SEMI-ANNUAL
................................................................................
FINANCIAL REPORT
................................................................................
STI CLASSIC FUNDS
................................................................................
A Family of Mutual Funds
................................................................................
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
November 30, 1999
[LOGO OMITTED]
<PAGE>
Dear Valued STI Classic Trust Shareholder:
As of November 30, 1999, your STI Classic Funds' assets totaled $20.5 billion or
2.7% more than the totals reported to you as of May 31, 1999, the Funds' fiscal
year end.
The U.S. economic expansion is approaching nine years duration and remains
strong with modest inflation. However, interest rates have risen over a full
percentage point in 1999, as bond investors feared the strong economy and a
tight employment situation would lead to an inflationary surge. Inflation
continues to be well controlled due to strong productivity gains and little
pricing power at corporations. Thus, we believe yields are quite high and
attractive. The Federal Reserve has increased money market rates by
three-quarters of a percentage point in hopes of slowing the growth pace and to
preempt inflationary pressures. Stocks continue to advance as a result of the
excellent economic environment. At some point, we think additional FED rate
increases will drain liquidity from the system and increase competition for
stocks.
The STI Classic Funds introduced two new funds in the fourth quarter of
this year: the Core Equity Fund will focus on companies in the $1 billion plus
market capitalization range with superior growth in earnings, sales and other
traditional valuation measures. The second fund, the E-Commerce Opportunity
Fund, a growth fund, invests in companies that are expected to benefit
substantially from electronic commerce.
With 34 funds now available, the STI Classic Funds are well positioned, as we
approach the new millennium, with a broad range of high quality mutual funds
that utilize a time tested and disciplined investment management approach.
Sincerely,
/s/signature omitted
Anthony R. Gray
Chairman, Chief Investment Officer
STI Capital Management, N.A.
/s/signature omitted
Douglas S. Phillips, CFA
President, Chief Investment Officer
Trusco Capital Management, Inc.
1
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS NOVEMBER 30, 1999
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (15.3%)
FINANCE (11.0%)
Credit Suisse First Boston
5.750%, 07/14/00 $ 25,000 $ 25,000
Daimlerchrysler
5.895%, 03/23/00 25,000 24,554
Den Norske Bank
5.840%, 02/10/00 25,000 24,720
Deutsche Bank Financial
5.320%, 12/01/99 40,000 40,000
5.350%, 02/16/00 35,000 34,600
Merrill Lynch
5.350%, 02/01/00 35,000 34,678
Sigma Finance
5.750%, 07/20/00 25,000 25,000
Ubs Finance
4.930%, 12/21/99 35,000 34,904
Ubs Finance (De)
4.780%, 12/23/99 15,000 14,956
---------
258,412
---------
INDUSTRIAL (4.3%)
Archer Daniels Midland
5.650%, 03/22/00 20,000 19,648
Ford Motor
5.810%, 04/13/00 50,000 48,919
General Electric Capital
5.730%, 08/01/00 35,000 33,641
---------
102,208
---------
Total Commercial Paper
(Cost $360,620) 360,620
---------
CORPORATE OBLIGATIONS (36.1%)
FINANCE (33.0%)
Associates Corporation of
North America
6.000%, 03/15/00 150 150
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCE -- CONTINUED
Bayerische Hypotheken Bank
6.125%, 12/30/99 $ 227 $ 227
Bayerische Hypotheken
Bank, MTN
6.250%, 12/30/99 150 150
6.000%, 01/07/00 416 416
Bayerische Vereinsbank, MTN
6.000%, 12/10/99 206 206
Bear Stearns
5.810%, 06/19/00 35,000 35,000
6.500%, 07/05/00 25,000 25,053
Bear Stearns, MTN (B)
5.573%, 01/18/00 15,000 15,000
Beneficial, MTN (B)
5.583%, 06/01/00 10,000 10,006
Beta Finance, MTN (B)
6.118%, 04/17/00 15,000 15,000
5.520%, 06/12/00 25,000 25,000
5.910%, 08/16/00 30,000 30,000
Branch Banking and Trust (B)
5.770%, 05/25/00 35,000 34,993
Chrysler Financial
9.500%, 12/15/99 7,086 7,098
Chrysler Financial, MTN
6.375%, 01/28/00 3,750 3,757
Commerzbank, MTN
5.125%, 03/07/00 148 148
Credit Suisse First Boston
International, MTN (A)
5.400%, 03/20/00 20,000 20,000
5.590%, 06/08/00 10,000 9,994
Credit Suisse First Union (A) (B)
5.800%, 06/01/00 35,000 34,998
Decrorgan, MTN (B)
5.398%, 07/03/00 40,000 40,000
Deutsche Bank, MTN
6.500%, 12/29/99 677 678
2
<PAGE>
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCE -- CONTINUED
Dresdner Finance, MTN
5.500%, 12/21/99 $ 475 $ 475
First Union (B)
5.810%, 06/01/00 25,000 25,000
Ford Motor Credit, MTN
6.125%, 12/03/99 870 870
8.625%, 01/24/00 344 346
General Electric Capital, MTN
5.430%, 01/17/00 100 100
5.840%, 03/30/00 150 150
GMAC
7.000%, 03/01/00 195 196
GMAC, MTN
6.250%, 01/06/00 500 500
8.500%, 01/31/00 2,000 2,011
Goldman Sachs, MTN
6.100%, 09/25/00 30,000 30,000
Goldman Sachs, MTN (A)
5.280%, 02/24/00 10,000 10,000
Goldman Sachs, MTN (A) (B)
6.321%, 01/21/00 40,000 40,007
Helaba Finance Bank, MTN
5.750%, 12/21/99 464 464
Household Finance, MTN (B)
5.950%, 09/14/00 30,000 29,986
Interamer Development Bank, MTN
6.250%, 12/31/99 145 145
International Bank Reconciliation
and Development, MTN
5.150%, 03/23/00 326 326
J.P. Morgan, MTN (B)
5.800%, 05/04/00 20,000 20,000
Key Bank (B)
5.810%, 07/14/00 39,000 38,988
Merrill Lynch (B)
5.830%, 02/17/00 15,000 15,000
Merrill Lynch, MTN (B)
5.890%, 09/05/00 25,000 24,998
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCE -- CONTINUED
Morgan Stanley Dean Witter
6.250%, 03/15/00 $ 1,500 $ 1,504
Morgan Stanley Dean Witter (B)
5.860%, 01/20/00 35,000 35,000
5.860%, 02/04/00 35,000 35,000
Morgan Stanley Dean
Witter, MTN (B)
6.161%, 02/23/00 10,000 10,003
Rabobank, MTN
6.375%, 12/31/99 223 223
6.000%, 12/31/99 122 122
Sigma Finance (A)
5.305%, 03/13/00 15,000 15,000
Sigma Finance, MTN
5.350%, 05/22/00 25,000 25,000
Southeastern Retirement
Association (B)
5.650%, 12/01/99 21,500 21,500
Tampa Bay Devil Rays (B)
5.650%, 12/01/99 50,500 50,500
Texas State
5.850%, 12/01/99 1,250 1,250
Toronto Dominion Bank, MTN
6.500%, 03/27/00 509 511
Toyota Motor Credit
5.750%, 12/20/99 382 382
Wachovia
7.000%, 12/15/99 2,443 2,445
Xerox Credit, MTN
5.635%, 07/14/00 30,000 29,992
---------
775,868
---------
INDUSTRIAL (2.9%)
Anheuser Busch (B)
5.344%, 06/16/00 40,000 39,987
Anheuser Busch, MTN
7.850%, 12/01/99 1,300 1,300
3
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS NOVEMBER 30, 1999
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL -- CONTINUED
AT&T, MTN
8.250%, 01/11/00 $ 2,000 $ 2,007
Caterpillar Financial, MTN
5.750%, 01/31/00 122 122
Ford Holdings
9.250%, 03/01/00 3,940 3,978
Phillip Morris (B)
9.250%, 02/15/00 900 907
6.150%, 03/15/00 11,900 11,926
Unilever NV, MTN
8.000%, 12/08/99 110 110
Wal-Mart (B)
5.650%, 02/01/00 8,000 8,007
---------
68,344
---------
UTILITIES (0.2%)
BellSouth
6.500%, 02/01/00 500 501
Province of Quebec
9.125%, 03/01/00 4,000 4,038
Southern California Edison
8.250%, 02/01/00 650 653
---------
5,192
---------
Total Corporate Obligations
(Cost $849,404) 849,404
---------
CERTIFICATES OF DEPOSIT (9.6%)
Albertson's Inc. (A) (B)
5.408%, 07/14/00 40,000 39,990
Amex Centurion Bank (B)
5.910%, 02/25/00 30,000 30,000
Bayerische Hypo
5.270%, 03/03/00 20,000 19,995
Branch Banking and Trust (B)
5.800%, 02/01/00 20,000 19,999
Canadian Imperial Bank
5.120%, 02/23/00 15,000 14,998
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- CONTINUED
Commerzbank AG
5.160%, 02/25/00 $ 13,000 $ 12,998
First USA Bank
6.040%, 08/04/00 40,000 40,000
Royal Bank of Canada
6.180%, 10/25/00 35,000 34,979
Toronto Dominion Bank
5.270%, 03/03/00 12,500 12,497
---------
Total Certificates of Deposit
(Cost $225,456) 225,456
---------
ASSET-BACKED SECURITIES (0.0%)
Americredit Auto Receivables
Trust, Ser 1999-B, Cl A1
4.917%, 06/12/00 472 472
---------
Total Asset-Backed Securities
(Cost $472) 472
---------
TAXABLE MUNICIPAL BOND (1.3%)
California Housing Finance
Agency (MBIA), (B)
5.600%, 12/02/99 30,000 30,000
---------
Total Taxable Municipal Bond
(Cost $30,000) 30,000
---------
BANK NOTES (5.1%)
American Express Centurion (B)
5.800%, 05/08/00 15,000 15,000
5.810%, 06/02/00 35,000 35,000
Branch Banking and Trust (B)
5.910%, 09/05/00 20,000 20,000
Fcc National Bank
6.065%, 08/14/00 25,000 24,994
First Union (B)
5.780%, 05/11/00 25,000 24,998
---------
Total Bank Notes
(Cost $119,992) 119,992
---------
4
<PAGE>
- --------------------------------------------------------------------------------
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS (4.3%)
Aim Liquid Assets Portfolio (B) $100,000 $ 100,000
----------
Total Cash Equivalents
(Cost $100,000) 100,000
----------
REPURCHASE AGREEMENTS (27.7%)
ABN AMRO 5.67%, dated
11/30/99, matures 12/01/99,
repurchase price $190,071,326
(collateralized by various FNMA
obligations: total market value
$193,872,752) (C) 190,071 190,071
Barclays 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $74,188,519 (collateralized
by FHLB and FNMA obligations:
total market value
$75,673,018) (C) 74,189 74,189
Deutsche Bank 5.67%, dated
11/30/99, matures 12/01/99,
repurchase price $148,114,469
(collateralized by FHLMC
obligation: total market value
$151,076,758) (C) 148,114 148,114
Greenwich 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $47,083,530 (collateralized
by various GNMA obligations: total
market value $48,026,182) (C) 47,084 47,084
Merrill Lynch 5.67%, dated
11/30/99, matures 12/01/99,
repurchase price $51,302,380
(collateralized by FHLB, FHLMC,
and FNMA obligations: total
market value $52,331,476) (C) 51,302 51,302
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
Morgan Stanley 5.67%, dated
11/30/99, matures 12/01/99,
repurchase price $15,000,000
(collateralized by various FNMA
obligations: total market value
$15,846,074) (C) $ 15,000 $ 15,000
Salomon Brothers 5.67%, dated
11/30/99, matures 12/01/99,
repurchase price $99,884,344
(collateralized by various FHLMC
and FNMA obligations: total
market value $101,882,030) (C) 99,885 99,885
Warburg 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $26,148,282 (collateralized
by various FNMA obligations:
total market value
$26,672,060) (C) 26,148 26,148
----------
Total Repurchase Agreements
(Cost $651,793) 651,793
----------
Total Investments (99.4%)
(Cost $2,337,737) 2,337,737
----------
OTHER ASSETS AND LIABILITIES, NET (0.6%) 13,890
----------
5
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS NOVEMBER 30, 1999
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Institutional Class
(unlimited authorization --- no par
value) based on 2,351,615,218
outstanding shares of beneficial interest $2,351,615
Undistributed net investment income 1
Accumulated net realized gain on
investments 11
----------
Total Net Assets (100.0%) $2,351,627
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $1.00
==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 11.
6
<PAGE>
- --------------------------------------------------------------------------------
(UNAUDITED)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION (4.8%)
SLMA (B)
5.625%, 12/16/99 $35,000 $ 35,000
--------
Total U.S. Government Agency
Obligation
(Cost $35,000) 35,000
--------
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (67.3%)
FHLB
4.966%, 02/25/00 30,000 29,994
5.739%, 03/03/00 30,000 30,000
5.160%, 03/08/00 30,000 29,996
5.125%, 05/19/00 20,000 19,993
FHLB (B)
5.760%, 01/13/00 40,000 40,000
5.710%, 09/22/00 40,000 39,991
5.880%, 10/13/00 30,000 30,000
FHLBDN
5.810%, 09/15/00 20,000 19,118
FNMA
4.970%, 04/12/00 20,000 19,996
5.940%, 05/05/00 25,000 24,996
5.120%, 05/26/00 10,000 9,993
5.460%, 06/21/00 30,000 29,993
5.785%, 07/07/00 20,000 19,333
FNMA (B)
5.730%, 09/29/00 50,000 49,988
5.695%, 11/06/00 25,000 24,979
FNMADN
5.485%, 08/11/00 20,000 19,232
5.900%, 10/06/00 20,000 19,037
FNMA, MTN (B)
5.433%, 11/22/00 30,000 29,977
--------
Total U.S. Agency Mortgage-Backed Obligations
(Cost $486,616) 486,616
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (27.5%)
ABN-AMRO 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $28,684,782 (collateralized
by various GNMA obligations:
total market value
$29,258,478) (C) $73,926 $ 73,926
Deutsche Bank 5.67%, dated
11/30/99, matures 12/01/99,
repurchase price $73,925,874
(collateralized by a FHLMC
obligation: total market value
$75,404,392) (C) 28,685 28,685
CIBC 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $25,108,887 (collateralized
by FHLMC obligations: market
value $25,611,065) (C) 25,109 25,109
Greenwich 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $65,141,095 (collateralized
by FHLMC obligations: total market
value $66,447,257) (C) 65,141 65,141
JP Morgan 5.67%, dated 11/30/99,
matures 12/01/99, repurchase
price $6,000,000 (collateralized
by FNMA obligations: total
market value $6,120,001) (C) 6,000 6,000
--------
Total Repurchase Agreements
(Cost $198,861) 198,861
--------
Total Investments (99.6%)
(Cost $720,477) 720,477
--------
OTHER ASSETS AND LIABILITIES, NET (0.4%) 2,708
--------
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS NOVEMBER 30, 1999
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Institutional Class
(unlimited authorization -- no par
value) based on 723,203,572
outstanding shares of beneficial interest $723,204
Undistributed net investment income 6
Accumulated net realized loss
on investments (25)
--------
Total Net Assets (100.0%) $723,185
========
Net Asset Value, Offering and
Redemption Price Per Share --
Institutional Shares $1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 11.
8
<PAGE>
- --------------------------------------------------------------------------------
(UNAUDITED)
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (10.7%)
U.S. Treasury Bill
5.085%, 02/24/00 $150,000 $ 148,174
U.S. Treasury Note
5.500%, 02/29/00 22,000 22,034
----------
Total U.S. Treasury Obligations
(Cost $170,208) 170,208
----------
CASH EQUIVALENTS (8.8%)
AIM Institutional Treasury
Portfolio (B) 70,000 70,000
SEI Daily Income Trust Treasury II
Portfolio (B) 70,000 70,000
----------
Total Cash Equivalents
(Cost $140,000) 140,000
----------
REPURCHASE AGREEMENTS (80.8%)
ABN-Amro 5.61%, dated 11/30/99,
matures 12/01/99, repurchase
price $372,185,483 (collateralized
by a U.S. Treasury Note: total
market value $379,629,269) (C) 372,185 372,186
Barclays 5.61%, dated 11/30/99,
matures 12/01/99, repurchase
price $70,136,843 (collateralized
by U.S. Treasury Note: total
market value $71,539,959) (C) 70,137 70,137
Duetsche Bank 5.61%, dated
11/30/99, matures 12/01/99,
repurchase price $70,415,354
(collateralized by various U.S.
Treasury Notes and U.S. Treasury
Bonds: total market value
$71,823,914) (C) 70,415 70,415
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
Greenwich 5.61%, dated 11/30/99,
matures 12/01/99, repurchase
price $70,294,497 (collateralized
by U.S. Treasury Bond: total
market value $71,704,723) (C) $70,294 $ 70,295
J.P. Morgan 5.61%, dated 11/30/99,
matures 12/01/99, repurchase
price $70,397,295 (collateralized
by a U.S. Treasury Note: total
market value $71,805,513) (C) 70,397 70,397
Merrill Lynch 5.61%, dated
11/30/99, matures 12/01/99,
repurchase price $70,148,283
(collateralized by U.S. Treasury
STRIPS: total market value
$71,554,302) (C) 70,148 70,148
Morgan Stanley 5.61%, dated
11/30/99, matures 12/01/99,
repurchase price $70,097,255
(collateralized by a U.S. Treasury
Bond: total market value
$71,862,427) (C) 70,097 70,097
Salomon Brothers 5.61%, dated
11/30/99, matures 12/01/99,
repurchase price $69,973,584
(collateralized by U.S. Treasury
Bond: total market value
$71,535,014) (C) 69,974 69,974
SBC Warburg 5.61%, dated
11/30/99, matures 12/01/99,
repurchase price $360,766,266
(collateralized by a U.S. Treasury
Bond: total market value
$367,982,373) (C) 360,766 360,766
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS NOVEMBER 30, 1999
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- CONTINUED
Goldman Sachs
5.40%, dated 11/30/99, matures
12/01/99, repurchase price $65,000,000
(collateralized by U.S. Treasury
Bond: total market value
$68,345,913) (C) $65,000 $ 65,000
----------
Total Repurchase Agreement
(Cost $1,289,415) 1,289,415
----------
Total Investments (100.3%)
(Cost $1,599,623) 1,599,623
----------
OTHER ASSETS AND LIABILITIES, NET (-0.3%) (4,659)
----------
NET ASSETS:
Fund shares of the Institutional Class
(unlimited authorization -- no par
value) based on 301,563,643
outstanding shares of beneficial interest 301,564
Fund shares of the Corporate Trust Class
(unlimited authorization -- no par
value) based on 1,293,366,984
outstanding shares of beneficial interest 1,293,367
Undistributed net investment income 2
Accumulated net realized gain
on investments 31
----------
Total Net Assets (100.0%) $1,594,964
==========
Net Asset Value, Offering and
Redemption Price Per Share --
Institutional Shares $1.00
==========
Net Asset Value, Offering and
Redemption Price Per Share --
Corporate Trust Shares $1.00
==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 11.
10
<PAGE>
- --------------------------------------------------------------------------------
(UNAUDITED)
KEY TO ABBREVIATIONS USED IN THE
STATEMENT OF NET ASSETS
Cl Class
FHLB Federal Home Loan Bank
FHLBDN Federal Home Loan Bank Discount Note
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FNMADN Federal National Mortgage Association Discount Note
GNMA Government National Mortgage Association
MBIA Security insured by the Municipal Bond Investors
Assurance Corporation
MTN Medium Term Note
Ser Series
SLMA Student Loan Marketing Association
STRIPS Separately Traded Registered Interest and Principal Security
(A) Private Placement Security
(B) Adjustable Rate Security. The rate reported on the Statement
of Net Assets is the rate in effect on November 30, 1999.
The date shown is the next scheduled reset date.
(C) Tri-Party Repurchase Agreement
11
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<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000)
- ------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 1999 (UNAUDITED)
CLASSIC CLASSIC CLASSIC
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET SECURITIES MONEY SECURITIES MONEY
FUND MARKET FUND MARKET FUND
------------- --------------- ---------------
06/01/99- 06/01/99- 06/01/99-
11/30/99 11/30/99 11/30/99
-------- -------- --------
Income:
<S> <C> <C> <C>
Interest Income $55,293 $16,758 $32,762
------- ------- -------
Expenses:
Investment Advisory Fees 2,072 646 1,291
Investment Advisory Fees Waived/Reimbursed (331) (128) (206)
Administrator Fees 734 229 458
Administrator Fees Waived (207) (43) (129)
Transfer Agent Fees 17 16 6
Transfer Agent Out of Pocket Fees 93 29 58
Printing Fees 52 16 32
Custody Fees 41 7 26
Professional Fees 41 13 26
Trustee Fees 10 3 6
Registration Fees 41 15 26
Distribution Fees -- -- 1,036
Insurance and Other Fees 26 5 3
Amortization of Deferred Organizational Costs 1 -- 1
------- ------- -------
Total Expenses 2,590 808 2,634
------- ------- -------
Net Investment Income 52,703 15,950 30,128
------- ------- -------
Net Realized Gain on Securities Sold -- -- 5
------- ------- -------
Increase in Net Assets Resulting from Operations $52,703 $15,950 $30,133
======= ======= =======
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
- ------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIODS ENDED NOVEMBER 30, MAY 31, AND JANUARY 31, 1999
CLASSIC CLASSIC CLASSIC
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET SECURITIES MONEY SECURITIES MONEY
FUND MARKET FUND MARKET FUND
------------------------------- -------------------------------- ---------------------------------
06/01/99- 02/01/99- 02/01/98- 06/01/99- 02/01/99- 02/01/98- 06/01/99- 06/01/98-
11/30/99 05/31/99 01/31/99 11/30/99 05/31/99 01/31/99 11/30/99 05/31/99
--------- --------- --------- ---------- --------- ---------- --------- ----------
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 52,703 $ 15,177 $ 42,861 $ 15,950 $ 10,264 $ 34,235 $ 30,128 $ 10,844
Net Realized Gain
on Investments -- 1 -- -- -- -- 5 25
---------- ---------- --------- -------- --------- --------- --------- ---------
Increase in Net Assets
Resulting from
Operations 52,703 15,178 42,861 15,950 10,264 34,235 30,133 10,869
---------- ---------- --------- -------- --------- --------- --------- ---------
Distributions to Shareholders:
Net Investment Income:
Trust Shares (52,700) (15,172) (42,874) (15,944) (10,249) (34,250) (6,140) (10,842)
Corporate Trust Shares -- -- -- -- -- -- (23,990) --
---------- ---------- --------- -------- --------- --------- --------- ---------
Total Distributions (52,700) (15,172) (42,874) (15,944) (10,249) (34,250) (30,130) (10,842)
---------- ---------- --------- -------- --------- --------- --------- ---------
Capital Transactions:
Institutional Shares:
Proceeds from
Shares Issued 3,205,785 2,243,802 7,764,540 1,073,591 1,958,641 6,897,369 729,276 1,267,762
Shares Issued in
Connection with Crestar
Arbor Merger -- 1,072,229 -- -- -- -- -- --
Reinvestments of
Cash Distributions 33,604 7,086 10,074 5,597 3,113 13,467 6,594 7,876
Cost of Shares Redeemed (2,776,248)(2,319,130)(7,630,948) (973,098)(2,032,711)(7,012,200) (717,801)(1,132,474)
---------- ---------- --------- -------- --------- --------- --------- ---------
Increase (Decrease) in
Net Assets from
Institutional Share
Transactions 463,141 1,003,987 143,666 106,090 (70,957) (101,364) 18,069 143,164
---------- ---------- --------- -------- --------- --------- --------- ---------
Corporate Trust Shares:
Proceeds from
Shares Issued -- -- -- -- -- -- 2,345,918 --
Cost of Shares Redeemed -- -- -- -- -- -- (1,052,551) --
---------- ---------- --------- -------- --------- --------- --------- ---------
Increase in
Net Assets from Corporate
Trust Share
Transactions -- -- -- -- -- -- 1,293,367 --
---------- ---------- --------- -------- --------- --------- --------- ---------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
- ------------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
CLASSIC CLASSIC CLASSIC
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET SECURITIES MONEY SECURITIES MONEY
FUND MARKET FUND MARKET FUND
-------------------------------- ------------------------------ --------------------
06/01/99- 02/01/99- 02/01/98- 06/01/99- 02/01/99- 02/01/98- 06/01/99- 06/01/98-
11/30/99 05/31/99 01/31/99 11/30/99 05/31/99 01/31/99 11/30/99 05/31/99
--------- --------- --------- --------- --------- --------- --------------------
Total Increase
(Decrease)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
in Net Assets 463,144 1,003,993 143,653 106,096 (70,942) (101,379) 1,311,439 143,191
---------- ---------- --------- --------- --------- --------- ---------- ---------
Net Assets:
Beginning of Period 1,888,483 884,490 740,837 617,089 688,031 789,410 283,525 140,334
---------- ---------- --------- --------- --------- --------- ---------- ---------
End of Period $2,351,627 $1,888,483 $ 884,490 $ 723,185 $ 617,089 $ 688,031 $1,594,964 $ 283,525
========== ========== ========= ========= ========= ========= ========== =========
(1) Shares Issued and Redeemed:
Institutional Shares:
Shares Issued 3,205,785 2,243,802 7,764,540 1,073,591 1,958,641 6,897,369 729,276 1,267,762
Shares Issued in
Connection with
Crestar Arbor Merger -- 1,072,211 -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions 33,604 7,086 10,074 5,597 3,113 13,467 6,594 7,876
Shares Redeemed (2,776,248)(2,319,131)(7,630,948) (973,098)(2,032,711)(7,012,200) (717,801)(1,132,474)
---------- ---------- --------- --------- --------- --------- ---------- ---------
Net Institutional
Share Transactions 463,141 1,003,968 143,666 106,090 (70,957) (101,364) 18,069 143,164
---------- ---------- --------- --------- --------- --------- ---------- ---------
Corporate Trust Shares:
Shares Issued -- -- -- -- -- -- 2,345,918 --
Shares Redeemed -- -- -- -- -- -- (1,052,551) --
---------- ---------- --------- --------- --------- --------- ---------- ---------
Net Corporate Trust
Share Transactions -- -- -- -- -- -- 1,293,367 --
---------- ---------- --------- --------- --------- --------- ---------- ---------
Net Change in Capital
Shares 463,141 1,003,968 143,666 106,090 (70,957) (101,364) 1,311,436 143,164
========== ========== ========= ========= ========= ========= ========== =========
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIODS FROM INCEPTION THROUGH NOVEMBER 30, 1999
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
NET NET ASSET NET ASSETS
NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END TOTAL END OF
BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD RETURN+ PERIOD (000)
------------------- ---------- --------------------- ----------- --------- -----------
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A)
Institutional Shares
<S> <C> <C> <C> <C> <C> <C> <C>
1999** $1.00 0.03 (0.03) $1.00 2.57% $2,351,627
1999* 1.00 0.02 (0.02) 1.00 1.58 1,888,483
For the years ended January 31:
1999 1.00 0.05 (0.05) 1.00 5.46 884,490
1998 1.00 0.06 (0.06) 1.00 5.66 740,837
1997 1.00 0.05 (0.05) 1.00 5.45 477,435
1996(B) 1.00 0.02 (0.02) 1.00 1.42 382,632
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (C)
Institutional Shares
1999** $1.00 0.02 (0.02) $1.00 2.50% $ 723,185
1999* 1.00 0.02 (0.02) 1.00 1.56 617,089
For the years ended January 31:
1999 1.00 0.05 (0.05) 1.00 5.30 688,031
1998 1.00 0.05 (0.05) 1.00 5.52 789,410
1997 1.00 0.05 (0.05) 1.00 5.29 586,731
1996 1.00 0.06 (0.06) 1.00 5.88 514,870
1995(D) 1.00 0.03 (0.03) 1.00 4.98 579,422
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
Institutional Shares
1999** $1.00 0.02 (0.02) $1.00 2.43% $ 301,594
1999 1.00 0.05 (0.05) 1.00 4.97 283,525
1998 1.00 0.05 (0.05) 1.00 5.50 140,334
1997(E) 1.00 0.02 (0.02) 1.00 2.46 20,238
Corporate Trust Shares
1999**(F) $1.00 0.02 (0.02) $1.00 2.32% $1,293,370
<FN>
(A) On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its
assets and certain liabilities for shares of the Classic Institutional Cash
Management Money Market Fund. The Arbor Prime Obligations 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 17, 1999 have been carried forward in these financial
highlights.
(B) Commenced operations on October 25, 1995. All ratios for the period have
been annualized.
(C) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged
all of its assets and certain liabilities for shares of the Classic
Institutional U.S. Government Securities Money Market Fund. The Arbor U.S.
Government Securities Money 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.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
================================================================================
(UNAUDITED)
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES TO INCOME TO
RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS
EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS
AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS)
------------------- -------------------- -------------------- ------------------
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A)
Institutional Shares
<S> <C> <C> <C> <C> <C> <C>
1999** 0.25% 5.09% 0.30% 5.04%
1999* 0.25 4.79 0.35 4.69
For the years ended January 31:
1999 0.23 5.31 0.35 5.19
1998 0.20 5.52 0.36 5.36
1997 0.20 5.33 0.38 5.15
1996(B) 0.20 5.61 0.40 5.41
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (C)
Institutional Shares
1999** 0.25% 4.93% 0.30% 4.88%
1999* 0.25 4.73 0.36 4.62
For the years ended January 31:
1999 0.23 5.18 0.36 5.05
1998 0.20 5.39 0.37 5.22
1997 0.20 5.17 0.37 5.00
1996 0.20 5.72 0.37 5.55
1995(D) 0.20 4.98 0.38 4.80
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
Institutional Shares
1999** 0.25% 4.81% 0.32% 4.74%
1999 0.20 4.83 0.47 4.56
1998 0.18 5.34 0.38 5.14
1997(E) 0.09 5.27 0.51 4.85
Corporate Trust Shares
1999**(F) 0.45% 4.60% 0.52% 4.53%
<FN>
(D) Commenced operations on August 1, 1994. All ratios for the period have
been annualized.
(E) Commenced operations on December 12, 1996. All ratios for the period
have been annualized.
(F) Commenced operations on June 3, 1999. All ratios for the period have been
annualized.
+ Returns are for the period indicated and have not been annualized.
* For the period February 1, 1999 to May 31, 1999. All ratios for the period
have been annualized.
** For the six month period ended November 30, 1999. All
ratios have been annualized.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
1. Organization:
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with thirty-six portfolios as of November 30,
1999: the Balanced Fund, the Capital Appreciation Fund (formerly the Capital
Growth Fund), the Emerging Markets Equity Fund, the Growth and Income Fund, the
International Equity Fund, the International Equity Index Fund, the Life Vision
Balanced Portfolio, the Life Vision Growth and Income Portfolio, the Life Vision
Maximum Growth Portfolio, the Mid-Cap Equity Fund, the Small Cap Equity Fund,
the Small Cap Growth Stock Fund, the Sunbelt Equity Fund, the Tax Sensitive
Growth Stock Fund, the Value Income Stock Fund, the Core Equity Fund, the
E-Commerce Opportunity Fund, (collectively the "Equity Funds"), the Florida
Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade Bond
Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal
Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond
Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government
Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia
Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality
Money Market Fund, the Tax-Exempt Money Market Fund, the Tax-Free Money Market
Fund, the U.S. Government Securities, the U.S. Treasury Money Market Fund
(collectively the "Retail Money Market Funds"), the Classic Institutional Cash
Management Money Market Fund, the Classic Institutional U.S. Government
Securities Money Market Fund and the Classic Institutional U.S. Treasury
Securities Money Market Fund, (collectively the "Institutional Money Market
Funds" or the "Funds"). The assets of each portfolio are segregated, and a
shareholder's interest is limited to the fund in which shares are held. Each
fund's prospectus provides a description of the fund's investment objectives,
policies and strategies. The financial statements presented herein are those of
the Institutional Money Market Funds. The financial statements of the Equity
Funds, the Fixed Income Funds and the Retail Money Market Funds are not
presented herein, but are presented separately.
On February 17, 1999 and February 19, 1999, respectively, the Board of Trustees
of the STI Classic Funds and Board of Trustees of the Arbor Funds approved an
Agreement and Plan of Reorganization (the "Reorganization Agreement") providing
for the transfer of all assets and certain stated liabilities of the Arbor Funds
in exchange for the issuance of shares in the Funds in a tax-free reorganization
(see Note 7).
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 7,
the STI Classic Funds acquired certain Arbor Funds in a tax-free business
combination. While each Fund now exists as a STI Classic Fund, both the
surviving funds for accounting purposes are Arbor Funds. 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 Funds are stated a
amortized cost, which approximates market value.
18
<PAGE>
================================================================================
(UNAUDITED)
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).
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 ratably to maturity and are
included in interest income.
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.
OTHER -- Expenses that are directly related to a specific Fund are charged
to that Fund. Class specific expenses are borne by that class. Other
operating expenses of the Trust are pro-rated to the Funds on the basis of
relative net assets. Fund expenses are pro-rated to the respective classes
on the basis of relative net assets.
Distributions from net investment income of each of the Funds are declared
on each business day and paid to shareholders on a monthly basis. Any net
realized capital gains on sales of securities are distributed to
shareholders at least annually.
USE OF ESTIMATES -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that effect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and reported amounts
of revenues and expenses during the reporting period. Actual amounts could
differ from these estimates.
3. Organization Costs and Transactions with Affiliates:
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.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
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 SEIInvestments to manage the
investments of repurchase agreements for the Funds. For its services the
Liquidity Desk received $905,023 for the year ended November 30, 1999.
4. Administration and Transfer Agency Servicing 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, and May 17, 1999, administrative and accounting services
were provided to the Arbor U.S. Government Securities Money Fund and Arbor Prime
Obligations Fund by SEI Investments Mutual Funds Services who was entitled to
receive a fee at an annual rate of .08% of the average daily net assets of these
funds. A portion of these fees were voluntarily waived.
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.
5. Investment Advisory and Custodian Agreements:
The Trust and Trusco Capital Management, Inc. (the "Investment Advisor") have
entered into an advisory agreement dated July 15, 1993.
Under terms of the respective agreements, the Funds are charged the following
annual fees based upon average daily net assets:
MAXIMUM INSTITUTIONAL CORPORATE
ANNUAL SHARE TRUST SHARE
ADVISORY MAXIMUM MAXIMUM
FEE EXPENSE EXPENSE
------- ------------ ----------
Classic Institutional
Cash Management
Money Market Fund .20% .25% --
Classic Institutional
U.S. Government
Securities Money
Market Fund .20% .25% --
Classic Institutional
U.S. Treasury
Money Market Fund .20% .25% .45%
The Investment Advisor and the Administrator 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 24, 1999, and May 17, 1999, Crestar Asset Management Company
("CAMCO") provided Investment Advisory services to certain Arbor Funds. CAMCO
was paid for advisory services to each Fund at an annual rate of .10% and .11%
of the average daily net assets for Arbor U.S. Government Securities Money and
Arbor Prime Obligations Funds, respectively.
SunTrust Bank, Atlanta, acts as custodian for the Funds. Fees of the Custodian
are paid on the basis of the net assets of the Funds. The Custodian plays no
role in determining the investment policies of the Trust or which securities are
to be purchased or sold in the Funds.
20
<PAGE>
================================================================================
(UNAUDITED)
6. Concentration of Credit Risk:
The Classic Institutional Cash Management Money Market Fund invests in high
quality money market instruments issued by corporations and the U.S. Government
and rated by one or more nationally recognized statistical rating organizations,
or, if not rated determined by the Advisor to be of comparable quality. The
Classic Institutional U.S. Government Securities Money Market Fund invests in
U.S. Treasury obligations, U.S. Government subsidiary corporation securities
which are backed by the full faith and credit of the U.S. government and
repurchase agreements with approved dealers collateralized by U.S. Treasury
securities and U.S. Government subsidiary corporation securities. The Classic
Institutional U.S. Treasury Securities Money Market Fund invests in U.S.
Treasury Obligations, which are backed by the full faith and credit of the U.S.
Government and repurchase agreements with approved dealers collateralized by
U.S. Treasury securities.
7. Arbor Funds Merger:
The Board of Trustees and shareholders of certain of the Arbor Funds approved a
reorganization of certain of the Arbor Funds into the STI Classic Funds which
took place at the close of business on May 17, 1999 for the Arbor Prime
Obligations Fund and May 24, 1999 for the Arbor U.S. Government Securities Money
Fund.
The following table summarizes certain relevant information of the funds prior
to and immediately after the business combinations on May 17, 1999 and May 24,
1999 and is unaudited:
<TABLE>
<CAPTION>
SHARES
OUTSTANDING SHARES ISSUED NET ASSETS NAV
ON MERGER IN BUSINESS AFTER PER
ARBOR FUND DATE STI CLASSIC FUND COMBINATION COMBINATION SHARE
------------------------- ----------- ------------------ ------------- ----------- --------
<S> <C> <C> <C> <C> <C>
U.S. Government Securities 684,672,707 Classic Institutional U.S. Government 684,672,707 684,647,218 $1.00
Money Fund (1) Securities Money Market Fund
Prime Obligations Fund (1) 711,747,295 Classic Institutional Cash Management 711,747,295 1,783,974,148 1.00
Money Market Fund
</TABLE>
(1) Represents the accounting survivor in this business combination.
21
<PAGE>
INVESTMENT ADVISOR
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 Funds involves risk,
including the possible loss of principal. There
is no guarantee that any STI Classic Fund will
achieve its investment objective. The STI
Classic Funds are advised by affiliates of
SunTrust Banks, Inc.
DISTRIBUTOR
SEI Investments Distribution Co.
This information must be preceded or
accompanied by a current prospectus
for each Fund described.
