<PAGE>
STI CLASSIC FUNDS
Supplement Dated August 30, 2000 to
the Bond and Money Market Funds-Trust Shares Prospectus,
the Money Market Funds-Flex and Investor Shares Prospectus, and
the Bond Funds-Flex and Investor Shares Prospectus
dated October 1, 1999
This supplement provides new and additional information beyond that contained
in the Prospectus and should be retained and read in conjunction with the
Prospectus.
Effective June 30, 2000, SunTrust Banks, Inc. reorganized all of the
investment management functions of its three institutional money management
units into Trusco Capital Management, Inc. ("Trusco"). As a result of this
reorganization, Trusco serves as the Investment Adviser for each of the STI
Classic Funds. On May 16, 2000, the Board of Trustees of the STI Classic Funds
approved the assumption of the advisory duties by Trusco with respect to each
Fund. The Board concluded that, with respect to the Investment Adviser of each
Fund, there would be no change of management or control, and the services
provided to each Fund would remain unchanged.
MARYLAND MUNICIPAL BOND FUND, VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND AND
VIRGINIA MUNICIPAL BOND FUND
Under the heading "Portfolio Managers," paragraph 8 on page 26 of the Bond
Funds-Flex and Investor Shares Prospectus has been deleted. Paragraph 4 on
page 26 of the Bond Funds-Flex and Investor Shares Prospectus and paragraph 9
on page 37 of the Bond and Money Market Funds-Trust Shares Prospectus under
the same heading is replaced with the following:
Mr. George E. Calvert, CFA, has served as Vice President of Trusco since
2000. He has managed the Maryland Municipal Bond Fund since 2000, the
Virginia Municipal Bond Fund since 2000, and the Virginia Intermediate
Municipal Bond Fund since 2000. Prior to joining Trusco, Mr. Calvert served
as a fixed income trader from 1998 to 2000 for Tredegar Trust Company. He
also served as Vice President, Investment Division, of Central Fidelity
Bank from 1988 to 1998. Mr. Calvert has more than 27 years of investment
experience.
TAX-EXEMPT MONEY MARKET FUND
Under the heading "Portfolio Managers," paragraph 7 on page 36 and paragraph
10 on page 37 of the Bond and Money Market Funds-Trust Shares Prospectus have
been deleted. Paragraph 4 under the same heading is replaced with the
following:
Mr. Robert S. Bowman, CFA, has served as Vice President of Trusco since
January 1999. He has managed the U.S. Treasury Money Market Fund since
1995, the Virginia Tax-Free Money Market Fund since 1995 and the Tax-Exempt
Money Market Fund since 2000. Prior to joining Trusco, Mr. Bowman served as
an assistant trader from 1994 to 1995, and Vice President since 1995 of
Crestar Asset Management Company. Mr. Bowman has more than five years of
investment experience.
Under the heading "Portfolio Managers," paragraphs 2 and 3 on page 11 of the
Money Market Funds-Flex and Investor Shares Prospectus have been deleted and
replaced with the following:
Mr. Robert S. Bowman, CFA, has served as Vice President of Trusco since
January 1999. He has managed the Virginia Tax-Free Money Market Fund since
1995 and the Tax-Exempt Money Market Fund since 2000. Prior to joining
Trusco, Mr. Bowman served as an assistant trader from 1994 to 1995, and
Vice President since 1995 of Crestar Asset Management Company. Mr. Bowman
has more than 5 years of investment experience.
<PAGE>
U.S. GOVERNMENT SECURITIES FUND
Mr. Neil J. Powers, CFA, is now the Portfolio Manager for the U.S. Government
Securities Fund. Under the heading "Portfolio Managers," paragraph 8 on page
36 of the Bond and Money Market Funds-Trust Shares Prospectus, and paragraph 7
on page 26 of the Bond Funds-Flex and Investor Shares Prospectus have been
deleted and replaced with the following:
Mr. Neil J. Powers, CFA, joined Trusco in 1997 and serves as a Managing
Director. He has managed the U.S. Government Securities Fund since 2000.
Prior to joining Trusco, Mr. Powers worked at Putnam Investments, from 1986
to 1997, where he managed multi-sector bond funds and separately managed
institutional accounts. He has more than 16 years of investment experience.
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
For the U.S. Government Securities Money Market Fund, the paragraph following
the heading "Investment Strategy" on page 30 of the Bond and Money Market
Funds-Trust Shares Prospectus, and page 8 of the Money Market Funds-Flex and
Investor Shares Prospectus have been deleted and replaced with the following:
Investment Strategy
The U.S. Government Securities Money Market Fund invests exclusively in
U.S. Treasury obligations, obligations issued or guaranteed as to principal
and interest by agencies or instrumentalities of the U.S. government,
repurchase agreements involving these securities, and shares of registered
money market funds that invest in the foregoing. In selecting investments
for the Fund, the Adviser tries to increase income without adding undue
risk by analyzing yields. The Adviser actively manages the maturity of the
Fund and its portfolio to maximize the Fund's yield based on current market
interest rates and the Adviser's outlook on the market. As a money market
fund, the Fund follows strict rules about credit risk, maturity and
diversification of its investments.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
<PAGE>
STI CLASSIC FUNDS
Supplement Dated August 30, 2000 to the
Equity Funds-Trust Shares Prospectus, the
Equity Funds-Flex and Investor Shares Prospectus, the
SunTrust Banks Sponsored Retirement Plans Prospectus, the
DeKalb County, Georgia Board of Education Tax Sheltered Annuity Plan
Prospectus, and the
SunTrust 401(k) Prospectus
dated October 1, 1999 and any supplements thereto
This supplement provides new and additional information beyond that contained
in the Prospectus and should be retained and read in conjunction with the
Prospectus.
Effective January 1, 2000, SunTrust Bank, as the successor to STI Capital
Management, N.A., ("STI") assumed all investment advisory duties previously
performed by STI.
Effective June 30, 2000, SunTrust Banks, Inc. reorganized all of the
investment management functions of its three institutional money management
units, including SunTrust Bank, into Trusco Capital Management, Inc.
("Trusco"). As a result of this reorganization, Trusco serves as the
Investment Adviser for each of the STI Classic Funds. On May 16, 2000, the
Board of Trustees of the STI Classic Funds approved the assumption of the
advisory duties by Trusco with respect to each Fund. The Board concluded that,
with respect to the Investment Adviser of each Fund, there would be no change
of management or control, and the services provided to each Fund would remain
unchanged.
INTERNATIONAL EQUITY FUND
For the International Equity Fund, the disclosure following the heading
"Principal Investment Strategy" and the paragraph following the heading
"Investment Strategy," on page 12 of the Equity Funds-Trust Shares Prospectus,
page 8 of the Equity Funds-Flex and Investor Shares Prospectus, and page 12 of
the SunTrust Sponsored Retirement Plans Prospectus has been deleted and
replaced with the following:
Principal Investment Strategy Attempts to identify companies with good
fundamentals or a history of consistent
growth
Investment Strategy
The International Equity Fund invests primarily in common stocks and other
equity securities of foreign companies. The Fund invests primarily in
developed countries, but may invest in countries with emerging markets. Our
"bottom-up" approach to stock selection focuses on individual stocks and
fundamental characteristics of companies. Our goal is to find companies
with top management, quality products and sound financial positions, or a
history of consistent growth in cash flows, sales, operating profits,
returns on equity and returns on invested capital. In selecting investments
for the Fund, we diversify the Fund's investments among at least three
foreign countries. Due to the Fund's investment strategy, the Fund may buy
and sell securities frequently. This may result in higher transaction costs
and additional capital gains tax liabilities.
Mr. Chad Deakins, CFA, is now the Portfolio Manager for the International
Equity Fund. Under the heading "Portfolio Managers," paragraph 6 and 7 on page
28 of the Equity Funds-Trust Shares Prospectus, paragraph 4 and 5 on page 24
of the Equity Funds-Flex and Investor Shares Prospectus, and paragraph 5 and 6
on page 53 of the SunTrust Sponsored Retirement Plans Prospectus have been
deleted and replaced with the following:
The International Equity Index Fund is managed by Mr. Chad Deakins, CFA,
and co-managed by Mr. Robert J. Rhodes. Mr. Deakins has served as a
portfolio manager for SunTrust Bank since May 2000 and Trusco since 1996,
and has been manager of the International Equity Index Fund since February
1999. Since May 2000, he has also managed the International Equity Fund.
Prior to joining Trusco, Mr. Deakins worked at SunTrust Bank. He has more
than 5 years of investment experience. Mr. Rhodes has been employed by
Trusco since 1973, and Director of Research since 1980. He has co-managed
the International Equity Index Fund since it began operating in June 1994.
He has more than 26 years of investment experience.
CAPITAL APPRECIATION FUND AND BALANCED FUND
Mr. Robert J. Rhodes, CFA, is now the Portfolio Manager for the Capital
Appreciation Fund and co-manager for the Balanced Fund. Under the heading
"Portfolio Managers," paragraphs 1, 2 and 3 on page 28 of the Equity Funds-
Trust Shares Prospectus, paragraphs 1 and 2 on page 24 of the Equity Funds-
Flex and Investor Shares Prospectus, paragraph 1, 2 and 3 on pages 52 and 53
of the SunTrust Banks Sponsored Retirement Plans Prospectus, and paragraph 1
on page 5 of the DeKalb County, Georgia Board of Education Tax Sheltered
Annuity Plan Prospectus have been deleted and replaced with the following:
1
<PAGE>
The Balanced Fund is co-managed by Mr. Robert J. Rhodes, CFA, Mr. Earl L.
Denney, CFA, and Mr. Dave E. West, CFA. Mr. Rhodes manages the equity
portion of the Fund. Mr. Denney and Mr. West co-manage the fixed-income
portion of the Fund. Mr. Rhodes has been employed by SunTrust Bank since
2000 and by Trusco since 1973, and has been Director of Research at Trusco
since 1980. He has also managed the Core Equity Fund since it began
operating in October 1999, and the Capital Appreciation Fund since June
2000. Mr. Rhodes has more than 26 years of investment experience. Mr. West
has served as a Managing Director of STI and has worked there since 1985.
In January 2000 he was named Managing Director of SunTrust Bank, and is now
a Managing Director of Trusco. Mr. West has more then 13 years of
investment experience. Mr. Denney has served as Managing Director of STI
since 1983. In January 2000 he was named Managing Director of SunTrust Bank
and is now a Managing Director of Trusco. Mr. Denney has more than 20 years
of investment experience.
Under the heading "Portfolio Managers," paragraph 1 on page 18 of the SunTrust
401(k) Prospectus have been deleted and replaced with the following:
Mr. Robert J. Rhodes, CFA, has been employed by SunTrust Bank since June
2000 and by Trusco since 1973, and has been Director of Research at Trusco
since 1980. He has managed the Capital Appreciation Fund since June 2000.
He has more than 26 years of investment experience.
U.S. GOVERNMENT SECURITIES FUND
Mr. Neil J. Powers, CFA, is now the Portfolio Manager for the U.S. Government
Securities Fund. Under the heading "Portfolio Managers," paragraph 16 on page
54 of the SunTrust Banks Sponsored Retirement Plans Prospectus has been
deleted and replaced with the following:
Mr. Neil J. Powers, CFA, joined Trusco in 1997 and serves as a Managing
Director. He has managed the U.S. Government Securities Fund since 2000.
Prior to joining Trusco, Mr. Powers worked at Putnam Investments, from 1986
to 1997, where he managed multi-sector bond funds and separately managed
institutional accounts. He has more than 16 years of investment experience.
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
For the U.S. Government Securities Money Market Fund, the paragraph following
the heading "Investment Strategy" on page 38 of the SunTrust Banks Sponsored
Retirement Plans Prospectus has been deleted and replaced with the following:
Investment Strategy
The U.S. Government Securities Money Market Fund invests exclusively in
U.S. Treasury obligations, obligations issued or guaranteed as to principal
and interest by agencies or instrumentalities of the U.S. government,
repurchase agreements involving these securities, and shares of registered
money market funds that invest in the foregoing. In selecting investments
for the Fund, the Adviser tries to increase income without adding undue
risk by analyzing yields. The Adviser actively manages the maturity of the
Fund and its portfolio to maximize the Fund's yield based on current market
interest rates and the Adviser's outlook on the market. As a money market
fund, the Fund follows strict rules about credit risk, maturity and
diversification of its investments.
LIFE VISION GROWTH AND INCOME PORTFOLIO
For the Life Vision Growth and Income Portfolio, the investment ranges by
asset class have changed to the following: Equity Funds 50%-80%, Bond Funds
20%-50%, and Money Market Funds 0%-20%. Under the heading "Investment
Strategy" on page 46 of the SunTrust Banks Sponsored Retirement Plans
Prospectus, the table has been deleted and replaced with the following:
<TABLE>
<CAPTION>
Investment Range
(Percentage of the Life
Vision Growth and
Income Portfolio's
Asset Class Assets)
----------------------------------------------------------
<S> <C>
Equity Funds 50%-80%
Growth and Income Fund
Capital Appreciation Fund
Small Cap Equity Fund
Small Cap Stock Growth Fund
----------------------------------------------------------
Bond Funds 20%-50%
Short-Term Bond Fund
Investment Grade Bond Fund
U.S. Government Securities Fund
----------------------------------------------------------
Money Market Funds 0%-20%
Prime Quality Money Market Fund
----------------------------------------------------------
</TABLE>
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
2
