
Federated Department Stores* 196,200 8,179
Gannett 13,100 846
Hasbro 342,000 11,991
Lear* 338,200 13,063
Lowe's Companies 891,900 37,683
Manpower 175,600 3,907
Masco 1,026,400 29,637
Mattel 490,600 16,956
McGraw-Hill 177,200 15,859
New York Times, Cl A 201,700 6,265
Office Depot* 847,500 27,544
Promus Hotel* 88,600 2,957
Republic Industries* 83,500 1,419
Royal Caribbean Cruises 40,300 1,224
Saks Inc* 227,500 6,256
Service International 265,700 9,931
SPX* 82,900 4,808
Starwood Lodging Trust REIT 155,334 4,718
Tandy 354,500 15,975
----------
342,229
----------
Consumer Staples (13.4%)
American Stores 9,800 329
Avon Products 481,400 19,557
Bestfoods 39,800 2,313
Campbell Soup 103,100 5,890
Cendant* 781,023 14,839
Colgate-Palmolive 127,500 10,917
ConAgra 198,922 6,254
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Capital Growth Fund--continued
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Staples--continued
Flowers Industries 249,600 $ 5,694
Fort James 278,600 10,900
Fred Meyer* 115,200 5,861
Gillette 121,700 5,591
Hershey Foods 41,900 2,818
McDonald's 65,300 4,575
PepsiCo 99,800 3,861
Philip Morris 381,150 21,321
Procter & Gamble 231,000 20,241
Ralston Purina 695,300 24,205
Rite Aid 573,300 26,587
Rubbermaid 148,400 4,906
Safeway* 185,200 9,781
Sara Lee 470,100 27,442
Stanley Works 52,100 1,592
Tele-Communications, Cl A* 303,500 12,823
US Foodservice* 259,150 11,905
Viacom, Cl B* 98,900 6,583
William Wrigley Jr 34,400 3,031
----------
269,816
----------
Energy (3.2%)
British Petroleum ADR 66,528 6,129
Conoco* 194,600 4,610
Halliburton 538,400 15,816
Mobil 84,700 7,300
Texaco 304,800 17,545
Union Pacific Resources Group 312,259 3,493
Unocal 180,600 6,118
Weatherford International* 160,875 2,936
Williams 14,400 415
----------
64,362
----------
Financials (12.7%)
Allstate 35,900 1,463
American International Group 106,062 9,970
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials--continued
AmSouth Bancorp 10,500 $ 444
Associates First Capital 107,100 8,340
Bank One 465,136 23,867
Bank United, Cl A 53,200 2,334
BankAmerica 286,039 18,646
BankBoston 104,400 4,346
Citigroup 22,754 1,142
Colonial Bancgroup 80,900 1,001
Compass Bancshares 59,000 2,280
Conseco 446,800 14,800
FHLMC 289,100 17,491
First American of Tennessee 45,700 1,979
First Security 29,800 600
First Union 56,100 3,408
First Virginia Banks 23,100 1,037
Fleet Financial Group 16,400 683
FNMA 91,900 6,686
Household International 395,522 15,475
KeyCorp 206,200 6,329
Mellon Bank 433,000 27,253
MGIC Investment 177,100 7,781
North Fork Bancorporation 100,100 2,108
PNC Bank 402,500 20,754
Regions Financial 49,100 1,903
SouthTrust 37,900 1,393
Summit Bancorp 122,800 5,135
Sunamerica 199,600 15,818
Torchmark 418,600 15,907
Waddell & Reed Financial, Cl A* 18 --
Waddell & Reed Financial, Cl B* 102,515 2,396
Washington Mutual 160,224 6,209
Wells Fargo 180,200 6,487
----------
255,465
----------
8
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Health Care (11.4%)
Abbott Laboratories 566,400 $ 27,187
Allegiance 199,600 8,046
Alza* 40,700 2,127
American Home Products 114,100 6,076
Arterial Vascular Engineering 14,800 723
Baxter International 186,300 11,842
Becton Dickinson 113,100 4,807
Boston Scientific* 147,200 7,286
Bristol-Myers Squibb 420,100 51,489
Eli Lilly 154,500 13,857
Forest Laboratories* 113,300 5,283
Healthsouth* 624,719 8,395
Johnson & Johnson 29,800 2,421
Merck 223,582 34,627
Pfizer 28,500 3,181
Safeskin* 67,100 1,275
Tenet Healthcare* 506,800 14,982
Warner Lambert 327,900 24,756
----------
228,360
----------
Technology (13.2%)
3Com* 100,600 3,892
Ceridian* 358,500 23,325
Cisco Systems* 500,800 37,748
Compaq Computer 167,100 5,431
EMC* 225,100 16,320
HBO 139,300 3,474
Hewlett Packard 101,700 6,382
IBM 260,900 43,048
Intel 143,500 15,444
Lucent Technologies 100,764 8,672
Microsoft* 315,900 38,540
Networks Associates* 393,453 20,017
Northern Telecom 121,900 5,691
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Technology--continued
Sun Microsystems* 148,700 $ 11,013
Tellabs* 9,500 514
Texas Instruments 73,100 5,583
W.W. Grainger 181,200 7,656
Xerox 118,300 12,717
----------
265,467
----------
Transportation (1.0%)
Burlington Northern Santa Fe 249,700 8,490
Delta Air Lines 169,600 9,105
Trans World Air* 70,900 3,240
----------
20,835
----------
Total Common Stocks
(Cost $1,399,363) 1,800,170
----------
Preferred Stocks (1.2%)
Consumer Staples (0.4%)
Monsanto, CV to 0.8197 Share 50,000 2,262
Suiza Capital Trust II,
CV to 0.6390 Share, Callable
04/02/01 @ 51.719 79,400 3,285
United Rentals Trust I,
CV to 1.1459 Share, Callable
08/02/01 @ 52.275 (B) 87,500 3,500
----------
9,047
----------
Finance (0.1%)
Conseco Financial Trust*
CV to 0.9363 Shares 65,000 2,693
----------
Technology (0.6%)
Microsoft, CV to 1 Share 117,500 11,442
----------
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Capital Growth Fund--concluded
- ---------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- ---------------------------------------------------------------------
Transportation (0.1%)
Trans World Air,
CV to 2.4668 Shares, Callable
03/15/99 @ 50* 58,000 $ 1,356
----------
Total Preferred Stocks
(Cost $22,857) 24,538
----------
Convertible Bonds (1.9%)
Baker Hughes,
CV to 18.5990 Shares, Callable
01/11/99 @ 70.683 (A) (D)
0.000%, 05/05/08 $ 3,000 1,958
Bell Atlantic, CV to 87.2870
Shares,
Callable 09/15/02 @
104.242 (B) 4.250%, 09/15/05 4,000 4,125
Coeur D'alene, CV to 57.306 Shares,
Callable 10/31/00 @ 103.625
7.250%, 10/31/05 3,500 2,131
Healthsouth, CV to 27.3000 Shares,
Callable 04/05/01 @ 101.300
3.250%, 04/01/03 2,500 2,072
Home Depot, CV to 43.4000 Shares,
Callable 10/02/99 @ 100.810
3.250%, 10/01/01 4,500 10,013
Mascotech, CV to 32.2580 Shares,
Callable 01/11/99 @ 102.500
4.500%, 12/15/03 6,500 5,241
Molten Metal Technology,
CV to 25.8065 Shares, Callable
05/01/99 @ 102.750 (B)
5.500%, 05/01/06 10,000 150
Network Associates,
CV to 8.5380 Shares, Callable
02/13/03 @ 49.452 (A) (B)
0.000%, 02/13/18 10,000 4,800
Office Depot,
CV to 21.2340 Shares, Callable
11/01/00 @ 72.844 (A)
0.000%, 11/01/08 4,500 3,572
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Convertible Bonds--continued
WMX Technologies,
CV to 18.9065 Shares,
Callable 03/15/00 @ 84.303
2.000%, 01/24/05 $ 5,800 $ 5,481
----------
Total Convertible Bonds
(Cost $40,374) 39,543
----------
Regulated Investment Companies (0.4%)
CVS, TRACES* 70,000 6,370
Dollar General, STRYPES* 46,100 1,602
----------
Total Regulated Investment
Companies
(Cost $6,732) 7,972
----------
Repurchase Agreements (6.8%)
Greenwich
5.38%, dated 11/30/98, matures
12/01/98, repurchase price
$75,349,711 (collateralized by
FNMA obligations: total market
value $76,847,919) (H) 75,338 75,338
Salomon Brothers
5.38%, dated 11/30/98, matures
12/01/98, repurchase price
$61,165,029 (collateralized
by various FHLMC and FNMA
obligations: total market
value $62,446,631) (H) 61,156 61,156
----------
Total Repurchase Agreements
(Cost $136,494) 136,494
----------
Total Investments (99.9%)
(Cost $1,605,820) 2,008,717
----------
Other Assets and Liabilities,
Net (0.1%) 1,393
----------
10
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 91,302,907 outstanding shares of
beneficial interest $1,088,468
Fund shares of the Investor Class (unlimited
authorization -- no par value) based
on 16,028,983 outstanding shares of
beneficial interest 187,614
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 7,334,987 outstanding shares of
beneficial interest 111,424
Undistributed net investment income 483
Accumulated net realized gain
on investments 219,224
Net unrealized appreciation on investments 402,897
----------
Total Net Assets 100.0% $2,010,110
==========
- ---------------------------------------------------------------------
Value
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $17.56
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $17.51
==========
Maximum Offering Price Per Share --
Investor Shares ($17.51 / 96.25%) $18.19
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $17.24
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
11
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Emerging Markets Equity Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Foreign Common Stocks (80.0%)
Argentina (5.9%)
Capex, Cl A* 33,700 $ 226
Massalin Particulares, Cl B 38,800 227
Metrogas ADR 32,204 280
Quilmes Industrial 22,000 208
Transportadora de Gas del
Sur ADR 33,000 330
YPF ADR, Cl D 12,050 356
----------
1,627
----------
Brazil (7.1%)
Petrobras ADR 13,500 192
Souza Cruz 63,500 413
Tele Norte Leste
Participacoes ADR 8,500 145
Telebras ADR* 5,030 477
Telec De Sao Paulo* 4,434,000 489
Telesp Celular* 1,690,000 63
Unibanco 9,100 190
----------
1,969
----------
Chile (3.5%)
Administradora de Fondos de
Pensiones Provida ADR 29,500 446
Banco De A. Edwards 17,000 206
Quimica Y Minera Chile ADR 8,300 320
----------
972
----------
Colombia (0.5%)
Banco Ganadero ADR 15,600 142
----------
Czech Republic (1.8%)
SPT Telecom* 33,000 486
----------
Ecuador (0.3%)
La Cemento Nacional GDR 800 92
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Greece (7.2%)
Alpha Credit Bank 2,600 $ 247
Hellas Can Packaging 25,500 542
Hellenic Telecom Organization 16,983 424
Hellenic Telecom
Organization ADR* 4,900 59
Pannafon Hellenic Telecom GDR* 10,000 181
Papastratos Cigarettes 35,560 537
----------
1,990
----------
Hong Kong (6.2%)
China Hong Kong Photo 790,000 83
Guangdong Kelon
Electric Holding 188,000 164
IDT International 2,600,000 383
National Mutual Asia 594,000 418
Seoul Horizon Trust* 17,000 78
Techtronic Industries 1,350,000 279
VTech Holdings 72,000 312
----------
1,717
----------
Hungary (2.4%)
Egis* 3,925 90
Matav 60,000 332
Pick Szeged Rt GDR 144A 30,300 247
----------
669
----------
<PAGE>
India (3.8%)
Hindalco GDR 2,700 31
Hindalco Industries GDR* 10,500 123
Mahanagar Telephone
Nigam GDR 43,000 439
Videsh Sanchar Nigam GDR 45,000 460
----------
1,053
----------
12
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Indonesia (2.1%)
Budi Acid Jaya, F* 100,250 $ 24
Citra Marga Nusaphala, F 944,000 35
Indonesian Satellite ADR 10,500 147
Modern Photo Film, F* 356,000 24
PT Dankos Laboratories* 665,000 25
PT Indosat, F 96,000 139
PT Jaya Real Property, F* 754,000 31
PT Timbang Timah 200,000 157
----------
582
----------
Israel (2.0%)
Blue Square Stores* 20,300 240
Israel Chemicals 274,000 232
Nice Systems ADR* 4,000 75
----------
547
----------
Malaysia (1) (0.5%)
Aluminium of Malaysia 154,000 40
Petronas Dagangan 114,000 95
----------
135
----------
Mexico (8.8%)
Cemex, ADR 23,300 137
Grupo Carso 78,000 242
Grupo Continental 167,750 388
Grupo Financiero Banorte, Cl B* 216,935 152
Grupo Industrial Maseca ADR 17,000 228
Grupo Radio Centro ADR 16,000 78
Herdez, Cl B 518,000 127
Nacional de Drogas, Cl L 622,000 355
Panamerican Beverage, Cl A 12,500 288
Sanluis Cpo 97,000 146
Telefonos de Mexico ADR 6,100 284
----------
2,425
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Panama (0.2%)
Banco Latinamericano de
Exportaciones 2,800 $ 50
----------
Peru (1.2%)
CPT Telefoncia del Peru 17,000 252
Telefonica del Peru, Cl B 50,500 77
----------
329
----------
Philippines (3.8%)
Bacnotan Consolidated 155,940 167
Benpres Holdings 144A* 72,440 213
First Philippine Holdings, Cl B 134,250 80
Manila Electric, Cl B 72,000 231
Philippine Long Distance 14,000 367
----------
1,058
----------
Poland (1.1%)
Bank Handlowy 25,000 302
----------
Portugal (7.9%)
Banco Pinto & Sotto Mayor 42,000 766
Cimpor-Cimentos de Portugal 15,720 497
Electricidade de Portugal 12,500 556
Portugal Telecom ADR 8,200 361
----------
2,180
----------
Singapore (1.5%)
Amtek Engineering 246,000 118
Elec & Eltek International 56,400 291
----------
409
----------
South Africa (7.4%)
ABSA Group* 56,235 271
Amalgamated Beverage 13,781 89
Kersaf Investments 73,516 229
Liberty Life Association
of Africa 7,383 126
13
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Emerging Markets Equity Fund--concluded
- ---------------------------------------------------------------------
Shares/Face
Amount(000) Value (000)
- ---------------------------------------------------------------------
South Africa--continued
Rembrandt Group 48,800 $ 318
Richemont 26,500 384
Sanlam 125,000 132
South African Breweries 28,640 485
----------
2,034
----------
South Korea (3.8%)
Dae Duck Electronics 4,800 386
Pohang Iron & Steel 5,000 216
Sk Telecom 968 439
----------
1,041
----------
Thailand (1.0%)
Delta Electronics, F 37,500 194
KR Precision, F* 93,000 84
----------
278
----------
Total Foreign Common Stocks
(Cost $29,287) 22,087
----------
Foreign Preferred Stocks (6.6%)
Brazil (6.6%)
Banco Itau SA 1,070,000 597
Brahma 600,000 324
Cemig 15,603,067 395
Fertilizantes Fosfatados 43,000,000 111
Globex Utilidades 30,800 128
Lojas Renner 5,500,000 87
Petrol Brasileiros 1,300,000 185
----------
Total Foreign Preferred Stocks
(Cost $2,879) 1,827
----------
Time Deposit (11.6%)
Cayman Time Deposit
4.750%, 12/01/98 $ 3,200 3,200
----------
Total Time Deposit
(Cost $3,200) 3,200
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Total Investments (98.2%)
(Cost $35,366) $ 27,114
----------
Other Assets and Liabilities,
Net (1.8%) 502
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 3,772,285 outstanding shares of
beneficial interest 40,000
Undistributed net investment income 586
Accumulated net realized loss
on investments and foreign
currency transactions (4,668)
Net unrealized depreciation on investments (8,252)
Net unrealized depreciation on foreign
currency and translation of other
assets and liabilities in foreign
currency investments (50)
----------
Total Net Assets 100.0% $ 27,616
==========
<PAGE>
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 7.32
==========
(1) As of September 1, 1998, the repatriation of proceeds received from the sale
of these securities has been blocked until at least September 1, 1999. These
securities are considered illiquid and are being fair valued in accordance
with the Fair Value Pricing Procedures adopted by the Board of Directors.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
14
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
International Equity Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Foreign Common Stocks (90.5%)
Australia (2.2%)
Australia & New Zealand
Banking Group 1,221,061 $ 8,061
QBE Insurance 1,168,904 5,036
----------
13,097
----------
Austria (1.1%)
Erste Bank 109,900 6,291
----------
Canada (0.2%)
Power Corporation of Canada 64 1,420
----------
France (11.6%)
Dexia France 82,630 12,392
Elf Aquitaine 25,200 3,141
France Telecom 174,075 12,109
Groupe Danone 29,420 8,586
Lafarge 31,800 2,997
Lagardere SCA 183,200 7,456
Suez Lyonnaise des Eaux 61,830 12,207
Technip 19,500 1,652
Vivendi 36,670 8,291
----------
68,831
----------
Germany (8.8%)
Bayer 74,150 3,043
Buderus 10,500 4,055
DaimlerChrysler 64,200 6,030
Hoechst 166,000 7,125
Mannesmann 41,400 4,479
Preussag 19,690 7,210
RWE 244,500 12,939
Veba 125,400 6,950
----------
51,831
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Greece (1.5%)
Hellenic Telecom Organization 255,602 $ 6,376
Hellenic Telecom
Organization ADR* 211 2,556
----------
8,932
----------
Hong Kong (0.3%)
National Mutual Asia 2,127,500 1,498
----------
Indonesia (0.0%)
Modern Photo Film, F* 1,440,000 97
----------
Ireland (4.0%)
Allied Irish Bank 427,300 6,618
Bank of Ireland 820,418 16,982
----------
23,600
----------
Italy (6.3%)
INA 3,019,000 7,967
San Paolo-IMI 531,700 8,726
Telecom Italia 2,405,180 19,494
Unicredito Italiano 1 --
Unione Immobiliare* 1,550,000 776
----------
36,963
----------
<PAGE>
Japan (12.0%)
Canon 368,000 8,131
Eisai 408,000 6,297
Fuji Photo Film 182,000 6,801
Honda Motor 216,000 7,756
Nippon Telegraph &
Telephone 1,606 12,003
Ricoh 236,000 2,272
Sankyo 252,000 5,732
Takefuji 62,000 4,231
TDK 78,400 6,503
Terumo 491,000 10,909
----------
70,635
----------
15
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
International Equity Fund--concluded
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Netherlands (5.2%)
Ahold 230,500 $ 7,994
ING Groep 180,878 10,360
KPN 291,110 12,562
----------
30,916
----------
New Zealand (2.4%)
Fletcher Challenge Building 3,128,748 3,950
Telecom Corporation of
New Zealand 2,471,000 10,528
----------
14,478
----------
Norway (3.0%)
Christiania Bank 690,000 2,536
Orkla, Cl A 218,200 3,645
Petroleum Geo Services ADR* 169,500 2,384
Sparebanken NOR 477,000 9,210
----------
17,775
----------
Panama (0.5%)
Banco Latinamericano de
Exportaciones 150,400 2,698
----------
Philippines (0.3%)
Benpres Holdings GDR 144A* 590,984 1,740
----------
Portugal (1.9%)
Banco Espirito Santo 144,480 4,480
Electricidade de Portugal 124,500 2,759
Portugal Telecom ADR 87,260 3,845
----------
11,084
----------
Spain (3.4%)
Argentaria 390,000 9,081
Endesa 275,300 7,183
Repsol 72,200 4,094
----------
20,358
----------
Sweden (2.4%)
Castellum 406,600 3,799
Drott, Cl B* 293,400 2,326
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Sweden--continued
Volvo, Cl B 344,800 $ 8,012
----------
14,137
----------
Switzerland (4.5%)
Novartis, Registered 10,660 20,012
Rentenanstalt 10 6,749
----------
26,761
----------
United Kingdom (18.9%)
Allied Zurich* 907,650 12,949
Avis Europe 595,000 2,272
Bass 537,082 7,406
British Aerospace 1,186,000 10,191
Cadbury Schweppes 214,000 3,212
Compass Group 324,000 3,415
Diageo 688,200 7,707
General Electric 1,256,560 10,269
Glaxo Wellcome 137,000 4,345
Ladbroke Group 895,000 3,462
Lloyds TSB Group 137,600 1,923
LucasVarity 1,826,596 6,266
National Westminster Bank 485,763 8,861
Reckitt & Colman 402,430 5,688
Rolls-Royce 733,000 2,962
Smithkline Beecham 678,758 8,329
Storehouse 1,953,695 4,527
Tomkins 1,686,695 7,817
----------
111,601
----------
Total Foreign Common Stocks
(Cost $489,679) 534,743
----------
Foreign Preferred Stocks (1.0%)
Germany (1.0%)
GEA 243 5,798
----------
Total Foreign Preferred Stocks
(Cost $8,052) 5,798
----------
16
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Time Deposit (6.4%)
Cayman Time Deposit
4.750%, 12/01/98 $ 38,000 $ 38,000
----------
Total Time Deposit
(Cost $38,000) 38,000
----------
Total Investments (97.9%)
(Cost $535,731) 578,541
----------
Other Assets and Liabilities, Net (2.1%) 12,452
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 41,500,266 outstanding shares of
beneficial interest 478,614
Fund shares of the Investor Class (unlimited
authorization -- no par value) based
on 1,161,744 outstanding shares of
beneficial interest 14,501
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 1,471,480 outstanding shares of
beneficial interest 19,839
Undistributed net investment income 4,305
Accumulated net realized gain on
investments and foreign
currency transactions 31,039
Net unrealized appreciation on investments 42,810
Net unrealized depreciation on foreign
currency and translation of other
assets and liabilities in foreign
currency investments (115)
----------
Total Net Assets 100.0% $ 590,993
==========
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $13.40
==========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Investor Shares $13.30
==========
Maximum Offering Price Per Share --
Investor Shares ($13.30 / 96.25%) $13.82
==========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Flex Shares (1) $13.04
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
17
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
International Equity Index Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Foreign Common Stocks (97.9%)
Australia (2.5%)
Amcor 13,361 $ 58
Broken Hill Proprietary 20,656 164
Coles Myer 30,235 157
CSR 27,994 67
Lend Lease 5,081 124
Mount Isa Mines Holdings 42,910 21
National Australia Bank 15,986 239
Newscorp 33,881 238
Pacific Dunlop 28,455 51
Rio Tinto 5,542 71
Western Mining 23,702 75
Westpac Banking 36,880 246
----------
1,511
----------
Austria (1.3%)
Bank of Austria 2,658 137
Ea - Generali 343 75
Oest El Wirtsch , Cl A 2,027 316
OMV 1,715 162
Wienerberger Baustoff 401 77
----------
767
----------
Belgium (1.8%)
Bekaert 30 16
Delhaize Freres 1,000 82
Electrabel 660 255
Fortis 752 239
Fortis CVG* 861 5
Groupe Bruxelles Lambert 376 71
Kredietbank 2,900 208
Petrofina 292 119
Solvay, Cl A 912 64
Union Minere 680 31
----------
1,090
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Denmark (1.0%)
Carlsberg, Cl B 1,127 $ 63
D/S 1912, Cl B 25 165
D/S Svendborg, Cl B 3 28
Danisco 1,210 62
Novo Nordisk, Cl B 1,270 145
Tele Danmark, Cl B 1,408 157
----------
620
----------
Finland (0.9%)
Merita 9,400 55
Nokia Oyj, Cl A* 2,000 196
Nokia Oyj, Cl K 1,900 186
Outokumpu Oy Akt, Cl A 3,100 29
UPM - Kymmene 3,500 92
----------
558
----------
<PAGE>
France (10.7%)
Accor 501 110
Air Liquide 1,221 208
Alcatel Alsthom 1,562 207
Axa 3,588 464
Banque National Paris, Cl A 2,161 165
Bouygues 403 75
Cap Gemini Sogeti 549 80
Carrefour 428 303
Cie Bancaire 481 75
Cie de Saint Gobain 1,143 169
Cie Generale des Eaux 2,116 478
Compagnie Financiere de Paribas 1,547 138
Elf Aquitaine 2,220 277
Elf Sanofi 1,241 221
Eridania Beghin - Say 550 102
France Telecom 5,693 395
Groupe Danone 839 245
L'Oreal 771 480
Lafarge 997 94
Legrand 352 95
18
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
France--continued
Louis Vuitton - Moet Hennessy 894 $ 173
Michelin, Cl B 1,692 73
Pernod - Ricard 1,228 80
Peugeot 492 78
Pinault-Printemps-Redoute 1,744 297
Promodes 231 151
Rhone - Poulenc, Cl A 4,070 203
Schneider 1,693 104
Societe Generale 855 135
Suez Lyonnaise des Eaux 1,740 344
Total Compaigne, Cl B 2,361 293
Unibail 400 56
----------
6,368
----------
Germany (13.9%)
Aachener & Munchener Bete 810 128
Allianz 3,380 1,217
BASF AG 9,750 369
Bayer 7,960 327
Bayerische Vereinsbank 5,922 513
Beiersdorf 1,140 75
DaimlerChrysler 7,266 693
Degussa 990 49
Deutsche Bank 7,120 440
Deutsche Telekom 10,150 285
Dresdner Bank Frankfurt 4,600 206
Heidelberger Zement 1,024 75
Hochtief 260 10
Karstadt 25 12
Linde 291 165
Lufthansa 4,430 97
Man Muenchen 81 23
Mannesmann 4,080 441
Metro AG 2,351 147
Muenchener Rueckvers 1,110 511
Preussag 11 4
RWE 5,840 309
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Germany--continued
SAP 900 $ 408
Schering 1,810 224
Siemens 7,290 507
Thyssen 501 90
Veba 5,910 328
Viag 533 328
Volkswagen 4,110 334
----------
8,315
----------
Hong Kong (2.0%)
Cathay Pacific Airways 24,000 23
Cheung Kong Holdings 21,000 151
CLP Holdings 18,500 97
Hang Seng Bank 14,500 128
Hong Kong & China Gas 40,000 53
Hong Kong Telecommunications 81,600 156
Hutchison Whampoa 28,800 206
Johnson Electric Holdings* 4,000 9
New World Development 19,000 46
Shangri-La Asia 30,000 27
Swire Pacific 14,500 66
Sun Hung Kai Properties 28,600 205
----------
1,167
----------
Ireland (0.6%)
Allied Irish Bank 11,800 181
CRH 10,200 154
----------
335
----------
Italy (8.1%)
Assicurazioni Generali 19,000 710
Banca Commerciale Italiana 32,000 219
Banco Ambrosian 18,000 101
Benetton Group 50,000 92
Edison 11,000 111
ENI 76,000 472
Fiat 70,000 216
19
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
International Equity Index Fund--continued
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Italy--continued
Fiat Non-Convertible 32,000 $ 57
INA 64,000 169
Italgas 11,000 54
Mediaset 12,000 85
Mediobanca 9,500 115
Montedison 90,000 108
Olivetti* 40,000 105
Parmalat Finanziaria 25,000 47
Pirelli 45,000 140
RAS 6,635 89
San Paolo-IMI 19,486 320
Sirti 16,000 92
Telecom Italia 60,000 486
Telecom Italia Mobile 107,500 704
Telecom Italia Mobile di Risp 27,500 116
Telecom Italia Rinascente 10,000 62
Unicredito Italiano 23,000 131
Unione Immobiliare* 64,000 32
----------
4,833
----------
Japan (31.6%)
Ajinomoto 15,000 136
Asahi Bank 20,000 76
Asahi Chemical Industries 24,000 100
Asahi Glass 25,000 145
Bank of Tokyo Mitsubishi 58,000 631
Bank of Yokohama 11,000 23
Bridgestone 12,000 281
Canon 15,000 331
Chiba Bank 17,000 64
Chiyoda* 5,000 12
Citizen Watch 11,000 70
Cosmo Oil 24,000 36
Dai Nippon Printing 12,000 174
Daiei 16,000 43
Daiwa Kosho Lease 5,000 19
Daiwa Securities 23,000 82
East Japan Railway 59 343
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Japan--continued
Ebara 11,000 $ 92
Fanuc 3,700 117
Fuji Bank 50,000 198
Fuji Photo Film 5,000 187
Fujitsu 33,000 381
Furukawa Electric 15,000 51
Hankyu 11,000 45
Hitachi 63,000 379
Honda Motor 11,000 395
Industrial Bank of Japan 47,000 254
Ito Ham Foods 8,000 38
Ito Yokado 7,000 428
Itochu 55,000 105
Japan Air Lines* 27,000 68
Japan Energy 37,000 37
Joyo Bank 25,300 93
Jusco 10,000 191
Kansai Electric Power 18,200 365
Kao 11,000 208
Kawasaki Steel 48,000 72
Kinki Nippon Railway 42,000 208
Kirin Brewery 20,000 208
Komatsu 22,000 113
Kubota 33,000 76
Kyocera 4,500 212
Marui 4,000 71
Matsushita Electric 32,000 515
Mitsubishi 28,000 180
Mitsubishi Chemical 50,000 93
Mitsubishi Electric* 60,000 152
Mitsubishi Estate 27,000 258
<PAGE>
Mitsubishi Heavy Industries 49,000 184
Mitsubishi Materials 44,000 79
Mitsubishi Trust & Banking 3,000 22
Mitsui 46,000 263
Mitsui Trust & Banking 37,000 50
Mitsukoshi 17,000 47
20
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Japan--continued
Murata Manufacturing 4,000 $ 157
NEC 26,000 221
New Oji Paper 17,000 76
Nichido Fire & Marine Insurance 15,000 76
Nippon Express 10,000 52
Nippon Oil 34,000 112
Nippon Paper Industries 20,000 86
Nippon Sharyo 5,000 13
Nippon Steel 102,000 186
Nippon Telegraph & Telephone 166 1,241
Nippon Yusen 30,000 91
Nippondenso 11,000 213
Nissan Motor 32,000 99
NKK 41,000 29
Nomura Securities 26,000 253
Obayashi 27,000 122
Odakyu Electric Railway 24,000 78
Olympus Optical 8,000 88
Osaka Gas 41,000 120
Sakura Bank 45,000 115
Sankyo 9,000 205
Sanyo Electric 44,000 124
Sega Enterprises 3,800 92
Sekisui Chemical 9,000 55
Sekisui House 14,000 136
Sharp 14,000 124
Shimizu 29,000 95
Shin - Etsu Chemical 15,000 335
Shizuoka Bank 1,000 11
Skylark 3,000 35
Sony 6,400 468
Sumitomo Bank 28,000 311
Sumitomo Chemical 20,000 69
Sumitomo Metal 76,000 91
Taisei 35,000 67
Takeda Chemical 20,000 674
Tobu Railway 15,000 43
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Japan--continued
Tohoku Electric Power 8,500 $ 138
Tokai Bank 20,000 101
Tokio Marine & Fire Insurance 26,000 294
Tokyo Electric Power 22,900 523
Tokyo Gas 55,000 129
Tokyu 10,000 26
Toppan Printing 15,000 178
Toray 32,000 152
Tostem 5,000 83
Toto 13,700 102
Toyo Seikan Kaisha 3,300 55
Toyoda Automatic Loom 8,000 135
Toyota Motor 47,000 1,191
Yamaichi Securities* 15,000 --
Yamanouchi Pharmaceutical 11,000 322
Yasuda Trust & Banking* 32,000 30
----------
18,823
----------
Malaysia (1) (0.6%)
Rothmans of Pall Mall 13,000 61
Telekom Malaysia 80,000 142
Tenaga Nasional 134,000 161
----------
364
----------
Netherlands (2.5%)
ABN Amro Holding 6,040 124
Akzo Nobel 1,180 48
Buhrmann 768 13
ING Groep 4,204 241
KPN 2,386 103
Philips Electronics 1,536 97
Royal Dutch Petroleum 9,620 461
TNT Post Group 2,086 52
Unilever 2,860 224
Wolters Kluwer 572 109
----------
1,472
----------
21
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
International Equity Index Fund--continued
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
New Zealand (0.4%)
Carter Holt Harvey 67,500 $ 64
Telecom Corporation of
New Zealand 44,000 187
----------
251
----------
Norway (0.9%)
Bergesen, Cl A 4,750 58
Christiania Bank 9,400 35
Den Norske Bank, Cl B 12,200 47
Hafslund Nycomed, Cl B 2,200 9
Kvaerner 1,400 21
Norsk Hydro 6,525 245
Orkla, Cl A 2,700 45
Uni Storebrand* 9,987 74
----------
534
----------
Portugal (0.6%)
Banco Comercial Portugues 3,400 104
Electricidade de Portugal 6,200 137
Portugal Telecom 3,200 139
----------
380
----------
Singapore (0.9%)
Overseas Chinese Bank 27,000 165
Singapore International
Airlines, F 28,000 195
Singapore Telecommunications 105,000 175
----------
535
----------
Spain (4.2%)
Argentaria 5,400 126
Autopistas CESA 3,000 46
Banco Bilbao Vizcaya 24,200 382
Banco Central Hispanoamericano 21,590 248
Banco Santander 10,238 209
Dragados Construccion 900 29
Endesa 10,000 261
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Spain--continued
Fomento de Construcciones
Contratas 900 $ 53
Gas Natural 1,600 135
Iberdola 9,500 157
Mapfre 800 22
Repsol 3,500 198
Sociedad General Aguas
de Barcelona 400 23
Tabacalera, Cl A 1,000 25
Telefonica de Espana 11,100 522
Union Electrica Fenosa 3,000 44
----------
2,480
----------
Sweden (1.6%)
ABB, Cl A 4,200 45
Astra, Cl A 7,566 139
Diligentia 1,350 9
Drott, Cl B* 1,400 11
Electrolux 2,600 40
Ericsson, Cl B 10,100 281
ForeningsSparbaken, Cl A 1,500 42
Granges 550 7
Hennes & Mauritz, Cl B 1,000 74
Skandinaviska Enskilda Banken 4,100 47
Skanska, Cl B 1,400 39
Stora Kopparbergs
Bergslags, Cl A 2,500 31
Svenska Cellulosa, Cl B 2,100 46
Svenska Handelsbanken, Cl A 1,100 44
Swedish Match 4,500 15
Volvo, Cl B 2,450 57
----------
927
----------
Switzerland (1.9%)
Nestle 162 337
Novartis, Registered 124 233
Roche Holdings, Genusschein 15 176
22
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Switzerland--continued
Roche Holdlings, Bearer 5 $ 90
UBS 659 198
Zurich Allied 110 79
----------
1,113
----------
United Kingdom (9.9%)
Abbey National 5,977 121
Allied Zurich* 9,147 131
Barclays Bank 6,503 147
Bass 6,771 93
BG 17,599 121
Blue Circle Industries 12,027 61
Boots 6,677 108
British American Tobacco 9,147 84
British Petroleum 31,137 485
British Telecommunications 26,886 368
BTR 29,891 61
Cable & Wireless 10,137 129
Cadbury Schweppes 8,483 127
Centrica* 16,753 35
Commercial Union 8,318 132
Diageo 23,433 263
General Electric 25,666 210
Glaxo Wellcome 13,761 435
Great Universal Stores 9,649 100
Halifax 5,258 75
Hanson PLC 7,986 59
HSBC Holdings 3,562 96
HSBC Holdings 6,141 156
Imperial Chemical 7,727 71
J Sainsbury 10,645 89
Legal & General Group 8,068 99
Lloyds TSB Group 17,926 249
Marks & Spencer 28,170 191
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
United Kingdom--continued
National Power 7,307 $ 62
Prudential 15,982 233
Rentokil Group 13,216 85
Reuters Group 11,446 111
RMC Group 3,139 41
Royal & Sun Alliance 6,831 57
RTZ 7,151 84
Smithkline Beecham 18,346 225
Tesco 31,775 94
Unilever PLC 24,056 250
Vodafone Group 15,390 227
Zeneca Group 3,580 149
----------
5,914
----------
Total Foreign Common Stocks
(Cost $46,684) 58,357
----------
Foreign Preferred Stocks (0.8%)
Australia (0.1%)
News Corporation 8,200 52
----------
Germany (0.6%)
RWE 1,280 44
SAP 480 250
Volkswagen 1,970 100
----------
394
----------
Italy (0.1%)
Fiat 30,000 51
----------
Total Foreign Preferred Stocks
(Cost $238) 497
----------
Total Investments (98.7%)
(Cost $46,922) 58,854
----------
23
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
International Equity Index Fund--concluded
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net (1.3%) $ 760
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 3,868,060 outstanding shares of
beneficial interest 32,891
Fund shares of the Investor Class (unlimited
authorization -- no par value) based
on 415,576 outstanding shares of
beneficial interest 3,853
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 77,835 outstanding shares of
beneficial interest 851
Undistributed net investment income 421
Accumulated net realized gain on
investments and foreign
currency transactions 9,656
Net unrealized appreciation on
investments 11,932
Net unrealized appreciation on foreign
currency and translation of other
assets and liabilities in foreign
currency investments 10
----------
Total Net Assets 100.0% $ 59,614
==========
- ---------------------------------------------------------------------
Value
- ---------------------------------------------------------------------
Net Asset Value, Offering and
Redemption Price Per Share --
Trust Shares $ 13.69
==========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Investor Shares $ 13.54
==========
Maximum Offering Price Per Share --
Investor Shares ($13.54 / 96.25%) $ 14.07
==========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Flex Shares (2) $ 13.47
==========
(1) As of September 1, 1998, the repatriation of proceeds received from the sale
of these securities has been blocked until at least September 1, 1999. These
securities are considered illiquid and are being fair valued in accordance
with the Fair Value Pricing Procedures adopted by the Board of Directors.
(2) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
24
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Mid-Cap Equity Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (95.3%)
Capital Goods (9.4%)
Allied Waste Industries* 587,200 $ 11,964
Herman Miller 255,300 5,425
U.S. Filter* 447,000 9,890
Watsco 249,600 4,477
----------
31,756
----------
Consumer Cyclicals (23.2%)
BJ's Wholesale Club* 167,400 6,455
Borders Group* 459,300 11,138
Ethan Allen Interiors 151,200 5,972
Family Dollar Stores 494,500 9,921
Harley-Davidson 267,900 11,202
Just for Feet* 353,800 8,005
Men's Wearhouse* 426,450 10,795
Office Depot* 227,000 7,378
Ralph Lauren* 240,600 4,466
Staff Leasing* 337,000 3,033
----------
78,365
----------
Consumer Staples (13.3%)
Avis Rent A Car* 283,000 5,961
Cracker Barrel Old
Country Stores 234,900 5,461
Dial 190,500 5,001
Flowers Industries 161,200 3,677
Interstate Bakeries 318,700 8,366
Norrell 198,300 3,160
Papa John's International* 231,000 9,688
US Foodservice* 83,900 3,854
----------
45,168
----------
Energy (2.3%)
Anadarko Petroleum 92,200 2,599
EEX* 348,700 1,242
National-Oilwell Inc* 231,400 2,285
Newpark Resources* 220,600 1,627
----------
7,753
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials (9.8%)
Colonial Bancgroup 344,700 $ 4,266
Dime Bancorp 197,800 5,254
First Security 254,362 5,119
First Virginia Banks 80,100 3,594
Hibernia, Cl A 324,500 5,476
North Fork Bancorporation 291,800 6,146
Western Bancorp 96,600 3,152
----------
33,007
----------
Health Care (11.9%)
Acuson Corp* 190,900 2,673
Centocor* 123 4,977
Forest Laboratories* 102,700 4,788
Immunex* 63,700 5,868
Jones Pharmaceuticals 35,000 1,260
Mylan Laboratories 200,700 6,661
Quintiles Transnational* 70 3,506
Watson Pharmaceuticals* 197,000 10,613
----------
40,346
----------
Technology (24.1%)
ADC Telecommunications* 281,500 8,410
Fiserv* 202,800 8,961
Flextronics International* 180,100 11,977
Intuit* 102,900 5,955
Networks Associates* 217,860 11,084
Nova* 130,631 4,156
Radiant Systems* 55,700 397
Sawtek* 347,700 7,562
Sanmina* 202,100 10,067
Tech Data* 140,400 5,651
Teradyne* 228,100 7,313
----------
81,533
----------
Transportation (1.3%)
CNF Transportation 123,000 4,390
----------
Total Common Stocks
(Cost $296,147) 322,318
----------
25
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Mid-Cap Equity Fund--concluded
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Repurchase Agreement (5.6%)
Greenwich
5.40%, dated 11/30/98,
matures 12/01/98,
repurchase price $18,860,415
(collateralized by various
FNMA obligations: total
market value $19,238,483) (H) $ 18,858 $ 18,858
----------
Total Repurchase Agreement
(Cost $18,858) 18,858
----------
Total Investments (100.9%)
(Cost $315,005) 341,176
----------
Other Assets and Liabilities, Net (-0.9%) (3,054)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 23,833,818 outstanding shares of
beneficial interest 263,993
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 1,690,790 outstanding
shares of beneficial interest 19,138
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 1,434,760 outstanding shares of
beneficial interest 18,416
Net operating loss (2,451)
Accumulated net realized gain
on investments 12,855
Net unrealized appreciation
on investments 26,171
----------
Total Net Assets 100.0% $ 338,122
==========
- ---------------------------------------------------------------------
Value
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 12.57
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 12.44
==========
Maximum Offering Price Per Share --
Investor Shares ($12.44 / 96.25%) $ 12.92
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 12.17
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
26
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Small Cap Equity Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (94.9%)
Basic Materials (12.3%)
Carpenter Technology 95,300 $ 3,365
Commonwealth Industries 308,600 2,970
General Chemical Group 128,200 2,179
H. B. Fuller 84,200 3,663
Lilly Industries
Incorporated, Cl A 304,400 5,688
Madeco ADR 289,600 3,222
Quimica y Minera Chile ADR 216,800 8,347
Texas Industries 265,700 7,689
Titanium Metals 192,700 1,915
Wausau-Mosinee Paper 231,300 3,903
----------
42,941
----------
Capital Goods (16.4%)
A.M. Castle 179,900 3,463
Ameron 87,900 3,230
Belden 173,800 2,933
Columbus Mckinnon 94,400 1,717
DT Industries 114,800 2,109
Furon 189,800 3,262
Gerber Scientific 175,100 4,432
Hardinge 95,850 1,827
Kaman 239,100 3,885
Kaydon 90,500 3,196
Lindberg 179,400 2,366
LSI Industries 133,300 2,833
Pittway, Cl A 129,300 3,596
Precision Castparts 60,800 2,687
Regal Beloit 320,500 8,012
Smith (A.O.) 156,900 3,903
Valmont Industries 239,900 3,868
----------
57,319
----------
Consumer Cyclicals (21.5%)
American Woodmark 135,800 4,142
Angelica 134,300 2,443
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Cyclicals--continued
Bush Industries 363,700 $ 5,956
Chemed 96,900 3,282
Fours Seasons Hotel* 101,000 2,695
Guilford Mills 292,650 4,225
Harman International 192,300 8,209
Interface 228,500 2,856
Jannock Limited 263,000 2,383
K2 400,200 4,552
Kimball International* 345,200 6,645
Midas 105,200 3,281
Pep Boys 145,600 2,057
Pillowtex 149,200 5,036
Ritchie Brothers Auctioneers* 128,200 3,077
Sotheby's Holdings, Cl A 192,500 5,390
Springs Industries, Cl A 64,800 2,523
Sturm Ruger 177,200 2,248
Toro 158,500 4,200
----------
75,200
----------
Consumer Staples (14.9%)
Banta 118,000 3,142
Bowne & Company 179,600 3,008
Ingles Markets, Cl A 237,000 2,844
Nash Finch 213,900 3,115
Norrell 661,700 10,546
Standard Register 277,500 8,169
Universal Foods 339,300 8,419
Wallace Computer Services 84,600 1,898
WD-40 112,900 3,500
Wolverine World Wide 444,200 6,052
York Group 133,300 1,483
----------
52,176
----------
Energy (1.5%)
Giant Industries 426,800 5,095
----------
27
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Small Cap Equity Fund--concluded
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials (9.5%)
Administradora de Fondos de
Pensiones Provida ADR* 182,000 $ 2,753
Alfa 130,300 2,850
Annuity & Life Re Holdings* 187,300 4,753
ARM Financial Group 193,900 4,169
Banco Latinamericano de
Exportaciones 115,100 2,065
Chicago Title 71,300 3,333
Klamath First Bancorp 118,200 2,105
Scottish Annuity & Life* 167,600 2,116
Seacoast Banking of Florida 59,000 1,652
Stirling Cooke Brown Holdings 84,200 1,495
Student Loan 62,200 2,822
Westerfed Financial 173,600 3,364
----------
33,477
----------
Health Care (6.7%)
Block Drug, Cl A 75,602 2,835
London International
Group ADR 214,300 3,402
Medeva PLC ADR 580,900 4,429
Mentor 396,400 7,333
Mony Group* 32,700 1,012
Vital Signs 268,300 4,561
----------
23,572
----------
Technology (3.4%)
Dallas Semiconductor 121,000 4,568
Innovex 292,800 4,685
Pioneer-Standard Electronics 259,000 2,817
----------
12,070
----------
Transportation (4.7%)
Bandag 33,200 1,174
Knightsbridge Tankers Limited* 166,900 3,547
Pittston Burlington 360,200 3,129
- ---------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- ---------------------------------------------------------------------
Transportation--continued
Sea Containers 243,000 $ 7,898
Western Star Truck Holdings 53,600 764
----------
16,512
----------
Utilities (4.0%)
Northwest Natural Gas 110,550 3,137
Nui 123,100 2,993
TNP Enterprises 95,000 3,610
United Water Resources 202,300 4,198
----------
13,938
----------
Total Common Stocks
(Cost $367,481) 332,300
----------
Preferred Stock (0.6%)
Basic Materials (0.6%)
Coeur D'Alene Mines,
CV to 0.8260 Share,
Callable 03/15/99 @ 21.622 299,800 2,211
----------
Total Preferred Stock
(Cost $4,812) 2,211
----------
Repurchase Agreement (3.9%)
Morgan Stanley
5.40%, dated 11/30/98, matures
12/01/98, repurchase price
$13,640,010 (collateralized by
FHLMC obligation: market
value $13,911,152) (H) $ 13,638 13,638
----------
Total Repurchase Agreement
(Cost $13,638) 13,638
----------
Total Investments (99.4%)
(Cost $385,931) 348,149
----------
Other Assets and Liabilities, Net (0.6%) 2,068
----------
28
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 30,381,352 outstanding shares of
beneficial interest $ 347,697
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 2,758,951 outstanding shares of
beneficial interest 35,609
Undistributed net investment income 876
Accumulated net realized gain on investments 3,817
Net unrealized depreciation on investments (37,782)
----------
Total Net Assets 100.0% $ 350,217
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.58
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.52
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
29
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Small Cap Growth Stock Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (86.4%)
Basic Materials (5.9%)
Alpha Industries* 4,870 $ 107
Applied Signal Technology* 6,105 73
Arterial Vascular* 2,795 137
Astec Industries* 1,460 76
Avant!* 6,150 103
Centex Construction Products 2,585 92
NCI Building Systems* 2,100 51
Pure World Cosmetics* 10,975 101
Stillwater Mining* 2,625 96
----------
836
----------
Capital Goods (12.8%)
AFC Cable Systems* 2,260 67
American Woodmark 3,485 106
Champion Enterprises* 3,985 89
Coflexip-Sponsored* 2,165 79
Ducommun* 1,800 30
Dycom Industry* 2,415 95
Elcor 2,500 77
Gulf Island Fabrication* 3,930 29
JLG Industries 3,510 58
Kellstrom Industries* 4,200 103
LSI Industries 3,075 65
Manitowoc 1,730 69
Myers Industries 3,100 70
National R.V. Holdings* 4,125 109
Navistar International* 3,175 82
Pentair 1,795 68
Reliance Steel & Aluminum 2,090 64
Sps Technologies* 1,410 81
Stanley Furniture* 4,905 83
Superior TeleCom 2,045 89
Transwitch* 2,830 79
Tredegar Industries 2,550 60
USG* 1,780 88
Varlen 3,441 91
----------
1,831
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Communication Services (2.9%)
ECI Telecommunications 3,405 $ 122
Flextronics International* 1,220 81
Gilat Satellite Networks Limited* 1,810 92
Polycom* 6,315 112
----------
407
----------
Consumer Cyclicals (28.9%)
American Eagle Outfitters* 1,950 116
Ann Taylor Stores* 3,340 110
Blyth Industries* 2,785 95
Brinker International* 3,370 86
Buckle* 3,595 92
Cato, Cl A 6,320 86
Chicos* 5,800 127
CHS Electronics* 8,300 123
Consolidated Graphics* 1,805 104
Correctional Services* 7,170 83
Craftmade International 7,535 88
Cutter & Buck* 3,915 113
Cybex Computer Products* 2,305 96
Empi* 4,935 111
First Years 6,860 115
Fossil* 4,855 134
Highwoods Properties 2,405 65
Juno Lighting 3,485 81
K-Swiss, Cl A 4,145 118
La-Z-Boy Chair 2,175 36
Labor Ready* 3,970 87
Liberty Property Trust 2,800 69
MDC Holdings 4,935 91
Media Arts Group* 7,385 108
Mohawk Industries* 3,015 112
Monaco Coach* 3,370 101
Movado Group 3,560 72
Oshkosh B'gosh, Cl A 5,010 120
Pacific Sunwear of California* 4,060 60
Quiksilver* 2,795 68
Rent-Way* 3,050 83
Salton/Maxim Housewares* 4,795 89
30
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Cyclicals--continued
SCP Pool* 5,650 $ 88
Select Appointments
Holdings ADR* 4,490 90
Staffmark* 4,530 105
Standard Pacific 9,145 89
Steven Madden Ltd* 14,785 99
Sykes Enterprises* 4,685 95
Syntel* 3,150 43
Tarrant Apparel Group* 4,005 131
Triumph Group Inc* 2,395 81
Urs* 3,885 79
Wabash National 4,475 84
Westaff* 3,990 26
Winnebago Industries 6,860 82
----------
4,131
----------
Consumer Staples (1.4%)
CKE Restaurants 2,255 55
Fresh Del Monte Produce* 3,700 81
Logan's Roadhouse* 3,155 65
----------
201
----------
Energy (1.4%)
Core Laboratories N.V.* 4,205 80
J. Ray McDermott S.A.* 2,295 56
KTI* 3,250 69
----------
205
----------
Financials (9.8%)
Amerin* 4,277 106
Automobile Protection* 9,400 86
Bank of Commerce/San Diego 6,205 92
BSB Bancorp 3,080 89
City National 2,360 88
Cullen/Frost Bankers 1,635 88
Fidelity National Financial 3,000 98
Financial Security Assurance
Holdings 1,515 83
First American Financial 2,915 89
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials--continued
Fremont General 1,570 $ 79
Landamerica Financial Group 1,515 93
Metris* 1,635 55
NVR* 2,365 93
Ryland Group 3,480 92
Stewart Information Services 1,640 81
Triad Guaranty* 4,135 93
----------
1,405
----------
Health Care (4.8%)
Barr Laboratories* 1,680 71
Medco Research* 2,730 55
Osteotech* 2,965 99
Pediatrix Medical Group* 1,655 89
Physician Reliance Network* 6,950 64
Rehabcare Group* 4,625 83
Resmed* 3,265 111
Visix Space* 1,615 118
----------
690
----------
Technology (14.3%)
Catalytica* 5,395 97
Checkpoint Software* 3,195 104
Ciber* 4,730 107
Complete Business Solutions* 2,525 62
Computer Task Group 3,149 85
Henry (Jack) & Associates 1,754 88
Insight Enterprises* 2,700 114
Keane* 2,595 75
Landmark Systems* 8,000 84
New Dimension Software Ltd* 3,680 122
Pomeroy Computer Resources* 4,560 88
Progress Software* 4,485 114
Project Software & Development* 3,770 114
SPR* 5,670 101
Symix Systems* 4,445 89
T-HQ* 4,480 125
Tekelec* 6,840 106
31
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Small Cap Growth Stock Fund--concluded
- ---------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- ---------------------------------------------------------------------
Technology--continued
Timberline Software 5,693 $ 70
Wiztec Solutions Ltd* 8,635 112
World Access* 3,975 81
Xircom* 3,290 99
----------
2,037
----------
Transportation (3.6%)
Amtran Inc* 3,465 76
Comair 2,785 85
Landstar System* 2,745 113
Midwest Express Holdings* 2,205 61
Skywest 3,840 104
Swift Transportation* 3,115 68
----------
507
----------
Utilities (0.6%)
Southwest Gas 3,620 86
----------
Total Common Stocks
(Cost $10,976) 12,336
----------
Repurchase Agreement (12.5%)
Morgan Stanely
5.40%, dated 11/30/98, matures
12/01/98, repurchase price
$1,785,637 (collateralized by
various FNMA obligations:
total market value $1,834,284) (H) $1,785 1,785
----------
Total Repurchase Agreement
(Cost $1,785) 1,785
----------
Total Investments (98.9%)
(Cost $12,761) 14,121
----------
Other Assets and Liabilities, Net (1.1%) 164
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 1,016,426 outstanding shares of
beneficial interest $ 12,131
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
61,274 outstanding shares of
beneficial interest 762
Undistributed net investment income 1
Accumulated net realized gain
on investments 31
Net unrealized appreciation
on investments 1,360
----------
Total Net Assets 100.0% $ 14,285
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 13.26
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 13.24
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
32
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Sunbelt Equity Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (97.9%)
Capital Goods (11.7%)
American Homestar* 228,868 $ 3,748
Aviall* 122,352 1,484
Blount International 182,723 4,225
Centex 67,601 2,412
Kellstrom Industries* 253,506 6,243
Kuhlman 116,947 3,260
Maverick Tube* 214,288 1,219
Miller Industries* 491,570 2,366
Palm Harbor Homes* 193,245 5,000
Tidewater 127,479 2,940
Tristar Aerospace* 98,529 727
UNIFAB International* 393,078 3,439
Watsco 149,173 2,676
----------
39,739
----------
Communication Services (3.4%)
MCI WorldCom* 76,197 4,496
Superior TeleCom* 64,999 2,827
World Access* 209,269 4,251
----------
11,574
----------
Consumer Cyclicals (16.4%)
AHL Services* 70,928 2,341
Barnett* 218,919 2,736
Carnival 84,502 2,915
Circuit City 84,502 3,058
Family Dollar Stores 173,283 3,476
Hibbet Sporting Goods* 60,935 1,878
Lowe's Companies 127,152 5,372
Modis Professional Services* 380,832 4,546
O'Charleys* 211,712 2,832
Office Depot* 61,652 2,004
Pier 1 Imports 187,560 2,016
Play By Play Toys & Novelties* 91,743 688
Policy Management Systems* 100,960 5,162
Quest Education* 231,919 2,319
Renters Choice* 92,136 2,223
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Cyclicals--continued
Staffmark* 217,485 $ 5,057
Suburban Lodges of America* 68,138 545
Tandy 108,303 4,880
Tractor Supply* 54,765 1,438
----------
55,486
----------
Consumer Staples (7.8%)
Flowers Industries 169,004 3,855
Food Lion, Cl A 695,540 7,129
Outback Steakhouse* 117,264 4,163
Sonic* 401,058 7,871
Tyson Foods 169,487 3,506
----------
26,524
----------
Energy (13.6%)
Anadarko Petroleum 272,679 7,686
BJ Services* 238,308 3,292
Core Laboratories N.V.* 241,472 4,573
Diamond Offshore Drilling 196,172 4,389
Global Industries* 692,313 3,938
J. Ray McDermott S.A.* 103,606 2,538
Nuevo Energy* 172,828 2,560
Oceaneering International* 146,293 1,820
Pride International* 116,502 881
St. Mary Land & Exploration 74,358 1,413
Stone Energy* 265,790 8,007
Transocean Offshore 84,359 2,083
World Fuel Services 233,436 2,845
----------
46,025
----------
Financials (14.2%)
AmSouth Bancorp 86,166 3,641
CCB Financial 94,202 5,110
Crestar Financial 61,622 4,090
Cullen/Frost Bankers 21,011 1,127
Fairfield Communities* 763,672 8,257
Nova* 387,296 12,321
33
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Sunbelt Equity Fund--concluded
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials--continued
Profit Recovery Group
International* 188,989 $ 6,378
Texas Regional Bancshares, Cl A 61,382 1,680
Triad Guaranty* 241,185 5,427
----------
48,031
----------
Health Care (3.3%)
Cryolife* 334,239 3,802
Serologicals* 246,609 7,244
----------
11,046
----------
Technology (21.5%)
Acxiom* 276,529 6,533
Benchmark Electronics* 250,023 6,251
CHS Electronics* 414,866 6,145
Compaq Computer 204,206 6,637
Cybex Computer Products* 134,506 5,582
Datastream Systems* 144,894 1,467
Dell Computer* 42,251 2,569
HBO 324,068 8,081
Nichols Research* 232,020 4,959
SCB Computer Technology* 831,788 6,758
SCI Systems* 101,982 4,959
Sterling Commerce* 146,782 5,321
Sterling Software* 84,986 2,188
Sykes Enterprises* 178,116 3,607
Texas Instruments 25,496 1,947
----------
73,004
----------
Transportation (6.0%)
ASA Holdings 94,790 3,217
Comair 154,064 4,718
Covenant Transportation, Cl A* 206,832 3,594
- ---------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- ---------------------------------------------------------------------
Transportation--continued
Hunt J B Transportation Services 328,402 $ 6,240
USA Truck* 210,914 2,531
----------
20,300
----------
Total Common Stocks
(Cost $296,209) 331,729
----------
Convertible Bond (1.1%)
Pier 1 Imports,
CV to 81.1030 Shares,
Callable 10/01/99 @ 103
5.750%, 10/01/03 $ 2,799 3,901
----------
Total Convertible Bond
(Cost $3,934) 3,901
----------
Repurchase Agreements (2.2%)
Deutsche Bank
5.25%, dated 11/30/98, matures
12/01/987, repurchase price
$4,777,668 (collateralized
by various U.S. Treasury
obligations: total market
value $4,872,883) (H) 4,777 4,777
SBC Warburg
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$2,626,770 (collateralized
by various US Treasury
obligations: total market
value $2,680,125) (H) 2,626 2,626
----------
Total Repurchase Agreements
(Cost $7,403) 7,403
----------
Total Investments (101.2%)
(Cost $307,546) 343,033
----------
34
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net (-1.2%) $ (4,205)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 26,579,660 outstanding shares of
beneficial interest 268,765
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 1,929,086 outstanding
shares of beneficial interest 18,517
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
580,619 outstanding shares of
beneficial interest 7,808
Net operating loss (10,209)
Accumulated net realized gain
on investments 18,460
Net unrealized appreciation
on investments 35,487
----------
Total Net Assets 100.0% $ 338,828
==========
- ---------------------------------------------------------------------
Value
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 11.68
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 11.38
==========
Maximum Offering Price Per Share --
Investor Shares ($11.38 / 96.25%) $ 11.82
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 11.21
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
35
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Value Income Stock Fund
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Common Stocks (92.2%)
Basic Materials (11.9%)
Allegheny Teledyne 1,143,400 $ 23,511
B.F. Goodrich 481,100 18,252
Boise Cascade 748,300 23,712
Consolidated Papers 573,400 14,658
Engelhard 737,300 14,239
Hercules 473,300 15,560
Morton International 630,800 18,569
Reynolds Metals 517,100 28,376
Sonoco Products 751,030 22,484
Union Camp 375,500 24,290
Weyerhaeuser 355,900 17,839
Witco Chemical 277,800 5,296
Worthington Industries 776,800 9,467
----------
236,253
----------
Capital Goods (11.1%)
Cooper Industries 462,700 22,730
Corning 267,600 10,737
Crown Cork & Seal 728,600 24,590
Federal Signal 520,300 12,715
Harris 642,700 24,382
Johnson Controls 422,200 24,435
National Service Industries 575,700 22,236
Pall 855,400 19,888
Tecumseh Products, Cl A 213,000 10,543
Tenneco 686,900 24,471
Thomas & Betts 557,900 24,164
----------
220,891
----------
Communication Services (5.2%)
Alltel 747,500 39,618
Ameritech 339,800 18,392
Frontier 329,400 9,923
GTE 553,900 34,342
----------
102,275
----------
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Consumer Cyclicals (10.0%)
American Greetings, Cl A 516,200 $ 21,842
Genuine Parts 607,600 20,013
H & R Block 827,800 37,199
ITT Industries 212,100 7,636
J.C. Penney 821,400 45,177
Masco 790,000 22,811
Stanley Works 1,045,500 31,953
TRW 198,800 10,946
----------
197,577
----------
Consumer Staples (14.6%)
Bestfoods 358,300 20,826
ConAgra 1,324,000 41,623
Dean Foods 427,800 19,465
Flowers Industries 660,900 15,077
Food Lion, Cl A 894,000 9,164
General Mills 474,600 35,832
Hormel Foods 348,600 10,305
International Flavors &
Fragrances 697,700 29,216
Kimberly Clark 972,100 51,157
McCormick 467,800 15,613
Seagram 671,000 23,024
Wallace Computer Services 824,900 18,509
----------
289,811
----------
Energy (8.7%)
Atlantic Richfield 452,900 30,118
Baker Hughes 878,800 16,093
Conoco 302,600 7,168
Fort James Corp. 633,800 24,797
Kerr-McGee 442,000 17,459
Mobil 198,500 21,840
Murphy Oil 481,400 19,196
Unocal 1,078,600 36,538
----------
173,209
----------
36
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Shares Value (000)
- ---------------------------------------------------------------------
Financials (16.8%)
American Financial Group 411,300 $ 16,169
American General 309,400 21,793
AmSouth Bancorp 256,900 10,854
Bank One 895,700 45,961
BankBoston 514,000 21,395
Cigna 496,600 38,642
Hibernia, Cl A 838,800 14,155
Jefferson-Pilot 200,000 13,650
KeyCorp 721,900 22,153
Paine Webber Group 480,000 19,620
PNC Bank 443,900 22,889
Safeco 682,300 29,296
Summit Bancorp 553,000 23,122
Transamerica 180,600 19,189
Union Planters 330,664 15,748
----------
334,636
----------
Health Care (7.9%)
Abbott Laboratories 428,500 20,568
American Home Products 615,600 32,781
Baxter International 760,000 48,308
C.R. Bard 363,900 16,671
Mallinckrodt 561,900 18,156
Pharmacia Upjohn ADR 404,700 21,070
----------
157,554
----------
Technology (1.0%)
EG&G 693,500 19,375
----------
- ---------------------------------------------------------------------
Share/Face
Amount (000) Value (000)
- ---------------------------------------------------------------------
Utilities (5.0%)
Consolidated Natural Gas 517,900 $ 28,128
GPU 429,900 18,835
Questar 843,700 16,188
Scana 525,000 17,128
Sonat 617,500 18,332
----------
98,611
----------
Total Common Stocks
(Cost $1,734,351) 1,830,192
----------
Repurchase Agreements (6.9%)
Greenwich
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$60,681,878 (collateralized by
various FHLMC and FNMA
obligations: total market
value $61,887,552) (H) $ 60,673 60,673
Salomon Brothers
5.37%, dated 11/30/98, matures
12/01/98, repurchase price
$76,620,518 (collateralized by
various FHLMC and FNMA
obligations: total market
value $79,042,523) (H) 76,609 76,609
----------
Total Repurchase Agreements
(Cost $137,282) 137,282
----------
Total Investments (99.1%)
(Cost $1,871,633) 1,967,474
----------
37
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Value Income Stock Fund--concluded
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net (0.9%) $ 18,963
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 116,095,515 outstanding shares of
beneficial interest 1,260,059
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 14,352,876 outstanding shares
of beneficial interest 162,688
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 12,612,697 outstanding shares of
beneficial interest 168,128
Undistributed net investment income 5,434
Accumulated net realized gain
on investments 294,287
Net unrealized appreciation on investments 95,841
----------
Total Net Assets 100.0% $1,986,437
==========
- ---------------------------------------------------------------------
Value
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 13.90
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 13.87
==========
Maximum Offering Price Per Share --
Investor Shares ($13.87 / 96.25%) $ 14.41
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 13.75
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
38
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Florida Tax-Exempt Bond Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Municipal Bonds (97.3%)
Florida (93.5%)
Brevard County, School Board,
Ser A, COP (AMBAC)
5.400%, 07/01/12 $ 1,500 $ 1,619
Brevard County, State Health
Facilities Authority, Holmes
Medical Center Project, RB,
Callable 10/01/03 @ 102
(MBIA)
5.700%, 10/01/08 3,000 3,283
Brevard County, State Health
Facilities Authority, Wuesthoff
Memorial Hospital Project,
RB (MBIA)
6.250%, 04/01/06 930 1,054
Broward County, School District,
COP, Callable 07/01/07 @ 101
(AMBAC)
5.100%, 07/01/09 1,465 1,559
Citrus County, Pollution Control,
Florida Power, RB Callable
08/01/02 @ 102
6.350%, 02/01/22 335 364
Dade County, Aviation Revenue,
Miami International Airport,
Ser B, RB, AMT, Callable
10/01/07 @ 101.50 (FSA)
5.125%, 10/01/13 2,255 2,322
Dade County, Aviation Revenue,
RB, AMT, Callable
10/01/2002 @ 102 (MBIA)
6.600%, 10/01/22 825 910
Dade County, Aviation Revenue,
Ser A, RB, Callable
10/01/05 @ 102 (AMBAC)
6.000%, 10/01/09 500 560
Dade County, School Board,
Ser B, COP (AMBAC)
5.750%, 08/01/03 750 813
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
Dade County, School District, GO,
Prerefunded 07/01/99 @ 102 (F)
7.375%, 07/01/08 $ 250 $ 261
Dade County, Seaport, RB (MBIA)
6.200%, 10/01/08 750 865
6.500%, 10/01/09 1,000 1,187
6.200%, 10/01/10 1,000 1,165
Dade County, State Educational
Facilities Authority, University
of Miami, RB Callable
04/01/06 @ 102 (MBIA)
5.750%, 04/01/20 2,000 2,154
Dade County, State Educational
Facilities Authority, University
of Miami, Ser A, RB (MBIA)
6.000%, 04/01/08 755 852
Dade County, Water & Sewer
System, RB (FGIC)
6.250%, 10/01/09 750 874
Daytona Beach, Water & Sewer
Revenue, ETM, RB, Callable
11/15/1998 @ 102.25 (F)
6.750%, 11/15/07 1,000 1,120
Deerfield Beach, Water & Sewer
Revenue, RB (FGIC)
6.125%, 10/01/06 250 285
Gainesville, Utility Systems,
Ser A, RB
5.750%, 10/01/04 1,300 1,428
5.750%, 10/01/09 500 565
<PAGE>
Gulf Breeze, Local Government
Lien, Ser B, RB, Mandatory
Tender 12/01/08 (FGIC)
5.650%, 12/01/08 460 503
Gulf Breeze, Local Government
Lien, Ser B, RB, Mandatory
Tender 12/01/09 (FGIC)
5.750%, 12/01/09 410 450
39
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Florida Tax-Exempt Bond Fund--continued
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
Hillsborough County, Capital
Improvement Program, ETM,
RB (FGIC) (F)
5.900%, 08/01/04 $ 300 $ 331
Hillsborough County, School
Board Revenue, COP, Callable
07/01/06 @ 100 (MBIA)
5.875%, 07/01/08 1,000 1,115
Hillsborough County, University
Community Hospital, RB (MBIA)
6.500%, 08/15/19 145 176
Indian Trace Community, Water
Management Split Benefit,
Ser A-1, RB, Callable
05/01/05 @ 102 (MBIA)
5.500%, 05/01/07 455 498
Jacksonville, Excise Tax, Ser B,
RB, AMT, Callable
10/01/03 @ 100 (FGIC)
5.200%, 10/01/04 1,500 1,559
Jacksonville, Excise Taxes RB,
Callable 10/01/99 @ 101 (MBIA)
7.250%, 10/01/02 100 102
Jacksonville, River City Renaissance
Project, RB (FGIC)
6.000%, 10/01/04 2,430 2,698
Jacksonville, State Health Facilities
Authority, Charity Obligation
Group, Ser A, RB , Callable
08/15/07 @ 101 (MBIA)
5.250%, 08/15/15 1,465 1,523
Jacksonville, Water & Sewer
Revenue, RB, Callable
10/01/06 @ 102, Prerefunded
09/30/08 @101 (MBIA) (G)
5.000%, 10/01/20 610 652
Lakeland, Electric & Water
Revenue, RB (FGIC)
6.500%, 10/01/05 2,590 2,965
6.000%, 10/01/07 1,000 1,142
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
Lee County, Industrial
Developement Authority,
Bonita Springs Utilities Project,
RB, Callable 11/01/06 @ 101
(MBIA)
5.750%, 11/01/10 $ 1,480 $ 1,631
Lee County, Passenger Facility RB,
Callable 10/01/05 @ 101
(AMBAC)
4.600%, 10/01/07 1,760 1,806
Manatee County, Community
Redevelopment Administration,
Center Project, RB, Callable
04/01/00 @ 102 (MBIA)
7.000%, 04/01/08 1,000 1,063
Martin County, State Health
Facilities Authority, Martin
Memorial Medical Center,
Ser B, RB, Callable
11/15/07 @ 102 (MBIA)
5.150%, 11/15/11 1,070 1,130
Miami-Dade County,
School District, GO (FSA)
5.375%, 08/01/12 5,000 5,443
Miami-Dade County, Special
Obligation, RB, Callable
04/01/08 @ 86.60 (MBIA) (A)
0.000%, 10/01/11 1,635 896
North Broward, Hospital District
Revenue, ETM, RB (MBIA) (G)
5.950%, 01/01/01 1,000 1,046
Orange County, Public Facilities
Revenue, Ser A, RB, Callable
10/01/04 @ 102 (AMBAC)
5.650%, 10/01/07 200 220
Orange County, State Health
Facilities Authority, Orlando
Regional Healthcare, RB (MBIA)
6.250%, 10/01/13 1,000 1,172
40
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
Orange County, State Housing
Finance Authority, Single Family
Mortgage, Ser B, RB, Callable
9/01/07 @ 102
5.800%, 09/01/17 $ 705 $ 736
Orlando, Aviation Authority,
Airport Facilities, RB, AMT
(FGIC)
5.250%, 10/01/13 1,725 1,824
Orlando, Aviation Authority,
Airport Facilities, Ser A, RB,
AMT, Callable 10/01/03 @ 102
(AMBAC)
5.400%, 10/01/06 1,340 1,433
Orlando, Community Water &
Electric Revenue, Ser D, RB
6.750%, 10/01/17 5,385 6,587
Osceola County, COP (MBAC)
6.250%, 06/01/01 1,760 1,870
6.250%, 06/01/04 2,105 2,350
6.250%, 06/01/05 2,240 2,530
Palm Beach County, Apartment
System, RB, Callable
10/01/01 @ 102 (MBIA)
7.625%, 10/01/04 1,410 1,582
Palm Beach County, Solid Waste
Authority, ETM, Ser A, RB
(AMBAC) (F)
6.000%, 10/01/09 300 346
Palm Beach County, Solid Waste
Authority, Ser A, RB (AMBAC)
6.000%, 10/01/09 2,225 2,552
Pensacola, Airport Revenue,
Ser A, RB, AMT, Callable
10/01/08 @ 102 (MBIA)*
6.250%, 10/01/09 880 1,014
Pinellas County, Morton Plant
Health Systems Project, RB,
Callable 11/15/03 @ 102 (MBIA)
5.500%, 11/15/08 1,500 1,608
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
Pinellas County, State Housing
Finance Authority, Single Family
Mortgage, Ser C, RB,
Callable 03/01/07 @ 102
5.050%, 09/01/07 $ 215 $ 223
5.100%, 09/01/08 230 239
Plant City, Utility System Revenue,
RB (MBIA)
6.000%, 10/01/15 400 460
Polk County, Utility System
Revenue, ETM, RB (FGIC) (G)
6.000%, 10/01/08 2,250 2,520
Reedy Creek, GO, Callable
06/01/08 @ 100 (MBIA)
5.250%, 06/01/13 1,000 1,051
Reedy Creek, Utility Revenue,
Ser 1991-1, RB, Prerefunded
10/01/01 @ 101 (MBIA) (F)
6.250%, 10/01/11 405 437
South Broward, Hospital District,
RB, Callable 05/01/03 @ 102
(AMBAC)
7.500%, 05/01/08 1,920 2,224
St. Lucie County, School District,
GO, Callable 07/01/02 @ 102
(AMBAC)
6.000%, 07/01/04 500 544
State, Board of Education,
Capital Outlay, GO
6.100%, 06/01/00 125 127
State, Board of Education,
Capital Outlay, Ser A, GO,
Callable 01/01/08 @ 101
5.250%, 01/01/12 2,495 2,643
State, Board of Education,
Capital Outlay, Ser A, GO,
Callable 06/01/00 @ 102
7.250%, 06/01/23 355 379
41
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Florida Tax-Exempt Bond Fund--concluded
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
State, Board of Education,
Capital Outlay, Ser B, GO
4.500%, 06/01/01 $ 2,800 $ 2,861
State, Board of Education,
Capital Outlay, Ser B, GO (F)
6.000%, 06/01/02 1,000 1,067
State, Board of Education,
Capital Outlay, Ser B, GO,
Callable 06/01/02 @ 101
5.900%, 06/01/12 450 486
6.000%, 06/01/15 170 184
State, Board of Education,
Capital Outlay, Ser C, GO,
Callable 06/01/03 @ 101
5.700%, 06/01/11 2,305 2,484
State, Board of Education, Ser B,
GO, Callable 06/01/01 @ 101
6.000%, 06/01/22 500 542
State, Board of Education, Ser C,
ETM, GO (F)
7.100%, 06/01/07 190 195
State, Finance Department,
Department of Natural Resources,
Preservation 2000, Ser A, RB,
Prerefunded 07/01/01 @ 102
(AMBAC) (F)
6.750%, 07/01/06 80 88
State, Finance Department,
Environmental Protection,
Preservation 2000, Ser A,
RB (FSA)
5.500%, 07/01/08 1,000 1,101
State, Finance Department,
Environmental Protection,
Preservation 2000, Ser B, RB,
Callable 07/01/08 @ 101 (FSA)
5.250%, 07/01/12 3,000 3,175
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Florida--continued
State, Keys, Aqueduct Authority
Revenue, RB, Prerefunded
09/01/01 @ 101 (AMBAC)
6.750%, 09/01/21 $ 170 $ 186
State, Municipal Power Agency,
Saint Lucie Project, ETM, RB (F)
5.000%, 10/01/17 500 508
Sunrise, Utility System, RB,
Callable 10/01/18 @ 100 (AMBAC)
5.200%, 10/01/22 2,000 2,081
5.000%, 10/01/28 1,500 1,519
Sunrise, Utility System,
Ser A, RB (AMBAC) (A)
0.000%, 10/01/09 1,000 625
Tallahassee, Utility System,
Ser B, RB, Prerefunded
10/01/99 @ 102 (F)
6.900%, 10/01/14 240 252
Tampa, Health System,
Catholic Health, Ser A-1, RB,
Callable 11/15/08 @ 102 (MBIA)
5.250%, 11/15/11 2,300 2,449
Tampa, Health System,
Catholic Health, Ser A-2, RB,
Callable 11/15/08 @ 102
(AMBAC)
5.250%, 11/15/12 2,030 2,146
Tampa, RB, Callable
10/1/01 @ 102 (AMBAC)
7.050%, 10/01/07 1,000 1,105
Tampa, Special Tax Allocation,
Callable 10/01/01 @ 102
(AMBAC)
6.900%, 10/01/09 1,500 1,649
Tampa, Water & Sewer Revenue,
Ser B, RB (AMBAC)
5.000%, 10/01/02 1,435 1,501
----------
112,844
----------
42
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Puerto Rico (3.8%)
Commonwealth, GO (MBIA)
5.650%, 07/01/15 $ 1,000 $ 1,116
Commonwealth, Highway &
Transportation Authority,
Ser Z, RB (MBIA)
6.250%, 07/01/14 2,000 2,364
Electric Power Authority, Ser S, RB
5.500%, 07/01/00 200 206
Public Buildings Authority
Revenue, Guaranteed
Government Facilities,
Ser A, RB (AMBAC)
6.250%, 07/01/14 750 887
----------
4,573
----------
Total Municipal Bonds
(Cost $113,168) 117,417
----------
Cash Equivalent (1.5%)
AIM Management Institutional
Tax-Free Portfolio (C) 1,790 1,790
----------
Total Cash Equivalent
(Cost $1,790) 1,790
----------
Total Investments (98.8%)
(Cost $114,958) 119,207
----------
Other Assets and Liabilities, (Net 1.2%) 1,450
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
9,735,374 outstanding shares of
beneficial interest $ 101,345
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
347,434 outstanding shares of
beneficial interest 3,469
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 984,565 outstanding shares of
beneficial interest 10,360
Undistributed net investment income 6
Accumulated net realized gain
on investments 1,228
Net unrealized appreciation on investments 4,249
----------
Total Net Assets 100.0% $ 120,657
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.90
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.91
==========
Maximum Offering Price Per Share --
Investor Shares ($10.91 / 96.25%) $ 11.34
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.92
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
43
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Georgia Tax-Exempt Bond Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Municipal Bonds (92.6%)
Georgia (92.6%)
Albany-Dougherty County, State
Hospital Authority, Ser B,
Anticipation Certificate,
Prerefunded 09/01/00 @ 102
(AMBAC) (F)
7.500%, 09/01/20 $ 255 $ 277
Alpharetta, GO
5.000%, 05/01/07 1,650 1,756
Athens, Water & Sewer Revenue,
ETM, RB (F)
5.700%, 07/01/00 165 171
Atlanta, Airport Facility,
RB (AMBAC)
6.000%, 01/01/03 1,000 1,080
6.000%, 01/01/04 500 547
6.500%, 01/01/06 1,000 1,146
Augusta, Water & Sewer
Revenue, RB, Prerefunded
05/01/02 @ 102 (F)
6.200%, 05/01/03 130 142
Bibb County, GO
7.000%, 01/01/04 985 1,120
Cartersville, Water & Sewer
Revenue, RB, Callable
07/01/08 @102 (FSA)
5.000%, 07/01/12 1,255 1,302
Clayton County, GO
5.000%, 08/01/02 1,000 1,043
Clayton County, Water & Sewer
Authority, RB (MBIA)
5.000%, 05/01/11 600 631
Clayton County, Water Authority,
RB, Callable 05/01/06 @ 102
(AMBAC)
5.350%, 05/01/09 1,500 1,621
Cobb County & Marietta,
Coliseum & Exhibit Hall
Authority, RB (MBIA)
5.500%, 10/01/12 940 1,034
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
Cobb County & Marietta,
Water Authority, RB
5.000%, 11/01/03 $ 1,255 $ 1,320
5.100%, 11/01/04 1,000 1,062
Cobb County, GO
5.000%, 02/01/03 1,025 1,072
Cobb County, Recreational
Facilities Improvements, GO,
Callable 01/01/07 @ 101
5.125%, 01/01/15 850 876
Columbia County, Courthouse/
Detention Center Projects, GO,
Callable 02/01/08 @ 102
5.000%, 02/01/10 920 960
Columbus, Georgia Water &
Sewer, RB, Callable
11/01/07 @ 102 (FGIC)
5.625%, 05/01/13 1,055 1,152
Dalton, Utilities Revenue
RB (MBIA)
6.000%, 01/01/08 3,000 3,402
Dalton-Whitfield County,
Hospital Authority, RB,
Prerefunded 07/01/00 @ 102 (F)
7.000%, 07/01/03 355 381
DeKalb County, Development
Authority, Emory University
Project, Ser A, RB
5.375%, 11/01/05 1,650 1,789
DeKalb County, Development
Authority, Emory University
Project, Ser A, RB, Callable
11/01/05 @ 101
5.200%, 11/01/08 500 535
DeKalb County, School District,
Ser A, GO
6.250%, 07/01/11 1,500 1,761
Douglas County, School District,
GO (MBIA)
5.650%, 01/01/09 805 874
44
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
Douglasville - Douglas County,
Water & Sewer Authority,
RB (AMBAC)
5.625%, 06/01/15 $ 350 $ 386
East Point, Building Authority, RB,
Callable 02/01/06 @ 102 (AMBAC)
4.800%, 02/01/07 535 560
Fayette County, School District, GO
6.250%, 03/01/07 450 516
Fayette County, Water Authority,
ETM, RB (MBIA) (F)
8.550%, 10/01/01 300 341
Forsyth County Water & Sewer
Authority, RB
5.000%, 04/01/04 1,000 1,053
Forsyth County Water & Sewer
Authority, RB, Callable
04/01/08 @ 101
5.000%, 04/01/09 1,120 1,186
5.000%, 04/01/10 460 485
Forsyth County, School
District, GO
6.400%, 07/01/05 750 851
6.500%, 07/01/06 1,000 1,154
Forsyth County, School District,
GO (MBIA)
5.350%, 07/01/10 780 853
Fulco, Hospital Authority,
Catholic Health East, Ser A, RB,
Anticipation Certificate, Callable
11/15/08 @ 102 (MBIA)
5.250%, 11/15/12 1,000 1,054
Fulton County, Hospital Authority,
Northside Hospital Project,
Ser B, RB, Prerefunded
10/01/02 @ 102 (MBIA) (F)
6.600%, 10/01/11 2,000 2,237
Gwinnett County, Recreation
Authority, RB
5.800%, 02/01/06 785 870
5.875%, 02/01/07 1,390 1,560
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
Gwinnett County, School
District, GO
6.400%, 02/01/06 $ 500 $ 572
Gwinnett County, School District,
Ser B, GO
6.400%, 02/01/07 1,500 1,735
Gwinnett County, Water & Sewer
Authority, RB, Callable
08/01/08 @ 102
5.000%, 08/01/13 800 828
Hall County, School District,
Ser B, GO
6.300%, 12/01/05 675 768
Henry County, GO
6.300%, 08/01/08 300 347
Henry County, Henry Medical
Center Project, Callable
07/01/07 @ 102 (AMBAC)
5.500%, 07/01/08 2,460 2,700
Henry County, School District,
Ser A, GO
6.150%, 08/01/06 150 170
6.450%, 08/01/11 500 591
Henry County, School District,
Ser B, GO (MBIA)
5.500%, 08/01/01 350 367
Henry County, Water & Sewer
Authority, RB (AMBAC)
6.150%, 02/01/20 1,750 2,054
Jackson County, School District,
GO, Callable 07/01/08 @ 101
5.000%, 07/01/10 1,020 1,075
Medical Center Hospital Authority,
Columbus Regional Healthcare
System, Callable
08/01/05 @ 102, RB (MBIA)
6.000%, 08/01/06 1,000 1,122
Meriwether County,
School District, GO (FSA)
7.000%, 02/01/06 740 871
5.500%, 02/01/16 1,000 1,061
45
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Georgia Tax-Exempt Bond Fund--concluded
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
Metro Atlanta, Rapid
Tranit Authority, Ser N, RB
6.000%, 07/01/07 $ 1,000 $ 1,139
Milledgeville, Water & Sewer
Revenue, RB (FSA)
6.000%, 12/01/16 1,000 1,150
6.000%, 12/01/21 1,000 1,160
Paulding County,
School District, Ser A, GO
6.625%, 02/01/07 1,000 1,169
6.625%, 02/01/08 500 593
Private Colleges & Universities
Facilities Authority, Emory
University Project, Ser A, RB
5.500%, 11/01/06 525 576
Private Colleges & Universities
Facilities Authority, Emory
University Project, Ser A, RB,
Callable 11/01/07 @ 100
5.000%, 11/01/10 1,000 1,051
Private Colleges & Universities
Facilities Authority, Emory
University Project, Ser C, RB,
Callable 10/01/02 @ 102
5.900%, 10/01/04 305 332
Private Colleges & Universities
Facilities Authority, Mercer
University Project, RB (MBIA)
6.400%, 11/01/11 500 595
Private Colleges & Universities
Facilities Authority, Spelman
College Project, RB (FGIC)
6.000%, 06/01/09 475 528
Putnam County, School District,
GO, Callable 2/01/08 @ 102
4.500%, 02/01/12 930 940
Richmond County, Water & Sewer
Revenue, Ser A, RB, Callable
10/01/06 @ 102 (FGIC)
5.125%, 10/01/17 1,000 1,020
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
Rockdale County, School
District, RB, Prerefunded
01/01/99 @ 102 (F)
6.400%, 01/01/05 $ 150 $ 153
Savannah, Hospital Authority,
St. Josephs/Candler
Health System, Ser B, RB,
Callable 01/01/09 @ 101
5.250%, 07/01/12 1,040 1,092
Savannah, Water & Sewer
Revenue, ETM, RB (F)
6.450%, 12/01/04 1,000 1,135
Smyrna, Development
Authority, RB
5.600%, 02/01/20 735 803
State GO, Ser C
6.500%, 04/01/08 1,000 1,181
6.250%, 08/01/08 1,360 1,587
State Housing & Financial
Authority, Single Family
Mortgage, Ser B, Sub-ser B-1,
Callable 06/01/05 @ 102, RB
5.550%, 12/01/07 550 586
State Housing & Financial
Authority, Single Family
Mortgage, Ser B, Sub-ser B-1,
Callable 06/01/06 @ 102,
RB (FHA)
5.550%, 12/01/10 325 343
5.600%, 12/01/11 450 475
State Housing & Financial Authority,
Single Family Mortgage, Ser C,
Sub-ser C-1, Callable
12/01/07 @ 101.50, RB
5.550%, 12/01/16 500 525
State Municipal Electric
Authority, ETM, RB, Callable
01/12/98 @ 101 (F)
8.000%, 01/01/15 465 625
46
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
State, Ser C, GO
5.750%, 09/01/08 $ 2,000 $ 2,259
State, Tollway Authority,
Georgia 400 Project, RB
5.000%, 07/01/09 1,280 1,359
Upper Oconee Basin, Water
Authority, RB, Callable
07/01/08 @ 102 (FGIC)
5.000%, 07/01/12 500 518
Vidalia, Water & Sewer
Revenue, ETM, RB (F)
6.000%, 07/01/07 605 687
Walker County, School District, GO
5.000%, 02/01/03 1,000 1,045
Walker, Dade & Catoosa Counties,
Hutchinson Medical, Ser A, RB,
Callable 10/01/07 @ 102 (FSA)
5.500%, 10/01/08 1,370 1,495
----------
80,542
----------
Total Municipal Bonds
(Cost $77,136) 80,542
----------
Cash Equivalents (6.2%)
AIM Management Institutional
Tax-Free Portfolio (C) 1,783 1,783
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio (C) 3,627 3,627
----------
Total Cash Equivalents
(Cost $5,410) 5,410
----------
Total Investments (98.8%)
(Cost $82,546) 85,952
----------
Other Assets and Liabilities, Net (1.2%) 1,004
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
7,235,478 outstanding shares of
beneficial interest $ 71,175
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
329,926 outstanding shares of
beneficial interest 3,202
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
908,236 outstanding shares of
beneficial interest 8,984
Accumulated net realized gain
on investments 189
Net unrealized appreciation on investments 3,406
----------
Total Net Assets 100.0% $ 86,956
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.26
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.28
==========
Maximum Offering Price Per Share --
Investor Shares ($10.28 / 96.25%) $ 10.68
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.26
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
47
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Investment Grade Bond Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
U.S. Treasury Obligations (17.3%)
U.S. Treasury Bonds
7.500%, 11/15/16 $ 46,250 $ 57,912
8.125%, 08/15/19 62,000 83,430
U.S. Treasury Note
5.625%, 12/31/02 6,815 7,047
----------
Total U.S. Treasury Obligations
(Cost $127,000) 148,389
----------
Corporate Obligations (49.2%)
Finance (30.6%)
Bank of Boston
6.625%, 12/01/05 2,500 2,606
Bear Stearns
6.250%, 07/15/05 9,500 9,286
Capital One
6.530%, 11/26/99 14,500 14,609
Conseco
6.800%, 06/15/05 11,450 10,992
6.400%, 06/15/11 11,500 11,716
Countrywide Home Loan, MTN
6.510%, 02/11/05 23,300 23,329
Finova Capital
6.250%, 11/01/02 11,625 11,640
Ford Motor Credit
6.500%, 02/28/02 23,500 24,234
Great Western Financial
8.600%, 02/01/02 9,800 10,547
Homeside Lending, MTN
6.875%, 05/15/00 10,235 10,440
Household Finance
6.500%, 11/15/08 7,000 7,219
Liberty Property, MTN
6.600%, 06/05/02 12,000 12,285
Merrill Lynch
6.875%, 11/15/18 8,500 8,925
Merrill Lynch, MTN
6.060%, 10/15/01 24,200 24,472
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Finance--continued
Morgan Stanley, MTN
6.090%, 03/09/01 $ 12,000 $ 12,105
Provident
7.000%, 07/15/18 16,500 16,087
Salomon
7.300%, 05/15/02 20,000 20,850
Salomon Smith Barney
6.250%, 01/15/05 20,000 20,075
Sprint Capital
6.125%, 11/15/08 11,625 11,814
----------
263,231
----------
Industrial (18.6%)
American Home Products
7.900%, 02/15/05 21,300 23,936
Bausch & Lomb
6.150%, 08/01/01 12,000 12,090
6.750%, 12/15/04 11,800 12,464
Dillards
6.430%, 08/01/04 27,000 27,877
Ikon Capital, MTN
6.730%, 06/15/01 13,000 13,357
Philip Morris
7.250%, 09/15/01 24,500 25,603
7.500%, 04/01/04 14,500 15,406
Praxair
6.900%, 11/01/06 17,725 18,301
Western Resources
6.250%, 08/15/03 11,000 11,110
----------
160,144
----------
Total Corporate Obligations
(Cost $416,082) 423,375
----------
U.S. Government Agency Obligations (31.7%)
FHLMC
8.000%, 06/01/02 2,755 2,818
7.500%, 09/01/03 8,911 9,101
5.125%, 10/15/08 23,250 22,921
48
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
U.S. Government Agency Obligations--continued
FNMA
7.000%, 10/01/03 $ 31,664 $ 32,338
GNMA
8.000%, 12/15/22 107,000 111,414
GNMA TBA
7.000%, 11/19/28 92,000 94,156
----------
Total U.S. Government Agency Obligations
(Cost $271,864) 272,748
----------
Repurchase Agreements (12.0%)
Deutsche Bank
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$81,903,788 (collateralized
by various U.S. Treasury
obligations: total market
value $83,530,365) (H) 81,892 81,892
Greenwich
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$9,230,101 (collateralized
by U.S. Treasury Notes: total
market value $9,418,466) (H) 9,229 9,229
SBC Warburg
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$11,836,750 (collateralized
by various U.S. Treasury
obligations: total market
value $12,073,446) (H) 11,835 11,835
----------
Total Repurchase Agreements
(Cost $102,956) 102,956
----------
Total Investments (110.2%)
(Cost $917,902) 947,468
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net (-10.2%)
Securities Purchased Payable $ (94,214)
Other Assets and Liabilities, Net 6,551
----------
Total Other Assets and Liabilities (87,663)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
73,909,486 outstanding shares of
beneficial interest 765,861
Fund shares of the Investor Class (unlimited
authorization -- no par value) based
on 3,044,362 outstanding shares of
beneficial interest 31,977
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 1,629,615 outstanding shares of
beneficial interest 17,197
Accumulated net realized gain
on investments 15,204
Net unrealized appreciation on investments 29,566
----------
Total Net Assets 100.0% $ 859,805
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.94
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.94
==========
Maximum Offering Price Per Share --
Investor Shares ($10.94 / 96.25%) $ 11.37
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.95
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
49
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Investment Grade Tax-Exempt Bond Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Municipal Bonds (96.1%)
Alabama (1.1%)
State Docks Department,
Docks Facility, RB (MBIA)
5.250%, 10/01/00 $ 1,000 $ 1,031
5.250%, 10/01/01 1,000 1,041
----------
2,072
----------
Arizona (5.4%)
Maricopa County, School District
No. 69, Paradise Valley, GO,
Callable 07/01/08 @ 101 (FSA)
5.250%, 07/01/11 1,000 1,067
Maricopa County, School District
No. 80, Chandler, GO, Partially
Prerefunded 07/01/01 @ 101
(FGIC) (F)
6.400%, 07/01/10 3,050 3,263
Mesa, Industrial Development
Authority, Lutheran Health
System, Ser A-1, GO (MBIA)
4.000%, 01/01/01 2,740 2,759
Phoenix, Ser A, GO
5.400%, 07/01/07 1,000 1,096
State, Transportation Board,
Maricopa County Regional
Area Roads, Ser A, RB (Ambac)
5.200%, 07/01/00 2,000 2,056
----------
10,241
----------
California (4.5%)
Los Angeles, Department of Water
and Power, RB, Callable
10/15/08 @ 101 (MBIA)
5.500%, 10/15/12 5,630 6,168
Orange County, Loma Ridge Data
Center Project, COP, Prefunded
06/01/19 @ 100 (AMBAC) (F)
6.000%, 06/01/21 2,075 2,367
----------
8,535
----------
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Colorado (1.1%)
Larimer County, School District,
GO No. R1 Poudre, Callable
12/15/08 @ 100
5.500%, 12/15/13 $ 2,000 $ 2,132
----------
District of Columbia (1.1%)
District of Columbia, American
College Obstetricians, RB,
Callable 8/15/01 @ 102 (AMBAC)
6.500%, 08/15/18 1,930 2,092
----------
Florida (8.5%)
Miami-Dade County,
School District, GO (FSA)
5.375%, 08/01/12 5,000 5,443
Orange County, State Health
Facilities Authority, Orlando
Regional Healthcare, RB (MBIA)
6.250%, 10/01/13 1,000 1,172
Reedy Creek, GO, Callable
06/01/08 @ 100 (MBIA)
5.250%, 06/01/13 1,405 1,477
State, Board of Education,
Capital Outlay, Ser C, GO,
Callable 06/01/03 @ 101
5.700%, 06/01/11 4,000 4,311
State, Finance Department,
General Services, Environmental
Protection, Preservation 2000,
Ser B, RB Callable
07/01/08 @ 101 (FSA)
5.250%, 07/01/12 3,500 3,704
----------
16,107
----------
Georgia (1.3%)
Macon, Water Authority, RB,
Callable 10/01/08 @ 102
5.250%, 10/01/13 1,000 1,051
50
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Georgia--continued
State, Municipal Electric Authority,
Ser B, RB (FGIC)
6.250%, 01/01/12 $ 1,150 $ 1,331
----------
2,382
----------
Illinois (11.9%)
Chicago, Midway Airport,
Ser C, RB (MBIA)
5.500%, 01/01/13 2,380 2,577
5.500%, 01/01/14 2,520 2,725
State, Financial Authority,
Provena Health, Ser A, RB,
Callable 05/15/08 @ 101 (MBIA)
5.500%, 05/15/11 2,500 2,673
State, Health Facilities Authority,
Hospice Sisters Services, Ser A,
RB, Callable 06/01/08 @ 101
(MBIA)
5.250%, 06/01/11 2,460 2,582
State, Health Facilities Authority,
Trinity Medical Center Project,
RB, Callable 07/01/02 @ 102 (FSA)
7.000%, 07/01/12 5,000 5,591
State, Regional Transportation
Authority, RB (FGIC)
6.000%, 06/01/15 2,000 2,281
State, Regional Transportation
Authority, Ser A, RB, Callable
06/01/02 @ 102 (AMBAC)
6.500%, 06/01/15 3,830 4,207
----------
22,636
----------
Indiana (2.4%)
Indianapolis, Gas Utility, Ser A,
RB, Callable 08/15/08 @ 100
(AMBAC)
5.250%, 08/15/12 3,000 3,132
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Indiana--continued
Purdue University, Student Fee,
Ser P, RB
5.250%, 07/01/14 $ 1,260 $ 1,334
----------
4,466
----------
Louisiana (1.5%)
Jefferson, West Jefferson Medical
Center, Ser A, RB (FSA)
5.000%, 01/01/08 755 789
5.250%, 01/01/09 1,870 1,989
----------
2,778
----------
Maryland (2.2%)
Baltimore, Metropolitan District,
GO, Callable 07/01/02 @ 102
5.900%, 07/01/04 1,000 1,085
Baltimore, Water Project, Ser A, RB,
Callable 07/01/06 @ 101 (FGIC)
5.800%, 07/01/15 2,800 3,050
----------
4,135
----------
Massachusetts (0.7%)
Boston, City Hospital Project, RB,
Prerefunded 08/15/98 @ 100
(FHA) (F)
7.650%, 02/15/10 1,260 1,370
----------
Minnesota (0.6%)
Minneapolis, Special School District
No 001,Ser A,COP, Callable
02/01/06 @ 100 (MBIA)
5.700%, 02/01/09 1,000 1,084
----------
Missouri (1.6%)
St. Louis, Water Utility
Improvements, RB, Callable
07/01/04 @ 102 (FGIC)
5.950%, 07/01/06 1,170 1,298
51
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Investment Grade Tax-Exempt Bond Fund--continued
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Missouri--continued
State, Health & Educational
Facilities Authority, Health Care
Projects, Ser B, ETM, RB, Callable
06/01/00 @ 102 (MBIA) (F)
7.000%, 06/01/05 $ 1,500 $ 1,663
----------
2,961
----------
New Jersey (0.9%)
State, Health Care Facilities
Financing Authority, Cathedral
Health Services,
RB (MBIA) (FHA)
5.500%, 02/01/11 1,605 1,740
----------
New York (11.4%)
New York, Ser F, GO, Callable
08/01/06 @ 101.5
5.900%, 08/01/09 5,150 5,633
New York, Ser H, GO, Callable
08/01/08 @ 101 (FSA)
5.500%, 08/01/13 3,000 3,221
New York, Ser J, GO, Callable
08/01/08 @ 101
5.375%, 08/01/13 3,800 3,966
Oneida-Herkimer, Solid Waste
Management Authority, RB (FSA)
5.500%, 04/01/14 1,285 1,392
State, Dormitory Authority, RB,
Callable 07/01/14 @ 100 (FSA)
5.750%, 07/01/18 1,800 2,018
State, Dormitory Authority,
Ser A, RB (AMBAC)
6.000%, 07/01/10 1,550 1,776
5.750%, 07/01/13 1,000 1,122
State, Dormitory Authority,
Ser A, RB (FGIC-TCRS)
5.750%, 07/01/07 1,000 1,109
- --------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
New York--continued
State, Dormitory Authority,
Ser A, RB (MBIA)
5.750%, 07/01/13 $ 1,300 $ 1,459
----------
21,696
----------
North Carolina (1.4%)
State, Medical Care Community
Hospital, Mercy Hospital
Project, ETM, RB, Callable
08/01/02 @ 102 (F)
6.500%, 08/01/15 1,000 1,106
State, Medical Care Community
Hospital, Rex Hospital
Project, RB
5.100%, 06/01/00 1,500 1,535
----------
2,641
----------
Ohio (0.9%)
Cleveland, City School District,
Ser A, GO, Callable
12/01/02 @ 102 (FGIC)
5.875%, 12/01/11 1,650 1,792
----------
Pennsylvania (8.7%)
Allegheny County, Hospital
Development Authority,
Ohio Valley General, RB, Callable
04/01/03 @ 100 (MBIA)
5.875%, 04/01/11 1,500 1,602
Allegheny County, Pittsburgh
International Airport,
Ser A, RB (MBIA)
5.750%, 01/01/11 2,500 2,789
Berks County, GO, Callable
11/15/02 @ 100 (FGIC)
5.750%, 11/15/12 2,255 2,402
Spring Ford, School District, GO,
Prerefunded 02/01/04 @ 102.5
(AMBAC)
6.500%, 02/01/18 6,260 7,137
52
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Pennsylvania--continued
State, University of Pennsylvania,
Health Services, Ser A, RB,
Callable 07/01/08 @ 100 (MBIA)
5.250%, 01/01/12 $ 2,450 $ 2,570
----------
16,500
----------
South Dakota (3.8%)
State, Health & Educational
Facility Authority, St. Lukes
Midland Regional Medical, RB,
Callable 07/01/01 @ 102 (MBIA)
6.625%, 07/01/11 6,675 7,222
----------
Tennessee (3.4%)
Metropolitan Nashville Airport,
Ser C, RB, Callable
07/01/01 @ 102 (FGIC)
6.600%, 07/01/15 3,900 4,227
Shelby County, GO, Prerefunded
12/01/00 @ 102 (G)
6.250%, 12/01/09 2,000 2,146
----------
6,373
----------
Texas (5.6%)
Amarillo, Health Facilities
Corporation, Baptist Saint
Anthonys Hospital, RB (FSA)
5.500%, 01/01/13 1,000 1,078
Lamar, School District, GO,
Callable 02/15/08 @ 100
5.250%, 02/15/12 2,750 2,876
North Central, Health Facility
Development, Health Resources
System, Ser B, RB, Callable
02/15/08 @ 102 (MBIA)
5.750%, 02/15/13 2,120 2,327
San Antonio, Electric & Gas,
Ser A, RB, Callable
02/01/09 @ 101
5.250%, 02/01/13 2,000 2,098
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Texas--continued
Travis County, GO, Callable
03/01/08 @ 100
5.000%, 03/01/09 $ 2,055 $ 2,162
----------
10,541
----------
Utah (5.5%)
State, Intermountain Power
Agency, Power Supply,
Ser A, RB, Callable
07/01/08 @ 101 (MBIA)
5.250%, 07/01/12 5,000 5,244
State, Intermountain Power
Agency, Power Supply,
Ser E, RB (FSA)
6.250%, 07/01/08 3,000 3,461
6.250%, 07/01/09 1,545 1,786
----------
10,491
----------
Washington (7.3%)
King County, School District
No 415, GO, Callable
12/01/08 @ 100 (FGIC)
5.250%, 12/01/12 2,505 2,632
5.250%, 12/01/13 1,250 1,306
Spokane County, School
District No 356, Ser A, GO,
Callable 06/01/08 @ 100 (FGIC)
5.250%, 12/01/12 1,740 1,829
State, Health Care Facilities,
Swedish Health Systems,
RB, Callable 11/15/08 @ 101
(AMBAC)
5.500%, 11/15/12 2,000 2,150
State, Ser B, GO, Callable
05/01/04 @ 100
5.750%, 05/01/14 5,600 6,017
----------
13,934
----------
53
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Investment Grade Tax-Exempt Bond Fund--concluded
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
West Virginia (1.1%)
West Virginia University,
University Projects,
Ser A, RB (MBIA)
5.500%, 04/01/13 $ 1,000 $ 1,082
5.500%, 04/01/14 1,000 1,080
----------
2,162
----------
Wisconsin (2.2%)
State, Health & Elderly Facility,
Childrens Hospital of
Wisconsin, RB (AMBAC)
5.625%, 02/15/13 2,690 2,925
5.625%, 02/15/14 1,250 1,358
----------
4,283
----------
Total Municipal Bonds
(Cost $178,572) 182,366
----------
Repurchase Agreement (1.7%)
Deutsche Bank
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$3,287,076 (collateralized by
U.S. Treasury Bond: market
value $3,353,008) (H) 3,287 3,287
----------
Total Repurchase Agreement
(Cost $3,287) 3,287
----------
Cash Equivalents (8.0%)
AIM Management Institutional
Tax-Free Portfolio (C) 9,087 9,087
SEI Tax-Exempt Trust Institutional
Tax-Free Portfolio (C) 6,046 6,046
----------
Total Cash Equivalents
(Cost $15,133) 15,133
----------
Total Investments (105.8%)
(Cost $196,992) 200,786
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net (-5.8%)
Securities Purchased Payable $ (13,006)
Other Assets and Liabilities, Net 2,027
----------
Total Other Assets and Liabilities (10,979)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
13,212,590 outstanding shares of
beneficial interest 146,373
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
2,296,760 outstanding shares of
beneficial interest 24,304
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
809,368 outstanding shares of
beneficial interest 9,184
Accumulated net realized gain
on investments 6,152
Net unrealized appreciation on investments 3,794
----------
Total Net Assets 100.0% $ 189,807
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 11.63
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 11.64
==========
Maximum Offering Price Per Share --
Investor Shares ($11.64 / 96.25%) $ 12.09
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 11.63
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
54
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Limited-Term Federal Mortgage Securities Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
U.S. Treasury Obligations (10.1%)
U.S. Treasury Notes
6.375%, 05/15/00 $ 1,000 $ 1,024
6.250%, 10/31/01 5,000 5,214
6.250%, 02/15/03 5,000 5,293
5.750%, 08/15/03 3,000 3,135
----------
Total U.S. Treasury Obligations
(Cost $14,802) 14,666
----------
U.S. Agency Mortgage-Backed Obligations (88.4%)
FHLMC
8.000%, 06/01/02 393 403
7.000%, 10/01/02 2,996 3,025
8.000%, 12/01/02 1,583 1,613
7.000%, 03/01/04 8,747 8,923
6.500%, 06/01/13 10,087 10,236
FHLMC REMIC, Ser 1614-H
6.000%, 06/15/20 4,550 4,575
FHLMC REMIC, Ser 1624-KC
6.000%, 06/15/08 11,084 11,214
FHLMC REMIC, Ser 1666-E
6.000%, 12/15/19 5,000 5,032
FHLMC REMIC, Ser 29-Q
7.500%, 06/25/20 15,000 15,415
FNMA
7.000%, 10/01/03 8,795 8,983
7.000%, 03/01/04 9,639 9,844
8.500%, 04/01/17 702 739
FNMA REMIC, Ser 1993-206G
6.000%, 04/25/19 11,000 10,989
FNMA REMIC, Ser 1993-223PH
6.050%, 10/25/22 5,375 5,394
GNMA
9.000%, 11/15/17 916 984
8.000%, 12/15/22 20,000 20,825
GNMA TBA
7.000%, 11/19/28 10,000 10,234
----------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $127,138) 128,428
----------
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Repurchase Agreement (8.3%)
Morgan Stanley
5.40%, dated 11/30/98, matures
12/01/98, repurchase price
$12,130,419 (collateralized
by FHLMC and FNMA
obligations: total market
value $12,653,317) (H) $ 12,129 $ 12,129
----------
Total Repurchase Agreement
(Cost $12,129) 12,129
----------
Total Investments (106.8%)
(Cost $154,069) 155,223
----------
Other Assets and Liabilities, Net (-6.8%)
Securities Purchased Payable (10,241)
Other Assets and Liabilities, Net 369
----------
Total Other Assets and Liabilities (9,872)
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
13,798,375 outstanding shares of
beneficial interest 138,487
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
229,800 outstanding shares of
beneficial interest 2,306
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 160,747 outstanding shares of
beneficial interest 1,628
Overdistributed net investment income (3)
Accumulated net realized gain
on investments 1,779
Net unrealized appreciation on investments 1,154
----------
Total Net Assets 100.0% $ 145,351
==========
55
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Limited-Term Federal Mortgage Securities Fund--concluded
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.24
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.23
==========
Maximum Offering Price Per Share --
Investor Shares ($10.23 / 97.50%) $ 10.49
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.25
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
56
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Short-Term Bond Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
U.S. Treasury Obligations (33.6%)
U.S. Treasury Notes
5.500%, 02/28/99 $ 4,750 $ 4,761
6.250%, 05/31/99 7,000 7,055
5.875%, 07/31/99 5,000 5,037
5.625%, 10/31/99 3,000 3,025
6.375%, 09/30/01 3,000 3,135
7.500%, 11/15/01 9,000 9,700
7.875%, 11/15/04 5,000 5,799
U.S. Treasury STRIPS
0.000%, 08/15/03 1,250 1,008
0.000%, 11/15/04 8,000 6,042
----------
Total U.S. Treasury Obligations
(Cost $44,805) 45,562
----------
Corporate Obligations (47.6%)
Finance (21.7%)
American Express
8.500%, 08/15/01 770 834
6.750%, 06/23/04 3,000 3,184
American General
5.900%, 01/15/03 2,000 2,017
6.250%, 03/15/03 1,100 1,123
Associates Corp, MTN
7.080%, 04/15/03 1,500 1,594
Associates Corp
6.450%, 10/15/01 1,750 1,796
Bankers Trust New York
6.625%, 07/30/99 2,250 2,258
Beneficial, MTN
6.490%, 09/27/00 1,000 1,015
Chrysler Financial
9.500%, 12/15/99 1,000 1,041
Dean Witter, Discover, MTN
6.000%, 02/08/01 1,000 1,019
First Chicago NBD, MTN
6.500%, 11/01/01 2,250 2,323
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Finance--continued
Ford Motor Credit
6.500%, 02/28/02 $ 725 $ 748
6.000%, 01/14/03 2,000 2,045
GMAC
5.750%, 11/10/03 1,250 1,256
Household Finance
6.250%, 08/15/03 2,000 2,042
International Lease, MTN
5.500%, 09/29/03 2,000 1,977
National City
6.750%, 06/01/29 2,000 2,015
Norwest Financial
7.200%, 04/01/04 1,000 1,083
----------
29,370
----------
Industrial (21.5%)
Clark Equipment
9.750%, 03/01/01 1,750 1,901
Computer Associates
6.375%, 04/15/05 2,300 2,260
Dayton Hudson
6.800%, 10/01/01 2,250 2,323
5.950%, 06/15/10 500 504
General Foods
6.000%, 06/15/01 500 498
IBM, MTN
5.800%, 05/15/01 1,250 1,270
Philip Morris
7.500%, 01/15/02 1,250 1,319
RJR Nabisco
6.800%, 09/01/01 1,500 1,543
Sears Roebuck Acceptance, MTN
6.920%, 06/17/04 2,250 2,416
Tenneco
10.075%, 02/01/01 3,000 3,285
TRW, MTN
9.000%, 02/09/01 1,000 1,078
57
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Short-Term Bond Fund--concluded
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
Industrial--continued
Union Pacific
7.060%, 05/15/03 $ 1,500 $ 1,607
USAA, Cl B, MTN
8.880%, 09/21/99 2,000 2,054
Wal-Mart
5.850%, 06/01/18 3,000 3,030
Walt Disney Euro, MTN
6.250%, 06/21/99 1,500 1,510
Walt Disney, MTN
5.600%, 01/13/00 2,500 2,513
----------
29,111
----------
Utilities (4.5%)
Bellsouth Savings
9.125%, 07/01/03 1,639 1,794
Indiana & Michigan Power, MTN
6.400%, 03/01/00 2,250 2,284
NYNEX Credit, MTN
6.900%, 06/15/99 2,000 2,016
----------
6,094
----------
Total Corporate Obligations
(Cost $63,231) 64,575
----------
U.S. Agency Mortgage-Backed
Obligations (4.2%)
FHLB
5.510%, 02/06/01 2,750 2,785
FHLMC
8.000%, 01/01/00 354 364
5.375%, 04/13/00 1,000 1,010
6.500%, 12/01/00 1,540 1,562
FNMA
8.500%, 11/01/01 20 21
----------
Total U.S. Agency Mortgage-
Backed Obligations
(Cost $5,644) 5,742
----------
- ---------------------------------------------------------------------
Face Amount (000)/
Shares Value (000)
- ---------------------------------------------------------------------
Asset-Backed Securities (13.2%)
Arcadia Auto Receivables Trust,
Ser 1997-B, Cl A3
6.300%, 07/16/01 $ 2,411 $ 2,423
Discover Card Master Trust,
Ser 1997-2, Cl A
6.792%, 04/16/10 3,000 3,005
Metris Master Trust,
Ser 1997-1, Cl A
6.870%, 10/20/05 2,000 2,066
Money Store Home
Equity Trust, Cl B
6.290%, 01/15/06 3,214 3,210
6.415%, 04/15/10 973 972
SLMA, Cl A
5.135%, 04/25/04 670 664
5.050%, 10/25/04 1,469 1,468
4.598%, 04/25/06 4,091 4,035
----------
Total Asset-Backed Securities
(Cost $17,790) 17,843
----------
Cash Equivalent (2.2%)
SEI Daily Income Trust Prime
Obligation Portfolio (C) 2,935 2,935
----------
Total Cash Equivalent
(Cost $2,935) 2,935
----------
Total Investments (100.8%)
(Cost $134,405) 136,657
----------
Other Assets and Liabilities, Net (-0.8%) (1,038)
58
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
12,951,587 outstanding shares of
beneficial interest $ 129,246
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 179,890 outstanding
shares of beneficial interest 1,797
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 189,651 outstanding shares of
beneficial interest 1,905
Accumulated net realized gain
on investments 419
Net unrealized appreciation
on investments 2,252
----------
Total Net Assets 100.0% $ 135,619
==========
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.18
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.20
==========
Maximum Offering Price Per Share --
Investor Shares ($10.20 / 98.00%) $ 10.41
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.20
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
59
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
Short-Term U.S. Treasury Securities Fund
- ---------------------------------------------------------------------
Face Amount (000)/
Shares Value (000)
- ---------------------------------------------------------------------
U.S. Treasury Obligations (95.9%)
U.S. Treasury Notes
6.000%, 08/15/99 $ 2,500 $ 2,522
5.875%, 11/15/99 2,000 2,022
5.625%, 11/30/99 13,500 13,624
5.875%, 02/15/00 2,250 2,282
6.875%, 03/31/00 1,250 1,285
6.125%, 07/31/00 2,250 2,304
5.750%, 10/31/00 2,000 2,042
5.375%, 02/15/01 12,800 13,008
6.250%, 10/31/01 3,000 3,128
7.500%, 11/15/01 7,500 8,084
----------
Total U.S. Treasury Obligations
(Cost $49,699) 50,301
----------
Cash Equivalent (1.1%)
SEI Daily Income Trust
Treasury II Portfolio (C) 567 567
----------
Total Cash Equivalent
(Cost $567) 567
----------
Total Investments (97.0%)
(Cost $50,266) 50,868
----------
Other Assets and Liabilities, Net (3.0%) 1,570
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based on
4,681,290 outstanding shares of
beneficial interest $ 46,713
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
300,666 outstanding shares of
beneficial interest 3,064
Fund shares of the Flex Class (unlimited
authorization -- no par value) based on
228,085 outstanding shares of
beneficial interest 2,282
Accumulated net realized loss
on investments (223)
Net unrealized appreciation on investments 602
----------
Total Net Assets 100.0% $ 52,438
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.07
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.07
==========
Maximum Offering Price Per Share --
Investor Shares ($10.07 / 99.00%) $ 10.17
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.04
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
60
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
U.S. Government Securities Fund
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
U.S. Treasury Obligations (25.7%)
U.S. Treasury Bonds
7.750%, 11/30/99 $ 200 $ 206
7.250%, 05/15/16 1,000 1,224
6.875%, 08/15/25 1,000 1,221
6.000%, 02/15/26 2,000 2,199
U.S. Treasury Notes
8.500%, 11/15/00 1,000 1,072
8.000%, 05/15/01 200 215
7.500%, 11/15/01 200 216
7.500%, 05/15/02 750 816
7.250%, 05/15/04 500 560
7.875%, 11/15/04 275 319
7.500%, 02/15/05 500 573
6.500%, 10/15/06 2,000 2,215
6.625%, 05/15/07 1,050 1,179
7.625%, 02/15/25 400 530
----------
Total U.S. Treasury Obligations
(Cost $11,477) 12,545
----------
U.S. Agency Mortgage-Backed Obligations (69.7%)
FHLMC
6.000%, 02/01/01 74 75
7.000%, 01/01/09 81 83
7.000%, 04/01/09 149 153
7.000%, 04/01/09 118 121
7.000%, 08/01/10 592 606
7.000%, 05/01/12 843 863
6.500%, 12/01/12 1,493 1,517
FHLMC REMIC, Ser 2039, Cl PC
6.000%, 05/15/09 1,000 1,001
FNMA
6.000%, 11/25/07 815 825
7.500%, 06/01/11 613 631
7.000%, 09/17/11 901 923
7.000%, 05/01/12 811 830
7.000%, 06/01/12 732 749
7.000%, 07/01/12 790 809
- ---------------------------------------------------------------------
Face Amount
(000) Value (000)
- ---------------------------------------------------------------------
FNMA--continued
7.000%, 10/25/16 $ 635 $ 648
6.500%, 07/01/18 1,027 1,040
6.290%, 08/01/18 1,494 1,496
6.500%, 08/01/18 985 992
7.500%, 04/01/27 692 712
6.000%, 03/01/28 1,005 992
6.500%, 03/01/28 843 849
FNMA REMIC, Ser 1990-143, Cl J
8.750%, 12/25/20 86 91
FNMA REMIC, Ser 1993-156, Cl B
6.500%, 04/25/18 100 102
FNMA REMIC, Ser 1996-68, Cl C
6.500%, 08/18/18 1,000 1,006
FNMA REMIC, Ser 1996-9, Cl H
6.500%, 11/25/13 1,337 1,358
FNMA REMIC, Ser 1997-34, Cl VC
7.500%, 05/01/12 1,000 1,031
FNMA REMIC, Ser 1997-6, Cl H
7.000%, 08/18/08 1,058 1,102
FNMA REMIC, Ser G93-40, Cl VC
6.500%, 08/25/10 261 260
GNMA
7.500%, 10/20/09 47 48
8.250%, 01/15/12 66 69
9.000%, 04/15/17 297 316
8.500%, 05/15/17 695 736
10.000%, 06/15/19 2 3
7.500%, 05/15/22 444 459
7.000%, 11/15/22 392 402
8.000%, 02/15/23 23 24
8.500%, 03/15/23 44 47
7.500%, 04/15/23 112 116
7.500%, 09/15/23 738 763
6.500%, 10/15/23 894 904
7.000%, 01/15/24 126 130
7.500%, 04/15/24 674 697
7.000%, 06/15/24 752 770
61
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
U.S. Government Securities Fund--concluded
- --------------------------------------------------------------------------------
Face Amount (000)/
Shares Value (000)
- --------------------------------------------------------------------------------
GNMA--continued
8.000%, 08/15/24 $ 66 $ 69
8.000%, 09/15/24 19 21
8.000%, 10/15/24 20 21
8.000%, 11/15/24 23 24
8.500%, 12/15/24 55 59
8.500%, 02/15/25 16 17
7.000%, 12/15/25 432 443
6.500%, 02/15/28 983 993
6.500%, 05/20/28 1,969 1,989
6.500%, 09/15/28 1,993 2,014
GNMA REMIC, Ser 1995-6A, Cl E
7.500%, 05/20/23 1,000 1,021
GNMA REMIC, Ser 1998-9, Cl D
6.500%, 08/20/24 1,000 999
----------
Total U.S. Agency Mortgage-
Backed Obligations
(Cost $33,383) 34,019
----------
Cash Equivalents (4.6%)
SEI Daily Income Trust
Government II Portfolio (C) 2,228 2,228
SEI Daily Income Trust
Treasury II Portfolio (C) 31 31
----------
Total Cash Equivalents
(Cost $2,259) 2,259
----------
Total Investments (100.0%)
(Cost $47,119) 48,823
----------
Other Assets and Liabilities, Net (-0.0%) (9)
----------
- ---------------------------------------------------------------------
Value (000)
- ---------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 3,872,118 outstanding shares of
beneficial interest $ 39,731
Fund shares of the Investor Class (unlimited
authorization -- no par value) based on
287,783 outstanding shares of
beneficial interest 2,924
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 432,416 outstanding shares of
beneficial interest 4,463
Accumulated net realized loss
on investments (8)
Net unrealized appreciation on investments 1,704
----------
Total Net Assets 100.0% $ 48,814
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.63
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 10.63
==========
Maximum Offering Price Per Share --
Investor Shares ($10.63 / 96.25%) $ 11.04
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares $ 10.63
==========
(1) The Flex Shares have a contingent sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 63.
62
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Key to Abbreviations used in
the Statement of Net Assets
ADR American Depository Receipt
AMBAC Security insured by the American Municipal
Bond Assurance Corporation
AMT Alternative Minimum Tax
Cl Class
COP Certificate of Participation
CV Convertible Security
ETM Escrowed to Maturity
F Foreign Registry Shares
FGIC Security insured by the Financial Guaranty
Insurance Company
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Security insured by Financial Security
Assurance
GDR Global Depository Receipt
GNMA Government National Mortgage Association
GO General Obligation
MBIA Security insured by the Municipal Bond
Insurance Association
MTN Medium Term Note
PFD Preferred Stock
PLC Public Limited Corporation
RB Revenue Bond
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
Ser Series
SLMA Student Loan Marketing Association
STRIPS Separately Traded Registered Interest and
Principal Security
STRYPES Structured Yield Product Exchange Securities
TBA To Be Announced (see Notes to
Financial Statements)
TCRS Transferrable Custodial Receipts
TRACES Trust Automatic Common Exchange Securities
* Non-income producing security
(A) Zero Coupon Bond
(B) Private Placement Security
(C) Variable rate security. The rate reported on the
Statement of Net Assets is the rate in effect on
November 30, 1998.
(D) Put and demand features exist requiring the
issuer to repurchase the instrument prior to
maturity.
(E) Securities are held in connection with a letter
of credit issued by a major bank.
(F) Collateralized by U.S. government Securities
(G) Collateralized by State and Local Government
Securities
(H) Tri-Party Repurchase Agreement
63
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, 1998
<TABLE>
<CAPTION>
Capital
Balanced Growth
Fund Fund
---------- ---------
06/01/98- 06/01/98-
11/30/98 11/30/98
---------- ---------
<S> <C> <C>
Income:
Interest Income ............................................................. $ 2,992 $ 5,244
Dividend Income ............................................................. 751 10,870
Less: Foreign Taxes Withheld ................................................ -- --
------- --------
Total Investment Income ..................................................... 3,743 16,114
------- --------
Expenses:
Investment Advisory Fees .................................................... 1,104 10,871
Less: Investment Advisory Fees Waived ....................................... (107) (888)
Administrator Fees .......................................................... 91 741
Transfer Agent Fees -- Trust Shares ......................................... 7 36
Transfer Agent Fees -- Investor Shares ...................................... 5 11
Transfer Agent Fees -- Flex Shares .......................................... 17 66
Transfer Agent Out of Pocket Fees ........................................... 8 73
Printing Expenses ........................................................... 10 100
Custody Fees ................................................................ 2 19
Professional Fees ........................................................... 4 42
Trustee Fees ................................................................ 2 16
Registration Fees ........................................................... 2 8
Distribution Fees -- Investor Shares ........................................ 13 907
Less: Distribution Fees Waived -- Investor Shares ........................... (4) (145)
Distribution Fees -- Flex Shares ............................................ 169 574
Less: Distribution Fees Waived -- Flex Shares ............................... (6) --
Insurance and Other Fees .................................................... 3 33
Amortization of Deferred Organization Costs ................................. -- --
------- --------
Total Expenses .............................................................. 1,320 12,464
------- --------
Net Investment Income (Loss) ................................................ 2,423 3,650
------- --------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ................................. 4,002 54,281
Net Realized Loss on Foreign Currency Transactions .......................... -- --
Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency ........... -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments ......... 5,744 64,689
------- --------
Total Net Realized and Unrealized Gain (Loss)
on Investments ............................................................ 9,746 118,970
------- --------
Net Increase (Decrease) in Net Assets from Operations ....................... $12,169 $122,620
======= ========
</TABLE>
* Commenced operations
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
Emerging International International
Markets Equity Equity
Equity Fund Fund Index Fund
----------- ------------- -------------
06/01/98- 06/01/98- 06/01/98-
11/30/98 11/30/98 11/30/98
---------- ------------- -------------
<S> <C> <C> <C>
Income:
Interest Income ............................................................. $ 88 $ 1,243 $ 25
Dividend Income ............................................................. 461 5,528 487
Less: Foreign Taxes Withheld ................................................ (38) (309) (7)
------- -------- -------
Total Investment Income ..................................................... 511 6,462 505
------- -------- -------
Expenses:
Investment Advisory Fees .................................................... 185 3,819 272
Less: Investment Advisory Fees Waived ....................................... (9) (129) (40)
Administrator Fees .......................................................... 11 240 24
Transfer Agent Fees -- Trust Shares ......................................... 8 9 7
Transfer Agent Fees -- Investor Shares ...................................... -- 9 7
Transfer Agent Fees -- Flex Shares .......................................... -- 15 7
Transfer Agent Out of Pocket Fees ........................................... 1 20 3
Printing Expenses ........................................................... 3 16 2
Custody Fees ................................................................ 5 510 35
Professional Fees ........................................................... 1 10 2
Trustee Fees ................................................................ -- 3 --
Registration Fees ........................................................... -- 11 --
Distribution Fees -- Investor Shares ........................................ -- 25 11
Less: Distribution Fees Waived -- Investor Shares ........................... -- (2) (1)
Distribution Fees -- Flex Shares ............................................ -- 93 5
Less: Distribution Fees Waived -- Flex Shares ............................... -- -- --
Insurance and Other Fees .................................................... 7 7 7
Amortization of Deferred Organization Costs ................................. 11 1 2
------- -------- -------
Total Expenses .............................................................. 223 4,657 343
------- -------- -------
Net Investment Income (Loss) ................................................ 288 1,805 162
------- -------- -------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ................................. (3,234) (2,403) 7,424
Net Realized Loss on Foreign Currency Transactions .......................... (16) (316) (29)
Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency ........... (50) (28) 15
Net Change in Unrealized Appreciation (Depreciation) on Investments ......... (2,919) (72,911) (6,436)
------- -------- -------
Total Net Realized and Unrealized Gain (Loss)
on Investments ............................................................ (6,219) (75,658) 974
------- -------- -------
Net Increase (Decrease) in Net Assets from Operations ....................... $(5,931) $(73,853) $ 1,136
======= ======== =======
<CAPTION>
Mid-Cap Small Cap Small Cap
Equity Equity Growth
Fund Fund Stock Fund
---------- ---------- ----------
06/01/98- 06/01/98- 10/08/98*-
11/30/98 11/30/98 11/30/98
---------- ---------- ----------
<S> <C> <C> <C>
Income:
Interest Income ............................................................. $ 560 $ 296 $ 10
Dividend Income ............................................................. 674 4,046 4
Less: Foreign Taxes Withheld ................................................ -- -- --
-------- -------- ------
Total Investment Income ..................................................... 1,234 4,342 14
-------- -------- ------
Expenses:
Investment Advisory Fees .................................................... 1,944 2,031 12
Less: Investment Advisory Fees Waived ....................................... (186) (115) (15)
Administrator Fees .......................................................... 133 138 1
Transfer Agent Fees -- Trust Shares ......................................... 9 8 2
Transfer Agent Fees -- Investor Shares ...................................... 3 -- --
Transfer Agent Fees -- Flex Shares .......................................... 17 42 2
Transfer Agent Out of Pocket Fees ........................................... 19 15 11
Printing Expenses ........................................................... 19 6 --
Custody Fees ................................................................ 11 3 --
Professional Fees ........................................................... 11 9 --
Trustee Fees ................................................................ 4 3 --
Registration Fees ........................................................... 4 51 --
Distribution Fees -- Investor Shares ........................................ 47 -- --
Less: Distribution Fees Waived -- Investor Shares ........................... (4) -- --
Distribution Fees -- Flex Shares ............................................ 88 161 --
Less: Distribution Fees Waived -- Flex Shares ............................... (12) (34) --
Insurance and Other Fees .................................................... 9 -- --
Amortization of Deferred Organization Costs ................................. -- 2 --
-------- -------- ------
Total Expenses .............................................................. 2,116 2,320 13
-------- -------- ------
Net Investment Income (Loss) ................................................ (882) 2,022 1
-------- -------- ------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ................................. (18,675) (15,216) 31
Net Realized Loss on Foreign Currency Transactions .......................... -- -- --
Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency ........... -- -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments ......... (13,698) (61,471) 1,360
-------- -------- ------
Total Net Realized and Unrealized Gain (Loss)
on Investments ............................................................ (32,373) (76,687) 1,391
-------- -------- ------
Net Increase (Decrease) in Net Assets from Operations ....................... $(33,255) $(74,665) $1,392
======== ======== ======
<CAPTION>
Sunbelt Value
Equity Income
Fund Stock Fund
--------- ----------
06/01/98- 06/01/98-
11/30/98 11/30/98
--------- ----------
<S> <C> <C>
Income:
Interest Income ............................................................. $ 266 $ 3,298
Dividend Income ............................................................. 918 24,320
Less: Foreign Taxes Withheld ................................................ -- --
--------- ---------
Total Investment Income ..................................................... 1,184 27,618
--------- ---------
Expenses:
Investment Advisory Fees .................................................... 2,220 7,800
Less: Investment Advisory Fees Waived ....................................... (230) --
Administrator Fees .......................................................... 151 764
Transfer Agent Fees -- Trust Shares ......................................... 6 10
Transfer Agent Fees -- Investor Shares ...................................... 1 25
Transfer Agent Fees -- Flex Shares .......................................... 11 89
Transfer Agent Out of Pocket Fees ........................................... 30 93
Printing Expenses ........................................................... 38 126
Custody Fees ................................................................ 8 32
Professional Fees ........................................................... 18 62
Trustee Fees ................................................................ 6 19
Registration Fees ........................................................... -- 23
Distribution Fees -- Investor Shares ........................................ 55 323
Less: Distribution Fees Waived -- Investor Shares ........................... (4) --
Distribution Fees -- Flex Shares ............................................ 37 858
Less: Distribution Fees Waived -- Flex Shares ............................... (9) (4)
Insurance and Other Fees .................................................... 11 38
Amortization of Deferred Organization Costs ................................. -- --
--------- ---------
Total Expenses .............................................................. 2,349 10,258
--------- ---------
Net Investment Income (Loss) ................................................ (1,165) 17,360
--------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ................................. (11,591) 92,567
Net Realized Loss on Foreign Currency Transactions .......................... -- --
Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency ........... -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments ......... (92,389) (103,094)
--------- ---------
Total Net Realized and Unrealized Gain (Loss)
on Investments ............................................................ (103,980) (10,527)
--------- ---------
Net Increase (Decrease) in Net Assets from Operations ....................... $(105,145) $ 6,833
========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
65
<PAGE>
STATEMENT OF OPERATIONS (000) (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, 1998
<TABLE>
<CAPTION>
Florida Georgia
Tax-Exempt Tax-Exempt
Bond Fund Bond Fund
---------- ----------
06/01/98- 06/01/98-
11/30/98 11/30/98
--------- ---------
<S> <C> <C>
Interest Income ...................................................... $2,615 $1,887
------ ------
Expenses:
Investment Advisory Fees .......................................... 368 269
Less: Investment Advisory Fees Waived ............................. (54) (44)
Less: Contribution from Advisor ................................... -- --
Administrator Fees ................................................ 44 32
Transfer Agent Fees -- Trust Shares ............................... 6 8
Transfer Agent Fees -- Investor Shares ............................ 7 6
Transfer Agent Fees -- Flex Shares ................................ 6 6
Transfer Agent Out of Pocket Fees ................................. 4 2
Printing Expenses ................................................. 3 2
Custody Fees ...................................................... 1 1
Professional Fees ................................................. 2 1
Trustee Fees ...................................................... 1 --
Registration Fees ................................................. 1 1
Distribution Fees -- Investor Shares .............................. 3 3
Less: Distribution Fees Waived -- Investor Shares ................. (3) (3)
Distribution Fees -- Flex Shares .................................. 50 44
Less: Distribution Fees Waived -- Flex Shares ..................... (20) (17)
Insurance and Other Fees .......................................... 1 1
Amortization of Deferred Organization Costs ....................... -- --
------ ------
Total Expenses .................................................... 420 312
------ ------
Net Investment Income ................................................ 2,195 1,575
------ ------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ....................... 765 59
Net Change in Unrealized Appreciation
on Investments .................................................. 1,115 1,142
------ ------
Total Net Realized and Unrealized Gain
on Investments .................................................. 1,880 1,201
------ ------
Net Increase in Net Assets from Operations ........................... $4,075 $2,776
====== ======
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
Investment Investment Grade Limited-Term
Grade Bond Tax-Exempt Federal Mortgage
Fund Bond Fund Securities Fund
---------- ---------------- ----------------
06/01/98- 06/01/98- 06/01/98-
11/30/98 11/30/98 11/30/98
---------- ---------------- ----------------
<S> <C> <C> <C>
Interest Income ...................................................... $25,459 $4,245 $4,295
------- ------ ------
Expenses:
Investment Advisory Fees .......................................... 3,138 687 468
Less: Investment Advisory Fees Waived ............................. (365) (101) (73)
Less: Contribution from Advisor ................................... -- -- --
Administrator Fees ................................................ 333 73 56
Transfer Agent Fees -- Trust Shares ............................... 22 7 9
Transfer Agent Fees -- Investor Shares ............................ 11 4 7
Transfer Agent Fees -- Flex Shares ................................ 12 9 5
Transfer Agent Out of Pocket Fees ................................. 41 8 3
Printing Expenses ................................................. 51 16 5
Custody Fees ...................................................... 11 4 2
Professional Fees ................................................. 25 6 3
Trustee Fees ...................................................... 8 3 1
Registration Fees ................................................. 4 1 3
Distribution Fees -- Investor Shares .............................. 72 59 3
Less: Distribution Fees Waived -- Investor Shares ................. (24) (4) (3)
Distribution Fees -- Flex Shares .................................. 77 45 8
Less: Distribution Fees Waived -- Flex Shares ..................... (20) (14) (8)
Insurance and Other Fees .......................................... -- 5 --
Amortization of Deferred Organization Costs ....................... -- -- 1
------- ------ ------
Total Expenses .................................................... 3,396 808 490
------- ------ ------
Net Investment Income ................................................ 22,063 3,437 3,805
------- ------ ------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ....................... 17,097 2,647 1,519
Net Change in Unrealized Appreciation
on Investments .................................................. 5,256 1,096 268
------- ------ ------
Total Net Realized and Unrealized Gain
on Investments .................................................. 22,353 3,743 1,787
------- ------ ------
Net Increase in Net Assets from Operations ........................... $44,416 $7,180 $5,592
======= ====== ======
<CAPTION>
Short-Term
U.S. Treasury U.S.
Short-Term Securities Government
Bond Fund Fund Securities Fund
---------- ----------- ---------------
06/01/98- 06/01/98- 06/01/98-
11/30/98 11/30/98 11/30/98
---------- ----------- ----------------
<S> <C> <C> <C>
Interest Income ...................................................... $3,869 $1,458 $1,440
------ ------ -------
Expenses:
Investment Advisory Fees .......................................... 427 169 167
Less: Investment Advisory Fees Waived ............................. (73) (31) (22)
Less: Contribution from Advisor ................................... -- -- --
Administrator Fees ................................................ 52 20 18
Transfer Agent Fees -- Trust Shares ............................... 8 8 8
Transfer Agent Fees -- Investor Shares ............................ 5 6 6
Transfer Agent Fees -- Flex Shares ................................ 5 5 5
Transfer Agent Out of Pocket Fees ................................. 3 1 --
Printing Expenses ................................................. 9 1 1
Custody Fees ...................................................... 2 -- --
Professional Fees ................................................. 4 1 --
Trustee Fees ...................................................... 1 -- --
Registration Fees ................................................. 1 -- --
Distribution Fees -- Investor Shares .............................. 2 3 6
Less: Distribution Fees Waived -- Investor Shares ................. (2) (3) (5)
Distribution Fees -- Flex Shares .................................. 9 8 21
Less: Distribution Fees Waived -- Flex Shares ..................... (9) (8) (6)
Insurance and Other Fees .......................................... 3 -- --
Amortization of Deferred Organization Costs ....................... -- -- 1
------ ------ -------
Total Expenses .................................................... 447 180 200
------ ------ -------
Net Investment Income ................................................ 3,422 1,278 1,240
------ ------ -------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Securities Sold ....................... 201 100 (2)
Net Change in Unrealized Appreciation
on Investments .................................................. 1,390 421 711
------ ------ -------
Total Net Realized and Unrealized Gain
on Investments .................................................. 1,591 521 709
------ ------ -------
Net Increase in Net Assets from Operations ........................... $5,013 $1,799 $1,949
====== ====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
67
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, 1998 (unaudited) and the
Year Ended May 31, 1998
<TABLE>
<CAPTION>
Balanced Fund Capital Growth Fund
------------------------ --------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) ............................. $ 2,423 $ 4,558 $ 3,650 $ 7,983
Net Realized Gain (Loss) on Investments .................. 4,002 17,885 54,281 261,636
Net Realized Loss on Foreign Currency
Transactions ........................................... -- -- -- --
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and
Liabilities in Foreign Currency ........................ -- -- -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments ......................................... 5,744 14,594 64,689 157,396
-------- -------- ---------- ----------
Increase (Decrease) in Net Assets from Operations ...... 12,169 37,037 122,620 427,015
-------- -------- ---------- ----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ........................................... (2,098) (4,197) (4,629) --
Investor Shares ........................................ (87) (154) (33) (28)
Flex Shares ............................................ (216) (204) -- --
Capital Gains:
Trust Shares ........................................... -- (12,908) -- (200,074)
Investor Shares ........................................ -- (536) -- --
Flex Shares ............................................ -- (972) -- (9,643)
-------- -------- ---------- ----------
Total Distributions ...................................... (2,401) (18,971) (4,662) (253,759)
-------- -------- ---------- ----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ............................ 38,636 53,532 225,794 466,511
Reinvestment of Cash Distributions ..................... 2,080 16,935 3,479 197,282
Cost of Shares Repurchased ............................. (37,187) (49,610) (252,852) (358,832)
-------- -------- ---------- ----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ........................................... 3,529 20,857 (23,579) 304,961
-------- -------- ---------- ----------
Investor Shares:
Proceeds from Shares Issued ............................ 3,352 2,150 14,539 29,116
Reinvestment of Cash Distributions ..................... 86 680 33 35,990
Cost of Shares Repurchased ............................. (948) (1,166) (21,869) (37,738)
-------- -------- ---------- ----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ..................................... 2,490 1,664 (7,297) 27,368
-------- -------- ---------- ----------
Flex Shares:
Proceeds from Shares Issued ............................ 15,372 21,409 26,350 67,377
Reinvestment of Cash Distributions ..................... 211 1,164 -- 9,528
Cost of Shares Repurchased ............................. (4,629) (2,194) (13,623) (12,730)
-------- -------- ---------- ----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ................................ 10,954 20,379 12,727 64,175
-------- -------- ---------- ----------
Increase (Decrease) in Net Assets From Share
Transactions ......................................... 16,973 42,900 (18,149) 396,504
-------- -------- ---------- ----------
Total Increase (Decrease) in Net Assets .............. 26,741 60,966 99,809 569,760
-------- -------- ---------- ----------
Net Assets:
Beginning of Period ...................................... 224,403 163,437 1,910,301 1,340,541
-------- -------- ---------- ----------
End of Period ............................................ $251,144 $224,403 $2,010,110 $1,910,301
======== ======== ========== ==========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .......................................... 2,976 4,245 13,735 29,548
Shares Issued in Lieu of Cash Distributions ............ 160 1,402 217 13,725
Shares Redeemed ........................................ (2,905) (3,922) (15,670) (22,177)
-------- -------- ---------- ----------
Net Trust Share Transactions ............................. 231 1,725 (1,718) 21,096
-------- -------- ---------- ----------
Investor Shares:
Shares Issued .......................................... 253 167 890 1,812
Shares Issued in Lieu of Cash Distributions ............ 7 56 2 2,518
Shares Redeemed ........................................ (74) (92) (1,360) --
-------- -------- ---------- ----------
Net Investor Share Transactions .......................... 186 131 (468) 1,981
-------- -------- ---------- ----------
Flex Shares:
Shares Issued .......................................... 1,179 1,688 1,624 4,242
Shares Issued in Lieu of Cash Distributions ............ 17 97 -- 674
Shares Redeemed ........................................ (361) (173) (866) (795)
-------- -------- ---------- ----------
Net Flex Share Transactions .............................. 835 1,612 758 4,121
======== ======== ========== ==========
Net Change in Capital Shares ............................. 1,252 3,468 (1,428) 27,198
-------- -------- ---------- ----------
<CAPTION>
International
Emerging Equity
Markets Equity Fund Fund
----------------------- ---------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) ............................. $ 288 $ 468 $ 1,805 $ 3,320
Net Realized Gain (Loss) on Investments .................. (3,234) (875) (2,403) 61,173
Net Realized Loss on Foreign Currency
Transactions ........................................... (16) (61) (316) (1,410)
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and
Liabilities in Foreign Currency ........................ (50) (1) (28) (93)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ......................................... (2,919) (7,440) (72,911) 50,891
------- -------- --------- --------
Increase (Decrease) in Net Assets from Operations ...... (5,931) (7,909) (73,853) 113,881
------- -------- --------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ........................................... -- (314) -- (1,649)
Investor Shares ........................................ -- -- -- (5)
Flex Shares ............................................ -- -- -- --
Capital Gains:
Trust Shares ........................................... -- (544) -- (49,334)
Investor Shares ........................................ -- -- -- (1,347)
Flex Shares ............................................ -- -- -- (1,526)
------- -------- --------- --------
Total Distributions ...................................... -- (858) -- (53,861)
------- -------- --------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ............................ 6,622 23,819 73,806 292,707
Reinvestment of Cash Distributions ..................... -- 805 -- 47,572
Cost of Shares Repurchased ............................. (7,629) (20,798) (77,154) (258,050)
------- -------- --------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ........................................... (1,007) 3,826 (3,348) 82,229
------- -------- --------- --------
Investor Shares:
Proceeds from Shares Issued ............................ -- -- 1,913 7,487
Reinvestment of Cash Distributions ..................... -- -- -- 1,351
Cost of Shares Repurchased ............................. -- -- (1,863) (3,549)
------- -------- --------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ..................................... -- -- 50 5,289
------- -------- --------- --------
Flex Shares:
Proceeds from Shares Issued ............................ -- -- 3,784 14,405
Reinvestment of Cash Distributions ..................... -- -- -- 1,507
Cost of Shares Repurchased ............................. -- -- (3,057) (4,407)
------- -------- --------- --------
Increase (Decrease) in Net Assets From
Flex Share Transactions ................................ -- -- 727 11,505
------- -------- --------- --------
Increase (Decrease) in Net Assets From Share
Transactions ......................................... (1,007) 3,826 (2,571) 99,023
------- -------- --------- --------
Total Increase (Decrease) in Net Assets .............. (6,938) (4,941) (76,424) 159,043
------- -------- --------- --------
Net Assets:
Beginning of Period ...................................... 34,554 39,495 667,417 508,374
------- -------- --------- --------
End of Period ............................................ $27,616 $ 34,554 $ 590,993 $667,417
======= ======== ========= ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .......................................... 911 2,344 5,380 20,687
Shares Issued in Lieu of Cash Distributions ............ -- 92 -- 3,744
Shares Redeemed ........................................ (1,036) (2,199) (5,807) (18,402)
------- -------- --------- --------
Net Trust Share Transactions ............................. (125) 237 (427) 6,029
------- -------- --------- --------
Investor Shares:
Shares Issued .......................................... -- -- 140 526
Shares Issued in Lieu of Cash Distributions ............ -- -- -- 107
Shares Redeemed ........................................ -- -- (143) (254)
------- -------- --------- --------
Net Investor Share Transactions .......................... -- -- (3) 379
------- -------- --------- --------
Flex Shares:
Shares Issued .......................................... -- -- 270 1,021
Shares Issued in Lieu of Cash Distributions ............ -- -- -- 121
Shares Redeemed ........................................ -- -- (241) (322)
------- -------- --------- --------
Net Flex Share Transactions .............................. -- -- 29 820
======= ======== ========= ========
Net Change in Capital Shares ............................. (125) 237 (401) 7,228
------- -------- --------- --------
</TABLE>
*Commencement of operations
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
68
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Equity Mid-Cap Equity
Index Fund Fund
--------------------- -------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98
<S> -------- -------- -------- --------
Operations: <C> <C> <C> <C>
Net Investment Income (Loss) .............................
Net Realized Gain (Loss) on Investments .................. $ 162 $ 498 $ (882) $ (1,352)
Net Realized Loss on Foreign Currency 7,424 3,349 (18,675) 54,941
Transactions ...........................................
Net Change in Unrealized Appreciation (Depreciation) on (29) (46) -- --
Foreign Currency and Translation of Other Assets and
Liabilities in Foreign Currency ........................
Net Change in Unrealized Appreciation (Depreciation) 15 19 -- --
on Investments .........................................
(6,436) 9,866 (13,698) 14,034
Increase (Decrease) in Net Assets from Operations ...... -------- -------- -------- --------
1,136 13,686 (33,255) 67,623
Distributions to Shareholders: -------- -------- -------- --------
Net Investment Income:
Trust Shares ...........................................
Investor Shares ........................................ -- (489) -- --
Flex Shares ............................................ -- (34) -- --
Capital Gains: -- -- -- --
Trust Shares ...........................................
Investor Shares ........................................ -- (2,914) -- (44,446)
Flex Shares ............................................ -- (343) -- (3,025)
-- (54) -- (1,899)
Total Distributions ...................................... -------- -------- -------- --------
-- (3,834) -- (49,370)
Capital Transactions (1): -------- -------- -------- --------
Trust Shares:
Proceeds from Shares Issued ............................
Reinvestment of Cash Distributions ..................... 5,805 8,458 102,145 146,386
Cost of Shares Repurchased ............................. -- 3,057 -- 41,347
(10,145) (17,470) (66,589) (61,475)
Increase (Decrease) in Net Assets From Trust Share -------- -------- -------- --------
Transactions ...........................................
(4,340) (5,955) (9,208) 33,761
Investor Shares: -------- -------- -------- --------
Proceeds from Shares Issued ............................
Reinvestment of Cash Distributions ..................... 575 2,516 1,939 6,110
Cost of Shares Repurchased ............................. -- 375 -- 3,019
(2,175) (2,400) (3,504) (5,606)
Increase (Decrease) in Net Assets From Investor -------- -------- -------- --------
Share Transactions .....................................
(1,600) 491 (1,565) 3,523
Flex Shares: -------- -------- -------- --------
Proceeds from Shares Issued ............................
Reinvestment of Cash Distributions ..................... 289 788 2,919 10,574
Cost of Shares Repurchased ............................. -- 53 -- 1,885
(681) (427) (2,566) (3,934)
Increase (Decrease) in Net Assets From -------- -------- -------- --------
Flex Share Transactions ................................
(392) 414 353 8,525
Increase (Decrease) in Net Assets From Share -------- -------- -------- --------
Transactions .........................................
(6,332) (5,050) (10,420) 45,809
Total Increase (Decrease) in Net Assets .............. -------- -------- -------- --------
(5,196) 4,802 (43,675) 64,062
Net Assets: -------- -------- -------- --------
Beginning of Period ......................................
64,810 60,008 381,797 317,735
End of Period ............................................ -------- -------- -------- --------
$ 59,614 $ 64,810 $338,122 $381,797
======== ======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued ..........................................
Shares Issued in Lieu of Cash Distributions ............ 449 700 8,331 10,517
Shares Redeemed ........................................ -- 277 -- 3,378
(803) (1,473) (8,995) (6,253)
Net Trust Share Transactions ............................. -------- -------- -------- --------
(354) (496) (664) 2,746
Investor Shares: -------- -------- -------- --------
Shares Issued ..........................................
Shares Issued in Lieu of Cash Distributions ............ 45 210 157 445
Shares Redeemed ........................................ -- 34 -- 248
(170) (201) (289) (407)
Net Investor Share Transactions .......................... -------- -------- -------- --------
(125) 43 (132) 286
Flex Shares: -------- -------- -------- --------
Shares Issued ..........................................
Shares Issued in Lieu of Cash Distributions ............ 22 63 237 777
Shares Redeemed ........................................ -- 5 -- 158
(56) (36) (221) (292)
Net Flex Share Transactions .............................. -------- -------- -------- --------
(34) 32 16 643
Net Change in Capital Shares ............................. ======== ======== ======== ========
(513) (421) (780) 3,675
-------- -------- -------- --------
<CAPTION>
Small Cap Small Cap
Equity Fund Growth Stock Fund
---------------------- -------------------
06/01/98- 06/01/97- 10/08/98*-
11/30/98 05/31/98 11/30/98
-------- -------- ----------
<S> <C> <C> <C>
Operations:
Net Investment Income (Loss) ............................. $ 2,022 $ 3,127 $ 1
Net Realized Gain (Loss) on Investments .................. (15,216) 32,653 31
Net Realized Loss on Foreign Currency
Transactions ........................................... -- -- --
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and
Liabilities in Foreign Currency ........................ -- -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments ......................................... (61,471) 16,045 1,360
--------- --------- ---------
Increase (Decrease) in Net Assets from Operations ...... (74,665) 51,825 1,392
--------- --------- ---------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ........................................... (2,704) -- --
Investor Shares ........................................ -- -- --
Flex Shares ............................................ (4) (70) --
Capital Gains:
Trust Shares ........................................... -- (14,480) --
Investor Shares ........................................ -- -- --
Flex Shares ............................................ -- (897) --
--------- --------- ---------
Total Distributions ...................................... (1,815) (18,151) --
--------- --------- ---------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ............................ 64,890 272,776 12,177
Reinvestment of Cash Distributions ..................... 1,160 15,603 --
Cost of Shares Repurchased ............................. (162,636) (238,878) (277,311)
--------- --------- ---------
Increase (Decrease) in Net Assets From Trust Share
Transactions ........................................... (539) 226,904 12,131
--------- --------- ---------
Investor Shares:
Proceeds from Shares Issued ............................ -- -- --
Reinvestment of Cash Distributions ..................... -- -- --
Cost of Shares Repurchased ............................. -- -- --
--------- --------- ---------
Increase (Decrease) in Net Assets From Investor
Share Transactions ..................................... -- -- --
--------- --------- ---------
Flex Shares:
Proceeds from Shares Issued ............................ 1,854 42,359 762
Reinvestment of Cash Distributions ..................... 4 958 --
Cost of Shares Repurchased ............................. (6,076) (3,490) --
--------- --------- ---------
Increase (Decrease) in Net Assets From
Flex Share Transactions ................................ (4,218) 39,827 762
--------- --------- ---------
Increase (Decrease) in Net Assets From Share
Transactions ......................................... (4,757) 266,731 12,893
--------- --------- ---------
Total Increase (Decrease) in Net Assets .............. (81,237) 300,405 14,285
--------- --------- ---------
Net Assets:
Beginning of Period ...................................... 431,454 131,049 --
--------- --------- ---------
End of Period ............................................ $ 350,217 $ 431,454 $ 14,285
========= ========= =========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .......................................... 6,171 22,065 1,020
Shares Issued in Lieu of Cash Distributions ............ 108 1,294 --
Shares Redeemed ........................................ (6,253) (4,840) (4)
--------- --------- ---------
Net Trust Share Transactions ............................. 26 18,519 1,016
--------- --------- ---------
Investor Shares:
Shares Issued .......................................... -- -- --
Shares Issued in Lieu of Cash Distributions ............ -- -- --
Shares Redeemed ........................................ -- -- --
--------- --------- ---------
Net Investor Share Transactions .......................... -- -- --
--------- --------- ---------
Flex Shares:
Shares Issued .......................................... 167 3,366 62
Shares Issued in Lieu of Cash Distributions ............ -- 80 --
Shares Redeemed ........................................ (581) (273) --
--------- --------- ---------
Net Flex Share Transactions .............................. (414) 3,173 62
========= ========= =========
Net Change in Capital Shares ............................. (388) 21,692 1,078
--------- --------- ---------
<CAPTION>
Value Income
Sunbelt Equity Fund Stock Fund
-------------------- -----------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) ............................. $ (1,165) $ (4,364) $ 17,360 $ 34,555
Net Realized Gain (Loss) on Investments .................. (11,591) 49,778 92,567 319,982
Net Realized Loss on Foreign Currency
Transactions ........................................... -- -- -- --
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and
Liabilities in Foreign Currency ........................ -- -- -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments ......................................... (92,389) 46,313 (103,094) 44,518
--------- --------- ---------- ----------
Increase (Decrease) in Net Assets from Operations ...... (105,145) 91,727 6,833 399,055
--------- --------- ---------- ----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ........................................... -- (15,567) (30,991)
Investor Shares ........................................ -- -- (1,618) (2,838)
Flex Shares ............................................ -- -- (791) (1,104)
Capital Gains:
Trust Shares ........................................... -- (32,274) -- (262,191)
Investor Shares ........................................ -- (2,333) -- (29,671)
Flex Shares ............................................ -- (516) -- (19,217)
--------- --------- ---------- ----------
Total Distributions ...................................... -- (35,123) (17,976) (346,012)
--------- --------- ---------- ----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ............................ 137,061 207,154 163,673 381,039
Reinvestment of Cash Distributions ..................... -- 30,202 11,194 269,446
Cost of Shares Repurchased ............................. (162,636) (238,878) (277,311) (459,701)
--------- --------- ---------- ----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ........................................... (25,575) (1,522) (102,444) 190,784
--------- --------- ---------- ----------
Investor Shares:
Proceeds from Shares Issued ............................ 2,040 5,150 10,098 35,483
Reinvestment of Cash Distributions ..................... -- 2,323 1,598 32,233
Cost of Shares Repurchased ............................. (3,845) (8,619) (22,242) (28,503)
--------- --------- ---------- ----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ..................................... (1,805) (1,146) (10,546) 39,213
--------- --------- ---------- ----------
Flex Shares:
Proceeds from Shares Issued ............................ 1,645 3,848 20,083 106,762
Reinvestment of Cash Distributions ..................... -- 515 776 20,054
Cost of Shares Repurchased ............................. (1,143) (2,603) (26,828) (20,844)
--------- --------- ---------- ----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ................................ 502 1,760 (5,969) 105,972
--------- --------- ---------- ----------
Increase (Decrease) in Net Assets From Share
Transactions ......................................... (26,878) (908) (118,959) 335,969
--------- --------- ---------- ----------
Total Increase (Decrease) in Net Assets .............. (132,023) 55,696 (130,102) 389,012
--------- --------- ---------- ----------
Net Assets:
Beginning of Period ...................................... 470,851 415,155 2,116,539 1,727,527
--------- --------- ---------- ----------
End of Period ............................................ $ 338,828 $ 470,851 $1,986,437 $2,116,539
========= ========== =========== ===========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .......................................... 10,718 13,707 12,489 26,871
Shares Issued in Lieu of Cash Distributions ............ -- 2,213 863 21,156
Shares Redeemed ........................................ (12,707) (16,065) (21,374) (32,467)
--------- ---------- ----------- -----------
Net Trust Share Transactions ............................. (1,989) (145) (8,022) 15,560
--------- ---------- ----------- -----------
Investor Shares:
Shares Issued .......................................... 157 353 761 2,518
Shares Issued in Lieu of Cash Distributions ............ -- 174 123 2,538
Shares Redeemed ........................................ (317) (590) (1,718) (2,003)
--------- ---------- ----------- -----------
Net Investor Share Transactions .......................... (160) (63) (834) 3,053
--------- ---------- ----------- -----------
Flex Shares:
Shares Issued .......................................... 125 260 1,523 7,617
Shares Issued in Lieu of Cash Distributions ............ -- 39 60 1,597
Shares Redeemed ........................................ (97) (184) (2,096) (1,488)
--------- ---------- ----------- -----------
Net Flex Share Transactions .............................. 28 115 (513) 7,726
========= ========== =========== ===========
Net Change in Capital Shares ............................. (2,121) (93) (9,369) 26,339
--------- ---------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
69
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000) (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For The Period Ended November 30, 1998 (unaudited) and the
Year Ended May 31, 1998
<TABLE>
<CAPTION>
Florida Georgia
Tax-Exempt Tax-Exempt Investment Grade
Bond Fund Bond Fund Bond Fund
---------------------- -------------------- ---------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98 11/30/98 05/31/98
--------- --------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .............................. $ 2,195 $ 3,410 $ 1,575 $ 2,430 $ 22,063 $ 43,082
Net Realized Gain (Loss) on Investments ............ 765 720 59 195 17,097 10,888
Net Change in Unrealized Appreciation
on Investments ................................... 1,115 2,334 1,142 1,962 5,256 24,005
-------- -------- ------- -------- --------- ---------
Increase in Net Assets from Operations ........... 4,075 6,464 2,776 4,587 44,416 77,975
-------- -------- ------- -------- --------- ---------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (1,963) (3,070) (1,369) (2,075) (20,913) (40,937)
Investor Shares .................................. (65) (128) (66) (147) (816) (1,729)
Flex Shares ...................................... (162) (211) (141) (207) (334) (416)
Capital Gains:
Trust Shares ..................................... -- (42) -- (61) -- --
Investor Shares .................................. -- (2) -- (4) -- --
Flex Shares ...................................... -- (3) -- (7) -- --
-------- -------- ------- -------- --------- ---------
Total Distributions ................................ (2,190) (3,456) (1,576) (2,501) (22,063) (43,082)
-------- -------- ------- -------- --------- ---------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................... 18,551 59,209 15,892 34,479 159,474 258,775
Reinvestment of Cash Distributions ............... 357 420 527 924 15,138 30,522
Cost of Shares Repurchased ....................... (8,382) (18,838) (5,565) (14,516) (180,506) (162,448)
-------- -------- ------- -------- --------- ---------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................... 10,526 40,791 10,854 20,887 (5,894) 126,849
-------- -------- ------- -------- --------- ---------
Investor Shares:
Proceeds from Shares Issued ...................... 643 870 193 1,508 3,015 5,860
Reinvestment of Cash Distributions ............... 51 101 60 131 776 1,609
Cost of Shares Repurchased ....................... (344) (955) (887) (1,314) (4,651) (8,920)
-------- -------- ------- -------- --------- ---------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................... 350 16 (634) 325 (860) (1,451)
-------- -------- ------- -------- --------- ---------
Flex Shares:
Proceeds from Shares Issued ...................... 3,025 6,969 1,189 4,983 5,764 9,584
Reinvestment of Cash Distributions ............... 142 172 130 186 297 351
Cost of Shares Repurchased ....................... (751) (2,189) (385) (1,770) (1,723) (2,932)
-------- -------- ------- -------- --------- ---------
Increase (Decrease) in Net Assets From
Flex Share Transactions .......................... 2,416 4,952 934 3,399 4,338 7,003
-------- -------- ------- -------- --------- ---------
Increase (Decrease) in Net Assets From Share
Transactions ................................... 13,292 45,759 11,154 24,611 (2,416) 132,401
-------- -------- ------- -------- --------- ---------
Total Increase (Decrease) in Net Assets ........ 15,177 48,767 12,354 26,697 19,937 167,294
-------- -------- ------- -------- --------- ---------
Net Assets:
Beginning of Period ................................ 105,480 56,713 74,602 47,905 839,868 672,574
-------- -------- ------- -------- --------- ---------
End of Period ...................................... $120,657 $105,480 $86,956 $ 74,602 $ 859,805 $ 839,868
======== ======== ======= ======== ========= =========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................... 1,713 5,591 1,563 3,445 14,727 24,713
Shares Issued in Lieu of Cash Distributions ...... 33 40 52 92 1,398 2,915
Shares Redeemed .................................. (775) (1,777) (545) (1,456) (16,709) (15,497)
-------- -------- ------- -------- --------- ---------
Net Trust Share Transactions ....................... 971 3,854 1,070 2,081 (584) 12,131
-------- -------- ------- -------- --------- ---------
Investor Shares:
Shares Issued .................................... 59 82 19 149 277 557
Shares Issued in Lieu of Cash Distributions ...... 5 10 6 13 72 154
Shares Redeemed .................................. (32) (90) (87) (131) (429) (852)
-------- -------- ------- -------- --------- ---------
Net Investor Share Transactions .................... 32 2 (62) 31 (80) (141)
-------- -------- ------- -------- --------- ---------
Flex Shares:
Shares Issued .................................... 280 658 117 495 531 908
Shares Issued in Lieu of Cash Distributions ...... 13 16 13 19 27 33
Shares Redeemed .................................. (69) (205) (38) (176) (159) (278)
-------- -------- ------- -------- --------- ---------
Net Flex Share Transactions ........................ 224 469 92 338 399 663
======== ======== ======= ======== ========= =========
Net Change in Capital Shares ....................... 1,227 4,325 1,100 2,450 (265) 12,653
-------- -------- ------- -------- --------- ---------
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements.
70
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investment Grade Tax- Limited-Term Federal Short-Term
Exempt Bond Fund Mortgage Securities Fund Bond Fund
--------------------- ------------------------ ---------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98 11/30/98 05/31/98
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .............................. $ 3,437 $ 6,699 $ 3,805 $ 7,936 $ 3,422 $ 6,036
Net Realized Gain (Loss) on Investments ............ 2,647 6,478 1,519 502 201 502
Net Change in Unrealized Appreciation
on Investments ................................... 1,096 1,225 268 1,031 1,390 1,163
-------- -------- -------- -------- -------- --------
Increase in Net Assets from Operations ........... 7,180 14,402 5,592 9,469 5,013 7,701
-------- -------- -------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (2,838) (5,523) (3,705) (7,721) (3,333) (5,864)
Investor Shares .................................. (469) (1,002) (65) (135) (48) (106)
Flex Shares ...................................... (131) (173) (38) (78) (43) (67)
Capital Gains:
Trust Shares ..................................... -- (3,989) -- (194) -- (100)
Investor Shares .................................. -- (799) -- (3) -- (2)
Flex Shares ...................................... -- (152) -- (2) -- (1)
-------- -------- -------- -------- -------- --------
Total Distributions ................................ (3,438) (11,638) (3,808) (8,133) (3,424) (6,140)
-------- -------- -------- -------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................... 19,734 39,596 23,942 43,610 24,277 59,682
Reinvestment of Cash Distributions ............... 707 4,599 2,368 5,346 1,650 3,238
Cost of Shares Repurchased ....................... (16,406) (38,924) (24,176) (36,666) (16,042) (33,705)
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................... 4,035 5,271 2,134 12,290 9,885 29,215
-------- -------- -------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued ...................... 802 2,484 298 1,128 202 190
Reinvestment of Cash Distributions ............... 410 1,614 65 131 47 103
Cost of Shares Repurchased ....................... (3,181) (8,284) (751) (1,006) (387) (560)
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................... (1,969) (4,186) (388) 253 (138) (267)
-------- -------- -------- -------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................... 1,463 6,179 231 691 578 1,392
Reinvestment of Cash Distributions ............... 117 296 36 75 42 65
Cost of Shares Repurchased ....................... (745) (2,842) (182) (647) (818) (441)
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From
Flex Share Transactions .......................... 835 3,633 85 119 (198) 1,016
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From Share
Transactions ................................... 2,901 4,718 1,831 12,662 9,549 29,964
-------- -------- -------- -------- -------- --------
Total Increase (Decrease) in Net Assets ........ 6,643 7,482 3,615 13,998 11,138 31,525
-------- -------- -------- -------- -------- --------
Net Assets:
Beginning of Period ................................ 183,164 175,682 141,736 127,738 124,481 92,956
-------- -------- -------- -------- -------- --------
End of Period ...................................... $189,807 $183,164 $145,351 $141,736 $135,619 $124,481
======== ======== ======== ======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................... 1,733 3,486 2,352 4,313 2,393 5,955
Shares Issued in Lieu of Cash Distributions ...... 61 407 232 529 163 323
Shares Redeemed .................................. (1,410) (3,425) (2,373) (3,626) (1,583) (3,364)
-------- -------- -------- -------- -------- --------
Net Trust Share Transactions ....................... 384 468 211 1,216 973 2,914
-------- -------- -------- -------- -------- --------
Investor Shares:
Shares Issued .................................... 70 218 29 112 20 19
Shares Issued in Lieu of Cash Distributions ...... 35 142 6 13 4 10
Shares Redeemed .................................. (276) (727) (74) (100) (38) (56)
-------- -------- -------- -------- -------- --------
Net Investor Share Transactions .................... (171) (367) (39) 25 (14) (27)
-------- -------- -------- -------- -------- --------
Flex Shares:
Shares Issued .................................... 127 544 23 68 57 139
Shares Issued in Lieu of Cash Distributions ...... 10 26 4 7 4 6
Shares Redeemed .................................. (65) (250) (18) (64) (81) (44)
-------- -------- -------- -------- -------- --------
Net Flex Share Transactions ........................ 72 320 9 11 (20) 101
======== ======== ======== ======== ======== ========
Net Change in Capital Shares ....................... 285 421 181 1,252 939 2,988
-------- -------- -------- -------- -------- --------
<CAPTION>
Short-Term U.S. Treasury U.S. Government
Securities Fund Securities Fund
------------------------ --------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
11/30/98 05/31/98 11/30/98 05/31/98
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income .............................. $ 1,278 $ 1,816 $ 1,240 $ 1,894
Net Realized Gain (Loss) on Investments ............ 100 47 (2) 55
Net Change in Unrealized Appreciation
on Investments ................................... 421 211 711 1,207
------- ------- ------- -----------
Increase in Net Assets from Operations ........... 1,799 2,074 1,9493,156
------- ------- ------- -----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (1,172) (1,575) (1,055) (1,585)
Investor Shares .................................. (69) (178) (82) (141)
Flex Shares ...................................... (37) (63) (103) (168)
Capital Gains:
Trust Shares ..................................... -- -- -- --
Investor Shares .................................. -- -- -- --
Flex Shares ...................................... -- -- -- --
------- ------- ------- -----------
Total Distributions ................................ (1,278) (1,816) (1,240) (1,894)
------- ------- ------- -----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................... 5,173 33,653 9,160 20,160
Reinvestment of Cash Distributions ............... 486 661 254 380
Cost of Shares Repurchased ....................... (5,941) (9,594) (3,739) (6,142)
------- ------- ------- -----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................... (282) 24,720 5,675 14,398
------- ------- ------- -----------
Investor Shares:
Proceeds from Shares Issued ...................... 400 479 447 1,625
Reinvestment of Cash Distributions ............... 70 180 82 134
Cost of Shares Repurchased ....................... (747) (1,338) (750) (880)
------- ------- ------- -----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................... (277) (679) (221) 879
------- ------- ------- -----------
Flex Shares:
Proceeds from Shares Issued ...................... 989 1,012 925 2,695
Reinvestment of Cash Distributions ............... 32 56 91 145
Cost of Shares Repurchased ....................... (155) (757) (511) (1,748)
------- ------- ------- -----------
Increase (Decrease) in Net Assets From
Flex Share Transactions .......................... 866 311 505 1,092
------- ------- ------- -----------
Increase (Decrease) in Net Assets From Share
Transactions ................................... 307 24,352 5,959 16,369
------- ------- ------- -----------
Total Increase (Decrease) in Net Assets ........ 828 24,610 6,668 17,631
------- ------- ------- -----------
Net Assets:
Beginning of Period ................................ 51,610 27,000 42,146 24,515
------- ------- ------- -----------
End of Period ...................................... $52,438 $51,610 $48,814 $ 42,146
======= ======= ======= ===========
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .................................... 516 3,381 866 1,949
Shares Issued in Lieu of Cash Distributions ...... 49 66 24 37
Shares Redeemed .................................. (592) (965) (355) (592)
------- ------- ------- ---------
Net Trust Share Transactions ....................... (27) 2,482 535 1,394
------- ------- ------- ---------
Investor Shares:
Shares Issued .................................... 40 48 42 157
Shares Issued in Lieu of Cash Distributions ...... 7 18 8 13
Shares Redeemed .................................. (76) (134) (71) (85)
------- ------- ------- ---------
Net Investor Share Transactions .................... (29) (68) (21) 85
------- ------- ------- ---------
Flex Shares:
Shares Issued .................................... 98 102 88 260
Shares Issued in Lieu of Cash Distributions ...... 3 6 8 14
Shares Redeemed .................................. (15) (76) (48) (169)
------- ------- ------- ---------
Net Flex Share Transactions ........................ 86 32 48 105
======= ======= ======= =========
Net Change in Capital Shares ....................... 30 2,446 562 1,584
------- ------- ------- ---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
71
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the
Years Ended May 31. For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Realized and
Net Unrealized Gains
Net Asset Value Investment (Losses) Distributions from Distributions from
Beginning of Period Income (Loss) on Investments Net Investment Income Realized Capital Gains
------------------- ------------- --------------- --------------------- ----------------------
<S> <C> <C> <C> <C> <C>
Balanced Fund
Trust Shares
1998*** $13.09 $ 0.15 $ 0.56 $(0.15) $ --
1998 11.94 0.31 2.19 (0.32) (1.03)
1997 11.55 0.33 1.47 (0.32) (1.09)
1996 10.26 0.33 1.41 (0.34) (0.11)
1995 9.76 0.33 0.49 (0.32) --
1994(1) 10.00 0.11 (0.29) (0.06) --
Investor Shares
1998*** $13.14 $ 0.13 $ 0.57 $(0.13) $ --
1998 11.99 0.28 2.19 (0.29) (1.03)
1997 11.60 0.29 1.48 (0.29) (1.09)
1996 10.30 0.30 1.41 (0.30) (0.11)
1995 9.79 0.28 0.51 (0.28) --
1994(2) 10.00 0.03 (0.24) -- --
Flex Shares
1998*** $13.02 $ 0.08 $ 0.56 $(0.08) $ --
1998 11.90 0.20 2.16 (0.21) (1.03)
1997 11.53 0.22 1.45 (0.21) (1.09)
1996(3) 10.36 0.24 1.29 (0.25) (0.11)
Capital Growth Fund
Trust Shares
1998*** $16.48 $ 0.04 $ 1.09 $(0.05) $ --
1998 15.09 0.09 3.96 (0.09) (2.57)
1997 14.90 0.12 3.13 (0.12) (2.94)
1996 12.18 0.12 3.32 (0.13) (0.59)
1995 11.99 0.16 0.57 (0.14) (0.40)
1994 11.95 0.16 0.31 (0.17) (0.26)
Investor Shares
1998*** $16.43 $ -- $ 1.08 $ -- $ --
1998 15.06 (0.01) 3.95 -- (2.57)
1997 14.89 0.03 3.10 (0.02) (2.94)
1996 12.17 0.03 3.32 (0.04) (0.59)
1995 11.98 0.09 0.57 (0.07) (0.40)
1994 11.93 0.09 0.31 (0.09) (0.26)
Flex Shares
1998*** $16.22 $(0.04) $ 1.06 $ -- $ --
1998 14.96 (0.04) 3.87 -- (2.57)
1997 14.84 (0.01) 3.07 -- (2.94)
1996(4) 12.20 0.02 3.26 (0.05) (0.59)
Emerging Markets Equity Fund
Trust Shares
1998*** $ 8.87 $ 0.08 $(1.63) $ -- $ --
1998 10.79 0.16 (1.86) (0.08) (0.14)
1997(5) 10.00 0.04 0.75 -- --
</TABLE>
* Annualized.
** Return is for the period indicated and has not been annualized.
*** For the semi-annual period ended November 30, 1998. Return is for the period
indicated and has not been annualized.
(1) Commenced operations on January 3, 1994.
(2) Commenced operations on January 4, 1994.
72
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Net Asset Net Assets Ratio of Net Investment
Value End Total End of Expenses to Income (Loss) to
of Period Return (A) Period (000) Average Net Assets Average Net Assets
---------- ---------- ------------ ------------------ ------------------
<S> <C> <C> <C> <C> <C>
Balanced Fund
Trust Shares
1998*** $13.65 5.48% $ 199,777 0.97% 2.25%
1998 13.09 22.15% 188,465 0.96% 2.51%
1997 11.94 16.66% 151,358 0.95% 2.89%
1996 11.55 17.26% 111,638 0.95% 3.00%
1995 10.26 8.72% 89,051 0.95% 3.44%
1994(1) 9.76 (1.78%)** 90,579 0.95%* 2.76%*
Investor Shares
1998*** $13.71 5.38% $ 11,228 1.27% 1.95%
1998 13.14 21.72% 8,313 1.26% 2.21%
1997 11.99 16.27% 6,012 1.25% 2.58%
1996 11.60 16.88% 4,896 1.25% 2.70%
1995 10.30 8.29% 3,765 1.25% 3.17%
1994(2) 9.79 (2.10%)** 2,311 1.25%* 2.46%*
Flex Shares
1998*** $13.58 4.99% $ 40,139 2.03% 1.20%
1998 13.02 20.85% 27,625 2.02% 1.41%
1997 11.90 15.40% 6,067 2.01% 1.84%
1996(3) 11.53 15.58%* 3,131 2.00%* 1.85%*
Capital Growth Fund
Trust Shares
1998*** $17.56 6.89% $1,603,031 1.17% 0.53%
1998 16.48 29.51% 1,532,587 1.16% 0.61%
1997 15.09 24.66% 1,085,128 1.15% 0.83%
1996 14.90 28.97% 981,498 1.15% 0.90%
1995 12.18 6.63% 984,205 1.15% 1.38%
1994 11.99 3.87% 891,870 1.15% 1.25%
Investor Shares
1998*** $17.51 6.59% $ 280,649 1.82% (0.04%)
1998 16.43 28.71% 271,044 1.81% (0.03%)
1997 15.06 23.74% 218,660 1.80% 0.19%
1996 14.89 28.18% 191,078 1.80% 0.24%
1995 12.17 5.93% 160,875 1.80% 0.73%
1994 11.98 3.26% 170,795 1.80% 0.64%
Flex Shares
1998*** $17.24 6.29% $ 126,430 2.29% (0.57%)
1998 16.22 28.12% 106,670 2.26% (0.46%)
1997 14.96 23.24% 36,753 2.27% (0.29%)
1996(4) 14.84 27.48%* 10,969 2.27%* (0.29%)*
Emerging Markets Equity Fund
Trust Shares
1998*** $ 7.32 (17.47%) $ 27,616 1.57% 2.03%
1998 8.87 (15.74%) 34,554 1.56% 1.14%
1997(5) 10.79 7.90%** 39,495 1.55%* 1.37%*
<CAPTION>
Ratio of
Ratio of Net Investment
Expenses to Income (Loss) to
Average Net Assets Average Net Assets Portfolio
(Excluding Waivers (Excluding Waivers Turnover
and Reimbursements) and Reimbursements) Rate
------------------- ------------------- ---------
<S> <C> <C> <C>
Balanced Fund
Trust Shares
1998*** 1.06% 2.16% 93%
1998 1.08% 2.39% 154%
1997 1.08% 2.76% 197%
1996 1.09% 2.86% 155%
1995 1.11% 3.28% 157%
1994(1) 1.25%* 2.46%* 106%
Investor Shares
1998*** 1.45% 1.77% 93%
1998 1.59% 1.88% 154%
1997 1.64% 2.19% 197%
1996 1.89% 2.06% 155%
1995 1.80% 2.62% 157%
1994(2) 4.91%* (1.20%)* 106%
Flex Shares
1998*** 2.16% 1.07% 93%
1998 2.23% 1.20% 154%
1997 2.45% 1.40% 197%
1996(3) 2.97%* 0.88%* 155%
Capital Growth Fund
Trust Shares
1998*** 1.26% 0.44% 78%
1998 1.27% 0.50% 194%
1997 1.25% 0.73% 141%
1996 1.27% 0.78% 156%
1995 1.28% 1.25% 128%
1994 1.29% 1.11% 124%
Investor Shares
1998*** 1.93% (0.15%) 78%
1998 2.01% (0.23%) 194%
1997 2.02% (0.03%) 141%
1996 2.08% (0.04%) 156%
1995 2.10% 0.43% 128%
1994 2.11% 0.33% 124%
Flex Shares
1998*** 2.37% (0.65%) 78%
1998 2.37% (0.57%) 194%
1997 2.43% (0.45%) 141%
1996(4) 2.68%* (0.70%)* 156%
Emerging Markets Equity Fund
Trust Shares
1998*** 1.63% 1.97% 31%
1998 1.78% 0.92% 74%
1997(5) 2.04%* 0.88%* 24%
</TABLE>
(3) Commenced operations on June 14, 1995.
(4) Commenced operations on June 1, 1995.
(5) Commenced operations on January 31, 1997.
(A) Total return figures do not reflect applicable sales loads.
The accompanying notes are an integral part of the financial statements.
73
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the
Years Ended May 31. For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Realized and
Net Unrealized Gains
Net Asset Value Investment (Losses)
Beginning of Period Income (Loss) on Investments
------------------- ------------- ----------------
<S> <C> <C> <C>
International Equity Fund
Trust Shares
1998*** $15.00 $ 0.05 $ (1.65)
1998 13.63 0.04 2.69
1997 11.40 0.03 2.57
1996(1) 10.00 0.05 1.35
Investor Shares
1998*** $14.92 $ 0.02 $ (1.64)
1998 13.58 0.02 2.64
1997 11.38 (0.01) 2.56
1996(2) 10.44 0.04 0.90
Flex Shares
1998*** $14.68 $(0.03) $ (1.61)
1998 13.47 0.07 2.46
1997 11.37 (0.04) 2.49
1996(2) 10.44 0.02 0.91
International Equity Index Fund
Trust Shares
1998*** $13.31 $ 0.04 $ 0.34
1998 11.34 0.11 2.65
1997 10.96 0.10 0.69
1996 10.24 0.10 0.84
1995(3) 10.00 0.08 0.19
Investor Shares
1998*** $13.20 $(0.01) $ 0.35
1998 11.26 0.16 2.53
1997 10.88 0.03 0.72
1996 10.20 0.05 0.85
1995(3) 10.00 0.05 0.17
Flex Shares
1998*** $13.17 $(0.08) $ 0.38
1998 11.24 0.17 2.44
1997 10.87 (0.05) 0.72
1996(4) 10.24 -- 0.82
Mid-Cap Equity Fund (B)
Trust Shares
1998*** $13.79 $(0.03) $(1.19)
1998 13.21 -- 2.54
1997 12.76 0.03 1.69
1996 11.00 0.08 2.63
1995 9.85 0.08 1.15
1994(5) 10.00 0.02 (0.16)
Investor Shares
1998*** $13.67 $(0.06) $(1.17)
1998 13.17 (0.03) 2.49
1997 12.74 (0.03) 1.69
1996 10.99 0.03 2.62
1995 9.84 0.03 1.15
1994(6) 10.00 0.01 (0.17)
Flex Shares
1998*** $13.42 $(0.09) $(1.16)
1998 13.04 (0.04) 2.38
1997 12.69 (0.07) 1.64
1996(7) 11.13 -- 2.45
<CAPTION>
Distributions from Distributions from
Net Investment Income Realized Capital Gains
--------------------- ----------------------
<S> <C> <C>
International Equity Fund
Trust Shares
1998*** $ -- $ --
1998 (0.04) (1.32)
1997 (0.02) (0.35)
1996(1) -- --
Investor Shares
1998*** $ -- $ --
1998 -- (1.32)
1997 -- (0.35)
1996(2) -- --
Flex Shares
1998*** $ -- $ --
1998 -- (1.32)
1997 -- (0.35)
1996(2) -- --
International Equity Index Fund
Trust Shares
1998*** $ -- $ --
1998 (0.11) (0.68)
1997 (0.11) (0.30)
1996 (0.13) (0.09)
1995(3) (0.02) (0.01)
Investor Shares
1998*** $ -- $ --
1998 (0.07) (0.68)
1997 (0.07) (0.30)
1996 (0.13) (0.09)
1995(3) (0.01) (0.01)
Flex Shares
1998*** $ -- $ --
1998 -- (0.68)
1997 -- (0.30)
1996(4) (0.10) (0.09)
Mid-Cap Equity Fund (B)
Trust Shares
1998*** $ -- $ --
1998 -- (1.96)
1997 (0.05) (1.22)
1996 (0.08) (0.87)
1995 (0.08) --
1994(5) (0.01) --
Investor Shares
1998*** $ -- $ --
1998 -- (1.96)
1997 (0.01) (1.22)
1996 (0.03) (0.87)
1995 (0.03) --
1994(6) -- --
Flex Shares
1998*** $ -- $ --
1998 -- (1.96)
1997 -- (1.22)
1996(7) (0.02) (0.87)
</TABLE>
* Annualized.
** Return is for the period indicated and has not been annualized.
*** For the semi-annual period ended November 30, 1998. Return is for the period
indicated and has not been annualized.
(1) Commenced operations on December 1, 1995.
(2) Commenced operations on January 2, 1996.
(3) Commenced operations on June 6, 1994.
74
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Net Assets Ratio of
Value End Total End of Expenses to
of Period Return (A) Period (000) Average Net Assets
---------- ---------- ------------ ------------------
<S> <C> <C> <C> <C>
International Equity Fund
Trust Shares
1998*** $13.40 (10.67%) $556,337 1.48%
1998 15.00 21.87% 628,870 1.47%
1997 13.63 23.29% 489,325 1.46%
1996(1) 11.40 14.00%** 213,306 1.46%*
Investor Shares
1998*** $13.30 (10.86%) $ 15,454 1.83%
1998 14.92 21.39% 17,383 1.82%
1997 13.58 22.85% 10,674 1.81%
1996(2) 11.38 9.00%** 3,448 1.81%*
Flex Shares
1998*** $13.04 (11.17%) $ 19,202 2.53%
1998 14.68 20.54% 21,164 2.52%
1997 13.47 21.98% 8,375 2.51%
1996(2) 11.37 8.91%** 953 2.51%*
International Equity Index Fund
Trust Shares
1998*** $13.69 2.85% $ 52,983 1.07%
1998 13.31 25.82% 56,200 1.06%
1997 11.34 7.48% 53,516 1.05%
1996 10.96 9.29% 90,980 1.05%
1995(3) 10.24 2.69%** 89,446 1.05%*
Investor Shares
1998*** $13.54 2.58% $ 5,587 1.47%
1998 13.20 25.25% 7,141 1.46%
1997 11.26 7.12% 5,592 1.45%
1996 10.88 8.90% 5,597 1.45%
1995(3) 10.20 2.18%** 3,960 1.45%*
Flex Shares
1998*** $13.47 2.28% $ 1,044 2.12%
1998 13.17 24.50% 1,469 2.11%
1997 11.24 6.41% 900 2.10%
1996(4) 10.87 8.32%** 917 2.10%*
Mid-Cap Equity Fund (B)
Trust Shares
1998*** $12.57 (8.85)% $ 299,630 1.17%
1998 13.79 21.14% 337,825 1.16%
1997 13.21 14.23% 287,370 1.15%
1996 12.76 25.54% 253,905 1.15%
1995 11.00 12.56% 125,562 1.15%
1994(5) 9.85 (1.39%)** 57,036 1.15%*
Investor Shares
1998*** $12.44 (9.00)% $ 21,026 1.62%
1998 13.67 20.56% 24,930 1.61%
1997 13.17 13.76% 20,245 1.60%
1996 12.74 24.93% 17,971 1.60%
1995 10.99 11.96% 7,345 1.60%
1994(6) 9.84 (1.60%)** 3,004 1.60%*
Flex Shares
1998*** $12.17 (9.31)% $ 17,466 2.22%
1998 13.42 19.80% 19,042 2.21%
1997 13.04 13.06% 10,120 2.20%
1996(7) 12.69 23.00%* 5,029 2.20%*
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses to Income (Loss) to
Net Investment Average Net Assets Average Net Assets Portfolio
Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover
Average Net Assets and Reimbursements) and Reimbursements) Rate
------------------ ------------------- ------------------- ---------
<S> <C> <C> <C> <C>
International Equity Fund
Trust Shares
1998*** 0.64% 1.52% 0.60% 65%
1998 0.61% 1.48% 0.60% 108%
1997 0.51% 1.51% 0.46% 139%
1996(1) 1.36%* 1.65%* 1.17%* 113%
Investor Shares
1998*** 0.23% 1.86% 0.20% 65%
1998 0.24% 1.91% 0.15% 108%
1997 0.18% 2.05% (0.06%) 139%
1996(2) 1.73%* 3.14%* 0.40%* 113%
Flex Shares
1998*** (0.51%) 2.53% (0.51%) 65%
1998 (0.46%) 2.58% (0.52%) 108%
1997 (0.27%) 3.03% (0.79%) 139%
1996(2) 1.08%* 5.86%* (2.27%)* 113%
International Equity Index Fund
Trust Shares
1998*** 0.59% 1.17% 0.49% 23%
1998 0.88% 1.18% 0.76% 1%
1997 0.71% 1.15% 0.61% 2%
1996 0.84% 1.19% 0.70% 30%
1995(3) 1.13%* 1.31%* 0.87%* 10%
Investor Shares
1998*** 0.23% 1.68% 0.02% 23%
1998 0.50% 1.84% 0.12% 1%
1997 0.28% 1.88% (0.15%) 2%
1996 0.48% 2.06% (0.13%) 30%
1995(3) 0.67%* 2.44%* (0.32%)* 10%
Flex Shares
1998*** (0.34)% 2.92% (1.14%) 23%
1998 (0.03%) 3.52% (1.44%) 1%
1997 (0.39%) 3.69% (1.98%) 2%
1996(4) (0.24%)* 4.14%* (2.28%)* 30%
Mid-Cap Equity Fund (B)
Trust Shares
1998*** (0.44%) 1.28% (0.55%) 34%
1998 (0.29%) 1.27% (0.40%) 129%
1997 0.23% 1.26% 0.12% 152%
1996 0.70% 1.29% 0.56% 116%
1995 0.88% 1.32% 0.71% 66%
1994(5) 1.20%* 1.68%* 0.67%* 8%
Investor Shares
1998*** (0.86%) 1.76% (1.00%) 34%
1998 (0.75%) 1.84% (0.98%) 129%
1997 (0.21%) 1.85% (0.46%) 152%
1996 0.25% 1.96% (0.11%) 116%
1995 0.43% 2.27% (0.24%) 66%
1994(6) 0.74%* 4.60%* (2.26%)* 8%
Flex Shares
1998*** (1.49%) 2.47% (1.74%) 34%
1998 (1.37%) 2.47% (1.63%) 129%
1997 (0.85%) 2.58% (1.23%) 152%
1996(7) (0.37%)* 3.04%* (1.21%)* 116%
</TABLE>
(4) Commenced operations on June 8, 1995.
(5) Commenced operations on February 2, 1994.
(6) Commenced operations on February 1, 1994.
(7) Commenced operations on June 5, 1995.
(A) Total return figures do not reflect applicable sales loads.
(B) During the fiscal year ended May 31, 1996, the Aggressive Growth Fund
changed its name to the Mid-Cap Equity Fund.
The accompanying notes are an integral part of the financial statements.
75
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the
Years Ended May 31. For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Realized and
Net Unrealized Gains
Net Asset Value Investment (Losses) Distributions from Distributions from
Beginning of Period Income (Loss) on Investments Net Investment Income Realized Capital Gains
------------------- ------------- --------------- --------------------- ----------------------
<S> <C> <C> <C> <C> <C>
Small Cap Equity Fund
Trust Shares
1998*** $12.88 $ 0.07 $(2.31) $(0.06) $--
1998 11.07 0.14 2.41 (0.12) (0.62)
1997(1) 10.00 0.05 1.04 (0.02) --
Flex Shares
1998*** $12.80 $-- $(2.28) $-- $--
1998(2) 11.28 0.03 2.17 (0.06) (0.62)
Small Cap Growth Stock Fund
Trust Shares
1998(3)*** $10.00 $-- $ 3.26 $-- $--
Flex Shares
1998(3)*** $10.00 $-- $ 3.24 $-- $--
Sunbelt Equity Fund
Trust Shares
1998*** $15.12 $(0.05) $(3.39) $-- $--
1998 13.28 0.01 3.03 -- (1.20)
1997 14.11 (0.09) 0.25 -- (0.99)
1996 10.03 (0.04) 4.32 -- (0.20)
1995 9.70 (0.01) 0.38 -- (0.04)
1994(4) 10.00 -- (0.30) -- --
Investor Shares
1998*** $14.77 $(0.10) $(3.29) $-- $--
1998 13.06 (0.07) 2.98 -- (1.20)
1997 13.95 (0.14) 0.24 -- (0.99)
1996 9.96 (0.11) 4.30 -- (0.20)
1995 9.69 (0.05) 0.36 -- (0.04)
1994(5) 10.00 (0.02) (0.29) -- --
Flex Shares
1998*** $14.60 $(0.08) $(3.31) $-- $--
1998 13.00 (0.09) 2.89 -- (1.20)
1997 13.97 (0.14) 0.16 -- (0.99)
1996(6) 10.20 (0.07) 4.04 -- (0.20)
Value Income Stock Fund
Trust Shares
1998*** $13.90 $ 0.13 $-- $(0.13) $--
1998 13.71 0.26 2.62 (0.27) (2.42)
1997 13.15 0.30 2.32 (0.30) (1.76)
1996 11.59 0.35 2.71 (0.34) (1.16)
1995 10.54 0.32 1.56 (0.32) (0.51)
1994 10.23 0.29 0.70 (0.32) (0.36)
Investor Shares
1998*** $13.87 $ 0.10 $ 0.01 $(0.11) $--
1998 13.68 0.20 2.62 (0.21) (2.42)
1997 13.13 0.25 2.32 (0.26) (1.76)
1996 11.58 0.30 2.71 (0.30) (1.16)
1995 10.52 0.28 1.56 (0.27) (0.51)
1994 10.23 0.26 0.67 (0.27) (0.37)
Flex Shares
1998*** $13.75 $ 0.05 $ 0.01 $(0.06) $--
1998 13.61 0.12 2.57 (0.13) (2.42)
1997 13.08 0.18 2.29 (0.18) (1.76)
1996(7) 11.59 0.26 2.65 (0.26) (1.16)
</TABLE>
* Annualized.
** Return is for the period indicated and has not been annualized.
*** For the semi-annual period ended November 30, 1998. Return is for the period
indicated and has not been annualized.
(1) Commenced operations on January 31, 1997.
(2) Commenced operations on June 5, 1997.
(3) Commenced operations on October 8, 1998.
76
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Net Assets Ratio of
Value End Total End of Expenses to
of Period Return (A) Period (000) Average Net Assets
---------- ---------- ------------ ------------------
<S> <C> <C> <C> <C>
Small Cap Equity Fund
Trust Shares
1998*** $10.58 (17.39)% $ 321,181 1.22%
1998 12.88 23.59% 390,841 1.21%
1997(1) 11.07 10.97%** 131,049 1.20%*
Flex Shares
1998*** $10.52 (17.80)% $ 29,036 2.27%
1998(2) 12.80 22.29%** 40,613 2.06%*
Small Cap Growth Stock Fund
Trust Shares
1998(3)*** $13.26 9.86% $ 13,474 1.20%
Flex Shares
1998(3)*** $13.24 9.78% $ 811 2.25%
Sunbelt Equity Fund
Trust Shares
1998*** $11.68 22.75% $ 310,355 1.17%
1998 15.12 23.86% 431,921 1.16%
1997 13.28 1.48% 381,371 1.15%
1996 14.11 43.19% 412,430 1.15%
1995 10.03 3.81% 258,908 1.15%
1994(4) 9.70 (2.99%)** 128,280 1.15%*
Investor Shares
1998*** $11.38 18.19% $ 21,962 1.62%
1998 14.77 23.25% 30,860 1.61%
1997 13.06 1.05% 28,095 1.60%
1996 13.95 42.58% 29,002 1.60%
1995 9.96 3.20% 22,180 1.60%
1994(5) 9.69 (3.10%)** 16,077 1.60%*
Flex Shares
1998*** $11.21 18.65% $ 6,511 2.22%
1998 14.60 22.48% 8,070 2.21%
1997 13.00 0.46% 5,689 2.20%
1996(6) 13.97 39.86%* 2,705 2.20%*
Value Income Stock Fund
Trust Shares
1998*** $13.90 1.00% $1,613,933 0.92%
1998 13.90 23.10% 1,725,418 0.92%
1997 13.71 22.18% 1,488,062 0.91%
1996 13.15 27.91% 1,244,399 0.92%
1995 11.59 19.06% 991,977 0.95%
1994 10.54 9.95% 573,082 0.88%
Investor Shares
1998*** $13.87 0.84% $ 199,035 1.27%
1998 13.87 22.71% 210,591 1.27%
1997 13.68 21.69% 165,999 1.30%
1996 13.13 27.39% 130,597 1.30%
1995 11.58 18.71% 92,256 1.30%
1994 10.52 9.27% 60,589 1.25%
Flex Shares
1998*** $13.75 0.47% $ 173,469 2.02%
1998 13.75 21.76% 180,530 2.01%
1997 13.61 20.91% 73,466 2.00%
1996(7) 13.08 26.52%* 26,298 2.00%*
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses to Income (Loss) to
Net Investment Average Net Assets Average Net Assets Portfolio
Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover
Average Net Assets and Reimbursements) and Reimbursements) Rate
------------------ ------------------- ------------------- ---------
<S> <C> <C> <C> <C>
Small Cap Equity Fund
Trust Shares
1998*** 1.24% 1.29% 1.18% 26%
1998 1.07% 1.31% 0.97% 55%
1997(1) 1.86%* 1.37%* 1.69%* 27%
Flex Shares
1998*** 0.19% 2.54% (0.08%) 26%
1998(2) 0.01%* 2.35%* (0.28%)* 55%
Small Cap Growth Stock Fund
Trust Shares
1998(3)*** 0.19% 2.45% (1.06%) 11%
Flex Shares
1998(3)*** (1.00%) 7.57% (6.33%) 11%
Sunbelt Equity Fund
Trust Shares
1998*** (0.56%) 1.29% (0.68%) 47%
1998 (0.90%) 1.27% (1.01%) 70%
1997 (0.65%) 1.26% (0.76%) 72%
1996 (0.34%) 1.28% (0.47%) 106%
1995 (0.12%) 1.30% (0.27%) 80%
1994(4) (0.19%)* 1.58%* (0.62%)* 21%
Investor Shares
1998*** (0.97%) 1.79% (1.14%) 47%
1998 (1.35%) 1.86% (1.60%) 70%
1997 (1.10%) 1.84% (1.34%) 72%
1996 (0.79%) 1.93% (1.12%) 106%
1995 (0.57%) 1.98% (0.95%) 80%
1994(5) (0.63%)* 2.04%* (1.07%)* 21%
Flex Shares
1998*** (1.61%) 2.60% (1.99%) 47%
1998 (1.96%) 2.58% (2.33%) 70%
1997 (1.72%) 2.69% (2.21%) 72%
1996(6) (1.43%)* 3.62%* (2.85%)* 106%
Value Income Stock Fund
Trust Shares
1998*** 1.91% 0.92% 1.91% 32%
1998 1.85% 0.92% 1.85% 99%
1997 2.40% 0.91% 2.40% 105%
1996 2.86% 0.92% 2.86% 134%
1995 3.16% 0.95% 3.16% 126%
1994 3.21% 0.97% 3.12% 149%
Investor Shares
1998*** 1.56% 1.27% 1.56% 32%
1998 1.47% 1.27% 1.47% 99%
1997 2.01% 1.31% 2.00% 105%
1996 2.47% 1.37% 2.40% 134%
1995 2.80% 1.41% 2.69% 126%
1994 2.80% 1.44% 2.61% 149%
Flex Shares
1998*** 0.82% 2.02% 0.82% 32%
1998 0.78% 2.01% 0.78% 99%
1997 1.33% 2.03% 1.30% 105%
1996(7) 1.72%* 2.15%* 1.57%* 134%
</TABLE>
(4) Commenced operations on January 3, 1994.
(5) Commenced operations on January 4, 1994.
(6) Commenced operations on June 5, 1995.
(7) Commenced operations on June 1, 1995.
(A) Total return figures do not reflect applicable sales loads.
The accompanying notes are an integral part of the financial statements.
77
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the
Years Ended May 31. For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Realized and
Net Unrealized Gains
Net Asset Value Investment (Losses)
Beginning of Period Income (Loss) on Investments
------------------- ------------- ---------------
<S> <C> <C> <C>
Florida Tax-Exempt Bond Fund
Trust Shares
1998*** $10.72 $ 0.21 $ 0.18
1998 10.28 0.44 0.45
1997 10.06 0.46 0.25
1996 10.18 0.46 (0.07)
1995 9.75 0.44 0.43
1994(1) 10.00 0.13 (0.25)
Investor Shares
1998*** $10.72 $ 0.20 $ 0.19
1998 10.29 0.42 0.44
1997 10.07 0.44 0.25
1996 10.18 0.44 (0.06)
1995 9.75 0.42 0.43
1994(2) 10.00 0.13 (0.25)
Flex Shares
1998*** $10.74 $ 0.18 $ 0.18
1998 10.30 0.37 0.45
1997 10.08 0.39 0.25
1996(3) 10.19 0.39 (0.06)
Georgia Tax-Exempt Bond Fund
Trust Shares
1998*** $10.11 $ 0.20 $ 0.15
1998 9.73 0.41 0.39
1997 9.56 0.42 0.22
1996 9.63 0.43 (0.05)
1995 9.42 0.42 0.21
1994(2) 10.00 0.14 (0.58)
Investor Shares
1998*** $10.13 $ 0.19 $ 0.15
1998 9.74 0.39 0.40
1997 9.58 0.40 0.21
1996 9.65 0.41 (0.05)
1995 9.44 0.40 0.21
1994(4) 10.00 0.13 (0.56)
Flex Shares
1998*** $10.12 $ 0.16 $ 0.14
1998 9.73 0.34 0.40
1997 9.56 0.35 0.22
1996(5) 9.72 0.36 (0.14)
<CAPTION>
Distributions from Distributions from
Net Investment Income Realized Capital Gains
--------------------- ----------------------
<S> <C> <C>
Florida Tax-Exempt Bond Fund
Trust Shares
1998*** $(0.21) $--
1998 (0.44) (0.01)
1997 (0.46) (0.03)
1996 (0.46) (0.05)
1995 (0.44) --
1994(1) (0.13) --
Investor Shares
1998*** $(0.20) $--
1998 (0.42) (0.01)
1997 (0.44) (0.03)
1996 (0.44) (0.05)
1995 (0.42) --
1994(2) (0.13) --
Flex Shares
1998*** $(0.18) $--
1998 (0.37) (0.01)
1997 (0.39) (0.03)
1996(3) (0.39) (0.05)
Georgia Tax-Exempt Bond Fund
Trust Shares
1998*** $(0.20) $--
1998 (0.41) (0.01)
1997 (0.42) (0.05)
1996 (0.43) (0.02)
1995 (0.42) --
1994(2) (0.14) --
Investor Shares
1998*** $(0.19) $--
1998 (0.39) (0.01)
1997 (0.40) (0.05)
1996 (0.41) (0.02)
1995 (0.40) --
1994(4) (0.13) --
Flex Shares
1998*** $(0.16) $--
1998 (0.34) (0.01)
1997 (0.35) (0.05)
1996(5) (0.36) (0.02)
</TABLE>
* Annualized.
** Return is for the period indicated and has not been annualized.
*** For the semi-annual period ended November 30, 1998. Return is for the period
indicated and has not been annualized.
(1) Commenced operations on January 25, 1994.
(2) Commenced operations on January 18, 1994.
78
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Net Assets Ratio of
Value End Total End of Expenses to
of Period Return (A) Period (000) Average Net Assets
---------- ---------- ------------ ------------------
<S> <C> <C> <C> <C>
Florida Tax-Exempt Bond Fund
Trust Shares
1998*** $10.90 3.70% $ 106,117 0.67%
1998 10.72 8.77% 93,939 0.66%
1997 10.28 7.22% 50,487 0.65%
1996 10.06 3.87% 30,790 0.65%
1995 10.18 9.26% 10,118 0.65%
1994(1) 9.75 (1.19%)** 3,192 0.65%*
Investor Shares
1998*** $10.91 3.69% $ 3,789 0.87%
1998 10.72 8.46% 3,381 0.86%
1997 10.29 7.00% 3,226 0.85%
1996 10.07 3.76% 4,025 0.85%
1995 10.18 9.04% 3,320 0.85%
1994(2) 9.75 (1.22%)** 2,280 0.85%*
Flex Shares
1998*** $10.92 3.34% $ 10,751 1.37%
1998 10.74 8.04% 8,160 1.36%
1997 10.30 6.48% 3,000 1.35%
1996(3) 10.08 3.27%* 2,692 1.35%*
Georgia Tax-Exempt Bond Fund
Trust Shares
1998*** $10.26 3.48% $ 74,243 0.67%
1998 10.11 8.37% 62,363 0.66%
1997 9.73 6.79% 39,732 0.65%
1996 9.56 3.89% 22,950 0.65%
1995 9.63 6.94% 13,187 0.65%
1994(2) 9.42 (4.43%)** 4,338 0.65%*
Investor Shares
1998*** $10.28 3.36% $ 3,390 0.87%
1998 10.13 8.26% 3,975 0.86%
1997 9.74 6.47% 3,511 0.85%
1996 9.58 3.69% 3,418 0.85%
1995 9.65 6.70% 3,268 0.85%
1994(4) 9.44 (4.29%)** 3,300 0.85%*
Flex Shares
1998*** $10.26 3.02% $ 9,323 1.37%
1998 10.12 7.74% 8,264 1.36%
1997 9.73 6.06% 4,662 1.35%
1996(5) 9.56 2.25%* 4,207 1.35%*
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses to Income (Loss) to
Net Investment Average Net Assets Average Net Assets Portfolio
Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover
Average Net Assets and Reimbursements) and Reimbursements) Rate
------------------ ------------------- ------------------- ---------
<S> <C> <C> <C> <C>
Florida Tax-Exempt Bond Fund
Trust Shares
1998*** 3.94% 0.76% 3.85% 41%
1998 4.16% 0.80% 4.02% 69%
1997 4.48% 0.80% 4.33% 135%
1996 4.49% 0.88% 4.26% 63%
1995 4.63% 1.13% 4.15% 105%
1994(1) 3.86%* 1.12%* 3.39%* 53%
Investor Shares
1998*** 3.75% 1.33% 3.28% 41%
1998 3.98% 1.34% 3.50% 69%
1997 4.28% 1.31% 3.82% 135%
1996 4.28% 1.36% 3.77% 63%
1995 4.36% 1.50% 3.71% 105%
1994(2) 3.67%* 3.20%* 1.32%* 53%
Flex Shares
1998*** 3.25% 1.91% 2.71% 41%
1998 3.45% 2.01% 2.80% 69%
1997 3.78% 2.28% 2.85% 135%
1996(3) 3.79%* 2.54%* 2.60%* 63%
Georgia Tax-Exempt Bond Fund
Trust Shares
1998*** 3.89% 0.77% 3.78% 3%
1998 4.09% 0.81% 3.94% 7%
1997 4.31% 0.81% 4.15% 15%
1996 4.36% 0.89% 4.12% 60%
1995 4.56% 0.98% 4.23% 25%
1994(2) 4.12%* 1.06%* 3.71%* 26%
Investor Shares
1998*** 3.69% 1.24% 3.33% 3%
1998 3.89% 1.30% 3.45% 7%
1997 4.10% 1.33% 3.62% 15%
1996 4.17% 1.41% 3.61% 60%
1995 4.31% 1.43% 3.73% 25%
1994(4) 3.93%* 2.36%* 2.42%* 26%
Flex Shares
1998*** 3.22% 1.92% 2.67% 3%
1998 3.39% 2.02% 2.73% 7%
1997 3.60% 2.07% 2.88% 15%
1996(5) 3.66%* 2.35%* 2.66%* 60%
</TABLE>
(3) Commenced operations on June 1, 1995.
(4) Commenced operations on January 19, 1994.
(5) Commenced operations on June 6, 1995.
(A) Total return figures do not reflect applicable sales loads.
The accompanying notes are an integral part of the financial statements.
79
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the
Years Ended May 31. For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Realized and
Net Unrealized Gains
Net Asset Value Investment (Losses)
Beginning of Period Income on Investments
------------------- ------------- ---------------
<S> <C> <C> <C>
Investment Grade Bond Fund
Trust Shares
1998*** $10.65 $ 0.28 $ 0.29
1998 10.16 0.60 0.49
1997 10.07 0.60 0.09
1996 10.26 0.60 (0.19)
1995 9.89 0.61 0.37
1994 10.45 0.50 (0.36)
Investor Shares
1998*** $10.65 $ 0.27 $ 0.29
1998 10.16 0.55 0.49
1997 10.06 0.56 0.10
1996 10.26 0.56 (0.20)
1995 9.89 0.57 0.38
1994 10.44 0.46 (0.35)
Flex Shares
1998*** $10.66 $ 0.24 $ 0.29
1998 10.17 0.51 0.49
1997 10.07 0.51 0.10
1996(1) 10.33 0.52 (0.26)
Investment Grade Tax-Exempt Bond Fund
Trust Shares
1998*** $11.40 $ 0.22 $ 0.23
1998 11.22 0.44 0.50
1997 11.10 0.44 0.33
1996 11.28 0.45 0.19
1995 10.68 0.46 0.60
1994(2) 11.37 0.22 (0.34)
Investor Shares
1998*** $11.41 $ 0.20 $ 0.23
1998 11.24 0.39 0.49
1997 11.12 0.40 0.33
1996 11.30 0.41 0.19
1995 10.69 0.42 0.61
1994 10.79 0.33 0.25
Flex Shares
1998*** $11.40 $ 0.17 $ 0.23
1998 11.23 0.33 0.49
1997 11.11 0.35 0.33
1996(3) 11.30 0.37 0.18
Limited-Term Federal Mortgage Securities Fund
Trust Shares
1998*** $10.12 $ 0.27 $ 0.12
1998 10.02 0.58 0.11
1997 9.99 0.58 0.04
1996 10.11 0.62 (0.14)
1995(4) 10.00 0.58 0.13
Investor Shares
1998*** $10.11 $ 0.26 $ 0.12
1998 10.00 0.56 0.12
1997 9.97 0.56 0.04
1996 10.11 0.60 (0.14)
1995(5) 9.98 0.58 0.13
Flex Shares
1998*** $10.12 $ 0.24 $ 0.13
1998 10.02 0.52 0.11
1997 9.99 0.52 0.04
1996(1) 10.14 0.55 (0.15)
<CAPTION>
Distributions from Distributions from
Net Investment Income Realized Capital Gains
--------------------- ----------------------
<S> <C> <C>
Investment Grade Bond Fund
Trust Shares
1998*** $(0.28) $--
1998 (0.60) --
1997 (0.60) --
1996 (0.60) --
1995 (0.61) --
1994 (0.50) (0.20)
Investor Shares
1998*** $(0.27) $--
1998 (0.55) --
1997 (0.56) --
1996 (0.56) --
1995 (0.58) --
1994 (0.46) (0.20)
Flex Shares
1998*** $(0.24) $--
1998 (0.51) --
1997 (0.51) --
1996(1) (0.52) --
Investment Grade Tax-Exempt Bond Fund
Trust Shares
1998*** $(0.22) $--
1998 (0.44) (0.32)
1997 (0.44) (0.21)
1996 (0.45) (0.37)
1995 (0.46) --
1994(2) (0.22) (0.35)
Investor Shares
1998*** $(0.20) $--
1998 (0.39) (0.32)
1997 (0.40) (0.21)
1996 (0.41) (0.37)
1995 (0.42) --
1994 (0.33) (0.35)
Flex Shares
1998*** $(0.17) $--
1998 (0.33) (0.32)
1997 (0.35) (0.21)
1996(3) (0.37) (0.37)
Limited-Term Federal Mortgage SecuritiesFund
Trust Shares
1998*** $(0.27) $--
1998 (0.58) (0.01)
1997 (0.58) (0.01)
1996 (0.60) --
1995(4) (0.60) --
Investor Shares
1998*** $(0.26) $--
1998 (0.56) (0.01)
1997 (0.56) (0.01)
1996 (0.60) --
1995(5) (0.58) --
Flex Shares
1998*** $(0.24) $--
1998 (0.52) (0.01)
1997 (0.52) (0.01)
1996(1) (0.55) --
</TABLE>
* Annualized.
** Return is for the period indicated and has not been annualized.
*** For the semi-annual period ended November 30, 1998. Return is for the period
indicated and has not been annualized.
(1) Commenced operations on June 7, 1995.
(2) Commenced operations on October 21, 1993.
80
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Net Assets Ratio of
Value End Total End of Expenses to
of Period Return (A) Period (000) Average Net Assets
---------- ---------- ------------ ------------------
<S> <C> <C> <C> <C>
Investment Grade Bond Fund
Trust Shares
1998*** $10.94 5.44% $808,661 0.77%
1998 10.65 10.92% 793,488 0.76%
1997 10.16 6.99% 633,646 0.75%
1996 10.07 4.02% 599,514 0.75%
1995 10.26 10.39% 543,308 0.75%
1994 9.89 1.17% 460,538 0.75%
Investor Shares
1998*** $10.94 5.26% $ 33,301 1.17%
1998 10.65 10.49% 33,269 1.14%
1997 10.16 6.66% 33,165 1.15%
1996 10.06 3.50% 36,155 1.15%
1995 10.26 10.04% 33,772 1.15%
1994 9.89 0.86% 35,775 1.14%
Flex Shares
1998*** $10.95 4.97% $ 17,843 1.66%
1998 10.66 9.99% 13,111 1.65%
1997 10.17 6.16% 5,763 1.64%
1996(1) 10.07 2.50%* 4,621 1.64%*
Investment Grade Tax-Exempt Bond Fund
Trust Shares
1998*** $11.63 3.97% $153,649 0.77%
1998 11.40 8.57% 146,606 0.76%
1997 11.22 7.13% 139,144 0.75%
1996 11.10 5.82% 124,507 0.75%
1995 11.28 10.21% 78,208 0.75%
1994(2) 10.68 (1.10%)** 44,595 0.75%*
Investor Shares
1998*** $11.64 3.77% $ 26,743 1.17%
1998 11.41 8.05% 28,159 1.16%
1997 11.24 6.69% 31,857 1.15%
1996 11.12 5.40% 37,427 1.15%
1995 11.30 9.91% 41,693 1.15%
1994 10.69 5.37% 46,182 1.14%
Flex Shares
1998*** $11.63 3.52% $ 9,415 1.65%
1998 11.40 7.50% 8,399 1.64%
1997 11.23 6.19% 4,681 1.63%
1996(3) 11.11 4.91%* 5,536 1.63%*
Limited-Term Federal Mortgage Securities Fund
Trust Shares
1998*** $10.24 3.90% $141,353 0.67%
1998 10.12 7.12% 137,488 0.66%
1997 10.02 6.43% 123,903 0.65%
1996 9.99 4.84% 73,370 0.65%
1995(4) 10.11 7.50%** 41,823 0.65%*
Investor Shares
1998*** $10.23 3.73% $ 2,351 0.92%
1998 10.11 6.95% 2,705 0.91%
1997 10.00 6.17% 2,426 0.90%
1996 9.97 4.59% 2,512 0.90%
1995(5) 10.11 7.45%** 623 0.90%*
Flex Shares
1998*** $10.25 3.69% $ 1,647 1.27%
1998 10.12 6.49% 1,543 1.26%
1997 10.02 5.80% 1,409 1.25%
1996(1) 9.99 4.10%* 1,349 1.25%*
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses to Income (Loss) to
Net Investment Average Net Assets Average Net Assets Portfolio
Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover
Average Net Assets and Reimbursements) and Reimbursements) Rate
------------------ ------------------- ------------------- ---------
<S> <C> <C> <C> <C>
Investment Grade Bond Fund
Trust Shares
1998*** 5.23% 0.86% 5.15% 107%
1998 5.67% 0.86% 5.57% 109%
1997 5.89% 0.85% 5.79% 298%
1996 5.81% 0.87% 5.69% 184%
1995 6.22% 0.88% 6.09% 238%
1994 4.77% 0.88% 4.64% 259%
Investor Shares
1998*** 4.89% 1.31% 4.75% 107%
1998 5.29% 1.38% 5.05% 109%
1997 5.48% 1.41% 5.22% 298%
1996 5.40% 1.44% 5.11% 184%
1995 5.79% 1.49% 5.45% 238%
1994 4.39% 1.41% 4.12% 259%
Flex Shares
1998*** 4.33% 1.80% 4.19% 107%
1998 4.76% 2.11% 4.30% 109%
1997 5.00% 2.20% 4.44% 298%
1996(1) 4.84%* 2.49%* 3.99%* 184%
Investment Grade Tax-Exempt Bond Fund
Trust Shares
1998*** 3.80% 0.87% 3.70% 98%
1998 3.83% 0.88% 3.71% 378%
1997 3.96% 0.86% 3.85% 489%
1996 4.01% 0.89% 3.87% 514%
1995 4.34% 0.91% 4.18% 592%
1994(2) 3.46%* 0.95%* 3.26%* 432%
Investor Shares
1998*** 3.41% 1.32% 3.26% 98%
1998 3.43% 1.43% 3.16% 378%
1997 3.56% 1.38% 3.33% 489%
1996 3.61% 1.42% 3.34% 514%
1995 3.88% 1.43% 3.60% 592%
1994 2.96% 1.51% 2.59% 432%
Flex Shares
1998*** 2.92% 1.86% 2.71% 98%
1998 2.95% 2.10% 2.49% 378%
1997 3.08% 2.15% 2.56% 489%
1996(3) 3.12%* 2.25%* 2.50%* 514%
Limited-Term Federal Mortgage Securities Fund
Trust Shares
1998*** 5.29% 0.77% 5.20% 202%
1998 5.75% 0.77% 5.64% 163%
1997 5.81% 0.78% 5.68% 133%
1996 6.04% 0.84% 5.85% 83%
1995(4) 6.43%* 0.93%* 6.15%* 68%
Investor Shares
1998*** 5.04% 1.49% 4.48% 202%
1998 5.50% 1.51% 4.90% 163%
1997 5.55% 1.48% 4.97% 133%
1996 5.75% 2.25% 4.40% 83%
1995(5) 6.27%* 7.74%* (0.57%)* 68%
Flex Shares
1998*** 4.69% 1.96% 4.00% 202%
1998 5.16% 2.72% 3.70% 163%
1997 5.20% 2.66% 3.79% 133%
1996(1) 5.38%* 3.59%* 3.04%* 83%
</TABLE>
(3) Commenced operations on June 1, 1995.
(4) Commenced operations on June 7, 1994.
(5) Commenced operations on July 17, 1994.
(A) Total return figures do not reflect applicable sales loads.
The accompanying notes are an integral part of the financial statements.
81
<PAGE>
FINANCIAL HIGHLIGHTS (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the
Years Ended May 31. For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Realized and
Net Unrealized Gains
Net Asset Value Investment (Losses)
Beginning of Period Income (Loss) on Investments
------------------- ------------- ---------------
<S> <C> <C> <C>
Short-Term Bond Fund
Trust Shares
1998*** $10.05 $ 0.27 $ 0.13
1998 9.90 0.55 0.16
1997 9.86 0.53 0.07
1996 9.98 0.54 (0.10)
1995 9.79 0.53 0.19
1994 10.01 0.42 (0.21)
Investor Shares
1998*** $10.07 $ 0.26 $ 0.13
1998 9.91 0.53 0.17
1997 9.88 0.51 0.06
1996 10.01 0.52 (0.10)
1995 9.81 0.51 0.19
1994 10.03 0.40 (0.21)
Flex Shares
1998*** $10.07 $ 0.24 $ 0.13
1998 9.91 0.50 0.17
1997 9.88 0.48 0.06
1996(1) 10.02 0.47 (0.12)
Short-Term U.S. Treasury Securities Fund
Trust Shares
1998*** $ 9.97 $ 0.25 $ 0.10
1998 9.88 0.51 0.10
1997 9.84 0.51 0.04
1996 9.93 0.55 (0.09)
1995 9.82 0.47 0.11
1994 9.98 0.33 (0.11)
Investor Shares
1998*** $ 9.96 $ 0.24 $ 0.11
1998 9.88 0.49 0.09
1997 9.84 0.50 0.04
1996 9.94 0.54 (0.10)
1995 9.83 0.46 0.11
1994 9.99 0.32 (0.12)
Flex Shares
1998*** $ 9.94 $ 0.23 $ 0.10
1998 9.85 0.47 0.10
1997 9.82 0.47 0.03
1996(2) 9.96 0.48 (0.14)
U.S. Government Securities Fund
Trust Shares
1998*** $10.46 $ 0.30 $ 0.17
1998 10.02 0.61 0.44
1997 9.91 0.62 0.11
1996 10.27 0.62 (0.33)
1995(3) 9.98 0.53 0.29
Investor Shares
1998*** $10.45 $ 0.27 $ 0.18
1998 10.02 0.57 0.43
1997 9.90 0.58 0.12
1996 10.26 0.59 (0.33)
1995(4) 10.00 0.56 0.26
Flex Shares
1998*** $10.46 $ 0.25 $ 0.17
1998 10.02 0.52 0.44
1997 9.91 0.53 0.11
1996(5) 10.31 0.52 (0.37)
<CAPTION>
Distributions from Distributions from
Net Investment Income Realized Capital Gains
--------------------- ----------------------
<S> <C> <C>
Short-Term Bond Fund
Trust Shares
1998*** $(0.27) $--
1998 (0.55) (0.01)
1997 (0.53) (0.03)
1996 (0.54) (0.02)
1995 (0.53) --
1994 (0.42) (0.01)
Investor Shares
1998*** $(0.26) $--
1998 (0.53) (0.01)
1997 (0.51) (0.03)
1996 (0.53) (0.02)
1995 (0.50) --
1994 (0.40) (0.01)
Flex Shares
1998*** $(0.24) $--
1998 (0.50) (0.01)
1997 (0.48) (0.03)
1996(1) (0.47) (0.02)
Short-Term U.S. Treasury Securities Fund
Trust Shares
1998*** $(0.25) $--
1998 (0.52) --
1997 (0.51) --
1996 (0.55) --
1995 (0.47) --
1994 (0.33) (0.05)
Investor Shares
1998*** $(0.24) $--
1998 (0.50) --
1997 (0.50) --
1996 (0.54) --
1995 (0.46) --
1994 (0.31) (0.05)
Flex Shares
1998*** $(0.23) $--
1998 (0.48) --
1997 (0.47) --
1996(2) (0.48) --
U.S. Government Securities Fund
Trust Shares
1998*** $(0.30) $--
1998 (0.61) --
1997 (0.62) --
1996 (0.62) (0.03)
1995(3) (0.53) --
Investor Shares
1998*** $(0.27) $--
1998 (0.57) --
1997 (0.58) --
1996 (0.59) (0.03)
1995(4) (0.56) --
Flex Shares
1998*** $(0.25) $--
1998 (0.52) --
1997 (0.53) --
1996(5) (0.52) (0.03)
</TABLE>
* Annualized.
** Return is for the period indicated and has not been annualized.
*** For the semi-annual period ended November 30, 1998. Return is for the period
indicated and has not been annualized.
(1) Commenced operations on June 20, 1995.
(2) Commenced operations on June 22, 1995.
The accompanying notes are an integral part of the financial statements.
82
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Net Assets Ratio of
Value End Total End of Expenses to
of Period Return (A) Period (000) Average Net Assets
---------- ---------- ------------ ------------------
<S> <C> <C> <C> <C>
Short-Term Bond Fund
Trust Shares
1998*** $10.18 3.97% $131,851 0.67%
1998 10.05 7.31% 120,422 0.66%
1997 9.90 6.30% 89,701 0.65%
1996 9.86 4.45% 91,156 0.65%
1995 9.98 7.60% 60,952 0.65%
1994 9.79 2.02% 34,772 0.65%
Investor Shares
1998*** $10.20 3.86% $ 1,835 0.87%
1998 10.07 7.19% 1,949 0.86%
1997 9.91 5.97% 2,182 0.85%
1996 9.88 4.23% 2,700 0.85%
1995 10.01 7.44% 2,609 0.85%
1994 9.81 1.81% 2,381 0.85%
Flex Shares
1998*** $10.20 3.69% $ 1,933 1.22%
1998 10.07 6.84% 2,110 1.21%
1997 9.91 5.62% 1,073 1.20%
1996(1) 9.88 3.73%* 966 1.20%*
Short-Term U.S. Treasury Securities Fund
Trust Shares
1998*** $10.07 3.53% $ 47,120 0.67%
1998 9.97 6.30% 46,920 0.66%
1997 9.88 5.76% 21,988 0.65%
1996 9.84 4.73% 10,149 0.65%
1995 9.93 6.11% 9,599 0.65%
1994 9.82 2.17% 12,723 0.65%
Investor Shares
1998*** $10.07 3.56% $ 3,027 0.82%
1998 9.96 6.04% 3,277 0.81%
1997 9.88 5.59% 3,921 0.80%
1996 9.84 4.52% 4,192 0.80%
1995 9.94 6.03% 7,144 0.80%
1994 9.83 2.01% 4,841 0.78%
Flex Shares
1998*** $10.04 3.33% $ 2,291 1.07%
1998 9.94 5.90% 1,413 1.06%
1997 9.85 5.19% 1,091 1.05%
1996(2) 9.82 3.72%* 2,423 1.05%*
U.S. Government Securities Fund
Trust Shares
1998*** $10.63 4.39% $ 41,160 0.77%
1998 10.46 10.76% 34,899 0.76%
1997 10.02 7.54% 19,471 0.75%
1996 9.91 2.77% 10,277 0.75%
1995(3) 10.27 8.64%** 3,291 0.75%*
Investor Shares
1998*** $10.63 4.04% $ 3,058 1.17%
1998 10.45 10.23% 3,225 1.16%
1997 10.02 7.21% 2,243 1.15%
1996 9.90 2.47% 2,396 1.15%
1995(4) 10.26 8.61%** 589 1.15%*
Flex Shares
1998*** $10.63 4.51% $ 4,596 1.68%
1998 10.46 9.78% 4,022 1.67%
1997 10.02 6.57% 2,801 1.66%
1996(5) 9.91 1.42%* 2,826 1.66%*
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses to Income (Loss) to
Net Investment Average Net Assets Average Net Assets Portfolio
Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover
Average Net Assets and Reimbursements) and Reimbursements) Rate
------------------ ------------------- ------------------- ---------
<S> <C> <C> <C> <C>
Short-Term Bond Fund
Trust Shares
1998*** 5.22% 0.78% 5.11% 32%
1998 5.47% 0.79% 5.34% 87%
1997 5.37% 0.78% 5.24% 118%
1996 5.39% 0.81% 5.23% 163%
1995 5.49% 0.85% 5.29% 200%
1994 4.15% 0.85% 3.95% 75%
Investor Shares
1998*** 5.02% 1.53% 4.36% 32%
1998 5.27% 1.71% 4.42% 87%
1997 5.16% 1.58% 4.43% 118%
1996 5.20% 1.72% 4.33% 163%
1995 5.24% 1.56% 4.53% 200%
1994 3.94% 2.52% 2.27% 75%
Flex Shares
1998*** 4.67% 2.44% 3.45% 32%
1998 4.93% 2.85% 3.29% 87%
1997 4.82% 3.02% 3.00% 118%
1996(1) 4.77%* 4.06%* 1.91%* 163%
Short-Term U.S. Treasury Securities Fund
Trust Shares
1998*** 4.94% 0.77% 4.84% 23%
1998 5.19% 0.84% 5.01% 39%
1997 5.23% 0.92% 4.96% 93%
1996 5.56% 1.00% 5.21% 94%
1995 4.91% 1.08% 4.48% 88%
1994 3.23% 0.81% 3.07% 117%
Investor Shares
1998*** 4.79% 1.29% 4.32% 23%
1998 5.07% 1.33% 4.55% 39%
1997 5.05% 1.35% 4.50% 93%
1996 5.43% 1.32% 4.91% 94%
1995 4.74% 1.33% 4.21% 88%
1994 3.11% 1.41% 2.48% 117%
Flex Shares
1998*** 4.53% 2.54% 3.06% 23%
1998 4.81% 2.87% 3.00% 39%
1997 4.75% 2.51% 3.29% 93%
1996(2) 5.03%* 2.97%* 3.11%* 94%
U.S. Government Securities Fund
Trust Shares
1998*** 5.60% 0.87% 5.50% 6%
1998 5.93% 0.92% 5.77% 14%
1997 6.19% 1.02% 5.92% 21%
1996 6.05% 1.25% 5.55% 83%
1995(3) 6.67%* 3.33%* 4.09%* 30%
Investor Shares
1998*** 5.20% 1.57% 4.80% 6%
1998 5.53% 1.76% 4.93% 14%
1997 5.76% 1.79% 5.12% 21%
1996 5.68% 2.50% 4.33% 83%
1995(4) 6.08%* 6.84%* 0.39%* 30%
Flex Shares
1998*** 4.69% 2.18% 4.19% 6%
1998 5.02% 2.32% 4.37% 14%
1997 5.26% 2.42% 4.50% 21%
1996(5) 5.18%* 2.86%* 3.98%* 83%
</TABLE>
(3) Commenced operations on July 31, 1994.
(4) Commenced operations on June 9, 1994.
(5) Commenced operations on June 7, 1995.
(A) Total return figures do not reflect applicable sales loads.
The accompanying notes are an integral part of the financial statements.
83
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
1. Organization:
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with twenty-three portfolios as of November 30,
1998: the Balanced Fund, the Capital Growth Fund, the Emerging Markets Equity
Fund, the International Equity Fund, the International Equity Index Fund, the
Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small Cap Growth Stock Fund,
the Sunbelt Equity Fund, the Value Income Stock Fund, the Florida Tax-Exempt
Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade Bond Fund, the
Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage
Securities Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury
Securities Fund, and the U.S. Government Securities Fund, (collectively the
"Non-Dollar Funds"), the Prime Quality Money Market Fund, the U.S. Government
Securities Money Market Fund, the Tax-Exempt Money Market Fund, the Classic
Institutional Cash Management Money Market Fund and the Classic Institutional
U.S. Treasury Securities Money Market Fund, (collectively the "Money Market
Funds"). The assets of each portfolio are segregated, and a shareholder's
interest is limited to the fund in which shares are held. Each fund's prospectus
provides a description of the fund's investment objectives, policies and
strategies. The financial statements of the Money Market Funds are not presented
herein, but are presented separately.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust.
Security Valuation -- Investment securities held by the Non-Dollar Funds
that are listed on a securities exchange for which market quotations are
available are valued at the last quoted sales price each business day. If
there is no such reported sale, these securities and unlisted securities
for which market quotations are readily available are valued at the most
recently quoted bid price. Foreign securities in the Emerging Markets
Equity Fund, the International Equity Fund and the International Equity
Index Fund are valued based upon quotations from the primary market in
which they are traded. Debt obligations with sixty days or less remaining
until maturity may be valued at their amortized cost.
Federal Income Taxes -- It is each fund's intention to qualify as a
regulated investment company for Federal income tax purposes and distribute
all of its taxable income and net capital gains. Accordingly, no provisions
for Federal income taxes are required.
Security Transactions and Investment Income -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date and 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 Non-Dollar Funds
are accreted and amortized to maturity using the scientific interest
method, which approximates the effective interest method.
Repurchase Agreements -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in the event of default of the counterparty. If the 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.
84
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Net Asset Value Per Share -- The net asset value per share of each fund is
calculated each business day, by dividing the total value of each fund's
assets, less liabilities, by the number of shares outstanding. The maximum
offering price per share for Investor shares of the Balanced, the Capital
Growth, the International Equity, the International Equity Index, the
Mid-Cap Equity, the Sunbelt Equity, the Value Income Stock, the Florida
Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Investment Grade Bond,
the Investment Grade Tax-Exempt Bond and the U.S. Government Securities
Funds is equal to the net asset value per share plus a sales load of 3.75%.
The maximum offering price per share for Investor shares of the Short-Term
U.S. Treasury Securities Fund is equal to the net asset value per share
plus a sales load of 1.00%. The maximum offering price per share for
Investor shares of the Short-Term Bond Fund is equal to the net asset value
per share plus a sales load of 2.00%. The maximum offering price per share
for Investor shares of the Limited-Term Federal Mortgage Securities Fund is
equal to the net asset value per share plus a sales load of 2.50%.
Flex Shares of the funds may be purchased at their net asset value. Shares
redeemed within the first year after purchase will be subject to a
contingent deferred sales charge ("CDSC") equal to 2.00% of the net asset
value of the shares at the time of redemption. The CDSC will not apply to
shares redeemed after such time.
Foreign Currency Translation -- The books and records of the Emerging
Markets Equity, the International Equity and the International Equity Index
Funds are maintained in U.S. dollars on the following basis:
(I) market value of investment securities, assets and liabilities at
the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Emerging Markets Equity, the International Equity and the International
Equity Index Funds do not isolate that 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 changes in market prices of equity
securities.
The Emerging Markets Equity, the International Equity and the International
Equity Index Funds report certain foreign currency related transactions as
components of realized and unrealized gains and losses for financial
reporting purposes, whereas such components are treated as ordinary income
for Federal income tax purposes.
TBA Purchase Commitments -- The Fixed Income Portfolios may enter into
"TBA" (To Be Announced) purchase commitments to purchase securities for a
fixed price at a future date beyond customary settlement time. TBA purchase
commitments may be considered securities in themselves, and involve a risk
of loss if the value of the security to be purchased declines prior to
settlement date, which risk is in addition to the risk of decline in the
value of the funds' other assets. Unsettled TBA purchase commitments are
valued at the current market value of the underlying securities, generally
according to the procedures described under "Security Valuation."
85
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS November 30, 1998
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 the Florida Tax-Exempt Bond, the
Georgia Tax-Exempt Bond, the Investment Grade Bond, the Investment Grade
Tax-Exempt Bond, the Limited-Term Federal Mortgage Securities the Short-Term
Bond, the Short-Term U.S. Treasury Securities and the U.S. Government Securities
Funds are declared each business day and paid to shareholders on a monthly
basis. Distributions from net investment income are declared and paid each
calendar quarter by the Balanced, the Capital Growth, the Mid-Cap Equity, the
Small Cap Equity, the Small Cap Growth Stock, the Sunbelt Equity, and the Value
Income Stock Funds. Distributions from net investment income are declared and
paid annually by the Emerging Markets Equity, the International Equity and the
International Equity Index Funds. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that effect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and reported amounts
of revenues and expenses during the reporting period. Actual amounts could
differ from these estimates.
3. Organization Costs and Transactions with Affiliates:
The Trust incurred organization costs of approximately $808,836 including
approximately $395,594 relating to state registration fees. 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 with the
exception of state registration fees, which are being amortized over a period of
twelve months. The costs include legal fees of approximately $60,383 for
organizational work performed by a law firm of which two officers of the Trust
are partners. On March 18, 1992, the Trust sold initial shares of beneficial
interest to SEI Investments Mutual Fund Services (the "Administrator"). 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 will be reduced by the
unamortized organizational costs 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.
In April 1998, the AICPA issued Statement of Position (SOP) No. 98-5, "Reporting
on the Costs of Start-Up Activities." This SOP provides guidance on the
financial reporting of start-up costs and organization costs and requires costs
of start-up activities and organization costs to be expensed as incurred.
Investment companies that began operations prior to June 30, 1998 can adopt the
SOP prospectively. Therefore, previously capitalized organization costs will
continue to be amortized as discussed above. Any future start-up or organization
costs will be expensed as incurred.
Certain officers of the Trust are also officers of the Administrator and/or SEI
Investments Distribution Co. (the "Distributor"). Such officers are paid no fees
by the Trust for serving as officers of the Trust.
86
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
4. Administration, Transfer Agency Servicing and Distribution Agreements:
The Trust and the Administrator are parties to an Administration Agreement dated
May 29, 1995, as amended November 19, 1997 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.
The Trust and Federated Services Company are parties to a Transfer Agency
servicing agreement dated May 14, 1994 under which Federated Services Company
provides transfer agency services to the Trust.
The Trust and the Distributor are parties to a Distribution Agreement dated May
29, 1995 regarding the Flex Shares and a Distribution Agreement dated November
21, 1995 with respect to the Trust and Investor shares. The Distributor will
receive no fees for its distribution services under this agreement for the Trust
Shares of any fund. With respect to the Investor Shares and Flex Shares, the
Distributor receives amounts, pursuant to a Distribution Plan and (in the case
of Flex Shares) a Distribution and Service Plan, as outlined in the table in
footnote 5 under the column titled "Distribution Fee".
5. Investment Advisory and Custodian Agreements:
The Trust and STI Capital Management, N.A., ("STI Capital Management, N.A."),
Trusco Capital Management ("Trusco") and the SunTrust Bank, Atlanta have entered
into advisory agreements dated May 29, 1992, June 15, 1993, and December 20,
1993 respectively.
Under terms of the respective agreements, the Funds are charged the following
annual fees based upon average daily net assets:
Maximum
Flex
Share
Maximum Distri-
Maximum Trust Investor Investor bution Flex
Annual Share Share Share and Share
Advisory Maximum Distri- Maximum Service Maximum
Fee Expense bution Fee Expense Fee Expense
-------- ------- ---------- -------- -------- -------
Trusco:
International
Equity Index
Fund*.............. .90% 1.07% .38% 1.47% 1.00% 2.12%
Small Cap Growth
Stock Fund......... 1.15% 1.20% -- -- 1.00% 2.25%
Sunbelt Equity
Fund............... 1.15% 1.17% .43% 1.62% 1.00% 2.22%
Short-Term Bond
Fund............... .65% .67% .23% .87% 1.00% 1.22%
Short-Term U.S.
Treasury
Securities
Fund............... .65% .67% .18% .82% 1.00% 1.07%
U.S. Government
Securities
Fund............... .74% .77% .38% 1.17% 1.00% 1.68%
Maximum
Flex
Share
Maximum Distri-
Maximum Trust Investor Investor bution Flex
Annual Share Share Share and Share
Advisory Maximum Distri- Maximum Service Maximum
Fee Expense bution Fee Expense Fee Expense
-------- ------- ---------- -------- -------- -------
STI Capital Management, N.A.:
Balanced Fund....... .95% .97% .28% 1.27% 1.00% 2.03%
Capital Growth
Fund............... 1.15% 1.17% .68% 1.82% 1.00% 2.29%
Emerging Markets
Equity Fund........ 1.30% 1.57% -- -- -- --
International
Equity Fund........ 1.25% 1.48% .33% 1.83% 1.00% 2.53%
Mid-Cap Equity
Fund............... 1.15% 1.17% .43% 1.62% 1.00% 2.22%
Small Cap
Equity Fund........ 1.15% 1.22% -- -- 1.00% 2.27%
Value Income
Stock Fund......... .80% .97% .33% 1.32% 1.00% 2.02%
Florida
Tax-Exempt
Bond Fund.......... .65% .67% .18% .87% 1.00% 1.37%
Investment
Grade Bond
Fund............... .74% .77% .43% 1.17% 1.00% 1.66%
Investment
Grade
Tax-Exempt
Bond Fund.......... .74% .77% .43% 1.17% 1.00% 1.65%
Limited-Term
Federal Mortgage
Securities
Fund............... .65% .67% .23% .92% 1.00% 1.27%
SunTrust Bank, Atlanta:
Georgia
Tax-Exempt
Bond Fund.......... .65% .67% .18% .87% 1.00% 1.37%
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*Trusco and STI Capital Management, N.A. serve as joint advisors to the
International Equity Index Fund.
87
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NOTES TO FINANCIAL STATEMENTS (continued)
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STI CLASSIC FUNDS November 30, 1998
The investment advisors, the Administrator and the Distributor have voluntarily
agreed to waive all or a portion of their fees (and to reimburse funds'
expenses) in order to limit operating expenses to an amount as outlined in the
table above. Fee waivers and expense reimbursements are voluntary and may be
terminated at any time.
SunTrust Bank, Atlanta, formerly Trust Company Bank, acts as custodian for all
the funds except the Emerging Markets Equity, the International Equity and the
International Equity Index Funds who utilize the Bank of New York as custodian.
Fees of the Custodians are paid on the basis of the net assets of the funds. The
Custodians play no role in determining the investment policies of the Trust or
which securities are to be purchased or sold in the funds.
6. Investment Transactions:
The cost of purchases and the proceeds from sales
of securities, excluding short-term investments and U.S. Government Securities,
for the period ended November 30, 1998, were as follows:
Purchases Sales
(000) (000)
--------- ---------
Balanced Fund............................... $ 33,948 $ 28,942
Capital Growth Fund......................... 1,382,318 1,325,549
Emerging Markets Equity Fund................ 7,864 10,401
International Equity Fund................... 362,886 372,144
International Equity Index Fund............. 13,646 17,703
Mid-Cap Equity Fund......................... 106,979 124,797
Small Cap Equity Fund....................... 94,263 90,494
Small Cap Growth Stock Fund................. 11,941 1,015
Sunbelt Equity Fund......................... 177,955 204,016
Value Income Stock Fund..................... -- --
Florida Tax-Exempt Bond Fund................ 56,713 45,162
Georgia Tax-Exempt Bond Fund................ 14,231 2,565
Investment Grade Bond Fund.................. 235,851 274,021
Investment Grade Tax-Exempt Bond Fund....... 176,535 177,392
Limited-Term Federal Mortgage Securities
Fund...................................... -- --
Short-Term Bond Fund........................ 18,351 17,404
Short-Term U.S. Treasury Securities Fund.... -- --
U.S. Government Securities Fund............. -- --
The cost of purchases and proceeds from sales of U.S. Government Securities
were:
Purchases Sales
(000) (000)
--------- ---------
Balanced Fund................................ $ 66,780 $ 61,656
Capital Growth Fund.......................... -- --
Mid-Cap Equity Fund.......................... -- --
Small Cap Equity Fund........................ -- --
Small Cap Growth Stock Fund.................. -- --
Sunbelt Equity............................... -- --
Value Income Stock Fund...................... -- --
Florida Tax-Exempt Bond Fund................. -- --
Georgia Tax-Exempt Bond Fund................. -- --
Investment Grade Bond Fund................... 640,812 582,976
Investment Grade Tax-Exempt Bond Fund........ -- --
Limited-Term Federal Mortgage Securities
Fund....................................... 280,071 277,542
Short-Term Bond Fund......................... 18,842 18,364
Short-Term U.S. Treasury Securities Fund..... 11,212 11,363
U.S. Government Securities Fund.............. 10,576 2,744
At November 30, 1998, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the funds
at November 30, 1998, were as follows:
Aggregate Aggregate Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation/
Appreciation Depreciation Depreciation
------------ ------------- -------------
Balanced Fund..................... $ 36,474 $ (4,130) $ 32,344
Capital Growth Fund............... 459,009 (56,112) 402,897
Emerging Markets Equity Fund...... 2,141 (10,393) (8,252)
International Equity Fund......... 75,564 (32,754) 42,810
International Equity Index Fund... 18,416 (6,484) 11,932
Mid-Cap Equity Fund............... 61,982 (35,811) 26,171
Small Cap Equity Fund............. 23,247 (61,029) (37,782)
Small Cap Growth Stock Fund....... 1,527 (167) 1,360
Sunbelt Equity Fund............... 65,085 (29,598) 35,487
Value Income Stock Fund........... 217,082 (121,241) 95,841
Florida Tax-Exempt Bond Fund...... 4,283 (34) 4,249
Georgia Tax-Exempt Bond Fund...... 3,425 (19) 3,406
Investment Grade Bond Fund........ 30,803 (1,237) 29,566
Investment Grade Tax-Exempt
Bond Fund...................... 3,813 (19) 3,794
Limited-Term Federal Mortgage
Securities Fund................ 1,296 (142) 1,154
Short-Term Bond Fund.............. 2,342 (90) 2,252
Short-Term U.S. Treasury
Securities Fund................ 602 -- 602
U.S. Government Securities Fund... 1,743 (39) 1,704
88
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Unaudited
7. Concentration of Credit Risk:
The Balanced Fund, the Investment Grade Bond Fund and the Short-Term Bond Fund
invest primarily in investment grade obligations rated at least BBB or better by
S&P or Baa or better by Moody's or, if not rated, are determined by the
investment advisor to be of comparable quality. The Investment Grade Tax-Exempt
Fund invests primarily in investment grade municipal securities. Municipal
securities must be rated BBB or better by S&P or Baa or better by Moody's in the
case of bonds; SP-1, SP-2 or MIG-1, MIG-2 in the case of notes; A-1, A-2 or P-1,
P-2 in the case of commercial paper; and VMIG-1, VMIG-2 in the case of variable
rate demand obligations. The Short-Term U.S. Treasury Securities Fund invests
exclusively in obligations issued by the U.S. Treasury with a maximum remaining
maturity of 3 years or less. The Florida Tax-Exempt Bond Fund and the Georgia
Tax-Exempt Bond Fund, invest primarily in municipal bonds concentrated in each
of their respective states. Municipal securities must be rated BBB or better by
S&P or Baa or better by Moody's in the case of bonds; A-1, A-2 or P-1, P-2 in
the case of tax-exempt commercial paper; and VMIG-1, VMIG-2 in the case of
variable rate demand obligations. The U.S. Government Securities Fund invests
primarily in obligations issued or guaranteed by the U.S. Government or its
agencies or instrumentalities, including mortgage backed securities. The
Limited-Term Federal Mortgage Securities Fund invests in mortgage related
securities issued or guaranteed by U.S. Government agencies. Up to 35% of the
U.S. Government Securities Fund and the Limited-Term Federal Mortgage Securities
Fund may be invested in corporate, or government bonds that carry a rating of
BBB or better by S&P or Baa or better by Moody's. The ability of the issuers of
the securities held by the funds to meet their obligations may be affected by
economic developments in a specific industry, state or region, or by changing
business conditions.
8. Subsequent Event:
On July 20, 1998 it was announced that Crestar Financial Corporation
("Crestar"), the parent of Crestar Bank, and SunTrust Banks, Inc. ("SunTrust")
had signed a definitive agreement for the acquisition of Crestar by SunTrust.
The acquisition of Crestar by SunTrust was completed on December 31, 1998. It is
currently the intention of Crestar and SunTrust to file an exemptive application
with the Securities and Exchange Commission to permit the combination of certain
of the CrestFunds with certain of the STI Classic Funds (mutual funds that are
served by investment advisers that are subsidiaries of SunTrust). Any
combination of CrestFunds and STI Classic Funds would require the approval of
the board of directors and the shareholders of the CrestFunds.
89
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NOTES
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NOTES
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NOTES
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