ANNUAL
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FINANCIAL REPORT
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STI CLASSIC EQUITY FUNDS
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A Family of Mutual Funds
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May 31, 2000
[logo omitted]
<PAGE>
Dear Valued STI Classic Trust Shareholder:
The period corresponding to the STI Classic Funds' fiscal year ending May 31,
2000 is perhaps one of the most unusual in the history of modern financial
markets. The U.S. economy continued on its growth path, extending the longest
period of uninterrupted expansion. In fact, economic growth actually
accelerated, prompting the Federal Reserve (the "Fed") to announce a series of
rate increases. The capital markets responded by rewarding risk in equity
securities and punishing it in fixed income markets. On the equity side,
technology stocks were prominent, as evidenced by the 37.7% rise in the NASDAQ
Composite Index and even greater 59.1% appreciation in the larger stocks of the
NASDAQ 100 Index. Small cap stocks did well, predominantly because of technology
and biotechnology stocks; the S&P 600 Small Cap Index rose 14.2%. Mid-cap stocks
did even better, with the S&P 400 Mid-Cap Index up 21.5%, but again mainly due
to technology. Overall, many stocks did not do well as Fed tightening weighed
heavily on performance. The broader S&P 500 Composite Index was up a more modest
10.5%, while the Dow Jones Industrial Average achieved only a 1.2% positive
return. Within style categories, growth stocks enjoyed a record advantage over
value stocks, a condition which began to reverse only in the last three months
of the STI Classic Funds fiscal year.
On the fixed income side, total returns in bonds were modest, as typified by the
1.9% gain in the Lehman U.S. Government/Corporate Bond Index for longer term
taxable bonds, the 3.5% return in the Merrill Lynch 1-5 Year U.S.
Corporate/Government Index, and very modest returns in short to
intermediate-term municipal bonds. Within the bond arena, investment grade and
high yield bonds were under pressure, while top quality Government bonds
prospered. There was a disconnect between risk/reward as equity investors were
very positive and bond investors were negative.
As the new fiscal year begins for the STI Classic Fund family, we are encouraged
by the broadening out of the equity market. Technology stocks have recently
corrected significantly and small and mid-caps have done better. Importantly,
value oriented stocks outperformed in March/April/May. Tight Fed policy and
rising money market rates due to rapid economic growth are not good for stocks.
Thus, recent signs of slower economic growth are welcome and stocks will do
better once the Fed suspends its tight monetary stance. We also believe the very
wide yield spreads available in non-Government fixed income securities will
prove rewarding over the next 12-24 months. The STI Classic Funds have never
been stronger in terms of product breadth and potential for long-term growth. We
thank all Fund shareholders for their confidence in the STI Classic Family. We
will work hard to deliver competitive results in the months and years ahead.
Sincerely
/s/signature omitted
Douglas S. Phillips
President and Chief Investment Officer
Trusco Capital Management, Inc.
1
<PAGE>
STI CLASSIC BALANCED FUND
--------------------------
The STI Classic Balanced Fund (the "Fund") seeks to provide capital appreciation
and current income through investments in a diversified portfolio of common and
preferred stocks, securities convertible into common stocks and investment grade
fixed income securities.
The equity portion of the portfolio has focused on stocks which are undervalued
on a relative price to earnings basis compared to their historical norms or
similar companies. While this approach has been rewarding over time, it was less
so in the most recent year, as investors focused on price momentum and stocks
with high valuations, especially in technology. These trends began to reverse
toward the end of the Fund's fiscal year, such that earnings and valuation have
once again been important.
The fixed income portion of the Fund is managed with only moderate shifts in the
average maturity and duration. Total return is enhanced through yield curve
analysis (monitoring and analyzing the risk/reward tradeoffs of different
maturity sectors), sector rotation, credit analysis, and other low risk
strategies. Interest rates generally rose over the last year as stronger than
expected economic growth continued and inflation concerns rose. The Federal
Reserve (the "Fed") increased short-term interest rates in an effort to slow
economic growth and prevent inflationary pressures from building, while the
Treasury began to buy back longer term bonds. The result was higher interest
rates, an inverted yield curve (interest rates on shorter maturities higher than
those on longer maturities) and much wider yield spreads for corporate and
mortgage securities. Over the period two-year Treasury yields rose from 5.43% to
6.69% and thirty-year Treasury yields rose from 5.84% to 6.02%. During the past
year, the fixed income portion of the Fund benefited from an emphasis on U.S.
Treasury holdings. This was offset to some extent by the Fund's considerable
weighting in corporate bonds as investors demanded higher spreads to invest in
corporates.
For the year ended May 31, the Balanced Fund (Trust Shares) had a total return
of 5.02%. The S&P 500 returned 10.47% for the same period, while the return for
Lehman U.S. Government/Corporate Bond Index was 1.89%.
Looking forward, several factors make us optimistic about prospective returns
for the Fund. The economy shows signs of slowing, which may bring an end to
tightening by the Fed. This would benefit the type of stocks held in the Fund as
well as corporate bonds. Second, the valuation of corporate bonds is at historic
lows compared to Treasury securities, providing extremely attractive total
return potential. Finally, the equity market has shown signs of beginning to
broaden out to include mid-cap stocks and equities with better valuations, while
technology stocks are undergoing corrections.
/s/signature omitted
L. Earl Denney, CFA
Fixed Income Portfolio Manager
/s/signature omitted
Robert J. Rhodes, CFA
Equity Portfolio Manager
2
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Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
5.02% 12.50% 14.26% 12.10% 107.95%
[line graphic omitted]
plot points follows:
Lehman
STI Classic S&P 500 U.S. Government/ Lipper
Balanced Fund Composite Corporate Bond Balanced Funds
Trust Shares Index Index Average
1/31/94 $10,000 $10,000 $10,000 $10,000
5/31/94 9,554 9,579 9,446 9,504
5/31/95 10,387 11,510 10,543 10,676
5/31/96 12,180 14,781 10,975 12,564
5/31/97 14,210 19,126 11,842 14,631
5/31/98 17,357 24,992 13,202 17,490
5/31/99 19,263 30,253 13,738 19,081
5/31/00 20,230 33,421 13,997 20,110
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
4.66% 12.14% 13.89% 11.69% 103.16% Without Load
0.73% 10.71% 13.03% 11.03% 95.54% With Load
[line graphic omitted]
plot points follows:
Lehman
STI Classic S&P 500 U.S. Government/ Lipper
Balanced Fund Composite Corporate Bond Balanced Funds
Investor Shares Index Index Average
1/31/94 $ 9,625 $10,000 $10,000 $10,000
5/31/94 9,238 9,579 9,446 9,504
5/31/95 10,004 11,510 10,543 10,676
5/31/96 11,693 14,781 10,975 12,564
5/31/97 13,595 19,126 11,842 14,631
5/31/98 16,548 24,992 13,202 17,490
5/31/99 18,319 30,253 13,738 19,081
5/31/00 19,173 33,421 13,997 20,110
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years to Date to Date
3.88% 11.30% 12.98% 83.05 % Without Load
1.88% With Load
[line graphic omitted]
plot points follows:
Lehman
STI Classic S&P 500 U.S. Government/ Lipper
Balanced Fund Composite Corporate Bond Balanced Funds
Flex Shares Index Index Average
6/30/95 $10,000 $10,000 $10,000 $10,000
5/31/96 11,401 12,549 10,327 11,550
5/31/97 13,157 16,239 11,143 13,450
5/31/98 15,900 21,219 12,422 16,078
5/31/99 17,465 25,686 12,927 17,541
5/31/00 18,142 28,375 13,171 18,486
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
3
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STI CLASSIC CAPITAL APPRECIATION FUND
---------------------------------------
For the year ended May 31, 2000 the Capital Appreciation Fund (the "Fund")(Trust
Shares) returned 8.98% compared to 10.47% for the S&P 500 Composite Index. The
Fund has typically been postured toward equities priced at the lower end of
their relative price-to-earnings ("P/E") range. Each company's P/E ratio
relative to its own history and compared to its industry sector have been
important considerations in evaluating stocks for purchase. While this
discipline has historically been rewarding, the last twelve months have been an
unusual period during which relative valuation tools were ineffective. Moreover,
performance in the S&P 500 Composite Index was very narrowly concentrated in a
small number of the largest capitalization stocks with high price momentum. This
made it difficult for the more widely diversified portfolio of the Capital
Appreciation Fund to keep pace with the benchmark. Fortunately, these trends
began to shift in early March, and performance of the Fund has begun to pick up.
Calendar year-to-date through the end of May, the Fund (Trust Shares) returned
3.3% which compares favorably with the 2.8% decline in the S&P 500.
On June 1, Mr. Anthony Gray announced his retirement as manager of the Capital
Appreciation Fund. I am the new manager of the Fund. Also, I am Executive Vice
President and Director of Equity Research at Trusco Capital Management, a
position I have held for the last 19 years. Overall, I have 27 years of
investment management experience, including over 10 years managing major equity
accounts.
Going forward, the Capital Appreciation Fund will continue to concentrate on
large cap stocks which have attractive fundamentals and positive earnings
growth. The emphasis will be on companies with leadership positions within their
industries, solid profitability, and secular growth in their core business. Over
time, we believe that earnings growth is the most important driver of stock
prices. By focusing on growth businesses, we are optimistic about the outlook
for good long-term returns for the Fund.
/s/signature omitted
Robert J. Rhodes, CFA
Portfolio Manager
4
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Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
8.98% 18.48% 21.74% 16.91% 244.58%
[line graphic omitted]
plot points follows:
STI Classic S&P 500
Capital Appreciation Fund Composite
Trust Shares Index
7/31/92 $10,000 $10,000
5/31/93 11,203 10,885
5/31/94 11,638 11,345
5/31/95 12,409 13,631
5/31/96 16,004 17,505
5/31/97 19,951 22,652
5/31/98 25,938 29,599
5/31/99 30,445 35,830
5/31/00 33,179 39,581
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
8.29% 17.77% 20.97% 16.56% 239.82% Without Load
4.25% 16.27% 20.06% 16.01% 227.07% With Load
[line graphic omitted]
plot points follows:
STI Classic S&P 500
Capital Appreciation Fund Composite
Investor Shares Index
6/30/92 $ 9,625 $10,000
5/31/93 11,206 11,329
5/31/94 11,572 11,808
5/31/95 12,258 14,187
5/31/96 15,712 18,219
5/31/97 19,442 23,576
5/31/98 25,024 30,807
5/31/99 29,328 37,292
5/31/00 31,759 41,196
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years to Date to Date
7.77% 17.17% 20.42% 152.72% Without Load
5.77% With Load
[graph omitted]
plot points follows:
STI Classic S&P 500
Capital Appreciation Fund Composite
Flex Shares Index
6/30/95 $10,000 $10,000
5/31/96 12,387 12,549
5/31/97 15,266 16,239
5/31/98 19,559 21,219
5/31/99 22,786 25,686
5/31/00 24,557 28,375
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
5
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STI CLASSIC CORE EQUITY FUND
-----------------------------
The Core Equity Fund (the "Fund") commenced operations on September 30, 1999. At
May 31, 2000, net assets have grown to $156 million. Performance since inception
is a return of 11.10% (Trust Shares), compared to a 10.47% return for the S&P
500 Composite Index.
The investment objective of the Fund is long-term growth of capital. This is
accomplished through investment in large and mid-cap companies exhibiting high
profitability, above-average earnings growth and leadership positions within
their industry sector. The Fund is managed to maintain industry diversification
in all major sectors, with a strong emphasis on bottoms-up fundamentals of
individual stocks.
During the early months of operation, the Fund has concentrated on growth
situations in several sectors: Consumer, with an emphasis on retailing and
advertising stocks; Technology, where holdings have focused on personal
computing, semiconductors, and Internet infrastructure; and Financial Services,
with an emphasis on higher growth type companies. More recently the Fund has
begun to increase holdings in the oil services segment which is showing improved
profits growth. As of May 31, 2000, 75% of the Fund is invested in large cap
names and 25% in mid-cap stocks. The trade-off between valuation and growth
seems reasonable. The price-to-earnings ("P/E") ratio for the portfolio is just
under 30, which is approximately 15% above the S&P 500 Composite Index's P/E
ratio of 26. The 12-months forward estimated earnings growth for the portfolio
is 26%, which is over twice the 11% forecast for the S&P 500 Index.
Successful results for the Fund will be based on a dedication to in-depth
fundamental research by the Adviser, Trusco Capital Management, and a
disciplined approach to stock selection. Inherent in management of the Fund is
an active sell discipline designed to weed out companies where earnings trends
are beginning to deteriorate.
We extend sincere thanks to our valued Fund shareholders who have shown
confidence in the Core Equity Fund philosophy by investing in the Fund during
these initial months. We pledge our continued intense focus to produce
competitive and attractive long-term returns through a diversified portfolio of
growth companies. Many leading growth companies have had price corrections in
the last several months which bring their shares back into attractive buying
ranges. Once the Federal Reserve is done with its current adjustment process, we
believe companies with strong earnings growth will once again be rewarded with
good returns.
/s/signature omitted
Robert J. Rhodes, CFA
Portfolio Manager
6
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Cumulative
Inception
to Date
11.10%
[line graphic omitted]
plot points follows:
STI Classic S&P 500
Core Equity Fund Composite
Trust Shares Index
9/30/99 $10,000 $1,0000
5/31/00 11,111 11,164
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Cumulative
Inception
to Date*
10.60% Without load
8.60% With load
[line graphic omitted]
plot points follows:
STI Classic S&P 500
Core Equity Fund Composite
Flex Shares Index
9/30/99 $10,000 $10,000
5/31/00 10,860 11,164
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
(1) Commenced operations on September 30, 1999.
(2) Commenced operations on January 24, 2000.
*Flex Shares performance for the period prior to January 24, 2000 reflects
the performance of the Fund's Trust Shares. The performance of the Trust
Shares has not been adjusted to reflect the higher internal operating
expenses of the Flex Shares. If it had, performance would have been lower
than that shown.
7
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STI CLASSIC E-COMMERCE OPPORTUNITY FUND
---------------------------------------
The E-Commerce Opportunity Fund (the "Fund") invests in companies which are
expected to benefit substantially from electronic commerce and achieve above
average growth. While several other Internet-labeled funds invest primarily in
pure Internet stocks, the Fund diversifies its holdings across multiple
e-commerce market segments. The first segment includes pioneering companies
whose business model was founded on an emerging e-commerce market. The second
segment consists of technology companies that provide infrastructure to support
e-commerce transactions. The third segment is comprised of well-established,
non-technology companies which are deemed to be especially well positioned to
benefit from e-commerce.
The Investment Adviser believes that a carefully constructed, well-diversified
portfolio is an especially effective way to invest in this emerging marketplace.
The Adviser focuses on a bottom-up analysis that evaluates the competitive
advantages and market sustainability of companies. In addition, the Adviser
considers each investment in the context of the desired overall portfolio
objective and risk characteristics, aiming to build a portfolio with a favorable
risk and reward balance.
We are pleased to report that since inception (9/30/99), the Fund has returned
58.7% (Trust Shares) through May 31, 2000. This compares very favorably with the
26.2% return of the Goldman Sachs E-Commerce Index. Other representative
comparisons over this time period are the Dow Jones Internet Index, +2.3%, and
the Morgan Stanley High Technology Index, +47.3%. The fourth quarter of 1999 was
especially favorable for the Fund and the sectors in which the Fund invests. The
first several months of 2000 were marked by unusual volatility for both the Fund
and its peer group as the technology sector experienced profit taking.
The Adviser is being very selective in identifying pure Internet dot-com
companies for investment consideration due to increasing concerns about the
sustainability and profitability of many companies in this group. The three-tier
portfolio structure of Pioneer, Infrastructure and Established e-commerce
companies which has served the Fund well in these initial months will be
maintained as a core approach to investing in this exciting part of the 21st
century economy.
/s/signature omitted
Alan Kelley
Portfolio Manager
8
<PAGE>
TRUST SHARES
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED MAY 31, 2000)
CUMULATIVE
INCEPTION
TO DATE
58.70%
[LINE GRAPHIC OMITTED]
PLOT POINTS FOLLOWS:
STI Classic
E-Commerce Goldman Sachs
Opportunity Fund E-Commerce
Trust Shares Index
9/30/99 $10,000 $10,000
5/31/00 15,870 12,616
FLEX SHARES
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED MAY 31, 2000)
CUMULATIVE
INCEPTION
TO DATE*
58.19% WITHOUT LOAD
56.19% WITH LOAD
[LINE GRAPHIC OMITTED]
PLOT POINTS FOLLOWS:
STI Classic
E-Commerce Goldman Sachs
Opportunity Fund E-Commerce
Flex Shares Index
9/30/99 $10,000 $10,000
5/31/00 15,618 12,616
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
(1) Commenced operations on September 30, 1999.
(2) Commenced operations on January 24, 2000.
*Flex Shares performance for the period prior to January 24, 2000 reflects the
performance of the Fund's Trust Shares. The performance of the Trust Shares has
not been adjusted to reflect the higher internal operating expenses of the Flex
Shares. If it had, performance would have been lower than that shown.
9
<PAGE>
STI CLASSIC GROWTH AND INCOME FUND
----------------------------------
The STI Classic Growth and Income Fund (the "Fund") invests primarily in a
diversified mix of domestic common stocks and ADRs of foreign companies with
market capitalizations of at least $1 billion. The Fund is managed in a large
capitalization, value style, competing against funds with a similar objective as
categorized under Lipper's "Large Cap Value Equity" universe. The team uses a
proprietary quantitative screening process to identify attractive ideas. The
Fund's management team then evaluates each potential purchase with careful
fundamental research, and constructs a diversified portfolio that seeks
long-term appreciation from large capitalization equities.
Since the last year-end report, the equity markets have been confronted by a
sustained period of vigorous economic growth and rising interest rates, despite
Federal Reserve attempts at moderating the pace of expansion. Investors have
become increasingly concerned that the long economic expansion we have enjoyed
will finally result in wage and price pressures and sustainably higher interest
rates, which will negatively impact record corporate profits and future growth.
The quest for sustainable growth led many investors to the technology area, the
pacesetting sector in the market for the past few years, and out of virtually
all other areas of the market. As 1999 progressed, an extreme polarity developed
in which technology was perceived as invulnerable to economic forces while the
rest of the market was vulnerable. This polarity climaxed in February of this
year with valuation disparities between market sectors at levels not seen in
years. At the Fund's May 31 year end, we are starting to see the pendulum swing
back toward narrowing the valuation gap, a process we view as inevitable and
likely to continue.
In the environment we have described, the Growth & Income Fund specifically, and
diversified funds generally lagged the major market indexes, which have become
heavily influenced by technology issues. In the 12 month period ended May 31,
2000 the Fund returned 4.11% (Trust Shares), compared to 10.47% for the S&P 500
index. We are sensitive to, but not overly-focused on, short term results, and
note that our longer term performance comparisons versus our peer group
remaingenerally above-average. While maintaining good exposure in technology, we
did not view the investor attention which surrounded that sector in the past few
quarters as sustainable, nor the valuations compelling enough to warrant a 30%
plus portfolio commitment. Rather, as "old economy" stocks sank out of favor, we
took a disciplined approach in increasing our exposure where we did find
compelling value, notably in the financials, consumer non-cyclicals, and select
economically sensitive issues. Only as technology has begun to correct sharply
in the March-May period have we identified opportunities to add to that area,
but remain underweighted versus the S&P 500 Composite Index. Conversely, we have
greater than market exposure to consumer non-cyclicals, financials, and energy.
As we look ahead, we believe that the Federal Reserve will succeed in slowing
the torrid economic pace; we also see a whiff of inflation and slowing corporate
profits. In such an environment, no sector of the market will prove truly
"bullet proof". For this reason, we are confident that a diversified fund like
Growth and Income can cushion some of the market "speed bumps" that lie ahead,
and prosper from the opportunities market volatility creates for disciplined
investors. We appreciate your vote of confidence in our approach.
/s/signature omitted
Jeffrey E. Markunas
Portfolio Manager
10
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
4.11% 15.06% 18.28% 15.81% 208.78%
[line graphic omitted]
plot points follows:
STI Classic
Growth and S&P 500
Income Fund Composite
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
5/31/00 3,0571 39,934
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
3.92% 14.98% 18.23% 15.46% 176.36% Without load
0.03% 13.52% 17.33% 14.84% 166.00% With load
[line graphic omitted]
plot points follows:
STI Classic
Growth and S&P 500
Income Fund Composite
Investor Shares Index
5/31/93 $ 9,625 $10,000
5/31/94 9,711 10,423
5/31/95 11,190 12,523
5/31/96 13,909 16,082
5/31/97 17,003 20,811
5/31/98 21,506 27,193
5/31/99 24,874 32,917
5/31/00 25,849 36,364
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
3.11% 14.14% 17.40% 17.84% 132.71% Without load
1.19% With load
[line graphic omitted]
plot points omitted:
STI Classic
Growth and S&P 500
Income Fund Composite
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
5/31/00 22,959 30,196
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 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 as measured by the MSCI EAFE Index. The Fund focuses on
sector and company fundamentals specifically looking for companies that are
leaders in their industry, produce quality products, and have sound financial
positions. Our goal is to find companies that have improving growth
characteristics at attractive valuation levels relative to their global peers.
The Fund's performance for the year June 1999 to May 2000 was 10.58% (Trust
Shares) versus the MSCI EAFE return of 17.10%. However, over the last three
months of the fiscal year the Fund was up 12.20%, which was significantly better
than the 4% drop in the MSCI EAFE benchmark. The Fund stayed out of the high
technology sector due to valuation concerns. This proved to be very beneficial
as the technology sector has had a major correction.
We have begun to take advantage of the improving market conditions in both
Germany and Japan by trimming our position in the U.K. The established company
stocks in Japan are trading at attractive valuations and we believe they will be
well insulated against any U.S. market volatility.
In the longer term, there are several major themes that will continue to
influence the international equity stock performance: 1) the private sector is
gaining influence in place of governments and the free market is being expanded
and therefore resources are better allocated; 2) technology is continuing to
improve productivity throughout the world; 3) the adoption of U.S. style pension
and retirement systems is increasing internationally, placing more assets into
the global equity markets; and 4) industry consolidation is occurring on a
global basis. Larger companies no longer compete in just one country, but
compete globally. These trends benefit international equity markets by improving
both earnings growth and the valuations of companies. Since many of these trends
are still years behind the U.S. market, we believe international stocks continue
to offer advantages to U.S. investors. These advantages include the potential
for attractive returns as well as portfolio diversification benefits.
/s/signature omitted
Chad Deakins, CFA
Portfolio Manager
12
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years* to Date to Date
10.58% 7.65% 14.94% 17.23% 133.46%
[line graphic omitted]
plot points follows:
STI Classic
International MSCI EAFE
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
5/31/00 23,346 17,560
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
10.15% 7.22% 14.54% 16.85% 129.46% Without load
6.04% 5.86% 13.67% 16.02% 120.93% With load
[line graphic omitted]
plot points follows:
STI Classic
International MSCI EAFE
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
5/31/00 22,084 17,560
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
9.38% 6.46% 13.87% 16.21% 122.84% Without load
7.46% With load
[line graphic omitted]
plot points omitted:
STI Classic
International MSCI EAFE
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
5/31/00 22,283 17,560
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
*For periods prior to December 1995, when the fund began operating, the
performance quoted reflects performance of the adviser's similarly managed
collective investment fund, adjusted to reflect fees and expenses of the Fund's
Trust Shares. Trust Shares have lower expenses than Investor or Flex Shares,
which results in higher performance for the Flex and Investor Shares than it
would have been had the expenses of these classes have been applied. The
collective investment fund was not a registered mutual fund, and therefore, was
not subject to certain investment and tax restrictions which may have adversely
affected performance.
13
<PAGE>
STI CLASSIC INTERNATIONAL EQUITY INDEX FUND
--------------------------------------------
The STI Classic International Equity Index Fund (the "Fund") invests in equity
securities of foreign issuers and seeks to closely match the returns of the MSCI
EAFE-GDP Index, the funds benchmark.
The Fund's performance for the year June 1999 to May 2000 was 19.36% (Trust
Shares) compared to 19.30% for the MSCI EAFE-GDP. The MSCI EAFE (capitalization
weighted) index return for the same period was 17.10%. The superior performance
of the GDP weighted index relative to the market capitalization weighted index
reinforces our choice of a GDP based allocation strategy.
Early last year we performed some statistical research to reduce the tracking
error of the portfolio. As a result of our findings, we have increased the
number of stocks in the portfolio from 350 to 570. We have seen a reduction in
the tracking error even though world equity market volatility has increased.
Looking forward, here is our view on world equity markets. There are
several major themes which will continue to influence the international equity
stock performance: 1) the private sector is gaining influence in place of
governments and the free market is being expanded and therefore resources are
better allocated; 2) technology is continuing to improve productivity throughout
the world; 3) the adoption of U.S. style pension and retirement systems is
increasing internationally, placing more assets into the global equity markets;
and 4) industry consolidation is occurring on a global basis. Larger companies
no longer compete in just one country, but compete globally. The International
Equity Index Fund is a proven vehicle for participation in the global growth of
non-U.S. markets. Because the benefits of more efficient capital markets are
still growing overseas, we continue to suggest international equities offer
significant potential for U.S. investors.
/s/signature omitted
Chad Deakins, CFA
Portfolio Manager
14
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years* to Date to Date
19.36% 17.45% 13.73% 11.83% 95.40%
[line graphic omitted]
plot points follows:
STI Classic MSCI EAFE-GDP
International Index Weighted
Equity Index Fund in U.S. $
Trust Shares (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
5/31/00 19,659 17,900
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
18.86% 16.91% 13.26% 11.36% 90.46% Without load
14.36% 15.42% 12.39% 10.65% 83.31% With load
[line graphic omitted]
plot points follows:
STI Classic MSCI EAFE-GDP
International Index Weighted
Equity Index Fund in U.S. $
Investor Shares (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
5/31/00 18,461 17,900
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years to Date to Date
18.04% 16.17% 12.60% 80.40% Without load
16.04% With load
[line graphic omitted]
plot points omitted:
STI Classic MSCI EAFE-GDP
International Index Weighted
Equity Index Fund in U.S. $
Flex Shares (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
5/31/00 18,202 17,525
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
15
<PAGE>
STI CLASSIC LIFE VISION AGGRESSIVE GROWTH FUND
-----------------------------------------------
The Life Vision Aggressive Growth Fund (the "Fund") completed its first full
year as a proud member of the STI Classic family of mutual funds. It has been a
year of both growth and refinement. The Fund contains a crafted blend of STI
Classic equity and money market mutual funds that are designed to achieve both
capital appreciation and reduced volatility through style diversification.
On May 1, 2000, the Fund changed its name from the Life Vision Maximum Growth
Portfolio to the Life Vision Aggressive Growth Fund. This change, in conjunction
with name changes in the other Life Vision Funds, should be helpful to
shareholders in making investment choices. The Fund will continue to invest in a
diversified blend of equity funds. As in the past, the specific blend of equity
and money market funds will reflect our view of the financial market's current
and prospective risks and opportunities.
Over the past year, the current economic expansion thrived as it became the
nation's longest period of sustained growth ever. However, against a backdrop of
improving global recovery and expansion, this continued growth was feared as
potentially inflationary. With labor markets becoming increasingly tight and the
price and availability of oil more uncertain, the Federal Reserve (the "Fed")
decided to take steps to slow the pace of the economy through higher interest
rates. Stocks adjusted under the weight of the increasingly aggressive and
restrictive Fed interest rate increases. The greatest impact came in the final
three months of the fiscal year when the equity markets, and specifically the
dominant technology sector, slumped.
The Fund benefited from the general rise in the equity markets, though the
narrow scope of the gains meant that not all segments of the stock market shared
evenly. The Fund stayed fully invested with minimal cash levels in order to
capture more of the upward move in stocks. However, the Fund's exposure to value
and small-cap stocks tended to limit overall performance. The Fund's return for
the full year ended May 31, 2000 was 7.25%. This was below the 10.47% rise in
the cap-weighted S&P 500 Composite Index.
Looking ahead, we see increasing signs that the economy will slow under the
weight of the succession of Fed interest rate hikes. As the pace of the
expansion slows to a more sustainable level, corporate profits growth could slow
from the recent 20+% pace. On the positive side, the need for higher interest
rates could diminish. If the economy and interest rates reach this point of
inflection we believe the blend of equity funds is positioned to achieve
balanced and less volatile returns.
Again, we thank you for using the STI Classic Life Vision Aggressive Growth Fund
and we look forward to serving your investment needs in the year ahead.
Trusco Capital Management, Inc.
16
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years* to Date to Date
7.25% 12.01% 14.85% 12.64% 141.90%
[line graphic omitted]
plot points follows:
STI Classic 60/30/10
Life Vision Aggressive Blend of S&P 500 Russell Salomon
Growth Fund the Following Composite 2000 3-Month
Trust Shares Indices Index Index T-Bill
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
5/31/00 24,192 30,591 38,022 23,934 14,163
Past performance is no indication of future performance.
*For periods prior to June 1997, when the Fund began operating, the performance
quoted reflects past performance of Crestar Bank's similarly managed asset
allocation model, adjusted to reflect the Fund's fees and expenses. The asset
allocation model was not a registered mutual fund, and therefore was not
subject to certain investment and tax restrictions which may have adversely
affected performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
17
<PAGE>
STI CLASSIC LIFE VISION GROWTH AND INCOME FUND
----------------------------------------------
The Life Vision Growth and Income Fund (the "Fund") completed its first full
year as a proud member of the STI Classic family of mutual funds. It has been a
year of both growth and refinement. The Fund contains a crafted blend of STI
Classic equity, fixed-income, and money market mutual funds that are designed to
achieve both capital appreciation and reduced volatility.
On May 1, 2000, the Fund adopted two changes that we believe will benefit our
shareholders going forward. The first was to change the name of the Fund from
the Life Vision Growth and Income Portfolio to the Life Vision Growth and Income
Fund. This modest change, in conjunction with name changes in the other Life
Vision Funds, should be helpful to shareholders in making investment choices.
The second change was a small adjustment to the ranges allowed for each asset
class. The revised asset class ranges are: Equity Funds - 50% - 80%,
Fixed-Income Funds - 25% - 50%, and Money Market Funds - 0% - 20%. As in the
past, the specific blend of equity, bond, and money market funds will reflect
our view of the financial market's current and prospective risks and
opportunities.
Over the past year, the current economic expansion thrived as it became the
nation's longest period of sustained growth ever. However, against a backdrop of
improving global recovery, this continued growth was feared as potentially
inflationary. With labor markets becoming increasingly tight and the price and
availability of oil more uncertain, the Federal Reserve (the "Fed") decided to
take steps to slow the pace of the economy through higher interest rates.
The Fund benefited from the continued, although narrow, rise in the equity
markets, while the fixed-income markets struggled under the weight of
increasingly aggressive and restrictive Fed interest rate increases. The Fund
stayed fully invested with minimal cash levels in order to capture more of the
upward move in stocks. However, on the equity side, the Fund's exposure to value
and small-cap stocks tended to limit overall performance, while positions in
higher-quality corporate bonds reduced total return in the fixed-income segment.
The Fund's return for the full year ended May 31, 2000 was 5.81%, between the
10.47% rise in the S&P 500 Composite Index and the 2.10% rise in the Lehman U.S.
Aggregate Bond index.
Looking ahead, we see increasing signs that the economy will slow under the
weight of the succession of Fed interest rate hikes. As the pace of the
expansion slows to a more sustainable level, corporate profits growth could slow
from the recent 20+% pace but also the need for higher interest rates should
diminish. This environment could be increasingly favorable to the bond market.
If the economy and interest rates reach this point of inflection we believe the
blend of equity and fixed-income funds is positioned to achieve balanced and
less volatile returns.
Again, we thank you for using the STI Classic Life Vision Growth and Income Fund
and we look forward to serving your investment needs in the year ahead.
Trusco Capital Management, Inc.
18
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years* to Date to Date
5.81% 10.05% 11.98% 10.45% 109.07%
[line graphic omitted]
plot points follows:
STI Classic 50/25/20/5
Life Vision Growth Blend of S&P 500
and Income Fund the Following Composite
Trust Shares Market Indices Index
12/31/92 $10,000 $10,000 $10,000
5/31/93 10,551 10,481 10,456
5/31/94 10,664 10,925 10,898
5/31/95 11,875 12,592 13,094
5/31/96 13,878 15,397 16,816
5/31/97 15,688 18,215 21,760
5/31/98 18,529 22,326 28,434
5/31/99 19,760 24,927 34,419
5/31/00 20,908 27,093 38,022
Lehman
U.S. Aggregate Russell Salomon
Bond 2000 3-Month
Index Index T-Bill
12/31/92 $10,000 $10,000 $10,000
5/31/93 10,500 10,588 10,125
5/31/94 10,573 11,511 10,454
5/31/95 11,789 12,697 10,998
5/31/96 12,305 17,255 11,601
5/31/97 13,329 18,458 12,211
5/31/98 14,784 22,378 12,851
5/31/99 15,426 21,776 13,462
5/31/00 15,750 23,934 14,163
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
*For periods prior to June, 1997, when the Fund began operating, the performance
quoted reflects performance of Crestar Bank's similarly managed asset
allocation model, adjusted to reflect the Fund's fees and expenses. The asset
allocation model was not a registered mutual fund, and therefore was not
subject to certain investment and tax restrictions which may have adversely
affected performance.
19
<PAGE>
STI CLASSIC LIFE VISION MODERATE GROWTH FUND
---------------------------------------------
The Life Vision Moderate Growth Fund (the "Fund") completed its first full year
as a proud member of the STI Classic family of mutual funds. It has been a year
of both growth and refinement. The Fund contains a crafted blend of STI Classic
equity, fixed-income, and money market mutual funds designed to achieve both
capital appreciation and reduced volatility.
On May 1, 2000, the Fund adopted two changes that we believe will benefit our
shareholders going forward. The first was to change the name of the Fund from
the Life Vision Balanced Portfolio to the Life Vision Moderate Growth Fund. This
name is more descriptive of the investment approach and goal of the Fund, and
should be helpful to shareholders in making investment choices. The second
change was a small adjustment to the ranges allowed for each asset class. The
revised asset class ranges are: Equity Funds - 35%-65%, Fixed-Income Funds - 35%
- 65%, and Money Market Funds - 0% - 20%. As in the past, the specific blend of
equity, bond, and money market funds will reflect our view of the financial
market's current and prospective risks and opportunities
In the past year, the current economic expansion thrived as it became the
nation's longest period of sustained growth ever. However, against a backdrop of
improving global recovery, this continued growth was feared as potentially
inflationary. With labor markets becoming increasingly tight and the price and
availability of oil more uncertain, the Federal Reserve (the "Fed") decided to
take steps to slow the pace of the economy through higher interest rates.
The Fund benefited from the continued, although narrow, rise in the equity
markets while the fixed-income markets struggled under the weight of
increasingly aggressive and restrictive Fed interest rate increases. The Fund
stayed fully invested with minimal cash levels in order to capture more of the
upward move in stocks. However, on the equity side, the Fund's exposure to value
and small-cap stocks tended to limit overall performance, while positions in
higher-quality corporate bonds reduced total return in the fixed-income segment.
The Fund's return for the full year ended May 31, 2000 was 4.46%, between the
10.47% rise in the S&P 500 Composite Index and the 2.10% rise in the Lehman U.S.
Aggregate Bond index.
Looking ahead, we see increasing signs that the economy will slow under the
weight of the succession of Fed interest rate hikes. As the pace of the
expansion slows to a more sustainable level, corporate profits growth could slow
from the recent 20+% pace but also the need for higher interest rates should
diminish. This environment could be increasingly favorable to the bond market.
If the economy and interest rates reach this point of inflection we believe the
blend of equity and fixed-income funds is positioned to achieve balanced and
less volatile returns.
Again, we thank you for using the STI Classic Life Vision Moderate Growth Fund
and we look forward to serving your investment needs in the year ahead.
Trusco Capital Management, Inc.
20
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years* 5 Years* to Date to Date
4.46% 9.20% 10.68% 9.46% 95.54%
[line graphic omitted]
plot points follows:
STI Classic 40/35/20/5
Life Vision Moderate Blend of
Growth Fund the Following S&P 500
Trust Shares Benchmarks Index
12/31/92 $10,000 $10,000 $10,000
5/31/93 10,539 10,487 10,456
5/31/94 10,601 10,892 10,898
5/31/95 11,774 12,462 13,094
5/31/96 13,439 14,928 16,816
5/31/97 15,013 17,353 21,760
5/31/98 17,580 20,927 28,434
5/31/99 18,718 23,041 34,419
5/31/00 19,553 24,847 38,022
Lehman
U.S. Aggregate Russell Salomon
Bond 2000 3-Month
Index Index T-Bill
12/31/92 $10,000 $10,000 $10,000
5/31/93 10,500 10,588 10,125
5/31/94 10,573 11,511 10,454
5/31/95 11,789 12,697 10,998
5/31/96 12,305 17,255 11,601
5/31/97 13,329 18,458 12,211
5/31/98 14,784 22,378 12,851
5/31/99 15,426 21,776 13,462
5/31/00 15,750 23,934 14,163
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
*For periods prior to June, 1997, when the Fund began operating, the performance
quoted reflects performance of Crestar Bank's similarly managed asset
allocation model, adjusted to reflect the Fund's fees and expenses. The asset
allocation program was not a registered mutual fund, and therefore was not
subject to certain investment and tax restrictions which may have adversely
affected performance.
21
<PAGE>
STI CLASSIC MID-CAP EQUITY FUND
-------------------------------
The STI Classic Mid-Cap Equity Fund (the "Fund") seeks capital appreciation by
investing primarily in the stocks of companies with a market capitalization
between $500 million and $10 billion or in the S&P 400 Mid Cap Index.
Mid-cap securities with a strong growth history are the primary consideration
for this investment philosophy. These companies are evaluated relative 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
("P/E") ratios.
The Fund's performance from June 1999 to May 2000 was 19.10% (Trust Shares). Mid
Cap stocks had a strong year, with the S&P 400 Mid Cap index up 21.45%. This
exceeded both the S&P 500 Composite Index of 10.47% and the S&P 600 Small Cap
Index gain of 14.2%.
Our technology holdings have been a positive contributor to performance
over the last year. Our overweighting in energy, particularly in oil-service
companies, has been a positive contributor to performance. Some of our health
care holdings provided very strong returns as well. Financial stocks had a
disappointing year and our financial stocks negatively affected returns. A few
of our "old economy" stocks provided disappointing returns, even when company
fundamentals remained strong.
Over the last year, mid cap stocks have shown strong performance relative to
large and small cap stocks. We believe that mid cap stocks offer an excellent
way to participate in the rapid growth of companies in exciting industries.
Moreover, mid cap stocks continue to trade at a P/E ratio discount to large cap
stocks.
We continue to focus on the faster growing areas of the economy, including
the technology, energy and healthcare sectors. We believe there are many
compelling opportunities within these areas in the mid cap arena, and
accordingly, reason for optimism regarding investment returns.
/s/signature omitted
John Hamlin
Portfolio Manager
22
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
19.10% 13.60% 16.02% 14.33% 133.36%
[line graphic omitted]
plot points follows:
[line graphic omitted]
plot points follows:
STI Classic
Mid-Cap S&P 400
Equity Fund Mid-Cap
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
5/31/00 23,036 28,950
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years to Date to Date
18.55% 13.08% 15.50% 13.77% 126.41% Without Load
14.08% 11.66% 14.61% 13.08% 117.91% With Load
[line graphic omitted]
plot points follows:
STI Classic
Mid-Cap S&P 400
Equity Fund Mid-Cap
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
5/31/00 21,790 28,539
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years to Date to Date
17.87% 12.40% 14.60% 97.06% Without Load
15.87% With Load
[line graphic omitted]
plot points follows:
STI Classic
Mid-Cap S&P 400
Equity Fund Mid-Cap
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
5/31/00 19,006 25,749
Past performance is no indication of future 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 Small Cap Growth Fund's (the "Fund") investment philosophy is based on the
premise that a portfolio of small cap stocks with positive earnings trends,
reasonable valuation, and strong fundamentals will provide superior returns over
time. We believe in executing a very disciplined and objective investment
process and in controlling risk through a broadly diversified portfolio. In
selecting stocks for the Fund, first and foremost, we look for companies with
strong current earnings growth, improving profitability trends, a strong balance
sheet, and high quality earnings. Next, we analyze the business fundamentals of
each company to help us determine the sustainability of a company's earnings
growth. Lastly, we buy these companies at reasonable valuations, focusing on
those companies that have the best combination of the aforementioned
characteristics across a broad spectrum of industry and economic sectors.
For the fiscal year ending May 31, 2000, small cap stocks finished a
roller-coaster year on a weak note as technology issues began a significant
correction toward the end of March 2000. This corrective phase was the
culmination of a bear market in most stocks that began in June 1999 in response
to the Federal Reserve's (the "Fed") efforts to raise interest rates. In spite
of the recent weakness in small cap stocks and the market in general, the S&P
600 Small Cap Index finished the year with a respectable 14.15% return,
outpacing the 10.47% return of the S&P 500 Composite Index. Considering that
small caps had under-performed large caps for the prior four years, this past
year represents a modest victory for small cap stocks.
For most of this past year, until the last 3 months, technology and
internet-related issues were the place to be. Portfolios not invested in
technology stocks under-performed the market, as the returns of most other
stocks lagged far behind those of technology issues. As a result, growth stocks
generated the strongest returns while value stocks struggled. In calendar year
1999, the Russell 2000 Growth returned 42.50% while the Russell 2000 Value
returned a negative 4.00%. This disparity between growth and value was the
widest on record. Over the last three months ending this fiscal year, however,
we began to witness a reversal of the domination of growth and technology
issues. As money began to flow out of tech issues in March, market breadth
widened and many other stocks with more reasonable valuations have started to
out-perform. We view this as a healthy trend for the overall market.
The Fund, with its core growth investment approach, enjoyed the best of both
worlds over the past year. Not only did we capture some of the strong returns
posted by technology issues during the first nine months of the year, but we
have been able to hold onto most of our gains over the last three months during
this correction in technology issues. For the year ending May 31, the Fund
returned 27.24% (Trust Shares) compared to the 14.15% return of the S&P 600
Small Cap Index and the 22.35% return of the Lipper Small Cap Core
classification.
After reducing technology exposure during the early part of this year, the
recent tech correction prompted us to add back to this sector. Another area of
recent emphasis includes the energy sector where we have increased our weighting
from 2% to nearly 10% over the last few months. Company fundamentals and
earnings trends have been improving dramatically as oil prices have rebounded
sharply from last year's lows. Finally, we have slowly been increasing our
emphasis in the financial sector. The Fed's actions of raising interest rates
have been a major headwind for the performance of financial stocks, and many
companies with solid earnings growth have reached compelling valuations.
Looking forward, following the market's current corrective phase, we expect that
the small cap market will broaden, and more stocks will participate in the
market's upward advance. Relative to large cap stocks, small cap stocks are
still well undervalued, and we believe that this valuation disparity will
continue to narrow. We will continue to adhere to our investment philosophy. Our
approach should provide investors the opportunity to participate not only in the
high growth sectors of the small cap market, but also to participate in the
broader small cap market as well. We feel confident that the disciplined
execution of our process will lead to consistently strong investment results
over time.
/s/signature omitted
Mark D. Garfinkel, CFA
Portfolio Manager
24
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year to Date to Date
27.24% 45.48% 85.38%
[line graphic omitted]
plot points follows:
[line graphic omitted]
plot points follows:
STI Classic
Small-Cap Growth S&P 600
Stock Fund Small-Cap
Trust Shares Index
10/31/98 $10,000 $10,000
5/31/99 12,070 11,168
5/31/00 15,358 12,748
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year to Date to Date
27.03% 45.34% 85.08% Without Load
22.24% 42.00% 78.13% With Load
[line graphic omitted]
plot points follows:
STI Classic
Small-Cap Growth S&P 600
Stock Fund Small-Cap
Investor Shares Index
10/31/98 $ 9,625 $10,000
5/31/99 11,618 11,168
5/31/00 14,758 12,748
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year to Date to Date
25.95% 44.03% 82.34% Without Load
23.95% With Load
[line graphic omitted]
plot points follows:
STI Classic
Small-Cap Growth S&P 600
Stock Fund Small-Cap
Flex Shares Index
10/31/98 $10,000 $10,000
5/31/99 12,004 11,168
5/31/00 15,119 12,748
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
(1) Commenced operations on December 12, 1999.
*Investor Shares performance for the periods prior to December 12, 1999 reflects
the performance of the Fund's Trust Shares. The performance of the Trust Shares
has not been adjusted to reflect the higher internal operating expenses of the
Investor Shares. If it had, performance would have been lower than that shown.
25
<PAGE>
STI CLASSIC SMALL CAP VALUE EQUITY FUND
-----------------------------------------
The STI Classic Small Cap Value Equity Fund (the "Fund") continues to invest in
the same style that has proven successful over long time periods. We focus on
smaller companies that are undervalued and pay a dividend yield. We emphasize
companies which are temporarily out of favor but are taking positive action to
regain average historical valuations. We focus on investments where in 18-24
months we can see internal improvements reflected in higher equity prices. The
events we are focusing on include: turnarounds, new management teams, financial
restructurings, new products, acquisitions, divestment of underperforming
divisions, and insider ownership.
The past twelve months has been a continuation of the prior year where the
majority of money flowing into the equity market has been focusing on sectors
other than the small cap value area. The small cap value equity market has been
the worst sector in the U.S. equity market over the past year returning -0.3% as
measured by the Russell 2000 Value Index. This compares to a return of 19.7% for
the Russell 2000 Growth Index. In 1999, the return gap between "value" stocks
and "growth" stocks was the widest ever recorded. Technology,
telecommunications, internet, and biotechnology related securities received the
bulk of investor attention over the past year. We have had little exposure to
companies in these sectors as the valuations and expectations for these
companies have been far too high for our style of investing. We prefer to buy
firms which are producing positive earnings and cash flow and selling at big
discounts to their private market values. We are also generating current income
from the dividends paid by the companies we hold.
The Fund's performance for the year was adversely affected by our lack of
exposure to the four sectors mentioned above. We are confident that as the
equity markets return to a more balanced mode, investors will once again focus
on valuations such as earnings, cash-flow, and private market values.
One event which may trigger investors back into small cap value equities more
aggressively is the large buy-out premiums we are starting to see as firms in
this universe are acquired by larger companies through consolidation or
management led buy-outs. The very depressed valuations in the sector may also
attract investors' as some of the highly valued sectors in the equity market
potentially disappoint investors.
We are very comfortable with the low valuation of the portfolio and the
fundamentals of each company we own. With small cap value stocks having been out
of favor with investors' dollars for the past two years, we are extremely
excited about their outlook for the next several years.
/s/signature omitted
Brett L. Barner, CFA
Managing Director
26
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years 5 Years* to Date* to Date*
-4.72% -1.45% 11.01 12.08% 92.74%
[line graphic omitted]
plot points follows:
[line graphic omitted]
plot points follows:
STI Classic
Small-Cap Value Russell Russell
Equity Fund 2000 Value 2000
Trust Shares Index** Index
8/31/94 $10,000 $10,000 $10,000
5/31/95 11,432 10,471 10,638
5/31/96 15,171 13,272 14,457
5/31/97 20,138 16,009 15,465
5/31/98 24,888 20,279 18,749
5/31/99 20,229 18,346 18,245
5/31/00 19,274 18,298 20,053
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 years 5 Years* to Date* to Date*
-5.65% -2.44% 10.34% 11.49% 87.01% Without Load
-7.53% With Load
[line graphic omitted]
plot points follows:
STI Classic
Small-Cap Value Russell Russell
Equity Fund 2000 Value 2000
Flex Shares Index** Index
8/31/94 $10,000 $10,000 $10,000
5/31/95 11,432 10,471 10,638
5/31/96 15,171 13,272 14,457
5/31/97 20,138 16,009 15,465
5/31/98 24,627 20,279 18,749
5/31/99 19,819 18,346 18,245
5/31/00 18,700 18,298 20,053
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
*For periods prior to January 1997, when the Fund began operating, the
performance quoted reflects performance of the adviser's similarly managed
collective investment fund, adjusted to reflect fees and expenses of the Fund's
Trust Shares. Flex Shares performance for periods from January 1997 to June
1997 reflect performance of the Trust Shares. Trust Shares have lower expenses
than Flex Shares, which results in higher performance for Flex Shares than it
would have been had the expenses of that class been applied. The collective
investment fund was not a registered mutual fund, and therefore was not subject
to certain investment and tax restrictions which may have adversely affected
performance.
**Previously the Fund's returns had been compared to the Russell 2000 Index, but
the adviser believes that the Russell 2000 Value Index, because of its greater
emphasis on companies with lower growth rates and price-to-book ratios, more
accurately reflects the types of securities in which the Fund invests.
27
<PAGE>
STI CLASSIC TAX SENSITIVE GROWTH STOCK FUND
-------------------------------------------
The STI Classic Tax Sensitive Growth Stock Fund (the "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 with representation in all major market sectors. Secondly,
we try to select 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. For example, last
year the Fund was not required to make an income or capital gain distribution.
In terms of performance, the Fund returned 10.48% (Trust Shares) for the twelve
months ending May 31, 2000. This is comparative to the return for the Fund's
benchmark, the S&P 500, of 10.47% over this same time period.
/s/signature omitted
Jonathan Mote, CFA
Portfolio Manager
28
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years* to Date* to Date*
10.48% 21.00% 22.83% 147.50
[line graphic omitted]
plot points follows:
[line graphic omitted]
plot points follows:
STI Classic
Tax Sensitive S&P 500
Growth Stock Fund Composite
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
5/31/00 24,750 24,795
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Annualized Cumulative
Inception Inception
One Year 3 Years* to Date* to Date*
9.38% 20.43% 22.44% 144.02% Without Load
7.38% With Load
[line graphic omitted]
plot points follows:
STI Classic
Tax Sensitive S&P 500
Growth Stock Fund Composite
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
5/31/00 24,401 24,795
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
*For periods prior to December 1998, when the Fund began operating, the
performance quoted reflects performance of the adviser's similarly managed
collective investment fund, adjusted to reflect the Fund's fees and expenses.
The collective investment fund was not a registered mutual fund and therefore
was not subject to certain investment and tax restrictions which may have
adversely affected performance.
29
<PAGE>:
STI CLASSIC VALUE INCOME STOCK FUND
------------------------------------
The STI Classic Value Income Fund (the "Fund") seeks to provide current income
with capital enhancement by investing primarily in equity securities.
The Fund's investment philosophy is a very disciplined, methodical approach to
purchasing stocks. The bottoms-up process has three key factors to consider in
all investment decisions--minimum dividend criteria, low historical relative
valuation, and a fundamental catalyst which could cause an upward revaluation in
the individual security.
Our process seeks dividend-paying stocks that are trading at the lower end of
their historical valuation ranges. We then focus on companies in the midst of
fundamental change that we expect will reignite investor interest in the near
term. These types of stocks tend to exhibit "value" characteristics such as low
price-to-earnings ("P/E") ratios and generally have lower volatility. As a
result, the Fund benefits when the market becomes less exuberant and more
rational.
The Fund's return from June 1999 to May 2000 was -10.52% (Trust Shares) vs. a
return of 2.58% for the S&P 500 Barra Value Index. This underperformance had two
primary causes. First, a significant underweighting in technology stocks. Very
few technology stocks met our rigorous valuation criteria. In general,
technology P/E ratios expanded to twenty-year highs, as did other time-tested
valuation factors. Secondly, older established companies which comprise the
value investor universe saw precipitous declines in their P/E ratios even when
posting respectable earnings growth. Investors' infatuation with technology
concepts and "price momentum" became a self-fulfilling prophecy which drained
capital away from value stocks.
In the face of a disappointing period, we have not altered our disciplined
approach to investing. One important fact is the performance difference between
pure value and pure growth styles has never been so wide as in 1999. Such a
large discrepancy suggests a return to normalcy is the most likely outcome. In
fact, over the long-term value and growth as measured by the S&P Barra indices
have posted very similar returns. Therefore, we remain confident in the merits
of our investment approach and its ability to produce competitive returns.
Indeed, improvement is already visible as the Fund had an excellent return of
20% for the three months ended May 31st, vs. 10% for the S&P Barra Value Index.
We are very encouraged by this progress and believe it demonstrates the validity
of our approach to value investing.
/s/signature omitted
Mills A. Riddick, CFA
Managing Director
30
<PAGE>
Trust Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Cumulative
Inception
One Year 3 Years 5 Years* 10 Years* to Date*
-10.52% 6.97% 13.85% 15.03% 320.34%
[line graphic omitted]
plot points follows:
[line graphic omitted]
plot points follows:
STI Classic Lipper
Value Income S&P/BARRA Equity Income
Equity Fund Value Funds
Trust Shares Index** Classifications
10/31/89 $10,000 $10,000 $10,000
5/31/90 10,359 10,463 10,266
5/31/91 12,434 11,432 11,263
5/31/92 15,195 12,449 12,678
5/31/93 16,778 14,438 14,367
5/31/94 18,453 15,512 15,144
5/31/95 21,970 18,160 17,197
5/31/96 28,102 22,946 21,112
5/31/97 34,335 28,788 25,845
5/31/98 42,266 37,113 32,166
5/31/99 46,970 41,971 34,653
5/31/00 42,029 43,054 33,991
Investor Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Cumulative
Inception
One Year 3 Years 5 Years* 10 Years* to Date*
-10.83% 6.60% 13.43% 14.71% 308.61% Without Load
-14.18% 5.26% 12.57% 14.27% 293.19% With Load
[line graphic omitted]
plot points follows:
[line graphic omitted]
STI Classic Lipper
Value Income S&P/BARRA Equity Income
Equity Fund Value Funds
Investor Shares Index** Classifications
10/31/89 $ 9,625 $10,000 $10,000
5/31/90 9,970 10,463 10,266
5/31/91 11,967 11,432 11,263
5/31/92 14,625 12,449 12,678
5/31/93 16,142 14,438 14,367
5/31/94 17,641 15,512 15,144
5/31/95 20,942 18,160 17,197
5/31/96 26,678 22,946 21,112
5/31/97 32,465 28,788 25,845
5/31/98 39,837 37,113 32,166
5/31/99 44,104 41,971 34,653
5/31/00 39,328 43,054 33,991
Flex Shares
Average Annual Total Returns
(periods ended May 31, 2000)
Cumulative
Inception
One Year 3 years 5 Years* 10 Years* to Date*
-11.50% 5.80% 12.62% 14.41% 298.07% Without Load
-13.11% With Load
[line graphic omitted]
plot points follows:
STI Classic Lipper
Value Income S&P/BARRA Equity Income
Equity Fund Value Funds
Flex Shares Index** Classifications
10/31/89 $10,000 $10,000 $10,000
5/31/90 10,359 10,463 10,266
5/31/91 12,434 11,432 11,263
5/31/92 15,195 12,449 12,678
5/31/93 16,778 14,438 14,367
5/31/94 18,453 15,512 15,144
5/31/95 21,970 18,160 17,197
5/31/96 27,796 22,946 21,112
5/31/97 33,609 28,788 25,845
5/31/98 40,922 37,113 32,166
5/31/99 44,977 41,971 34,653
5/31/00 39,805 43,054 33,991
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
*For periods prior to February 1993, when the Fund began operating, the
performance quoted reflects performance of the adviser's similarly managed
collective investment fund, adjusted to reflect the Fund's fees and expenses.
The collective investment fund was not a registered mutual fund and therefore
was not subject to certain investment and tax restrictions which may have
adversely affected performance.
31
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
BALANCED FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (59.8%)
BASIC MATERIALS (0.7%)
Air Products & Chemicals 42,000 $ 1,454
Alcoa 9,500 555
--------
2,009
--------
CAPITAL GOODS (8.1%)
Danaher 3,900 188
Eastman Kodak 9,900 592
Energizer Holdings* 7,433 126
Fortune Brands 7,700 205
General Electric 138,600 7,294
Honeywell International 43,425 2,375
Illinois Tool Works 16,400 952
Minnesota Mining & Manufacturing 8,300 712
Republic Services* 38,400 634
Teradyne* 6,000 516
Textron 44,100 2,767
Tyco International 139,818 6,580
United Technologies 17,200 1,040
WW Grainger 6,000 240
--------
24,221
--------
COMMUNICATION SERVICES (4.6%)
ADC Telecommunications* 40,900 2,748
AT&T 11,300 392
AT&T Wireless Group* 2,000 57
CenturyTel 52,300 1,412
Charter Communications* 39,400 480
Comverse Technology* 8,900 813
Fox Entertainment Group* 600 16
Lucent Technologies 29,588 1,698
Motorola 12,401 1,163
Nortel Networks 20,600 1,119
Sprint (FON Group) 31,300 1,894
US West 19,300 1,390
Worldcom* 14,264 537
--------
13,719
--------
CONSUMER CYCLICALS (12.7%)
Bed Bath & Beyond* 3,800 140
Brinker International* 47,700 1,351
Carnival 32,400 879
Cendant* 174,741 2,315
Costco Wholesale* 43,100 1,377
CVS 86,700 3,771
Ecolab 26,900 1,029
Family Dollar Stores 33,300 658
Federated Department Stores* 4,500 173
Gannett 15,800 1,023
Gap 14,800 519
Interpublic Group 45,100 1,936
Knight Ridder 9,300 493
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS--CONTINUED
Kroger* 171,400 $ 3,407
Linens 'N Things* 39,000 1,036
Lowe's 65,600 3,054
Masco 99,450 1,958
McGraw-Hill 19,000 977
MediaOne Group* 30,800 2,058
New York Times, Cl A 25,300 971
Office Depot* 16,350 115
RadioShack 83,200 3,531
Royal Caribbean Cruises 31,100 766
Saks* 32,300 373
SFX Entertainment* 22,600 986
SPX* 5,200 548
Time Warner 16,900 1,334
United Rentals* 31,200 507
Young & Rubicam 10,500 501
--------
37,786
--------
CONSUMER STAPLES (3.4%)
Avon Products 13,900 574
Bestfoods 22,100 1,425
Dial 9,300 133
Flowers Industries 32,000 578
McDonald's 8,600 308
Nabisco Group Holdings 64,900 1,416
Nabisco Holdings 10,000 462
Pepsico 38,800 1,579
Ralston-Ralston Purina Group 70,100 1,301
Viacom, Cl B* 39,372 2,441
--------
10,217
--------
ENERGY (3.3%)
Burlington Resources 29,200 1,336
Conoco 100,600 2,867
Halliburton 15,900 811
Kerr-McGee 29,900 1,785
Texaco 27,600 1,585
Unocal 43,300 1,664
--------
10,048
--------
FINANCE (5.8%)
ACE 44,200 1,185
American International Group 10,128 1,140
AmSouth Bancorporation 9,603 173
Associates First Capital 21,400 587
AXA Financial 14,000 545
Bank of America 33,531 1,863
Chase Manhattan 22,800 1,703
Cigna 21,000 1,865
Comerica 20,400 1,033
Conseco 34,100 213
Freddie Mac 11,300 503
32
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FINANCE--CONTINUED
Mellon Financial 50,000 $ 1,928
Metlife* 37,300 765
PNC Financial Services Group 6,700 338
Radian Group 1,700 93
U.S. Bancorp 68,300 1,776
UnumProvident 11,700 265
Washington Mutual 40,676 1,169
--------
17,144
--------
HEALTH CARE (7.9%)
American Home Products 29,000 1,562
Baxter International 22,400 1,490
Bristol-Myers Squibb 40,100 2,208
Cardinal Health 33,465 2,171
Eli Lilly 7,050 537
HCA 4,400 119
Health Management
Associates, Cl A* 66,800 789
Johnson & Johnson 20,300 1,817
Merck 43,900 3,276
Mylan Laboratories 1,800 48
Pharmacia 30,000 1,558
Schering-Plough 59,700 2,888
Tenet Healthcare* 56,900 1,458
Warner-Lambert 29,800 3,639
--------
23,560
--------
TECHNOLOGY (12.7%)
Analog Devices* 20,000 1,540
BMC Software* 27,100 1,192
Ceridian* 53,500 1,291
Cisco Systems* 98,400 5,603
Computer Associates International 9,100 469
Computer Sciences* 7,500 720
Dell Computer* 16,500 712
EMC* 15,800 1,838
Hewlett-Packard 21,500 2,583
Intel 35,400 4,414
International Business Machines 48,200 5,172
Microsoft* 88,500 5,537
Novellus Systems* 4,100 198
Sun Microsystems* 49,800 3,816
Texas Instruments 36,200 2,615
--------
37,700
--------
TRANSPORTATION (0.6%)
Sabre Holdings* 14,674 422
United Parcel Service 20,300 1,215
--------
1,637
--------
Total Common Stocks
(Cost $133,495) 178,041
--------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
RIGHTS (0.0%)
Cendant, Expires 02/14/01 8,000 $ 61
--------
Total Rights
(Cost $0) 61
--------
PREFERRED STOCKS (0.3%)
COMMUNICATION SERVICES (0.3%)
Cox Communication,
CV to 0.8621 Shares* 7,300 752
--------
FINANCE (0.0%)
Conseco Financing Trust, Ser F,
CV to 0.9363 Shares 10,000 92
--------
Total Preferred Stocks
(Cost $1,146) 844
--------
CORPORATE OBLIGATIONS (17.5%)
CONSUMER STAPLES (1.0%)
Avon Products
7.150%, 11/15/09 $ 850 792
Cooper Tire & Rubber
7.750%, 12/15/09 2,350 2,225
--------
3,017
--------
FINANCE (13.8%)
AON
6.900%, 07/01/04 3,400 3,272
Aristar
7.250%, 06/15/06 2,600 2,483
Associates of North America
6.250%, 11/01/08 3,650 3,221
Conseco
8.750%, 02/09/04 4,250 2,911
6.800%, 06/15/05 2,500 1,650
Conseco (C)
6.400%, 06/15/11 950 712
Countrywide Home Loan
6.850%, 06/15/04 1,750 1,656
Countrywide Home Loan, MTN
6.510%, 02/11/05 2,300 2,110
Donaldson Lufkin Jenrette, MTN
6.150%, 05/04/04 1,250 1,169
Finova Capital
7.250%, 11/08/04 1,425 1,190
7.250%, 07/12/06 2,200 1,763
Finova Capital, MTN
7.300%, 09/22/03 3,000 2,591
Household Finance
7.200%, 07/15/06 2,250 2,126
Morgan Stanley Dean Witter, MTN
7.375%, 04/15/03 1,800 1,779
Paine Webber Group
6.020%, 04/22/02 3,000 2,884
33
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
BALANCED FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
FINANCE--CONTINUED
Provident
7.000%, 07/15/18 $2,550 $ 1,979
Reliastar Financial
8.000%, 10/30/06 1,540 1,525
6.500%, 11/15/08 2,000 1,822
Wachovia
5.625%, 12/15/08 1,300 1,102
Washington Mutual
8.600%, 02/01/02 1,750 1,761
7.500%, 08/15/06 1,425 1,368
--------
41,074
--------
INDUSTRIAL (1.8%)
Dillards
6.430%, 08/01/04 2,350 2,018
Marriott International
7.875%, 09/15/09 2,100 2,013
Philip Morris
7.500%, 04/01/04 500 480
Times Mirror
7.450%, 10/15/09 1,000 962
--------
5,473
--------
UTILITIES (0.9%)
Florida Power & Light
5.875%, 04/01/09 3,000 2,659
--------
Total Corporate Obligations
(Cost $58,297) 52,223
--------
CONVERTIBLE BONDS (1.5%)
Bell Atlantic Financial Services,
CV to 178.0369 Shares,
Callable 04/01/01 @ 102.3
5.750%, 04/01/03 650 635
Elan Finance,
CV to 13.7500 Shares (A)
0.000%, 12/14/18 800 501
Network Associates,
CV to 8.5380 Shares (A)
0.000%, 02/13/18 1,000 352
NTL,
CV to 9.2435 Shares
5.750%, 12/15/09 300 234
Potomac Electric Power,
CV to 29.5000 Shares
5.000%, 09/01/02 2,100 1,974
Solectron,
CV to 12.3309 Shares (A)
0.000%, 05/05/20 1,400 786
--------
Total Convertible Bonds
(Cost $4,650) 4,482
--------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
U.S. AGENCY MORTGAGE-
BACKED OBLIGATIONS (1.9%)
FHLMC
7.375%, 05/15/03 $4,250 $ 4,251
FNMA
7.125%, 01/15/30 1,400 1,361
--------
Total U.S. Agency Mortgage-
Backed Obligations
(Cost $5,643) 5,612
--------
ASSET-BACKED OBLIGATIONS (1.4%)
Commercial, Ser 1999-1, Cl A2
6.455%, 06/15/08 4,450 4,050
--------
Total Asset-Backed Obligations
(Cost $4,117) 4,050
--------
U.S. TREASURY OBLIGATIONS (8.6%)
U.S. Treasury Notes
6.500%, 08/31/01 4,950 4,934
6.500%, 02/15/10 2,600 2,637
7.500%, 11/15/16 6,550 7,244
8.750%, 08/15/20 8,500 10,718
--------
Total U.S. Treasury Obligations
(Cost $25,180) 25,533
--------
REPURCHASE AGREEMENT (9.5%)
Greenwich Capital
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$28,246,331 (collateralized by
various GNMA obligations: total
market value $28,807,230) (D) 28,241 28,241
--------
Total Repurchase Agreement
(Cost $28,241) 28,241
--------
Total Investments (100.5%)
(Cost $260,769) 299,087
--------
OTHER ASSETS AND LIABILITIES, NET (-0.5%) (1,504)
--------
34
<PAGE>
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares
(unlimited authorization-- no par value)
based on 16,728,349 outstanding
shares of beneficial interest $183,902
Fund shares of the Investor Shares
(unlimited authorization -- no par value)
based on 716,879 outstanding shares
of beneficial interest 7,976
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 4,848,311 outstanding shares
of beneficial interest 62,104
Undistributed net investment income 1,359
Accumulated net realized gain
on investments 3,924
Net unrealized appreciation on investments 38,318
--------
Total Net Assets (100.0%) $297,583
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $13.37
========
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $13.43
========
Maximum Offering Price Per Share --
Investor Shares ($13.43 / 96.25%) $13.95
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $13.27
========
(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 68.
35
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
CAPITAL APPRECIATION FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (90.8%)
BASIC MATERIALS (0.9%)
Air Products & Chemicals 357,100 $ 12,365
Alcoa 40,800 2,384
----------
14,749
----------
CAPITAL GOODS (12.4%)
Danaher 33,900 1,634
Eastman Kodak 84,000 5,019
Energizer Holdings* 63,033 1,072
Fortune Brands 31,500 839
General Electric 1,176,700 61,924
Honeywell International 370,262 20,249
Illinois Tool Works 139,200 8,082
Minnesota Mining &
Manufacturing 71,100 6,097
Republic Services* 366,600 6,049
Teradyne* 50,800 4,369
Textron 377,900 23,713
Tyco International 1,225,004 57,652
United Technologies 146,200 8,836
WW Grainger 49,300 1,969
----------
207,504
----------
COMMUNICATION SERVICES (7.6%)
ADC Telecommunications* 347,200 23,327
AT&T 95,900 3,327
AT&T Wireless Group* 16,900 483
CenturyTel 451,050 12,178
Charter Communications* 381,700 4,652
Comverse Technology* 75,900 6,935
Lucent Technologies 287,351 16,487
Motorola 106,200 9,956
Nortel Networks 277,800 15,088
Sprint (FON Group) 265,900 16,087
US West 172,300 12,406
Worldcom* 162,453 6,112
----------
127,038
----------
CONSUMER CYCLICALS (19.0%)
Bed Bath & Beyond* 44,100 1,623
Brinker International* 405,200 11,472
Carnival 378,500 10,267
Cendant* 1,341,015 17,768
Costco Wholesale* 366,400 11,702
CVS 672,300 29,245
Ecolab 228,500 8,740
Family Dollar Stores 301,600 5,957
Federated Department Stores* 38,200 1,471
Gannett 114,600 7,420
Gap 68,200 2,391
Interpublic Group 384,000 16,488
Knight Ridder 79,100 4,192
Kroger* 1,454,200 28,902
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS--CONTINUED
Linens 'N Things* 332,400 $ 8,829
Lowe's 715,100 33,297
Masco 891,100 17,544
McGraw-Hill 164,582 8,466
MediaOne Group* 263,500 17,605
New York Times, Cl A 146,700 5,630
Office Depot* 244,850 1,729
RadioShack 708,400 30,063
Royal Caribbean Cruises 275,300 6,779
Saks* 274,400 3,173
SFX Entertainment* 98,000 4,275
SPX* 44,500 4,686
Time Warner 158,000 12,472
United Rentals* 282,600 4,592
Young & Rubicam 44,200 2,111
----------
318,889
----------
CONSUMER STAPLES (4.8%)
Avon Products 117,800 4,867
Bestfoods 188,000 12,126
Dial 78,800 1,123
Flowers Industries 314,200 5,675
McDonald's 72,800 2,607
Nabisco Group Holdings 557,900 11,847
Nabisco Holdings 84,900 3,921
Pepsico 329,700 13,415
Ralston-Ralston Purina Group 255,600 4,745
Viacom, Cl B* 334,591 20,745
----------
81,071
----------
ENERGY (4.4%)
Burlington Resources 276,000 12,627
Conoco 708,100 20,181
Halliburton 140,000 7,140
Kerr-McGee 122,700 7,324
Texaco 208,800 11,993
Unocal 367,300 14,118
----------
73,383
----------
FINANCE (8.9%)
ACE 378,500 10,149
American International Group 89,895 10,119
AmSouth Bancorporation 105,001 1,897
Associates First Capital 183,800 5,043
AXA Financial 118,700 4,622
Bank of America 283,238 15,737
Chase Manhattan 194,700 14,542
Cigna 178,800 15,880
Comerica 173,700 8,794
Conseco 399,100 2,494
Freddie Mac 95,600 4,254
Mellon Financial 427,500 16,485
36
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FINANCE--CONTINUED
Metlife* 316,300 $ 6,484
PNC Financial Services Group 76,100 3,834
Radian Group 14,600 803
U.S. Bancorp 581,400 15,116
UnumProvident 99,700 2,262
Washington Mutual 372,524 10,710
----------
149,225
----------
HEALTH CARE (11.6%)
American Home Products 246,800 13,296
Baxter International 190,800 12,688
Bristol-Myers Squibb 341,300 18,793
Cardinal Health 284,053 18,428
Eli Lilly 59,850 4,556
HCA 37,200 1,004
Health Management Associates,
Cl A* 565,800 6,684
Johnson & Johnson 172,400 15,430
Merck 377,564 28,176
Mylan Laboratories 15,100 405
Pharmacia 255,500 13,270
Schering-Plough 506,900 24,521
Tenet Healthcare* 482,900 12,374
Warner-Lambert 207,900 25,390
----------
195,015
----------
TECHNOLOGY (20.3%)
Analog Devices* 169,500 13,051
BMC Software* 230,600 10,146
Ceridian* 468,900 11,312
Cisco Systems* 1,002,300 57,068
Computer Associates
International 76,700 3,950
Computer Sciences* 63,600 6,102
Dell Computer* 141,100 6,085
EMC* 134,800 15,679
Hewlett-Packard 182,000 21,863
Intel 353,400 44,065
International Business Machines 409,500 43,944
Microsoft* 767,350 48,007
Novellus Systems* 35,300 1,701
Sun Microsystems* 453,000 34,711
Texas Instruments 308,600 22,296
----------
339,980
----------
TRANSPORTATION (0.9%)
Sabre Holdings* 128,309 3,689
United Parcel Service 190,100 11,382
----------
15,071
----------
Total Common Stocks
(Cost $1,053,202) 1,521,925
----------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
RIGHTS (0.1%)
Cendant, Expires 02/14/01 188,000 $ 1,445
----------
Total Rights
(Cost $0) 1,445
----------
PREFERRED STOCKS (0.4%)
COMMUNICATION SERVICES (0.1%)
Cox Communication,
CV to 0.8621 Shares* 9,500 978
Global Crossing,
CV to 4.6948 Shares 12,000 21
----------
999
----------
FINANCE (0.0%)
Conseco Financing Trust, Ser F,
CV to 0.9363 Shares 5,500 51
----------
HEALTH CARE (0.3%)
Biovail,
CV to 0.8241 Shares 125,000 5,820
----------
Total Preferred Stocks
(Cost $10,308) 6,870
----------
CONVERTIBLE BONDS (2.9%)
America Online,
CV to 5.8338 Shares (A)
0.000%, 12/06/19 $ 7,000 3,482
At Home,
CV to 17.6940 Shares
4.750%, 12/15/06 2,000 1,350
Bell Atlantic Financial Services,
CV To 178.0369 Shares
Callable 04/01/01 @ 102.3
5.750%, 04/01/03 6,150 6,012
Clear Channel Communications,
CV to 9.4535 Shares
1.500%, 12/01/02 800 783
Devon Energy,
CV to 9.3283 Shares
4.900%, 08/15/08 4,200 4,169
Echostar Communications,
CV to 22.0070 Shares
4.875%, 01/01/07 2,500 2,663
Elan Finance,
CV to 13.7500 Shares (A)
0.000%, 12/14/18 3,600 2,255
Molten Metal Technology,
CV to 25.8065 Shares (B)
5.500%, 05/01/06 10,000 50
Network Associates,
CV to 8.5380 Shares
Callable 02/13/03 @ 49.452
(A) (B)
0.000%, 02/13/18 10,000 3,525
37
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
CAPITAL APPRECIATION FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
CONVERTIBLE BONDS--CONTINUED
Network Associates,
CV to 8.5380 Shares (A)
0.000%, 02/13/18 $ 2,000 $ 705
NTL,
CV to 9.2435 Shares
5.750%, 12/15/09 5,500 4,290
Potomac Electric Power,
CV to 29.5000 Shares
5.000%, 09/01/02 8,150 7,661
Solectron,
CV to 12.3309 Shares (A)
0.000%, 05/05/20 11,700 6,567
Tower Automotive,
CV to 38.6399 Shares
5.000%, 08/01/04 4,200 3,386
Waste Management,
CV to 22.9590 Shares
4.000%, 02/01/02 3,000 2,696
----------
Total Convertible Bonds
(Cost $59,682) 49,594
----------
REPURCHASE AGREEMENTS (4.7%)
Deutsche Bank
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$39,557,152 (collateralized by
FNMA obligation: total market
value $40,341,068) (D) 39,550 39,550
Greenwich Capital
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$39,856,294 (collateralized by
various GNMA obligations: total
market value $40,647,043) (D) 39,849 39,849
----------
Total Repurchase Agreements
(Cost $79,399) 79,399
----------
CASH EQUIVALENT (0.5%)
AIM Liquid Assets Portfolio 7,941,822 7,942
----------
Total Cash Equivalent
(Cost $7,942) 7,942
----------
Total Investments (99.4% )
(Cost $1,210,533) 1,667,175
----------
OTHER ASSETS AND LIABILITIES, NET (0.6%) 9,332
----------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares
(unlimited authorization -- no par value)
based on 75,722,473 outstanding shares
of beneficial interest $ 785,444
Fund shares of the Investor Shares
(unlimited authorization -- no par value)
based on 14,890,558 outstanding shares
of beneficial interest 163,471
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 7,795,252 outstanding shares
of beneficial interest 118,340
Accumulated net investment loss (1)
Accumulated net realized gain
on investments 152,611
Net unrealized appreciation
on investments 456,642
----------
Total Net Assets (100.0%) $1,676,507
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $17.12
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $16.91
==========
Maximum Offering Price Per Share --
Investor Shares ($16.91 / 96.25%) $17.57
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $16.45
==========
(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 68.
38
<PAGE>
--------------------------------------------------------------------------------
CORE EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (98.5%)
BASIC MATERIALS (1.0%)
Avery Dennison 26,400 $ 1,617
--------
CAPITAL GOODS (8.5%)
Dover 51,000 2,371
Honeywell International 51,500 2,816
Praxair 48,800 2,050
Sherwin-Williams 61,500 1,430
Tyco International 68,400 3,219
Weatherford International* 30,000 1,292
--------
13,178
--------
COMMUNICATION SERVICES (4.4%)
Bellsouth 46,000 2,148
Motorola 21,000 1,969
Worldcom* 72,200 2,717
--------
6,834
--------
CONSUMER CYCLICALS (23.8%)
Bed Bath & Beyond* 44,400 1,634
Brinker International* 68,800 1,948
CDW Computer Centers* 26,700 3,123
Circuit City 60,000 2,989
Costco Wholesale* 70,000 2,236
CVS 36,200 1,575
Ecolab 38,500 1,473
Family Dollar Stores 77,400 1,529
Gannett 30,700 1,988
Home Depot 51,450 2,511
Interpublic Group 54,000 2,319
Limited 140,400 3,387
LIZ Claiborne 66,500 2,614
Lowe's 46,500 2,165
McGraw-Hill 50,000 2,572
Omnicom Group 13,800 1,158
Walt Disney 45,600 1,924
--------
37,145
--------
CONSUMER STAPLES (4.5%)
Anheuser-Busch 28,800 2,232
Paychex 47,250 1,654
Sysco 75,100 3,149
--------
7,035
--------
ENERGY (6.5%)
Exxon Mobil 38,100 3,174
Halliburton 60,800 3,101
Schlumberger 32,000 2,354
Transocean Sedco Forex 31,200 1,535
--------
10,164
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FINANCE (18.3%)
Aflac 56,000 $ 2,894
AMBAC Financial Group 35,000 1,763
American Express 28,800 1,550
Capital One Financial 34,700 1,640
Chase Manhattan 30,700 2,293
Citigroup 46,800 2,910
Freddie Mac 37,000 1,646
Golden West Financial 50,700 2,117
MBNA 75,200 2,096
Metlife* 180,800 3,706
MGIC Investment 38,800 1,923
Providian Financial 44,900 3,993
--------
28,531
--------
HEALTH CARE (7.9%)
Biomet 54,600 1,969
Eli Lilly 11,400 868
Health Management Associates,
Cl A* 112,700 1,331
Schering-Plough 69,800 3,377
Warner-Lambert 39,200 4,787
--------
12,332
--------
SERVICES (1.0%)
Catalina Marketing* 15,500 1,497
--------
TECHNOLOGY (22.6%)
BMC Software* 54,000 2,376
Cisco Systems* 49,200 2,801
Dell Computer* 39,000 1,682
Electronic Data Systems 50,400 3,241
Electronics for Imaging* 44,700 1,646
EMC* 19,000 2,210
Gateway* 63,500 3,143
Intel 37,600 4,688
Jabil Circuit* 87,800 3,205
Microchip Technology* 45,400 2,577
Microsoft* 24,600 1,539
Sun Microsystems* 20,500 1,571
Texas Instruments 47,400 3,425
Zebra Technologies* 21,300 1,022
--------
35,126
--------
Total Common Stocks
(Cost $141,847) 153,459
--------
39
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
CORE EQUITY FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (1.4%)
Morgan Stanley Dean Witter
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$2,108,423, (collateralized by
FNMA obligation: total market
value $2,150,848) $2,108 $ 2,108
--------
Total Repurchase Agreement
(Cost $2,108) 2,108
--------
Total Investments (99.9%)
(Cost $143,955) 155,567
--------
OTHER ASSETS AND LIABILITIES, NET (0.1%) 201
--------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 13,633,156 outstanding shares
of beneficial interest 139,820
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 393,098 outstanding shares
of beneficial interest 4,215
Accumulated net realized gain
on investments 121
Net unrealized appreciation on investments 11,612
--------
Total Net Assets (100.0%) $155,768
========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $11.11
========
Net Asset Value, Offering and Redemption
Price Per Share-- Flex Shares (1) $11.06
========
(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 68.
40
<PAGE>
SCHEDULEOFINVESTMENTS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
E-COMMERCE OPPORTUNITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (96.8%)
CAPITAL GOODS (2.1%)
Applied Materials* 20,000 $ 1,670
Spectrasite Holdings* 61,700 1,045
--------
2,715
--------
COMMUNICATION SERVICES (12.4%)
Akamai Technologies* 26,000 1,736
America Online* 84,200 4,463
American Power Conversion* 60,000 2,126
AT&T - Liberty Media Group* 26,200 1,161
EarthLink* 30,000 444
Gemstar International Group* 11,500 488
ITXC* 32,500 1,089
Net2Phone* 28,200 832
VeriSign* 9,200 1,245
Yahoo* 19,100 2,160
--------
15,744
--------
COMPUTER SOFTWARE (21.5%)
Amdocs* 84,200 5,215
Business Objects* 18,200 1,456
Check Point Software Technologies* 11,600 2,179
Harbinger* 137,900 2,060
ISS Group* 24,600 1,820
Micromuse* 16,000 1,593
Network Appliance* 19,600 1,265
Novell* 42,700 355
Oracle* 54,000 3,881
RealNetworks* 41,800 1,518
Siebel Systems* 17,300 2,024
Tibco Software* 38,600 2,147
Vignette* 48,610 1,340
Visual Networks* 8,000 397
--------
27,250
--------
CONSUMER CYCLICALS (12.1%)
Copart* 79,800 1,416
eBay* 22,000 1,376
First Data 25,000 1,402
Interpublic Group 99,700 4,281
Omnicom Group 17,400 1,461
Time Warner 12,500 987
TMP Worldwide* 61,600 3,403
Wal-Mart Stores 16,300 939
--------
15,265
--------
ENERGY (7.0%)
AES* 28,000 2,443
Dynegy, Cl A 35,000 2,699
Enron 50,300 3,666
--------
8,808
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FINANCE (2.2%)
Knight Trading Group* 63,500 $ 1,845
Morgan Stanley Dean Witter 12,300 885
--------
2,730
--------
SERVICES (6.1%)
BroadVision* 23,000 824
Checkfree Holdings* 33,600 1,405
Devry* 58,600 1,637
Exodus Communications* 25,000 1,764
Infospace* 30,700 1,332
Viant* 30,000 750
--------
7,712
--------
TECHNOLOGY (32.6%)
Applied Micro Circuits* 19,600 1,945
AudioCodes* 37,500 2,740
Ciena* 13,300 1,592
Cisco Systems* 34,800 1,981
Clarent* 15,000 636
E-Tek Dynamics* 5,500 1,011
EMC* 27,600 3,210
Intel 24,700 3,080
Jabil Circuit* 41,000 1,497
JDS Uniphase* 8,800 774
LSI Logic* 55,300 2,914
Micron Technology* 57,600 4,028
National Semiconductor* 31,700 1,704
Oni Systems* 5,000 125
SDL* 4,100 929
Solectron* 101,700 3,362
STMicroelectronics ADR 10,000 599
Sonus Networks* 2,300 168
Sun Microsystems* 34,700 2,659
Texas Instruments 34,400 2,485
Xilinx* 50,900 3,875
--------
41,314
--------
TRANSPORTATION (0.8%)
United Parcel Service 16,700 1,000
--------
Total Common Stocks
(Cost $125,976) 122,538
--------
Total Investments (96.8%)
(Cost $125,976) $122,538
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
41
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
GROWTH AND INCOME FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (98.6%)
BASIC MATERIALS (3.0%)
International Paper 650,000 $ 22,628
Nucor 175,000 6,803
--------
29,431
--------
CAPITAL GOODS (8.1%)
Boeing 500,000 19,531
Deere 450,000 18,703
General Electric 300,570 15,817
Illinois Tool Works 100,000 5,806
Ingersoll-Rand 450,000 20,503
SCI Systems* 960 43
--------
80,403
--------
COMMUNICATION SERVICES (5.0%)
ADC Telecommunications* 950 64
AT&T 400,000 13,875
AT&T - Liberty Media Group* 430 19
GTE 200,000 12,650
SBC Communications 225,000 9,830
Worldcom* 350,000 13,169
--------
49,607
--------
CONSUMER CYCLICALS (7.9%)
Albertson's 87,400 3,201
Gannett 75,000 4,856
Lowe's 80,000 3,725
Office Depot* 1,800,000 12,712
Sears Roebuck 250,000 9,234
Target 275,000 17,239
Time Warner 220 17
Wal-Mart Stores 440 25
Walt Disney 650,000 27,422
Viacom, Cl B* 477 30
--------
78,461
--------
CONSUMER STAPLES (11.7%)
Coca-Cola 350,000 18,681
Hershey Foods 325,000 16,859
Kellogg 450,000 13,669
Philip Morris 600,000 15,675
Procter & Gamble 330 22
Quaker Oats 400,000 29,425
Sara Lee 1,200,000 21,600
Sysco 700 29
--------
115,960
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ENERGY (10.2%)
AES* 400 $ 35
Baker Hughes 1,100 40
Duke Energy 450,000 26,213
Exxon Mobil 325,000 27,077
Patterson Energy* 6,000 145
Royal Dutch Petroleum ADR 240,000 14,985
Schlumberger 200,000 14,712
Texaco 300,000 17,231
Williams 840 35
--------
100,473
--------
FINANCE (17.5%)
American International Group 180,317 20,297
Bank of America 290,130 16,120
Berkshire Hathaway* 12,000 22,632
Chubb 910 64
Citigroup 225,440 14,020
Fannie Mae 400,000 24,050
Fleet Boston Financial 500,000 18,906
KeyCorp 700,000 14,700
Morgan Stanley Dean Witter 125,000 8,992
PFF Bancorp 1,700 23
Safeco 1,790 44
St. Paul 1,960 73
Washington Mutual 400,000 11,500
Wells Fargo 475,470 21,515
--------
172,936
--------
HEALTH CARE (10.8%)
Allergan 470 32
Amgen* 265,000 16,861
HCA 500,000 13,500
Johnson & Johnson 225,000 20,137
Jones Pharma 1,500 55
Merck 265,000 19,776
Priority Healthcare* 1,000 51
Schering-Plough 300,000 14,512
Watson Pharmaceutical* 500,000 22,063
--------
106,987
--------
TECHNOLOGY (24.0%)
3Com* 500,000 20,906
Adaptec* 1,000,000 19,688
America Online* 225,000 11,925
BMC Software* 400,000 17,600
Cisco Systems* 250,460 14,261
Compaq Computer 1,200,000 31,500
Computer Sciences* 275,000 26,383
Hewlett-Packard 125,000 15,016
Intel 200,000 24,938
International Business Machines 75,320 8,083
Lucent Technologies 175,000 10,041
Microsoft* 300,000 18,769
Southern 350,000 9,078
Sun Microsystems* 125,000 9,578
Titan* 3,800 136
--------
237,902
--------
42
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
TRANSPORTATION (0.4%)
UAL 75,000 $ 3,863
--------
Total Common Stocks
(Cost $796,185) 976,023
--------
CASH EQUIVALENT (0.9%)
SEI Daily Income Trust Prime
Obligation Fund 9,499,988 9,500
--------
Total Cash Equivalent
(Cost $9,500) 9,500
--------
Total Investments (99.5%)
(Cost $805,685) 985,523
--------
OTHER ASSETS AND LIABILITIES, NET (0.5%) 4,714
--------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 57,007,793 outstanding shares
of beneficial interest 688,038
Fund shares of the Investor Shares (unlimited
authorization -- no par value)
based on 2,726,169 outstanding shares
of beneficial interest 32,136
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 4,031,949 outstanding shares
of beneficial interest 62,396
Undistributed net investment income 1,444
Accumulated net realized gain
on investments 26,385
Net unrealized appreciation on investments 179,838
--------
Total Net Assets (100.0%) $990,237
========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $15.53
========
Net Asset Value, Offering and Redemption
Price Per Share-- Investor Shares $15.65
========
Maximum Offering Price Per Share--
Investor Shares ($15.65 / 96.25%) $16.26
========
Net Asset Value, Offering and Redemption
Price Per Share-- Flex Shares (1) $15.49
========
(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 68.
43
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS (93.7%)
AUSTRALIA (2.1%)
National Australia Bank 372,481 $ 5,570
Pasminco* 2,208,400 1,152
--------
6,722
--------
BELGIUM (0.0%)
Dexia VVPR Strips* 54,714 1
--------
DENMARK (1.1%)
Danisco 97,200 3,528
--------
FRANCE (10.6%)
Coflexip Stena Offshore 53,400 6,276
Elf Aquitaine 12 2
ISIS 33,000 2,097
Lafarge 80,700 6,278
Suez Lyonnaise des Eaux 12,000 2,025
Technip 61,610 6,456
Total Fina Elf 56,344 8,920
Vivendi 19,700 2,123
--------
34,177
--------
GERMANY (4.3%)
BASF 46,500 1,892
Bayer 51,000 1,977
Bayerische Vereinsbank 31,300 2,045
MG Technologies 381,700 5,671
Siemens 13,800 2,054
--------
13,639
--------
HONG KONG (0.6%)
Li & Fung 470,000 1,948
--------
IRELAND (0.0%)
Bank of Ireland 17,306 102
--------
ISRAEL (0.8%)
ECI Telecommunications ADR 98,380 2,669
--------
ITALY (5.6%)
Banca Intesa* 689,385 2,733
ENI 1,203,500 6,520
Parmalat Finanziaria 2,640,500 3,302
Saipem 1,050,400 5,277
--------
17,832
--------
JAPAN (23.5%)
Canon 48,000 2,209
Daiwa House Industry 270,000 2,002
Daiwa Securities 170,000 2,067
Fuji Heavy Industry 1,256,000 9,324
Hirose Electric 12,600 1,764
Hitachi 194,000 2,402
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
JAPAN--CONTINUED
Japan Tobacco 456 $ 3,491
Kao 129,000 3,915
Kirin Brewery 237,400 2,864
Kyocera 13,400 2,223
Matsushita Electric 304,000 7,180
Minebea 158,000 1,866
Murata Manufacturing 12,000 2,071
Olympus Optical 200,000 3,434
Onward Kashiyama 172,000 2,298
Promise 24,200 2,032
Sharp 294,000 5,293
Sumitomo Heavy Industries 1,221,000 3,161
Tokio Marine & Fire Insurance 296,000 3,228
Toshiba 428,000 4,131
Yamada Denki 42,000 3,352
Yasuda Fire & Marine Insurance 543,000 2,797
Yokowo 83,000 2,326
--------
75,430
--------
MEXICO (1.3%)
Cemex ADR* 82,200 1,742
Fomento ADR 49,400 1,880
Kimberly, Ser A 223,800 692
--------
4,314
--------
NETHERLANDS (5.9%)
Fortis 170,000 4,493
IHC Caland 116,712 5,289
Randstad Holdings 58,000 2,365
Unique International 260,565 6,680
--------
18,827
--------
NEW ZEALAND (1.0%)
Fletcher Challenge Building 3,228,459 3,194
--------
NORWAY (7.2%)
Kvaerner* 169,700 1,972
Petroleum Geo Services* 568,490 10,231
Petroleum Geo Services ADR* 564,400 10,759
--------
22,962
--------
SOUTH AFRICA (1.3%)
Gold Fields 442,000 1,602
Gold Fields ADR 221,000 870
Harmony Gold Mining 133,000 650
Harmony Gold Mining ADR 184,100 903
--------
4,025
--------
SOUTH KOREA (1.1%)
Hite Brewery 82,200 2,657
Pohang Iron & Steel ADR 45,000 922
--------
3,579
--------
44
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
SPAIN (5.2%)
Altadis 1,130,500 $ 16,657
--------
SWEDEN (1.9%)
Sandvik 224,300 4,932
Swedish Match 358,200 1,118
--------
6,050
--------
UNITED KINGDOM (20.2%)
Allied Zurich 858,950 9,667
Diageo 1,713,405 14,705
Hanson 785,800 5,594
IMI 197,100 807
Imperial Tobacco Group 1,220,100 10,755
Prudential 167,000 2,534
Reckitt Benckiser 678,200 7,459
Rolls-Royce 1,554,369 5,737
Stagecoach Holdings 3,733,215 3,361
Unilever 619,100 4,099
--------
64,718
--------
Total Foreign Common Stocks
(Cost $294,340) 300,374
--------
FOREIGN COUPON (0.1%)
NETHERLANDS (0.1%)
Unique International 328,356 203
--------
Total Foreign Coupon
(Cost $0) 203
--------
FOREIGN RIGHTS (0.0%)
ITALY (0.0%)
Banca Intesa* 20 --
--------
Total Foreign Rights
(Cost $0) --
--------
FOREIGN WARRANT (0.0%)
FRANCE (0.0%)
Lafarge, Expires 03/20/01 18,732 67
--------
Total Foreign Warrant
(Cost $0) 67
--------
Total Investments (93.8%)
(Cost $294,340) $300,644
========
At May 31, 2000, sector diversification of the Portfolio was as follows:
% OF VALUE
SECTOR DIVERSIFICATION NET ASSETS (000)
---------------------- ---------- -------
FOREIGN COMMON STOCK
Food, Beverage and Tobacco 20.4% $65,200
Oil & Gas 15.7 50,083
Construction Material 7.9 25,236
Electronics 6.9 22,077
Insurance 5.7 18,224
Services 4.5 14,334
Consumer Products 4.1 13,102
Diversified Operations 3.9 12,536
Banking 3.3 10,451
Automotive 2.9 9,324
Financial Services 2.7 8,592
Machinery 2.5 8,093
Audio/Video 2.2 7,180
Metals 1.9 6,100
Aerospace 1.8 5,737
Cosmetics & Toiletries 1.2 3,915
Chemicals 1.2 3,868
Transportation 1.0 3,361
Retail 1.0 3,352
Telecommunications 0.8 2,669
Manufacturing 0.7 2,298
Real Estate 0.6 2,002
Distribution 0.6 1,948
Paper Products 0.2 692
---- ------
TOTAL FOREIGN
COMMON STOCK 93.7 300,374
FOREIGN COUPON 0.1 203
FOREIGN WARRANT -- 67
----- --------
TOTAL INVESTMENTS 93.8% $300,644
===== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
45
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
INTERNATIONAL EQUITY INDEX FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS (98.1%)
AUSTRALIA (1.7%)
Amcor 31,691 $ 92
AMP 36,999 323
Brambles Industries 9,286 255
Broken Hill Proprietary 58,570 598
Coles Myer 51,191 185
Colonial 33,865 183
CSR 63,354 147
Fosters Brewing Group 86,505 211
Lend Lease 23,858 272
National Australia Bank 57,815 865
News Corporation 58,659 666
Pacific Dunlop 78,743 75
PaperlinX* 24,530 43
Rio Tinto 16,506 237
Telstra 272,518 1,062
Westpac Banking 60,264 413
WMC 67,758 279
Woolworths 65,622 218
--------
6,124
--------
AUSTRIA (1.1%)
Austria Tabakwerke 7,130 244
Bank Austria 22,627 1,079
Flughafen Wien 6,206 209
Generali Holding Vienna 2,034 315
Mayr-Melnhof Karton 2,566 123
Oest Elektrizatswirts, Cl A 7,144 743
OMV 5,889 508
VA Technologie 3,630 200
Wienerberger Baustoffindustrie 16,020 365
--------
3,786
--------
BELGIUM (1.0%)
Bekaert 1,481 77
D'ieteren 498 127
Delhaize Freres 2,627 154
Electrabel 2,804 648
Fortis, Cl B 37,053 967
Groupe Bruxelles Lambert 1,253 303
KBC Bancassurance Holding 15,078 649
Solvay, Cl A 5,017 339
UCB 7,754 291
Union Miniere 1,483 53
--------
3,608
--------
DENMARK (1.5%)
D/S 1912, Cl B 77 846
D/S Svendborg, Cl B 47 741
Danisco 5,310 193
Den Danske Bank 3,600 420
Falck 800 122
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
DENMARK--CONTINUED
ISS* 3,200 $ 233
Navision Software* 2,600 97
Nordic Baltic Holding* 62,248 403
Novo-Nordisk, Cl B 5,070 844
Tele Danmark, Cl B 14,416 1,023
Vestas Wind Systems 7,000 258
William Demant Holdings 6,000 169
--------
5,349
--------
FINLAND (1.7%)
Merita* 12,800 69
Metso Oyj 1,600 21
Nokia Oyj 89,400 4,676
Outokumpu, Cl A 4,600 50
Sampo Insurance, Ser A 2,300 97
Sonera Group 12,700 646
Tietoenator Oyj, Cl B 1,800 71
UPM-Kymmene 6,200 158
--------
5,788
--------
FRANCE (12.6%)
Accor 8,004 326
Air Liquide 3,670 518
Alcatel Alsthom 41,000 2,279
Aventis 31,473 2,056
Axa 15,370 2,276
Banque National Paris, Cl A 21,864 1,983
BIC 3,540 158
Bouygues 1,369 852
Canal Plus 5,242 1,002
Cap Gemini 3,763 709
Carrefour 27,996 1,990
Casino Guichard-Perrachon 3,510 314
Cie de Saint Gobain 3,521 493
Dassault Systemes 5,636 431
Eridania Beghin-Say 1,250 115
Essilor International 623 184
France Telecom 41,035 6,019
Groupe Danone* 3,031 713
L'Oreal 2,747 1,901
Lafarge 4,501 350
Lagardere 5,922 416
Louis Vuitton-Moet Hennessy 3,889 1,594
Michelin, Cl B 5,743 191
Pechiney, Ser A 3,748 155
Pernod-Ricard 2,745 145
Peugeot 1,945 401
Pinault-Printemps-Redoute 4,874 1,054
Publicis 512 212
Sadexho Alliance 1,192 193
Sagem 500 590
Sanofi-Synthelabo 28,905 1,267
46
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FRANCE--CONTINUED
Schneider 6,929 $ 464
Sidel 1,108 75
Societe Eurafrance 157 68
Societe Generale 15,162 879
STMicroelectronics 34,404 2,061
Suez Lyonnaise des Eaux 7,750 1,308
Thomson CSF* 6,237 243
Total Fina Elf 30,771 4,871
Total Fina Elf-Strip VVPR 1,314 --
Unibail 1,572 204
Usinor 15,197 184
Valeo 4,043 206
Vivendi 24,348 2,624
--------
44,074
--------
GERMANY (14.1%)
Adidas-Salomon 2,800 168
Allianz 14,380 5,216
BASF 36,800 1,497
Bayer 43,860 1,700
Bayerische Vereinsbank 24,922 1,628
Beiersdorf 5,290 412
Continental 9,150 171
DaimlerChrysler 59,916 3,263
Deutsche Bank 37,270 2,892
Deutsche Telekom 182,050 11,433
Douglas Holding 2,550 77
Dresdner Bank 31,500 1,290
EM.TV & Merchandising 7,000 472
Fresenius Medical 5,200 434
Gehe 4,800 161
Heidelberger Zement 4,074 239
Hochtief 5,110 163
Kamps 5,400 145
Karstadt Quelle 9,300 314
Linde 6,860 283
Lufthansa 22,980 566
Man Muenchen 6,310 221
Merck 10,600 342
Metro 16,301 535
Muenchener Rueckvers,
Registered 10,560 3,118
Preussag 9,760 348
RWE 28,640 1,058
SGL Carbon* 1,150 80
SAP 3,650 1,522
Schering 4,060 612
Siemens 35,590 5,297
ThyssenKrupp 31,160 534
Veba 30,260 1,560
Viag 42,158 867
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
GERMANY--CONTINUED
Volkswagen 18,460 $ 753
WCM Beteiligungs 10,850 306
--------
49,677
--------
HONG KONG (0.9%)
Bank of East Asia 17,400 31
Cable & Wireless HKT 205,200 469
Cathay Pacific Airways 46,000 83
Cheung Kong Holdings 40,000 366
CLP Holdings 52,500 244
Hang Seng Bank 32,200 273
Hong Kong & China Gas 95,700 103
Hutchison Whampoa 69,080 798
Johnson Electric Holdings 16,000 119
New World Development 61,000 61
Sun Hung Kai Properties 36,600 223
Swire Pacific 36,500 210
Television Broadcasts 6,000 39
Wharf Holdings 42,000 75
--------
3,094
--------
IRELAND (0.5%)
Allied Irish Bank 43,700 405
CRH 16,100 281
Eircom 112,600 327
Independent News & Media (GB) 6,500 52
Independent News & Media 26,200 206
Jefferson Smurfit 125,100 246
Ryanair Holdings* 29,300 240
--------
1,757
--------
ITALY (8.6%)
Alitalia 112,439 220
Assicurazioni Generali 95,000 2,876
Autogrill 17,000 178
Banca di Roma* 377,500 410
Banca Intesa* 360,603 1,430
Banca Intesa RNC 51,000 107
Banca Popolare di Milano 18,500 121
Benetton Group 140,000 281
Bulgari 22,000 276
CartiereBurgo 10,500 100
Enel* 535,272 2,398
ENI 592,500 3,210
Fiat 26,400 674
Fiat RNC 6,700 92
Italcementi 23,400 213
Italgas 49,000 202
Magneti Marelli 25,000 128
Mediaset 87,000 1,354
Mediobanca 44,250 375
47
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
INTERNATIONAL EQUITY INDEX FUND--CONTINUED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ITALY--CONTINUED
Mondadori Editore 8,734 $ 202
Olivetti 360,000 1,228
Parmalat Finanziaria 125,000 156
Pirelli 147,000 379
Reno de Medici 9,000 19
Rinascente 17,500 101
Riunione Adriatica di Sicurta 52,362 495
San Paolo-IMI 102,736 1,512
Sirti 38,000 70
Telecom Italia Mobile 488,000 5,109
Telecom Italia Mobile RNC 110,500 468
Telecom Italia 270,500 3,752
Telecom Italia RNC 65,000 405
UniCredito Italiano* 367,000 1,630
--------
30,171
--------
JAPAN (33.3%)
77 Bank 16,000 146
Acom 7,000 514
Advantest 4,800 1,011
Ajinomoto 33,000 399
Amada 16,000 138
Aoyamma Trading 4,100 49
Asahi Bank 135,000 600
Asahi Breweries 24,000 298
Asahi Chemical Industry 73,000 454
Asahi Glass 59,000 547
Asatsu-DK 2,000 65
Autobacs Seven 1,600 46
Bank of Fukuoka 29,000 191
Bank of Tokyo Mitsubishi 223,000 2,794
Bank of Yokohama 50,000 213
Benesse 5,000 331
Bridgestone 42,000 959
Canon 42,000 1,933
Casio Computer 13,000 124
Central Japan Railway 108 601
Chiyoda* 18,000 18
Chugai Pharmaceutical 12,000 205
Chuo Mitsui Trust & Banking 45,000 181
Citizen Watch 17,000 146
Cosmo Oil 61,000 85
Credit Saison 7,800 157
CSK 2,800 86
Dai Nippon Printing 36,000 614
Daicel Chemical Industries 23,000 68
Daiei* 31,000 94
Daiichi Pharmaceutical 14,000 259
Daikin Industries 13,000 259
Daikyo* 4,000 9
Daimaru 18,000 51
Dainippon Ink & Chemicals 42,000 187
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
JAPAN--CONTINUED
Daito Trust Construction 6,400 $ 122
Daiwa Bank 87,000 220
Daiwa House Industry 26,000 193
Daiwa Kosho Lease 28,000 75
Daiwa Securities 64,000 778
Denso 44,000 998
East Japan Railway 191 1,088
Ebara 16,000 165
Eisai 14,000 301
Fanuc 11,500 1,002
Fuji Bank 163,000 1,260
Fuji Machine 2,000 97
Fuji Photo Film 24,000 837
Fujita* 17,000 7
Fujitsu 94,000 2,661
Furukawa Electric 29,000 414
Gunma Bank 26,000 142
Gunze 22,000 66
Hankyu Department Stores 11,000 54
Haseko* 89,000 34
Hirose Electric 1,900 266
Hitachi 160,000 1,981
Hokuriko Bank* 26,000 60
Honda Motor 46,000 1,515
Hoya 6,000 556
Industrial Bank of Japan 125,000 974
Isetan 11,000 108
Ito Yokado 20,000 1,186
Itochu* 65,000 262
Japan Airlines 89,000 268
Japan Energy* 97,000 90
Japan Steel Works* 34,000 32
Japan Tobacco 103 789
Joyo Bank 41,300 161
Jusco 16,000 274
Kadokawa Shoten Publishing 500 50
Kajima 59,000 147
Kaken Pharmaceutical 7,000 43
Kamigumi 23,000 110
Kanebo 34,000 72
Kaneka 17,000 175
Kansai Electric Power 50,700 873
Kao 30,000 910
Kawasaki Heavy Industries 75,000 98
Kawasaki Kisen Kaisha 27,000 42
Kawasaki Steel 169,000 256
Kinki Nippon Railway 82,000 327
Kirin Brewery 51,000 615
Komatsu 48,000 295
Konami 7,200 381
Koyo Seiko 8,000 56
Kubota 68,000 240
48
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
JAPAN--CONTINUED
Kumagai Gumi 57,000 $ 26
Kuraray 22,000 229
Kurita Water Industries 7,000 147
Kyocera 9,100 1,510
Kyowa Hakko Kogyo 21,000 191
Maeda Road Contruction 18,000 72
Marubeni 57,000 151
Marui 18,000 330
Matsushita Electric 98,000 2,314
Meiji Seika 23,000 149
Minebea 19,000 224
Mitsubishi 77,000 639
Mitsubishi Chemical 106,000 414
Mitsubishi Electric 103,000 1,011
Mitsubishi Estate 68,000 800
Mitsubishi Heavy Industries 172,000 597
Mitsubishi Materials 56,000 186
Mitsubishi Trust & Banking 60,000 484
Mitsui 75,000 527
Mitsui Fudosan 41,000 423
Mitsui Marine & Fire Insurance 37,000 196
Mitsui Mining & Smelting 26,000 172
Mitsui-Soko 15,000 31
Mitsukoshi 22,000 82
Murata Manufacturing 11,000 1,899
Mycal 16,000 48
Namco 2,300 58
NEC 77,000 1,951
NGK Insulators 19,000 197
NGK Spark Plug 13,000 152
Nidec 4,300 330
Nikon 18,000 496
Nintendo 6,700 995
Nippon Express 57,000 317
Nippon Mitsubishi Oil 71,000 291
Nippon Paper Industries 50,000 329
Nippon Sharyo 7,000 13
Nippon Sheet Glass 21,000 190
Nippon Shinpan 17,000 35
Nippon Steel 378,000 828
Nippon Suisan Kaisha 24,000 39
Nippon Telegraph & Telephone 607 7,210
Nippon Yusen 58,000 250
Nishimatsu Construction 25,000 90
Nissan Motor 191,000 1,001
Nissin Food Products 6,300 158
Nitto Denko 8,000 338
Nomura Securities 95,000 2,178
Noritake 18,000 82
NSK 27,000 208
NTN 29,000 95
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
JAPAN--CONTINUED
Obayashi 42,000 $ 160
Oji Paper 55,000 354
Okumura 21,000 63
Olympus Optical 13,000 223
Omron 13,000 335
Orient 24,000 109
Oriental Land 4,800 478
Orix 3,620 536
Osaka Gas 130,000 331
Oyo 1,700 19
Penta-Ocean Construction 12,000 14
Pioneer Electronics 9,000 275
Promise 5,800 487
Renown 8,000 9
Rohm 5,500 1,715
Sakura Bank 193,000 1,427
Sanden 12,000 71
Sankyo 23,000 530
Sanrio 4,000 107
Sanyo Electric 93,000 687
Secom 11,000 745
Sega Enterprises 5,200 78
Seino Transportation 15,000 68
Seiyu 16,000 65
Sekisui Chemical 35,000 120
Sekisui House 35,000 340
Sharp 53,000 954
Shimachu 3,400 57
Shimamura 2,700 282
Shimano 6,700 146
Shimizu 66,000 156
Shin-Etsu Chemical 21,000 1,029
Shionogi 16,000 254
Shiseido 19,000 261
Shizuoka Bank 36,000 340
Skylark 7,000 245
SMC 3,300 578
Snow Brand Milk Products 23,000 115
Softbank 5,800 888
Softbank - New* 10,000 1,499
Sony 42,600 3,854
Sumitomo 52,000 483
Sumitomo Bank 149,000 1,952
Sumitomo Chemical 83,000 401
Sumitomo Electric 44,000 641
Sumitomo Marine & Fire Insurance 35,000 219
Sumitomo Metal 174,000 119
Taisei 79,000 108
Taisho Pharmaceutical 17,000 519
Taiyo Yuden 6,000 455
Takara Shuzo 11,000 245
49
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
INTERNATIONAL EQUITY INDEX FUND--CONTINUED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
JAPAN--CONTINUED
Takashimaya 17,000 $ 153
Takeda Chemical 43,000 2,933
Takefuji 7,100 751
Teijin 53,000 221
Terumo 10,000 319
Toa 10,000 11
Tobu Railway 54,000 144
Toei 10,000 66
Toho 1,000 168
Tohoku Electric Power 32,600 408
Tokai Bank 109,000 531
Tokio Marine & Fire Insurance 87,000 949
Tokyo Broadcasting System 8,000 297
Tokyo Dome 16,000 70
Tokyo Electric Power 62,800 1,568
Tokyo Electron 8,000 1,091
Tokyo Gas 145,000 355
Tokyo Tatemono 7,000 13
Tokyotokeiba 30,000 37
Tokyu 56,000 246
Toppan Printing 35,000 371
Toray 87,000 331
Toshiba 155,000 1,496
Tosho 29,000 144
Tostem 11,000 181
Toto 24,700 166
Toyo Information Systems 2,000 108
Toyo Seikan Kaisha 11,300 200
Toyota Motor 180,000 8,168
Trans Cosmos 1,100 160
Ube Industries 43,000 97
Uni-Charm 3,500 205
UNY 11,000 136
World 3,150 125
Yamaha 12,000 109
Yamaichi Securities 15,000 --
Yamanouchi Pharmaceutical 17,000 775
Yamato Transport 21,000 490
Yokogawa Electric 13,000 109
--------
117,089
--------
NETHERLANDS (2.7%)
ABN Amro Holding 28,288 650
Aegon 24,860 901
Ahold 11,892 338
Akzo Nobel 5,815 223
ASM Lithography Holdings* 7,380 273
Buhrmann 1,884 58
Elsevier 11,463 108
Getronics 6,174 104
Hagemeyer 1,541 37
Heineken 5,659 292
ING Groep 18,120 1,089
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
NETHERLANDS--CONTINUED
Koninklijke KPN 8,825 $ 801
Philips Electronics 25,264 1,133
Royal Dutch Petroleum 39,837 2,466
TNT Post Group 8,445 205
Unilever 10,839 553
Wolters Kluwer 4,951 122
--------
9,353
--------
NEW ZEALAND (0.2%)
Carter Holt Harvey 189,600 153
Telecom of New Zealand 128,900 453
--------
606
--------
NORWAY (0.8%)
Bergesen, Cl A 8,750 183
Christiana Bank 48,300 251
Den Norske Bank 81,300 292
Kvaerner* 7,100 83
Merkantildata* 14,600 94
Norsk Hydro 27,225 1,052
Orkla, Cl A 21,500 357
Petroleum Geo Services* 8,800 158
Schibsted 7,200 141
Tomra Systems 8,200 174
Uni Storebrand 29,287 190
--------
2,975
--------
PORTUGAL (0.7%)
Banco Comercial Portugues 75,035 371
Banco Espirito Santo 7,861 185
BPI-SGPS 37,962 126
Brisa Auto Estradas 19,938 147
Cimpor Cimentos de Portugal 10,652 164
Electricidade de Portugal 35,629 623
Portugal Telecom 61,814 678
Sonae Investimentos 4,376 192
--------
2,486
--------
SINGAPORE (0.5%)
DBS Group Holdings 38,467 384
Overseas - Chinese Banking 36,350 205
Singapore Airlines 49,000 427
Singapore Press Holdings 11,000 166
Singapore Telecommunications 152,000 206
United Overseas Bank 49,000 266
--------
1,654
--------
SPAIN (3.7%)
Acerinox 3,658 125
ACS 4,343 119
Aguas de Barcelona 10,489 143
Altadis 18,619 274
Autopistas CESA 19,441 186
50
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
SPAIN--CONTINUED
Banco Bilbao Vizcaya 146,965 $ 2,066
Banco Santander Central Hispano 221,457 2,182
Endesa 56,206 1,171
Financiera Alba 4,655 117
Fomento de Construcciones y
Contratas 7,248 163
Gas Natural 22,957 408
Grupo Dragados 15,311 114
Iberdrola 45,835 589
Repsol 63,594 1,363
Sol Melia 10,211 123
Telefonica 168,762 3,480
Telepizza* 10,883 63
Union Electrica Fenosa 15,032 315
Zardoya-Otis 14,347 129
--------
13,130
--------
SWEDEN (2.3%)
AstraZeneca 3,817 161
Atlas Copco, Ser A 4,200 94
Electrolux 9,100 155
Ericsson, Cl B 202,000 4,125
ForeningsSparbaken, Cl A 15,100 226
Hennes & Mauritz, Cl B 22,400 569
NetCom* 2,500 178
Nordic Baltic Holding 21,200 141
OM Gruppen 2,400 97
Sandvik 7,600 167
Securitas, Cl B 9,600 225
Skandia Forsakrings 26,700 687
Skandinaviska Enskilda Banken 19,200 211
Skanska, Cl B 4,100 153
Svenska Cellulosa, Cl B 11,900 240
Svenska Handlesbanken, Cl A 18,100 257
Swedish Match 26,700 83
Volvo, Cl B 8,150 195
WM-Data, Cl B 9,500 72
--------
8,036
--------
SWITZERLAND (1.7%)
ABB 3,483 434
Adecco 200 159
Credit Suisse Group 2,830 530
Holderbank Financiere Glarus 190 224
Nestle 472 904
Novartis, Registered 744 1,102
Roche Holdings, Bearer 17 199
Roche Holdings, Genusschein 74 784
Swiss Re 155 299
Swisscom 910 321
UBS, Registered 4,618 626
Zurich Allied 500 247
--------
5,829
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
UNITED KINGDOM (8.5%)
3I Group 16,316 $ 310
Abbey National 15,265 204
Allied Zurich 20,122 226
Amvescap 12,522 165
Arm Holdings* 13,410 119
AstraZeneca Group 27,508 1,163
BAE Systems 72,176 454
Barclays Bank 24,277 633
Bass 23,059 253
BG Group 58,682 353
BOG Group 14,814 209
Boots 17,492 146
BP Amoco 382,338 3,491
British American Tobacco 37,531 220
British Sky Broadcasting 32,629 600
British Telecommunications 101,301 1,473
Cadbury Schweppes 44,428 297
Centrica 77,479 281
CGU 22,979 350
Compass Group 9,507 107
Diageo 62,732 538
Dixons Group* 28,205 134
EMI Group 25,845 221
GKN 25,291 350
GKN, Cl B* 25,291 4
Glaxo Wellcome 57,540 1,632
Granada Group 40,310 359
Great Universal Stores 22,837 142
Halifax 36,788 363
Hanson 26,996 192
Hays 27,333 154
HSBC Holdings 141,774 1,570
Imperial Chemical 21,428 172
Invensys 118,700 410
J Sainsbury 37,069 170
Jefferson Smurfit Group 45,700 91
Kingfisher 30,179 280
Legal & General Group 79,697 201
Lloyds TSB Group 90,236 980
Logica 6,763 182
Marconi 45,098 545
Marks & Spencer 73,299 274
Misys 11,686 101
National Grid Holdings 14,929 115
National Power 35,430 195
Ocean Group 8,806 161
Pearson 10,281 311
Prudential 24,728 375
Psion 3,830 31
Reed International 19,002 126
Rentokil Group 51,181 115
Reuters Group 23,047 344
51
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
INTERNATIONAL EQUITY INDEX FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
UNITED KINGDOM--CONTINUED
Rio Tinto 26,555 $ 393
Royal Bank of Scotland Group 43,452 717
Sage Group 21,355 208
Scottish Power 27,661 220
SEMA Group 6,173 86
Smithkline Beecham 90,671 1,162
Tesco 109,977 333
Unilever 54,746 362
Vodafone AirTouch Group 977,249 4,472
WPP Group 13,385 163
--------
30,008
--------
Total Foreign Common Stocks
(Cost $329,906) 344,594
--------
FOREIGN PREFERRED STOCKS (0.7%)
AUSTRALIA (0.2%)
News Corporation* 62,656 604
--------
GERMANY (0.5%)
RWE* 5,480 163
SAP* 2,580 1,374
Volkswagen* 6,470 168
--------
1,705
--------
ITALY (0.0%)
Fiat* 7,200 117
--------
Total Foreign Preferred Stocks
(Cost $2,692) 2,426
--------
FOREIGN RIGHTS (0.0%)
ITALY (0.0%)
Banca Intesa* 380,603 7
--------
SWEDEN (0.0%)
Volvo* 815 5
--------
Total Foreign Rights
(Cost $0) 12
--------
CASH EQUIVALENT (0.0%)
HighMark Diversified
Money Market Fund 1,836 2
--------
Total Cash Equivalent
(Cost $2) 2
--------
Total Investments (98.8%)
(Cost $332,600) 347,034
--------
OTHER ASSETS AND LIABILITIES, NET (1.2%) 4,235
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 24,406,806 outstanding shares
of beneficial interest $326,418
Fund shares of the Investor Shares (unlimited
authorization -- no par value)
based on 330,602 outstanding shares
of beneficial interest 2,649
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 425,991 outstanding shares
of beneficial interest 5,655
Undistributed net investment income 171
Accumulated net realized gain
on investments 1,919
Net unrealized appreciation on investments 14,434
Net unrealized appreciation on foreign currency
and translation of other assets and liabilities
in foreign currency investments 23
--------
Total Net Assets (100.0%) $351,269
========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $13.97
========
Net Asset Value, Offering Price and Redemption
Price Per Share-- Investor Shares $13.80
========
Maximum Offering Price Per Share--
Investor Shares ($13.80 / 96.25%) $14.34
========
Net Asset Value, Offering Price and Redemption
Price Per Share-- Flex Shares (1) $13.74
========
(1) THE FLEX SHARES HAVE A CONTINGENT SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
52
<PAGE>
--------------------------------------------------------------------------------
At May 31, 2000, sector diversification of the Portfolio was as follows:
% OF VALUE
SECTOR DIVERSIFICATION NET ASSETS (000)
---------------------- ---------- --------
FOREIGN COMMON STOCK
Banking 12.6% $44,566
Electronics 9.6 33,932
Telecommunications 9.3 33,138
Telephone 8.8 30,903
Automotive 6.2 21,846
Insurance 5.5 19,206
Oil & Gas 5.3 18,565
Pharmaceuticals 5.1 17,931
Food, Beverage, & Tobacco 4.5 15,672
Diversified Operations 4.2 14,775
Financial Services 2.6 9,069
Chemicals 2.3 8,219
Computers 2.3 8,076
Retail 2.1 7,514
Construction Materials 2.0 7,086
Transportation 1.7 6,029
Consumer Products 1.2 4,245
Leisure 1.2 4,169
Services 1.2 4,118
Audio/Video 1.1 3,854
Cosmetics & Toiletries 1.0 3,556
Computer Software 1.0 2,164
Metals 1.0 3,463
Real Estate 0.7 2,532
News Media 0.7 2,300
Manufacturing 0.7 2,291
Paper Products 0.6 2,152
Distribution 0.6 2,120
Machinery 0.5 1,900
Communications 0.5 1,865
Airlines 0.5 1,805
Publishing 0.5 1,778
Television 0.4 1,299
Medical Products 0.3 1,106
Textiles 0.2 781
Aerospace 0.1 454
Agriculture 0.0 115
-------- --------
TOTAL FOREIGN
COMMON STOCK 98.1 344,594
TOTAL FOREIGN
PREFERREED STOCK 0.7 2,426
TOTAL FOREIGN RIGHTS -- 12
CASH EQUIVALENT -- 2
-------- --------
TOTAL INVESTMENTS 98.8 347,034
OTHER ASSETS AND
LIABILITIES, NET 1.2 4,235
-------- --------
NET ASSETS 100.0% $351,269
======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
53
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
LIFE VISION AGGRESSIVE GROWTH FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
EQUITY FUNDS (95.0%)
STI Classic Capital Appreciation
Fund, Trust Shares* 322,878 $ 5,528
STI Classic Growth & Income
Fund, Trust Shares 472,865 7,343
STI Classic Small Cap Growth
Stock Fund, Trust Shares* 131,408 2,405
STI Classic Small Cap Value
Equity Fund, Trust Shares 243,424 2,222
-------
Total Equity Funds
(Cost $15,194) 17,498
-------
MONEY MARKET FUND (5.3%)
STI Classic Prime Quality Money
Market Fund, Trust Shares 973,766 974
-------
Total Money Market Fund
(Cost $974) 974
-------
Total Investments (100.3%)
(Cost $16,168) 18,472
-------
OTHER ASSETS AND LIABILITIES, NET (-0.3%) (60)
-------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 1,586,214 outstanding shares
of beneficial interest 15,911
Undistributed net investment income 4
Accumulated net realized gain
on investments 193
Net unrealized appreciation on investments 2,304
-------
Total Net Assets (100.0%) $18,412
=======
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $11.61
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
54
<PAGE>
--------------------------------------------------------------------------------
LIFE VISION GROWTH AND INCOME FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
EQUITY FUNDS (69.8%)
STI Classic Capital Appreciation
Fund, Trust Shares* 355,369 $ 6,084
STI Classic Growth & Income
Fund, Trust Shares 683,092 10,609
STI Classic Small Cap Growth
Stock Fund, Trust Shares* 133,505 2,443
STI Classic Small Cap Value
Equity Fund, Trust Shares 234,428 2,140
-------
Total Equity Funds
(Cost $19,247) 21,276
-------
FIXED INCOME FUNDS (27.3%)
STI Classic Investment Grade
Bond Fund, Trust Shares 483,313 4,630
STI Classic Short-Term Bond
Fund, Trust Shares 158,979 1,534
STI Classic U.S. Government
Securities Fund, Trust Shares 218,356 2,153
-------
Total Fixed Income Funds
(Cost $8,593) 8,317
-------
MONEY MARKET FUND (3.0%)
STI Classic Prime Quality Money
Market Fund, Trust Shares 908,970 909
-------
Total Money Market Fund
(Cost $909) 909
-------
Total Investments (100.1%)
(Cost $28,749) 30,502
-------
OTHER ASSETS AND LIABILITIES, NET (-0.1%) (29)
-------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 2,902,964 outstanding shares
of beneficial interest 28,888
Undistributed net investment income 88
Accumulated net realized loss
on investments (256)
Net unrealized appreciation on investments 1,753
-------
Total Net Assets (100.0%) $30,473
=======
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $10.50
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
55
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
LIFE VISION MODERATE GROWTH FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
EQUITY FUNDS (60.8%)
STI Classic Capital Appreciation
Fund, Trust Shares* 810,665 $13,879
STI Classic Growth & Income
Fund, Trust Shares 1,291,131 20,051
STI Classic Small Cap Growth
Stock Fund, Trust Shares* 266,480 4,877
STI Classic Small Cap Value
Equity Fund, Trust Shares 381,983 3,487
-------
Total Equity Funds
(Cost $35,909) 42,294
-------
FIXED INCOME FUNDS (36.3%)
STI Classic Investment Grade
Bond Fund, Trust Shares 1,470,375 14,086
STI Classic Short-Term Bond
Fund, Trust Shares 435,287 4,200
STI Classic U.S. Government
Securities Fund, Trust Shares 711,754 7,018
-------
Total Fixed Income Funds
(Cost $26,381) 25,304
-------
MONEY MARKET FUND (3.0%)
STI Classic Prime Quality Money
Market Fund, Trust Shares 2,074,655 2,075
-------
Total Money Market Fund
(Cost $2,075) 2,075
-------
Total Investments (100.1%)
(Cost $64,365) 69,673
-------
OTHER ASSETS AND LIABILITIES, NET (-0.1%) (51)
-------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 6,562,141 outstanding shares
of beneficial interest 63,958
Undistributed net investment income 339
Accumulated net realized gain
on investments 17
Net unrealized appreciation on investments 5,308
-------
Total Net Assets (100.0%) $69,622
=======
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $10.61
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
56
<PAGE>
--------------------------------------------------------------------------------
MID-CAP EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (82.9%)
BASIC MATERIALS (4.8%)
Georgia-Pacific Group 62,700 $ 2,053
Potash of Saskatchewan 73,100 4,231
Stillwater Mining* 176,500 4,953
--------
11,237
--------
CAPITAL GOODS (5.4%)
ACT Manufacturing* 91,300 2,876
Antec* 94,100 4,729
Optimal Robotics* 33,650 1,131
Seachange International* 107,700 2,760
Weatherford International* 30,600 1,318
--------
12,814
--------
COMMUNICATION SERVICES (4.6%)
Commscope* 29,500 1,139
Harris 50,700 1,550
Western Wireless* 169,700 8,114
WinStar Communications* 669 19
--------
10,822
--------
CONSUMER CYCLICALS (8.8%)
BJ's Wholesale Club* 66,700 2,068
Men's Wearhouse* 492,450 9,818
Outback Steakhouse* 104,700 3,174
Polaroid 236,000 4,528
SPX* 12,200 1,285
--------
20,873
--------
CONSUMER STAPLES (6.7%)
Bowater 62,000 3,205
Imax* 410,100 8,920
Nordstrom 90,600 2,276
Universal Foods 79,300 1,368
--------
15,769
--------
ENERGY (17.2%)
Apache 86,300 5,254
Barrett Resources* 118,100 4,672
BJ Services* 17,900 1,282
Bouygues Offshore 81,400 1,913
Burlington Resources 58,500 2,676
Coflexip Stena Offshore 10,300 600
Cooper Cameron* 21,400 1,493
Ensco International 50,900 1,778
Equitable Resources 63,100 3,139
Global Marine* 64,000 1,812
Grant Prideco* 30,600 711
Nabors Industries* 38,600 1,660
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ENERGY--CONTINUED
Noble Drilling* 20,300 $ 881
Precision Drilling* 215,400 8,293
Smith International* 15,900 1,257
Stone Energy* 49,900 3,072
--------
40,493
--------
FINANCE (7.4%)
Bank United 74,000 2,655
Colonial Bancgroup 97,900 936
Hibernia 233,200 3,002
North Fork Bancorporation 177,500 2,940
Nova* 144,030 4,231
SouthTrust 131,700 3,564
--------
17,328
--------
HEALTH CARE (10.5%)
Forest Laboratories, Cl A* 31,400 2,779
Health Management Associates,
Cl A* 371,800 4,392
Jones Pharma 196,300 7,153
Mylan Laboratories 192,200 5,153
Renal Care Group* 219,100 5,231
--------
24,708
--------
TECHNOLOGY (14.5%)
Concurrent Computer* 338,900 2,881
Cypress Semiconductor* 57,200 2,406
Flextronics International* 114,400 6,228
Integrated Device Technology* 46,700 2,215
Jabil Circuit* 30,800 1,124
Sawtek* 109,300 7,029
Scientific-Atlanta 38,900 2,193
Symbol Technologies 76,950 3,391
Vitesse Semiconductor* 18,500 937
Zoran* 147,500 5,789
--------
34,193
--------
TRANSPORTATION (3.0%)
CNF Transportation 267,800 7,046
--------
Total Common Stocks
(Cost $163,937) 195,283
--------
PREFERRED STOCK (0.7%)
WinStar Communications,
CV to 24.2072 Shares 18,000 1,597
--------
Total Preferred Stock
(Cost $1,751) 1,597
--------
57
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
MID-CAP EQUITY FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
CONVERTIBLE BONDS (7.6%)
Affymetrix,
CV to 3.1153 Shares,
Callable 02/20/2003 @ 100
4.750%, 02/15/07 $ 1,790 $ 1,222
American Tower,
CV to 19.4175 Shares,
Callable 02/15/2003 @ 102.5
5.000%, 02/15/10 900 836
Chiron,
CV to 34.5900 Shares,
Callable 08/04/2000 @ 97.48 (B)
1.900%, 11/17/00 815 1,123
Human Genome Sciences,
CV to 8.8888 Shares,
Callable 02/06/2003 @ 100.5
5.000%, 02/01/07 1,415 1,364
Human Genome Sciences,
CV to 4.5662 Shares,
Callable 03/21/2003 @ 101.88
3.750%, 03/15/07 2,220 1,404
Millennium Pharmaceuticals,
CV to 11.8848 Shares,
Callable 01/15/2003 @ 103.14
5.500%, 01/15/07 1,240 1,435
Sanmina,
CV to 22.5561 Shares,
Callable 05/06/2002 @ 101.7
4.250%, 05/01/04 1,750 2,723
Sanmina,
CV to 22.5561 Shares,
Callable 05/06/2002 @ 101.8 (B)
4.250%, 05/01/04 1,825 2,840
Sepracor,
CV to 21.1110 Shares,
Callable 02/18/2001 @ 103.57
6.250%, 02/15/05 395 1,622
Sepracor,
CV to 10.8249 Shares
5.000%, 02/15/07 2,675 3,237
--------
Total Convertible Bonds
(Cost $15,833) 17,806
--------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (11.5%)
Deutsche Bank
6.440%, dated 05/31/00, matures
06/01/00, repurchase price
$27,218,299 (collateralized by
U.S. Treasury Note: total market
value $27,758,590) (D) $27,213 $ 27,213
--------
Total Repurchase Agreement
(Cost $27,213) 27,213
--------
Total Investments (102.7%)
(Cost $208,734) 241,899
--------
OTHER ASSETS AND LIABILITIES, NET (-2.7%) (6,253)
--------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 14,651,852 outstanding shares
of beneficial interest 144,841
Fund shares of the Investor Shares (unlimited
authorization -- no par value)
based on 1,050,102 outstanding shares
of beneficial interest 10,632
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 1,093,101 outstanding shares
of beneficial interest 14,014
Accumulated net realized gain
on investments 32,994
Net unrealized appreciation on investments 33,165
--------
Total Net Assets (100.0%) $235,646
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $14.10
========
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $13.82
========
Maximum Offering Price Per Share--
Investor Shares ($13.82 / 96.25%) $14.36
========
Net Asset Value, Offering and Redemption
Price Per Share -- Flex Shares (1) $13.35
========
(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 68.
58
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP GROWTH STOCK FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (98.6%)
BASIC MATERIALS (3.7%)
Bel Fuse, Cl A* 55,000 $ 983
Bel Fuse, Cl B 40,000 718
Centex Construction Products 29,845 895
Fairfield Communities* 120,000 1,013
Florida Rock Industries 28,000 1,108
Granite Construction 60,000 1,564
Kaufman & Broad Home 100,000 1,731
Maverick Tube* 130,000 4,574
NVR* 20,000 1,100
Simpson Manufacturing* 60,000 2,857
Stillwater Mining* 65,000 1,824
--------
18,367
--------
CAPITAL GOODS (12.7%)
Ade* 13,200 201
A.O. Smith 20,000 420
Astec Industries* 164,360 4,253
Asyst Technologies* 50,000 2,019
Ball 40,000 1,188
Black Box* 19,000 1,491
Copart* 150,000 2,662
Craftmade International 25,000 125
CTS 33,000 1,821
Dycom Industries* 92,000 4,456
Elcor 40,000 762
Electroglas* 50,000 1,325
Gasonics International* 80,000 2,190
Kent Electronics* 100,000 2,775
Kulicke & Soffa Industries* 45,000 2,264
Manitowoc 100,000 3,269
Measurement Specialties* 55,000 1,402
Mercury Computer Systems* 107,500 3,373
Mobile Mini* 90,000 1,901
Mueller Industries* 110,000 3,231
Nanometrics* 39,300 943
National-Oilwell* 120,000 3,120
Orbotech* 30,000 2,535
Photon Dynamics* 45,000 2,714
Stericycle* 95,000 1,924
Telcom Semiconductor* 153,000 3,787
Trimble Navigation* 12,800 566
UNIFAB International* 282,533 2,013
United Stationers* 125,000 4,000
--------
62,730
--------
COMMUNICATION SERVICES (6.9%)
Anaren Microwave* 25,000 2,537
Commscope* 100,000 3,863
Comtech Telecommunications* 45,000 568
Corsair Communications* 105,000 2,376
Ditech Communications* 45,000 3,690
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMUNICATION SERVICES--CONTINUED
Gentner Communications* 170,000 $ 2,125
Gilat Communications* 75,900 1,442
InterVoice-Brite* 90,000 1,282
L-3 Communications* 50,000 2,800
Lightbridge* 120,000 2,602
Mastec* 28,000 1,914
Polycom* 46,500 3,909
Tollgrade Communications* 50,000 3,316
Xeta Technologies* 53,000 1,626
--------
34,050
--------
CONSUMER CYCLICALS (19.9%)
American Management Systems* 50,000 1,872
Barnes & Noble* 140,000 2,651
BJ's Wholesale Club* 92,000 2,852
Brauns Fashions* 155,000 3,468
Brinker International* 50,000 1,416
CEC Entertainment* 101,000 2,323
Chico's FAS* 205,000 3,703
Claire's Stores 90,000 1,822
Concord Camera* 180,000 3,049
Cost Plus* 107,000 3,123
Cutter & Buck* 84,252 853
EMCOR Group* 95,000 2,096
Fossil* 162,000 3,260
Gildan Activewear* 75,000 2,475
HOT Topic* 130,400 3,325
Insituform Technologies* 110,000 3,802
Jack in the Box* 135,630 3,365
Jakks Pacific* 130,000 1,885
K-Swiss 64,740 850
La-Z-Boy 78,200 1,256
Linens 'N Things* 95,000 2,523
Men's Wearhouse* 95,000 1,894
Monaco Coach* 74,293 1,068
Neiman Marcus Group, Cl A* 116,000 3,045
O'Charleys* 112,000 1,561
Pacific Sunwear of California* 70,000 1,124
Petco Animal Supplies* 150,000 2,841
Pulte 50,000 1,109
Quanta Services* 105,000 5,145
Rare Hospitality International* 146,000 3,997
Salton* 135,000 4,278
Sonic* 88,000 2,436
Station Casinos* 170,000 4,611
Steven Madden* 215,100 3,468
Superior Industries International 90,000 2,514
Toll Brothers* 70,000 1,356
Ultimate Electronics* 65,000 1,609
Wabash National 57,200 733
Zale* 95,000 3,610
--------
98,368
--------
59
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
SMALL CAP GROWTH STOCK FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER STAPLES (0.7%)
Canandaigua Brands* 55,000 $ 2,881
Pope & Talbot 24,400 453
--------
3,334
--------
ENERGY (9.5%)
Cal Dive International* 60,000 2,764
Carbo Ceramics 57,000 1,781
Core Laboratories* 147,000 3,822
Eagle Geophysical* 1,285 --
Global Industries* 420,000 7,403
Marine Drilling* 15,000 431
Newfield Exploration* 93,000 3,894
Newport 5,000 853
Newpark Resources* 43,400 363
Patterson Energy* 150,000 3,619
Quicksilver Resources* 40,000 255
Rowan* 116,000 3,603
Shaw Group 145,000 6,326
Stone Energy* 35,000 2,155
Triton Energy* 80,000 2,670
Veritas DGC* 95,000 2,624
Vintage Petroleum 185,000 4,394
--------
46,957
--------
FINANCE (9.9%)
CCB Financial 45,388 2,088
City National 85,000 3,315
Cullen/Frost Bankers 70,237 1,861
Dime Community Bancshares 20,000 326
Doral Financial 250,000 2,781
Gainsco 130,000 683
GBC Bancorp 93,500 2,671
Greater Bay Bancorp 68,000 3,107
In Focus Systems* 150,000 4,191
Kemet* 53,000 3,561
Metris 105,000 3,885
Nova* 90,000 2,644
OceanFirst Financial 87,000 1,474
Radian Group 84,999 4,675
Rainbow Technologies* 80,000 2,550
Rogers* 96,000 2,970
Southwest Securities Group 75,500 2,190
Texas Regional Bancshares 35,000 943
Triad Guaranty* 96,338 1,782
Trustmark 52,760 1,039
--------
48,736
--------
HEALTH CARE (13.2%)
Andrx* 68,000 4,055
Arthrocare* 41,000 3,495
Barr Laboratories* 77,000 4,168
Candela* 142,500 1,442
Cryolife* 210,000 3,609
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
Cytyc* 80,000 $ 4,015
Datascope 40,000 1,505
Elan* 73,150 2,912
Ivax* 140,000 5,268
Jones Pharma 90,000 3,279
Meade Instruments* 55,000 2,740
MedQuist* 105,000 4,344
Mid Atlantic Medical Services* 63,800 789
North American Scientific* 152,500 2,573
Noven Pharmaceuticals* 210,200 3,915
Oxford Health Plans* 120,000 2,550
Pharmacopeia* 99,700 2,168
PolyMedica* 136,600 3,637
Priority Healthcare* 80,000 4,080
Resmed* 85,000 2,040
Twinlab* 37,000 264
Zoll Medical* 50,000 2,500
--------
65,348
--------
SERVICES (3.4%)
F5 Networks* 50,000 1,613
Filenet* 150,000 3,150
Harbinger* 61,417 917
Herley Industries* 65,000 1,044
Informix* 80,000 580
Opus360* 850 4
Orthodontic Centers of America* 49,849 1,143
Pfsweb* 40,000 235
Prepaid Legal Services* 100,000 3,019
Profit Recovery Group
International* 191,000 3,462
Quest Education* 125,000 1,188
SCB Computer Technology* 640,000 680
--------
17,035
--------
TECHNOLOGY (16.2%)
Actel* 87,000 2,534
Advanced Digital Information* 230,000 2,933
Alliance Semiconductor* 185,000 4,590
Alpha Industries* 50,000 2,303
Anixter International* 100,000 2,825
Barra* 72,500 3,195
C-COR.net* 120,400 2,649
Cybex Computer Products* 148,500 4,975
Dallas Semiconductor 60,000 2,400
Insight Enterprises* 91,000 4,129
International Rectifier* 50,000 2,063
Lattice Semiconductor* 35,000 2,076
Micros Systems* 37,730 1,193
Performance Technologies* 141,000 1,428
Pericom Semiconductor* 40,000 1,625
60
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
Plexus* 20,000 $ 1,670
Power-One* 20,000 1,753
Progress Software* 200,800 3,037
Semtech* 40,000 2,230
Sensormatic Electronics* 180,000 2,824
Silicon Valley Bancshares* 80,000 2,625
SonicWall* 37,000 2,229
Sunquest Information Systems* 74,000 539
Sybase* 218,000 4,156
Technitrol 60,000 4,140
Tecnomatix Technologies* 45,000 1,215
Three-Five Systems* 60,000 3,765
Unify* 175,000 2,352
Xircom* 62,000 2,558
Zebra Technologies* 40,000 1,920
Zomax* 136,000 2,423
--------
80,354
--------
TRANSPORTATION (2.5%)
American Freightways* 205,000 3,049
Atlas Air* 67,500 2,185
Forward Air* 120,000 3,825
Frontier Airlines* 90,000 1,187
Skywest 53,000 2,021
--------
12,267
--------
Total Common Stocks
(Cost $394,911) 487,546
--------
RIGHTS (0.0%)
Elan* 190,000 95
--------
Total Rights
(Cost $0) 95
--------
WARRANTS (0.0%)
Per-Se Technologies*,
Expires 07/08/03 3,664 --
--------
Total Warrants
(Cost $0) --
--------
REPURCHASE AGREEMENT (0.2%)
Morgan Stanley Dean Witter
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$1,059,291 (collateralized by
FHLMC obligation: total market
value $1,181,109) (D) $1,059 1,059
--------
Total Repurchase Agreement
(Cost $1,059) 1,059
--------
Total Investments (98.8%)
(Cost $395,970) 488,700
--------
OTHER ASSETS AND LIABILITIES, NET (1.2%) 5,871
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 23,597,985 outstanding shares
of beneficial interest $336,399
Fund shares of the Investor Shares (unlimited
authorization -- no par value)
based on 2,172,221 outstanding shares
of beneficial interest 33,089
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 1,286,349 outstanding shares
of beneficial interest 21,473
Accumulated net realized gain
on investments 10,880
Net unrealized appreciation on investments 92,730
--------
Total Net Assets (100.0%) $494,571
========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $18.30
========
Net Asset Value, Offering and Redemption
Price Per Share-- Investor Shares $18.27
========
Maximum Offering Price Per Share--
Investor Shares ($18.27 / 96.25%) $18.98
========
Net Asset Value, Offering and Redemption
Price Per Share-- Flex Shares (1) $18.00
========
(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 68.
61
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
SMALL CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (99.6%)
BASIC MATERIALS (16.0%)
Carpenter Technology 239,200 $ 4,949
Lilly Industries, Cl A 741,000 10,698
Pennzoil-Quaker State 598,600 6,585
Quixote 295,600 4,212
Texas Industries 251,700 7,221
Wausau-Mosinee Paper 171,500 1,586
--------
35,251
--------
CAPITAL GOODS (19.0%)
ABM Industries 126,300 2,929
American Woodmark 123,400 2,329
A.O. Smith 150,500 3,161
BHA Group Holdings 174,200 1,742
Fedders, Cl A 233,000 1,311
Fedders, Cl B 62,100 377
Gerber Scientific 227,600 2,731
Interface 2,085,400 8,993
Kaman 238,300 2,383
Lennox International 262,789 3,088
Lindberg 247,800 1,921
LSI Industries 229,000 3,893
Milacron 79,200 1,252
Pep Boys 429,800 3,062
Precision Castparts 25,300 1,233
York Group* 370,600 1,297
--------
41,702
--------
CONSUMER CYCLICALS (22.6%)
Bowne 185,600 1,868
Bush Industries 248,400 4,238
CBRL Group 290,300 4,209
Chemed 98,000 2,971
Federal Signal 162,800 3,144
Grey Advertising 7,300 3,435
Harman International Industries 214,200 12,397
Midas 92,200 2,392
Phillips-Van Heusen 405,100 3,519
Polaroid 560,700 10,758
Stride Rite 145,200 953
--------
49,884
--------
CONSUMER STAPLES (16.2%)
Ingles Markets 249,700 2,450
J.M. Smucker 227,800 3,830
Pittston Brink's Group 819,100 12,440
Standard Register 135,600 1,839
Universal Foods 650,100 11,214
Wolverine World Wide 348,800 3,924
--------
35,697
--------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
ENERGY (1.8%)
Fletcher Challenge Energy ADR 152,900 $ 4,052
--------
FINANCE (9.7%)
Annuity and Life Re 76,900 1,855
Downey Financial 56,200 1,672
Klamath First Bancorp 203,600 2,265
PXRE Group Limited 161,100 2,396
Scottish Annuity & Life Holdings 286,500 2,256
Seacoast Banking of Florida 86,500 2,249
Student Loan 56,900 2,173
Washington Federal 109,300 2,234
West Coast Bancorp 174,730 1,900
Westerfed Financial 164,200 2,319
--------
21,319
--------
HEALTH CARE (5.2%)
Interim Services* 301,120 6,060
Mentor 167,100 4,010
Vital Signs 69,600 1,470
--------
11,540
--------
TECHNOLOGY (0.4%)
Pioneer Standard Electronics 74,400 893
--------
TRANSPORTATION (4.7%)
Knightsbridge Tankers 94,000 1,774
Sea Containers 393,700 8,637
--------
10,411
--------
UTILITIES (4.0%)
Midcoast Energy Resources 151,500 2,424
NUI 153,500 4,298
UGI 99,800 2,208
--------
8,930
--------
Total Common Stocks
(Cost $256,011) 219,679
--------
REPURCHASE AGREEMENT (0.4%)
Morgan Stanley Dean Witter
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$989,921 (collateralized by a
FHLMC obligation: market
value $1,009,682) $ 990 990
--------
Total Repurchase Agreement
(Cost $990) 990
--------
Total Investments (100.0%)
(Cost $257,001) 220,669
--------
OTHER ASSETS AND LIABILITIES, NET (0.0%) 1
--------
62
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 23,220,959 outstanding shares
of beneficial interest $289,178
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 945,026 outstanding shares
of beneficial interest 19,159
Undistributed net investment income 832
Accumulated net realized loss
on investments (52,167)
Net unrealized depreciation on investments (36,332)
--------
Total Net Assets (100.0%) $220,670
========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $9.13
========
Net Asset Value, Offering and Redemption
Price Per Share--Flex Shares (1) $9.10
========
(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 68.
63
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
TAX SENSITIVE GROWTH STOCK FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (97.1%)
BASIC MATERIALS (2.1%)
Alcoa 188,955 $ 11,042
E.I. Du Pont de Nemours 211,782 10,377
----------
21,419
----------
CAPITAL GOODS (11.3%)
Agilent Technologies* 50,000 3,681
Applied Materials* 118,855 9,924
Caterpillar 290,970 11,130
General Electric 604,344 31,804
Honeywell International 233,038 12,744
JDS Uniphase* 150,263 13,223
Minnesota Mining &
Manufacturing 137,566 11,796
Tyco International 125,102 5,888
United Technologies 208,080 12,576
----------
112,766
----------
COMMUNICATION SERVICES (11.5%)
America Online* 190,167 10,079
AT&T 338,896 11,755
AT&T Wireless Group* 19,000 543
Bell Atlantic 83,305 4,405
Bellsouth 102,443 4,783
GTE 150,716 9,533
Lucent Technologies 148,785 8,537
Network Appliance* 214,059 13,820
Nortel Networks 348,410 18,923
Qualcomm* 134,177 8,906
SBC Communications 127,743 5,581
Sprint (FON Group) 143,789 8,699
Yahoo* 84,069 9,505
----------
115,069
----------
CONSUMER CYCLICALS (7.2%)
Dollar General 561,977 9,835
Ford Motor 114,688 5,569
Gap 352,802 12,370
General Motors 71,458 5,047
Home Depot 282,813 13,805
Wal-Mart Stores 355,881 20,508
Walt Disney 115,936 4,891
----------
72,025
----------
CONSUMER STAPLES (6.5%)
Coca-Cola 238,246 12,716
Gillette 163,579 5,459
McDonald's 139,670 5,002
Paychex 416,427 14,575
Pepsico 228,539 9,299
Philip Morris 364,774 9,530
Walgreen 311,339 8,834
----------
65,415
----------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ENERGY (6.3%)
Chevron 95,632 $ 8,840
Exxon Mobil 311,809 25,978
Halliburton 229,120 11,685
Royal Dutch Petroleum ADR 109,975 6,867
Schlumberger 125,814 9,255
----------
62,625
----------
FINANCE (15.5%)
American Express 351,180 18,898
American International Group 171,518 19,306
Bank of America 112,371 6,244
Charles Schwab 665,770 19,141
Chase Manhattan 167,034 12,475
Citigroup 278,210 17,301
Fannie Mae 247,521 14,882
Household International 349,495 16,426
JP Morgan 128,441 16,537
Wells Fargo 308,269 13,949
----------
155,159
----------
HEALTH CARE (12.0%)
Abbott Laboratories 127,294 5,179
American Home Products 127,640 6,877
Bristol-Myers Squibb 92,495 5,093
Eli Lilly 85,028 6,473
Johnson & Johnson 125,866 11,265
Medtronic 221,963 11,459
Merck 274,572 20,490
Pfizer 621,610 27,700
Schering-Plough 121,383 5,872
Warner-Lambert 159,703 19,504
----------
119,912
----------
TECHNOLOGY (24.7%)
Brocade Communications System* 61,826 7,292
Cisco Systems* 486,910 27,723
Computer Associates
International 222,214 11,444
Dell Computer* 428,983 18,500
EMC* 187,360 21,792
Hewlett-Packard 96,174 11,553
Intel 287,967 35,906
International Business Machines 164,885 17,694
Linear Technology 306,527 18,104
Microsoft* 363,773 22,759
Oracle* 234,509 16,855
Sun Microsystems* 278,596 21,347
Texas Instruments 229,618 16,590
----------
247,559
----------
Total Common Stocks
(Cost $853,573) 971,949
----------
64
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (2.7%)
JP Morgan
6.405%, dated 05/31/00, matures
06/01/00, repurchase price
$26,536,754 (collateralized by
various FNMA and FHLMC
obligations: total market
value $27,103,742) (D) $26,532 $ 26,532
----------
Total Repurchase Agreement
(Cost $26,532) 26,532
----------
Total Investments (99.8%)
(Cost $880,105) 998,481
----------
OTHER ASSETS AND LIABILITIES, NET (0.2%) 2,293
----------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 21,456,690 outstanding shares
of beneficial interest 620,079
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 8,900,491 outstanding shares
of beneficial interest 281,995
Accumulated net investment loss (876)
Accumulated net realized loss
on investments (18,800)
Net unrealized appreciation on investments 118,376
----------
Total Net Assets (100.0%) $1,000,774
==========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $33.10
==========
Net Asset Value, Offering and Redemption
Price Per Share-- Flex Shares (1) $32.65
==========
(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 68.
65
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
VALUE INCOME STOCK FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (89.7%)
BASIC MATERIALS (4.3%)
Allegheny Technologies 264,750 $ 5,973
Boise Cascade 413,600 12,046
Fort James 422,300 9,555
Northrop Grumman 65,300 5,004
Rohm & Haas 441,500 15,066
----------
47,644
----------
CAPITAL GOODS (22.7%)
Cooper Industries 591,100 19,802
Emerson Electric 758,300 44,740
Fortune Brands 572,600 15,245
General Dynamics 361,000 21,322
Honeywell International 814,800 44,559
Hubbell, Cl B 601,000 15,851
Ingersoll-Rand 254,900 11,614
International Flavors &
Fragrances 419,400 14,260
Minnesota Mining &
Manufacturing 199,300 17,090
National Service Industries 471,400 10,253
Pall 271,400 5,699
Sonoco Products 609,830 13,454
Stanley Works 283,400 7,616
Thomas & Betts 89,800 2,548
W.W. Grainger 190,300 7,600
----------
251,653
----------
COMMUNICATION SERVICES (10.1%)
Alltel 178,700 11,694
AT&T 297,300 10,313
CenturyTel 212,300 5,732
GTE 480,300 30,379
Harris 286,800 8,765
SBC Communications 729,600 31,874
Sprint (FON Group) 215,500 13,038
----------
111,795
----------
CONSUMER CYCLICALS (8.7%)
Albertson's 631,700 23,136
Dana 259,400 6,696
Ford Motor 217,925 10,583
Genuine Parts 328,700 7,848
H & R Block 287,300 8,870
Masco 1,212,400 23,869
J.C. Penney 252,100 4,569
Rockwell International 271,900 11,148
----------
96,719
----------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER STAPLES (9.1%)
Bestfoods 361,500 $ 23,317
Conagra 637,300 14,698
Flowers Industries 356,900 6,446
H.J. Heinz 280,800 11,004
Kimberly-Clark 459,500 27,800
Pitney Bowes 288,600 12,554
Ryder System 307,100 5,892
----------
101,711
----------
ENERGY (9.8%)
Coastal 267,900 16,442
Conoco 1,412,484 40,256
Exxon Mobil 218,600 18,212
Texaco 391,800 22,504
Unocal 285,000 10,955
----------
108,369
----------
FINANCE (17.5%)
Allstate 753,300 19,962
American Financial Group 139,900 3,908
American General 214,000 13,709
AmSouth Bancorporation 950,468 17,168
Bank of America 323,900 17,997
Chase Manhattan 115,550 8,630
Chubb 195,000 13,650
Fleet Boston Financial 624,147 23,601
KeyCorp 367,700 7,722
Paine Webber Group 180,200 8,098
PNC Financial Services Group 496,200 24,996
Reliastar Financial 162,900 8,389
Summit Bancorp 601,500 17,256
Torchmark 347,200 9,439
----------
194,525
----------
HEALTH CARE (4.2%)
Baxter International 532,700 35,425
Pharmacia 212,594 11,042
----------
46,467
----------
TECHNOLOGY (1.8%)
International Business Machines 104,700 11,236
Scana 352,617 9,124
----------
20,360
----------
UTILITIES (1.5%)
GPU 282,400 7,978
Questar 447,000 9,080
----------
17,058
----------
Total Common Stocks
(Cost $1,006,261) 996,301
----------
66
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (10.1%)
Deutsche Bank
6.440%, dated 05/31/00, matures
06/01/00, repurchase price
$56,987,201 (collateralized by
FHLMC obligation: total market
value $58,116,549) (D) $56,977 $ 56,977
Greenwich Capital
5.670%, dated 05/31/00, matures
06/01/00, repurchase price
$55,504,760 (collateralized by
various GNMA obligations: total
market value $56,606,827) (D) 55,495 55,495
----------
Total Repurchase Agreements
(Cost $112,472) 112,472
----------
Total Investments (99.8%)
(Cost $1,118,733) 1,108,773
----------
OTHER ASSETS AND LIABILITIES, NET (0.2%) 1,765
----------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 88,766,289 outstanding shares
of beneficial interest 1,036,615
Fund shares of the Investor Shares (unlimited
authorization -- no par value)
based on 10,066,266 outstanding shares
of beneficial interest 121,924
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 8,255,429 outstanding shares
of beneficial interest 127,712
Undistributed net investment income 4,316
Accumulated net realized loss
on investments (170,069)
Net unrealized depreciation on investments (9,960)
----------
Total Net Assets (100.0%) $1,110,538
==========
Net Asset Value, Offering and Redemption
Price Per Share-- Trust Shares $10.38
==========
Net Asset Value, Offering and Redemption
Price Per Share-- Investor Shares $10.35
==========
Maximum Offering Price Per Share--
Investor Shares ($10.35 / 96.25%) $10.75
==========
Net Asset Value, Offering and Redemption
Price Per Share-- Flex Shares (1) $10.24
==========
(1) THE FLEX SHARES HAVE A CONTINGENT SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 68.
67
<PAGE>
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS USED IN
THE STATEMENT OF NET ASSETS AND
SCHEDULE OF INVESTMENTS
ADR American Depository Receipt
Cl Class
CV Convertible Security
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
MTN Medium Term Note
RNC Risparmio Non-Convertible
Ser Series
* 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, 2000.
(D) Tri-Party Repurchase Agreement
(GB) Great British Pound
Amounts designated as "--" are either $0 or have been rounded to $0.
68
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIOD ENDED MAY 31, 2000
------------ -------------
E-COMMERCE INTERNATIONAL
OPPORTUNITY EQUITY
FUND FUND
----------- -------------
Assets:
<S> <C> <C>
Investments at Market Value (Cost $125,976 and $294,340, respectively) ................ $122,538 $300,644
Cash .................................................................................. -- 17,640
Foreign Currency (Cost $--and $14,861, respectively) .................................. -- 15,507
Accrued Income ........................................................................ 49 2,354
Receivable for Investment Securities Sold ............................................. 16,334 12,667
Receivable for Foreign Currency Contracts ............................................ -- 2,688
Receivable for Portfolio Shares Purchased ............................................. 364 44
Other Assets .......................................................................... 3 18
-------- --------
Total Assets .......................................................................... 139,288 351,562
-------- --------
Liabilities:
Payable for Investment Securities Purchased ........................................... 12,187 27,447
Payable for Foreign Currency Contracts ................................................ -- 2,688
Payable for Portfolio Shares Redeemed ................................................. 188 87
Unrealized Foreign Exchange Loss ...................................................... -- 223
Accrued Expenses ...................................................................... 186 641
Other Liabilities ..................................................................... 101 23
-------- --------
Total Liabilities ..................................................................... 12,662 31,109
-------- --------
Total Net Assets ...................................................................... $126,626 $320,453
======== ========
Net Assets:
Fund shares of the Trust Shares (unlimited authorization -- no par value)
based on 6,706,451 and 23,811,370, respectively, outstanding
shares of beneficial interest ....................................................... $114,096 $278,001
Fund shares of the Investor Shares (unlimited authorization-- no par value)
based on 838,701 outstanding shares of beneficial interest .......................... -- 9,925
Fund shares of the Flex Shares (unlimited authorization -- no par value) based
on 1,277,762 and 903,013, respectively, outstanding shares of beneficial interest ... 24,769 13,186
Distributions in excess of net investment income ...................................... -- (3,841)
Accumulated net realized gain (loss) on investments ................................... (8,801) 16,424
Net unrealized appreciation (depreciation) on investments ............................. (3,438) 6,304
Net unrealized appreciation on foreign currency and translation of other assets
and liabilities in foreign currency investments ..................................... -- 454
-------- --------
Total Net Assets ...................................................................... $126,626 $320,453
======== ========
Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ................. $15.87 $12.56
======== ========
Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares .............. -- $12.47
======== ========
Maximum Offering Price Per Share -- Investor Shares ($12.47 / 96.25%) .................... -- $12.96
======== ========
Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) .............. $15.81 $12.06
======== ========
<FN>
(1) THE FLEX SHARES HAVE A CONTINGENT SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
Amounts designated as "--" are either $0 or round to $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
69
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIOD ENDED MAY 31, 2000
CAPITAL CORE E-COMMERCE
BALANCED APPRECIATION EQUITY OPPORTUNITY
FUND FUND FUND FUND
---------- ------------ ---------- -----------
06/01/99- 06/01/99- 09/30/99*- 09/30/99*-
05/31/00 05/31/00 05/31/00 05/31/00
---------- ------------ ---------- -----------
Income:
<S> <C> <C> <C> <C>
Interest Income .................................................... $ 9,029 $ 6,998 $ 154 $ 248
Dividend Income .................................................... 1,992 19,043 597 72
Less: Foreign Taxes Withheld ....................................... -- -- -- --
------- -------- ------- --------
Total Income ....................................................... 11,021 26,041 751 320
------- -------- ------- --------
Expenses:
Investment Advisory Fees ........................................... 3,114 23,701 920 538
Less: Investment Advisory Fees Waived .............................. (335) (1,750) (63) (69)
Administrator Fees ................................................. 232 1,458 59 35
Transfer Agent Fees -- Trust Shares ................................ 19 18 11 11
Transfer Agent Fees -- Investor Shares ............................. 21 93 -- --
Transfer Agent Fees -- Flex Shares ................................. 90 203 5 8
Transfer Agent Out of Pocket Expenses .............................. 23 142 6 3
Printing Fees ...................................................... 21 104 7 4
Custody Fees ....................................................... 19 102 3 2
Professional Fees .................................................. 24 132 6 4
Trustee Fees ....................................................... 3 16 1 1
Registration Fees .................................................. 46 135 18 17
Distribution Fees -- Investor Shares ............................... 36 1,984 -- --
Less: Distribution Fees Waived -- Investor Shares .................. (17) (298) -- --
Distribution Fees -- Flex Shares ................................... 765 1,528 11 52
Less: Distribution Fees Waived -- Flex Shares ...................... (38) (45) (3) (1)
Insurance and Other Fees ........................................... 17 78 35 38
------- -------- ------- --------
Total Expenses ..................................................... 4,040 27,601 1,016 643
------- -------- ------- --------
Net Investment Income (Loss) ....................................... 6,981 (1,560) (265) (323)
------- -------- ------- --------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................. -- -- -- --
Net Realized Gain (Loss) on Securities Sold ........................ 5,831 240,075 386 (8,801)
Net Realized Loss on Foreign Currency Transactions ................. -- -- -- --
Net Change in Unrealized Appreciation on Foreign Currency and ......
Translation of Other Assets and Liabilities in Foreign Currency .. -- -- -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments 755 (89,037) 11,612 (3,438)
------- -------- ------- --------
Total Net Realized and Unrealized Gain (Loss) on Investments ....... 6,586 151,038 11,998 (12,239)
------- -------- ------- --------
Net Increase (Decrease) in Net Assets from Operations .............. $13,567 $149,478 $11,733 $(12,562)
======= ======== ======= ========
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INTERNATIONAL INTERNATIONAL LIFE VISION
INCOME EQUITY EQUITY AGGRESSIVE GROWTH
FUND FUND INDEX FUND FUND
--------- ------------- ------------- -----------------
06/01/99- 06/01/99- 06/01/99- 06/01/99-
05/31/00 05/31/00 05/31/00 05/31/00
--------- ------------- ------------- -----------------
Income:
<S> <C> <C> <C> <C>
Interest Income .................................................... $ 1,155 $ 943 $ 396 $ --
Dividend Income .................................................... 13,185 10,625 3,141 133
Less: Foreign Taxes Withheld ....................................... -- (692) (289) --
------- ------- ------ ------
Total Income ....................................................... 14,340 10,876 3,248 133
------- ------- ------ ------
Expenses:
Investment Advisory Fees ........................................... 7,270 6,551 1,549 42
Less: Investment Advisory Fees Waived .............................. (1) (18) (190) (31)
Administrator Fees ................................................. 572 371 122 13
Transfer Agent Fees -- Trust Shares ................................ 10 18 15 16
Transfer Agent Fees -- Investor Shares ............................. 40 20 14 --
Transfer Agent Fees -- Flex Shares ................................. 68 40 14 --
Transfer Agent Out of Pocket Expenses .............................. 53 47 7 1
Printing Fees ...................................................... 43 6 10 1
Custody Fees ....................................................... 33 659 245 1
Professional Fees .................................................. 75 39 15 2
Trustee Fees ....................................................... 2 5 1 --
Registration Fees .................................................. 26 29 51 1
Distribution Fees -- Investor Shares ............................... 100 41 19 --
Less: Distribution Fees Waived -- Investor Shares .................. (50) (13) (12) --
Distribution Fees -- Flex Shares ................................... 497 146 32 --
Less: Distribution Fees Waived -- Flex Shares ...................... (126) (28) (12) --
Insurance and Other Fees ........................................... 81 27 22 --
------- ------- ------ ------
Total Expenses ..................................................... 8,693 7,940 1,902 46
------- ------- ------ ------
Net Investment Income (Loss) ....................................... 5,647 2,936 1,346 87
------- ------- ------ ------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................. -- -- -- 780
Net Realized Gain (Loss) on Securities Sold ........................ 28,329 76,552 2,725 158
Net Realized Loss on Foreign Currency Transactions ................. -- (5,581) (534) --
Net Change in Unrealized Appreciation on Foreign Currency and ......
Translation of Other Assets and Liabilities in Foreign Currency .. -- 565 116 --
Net Change in Unrealized Appreciation (Depreciation) on Investments 1,238 (31,341) 37 461
------- ------- ------ ------
Total Net Realized and Unrealized Gain (Loss) on Investments ....... 29,567 40,195 2,344 1,399
------- ------- ------ ------
Net Increase (Decrease) in Net Assets from Operations .............. $35,214 $43,131 $3,690 $1,486
======= ======= ====== ======
</TABLE>
*Commencement of operations.
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
70 & 71
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIOD ENDED MAY 31, 2000
LIFE VISION LIFE VISION MID-CAP SMALL CAP
GROWTH AND INCOME MODERATE EQUITY GROWTH STOCK
FUND GROWTH FUND FUND FUND
----------------- ------------ ---------- ------------
06/01/99- 06/01/99- 06/01/99- 06/01/99-
05/31/00 05/31/00 05/31/00 05/31/00
----------------- ------------ ---------- ------------
Income:
<S> <C> <C> <C> <C>
Interest Income .................................................... $ -- $-- $ 816 $ 846
Dividend Income .................................................... 472 2,048 2,182 211
------ ------ ------- -------
Total Income ....................................................... 472 2,048 2,998 1,057
------ ------ ------- -------
Investment Advisory Fees ........................................... 58 213 2,954 3,468
Less: Investment Advisory Fees Waived .............................. (40) (102) (191) (84)
Administrator Fees ................................................. 17 56 181 218
Transfer Agent Fees -- Trust Shares ................................ 17 18 17 26
Transfer Agent Fees -- Investor Shares ............................. -- -- 19 13
Transfer Agent Fees -- Flex Shares ................................. -- -- 31 28
Transfer Agent Out of Pocket Expenses .............................. 1 5 3 10
Printing Fees ...................................................... 1 4 11 15
Custody Fees ....................................................... 1 4 6 10
Professional Fees .................................................. 1 7 6 10
Trustee Fees ....................................................... -- -- -- 2
Registration Fees .................................................. 1 2 17 27
Distribution Fees -- Investor Shares ............................... -- -- 72 56
Less: Distribution Fees Waived -- Investor Shares ................... -- -- (19) (24)
Distribution Fees -- Flex Shares ................................... -- -- 150 112
Less: Distribution Fees Waived -- Flex Shares ....................... -- -- (23) (17)
Insurance and Other Fees ........................................... 1 4 3 --
Amortization of Deferred Organization Costs ........................ -- -- -- --
------ ------ ------- -------
Total Expenses ..................................................... 58 211 3,237 3,870
------ ------ ------- -------
Net Investment Income (Loss) ....................................... 414 1,837 (239) (2,813)
------ ------ ------- -------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................. 832 2,705 -- --
Net Realized Gain (Loss) on Securities Sold ........................ (524) (979) 39,061 22,517
Net Change in Unrealized Appreciation (Depreciation) on Investments 408 264 4,067 40,570
------ ------ ------- -------
Total Net Realized and Unrealized Gain (Loss) on Investments ....... 716 1,990 43,128 63,087
------ ------ ------- -------
Net Increase (Decrease) in Net Assets from Operations .............. $1,130 $3,827 $42,889 $60,274
====== ====== ======= =======
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP TAX SENSITIVE VALUE
VALUE EQUITY GROWTH STOCK INCOME STOCK
FUND FUND FUND
------------ ------------- ------------
06/01/99- 06/01/99- 06/01/99-
05/31/00 05/31/00 05/31/00
------------ ------------- ------------
Income:
<S> <C> <C> <C>
Interest Income .................................................... $ 483 $ 1,956 $ 6,430
Dividend Income .................................................... 7,070 6,456 41,252
-------- ------- ---------
Total Income ....................................................... 7,553 8,412 47,682
-------- ------- ---------
Investment Advisory Fees ........................................... 3,439 7,254 13,106
Less: Investment Advisory Fees Waived .............................. (76) (399) --
Administrator Fees ................................................. 212 446 1,154
Transfer Agent Fees -- Trust Shares ................................ 18 16 20
Transfer Agent Fees -- Investor Shares ............................. -- -- 92
Transfer Agent Fees -- Flex Shares ................................. 44 160 177
Transfer Agent Out of Pocket Expenses .............................. 6 43 66
Printing Fees ...................................................... 2 44 3
Custody Fees ....................................................... 4 29 58
Professional Fees .................................................. 10 41 55
Trustee Fees ....................................................... 1 6 --
Registration Fees .................................................. 11 86 149
Distribution Fees -- Investor Shares ............................... -- -- 504
Less: Distribution Fees Waived -- Investor Shares .................. -- -- (2)
Distribution Fees -- Flex Shares ................................... 139 1,867 1,321
Less: Distribution Fees Waived -- Flex Shares ...................... (36) (71) (23)
Insurance and Other Fees ........................................... 11 16 6
Amortization of Deferred Organization Costs ........................ 12 -- --
-------- ------- ---------
Total Expenses ..................................................... 3,797 9,538 16,686
-------- ------- ---------
Net Investment Income (Loss) ....................................... 3,756 (1,126) 30,996
-------- ------- ---------
Net Realized and Unrealized Gain (Loss) on Investments:
Capital Gain Received from Investments ............................. -- -- --
Net Realized Gain (Loss) on Securities Sold ........................ (3,553) (23,743) (147,760)
Net Change in Unrealized Appreciation (Depreciation) on Investments (20,563) 58,045 (137,601)
-------- ------- ---------
Total Net Realized and Unrealized Gain (Loss) on Investments ....... (24,116) 34,302 (285,361)
-------- ------- ---------
Net Increase (Decrease) in Net Assets from Operations .............. $(20,360) $33,176 $(254,365)
======== ======= =========
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
72 & 73
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, AND NOVEMBER 30,
E-COMMERCE
CAPITAL CORE OPPORTUNITY
BALANCED FUND APPRECIATION FUND EQUITY FUND FUND
------------------- --------------------- ----------- -----------
06/01/99 06/01/98- 06/01/99- 06/01/98- 09/30/99*- 09/30/99*-
05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/00
-------- -------- --------- --------- ---------- -----------
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) ....................... $ 6,981 $ 5,369 $ (1,560)$ 3,087 $ (265) $ (323)
Capital Gain Received from Investments ............. -- -- -- -- -- --
Net Realized Gain (Loss) on Investments ............ 5,831 9,690 240,075 166,440 386 (8,801)
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 ................................... 755 11,063 (89,037) 151,103 11,612 (3,438)
-------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets from Operations 13,567 26,122 149,478 320,630 11,733 (12,562)
-------- -------- ---------- ---------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (5,433) (4,438) -- (5,572) -- --
Investor Shares .................................. (248) (200) -- (36) -- --
Flex Shares ...................................... (950) (506) -- -- -- --
Capital Gains:
Trust Shares ..................................... (4,291) (13,593) (88,647) (240,608) -- --
Investor Shares .................................. (233) (771) (16,187) (41,767) -- --
Flex Shares ...................................... (1,444) (2,745) (8,873) (19,498) -- --
-------- -------- ---------- ---------- -------- --------
Total Distributions ................................ (12,599) (22,253) (113,707) (307,481) -- --
-------- -------- ---------- ---------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................... 93,109 146,574 313,347 673,116 159,873 140,662
Shares Issued in Connection with Crestar Merger .. -- -- -- 139,648 -- --
Shares Issued in Connection with Fund
Reorganizations .............................. -- -- -- -- -- --
Reinvestment of Cash Distributions ............... 9,575 17,886 83,171 234,593 -- --
Cost of Shares Repurchased ....................... (131,695) (104,280) (1,096,316) (623,912) (20,053) (26,252)
-------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................... (29,011) 60,180 (699,798) 423,445 139,820 114,410
-------- -------- ---------- ---------- -------- --------
Investor Shares:
Proceeds from Shares Issued ...................... 1,969 7,551 12,858 32,561 -- --
Shares Issued in Connection with Crestar Merger .. -- -- -- 12,499 -- --
Shares Issued in Connection with ESC Merger ...... -- -- -- -- -- --
Reinvestment of Cash Distributions ............... 477 966 15,949 41,544 -- --
Cost of Shares Repurchased ....................... (7,771) (2,023) (93,208) (49,083) -- --
-------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................... (5,325) 6,494 (64,401) 37,521 -- --
-------- -------- ---------- ---------- -------- --------
Flex Shares:
Proceeds from Shares Issued ...................... 26,174 54,572 29,168 68,098 4,336 25,730
Shares Issued in Connection with Crestar Merger .. -- -- -- -- 7,867 --
Shares Issued in Connection with ESC Merger ..... -- -- -- -- -- --
Reinvestment of Cash Distributions .............. 2,328 3,206 8,732 19,257 -- --
Cost of Shares Repurchased ...................... (37,791) (12,484) (73,027) (39,576) (121) (952)
-------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets From
Flex Share Transactions ......................... (9,289) 45,294 (35,127) 55,646 4,215 24,778
-------- -------- ---------- ---------- -------- --------
Increase (Decrease) in Net Assets From Share
Transactions .................................. (43,625) 111,968 (799,326) 516,612 144,035 139,188
-------- -------- ---------- ---------- -------- --------
Total Increase (Decrease) in Net Assets ....... (42,657) 115,837 (763,555) 529,761 155,768 126,626
-------- -------- ---------- ---------- -------- --------
Net Assets:
Beginning of Period ............................... 340,240 224,403 2,440,062 1,910,301 -- --
-------- -------- ---------- ---------- -------- --------
End of Period ...................................... $297,583 $340,240 $1,676,507 $2,440,062 $155,768 $126,626
======== ======== ========== ========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
GROWTH AND EQUITY EQUITY
INCOME FUND FUND INDEX FUND
----------------------------- ------------------- ------------------
06/01/99- 12/01/98- 12/01/97- 06/01/99- 06/01/98- 06/01/99- 06/01/98-
05/31/00 05/31/99 11/30/98 05/31/00 05/31/99 05/31/00 05/31/99
--------- --------- --------- --------- --------- --------- ---------
Operations:
<S> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) ....................... $ 5,647 $ 1,547 $ 3,859 $ 2,936 $ 3,923 $ 1,346 $ 392
Capital Gain Received from Investments ............. -- -- -- -- -- -- --
Net Realized Gain (Loss) on Investments ............ 28,329 48,404 42,161 76,552 21,269 2,725 7,583
Net Realized Loss on Foreign Currency Transactions . -- -- -- (5,581) (811) (534) (40)
Net Change in Unrealized Appreciation (Depreciation)
on Foreign Currency and Translation of Other Assets
and Liabilities in Foreign Currency .............. -- -- -- 565 (10) 116 (88)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................... 1,238 39,898 33,416 (31,341) (78,440) 37 (3,971)
-------- -------- -------- -------- -------- -------- -------
Increase (Decrease) in Net Assets from Operations 35,214 89,849 79,436 43,131 (54,069) 3,690 3,876
-------- -------- -------- -------- -------- -------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (4,628) (935) (3,768) (2,937) (2,385) (276) (1,136)
Investor Shares .................................. (188) (66) (212) (22) (6) -- (83)
Flex Shares ...................................... -- (7) -- -- -- -- (4)
Capital Gains:
Trust Shares ..................................... (44,093) (38,443) (110,281) (70,119) (33,895) (863) (8,431)
Investor Shares .................................. (2,546) (2,259) (5,275) (1,670) (965) (41) (877)
Flex Shares ...................................... (2,921) (1,704) (2,562) (2,014) (1,189) (21) (172)
-------- -------- -------- -------- -------- -------- -------
Total Distributions ................................ (54,376) (43,414) (122,098) (76,762) (38,440) (1,201) (10,703)
-------- -------- -------- -------- -------- -------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................... 367,032 77,854 92,390 66,686 172,988 297,168 34,363
Shares Issued in Connection with Crestar Merger .. -- -- -- -- -- -- --
Shares Issued in Connection with Fund
Reorganizations .............................. -- -- -- 21,915 -- -- --
Reinvestment of Cash Distributions ............... 34,372 11,972 88,294 66,001 33,324 1,011 8,985
Cost of Shares Repurchased ....................... (134,326) (74,302) (153,783) (396,524) (175,047) (33,456) (18,882)
-------- -------- -------- -------- -------- ------- -------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................... 267,078 15,524 26,901 (241,922) 31,265 264,723 24,466
-------- -------- -------- -------- -------- -------- -------
Investor Shares:
Proceeds from Shares Issued ...................... 17,046 2,099 11,222 1,176 2,728 2,934 1,083
Shares Issued in Connection with Crestar Merger .. -- -- -- -- -- -- --
Shares Issued in Connection with ESC Merger ...... 7,989 -- -- 1,242 -- -- --
Reinvestment of Cash Distributions ............... 2,496 2,157 5,277 1,683 965 40 959
Cost of Shares Repurchased ....................... (20,339) (4,209) (8,617) (7,206) (4,566) (4,152) (3,668)
-------- -------- -------- -------- -------- -------- -------
Increase (Decrease) in Net Assets From Investor
Share Transactions ............................... 7,192 47 7,882 (3,105) (873) (1,178) (1,626)
-------- -------- -------- -------- -------- -------- -------
Flex Shares:
Proceeds from Shares Issued ...................... 37,577 8,350 12,797 2,028 6,324 5,107 980
Shares Issued in Connection with Crestar Merger .. -- -- -- -- -- -- --
Shares Issued in Connection with ESC Merger ..... 1,536 -- -- 666 -- -- --
Reinvestment of Cash Distributions .............. 2,843 1,675 2,504 1,975 1,174 21 174
Cost of Shares Repurchased ...................... (13,227) (2,763) (2,494) (10,061) (8,295) (883) (987)
-------- -------- -------- -------- -------- -------- -------
Increase (Decrease) in Net Assets From
Flex Share Transactions ......................... 28,729 7,262 12,807 (5,392) (797) 4,245 167
-------- -------- -------- -------- -------- -------- -------
Increase (Decrease) in Net Assets From Share
Transactions .................................. 302,999 22,833 47,590 (250,419) 29,595 267,790 23,007
-------- -------- -------- -------- -------- ------- -------
Total Increase (Decrease) in Net Assets ....... 283,837 69,268 4,928 (284,050) (62,914) 270,279 16,180
-------- -------- -------- -------- -------- -------- -------
Net Assets:
Beginning of Period ............................... 706,400 637,132 632,204 604,503 667,417 80,990 64,810
-------- -------- -------- -------- -------- -------- -------
End of Period ...................................... $990,237 $706,400 $637,132 $320,453 $604,503 $351,269 $80,990
======== ======== ======== ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
LIFE VISION
AGGRESSIVE
GROWTH FUND
-----------------------------
06/01/99- 12/01/98- 12/01/97-
05/31/00 05/31/99 11/30/98
--------- --------- ---------
Operations:
<S> <C> <C> <C>
Net Investment Income (Loss) ....................... $ 87 $ 25 $ 36
Capital Gain Received from Investments ............. 780 499 1,739
Net Realized Gain (Loss) on Investments ............ 158 (42) (463)
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 ................................... 461 1,329 (226)
------- ------- -------
Increase (Decrease) in Net Assets from Operations 1,486 1,811 1,086
------- ------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ..................................... (88) (24) (35)
Investor Shares .................................. -- -- --
Flex Shares ...................................... -- -- --
Capital Gains:
Trust Shares ..................................... (807) (1,670) --
Investor Shares .................................. -- -- --
Flex Shares ...................................... -- -- --
------- ------- -------
Total Distributions ................................ (895) (1,694) (35)
------- ------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued ...................... 11,078 2,114 5,852
Shares Issued in Connection with Crestar Merger .. -- -- --
Shares Issued in Connection with Fund
Reorganizations .............................. -- -- --
Reinvestment of Cash Distributions ............... 894 1,694 36
Cost of Shares Repurchased ....................... (12,850) (1,456) (4,421)
------- ------- -------
Increase (Decrease) in Net Assets From Trust Share
Transactions ..................................... (878) 2,352 1,467
------- ------- -------
Investor Shares:
Proceeds from Shares Issued ...................... -- -- --
Shares Issued in Connection with Crestar Merger .. -- -- --
Shares Issued in Connection with ESC Merger ...... -- -- --
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 .. -- -- --
Shares Issued in Connection with ESC 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 .................................. (878) 2,352 1,467
------- ------- -------
Total Increase (Decrease) in Net Assets ....... (287) 2,469 2,518
------- ------- -------
Net Assets:
Beginning of Period ............................... 18,699 16,230 13,712
------- ------- -------
End of Period ...................................... $18,412 $18,699 $16,230
======= ======= =======
</TABLE>
*Commencement of operations.
(1) See Note 6 in the notes to the financial statements for additional
information. Amounts designated as "--" are either $0 or have been
rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
74 & 75
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, AND NOVEMBER 30,
LIFE VISION LIFE VISION
GROWTH AND INCOME FUND MODERATE GROWTH FUND
------------------------------- -----------------------------
06/01/99- 12/01/98- 12/01/97- 06/01/99- 12/01/98- 12/01/97-
05/31/00 05/31/99 11/30/98 05/31/00 05/31/99 11/30/98
--------- --------- --------- --------- --------- ---------
Operations
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) ............................... $ 414 $ 138 $ 357 $ 1,837 $ 867 $ 2,062
Capital Gain Received from Investments ..................... 832 490 2,121 2,705 2,204 6,921
Net Realized Gain (Loss) on Investments .................... (524) (82) (45) (979) 317 (1,004)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ........................................... 408 922 (580) 264 2,338 (1,024)
------- ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets from Operations .......... 1,130 1,468 1,853 3,827 5,726 6,955
------- ------- ------- ------- ------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ............................................. (359) (114) (360) (1,683) (735) (2,072)
Investor Shares .......................................... -- -- -- -- -- --
Flex Shares .............................................. -- -- -- -- -- --
Capital Gains:
Trust Shares ............................................. (571) (2,475) (22) (3,458) (6,686) (238)
Investor Shares .......................................... -- -- -- -- -- --
Flex Shares .............................................. -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Distributions ........................................ (930) (2,589) (382) (5,141) (7,421) (2,310)
------- ------- ------- ------- ------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .............................. 18,854 2,679 2,591 33,036 5,124 15,849
Shares Issued in Connection with Common Trust Fund
Conversion ............................................. -- -- -- -- -- --
Shares Issued in Connection with Crestar Merger .......... -- -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- -- -- -- --
Reinvestment of Cash Distributions ....................... 928 2,589 382 5,141 7,421 2,310
Cost of Shares Repurchased ............................... (11,459) (1,239) (7,923) (55,429) (15,873) (19,035)
------- ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets From Trust Share
Transactions ............................................. 8,323 4,029 (4,950) (17,252) (3,328) (876)
------- ------- ------- ------- ------- -------
Investor Shares:
Proceeds from Shares Issued .............................. -- -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- -- -- -- --
Shares Issued in Connection with ESC Merger .............. -- -- -- -- -- --
Reinvestment of Cash Distributions ....................... -- -- -- -- -- --
Cost of Shares Repurchased ............................... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Increase (Decrease) in Net Assets From Investor
Share Transactions ....................................... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Proceeds from Shares Issued .............................. -- -- -- -- -- --
Shares Issued in Connection with Crestar Merger .......... -- -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- -- -- -- --
Shares Issued in Connection with ESC 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 ........................................... 8,323 4,029 (4,950) (17,252) (3,328) (876)
------- ------- ------- ------- ------- -------
Total Increase (Decrease) in Net Assets ................ 8,523 2,908 (3,479) (18,566) (5,023) 3,769
------- ------- ------- ------- ------- -------
Net Assets:
Beginning of Period ........................................ 21,950 19,042 22,521 88,188 93,211 89,442
------- ------- ------- ------- ------- -------
End of Period .............................................. $30,473 $21,950 $19,042 $69,622 $88,188 $93,211
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP
MID-CAP EQUITY GROWTH SMALL CAP VALUE
FUND STOCK FUND EQUITY FUND
-------------------- -------------------- --------- ---------
06/01/99- 06/01/98- 06/01/99- 10/08/98*- 06/01/99- 06/01/98-
05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/99
--------- --------- --------- --------- --------- ---------
Operations
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) ............................... $ (239) $ (1,779) $ (2,813) $ (141) $ 3,756 $ 3,797
Capital Gain Received from Investments ..................... -- -- -- -- -- --
Net Realized Gain (Loss) on Investments .................... 39,061 12,419 22,517 2,335 (3,553) (48,614)
Net Change in Unrealized Appreciation (Depreciation)
on Investments ........................................... 4,067 (10,771) 40,570 4,550 (20,563) (39,458)
-------- -------- -------- ------- -------- --------
Increase (Decrease) in Net Assets from Operations .......... 42,889 (131) 60,274 6,744 (20,360) (84,275)
-------- -------- -------- ------- -------- --------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ............................................. -- -- -- (4) (3,505) (3,830)
Investor Shares .......................................... -- (3) -- -- -- --
Flex Shares .............................................. -- -- -- -- (6) (46)
Capital Gains:
Trust Shares ............................................. (15,785) (26,541) (2,438) (24) -- (17,401)
Investor Shares .......................................... (1,189) (1,970) -- -- -- --
Flex Shares .............................................. (1,047) (1,677) (83) (1) -- (1,638)
-------- -------- -------- ------- -------- --------
Total Distributions ........................................ ( 18,021) (30,191) (2,521) (29) (3,511) (22,915)
-------- -------- -------- ------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .............................. 155,090 197,227 191,895 69,418 103,359 159,166
Shares Issued in Connection with Common Trust Fund
Conversion ............................................. -- -- -- -- -- --
Shares Issued in Connection with Crestar Merger .......... -- -- -- 88,940 -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- 93,889 -- -- --
Reinvestment of Cash Distributions ....................... 14,649 25,335 2,092 28 2,725 19,237
Cost of Shares Repurchased ............................... (239,058) (280,036) (68,278) (12,528) (173,187) (170,356)
-------- -------- -------- ------- -------- --------
Increase (Decrease) in Net Assets From Trust Share
Transactions ............................................. (69,319) (57,474) 219,598 145,858 (67,103) 8,047
-------- -------- -------- ------- -------- --------
Investor Shares:
Proceeds from Shares Issued .............................. 1,381 3,015 2,463 -- -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- 12,481 -- -- --
Shares Issued in Connection with ESC Merger .............. -- -- 34,455 -- -- --
Reinvestment of Cash Distributions ....................... 1,183 1,967 -- -- -- --
Cost of Shares Repurchased ............................... (8,975) (8,523) (7,316) -- -- --
-------- -------- -------- ------- -------- --------
Increase (Decrease) in Net Assets From Investor
Share Transactions ....................................... (6,411) (3,541) 42,083 -- -- --
-------- -------- -------- ------- -------- --------
Proceeds from Shares Issued .............................. 3,480 4,866 4,518 3,553 1,802 2,579
Shares Issued in Connection with Crestar Merger .......... -- -- -- 2,699 -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- 2,772 -- -- --
Shares Issued in Connection with ESC Merger .............. -- -- 14,435 -- -- --
Reinvestment of Cash Distributions ....................... 1,037 1,671 83 1 5 1,669
Cost of Shares Repurchased ............................... (7,098) (7,908) (5,119) (378) (11,612) (15,110)
-------- -------- -------- ------- -------- --------
Increase (Decrease) in Net Assets From
Flex Share Transactions .................................. (2,581) (1,371) 16,689 5,875 (9,805) (10,862)
-------- -------- -------- ------- -------- --------
Increase (Decrease) in Net Assets From Share
Transactions ........................................... (78,311) (62,386) 278,370 151,733 (76,908) (2,815)
-------- -------- -------- ------- -------- --------
Total Increase (Decrease) in Net Assets ................ (53,443) (92,708) 336,123 158,448 (100,779) (110,005)
-------- -------- -------- ------- -------- --------
Net Assets:
Beginning of Period ........................................ 289,089 381,797 158,448 -- 321,449 431,454
-------- -------- -------- ------- -------- --------
End of Period .............................................. $235,646 $289,089 $494,571 $158,448 $220,670 $321,449
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
TAX SENSITIVE
GROWTH VALUE INCOME
STOCK FUND STOCK FUND
--------- --------- --------- ---------
06/01/99- 12/11/98*- 06/01/99- 06/01/98-
05/31/00 05/31/99 05/31/00 05/31/99
--------- --------- --------- ---------
Operations
<S> <C> <C> <C> <C>
Net Investment Income (Loss) ............................... $ (1,126) $ 38 $ 30,996 $ 33,942
Capital Gain Received from Investments ..................... -- -- -- --
Net Realized Gain (Loss) on Investments .................... (23,743) 4,943 (147,760) 219,408
Net Change in Unrealized Appreciation (Depreciation)
on Investments ........................................... 58,045 14,808 (137,601) (71,294)
---------- -------- ---------- ----------
Increase (Decrease) in Net Assets from Operations .......... 33,176 19,789 (254,365) 182,056
---------- -------- ---------- ----------
Distributions to Shareholders:
Net Investment Income:
Trust Shares ............................................. -- (87) (27,678) (30,625)
Investor Shares .......................................... -- -- (2,514) (3,178)
Flex Shares .............................................. -- -- (1,129) (1,535)
Capital Gains:
Trust Shares ............................................. -- -- (131,535) (229,623)
Investor Shares .......................................... -- -- (14,565) (29,331)
Flex Shares .............................................. -- -- (13,032) (25,364)
---------- -------- ---------- ----------
Total Distributions ........................................ -- (87) (190,453) (319,656)
---------- -------- ---------- ----------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued .............................. 556,671 121,119 383,909 354,278
Shares Issued in Connection with Common Trust Fund
Conversion ............................................. -- 99,222 -- --
Shares Issued in Connection with Crestar Merger .......... -- -- -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- -- --
Reinvestment of Cash Distributions ....................... -- 87 146,588 241,723
Cost of Shares Repurchased ............................... (95,363) (15,922) (831,377) (621,009)
---------- -------- ---------- ----------
Increase (Decrease) in Net Assets From Trust Share
Transactions ............................................. 461,308 204,506 (300,880) (25,008)
---------- -------- ---------- ----------
Investor Shares:
Proceeds from Shares Issued .............................. -- -- 6,784 17,566
Shares Issued in Connection with Fund Reorganizations .... -- -- -- --
Shares Issued in Connection with ESC Merger .............. -- -- -- --
Reinvestment of Cash Distributions ....................... -- -- 16,876 32,240
Cost of Shares Repurchased ............................... -- -- (72,831) (51,945)
---------- -------- ---------- ----------
Increase (Decrease) in Net Assets From Investor
Share Transactions ....................................... -- -- (49,171) (2,139)
Proceeds from Shares Issued .............................. 242,949 77,327 18,991 38,150
Shares Issued in Connection with Crestar Merger .......... -- -- -- --
Shares Issued in Connection with Fund Reorganizations .... -- -- -- --
Shares Issued in Connection with ESC Merger .............. -- -- -- --
Reinvestment of Cash Distributions ....................... -- -- 13,741 26,492
Cost of Shares Repurchased ............................... (36,077) (2,117) (78,588) (65,171)
---------- -------- ---------- ----------
Increase (Decrease) in Net Assets From
Flex Share Transactions .................................. 206,872 75,210 (45,856) (529)
---------- -------- ---------- ----------
Increase (Decrease) in Net Assets From Share
Transactions ........................................... 668,180 279,716 (395,907) (27,676)
---------- -------- ---------- ----------
Total Increase (Decrease) in Net Assets ................ 701,356 299,418 (840,725) (165,276)
---------- -------- ---------- ----------
Net Assets:
Beginning of Period ........................................ 299,418 -- 1,951,263 2,116,539
---------- -------- ---------- ----------
End of Period .............................................. $1,000,774 $299,418 $1,110,538 $1,951,263
========== ======== ========== ==========
</TABLE>
*Commencement of Operations.
(1) See Note 6 in the financial statements for additional information Amounts
designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
76 & 77
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIODS MAY 31, (UNLESS OTHERWISE INDICATED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
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
------------ --------------- ----------------- ------------- ------------- ---------
BALANCED FUND
Trust Shares
<S> <C> <C> <C> <C> <C> <C> <C>
2000 $13.26 $ 0.32 $ 0.33 $(0.30) $ (0.24) $13.37
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
Investor Shares
2000 $13.32 $ 0.29 $ 0.31 $(0.25) $ (0.24) $13.43
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
Flex Shares
2000 $13.17 $ 0.17 $ 0.33 $(0.16) $ (0.24) $13.27
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
2000 $16.62 $ 0.02 $ 1.40 $ -- $ (0.92) $17.12
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
Investor Shares
2000 $16.53 $(0.11) $ 1.41 $ -- $ (0.92) $16.91
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
Flex Shares
2000 $16.18 $(0.24) $ 1.43 $ -- $ (0.92) $16.45
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
CORE EQUITY FUND
Trust Shares
2000(3) $10.00 $(0.02) $ 1.13 $ -- $ -- $11.11
Flex Shares
2000(4) $10.63 $(0.04) $ 0.47 $ -- $ -- $11.06
E-COMMERCE OPPORTUNITY FUND
Trust Shares
2000(3) $10.00 $(0.04) $ 5.91 $ -- $ -- $15.87
Flex Shares
2000(4) $18.20 $(0.07) $(2.32) $ -- $ -- $15.81
GROWTH AND INCOME FUND (A)
Trust Shares
2000 $16.09 $ 0.11 $ 0.55 $(0.10) $ (1.12) $15.53
1999(5) 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
Investor Shares
2000 $16.21 $ 0.09 $ 0.55 $(0.08) $ (1.12) $15.65
1999(5) 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
Flex Shares
2000 $16.10 $ -- $ 0.51 $ -- $ (1.12) $15.49
1999(5) 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(6) 11.11 0.12 1.62 (1.14) (1.07) 11.64
</TABLE>
<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
--------- ------------- ------------------ ------------------
BALANCED FUND
Trust Shares
<S> <C> <C> <C> <C> <C>
2000 5.02% $ 223,634 0.97% 2.39%
1999 10.98 251,752 0.97 2.19
1998 22.15 188,465 0.96 2.51
1997 16.66 151,358 0.95 2.89
1996 17.26 111,638 0.95 3.00
Investor Shares
2000 4.66% $ 9,627 1.27% 2.07%
1999 10.70 14,962 1.27 1.89
1998 21.72 8,313 1.26 2.21
1997 16.27 6,012 1.25 2.58
1996 16.88 4,896 1.25 2.70
Flex Shares
2000 3.88% $ 64,322 2.03% 1.33%
1999 9.84 73,526 2.03 1.13
1998 20.85 27,625 2.02 1.41
1997 15.40 6,067 2.01 1.84
1996(1) 15.58 3,131 2.00 1.85
CAPITAL APPRECIATION FUND
Trust Shares
2000 8.98% $1,296,927 1.17% 0.10%
1999 17.83 1,966,842 1.17 0.29
1998 29.51 1,532,587 1.16 0.61
1997 24.66 1,085,128 1.15 0.83
1996 28.97 981,498 1.15 0.90
Investor Shares
2000 8.29% $ 251,421 1.82% (0.55)%
1999 17.20 311,120 1.82 (0.30)
1998 28.71 271,044 1.81 (0.03)
1997 23.74 218,660 1.80 0.19
1996 28.18 191,078 1.80 0.24
Flex Shares
2000 7.77% $ 128,159 2.29% (1.03)%
1999 16.50 162,100 2.29 (0.86)
1998 28.12 106,670 2.26 (0.46)
1997 23.24 36,753 2.27 (0.29)
1996(2) 27.48 10,969 2.27 (0.29)
CORE EQUITY FUND
Trust Shares
2000(3) 11.10% $ 151,421 1.20% (0.30)%
Flex Shares
2000(4) 4.05% $ 4,347 2.25% (1.39)%
E-COMMERCE OPPORTUNITY FUND
Trust Shares
2000(3) 58.70% $ 106,425 1.20% (0.54)%
Flex Shares
2000(4) (13.13)% $ 20,201 2.25% (1.65)%
GROWTH AND INCOME FUND (A)
Trust Shares
2000 4.11% $ 885,109 1.01% 0.76%
1999(5) 14.24 634,279 1.14 0.49
For the years ended November 30:
1998 13.64 577,042 1.03 0.63
1997 25.41 590,824 1.02 0.92
1996 22.68 553,648 1.02 1.38
1995 28.76 220,386 1.02 2.16
Investor Shares
2000 3.92% $ 42,666 1.18% 0.58%
1999(5) 14.31 36,958 1.08 0.54
For the years ended November 30:
1998 13.69 34,434 1.03 0.63
1997 25.42 28,112 1.03 0.89
1996 22.63 17,997 1.03 1.35
1995 28.71 12,633 1.03 2.14
Flex Shares
2000 3.11% $ 62,462 1.93% (0.14)%
1999(5) 13.85 35,163 1.83 (0.21)
For the years ended November 30:
1998 12.78 25,656 1.78 (0.13)
1997 24.63 13,269 1.73 0.15
1996 21.81 5,131 1.68 0.71
1995(6) 15.78 2,086 1.68 1.13
</TABLE>
<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
------------------- ------------------- ---------
BALANCED FUND
Trust Shares
<S> <C> <C> <C> <C>
2000 1.07% 2.29% 182%
1999 1.06 2.10 179
1998 1.08 2.39 154
1997 1.08 2.76 197
1996 1.09 2.86 155
Investor Shares
2000 1.51% 1.83% 182%
1999 1.43 1.73 179
1998 1.59 1.88 154
1997 1.64 2.19 197
1996 1.89 2.06 155
Flex Shares
2000 2.18% 1.18% 182%
1999 2.15 1.01 179
1998 2.23 1.20 154
1997 2.45 1.40 197
1996(1) 2.97 0.88 155
CAPITAL APPRECIATION FUND
Trust Shares
2000 1.26% 0.01% 129%
1999 1.26 0.20 147
1998 1.27 0.50 194
1997 1.25 0.73 141
1996 1.27 0.78 156
Investor Shares
2000 1.98% (0.71)% 129%
1999 1.96 (0.44) 147
1998 2.01 (0.23) 194
1997 2.02 (0.03) 141
1996 2.08 (0.04) 156
Flex Shares
2000 2.39% (1.13)% 129%
1999 2.38 (0.95) 147
1998 2.37 (0.57) 194
1997 2.43 (0.45) 141
1996(2) 2.68 (0.70) 156
CORE EQUITY FUND
Trust Shares
2000(3) 1.27% (0.37)% 44%
Flex Shares
2000(4) 2.70% (1.84)% 44%
E-COMMERCE OPPORTUNITY FUND
Trust Shares
2000(3) 1.34% (0.68)% 250%
Flex Shares
2000(4) 2.40% (1.80)% 250%
GROWTH AND INCOME FUND (A)
Trust Shares
2000 1.01% 0.76% 53%
1999(5) 1.43 0.20 31
For the years ended November 30:
1998 1.21 0.45 71
1997 1.17 0.77 100
1996 1.17 1.23 82
1995 1.17 2.01 175
Investor Shares
2000 1.31% 0.45% 53%
1999(5) 1.17 0.45 31
For the years ended November 30:
1998 1.18 0.48 71
1997 1.18 0.74 100
1996 1.18 1.20 82
1995 1.18 1.99 175
Flex Shares
2000 2.18% (0.39)% 53%
1999(5) 1.97 (0.35) 31
For the years ended November 30:
1998 2.03 (0.38) 71
1997 2.09 (0.20) 100
1996 2.03 0.36 82
1995(6) 2.03 0.78 175
<FN>
+ 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 September 30, 1999. All ratios for the period have been annualized.
(4) Commenced operations on January 24, 2000. 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 April 19, 1995. All ratios for the period ended November 30, 1995 have been annualized.
(A) On May 24, 1999, the CrestFund Value Fund exchanged all of its assets and certain liabilities for
shares of the Growth and Income Fund. The CrestFund 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.
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</FN>
</TABLE>
78 & 79
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE
INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
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
------------ --------------- ----------------- ------------- ------------- ---------
INTERNATIONAL EQUITY FUND
Trust Shares
<S> <C> <C> <C> <C> <C> <C> <C>
2000 $12.97 $ (0.10) $ 1.42 $(0.07) $(1.66) $12.56
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
2000 $12.89 $ (0.11) $ 1.37 $(0.02) $(1.66) $12.47
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
2000 $12.58 $ (0.32) $ 1.46 $ -- $(1.66) $12.06
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
2000 $11.82 $ 0.16 $ 2.13 $(0.03) $(0.11) $13.97
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
Investor Shares
2000 $11.70 $ (0.11) $ 2.32 $ -- $(0.11) $13.80
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
Flex Shares
2000 $11.73 $ 0.08 $ 2.04 $ -- $(0.11) $13.74
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(3) 10.24 -- 0.82 (0.10) (0.09) 10.87
LIFE VISION AGGRESSIVE GROWTH FUND (A)
Trust Shares
2000 $11.31 $ 0.05 $ 0.74 $(0.05) $(0.44) $11.61
1999(4) 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(5) 10.00 0.03 0.65 (0.03) -- 10.65
LIFE VISION GROWTH AND INCOME FUND (A)
Trust Shares
2000 $10.33 $ 0.07 $ 0.52 $(0.17) $(0.25) $10.50
1999(4) 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(5) 10.00 0.09 0.51 (0.09) -- 10.51
LIFE VISION MODERATE GROWTH FUND (A)
Trust Shares
2000 $10.80 $ 0.33 $ 0.13 $(0.21) $(0.44) $10.61
1999(4) 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(5) 10.00 0.12 0.45 (0.11) -- 10.46
MID-CAP EQUITY FUND
Trust Shares
2000 $12.68 $ (0.04) $ 2.32 $ -- $(0.86) $14.10
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
Investor Shares
2000 $12.50 $ (0.19) $ 2.37 $ -- $(0.86) $13.82
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
Flex Shares
2000 $12.17 $ (0.22) $ 2.26 $ -- $(0.86) $13.35
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(6) 11.13 -- 2.45 (0.02) (0.87) 12.69
</TABLE>
<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
--------- ------------- ------------------ ------------------
INTERNATIONAL EQUITY FUND
Trust Shares
<S> <C> <C> <C> <C> <C>
2000 10.58% $299,100 1.48% 0.59%
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
2000 10.15% $ 10,462 1.83% 0.33%
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
2000 9.38% $ 10,891 2.53% (0.38)%
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
2000 19.36% $340,853 1.07% 0.83%
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
Investor Shares
2000 18.86% $ 4,563 1.47% 0.07%
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
Flex Shares
2000 18.04% $ 5,853 2.12% (0.36)%
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(3) 8.32 917 2.10 (0.24)
LIFE VISION AGGRESSIVE GROWTH FUND (A)
Trust Shares
2000 7.25% $ 18,412 0.25% 0.48%
1999(4) 10.99 18,699 0.27 0.28
For the years ended November 30:
1998 6.53 16,230 0.25 0.23
1997(5) 6.82 13,712 0.25 0.72
LIFE VISION GROWTH AND INCOME FUND (A)
Trust Shares
2000 5.81% $ 30,473 0.25% 1.77%
1999(4) 7.75 21,950 0.27 1.38
For the years ended November 30:
1998 7.12 19,042 0.25 1.68
1997(5) 5.97 22,521 0.25 2.11
LIFE VISION MODERATE GROWTH FUND (A)
Trust Shares
2000 4.46% $ 69,622 0.25% 2.19%
1999(4) 6.35 88,188 0.27 1.90
For the years ended November 30:
1998 7.90 93,211 0.25 2.21
1997(5) 5.70 89,442 0.25 2.66
MID-CAP EQUITY FUND
Trust Shares
2000 19.10% $206,545 1.17% --%
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
Investor Shares
2000 18.55% $ 14,513 1.62% (0.43)%
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
Flex Shares
2000 17.87% $ 14,588 2.22% (1.05)%
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(6) 23.00 5,029 2.20 (0.37)
</TABLE>
<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
------------------- ------------------- ---------
INTERNATIONAL EQUITY FUND
Trust Shares
<S> <C> <C> <C> <C>
2000 1.48% 0.59% 179%
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
2000 1.95% 0.21% 179%
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
2000 2.74% (0.59)% 179%
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
2000 1.18% 0.72% 9%
1999 1.17 0.59 32
1998 1.18 0.76 1
1997 1.15 0.61 2
1996 1.19 0.70 30
Investor Shares
2000 1.79% (0.25)% 9%
1999 1.71 0.01 32
1998 1.84 0.12 1
1997 1.88 (0.15) 2
1996 2.06 (0.13) 30
Flex Shares
2000 2.61% (0.85)% 9%
1999 2.92 (1.10) 32
1998 3.52 (1.44) 1
1997 3.69 (1.98) 2
1996(3) 4.14 (2.28) 30
LIFE VISION AGGRESSIVE GROWTH FUND (A)
Trust Shares
2000 0.44% 0.29% 183%
1999(4) 0.63 (0.08) 33
For the years ended November 30:
1998 0.66 (0.18) 75
1997(5) 0.73 0.24 34
LIFE VISION GROWTH AND INCOME FUND (A)
Trust Shares
2000 0.42% 1.60% 189%
1999(4) 0.60 1.05 40
For the years ended November 30:
1998 0.59 1.34 57
1997(5) 0.59 1.77 25
LIFE VISION MODERATE GROWTH FUND (A)
Trust Shares
2000 0.37% 2.07% 151%
1999(4) 0.42 1.75 48
For the years ended November 30:
1998 0.42 2.04 52
1997(5) 0.42 2.49 43
MID-CAP EQUITY FUND
Trust Shares
2000 1.25% (0.08)% 131%
1999 1.28 (0.58) 76
1998 1.27 (0.40) 129
1997 1.26 0.12 152
1996 1.29 0.56 116
Investor Shares
2000 1.81% (0.62)% 131%
1999 1.76 (1.04) 76
1998 1.84 (0.98) 129
1997 1.85 (0.46) 152
1996 1.96 (0.11) 116
Flex Shares
2000 2.44% (1.27)% 131%
1999 2.48 (1.78) 76
1998 2.47 (1.63) 129
1997 2.58 (1.23) 152
1996(6) 3.04 (1.21) 116
<FN>
+ 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 8, 1995. 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 June 30, 1997. All ratios for the period have been annualized.
(6) Commenced operations on June 5, 1995. All ratios for the period have been annualized.
(A) On May 24, 1999, the CrestFund Life Vision Balanced, CrestFund Life Vision
Growth and Income, and CrestFund 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 CrestFund Life Vision Balanced, CrestFund Life
Vision Growth and Income, and CrestFund 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.
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</FN>
</TABLE>
80 & 81
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31,
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
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
------------ --------------- ----------------- ------------- ------------- ---------
SMALL CAP GROWTH STOCK FUND
Trust Shares
<S> <C> <C> <C> <C> <C> <C> <C>
2000 $14.55 $(0.08) $ 4.02 $ -- $(0.19) $18.30
1999(3) 10.00 (0.05) 4.62 -- (0.02) 14.55
Investor Shares
2000(4) $16.46 $(0.07) $ 1.88 $ -- $ -- $18.27
Flex Shares
2000 $14.46 $(0.04) $ 3.77 $ -- $(0.19) $18.00
1999(3) 10.00 (0.19) 4.67 -- (0.02) 14.46
SMALL CAP VALUE EQUITY FUND
Trust Shares
2000 $ 9.70 $ 0.13 $(0.59) $(0.11) $ -- $ 9.13
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
2000 $ 9.65 $ -- $(0.54) $(0.01) $ -- $ 9.10
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
TAX SENSITIVE GROWTH STOCK FUND
Trust Shares
2000 $29.96 $ 0.02 $ 3.12 $ -- $ -- $33.10
1999(5) 25.61 0.02 4.34 (0.01) -- 29.96
Flex Shares
2000 $29.85 $(0.16) $ 2.96 $ -- $ -- $32.65
1999(6) 25.52 (0.04) 4.37 -- -- 29.85
VALUE INCOME STOCK FUND
Trust Shares
2000 $12.85 $ 0.23 $(1.49) $(0.22) $(0.99) $10.38
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
Investor Shares
2000 $12.81 $ 0.19 $(1.48) $(0.18) $(0.99) $10.35
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
Flex Shares
2000 $12.68 $ 0.08 $(1.44) $(0.09) $(0.99) $10.24
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>
<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
--------- ------------- ------------------ ------------------
SMALL CAP GROWTH STOCK FUND
Trust Shares
<S> <C> <C> <C> <C> <C>
2000 27.24% $ 431,478 1.20% (0.86)%
1999(3) 45.70 152,290 1.20 (0.48)
Investor Shares
2000(4) 11.00% $ 39,865 1.55% (1.26)%
Flex Shares
2000 25.95% $ 23,228 2.25% (1.92)%
1999(3) 44.78 6,158 2.25 (1.50)
SMALL CAP VALUE EQUITY FUND
Trust Shares
2000 (4.72)% $ 212,074 1.22% 1.31%
1999 (18.72) 301,984 1.22 1.27
1998 23.59 390,841 1.21 1.07
1997(1) 10.97 131,049 1.20 1.86
Flex Shares
2000 (5.65)% $ 8,596 2.27% 0.21%
1999 (19.52) 19,465 2.27 0.21
1998(2) 22.29 40,613 2.06 0.01
TAX SENSITIVE GROWTH STOCK FUND
Trust Shares
2000 10.48% $ 710,179 1.20% 0.13%
1999(5) 17.04 223,543 1.20 0.21
Flex Shares
2000 9.38% $ 290,595 2.25% (0.91)%
1999(6) 16.97 75,875 2.25 (0.80)
VALUE INCOME STOCK FUND
Trust Shares
2000 (10.52)% $ 921,797 0.89% 2.02%
1999 11.13 1,589,951 0.92 1.91
1998 23.10 1,725,418 0.92 1.85
1997 22.18 1,488,062 0.91 2.40
1996 27.91 1,244,399 0.92 2.86
Investor Shares
2000 (10.83)% $ 104,178 1.28% 1.64%
1999 10.71 194,312 1.28 1.55
1998 22.71 210,591 1.27 1.47
1997 21.69 165,999 1.30 2.01
1996 27.39 130,597 1.30 2.47
Flex Shares
2000 (11.50)% $ 84,563 2.02% 0.91%
1999 9.91 167,000 2.02 0.81
1998 21.76 180,530 2.01 0.78
1997 20.91 73,466 2.00 1.33
1996(7) 26.52 26,298 2.00 1.72
</TABLE>
<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
------------------- ------------------- ---------
SMALL CAP GROWTH STOCK FUND
Trust Shares
<S> <C> <C> <C> <C>
2000 1.23% (0.89)% 110%
1999(3) 1.49 (0.77) 75
Investor Shares
2000(4) 1.79% (1.50)% 110%
Flex Shares
2000 2.42% (2.09)% 110%
1999(3) 3.19 (1.73) 75
SMALL CAP VALUE EQUITY FUND
Trust Shares
2000 1.25% 1.28% 65%
1999 1.27 1.22 63
1998 1.31 0.97 55
1997(1) 1.37 1.69 27
Flex Shares
2000 2.56% (0.08)% 65%
1999 2.55 (0.07) 63
1998(2) 2.35 (0.28) 55
TAX SENSITIVE GROWTH STOCK FUND
Trust Shares
2000 1.26% 0.07% 30%
1999(5) 1.34 0.07 18
Flex Shares
2000 2.35% (1.01)% 30%
1999(6) 2.48 (1.03) 18
VALUE INCOME STOCK FUND
Trust Shares
2000 0.89% 2.02% 62%
1999 0.92 1.91 69
1998 0.92 1.85 99
1997 0.91 2.40 105
1996 0.92 2.86 134
Investor Shares
2000 1.28% 1.64% 62%
1999 1.28 1.55 69
1998 1.27 1.47 99
1997 1.31 2.00 105
1996 1.37 2.40 134
Flex Shares
2000 2.03% 0.90% 62%
1999 2.03 0.80 69
1998 2.01 0.78 99
1997 2.03 1.30 105
1996(7) 2.15 1.57 134
<FN>
+ 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 December 12, 1999. 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.
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</FN>
</TABLE>
82 & 83
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
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-five funds as of May 31, 2000: the
Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund), the
Core Equity Fund, the E-Commerce Opportunity Fund, the Growth and Income Fund,
the International Equity Fund, the International Equity Index Fund, the Life
Vision Aggressive Growth Fund (formerly Life Vision Maximum Growth Portfolio),
Life Vision Growth and Income Fund (formerly Life Vision Growth and Income
Portfolio), the Life Vision Moderate Growth Fund (formerly Life Vision Balanced
Portfolio), the Mid-Cap Equity Fund, the Small Cap Growth Stock Fund, the Small
Cap Value Equity Fund (formerly Small Cap Equity Fund), the Tax Sensitive Growth
Stock Fund, the Value Income Stock Fund, (collectively the "Equity Funds" or the
"Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund,
the High Income Fund, the 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 Money Market Fund, 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 fund 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.
Effective May 1999, 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 certain stated liabilities of the CrestFunds in exchange for the
issuance of shares in the Funds in a tax-free reorganization (see Note 10).
On August 17, 1999 and May 18, 1999, respectively, the Board of Trustees of the
STI Classic Funds approved an Agreement and Plan of Reorganization (the
"Reorganization Agreement") providing for the transfer of all the assets and
liabilities of the Emerging Markets Equity Fund and the Sunbelt Equity Fund in
exchange for the issuance of shares in the International Equity Fund and Small
Cap Growth Stock Fund, respectively, in a tax-free reorganization (see Note 11).
On February 15, 2000 and November 10, 1999 respectively, the Board of Trustees
of the STI Classic Funds and the Board of Directors of the ESC Strategic Funds
approved an Agreement and Plan of Reorganization (the "Reorganization
Agreement") providing for the transfer of all assets and certain stated
liabilities of the ESC Strategic Funds in exchange for the issuance of shares in
the Funds in a tax-free reorganization (see Note 12).
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 10,
the STI Classic Funds acquired certain CrestFunds 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 CrestFunds. In accordance
with generally accepted accounting principles, the financial statements
presented herein represent those of accounting survivors. Accordingly, the
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 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. Securities for which current market quotations are
not readily available, of which there are none as of May 31, 2000, are
valued at their fair value as determined in good faith by, or in accordance
with procedures adopted by, the Board of Trustees.
84
<PAGE>
--------------------------------------------------------------------------------
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, 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 Small Cap Growth Stock,
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% for either the net
asset value of the shares at the time of purchase or the net asset value of
the shares next calculated after the Fund receives the sale request,
whichever is less. The CDSC will not apply to shares redeemed after such
time.
FOREIGN CURRENCY TRANSLATION -- The books and records of 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; and
(II) Purchases and sales of investment securities, income and expenses
at the relavent rates of exchange prevailing on the respective
dates of such transactions.
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 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. 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.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net
investment income are declared and paid each calendar quarter by the Equity
Funds, except for 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
attribut-
85
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
able 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
ACCUMULATEDNET INVESTMENT
PAID-IN-CAPITAL REALIZED GAIN/ INCOME/(LOSS)
(000) (LOSS)(000) (000)
--------------------------------------------------
Capital Appreciation
Fund............. $ -- $(352) $ 352
Core Equity Fund... -- (265) 265
E-Commerce
Opportunity Fund. (323) -- 323
Growth and Income
Fund............. 1,659 (1,916) 257
International Equity
Fund............ 976 (1,061) 85
Life Vision Growth and
Income Fund..... -- (31) 31
Mid-Cap Equity Fund -- (236) 236
Small Cap Growth
Stock Fund....... 2,831 (7,654) 4,823
Tax Sensitive Growth
Stock Fund....... (299) 49 250
Value Income
Stock Fund....... -- 13 (13)
These reclassification 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 SEI Investments Mutual Funds
Services (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.
The Fund has entered into an agreement with the Distributor to manage the
investments of repurchase agreements for the Funds. For its services the
Distributor received $1,846,277 for the year ended May 31, 2000.
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 Funds.
The Trust and Federated Services Company are parties to a Transfer Agency
servicing agreement dated May 14, 1994 under which Federated Services Company
provides transfer agency services to the Trust.
The Trust and the Distributor are parties to a Distribution Agreement dated May
29, 1995 regarding the Flex Shares and a Distribution Agreement dated November
21, 1995 with respect to the Trust and Investor shares. The Distributor will
receive no fees for its distribution services under this agreement for the Trust
Shares of any fund. With respect to the Investor Shares and Flex Shares, the
Distributor receives amounts, pursuant to a Distribution Plan and (in the case
of Flex Shares) a Distribution and Service Plan, as outlined in the table in
footnote 5 under the column titled "Distribution Fee".
Prior to May 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
86
<PAGE>
--------------------------------------------------------------------------------
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 1999, the
limit was .75% for the Value Fund.
Prior to May 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%.
5. Investment Advisory and Custodian Agreements:
The Trust, Trusco Capital Management ("Trusco") and the SunTrust Bank, Atlanta
have entered into advisory agreements dated May 29, 1992, June 15, 1993, and
December 20, 1993, respectively.
Under terms of the respective agreements, the Funds are charged the following
annual fees based upon average daily net assets:
MAXIMUM
FLEX
SHARE
MAXIMUM DISTRI-
MAXIMUM TRUST INVESTOR INVESTOR BUTION FLEX
ANNUAL SHARE SHARE SHARE AND SHARE
ADVISORY MAXIMUM DISTRI- MAXIMUM SERVICE MAXIMUM
FEE EXPENSE BUTION FEE EXPENSE FEE EXPENSE
------ ------- ---------- -------- -------- -------
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%
Core Equity Fund ... 1.10% 1.20% -- -- 1.00% 2.25%
E-Commerce
Opportunity
Fund .............. 1.10% 1.20% -- -- 1.00% 2.25%
Growth and Income
Fund .............. .90% 1.01% .25% 1.18% 1.00% 1.93%
International Equity
Fund .............. 1.25% 1.48% .33% 1.83% 1.00% 2.53%
International Equity
Index Fund ........ .90% 1.07% .38% 1.47% 1.00% 2.12%
Life Vision
Aggressive
Growth Fund ....... .25% .25% -- -- -- --
Life Vision Growth
and Income Fund ... .25% .25% -- -- -- --
Life Vision
Moderate .......... .25% .25% -- -- -- --
Mid-Cap Equity
Fund .............. 1.15% 1.17% .43% 1.62% 1.00% 2.22%
Small Cap Growth
Stock Fund ........ 1.15% 1.20% .50% 1.55% 1.00% 2.25%
Small Cap Value
Equity Fund ....... 1.15% 1.22% -- -- 1.00% 2.27%
Tax Sensitive
Growth Stock
Fund .............. 1.15% 1.20% -- -- 1.00% 2.25%
Value Income
Stock Fund ........ .80% .92% .33% 1.28% 1.00% 2.02%
The Investment Advisers 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.
Prior to May 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, acts as custodian for all the funds except, 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
87
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
6. Capital Share Transactions:
Capital Share Transactions for the funds were as follows (000):
<TABLE>
<CAPTION>
CAPITAL CORE
BALANCED FUND APPRECIATION FUND EQUITY FUND
--------------------- ------------------- -----------
06/01/99- 06/01/98- 06/01/99- 06/01/98- 09/30/99*-
05/31/00 05/31/99 05/31/00 05/31/99 05/31/00
--------- --------- --------- --------- -----------
Trust Shares:
<S> <C> <C> <C> <C> <C>
Shares Issued ......................................... 7,060 11,211 18,930 40,224 15,465
Shares Issued in Connection with Crestar Merger ....... -- -- -- 8,202 --
Shares Issued in Connection with Fund Reorganizations . -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 734 1,393 5,218 14,645 --
Shares Redeemed ....................................... (10,050) (8,020) (66,755) (37,763) (1,832)
-------- ------- -------- -------- -------
Net Trust Share Transactions ............................ (2,256) 4,584 (42,607) 25,308 13,633
-------- ------- -------- -------- -------
Investor Shares:
Shares Issued ......................................... 149 570 782 1,967 --
Shares Issued in Connection with Crestar Merger ....... -- -- -- 738 --
Shares Issued in Connection with ESC Merger ........... -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 36 75 1,010 2,607 --
Shares Redeemed ....................................... (591) (154) (5,728) (2,983) --
-------- ------- -------- -------- -------
Net Investor Share Transactions ......................... (406) 491 (3,936) 2,329 --
-------- ------- -------- -------- -------
Flex Shares:
Shares Issued ......................................... 1,989 4,165 1,804 4,176 404
Shares Issued in Connection with Crestar Merger ....... -- -- -- 474 --
Shares Issued in Connection with ESC Merger ........... -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 180 252 567 1,228 --
Shares Redeemed ....................................... (2,903) (956) (4,592) (2,440) (11)
-------- ------- -------- -------- -------
Net Flex Share Transactions ............................. (734) 3,461 (2,221) 3,438 393
======== ======= ======== ======== =======
Net Change in Capital Shares ............................ (3,396) 8,536 (48,764) 31,075 14,026
-------- ------- -------- -------- -------
</TABLE>
<TABLE>
<CAPTION>
E-COMMERCE GROWTH AND INTERNATIONAL
OPPORTUNITY FUND INCOME FUND EQUITY FUND
---------------- ----------------------------- --------------------
09/30/99*- 06/01/99- 12/01/98- 12/01/97- 06/01/99- 06/01/98-
05/31/00 05/31/00 05/31/99 11/30/98 05/31/00 05/31/99
---------- ----------------------------- -------------------
Trust Shares:
<S> <C> <C> <C> <C> <C> <C>
Shares Issued ......................................... 8,128 24,090 5,206 10,513 5,136 12,883
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations . -- -- -- -- 1,794 --
Shares Issued in Lieu of Cash Distributions ........... -- 2,200 840 6,789 5,244 2,626
Shares Redeemed ....................................... (1,422) (8,699) (4,849) (14,789) (32,574) (13,225)
------- ------- ------- -------- -------- --------
Net Trust Share Transactions ............................ 6,706 17,591 1,197 2,513 (20,400) 2,284
------- ------- ------- -------- -------- --------
Investor Shares:
Shares Issued ......................................... -- 1,108 137 764 91 203
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- 502 -- -- 103 --
Shares Issued in Lieu of Cash Distributions ........... -- 159 150 402 135 77
Shares Redeemed ....................................... -- (1,321) (272) (591) (585) (350)
------- ------- ------- -------- -------- --------
Net Investor Share Transactions ......................... -- 448 15 575 (256) (70)
------- ------- ------- -------- -------- --------
Flex Shares:
Shares Issued ......................................... 1,330 2,436 550 874 165 468
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- 97 -- -- 57 --
Shares Issued in Lieu of Cash Distributions ........... -- 182 117 192 163 95
Shares Redeemed ....................................... (52) (867) (178) (171) (839) (648)
------- ------- ------- -------- -------- --------
Net Flex Share Transactions ............................. 1,278 1,848 489 895 (454) (85)
======= ======= ======= ======== ======== ========
Net Change in Capital Shares ............................ 7,984 19,887 1,701 3,983 (21,110) 2,129
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL LIFE VISION
EQUITY INDEX AGGRESSIVE
FUND GROWTH FUND
---------------------------------------------------
06/01/99- 06/01/98- 06/01/99- 12/01/98- 12/01/97-
05/31/00 05/31/99 05/31/99 05/31/99 11/30/98
------------------- -----------------------------
Trust Shares:
<S> <C> <C> <C> <C> <C>
Shares Issued ......................................... 20,423 2,851 983 192 599
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations . -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 70 779 81 161 3
Shares Redeemed ....................................... (2,401) (1,537) (1,132) (133) (456)
------- ------- ------- ------ ------
Net Trust Share Transactions ............................ 18,092 2,093 (68) 220 146
------- ------- ------- ------ ------
Investor Shares:
Shares Issued ......................................... 211 88 -- -- --
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 3 84 -- -- --
Shares Redeemed ....................................... (302) (294) -- -- --
------- ------- ------- ------ ------
Net Investor Share Transactions ......................... (88) (122) -- -- --
------- ------- ------- ------ ------
Flex Shares:
Shares Issued ......................................... 363 80 -- -- --
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 1 15 -- -- --
Shares Redeemed ....................................... (63) (82) -- -- --
------- ------- ------- ------ ------
Net Flex Share Transactions ............................. 301 13 -- -- --
======= ======= ======= ====== ======
Net Change in Capital Shares ............................ 18,305 1,984 (68) 220 146
</TABLE>
<TABLE>
<CAPTION>
LIFE VISION LIFE VISION
GROWTH AND INCOME FUND MODERATE GROWTH FUND
----------------------------- -----------------------------
06/01/99- 12/01/98- 12/01/97- 06/01/99- 12/01/98- 12/01/97-
05/31/00 05/31/99 11/30/98 05/31/00 05/31/99 11/30/98
--------- -------- --------- --------- --------- ---------
Trust Shares:
<S> <C> <C> <C> <C> <C> <C>
Shares Issued ......................................... 1,802 259 239 3,097 476 1,449
Shares Issued in Connection with Common Trust Fund
Conversion .......................................... -- -- -- -- -- --
Shares Issued in Connection with Crestar Merger ....... -- -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... 90 264 35 491 712 214
Shares Redeemed ....................................... (1,113) (120) (695) (5,194) (1,486) (1,743)
------- ----- ----- ------- ----- -------
Net Trust Share Transactions ............................ 779 403 (421) (1,606) (298) (80)
------- ----- ----- ------- ----- -------
Investor Shares:
Shares Issued ......................................... -- -- -- -- -- --
Shares Issued in Connection with Fund Reorganizations . -- -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- -- -- -- --
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 Connection with Fund Reorganizations . -- -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- --
------- ----- ----- ------- ----- -------
Net Flex Share Transactions ............................. -- -- -- -- -- --
======= ===== ===== ======= ===== =======
Net Change in Capital Shares .......................... 779 403 (421) (1,606) (298) (80)
------- ----- ----- ------- ----- -------
</TABLE>
<TABLE>
<CAPTION>
MID-CAP EQUITY SMALL CAP GROWTH SMALL CAP VALUE
FUND STOCK FUND STOCK FUND
-------------------- -------------------- -------------------
06/01/99- 06/01/98- 06/01/99- 10/08/98*- 06/01/99- 06/01/98-
05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/99
--------- --------- --------- --------- --------- ---------
Trust Shares:
<S> <C> <C> <C> <C> <C> <C>
Shares Issued ......................................... 11,917 16,168 11,362 5,174 10,968 16,078
Shares Issued in Connection with Common Trust Fund
Conversion .......................................... -- -- -- -- -- --
Shares Issued in Connection with Crestar Merger ....... -- -- 6,174 -- -- --
Shares Issued in Connection with Fund Reorganizations -- -- 5,705 -- -- --
Shares Issued in Lieu of Cash Distributions ........... 1,197 2,230 127 2 294 2,040
Shares Redeemed ....................................... (18,496) (22,862) (4,061) (886) (19,166) (17,349)
-------- -------- ------- ------- -------- --------
Net Trust Share Transactions ............................ (5,382) (4,464) 13,133 10,464 (7,904) 769
-------- -------- ------- ------- -------- --------
Investor Shares:
Shares Issued ......................................... 108 247 127 -- -- --
Shares Issued in Connection with Fund Reorganizations . -- -- 758 -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- 1,677 -- -- --
Shares Issued in Lieu of Cash Distributions ........... 98 175 -- -- -- --
Shares Redeemed ....................................... (695) (707) (390) -- -- --
-------- -------- ------- ------- -------- --------
Net Investor Share Transactions ......................... (489) (285) 2,172 -- -- --
-------- -------- ------- ------- -------- --------
Flex Shares:
Shares Issued ......................................... 273 403 261 266 194 245
Shares Issued in Connection with Crestar Merger ....... -- -- -- 188 -- --
Shares Issued in Connection with Fund Reorganizations . -- -- 170 -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- 712 -- -- --
Shares Issued in Lieu of Cash Distributions ........... 89 152 5 -- 1 179
Shares Redeemed (567) (676) (288) (28) (1,266) (1,580)
-------- -------- ------- ------- -------- --------
Net Flex Share Transactions ............................. (205) (121) 860 426 (1,071) (1,156)
======== ======== ======= ======= ======== ========
Net Change in Capital Shares .......................... (6,076) (4,870) 16,165 10,890 (8,975) (387)
-------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
TAX SENSITIVE GROWTH VALUE INCOME
STOCK FUND STOCK FUND
--------------------- -------------------
06/01/99- 12/11/98*- 06/01/99- 06/01/98-
05/31/00 05/31/99 05/31/00 05/31/99
--------- ---------- --------- ---------
Trust Shares:
<S> <C> <C> <C> <C>
Shares Issued ......................................... 16,874 4,133 32,686 28,099
Shares Issued in Connection with Common Trust Fund
Conversion .......................................... -- 3,875 -- --
Shares Issued in Connection with Crestar Merger ....... -- -- -- --
Shares Issued in Connection with Fund Reorganizations -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... -- 3 12,665 20,747
Shares Redeemed ....................................... (2,879) (549) (80,311) (49,236)
------- ------- -------- --------
Net Trust Share Transactions ............................ 13,995 7,462 (34,960) (390)
------- ------- -------- --------
Investor Shares:
Shares Issued ......................................... -- -- 596 1,391
Shares Issued in Connection with Fund Reorganizations . -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... -- -- 1,463 2,775
Shares Redeemed ....................................... -- -- (7,163) (4,182)
------- ------- -------- --------
Net Investor Share Transactions ......................... -- -- (5,104) (16)
------- ------- -------- --------
Flex Shares:
Shares Issued ......................................... 7,452 2,612 1,626 3,029
Shares Issued in Connection with Crestar Merger ....... -- -- -- --
Shares Issued in Connection with Fund Reorganizations . -- -- -- --
Shares Issued in Connection with ESC Merger ........... -- -- -- --
Shares Issued in Lieu of Cash Distributions ........... -- -- 1,198 2,310
Shares Redeemed (1,094) (70) (7,736) (5,298)
------- ------- -------- --------
Net Flex Share Transactions ............................. 6,358 2,542 (4,912) 41
======= ======= ======== ========
Net Change in Capital Shares .......................... 20,353 10,004 (44,976) (365)
------- ------- -------- --------
</TABLE>
*Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
88 & 89
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
policies of the Trust or which securities are to be purchased or sold in the
funds.
7. 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, 2000, were as follows:
PURCHASES SALES
(000) (000)
---------- -------
Balanced Fund ....................... $ 401,747 $ 415,843
Capital Appreciation Fund ........... 2,501,819 3,380,053
Core Equity Fund .................... 197,528 56,067
E-Commerce Opportunity Fund ......... 327,161 192,385
Growth and Income Fund .............. 690,029 421,330
International Equity Fund ........... 826,079 1,151,751
International Equity Index Fund ..... 279,797 15,490
Life Vision Aggressive Growth Fund .. 33,183 34,007
Life Vision Growth and Income Fund .. 52,356 43,754
Life Vision Moderate Growth Fund .... 125,270 143,249
Mid-Cap Equity Fund ................. 325,395 431,246
Small Cap Growth Stock Fund ......... 571,525 340,046
Small Cap Value Equity Fund ......... 186,805 230,394
Tax Sensitive Growth Stock Fund ..... 840,238 183,201
Value Income Stock Fund ............. 933,611 1,447,331
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,
2000, were $149,169,460 and $174,240,675, respectively.
Subsequent to October 31, 1999, the Funds recognized net capital losses for tax
purposes that have been deferred to 2000 and can be used to offset future
capital gains at May 31, 2000. The Funds also had capital loss carryforwards at
May 31, 2000 as follows:
CAPITAL POST
LOSS POST 10/31
CARRY- 10/31 CURRENCY
OVER EXPIRES EXPIRES EXPIRES DEFERRED LOSS
5/31/00 2006 2007 2008 LOSS DEFERRED
FUND (000) (000) (000) (000) (000) (000)
---- ------ ------ ------- ------- -------- -------
E-Commerce Opportunity Fund $ 18 $ -- $ -- $ 18 $ 4,381 $ --
International Equity Fund 5,954 1,506 4,448 -- -- 4,826
International Equity Index Fund -- -- -- -- -- 431
Small Cap Growth Stock Fund 5,520 1,239 4,281 -- -- --
Small Cap Value Equity Fund 45,722 -- 16,348 29,374 5,503 --
Tax Sensitive Growth Stock Fund 142 -- 142 -- -- --
Value Income Stock Fund -- -- -- -- 169,653 --
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 following Funds had cumulative wash sales for the fiscal year ended May 31,
2000:
FUND AMOUNT
---- ------------
Balanced Fund ............................... $ 2,569,034
Capital Appreciation Fund ................... 29,286,766
E-Commerce Opportunity Fund ................. 4,401,554
Growth and Income Fund ...................... 886,323
International Equity Fund ................... 3,300,504
International Equity Index Fund ............. 338,922
Life Vision Aggressive Growth Fund .......... 173,123
Life Vision Growth and Income Fund .......... 471,968
Life Vision Moderate Growth Fund ............ 940,008
Mid-Cap Equity Fund ......................... 257,489
Small Cap Growth Stock Fund ................. 2,983,811
Small Cap Value Equity Fund ................. 942,118
Tax Sensitive Growth Stock Fund ............. 281,014
Value Income Stock Fund ..................... 416,425
At May 31, 2000, 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, 2000, were as follows:
AGGREGATE AGGREGATE NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
FUND (000) (000) (000)
---- ------------ ------------ ------------
Balanced Fund ................ $ 54,250 $ (15,932) $ 38,318
Capital Appreciation Fund .... 529,690 (73,048) 456,642
Core Equity Fund ............. 18,936 (7,324) 11,612
E-Commerce Opportunity Fund .. 12,506 (15,944) (3,438)
Growth and Income Fund ....... 221,637 (41,799) 179,838
International Equity Fund .... 21,481 (15,177) 6,304
International Equity Index
Fund ...................... 33,364 (18,930) 14,434
Life Vision Aggressive
Growth Fund ............... 2,380 (76) 2,304
Life Vision Growth and
Income Fund ............... 2,115 (362) 1,753
Life Vision Moderate Growth
Fund ...................... 6,417 (1,109) 5,308
Mid-Cap Equity Fund .......... 46,653 (13,488) 33,165
Small Cap Growth Stock Fund .. 117,284 (24,554) 92,730
Small Cap Value Equity Fund .. 16,389 (52,721) (36,332)
Tax Sensitive Growth Stock
Fund ...................... 185,203 (66,827) 118,376
Value Income Stock Fund ...... 109,891 (119,851) (9,960)
8. Concentration of Credit Risk
The E-Commerce Opportunity Fund invests a substantial portion of its assets in
securities in the technology industry. Therefore, it may be more affected by
economic and political developments in that industry than would be comparable
general equity fund.
90
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--------------------------------------------------------------------------------
Each International Fund invests in securities of foreign issuers in various
countries. These investments may involve certain considerations and risks not
typically associated with investments in the United States, as a result of,
among other factors, the possibility of future political and economic
developments and the level of governmental supervision and regulation of
securities markets in the respective countries.
9. 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.
10. CrestFunds Merger
The Board of Directors and shareholders of the CrestFunds approved a
reorganization of the CrestFunds into STI Classic Funds which took place in May
1999. The following table summarizes certain relevant information of the Funds
prior to and immediately after the business combinations in May 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.
SHARES ISSUED NET ASSETS NAV
IN BUSINESS AFTER PER
STI CLASSIC FUNDS 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 Moderate Growth
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 Aggressive Growth
Trust Shares ............... 1,650,909 19,002,404 11.51
11. Fund Reorganizations
On December 10, 1999 the Small Cap Growth Stock Fund and the International
Equity Fund acquired all of the assets of the Sunbelt Equity Fund and Emerging
Markets Equity Fund, respectively, pursuant to the plan of reorganization
approved by Sunbelt Equity Fund and Emerging Markets Equity Fund on December 10,
1999. The following table summarizes certain relevant information of these funds
prior to and immediately after the business combination on December 10, 1999 and
is unaudited.
SHARES
OUTSTANDING UNREALIZED
ON MERGER APPRECIATION
STI CLASSIC FUNDS DATE (DEPRECIATION)
----------------- ------------------ -----------------
Emerging Markets Equity
Trust Shares .................... 2,393,361 $ 55,572*
Sunbelt Equity
Trust Shares .................... 9,176,663 25,562,904
Investor Shares ................. 1,261,749 1,907,642
Flex Shares ..................... 287,227 (1,283,351)
* Includes unrealized gain on investments and unrealized loss on foreign
currency
(1) Represents the accounting survivor in this business combination.
SHARES ISSUED NET ASSETS NAV
IN BUSINESS AFTER PER
STI CLASSIC FUNDS COMBINATION COMBINATION SHARE
----------------- --------------- ---------------- --------
International Equity (1)
Trust Shares ............... 1,794,029 $575,635,094 $12.22
Small Cap Growth Stock (1)
Trust Shares ............... 5,705,132 305,649,316 16.46
Investor Shares ............ 758,425 12,481,372 16.46
Flex Shares ................ 170,464 9,892,809 16.26
91
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NOTES TO FINANCIAL STATEMENTS (concluded)
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
12. ESC Strategic Funds Merger
The Board of Directors and shareholders of the ESC Funds approved a
reorganization of the ESC Funds into STI Classic Funds which took place at the
close of business on March 24, 2000. The following table summarizes certain
relevant information of the Funds prior to and immediately after the business
combinations on March 24, 2000 and is unaudited.
SHARES
OUTSTANDING UNREALIZED
ON MERGER APPRECIATION
ESC FUNDS DATE (DEPRECIATION)
----------------- ------------------ -----------------
Appreciation Fund
Class A ......................... 870,690 $ 2,501,314
Class D ......................... 175,438 (1,297,012)
Small Cap Fund
Class A ......................... 1,275,432 6,276,446
Class D ......................... 480,442 2,865,501
Small Cap II Fund
Class A ......................... 500,936 2,188,506
Class D ......................... 317,826 1,262,314
International Equity
Class A ......................... 170,094 315,475*
Class D ......................... 96,927 (22,816)*
* Includes unrealized gain on investments and unrealized loss on foreign
currency
(1) Represents the accounting survivor in this business combination.
SHARES ISSUED NET ASSETS NAV
IN BUSINESS AFTER PER
STI CLASSIC FUNDS COMBINATION COMBINATION SHARE
----------------- --------------- ---------------- --------
Growth and Income Fund(1)
Investor Shares ............. 502,426 50,200,825 15.90
Flex Shares ................. 97,459 62,797,756 15.76
Small Cap Growth Stock Fund(1)
Investor Shares ............. 1,335,449 47,582,016 20.55
Flex Shares ................. 495,872 27,591,623 20.27
Small Cap Growth Stock Fund(1)
Investor Shares ............. 341,148 47,582,016 20.55
Flex Shares ................. 216,285 27,591,623 20.27
International Equity(1)
Investor Shares ............. 103,172 11,187,283 12.04
Flex Shares ................. 57,124 12,018,530 11.65
13. Subsequent Event
Effective June 30, 2000, SunTrustBanks, Inc. reorganized all of the investment
management functions of its three institutional money management units,
including SunTrust Bank, into Trusco Capital Management, Inc.
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<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000
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, Core Equity, Growth & Income, International Equity Index,
Life Vision Aggressive Growth, Life Vision Growth & Income, and Life Vision
Moderate Growth, Mid-Cap Equity, Small Cap Growth Stock, Small Cap Value Equity,
Tax Sensitive Growth Stock, and Value Income Stock Funds of STI Classic Funds,
and the statements of assets and liabilities, including the schedule of
investments, of the E-Commerce Opportunity and International Equity Funds of STI
Classic Funds (the "Trust") as of May 31, 2000, and the related statements of
operations, changes in net assets, and financial highlights for the periods
presented, excluding the periods 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 changes for the year
ended November 30, 1998 and financial highlights for the periods prior to May
31, 1999, for the Growth & Income Fund and the Life Vision Aggressive Growth,
Life Vision Growth & Income, and Life Vision Moderate 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 auditing standards generally accepted
in the United States. 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, 2000, 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, Core Equity, E-Commerce Opportunity, Growth &
Income, International Equity, International Equity Index, Life Vision Aggressive
Growth, Life Vision Growth & Income, and Life Vision Moderate Growth, Mid-Cap
Equity, Small Cap Growth Stock, Small Cap Value Equity, Tax Sensitive Growth
Stock, and Value Income Stock Funds of STI Classic Funds as of May 31, 2000, 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 accounting principles generally accepted in the United States..
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
July 18, 2000
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<PAGE>
NOTICE TO SHAREHOLDERS
--------------------------------------------------------------------------------
STI CLASSIC EQUITY FUNDS MAY 31, 2000 UNAUDITED
For shareholders that do not have a May 31, 2000 tax year end, this notice is
for informational purposes only. For shareholders with a May 31, 2000, please
consult your tax advisor as to the pertinence of this notice. For the fiscal
year ended May 31, 2000, 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 GAIN INCOME TAX-EXEMPT TOTAL QUALIFYING WITHHOLDING
FUND DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DIVIDENDS (1) PASS THROUGH (2)
-------- ------------ ------------- ---------- ------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
Balanced Fund 36.71% 63.29% --% 100.00% 22.87% --%
Capital Appreciation Fund 65.94% 34.06% --% 100.00% 27.41% --%
Core Equity Fund --% --% --% --% --% --%
E-Commerce Opportunity Fund --% --% --% --% --% --%
Growth and Income Fund 74.02% 25.98% --% 100.00% 92.63% --%
International Equity Fund 58.24% 41.76% --% 100.00% --% 2.80%
International Equity Index Fund 48.14% 51.86% --% 100.00% --% 40.47%
Life Vision Aggressive Growth Fund 59.38% 40.62% --% 100.00% --% --%
Life Vision Growth and Income Fund 43.51% 56.49% --% 100.00% --% --%
Life Vision Moderate Growth Fund 50.19% 49.81% --% 100.00% --% --%
Mid-Cap Equity Fund 100.00% --% --% 100.00% --% --%
Small Cap Growth Stock Fund 52.22% 47.78% --% 100.00% 11.73% --%
Small Cap Value Equity Fund --% 100.00% --% 100.00% 89.39% --%
Value Income Stock Fund 35.76% 64.24% --% 100.00% 71.38% --%
<FN>
--------------------------
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received
deduction and is reflected as a percentage of "Ordinary Income Distributions".
(2) Foreign tax credit pass through represents the amount eligible for the foreign tax credit
and is reflected as a percentage of "Ordinary Income Distributions".
</FN>
</TABLE>
94
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
INVESTMENT ADVISER
Trusco Capital Management, Inc.
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 Fundsinvolves 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.
