Semi-Annual
Financial Report
STI CLASSIC VARIABLE TRUST
June 30, 1999
[STI Classic Variable Logo Omitted]
<PAGE>
Dear STI Classic Variable Trust Shareholders:
The following 1999 Semi-Annual Financial Report provides you a detailed summary
of each of the STI Classic Variable Trust Funds. The STI Classic Funds and the
STI Classic Variable Trust Funds have presented investors exposure to a variety
of investment opportunities since 1992. The six STI Classic Variable Trust
Funds were developed specifically to meet the rapidly changing needs of today's
investor. Each of these funds offers an investment discipline that identifies a
specific mix of risk and return. Together, the STI Classic Variable Trust Funds
complement one another, providing access to different segments of the stock and
bond markets. The combination of these funds is intended to offer the ideal
investment program for almost any investor.
<TABLE>
<CAPTION>
STI Classic Variable Trust Funds (unaudited)
Net of Fees Performance as of June 30, 1999
Three Since Inception Inception
Months One Year Three Years (Annualized) Date
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STI Classic Variable Trust
Value Income Stock Fund 14.48% 15.24% 19.71% 20.41% 10/2/95
- -------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Mid-Cap Equity Fund 9.84% 6.27% 14.94% 14.64% 10/2/95
- -------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Small Cap Equity Fund 19.34% (9.23%) n/a (6.74%) 10/22/97
- -------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Capital Appreciation Fund 8.56% 19.40% 29.32% 28.83% 10/2/95
- -------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Investment Grade Bond Fund (1.22%) 2.92% 6.73% 5.91% 10/2/95
- -------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
International Equity Fund 2.68% (1.50%) n/a 12.05% 11/7/96
- -------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RETURNS.
</TABLE>
The STI Classic Variable Trust is a well-established family of mutual funds,
nationally recognized for the diversity and quality of investment options that
they provide. As the advisor to the STI Classic Variable Trust, STI Capital
Management is committed to providing you quality investment products which will
aid you in achieving your investment objectives.
I hope you will find the information on the following pages useful. It is
intended to give you a better understanding of how our portfolio managers are
investing your money. Thank you for your interest and participation in the STI
Classic Variable Trust. We look forward to many successful years of investing
in the future.
Sincerely,
/s/Signature omitted
Anthony R. Gray
Chief Executive Officer and Chief Investment Officer
STI Capital Management, N.A.
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
VALUE INCOME STOCK FUND
- -------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- -------------------------------------------------------------
COMMON STOCKS (89.0%)
BASIC MATERIALS (10.9%)
Allegheny Teledyne 64,800 $ 1,466
B.F. Goodrich 35,700 1,517
Boise Cascade 35,200 1,509
Consolidated Papers 26,300 703
Du Pont (EI) de Nemours 16,600 1,134
Engelhard 42,300 957
Hercules 30,000 1,179
Minnesota Mining & Manufacturing 13,400 1,165
Reynolds Metals 17,200 1,015
Sonoco Products 42,630 1,276
Worthington Industries 38,800 638
-------
12,559
-------
CAPITAL GOODS (12.6%)
Cooper Industries 35,700 1,856
Corning 8,600 603
Crown Cork & Seal 22,400 638
Dana 19,000 875
Emerson Electric 24,400 1,534
Harris 23,900 937
Hubbell, Cl B 22,500 1,021
National Service Industries 32,500 1,170
Northrop Grumman 26,000 1,724
Pall 48,800 1,083
Raytheon, Cl B 11,400 802
Tenneco 36,700 876
Thomas & Betts 31,600 1,493
-------
14,612
-------
COMMUNICATION SERVICES (3.5%)
Alltel 11,400 815
GTE 43,200 3,272
-------
4,087
-------
CONSUMER CYCLICALS (11.1%)
Albertson's 33,000 1,702
American Greetings, Cl A 29,100 877
Genuine Parts 34,300 1,200
H&R Block 36,400 1,820
J.C. Penney 43,000 2,088
Masco 58,900 1,701
Ryder 33,100 861
Stanley Works 37,100 1,194
TRW 25,800 1,416
-------
12,859
-------
- -------------------------------------------------------------
Shares Value (000)
- -------------------------------------------------------------
CONSUMER STAPLES (12.3%)
Bestfoods 33,900 $ 1,678
ConAgra 84,800 2,258
Dean Foods 28,600 1,189
Flowers Industries 13,100 284
Fortune Brands 29,800 1,233
H.J. Heinz 23,300 1,168
International Flavors & Fragrances 38,100 1,691
Kimberly Clark 35,500 2,023
McCormick 26,400 833
Newell Rubbermaid 25,300 1,176
Wallace Computer Services 28,900 722
-------
14,255
-------
ENERGY (6.7%)
Atlantic Richfield 15,700 1,312
Baker Hughes 27,500 921
Fort James 21,800 826
Kerr-McGee 17,100 858
Murphy Oil 19,100 932
Texaco 26,500 1,657
Unocal 31,600 1,252
-------
7,758
-------
FINANCE (16.4%)
Allstate 33,500 1,202
American Financial Group 22,800 777
American General 14,700 1,108
Bank of America 35,700 2,617
Bank One 39,900 2,377
BankBoston 31,100 1,590
Cigna 17,400 1,549
First American of Tennessee 20,400 848
Hibernia, Cl A 47,900 751
KeyCorp 41,200 1,324
Paine Webber Group 15,800 739
PNC Bank 26,200 1,510
Summit Bancorp 27,000 1,129
Torchmark 19,100 652
Union Planters 18,636 833
-------
19,006
-------
HEALTH CARE (9.0%)
Abbott Laboratories 52,300 2,380
American Home Products 53,100 3,053
Baxter International 44,600 2,704
2
<PAGE>
- -------------------------------------------------------------------------------
UNAUDITED
- ---------------------------------------------------------------
SHARES/FACE VALUE)
AMOUNT(000) (000)
- ---------------------------------------------------------------
HEALTH CARE (CONTINUED)
Bristol-Myers Squibb 16,300 $ 1,148
Pharmacia Upjohn ADR 20,100 1,142
--------
10,427
--------
TECHNOLOGY (3.5%)
EG&G 39,300 1,400
Xerox 44,100 2,605
--------
4,005
--------
UTILITIES (3.0%)
Consolidated Natural Gas 11,500 699
GPU 20,700 873
Questar 47,500 908
Scana 41,200 963
--------
3,443
--------
Total Common Stocks
(Cost $93,410) 103,011
--------
REPURCHASE AGREEMENT (10.6%)
Morgan Stanley
4.850%, dated 06/30/99,
matures 07/01/99, repurchase
price $12,225,286 (collateralized
by U.S. Agency Obligations:
market value $12,485,692)(A) $12,224 12,224
--------
Total Repurchase Agreement
(Cost $12,224) 12,224
--------
Total Investments (99.6%)
(Cost $105,634) 115,235
--------
OTHER ASSETS AND LIABILITIES, NET (0.4%) 427
--------
- ---------------------------------------------------------------
VALUE (000)
- ---------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 6,858,477 outstanding
shares of beneficial interest $ 92,270
Accumulated net realized gain on
investments 13,606
Net unrealized appreciation on
investments 9,601
Undistributed net investment income 185
--------
Total Net Assets (100.0%) $115,662
========
Net Asset Value, Offering and Redemption
Price Per Share $16.87
========
ADR -- American Depository Receipt
Cl -- Class
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
MID-CAP EQUITY FUND
- ---------------------------------------------------------------
SHARES VALUE (000)
- ---------------------------------------------------------------
COMMON STOCKS (83.8%)
Basic Materials (2.2%)
Stillwater Mining* 20,600 $ 673
------
CAPITAL GOODS (8.9%)
Allied Waste Industries* 54,000 1,067
Herman Miller 24,300 510
L-3 Communications* 9,400 454
Motivepower Industries Holdings* 15,000 270
Watsco 24,300 398
------
2,699
------
CONSUMER CYCLICALS (13.2%)
BJs Wholesale Club* 21,000 631
Ethan Allen Interiors 9,750 368
Family Dollar Stores 35,800 859
Harley-Davidson 5,600 305
Men's Wearhouse* 37,050 945
Ralph Lauren* 10,600 201
Staff Leasing* 17,600 227
Tandy 9,400 459
------
3,995
------
CONSUMER STAPLES (15.4%)
Dial 9,800 365
Flowers Industries 19,300 419
Imax* 33,500 754
Interstate Bakeries 23,100 518
Keebler Foods* 8,400 255
McCormick 15,300 483
Nordstrom 3,700 124
Norrell 14,000 263
Papa John's International* 13,100 585
US Foodservice* 21,000 895
------
4,661
------
ENERGY (6.1%)
Anadarko Petroleum 4,100 151
Ensco International 11,100 221
Ensearch Exploration* 16,466 114
Global Marine* 13,700 212
Nabors Industries* 9,900 242
Precision Drilling* 16,100 307
Smith International* 7,200 313
Weatherford International* 7,900 289
------
1,849
------
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
FINANCE (9.6%)
Bank United, Cl A 8,000 $ 322
Colonial Bancgroup 25,700 358
Dime Bancorp 14,800 298
First Virginia Banks 7,600 373
Hibernia, Cl A 22,700 356
North Fork Bancorporation 22,200 473
Peoples Heritage Financial Group 19,400 365
Trustmark 16,600 380
------
2,925
------
HEALTH CARE (10.9%)
Acuson Corp* 11,700 201
Forest Laboratories* 11,400 527
HCR Manor Care* 17,000 411
Jones Pharmaceuticals 9,400 370
Mylan Laboratories 17,500 464
Quintiles Transnational* 16,900 710
Renal Care* 11,800 305
Watson Pharmaceuticals* 9,600 337
------
3,325
------
TECHNOLOGY (15.9%)
ADC Telecommunications* 16,800 766
Ceridian* 16,100 526
Fiserv* 13,575 425
Flextronics International* 5,200 289
New Era of Networks* 9,000 395
Nova* 22,787 570
Sanmina* 3,900 296
Sawtek* 16,200 743
Siebel Systems* 6,400 424
Teradyne* 5,600 402
------
4,836
------
TRANSPORTATION (1.6%)
CNF Transportation 12,500 480
------
Total Common Stocks
(Cost $22,282) 25,443
------
4
<PAGE>
- -------------------------------------------------------------------------------
UNAUDITED
- ------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
PREFERRED STOCKS (3.3%)
COMMUNICATION SERVICES (3.3%)
Adelphia Communications,
CV to 2.4555 shares* 4,500 $ 905
Winstar Communications Inc,
CV to 16.1391 shares* (B) 100 97
------
1,002
------
Total Preferred Stocks
(Cost $999) 1,002
------
CONVERTIBLE BONDS (5.8%)
Chiron Convertible,
CV to 34.59 shares,
Callable 08/16/99 @ 95.08 (A)
1.900%, 11/17/00 $ 250 246
Citrix Systems,
CV to 7.0306 shares,
Callable 03/22/04 @ 45.96 (A) (B)
0.000%, 03/22/19 1,250 556
0.000%, 03/22/19 825 377
Sanmina,
CV to 11.278 shares,
Callable 05/06/02 @ 101.70 (A)
4.250%, 05/01/04 150 167
Sepracor,
CV to 21.111 shares,
Callable 02/18/01 @ 103.57
6.250%, 02/15/05 165 312
Wellpoint Health,
CV to 6.797 shares,
Callable 07/02/02 @ 71.298 (B)
0.000%, 07/02/19 150 101
------
Total Convertible Bonds
(Cost $1,633) 1,759
------
REPURCHASE AGREEMENT (5.6%)
Morgan Stanley
4.700%, dated 06/30/99, matures
07/01/99, repurchase price
$1,697,254 (collateralized by
U.S. Treasury Note: market
value $1,743,339) (C) 1,697 1,697
------
Total Repurchase Agreement
(Cost $1,697) 1,697
------
- -------------------------------------------------------------
VALUE (000)
- -------------------------------------------------------------
Total Investments (98.5%)
(Cost $26,611) $29,901
------
OTHER ASSETS AND LIABILITIES, NET (1.5%) 451
------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 2,107,681 outstanding
shares of beneficial interest 24,681
Accumulated net realized gain on
investments 2,428
Net unrealized appreciation on
investments 3,290
Distributions in excess of net investment
income (47)
------
Total Net Assets (100.0%) 30,352
======
Net Asset Value, Offering and Redemption
Price Per Share $14.40
======
* Non-income producing security
Cl -- Class
CV -- Convertible Security
(A) Private Placement Security
(B) Zero Coupon Bond
(C) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
SMALL CAP EQUITY FUND
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
COMMON STOCKS (98.2%)
BASIC MATERIALS (11.8%)
Calgon Carbon 22,600 $ 134
Carpenter Technology 9,600 274
Lilly Industries
Incorporated, Cl A 21,100 392
Quixote 10,100 123
Texas Industries 10,100 391
Wausau-Mosinee Paper 9,300 167
------
1,481
------
CAPITAL GOODS (13.1%)
Belden 4,000 96
Furon 7,900 150
Gerber Scientific 9,100 201
Kaman 10,200 160
Kaydon 1,800 61
Lindberg 8,700 98
LSI Industries 8,500 205
Pittway, Cl A 6,800 233
Precision Castparts 6,100 259
Smith (A.O.) 6,500 182
------
1,645
------
CONSUMER CYCLICALS (19.7%)
American Woodmark 5,500 194
Angelica 5,700 101
Bush Industries 16,300 271
Chemed 3,900 130
Federal Signal 5,400 114
Harman International 10,600 466
Interface 49,600 428
K2 7,300 65
Midas 4,200 119
Oshkosh Truck 3,400 171
Pep Boys 6,300 136
Pillowtex 6,200 101
Sturm Ruger 1,800 19
TAG Heuer International ADR 15,000 156
------
2,471
------
CONSUMER STAPLES (24.4%)
Bowne & Company 12,700 165
Heilig-Meyers 31,300 213
Ingles Markets, Cl A 10,000 153
Norrell 32,500 611
- --------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Pittston Services Group 9,200 $ 246
Polaroid 17,200 475
Smucker (J.M.), Cl B 6,100 116
Standard Register 6,400 197
Universal Foods 16,300 344
WD-40 4,400 110
Wolverine World Wide 23,900 335
York Group 12,500 94
------
3,059
------
ENERGY (1.3%)
Fletcher Challenge Energy ADR 5,100 138
UGI 1,400 28
------
166
------
FINANCE (9.7%)
Administradora de Fondos de
Pensiones Provida ADR* 5,100 112
Banco Latinamericano de
Exportaciones, Cl E 3,500 94
Chicago Title 4,400 157
Downey Financial 6,000 132
Klamath First Bancorp 6,300 95
Scottish Annuity & Life 12,700 137
Seacoast Banking of Florida 3,100 95
Stirling Cooke Brown Holdings 4,700 19
Student Loan 4,100 182
West Coast Bancorp 5,100 89
Westerfed Financial 6,500 106
------
1,218
------
HEALTH CARE (7.5%)
Block Drug, Cl A 2,972 124
Medeva PLC ADR 22,800 160
Mentor 28,200 525
Vital Signs 6,300 126
------
935
------
TECHNOLOGY (1.9%)
Innovex 9,100 127
Pioneer-Standard Electronics 9,700 116
------
243
------
6
<PAGE>
- -------------------------------------------------------------------------------
UNAUDITED
- -------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------
TRANSPORTATION (6.5%)
Bandag 8,200 $ 284
Knightsbridge Tankers Limited 7,000 123
Sea Containers 11,300 379
Western Star Truck Holdings 1,600 25
------
811
------
UTILITIES (2.3%)
NUI 7,500 188
United Water Resources 4,400 100
------
288
------
Total Common Stocks
(Cost $12,531) 12,317
------
REPURCHASE AGREEMENT (2.3%)
Morgan Stanley
4.500%, dated 06/30/99, matures
07/01/99, repurchase price
$293,961 (collateralized by
U.S. Treasury Note: market
value $301,301) (A) $294 294
------
Total Repurchase Agreement
(Cost $294) 294
------
Total Investments (100.5%)
(Cost $12,825) 12,611
------
- -------------------------------------------------------------
VALUE (000)
- -------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-0.5%) $ (68)
-------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 1,442,213
outstanding shares of beneficial interest 14,501
Accumulated net realized loss on
investments (1,764)
Net unrealized depreciation on
investments (214)
Undistributed net investment income 20
-------
Total Net Assets (100.0%) $12,543
=======
Net Asset Value, Offering and Redemption
Price Per Share $8.70
=======
* Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
PLC -- Public Limited Corporation
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
CAPITAL APPRECIATION FUND
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
COMMON STOCKS (93.4%)
BASIC MATERIALS (1.7%)
Air Products & Chemicals 48,700 $ 1,960
Ecolab 2,200 96
Rohm & Haas 4,757 204
------
2,260
------
CAPITAL GOODS (12.2%)
Allied Waste Industries* 23,600 466
Browning Ferris Industries 2,200 95
General Electric 45,200 5,108
Honeywell 11,200 1,298
Lockheed Martin 5,900 220
Republic Services, Cl A* 23,400 579
Textron 12,400 1,021
Tyco International 31,040 2,941
United Technologies 27,700 1,986
Waste Management Inc* 44,369 2,385
------
16,099
------
COMMUNICATION SERVICES (3.5%)
AT&T 15,549 868
Centurytel 27,300 1,085
Fox Entertainment Group, Cl A* 11,000 296
GTE 11,200 848
MCI WorldCom* 12,112 1,042
Nokia, Cl A ADR 4,400 403
Vodafone ADR 750 148
------
4,690
------
CONSUMER CYCLICALS (18.1%)
Albertson's 10,065 519
Automatic Data Processing 7,800 343
Carnival 35,600 1,727
Costco* 27,300 2,186
CVS 36,200 1,837
Dayton Hudson 10,100 656
Eastman Kodak 1,800 122
Federated Department Stores* 6,300 334
Gannett 20,400 1,456
Hasbro 31,400 877
Home Depot 1,900 122
Interpublic Group 1,400 121
Lear* 15,700 781
Lowe's Companies 50,400 2,857
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Masco 60,700 $ 1,753
Mattel 34,300 907
Maytag 5,600 390
McGraw-Hill 17,800 960
New York Times, Cl A 11,500 423
Office Depot* 82,100 1,811
Promus Hotel* 6,600 205
Saks* 28,500 823
SPX* 3,700 309
Starwood Hotels and Resorts 12,800 391
Tandy 41,300 2,019
Young & Rubicam 600 27
------
23,956
------
CONSUMER STAPLES (12.4%)
Anheuser Busch 5,100 362
Avon Products 10,900 605
Cendant* 62,206 1,275
Clorox 7,400 790
Coca-Cola 23,200 690
ConAgra 22,201 591
Flowers Industries 12,100 262
Fort James 8,000 303
Gillette 1,600 66
Kroger* 60,700 1,696
McDonald's 8,900 368
Nabisco Group Holdings 34,700 679
Pepsi Bottling Group* 21,800 503
PepsiCo 24,600 952
Philip Morris 6,000 241
Procter & Gamble 6,000 535
Ralston Purina 24,300 740
Rite Aid 45,700 1,125
Safeway* 19,400 960
Sara Lee 38,400 871
Seagram 4,800 242
Suiza Foods* 3,000 126
Unilever NV 882 62
US Foodservice* 20,600 878
United Rentals* 23,300 687
Viacom, Cl B* 18,200 801
------
16,410
------
8
<PAGE>
- -------------------------------------------------------------------------------
UNAUDITED
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
ENERGY (3.1%)
Anadarko Petroleum 8,600 $ 317
Atlantic Richfield 6,700 560
Halliburton 1,800 81
Mobil 5,700 564
Niagara Mohawk Holdings* 7,500 120
Texaco 31,000 1,937
Union Pacific Resources Group 1,201 20
Unocal 12,700 503
-------
4,102
-------
FINANCE (11.5%)
Ace 20,100 568
Allstate 10,000 359
American International Group 11,103 1,300
Associates First Capital 13,600 603
Bank of America 16,042 1,176
Bank of New York 11,300 415
Bank One 13,860 825
Bank United, Cl A 7,300 293
BankBoston 12,800 654
Citigroup 4,500 214
Compass Bancshares 18,150 495
Conseco 26,300 801
FHLMC 8,400 487
First American of Tennessee 3,400 141
First Security 15,600 425
Household International 19,866 941
Mellon Bank 39,400 1,433
Morgan Stanley 1,700 174
North Fork Bancorporation 13,300 283
PNC Bank 13,500 778
Providian Financial 1,600 150
Radian Group 2,100 103
Torchmark 23,500 802
U.S. Bancorp 14,900 507
Unum 9,400 515
Washington Mutual 24,368 862
Wells Fargo 1,200 52
-------
15,356
-------
HEALTH CARE (11.3%)
Abbott Laboratories 27,200 1,238
Alza* 15,200 773
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
HEALTH CARE (CONTINUED)
American Home Products 15,400 $ 885
Baxter International 20,600 1,249
Becton Dickinson 13,100 393
Bristol-Myers Squibb 24,300 1,712
Cardinal Health 16,633 1,067
Eli Lilly 11,400 816
Forest Laboratories* 11,600 536
Health Management
Associates, Cl A* 11,800 133
Healthsouth* 30,302 453
Medtronic 4,904 382
Merck 32,400 2,398
Schering Plough 8,300 440
Tenet Healthcare* 24,800 460
Warner Lambert 27,200 1,887
Watson Pharmaceuticals* 3,900 137
------
14,959
------
TECHNOLOGY (18.8%)
ADC Telecommunications* 15,500 706
3Com* 5,500 147
Amgen* 4,500 274
Analog Devices* 12,200 612
BMC Software* 2,400 130
Ceridian* 44,200 1,445
Cisco Systems* 43,800 2,822
Compaq Computer 3,824 92
Computer Sciences* 3,900 270
Comverse Technology* 1,400 106
EMC* 25,600 1,408
Hewlett Packard 14,200 1,427
IBM 35,400 4,575
Intel 15,700 934
Lucent Technologies 18,810 1,268
Microsoft* 36,700 3,310
Networks Associates* 19,208 282
Nortel Networks 10,200 885
Raytheon, Cl B 2,800 197
Sun Microsystems* 21,800 1,501
Texas Instruments 7,400 1,073
Xerox 23,200 1,370
-------
24,834
-------
9
<PAGE>
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
CAPITAL APPRECIATION FUND--CONCLUDED
- -------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- -------------------------------------------------------------
TRANSPORTATION (0.7%)
AMR* 1,700 $ 116
Burlington Northern Santa Fe 11,100 344
Delta Air Lines 6,200 357
Trans World Air* 2,400 81
-------
898
-------
UTILITIES (0.1%)
Consolidated Natural Gas 1,800 109
-------
Total Common Stocks
(Cost $97,103) 123,673
-------
PREFERRED STOCKS (0.2%)
CONSUMER CYCLICALS (0.2%)
Comcast, CV to 1.425 Shares 3,300 285
-------
Total Preferred Stocks
(Cost $272) 285
-------
REPURCHASE AGREEMENT (5.2%)
Morgan Stanley
4.850%, dated 06/30/99, matures
07/01/99, repurchase price
$6,897,756 (collateralized by
U.S. Agency Obligations:
market value $7,044,804) (A) $6,897 6,897
--------
Total Repurchase Agreement
(Cost $6,897) 6,897
--------
Total Investments (98.8%)
(Cost $104,272) 130,855
--------
OTHER ASSETS AND LIABILITIES, NET (1.2%) 1,525
--------
- -------------------------------------------------------------
VALUE (000)
- -------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 5,983,298 outstanding
shares of beneficial interest $ 93,502
Accumulated net realized gain on
investments 12,235
Net unrealized appreciation on
investments 26,583
Undistributed net investment income 60
--------
Total Net Assets (100.0%) $132,380
========
Net Asset Value, Offering and Redemption
Price Per Share $22.13
========
* Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
CV -- Convertible Security
FHLMC -- Federal Home Loan Mortgage Corporation
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
- -------------------------------------------------------------------------------
Unaudited
INVESTMENT GRADE BOND FUND
- -------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- -------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (35.8%)
U.S. Treasury Bonds
7.500%, 11/15/16 $1,500 $ 1,689
8.125%, 08/15/19 1,250 1,507
U.S. Treasury Notes
5.000%, 04/30/01 1,200 1,190
5.750%, 08/15/03 2,250 2,244
5.875%, 11/15/05 375 374
6.125%, 08/15/07 900 909
-------
Total U.S. Treasury Obligations
(Cost $7,815) 7,913
-------
CORPORATE OBLIGATIONS (56.3%)
COMMUNICATION SERVICES (8.2%)
AT&T
6.000%, 03/15/09 500 472
6.500%, 03/15/29 225 203
AT&T Capital, MTN
6.890%, 01/25/02 525 524
Sprint Capital
6.375%, 05/01/09 250 237
6.900%, 05/01/19 400 373
-------
1,809
-------
ENERGY (2.3%)
Florida Power & Light
5.875%, 04/01/09 550 517
-------
FINANCE (37.5%)
Aon
6.900%, 07/01/04 650 649
Aristar
7.250%, 06/15/06 500 501
Associates
6.250%, 11/01/08 450 426
Bank of America
6.625%, 06/15/04 400 396
Cit Group Holdings
6.500%, 06/14/02 550 551
Conseco
6.800%, 06/15/05 350 328
6.400%, 06/15/11 300 294
- -------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
FINANCE (CONTINUED)
Conseco, MTN
7.600%, 06/21/01 $ 300 $ 300
Countrywide Home Loan
6.850%, 06/15/04 500 494
Countrywide Home Loan,
Ser F, MTN
6.510%, 02/11/05 300 291
Donaldson Lufkin Jenrette, MTN
6.150%, 05/04/04 200 194
Finova Capital
6.110%, 02/18/03 400 393
6.750%, 03/09/09 150 145
Goldman Sachs
6.650%, 05/15/09 200 193
Great Western Financial
8.600%, 02/01/02 100 103
Household Finance
5.875%, 02/01/09 450 410
Merrill Lynch
6.000%, 02/17/09 100 92
Paine Webber Group, Ser C, MTN
6.020%, 04/22/02 500 489
Provident
7.000%, 07/15/18 550 524
Reliastar Financial
6.500%, 11/15/08 350 331
Salomon
7.300%, 05/15/02 250 256
6.250%, 01/15/05 250 238
Wachovia
6.700%, 06/21/04 500 503
5.625%, 12/15/08 200 183
-------
8,284
-------
INDUSTRIAL (6.5%)
Bausch & Lomb
6.150%, 08/01/01 (A) 400 397
6.750%, 12/15/04 150 146
Dillards
6.430%, 08/01/04 450 434
Philip Morris
7.250%, 09/15/01 300 304
7.500%, 04/01/04 150 154
-------
1,435
-------
11
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
INVESTMENT GRADE BOND FUND--CONCLUDED
- -------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
UTILITIES (1.8%)
Trans-Canada Pipelines
7.150%, 06/15/06 $400 402
-------
Total Corporate Obligations
(Cost $12,677) 12,447
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS (3.5%)
FHLMC
5.750%, 03/15/09 800 761
-------
Total U.S. Government Agency Obligations
(Cost $757) 761
-------
REPURCHASE AGREEMENT (2.8%)
Morgan Stanley
4.500%, dated 06/30/99, matures
07/01/99, repurchase price $622,666
(collateralized by U.S. Treasury
Note: market value $638,215) (B) 623 623
-------
Total Repurchase Agreement
(Cost $623) 623
-------
Total Investments (98.4%)
(Cost $21,872) 21,744
-------
OTHER ASSETS AND LIABILITIES, NET (1.6%) 355
-------
- -------------------------------------------------------------
VALUE (000)
- -------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 2,182,864 outstanding
shares of beneficial interest $22,252
Accumulated net realized loss
on investments (23)
Net unrealized depreciation
on investments (128)
Distribution in excess of net investment
income (2)
-------
Total Net Assets (100.0%) $22,099
=======
Net Asset Value, Offering and Redemption
Price Per Share $10.12
=======
FHLMC -- Federal Home Loan Mortgage Corporation
MTN -- Medium Term Note
Ser -- Series
(A) Variable rate security. The rate reported on the Statement
of Net Assets is the rate in effect on June 30,
1999. The date shown is the next scheduled reset date.
(B) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------
SHARES VALUE (000)
- --------------------------------------------------------------
FOREIGN COMMON STOCKS (93.3%)
AUSTRALIA (2.6%)
Broken Hill Proprietary 10,461 $ 122
Leighton Holdings 39,600 156
National Australia Bank 12,100 202
------
480
------
AUSTRIA (1.0%)
Erste Bank* 3,200 183
------
BRAZIL (0.9%)
Tele Norte Leste Participacoes ADR 9,100 169
------
CANADA (3.3%)
Nortel Networks 4,480 386
Teleglobe 7,900 235
------
621
------
DENMARK (0.8%)
Novo-Nordisk, Cl B 1,370 148
------
FINLAND (3.9%)
Merita 37,400 213
Nokia ADR, Cl A 1,700 156
Nokia Oyj 1,500 132
Sonera Group Oyj 10,900 239
------
740
------
FRANCE (13.4%)
Accor 620 156
Assurances Generales de France 3,200 155
Axa 1,635 200
Dexia France 1,490 200
Elf Aquitane 1,300 191
Equant* 1,775 164
Lafarge 1,945 185
Michelin, Cl B 2,850 117
SEITA 1,235 71
Suez Lyonnaise des Eaux 1,350 244
Technip 2,640 297
Valeo* 1,500 124
Vivendi 5,194 422
------
2,526
------
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
GERMANY (6.8%)
DaimlerChrysler 2,600 $ 226
Mannesmann 2,820 422
Metallgesellschaft 11,450 211
Preussag 4,210 227
Siemens 2,500 193
------
1,279
------
GREECE (2.6%)
Hellenic Telecom Organization 11,280 243
Panafon Hellenic Telecom* 10,300 249
------
492
------
HONG KONG (0.9%)
HongKong Electric Holdings 52,000 168
------
INDONESIA (0.1%)
Modern Photo Film, F* 60,000 22
------
IRELAND (2.2%)
Bank of Ireland 24,288 408
------
ISRAEL (2.0%)
Comverse Technology 2,000 151
ECI Telecommunications 6,570 218
------
369
------
ITALY (2.8%)
Banca Nazionale del Lavoro* 41,250 $ 130
ENI 30,800 184
San Paolo-IMI 12,370 169
Tecnost* 14,880 37
------
520
------
JAPAN (9.7%)
Bank of Tokyo Mitsubishi 10,500 149
Eisai 4,400 87
FamilyMart 2,000 92
Honda Motor 4,000 169
Nippon Telegraph & Telephone 3 35
NTT Mobile Communications
Network-New* 24 321
NTT Mobile Communications
Network 6 81
13
<PAGE>
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
INTERNATIONAL EQUITY FUND--CONCLUDED
- --------------------------------------------------------------
SHARES VALUE (000)
- --------------------------------------------------------------
JAPAN (CONTINUED)
Olympus Optical 13,000 $ 192
Promise 2,700 159
Sumitomo Bank 10,200 126
Takefuji 2,300 237
TDK 1,300 119
Terumo 2,300 51
------
1,818
------
MEXICO (3.1%)
Fomento Economico Mexicano ADR 5,600 223
Grupo Televisa GDR* 2,100 94
Telefonos de Mexico ADR 3,300 267
------
584
------
NETHERLANDS (10.2%)
Ahold 5,500 190
ASM Lithography Holding* 3,900 226
ING Groep 4,763 259
KPN 8,027 378
Philips Electronics 3,760 372
TNT Post Group 8,763 210
Unique International 6,623 162
Wolters Kluwer 2,950 118
------
1,915
------
NEW ZEALAND (2.0%)
Fernz 30,700 90
Fletcher Challenge Building 55,038 81
Telecom of New Zealand 46,050 199
------
370
------
NORWAY (1.0%)
Petroleum Geo Services ADR* 1,400 21
Petroleum Geo Services* 10,800 163
------
184
------
- -------------------------------------------------------------
SHARES VALUE (000)
- -------------------------------------------------------------
PANAMA (0.7%)
Banco Latinamericano de
Exportaciones 4,600 $ 123
------
PORTUGAL (0.9%)
BPI-SGPS* 3,188 67
Portugal Telecom ADR 2,400 99
------
166
------
SINGAPORE (1.0%)
Overseas Chinese Banking 23,000 192
------
SOUTH KOREA (0.6%)
Korea Electric Power ADR 5,400 111
------
SPAIN (2.8%)
Argentaria 12,000 274
Telefonica Bonus Rights* 4,000 4
Telefonica de Espana 5,300 256
------
534
------
SWEDEN (2.0%)
Castellum 12,300 117
Electrolux 7,000 148
Swedish Match 32,800 118
------
383
------
SWITZERLAND (1.1%)
Compagnie Financiere Richemont 60 116
Novartis, Registered 60 88
------
204
------
UNITED KINGDOM (12.7%)
Allied Zurich 15,550 196
AstraZeneca Group 4,050 157
Bass 7,460 108
British Energy PLC 22,500 192
COLT Telecom Group* 12,600 264
Diageo 18,832 197
14
<PAGE>
- -------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
- -------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
Glaxo Wellcome 4,100 $ 114
Granada Group* 7,000 130
Lloyds TSB Group 14,318 194
National Westminster Bank 7,003 148
Railtrack Group 7,800 159
Securicor 23,300 204
SmithKline Beecham 14,640 190
South African Breweries* 16,465 141
------
2,394
------
UNITED STATES (2.2%)
Global TeleSystems Group* 5,046 409
-------
TOTAL FOREIGN COMMON STOCKS
(Cost $16,090) 17,512
-------
CORPORATE FOREIGN BONDS (0.1%)
Tecnost (A)
4.487%, 06/23/04 EU 24 26
-------
TOTAL CORPORATE FOREIGN BONDS
(Cost $19) 26
-------
TOTAL INVESTMENTS (93.4%)
(Cost $16,109) $17,538
=======
*Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
EU -- Euro
F -- Foreign
GDR -- Global Depository Receipt
PLC -- Public Limited Corporation
(A) Variable rate security. The rate reported on the Statement of Net Assets is
the rate in effect on June 30, 1999.
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (000)
- ---------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999 UNAUDITED
-------------
INTERNATIONAL
EQUITY
FUND
------------
Assets:
<S> <C>
Investments at Market Value (Cost $16,109) ....................................... $17,538
Cash and Foreign Currency ......................................................... 632
Receivables for Investment Securities Sold ........................................ 735
Receivables for Portfolio Shares Purchased ........................................ 7
Other Assets ...................................................................... 71
-------
Total Assets ...................................................................... 18,983
-------
Liabilities:
Payables for Investment Securities Purchased ...................................... 159
Accrued Expenses .................................................................. 44
Other Liabilities ................................................................. 5
-------
Total Liabilities ................................................................. 208
-------
Net Assets:
Portfolio Shares (unlimited authorization -- no par value)
based on 1,401,783 outstanding shares of beneficial interest .................... 16,394
Accumulated net realized gain on investments ...................................... 787
Net unrealized depreciation on forward foreign currency contracts,
foreign currency, and translation of other assets
and liabilities in foreign currency ............................................. (2)
Net unrealized appreciation on investments ........................................ 1,429
Undistributed net investment income ............................................... 167
-------
Total Net Assets .................................................................. $18,775
=======
Net Asset Value, Offering and Redemption Price Per Share ........................... $ 13.39
=======
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
- -----------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1999 UNAUDITED
VALUE
INCOME MID-CAP SMALL CAP CAPITAL INVESTMENT INTERNATIONAL
STOCK EQUITY EQUITY APPRECIATION GRADE EQUITY
FUND FUND FUND FUND BOND FUND FUND
------- ------- --------- ------------ ---------- -------------
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Interest Income ....................................... $ 253 $ 47 $ 6 $ 206 $ 607 $ 11
Dividend Income ....................................... 1,259 68 145 551 -- 240
Less: Foreign Taxes Withheld .......................... -- -- -- -- -- (15)
------- ------ ------- ------- -----
Total Investment Income ........................... 1,512 115 151 757 607 236
------- ------ ------- ------- -----
Expenses:
Investment Advisory Fees .............................. 413 167 67 660 75 115
Less: Investment Advisory Fees Waived ................. (3) (52) (38) (108) (44) (48)
Administrator Fees .................................... 31 31 31 31 31 37
Custody Fees .......................................... 13 4 3 20 4 20
Transfer Agent Fees ................................... 12 5 2 15 2 3
Professional Fees ..................................... 12 6 3 24 4 6
Trustee Fees .......................................... 2 1 -- 3 1 --
Registration Fees ..................................... -- -- -- -- -- 4
Printing Expenses ..................................... 6 4 2 13 2 2
Pricing Fees .......................................... 2 -- -- 1 -- 6
Insurance and Other Fees .............................. 2 -- -- -- -- 1
Amortization of Deferred Organization Costs ........... 1 1 -- 1 1 2
------- ------ ------- ------- ----- -----
Total Expenses .................................... 491 167 70 660 76 148
------- ------ ------- ------- ----- -----
Net Investment Income (Loss) .................... 1,021 (52) 81 97 531 88
------- ------ ------- ------- ----- -----
Net Realized Gain (Loss) on Securities Sold ........... 5,104 2,050 (1,232) 4,662 (275) 517
Net Realized Loss on Foreign Currency Transactions .... -- -- -- -- -- (13)
Net Unrealized Appreciation
(Depreciation) on Investments ......................... 6,947 (316) 1,450 7,360 (635) (99)
Net Unrealized Depreciation on Forward
Currency Contracts, Foreign Currency,
and Translation of Other Assets
and Liabilities in Foreign Currency ................. -- -- -- -- -- (4)
------- ------ ------- ------- ----- -----
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency .......... 12,051 1,734 218 12,022 (910) 401
------- ------ ------- ------- ----- -----
Increase (Decrease) in Net Assets from Operations ....... $13,072 $1,682 $ 299 $12,119 $(379) $ 489
======= ====== ======= ======= ----- -----
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
</FN>
17
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
- -----------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS (UNAUDITED)
VALUE INCOME MID-CAP
STOCK FUND EQUITY FUND
----------------------- ----------------------
01/01/99- 01/01/98- 01/01/99- 01/01/98-
06/30/99 12/31/98 06/30/99 12/31/98
--------- --------- --------- ---------
Investment Activities:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) .................................... $ 1,021 $ 1,696 $ (52) $ (80)
Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions ......................................... 5,104 8,551 2,050 485
Net Unrealized Appreciation (Depreciation) on Investments ....... 6,947 (2,853) (316) 1,389
Net Unrealized Appreciation (Depreciation) on Forward Foreign
Currency Contracts, Foreign Currency, and
Translation of Other Assets and Liabilities in
Foreign Currency .............................................. -- -- -- --
-------- ------- ------- -------
Increase (Decrease) in Net Assets Resulting from Operations ..... 13,072 7,394 1,682 1,794
-------- ------- ------- -------
Distributions to Shareholders:
Net Investment Income ........................................... (1,061) (1,696) -- --
Capital Gains ................................................... -- (6,777) -- (2,305)
-------- ------- ------- -------
Total Distributions ............................................. (1,061) (8,473) -- (2,305)
-------- ------- ------- -------
Capital Transactions:
Proceeds from Shares Issued ..................................... 6,315 23,136 909 7,168
Reinvestment of Cash Distributions .............................. 1,061 8,473 -- 2,305
Cost of Shares Repurchased ...................................... (2,484) (4,518) (3,314) (1,800)
-------- ------- ------- -------
Increase (Decrease) in Net Assets from Capital Transactions ..... 4,892 27,091 (2,405) 7,673
-------- ------- ------- -------
Total Increase (Decrease) in Net Assets ......................... 16,903 26,012 (723) 7,162
-------- ------- ------- -------
Net Assets:
Beginning of Period ............................................. 98,759 72,747 31,075 23,913
-------- ------- ------- -------
End of Period ................................................... $115,662 $98,759 $30,352 $31,075
======== ======= ======= =======
Shares Issued and Redeemed:
Shares Issued ................................................... 404 1,451 67 509
Shares Issued in Lieu of Cash Distributions ..................... 67 622 -- 216
Shares Redeemed ................................................. (161) (307) (250) (145)
-------- ------- ------- -------
Net Share Transactions .......................................... 310 1,766 (183) 580
======== ======= ======= =======
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
18
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
- -----------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS (UNAUDITED)
SMALL CAP CAPITAL APPRECIATION
EQUITY FUND FUND
--------------------- -----------------------
01/01/99- 01/01/98- 01/01/99- 01/01/98-
06/30/99 12/31/98 06/30/99 12/31/98
--------- --------- --------- ---------
Investment Activities:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) .................................... $ 81 $ 143 $ 97 $ 356
Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions ......................................... (1,232) (532) 4,662 7,815
Net Unrealized Appreciation (Depreciation) on Investments ....... 1,450 (1,561) 7,360 12,917
Net Unrealized Appreciation (Depreciation) on Forward Foreign
Currency Contracts, Foreign Currency, and
Translation of Other Assets and Liabilities in
Foreign Currency .............................................. -- -- -- --
------- ------- -------- --------
Increase (Decrease) in Net Assets Resulting from Operations ..... 299 (1,950) 12,119 21,088
------- ------- -------- --------
Distributions to Shareholders:
Net Investment Income ........................................... (81) (143) (97) (356)
Capital Gains ................................................... -- -- -- (8,084)
------- ------- -------- --------
Total Distributions ............................................. (81) (143) (97) (8,440)
------- ------- -------- --------
Capital Transactions:
Proceeds from Shares Issued ..................................... 903 8,463 16,434 26,149
Reinvestment of Cash Distributions .............................. 81 143 97 8,440
Cost of Shares Repurchased ...................................... (1,804) (931) (1,733) (3,554)
------- ------- -------- --------
Increase (Decrease) in Net Assets from Capital Transactions ..... (820) 7,675 14,798 31,035
------- ------- -------- --------
Total Increase (Decrease) in Net Assets ......................... (602) 5,582 26,820 43,683
------- ------- -------- --------
Net Assets:
Beginning of Period ............................................. 13,145 7,563 105,560 61,877
------- ------- -------- --------
End of Period ................................................... $12,543 $13,145 $132,380 $105,560
======= ======= ======== ========
Shares Issued and Redeemed:
Shares Issued ................................................... 113 868 797 1,374
Shares Issued in Lieu of Cash Distributions ..................... 10 16 5 510
Shares Redeemed ................................................. (232) (107) (85) (200)
------- ------- -------- --------
Net Share Transactions .......................................... (109) 777 717 1,684
======= ======= ======== ========
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
- -----------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS
INVESTMENT GRADE BOND INTERNATIONAL
FUND EQUITY FUND
----------------------- ----------------------
01/01/99- 01/01/98- 01/01/99- 01/01/98-
06/30/99 12/31/98 06/30/99 12/31/98
--------- --------- --------- ---------
Investment Activities:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) .................................... $ 531 $ 752 $ 88 $ 108
Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions ......................................... (275) 268 504 255
Net Unrealized Appreciation (Depreciation) on Investments ....... (635) 251 (99) 1,029
Net Unrealized Appreciation (Depreciation) on Forward Foreign
Currency Contracts, Foreign Currency, and
Translation of Other Assets and Liabilities in
Foreign Currency .............................................. -- -- (4) 2
------- ------- ------- -------
Increase (Decrease) in Net Assets Resulting from Operations ..... (379) 1,271 489 1,394
------- ------- ------- -------
Distributions to Shareholders:
Net Investment Income ........................................... (531) (754) -- (21)
Capital Gains ................................................... -- -- -- (113)
------- ------- ------- -------
Total Distributions ............................................. (531) (754) -- (134)
------- ------- ------- -------
Capital Transactions:
Proceeds from Shares Issued ..................................... 4,649 9,749 1,382 5,290
Reinvestment of Cash Distributions .............................. 531 755 -- 134
Cost of Shares Repurchased ...................................... (1,407) (1,687) (2,022) (1,605)
------- ------- ------- -------
Increase (Decrease) in Net Assets from Capital Transactions ..... 3,773 8,817 (640) 3,819
------- ------- ------- -------
Total Increase (Decrease) in Net Assets ......................... 2,863 9,334 (151) 5,079
------- ------- ------- -------
Net Assets:
Beginning of Period ............................................. 19,236 9,902 18,926 13,847
------- ------- ------- -------
End of Period ................................................... $22,099 $19,236 $18,775 $18,926
======= ======= ======= =======
Shares Issued and Redeemed:
Shares Issued ................................................... 448 936 105 406
Shares Issued in Lieu of Cash Distributions ..................... 52 72 -- 11
Shares Redeemed ................................................. (136) (161) (153) (134)
------- ------- ------- -------
Net Share Transactions .......................................... 364 847 (48) 283
======= ======= ======= =======
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
19
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS FOR THE PERIODS FROM INCEPTION THROUGH JUNE 30, 1999
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET REALIZED AND
NET ASSET VALUE INVESTMENT UNREALIZED GAINS (LOSSES) DISTRIBUTIONS FROM DISTRIBUTIONS FROM
BEGINNING OF PERIOD INCOME (LOSS) ON INVESTMENTS NET INVESTMENT INCOME REALIZED CAPITAL GAINS
------------------- ------------- ------------------------- --------------------- ----------------------
VALUE INCOME STOCK FUND
<S> <C> <C> <C> <C> <C>
1999 $15.08 $ 0.15 $ 1.80 $(0.16) $ --
1998 15.21 0.27 1.02 (0.28) (1.14)
1997 12.41 0.28 3.02 (0.28) (0.22)
1996 10.67 0.23 1.74 (0.23) --
1995 (1) 10.00 0.06 0.67 (0.06) --
MID-CAP EQUITY FUND (A)
1999 $13.56 $(0.02) $ 0.86 $ -- $ --
1998 13.97 -- 0.70 -- (1.11)
1997 11.86 (0.01) 2.64 (0.01) (0.51)
1996 10.27 0.06 1.59 (0.06) --
1995 (1) 10.00 0.05 0.27 (0.05) --
SMALL CAP EQUITY FUND
1999 $ 8.48 $ 0.06 $ 0.22 $(0.06) $ --
1998 9.77 0.12 (1.30) (0.11) --
1997 (2) 10.00 0.03 (0.23) (0.03) --
CAPITAL APPRECIATION FUND (B)
1999 $20.04 $ 0.02 $ 2.09 $(0.02) $ --
1998 17.27 0.07 4.54 (0.08) (1.76)
1997 13.06 0.10 4.63 (0.10) (0.42)
1996 10.66 0.12 2.40 (0.12) --
1995 (1) 10.00 0.04 0.66 (0.04) --
INVESTMENT GRADE BOND FUND
1999 $10.58 $ 0.27 $(0.46) $(0.27) $ --
1998 10.19 0.54 0.39 (0.54) --
1997 9.92 0.58 0.27 (0.58) --
1996 10.25 0.54 (0.33) (0.54) --
1995 (1) 10.00 0.13 0.25 (0.13) --
INTERNATIONAL EQUITY FUND
1999 $13.05 $ 0.06 $ 0.28 $ -- $ --
1998 11.87 0.10 1.17 (0.01) (0.08)
1997 10.16 0.03 1.68 -- --
1996 (3) 10.00 0.01 0.16 (0.01) --
<FN>
(1) Commenced operations on October 2, 1995. All ratios for the period have been annualized.
(2) Commenced operations on October 22, 1997. All ratios for the period have been annualized.
(3) Commenced operations on November 7, 1996. All ratios for the period have been annualized.
[DAGGER] Returns are for the period indicated and have not been annualized.
(A) During the fiscal year ended December 31, 1996, the Aggresive Growth Fund changed its name to the
Mid-Cap Equity Fund.
(B) During the period ended June 30, 1999, the Capital Growth Fund changed its name to the Capital Appreciation Fund.
Amounts designated as "--" are either $0 or rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
RATIO OF
RATIO OF EXPENSES TO
NET ASSET NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS
VALUE END TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS
OF PERIOD RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS)
--------- ------ ------------ ------------------ ------------------ -------------------
VALUE INCOME STOCK FUND
<S> <C> <C> <C> <C> <C> <C>
1999 $16.87 12.99% $115,662 0.95% 1.98% 0.96%
1998 15.08 9.69 98,759 0.95 1.90 1.11
1997 15.21 26.82 72,747 0.95 2.09 1.23
1996 12.41 18.64 31,216 0.95 2.45 1.95
1995 (1) 10.67 7.31 4,015 0.95 2.98 5.72
MID-CAP EQUITY FUND (A)
1999 $14.40 6.20% $ 30,352 1.15% (0.35)% 1.52%
1998 13.56 7.16 31,075 1.15 (0.29) 1.53
1997 13.97 22.23 23,913 1.15 (0.07) 1.77
1996 11.86 16.05 14,294 1.15 0.58 2.79
1995 (1) 10.27 3.19 3,409 1.15 2.22 6.34
SMALL CAP EQUITY FUND
1999 $ 8.70 3.32% $ 12,543 1.20% 1.38% 1.84%
1998 8.48 (12.18) 13,145 1.20 1.23 1.89
1997 (2) 9.77 (2.05) 7,563 1.20 1.62 2.66
CAPITAL APPRECIATION FUND (B)
1999 $22.13 10.52% $132,380 1.15% 0.17% 1.34%
1998 20.04 28.97 105,560 1.15 0.43 1.41
1997 17.27 36.54 61,877 1.15 0.70 1.60
1996 13.06 23.75 25,189 1.15 1.15 2.43
1995 (1) 10.66 6.96 3,778 1.15 1.69 6.18
INVESTMENT GRADE BOND FUND
1999 $10.12 (1.85)% $ 22,099 0.75% 5.22% 1.19%
1998 10.58 9.38 19,236 0.75 5.19 1.34
1997 10.19 8.84 9,902 0.75 5.81 1.58
1996 9.92 2.29 8,039 0.75 5.54 2.78
1995 (1) 10.25 3.68 3,115 0.75 5.04 6.05
INTERNATIONAL EQUITY FUND
1999 $13.39 2.61% $ 18,775 1.60% 0.96% 2.12%
1998 13.05 10.80 18,926 1.60 0.63 2.07
1997 11.87 16.84 13,847 1.60 0.41 2.93
1996 (3) 10.16 1.70 995 1.60 1.83 31.39
<FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS FOR THE PERIODS FROM INCEPTION THROUGH JUNE 30, 1999 (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Ratio of
Net Investment
Income (Loss) to
Average Net Assets Portfolio
(Excluding Waivers Turnover
and Reimbursements) Rate
----------------------- ----------
VALUE INCOME STOCK FUND
<S> <C> <C>
1999 $ 1.97% 40.82%
1998 1.74 76.36
1997 1.81 104.84
1996 1.45 79.80
1995 (1) (1.79) 7.17
MID-CAP EQUITY FUND (A)
1999 $ (0.72)% 52.90%
1998 (0.67) 92.27
1997 (0.69) 138.98
1996 (1.06) 139.60
1995 (1) (2.97) 13.29
SMALL CAP EQUITY FUND
1999 $ 0.74% 28.85%
1998 0.54 49.10
1997 (2) 0.16 4.11
CAPITAL APPRECIATION FUND (B)
1999 $ (0.02)% 77.60%
1998 0.17 219.17
1997 0.25 195.86
1996 (0.13) 148.48
1995 (1) (3.34) 8.05
INVESTMENT GRADE BOND FUND
1999 $ 4.78% 157.54%
1998 4.60 183.13
1997 4.98 219.22
1996 3.51 303.30
1995 (1) (0.26) 108.55
INTERNATIONAL EQUITY FUND
1999 $ 0.44% 106.24%
1998 0.16 128.93
1997 (0.92) 99.14
1996 (3) (27.96) --
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999
1. Organization
The STI Classic Variable Trust (the "Trust") was organized as a Massachusetts
business trust under a Declaration of Trust dated April 18, 1995. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with six funds: the Value Income Stock Fund, the
Mid-Cap Equity Fund, the Small Cap Equity Fund, the Capital Appreciation Fund
(formerly the Capital Growth Fund), the International Equity Fund (collectively
"the Equity Funds") and the Investment Grade Bond Fund. The assets of each Fund
are segregated, and a shareholder's interest is limited to the Fund in which
shares are held. The Fund's prospectus provides a description of each Fund's
investment objective policies and strategies.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust. These policies are in conformity with generally accepted accounting
principles.
SECURITY VALUATION -- Investments in equity securities that are traded on a
national securities exchange (or reported on the NASDAQ national market
system) are valued at the last quoted sales price, if readily available for
such equity securities, on each business day. If there is no such reported
sale, these securities, and unlisted securities for which market quotations
are readily available, are valued at the most recently quoted bid price.
Foreign securities in the International Equity Fund are valued based upon
quotations from the primary market in which they are traded.
Debt obligations exceeding sixty days to maturity for which market
quotations are readily available are valued at the most recently quoted bid
price. Debt obligations with sixty days or less until maturity may be
valued either at the most recently quoted bid price or at their amortized
cost.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company for Federal income tax purposes and distribute
all of its taxable income and net capital gains. Accordingly, no provisions
for Federal income taxes are required.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Dividend
income is recognized on ex-dividend date, and interest income is recognized
on an accrual basis and includes, where applicable, the pro rata
amortization of premium or accretion of discount. The cost used in
determining net realized capital gains and losses on the sale of securities
are those of the specific securities sold, adjusted for the accretion and
amortization of purchase discounts and premiums during the applicable
holding period. Purchase discounts and premiums on securities are accreted
and amortized to maturity using the scientific interest method, which
approximates the effective interest method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the repurchase agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in the event of default of the counterparty. If the counterparty defaults
and the value of the collateral declines or if the counterparty enters an
insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day. It is computed by dividing the assets of
each Fund, less its liabilities, by the number of outstanding shares. The
offering price per share for the shares of the Investment Grade Bond and
Equity Funds is the net asset value per share.
FOREIGN CURRENCY TRANSACTIONS -- With respect to the International Equity
Fund, the books and records are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars on the following basis:
[bullet] market value of investment securities, assets and liabilities at
the current rate of exchange; and
[bullet] purchases and sales of investment securities, income, and expenses
at the relevant rates of exchange prevailing on the respective
dates of such transactions.
The International Equity Fund does not isolate the portion of gains and
losses on investments in equity securities that is due to changes in the
foreign exchange rates from that which is due to change in market
prices of equity securities.
The International Equity Fund reports certain foreign currency-related
transactions as components of realized gains for financial reporting
purposes, whereas such components are treated as ordinary income for
Federal income tax purposes.
OTHER -- Distributions from net investment income for the Investment Grade
Bond Fund are declared daily and paid monthly to shareholders.
Distributions from net investment income for the Value Income Stock Fund,
the Mid-Cap Equity Fund, the Small Cap Equity Fund and the Capital
Appreciation Fund are declared and paid quarterly to shareholders.
Distributions from net investment income for the International Equity Fund
are declared and paid annually to shareholders. Any net realized capital
gains are distributed to shareholders at least annually.
22
<PAGE>
- --------------------------------------------------------------------------------
Unaudited
Expenses related to a specific Fund are charged to that Fund. Other
operating expenses of the Trust are pro-rated to the Funds on the basis of
relative net assets.
USE OF ESTIMATES -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that effect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and reported amounts
of revenues and expenses during the reporting period. Actual amounts could
differ from these estimates.
3. Administration and Distribution Agreements
The Trust and SEI Investments Mutual Funds Services (the "Administrator") are
parties to an administration agreement (the "Administration Agreement") dated
August 18, 1995 as amended November 19, 1997. Under the terms of the
Administration Agreement the Administrator is entitled to a fee, subject to a
minimum, (expressed as a percentage of the combined average daily net assets of
the Trust and the STI Classic Funds) of: .12% up to $1 billion, .09% on the next
$4 billion, .07% on the next $3 billion, .065% on the next $2 billion, and .06%
for over $10 billion.
The Trust and Federated Services Company are parties to a Transfer Agency
servicing agreement dated August 2, 1995 under which Federated Services Company
provides transfer agency services to the Trust.
The Trust and SEI Investments Distribution Co. ("the Distributor") are parties
to a Distribution Agreement dated August 2, 1995. The Distributor receives no
fees for its services under this agreement.
4. Investment Advisory Agreement
Investment advisory services are provided to the Trust by STI Capital
Management, N.A. ("STI Capital"). Under the terms of the investment advisory
agreements, STI Capital is entitled to receive a fee from the Fund, computed
daily and paid monthly, at an annual rate of .74%, 1.15%, .80%, 1.15%, 1.15% and
1.25% of the average daily net assets of the Investment Grade Bond Fund, Capital
Appreciation Fund, Value Income Stock Fund, Mid-Cap Equity Fund, Small Cap
Equity Fund and International Equity Fund, respectively. STI Capital has
voluntarily agreed to waive all or a portion of its fees (and to reimburse
Funds' expenses) in order to limit operating expenses. Fee waivers and expense
reimbursements are voluntary and may be terminated at any time.
SunTrust Bank, Atlanta acts as Custodian for all the Funds except the
International Equity Fund which has a custodian agreement with the Bank of New
York. Fees of the Custodian are paid on the basis of net assets. The Custodian
plays no role in determining the investment policies of the Trust or which
securities are to be purchased or sold in the Funds.
5. Organizational Costs and Transactions
with Affiliates
The Trust incurred organization costs of approximately $55,566. These costs have
been deferred in the accounts of the Funds and are being amortized on a straight
line basis over a period of sixty months commencing with operations. The costs
include legal fees of approximately $44,153 for organizational work performed by
a law firm of which two officers of the Trust are partners. In the event any of
the initial shares of the Trust are redeemed by any holder thereof during the
period that the Trust is amortizing its organizational costs, the redemption
proceeds payable to the holder thereof by the Trust will be reduced by the
unamortized organizational cost in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
Certain officers of the Trust are also officers of the Administrator and/or the
Distributor. Such officers are paid no fees by the Trust for serving as officers
of the Trust.
The Fund has entered into an agreement with SEI Investments to manage the
investments of repurchase agreements for the Funds. For its services the
Liquidity Desk received $10,624.03 for the year ended June 30, 1999.
6. Investment Transactions
The cost of security purchases and the proceeds from security sales, excluding
short-term investments, for the six month period ended June 30, 1999 were as
follows:
U.S. Govt. U.S. Govt.
Purchases Sales Purchases Sales
(000) (000) (000) (000)
-------- ----- --------- ----------
Value Income Stock Fund .... $41,148 $ 38,029 $ -- $ --
Mid-Cap Equity Fund ........ 14,726 16,939 -- --
Small Cap Equity Fund ...... 3,371 4,178 -- --
Capital Appreciation Fund .. 97,159 83,515 -- --
Investment Grade
Bond Fund ............... 11,234 5,773 23,279 23,888
International Equity Fund .. 18,970 19,584 -- --
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
- --------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FUNDS June 30, 1999 (UNAUDITED)
At June 30, 1999, the total cost of securities and the net realized gains or
losses on securities sold for ederal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the
Investment Grade Bond and Equity Funds at June 30, 1999 was as follows:
NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
------------ ------------ --------------
Value Income Stock Fund ..... $11,789 $(2,188) $ 9,601
Mid-Cap Equity Fund ......... 4,669 (1,379) 3,290
Small Cap Equity Fund ....... 900 (1,114) (214)
Capital Appreciation Fund ... 29,369 (2,786) 26,583
Investment Grade Bond Fund .. 136 (264) (128)
International Equity Fund ... 1,998 (569) 1,429
7. Concentration of Credit Risk
The Investment Grade Bond Fund invests primarily in investment grade obligations
rated at least BBB or better by S & P or Baa or better by Moody's. Changes by
recognized rating agencies in the ratings of any fixed income security or in the
ability of an issuer to make payments of interest and principal may affect the
value of these investments.
24
<PAGE>
<PAGE>
<TABLE>
<S> <C>
Investment Advisor:
STI Capital Management, N.A.
STI Classic Variable Trust Funds are not deposits, are not insured or guaranteed by the
FDIC or any other government agency, and are not endorsed by and do not constitute obligations of
SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including
the possible loss of principal. There is no guarantee that any STI Classic Variable Trust Fund will
achieve its investment objective. The STI Classic Variable Trust Funds are advised by an affiliate
of SunTrust Banks, Inc.
Distributor:
SEI Investments Distribution Co.
This information must be preceded or
accompanied by a current prospectus for
each Fund described.
</TABLE>
