<PAGE>
ANNUAL
...............................................................................
FINANCIAL REPORT
...............................................................................
STI CLASSIC EQUITY FUNDS
...............................................................................
A Family of Mutual Funds
...............................................................................
May 31, 1999
[logo]
<PAGE>
Dear Valued STI Classic Trust Shareholder:
As of May 31, 1999 your STI Classic Funds reached a new milestone with assets
totaling $19.96 billion. This dramatic increase is a direct result of two major
factors over the past year. First, growth within the existing STI Funds exceeded
20%. Secondly, as of May 24, 1999, the CrestFunds, which were proprietary mutual
funds of Crestar Financial Corporation, and two of the Arbor Funds, which were
advised by Crestar Asset Management Co., merged into the STI Classic Funds. The
Funds' merger followed the corporate merger between SunTrust Banks, Inc. and
Crestar Financial Corporation on December 31, 1998.
Your new STI Classic Funds family now consists of 34 stock, bond, and money
market funds and currently ranks among the 15 largest bank proprietary fund
complexes. Additionally, as a result of the merger, shareholders have a broader
and more diversified variety of funds from which to choose.
The U.S. economic expansion is now approaching nine years in duration while
inflation continues to be quite low. As a result, stock market returns have been
excellent. However, long-term interest rates recently rebounded to over 6% in
yield and the Federal Reserve Board increased short-term interest by one quarter
of one percent. These rate increases are due to fears that the accelerated
economic growth of late 1998 and early 1999 will lead to higher inflation. We
believe that the recent increase in interest rates will lead to slower, more
sustainable economic growth and inflation will continue to be modest.
As always, your STI Classic Funds continue to be managed with a disciplined,
quality oriented approach. Accordingly, we believe you, our valued shareholders,
are well positioned for the current and future investment environment.
On behalf of all of the advisors to the Funds, thank you for your confidence and
the opportunity to help you achieve your investment objectives.
Sincerely,
/s/ Signature omitted
-----------------------------------
Anthony R. Gray
Chairman, Chief Investment Officer
STI Capital Management, N.A.
/s/ Signature omitted
-----------------------------------
Douglas S. Phillips, CFA
President, Chief Investment Officer
Trusco Capital Management, Inc.
<PAGE>
STI Classic Balanced Fund
-------------------------
The STI Classic Balanced Fund ("the Fund") seeks capital appreciation and
current income through investments in a diversified portfolio of common stocks,
bonds and money market securities.
The Fund uses a bottom-up selection process to find stocks of high quality
companies with a history of earnings growth. Bonds are selected by attempting to
exploit undervalued bond sectors and areas along the yield curve. No more than
70% of the total assets of the Fund are invested in stocks and no more than 60%
are invested in bonds. At least 20% of the Fund's total assets will be in senior
fixed income securities. The Fund's return from June 1998 to May 1999 was 10.98%
(Trust Shares). The Fund's index, 50% S&P 500 Composite Index and 50% Lehman
Government Corporate Bond Index, which has no fees taken out, had a return of
12.54%.
The last 12 months was another year of strong price increases for the U.S. stock
market. Fears of a weak domestic economy and a collapse of Latin American
economies drove the market down in July, August, September and October. These
fears proved to be unfounded and the market had a ferocious rally off its
October lows. This rally was fueled by large growth stocks (primarily technology
and the internet).
The market had a major shift in April as the "have-nots", i.e. cyclical and
smaller cap stocks, exploded.
We have used the corrections to buy strong growth companies at reasonable
prices. Major purchases by industries include healthcare, technology and
communication services. Major sales were in consumer staples.
Our outlook for the next year is for a strong domestic economy and an improving
worldwide economy. We think higher interest rates will put a damper on the
overall market.
Over the past year we have had relatively volatile fixed income markets.
Long-term treasury yields declined to 4.75% in the second half of 1998 as market
turmoil led to a stampede into the Treasury market by investors looking for
safety and liquidity. Our long treasury positions aided performance during this
period. Corporate and mortgage positions lagged dramatically.
As we moved into 1999, the process reversed as mortgages and corporates
performed well and interest rates approached 6% at the end of the period. During
this period, we reduced our duration (average maturity) which contributed to the
total return of the Fund. We also reduced our mortgage positions, which were
relatively defensive in nature as interest rates increased. We also extended the
Fund's duration (average maturity) as interest rates increased to more
attractive levels.
We expect economic growth to slow some from the recent steamy pace but to remain
relatively firm and we will therefore continue to overweight the corporate
sector, which currently represents good value.
/s/ Signature omitted
-----------------------------------
Anthony R. Gray
Chairman, Chief Investment Officer
/s/ Signature omitted
-----------------------------------
L. Earl Denney, CFA
Managing Director
2
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
[STI Classic Balanced Fund Trust Shares Line Graphic Omitted]
- -------------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
10.98% 16.51% 15.05% 13.46% 98.01%
- -------------------------------------------------------------------------------------------------
</TABLE>
STI Classic Balanced Fund, Trust Shares
S&P 500 Composite Index
Lehman Government/Corporate Bond Index
Lipper Balanced Funds Average
Plot points are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
STI Classic S&P 500 Lehman Government Lipper
Balanced Fund Composite Corporate Bond Balanced Funds
Trust Shares Index Index Average
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/31/94 10,000 10,000 10,000 10,000
5/31/94 9,554 9,579 9,446 9,502
5/31/95 10,387 11,510 10,543 10,662
5/31/96 12,180 14,781 10,975 12,551
5/31/97 14,210 19,126 11,842 14,607
5/31/98 17,357 24,992 13,202 17,441
5/31/99 19,263 30,253 13,738 18,965
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
[STI Classic Balanced Fund Investor Shares Line Graphic Omitted]
- ---------------------------------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
10.70% 16.14% 14.67% 13.05% 94.12% Without Load
6.56% 14.68% 13.80% 12.25% 86.84% With Load
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
STI Classic Balanced Fund, Investor Shares
S&P 500 Composite Index
Lehman Government/Corporate Bond Index
Lipper Balanced Funds Average
Plot points are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
STI Classic S&P 500 Lehman Government Lipper
Balanced Fund Composite Corporate Bond Balanced Funds
Investors Shares Index Index Average
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/31/94 9,625 10,000 10,000 10,000
5/31/94 9,238 9,579 9,446 9,502
5/31/95 10,004 11,510 10,543 10,662
5/31/96 11,693 14,781 10,975 12,551
5/31/97 13,595 19,126 11,842 14,607
5/31/98 16,548 24,992 13,202 17,441
5/31/99 18,319 30,253 13,738 18,965
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
[STI Classic Balanced Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9.84% 15.28% 15.41% 76.22% Without Load
7.84% With Load
- --------------------------------------------------------------------------------------------------
</TABLE>
STI Classic Balanced Fund, Flex Shares
S&P 500 Composite Index
Lehman Government/Corporate Bond Index
Lipper Balanced Funds Average
Plot points are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
STI Classic S&P 500 Lehman Government Lipper
Balanced Fund Composite Corporate Bond Balanced Funds
Flex Shares Index Index Average
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6/30/95 10,000 10,000 10,000 10,000
5/31/96 11,401 12,549 10,327 11,553
5/31/97 13,157 16,239 11,143 13,445
5/31/98 15,900 21,219 12,422 16,054
5/31/99 17,465 25,686 12,927 17,457
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
3
<PAGE>
STI Classic Capital Appreciation Fund
-------------------------------------
The STI Classic Capital Appreciation Fund (formerly STI Classic Capital Growth
Fund) ("the Fund") seeks capital appreciation by investing primarily in stocks
which, in the advisor's opinion, are undervalued in the marketplace at the time
of purchase.
A security is selected for the Fund when it appears undervalued based on a
number of measures such as relative price divided by earnings and relative price
divided by growth.
The Fund's return from June 1998 to May 1999 was 17.83% (Trust Shares). The Fund
underperformed its index, the S&P 500 Composite Index, by 3.22%.
The last 12 months was another year of strong price increases for the U.S. stock
market. Fears of a weak domestic economy and a collapse of Latin American
economies drove the market down in the July, August, September and October.
These fears proved to be unfounded and the market had a ferocious rally off its
October lows. This rally was fueled by large growth stocks (primarily technology
and the internet).
The market had a major shift in April as the "have-nots", i.e. cyclical and
smaller cap stocks exploded.
We have used the corrections to buy strong growth companies at reasonable
prices. Major purchases by industries include healthcare, technology and
communication services. Major sales were in consumer staples.
Our outlook for the next year is for a strong domestic economy and an improving
worldwide economy. We think higher interest rates will put a damper on the
overall market.
/s/ Signature omitted
-----------------------------------
Anthony R. Gray
Chairman, Chief Investment Officer
4
<PAGE>
Trust Shares
<TABLE>
<CAPTION>
[STI Classic Capital Appreciation Fund Trust Shares Line Graphic Omitted]
- -------------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
17.83% 23.91% 21.21% 18.10% 216.18%
- -------------------------------------------------------------------------------------------------
</TABLE>
STI Classic Capital Appreciation Fund, Trust Shares
S&P 500 Composite Index
Lipper Growth Fund Average
Plot points are as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
STI Classic S&P 500 Lipper
Capital Appreciation Fund Composite Growth Funds
Trust Shares Index Average
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
7/31/92 10,000 10,000 10,000
5/31/93 11,203 10,885 11,199
5/31/94 11,638 11,345 11,795
5/31/95 12,409 13,631 13,426
5/31/96 16,004 17,505 17,377
5/31/97 19,951 22,652 20,646
5/31/98 25,938 29,599 26,053
5/31/99 30,445 35,830 30,276
- -------------------------------------------------------------------------------------
</TABLE>
Investor Shares
<TABLE>
<CAPTION>
[STI Classic Capital Appreciation Fund Investor Shares Line Graphic Omitted]
- ---------------------------------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
17.20% 23.12% 20.44% 17.81% 213.81% Without Load
12.80% 21.57% 19.52% 17.16% 202.03% With Load
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
STI Classic Appreciation Fund, Investor Shares
S&P 500 Composite Index
Lipper Growth Fund Average
Plot points are as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
STI Classic S&P 500 Lipper
Capital Appreciation Fund Composite Growth Funds
Investor Shares Index Average
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
6/30/92 9,625 10,000 10,000
5/31/93 11,206 11,329 11,595
5/31/94 11,572 11,808 12,212
5/31/95 12,258 14,187 13,901
5/31/96 15,712 18,219 17,992
5/31/97 19,442 23,576 21,377
5/31/98 25,024 30,807 26,975
5/31/99 29,328 37,292 31,348
- -------------------------------------------------------------------------------------
</TABLE>
Flex Shares
<TABLE>
<CAPTION>
[STI Classic Capital Appreciation Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
16.50% 22.53% 23.82% 134.49% Without Load
14.51% With Load
- --------------------------------------------------------------------------------------------------
</TABLE>
STI Classic Capital Appreciation Fund, Flex Shares
S&P 500 Composite Index
Lipper Growth Fund Average
Plot points are as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
STI Classic S&P 500 Lipper
Capital Appreciation Fund Composite Growth Funds
Flex Shares Index Average
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
6/30/95 10,000 10,000 10,000
5/31/96 12,387 12,549 12,437
5/31/97 15,266 16,239 14,777
5/31/98 19,559 21,219 18,647
5/31/99 22,786 25,686 21,669
- -------------------------------------------------------------------------------------
</TABLE>
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
5
<PAGE>
STI Classic Emerging Markets Equity Fund
----------------------------------------
The STI Classic Emerging Markets Equity Fund ("The Fund") invests in equity
securities of foreign issuers located in developing countries and seeks to
provide long-term capital appreciation. We strive to provide investment results
that outperform the emerging markets and the average emerging markets mutual
fund while at the same time limiting risk. Through a bottom-up technique, the
Fund focuses on companies that exhibit top managements, quality products, and
sound financial strength. Our goal is to find companies that fit the above
criteria but are selling at a discount to their global peers.
The Fund's performance for June 1998 to May 1999 was -6.22% while the MSCI
Emerging Markets Free Index returned 4.75%.
Over the past years, the star region has been Asia. After a tumultuous 1997,
Asia regained its economic strength and has witnessed a recovery. GDP growth has
reaccelerated across the region and stimulus packages have been set in place to
assure that growth continues. Banks have begun lending again and consumers have
been revived. This recovery, while anticipated, occurred quicker than we
expected, and has contributed to the Fund's relative under performance.
Brazil and Latin America crashed later in the fiscal year, but proceeded to
rebound even quicker. In February of 1998, Brazil was forced to depeg its
currency from the U.S. dollar. This caused a sharp decline in the Brazilian
currency, the Real. This sent shock waves across all of Latin America, which
quickly found its markets down over 50%. Brazil's government responded with
proper reforms that brought the market back from the brink. This rebound
continues as we enter 1999. As interest rates continue to fall across the
region, further equity gains are expected.
While the markets have been quick to rebound, it will take more strife for these
economies to return to post crisis form. Markets focus on future events, and
while a revival of these economies is priced into the markets, these economies
are not completely out of the woods yet. Governments must continue to push
reform, and banks and investors must continue to provide capital only to those
companies fit to compete in a global economy. We continue to look for such
companies across the developing world.
/s/ Signature omitted
-----------------------------------
Ned Dau
Managing Director
6
<PAGE>
Trust Shares
[STI Classic Emerging Markets Equity Fund Trust Shares Line Graphic Omitted]
- -----------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- -----------------------------------------------------------------------------
- -6.22% -1.71% -6.62% -4.74%
- -----------------------------------------------------------------------------
STI Classic Emerging Markets Equity Fund, Trust Shares
MSCI Emerging Markets Free Index
Plot points are as follows:
- -------------------------------------------------------------------
STI Classic MSCI
Emerging Markets Equity Emerging Markets
Fund Trust Shares Free Index
- -------------------------------------------------------------------
3/31/96 10,000 10,000
5/31/96 10,978 10,353
5/31/97 13,191 11,157
5/31/98 11,115 8,000
5/31/99 10,423 8,278
- -------------------------------------------------------------------
Past performance is no indication of future performance.
*The performance quoted includes past performance of the Common Trust Fund
managed by STI Capital Management, N.A. adjusted for fees and expenses. The
Common Trust Fund was not registered under the 1940 Act and therefore was not
subject to certain investment restrictions which may have adversely affected
performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
7
<PAGE>
STI Classic Growth and Income Fund
----------------------------------
The STI Classic Growth and Income Fund (the "Fund") is the newest equity fund
member of the STI Classic family, as the successor fund to the former CrestFunds
Value Fund. CrestFunds merged into STI on May 24, 1999. The Growth and Income
Fund invests primarily in a diversified mix of domestic and the ADR's of foreign
common stocks of companies with market capitalization of at least $1 billion.
The Fund uses a quantitative screening process to help select stocks of
companies from both the value and growth equity investment styles. The Fund
seeks long term appreciation from large-cap equities while buffering the
volatility of returns.
The past year was turbulent, but gratifying, for the economy and the stock
markets, as policy-makers and investors successfully navigated potential
significant pitfalls. The current economic expansion reached its eighth
anniversary, with continued low inflation, while both the Dow Jones Industrial
Average and the S&P 500 achieved another year of double-digit returns. The Fund
performed well in this changing environment, taking advantage of its positioning
in both select growth and value type issues. The Fund returned 15.58% (Trust
Shares) during the fiscal year ended May 31, 1999.
The beginning of the fiscal year, the second half of 1998, was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Russia and Latin America suffered most from the backlash as investors moved to
higher quality, more liquid financial markets. Diminishing profit expectations
and political scandal here at home only added to investor uncertainty. The S&P
500 fell 10.3% during the third quarter on a price-only basis, though it lost as
much as 19.3% between mid-July and the end of August. Falling commodity prices
across the spectrum hurt stocks in the basic materials and energy sectors, while
rising credit concerns and trading losses pummeled financial stocks. Corporate
profits during this time were increasingly weak, contracting over 3% on a year
over year basis in the third quarter.
The Federal Reserve responded to the crisis last fall by cutting interest rates
three times, and the major indexes completely recovered from the "bear" market
within another six weeks. Stock market sectors that fared well tended to have a
domestic, consumer-oriented focus or were linked to technology and productivity
investment. Healthcare companies and consumer cyclicals represented the former,
while networking, software, and computer-related companies represented the
latter category. Large growth issues performed extremely well while most
value-oriented stocks struggled. The Fund's best performance was realized from
technology holdings such as Cisco Systems, Microsoft, Intel and Sun
Microsystems. Outside of technology, holdings such as Lowe's, Schering-Plough,
Amgen, and CIGNA also contributed strong relative performance.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America. In
addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on
news that world oil producers were acting together to reduce the global energy
glut. S&P 500 operating profits rose by 10% during the first quarter. Big cap,
growth oriented, technology companies, continued to fare well though vigorous
sector rotation persisted. Along with technology, consumer cyclical, energy and
finance shares rose during the first quarter, a harbinger that the
under-performing value stocks were poised for recovery.
In April, fears of future inflation helped investors dramatically reduce their
exposure to the high price/earnings growth stocks in favor of more cyclically
and inflation sensitive value-oriented companies. During the early part of the
year, the Fund reduced its exposure to healthcare and technology while
increasing its exposure to depressed and economically sensitive areas of the
market. The dramatic under performance of the "value" issues offered an
opportunity to increase the portfolio's "tilt" toward value, which had a
significant positive impact on performance in the closing months of the fiscal
year.
The outlook for the U.S. and world economies remains favorable based on current
reports, improving prospects for corporate earnings growth over the near term.
While tight labor markets remain a concern for the inflation-wary Fed,
structural imbalances and excess inventories appear to be lacking. This suggests
that companies may be able to adjust price and production schedules relatively
quickly in response to future changes demand or Fed policy. The STI Classic
Growth and Income Fund will continue to adjust its mix of value and growth
stocks in this evolving environment in order to maximize returns to our
shareholders while limiting volatility.
/s/ Signature
------------------------------------
Jeffrey E. Markunas, CFA
8
<PAGE>
Trust Shares
[STI Classic Growth and Income Fund Trust Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
15.58% 21.38% 20.70% 17.68% 196.58%
- --------------------------------------------------------------------------------
STI Classic Growth and Income Fund, Trust Shares
S&P 500 Index
Plot points are as follows:
- -----------------------------------------------------------
STI Classic S&P
Growth and Income Fund 500
Trust Shares Index
- -----------------------------------------------------------
9/30/92 10,000 10,000
5/31/93 11,363 10,982
5/31/94 11,462 11,446
5/31/95 13,204 13,753
5/31/96 16,420 17,661
5/31/97 20,070 22,854
5/31/98 25,406 29,863
5/31/99 29,364 36,149
- -----------------------------------------------------------
Investor Shares
[STI Classic Growth and Income Fund Investor Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
15.66% 21.38% 20.69% 17.49% 165.93% Without Load
11.30% 19.86% 19.77% 16.75% 155.96% With Load
- --------------------------------------------------------------------------------
STI Classic Growth and Income Fund, Investor Shares
S&P 500 Index
Plot points are as follows:
- -----------------------------------------------------------
STI Classic S&P
Growth and Income Fund 500
Investor Shares Index
- -----------------------------------------------------------
5/31/93 9,625 10,000
5/31/94 9,712 10,423
5/31/95 11,190 12,523
5/31/96 13,909 16,082
5/31/97 17,004 20,811
5/31/98 21,506 27,193
5/31/99 24,889 32,917
- -----------------------------------------------------------
Flex Shares
[STI Classic Growth and Income Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
14.76% 20.51% 21.70% 125.68% Without Load
12.76% With Load
- --------------------------------------------------------------------------------
STI Classic Growth and Income Fund, Flex Shares
S&P 500 Index
Plot points are as follows:
- -----------------------------------------------------------
STI Classic S&P
Growth and Income Fund 500
Flex Shares Index
- -----------------------------------------------------------
4/30/95 10,000 10,000
5/31/96 12,721 13,354
5/31/97 15,440 17,281
5/31/98 19,403 22,581
5/31/99 22,267 27,334
- -----------------------------------------------------------
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
9
<PAGE>
STI Classic International Equity Fund
-------------------------------------
The STI Classic International Equity Fund ("The Fund") invests in equity
securities of foreign issuers and seeks to provide long term capital
appreciation. We strive to obtain investment results that outperform the
international markets and the average international mutual funds. The Fund
focuses on sector and company fundamentals specifically looking for companies
that exhibit top managements, quality products and sound financial positions.
Our goal is to find companies that fit the above criteria but are still selling
at a discount to their global peers.
The Fund's performance for the year June 1998 to May 1999 was -7.43% (Trust
Shares) vs. MSCI EAFE of 4.36%.
Over the past year, many changes have occurred. Eleven western european
countries combined currencies to create one common currency, the Euro, Asia has
rallied off its bottom, and many markets have seen +50% returns. Brazil and
Latin America experienced a collapse, only to quickly rebound after Brazil
depegged its currency from the dollar. Japan has also rebounded off its lows due
to economic stimulus packages and positive news flow, though earnings are still
lagging. Recent concern over increasing growth has caused economic over-heating
concerns across the European community where the Fund maintains its largest
weighting. Many of the cyclical and commodity oriented companies have rallied on
the back of the expectation of strong growth and inflation. While we do have
exposure to these sectors, we do not believe this outperformance will continue.
Financial companies have been the hardest hit as interest rate concerns have
been a heavy burden on bond prices and fears of slower growth have tempered the
performance of insurance companies and banks. This weakness has provided
opportunities as we believe the markets have over-corrected for such fears.
The Fund added some Brazilian and Mexican equities in February including Tele
Norte, a fixed line telephone operator in Brazil and Telefonos de Mexico,
Mexico's dominant phone company. These investments have experienced tremendous
strength since their addition. We continue to monitor Latin America and Asia for
value opportunities.
Concerning the future outlook for international markets, we continue to see
value across Europe and expect to remain overweighted here. Japan has rallied on
hopes, not fundamentals, and we remain underweighted. We have added names in
Japan such as Takefuji, a consumer finance company and FamilyMart, Japan's
second largest convenient store operator. While we see some fundamentals turning
in Japan, the changes are company specific. In our opinion, the macro picture
remains mired in high unemployment, overvalued assets, and zero growth.
/s/ Signature omitted
-----------------------------------
Ned Dau
Managing Director
10
<PAGE>
Trust Shares
[STI Classic International Equity Fund Trust Shares Line Graphic Omitted]
- -------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- -------------------------------------------------------------------
-7.43% 11.62% 14.12% 58.55%
- -------------------------------------------------------------------
STI Classic International Equity Fund, Trust Shares
MSCI EAFE Index, in U.S.$
Plot points are as follows:
- -----------------------------------------------------------
STI Classic MSCI
International Equity Fund Index
Trust Shares in U.S.$
- -----------------------------------------------------------
1/31/95 10,000 10,000
5/31/95 11,637 10,862
5/31/96 15,179 12,021
5/31/97 18,714 12,928
5/31/98 22,807 14,365
5/31/99 21,112 14,991
- -----------------------------------------------------------
Investor Shares
[STI Classic International Equity Fund Investor Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
-7.82% 11.19% 12.62% 49.85% Without Load
- -11.27% 9.79% 11.36% 44.18% With Load
- --------------------------------------------------------------------------------
STI Classic International Equity Fund, Investor Shares
MSCI EAFE Index, in U.S.$
Plot points are as follows:
- -----------------------------------------------------------
STI Classic MSCI
International Equity Fund Index
Investor Shares in U.S.$
- -----------------------------------------------------------
1/31/95 9,625 10,000
5/31/95 11,201 10,862
5/31/96 14,585 12,021
5/31/97 17,918 12,928
5/31/98 21,750 14,365
5/31/99 20,049 14,991
- -----------------------------------------------------------
Flex Shares
[STI Classic International Equity Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
-8.48% 10.40% 11.89% 46.56% Without Load
- -10.19% With Load
- --------------------------------------------------------------------------------
STI Classic International Equity Fund, Flex Shares
MSCI EAFE Index, in U.S.$
Plot points are as follows:
- -----------------------------------------------------------
STI Classic MSCI
International Equity Fund Index
Flex Shares in U.S.$
- -----------------------------------------------------------
1/31/95 10,000 10,000
5/31/95 11,637 10,862
5/31/96 15,139 12,021
5/31/97 18,467 12,928
5/31/98 22,260 14,365
5/31/99 20,372 14,991
- -----------------------------------------------------------
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
11
<PAGE>
STI Classic International Equity Index Fund
-------------------------------------------
For the twelve months ending May 31, 1999 the Classic International Equity Index
Fund (the "Fund") had a total return of 7.87%. This compares with the return of
4.2% for the EAFE-GDP Index, the Fund's benchmark. Investors will recall the
strategy of the Fund is to closely match the EAFE-GDP return via a passive stock
selection. The excess return over the benchmark for the twelve-month period was
not due to a change in fund operating policies. Rather, we found in the severe
global liquidity crisis cause by emerging markets concerns last summer, the Fund
significantly outperformed the benchmark, particularly in August, 1998. This was
because the Fund tends to hold the larger and more liquid stocks within the
index. Because of a flight to quality reaction during the market downturn,
larger stocks did considerably better. Looking at major market returns within
the EAFE, the star performer was Japan, with a return of over 23% in U.S. dollar
terms. The major European markets did not do nearly as well.
Looking forward, here is how we assess the markets in broad-brush format.
Economic trends in Europe are mixed, but interest rate cuts earlier this year
and the decline of the Euro exchange rate should lend support to real GDP growth
over the next year. The Anglo economies (Canada/UK/Australia) are also mixed,
but basically pretty healthy. Finally, Japan has awakened. While Japan's GDP
growth in Q1 was spectacular at 7.9%, it may have been a fluke in that
individual components of demand such as retail sales and capital spending are
still weak. Nonetheless, as we have been saying for awhile, we think the worst
is over in Japan. Other Far East economies also appear to have bottomed.
Beyond the near term, we would like to restate several major investment themes
which will drive international equity stock performance for some time to come.
First, the role of governments in economic activity is gradually declining and
the private sector is gaining. The result is better utilization of resources.
Second, inflation, despite recent small upticks, remains essentially benign on a
global basis. This helps the valuation of financial assets. Third, the U. S. has
been a world leader in restructuring of corporate assets, productivity, and
technological investment. These forces are now being felt in Europe and even in
Japan. We expect restructuring to continue for many years. Fourth, industry
consolidation is now occurring on a global basis, with obvious benefits to
equity holders. Finally, the U. S. market has substantially outperformed major
international equity markets, especially over the last five years, and is highly
valued vs. historical norms. Given these considerations, we continue to
recommend international diversification as a prudent element in overall asset
allocation for U. S. investors.
Respectfully submitted,
/s/ Signature omitted
-----------------------------------
Robert J. Rhodes, CFA
Portfolio Manager
12
<PAGE>
Trust Shares
[STI Classic International Equity Index Fund Trust Shares Line Graphic Omitted]
- -------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- -------------------------------------------------------------------
7.87% 13.41% 10.39% 63.71%
- -------------------------------------------------------------------
STI Classic International Equity Index Fund, Trust Shares
MSCI EAFE-GDP Index Weighted, in U.S.$ (Price Return)
Plot points are as follows:
- ------------------------------------------------------------------------
STI Classic MSCI EAFE-GDP
International Equity Index Index Weighted
Fund Trust Shares in U.S.$ (Price Return)
- ------------------------------------------------------------------------
6/30/94 10,000 10,000
5/31/95 10,331 10,343
5/31/96 11,291 11,256
5/31/97 12,135 12,067
5/31/98 15,269 14,401
5/31/99 16,470 15,010
- ------------------------------------------------------------------------
Investor Shares
[STI Classic International Equity Index Fund Investor Shares Line Graphic
Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
7.33% 12.93% 9.92% 60.24% Without Load
3.34% 11.51% 9.08% 54.23% With Load
- --------------------------------------------------------------------------------
STI Classic International Equity Index Fund, Investor Shares
MSCI EAFE-GDP Index Weighted, in U.S.$ (Price Return)
Plot points are as follows:
- ------------------------------------------------------------------------
STI Classic MSCI EAFE-GDP
International Equity Index Index Weighted
Fund Investor Shares in U.S.$ (Price Return)
- ------------------------------------------------------------------------
6/30/94 9,625 10,000
5/31/95 9,904 10,343
5/31/96 10,786 11,256
5/31/97 11,554 12,067
5/31/98 14,471 14,401
5/31/99 15,532 15,010
- ------------------------------------------------------------------------
Flex Shares
[STI Classic International Equity Index Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
6.68% 12.22% 11.28% 52.83% Without Load
4.90% With Load
- --------------------------------------------------------------------------------
STI Classic International Equity Index Fund, Flex Shares
MSCI EAFE-GDP Index Weighted, in U.S.$ (Price Return)
Plot points are as follows:
- ------------------------------------------------------------------------
STI Classic MSCI EAFE-GDP
International Equity Index Index Weighted
Fund Flex Shares in U.S.$ (Price Return)
- ------------------------------------------------------------------------
6/30/95 10,000 10,000
5/31/96 10,911 11,020
5/31/97 11,610 11,814
5/31/98 14,455 14,099
5/31/99 15,421 14,696
- ------------------------------------------------------------------------
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
13
<PAGE>
STI Classic Life Vision Balanced Portfolio
------------------------------------------
The STI Classic Life Vision Balanced Portfolio (the "Portfolio") is a new member
of the STI Classic family of mutual funds, created on May 24, 1999 through a
merger with the CrestFunds Life Vision Balanced Portfolio. It principally
invests in STI Classic equity mutual funds, but at least 25% of the portfolio
will invest in STI Classic fixed-income portfolios. The Portfolio's remaining
assets may be invested in shares of underlying STI Classic Funds that are money
market funds or other short-term high quality investments.
The past year was turbulent for the economy as well as the stock and bond
markets, as policy-makers and investors successfully navigated potentially
significant pitfalls. The current economic expansion reached its eighth
anniversary, with continued low inflation. The STI Classic Life Vision Balanced
Portfolio returned 6.47% during the fiscal year ended May 31, 1999.
The beginning of the fiscal year, the second half of 1998, was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Diminishing profit expectations and political scandal here at home only added to
investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a
price-only basis, though it lost as much as 19.3% between mid-July and the end
of August. The Federal Reserve responded to the crisis last fall by cutting
interest rates three times, and the major indexes completely recovered from the
"bear" market within another six weeks. Large growth oriented equities performed
extremely well while most value-oriented stocks struggled.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America. In
addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on
news that world oil producers were acting together to reduce the global energy
glut. By April, fears of future inflation helped push interest rates higher, and
investors dramatically reduced their exposure to the high price/earnings growth
stocks in favor of more cyclically and inflation sensitive value-oriented
companies. The STI Classic Life Vision Balanced Portfolio stayed fully invested
to maximize long term returns.
The outlook for the U.S. and world economies remains favorable based on current
reports, improving prospects for corporate earnings growth over the near term.
While tight labor markets remain a concern for the inflation-wary Fed,
structural imbalances and excess inventories appear to be lacking. This suggests
that companies may be able to adjust price and production schedules relatively
quickly in response to future changes in demand or Fed policy. The Portfolio
will continue to adjust its mix of investments in this evolving environment in
order to maximize returns to our shareholders while limiting volatility.
Trusco Capital Management, Inc.
14
<PAGE>
Trust Shares
[STI Classic Life Vision Balanced Portfolio Trust Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return* Return* to Date to Date
- --------------------------------------------------------------------------------
6.47% 11.67% 12.04% 10.59% 21.30%
- --------------------------------------------------------------------------------
STI Classic Life Vision Balanced Portfolio, Trust Shares
STI Classic Life Vision Balanced Portfolio Hybird Benchmark, Trust Shares
S&P 500 Index
Lehman Aggregate Bond Index
Russell 2000 Index
Salomon 3-Month T-Bill
Plot points are as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
STI Classic
STI Classic Life Vision Lehman
Life Vision Balanced Portfolio S&P 500 Aggregate Russell Salomon
Balanced Portfolio Hybrid Benchmark 500 Bond 2000 3-Month
Trust Shares Trust Shares Index Index Index T-Bill
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
12/31/92 10,000 10,000 10,000 10,000 10,000 10,000
5/31/93 10,539 10,487 10,456 10,500 10,588 10,125
5/31/94 10,601 10,892 10,898 10,573 11,511 10,454
5/31/95 11,774 12,462 13,094 11,789 12,697 10,998
5/31/96 13,439 14,928 16,816 12,305 17,255 11,601
5/31/97 15,013 17,353 21,760 13,329 18,458 12,211
5/31/98 17,580 20,927 28,434 14,784 22,378 12,851
5/31/99 18,718 23,041 34,419 15,426 21,776 13,462
- --------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no indication of future performance.
*The performance quoted includes past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses. The asset allocation
program was not registered under the 1940 Act, and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestFunds Life Vision Balanced Portfolio became the
STI Classic Life Vision Balanced Portfolio.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
15
<PAGE>
STI Classic Life Vision Growth and Income Portfolio
---------------------------------------------------
The STI Classic Life Vision Growth and Income Portfolio (the "Portfolio") is a
new member of the STI Classic family of mutual funds, created on May 24, 1999
through a merger with the CrestFunds Life Vision Growth and Income Portfolio. It
invests at least 80% of the Portfolio's assets in STI Classic equity and
fixed-income mutual funds. The Portfolio's remaining assets may be invested in
shares of STI Classic Funds that invest in money market funds or other
short-term high quality investments.
The past year was turbulent for the economy as well as the stock and bond
markets, as policy-makers and investors successfully navigated potentially
significant pitfalls. The current economic expansion reached its eighth
anniversary, with continued low inflation. The STI Classic Life Vision Growth
and Income Portfolio returned 6.64% during the fiscal year ended May 31, 1999.
The beginning of the fiscal year, the second half of 1998, was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Diminishing profit expectations and political scandal here at home only added to
investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a
price-only basis, though it lost as much as 19.3% between mid-July and the end
of August. The Federal Reserve responded to the crisis last fall by cutting
interest rates three times, and the major indexes completely recovered from the
"bear" market within another six weeks. Large growth oriented equities performed
extremely well while most value-oriented stocks struggled.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America. In
addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on
news that world oil producers were acting together to reduce the global energy
glut. By April, fears of future inflation helped push interest rates higher, and
investors dramatically reduced their exposure to the high price/earnings growth
stocks in favor of more cyclically and inflation sensitive value-oriented
companies. The STI Classic Life Vision Growth and Income Portfolio stayed fully
invested to maximize long term returns.
The outlook for the U.S. and world economies remains favorable based on current
reports, improving prospects for corporate earnings growth over the near term.
While tight labor markets remain a concern for the inflation-wary Fed,
structural imbalances and excess inventories appear to be lacking. This suggests
that companies may be able to adjust price and production schedules relatively
quickly in response to future changes in demand or Fed policy. The Portfolio
will continue to adjust its mix of investments in this evolving environment in
order to maximize returns to our shareholders while limiting volatility.
Trusco Capital Management, Inc.
16
<PAGE>
Trust Shares
[STI Classic Life Vision Growth & Income Portfolio Trust Shares Line Graphic
Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return* Return* to Date to Date
- --------------------------------------------------------------------------------
6.64% 12.50% 13.30% 11.07% 22.31%
- --------------------------------------------------------------------------------
STI Classic Life Vision Growth & Income Portfolio, Trust Shares
STI Classic Life Vision Growth & Income Portfolio Hybrid Benchmark, Trust Shares
S&P 500 Index
Lehman Aggregate Bond Index
Russell 2000 Index
Salomon 3-Month T-Bill
Plot points are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STI Classic STI Classic
Life Vision Life Vision Growth Lehman
Growth & Income & Income Portfolio S&P 500 Aggregate Russell Salomon
Portfolio Hybrid Benchmark 500 Bond 2000 3-Month
Trust Shares Trust Shares Index Index Index T-Bill
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
12/31/92 10,000 10,000 10,000 10,000 10,000 10,000
5/31/93 10,551 10,481 10,456 10,500 10,588 10,125
5/31/94 10,664 10,925 10,898 10,573 11,511 10,454
5/31/95 11,875 12,592 13,094 11,789 12,697 10,998
5/31/96 13,878 15,397 16,816 12,305 17,255 11,601
5/31/97 15,688 18,215 21,760 13,329 18,458 12,211
5/31/98 18,529 22,326 28,434 14,784 22,378 12,851
5/31/99 19,760 24,927 34,419 15,426 21,776 13,462
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no indication of future performance.
*The performance quoted includes past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses. The asset allocation
program was not registered under the 1940 Act, and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestFunds Life Vision Growth and Income Portfolio
became the STI Classic Life Vision Growth and Income Portfolio.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
17
<PAGE>
STI Classic Life Vision Maximum Growth Portfolio
------------------------------------------------
The STI Classic Life Vision Maximum Growth Portfolio (the "Portfolio") is a new
member of the STI Classic family of mutual funds, created on May 24, 1999
through a merger with the CrestFunds Life Vision Maximum Growth Portfolio. It
invests at least 80% of the Portfolio's assets in STI Classic equity mutual
funds. The Portfolio's remaining assets may be invested in shares of STI Classic
Funds that invest in fixed-income and money market securities or other
short-term high quality investments.
The past year was turbulent for the economy as well as the stock and bond
markets, as policy-makers and investors successfully navigated potentially
significant pitfalls. The current economic expansion reached its eighth
anniversary, with continued low inflation. The STI Classic Life Vision Maximum
Growth Portfolio returned 7.22% during the fiscal year ended May 31, 1999.
The beginning of the fiscal year, the second half of 1998, was strongly
influenced by continuing reverberations of the 1997 Asian financial crisis.
Diminishing profit expectations and political scandal here at home only added to
investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a
price-only basis, though it lost as much as 19.3% between mid-July and the end
of August. The Federal Reserve responded to the crisis last fall by cutting
interest rates three times, and the major indexes completely recovered from the
"bear" market within another six weeks. Large growth oriented equities performed
extremely well while most value-oriented stocks struggled.
By the first quarter of 1999, glimmers of economic hope began to appear for
battered economies in the Pacific rim region as well as in Latin America. In
addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on
news that world oil producers were acting together to reduce the global energy
glut. By April, fears of future inflation helped push interest rates higher, and
investors dramatically reduced their exposure to the high price/earnings growth
stocks in favor of more cyclically and inflation sensitive value-oriented
companies. The STI Classic Life Vision Maximum Growth Portfolio stayed fully
invested to maximize long term returns.
The outlook for the U.S. and world economies remains favorable based on current
reports, improving prospects for corporate earnings growth over the near term.
While tight labor markets remain a concern for the inflation-wary Fed,
structural imbalances and excess inventories appear to be lacking. This suggests
that companies may be able to adjust price and production schedules relatively
quickly in response to future changes in demand or Fed policy. The Portfolio
will continue to adjust its mix of investments in this evolving environment in
order to maximize returns to our shareholders while limiting volatility.
Trusco Capital Management, Inc.
18
<PAGE>
Trust Shares
[STI Classic Life Vision Growth & Income Portfolio Trust Shares Line Graphic
Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return* Return* to Date to Date
- --------------------------------------------------------------------------------
7.22% 14.93% 15.78% 12.95% 26.30%
- --------------------------------------------------------------------------------
STI Classic Life Vision Maximum Growth Portfolio, Trust Shares
STI Classic Life Vision Growth Portfolio Hybrid Benchmark, Trust Shares
S&P 500 Index
Russell 2000 Index
Salomon 3-Month T-Bill
Plot points are as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
STI Classic STI Classic
Life Vision Life Vision Maximum
Maximum Growth Growth Portfolio S&P 500 Russell Salomon
Portfolio Hybrid Benchmark 500 2000 3-Month
Trust Shares Trust Shares Index Index T-Bill
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/31/92 10,000 10,000 10,000 10,000 10,000
5/31/93 10,697 10,465 10,456 10,588 10,125
5/31/94 10,840 11,044 10,898 11,511 10,454
5/31/95 12,108 12,772 13,094 12,697 10,998
5/31/96 14,858 16,375 16,816 17,255 11,601
5/31/97 17,216 19,660 21,760 18,458 12,211
5/31/98 21,038 24,634 28,434 22,378 12,851
5/31/99 22,557 27,654 34,419 21,776 13,462
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no indication of future performance.
*The performance quoted includes past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses. The asset allocation
program was not registered under the 1940 Act, and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestFunds Life Vision Maximum Growth Portfolio
became the STI Classic Life Vision Maximum Growth Portfolio.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
19
<PAGE>
STI Classic Mid-Cap Equity Fund
-------------------------------
The STI Classic Mid-Cap Equity Fund (the "Fund") seeks capital appreciation by
investing in the stocks of companies with a market capitalization between $500
million and $10 billion. Mid-cap securities with a strong growth history are the
primary consideration for this investment philosophy. These companies are
evaluated to their industry sector and the market in general. Each industry
sector is considered in relation to the business cycle, and the Fund maintains
large positions in the sectors which appear to perform best in the given cycle.
Stocks that fall within favored sectors are analyzed based on fundamentals --
the quality of earnings, dependability of growth rates and relative
attractiveness of price/earnings ratio.
The Fund's return from June 1998 to May 1999 was 1.61% (Trust Shares). The Fund
under performed its index, the S&P Mid-Cap 400 Index, by 10.34%. We believe the
Fund's under performance was a result of its lack of exposure to companies with
market capitalizations near the high end of the mid-cap range. Index performance
has been driven by the larger capitalization names in the index as larger
capitalization companies generally outperformed lower capitalization companies
in all sectors of the U.S. equity markets.
Over the last few months, mid-cap stocks have picked up their performance
relative to large-cap stocks. Despite this, mid-cap stocks continue to sell at a
discount to large-cap stocks. Given this valuation discount and the healthy
state of the economy, a broadening of the market into mid-cap stocks would be
perfectly natural.
Our focus continues to be on the faster growing areas of the economy, including
the technology, healthcare and consumer sectors. We also believe that there are
select opportunities for growth in the energy sector, especially in the oil
service industry. The top contributors to recent performance have been in the
technology and oil service areas.
/s/ Signature omitted
--------------------------
John M. Hamlin
Managing Director
20
<PAGE>
Trust Shares
[STI Classic Mid-Cap Equity Fund Trust Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
1.61% 12.03% 14.72% 13.46% 95.93%
- --------------------------------------------------------------------------------
STI Classic Mid-Cap Equity Fund, Trust Shares
S&P Mid-Cap 400 Index
Plot points are as follows:
- -------------------------------------------------------------
STI Classic S&P
Mid-Cap Equity Fund Mid-Cap 400
Trust Shares Index
- -------------------------------------------------------------
2/28/94 10,000 10,000
5/31/94 9,735 9,516
5/31/95 10,958 10,803
5/31/96 13,756 13,873
5/31/97 15,714 16,397
5/31/98 19,035 21,294
5/31/99 19,342 23,837
- -------------------------------------------------------------
Investor Shares
[STI Classic Mid-Cap Equity Fund Investor Shares Line Graphic Omitted]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1.17% 11.53% 14.18% 12.90% 90.98% Without Load
- -2.61% 10.11% 13.32% 12.10% 83.81% With Load
- -------------------------------------------------------------------------------------------
</TABLE>
STI Classic Mid-Cap Equity Fund, Investor Shares
S&P Mid-Cap 400 Index
Plot points are as follows:
- -------------------------------------------------------------
STI Classic S&P
Mid-Cap Equity Fund Mid-Cap 400
Investor Shares Index
- -------------------------------------------------------------
1/31/94 9,625 10,000
5/31/94 9,471 9,381
5/31/95 10,603 10,650
5/31/96 13,247 13,676
5/31/97 15,070 16,164
5/31/98 18,168 20,992
5/31/99 18,381 23,498
- -------------------------------------------------------------
Flex Shares
[STI Classic Mid-Cap Equity Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
0.56% 10.85% 13.79% 67.19% Without Load
- -1.25% With Load
- --------------------------------------------------------------------------------
STI Classic Mid-Cap Equity Fund, Flex Shares
S&P Mid-Cap 400 Index
Plot points are as follows:
- -------------------------------------------------------------
STI Classic S&P
Mid-Cap Equity Fund Mid-Cap 400
Flex Shares Index
- -------------------------------------------------------------
6/30/95 10,000 10,000
5/31/96 11,839 12,339
5/31/97 13,385 14,584
5/31/98 16,035 18,940
5/31/99 16,125 21,201
- -------------------------------------------------------------
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
21
<PAGE>
STI Classic Small Cap Equity Fund
---------------------------------
The STI Classic Small Cap Equity Fund (the "Fund") seeks capital appreciation
with a secondary goal of achieving current income by investing in the stocks of
companies with a market capitalization of less than $1 billion.
The Fund's return from June 1998 to May 1999 was -18.72% (Trust Shares). The
Fund underperformed its index, the Frank Russell 2000 Value Index, which
returned -9.52%.
The May 1999 fiscal year was an extremely difficult year for small cap stocks
and for value stocks. Small cap value stocks were the worst performing domestic
equity class over this time period as the markets continued to favor large cap
growth equities.
The relative valuation between small cap value stocks and large cap stocks using
such measures as price to earnings (P/E), price to book value, price to sales
and price to cash flow reached an extreme level not seen in decades at the end
of March 1999. Small cap value stocks were as cheap as they have been relative
to large cap stocks looking back over many years.
The extremely low relative valuation for small cap value stocks was caused by
concerns of a U.S. economic slowdown caused by global economic slowing and
turbulence in most foreign financial markets. Also an additional contributing
factor was the dramatic flow of funds out of small cap equities favoring large
cap U.S. equities.
The Fund's performance, relative to the Frank Russell 2000 Value Index, was
adversely affected by our underexposure to the financial industry (which
benefited by lower interest rates), our overexposure to cyclical and commodity
related companies (which under performed) and the Fund's investments in smaller
companies, which didn't perform well compared to larger companies. Our
investment discipline and valuations direct us to the companies we invest in and
we are confident, over the longer term, of the merits of these investments.
We have managed the Fund over the past 12 months using the same basic investment
strategies, which have been successful over time. Our focus has been on
undervalued small cap companies that have significant upside return potential
with catalyst events over the next 18 - 24 months to trigger an upward move in
their share price. We also require dividend income to pay us as we wait to
provide reduced volatility in the portfolio.
We have had little investment participation in areas such as the internet, as
the valuations have been too rich for our investment discipline and the sector
has all of the indications of a speculative "bubble". We prefer to stick with
what we know and make valuation based investment decisions.
On a bright note, fiscal year 2000 is starting off with much better performance.
Since the end of March 1999, small cap value stocks and the Fund have had
extremely good investment returns as they have rebounded from their extremely
low valuations relative to large cap stocks. Small cap value stocks still look
very cheap relative to large cap stocks and their absolute valuations are just
slightly above the long-term valuations seen for the asset class, yet still are
much cheaper than large cap stocks absolute valuations.
Long-term, small cap value stocks and the Fund have delivered very good risk
adjusted returns and we firmly believe this will continue looking out into the
future.
/s/ Signature omitted
--------------------------
Brett L. Barner, CFA
Managing Director
22
<PAGE>
Trust Shares
[STI Classic Small Cap Equity Fund Trust Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
- -18.72% 10.06% 4.77% 11.47%
- --------------------------------------------------------------------------------
STI Classic Small Cap Equity Fund, Trust Shares
Frank Russell 2000 Index
Plot points are as follows:
- --------------------------------------------------------------
STI Classic Frank Russell
Small Cap Equity Fund 2000
Trust Shares Index
- --------------------------------------------------------------
8/31/94 10,000 10,000
5/31/95 11,432 10,638
5/31/96 15,171 14,457
5/31/97 20,138 15,465
5/31/98 24,888 18,749
5/31/99 20,229 18,245
- --------------------------------------------------------------
Flex Shares
[STI Classic Small Cap Equity Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Cumulative
One Year 3 Year Inception Inception
Return Return to Date to Date
- --------------------------------------------------------------------------------
- -19.52% 9.32% -2.09% -4.10% Without Load
- -21.03% With Load
- --------------------------------------------------------------------------------
STI Classic Small Cap Equity Fund, Flex Shares
Frank Russell 2000 Index
Plot points are as follows:
- ---------------------------------------------------------------
STI Classic Frank Russell
Small Cap Equity Fund 2000
Flex Shares Index
- ---------------------------------------------------------------
8/31/94 10,000 10,000
5/31/95 11,432 10,638
5/31/96 15,171 14,457
5/31/97 20,138 15,465
5/31/98 24,627 18,749
5/31/99 19,819 18,245
Past performance is no indication of future performance.
*The performance quoted includes past performance of the Common Trust Fund
managed by STI Capital Management, N.A. adjusted for fees and expenses. The
Common Trust Fund was not registered under the 1940 Act and therefore was not
subject to certain investment restrictions which may have adversely affected
performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
23
<PAGE>
STI Classic Small Cap Growth Stock Fund
---------------------------------------
The objective of the STI Classic Small Cap Growth Stock Fund (the "Fund") is to
provide long-term capital appreciation by investing in smaller companies,
domiciled primarily in the U.S., with market capitalizations ranging from $50
million to $3 billion. The philosophy of the Fund is that a portfolio of small
capitalization companies with positive earnings characteristics and reasonable
valuation will provide superior returns over time.
The Fund invests in stocks of companies that are currently demonstrating strong
earnings trends, characterized by solid historical earnings growth, high
earnings and sales growth momentum, and positive earnings estimate revisions and
earnings surprises. However, we try not to pay huge premiums for these
companies. Consequently, we identify those companies that are reasonably valued
relative to their earnings trends and relative to our universe of companies. In
addition, we look for companies that have a history of generating high returns
on invested capital and/or are demonstrating improving returns.
The investment process of the Fund features a two-tiered strategy that includes
a quantitative methodology to identify those companies with the best combination
of the aforementioned characteristics and a qualitative overlay that involves
basic fundamental analysis of each company. Our investment team looks at each
company to understand the company's basic business model and competitive
environment surrounding the company. In addition, we dig into the financials of
each company, analyzing the income statement and balance sheet in order to
identify any accounting irregularities, understand the capital structure of the
company, how the company has grown in the past, and how it intends to fund its
growth in the future.
The Fund features a very disciplined approach for both the buying and selling of
stocks. Furthermore, we exercise portfolio management techniques that are geared
toward risk aversion, unlike most other aggressive small cap growth portfolios.
The Fund equal-weights the portfolio among the top 15% to 20% of stocks in our
investment universe (approximately 150-160 companies). Thus, we maintain a very
diversified portfolio taking on very little company specific risk. In addition,
we maintain controlled sector weightings to keep the portfolio from becoming
over-concentrated in one particular economic sector.
We are confident that our process will provide excellent risk-adjusted returns
over time relative to the S&P Small Cap 600 Index and relative to other small
cap mutual funds. We are very pleased with the Fund's results since inception on
October 8, 1998 and feel very comfortable with how the portfolio is currently
positioned. Since late March 1999, the broadening of the market has brought
about a resurgence in small cap stock returns. Should this trend continue, this
will be an excellent year for the STI Classic Small Cap Growth Stock Fund.
/s/ Signature omitted
------------------------------------
Mark D. Garfinkel, CFA
Vice President and Portfolio Manager
24
<PAGE>
Trust Shares*
[STI Classic Small Cap Growth Stock Fund Trust Shares Line Graphic Omitted]
- -----------
Cumulative
Inception
to Date
- -----------
45.70%
- -----------
STI Classic Small Cap Growth Stock Fund, Trust Shares
S&P Small Cap 500 Index
Plot points are as follows:
- -------------------------------------------------------------
STI Classic S&P
Small Cap Growth Stock Small Cap 600
Fund, Trust Shares Index
- -------------------------------------------------------------
10/31/98 10,000 10,000
5/31/99 12,070 11,168
- -------------------------------------------------------------
Flex Shares*
[STI Classic Small Cap Growth Stock Fund Flex Shares Line Graphic Omitted]
- -----------------------------
Cumulative
Inception
to Date
- -----------------------------
44.78% Without Load
42.78% With Load
- -----------------------------
Plot points are as follows:
- -------------------------------------------------------------
STI Classic S&P
Small Cap Growth Stock Small Cap 600
Fund, Flex Shares Index
- -------------------------------------------------------------
10/31/98 10,000 10,000
5/31/99 11,764 11,168
- -------------------------------------------------------------
*Commenced operations on October 8, 1998.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
25
<PAGE>
STI Classic Sunbelt Equity Fund
-------------------------------
The objective of the STI Classic Sunbelt Equity Fund (the "Fund") is to provide
capital appreciation by investing in U.S. companies located in the Sunbelt
region. The Fund's philosophy is centered on the belief that a portfolio of
companies with positive earnings trends will generate above average returns over
time. This focus on favorable earnings characteristics has been and remains the
Fund's cornerstone.
The Fund invests in companies that are headquartered or conduct the majority of
their business in the twelve state Sunbelt region which runs from Virginia down
to Florida and over to Texas. The favorable economic and demographic trends in
the Sunbelt have resulted in a vibrant and growing business climate. Such an
environment leads to above average investment opportunities. Key trends in the
Sunbelt are low cost levels, an excellent transportation system, expansion in
personal income and growth in population.
The Fund's investment universe consists of approximately 2,300 public companies,
of which roughly 300 are covered extensively by our nine dedicated research
analysts. Before a company can be considered for investment, it must satisfy
initial screening criteria which include: five year operating history, market
capitalization of at least $50 million, monthly trading volume of $20 million,
management continuity and strong fundamental history. Once the initial screening
is complete the stocks chosen for purchase generally have strong or improving
growth rates, a demonstrated ability to meet expectations, and rising estimates.
Over time, the companies owned in the Fund have shown above average earnings
growth rates. The above average growth rates have continued through the Fund's
1999 fiscal year and are a direct result of the Fund's bottom up orientation.
Yet the Fund's performance did not reflect these favorable earnings trends and
fundamentals. The reason is that the Sunbelt investment process of owning
companies which have a solid operating history and earnings growth excluded
speculative internet companies which were rewarded in the market place to the
detriment of more established profitable companies. Furthermore, investors
continued to favor large liquid common stocks. The Internet speculative bubble
looks as if it is starting to deflate and a broader shift to secondary stocks
has begun.
/s/ Signature omitted
------------------------------------
James Foster
Vice President
26
<PAGE>
Trust Shares
[STI Classic Sunbelt Equity Fund Trust Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year 10 Year Inception Inception
Return Return Return Return to Date to Date
- --------------------------------------------------------------------------------
-20.46% -0.01% 8.25% 12.94% 7.00% 44.18%
- --------------------------------------------------------------------------------
STI Classic Sunbelt Equity Fund, Trust Shares
S&P 500 Small Cap Index
Frank Russell 2000 Growth Index
Plot points are as follows:
- --------------------------------------------------------------------------------
STI Classic S&P 600 Frank Russell
Sunbelt Equity Fund Small Cap 2000 Growth
Trust Shares Index Index
- --------------------------------------------------------------------------------
5/31/89 10,000 10,000 10,000
5/31/90 12,131 9,823 10,461
5/31/91 14,122 10,064 11,356
5/31/92 16,089 11,725 12,259
5/31/93 20,328 14,397 13,792
5/31/94 22,719 15,329 14,570
5/31/95 23,584 16,828 16,417
5/31/96 33,771 23,295 23,739
5/31/97 34,270 26,086 22,457
5/31/98 42,447 32,417 26,017
5/31/99 33,763 30,057 27,039
- --------------------------------------------------------------------------------
Investor Shares
[STI Classic Sunbelt Equity Fund Investor Shares Line Graphic Omitted]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year 10 Year Inception Inception
Return Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-20.82% -0.46% 7.73% 12.35% 6.50% 40.61% Without Load
-23.81% -1.72% 6.90% 11.92% 5.75% 35.33% With Load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Sunbelt Equity Fund, Flex Shares
S&P 500 Small Cap Index
Frank Russell 2000 Growth Index
Plot points are as follows:
- --------------------------------------------------------------------------------
STI Classic S&P 600 Frank Russell
Sunbelt Equity Fund Small Cap 2000 Growth
Investor Shares Index Index
- --------------------------------------------------------------------------------
5/31/89 9,625 10,000 10,000
5/31/90 11,620 9,823 10,461
5/31/91 13,440 10,064 11,356
5/31/92 15,215 11,725 12,259
5/31/93 19,118 14,397 13,792
5/31/94 21,244 15,329 14,570
5/31/95 21,924 16,828 16,417
5/31/96 31,259 23,295 23,739
5/31/97 31,587 26,086 22,457
5/31/98 38,931 32,417 26,017
5/31/99 30,826 30,057 27,039
- --------------------------------------------------------------------------------
Flex Shares
[STI Classic Sunbelt Equity Fund Flex Shares Line Graphic Omitted]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Annualized Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year 10 Year Inception Inception
Return Return Return Return to Date to Date
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-21.36% -1.09% 7.33% 12.46% 7.82% 34.92% Without Load
-22.80% With Load
- ----------------------------------------------------------------------------------------------
</TABLE>
STI Classic Sunbelt Equity Fund, Flex Shares
S&P 500 Small Cap Index
Frank Russell 2000 Growth Index
Plot points are as follows:
- --------------------------------------------------------------------------------
STI Classic S&P 600 Frank Russell
Sunbelt Equity Fund Small Cap 2000 Growth
Flex Shares Index Index
- --------------------------------------------------------------------------------
5/31/89 10,000 10,000 10,000
5/31/90 12,131 9,823 10,461
5/31/91 14,122 10,064 11,356
5/31/92 16,089 11,725 12,259
5/31/93 20,328 14,397 13,792
5/31/94 22,719 15,329 14,570
5/31/95 23,584 16,828 16,417
5/31/96 33,438 23,295 23,739
5/31/97 33,592 26,086 22,457
5/31/98 41,143 32,417 26,017
5/31/99 32,355 30,057 27,039
- --------------------------------------------------------------------------------
Past performance is no indication of future performance.
*The performance quoted includes past performance of the Common Trust Fund
managed by Trusco Capital Management adjusted for fees and expenses. The Common
Trust Fund was not registered under the 1940 Act and therefore was not subject
to certain investment restrictions which may have adversely affected
performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
27
<PAGE>
STI Classic Tax Sensitive Growth Stock Fund
-------------------------------------------
The STI Classic Tax Sensitive Growth Stock Fund seeks to provide long-term
growth of capital by investing in a diversified portfolio of common stocks of
financially strong U.S. growth companies across all industry sectors with a
large capitalization emphasis. Our value-added approach also seeks to minimize
taxable gain distributions.
We use a four dimensional investment philosophy. The first dimension is
diversified holdings. Secondly, we select, in our opinion, the greatest
companies in each industry sector. Thirdly, while we are predominately a large
capitalization fund, we do have the flexibility to purchase small and mid
capitalization stocks. Lastly, we require a high standard of financial strength.
In our opinion, this philosophy has the potential to maximize growth and
minimize taxable distributions. We believe that it is not what you make; it is
what you keep after taxes that counts.
/s/ Signature omitted
------------------------------------
Jonathan Mote, CFA, CFP
Vice President
28
<PAGE>
Trust Shares(1)
[STI Classic Tax Sensitive Growth Stock Fund Trust Shares Line Graphic Omitted]
- -----------------------------------------------
Annualized Cumulative
One Year 3 Year Inception
Return* Return* to Date
- -----------------------------------------------
29.41% 27.66% 17.04%
- -----------------------------------------------
STI Classic Tax Sensitive Growth Stock Fund, Trust Shares
S&P 500 Index
Plot points are as follows:
- ---------------------------------------------------------
STI Classic
Tax Sensitive S&P
Growth Stock Fund 500
Trust Shares Index
- ---------------------------------------------------------
12/31/95 10,000 10,000
5/31/96 10,767 10,966
5/31/97 13,971 14,190
5/31/98 17,311 18,542
5/31/99 22,402 22,445
- ---------------------------------------------------------
Flex Shares(2)
[STI Classic Tax Sensitive Growth Stock Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------
Annualized Cumulative
One Year 3 Year Inception
Return* Return* to Date
- --------------------------------------------------------------------
28.87% 27.48% 16.97% Without Load
26.87% With Load
- --------------------------------------------------------------------
STI Classic Tax Sensitive Growth Stock Fund, Trust Shares
S&P 500 Index
Plot points are as follows:
- ---------------------------------------------------------
STI Classic
Tax Sensitive S&P
Growth Stock Fund 500
Flex Shares Index
- ---------------------------------------------------------
12/31/95 10,000 10,000
5/31/96 10,767 10,966
5/31/97 13,971 14,190
5/31/98 17,311 18,542
5/31/99 22,309 22,445
- ---------------------------------------------------------
(1) Commenced operations on December 11, 1998.
(2) Commenced operations on December 15, 1998.
*The performance quoted includes past performance of the Common Trust Fund
managed by Trusco Capital Management adjusted for fees and expenses. The Common
Trust Fund was not registered under the 1940 Act and therefore was not subject
to certain investment restrictions which may have adversely affected
performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
29
<PAGE>
STI Classic Value Income Stock Fund
-----------------------------------
The STI Classic Value Income Stock Fund (the "Fund") seeks to provide current
income with the secondary goal of achieving capital appreciation by investing
primarily in equity securities.
The Fund's investment philosophy is a very structured methodical approach to
purchasing stocks. The bottom-up approach has three key factors to consider in
all investment decisions -- minimum dividend yield criteria, low historical
relative valuation and a fundamental catalyst which could upwardly value the
individual security.
Our process seeks high-dividend paying stocks that are trading at the lower end
of their historical valuation ranges. These companies are in the midst of
fundamental change that we expect will reignite investor interest in the
near-term. They tend to exhibit value characteristics such as low
price-to-earnings ratios and have lower volatility. As a result, the Fund
benefits when the market becomes less exuberant and more value oriented.
The Fund's return from June 1998 to May 1999 was 11.13% (Trust Shares). The Fund
under performed the S&P/Barra Value Index by 1.96%.
Growth has had a tremendous advantage versus value in the marketplace over the
last four years, as investors around the world buy stocks that they know --
typically large cap growth such as General Electric and Microsoft. However,
given the currently high valuations for growth stocks in general and the
apparent stabilization in the global economy, value stocks could be poised for a
period of out performance.
/s/ Signature omitted
------------------------------------
Mills A. Riddick, CFA
Managing Director
30
<PAGE>
Trust Shares
[STI Classic Value Income Stock Fund Trust Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
11.13% 18.68% 20.55% 18.25% 187.49%
- --------------------------------------------------------------------------------
STI Classic Value Income Stock Fund, Trust Shares
S&P/BARRA Value Index
Lipper Equity Income Funds Average
Plot points are as follows:
- --------------------------------------------------------------------------------
STI Classic S&P/BARRA Lipper Equity
Value Income Stock Fund Value Income Funds
Trust Shares Index Average
- --------------------------------------------------------------------------------
10/31/89 10,000 10,000 10,000
5/31/90 10,359 10,463 10,261
5/31/91 12,434 11,432 11,120
5/31/92 15,195 12,449 12,475
5/31/93 16,778 14,438 14,166
5/31/94 18,453 15,512 14,873
5/31/95 21,970 18,160 16,844
5/31/96 28,102 22,946 20,755
5/31/97 34,335 28,788 25,450
5/31/98 42,266 37,113 31,753
5/31/99 46,970 41,971 34,478
- --------------------------------------------------------------------------------
Investor Shares
[STI Classic Value Income Stock Fund Investor Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 5 Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
10.71% 18.24% 20.11% 18.34% 188.22% Without Load
6.56% 16.75% 19.20% 17.62% 177.38% With Load
- --------------------------------------------------------------------------------
STI Classic Value Income Stock Fund, Investor Shares
S&P/BARRA Value Index
Lipper Equity Income Funds Average
Plot points are as follows:
- --------------------------------------------------------------------------------
STI Classic S&P/BARRA Lipper Equity
Value Income Stock Fund Value Income Funds
Investor Shares Index Average
- --------------------------------------------------------------------------------
10/31/89 9,625 10,000 10,000
5/31/90 9,970 10,463 10,261
5/31/91 11,967 11,432 11,120
5/31/92 14,625 12,449 12,475
5/31/93 16,142 14,438 14,166
5/31/94 17,641 15,512 14,873
5/31/95 20,942 18,160 16,844
5/31/96 26,678 22,946 20,755
5/31/97 32,465 28,788 25,450
5/31/98 39,837 37,113 31,753
5/31/99 44,104 41,971 34,478
- --------------------------------------------------------------------------------
Flex Shares
[STI Classic Value Income Stock Fund Flex Shares Line Graphic Omitted]
- --------------------------------------------------------------------------------
Annualized Annualized Annualized Cumulative
One Year 3 Year 3 Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
9.91% 17.40% 19.50% 19.67% 104.71% Without Load
8.06% With Load
- --------------------------------------------------------------------------------
STI Classic Value Income Stock Fund, Flex Shares
S&P/BARRA Value Index
Upper Equity Income Funds Average
Plot points are as follows:
- --------------------------------------------------------------------------------
STI Classic S&P/BARRA Lipper Equity
Value Income Stock Fund Value Income Funds
Flex Shares Index Average
- --------------------------------------------------------------------------------
10/31/89 10,000 10,000 10,000
5/31/90 10,359 10,463 10,261
5/31/91 12,434 11,432 11,120
5/31/92 15,195 12,449 12,475
5/31/93 16,778 14,438 14,166
5/31/94 18,453 15,512 14,873
5/31/95 21,970 18,160 16,844
5/31/96 27,796 22,946 20,755
5/31/97 33,609 28,788 25,450
5/31/98 40,922 37,113 31,753
5/31/99 44,977 41,971 34,478
- --------------------------------------------------------------------------------
Past performance is no indication of future performance.
*The performance quoted includes past performance of the Common Trust Fund
managed by STI Capital Management, N.A. adjusted for fees and expenses. The
Common Trust Fund was not registered under the 1940 Act and therefore was not
subject to certain investment restrictions which may have adversely affected
performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
31
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Balanced Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (56.1%)
Basic Materials (1.2%)
Air Products & Chemicals 75,200 $ 3,083
Morton International 22,200 866
--------
3,949
--------
Capital Goods (6.8%)
Allied Waste Industries* 36,100 672
Browning Ferris Industries 3,000 124
General Electric 75,500 7,677
Honeywell 20,800 1,968
Lockheed Martin 14,700 594
Maytag 6,200 437
Raytheon, Cl B 4,100 279
Republic Services, Cl A* 39,800 935
Tenneco 3,000 70
Textron 7,300 650
Tyco International 51,659 4,514
United Technologies 34,000 2,110
Waste Management* 62,161 3,287
--------
23,317
--------
Communication Services (2.4%)
Airtouch Communications* 4,900 492
AT&T 26,284 1,459
Centurytel 43,100 1,651
Fox Entertainment Group, Cl A* 16,900 431
GTE 24,600 1,551
MCI WorldCom* 19,543 1,688
Nextel Communications, Cl A* 500 18
Nokia, Cl A ADR 12,200 866
--------
8,156
--------
Consumer Cyclicals (11.9%)
Bed Bath & Beyond* 500 17
Carnival 60,600 2,485
Cendant* 88,358 1,629
Comcast* 5,400 477
Costco* 45,700 3,313
CVS 63,400 2,916
Dayton Hudson 19,900 1,254
Dollar General 1,625 43
Federated Department Stores* 8,900 485
Gannett 20,800 1,503
Hasbro 47,200 1,351
Home Depot 7,800 444
Interpublic Group 12,500 947
Kroger* 53,800 3,151
Lear* 27,900 1,372
Lowe's Companies 83,500 4,337
Masco 106,300 3,036
Mattel 51,900 1,372
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Consumer Cyclicals--continued
New York Times, Cl A 22,200 $ 758
Office Depot* 141,350 2,951
Promus Hotel* 11,700 292
Royal Caribbean Cruises 2,700 106
Saks* 43,300 1,196
SPX* 9,100 706
Starwood Hotels and Resorts* 17,655 578
Tandy 35,000 2,887
United Rentals* 25,400 762
Young & Rubicam* 4,300 162
--------
40,530
--------
Consumer Staples (5.6%)
American Stores 15,200 502
Anheuser Busch 6,500 475
Avon Products 25,600 1,266
Clorox 12,500 1,262
Coca Cola 11,200 406
ConAgra 16,600 433
Flowers Industries 18,500 412
Fort James 19,200 703
Gillette 1,200 61
McDonald's 13,900 535
Newell Rubbermaid 3,200 130
Pepsi Bottling Group* 25,700 596
PepsiCo 42,800 1,533
Philip Morris 12,600 486
Procter & Gamble 10,200 952
Ralston Purina 45,500 1,240
Rite Aid 77,700 1,942
Safeway* 29,500 1,372
Sara Lee 75,400 1,810
Seagram 4,400 229
Unilever NV* 4,721 308
US Foodservice* 31,380 1,396
Viacom, Cl B* 23,200 893
--------
18,942
--------
Energy (1.9%)
Anadarko Petroleum 13,400 502
Atlantic Richfield 8,700 728
Halliburton 20,900 865
Mobil 6,400 648
Niagara Mohawk Holdings* 17,700 263
Texaco 31,400 2,057
Union Pacific Resources Group 20,822 290
Unocal 25,100 998
--------
6,351
--------
32
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Financials (8.0%)
Ace Ltd 21,700 $ 662
Allstate 11,800 430
American International Group 17,883 2,044
Associates First Capital 25,500 1,046
Bank of America 28,831 1,865
Bank of New York 11,900 425
Bank One 26,789 1,515
Bank United, Cl A 11,300 468
BankBoston 27,600 1,308
Citigroup 5,200 345
CMAC Investment 4,000 202
Compass Bancshares 18,550 549
Conseco 46,000 1,406
Cullen/Frost Bankers 1,400 79
Fannie Mae 1,500 102
First Security 27,600 523
Freddie Mac 14,300 834
Hartford Life, Cl A 2,900 138
Household International 41,699 1,809
Mellon Bank 74,900 2,673
Merchantile Bancorp 3,200 187
Merrill Lynch 10,000 840
North Fork Bancorporation 20,300 433
PNC Bank 29,100 1,666
Providian Financial 3,900 374
Torchmark 42,700 1,425
U.S. Bancorp 22,500 731
UnionBanCal 14,900 551
Unum 18,400 990
Washington Mutual 39,676 1,515
--------
27,135
--------
Health Care (7.2%)
Abbott Laboratories 52,900 2,390
Alza, Cl A* 24,900 889
American Home Products 24,700 1,423
Baxter International 30,400 1,963
Becton Dickinson 25,000 969
Bristol-Myers Squibb 41,900 2,875
Cardinal Health 26,265 1,586
Eli Lilly 20,000 1,429
Forest Laboratories* 13,100 624
Health Management Associates,
Cl A* 20,100 261
Healthsouth* 47,528 636
Johnson & Johnson 3,400 315
Medtronic 11,294 802
Merck 56,000 3,780
Schering Plough 13,300 599
Tenet Healthcare* 37,000 907
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Health Care--continued
Warner Lambert 47,700 $ 2,957
Watson Pharmaceuticals* 7,100 272
--------
24,677
--------
Technology (10.5%)
3Com* 9,400 257
Analog Devices* 21,500 826
Ascend Communications* 19,800 1,835
BMC Software* 4,200 208
Ceridian* 70,600 2,330
Cisco Systems* 37,300 4,066
Compaq Computer 20,900 495
Computer Sciences* 13,000 841
EMC* 21,900 2,182
Hewlett Packard 21,700 2,047
IBM 58,200 6,769
Intel 26,900 1,454
Lucent Technologies 6,916 393
Microsoft* 63,100 5,091
Networks Associates* 36,386 534
Nortel Networks 17,700 1,328
Sun Microsystems* 29,100 1,739
Texas Instruments 12,800 1,400
Xerox 37,200 2,090
--------
35,885
--------
Transportation (0.6%)
AMR* 4,300 280
Burlington Northern Santa Fe 23,700 735
Delta Air Lines 13,100 752
Trans World Air* 4,100 146
--------
1,913
--------
Total Common Stocks
(Cost $152,557) 190,855
--------
Preferred Stock (0.1%)
Finance (0.1%)
Conseco Financial Trust, CV to
0.9363 Shares* 10,000 409
--------
Total Preferred Stock
(Cost $500) 409
--------
33
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Balanced Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Corporate Obligations (15.6%)
Finance (9.6%)
Conseco
6.800%, 06/15/05 $ 1,800 $ 1,683
6.400%, 06/15/11 1,350 1,323
Countrywide Home Loan,
Ser F, MTN
6.510%, 02/11/05 2,300 2,228
Donaldson Lufkin
5.875%, 04/01/02 2,000 1,968
Donaldson Lufkin, MTN
6.150%, 05/04/04 1,250 1,213
Finova Capital
6.250%, 11/01/02 1,200 1,187
6.110%, 02/18/03 2,250 2,213
6.750%, 03/09/09 850 831
Ford Motor Credit
6.500%, 02/28/02 2,100 2,113
Goldman Sachs
6.650%, 05/15/09 1,250 1,231
Great Western Financial
8.600%, 02/01/02 800 830
Household Finance
5.875%, 02/01/09 2,300 2,136
Merrill Lynch, MTN
5.710%, 01/15/02 3,000 2,963
Paine Webber Group, MTN
6.020%, 04/22/02 3,000 2,933
Provident
7.000%, 07/15/18 2,550 2,483
Reliastar Financial
6.500%, 11/15/08 2,000 1,910
Salomon
7.300%, 05/15/02 1,750 1,794
Salomon Smith Barney
6.250%, 01/15/05 1,750 1,671
--------
32,710
--------
Industrial (6.0%)
AT&T
6.000%, 03/15/09 2,250 2,146
6.500%, 03/15/29 1,250 1,161
AT&T Capital, MTN
6.890%, 01/25/02 2,750 2,753
Bausch & Lomb
6.150%, 08/01/01 1,200 1,194
6.750%, 12/15/04 1,000 979
Dillards
6.430%, 08/01/04 2,700 2,612
<PAGE>
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Industrial--Continued
Ikon Capital, MTN
6.730%, 06/15/01 $ 1,000 $ 988
Philip Morris
7.250%, 09/15/01 2,100 2,142
7.500%, 04/01/04 1,000 1,031
Sprint Capital
5.875%, 05/01/04 2,200 2,131
6.375%, 05/01/09 1,350 1,289
6.900%, 05/01/19 2,000 1,913
--------
20,339
--------
Total Corporate Obligations
(Cost $54,249) 53,049
--------
Convertible Bonds (0.3%)
Network Associates, CV to
8.5380 Shares,
Callable 02/13/03 @ 49.45 (A)
0.000%, 02/13/18 1,000 305
WMX Technologies, CV to
18.9065 Shares,
Callable 03/15/00 @ 84.30
2.000%, 01/24/05 700 751
--------
Total Convertible Bonds
(Cost $1,188) 1,056
--------
U.S. Agency Mortgage-Backed
Obligation (2.7%)
GNMA
8.000%, 12/15/22 8,704 9,049
--------
Total U.S. Agency Mortgage-Backed
Obligation (Cost $9,047) 9,049
--------
U.S. Treasury Obligations (14.4%)
U.S. Treasury Bonds
7.500%, 11/15/16 8,000 9,159
8.125%, 08/15/19 16,175 19,872
U.S. Treasury Notes
5.750%, 10/31/00 8,250 8,298
5.000%, 04/30/01 2,250 2,234
6.125%, 08/15/07 9,100 9,278
--------
Total U.S. Treasury Obligations
(Cost $48,155) 48,841
--------
34
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreement (10.7%)
Greenwich
4.83%, dated 05/28/99,
matures 06/01/99, repurchase
price $36,557,959 (collateralized by
various FNMA obligations: total
market value $37,269,725) (D) $36,538 $ 36,538
--------
Total Repurchase Agreement
(Cost $36,538) 36,538
--------
Total Investments (99.9%)
(Cost $302,234) 339,797
--------
Other Assets and Liabilities, Net (0.1%) 443
--------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 18,984,001 outstanding shares of
beneficial interest 212,913
Fund shares of the Investor Class (unlimited
authorization -- no par value) based
on 1,123,159 outstanding shares of
beneficial interest 13,301
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 5,582,438 outstanding shares of
beneficial interest 71,393
Undistributed net investment income 1,009
Accumulated net realized gain on investments 4,061
Net unrealized appreciation on investments 37,563
--------
Total Net Assets 100.0% $340,240
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 13.26
========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 13.32
========
Maximum Offering Price Per Share --
Investor Shares ($13.32 / 96.25%) $ 13.84
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 13.17
=======
(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 67.
35
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Capital Appreciation Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (92.8%)
Basic Materials (1.8%)
Air Products & Chemicals 859,900 $ 35,256
Morton International 246,200 9,602
----------
44,858
----------
Capital Goods (10.8%)
Allied Waste Industries* 438,000 8,158
Browning Ferris Industries 32,700 1,357
General Electric 868,900 88,356
Honeywell 242,300 22,928
Illinois Tool Works 50,000 3,837
Koninklijke Philips El 50,000 4,300
Republic Services, Cl A* 455,200 10,697
Tenneco 34,300 800
Textron 83,400 7,428
Tyco International 631,652 55,191
United Technologies 340,800 21,151
Waste Management 727,079 38,444
----------
262,647
----------
Communication Services (5.0%)
Airtouch Communications* 56,800 5,708
AT&T 308,032 17,096
Centurytel 506,750 19,415
Fox Entertainment Group, Cl A* 195,100 4,975
GTE 287,300 18,118
MCI WorldCom* 542,169 46,830
Nextel Communications, Cl A* 5,100 188
Nokia, Cl A ADR 93,600 6,646
SBC Communications 33,000 1,687
----------
120,663
----------
Consumer Cyclicals (18.2%)
Abercrombie & Fitch, Cl A* 10,000 841
Bed Bath & Beyond* 6,300 215
Carnival 712,700 29,221
Costco* 533,700 38,693
CVS 704,700 32,416
Dayton Hudson 227,500 14,332
Dollar General 20,000 531
Federated Department Stores* 102,700 5,597
Gannett 267,300 19,312
Hasbro 548,700 15,707
Home Depot 91,600 5,210
Interpublic Group 144,900 10,976
Lear* 323,400 15,907
Lowe's Companies 997,900 51,828
Masco 1,244,500 35,546
Mattel 580,100 15,336
Maytag 69,000 4,869
New York Times, Cl A 243,800 8,320
Newell Rubbermaid 36,600 1,482
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Consumer Cyclicals--continued
Office Depot* 1,643,350 $ 34,305
Promus Hotel* 130,300 3,257
Rite Aid 857,500 21,437
Royal Caribbean Cruises 31,600 1,236
Saks* 410,800 11,348
SPX* 105,400 8,182
Starwood Hotels and Resorts 168,134 5,506
Tandy 399,700 32,975
Viacom, Cl B* 253,800 9,771
Wal-Mart Stores 60,000 2,557
Walgreen 130,000 3,022
Walt Disney 90,000 2,621
Young & Rubicam 49,800 1,905
----------
444,461
----------
Consumer Staples (10.1%)
American Stores 173,500 5,725
Anheuser Busch 75,800 5,538
Avon Products 245,500 12,137
Cendant* 1,002,823 18,490
Clorox 135,200 13,647
Coca Cola Enterprises 130,300 4,723
Coca-Cola 30,000 2,049
ConAgra 181,300 4,725
Flowers Industries 206,100 4,586
Fort James 224,600 8,226
Gillette 13,400 683
Kroger* 629,100 36,842
McDonald's 107,200 4,127
Paychex 57,000 1,689
Pepsi Bottling Group* 285,600 6,622
PepsiCo 488,900 17,509
Philip Morris 168,950 6,515
Procter & Gamble 119,100 11,121
Ralston Purina 532,500 14,511
Safeway* 327,100 15,210
Sara Lee 861,700 20,681
Seagram 51,700 2,685
Sysco 60,000 1,781
Unilever NV 54,664 3,570
United Rentals* 243,400 7,302
US Foodservice* 359,650 16,004
----------
246,698
----------
Energy (3.1%)
Anadarko Petroleum 149,700 5,614
Atlantic Richfield 100,000 8,369
Halliburton 245,500 10,158
Mobil 70,200 7,108
Niagara Mohawk Holdings* 204,900 3,048
Schlumberger 40,000 2,407
36
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Energy--continued
Texaco 368,500 $ 24,137
Union Pacific Resources Group 243,759 3,397
Unocal 293,100 11,651
----------
75,889
----------
Financials (13.1%)
Ace Ltd 252,100 7,689
Allstate 134,600 4,904
American International Group 213,096 24,360
Associates First Capital 293,200 12,021
Bank of America 329,438 21,311
Bank of New York 139,200 4,976
Bank One 313,536 17,734
Bank United, Cl A 131,800 5,453
BankBoston 335,100 15,875
Citigroup 60,400 4,001
CMAC Investment 46,300 2,341
Compass Bancshares 215,650 6,382
Conseco 526,400 16,088
Cullen/Frost Bankers 63,100 3,549
Fannie Mae 38,100 2,591
Fifth Third Bancorp 39,000 2,659
First Security 202,600 3,837
Freddie Mac 158,000 9,213
Hartford Life, Cl A 33,900 1,610
Household International 483,322 20,964
Jefferson-Pilot 29,000 1,963
Mellon Bank 835,800 29,828
Merchantile Bancorp 37,200 2,174
Merrill Lynch 87,700 7,367
North Fork Bancorporation 235,900 5,028
PNC Bank 340,800 19,511
Providian Financial 44,900 4,308
State Street 35,000 2,669
Torchmark 500,200 16,694
U.S. Bancorp 212,800 6,916
UnionBanCal 171,200 6,329
Unum 210,600 11,333
Waddell & Reed Financial, Cl A 17 --
Washington Mutual 441,924 16,876
Wells Fargo 40,000 1,600
----------
320,154
----------
Health Care (11.4%)
Abbott Laboratories 496,100 22,418
Alza, Cl A* 271,200 9,678
American Home Products 289,000 16,654
Baxter International 354,800 22,907
Becton Dickinson 285,400 11,059
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Health Care--continued
Bristol-Myers Squibb 479,400 $ 32,899
Cardinal Health 307,353 18,556
Eli Lilly 211,200 15,088
Forest Laboratories* 153,700 7,320
Health Management Associates,
Cl A* 235,200 3,058
Healthsouth* 707,119 9,458
Johnson & Johnson 39,200 3,631
Medtronic 132,210 9,387
Merck 642,164 43,346
Pfizer 13,000 1,391
Schering Plough 154,700 6,971
Tenet Healthcare* 409,500 10,033
Warner Lambert 500,700 31,043
Watson Pharmaceuticals* 87,200 3,341
----------
278,238
----------
Technology (18.5%)
3Com* 115,900 3,166
Analog Devices* 246,100 9,459
Amgen* 50,000 3,162
Ascend Communications* 248,200 23,005
BMC Software* 119,700 5,918
Ceridian* 803,500 26,516
Cisco Systems* 472,100 51,459
Compaq Computer 239,100 5,664
Computer Sciences* 148,800 9,626
EMC* 245,600 24,468
Hewlett Packard 253,600 23,918
IBM 681,000 79,209
Intel 358,000 19,354
Lockheed Martin 171,100 6,919
Lucent Technologies 102,728 5,843
Microsoft* 761,800 61,468
Networks Associates* 442,853 6,504
Nortel Networks 205,600 15,420
Raytheon, Cl B 46,700 3,179
Sun Microsystems* 385,600 23,040
Tellabs* 56,000 3,276
Texas Instruments 149,200 16,319
Xerox 427,400 24,015
----------
450,907
----------
Transportation (0.8%)
AMR* 48,400 3,149
Burlington Northern Santa Fe 263,000 8,153
Delta Air Lines 128,200 7,355
Trans World Air* 14,400 511
----------
19,168
----------
Total Common Stocks
(Cost $1,713,451) 2,263,683
----------
37
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Capital Appreciation Fund--concluded
- --------------------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
Preferred Stocks (0.2%)
Finance (0.0%)
Conseco Financial Trust, CV to
0.9363 Shares* 5,500 $ 225
---------
Technology (0.2%)
Qwest Trends Trust, CV to
1.6394 Shares (B)* 65,000 4,656
---------
Total Preferred Stocks
(Cost $2,931) 4,881
---------
Convertible Bonds (1.1%)
Comcast,
CV to 1.425 Shares, Callable
07/09/99 @ 86.28 $59,800 5,285
3.350% 5/15/29
Elan Finance,
CV to 6.875 Shares, Callable
12/14/03 @ 61.66 (A) (B)
0.000%, 12/14/18 9,000 4,568
Healthsouth,
CV to 27.3 Shares, Callable
04/05/01 @ 101.300
3.250%, 04/01/03 2,500 2,106
Molten Metal Technology,
CV to 25.8065 Shares, Callable
05/01/99 @ 102.750 (B)
5.500%, 05/01/06 10,000 50
Network Associates,*
CV to 8.5380 Shares, Callable
02/13/03 @ 49.45 (A)
0.000%, 02/13/18 1,500 458
Network Associates,*
CV to 8.5380 Shares, Callable
02/13/03 @ 49.452 (A) (B)
0.000%, 02/13/18 10,000 3,050
Potomac Electric Power,
CV to 29.5 Shares, Callable
08/16/99 @ 94.37
5.000%, 09/01/02 4,740 4,550
Waste Mangement,
CV to 22.959 Shares, Callable
02/01/00 @ 101.60
4.000%, 02/01/02 3,000 3,889
WMX Technologies,
CV to 18.9065 Shares,
Callable 03/15/00 @ 84.303
2.000%, 01/24/05 2,800 3,003
---------
Total Convertible Bonds
(Cost $33,462) 26,959
---------
<PAGE>
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Cash Equivalent (0.3%)
Aim Liquid Assets Portfolio (C) $ 7,942 $ 7,942
----------
Total Cash Equivalent
(Cost $7,942) 7,942
----------
Repurchase Agreements (5.3%)
Deutsche Bank
4.83%, dated 05/28/99, matures
06/01/99, repurchase price
$65,793,297 (collateralized by
FHLMC obligation: total market
value $67,073,168) (D) 65,758 65,758
Greenwich
4.83%, dated 05/28/99, matures
06/01/99, repurchase price
$63,423,296 (collateralized by
various FNMA obligations: total
market value $64,661,178) (D) 63,389 63,389
----------
Total Repurchase Agreements
(Cost $129,147) 129,147
----------
Total Investments (99.7%)
(Cost $1,886,933) 2,432,612
----------
Other Assets and Liabilities, Net (0.3%) 7,450
----------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 118,328,583 outstanding shares of
beneficial interest 1,485,183
Fund shares of the Investor Class (unlimited
authorization -- no par value) based
on 18,826,950 outstanding shares of
beneficial interest 227,945
Fund shares of the Flex Class (unlimited
authorization -- no par value) based
on 10,016,114 outstanding shares of
beneficial interest 153,453
Undistributed net investment income 1,207
Accumulated net realized gain on investments 26,581
Net unrealized appreciation on investments 545,693
----------
Total Net Assets 100.0% $2,440,062
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 16.62
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 16.53
==========
Maximum Offering Price Per Share --
Investor Shares ($16.53 / 96.25%) $ 17.17
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 16.18
==========
(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 67.
38
<PAGE>
- --------------------------------------------------------------------------------
Emerging Markets Equity Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Foreign Common Stocks (86.6%)
Argentina (2.5%)
Capex, Cl A* 33,700 $ 169
Metrogas ADR 32,204 252
Quilmes Industrial 22,000 249
--------
670
--------
Brazil (6.7%)
Petrobras ADR 13,500 190
Souza Cruz 63,500 388
Tele Centro Sul
Participacoes ADR 5,200 281
Tele Norte Leste
Participacoes ADR 25,600 419
Telec De Sao Paulo 4,434,000 313
Unibanco 9,100 205
--------
1,796
--------
Chile (5.2%)
Administradora de Fondos de
Pensiones Provida ADR 29,500 601
Banco De A. Edwards 17,000 242
Quinenco ADR 25,000 263
Quimica Y Minera Chile ADR 8,300 289
--------
1,395
--------
Czech Republic (2.1%)
SPT Telecom* 33,000 548
--------
Greece (5.1%)
Alpha Credit Bank 900 61
Alpha Credit Bank Rights* 900 3
Hellenic Telecommunication
Organization 21,583 468
Panafon Hellenic Telecom* 33,310 830
--------
1,362
--------
Hong Kong (4.1%)
China Hong Kong Photo 790,000 110
Guangdong Kelon Electric
Holding 188,000 144
Li & Fung 104,000 245
Seoul Horizon Trust 17,000 157
Techtronic Industries 1,290,000 233
VTech Holdings 72,000 210
--------
1,099
--------
Hungary (3.1%)
Egis 3,925 80
Matav 60,000 336
North American Business
Industries* 17,500 252
Pick Szeged Rt GDR 144A 28,000 165
--------
833
--------
India (3.9%)
Hindalco Industries GDR 10,500 135
Mahanagar Telephone Nigam GDR 36,500 333
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
India--continued
Mahanagar Telephone Nigam ADR 6,500 $ 52
Videsh Sanchar Nigam GDR 45,000 512
--------
1,032
--------
Indonesia (3.1%)
Citra Marga Nusaphala, F 944,000 52
Indonesian Satellite ADR* 10,500 208
Modern Photo Film, F* 356,000 76
PT Indosat, F 96,000 196
PT Jaya Real Property, F* 754,000 81
PT Timbang Timah 200,000 220
--------
833
--------
Israel (5.4%)
Bank Leumi Le-Israel 152,000 287
Blue Square Stores* 13,100 210
ECI Telecommunications 14,900 516
Israel Chemicals 274,000 327
Nice Systems ADR* 4,000 102
--------
1,442
--------
Malaysia (0.7%) (1)
Aluminium Company of Malaysia 154,000 66
Petronas Dagangan 114,000 117
--------
183
--------
Mexico (11.9%)
Cemex, ADR 23,300 207
Grupo Carso, Cl A* 78,000 319
Grupo Continental 335,500 544
Grupo Financiero Banorte, Cl B* 216,935 277
Grupo Industrial Maseca ADR 17,000 161
Grupo Mexico, Cl B 65,000 228
Grupo Televisa GDR* 10,800 452
Herdez, Cl B* 518,000 155
Panamerican Beverages 12,500 290
Telefonos de Mexico ADR 6,800 544
--------
3,177
--------
Panama (0.3%)
Banco Latinamericano de
Exportaciones 2,800 80
--------
Philippines (3.2%)
Bacnotan Consolidated 160,000 81
First Philippine Holdings, Cl B 134,250 170
La Tondena Distillers 160,000 186
Manila Electric, Cl B 72,000 249
Queenbee Resourses Jollibee
Warrant, F* 310,000 176
--------
862
--------
Poland (1.1%)
Bank Handlowy 25,000 294
--------
39
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Emerging Markets Equity Fund--concluded
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Portugal (7.2%)
Banco Pinto & Sotto Mayor 34,200 $ 678
Cimpor-Cimentos de Portugal 15,720 419
Electricidade de Portugal 12,500 450
Portugal Telecom ADR 8,200 371
--------
1,918
--------
Singapore (0.7%)
Amtek Engineering 246,000 201
--------
South Africa (6.9%)
ABSA Group 56,235 257
Amalgamated Beverage 13,855 91
Kersaf Investments 73,516 294
Liberty Life Association of Africa 23,983 322
Nedcor 15,273 305
South African Breweries 73,616 590
--------
1,859
--------
South Korea (13.4%)
Dae Duck Electronics Rights* 11,865 39
Dae Duck Electronics 49,440 475
Hite Brewery* 11,000 273
Hite Brewery Rights* 1,508 15
Korea Electric Power ADR 10,000 171
Korea Telecom ADR* 4,000 127
Pohang Iron & Steel 5,000 390
Samsung* 27,000 421
Samsung Electronics 3,400 237
Samsung Electronics Rights* 272 3
Shinhan Bank 25,000 244
Sk Telecom 513 563
Sk Telecom ADR 43,560 621
--------
3,579
--------
Total Foreign Common Stocks
(Cost $24,910) 23,163
--------
Foreign Preferred Stocks (7.6%)
Brazil (7.6%)
Banco do Estada de Sao Paulo 5,540,000 238
Banco Itau 900,000 456
Brahma 600,000 306
Cemig 22,483,067 474
Fertilizantes Fosfatados 70,700,000 230
Gerdau 21,700,000 328
--------
Total Foreign Preferred Stocks
(Cost $2,387) 2,032
--------
<PAGE>
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Time Deposits (3.7%)
Cayman Time Deposit
4.375%, 06/01/99 $ 1,000 $ 1,000
--------
Total Time Deposits
(Cost $1,000) 1,000
--------
Total Investments (97.9%)
(Cost $28,297) 26,195
--------
Other Assets and Liabilities, Net (2.1%) 556
--------
Net Assets:
Fund shares of the Trust Class (unlimited
authorization -- no par value) based
on 3,293,687 outstanding shares of
beneficial interest 36,352
Undistributed net investment income 52
Accumulated net realized loss
on investments (7,538)
Net unrealized depreciation on investments (2,102)
Net unrealized depreciation on foreign
currency and translation of other
assets and liabilities in foreign
currency investments (13)
--------
Total Net Assets 100.0% $ 26,751
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 8.12
========
(1) The repatriation of proceeds received from the sale of these securities are
subject to a levy depending upon the length of time the position has been
held. This levy is applicable to securities purchased before February 15,
1999. The levy ranges from 30% to 0% and is based on the date the proceeds
are repatriated. As a result, these securities are being treated as illiquid
until September 1, 1999, when the levy is no longer in effect.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 67.
40
<PAGE>
- --------------------------------------------------------------------------------
Growth and Income Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (95.1%)
Basic Materials (4.5%)
Great Lakes Chemical 200,000 $ 9,037
International Paper 450,000 22,500
--------
31,537
--------
Capital Goods (8.6%)
Deere 300,000 11,419
Ingersoll-Rand 200,000 12,737
General Electric 125,000 12,711
Koninklijke Philips El 200,000 17,200
Textron 75,000 6,680
--------
60,747
--------
Communication Services (3.9%)
AT&T 262,500 14,569
SBC Communications 250,000 12,781
--------
27,350
--------
Consumer Cyclicals (9.5%)
Dayton Hudson 175,000 11,025
Federated Department Stores* 250,000 13,625
Ford Motor 50,000 2,853
Lowes 100,000 5,194
UAL* 100,000 6,725
Warnaco Group, Cl A 550,000 16,225
Walt Disney 400,000 11,650
--------
67,297
--------
Consumer Staples (13.1%)
Coca-Cola 125,000 8,539
Kellogg 500,000 17,344
Modis Professional Services* 574,000 8,467
PepsiCo 325,000 11,639
Philip Morris 400,000 15,425
Quaker Oats 200,000 13,212
Sara Lee 750,000 18,000
--------
92,626
--------
Energy (7.8%)
Exxon 200,000 15,975
Mobil 130,000 13,163
Texaco 150,000 9,825
Schlumberger 275,000 16,552
--------
55,515
--------
Financials (16.0%)
American International Group 115,000 13,146
Bank of America 200,000 12,937
BankBoston 225,000 10,659
Berkshire Hathaway Cl B* 7 16,632
Fannie Mae 200,000 13,600
<PAGE>
- --------------------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
Financials--continued
Morgan Stanley, Dean Witter,
Discover 75,000 $ 7,238
KeyCorp 500,000 17,375
Washington Mutual 300,000 11,456
Wells Fargo 250,000 10,000
--------
113,043
--------
Health Care (7.9%)
Aetna 200,000 18,163
Johnson & Johnson 200,000 18,525
Merck 100,000 6,750
Schering Plough 275,000 12,392
--------
55,830
--------
Technology (18.2%)
Adaptec* 650,000 20,070
Amgen* 250,000 15,813
Boeing 225,000 9,506
Cisco Systems* 100,000 10,900
Hewlett Packard 175,000 16,505
IBM 120,000 13,957
Intel 200,000 10,812
Microsoft* 150,000 12,103
Quantum* 500,000 9,906
Sun Microsystems* 150,000 8,962
--------
128,534
--------
Transportation (1.3%)
Canadian Pacific Limited 400,000 9,150
--------
Utilities (4.3%)
Duke Power 131,800 7,949
Midamerican Energy Holdings 241,500 8,151
Southern 500,000 14,187
--------
30,287
--------
Total Common Stocks
(Cost $494,744) 671,916
--------
Preferred Stock (0.5%)
Calenergy Cap Trust III,
CV to 1.0471 Shares* 75,000 3,478
--------
Total Preferred Stock
(Cost $3,253) 3,478
--------
Cash Equivalent (0.0%)
Aim Liquid Assets Portfolio (C) $ 39 39
--------
Total Cash Equivalent
(Cost $39) 39
--------
41
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Growth and Income Fund--concluded
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreement (3.3%)
JP Morgan
4.82%, dated 05/28/99, matures
06/01/99, repurchase price
$23,604,382 (collateralized by
various GNMA obligations: total
market value $23,870,492) (D) 23,595 $ 23,595
--------
Total Repurchase Agreement
(Cost $23,595) 23,595
--------
Total Investments (98.9%)
(Cost $521,631) 699,028
--------
Other Assets and Liabilities, Net (1.1%) 7,372
--------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization --
no par value) based on
39,415,860 outstanding shares 420,958
Fund Shares of Investor Class
(unlimited authorization --
no par value) based on 2,279,338
outstanding shares 28,578
Fund Shares of Flex Class
(unlimited authorization --
no par value) based on 2,183,767
outstanding shares 31,216
Undistributed net investment income 614
Accumulated net realized gain
on investments 47,637
Net unrealized appreciation on investments 177,397
--------
Total Net Assets 100.0% $706,400
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 16.09
========
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $ 16.21
========
Maximum Offer Price Per Share -- Investor
Shares ($16.21 / 96.25%) $ 16.84
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 16.10
========
(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 67.
42
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Foreign Common Stocks (96.2%)
Australia (4.0%)
AMP 767,600 $ 8,349
Broken Hill Proprietary 344,300 3,531
Leighton Holdings 1,031,813 3,936
National Australia Bank 382,100 6,182
QBE Insurance 502,267 1,965
--------
23,963
--------
Austria (1.0%)
Erste Bank* 107,400 5,949
--------
Brazil (0.6%)
Tele Norte Leste Participacoes ADR 231,400 3,789
--------
Canada (3.2%)
Nortel Networks 152,250 11,427
Royal Bank of Canada 55,200 2,530
Teleglobe 168,300 5,070
--------
19,027
--------
Denmark (0.7%)
Novo-Nordisk, Cl B 42,280 4,311
--------
Finland (2.8%)
Merita 1,283,700 7,606
Nokia ADR, Cl A 51,400 3,649
Sonera Group Oyj 303,100 5,929
--------
17,184
--------
France (13.4%)
Accor 22,500 5,521
Assurances Generales de France 102,800 5,098
Axa 73,985 8,529
Dexia France 53,380 7,417
Elf Aquitane 42,600 6,168
Equant* 58,400 4,813
Lafarge 60,750 5,476
Michelin, Cl B 96,450 4,254
SEITA 86,847 5,268
Societe Generale D'Entreprises 86,009 4,103
STMicroelectonics* 25,400 2,941
Suez Lyonnaise des Eaux 36,030 5,973
Technip 51,300 5,566
Vivendi 131,010 9,704
Vivendi Rights* 131,010 135
--------
80,966
--------
Germany (8.4%)
Allianz 10,210 2,791
Bayerische Vereinsbank 89,200 4,820
Mannesmann 71,670 9,794
Metallgesellschaft 340,150 6,121
MobilCom 8,220 647
Preussag 162,859 8,410
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Germany--continued
RWE 275,550 $ 12,317
Veba 102,300 5,838
--------
50,738
--------
Greece (2.9%)
Hellenic Telecom Organization 383,502 8,320
Panafon Hellenic Telecom* 358,490 8,929
--------
17,249
--------
Indonesia (0.1%)
Modern Photo Film, F* 1,440,000 307
--------
Ireland (3.0%)
Allied Irish Bank 326,600 4,321
Bank of Ireland 746,718 13,848
--------
18,169
--------
Israel (1.1%)
ECI Telecommunications 197,180 6,827
--------
Italy (5.7%)
Banca Intesa 688,000 3,503
Banca Intesa Rights* 688,000 15
Banca Nazionale del Lavoro* 1,361,150 4,189
ENI 1,028,800 6,429
Mediaset 321,250 2,604
San Paolo-IMI 596,100 8,053
Telecom Italia 920,000 9,482
--------
34,275
--------
Japan (9.6%)
Bank of Tokyo Mitsubishi 363,000 4,836
Canon 134,000 3,361
Eisai 148,300 2,750
Family Mart 64,700 2,687
Honda Motor 149,000 6,078
Nippon Telegraph & Telephone 276 2,679
NTT Mobile Communication
Network 201 10,927
Olympus Optical 413,000 5,095
Sumitomo Bank 337,000 4,055
Takefuji 74,700 6,543
TDK 78,400 6,693
Terumo 106,000 2,485
--------
58,189
--------
Netherlands (9.1%)
Ahold 150,500 5,252
ASM Lithography Holding* 81,000 3,570
ING Groep 158,203 8,458
KPN 259,310 12,525
Philips Electronics 90,850 8,151
TNT Post Group 291,700 7,334
43
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
International Equity Fund--concluded
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Netherlands--continued
Unique International 264,710 $ 6,048
Wolters Kluwer 95,200 3,829
--------
55,167
--------
New Zealand (1.6%)
Fletcher Challenge Building 1,877,298 2,915
Telecom of New Zealand 1,530,000 6,602
--------
9,517
--------
Norway (1.1%)
Petroleum Geo Services* 367,390 5,934
Petroleum Geo Services ADR* 45,900 740
--------
6,674
--------
Panama (0.7%)
Banco Latinamericano
de Exportaciones 150,400 4,277
--------
Portugal (1.9%)
Banco Espirito Santo 144,480 3,542
Banco Pinto & Sotto Mayor 127,244 2,522
BPI-SGPS 91,466 1,956
BPI-SGPS Rights* 68,600 46
Portugal Telecom ADR 72,760 3,292
--------
11,358
--------
Spain (2.5%)
Argentaria 390,000 8,743
Telefonica Bonus Rights* 133,100 129
Telefonica de Espana 133,100 6,384
--------
15,256
--------
Sweden (2.2%)
Castellum 406,600 3,643
Drott, Cl B 136,100 1,164
Electrolux 243,800 4,723
Swedish Match 1,107,700 4,034
--------
13,564
--------
United Kingdom (19.1%)
Allied Zurich 711,650 9,084
AstraZeneca Group 130,950 5,210
Bass 247,982 3,663
BP Amoco 395,300 7,081
British Energy 879,400 7,862
British Steel 2,855,000 6,066
Diageo 632,800 6,662
Gallaher Group 1,063,500 6,728
Glaxo Wellcome 137,000 3,849
Granada Group 231,400 4,742
Imperial Tobacco Group 624,700 7,032
J Sainsbury 1,040,900 6,335
Lloyds TSB Group 465,449 6,158
National Westminster Bank 270,013 6,200
Railtrack Group 310,300 6,364
Reckitt & Colman 436,300 4,873
<PAGE>
- --------------------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
United Kingdom--continued
Securicor 775,600 $ 6,965
Smithkline Beecham 463,058 6,044
South African Breweries* 548,630 4,408
--------
115,326
--------
United States (1.5%)
Global TeleSystems Group* 121,251 9,215
--------
Total Foreign Common Stocks
(Cost $544,016) 581,297
--------
Time Deposits (3.6%)
Cayman Time Deposit
4.375%, 06/01/99 $ 22,000 22,000
--------
Total Time Deposits
(Cost $22,000) 22,000
--------
Total Investments (99.8%)
(Cost $566,016) 603,297
--------
Other Assets and Liabilities, (Net 0.2%) 1,206
--------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 44,211,314 outstanding shares
of beneficial interest 513,228
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 1,094,862 outstanding shares
of beneficial interest 13,578
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 1,356,567 outstanding shares of
beneficial interest 18,315
Undistributed net investment income 1,810
Accumulated net realized gain on investments 20,388
Net unrealized appreciation on investments 37,281
Net unrealized depreciation on foreign currency
and translation of other assets and liabilities
in foreign currency investments (97)
--------
Total Net Assets 100.0% $604,503
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 12.97
========
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $ 12.89
========
Maximum Offering Per Share --
Investor Shares ($12.89 / 96.25%) $ 13.39
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 12.58
========
(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 67.
44
<PAGE>
- --------------------------------------------------------------------------------
International Equity Index Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Foreign Common Stocks (98.0%)
Australia (3.0%)
Amcor 18,995 $ 101
AMP 12,551 137
Brambles Industries 3,313 88
Broken Hill Proprietary 21,354 219
Coles Myer 30,235 158
CSR 43,040 115
Lend Lease 10,599 134
Mount Isa Mines Holdings 70,425 38
National Australia Bank 16,622 269
Newscorp 33,881 280
Pacific Dunlop 48,287 86
Rio Tinto 8,449 118
Telstra 61,083 302
Westpac Banking 36,880 252
WMC 33,829 125
------
2,422
------
Austria (1.2%)
Bank Austria 5,449 279
Generali Holding Vienna 519 96
Oest Elektrizatswirts, Cl A 2,027 265
OMV 1,907 159
Universale Bau 165 5
Wienerberger Baustoff 731 128
------
932
------
Belgium (1.5%)
Bekaert 162 68
Cie Maritime Belge 224 10
Delhaize Freres 1,000 86
Electrabel 660 203
Fortis CVG* 861 5
Fortis, Cl B 6,768 217
Groupe Bruxelles Lambert 673 117
KBC Bancassurance Holding 2,900 176
Petrofina 292 157
Solvay, Cl A 1,496 100
Tractebel 165 22
Union Miniere 952 35
------
1,196
------
Denmark (1.0%)
Carlsberg, Cl B 1,127 52
D/S 1912, Cl B 25 210
D/S Svendborg, Cl B 8 96
Danisco 1,610 77
Den Danske Bank 600 64
Novo-Nordisk, Cl B 1,270 130
Tele Danmark, Cl B 1,408 144
------
773
------
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Finland (1.5%)
Merita 12,800 $ 76
Nokia Oyj, Cl A 12,800 911
Outokumpu Oy Akt, Cl A 3,100 32
Sonera Group Oyj 2,600 51
UPM-Kymmene 3,500 103
------
1,173
------
France (9.9%)
Accor 508 125
Air Liquide 1,221 184
Alcatel Alsthom 2,122 252
Axa 3,588 414
Banque National Paris, Cl A 2,161 182
Bouygues 403 107
Canal Plus 343 99
Cap Gemini 788 114
Carrefour 2,569 337
Casino Guichard-Perrachon 806 77
Cie de Saint Gobain 1,143 179
Compagnie Financiere de Paribas 2,411 262
Elf Aquitane 2,882 417
Eridania Beghin-Say 775 113
France Telecom 10,924 838
Groupe Danone 839 231
L'Oreal 771 464
Lafarge 1,032 93
Legrand 370 77
Louis Vuitton-Moet Hennessy 984 274
Michelin, Cl B 2,803 124
Pernod-Ricard 1,228 82
Peugeot 565 84
Pinault-Printemps-Redoute 1,744 297
Promodes 231 151
Rhone Poulenc, Cl A 4,070 193
Sanofi-Synthelabo* 12,962 546
Schneider 1,765 105
SEITA 1,128 68
Skis Rossignol 2,648 39
Societe Generale 1,075 195
Suez Lyonnaise des Eaux 1,740 288
Total, Cl B 2,637 320
Unibail 798 108
Valeo 1,330 109
Vivendi 6,348 470
Vivendi Rights* 6,348 7
------
8,025
------
Germany (12.8%)
Aachener & Munchener Bete 810 87
Allianz 3,380 924
BASF 9,800 381
45
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
International Equity Index Fund--continued
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Germany--continued
Bayer 11,360 $ 442
Bayerische Vereinsbank 6,072 328
Beiersdorf 1,140 74
Daimler Chrysler 14,066 1,214
Degussa* 990 39
Deutsche Bank 8,670 452
Deutsche Telekom 32,100 1,281
Dresdner Bank Frankfurt 7,500 279
Heidelberger Zement 1,274 103
Hochtief 1,060 47
Karstadt 175 72
Linde 291 170
Lufthansa 7,330 158
Man Muenchen 2,960 87
Mannesmann 5,380 735
Merck KGaA 2,900 100
Metro 3,951 249
Muenchener Rueckvers* 1,110 188
Muenchener Rueckvers, Registered 2,510 429
Preussag 2,810 145
RWE 6,190 277
SAP 900 313
Schering 1,810 194
Siemens 8,340 561
Thyssen* 8,210 162
Veba 6,610 377
Viag 533 243
Volkswagen 4,610 286
-------
10,397
-------
Hong Kong (1.8%)
Cathay Pacific Airways 39,000 59
Cheung Kong Holdings 21,000 171
CLP Holdings 18,500 89
Hang Seng Bank 14,900 159
Hong Kong & China Gas 44,000 62
Hong Kong Telecommunications 100,800 233
Hutchison Whampoa 28,800 240
Johnson Electric Holdings 13,000 48
New World Development 22,000 54
Shangri-La Asia 46,000 49
Sun Hung Kai Properties 28,600 229
Swire Pacific 15,000 72
-------
1,465
-------
Ireland (0.7%)
Allied Irish Banks 23,400 309
CRH 16,100 275
-------
584
-------
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Italy (8.2%)
Alitalia* 37,439 $ 110
Assicurazioni Generali 19,000 676
Banca Commerciale Italiana 34,000 244
Banca Intesa 49,603 253
Benetton Group 67,500 132
Edison 11,000 96
ENI 155,500 972
Fiat 82,000 264
Fiat RNC 47,000 77
INA 78,000 182
Italgas 15,000 64
Mediaset 24,500 199
Mediobanca 10,500 119
Mondadori Editore 3,734 65
Montedison 132,500 118
Olivetti* 60,000 187
Parmalat Finanziaria 60,000 81
Pirelli 61,000 171
Riunione Adriatica di Sicurta 10,385 101
San Paolo-IMI 26,236 354
Sirti 16,000 80
Telecom Italia 67,500 696
Telecom Italia 16,000 87
Telecom Italia Mobile 30,000 101
Telecom Italia Mobile 128,500 756
Unicredito Italiano 93,000 438
Unione Immobiliare 109,000 51
-------
6,674
-------
Japan (34.3%)
Acom 2,100 149
Advantest 1,600 126
Ajinomoto 10,000 106
Aoki* 11,000 7
Aoyamma Trading 1,200 36
Asahi Bank 39,000 184
Asahi Breweries 10,000 126
Asahi Chemical Industry 24,000 129
Asahi Glass 24,000 155
Autobacs Seven 900 35
Bank of Tokyo - Mitsubishi 70,000 933
Bank of Yokohama 17,000 45
Bridgestone 12,000 313
Canon 15,000 376
Chiba Bank 17,000 67
Chiyoda* 5,000 10
Citizen Watch 11,000 81
Cosmo Oil 24,000 43
Chugai Pharmaceutical 2,000 22
Daiichi Pharmaceutical 4,000 64
Dai Nippon Printing 10,000 149
46
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Japan--continued
Daicel Chemical Industries 8,000 $ 26
Daiei* 25,000 72
Daikyo* 4,000 11
Daimaru 4,000 16
Daito Trust Construction 2,000 22
Daiwa House Industry 6,000 64
Daiwa Kosho Lease 17,000 65
Daiwa Securities 23,000 121
Denso 14,000 257
East Japan Railway 58 334
Ebara 11,000 123
Eisai 4,000 74
Fanuc 5,000 214
Fuji Bank 52,000 327
Fuji Photo Film 9,000 320
Fujita* 17,000 12
Fujita Kanko 9,000 90
Fujitsu 33,000 548
Furukawa Electric 24,000 94
Gakken* 5,000 7
Gunze 15,000 36
Hankyu 31,000 127
Hankyu Department Stores 6,000 40
Haseko* 15,000 12
Hazama* 20,000 16
Hitachi 63,000 461
Hokuriko Bank* 17,000 32
Honda Motor 15,000 612
Hoya 2,000 102
Industrial Bank of Japan 43,000 302
Isetan 4,000 36
Ito Yokado 6,000 356
Itochu* 55,000 124
Itoham Foods 16,000 67
Japan Airlines 39,000 121
Japan Energy 37,000 43
Japan Metals & Chemicals* 4,000 6
Japan Steel Works* 3,000 4
Joyo Bank 25,300 102
Jusco 7,000 132
Kajima 10,000 30
Kaken Pharmaceutical 4,000 24
Kamigumi 9,000 42
Kandenko 4,000 25
Kanebo* 10,000 16
Kansai Electric Power 18,200 372
Kao 9,000 246
Kawasaki Heavy Industries 22,000 49
Kawasaki Kisen Kaisha 10,000 22
Kawasaki Steel 48,000 85
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Japan--continued
Kinki Nippon Railway 42,000 $ 209
Kirin Brewery 19,000 217
Kissei Pharmacutical 1,000 21
Komatsu 22,000 130
Konami 600 20
Koyo Seiko 5,000 31
Kubota 33,000 96
Kumagai Gumi* 18,000 19
Kurabo Industries 7,000 8
Kyocera 4,000 209
Kyudenko 3,000 19
Maeda Road Contruction 4,000 27
Marubeni 16,000 33
Maruha 8,000 9
Marui 6,000 90
Matsushita Electric 30,000 540
Minebea 9,000 89
Misawa Homes 7,000 25
Mitsubishi 26,000 157
Mitsubishi Chemical 50,000 141
Mitsubishi Electric 42,000 133
Mitsubishi Estate 22,000 208
Mitsubishi Heavy Industries 49,000 190
Mitsubishi Materials 44,000 87
Mitsubishi Trust & Banking 19,000 171
Mitsui 35,000 223
Mitsui Fudosan 10,000 83
Mitsui O.S.K. Lines 19,000 43
Mitsui Trust & Banking 37,000 56
Mitsui 1,000 3
Mitsukoshi 17,000 59
Murata Manufacturing 4,000 219
Mycal 9,000 50
Namco 2,300 56
NEC 26,000 287
New Oji Paper 17,000 98
NGK Spark Plug 7,000 74
Nichido Fire & Marine Insurance 15,000 76
Niigata Engineering* 2,000 2
Nikon 6,000 78
Nippon Beet Sugar Manufacturing 6,000 11
Nippon Express 13,000 74
Nippon Oil 54,000 215
Nippon Paper Industries 20,000 98
Nippon Sharyo 5,000 14
Nippon Sheet Glass 13,000 43
Nippon Shinpan 6,000 19
Nippon Steel 102,000 213
Nippon Suisan Kaisha 6,000 9
Nippon Telegraph & Telephone 194 1,883
47
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
International Equity Index Fund--continued
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Japan--continued
Nippon Yusen 45,000 $ 181
Nishimatsu Construction 3,000 16
Nissan Motor 42,000 184
NKK* 125,000 97
Nomura Securities 26,000 258
Noritake 11,000 53
NSK 10,000 48
NTN 13,000 40
Obayashi 27,000 127
Odakyu Electric Railway 24,000 81
Okumura 5,000 20
Olympus Optical 10,000 123
Orient 9,000 25
Orix 1,000 79
Osaka Gas 38,000 123
Oyo 2,200 41
Penta-Ocean Construction* 12,000 20
Renown* 8,000 11
Rohm 2,000 260
Sakura Bank 58,000 196
Sanden 7,000 53
Sankyo 7,000 164
Sanrio 2,000 45
Sanyo Electric 47,000 168
Sato Kogyo* 20,000 17
Secom 1,000 95
Sega Enterprises 3,600 59
Seino Transportation 9,000 55
Seiyu* 6,000 36
Sekisui Chemical 9,000 55
Sekisui House 14,000 151
Sharp 20,000 221
Shimachu 1,000 23
Shimano 3,000 74
Shimizu 29,000 102
Shin-Etsu Chemical 12,000 370
Shiseido 5,000 74
Shizuoka Bank 12,000 125
Skylark 3,000 56
SMC 1,100 100
Snow Brand Milk Products 8,000 39
Sony 6,400 598
Sumitomo 7,000 48
Sumitomo Bank 46,000 553
Sumitomo Chemical 29,000 122
Sumitomo Electric 14,000 156
Sumitomo Marine & Fire Insurance 6,000 39
Sumitomo Metal* 76,000 99
Taisei 35,000 79
Taisho Pharmaceutical 4,000 127
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Japan--continued
Takara Shuzo 4,000 $ 27
Takashimaya 4,000 36
Takeda Chemical 20,000 883
Toa 10,000 17
Tobu Railway 26,000 74
Toei 10,000 42
Tohoku Electric Power 8,500 131
Tokai Bank 29,000 168
Tokio Marine & Fire Insurance 23,000 250
Tokyo Dome* 9,000 49
Tokyo Electric Power 21,000 455
Tokyo Electronics 3,000 165
Tokyo Gas 55,000 139
Tokyo Tatemono 7,000 15
Tokyotokeiba 21,000 34
Tokyu 23,000 59
Toppan Printing 14,000 156
Toray 32,000 155
Tostem 5,000 96
Toto 12,700 97
Toyo Engineering* 6,000 7
Trans Cosmos 300 14
Toyo Seikan Kaisha 6,300 119
Toyoda Automatic Loom 5,000 89
Toyota Motor 58,000 1,573
Ube Industries 31,000 58
Uny 4,000 60
Yamaha 6,000 61
Yamaichi Securities* 15,000 --
Yamanouchi Pharmaceutical 8,000 274
Yamato Transport 5,000 82
Yasuda Trust & Banking* 56,000 67
-------
27,798
-------
Malaysia (0.8%) (1)
Rothmans of Pall Mall 13,000 96
Telekom Malaysia 80,000 274
Tenaga Nasional 134,000 305
-------
675
-------
Netherlands (2.4%)
ABN Amro Holding 6,040 134
Aegon 1,947 157
Ahold 905 32
Akzo Nobel 1,180 49
Buhrmann 768 13
Heineken 1,599 89
ING Groep 4,204 225
KPN 2,386 115
Philips Electronics 2,517 226
48
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Netherlands--continued
Royal Dutch Petroleum 9,620 $ 536
TNT Post Group 2,086 52
Unilever 2,844 189
Wolters Kluwer 2,288 92
-------
1,909
-------
New Zealand (0.4%)
Carter Holt Harvey 101,800 117
Telecom of New Zealand 46,100 199
-------
316
-------
Norway (1.0%)
Bergesen, Cl A 4,850 73
Christiana Bank 30,500 123
Den Norske Bank, Cl B 34,600 120
Hafslund Nycomed, Cl B 2,200 9
Kvaerner* 2,500 41
Kvaerner Rights* 1,400 1
Norsk Hydro 6,525 257
Orkla, Cl A 8,600 136
Uni Storebrand* 9,987 67
-------
827
-------
Portugal (0.5%)
Banco Comercial Portugues 4,463 122
Electricidade de Portugal 7,440 135
Portugal Telecom 4,072 184
Soares Da Costa* 2,528 8
-------
449
-------
Singapore (0.8%)
Development Bank of Singapore `F' 2,000 21
Overseas Chinese Bank 27,000 211
Singapore International Airlines, `F' 28,000 250
Singapore Telecommunications 105,000 177
-------
659
-------
Spain (3.7%)
Argentaria 6,500 146
Autopistas CESA 9,104 116
Banco Bilbao Vizcaya 24,311 351
Banco Santander Central Hispano 28,592 597
Dragados Construccion 5,100 59
Endesa 10,000 213
Formento de Construcciones y
Contratas 900 52
Gas Natural 1,650 128
Iberdrola 11,159 160
Mapfre 3,800 79
Repsol 14,543 263
Sociedad General Aguas de
Barcelona 1,474 78
Tabacalera, Cl A 4,150 81
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Spain--continued
Telefonica de Espana 12,088 $ 580
Union Electrica Fenosa 4,282 56
------
2,959
------
Sweden (1.4%)
ABB, Cl A 4,900 67
Astra Zeneca 3,817 150
Diligentia 1,350 10
Drott, Cl B 1,400 12
Electrolux 3,300 64
Ericsson, Cl B 10,100 270
Forenings Sparbaken, Cl A 3,000 61
Granges 550 9
Hennes & Mauritz, Cl B 6,800 153
Skandinaviska Enskilda Banken 4,300 52
Skanska, Cl B 1,400 49
Svenska Cellulosa, Cl B 2,100 49
Svenska Handelsbanken, Cl A 1,600 58
Swedish Match 16,400 60
Volvo, Cl B 2,450 62
------
1,126
------
Switzerland (1.6%)
Adecco 50 26
Credit Suisse Group 690 120
Nestle 162 291
Novartis, Registered 144 209
Roche Holdings, Bearer 5 87
Roche Holdings, Genusschein 15 159
Swiss Re 35 66
Swisscom* 210 76
UBS 759 220
Zurich Allied 110 65
------
1,319
------
United Kingdom (9.5%)
Abbey National 7,124 147
Allied Zurich 8,498 108
Astra Zeneca Group 4,255 169
Associated British Foods 4,109 31
Barclays Bank 7,549 229
Bass 10,173 150
BG 18,252 100
Blue Circle Industries 12,219 76
Boots 7,687 101
BP Amoco 45,607 817
British American Tobacco 10,823 99
British Sky Broadcasting 9,683 92
British Telecommunications 30,208 504
Cable & Wireless 12,419 153
Cadbury Schweppes 22,149 150
Centrica* 20,906 42
49
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
International Equity Index Fund--concluded
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
United Kingdom--continued
CGU 8,305 $ 121
Diageo 18,459 194
General Electric 18,477 175
Glaxo Wellcome 15,591 438
Granada Group 7,191 147
Great Universal Stores 9,649 103
Halifax 19,993 258
Hanson 7,986 72
HSBC Holdings 8,842 296
HSBC Holdings 4,105 137
Imperial Chemical 8,890 98
Invensys 46,336 211
J Sainsbury 15,927 97
Kingfisher 6,674 84
Legal & General Group 37,656 110
Lloyds TSB Group 25,483 337
Marks & Spencer 22,886 145
National Power 8,684 68
Prudential 13,456 178
Rentokil Group 19,812 80
Reuters Group 8,867 123
Rio Tinto 10,039 147
RMC Group 4,283 57
Royal & Sun Alliance 10,696 88
Royal Bank of Scotland Group 4,518 96
Smithkline Beecham 24,544 320
Tesco 42,363 123
Unilever 14,448 127
Vodafone Group 14,771 282
------
7,680
------
Total Foreign Common Stocks
(Cost $65,129) 79,358
------
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Foreign Preferred Stocks (0.7%)
Australia (0.2%)
News Corporation 22,157 $ 169
-------
Germany (0.4%)
RWE 1,280 38
SAP 630 252
Volkswagen 1,970 70
-------
360
-------
Italy (0.1%)
Fiat 50,000 77
-------
Total Foreign Preferred Stocks
(Cost $438) 606
-------
Total Investments (98.7%)
(Cost $65,567) $79,964
=======
(1) The repatriation of proceeds received from the sale of these securities are
subject to a levy depending upon the length of time the position has been
held. This levy is applicable to securities purchased before February 15,
1999. The levy ranges from 30% to 0% and is based on the date the proceeds
are repatriated. As a result, these securities are being treated as illiquid
until September 1, 1999, when the levy is no longer in effect.
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 67.
50
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Life Vision Balanced Portfolio
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Equity Funds (58.7%)
STI Classic Capital Appreciation
Fund, Trust Class 1,028,515 $17,094
STI Classic Growth & Income
Fund, Trust Class 1,606,704 25,852
STI Classic Small Cap Growth
Stock Fund, Trust Class 604,900 8,807
-------
Total Equity Funds
(Cost $45,999) 51,753
-------
Fixed Income Funds (36.8%)
STI Classic Investment Grade
Bond Fund, Trust Class 1,694,503 17,555
STI Classic Short Term Bond
Fund, Trust Class 443,271 4,393
STI Classic U.S. Government
Securities Fund, Trust Class 1,025,059 10,538
-------
Total Fixed Income Funds
(Cost $33,196) 32,486
-------
Money Market Fund (4.5%)
STI Classic Prime Quality Money
Market Fund, Trust Class 3,958,202 3,958
-------
Total Money Market Fund
(Cost $3,958) 3,958
-------
Total Investments (100.0%)
(Cost $83,153) 88,197
-------
Other Assets and Liabilities, Net (0.0%) (9)
-------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization --
no par value) based on
8,167,633 outstanding shares 81,210
Undistributed net investment income 185
Accumulated net realized gain
on investments 1,749
Net unrealized appreciation on investments 5,044
-------
Total Net Assets 100.0% $88,188
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.80
=======
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 67.
51
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Life Vision Growth and Income Portfolio
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Equity Funds (69.7%)
STI Classic Capital Appreciation
Fund, Trust Class 260,334 $ 4,327
STI Classic Growth & Income
Fund, Trust Class 474,419 7,633
STI Classic Small Cap Growth
Stock Fund, Trust Class 229,699 3,345
-------
Total Equity Funds
(Cost $13,847) 15,305
-------
Fixed Income Funds (27.4%)
STI Classic Investment Grade
Bond Fund, Trust Class 321,684 3,333
STI Classic Short-Term Bond
Fund, Trust Class 112,229 1,112
STI Classic U.S. Government
Securities Fund, Trust Class 151,500 1,557
-------
Total Fixed Income Funds
(Cost $6,115) 6,002
-------
Money Market Fund (3.0%)
STI Classic Prime Quality Money
Market Fund, Trust Class 655,867 656
-------
Total Money Market Fund
(Cost $656) 656
-------
Total Investments (100.1%)
(Cost $20,618) 21,963
-------
Other Assets and Liabilities, Net (-0.1%) (13)
-------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization --
no par value) based on 2,124,432
outstanding shares 20,565
Undistributed net investment income 2
Accumulated net realized gain
on investments 38
Net unrealized appreciation on investments 1,345
------
Total Net Assets 100.0% $21,950
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 10.33
=======
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 67.
52
<PAGE>
- --------------------------------------------------------------------------------
Life Vision Maximum Growth Portfolio
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Equity Funds (90.1%)
STI Classic Capital Appreciation
Fund, Trust Class 334,348 $ 5,557
STI Classic Growth & Income
Fund, Trust Class 464,213 7,469
STI Classic Small Cap Growth
Stock Fund, Trust Class 262,172 3,817
-------
Total Equity Funds
(Cost $15,000) 16,843
-------
Money Market Fund (9.8%)
STI Classic Prime Quality Money
Market Fund, Trust Class 1,835,878 1,836
-------
Total Money Market Fund
(Cost $1,836) 1,836
-------
Total Investments (99.9%)
(Cost $16,836) 18,679
-------
Other Assets and Liabilities, Net (0.1%) 20
-------
Net Assets:
Fund Shares of Trust Class
(unlimited authorization --
no par value) based on
1,653,936 outstanding shares 16,789
Undistributed net investment income 5
Accumulated net realized gain
on investments 62
Net unrealized appreciation on investments 1,843
-------
Total Net Assets 100.0% $18,699
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 11.31
=======
The accompanying notes are an integral part of the financial statements.
For descriptions of abbreviations, please see page 67.
53
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Mid-Cap Equity Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (90.2%)
Basic Materials (1.1%)
Stillwater Mining* 100,800 $ 3,219
--------
Capital Goods (6.2%)
Allied Waste Industries* 438,700 8,171
Herman Miller 226,600 4,574
Watsco 263,800 5,095
--------
17,840
--------
Consumer Cyclicals (14.4%)
BJ's Wholesale Club* 211,300 5,494
Ethan Allen Interiors* 203,400 6,483
Family Dollar Stores 372,100 8,302
Just for Feet* 131,900 1,006
Men's Wearhouse* 364,850 9,315
Ralph Lauren* 212,200 4,377
Staff Leasing* 230,000 2,602
Tandy 48,600 4,009
--------
41,588
--------
Consumer Staples (17.9%)
Avis Rent A Car* 118,300 3,394
CBRL Group 96,900 1,678
Dial 64,000 2,000
Flowers Industries 247,600 5,509
Imax* 333,300 7,333
Interstate Bakeries 274,800 6,011
Keebler Foods* 76,200 2,553
McCormick 158,900 4,827
Nordstrom 53,100 1,885
Norrell 143,300 2,660
Papa John's International* 155,500 6,142
US Foodservice* 177,500 7,899
--------
51,891
--------
Energy (6.4%)
Anadarko Petroleum 84,800 3,180
Ensco International 115,900 2,057
Ensearch Exploration* 106,932 728
Global Marine* 144,800 2,036
Nabors Industries* 105,100 2,102
National-Oilwell* 51,300 619
Precision Drilling* 84,500 1,537
Smith International* 75,300 3,257
Tosco 35,000 895
Weatherford International* 65,000 2,145
--------
18,556
--------
Finance (11.4%)
Colonial Bancgroup 317,100 4,083
Dime Bancorp* 182,000 3,708
First Security 188,062 3,561
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Finance--continued
First Virginia Banks 73,700 $ 3,662
Hibernia, Cl A 298,500 4,254
North Fork Bancorporation 268,500 5,722
Peoples Heritage 207,700 3,894
Western Bancorp 96,700 3,934
--------
32,818
--------
Health Care (12.5%)
Acuson* 148,000 2,294
Centocor* 66,600 2,893
Forest Laboratories* 131,700 6,272
Jones Pharmaceuticals 100,300 3,567
Mylan Laboratories 218,700 5,550
Quintiles Transnational* 177,300 7,203
Renal Care* 129,700 3,599
Watson Pharmaceuticals* 121,300 4,647
--------
36,025
--------
Technology (19.4%)
ADC Telecommunications* 126,100 6,163
Ceridian* 167,900 5,541
Citrix Systems* 71,600 3,540
Fiserv* 158,850 5,957
Flextronics International* 69,200 3,460
Intuit* 35,900 2,921
New Era of Networks* 72,700 3,235
Nova* 127,430 2,835
Sanmina* 63,200 4,739
Sawtek* 165,800 6,570
Siebel Systems* 67,100 3,055
SkyTel Communications* 46,800 951
Teradyne* 136,800 7,225
--------
56,192
--------
Transportation (0.9%)
CNF Transportation 65,600 2,722
--------
Total Common Stocks
(Cost $232,453) 260,851
--------
Preferred Stocks (2.2%)
Communication Services (2.2%)
Adelphia Communications,
CV to 2.4555 shares* 16,700 3,673
Skytel Communications,
CV to 1.1111 shares* 83,900 2,569
-------
Total Preferred Stocks
(Cost $5,870) 6,242
--------
54
<PAGE>
- --------------------------------------------------------------------------------
Mid-Cap Equity Fund--concluded
- --------------------------------------------------------------------------------
Face Amount
(000) Value (000)
- --------------------------------------------------------------------------------
Convertible Bonds (3.4%)
Chiron,
CV to 34.59 shares, Callable
08/16/99 @ 95.08 (B)
1.900%, 11/17/00 $2,500 $ 2,422
Citrix Systems,
CV to 7.0306 shares, Callable
03/22/04 @ 45.96 (A) (B)*
0.000%, 03/22/19* 8,700 3,491
Sanmina,
CV to 11.278 shares, Callable
05/06/02 @ 101.70 (B)
4.250%, 05/01/04 1,750 1,925
Sepracor,
CV to 21.111 shares, Callable
02/18/01 @ 103.57
6.250%, 02/15/05 1,235 1,896
--------
Total Convertible Bonds
(Cost $9,406) 9,734
--------
Repurchase Agreement (1.9%)
Deutsche Bank
4.83%, dated 05/28/99,
matures 06/01/99, repurchase price
$5,633,784 (collateralized by
U.S. Treasury Notes:
total market value $5,743,770) (D) $5,631 5,631
--------
Total Repurchase Agreement
(Cost $5,631) 5,631
--------
Total Investments (97.7%)
(Cost $253,360) 282,458
--------
Other Assets and Liabilities, Net (2.3%) 6,631
--------
<PAGE>
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value) based
on 20,034,481 outstanding shares of
beneficial interest $214,160
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 1,538,670 outstanding shares of
beneficial interest 17,043
Fund shares of the Flex Class
(unlimited authorization -- no par value) based on
1,298,359 outstanding shares of
beneficial interest 16,595
Undistributed net investment income 3
Accumulated net realized gain on investments 12,190
Net unrealized appreciation on investments 29,098
--------
Total Net Assets 100.0% $289,089
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 12.68
========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 12.50
========
Maximum Offering Price Per Share --
Investor Shares ($12.50 / 96.25%) $ 12.99
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 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 67.
55
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Small Cap Equity Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (89.4%)
Basic Materials (11.0%)
Calgon Carbon 554,300 $ 3,153
Carpenter Technology 244,300 6,963
Commonwealth Industries 138,700 1,491
HB Fuller 18,700 1,187
Lilly Industries, Cl A 362,400 6,908
Quixote 182,000 2,343
Texas Industries 246,400 8,963
Wausau-Mosinee Paper 232,700 4,189
--------
35,197
--------
Capital Goods (13.4%)
Ameron 18,100 779
American Woodmark 126,200 4,654
Belden 149,200 3,516
Furon 195,900 3,575
Gerber Scientific 208,500 4,874
Kaman 249,500 3,306
Kaydon 65,400 2,179
Lindberg 172,700 2,008
LSI Industries 182,400 4,053
Pittway, Cl A 162,200 4,562
Precision Castparts 157,700 6,387
Smith (A.O.) 137,000 3,339
--------
43,232
--------
Consumer Cyclicals (19.5%)
Angelica 141,200 2,392
Bush Industries 396,300 5,870
Chemed 99,000 3,211
Harman International 220,900 9,802
Heilig-Meyers 979,600 6,796
Interface 1,168,900 9,059
K2 282,400 2,806
Midas 101,500 3,178
Oshkosh Truck 92,900 3,693
Pep Boys 173,400 3,273
Pillowtex 245,100 3,983
Sturm Ruger 177,200 1,982
Tag Heuer International ADR 349,500 3,189
Toro 102,600 3,444
--------
62,678
--------
Consumer Staples (20.3%)
Bowne & Company 298,700 5,003
Ingles Markets, Cl A 237,000 2,903
Norrell 825,800 15,329
Pittston Services Group 44,000 1,254
Polaroid 605,700 12,795
Smucker (J.M.), Cl B 58,200 1,018
Standard Register 228,300 6,792
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Consumer Staples--continued
Universal Foods 335,700 $ 7,700
WD-40 107,900 2,772
Wolverine World Wide 537,100 7,251
York Group 320,200 2,482
--------
65,299
--------
Energy (0.7%)
Fletcher Challenge Energy ADR 95,700 2,321
--------
Financials (8.3%)
Administradora de Fondos de
Pensiones Provida ADR 118,300 2,410
Banco Latinamericano
de Exportaciones 78,700 2,238
Chicago Title 107,000 3,939
Downey Financial 74,600 1,641
Klamath First Bancorp 130,100 2,065
Scottish Annuity & Life 326,500 3,183
Seacoast Banking of Florida 59,000 1,947
Stirling Cooke Brown Holdings 116,500 481
Student Loan 97,300 3,886
West Coast Bancorp 128,800 2,246
Westerfed Financial 159,200 2,657
--------
26,693
--------
Health Care (6.3%)
Block Drug, Cl A 70,502 2,626
Medeva PLC ADR 570,900 4,139
Mentor 651,600 10,385
Vital Signs 154,100 2,957
--------
20,107
--------
Technology (1.8%)
Innovex 222,300 2,973
Pioneer-Standard Electronics 289,000 2,836
--------
5,809
--------
Transportation (6.0%)
Bandag 176,200 6,068
Knightsbridge Tankers Limited 176,100 3,170
Pittston Burlington 26,000 281
Sea Containers 259,600 8,761
Western Star Truck Holdings 53,600 884
--------
19,164
--------
Utilities (2.1%)
NUI 182,000 4,527
United Water Resources 108,400 2,358
--------
6,885
--------
Total Common Stocks
(Cost $303,154) 287,385
--------
56
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreement (14.2%)
Deutsche Bank
4.83%, dated 05/28/99,
matures 06/01/99, repurchase price
$47,819,808 (collateralized by
FHLMC obligation: total market
value $46,771,137) (D) $ 45,795 $ 45,795
--------
Total Repurchase Agreement
(Cost $45,795) 45,795
--------
Total Investments (103.6%)
(Cost $348,949) 333,180
--------
Other Assets and Liabilities, Net (-3.6%) (11,731)
--------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 31,125,084 outstanding shares of
beneficial interest 356,281
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 2,016,491 outstanding shares of
beneficial interest 28,964
Undistributed net investment income 587
Accumulated net realized loss on investments (48,614)
Net unrealized depreciation on investments (15,769)
--------
Total Net Assets 100.0% $321,449
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 9.70
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 9.65
========
(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 67.
57
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Small Cap Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (99.6%)
Basic Materials (6.9%)
Alpha Industries* 23,000 $ 801
Astec Industries* 23,660 884
Bel Fuse, Cl A* 25,800 851
Boise Cascade 37,000 1,466
Centex Construction Products 23,020 826
Florida Rock Industries 10,000 399
Granite Construction 24,000 673
Jacobs Engineering Group* 10,300 383
LTV 45,000 276
NCI Building Systems* 47,570 1,201
Solutia 35,000 785
Stillwater Mining* 36,500 1,166
US Liquids* 20,900 376
U.S. Plastics Lumber 90,000 816
--------
10,903
--------
Capital Goods (15.1%)
AFC Cable Systems* 37,085 1,275
American Woodmark 18,000 664
Anaren Microwave* 38,400 823
Avondale Industries* 20,000 730
Borg-Warner Automotive 13,000 721
Briggs & Stratton 11,800 737
Concord Communications* 21,000 934
Corsair Communications* 20,000 91
Crane 15,000 451
DM Management* 25,000 403
Dycom Industry* 29,475 1,422
Elcor 19,130 772
Genesis Microchip* 58,100 1,053
Intervoice* 93,000 1,035
Kellstrom Industries* 14,000 254
Manitowoc 20,722 705
Miami Computer Supply* 39,550 744
Mobile Mini* 68,000 897
Motivepower Industries* 27,150 460
National R.V. Holdings* 31,470 808
Navistar International* 30,000 1,481
Simpson Manufacturing* 19,500 865
Sps Technologies* 12,070 511
Syncor International* 32,000 1,088
Transwitch* 27,500 1,272
UNIFAB International* 49,000 505
United Stationers* 33,000 619
Universal Corp. 15,000 392
USG 7,775 440
Varian Medical Associates* 15,000 282
Varlen 39,176 1,479
--------
23,913
--------
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Communication Services (3.1%)
Broadvision* 20,000 $ 1,040
Flashnet Communications* 11,000 217
Genesys Telecom Labs* 52,000 1,202
Gilat Communications Limited* 54,500 804
Polycom* 61,695 1,581
--------
4,844
--------
Consumer Cyclicals (25.1%)
American Eagle Outfitters* 27,000 1,102
Analytical Surveys* 25,500 625
Ann Taylor Stores* 26,500 1,144
Arvin Industries 23,000 903
Brinker International* 22,985 645
Buckle* 54,865 1,519
CDW Computer Centers* 19,000 826
Centex 18,000 667
Chicos* 50,000 1,134
Claire's Stores 35,000 1,024
Consolidated Graphics* 16,310 752
Cost Plus* 25,000 934
Craftmade International 46,640 624
Cutter & Buck* 25,760 763
DR Horton 75,800 1,289
Delia's* 19,000 252
Dollar Tree Stores* 29,000 975
Empi* 12,000 294
First Years 24,010 384
Foodmaker* 20,000 540
Fossil* 32,530 1,364
Gentex* 27,000 811
Jakks Pacific* 30,000 831
K-Swiss, Cl A 46,740 2,682
La-Z-Boy 26,800 533
Labor Ready* 29,500 1,051
Liberty Property Trust 25,270 610
Mohawk Industries* 36,115 1,052
Monaco Coach* 37,510 1,125
Movado Group 9,175 221
Oshkosh B'gosh, Cl A 16,655 327
Oshkosh Truck 6,000 238
Pre Paid Legal Services* 10,000 266
Programmer's Paradise* 8,000 86
Quiksilver* 34,000 969
Racing Champions* 64,000 1,096
Rare Hospitality International* 24,000 552
Salton/Maxim Housewares* 21,500 919
Southdown 24,900 1,578
Standard Pacific 54,145 711
Steven Madden Ltd* 81,365 870
Superior Industries International 27,000 673
Tarrant Apparel Group* 33,330 1,010
58
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Consumer Cyclicals--continued
Triumph Group* 23,395 $ 716
Urs* 28,325 697
Wet Seal, Cl A* 17,000 472
Winnebago Industries 54,000 891
Zale* 28,000 1,080
--------
39,827
--------
Consumer Staples (4.8%)
Canandaigua Wine, Cl A* 13,100 652
Earthgrains 20,000 469
Flowers Industries 44,600 992
Mail-Well* 65,000 963
Papa John's International* 38,900 1,537
Rent-A-Center* 35,000 903
Smithfield Foods* 43,000 1,148
Suiza Foods* 25,000 916
--------
7,580
--------
Energy (2.3%)
Eagle Geophysical* 1,280 4
Oceaneering International* 50,000 772
Santa Fe Snyder Corp* 80,000 680
Seacor Holdings* 3,000 149
Seitel* 40,000 632
Transocean Offshore 61,800 1,522
--------
3,759
--------
Financials (7.6%)
American Heritage 39,300 914
Amerin* 21,057 566
Annuity & Life Re Holdings 12,000 309
Bank of Commerce/San Diego 16,000 312
Corporate Executive Board* 17,000 498
Cullen/Frost Bankers 9,550 537
Dime Community Bancorp 35,200 779
Doral Financial 42,000 709
E.W. Blanch Holdings 16,900 1,082
Enhance Financial Services Group 30,000 587
Financial Security Assurance
Holdings 7,385 419
Fremont General 55,000 1,165
Investment Technology Group 16,880 748
NVR* 13,975 673
PFF Bancorp* 32,000 580
Pilgrim America Cap Corp* 19,600 390
Protective Life 38,000 1,375
Ryland Group 16,165 450
--------
12,093
--------
Health Care (8.2%)
Alpharma, Cl A 24,000 640
Barr Laboratories* 18,475 609
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Biomatrix* 28,000 $ 857
Capital Senior Living* 70,000 761
Colorado Medtech* 65,340 923
D&K Healthcare Resources* 24,400 576
Interim Services* 35,000 763
Ivax* 40,000 537
Laser Vision Centers* 15,000 855
Liposome* 78,000 1,116
Optical Coating Laboratories 3,000 195
Osteotech* 23,917 849
Rehabcare Group* 33,000 710
Resmed* 43,000 1,207
Roberts Pharmaceutical* 63,000 1,197
Steris* 25,000 414
Trigon Healthcare* 15,000 572
Varian 15,000 150
--------
12,931
--------
Technology (19.1%)
American Management Systems* 25,000 794
Business Objects ADR* 30,000 862
Checkpoint Software* 20,000 885
Ciber* 52,230 1,120
Commscope* 50,000 1,313
Computer Network Technology* 29,000 732
Cordant Technologies 18,000 873
Cybex Computer Products* 61,944 1,405
Electronic Arts* 16,000 783
Fair Isaac 5,000 164
Flextronics International* 7,000 350
4front Technologies* 60,000 600
Henry (Jack) & Associates 7,000 247
Herley Industries* 52,000 673
Hyperion Telecommunications,
Cl A* 60,000 1,013
Insight Enterprises* 38,557 978
Javelin Systems* 60,000 776
Kronos* 29,200 1,081
Landmark Systems* 24,000 231
Mastech* 62,900 1,207
Metamor Worldwide* 27,000 739
Micros Systems* 40,000 1,250
Overland Data* 65,000 423
Pinnacle Systems* 19,000 984
Perot Systems, Cl A* 14,800 401
Powerhouse Technologies* 15,000 278
Progress Software* 66,930 1,744
Quantum* 20,000 396
Sunquest* 44,000 578
59
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Small Cap Growth Stock Fund--concluded
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Technology--continued
Sybase* 55,000 $ 533
Sykes Enterprises* 10,435 325
T-HQ* 46,290 1,091
Talk.com* 25,000 259
Technomatrix Technologies* 51,000 854
Timberline Software 54,000 918
USWeb* 25,000 634
Varian Semiconductor Equipment* 15,000 187
Xircom* 52,000 1,313
Zomax* 41,000 1,081
-------
30,075
-------
Transportation (6.2%)
Aeroflex* 61,000 888
Alaska Airgroup* 10,000 415
American Freightways* 82,500 1,444
Amtran Inc* 14,525 341
Atlas Air* 48,000 1,290
Eagle USA Airfreight* 9,000 424
Forward Air* 10,000 274
Frontier Airlines* 62,000 961
Landstar System* 10,000 376
Skywest 38,680 899
Swift Transportation* 45,000 823
USFreightways 43,300 1,706
-------
9,841
-------
Utilities (1.2%)
El Paso Electric* 80,000 685
Kinder Morgan Energy Partners 18,000 671
Public Service of North Carolina 5,000 145
Public Service of New Mexico 20,000 415
-------
1,916
-------
Total Common Stocks
(Cost $144,302) 157,682
-------
Repurchase Agreement (2.9%)
Morgan Stanley
4.80%, dated 05/28/99,
matures 06/01/99, repurchase price
$4,658,357 (collateralized by various
FNMA obligations: total market
value $4,767,582) (D) $ 4,656 4,656
-------
Total Repurchase Agreement
(Cost $4,656) 4,656
-------
Total Investments (102.5%)
(Cost $148,958) 162,338
-------
Other Assets and Liabilities, Net (-2.5%) (3,890)
-------
<PAGE>
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 10,464,063 outstanding shares of
beneficial interest $137,985
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 425,752 outstanding shares of
beneficial interest 6,037
Accumulated net realized gain on investments 1,046
Net unrealized appreciation on investments 13,380
--------
Total Net Assets 100.0% $158,448
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 14.55
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 14.46
========
(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 67.
60
<PAGE>
- --------------------------------------------------------------------------------
Sunbelt Equity Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (98.0%)
Capital Goods (11.9%)
Artesyn Technologies* 122,296 $ 2,584
Blount International 133,355 3,717
Kellstrom Industries* 169,924 3,080
Maverick Tube* 175,995 2,277
Miller Industries* 435,896 2,098
National Service Industries 41,874 1,541
Palm Harbor Homes* 150,106 3,227
Sensormatic Electronics 104,358 1,396
Tristar Aerospace* 80,923 749
UNIFAB International* 331,835 3,422
Watsco 106,090 2,049
--------
26,140
--------
Communication Services (3.7%)
Alltel 40,176 2,880
MCI WorldCom* 39,356 3,399
Superior TeleCom 58,516 1,734
--------
8,013
--------
Consumer Cyclicals (17.8%)
AHL Services* 118,826 3,149
Central Parking 40,931 1,330
Circuit City 58,725 4,217
Dollar General 75,487 2,005
Family Dollar Stores 124,318 2,774
Lowe's Companies 63,365 3,291
Modis Professional Services* 189,582 2,796
O'Charleys* 157,453 2,057
Pier 1 Imports 156,478 1,731
Policy Management Systems* 66,492 2,419
Quest Education* 211,639 2,381
Rare Hospitality International* 77,431 1,781
Tandy 64,310 5,306
Tractor Supply* 44,927 1,337
Trex* 48,519 1,064
V.F 27,688 1,274
--------
38,912
--------
Consumer Staples (6.1%)
Flowers Industries 108,415 2,412
Outback Steakhouse* 113,665 4,078
Sonic* 247,259 6,807
--------
13,297
--------
Energy (18.4%)
Anadarko Petroleum 117,354 4,401
BJ Services* 179,297 4,942
Core Laboratories N.V.* 245,141 3,830
Diamond Offshore Drilling 128,263 3,495
Global Industries* 662,783 7,373
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Energy--continued
Nuevo Energy* 140,422 $ 2,141
Oceaneering International* 111,937 1,728
Stone Energy* 185,441 6,989
Transocean Offshore 124,176 3,058
World Fuel Services 174,223 2,254
--------
40,211
--------
Financials (15.9%)
Capital One Financial 26,774 4,035
CCB Financial 60,942 3,287
Cullen/Frost Bankers 26,492 1,490
Fairfield Communities* 565,607 8,979
First Tennessee National 58,712 2,418
Nova* 272,816 6,070
Profit Recovery Group
International* 146,974 5,410
Texas Regional Bancshares, Cl A 42,200 1,145
Triad Guaranty* 129,583 1,976
--------
34,810
--------
Health Care (3.1%)
Cryolife* 274,510 3,397
Orthodontic Centers of America* 66,962 808
Rexall Sundown* 145,521 2,483
--------
6,688
--------
Technology (17.7%)
Acxiom* 155,822 4,207
Benchmark Electronics* 214,785 6,444
Cybex Computer Products* 127,104 2,884
Datastream Systems* 188,213 2,282
Dell Computer* 65,224 2,246
National Data 48,242 2,270
National Instruments* 29,351 1,117
SCB Computer Technology* 795,788 5,123
Scientific-Atlanta 65,225 2,303
Sterling Commerce* 33,867 1,317
Sterling Software* 53,374 1,298
Sykes Enterprises* 160,921 5,009
Texas Instruments 20,939 2,290
--------
38,790
--------
Transportation (3.4%)
Covenant Transportation, Cl A* 114,180 1,370
Hunt J B Transportation Services 93,873 1,584
Union Pacific 48,129 2,746
USA Truck* 186,915 1,706
--------
7,406
--------
Total Common Stocks
(Cost $166,276) 214,267
--------
61
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Sunbelt Equity Fund--concluded
- --------------------------------------------------------------------------------
Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreement (0.1%)
Deutsche Bank
4.78%, dated 05/28/99,
matures 06/01/99, repurchase price
$319,543 (collateralized by
various U.S. Treasury obligations:
total market value
$326,219) (D) $319 $ 319
--------
Total Repurchase Agreement
(Cost $319) 319
--------
Total Investments (98.1%)
(Cost $166,595) 214,586
--------
Other Assets and Liabilities, Net (1.9%) 3,973
--------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value) based
on 17,784,188 outstanding shares of
beneficial interest 166,929
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 1,574,615 outstanding shares of
beneficial interest 14,344
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 416,394 outstanding shares of
beneficial interest 5,998
Accumulated net realized loss on investments (16,703)
Net unrealized appreciation on investments 47,991
--------
Total Net Assets 100.0% $218,559
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 11.09
========
Net Asset Value and Redemption
Price Per Share -- Investor Shares $ 10.76
========
Maximum Offering Price Per Share --
Investor Shares ($10.76 / 96.25%) $ 11.18
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 10.55
========
(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 67.
62
<PAGE>
- --------------------------------------------------------------------------------
Tax Sensitive Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (93.7%)
Basic Materials (2.5%)
Alcoa 57,773 $ 3,178
E. I. DuPont de Nemours 64,744 4,237
-------
7,415
-------
Capital Goods (8.6%)
Applied Materials* 88,967 4,893
Caterpillar 88,957 4,882
Delphi Automotive Systems 15,267 300
General Electric 80,766 8,213
Minnesota Mining & Manufacturing 42,062 3,607
United Technologies 63,618 3,948
-------
25,843
-------
Communication Services (6.2%)
AT&T 103,622 5,751
Bell Atlantic 25,476 1,395
BellSouth 31,319 1,478
GTE 43,773 2,760
MCI WorldCom* 27,295 2,358
SBC Communications 39,059 1,997
Sprint 23,376 2,636
-------
18,375
-------
Consumer Cyclicals (8.6%)
Dollar General 137,467 3,651
Ford Motor 35,064 2,001
Gap 72,295 4,523
General Motors 21,844 1,507
Home Depot 58,474 3,326
Office Depot* 98,208 2,050
Service International 109,167 2,095
Wal-Mart Stores 131,383 5,600
Walt Disney 35,447 1,032
-------
25,785
-------
Consumer Staples (7.9%)
Coca-Cola 75,979 5,190
Gillette 52,774 2,692
McDonald's 42,707 1,644
Paychex 74,346 2,203
PepsiCo 69,874 2,502
Philip Morris 110,504 4,261
Procter & Gamble 53,764 5,020
-------
23,512
-------
Energy (6.6%)
Chevron 32,177 2,982
Exxon 71,855 5,739
Halliburton 83,077 3,437
Mobil 24,985 2,530
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Energy--continued
Royal Dutch Petroleum 37,010 $ 2,093
Schlumberger 50,696 3,051
-------
19,832
-------
Financials (15.8%)
American Express 30,914 3,746
American International Group 32,334 3,696
Bank of America 46,356 2,999
Bank One 68,298 3,863
Charles Schwab 52,251 5,529
Chase Manhattan Bank 41,776 3,029
Citigroup 66,640 4,415
FNMA 77,975 5,302
Household International 137,625 5,970
JP Morgan 40,206 5,601
Wells Fargo 82,150 3,286
-------
47,436
-------
Health Care (11.5%)
Abbott Laboratories 38,921 1,759
American Home Products 39,026 2,249
Bristol-Myers Squibb 52,745 3,620
Eli Lilly 28,030 2,002
Healthsouth* 164,032 2,194
Johnson & Johnson 38,481 3,564
Medtronic 56,690 4,025
Merck 83,958 5,667
Pfizer 44,537 4,765
Schering Plough 37,119 1,673
Warner Lambert 48,834 3,028
-------
34,546
-------
Technology (26.0%)
Allied Signal 102,274 5,938
Cisco Systems* 78,243 8,529
Computer Associates 97,902 4,632
Compuware* 221,437 6,878
Dell Computer* 136,541 4,702
EMC* 52,150 5,195
Hewlett Packard 31,302 2,952
IBM 62,790 7,303
Intel 133,336 7,209
Linear Technology 49,326 2,614
Lucent Technologies 71,226 4,051
Microsoft* 129,623 10,459
Monsanto 58,511 2,428
Oracle* 40,000 993
Texas Instruments 36,414 3,983
-------
77,866
-------
Total Common Stocks
(Cost $220,279) 280,610
-------
63
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Tax Sensitive Growth Stock Fund--concluded
- --------------------------------------------------------------------------------
Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreement (8.6%)
Morgan Stanley
4.80%, dated 05/28/99,
matures 06/01/99, repurchase price
$25,723,692 (collateralized by
FNMA and FHLMC obligations:
total market value
$ 26,240,236) (D) $ 25,710 $ 25,710
--------
Total Repurchase Agreement
(Cost $25,710) 25,710
--------
Total Investments (102.3%)
(Cost $245,989) $306,320
--------
Other Assets and Liabilities, Net (-2.3%) (6,902)
--------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 7,462,354 outstanding shares of
beneficial interest 158,983
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 2,541,837 outstanding shares of
beneficial interest 75,210
Accumulated net realized gain on investments 4,894
Net unrealized appreciation on investments 60,331
--------
Total Net Assets 100.0% $299,418
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 29.96
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 29.85
========
(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 67.
64
<PAGE>
- --------------------------------------------------------------------------------
Value Income Stock Fund
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks (92.0%)
Basic Materials (10.7%)
Allegheny Teledyne 1,143,400 $ 23,368
B.F. Goodrich 663,400 26,868
Boise Cascade 708,000 28,054
Consolidated Papers 477,500 13,251
DuPont (EI) de Nemours 297,800 19,487
Engelhard 737,300 14,930
Hercules 532,800 18,615
Nalco Chemical 403,400 13,514
Reynolds Metals 307,000 16,329
Sonoco Products 751,030 18,776
Witco Chemical 277,800 4,861
Worthington Industries 776,800 9,953
---------
208,006
---------
Capital Goods (14.7%)
Cooper Industries 646,100 32,022
Corning 157,600 8,609
Crown Cork & Seal 616,300 19,336
Dana 385,000 19,876
Emerson Electric 430,700 27,511
Harris 427,000 16,146
Hubbell, Cl B 394,300 16,511
Minnesota Mining &
Manufacturing 258,800 22,192
National Service Industries 575,700 21,193
Northrop Grumman 491,000 33,142
Pall 855,400 17,161
Raytheon, Cl B 201,500 13,715
Tenneco 686,900 16,013
Thomas & Betts 557,900 23,885
---------
287,312
---------
Communication Services (3.3%)
Alltel 206,700 14,818
GTE 781,600 49,290
---------
64,108
---------
Consumer Cyclicals (11.1%)
Albertson's 399,200 21,357
American Greetings, Cl A 516,200 14,776
Genuine Parts 607,600 20,468
H & R Block 648,900 31,269
J.C. Penney 757,300 39,143
Masco 1,070,700 30,582
Ryder 580,000 13,920
Stanley Works 656,300 21,371
TRW 459,000 22,979
---------
215,865
---------
<PAGE>
- --------------------------------------------------------------------------------
Shares Value (000)
- --------------------------------------------------------------------------------
Consumer Staples (14.0%)
Bestfoods 610,800 $ 30,540
ConAgra 1,526,300 39,779
Dean Foods 508,400 19,065
Flowers Industries 230,900 5,137
Food Lion, Cl A 894,000 9,890
Fort James Corp. 388,300 14,221
Fortune Brands 526,400 21,517
H.J. Heinz 407,000 19,663
International Flavors & Fragrances 697,700 28,693
Kimberly Clark 632,200 37,102
McCormick 467,800 14,209
Newell Rubbermaid 479,400 19,416
Wallace Computer Services 578,400 13,267
---------
272,499
---------
Energy (6.5%)
Atlantic Richfield 281,300 23,541
Baker Hughes 488,700 15,211
Kerr-McGee 566,700 26,352
Murphy Oil 481,400 23,619
Texaco 234,800 15,379
Unocal 563,000 22,379
---------
126,481
---------
Financials (17.1%)
American Financial Group 402,300 13,578
American General 275,700 19,919
Bank of America 626,200 40,507
Bank One 669,700 37,880
BankBoston 560,600 26,558
Cigna 306,700 28,600
First American of Tennessee 369,700 15,088
Hibernia, Cl A 838,800 11,953
KeyCorp 721,900 25,086
Paine Webber Group 281,800 13,245
PNC Bank 489,600 28,030
Safeco 428,600 18,832
Summit Bancorp 553,000 22,638
Transamerica 252,900 18,557
Union Planters 330,664 13,661
---------
334,132
---------
Health Care (8.1%)
Abbott Laboratories 863,600 39,024
American Home Products 684,700 39,456
Baxter International 749,100 48,364
Bristol-Myers Squibb 286,100 19,634
Pharmacia Upjohn ADR 212,800 11,797
---------
158,275
---------
65
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
Value Income Stock Fund--concluded
- --------------------------------------------------------------------------------
Shares/Face
Amount (000) Value (000)
- --------------------------------------------------------------------------------
Technology (3.1%)
EG&G 693,500 $ 20,588
Xerox 731,000 41,073
---------
61,661
---------
Utilities (3.4%)
Consolidated Natural Gas 213,100 12,666
GPU 429,900 18,728
Questar 843,700 16,083
Scana 733,100 19,565
---------
67,042
---------
Total Common Stocks
(Cost $1,667,740) 1,795,381
---------
Repurchase Agreements (7.5%)
Deutsche Bank
4.83%, dated 05/28/99,
matures 06/01/99, repurchase
price $76,618,190 (collateralized
by FHLMC obligation: total
market value
$78,108,636) (D) $ 76,577 76,577
Greenwich
4.83%, dated 05/28/99,
matures 06/01/99, repurchase
price $70,371,544 (collateralized
by various FNMA obligations:
total market value
$71,740,804) (D) 70,334 70,334
---------
Total Repurchase Agreements
(Cost $146,911) 146,911
---------
Total Investments (99.5%)
(Cost $1,814,651) 1,942,292
---------
Other Assets and Liabilities, Net (0.5%) 8,971
---------
<PAGE>
- --------------------------------------------------------------------------------
Value (000)
- --------------------------------------------------------------------------------
Net Assets:
Fund shares of the Trust Class
(unlimited authorization -- no par value)
based on 123,726,029 outstanding shares
of beneficial interest $1,337,495
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 15,170,194 outstanding shares
of beneficial interest 171,095
Fund shares of the Flex Class
(unlimited authorization -- no par value)
based on 13,167,127 outstanding shares
of beneficial interest 173,568
Undistributed net investment income 4,654
Accumulated net realized gain
on investments 136,810
Net unrealized appreciation on investments 127,641
----------
Total Net Assets 100.0% $1,951,263
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $ 12.85
==========
Net Asset Value and Redemption Price
Per Share -- Investor Shares $ 12.81
==========
Maximum Offering Price Per Share --
Investor Shares ($12.81 / 96.25%) $ 13.31
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $ 12.68
==========
(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 67.
66
<PAGE>
- --------------------------------------------------------------------------------
Key to Abbreviations used in
the Statement of Net Assets
ADR American Depository Receipt
Cl Class
CV Convertible Security
F Foreign Registry Shares
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GDR Global Depository Receipt
GNMA Government National Mortgage Association
MTN Medium Term Note
PLC Public Limited Corporation
* Non-income producing security
(A) Zero Coupon Bond
(B) Private Placement Security
(C) Adjustable rate security. The rate reported on the
Statement of Net Assets is the rate in effect on
May 31, 1999.
(D) Tri-Party Repurchase Agreement
67
<PAGE>
This page left intentionally blank
68
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (000)
- -----------------------------------------------------------------------------------------------------
STI CLASSIC INTERNATIONAL EQUITY INDEX FUND For The Year Ended May 31, 1999
-------------
International
Equity Index
Fund
-------------
<S> <C>
Assets:
Investments at Market Value (Cost $65,567) ..................................... $ 79,964
Cash and Foreign Currency ...................................................... 15,055
Receivable for Investment Securities Sold ...................................... 11
Receivable for Portfolio Shares Purchased ...................................... 42
Other Assets ................................................................... 396
--------
Total Assets ................................................................... 95,468
--------
Liabilities:
Payable for Investment Securities Purchased .................................... 14,299
Payable for Portfolio Shares Redeemed .......................................... 21
Accrued Expenses ............................................................... 71
Other Liabilities .............................................................. 87
--------
Total Liabilities .............................................................. 14,478
--------
Net Assets:
Fund Shares of the Trust Class (unlimited authorization -- no par value)
based on 6,315,153 outstanding shares of beneficial interest ............... 61,695
Fund Shares of the Investor Class (unlimited authorization -- no par value)
based on 419,449 outstanding shares of beneficial interest ................. 3,827
Fund Shares of the Flex Class (unlimited authorization -- no par value)
based on 124,930 outstanding shares of beneficial interest ................. 1,410
Distributions in excess of net investment income ............................... (365)
Accumulated net realized gain on investments ................................... 119
Net unrealized appreciation on investments ..................................... 14,397
Net unrealized depreciation foreign currency and translation of other assets and
liabilities in foreign currency investments .................................. (93)
--------
Total Net Assets ............................................................... $ 80,990
========
Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares .......... $ 11.82
========
Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares ....... $ 11.70
========
Maximum Offering Price Per Share -- Investor Shares ($11.70 / 96.25%) ............. $ 12.16
========
Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) ....... $ 11.73
=======-
</TABLE>
(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.
69
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Capital
Balanced Appreciation
Fund Fund
----------- -----------
06/01/98- 06/01/98-
05/31/99 05/31/99
----------- -----------
<S> <C> <C>
Income:
Interest Income ............................................................ $ 6,819 $ 21,689
Dividend Income ............................................................ 1,651 8,356
Less: Foreign Taxes Withheld ............................................... -- --
--------- ---------
Total Investment Income .................................................... 8,470 30,045
--------- ---------
Expenses:
Investment Advisory Fees ................................................... 2,546 23,291
Less: Investment Advisory Fees Waived/Reimbursed ........................... (248) (1,878)
Administrator Fees ......................................................... 208 1,575
Administrator Fees Waived .................................................. -- --
Transfer Agent Fees -- Trust Shares ........................................ 14 16
Transfer Agent Fees -- Investor Shares ..................................... 11 46
Transfer Agent Fees -- Flex Shares ......................................... 42 153
Transfer Agent Out of Pocket Fees .......................................... 26 208
Printing Expenses .......................................................... 15 103
Custody Fees ............................................................... 6 53
Professional Fees .......................................................... 13 111
Trustee Fees ............................................................... 3 25
Registration Fees .......................................................... 7 131
Distribution Fees -- Trust Shares .......................................... -- --
Less: Distribution Fees Waived -- Trust Shares ............................. -- --
Distribution Fees -- Investor Shares ....................................... 32 1,916
Less: Distribution Fees Waived -- Investor Shares .......................... (7) (127)
Distribution Fees -- Flex Shares ........................................... 441 1,276
Less: Distribution Fees Waived -- Flex Shares .............................. (14) --
Insurance and Other Fees ................................................... 6 59
Amortization of Deferred Organization Costs ................................ -- --
--------- ---------
Total Expenses ............................................................. 3,101 26,958
--------- ---------
Net Investment Income ...................................................... 5,369 3,087
--------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ..................................... -- --
Net Realized Gain (Loss) on Securities Sold ................................ 9,690 166,440
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 ........ 11,063 151,103
--------- ---------
Total Net Realized and Unrealized Gain (Loss) on Investments ............... 20,753 317,543
--------- ---------
Net Increase (Decrease) in Net Assets from Operations ...................... $ 26,122 $ 320,630
========= =========
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
70
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Emerging Growth and International
Markets Income Equity
Equity Fund Fund Fund
----------- ---------------------- -----------
06/01/98- 12/01/98- 12/01/97- 06/01/98-
05/31/99 05/31/99 11/30/98 05/31/99
----------- ---------------------- -----------
<S> <C> <C> <C> <C>
Income:
Interest Income ............................................................ $ 120 $ 899 $ 1,915 $ 1,783
Dividend Income ............................................................ 875 4,590 8,628 12,210
Less: Foreign Taxes Withheld ............................................... (81) -- -- (822)
--------- --------- --------- ---------
Total Investment Income .................................................... 914 5,489 10,543 13,171
--------- --------- --------- ---------
Expenses:
Investment Advisory Fees ................................................... 354 2,558 4,749 7,655
Less: Investment Advisory Fees Waived/Reimbursed ........................... (11) -- -- (308)
Administrator Fees ......................................................... 21 493 950 476
Administrator Fees Waived .................................................. -- -- -- --
Transfer Agent Fees -- Trust Shares ........................................ 16 165 317 14
Transfer Agent Fees -- Investor Shares ..................................... -- 2 3 15
Transfer Agent Fees -- Flex Shares ......................................... -- -- -- 65
Transfer Agent Out of Pocket Fees .......................................... 2 2 2 82
Printing Expenses .......................................................... -- 23 39 75
Custody Fees ............................................................... 42 122 233 856
Professional Fees .......................................................... -- 95 70 44
Trustee Fees ............................................................... -- 5 10 10
Registration Fees .......................................................... -- 19 42 43
Distribution Fees -- Trust Shares .......................................... -- 1,170 1,116 --
Less: Distribution Fees Waived -- Trust Shares ............................. -- (872) (1,029) --
Distribution Fees -- Investor Shares ....................................... -- 26 50 52
Less: Distribution Fees Waived -- Investor Shares .......................... -- (16) (50) (8)
Distribution Fees -- Flex Shares ........................................... -- 136 203 194
Less: Distribution Fees Waived -- Flex Shares .............................. -- (21) (51) (51)
Insurance and Other Fees ................................................... 11 35 30 29
Amortization of Deferred Organization Costs ................................ (8) -- -- 5
--------- --------- --------- ---------
Total Expenses ............................................................. 427 3,942 6,684 9,248
--------- --------- --------- ---------
Net Investment Income ...................................................... 487 1,547 3,859 3,923
--------- --------- --------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ..................................... -- -- -- --
Net Realized Gain (Loss) on Securities Sold ................................ (6,188) 48,404 42,161 21,269
Net Realized Loss on Foreign Currency Transactions ......................... (45) -- -- (811)
Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency .......... (12) -- -- (10)
Net Change in Unrealized Appreciation (Depreciation) on Investments ........ 3,231 39,898 33,416 (78,440)
--------- --------- --------- ---------
Total Net Realized and Unrealized Gain (Loss) on Investments ............... (3,014) 88,302 75,577 (57,992)
--------- --------- --------- ---------
Net Increase (Decrease) in Net Assets from Operations ...................... $ (2,527) $ 89,849 $ 79,436 $ (54,069)
========= ========= ========= =========
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Life Vision
Equity Balanced
Index Fund Portfolio
------------- ----------------------
06/01/98- 12/01/98- 12/01/97-
05/31/99 05/31/99 11/30/98
------------- ----------------------
<S> <C> <C> <C>
Income:
Interest Income ............................................................ $ 52 $ -- $ --
Dividend Income ............................................................ 1,132 991 2,295
Less: Foreign Taxes Withheld ............................................... (85) -- --
--------- --------- ---------
Total Investment Income .................................................... 1,099 991 2,295
--------- --------- ---------
Expenses:
Investment Advisory Fees ................................................... 563 114 233
Less: Investment Advisory Fees Waived/Reimbursed ........................... (70) (54) (120)
Administrator Fees ......................................................... 49 20 40
Administrator Fees Waived .................................................. -- (13) (40)
Transfer Agent Fees -- Trust Shares ........................................ 16 22 47
Transfer Agent Fees -- Investor Shares ..................................... 10 -- --
Transfer Agent Fees -- Flex Shares ......................................... 10 -- --
Transfer Agent Out of Pocket Fees .......................................... 7 -- --
Printing Expenses .......................................................... 6 4 5
Custody Fees ............................................................... 66 13 28
Professional Fees .......................................................... 4 13 10
Trustee Fees ............................................................... -- 1 1
Registration Fees .......................................................... -- 1 19
Distribution Fees -- Trust Shares .......................................... -- -- --
Less: Distribution Fees Waived -- Trust Shares ............................. -- -- --
Distribution Fees -- Investor Shares ....................................... 22 -- --
Less: Distribution Fees Waived -- Investor Shares .......................... (5) -- --
Distribution Fees -- Flex Shares ........................................... 12 -- --
Less: Distribution Fees Waived -- Flex Shares .............................. (4) -- --
Insurance and Other Fees ................................................... 18 -- 10
Amortization of Deferred Organization Costs ................................ 3 3 --
--------- --------- ---------
Total Expenses ............................................................. 707 124 233
--------- --------- ---------
Net Investment Income ...................................................... 392 867 2,062
--------- --------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ..................................... -- 2,204 6,921
Net Realized Gain (Loss) on Securities Sold ................................ 7,583 317 (1,004)
Net Realized Loss on Foreign Currency Transactions ......................... (40) -- --
Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency .......... (88) -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments ........ (3,971) 2,338 (1,024)
--------- --------- ---------
Total Net Realized and Unrealized Gain (Loss) on Investments ............... 3,484 4,859 4,893
--------- --------- ---------
Net Increase (Decrease) in Net Assets from Operations ...................... $ 3,876 $ 5,726 $ 6,955
========= ========= =========
Amounts designated as "--" are either $0 or round to $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
71
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Life Vision
Growth and Income
Portfolio
------------------------
12/01/98- 12/01/97-
05/31/99 11/30/98
---------- ----------
<S> <C> <C>
Income:
Interest Income ................................................... $ -- $ --
Dividend Income ................................................... 166 410
Less: Foreign Taxes Withheld ...................................... -- --
------ ------
Total Investment Income ........................................... 166 410
------ ------
Expenses:
Investment Advisory Fees .......................................... 25 53
Less: Investment Advisory Fees Waived/Reimbursed .................. (15) (32)
Administrator Fees ................................................ 20 40
Administrator Fees Waived ......................................... (18) (40)
Transfer Agent Fees -- Trust Shares ............................... 5 11
Transfer Agent Fees -- Investor Shares ............................ -- --
Transfer Agent Fees -- Flex Shares ................................ -- --
Transfer Agent Out of Pocket Fees ................................. -- --
Printing Expenses ................................................. 1 1
Custody Fees ...................................................... 3 6
Professional Fees ................................................. 4 2
Trustee Fees ...................................................... -- --
Registration Fees ................................................. -- 5
Distribution Fees -- Investor Shares .............................. -- --
Less: Distribution Fees Waived -- Investor Shares ................. -- --
Distribution Fees -- Flex Shares .................................. -- --
Less: Distribution Fees Waived -- Flex Shares ..................... -- --
Insurance and Other Fees .......................................... -- 7
Amortization of Deferred Organization Costs ....................... 3 --
------ ------
Total Expenses .................................................... 28 53
------ ------
Net Investment Income (Loss) ...................................... 138 357
------ ------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................ 490 2,121
Net Realized Gain (Loss) on Securities Sold ....................... (82) (45)
Net Change in Unrealized Appreciation (Depreciation) on Investments 922 (580)
------ ------
Total Net Realized and Unrealized Gain (Loss) on Investments ...... 1,330 1,496
------ ------
Net Increase (Decrease) in Net Assets from Operations ............. $1,468 $1,853
====== ======
</TABLE>
* Commenced operations
72
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Life Vision Mid-Cap Small Cap
Maximum Growth Equity Equity
Portfolio Fund Fund
---------------------- --------- ----------
12/01/98- 12/01/97- 06/01/98- 06/01/98-
05/31/99 11/30/98 05/31/99 05/31/99
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Interest Income ................................................... $ -- $ -- $ 823 $ 380
Dividend Income ................................................... 49 76 1,454 7,631
Less: Foreign Taxes Withheld ...................................... -- -- -- --
--------- --------- --------- ---------
Total Investment Income ........................................... 49 76 2,277 8,011
--------- --------- --------- ---------
Expenses:
Investment Advisory Fees ..........................................
Less: Investment Advisory Fees Waived/Reimbursed .................. 22 40 3,717 3,701
Administrator Fees ................................................ (13) (26) (355) (161)
Administrator Fees Waived ......................................... 20 40 253 251
Transfer Agent Fees -- Trust Shares ............................... (19) (40) -- --
Transfer Agent Fees -- Investor Shares ............................ 5 8 14 17
Transfer Agent Fees -- Flex Shares ................................ -- -- 12 --
Transfer Agent Out of Pocket Fees ................................. -- -- 35 79
Printing Expenses ................................................. -- -- 39 38
Custody Fees ...................................................... 1 1 39 13
Professional Fees ................................................. 2 5 21 17
Trustee Fees ...................................................... 3 -- 21 23
Registration Fees ................................................. -- 2 8 4
Distribution Fees -- Investor Shares .............................. -- -- 13 17
Less: Distribution Fees Waived -- Investor Shares ................. -- 4 90 --
Distribution Fees -- Flex Shares .................................. -- -- (7) --
Less: Distribution Fees Waived -- Flex Shares ..................... -- -- 172 275
Insurance and Other Fees .......................................... -- -- (25) (64)
Amortization of Deferred Organization Costs ....................... -- 6 9 --
3 -- -- 4
--------- --------- --------- ---------
Total Expenses ....................................................
24 40 4,056 4,214
--------- --------- --------- ---------
Net Investment Income (Loss) ......................................
25 36 (1,779) 3,797
--------- --------- --------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................
Net Realized Gain (Loss) on Securities Sold ....................... 499 1,739 -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments (42) (463) 12,419 (48,614)
1,329 (226) (10,771) (39,458)
Total Net Realized and Unrealized Gain (Loss) on Investments ...... --------- --------- --------- ---------
1,786 1,050 1,648 (88,072)
Net Increase (Decrease) in Net Assets from Operations ............. --------- --------- --------- ---------
$ 1,811 $ 1,086 $ (131) $ (84,275)
========= ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Small Cap Sunbelt Tax Sensitive Value
Growth Stock Equity Growth Stock Income Stock
Fund Fund Fund Fund
------------ --------- ------------- ------------
10/08/98*- 06/01/98- 12/11/98- 06/01/98-
05/31/99 05/31/99 05/31/99 05/31/99
------------ --------- ------------- ------------
<S> <C> <C> <C> <C>
Income:
Interest Income ................................................... $ 119 $ 187 $ 363 $ 5,715
Dividend Income ................................................... 77 1,415 877 48,342
Less: Foreign Taxes Withheld ...................................... -- -- -- --
--------- --------- --------- ---------
Total Investment Income ........................................... 196 1,602 1,240 54,057
--------- --------- --------- ---------
Expenses:
Investment Advisory Fees ..........................................
Less: Investment Advisory Fees Waived/Reimbursed .................. 314 3,788 1,008 15,302
Administrator Fees ................................................ (79) (417) (124) --
Administrator Fees Waived ......................................... 21 258 67 1,498
Transfer Agent Fees -- Trust Shares ............................... -- -- -- --
Transfer Agent Fees -- Investor Shares ............................ 11 12 8 18
Transfer Agent Fees -- Flex Shares ................................ -- 12 -- 56
Transfer Agent Out of Pocket Fees ................................. 9 23 14 179
Printing Expenses ................................................. 15 61 10 235
Custody Fees ...................................................... 10 61 7 131
Professional Fees ................................................. 7 19 3 67
Trustee Fees ...................................................... 8 37 8 143
Registration Fees ................................................. -- 12 1 42
Distribution Fees -- Investor Shares .............................. 16 14 62 50
Less: Distribution Fees Waived -- Investor Shares ................. -- 97 -- 638
Distribution Fees -- Flex Shares .................................. -- (7) -- --
Less: Distribution Fees Waived -- Flex Shares ..................... 12 63 144 1,671
Insurance and Other Fees .......................................... (8) (20) (9) (9)
Amortization of Deferred Organization Costs ....................... 1 -- 3 94
-- 10 -- --
--------- --------- --------- ---------
Total Expenses ....................................................
337 4,023 1,202 20,115
--------- --------- --------- ---------
Net Investment Income (Loss) ......................................
(141) (2,421) 38 33,942
--------- --------- --------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................
Net Realized Gain (Loss) on Securities Sold ....................... -- -- -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments 2,335 (16,055) 4,943 219,408
4,550 (79,885) 14,808 (71,294)
Total Net Realized and Unrealized Gain (Loss) on Investments ...... --------- --------- --------- ---------
6,885 (95,940) 19,751 148,114
Net Increase (Decrease) in Net Assets from Operations ............. --------- --------- --------- ---------
$ 6,744 $ (98,361) $ 19,789 $ 182,056
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
73
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Emerging
Balanced Fund Capital Appreciation Fund Markets Equity Fund
-------------------- ------------------------- --------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97-
05/31/99 05/31/98 05/31/99 05/31/98 05/31/99 05/31/98
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) ............................. $ 5,369 $ 4,558 $ 3,087 $ 7,983 $ 487 $ 468
Capital Gain Received from Investments ................... -- -- -- -- -- --
Net Realized Gain (Loss) on Investments .................. 9,690 17,885 166,440 261,636 (6,188) (875)
Net Realized Loss on Foreign Currency Transactions ....... -- -- -- -- (45) (61)
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and
Liabilities in Foreign Currency ........................ -- -- -- -- (12) (1)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ......................................... 11,063 14,594 151,103 157,396 3,231 (7,440)
-------- -------- ---------- ---------- ------- -------
Increase (Decrease) in Net Assets from Operations ...... 26,122 37,037 320,630 427,015 (2,527) (7,909)
-------- -------- ---------- ---------- ------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ........................................... (4,438) (4,197) (5,572) (7,798) (622) (314)
Investor Shares ........................................ (200) (154) (36) (28) -- --
Flex Shares ............................................ (506) (204) -- -- -- --
Capital Gains:
Trust Shares ........................................... (13,593) (12,908) (240,608) (200,074) -- (544)
Investor Shares ........................................ (771) (536) (41,767) (36,216) -- --
Flex Shares ............................................ (2,745) (972) (19,498) (9,643) -- --
-------- -------- ---------- ---------- ------- -------
Total Distributions ...................................... (22,253) (18,971) (307,481) (253,759) (622) (858)
-------- -------- ---------- ---------- ------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ............................ 146,574 53,532 673,116 466,511 14,574 23,819
Shares Issued in Connection with Crestar Merger ........ -- -- 139,648 -- -- --
Reinvestment of Cash Distributions ..................... 17,886 16,935 234,593 197,282 544 805
Cost of Shares Repurchased ............................. (104,280) (49,610) (623,912) (358,832) (19,772) (20,798)
-------- -------- ---------- ---------- ------- -------
Increase (Decrease) in Net Assets From Trust Share
Transactions ........................................... 60,180 20,857 423,445 304,961 (4,654) 3,826
-------- -------- ---------- ---------- ------- -------
Investor Shares:
Proceeds from Shares Issued ............................ 7,551 2,150 32,561 29,116 -- --
Shares Issued in Connection with Crestar Merger ........ -- -- 12,499 -- --
Reinvestment of Cash Distributions ..................... 966 680 41,544 35,990 -- --
Cost of Shares Repurchased ............................. (2,023) (1,166) (49,083) (37,738) -- --
-------- -------- ---------- ---------- ------- -------
Increase (Decrease) in Net Assets From Investor
Share Transactions ..................................... 6,494 1,664 37,521 27,368 -- --
-------- -------- ---------- ---------- ------- -------
Flex Shares:
Proceeds from Shares Issued ............................ 54,572 21,409 68,098 67,377 -- --
Shares Issued in Connection with Crestar Merger ........ -- 7,867 -- -- --
Reinvestment of Cash Distributions ..................... 3,206 1,164 19,257 9,528 -- --
Cost of Shares Repurchased ............................. (12,484) (2,194) (39,576) (12,730) -- --
-------- -------- ---------- ---------- ------- -------
Increase (Decrease) in Net Assets From
Flex Share Transactions ................................ 45,294 20,379 55,646 64,175 -- --
-------- -------- ---------- ---------- ------- -------
Increase (Decrease) in Net Assets From Share
Transactions ......................................... 111,968 42,900 516,612 396,504 (4,654) 3,826
-------- -------- ---------- ---------- ------- -------
Total Increase (Decrease) in Net Assets .............. 115,837 60,966 529,761 569,760 (7,803) (4,941)
-------- -------- ---------- ---------- ------- -------
Net Assets:
Beginning of Period ...................................... 224,403 163,437 1,910,301 1,340,541 34,554 39,495
-------- -------- ---------- ---------- ------- -------
End of Period ............................................ $340,240 $224,403 $2,440,062 $1,910,301 $26,751 $34,554
======== ======== ========== ========== ======= =======
(1)Shares Issued and Redeemed:
Trust Shares:
Shares Issued .......................................... 11,211 4,245 40,224 29,548 1,963 2,344
Shares Issued in Connection with Crestar Merger ........ -- 8,202 -- -- --
Shares Issued in Lieu of Cash Distributions ............ 1,393 1,402 14,645 13,725 78 92
Shares Redeemed ........................................ (8,020) (3,922) (37,763) (22,177) (2,644) (2,199)
-------- -------- ---------- ---------- ------- -------
Net Trust Share Transactions ............................. 4,584 1,725 25,308 21,096 (603) 237
-------- -------- ---------- ---------- ------- -------
Investor Shares:
Shares Issued .......................................... 570 167 1,967 1,812 -- --
Shares Issued in Connection with Crestar Merger ........ -- -- 738 -- --
Shares Issued in Lieu of Cash Distributions ............ 75 56 2,607 2,518 -- --
Shares Redeemed ........................................ (154) (92) (2,983) (2,349) -- --
-------- -------- ---------- ---------- ------- -------
Net Investor Share Transactions .......................... 491 131 2,329 1,981 -- --
-------- -------- ---------- ---------- ------- -------
Flex Shares:
Shares Issued .......................................... 4,165 1,688 4,176 4,242 -- --
Shares Issued in Connection with Crestar Merger ........ -- -- 474 -- --
Shares Issued in Lieu of Cash Distributions ............ 252 97 1,228 674 -- --
Shares Redeemed ........................................ (956) (173) (2,440) (795) -- --
-------- -------- ---------- ---------- ------- -------
Net Flex Share Transactions .............................. 3,461 1,612 3,438 4,121 -- --
======== ======== ========== ========== ======= =======
Net Change in Capital Shares ............................. 8,536 3,468 31,075 27,198 (603) 237
-------- -------- ---------- ---------- ------- -------
</TABLE>
*Commenced operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
74
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Growth and Equity
Income Fund Fund
---------------------------------- --------------------
12/01/98- 12/01/97- 12/01/96- 06/01/98- 06/01/97-
05/31/99 11/30/98 11/30/97 05/31/99 05/31/98
-------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Operations: $ 1,547 $ 3,859 $ 5,276 $ 3,923 $ 3,320
Net Investment Income (Loss) ............................. -- -- -- -- --
Capital Gain Received from Investments ................... 48,404 42,161 118,138 21,269 61,173
Net Realized Gain (Loss) on Investments .................. -- -- -- (811) (1,410)
Net Realized Loss on Foreign Currency Transactions .......
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and -- -- -- (10) (93)
Liabilities in Foreign Currency ........................
Net Change in Unrealized Appreciation (Depreciation) 39,898 33,416 7,024 (78,440) 50,891
on Investments ......................................... -------- -------- -------- -------- --------
89,849 79,436 130,438 (54,069) 113,881
Increase (Decrease) in Net Assets from Operations ...... -------- -------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income: (935) (3,768) (5,360) (2,385) (1,649)
Trust Shares ........................................... (66) (212) (214) (6) (5)
Investor Shares ........................................ (7) -- (24) -- --
Flex Shares ............................................
Capital Gains: (38,443) (110,281) (2,857) (33,895) (49,334)
Trust Shares ........................................... (2,259) (5,275) (96) (965) (1,347)
Investor Shares ........................................ (1,704) (2,562) (27) (1,189) (1,526)
Flex Shares ............................................ -------- -------- -------- -------- --------
(43,414) (122,098) (8,578) (38,440) (53,861)
Total Distributions ...................................... -------- -------- -------- -------- --------
Capital Transactions (1):
Trust Shares: 77,854 92,390 86,500 172,988 292,707
Proceeds from Shares Issued ............................ -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 11,972 88,294 2,679 33,324 47,572
Reinvestment of Cash Distributions ..................... (74,302) (153,783) (167,444) (175,047) (258,050)
Cost of Shares Repurchased ............................. -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From Trust Share 15,524 26,901 (78,265) 31,265 82,229
Transactions ........................................... -------- -------- -------- -------- --------
Investor Shares: 2,099 11,222 9,602 2,728 7,487
Proceeds from Shares Issued ............................ -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 2,157 5,277 303 965 1,351
Reinvestment of Cash Distributions ..................... (4,209) (8,617) (4,558) (4,566) (3,549)
Cost of Shares Repurchased ............................. -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From Investor 47 7,882 5,347 (873) 5,289
Share Transactions ..................................... -------- -------- -------- -------- --------
Flex Shares: 8,350 12,797 7,216 6,324 14,405
Proceeds from Shares Issued ............................ -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 1,675 2,504 51 1,174 1,507
Reinvestment of Cash Distributions ..................... (2,763) (2,494) (782) (8,295) (4,407)
Cost of Shares Repurchased ............................. -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From 7,262 12,807 6,485 (797) 11,505
Flex Share Transactions ................................ -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets From Share 22,833 47,590 (66,433) 29,595 99,023
Transactions ......................................... -------- -------- -------- -------- --------
69,268 4,928 55,427 (62,914) 159,043
Total Increase (Decrease) in Net Assets .............. -------- -------- -------- -------- --------
Net Assets: 637,132 632,204 576,777 667,417 508,374
Beginning of Period ...................................... -------- -------- -------- -------- --------
$706,400 $637,132 $632,204 $604,503 $667,417
End of Period ............................................ ======== ======== ======== ======== ========
(1)Shares Issued and Redeemed:
Trust Shares: 5,206 10,513 6,467 12,883 20,687
Shares Issued .......................................... -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 840 6,789 193 2,626 3,744
Shares Issued in Lieu of Cash Distributions ............ (4,849) (14,789) (12,286) (13,225) (18,402)
Shares Redeemed ........................................ -------- -------- -------- -------- --------
1,197 2,513 (5,626) 2,284 6,029
Net Trust Share Transactions ............................. -------- -------- -------- -------- --------
Investor Shares: 137 764 636 203 526
Shares Issued .......................................... -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 150 402 21 77 107
Shares Issued in Lieu of Cash Distributions ............ (272) (591) (304) (350) (254)
Shares Redeemed ........................................ -------- -------- -------- -------- --------
15 575 353 (70) 379
Net Investor Share Transactions .......................... -------- -------- -------- -------- --------
Flex Shares: 550 874 467 468 1,021
Shares Issued .......................................... -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 117 192 4 95 121
Shares Issued in Lieu of Cash Distributions ............ (178) (171) (53) (648) (322)
Shares Redeemed ........................................ -------- -------- -------- -------- --------
489 895 418 (85) 820
Net Flex Share Transactions .............................. ======== ======== ======== ======== ========
1,701 3,983 (4,855) 2,129 7,228
Net Change in Capital Shares ............................. -------- -------- -------- -------- --------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Life Vision
Equity Balanced
Index Fund Portfolio
-------------------- -------------------------------
06/01/98- 06/01/97- 12/01/98- 12/01/97- 06/30/97*
05/31/99 05/31/98 05/31/99 11/30/98 11/30/97
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Operations: $ 392 $ 498 $ 867 $ 2,062 $ 993
Net Investment Income (Loss) ............................. -- -- 2,204 6,921 --
Capital Gain Received from Investments ................... 7,583 3,349 317 (1,004) 235
Net Realized Gain (Loss) on Investments .................. (40) (46) -- -- --
Net Realized Loss on Foreign Currency Transactions .......
Net Change in Unrealized Appreciation (Depreciation) on
Foreign Currency and Translation of Other Assets and (88) 19 -- -- --
Liabilities in Foreign Currency ........................
Net Change in Unrealized Appreciation (Depreciation) (3,971) 9,866 2,338 (1,024) 3,730
on Investments ......................................... ------- ------- ------- ------- -------
3,876 13,686 5,726 6,955 4,958
Increase (Decrease) in Net Assets from Operations ...... ------- ------- ------- ------- -------
Distributions to Shareholders:
Net Investment Income: (1,136) (489) (735) (2,072) (941)
Trust Shares ........................................... (83) (34) -- -- --
Investor Shares ........................................ (4) -- -- -- --
Flex Shares ............................................
Capital Gains: (8,431) (2,914) (6,686) (238) --
Trust Shares ........................................... (877) (343) -- -- --
Investor Shares ........................................ (172) (54) -- -- --
Flex Shares ............................................ ------- ------- ------- ------- -------
(10,703) (3,834) (7,421) (2,310) (941)
Total Distributions ...................................... ------- ------- ------- ------- -------
Capital Transactions (1):
Trust Shares: 34,363 8,458 5,124 15,849 94,371
Proceeds from Shares Issued ............................ -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 8,985 3,057 7,421 2,310 941
Reinvestment of Cash Distributions ..................... (18,882) (17,470) (15,873) (19,035) (9,887)
Cost of Shares Repurchased ............................. ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets From Trust Share 24,466 (5,955) (3,328) (876) 85,425
Transactions ........................................... ------- ------- ------- ------- -------
Investor Shares: 1,083 2,516 -- -- --
Proceeds from Shares Issued ............................ -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 959 375 -- -- --
Reinvestment of Cash Distributions ..................... (3,668) (2,400) -- -- --
Cost of Shares Repurchased ............................. ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets From Investor (1,626) 491 -- -- --
Share Transactions ..................................... ------- ------- ------- ------- -------
Flex Shares: 980 788 -- -- --
Proceeds from Shares Issued ............................ -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 174 53 -- -- --
Reinvestment of Cash Distributions ..................... (987) (427) -- -- --
Cost of Shares Repurchased ............................. ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets From 167 414 -- -- --
Flex Share Transactions ................................ ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets From Share 23,007 (5,050) (3,328) (876) 85,425
Transactions ......................................... ------- ------- ------- ------- -------
16,180 4,802 (5,023) 3,769 89,442
Total Increase (Decrease) in Net Assets .............. ------- ------- ------- ------- -------
Net Assets: 64,810 60,008 93,211 89,442 --
Beginning of Period ...................................... ------- ------- ------- ------- -------
$80,990 $64,810 $88,188 $93,211 $89,442
End of Period ............................................ ======= ======= ======= ======= =======
(1)Shares Issued and Redeemed:
Trust Shares: 2,851 700 476 1,449 9,446
Shares Issued .......................................... -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 779 277 712 214 90
Shares Issued in Lieu of Cash Distributions ............ (1,537) (1,473) (1,486) (1,743) (990)
Shares Redeemed ........................................ ------- ------- ------- ------- -------
2,093 (496) (298) (80) 8,546
Net Trust Share Transactions ............................. ------- ------- ------- ------- -------
Investor Shares: 88 210 -- -- --
Shares Issued .......................................... -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 84 34 -- -- --
Shares Issued in Lieu of Cash Distributions ............ (294) (201) -- -- --
Shares Redeemed ........................................ ------- ------- ------- ------- -------
(122) 43 -- -- --
Net Investor Share Transactions .......................... ------- ------- ------- ------- -------
Flex Shares: 80 63 -- -- --
Shares Issued .......................................... -- -- -- -- --
Shares Issued in Connection with Crestar Merger ........ 15 5 -- -- --
Shares Issued in Lieu of Cash Distributions ............ (82) (36) -- -- --
Shares Redeemed ........................................ ------- ------- ------- ------- -------
13 32 -- -- --
Net Flex Share Transactions .............................. ======= ======= ======= ======= =======
1,984 (421) (298) (80) 8,546
Net Change in Capital Shares ............................. ------- ------- ------- ------- -------
</TABLE>
The accompanying notes are an integral part of the financial statements
75
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
<TABLE>
<CAPTION>
Life Vision
Growth and Income Portfolio
-----------------------------------------
12/01/98- 12/01/97- 06/30/97*
05/31/99 11/30/98 11/30/97
------------ ---------- ---------
<S> <C> <C> <C>
Operations:
Net Investment Income (Loss) ..................................... $ 138 $ 357 $ 190
Capital Gain Received from Investments ........................... 490 2,121 --
Net Realized Gain (Loss) on Investments .......................... (82) (45) 20
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................. 922 (580) 1,003
----------- ----------- -----------
Increase (Decrease) in Net Assets from Operations ................ 1,468 1,853 1,213
----------- ----------- -----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ................................................... (114) (360) (180)
Investor Shares ................................................ -- -- --
Flex Shares .................................................... -- -- --
Capital Gains:
Trust Shares ................................................... (2,475) (22) --
Investor Shares ................................................ -- -- --
Flex Shares .................................................... -- -- --
----------- ----------- -----------
Total Distributions .............................................. (2,589) (382) (180)
----------- ----------- -----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .................................... 2,679 2,591 21,846
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Reinvestment of Cash Distributions ............................. 2,589 382 180
Cost of Shares Repurchased ..................................... (1,239) (7,923) (538)
----------- ----------- -----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ................................................... 4,029 (4,950) 21,488
----------- ----------- -----------
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 .................................... -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Reinvestment of Cash Distributions ............................. -- -- --
Cost of Shares Repurchased ..................................... -- -- --
----------- ----------- -----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ........................................ -- -- --
----------- ----------- -----------
Increase (Decrease) in Net Assets From Share
Transactions ................................................. 4,029 (4,950) 21,488
----------- ----------- -----------
Total Increase (Decrease) in Net Assets ...................... 2,908 (3,479) 22,521
----------- ----------- -----------
Net Assets:
Beginning of Period .............................................. 19,042 22,521 --
----------- ----------- -----------
End of Period .................................................... $ 21,950 $ 19,042 $ 22,521
=========== =========== ===========
Trust Shares:
Shares Issued .................................................. 259 239 2,177
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Shares Issued in Lieu of Cash Distributions .................... 264 35 17
Shares Redeemed ................................................ (120) (695) (52)
----------- ----------- -----------
Net Trust Share Transactions ..................................... 403 (421) 2,142
----------- ----------- -----------
Investor Shares:
Shares Issued .................................................. -- -- --
Shares Issued in Lieu of Cash Distributions .................... -- -- --
Shares Redeemed ................................................ -- -- --
----------- ----------- -----------
Net Investor Share Transactions .................................. -- -- --
----------- ----------- -----------
Flex Shares:
Shares Issued .................................................. -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Shares Issued in Lieu of Cash Distributions .................... -- -- --
Shares Redeemed ................................................ -- -- --
----------- ----------- -----------
Net Flex Share Transactions ...................................... -- -- --
=========== =========== ===========
Net Change in Capital Shares ..................................... 403 (421) 2,142
----------- ----------- -----------
</TABLE>
*Commenced Operations
Amounts designated as "--" are either $0 or have been rounded to $0.
<TABLE>
<CAPTION>
Life Vision
Maximum Growth Portfolio
---------------------------------------
12/01/98- 12/01/97- 06/30/97*
05/31/99 11/30/98 11/30/97
--------- --------- ---------
<S> <C> <C> <C>
Operations:
Net Investment Income (Loss) ..................................... $ 25 $ 36 $ 39
Capital Gain Received from Investments ........................... 499 1,739 --
Net Realized Gain (Loss) on Investments .......................... (42) (463) (1)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................. 1,329 (226) 740
----------- ----------- -----------
Increase (Decrease) in Net Assets from Operations ................ 1,811 1,086 778
----------- ----------- -----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ................................................... (24) (35) (38)
Investor Shares ................................................ -- -- --
Flex Shares .................................................... -- -- --
Capital Gains:
Trust Shares ................................................... (1,670) -- --
Investor Shares ................................................ -- -- --
Flex Shares .................................................... -- -- --
----------- ----------- -----------
Total Distributions .............................................. (1,694) (35) (38)
----------- ----------- -----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .................................... 2,114 5,852 13,614
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Reinvestment of Cash Distributions ............................. 1,694 36 38
Cost of Shares Repurchased ..................................... (1,456) (4,421) (680)
----------- ----------- -----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ................................................... 2,352 1,467 12,972
----------- ----------- -----------
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 .................................... -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Reinvestment of Cash Distributions ............................. -- -- --
Cost of Shares Repurchased ..................................... -- -- --
----------- ----------- -----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ........................................ -- -- --
----------- ----------- -----------
Increase (Decrease) in Net Assets From Share
Transactions ................................................. 2,352 1,467 12,972
----------- ----------- -----------
Total Increase (Decrease) in Net Assets ...................... 2,469 2,518 13,712
----------- ----------- -----------
Net Assets:
Beginning of Period .............................................. 16,230 13,712 --
----------- ----------- -----------
End of Period .................................................... $ 18,699 $ 16,230 $ 13,712
=========== =========== ===========
Trust Shares:
Shares Issued .................................................. 192 599 1,350
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Shares Issued in Lieu of Cash Distributions .................... 161 3 4
Shares Redeemed ................................................ (133) (456) (66)
----------- ----------- -----------
Net Trust Share Transactions ..................................... 220 146 1,288
----------- ----------- -----------
Investor Shares:
Shares Issued .................................................. -- -- --
Shares Issued in Lieu of Cash Distributions .................... -- -- --
Shares Redeemed ................................................ -- -- --
----------- ----------- -----------
Net Investor Share Transactions .................................. -- -- --
----------- ----------- -----------
Flex Shares:
Shares Issued .................................................. -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- --
Shares Issued in Lieu of Cash Distributions .................... -- -- --
Shares Redeemed ................................................ -- -- --
----------- ----------- -----------
Net Flex Share Transactions ...................................... -- -- --
=========== =========== ===========
Net Change in Capital Shares ..................................... 220 146 1,288
----------- ----------- -----------
</TABLE>
76
<PAGE>
<TABLE>
- -----------------------------------------------------------------------
<CAPTION>
Mid-Cap Equity Small Cap
Fund Equity Fund
-------------------------- ------------------------
06/01/98- 06/01/97- 06/01/98- 06/01/97-
05/31/99 05/31/98 05/31/99 05/31/98
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) ..................................... $ (1,779) $ (1,352) $ 3,797 $ 3,127
Capital Gain Received from Investments ........................... -- -- -- --
Net Realized Gain (Loss) on Investments .......................... 12,419 54,941 (48,614) 32,653
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................. (10,771) 14,034 (39,458) 16,045
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets from Operations ................ (131) 67,623 (84,275) 51,825
----------- ----------- ----------- -----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ................................................... -- -- (3,830) (2,704)
Investor Shares ................................................ (3) -- -- --
Flex Shares .................................................... -- -- (46) (70)
Capital Gains:
Trust Shares ................................................... (26,541) (44,446) (17,401) (14,480)
Investor Shares ................................................ (1,970) (3,025) -- --
Flex Shares .................................................... (1,677) (1,899) (1,638) (897)
----------- ----------- ----------- -----------
Total Distributions .............................................. (30,191) (49,370) (22,915) (18,151)
----------- ----------- ----------- -----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .................................... 197,227 146,386 159,166 272,776
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- -- --
Reinvestment of Cash Distributions ............................. 25,335 41,347 19,237 15,603
Cost of Shares Repurchased ..................................... (280,036) (153,972) (170,356) (61,475)
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ................................................... (57,474) 33,761 8,047 226,904
----------- ----------- ----------- -----------
Investor Shares:
Proceeds from Shares Issued .................................... 3,015 6,110 -- --
Reinvestment of Cash Distributions ............................. 1,967 3,019 -- --
Cost of Shares Repurchased ..................................... (8,523) (5,606) -- --
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................. (3,541) 3,523 -- --
----------- ----------- ----------- -----------
Flex Shares:
Proceeds from Shares Issued .................................... 4,866 10,574 2,579 42,359
Shares Issued in Connection with Crestar Merger ................ -- -- -- --
Reinvestment of Cash Distributions ............................. 1,671 1,885 1,669 958
Cost of Shares Repurchased ..................................... (7,908) (3,934) (15,110) (3,490)
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ........................................ (1,371) 8,525 (10,862) 39,827
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From Share
Transactions ................................................. (62,386) 45,809 (2,815) 266,731
----------- ----------- ----------- -----------
Total Increase (Decrease) in Net Assets ...................... (92,708) 64,062 (110,005) 300,405
----------- ----------- ----------- -----------
Net Assets:
Beginning of Period .............................................. 381,797 317,735 431,454 131,049
----------- ----------- ----------- -----------
End of Period .................................................... $ 289,089 $ 381,797 $ 321,449 $ 431,454
=========== =========== =========== ===========
Trust Shares:
Shares Issued .................................................. 16,168 10,517 16,078 22,065
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- -- --
Shares Issued in Connection with Crestar Merger ................ -- -- -- --
Shares Issued in Lieu of Cash Distributions .................... 2,230 3,378 2,040 1,294
Shares Redeemed ................................................ (22,862) (11,149) (17,349) (4,840)
----------- ----------- ----------- -----------
Net Trust Share Transactions ..................................... (4,464) 2,746 769 18,519
----------- ----------- ----------- -----------
Investor Shares:
Shares Issued .................................................. 247 445 -- --
Shares Issued in Lieu of Cash Distributions .................... 175 248 -- --
Shares Redeemed ................................................ (707) (407) -- --
----------- ----------- ----------- -----------
Net Investor Share Transactions .................................. (285) 286 -- --
----------- ----------- ----------- -----------
Flex Shares:
Shares Issued .................................................. 403 777 245 3,366
Shares Issued in Connection with Crestar Merger ................ -- -- -- --
Shares Issued in Lieu of Cash Distributions .................... 152 158 179 80
Shares Redeemed ................................................ (676) (292) (1,580) (273)
----------- ----------- ----------- -----------
Net Flex Share Transactions ...................................... (121) 643 (1,156) 3,173
=========== =========== =========== ===========
Net Change in Capital Shares ..................................... (4,870) 3,675 (387) 21,692
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
- -----------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Tax Sensitive
Growth Sunbelt Growth
Stock Fund Equity Fund Stock Fund
---------- ------------------------ -------------
10/08/98*- 06/01/98- 06/01/97- 12/11/98*-
05/31/99 05/31/99 05/31/98 05/31/99
---------- --------- --------- ----------
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) ..................................... $ (141) $ (2,421) $ (4,364) $ 38
Capital Gain Received from Investments ........................... -- -- -- --
Net Realized Gain (Loss) on Investments .......................... 2,335 (16,055) 49,778 4,943
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................. 4,550 (79,885) 46,313 14,808
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets from Operations ................ 6,744 (98,361) 91,727 19,789
----------- ----------- ----------- -----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ................................................... (4) -- -- (87)
Investor Shares ................................................ -- -- -- --
Flex Shares .................................................... -- -- -- --
Capital Gains:
Trust Shares ................................................... (24) (22,775) (32,274) --
Investor Shares ................................................ -- (1,729) (2,333) --
Flex Shares .................................................... (1) (508) (516) --
----------- ----------- ----------- -----------
Total Distributions .............................................. (29) (25,012) (35,123) (87)
----------- ----------- ----------- -----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .................................... 69,418 228,638 207,154 121,119
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- -- 99,222
Shares Issued in Connection with Crestar Merger ................ 88,940 -- -- --
Reinvestment of Cash Distributions ............................. 28 21,508 30,202 87
Cost of Shares Repurchased ..................................... (12,528) (372,294) (238,878) (15,922)
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ................................................... 145,858 (122,148) (1,522) 204,506
----------- ----------- ----------- -----------
Investor Shares:
Proceeds from Shares Issued .................................... -- 2,830 5,150 --
Reinvestment of Cash Distributions ............................. -- 1,727 2,323 --
Cost of Shares Repurchased ..................................... -- (10,109) (8,619) --
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................. -- (5,552) (1,146) --
----------- ----------- ----------- -----------
Flex Shares:
Proceeds from Shares Issued .................................... 3,553 1,881 3,848 77,327
Shares Issued in Connection with Crestar Merger ................ 2,699 -- -- --
Reinvestment of Cash Distributions ............................. 1 504 515 --
Cost of Shares Repurchased ..................................... (378) (3,604) (2,603) (2,117)
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ........................................ 5,875 (1,219) 1,760 75,210
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets From Share
Transactions ................................................. 151,733 (128,919) (908) 279,716
----------- ----------- ----------- -----------
Total Increase (Decrease) in Net Assets ...................... 158,448 (252,292) 55,696 299,418
----------- ----------- ----------- -----------
Net Assets:
Beginning of Period .............................................. -- 470,851 415,155 --
----------- ----------- ----------- -----------
End of Period .................................................... $ 158,448 $ 218,559 $ 470,851 $ 299,418
=========== =========== =========== ===========
Trust Shares:
Shares Issued .................................................. 5,174 19,064 13,707 4,133
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- -- -- 3,875
Shares Issued in Connection with Crestar Merger ................ 6,174 -- -- --
Shares Issued in Lieu of Cash Distributions .................... 2 1,997 2,213 3
Shares Redeemed ................................................ (886) (31,845) (16,065) (549)
----------- ----------- ----------- -----------
Net Trust Share Transactions ..................................... 10,464 (10,784) (145) 7,462
----------- ----------- ----------- -----------
Investor Shares:
Shares Issued .................................................. -- 229 353 --
Shares Issued in Lieu of Cash Distributions .................... -- 165 174 --
Shares Redeemed ................................................ -- (909) (590) --
----------- ----------- ----------- -----------
Net Investor Share Transactions .................................. -- (515) (63) --
----------- ----------- ----------- -----------
Flex Shares:
Shares Issued .................................................. 266 148 260 2,612
Shares Issued in Connection with Crestar Merger ................ 188 -- -- --
Shares Issued in Lieu of Cash Distributions .................... -- 49 39 --
Shares Redeemed ................................................ (28) (333) (184) (70)
----------- ----------- ----------- -----------
Net Flex Share Transactions ...................................... 426 (136) 115 2,542
=========== =========== =========== ===========
Net Change in Capital Shares ..................................... 10,890 (11,435) (93) 10,004
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Value Income
Stock Fund
-------------------------
06/01/98- 06/01/97-
05/31/99 05/31/98
--------- ---------
<S> <C> <C>
Operations:
Net Investment Income (Loss) ..................................... $ 33,942 $ 34,555
Capital Gain Received from Investments ........................... -- --
Net Realized Gain (Loss) on Investments .......................... 219,408 319,982
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................................. (71,294) 44,518
----------- -----------
Increase (Decrease) in Net Assets from Operations ................ 182,056 399,055
----------- -----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ................................................... (30,625) (30,991)
Investor Shares ................................................ (3,178) (2,838)
Flex Shares .................................................... (1,535) (1,104)
Capital Gains:
Trust Shares ................................................... (229,623) (262,191)
Investor Shares ................................................ (29,331) (29,671)
Flex Shares .................................................... (25,364) (19,217)
----------- -----------
Total Distributions .............................................. (319,656) (346,012)
----------- -----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .................................... 354,278 381,039
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- --
Shares Issued in Connection with Crestar Merger ................ -- --
Reinvestment of Cash Distributions ............................. 241,723 269,446
Cost of Shares Repurchased ..................................... (621,009) (459,701)
----------- -----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ................................................... (25,008) 190,784
----------- -----------
Investor Shares:
Proceeds from Shares Issued .................................... 17,566 35,483
Reinvestment of Cash Distributions ............................. 32,240 32,233
Cost of Shares Repurchased ..................................... (51,945) (28,503)
----------- -----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................................. (2,139) 39,213
----------- -----------
Flex Shares:
Proceeds from Shares Issued .................................... 38,150 106,762
Shares Issued in Connection with Crestar Merger ................ -- --
Reinvestment of Cash Distributions ............................. 26,492 20,054
Cost of Shares Repurchased ..................................... (65,171) (20,844)
----------- -----------
Increase (Decrease) in Net Assets From
Flex Share Transactions ........................................ (529) 105,972
----------- -----------
Increase (Decrease) in Net Assets From Share
Transactions ................................................. (27,676) 335,969
----------- -----------
Total Increase (Decrease) in Net Assets ...................... (165,276) 389,012
----------- -----------
Net Assets:
Beginning of Period .............................................. 2,116,539 1,727,527
----------- -----------
End of Period .................................................... $1,951,263 $2,116,539
=========== ===========
Trust Shares:
Shares Issued .................................................. 28,099 26,871
Shares Issued in Connection with Common Trust Fund
Conversion ................................................... -- --
Shares Issued in Connection with Crestar Merger ................ -- --
Shares Issued in Lieu of Cash Distributions .................... 20,747 21,156
Shares Redeemed ................................................ (49,236) (32,467)
----------- -----------
Net Trust Share Transactions ..................................... (390) 15,560
----------- -----------
Investor Shares:
Shares Issued .................................................. 1,391 2,518
Shares Issued in Lieu of Cash Distributions .................... 2,775 2,538
Shares Redeemed ................................................ (4,182) (2,003)
----------- -----------
Net Investor Share Transactions .................................. (16) 3,053
----------- -----------
Flex Shares:
Shares Issued .................................................. 3,029 7,617
Shares Issued in Connection with Crestar Merger ................ -- --
Shares Issued in Lieu of Cash Distributions .................... 2,310 1,597
Shares Redeemed ................................................ (5,298) (1,488)
----------- -----------
Net Flex Share Transactions ...................................... 41 7,726
=========== ===========
Net Change in Capital Shares ..................................... (365) 26,339
----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements
77
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For the Periods Ended May 31, (unless otherwise
indicated) For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Asset Net Realized and Distributions
Value Net Unrealized Gains from Net Distributions Net Asset
Beginning Investment (Losses) Investment from Realized Value End
of Period Income (Loss) on Investments Income Capital Gains of Period
---------- ------------- ----------------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Balanced Fund
Trust Shares
1999 $13.09 $ 0.28 $ 1.09 $(0.28) $ (0.92) $13.26
1998 11.94 0.31 2.19 (0.32) (1.03) 13.09
1997 11.55 0.33 1.47 (0.32) (1.09) 11.94
1996 10.26 0.33 1.41 (0.34) (0.11) 11.55
1995 9.76 0.33 0.49 (0.32) -- 10.26
Investor Shares
1999 $13.14 $ 0.24 $ 1.10 $(0.24) $ (0.92) $13.32
1998 11.99 0.28 2.19 (0.29) (1.03) 13.14
1997 11.60 0.29 1.48 (0.29) (1.09) 11.99
1996 10.30 0.30 1.41 (0.30) (0.11) 11.60
1995 9.79 0.28 0.51 (0.28) -- 10.30
Flex Shares
1999 $13.02 $ 0.16 $ 1.07 $(0.16) $ (0.92) $13.17
1998 11.90 0.20 2.16 (0.21) (1.03) 13.02
1997 11.53 0.22 1.45 (0.21) (1.09) 11.90
1996(1) 10.36 0.24 1.29 (0.25) (0.11) 11.53
Capital Appreciation Fund
Trust Shares
1999 $16.48 $ 0.05 $ 2.70 $(0.06) $ (2.55) $16.62
1998 15.09 0.09 3.96 (0.09) (2.57) 16.48
1997 14.90 0.12 3.13 (0.12) (2.94) 15.09
1996 12.18 0.12 3.32 (0.13) (0.59) 14.90
1995 11.99 0.16 0.57 (0.14) (0.40) 12.18
Investor Shares
1999 $16.43 $(0.05) $ 2.70 $ -- $ (2.55) $16.53
1998 15.06 (0.01) 3.95 -- (2.57) 16.43
1997 14.89 0.03 3.10 (0.02) (2.94) 15.06
1996 12.17 0.03 3.32 (0.04) (0.59) 14.89
1995 11.98 0.09 0.57 (0.07) (0.40) 12.17
Flex Shares
1999 $16.22 $(0.09) $ 2.60 $ -- $ (2.55) $16.18
1998 14.96 (0.04) 3.87 -- (2.57) 16.22
1997 14.84 (0.01) 3.07 -- (2.94) 14.96
1996(2) 12.20 0.02 3.26 (0.05) (0.59) 14.84
Emerging Markets Equity Fund
Trust Shares
1999 $ 8.87 $ 0.14 $(0.72) $(0.17) $ -- $ 8.12
1998 10.79 0.16 (1.86) (0.08) (0.14) 8.87
1997(3) 10.00 0.04 0.75 -- -- 10.79
Growth and Income Fund (A)
Trust Shares
1999(4) $15.10 $ 0.04 $ 1.97 $(0.02) $ (1.00) $16.09
For the years ended November 30:
1998 16.55 0.09 1.64 (0.09) (3.09) 15.10
1997 13.39 0.14 3.24 (0.15) (0.07) 16.55
1996 11.60 0.17 2.38 (0.17) (0.59) 13.39
1995 10.73 0.24 2.62 (0.26) (1.73) 11.60
1994 11.38 0.20 (0.24) (0.19) (0.42) 10.73
Investor Shares
1999(4) $15.21 $ 0.04 $ 1.99 $(0.03) $ (1.00) $16.21
For the years ended November 30:
1998 16.64 0.10 1.66 (0.10) (3.09) 15.21
1997 13.47 0.13 3.25 (0.14) (0.07) 16.64
1996 11.66 0.17 2.39 (0.16) (0.59) 13.47
1995 10.78 0.25 2.62 (0.26) (1.73) 11.66
1994 11.42 0.18 (0.22) (0.18) (0.42) 10.78
Flex Shares
1999(4) $15.14 $(0.01) $ 1.97 $ -- $ (1.00) $16.10
For the years ended November 30:
1998 16.59 (0.01) 1.64 -- (3.08) 15.14
1997 13.44 0.04 3.23 (0.05) (0.07) 16.59
1996 11.64 0.09 2.38 (0.08) (0.59) 13.44
1995(5) 11.11 0.12 1.62 (0.14) (1.07) 11.64
</TABLE>
+ Returns are for the period indicated and have not been annualized. Total
return figures do not include applicable sales loads.
(1) Commenced operations on June 14, 1995. All ratios for the period have been
annualized.
(2) Commenced operations on June 1, 1995. All ratios for the period have been
annualized.
(3) Commenced operations on January 31, 1997. All ratios for the period have
been annualized
(4) For the six month period ended May 31, 1999. All ratios for the period have
been annualized.
(5) Commenced operations on April 19, 1995. All ratios for the period ended
November 30, 1995 have been annualized.
(A) On May 24, 1999, the Crestar Value Fund exchanged all of its assets and
certain liabilities for shares of the Growth and Income Fund. The Crestar
Value Fund is the accounting survivor in this transaction, and as a result,
its basis of accounting for assets and liabilities and its operating results
for the periods prior to May 24, 1999 have been carried forward in these
financial highlights.
78
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Ratio of Expenses to
Net Assets Ratio of Net Investment Average Net Assets
Total End of Expenses to Income (Loss) to (Excluding Waivers
Return+ Period (000) Average Net Assets Average Net Assets and Reimbursements)
---------- ------------ ------------------ ------------------ -------------------
<S> <C> <C> <C> <C> <C>
Balanced Fund
Trust Shares
1999 10.98% $ 251,752 0.97% 2.19% 1.06%
1998 22.15 188,465 0.96 2.51 1.08
1997 16.66 151,358 0.95 2.89 1.08
1996 17.26 111,638 0.95 3.00 1.09
1995 8.72 89,051 0.95 3.44 1.11
Investor Shares
1999 10.70% $ 14,962 1.27% 1.89% 1.43%
1998 21.72 8,313 1.26 2.21 1.59
1997 16.27 6,012 1.25 2.58 1.64
1996 16.88 4,896 1.25 2.70 1.89
1995 8.29 3,765 1.25 3.17 1.80
Flex Shares
1999 9.84% $ 73,526 2.03% 1.13% 2.15%
1998 20.85 27,625 2.02 1.41 2.23
1997 15.40 6,067 2.01 1.84 2.45
1996(1) 15.58 3,131 2.00 1.85 2.97
Capital Appreciation Fund
Trust Shares
1999 17.83% $1,966,842 1.17% 0.29% 1.26%
1998 29.51 1,532,587 1.16 0.61 1.27
1997 24.66 1,085,128 1.15 0.83 1.25
1996 28.97 981,498 1.15 0.90 1.27
1995 6.63 984,205 1.15 1.38 1.28
Investor Shares
1999 17.20% $ 311,120 1.82% (0.30%) 1.96%
1998 28.71 271,044 1.81 (0.03) 2.01
1997 23.74 218,660 1.80 0.19 2.02
1996 28.18 191,078 1.80 0.24 2.08
1995 5.93 160,875 1.80 0.73 2.10
Flex Shares
1999 16.50% $ 162,100 2.29% (0.86%) 2.38%
1998 28.12 106,670 2.26 (0.46) 2.37
1997 23.24 36,753 2.27 (0.29) 2.43
1996(2) 27.48 10,969 2.27 (0.29) 2.68
Emerging Markets Equity Fund
Trust Shares
1999 (6.22%) $ 26,751 1.57% 1.79% 1.61%
1998 (15.74) 34,554 1.56 1.14 1.78
1997(3) 7.90 39,495 1.55 1.37 2.04
Growth and Income Fund (A)
Trust Shares
1999(4) 14.24% $ 634,279 1.14% 0.49% 1.43%
For the years ended November 30:
1998 13.64% 577,042 1.03% 0.63% 1.21
1997 25.41 590,824 1.02 0.92 1.17
1996 22.68 553,648 1.02 1.38 1.17
1995 28.76 220,386 1.02 2.16 1.17
1994 (0.49) 166,713 1.01 1.82 1.01
Investor Shares
1999(4) 14.31% $ 36,958 1.08% 0.54% 1.17%
For the years ended November 30:
1998 13.69% 34,434 1.03% 0.63% 1.18
1997 25.42 28,112 1.03 0.89 1.18
1996 22.63 17,997 1.03 1.35 1.18
1995 28.71 12,633 1.03 2.14 1.18
1994 (0.45) 8,115 1.02 1.81 1.04
Flex Shares
1999(4) 13.85% $ 35,163 1.83% (0.21%) 1.97%
For the years ended November 30:
1998 12.78% 25,656 1.78 (0.13%) 2.03
1997 24.63 13,269 1.73 0.15 2.09
1996 21.81 5,131 1.68 0.71 2.03
1995(5) 15.78 2,086 1.68 1.13 2.03
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
(Excluding Waivers Turnover
and Reimbursements) Rate
------------------- ---------
<S> <C> <C>
Balanced Fund
Trust Shares
1999 2.10% 179%
1998 2.39 154
1997 2.76 197
1996 2.86 155
1995 3.28 157
Investor Shares
1999 1.73% 179%
1998 1.88 154
1997 2.19 197
1996 2.06 155
1995 2.62 157
Flex Shares
1999 1.01% 179%
1998 1.20 154
1997 1.40 197
1996(1) 0.88 155
Capital Appreciation Fund
Trust Shares
1999 0.20% 147%
1998 0.50 194
1997 0.73 141
1996 0.78 156
1995 1.25 128
Investor Shares
1999 (0.44%) 147%
1998 (0.23) 194
1997 (0.03) 141
1996 (0.04) 156
1995 0.43 128
Flex Shares
1999 (0.95%) 147%
1998 (0.57) 194
1997 (0.45) 141
1996(2) (0.70) 156
Emerging Markets Equity Fund
Trust Shares
1999 1.75% 67%
1998 0.92 74
1997(3) 0.88 24
Growth and Income Fund (A)
Trust Shares
1999(4) 0.20% 31%
For the years ended November 30:
1998 0.45% 71%
1997 0.77 100
1996 1.23 82
1995 2.01 175
1994 1.82 116
Investor Shares
1999(4) 0.45% 31%
For the years ended November 30:
1998 0.48 71%
1997 0.74 100
1996 1.20 82
1995 1.99 175
1994 1.79 116
Flex Shares
1999(4) (0.35%) 31%
For the years ended November 30:
1998 (0.38%) 71
1997 (0.20) 100
1996 0.36 82
1995(5) 0.78 175
</TABLE>
The accompanying notes are an integral part of the financial statements
79
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For the Periods Ended May 31, (unless otherwise
indicated) For a Share Outstanding Throughout the Periods
<TABLE>
<CAPTION>
Net Asset Net Realized and Distributions
Value Net Unrealized Gains from Net Distributions Net Asset
Beginning Investment (Losses) Investment from Realized Value End
of Period Income (Loss) on Investments Income Capital Gains of Period
---------- ------------- ---------------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
International Equity Fund
Trust Shares
1999 $15.00 $ -- $(1.14) $(0.05) $(0.84) $12.97
1998 13.63 0.04 2.69 (0.04) (1.32) 15.00
1997 11.40 0.03 2.57 (0.02) (0.35) 13.63
1996(1) 10.00 0.05 1.35 -- -- 11.40
Investor Shares
1999 $14.92 $(0.09) $(1.10) $ -- $(0.84) $12.89
1998 13.58 0.02 2.64 -- (1.32) 14.92
1997 11.38 (0.01) 2.56 -- (0.35) 13.58
1996(2) 10.44 0.04 0.90 -- -- 11.38
Flex Shares
1999 $14.68 $(0.29) $(0.97) $ -- $(0.84) $12.58
1998 13.47 0.07 2.46 -- (1.32) 14.68
1997 11.37 (0.04) 2.49 -- (0.35) 13.47
1996(2) 10.44 0.02 0.91 -- -- 11.37
International Equity Index Fund
Trust Shares
1999 $13.31 $ 0.09 $ 0.85 $(0.24) $(2.19) $11.82
1998 11.34 0.11 2.65 (0.11) (0.68) 13.31
1997 10.96 0.10 0.69 (0.11) (0.30) 11.34
1996 10.24 0.10 0.84 (0.13) (0.09) 10.96
1995(3) 10.00 0.08 0.19 (0.02) (0.01) 10.24
Investor Shares
1999 $13.20 $(0.11) $ 0.98 $(0.18) $(2.19) $11.70
1998 11.26 0.16 2.53 (0.07) (0.68) 13.20
1997 10.88 0.03 0.72 (0.07) (0.30) 11.26
1996 10.20 0.05 0.85 (0.13) (0.09) 10.88
1995(3) 10.00 0.05 0.17 (0.01) (0.01) 10.20
Flex Shares
1999 $13.17 $(0.15) $ 0.94 $(0.04) $(2.19) $11.73
1998 11.24 0.17 2.44 -- (0.68) 13.17
1997 10.87 (0.05) 0.72 -- (0.30) 11.24
1996(4) 10.24 -- 0.82 (0.10) (0.09) 10.87
Life Vision Balanced Portfolio (A)
Trust Shares
1999(5) $11.01 $ 0.11 $ 0.56 $(0.09) $(0.79) $10.80
For the years ended November 30:
1998 10.46 0.24 0.58 (0.24) (0.03) 11.01
1997(6) 10.00 0.12 0.45 (0.11) -- 10.46
Life Vision Growth and Income Portfolio (A)
Trust Shares
1999(5) $11.06 $ 0.08 $ 0.69 $(0.06) $ (1.44) $10.33
For the years ended November 30:
1998 10.51 0.18 0.56 (0.18) (0.01) 11.06
1997(6) 10.00 0.09 0.51 (0.09) -- 10.51
Life Vision Maximum Growth Portfolio (A)
Trust Shares
1999(5) $11.32 $ 0.02 $ 1.13 $(0.01) $ (1.15) $11.31
For the years ended November 30:
1998 10.65 0.03 0.67 (0.03) -- 11.32
1997(6) 10.00 0.03 0.65 (0.03) -- 10.65
Mid-Cap Equity Fund
Trust Shares
1999 $13.79 $ 0.01 $ 0.07 $ -- $ (1.19) $12.68
1998 13.21 -- 2.54 -- (1.96) 13.79
1997 12.76 0.03 1.69 (0.05) (1.22) 13.21
1996 11.00 0.08 2.63 (0.08) (0.87) 12.76
1995 9.85 0.08 1.15 (0.08) -- 11.00
Investor Shares
1999 $13.67 $(0.06) $ 0.08 $ -- $ (1.19) $12.50
1998 13.17 (0.03) 2.49 -- (1.96) 13.67
1997 12.74 (0.03) 1.69 (0.01) (1.22) 13.17
1996 10.99 0.03 2.62 (0.03) (0.87) 12.74
1995 9.84 0.03 1.15 (0.03) -- 10.99
Flex Shares
1999 $13.42 $(0.14) $ 0.08 $ -- $ (1.19) $12.17
1998 13.04 (0.04) 2.38 -- (1.96) 13.42
1997 12.69 (0.07) 1.64 -- (1.22) 13.04
1996(7) 11.13 -- 2.45 (0.02) (0.87) 12.69
</TABLE>
+ Returns are for the period indicated and have not been annualized. Total
return figures do not include applicable sales loads.
(1) Commenced operations on December 1, 1995. All ratios for the period have
been annualized.
(2) Commenced operations on January 2, 1996. All ratios for the period have been
annualized.
(3) Commenced operations on June 6, 1994. All ratios for the period have been
annualized.
(A) On May 24, 1999, the Crestar Life Vision Balanced, Crestar Life Vision
Growth and Income, and Crestar Life Vision Maximum Growth Portfolios
exchanged all of their assets and certain liabilities for shares of the Life
Vision Balanced, Life Vision Growth and Income, and Life Vision Maximum
Growth Portfolios, respectively. The Crestar Life Vision Balanced, Crestar
Life Vision Growth and Income, and Crestar Life Vision Maximum Growth
Portfolios are the accounting survivors in these transactions, and as a
result, their basis of accounting for assets and liabilities and their
operating results for the periods prior to May 24, 1999 have been carried
forward in these financial highlights.
80
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Net Assets Ratio of Net Investment
Total End of Expenses to Income (Loss) to
Return+ Period (000) Average Net Assets Average Net Assets
------- ------------ ------------------ ------------------
<S> <C> <C> <C> <C>
International Equity Fund
Trust Shares
1999 (7.43%) $573,255 1.47% 0.68%
1998 21.87 628,870 1.47 0.61
1997 23.29 489,325 1.46 0.51
1996(1) 14.00 213,306 1.46 1.36
Investor Shares
1999 (7.82%) $ 14,145 1.83% 0.30%
1998 21.39 17,383 1.82 0.24
1997 22.85 10,674 1.81 0.18
1996(2) 9.00 3,448 1.81 1.73
Flex Shares
1999 (8.48%) $ 17,103 2.53% (0.40%)
1998 20.54 21,164 2.52 (0.46)
1997 21.98 8,375 2.51 (0.27)
1996(2) 8.91 953 2.51 1.08
International Equity Index Fund
Trust Shares
1999 7.87% $ 74,616 1.07% 0.69%
1998 25.82 56,200 1.06 0.88
1997 7.48 53,516 1.05 0.71
1996 9.29 90,980 1.05 0.84
1995(3) 2.69 89,446 1.05 1.13
Investor Shares
1999 7.33% $ 4,909 1.47% 0.25%
1998 25.25 7,141 1.46 0.50
1997 7.12 5,592 1.45 0.28
1996 8.90 5,597 1.45 0.48
1995(3) 2.18 3,960 1.45 0.67
Flex Shares
1999 6.68% $ 1,465 2.12% (0.30%)
1998 24.50 1,469 2.11 (0.03)
1997 6.41 900 2.10 (0.39)
1996(4) 8.32 917 2.10 (0.24)
Life Vision Balanced Portfolio (A)
Trust Shares
1999(5) 6.35% $ 88,188 0.27% 1.90%
For the years ended November 30:
1998 7.90 93,211 0.25 2.21
1997(6) 5.70 89,442 0.25 2.66
Life Vision Growth and Income Portfolio (A)
Trust Shares
1999(5) 7.75% $ 21,950 0.27% 1.38%
For the years ended November 30:
1998 7.12 19,042 0.25 1.68
1997(6) 5.97 22,521 0.25 2.11
Life Vision Maximum Growth Portfolio (A)
Trust Shares
1999(5) 10.99% $ 18,699 0.27% 0.28%
For the years ended November 30:
1998 6.53 16,230 0.25 0.23
1997(6) 6.82 13,712 0.25 0.72
Mid-Cap Equity Fund
Trust Shares
1999 1.61% $254,055 1.17% (0.47%)
1998 21.14 337,825 1.16 (0.29)
1997 14.23 287,370 1.15 0.23
1996 25.54 253,905 1.15 0.70
1995 12.56 125,562 1.15 0.88
Investor Shares
1999 1.17% $ 19,230 1.62% (0.90%)
1998 20.56 24,930 1.61 (0.75)
1997 13.76 20,245 1.60 (0.21)
1996 24.93 17,971 1.60 0.25
1995 11.96 7,345 1.60 0.43
Flex Shares
1999 0.56% $ 15,804 2.22% (1.52%)
1998 19.80 19,042 2.21 (1.37)
1997 13.06 10,120 2.20 (0.85)
1996(7) 23.00 5,029 2.20 (0.37)
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<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>
International Equity Fund
Trust Shares
1999 1.52% 0.63% 161%
1998 1.48 0.60 108
1997 1.51 0.46 139
1996(1) 1.65 1.17 113
Investor Shares
1999 1.93% 0.20% 161%
1998 1.91 0.15 108
1997 2.05 (0.06) 139
1996(2) 3.14 0.40 113
Flex Shares
1999 2.82% (0.69%) 161%
1998 2.58 (0.52) 108
1997 3.03 (0.79) 139
1996(2) 5.86 (2.27) 113
International Equity Index Fund
Trust Shares
1999 1.17% 0.59% 32%
1998 1.18 0.76 1
1997 1.15 0.61 2
1996 1.19 0.70 30
1995(3) 1.31 0.87 10
Investor Shares
1999 1.71% 0.01% 32%
1998 1.84 0.12 1
1997 1.88 (0.15) 2
1996 2.06 (0.13) 30
1995(3) 2.44 (0.32) 10
Flex Shares
1999 2.92% (1.10%) 32%
1998 3.52 (1.44) 1
1997 3.69 (1.98) 2
1996(4) 4.14 (2.28) 30
Life Vision Balanced Portfolio (A)
Trust Shares
1999(5) 0.42% 1.75% 48%
For the years ended November 30:
1998 0.42 2.04 52
1997(6) 0.42 2.49 43
Life Vision Growth and Income Portf
Trust Shares
1999(5) 0.60% 1.05% 40%
For the years ended November 30:
1998 0.59 1.34 57
1997(6) 0.59 1.77 25
Life Vision Maximum Growth Portfoli
Trust Shares
1999(5) 0.63% (0.08%) 33%
For the years ended November 30:
1998 0.66 (0.18) 75
1997(6) 0.73 0.24 34
Mid-Cap Equity Fund
Trust Shares
1999 1.28% (0.58%) 76%
1998 1.27 (0.40) 129
1997 1.26 0.12 152
1996 1.29 0.56 116
1995 1.32 0.71 66
Investor Shares
1999 1.76% (1.04%) 76%
1998 1.84 (0.98) 129
1997 1.85 (0.46) 152
1996 1.96 (0.11) 116
1995 2.27 (0.24) 66
Flex Shares
1999 2.48% (1.78%) 76%
1998 2.47 (1.63) 129
1997 2.58 (1.23) 152
1996(7) 3.04 (1.21) 116
</TABLE>
(4) Commenced operations on June 8, 1995. All ratios for the period have been
annualized.
(5) For the six month period ended May 31, 1999. All ratios for the period have
been annualized.
(6) Commenced operations on June 30, 1997. All ratios for the period have been
annualized.
(7) Commenced operations on June 5, 1995. All ratios for the period have been
annualized.
The accompanying notes are an integral part of the financial statements
81
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS For the Periods Ended May 31, For a Share Outstanding
Throughout the Periods
<TABLE>
<CAPTION>
Net Asset Net Realized and Distributions
Value Net Unrealized Gains from Net Distributions Net Asset
Beginning Investment (Losses) Investment from Realized Value End
of Period Income (Loss) on Investments Income Capital Gains of Period
---------- ------------ --------------- ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Small Cap Equity Fund
Trust Shares
1999 $12.88 $ 0.13 $(2.57) $(0.13) $(0.61) $ 9.70
1998 11.07 0.14 2.41 (0.12) (0.62) 12.88
1997(1) 10.00 0.05 1.04 (0.02) -- 11.07
Flex Shares
1999 $12.80 $ 0.01 $(2.53) $(0.02) $(0.61) $ 9.65
1998(2) 11.28 0.03 2.17 (0.06) (0.62) 12.80
Small Cap Growth Stock Fund
Trust Shares
1999(3) $10.00 $(0.05) $ 4.62 $ -- $(0.02) $14.55
Flex Shares
1999(3) $10.00 $(0.19) $ 4.67 $ -- $(0.02) $14.46
Sunbelt Equity Fund
Trust Shares
1999 $15.12 $(0.28) $(2.84) $ -- $(0.91) $11.09
1998 13.28 0.01 3.03 -- (1.20) 15.12
1997 14.11 (0.09) 0.25 -- (0.99) 13.28
1996 10.03 (0.04) 4.32 -- (0.20) 14.11
1995 9.70 (0.01) 0.38 -- (0.04) 10.03
Investor Shares
1999 $14.77 $(0.33) $(2.77) $ -- $(0.91) $10.76
1998 13.06 (0.07) 2.98 -- (1.20) 14.77
1997 13.95 (0.14) 0.24 -- (0.99) 13.06
1996 9.96 (0.11) 4.30 -- (0.20) 13.95
1995 9.69 (0.05) 0.36 -- (0.04) 9.96
Flex Shares
1999 $14.60 $(0.40) $(2.74) $ -- $(0.91) $10.55
1998 13.00 (0.09) 2.89 -- (1.20) 14.60
1997 13.97 (0.14) 0.16 -- (0.99) 13.00
1996(4) 10.20 (0.07) 4.04 -- (0.20) 13.97
Tax Sensitive Growth Stock Fund
Trust Shares
1999(5) $25.61 $ 0.02 $ 4.34 $(0.01) $ -- $29.96
Flex Shares
1999(6) $25.52 $(0.04) $ 4.37 $ -- $ -- $29.85
Value Income Stock Fund
Trust Shares
1999 $13.90 $ 0.24 $ 1.02 $(0.24) $(2.07) $12.85
1998 13.71 0.26 2.62 (0.27) (2.42) 13.90
1997 13.15 0.30 2.32 (0.30) (1.76) 13.71
1996 11.59 0.35 2.71 (0.34) (1.16) 13.15
1995 10.54 0.32 1.56 (0.32) (0.51) 11.59
Investor Shares
1999 $13.87 $ 0.19 $ 1.02 $(0.20) $(2.07) $12.81
1998 13.68 0.20 2.62 (0.21) (2.42) 13.87
1997 13.13 0.25 2.32 (0.26) (1.76) 13.68
1996 11.58 0.30 2.71 (0.30) (1.16) 13.13
1995 10.52 0.28 1.56 (0.27) (0.51) 11.58
Flex Shares
1999 $13.75 $ 0.10 $ 1.01 $(0.11) $(2.07) $12.68
1998 13.61 0.12 2.57 (0.13) (2.42) 13.75
1997 13.08 0.18 2.29 (0.18) (1.76) 13.61
1996(7) 11.59 0.26 2.65 (0.26) (1.16) 13.08
</TABLE>
+ Returns are for the period indicated and have not been annualized. Total
return figures do not include applicable sales loads.
(1) Commenced operations on January 31, 1997. All ratios for the period have
been annualized.
(2) Commenced operations on June 5, 1997. All ratios for the period have been
annualized.
(3) Commenced operations on October 8, 1998. All ratios for the period have been
annualized.
(4) Commenced operations on June 5, 1995. All ratios for the period have been
annualized.
(5) Commenced operations on December 11, 1998. All ratios for the period have
been annualized.
(6) Commenced operations on December 15, 1998. All ratios for the period have
been annualized.
(7) Commenced operations on June 1, 1995. All ratios for the period have been
annualized.
82
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Ratio of Expenses to
Net Assets Ratio of Net Investment Average Net Assets
Total End of Expenses to Income (Loss) to (Excluding Waivers
Return+ Period (000) Average Net Assets Average Net Assets and Reimbursements)
-------- ------------ ------------------ ------------------ -------------------
<S> <C> <C> <C> <C> <C>
Small Cap Equity Fund
Trust Shares
1999 (18.72%) $ 301,984 1.22% 1.27% 1.27%
1998 23.59 390,841 1.21 1.07 1.31
1997(1) 10.97 131,049 1.20 1.86 1.37
Flex Shares
1999 (19.52%) $ 19,465 2.27% 0.21% 2.55%
1998(2) 22.29 40,613 2.06 0.01 2.35
Small Cap Growth Stock Fund
Trust Shares
1999(3) 45.70% $ 152,290 1.20% (0.42%) 1.49%
Flex Shares
1999(3) 44.78% $ 6,158 2.25% (1.50%) 3.19%
Sunbelt Equity Fund
Trust Shares
1999 (20.46%) $ 197,215 1.17% (0.68%) 1.30%
1998 23.86 431,921 1.16 (0.90) 1.27
1997 1.48 381,371 1.15 (0.65) 1.26
1996 43.19 412,430 1.15 (0.34) 1.28
1995 3.81 258,908 1.15 (0.12) 1.30
Investor Shares
1999 (20.75%) $ 16,949 1.62% (1.12%) 1.78%
1998 23.25 30,860 1.61 (1.35) 1.86
1997 1.05 28,095 1.60 (1.10) 1.84
1996 42.58 29,002 1.60 (0.79) 1.93
1995 3.20 22,180 1.60 (0.57) 1.98
Flex Shares
1999 (21.28%) $ 4,395 2.22% (1.74%) 2.66%
1998 22.48 8,070 2.21 (1.96) 2.58
1997 0.46 5,689 2.20 (1.72) 2.69
1996(4) 39.86 2,705 2.20 (1.43) 3.62
Tax Sensitive Growth Stock Fund
Trust Shares
1999(5) 17.04% $ 223,543 1.20% 0.21% 1.34%
Flex Shares
1999(6) 16.97% $ 75,875 2.25% (0.80%) 2.48%
Value Income Stock Fund
Trust Shares
1999 11.13% $1,589,951 0.92% 1.91% 0.92%
1998 23.10 1,725,418 0.92 1.85 0.92
1997 22.18 1,488,062 0.91 2.40 0.91
1996 27.91 1,244,399 0.92 2.86 0.92
1995 19.06 991,977 0.95 3.16 0.95
Investor Shares
1999 10.71% $ 194,312 1.28% 1.55% 1.28%
1998 22.71 210,591 1.27 1.47 1.27
1997 21.69 165,999 1.30 2.01 1.31
1996 27.39 130,597 1.30 2.47 1.37
1995 18.71 92,256 1.30 2.80 1.41
Flex Shares
1999 9.91% $ 167,000 2.02% 0.81% 2.03%
1998 21.76 180,530 2.01 0.78 2.01
1997 20.91 73,466 2.00 1.33 2.03
1996(7) 26.52 26,298 2.00 1.72 2.15
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
(Excluding Waivers Turnover
and Reimbursements) Rate
------------------- ---------
<S> <C> <C>
Small Cap Equity Fund
Trust Shares
1999 1.22% 63%
1998 0.97 55
1997(1) 1.69 27
Flex Shares
1999 (0.07%) 63%
1998(2) (0.28) 55
Small Cap Growth Stock Fund
Trust Shares
1999(3) (0.77%) 75%
Flex Shares
1999(3) (2.44%) 75%
Sunbelt Equity Fund
Trust Shares
1999 (0.81%) 84%
1998 (1.01) 70
1997 (0.76) 72
1996 (0.47) 106
1995 (0.27) 80
Investor Shares
1999 (1.28%) 84%
1998 (1.60) 70
1997 (1.34) 72
1996 (1.12) 106
1995 (0.95) 80
Flex Shares
1999 (2.18%) 84%
1998 (2.33) 70
1997 (2.21) 72
1996(4) (2.85) 106
Tax Sensitive Growth Stock Fund
Trust Shares
1999(5) 0.047% 18%
Flex Shares
1999(6) (1.03%) 18%
Value Income Stock Fund
Trust Shares
1999 1.91% 69%
1998 1.85 99
1997 2.40 105
1996 2.86 134
1995 3.16 126
Investor Shares
1999 1.55% 69%
1998 1.47 99
1997 2.00 105
1996 2.40 134
1995 2.69 126
Flex Shares
1999 0.80% 69%
1998 0.78 99
1997 1.30 105
1996(7) 1.57 134
</TABLE>
The accompanying notes are an integral part of the financial statements
83
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
1. Organization:
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with thirty-four portfolios as of May 31, 1999:
the Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund),
the Emerging Markets Equity Fund, the Growth and Income Fund, the International
Equity Fund, the International Equity Index Fund, the Life Vision Balanced
Portfolio, the Life Vision Growth and Income Portfolio, the Life Vision Maximum
Growth Portfolio, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small
Cap Growth Stock Fund, the Sunbelt Equity Fund, the Tax Sensitive Growth Stock
Fund, the Value Income Stock Fund, (collectively the "Equity Funds"), the
Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade
Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal
Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond
Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government
Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia
Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality
Money Market Fund, the Tax-Exempt Money Market Fund, the Tax-Free Money Market
Fund, the U.S. Government Securities, the U.S. Treasury Money Market Fund
(collectively the "Retail Money Market Funds"), the Classic Institutional Cash
Management Money Market Fund, the Classic Institutional U.S. Government
Securities Money Market Fund and the Classic Institutional U.S. Treasury
Securities Money Market Fund, (collectively the "Institutional Money Market
Funds"). The assets of each portfolio are segregated, and a shareholder's
interest is limited to the fund in which shares are held. Each fund's prospectus
provides a description of the fund's investment objectives, policies and
strategies. The financial statements presented herein are those of the Equity
Funds. The financial statements of the Fixed Income Funds, Institutional Money
Market Funds and Retail Money Market Funds are not presented herein, but
presented separately.
On February 17, 1999 and February 19, 1999, respectively, the Board of Trustees
of the STI Classic Funds and Board of Directors of the CrestFunds, Inc.
("CrestFunds") approved an Agreement and Plan of Reorganization (the
"Reorganization Agreement") providing for the transfer of all assets and
liabilities of the CrestFunds in exchange for the issuance of shares in the
Funds in a tax-free reorganization (see Note 8).
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust.
Basis of Presentation of Statements -- As more fully described in Note 8,
the STI Classic Funds acquired certain Crestar Funds in a tax-free business
combination. While each Fund now exists as an STI Classic Fund, a number of
the surviving funds for accounting purposes are Crestar Funds. In
accordance with generally accepted accounting principles, the financial
statements presented herein represent those of accounting survivors.
Accordingly, the Statements of Operations, Statements of Changes in Net
Assets and Financial Highlights presented reflect periods beginning on the
first day of the accounting survivor's fiscal year.
Security Valuation -- Investment securities held by the Equity 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 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,
84
<PAGE>
- --------------------------------------------------------------------------------
including accrued interest thereon, is sufficient in the event of default
of the counterparty. If the counterparty defaults and the value of the
collateral declines or if the counterparty enters into an insolvency
proceeding, realization of the collateral by the funds may be delayed or
limited.
Net Asset Value Per Share -- The net asset value per share of each fund is
calculated each business day, by dividing the total value of each fund's
assets, less liabilities, by the number of shares outstanding. The maximum
offering price per share for Investor shares of the Balanced, the Capital
Appreciation, the Growth and Income, the International Equity, the
International Equity Index, the Mid-Cap Equity, the Sunbelt Equity, and the
Value Income Stock Funds is equal to the net asset value per share plus a
sales load of 3.75%.
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 Balanced Fund 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
<PAGE>
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."
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 are declared and paid each calendar
quarter by the Equity Funds, except for the Emerging Markets Equity, the
International Equity, and the International Equity Index Funds. These funds
distribute income annually. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
Reclassification of Components of Net Assets -- The timing and
characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may
differ from generally accepted accounting principles. As a result, net
investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from
distributions during such period. These book/tax differences may be
temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to paid-in-capital or accumulated
net realized gain, as appropriate, in the period that the differences
arise. Accordingly, the following permanent differences, primarily
attributable to net operating losses and the classification of short-term
capital gains and ordinary income for tax purposes, have been reclassified
to/from the following accounts:
Undistributed
Accumulated Net Investment
Paid-in-Capital Realized Gain/ Income/(Loss)
(000) (Loss) (000) (000)
---------------------------------- --------------
Capital Appreciation
Fund.................. $ (175) $ -- $ 175
Emerging Markets
Equity Fund........... -- (11) 11
Growth and Income Fund.. (74) -- 74
Life Vision Balanced
Portfolio............. (11) -- 11
International Equity
Fund.................. -- 4 (4)
International Equity
Index Fund........... -- (240) 240
Life Vision Growth and
Income Portfolio..... (2) 31 (29)
Life Vision Maximum
Growth Portfolio...... (2) -- 2
Mid-Cap Equity Fund..... (1,783) (3) 1,786
Small Cap Equity
Fund.................. -- 4 (4)
Small Cap Growth Stock
Fund.................. (120) (146) 266
Sunbelt Equity Fund..... (2,424) 43 2,381
Tax Sensitive Growth
Stock Fund............ -- (48) 48
85
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
These reclassifications have no effect on net assets or net asset values
per share.
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
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 over a period of sixty months. 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.
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 and March 1, 1999 under which the
Administrator provides administrative services for an annual fee (expressed as a
percentage of the combined average daily net assets of the Trust and STI Classic
Variable Trust) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on
the next $3 billion, .065% on the next $2 billion and .06% for over $10 billion.
Prior to May 24, 1999, administrative and accounting services were provided to
the CrestFunds by SEI Investments Mutual Funds Services who was entitled to
receive a fee at an annual rate of .15% of the average daily net assets of the
CrestFunds. Additionally, SEI Investments Mutual Funds Services was entitled to
receive a minimum annual fee of $40,000 for each of the Life Vision Portfolios.
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.
<PAGE>
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".
Prior to May 24, 1999, the Distributor, a wholly owned subsidiary of SEI
Investments Co., served as distributor of each of the CrestFunds shares pursuant
to an agreement with the Company. The Trust Class and Investors Class A shares
of the CrestFunds had a separate distribution plan (the 12b-1 Plan) pursuant to
Rule 12b-1 under the 1940 Act. As provided in the 12b-1 Plan, the Trust Class
and Investors Class A shares of the CrestFunds paid the Distributor as
compensation for its services .15% of the aggregate average daily net assets of
such classes of the CrestFunds. The Distributor had voluntarily agreed to waive
any fees payable pursuant to the 12b-1 Plan except for the Value Fund Investors
Class A for which after April 15, 1999, eliminated the waiver. Additionally, the
Investors Class B Shares of the CrestFunds had a distribution plan (the B Shares
Plan) pursuant to Rule 12b-1 under the 1940 Act. As provided in the B Shares
Plan, the Investors Class B Shares of the CrestFunds paid the Distributor as
compensation for its services .75% of the aggregate average daily net assets of
such class of the Funds. In addition, pursuant to the B Shares Plan, the
Distributor was compensated at an annual rate of .25% of the B shares' average
net assets for providing ongoing Shareholder support services to investors in
B shares. The Distributor had agreed to waive a portion of its fees pursuant to
the B Shares Plan in order to limit Distribution Fees to .95% for each Fund,
except for the Value Fund for which the limit was .90%. Prior to April 15, 1999,
the limit was .75% for the Value Fund.
Prior to May 24, 1999, the CrestFunds had adopted a shareholder service plan
(the "Plan") for Trust Class
Shares of the Value Fund, Capital Appreciation Fund and Special Equity Fund.
Under the Plan, these Fund's paid the Distributor a negotiated fee at a rate of
up to .25% annually of the average daily net assets of such Fund attributable to
the shares that are subject to the arrangement in return for provision of a
broad range of shareholder and administrative services. The Distributor had
agreed to waive a portion of its shareholder service plan for trust class shares
in order to limit shareholder service fees to .10%.
86
<PAGE>
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
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
------ ------ ---------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Trusco:
Growth and
Income Fund .................... .90% 1.01% .25% 1.18% 1.00% 1.93%
Life Vision
Balanced
Portfolio ...................... .25% .25% -- -- -- --
Life Vision
Growth
and Income
Portfolio ...................... .25% .25 -- -- -- --
Life Vision
Maximum
Growth
Portfolio ...................... .25% .25% -- -- -- --
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%
Tax Sensitive
Growth Stock
Fund ........................... 1.15% 1.20% -- -- 1.00% 2.25%
STI Capital Management, N.A.:
Balanced
Fund ........................... .95% .97% .28% 1.27% 1.00% 2.03%
Capital
Appreciation
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%
</TABLE>
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.
<PAGE>
Prior to May 24, 1999 Crestar Asset Management Company ("CAMCO") provided
investment advisory services to the CrestFunds. CAMCO was paid for advisory
services at an annual rate of .75% of average daily net assets for the Capital
Appreciation Fund, Value Fund and Special Equity Fund, and .25% of average daily
net assets for the Life Vision Balanced Fund, Life Vision Growth and Income
Fund, and Life Vision Maximum Growth Fund.
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 May
31, 1999, were as follows:
Purchases Sales
(000) (000)
---------- --------
Balanced Fund .................................... $ 315,830 $ 268,552
Capital Appreciation Fund ........................ 2,986,076 2,742,705
Emerging Markets Equity Fund ..................... 16,762 21,044
Growth and Income Fund ........................... 199,292 206,221
International Equity Fund ........................ 931,039 926,353
International Equity Index Fund .................. 34,263 19,833
Life Vision Balanced Portfolio ................... 43,858 51,437
Life Vision Growth and Income Portfolio .......... 10,263 8,165
Life Vision Maximum Growth Portfolio ............. 7,051 5,893
Mid-Cap Equity Fund .............................. 235,353 332,718
Small Cap Equity Fund ............................ 200,349 231,019
Small Cap Growth Stock Fund ...................... 192,444 41,977
Sunbelt Equity Fund .............................. 273,317 428,696
Tax Sensitive Growth Stock Fund .................. 195,255 33,468
Value Income Stock Fund .......................... 1,237,452 1,543,957
The cost of U.S. Government security purchases and the proceeds from the sale of
U.S. Government Securities for the Balanced Fund during the period ended May 31,
1999, were $189,416 and $165,912, respectively.
At May 31, 1999, the Emerging Markets Equity Fund, Small Cap Equity Fund and
Sunbelt Equity Fund had capital loss carryforwards for federal tax purposes of
$4,447,790, $16,347,746 and $3,453,741, respectively, resulting from security
sales. For tax purposes, the losses in the funds can be carried forward for a
maximum of eight years to offset any net realized capital gains. The
carryforward for each of the funds expires in May 2007.
87
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
The following Funds had cumulative wash sales for the fiscal year ended May 31,
1999:
Fund Amount
- ---- ------
Balanced Fund ..................................... $ 907,255
Capital Appreciation Fund ......................... 1,727,191
Emerging Money Markets Equity Fund ................ 33,873
Growth and Income Fund ............................ 254,155
International Equity Fund ......................... 1,799,430
Life Vision Balanced Portfolio .................... 256,794
Life Vision Growth and Income
Portfolio ....................................... 230,291
Mid-Cap EquityFund ................................ 303,398
Small Cap Equity Fund ............................. 849,386
Small Cap Growth Stock Fund ....................... 382,100
Sunbelt Equity Fund ............................... 3,289,602
The wash sale losses cannot be used for Federal income tax purposes and are
deferred.
Subsequent to October 31, 1998, the Fund recognized net capital losses for tax
purposes of $3,057,379, $31,417,083, and $9,959,452 in the Emerging Markets
Equity, Small Cap Equity, and Sunbelt Equity Funds, respectively, that have
been deferred to 1999 and can be used to offset future capital gains at May
31, 1999.
At May 31, 1999, 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 May 31, 1999, were as follows:
Aggregate Aggregate Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation/
Appreciation Depreciation Depreciation
------------ ------------ ------------
Balanced Fund ..................... $ 43,946 $ (6,383) $ 37,563
Capital Appreciation Fund ......... 599,142 (53,463) 545,679
Emerging Markets Equity Fund ...... 3,887 (5,989) (2,102)
Growth and Income Fund ............ 186,417 (9,020) 177,397
International Equity Fund ......... 62,199 (24,918) 37,281
International Equity Index Fund ... 19,507 (5,110) 14,397
Life Vision Balanced Portfolio .... 6,479 (1,435) 5,044
Life Vision Growth and
Income Portfolio ............... 1,601 (256) 1,345
Life Vision Maximum
Growth Portfolio ............... 2,052 (209) 1,843
Mid-Cap Equity Fund ............... 46,226 (17,128) 29,098
Small Cap Equity Fund ............. 18,487 (34,256) (15,769)
Small Cap Growth Stock Fund ....... 19,400 (6,020) 13,380
Sunbelt Equity Fund ............... 57,241 (9,250) 47,991
Tax Sensitive Growth Stock Fund ... 61,975 (1,644) 60,331
Value Income Stock Fund ........... 204,487 (76,846) 127,641
<PAGE>
7. Common Trust Fund Conversion
On December 11, 1998, the SunTrust Quality Growth Stock Common Trust Fund of
SunTrust was converted into the STI Classic Tax Sensitive Growth Stock Fund.
The assets, which consisted of securities and related receivables, were
converted on a tax free basis. At the time of conversion 3,874,558 of Trust
Class shares were issued. The net assets of the Sun Trust Quality Growth Stock
Common Trust Fund immediately before the conversion were $99,222,180, which
included unrealized appreciation of $45,523,361.
88
<PAGE>
- --------------------------------------------------------------------------------
8. CrestFunds Merger
The Board of Directors and shareholders of the CrestFunds approved a
reorganization of the CrestFunds into STI Classic Funds which took place at the
close of business on May 17, 1999 (May 24, 1999 for Growth and Income Fund, Life
Vision Balanced Portfolio, Life Vision Growth and Income Portfolio, Life Vision
Maximum Growth Portfolio). The following table summarizes certain relevant
information of the Funds prior to and immediately after the business
combinations on May 17, 1999 and May 24, 1999 and is unaudited:
Shares
Outstanding Unrealized
on Merger Appreciation
CrestFunds Date (Depreciation)
- ---------- ----------- --------------
Capital Appreciation
Trust Shares ........................ 7,017,951 $ 50,852,434
Investor Class A .................... 634,910 4,570,273
Investor Class B .................... 405,693 945,904
Special Equity
Trust Shares ........................ 6,434,126 8,484,235
Investor Class A .................... 335,109 461,214
Investor Class B .................... 439,353 (115,351)
Value Fund (1)
Trust Shares ........................ 39,426,216 185,105,926
Investor Class A .................... 2,284,756 7,740,403
Investor Class B .................... 2,164,932 4,552,822
Life Vision Balanced (1)
Trust Shares ........................ 8,168,631 6,271,120
Life Vision Growth and Income (1)
Trust Shares ........................ 2,130,709 1,682,009
Life Vision Maximum Growth (1)
Trust Shares ........................ 1,650,909 2,180,220
* Investor Class A shares of CrestFund Special Equity were exchanged for Trust
Shares of STI Small Cap Growth Stock.
(1) Represents the accounting survivor in this business combination.
<PAGE>
Shares Issued Net Assets NAV
in Business after Per
STI Classic Fund Combination Combination Share
- ---------------- ----------- ----------- -----
Capital Appreciation (1)
Trust Shares ................... 8,202,045 $2,043,356,370 $ 17.02
Investor Shares ................ 738,260 321,669,847 16.93
Flex Shares .................... 474,357 165,340,901 16.58
Small Cap Growth Stock (1)
Trust Shares ................... 6,174,359 153,356,352 14.40
Investor Shares ................ -- -- --
Flex Shares .................... 188,473 5,980,718 14.32
Growth and Income
Trust Shares ................... 39,426,216 649,230,675 16.47
Investor Shares ................ 2,284,756 37,909,335 16.59
Flex Shares .................... 2,164,932 35,677,567 16.48
Life Vision Balanced
Trust Shares ................... 8,168,631 89,406,305 10.95
Life Vision Growth and Income
Trust Shares ................... 2,130,709 22,352,880 10.49
Life Vision Maximum Growth
Trust Shares ................... 1,650,909 19,002,404 11.51
89
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999
To the Shareholders and Board of Trustees of
STI Classic Funds:
We have audited the accompanying statements of net assets of the Balanced,
Capital Appreciation, Emerging Markets Equity, Growth & Income, International
Equity, Mid-Cap Equity, Small Cap Equity, Small Cap Growth, Sunbelt Equity, Tax
Sensitive Growth, Value Income Stock Funds, Life Vision Balanced, Life Vision
Growth & Income, and Life Vision Maximum Growth Portfolios, and the statements
of assets and liabilities, including the schedule of investments, of the
International Equity Index Funds of STI Classic Funds (the "Trust") as of May
31, 1999, and the related statements of operations, changes in net assets, and
financial highlights for the periods presented, excluding the period indicated
below. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The statements of operations for the year ended November 30, 1998,
statements of changes for the years ended November 30, 1998 and November 30,
1997, and financial highlights for the periods prior to May 31, 1999, for the
Growth & Income Fund, Life Vision Balanced, Life Vision Growth & Income, and
Life Vision Maximum Growth Portfolios were audited by other auditors whose
report dated January 15, 1999, expressed an unqualified opinion on this
information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of May 31, 1999, by correspondence with the custodian and
the application of alternative auditing procedures with respect to unsettled
securities transactions. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights audited by us
present fairly, in all material respects, the financial position of the
Balanced, Capital Appreciation, Emerging Markets Equity, Growth & Income,
International Equity, International Equity Index, Mid-Cap Equity, Small Cap
Equity, Small Cap Growth, Sunbelt Equity, Tax Sensitive Growth, and Value Income
Stock Funds, the Life Vision Balanced Life Vision Growth & Income, and Life
Vision Maximum Growth Portfolios, of STI Classic Funds as of May 31, 1999, the
results of their operations, changes in their net assets, and financial
highlights for each of the periods described in the first paragraph above, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
July 23, 1999
90
<PAGE>
<TABLE>
<S> <C>
NOTICE TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS May 31, 1999 Unaudited
</TABLE>
For shareholders that do not have a May 31, 1999 tax year end, this notice is
for informational purposes only. For shareholders with a May 31, 1999 tax year
end, please consult your tax advisor as to the pertinence of this notice. For
the fiscal year ended May 31, 1999, each portfolio is designating the following
items with regard to distributions paid during the year:
<TABLE>
<CAPTION>
Long Term Foreign
(20% Rate) Ordinary Tax
Capital Gains Income Tax-Exempt Total Qualifying Withholding
Fund Distributions Distributions Interest Distributions Dividends(1) Pass Through(2)
- -------------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Balanced Fund 35.30% 64.70% 0.00% 100.00% 11.74% --%
Capital Appreciation Fund 54.78% 45.22% 0.00% 100.00% 14.67% --%
Emerging Markets Equity Fund 0.00% 100.00% 0.00% 100.00% 0.00% 11.35%
Growth and Income Fund 80.44% 19.56% 0.00% 100.00% 90.34% --%
International Equity Fund 53.89% 46.11% 0.00% 100.00% 0.00% 4.52%
International Equity Index Fund 86.80% 13.20% 0.00% 100.00% 0.00% 6.19%
Life Vision Balanced Portfolio 41.73% 58.27% 0.00% 100.00% 36.19% --%
Life Vision Growth and Income Portfolio 46.39% 53.61% 0.00% 100.00% 46.82% --%
Life Vision Maximum Growth Portfolio 50.94% 49.06% 0.00% 100.00% 76.43% --%
Mid-Cap Equity Fund 46.90% 53.10% 0.00% 100.00% 10.81% --%
Small Cap Equity Fund 16.78% 83.22% 0.00% 100.00% 38.00% --%
Small Cap Growth Stock Fund 0.00% 100.00% 0.00% 100.00% 11.73% --%
Sunbelt Equity Fund 71.61% 28.39% 0.00% 100.00% 0.00% --%
Tax Sensitive Growth Stock Fund 0.00% 100.00% 0.00% 100.00% 89.31% --%
Value Income Stock Fund 48.03% 51.97% 0.00% 100.00% 59.02% --%
</TABLE>
- ------------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of "Ordinary
Income Distribution".
(2) Foreign tax credit pass through represents the amount eligible for the
foreign tax credit and is reflected as a percentage of "Ordinary Income
Distribution".
91
<PAGE>
NOTES
<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.
