SEMI-ANNUAL
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FINANCIAL REPORT
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STI CLASSIC FUNDS
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A Family of Mutual Funds
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PRIME QUALITY MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
TAX-FREE MONEY MARKET FUND
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
November 30, 1999
[STI Classic Funds Logo Omitted]
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[blank page]
<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>
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
PRIME QUALITY MONEY MARKET FUND
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FACE AMOUNT
(000) VALUE (000)
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COMMERCIAL PAPER (25.4%)
FINANCE (17.5%)
Allstate
5.800%, 01/19/00 $ 7,650 $ 7,590
Arco British
5.950%, 01/18/00 9,745 9,668
Beta Finance
5.440%, 01/24/00 6,000 5,951
5.800%, 03/20/00 33,453 32,860
Cargill
5.420%, 01/20/00 23,000 22,827
First Chicago Finance
5.710%, 01/27/00 27,000 26,755
5.970%, 01/27/00 1,000 991
General Electric Capital
4.740%, 12/01/99 25,000 25,000
Ford Motor Credit
5.630%, 12/08/99 2,700 2,697
GMAC
5.950%, 02/17/00 50,000 49,355
Mobile Australia Finance
5.700%, 12/03/99 2,166 2,165
Morgan Stanley Dean Witter (C)
5.860%, 01/20/00 136,000 135,999
Nestle Capital
5.520%, 12/03/99 3,253 3,252
Northwest Financial
5.690%, 02/01/00 80,000 79,216
Progress Capital
6.100%, 01/31/00 42,800 42,358
6.150%, 02/02/00 15,178 15,015
5.900%, 12/03/99 12,200 12,196
Sigma Finance (C)
5.630%, 03/15/00 50,000 49,999
6.243%, 04/04/00 48,000 48,000
Sony Capital
5.800%, 01/31/00 47,500 47,033
5.810%, 01/31/00 33,300 32,972
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FACE AMOUNT
(000) VALUE (000)
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FINANCE -- CONTINUED
Toyota Motor Credit
5.600%, 12/15/99 $ 4,296 $ 4,287
UBS Finance
4.890%, 12/13/99 8,815 8,801
USB Financial
4.780%, 12/20/99 25,000 24,937
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689,924
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INDUSTRIAL (5.3%)
American Home Products
5.750%, 01/24/00 12,700 12,590
5.800%, 01/26/00 1,500 1,486
5.770%, 02/11/00 39,695 39,237
5.770%, 02/14/00 10,305 10,181
American Greetings
5.650%, 12/07/99 13,000 12,988
Becton Dickinson
5.950%, 01/24/00 5,000 4,955
Edison International
5.730%, 02/10/00 25,000 24,717
General Electric
5.920%, 01/25/00 25,000 24,774
Lubrizol
5.550%, 12/07/99 12,000 11,989
Merck
5.640%, 02/04/00 8,000 7,919
PPG Industries
5.550%, 12/09/99 2,000 1,998
Rio Tinto
5.570%, 12/07/99 500 500
Times Mirror
5.760%, 03/28/00 25,000 24,528
Wal-Mart Stores
5.600%, 12/13/99 16,658 16,627
5.570%, 12/13/99 4,100 4,092
5.570%, 12/17/99 12,200 12,170
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210,751
---------
2
<PAGE>
================================================================================
(UNAUDITED)
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FACE AMOUNT
(000) VALUE (000)
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UTILITIES (2.6%)
Consolidated Natural Gas
5.450%, 01/27/00 $10,000 $ 9,914
5.580%, 12/10/99 6,149 6,140
Georgia Power
5.750%, 02/24/00 25,000 24,661
Kansas City Power & Light
6.030%, 01/27/00 25,000 24,761
6.050%, 01/31/00 25,000 24,744
Pacific Gas & Electric
5.930%, 01/27/00 11,300 11,194
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101,414
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Total Commercial Paper
(Cost $1,002,089) 1,002,089
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CORPORATE OBLIGATIONS (36.3%)
FINANCE (29.7%)
American General Finance
8.000%, 02/15/00 10,993 11,045
Amsouth Bank (C)
5.643%, 09/22/00 50,000 49,988
Associates Corporation of
North America
8.250%, 12/01/99 3,000 3,000
AT&T Capital, MTN (C)
6.963%, 06/14/00 50,000 50,371
6.830%, 12/01/00 30,000 30,206
Banc One, MTN (C)
5.288%, 03/24/00 1,803 1,802
5.514%, 06/23/00 33,945 33,931
5.571%, 10/06/00 40,000 39,987
6.090%, 11/17/00 500 500
Bear Stearns, MTN (C)
5.573%, 01/18/00 15,000 15,000
Bear Stearns, Ser B, MTN
5.300%, 03/09/00 20,000 20,000
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FACE AMOUNT
(000) VALUE (000)
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FINANCE -- CONTINUED
Bear Stearns Co, Ser B, MTN (C)
5.650%, 09/15/00 $ 5,000 $ 5,003
6.020%, 10/05/00 50,000 50,000
Bear Stearns Inc, Ser B, MTN (C)
6.236%, 10/10/00 5,450 5,445
Bear Stearns (C)
5.689%, 10/24/00 15,000 14,992
Beneficial, MTN
7.180%, 12/20/99 2,500 2,503
Beneficial, MTN (C)
5.583%, 06/01/00 40,000 40,023
Beta Finance (A)
5.200%, 03/01/00 50,000 49,982
Beta Finance, MTN
6.250%, 02/18/00 631 632
Branch Banking & Trust (C)
5.930%, 09/15/00 25,000 24,984
Cargill, MTN (A)
5.950%, 05/15/37 2,250 2,248
Caterpillar Finance, MTN (C)
6.104%, 07/10/00 18,000 18,000
5.479%, 09/25/00 25,000 24,994
Chrysler Financial
9.500%, 12/15/99 22,000 22,036
Chrysler Financial, MTN
6.375%, 01/28/00 17,000 17,033
Credit Suisse First Boston
International Gue, MTN (A)
5.400%, 03/20/00 50,000 50,000
CS First Boston (A)
5.290%, 03/20/00 15,000 15,000
Diageo Capital PLC
5.475%, 08/24/00 80,000 80,002
Export Development, MTN
8.625%, 03/24/00 3,000 3,029
Fleet Boston, MTN (C)
6.274%, 07/28/00 40,000 39,997
3
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
PRIME QUALITY MONEY MARKET FUND--CONTINUED
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FACE AMOUNT
(000) VALUE (000)
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FINANCE -- CONTINUED
Ford Motor Credit
6.375%, 04/15/00 $ 5,750 $ 5,759
Ford Motor Credit, MTN
5.730%, 02/23/00 4,750 4,757
Ford Motor Credit, MTN (C)
6.126%, 05/10/00 15,000 15,003
5.900%, 02/01/00 6,000 6,002
GMAC
7.000%, 03/01/00 1,500 1,507
GMAC (A)
6.500%, 01/17/00 1,750 1,753
GMAC, MTN
6.250%, 01/11/00 2,100 2,103
8.625%, 01/10/00 10,000 10,037
GMAC, MTN
7.500%, 06/09/00 1,650 1,667
GMAC, MTN (C)
5.770%, 02/03/00 7,500 7,499
6.573%, 10/23/00 3,000 3,005
Goldman Sachs Group, MTN (A)
5.280%, 02/24/00 25,000 25,000
Goldman Sachs, MTN (C)
6.601%, 05/23/00 5,000 5,011
Goldman Sachs Group, MTN (C)
5.960%, 08/23/00 50,000 50,000
Household Finance, MTN (C)
5.950%, 09/14/00 50,000 49,976
International Lease Finance
6.375%, 01/18/00 5,000 5,008
J.P. Morgan
5.700%, 02/15/00 2,000 2,001
J.P. Morgan (C)
5.505%, 12/24/99 60,000 60,000
J.P. Morgan, MTN (C)
5.800%, 05/04/00 80,000 80,000
Merrill Lynch (C)
5.830%, 02/17/00 60,000 60,000
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FACE AMOUNT
(000) VALUE (000)
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FINANCE -- CONTINUED
Norwest Financial
7.250%, 03/15/00 $ 1,250 $ 1,254
NYNEX Credit Co, Ser E,
MTN (A) (C)
5.610%, 12/15/99 8,500 8,500
Paccar Financial, MTN
6.570%, 12/15/99 5,000 5,003
6.110%, 12/15/99 5,000 5,002
Paccar Financial, MTN (C)
5.620%, 12/04/00 20,000 20,020
Paccar Financial, MTN
6.600%, 01/18/00 5,000 5,003
Prudential Funding Notes (A)
6.840%, 12/30/99 4,000 4,003
Texaco Capital
9.450%, 03/01/00 1,600 1,617
Transamerica Finance Senior, MTN
5.970%, 12/06/99 1,500 1,500
Transamerica Finance, MTN
7.570%, 12/09/99 1,000 1,000
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1,170,723
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INDUSTRIAL (6.3%)
American Home Products
7.700%, 02/15/00 10,520 10,575
Anheuser Busch
8.750%, 12/01/99 12,850 12,850
AT&T (C)
6.163%, 08/07/00 98,000 98,000
AT&T, MTN
8.250%, 01/11/00 7,250 7,271
Ford Holdings
9.250%, 03/01/00 7,650 7,722
May Department Stores, MTN
9.560%, 12/01/99 1,000 1,000
Mobil Oil
9.170%, 02/29/00 1,687 1,697
================================================================================
(UNAUDITED)
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FACE AMOUNT
(000) VALUE (000)
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INDUSTRIAL -- CONTINUED
Philip Morris
7.125%, 12/01/99 $ 1,000 $ 1,000
9.250%, 02/15/00 2,000 2,011
6.150%, 03/15/10 64,530 64,643
United Technologies, MTN
8.300%, 12/15/99 2,000 2,002
Wal-Mart
5.650%, 02/01/10 22,000 22,018
Xerox, MTN (C)
6.044%, 12/08/00 20,000 19,992
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250,781
----------
UTILITIES (0.3%)
Carolina Power & Light 1st
Mortgage Bond
6.125%, 02/01/00 300 300
GTE Southwest
5.820%, 12/01/99 5,900 5,900
Southern California Edison
6.750%, 01/15/00 2,000 2,004
8.250%, 02/01/00 3,500 3,518
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11,722
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Total Corporate Obligations
(Cost $1,433,226) 1,433,226
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ASSET-BACKED SECURITIES (2.3%)
Americredit Auto Recievables Trust,
Ser 1999-B, Cl A1
4.917%, 06/12/00 1,550 1,550
Case Equipment Loan Trust
1999-B A1
5.674%, 09/15/00 11,074 11,074
Honda Auto Lease Trust Series
1999-A Cl A1
5.445%, 08/15/00 19,733 19,731
<PAGE>
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FACE AMOUNT
(000) VALUE (000)
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ASSET-BACKED SECURITIES -- CONTINUED
Household Auto Recievables Trust
Series 1999-1 Cl A1
5.106%, 07/17/00 $15,224 $ 15,224
Nissan Auto Receivables Owner
Trust, Ser 1999-A, Cl A1
5.619%, 09/15/00 5,289 5,283
Union Acceptance Series
1999-C Cl A1
5.473%, 08/08/00 32,953 32,953
Union Acceptance, Ser 1999-B,
Cl A1
4.960%, 06/08/00 2,777 2,777
WFS Financial Owner Trust
1999-B Cl A1
5.399%, 07/20/00 3,786 3,785
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Total Asset-Backed Securities
(Cost $92,377) 92,377
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SOVERIGN AGENCY (0.3%)
Province of Quebec
9.125%, 03/01/00 12,500 12,619
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Total Soverign Agency
(Cost $12,619) 12,619
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BANK NOTES (7.0%)
American Express Centurion (C)
5.800%, 05/08/00 85,000 85,000
Banker Trust (C)
6.156%, 04/10/00 25,000 24,991
Comerica Bank (C)
5.533%, 01/20/00 25,000 24,997
First Union (C)
5.780%, 05/11/00 75,000 74,993
First USA
6.500%, 12/23/99 2,200 2,202
5
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
PRIME QUALITY MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
BANK NOTES -- CONTINUED
Fleet National Bank (C)
6.219%, 10/26/00 $40,000 $ 39,986
Inter-American Development
9.500%, 04/11/00 760 771
Key Bank (C)
6.236%, 07/17/00 8,000 8,003
6.186%, 04/17/00 10,000 10,001
Nations Bank (C)
5.830%, 03/13/00 5,000 5,000
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Total Bank Notes
(Cost $275,944) 275,944
--------
CERTIFICATES OF DEPOSIT (5.1%)
Bayerische Hypo
5.270%, 03/03/00 50,000 49,987
Branch Banking and Trust (C)
5.800%, 02/01/00 50,000 49,997
Canadian Imperial Bank
5.120%, 02/23/00 50,000 49,994
Commerzbank AG
5.160%, 02/25/00 22,000 21,997
Toronto Dominion Bank
5.270%, 03/03/00 30,000 29,992
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Total Certificates of Deposit
(Cost $201,967) 201,967
--------
CASH EQUIVALENTS (3.2%)
Aim Liquid Assets Portfolio (C)
5.750%, 120,000,000 120,000
Aim Short Term Prime
Obligation (C)
5.700%, 5,000,000 5,000
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Total Cash Equivalents
(Cost $125,000) 125,000
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FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (0.1%)
SLMA, Ser 1996-3, Cl A1 (C)
5.746%, 10/25/04 $ 2,080 $ 2,068
SLMA, Ser 1996-4, Cl A1 (C)
5.736%, 07/25/04 736 735
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Total U.S. Government Agency Obligations
(Cost $2,803) 2,803
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REPURCHASE AGREEMENTS (19.8%)
Barclays
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$66,283,348 (collateralized by
FHLMC and FNMA obligations:
total market value
$67,609,015) (B) 66,283 66,283
Deutsche Bank
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$50,653,781 (collateralized by
a FHLMC obligation: total market
value $51,666,857) (B) 50,654 50,654
Greenwich,
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$63,657,391 (collateralized by
a FNMA obligation: market
value $64,932,655) (B) 63,657 63,657
Merrill Lynch
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$47,031,801 (collateralized by
various GNMA obligations: total
market value $47,972,437) (B) 47,032 47,032
6
<PAGE>
================================================================================
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
J.P.Morgan
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$151,483,951 (collateralized by
various FNMA obligaions: total
market value $154,513,631) (B) $151,484 $151,484
Morgan Stanley,
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$35,002,383 (collateralized
by various FHLMC and FNMA
obligations: total market value
$35,741,621) (B) 35,002 35,002
Salomon Brothers
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$40,000,000 (collateralized by
various FNMA obligations: total
market value $48,800,000) (B) 40,000 40,000
Merrill Lynch
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$40,000,000 (collateralized by
FNMA obligations: total market
value $40,800,000) (B) 40,000 40,000
Warburg
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$20,015,946 (collateralized by
FNMA obligation: total market
value $20,416,512) (B) 20,016 20,016
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FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
ABN AMRO
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$111,862,789 (collateralized by
FNMA obligations: total market
value $111,100,045) (B) $111,863 $ 111,863
Barclays
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$150,000,000 (collateralized
by FHLMC and FNMA obligations:
total market value
$153,000,000) (B) 150,000 150,000
Salomon Brothers
5.65%, dated 11/30/99, matures
12/01/99, repurchase price
$6,711,862 (collateralized by
various FNMA obligations: total
market value $6,846,099) (B) 6,712 6,712
----------
Total Repurchase Agreements
(Cost $782,703) 782,703
----------
Total Investments (99.5%)
(Cost $3,928,728) 3,928,728
----------
OTHER ASSETS AND LIABILITIES, NET (0.4%) 17,377
----------
7
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
PRIME QUALITY MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 3,005,709,887 outstanding
shares of beneficial interest $3,005,597
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 938,533,740 outstanding
shares of beneficial interest 938,565
Fund shares of the Flex Class
(unlimited authrorization -- no par
value) based on 2,007,764 outstanding
shares of beneficial interest 2,008
Undistributed net investment income 296
Accumulated net realized loss on
investments (361)
----------
Total Net Assets (100.0%) $3,946,105
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $1.00
==========
Net Asset Value, Offering and
Redemption Price Per Share
-- Investor Shares $1.00
==========
Net Asset Value, Offering and
Redemption Price Per Share
-- Flex Shares $1.00
==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 26.
8
<PAGE>
================================================================================
(UNAUDITED)
TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (97.9%)
ALABAMA (2.7%)
Cherokee, Industrial Development,
Board Boc Group Project, RB,
VRDN (C) (D) (E)
3.900%, 04/01/08 $ 3,500 $ 3,500
Lauderdale County, Healthcare
Authority, Coffee Health Group,
Ser A, GO, (MBIA)
3.700%, 07/01/00 1,265 1,265
Special Care Facilities, Montgomery
Hospital, RB, VRDN (FGIC) (C) (D)
3.850%, 04/01/15 1,085 1,085
State, Public School & College,
Ser 101, RB, VRDN (FSA) (C) (D)
3.990%, 11/01/13 9,985 9,985
--------
15,835
--------
ARIZONA (1.9%)
Salt River Project Arizona, Agriculture
Import & Power District Electric
System Ser Sg-10, RB, VRDN
(C) (D) 3.980%, 01/01/30 7,570 7,570
State, Transportation Board Maricopa
County Regional Area Rd-A , RB
4.500%, 07/01/00 1,000 1,003
State, Educational Loan Marketing,
Ser A, RB, VRDN, AMT (C) (D) (E)
4.000%, 12/01/20 2,500 2,500
-------
11,073
-------
COLORADO (1.6%)
Cherry Creek, South Metropolitian
District Number 1, GO, VRDN
(C) (D) (E) 3.900%, 06/01/06 1,350 1,350
Lowry Economic, Redevelopment
Authority, Ser B, RB, VRDN
(C) (D) (E) 3.900%, 12/01/20 2,000 2,000
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
COLORADO -- CONTINUED
State, Multifamily Housing Finance
Authority, St Moritz Project,
Series H, RB, VRDN (C) (D)
3.950%, 10/15/16 $ 5,915 $ 5,915
--------
9,265
--------
DELAWARE (0.3%)
State, Educational Development
Authority, VRDN (C) (D) (E)
4.225%, 10/01/19 1,875 1,875
--------
FLORIDA (0.4%)
Hillsborough County, Industrial
Development Authority, Pollution
Control Revenue, Tampa Electric
Project, RB, VRDN, AMT (C) (D)
3.900%, 11/01/20 1,100 1,100
State, Housing Financial Agency
Heron Park Project, Ser U, RB,
VRDN, AMT (C) (D) (E)
3.800%, 12/01/29 1,190 1,190
--------
2,290
--------
GEORGIA (5.8%)
Burke County, Development
Authority, TECP
3.700%, 02/08/00 10,000 10,000
Cobb County, Development
Authority, Educational Facilities,
Kennesaw State University Project,
RB, VRDN (AMBAC) (C) (D)
3.900%, 11/01/18 6,290 6,290
Conyers-Rockdale-Big Haynes,
Impoundment Authority, RB,
VRDN (FSA) (C) (D)
3.900%, 07/01/22 3,000 3,000
9
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
GEORGIA -- CONTINUED
Fulton County, Industrial
Development Authority, American
Red Cross Project, RB, VRDN
(C) (D) (E) 3.900%, 08/01/05 $ 1,100 $ 1,100
Gordon County, Developement
Authority, Sara Lee Corporation,
VRDN (C) (D) 3.950%,
03/01/02 1,400 1,400
Lafayette, Industrial Development
Authority, Blue-Bird Project,
Ser 1991, RB, VRDN (C) (D)
3.900%, 03/01/01 1,000 1,000
Monroe County, Industrial
Development Authority, Forsyth
Inns Project, RB, VRDN (C) (D)
3.900%, 11/01/15 2,325 2,325
State, Municipal Electric Authority,
RB, VRDN (C) (D) (E)
3.800%, 01/01/26 4,000 4,000
State, Ser E, GO
4.000%, 02/01/00 3,130 3,135
Summerville, Development
Authority, Ser 1997, RB, VRDN,
AMT (C) (D) (E)
3.950%, 09/01/17 2,000 2,000
-------
34,250
-------
HAWAII (0.8%)
State, Highway, RB, VRDN (C) (D)
3.980%, 07/01/18 4,790 4,790
-------
4,790
-------
ILLINOIS (9.9%)
Bloomington, Airport Authority,
GO, VRDN (C) (D)
3.950%, 01/01/12 1,300 1,300
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
ILLINOIS -- CONTINUED
Chicago, Industrial Development,
Midwest Project, RB, AMT, VRDN
(C) (D) 4.100%, 11/01/17 $ 1,910 $ 1,910
Chicago, Airport Facilities,
Centerpoint O'Hare, RB, VRDN
(C) (D) (E) 4.000%, 09/01/32 3,500 3,500
Chicago, O'Hare International
Airport, RB, VRDN (C) (D) (E)
3.850%, 1,840 1,840
Chicago, Single Family Mortage,
RB, VRDN, AMT (C) (D) (E)
3.250%, 09/01/29 5,595 5,595
Lockport, Industrial Development
Panduit Project, RB, VRDN
(C) (D) (E) 4.000%, 04/01/25 2,000 2,000
Savanna, Industrial Development
Authority, Metform Project,
Ser A, RB, VRDN (C) (D) (E)
4.000%, 05/01/14 500 500
Savanna, Industrial Development
Authority, Metform Project, Ser B,
RB, VRDN (C) (D) (E)
4.000%, 06/01/09 1,400 1,400
State, Development Financial
Authority, Derby Project, RB,
VRDN, AMT (C) (D)
4.100%, 10/01/07 800 800
State, Development Financial
Authority, Pollution Control,
Illinois Power, Ser A, RB, VRDN
(C) (D) (E) 3.850%, 11/01/28 5,000 5,000
State, Educational Facilities
Authority, Chicago Childrens
Museum, RB, VRDN (C) (D) (E)
3.900%, 02/01/28 1,600 1,600
10
<PAGE>
================================================================================
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
ILLINOIS -- CONTINUED
State, Educational Facilities
Authority, Museum of Science
and Industry, RB,
VRDN (C) (D) (E)
3.900%, 11/01/15 $ 5,400 $ 5,400
State, GO
4.250%, 06/01/00 2,500 2,505
State, Health Facilities Authority
Proctor Hospital Project, RB,
VRDN (C) (D) (E)
3.900%, 01/01/12 5,400 5,400
State, Health Facilities Authority,
Advocate Health Care, Ser B, RB,
VRDN (C) (D)
3.950%, 08/15/22 2,900 2,900
State, Health Facilities Authority,
Streeterville Corporation, RB,
VRDN (C) (D) (E)
3.900%, 08/15/24 2,000 2,000
State, Health Facilities Authority,
Streeterville Corporation, Ser A,
RB, VRDN (C) (D) (E)
3.900%, 08/15/22 3,500 3,500
State, Health Facilities Authority,
University of Chicago Hospital
Project, Ser C, RB, VRDN (MBIA)
(C) (D) 4.000%, 08/15/26 4,000 4,000
State, Industrial Development
Authority, Illinois Power Company,
Ser C, RB, AMT, VRDN (C) (D) (E)
4.000%, 03/01/17 3,000 3,000
State, RB (FGIC)
4.000%, 01/01/00 1,875 1,876
Wheeling, Industrial Development
Circuit Service Project, RB, VRDN
(C) (D) (E) 4.100%, 04/01/18 2,800 2,800
---------
58,826
---------
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
INDIANA (4.2%)
Elkhart County, Economic Development,
Godfrey Conveyor, RB, VRDN,
AMT (C) (D) (E)
4.100%, 04/01/13 $ 1,900 $ 1,900
Elkhart County, Economic
Development, Holly Park, RB,
VRDN, AMT (C) (D) (E)
4.100%, 02/01/10 2,100 2,100
Fort Wayne, Economic Development
Authority, ND Tech Project,
RB, VRDN, AMT (C) (D) (E)
4.000%, 07/01/09 1,000 1,000
Indianapolis, Industrial Economic
Development Authority, RB,
VRDN (C) (D)
4.050%, 04/01/01 3,500 3,500
Indianapolis, Local Public
Improvements, Ser B, RB (MBIA)
3.350%, 06/01/00 1,550 1,550
Indianapolis, Multi-Family Housing,
RB, VRDN, AMT (C) (D) (E)
4.100%, 03/01/31 2,700 2,700
Jasper, Economic Development,
Wabash Valley Produce Project, RB,
VRDN, AMT (C) (D) (E)
4.100%, 06/01/05 2,000 2,000
La Porte County, Economic
Development Revenue, Pedcor
Investments-Woodland, RB, VRDN,
AMT (C) (D) (E)
4.000%, 10/01/29 2,000 2,000
Michigan City, Industrial Economic
Development, Performance
Packaging, RB, VRDN, AMT
(C) (D) (E) 4.150%, 09/01/06 700 700
11
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
INDIANA -- CONTINUED
State, Development Financial
Authority, Culver Educational
Facilities, RB, VRDN (C) (D) (E)
3.900%, 01/01/32 $ 2,000 $ 2,000
State, Development Financial
Authority, Educational Facility,
Indiana Historical Society, RB,
VRDN (C) (D) (E)
3.900%, 08/01/31 1,200 1,200
State, Educational Facilities
Authority, Indiana Wesleyan
Project, Ser B, RB, VRDN
(C) (D) (E) 3.950%, 06/01/28 2,500 2,500
State, Health Facility Financing
Authority, Clarian Health Partners,
Ser B, RB, VRDN (C) (D)
3.800%, 02/15/26 2,000 2,000
-------
25,150
-------
IOWA (0.4%)
West Des Moines, Commercial
Development, Greyhound Lines
Project, RB, VRDN (C) (D) (E)
3.850%, 12/01/14 2,500 2,500
-------
2,500
-------
KENTUCKY (1.1%)
Jefferson County, Industrial Building,
Fisher-Klosterman Project, RB,
VRDN, AMT (C) (D) (E)
4.100%, 05/01/17 2,170 2,170
State, Higher Education, Student
Loan, Ser B, RB, AMT
6.400%, 12/01/99 4,125 4,125
-------
6,295
-------
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
LOUISIANA (2.9%)
Calcasieu Parish, Industrial
Development Board, Hydroserve
Westlake, RB, VRDN, AMT
(C) (D) (E) 4.050%, $ 5,000 $ 5,000
State, Eagle Trust Ser 94180, RB,
VRDN (C) (D)
3.970%, 05/01/09 8,000 8,000
State, Offshore Terminal Authority,
Deepwater Port, First Stage A-Loop
Project, Ser A, RB, VRDN
(C) (D) (E) 3.900%, 09/01/08 2,000 2,000
State, Public Facilites Authority,
Pollution Control, Ciba-Geigy
Project, RB, VRDN (C) (D) (E)
3.900%, 12/01/04 2,400 2,400
--------
17,400
--------
MARYLAND (1.9%)
Baltimore County, Allied Signal
Project, VRDN (C) (D)
4.000%, 03/01/14 1,000 1,000
State, Community Development,
Department Housing &
Community, RB, AMT (E)
3.100%, 01/13/00 4,655 4,655
University of Maryland, Revolving
Equipment Loan Program, Ser B,
RB, VRDN (C) (D)
3.750%, 07/01/15 4,100 4,100
Washington Suburban, General
Construction, Prerefunded at 102,
GO (D) 6.750%, 12/01/03 1,400 1,428
--------
11,183
--------
12
<PAGE>
================================================================================
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
MICHIGAN (1.6%)
Oakland County, Economic
Development Authority, Moody
Family Ltd. Project, RB, VRDN,
AMT (C) (D)
4.100%, 09/01/12 $ 900 $ 900
State, Housing Development
Authority, RB, VRDN, AMT
(C) (D) (E) 3.950%, 03/01/13 1,000 1,000
State, Industrial Development
Authority, RB, VRDN (C) (D) (E)
3.700%, 12/01/00 3,000 3,000
State, Municipal Bond Authority,
School Loan, RB
3.500%, 12/01/99 2,000 2,000
State, Strategic Fund, Consolidated
Industrial Project, RB, VRDN,
AMT (C) (D) (E)
4.100%, 01/01/19 2,500 2,500
-------
9,400
-------
MISSISSIPPI (0.5%)
State, Business Finance, Solid Waste
Disposal, Choctaw Generation,
VRDN, AMT (C) (D) (E)
4.000%, 10/01/28 3,000 3,000
-------
MISSOURI (2.4%)
Carthage, Industrial Development
Authority, Schrieber Project, RB,
VRDN, AMT (C) (D) (E)
4.000%, 11/01/10 3,100 3,100
Independence, Industrial
Development Authority,
Multifamily Housing, RB, VRDN
(C) (D) 4.050%, 01/01/05 7,480 7,480
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
MISSOURI -- CONTINUED
Saint Charles County, Industrial
Development Authority, Casalon
Apartment Project, Ser 95, RB,
VRDN (C) (D) (E)
3.750%, 09/01/25 $ 3,100 $ 3,100
State, Environmental Improvement
& Energy Resource Authority,
Utilicorp United Project, RB,
VRDN, AMT (C) (D) (E)
4.000%, 05/01/28 700 700
--------
14,380
--------
NEVADA (3.0%)
Clark County, Airport Improvement
Authority, Ser A-1, RB, VRDN
(C) (D) (E) 3.750%, 07/01/25 4,200 4,200
Clark County, Nevada Airport
Improvement Ser A-1, RB, AMT,
VRDN (C) (D) (E)
3.950%, 07/01/25 4,955 4,955
Clark County, School District,
VRDN (C)
3.970%, 06/15/15 8,345 8,345
--------
17,500
--------
NEW HAMPSHIRE (0.8%)
State, Housing Finance Authority,
Multi-Family Housing, Fairways
Project, RB, VRDN, AMT
(C) (D) (E) 3.950%, 01/01/24 5,000 5,000
--------
NEW JERSEY (0.5%)
Parsippany, Troy Hills
Township, GO
4.500%, 12/01/99 1,055 1,055
State, Ser D, GO (D)
5.100%, 02/15/00 2,000 2,008
-------
3,063
-------
13
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- -------------------------------------------------------------------------------
NEW MEXICO (0.2%)
State, Financial Authority, Ser B,
RB, VRDN (FGIC) (D)
3.000%, 07/01/17 $ 1,305 $ 1,305
--------
NEW YORK (3.6%)
New York, Industrial Development,
Special Facilities, Korean Airlines
Co., Ser A , RB, VRDN (C) (D) (E)
3.850%, 11/01/24 3,000 3,000
New York, Ser A51, RB, VRDN
(C) (D) (E) 3.950%, 04/14/00 4,000 4,000
Southeast New York, Industrial
Development, Unilock New York
Inc. Project, RB, VRDN, AMT
(C) (D) (E) 4.000%, 12/01/12 2,200 2,200
State, VRDN (C) (D) (E)
3.910%, 06/15/12 12,085 12,085
--------
21,285
--------
NORTH CAROLINA (2.1%)
Cleveland County, Family YMCA,
Recreational Facilities Revenue,
RB, VRDN (C) (D) (E)
3.950%, 08/01/18 2,840 2,840
Mecklenburg County, Industrial
Facilities & Pollution Control,
Sterigenics International Project,
RB, VRDN, AMT (C) (D) (E)
4.050%, 03/01/16 1,800 1,800
State, Educational Facilities,
Guilford College, VRDN (MBIA)
(C) (D) 3.850%, 05/01/24 2,200 2,200
State, RB, VRDN (C) (D)
3.980%, 04/01/11 5,340 5,340
--------
12,180
--------
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
OHIO (5.5%)
Hamilton County, RB, VRDN
(MBIA) (C) (D)
3.850%, 01/01/18 $ 8,400 $ 8,400
State Higher Education, RB ,
VRDN (C) (D) (E)
4.000%, 09/01/18 4,835 4,835
State, Air Quality Development
Authority, Edison Project, Ser A,
RB, VRDN (C) (D) (E)
2.950%, 02/01/15 8,000 8,000
State, Air Quality Development
Authority, JMG Limited
Partnership, Ser A, RB, VRDN,
AMT (C) (D) (E)
3.900%, 04/01/28 3,000 3,000
State, Pollution Control Authority,
Duquesne Project, RB, VRDN,
AMT (C) (D)
4.050%, 10/01/23 3,000 3,000
Warrren County, Health Care
Facilities Revenue, RB, VRDN
(C) (D) (E)
3.850%, 07/01/21 5,545 5,545
--------
32,780
--------
OREGON (0.3%)
Oregon State Housing & Community
Services, Department Mortgage
Single Family Pg - Ser H, RB,
AMT (D) 3.480%, 06/29/00 1,895 1,895
--------
PENNSYLVANIA (4.0%)
Beaver County, Industrial
Development Authority,
Duquesne Light Company Project,
Ser B, RB, VRDN (C) (D)
4.000%, 08/01/09 1,000 1,000
14
<PAGE>
================================================================================
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA -- CONTINUED
Delaware Valley, Regional Finance
Authority, Ser B, RB, VRDN
(C) (D) (E) 3.800%, 12/01/20 $ 8,100 $ 8,100
Philadelphia, Ser A, TRAN
4.250%, 06/30/00 5,000 5,021
State, Intergovernmental
Cooperation Authority, Special
Tax Revenue, VRDN (C) (D)
3.980%, 06/15/20 9,630 9,630
-------
23,751
-------
RHODE ISLAND (1.7%)
State, Women & Infants Hospital,
RB (FSA) (D)
3.850%, 09/01/04 3,365 3,365
State, GO, VRDN (C) (D)
3.980%, 11/01/12 6,635 6,635
-------
10,000
-------
SOUTH CAROLINA (2.5%)
Piedmont, Municipal Power Agency,
Ser C, RB, VRDN (MBIA) (C) (D)
3.900%, 01/01/19 5,900 5,900
Piedmont, Municipal Power Agency,
Electrical Revenue, Ser D, RB,
VRDN (MBIA) (C) (D)
3.900%, 01/01/25 3,100 3,100
State, Economic Development
Authority, Kiswire Inc. Project,
RB, VRDN, AMT (C) (D) (E)
4.100%, 09/01/07 3,000 3,000
State, Public Service Authority,
Ser A, RB
4.500%, 01/01/00 1,500 1,502
State, Ser W, GO Prerefunded at
102 (E) 5.750%, 05/01/06 1,500 1,542
-------
15,044
-------
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
TENNESSEE (6.8%)
Covington, Industrial Development
Board, Charms Project, RB, VRDN,
AMT (C) (D) (E)
4.000%, 06/01/27 $ 3,000 $ 3,000
Eagle Trust, GO, VRDN (C) (D)
3.840%, 11/15/18 10,000 10,000
Memphis-Shelby County, Industrial
Development Board, Ponderosa
Fibres American Project, RB, AMT,
VRDN (C) (D) (E)
4.000%, 04/01/05 1,200 1,200
Nashville & Davidson County,
Industrial Development Authority,
Rodgers/Welch Venture, RB, VRDN
(C) (D) (E) 3.900%, 12/01/14 5,645 5,645
Nashville & Davidson County,
Industrial Development Authority,
Multi-Family Mortgage,
Chimneytop II Project, RB,
VRDN (C) (D) (E)
3.970%, 09/01/06 1,325 1,325
Nashville & Davidson County,
Vanderbilt University, RB,
VRDN (C) (D)
3.100%, 01/15/15 7,000 7,000
Rutherford County, Industrial
Development, RB, VRDN,
AMT (C) (D) (E)
4.000%, 10/01/14 4,500 4,500
State, Ser 108, GO, VRDN (C) (D)
3.970%, 05/01/14 2,500 2,500
Sumner County, Health, RB,
VRDN (C) (D)
4.020%, 06/01/29 5,000 5,000
--------
40,170
--------
15
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
TEXAS (15.6%)
Dallas, GO
5.500%, 02/15/00 $ 2,105 $ 2,115
Eagle Trust, RB, VRDN (C) (D) (E)
3.970%, 05/15/26 10,925 10,925
Eagle Trust, Ser 991301, GO,
VRDN (C) (D) (E)
3.970%, 06/01/25 9,900 9,900
Fort Worth, Water & Sewer,
Ser B, RB 5.875%, 02/15/00 1,325 1,333
Georgetown, Higher Education
Financing Authority, Southwestern
University Project, Ser 1984, RB,
VRDN (C) (D) (E)
3.850%, 10/01/14 2,000 2,000
Harris County, Industrial
Development Authority, Lubrizol
Project, RB, VRDN (C) (D)
3.950%, 07/01/00 1,600 1,600
Houston, Water & Sewer, RB,
VRDN (FGIC) (C) (D)
3.980%, 12/01/25 8,835 8,835
Lone Star, Airport Improvement
Authority, RB, VRDN (C) (D) (E)
3.700%, 12/01/14 1,700 1,700
Pearland, Independent School
District Tr Rcpts - Sg 106, RB,
VRDN (C) (D)
3.980%, 02/15/22 6,245 6,245
San Antonio, Electric & Gas,
RB (MBIA)
6.375%, 02/01/00 1,350 1,358
Southwest, Higher Education
Authority, Southern Methodist
University Project, Ser B, RB,
VRDN (C) (D) (E)
3.900%, 10/01/29 5,000 5,000
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
TEXAS -- CONTINUED
State, Public Facilities, RB,
VRDN (C) (D) (E)
3.970%, 10/23/23 $ 7,180 $ 7,180
State, Public Finance Authority,
State Preservation Board,
Ser A, RB (AMBAC)
4.250%, 02/01/00 1,200 1,202
State, TECP
3.700%, 02/07/00 10,000 10,000
State, TRAN
4.500%, 08/31/00 20,000 20,116
University of Houston, RB
5.500%, 02/15/00 2,850 2,864
-------
92,373
-------
UTAH (1.8%)
State, Housing Finance Agency,
RB, AMT, VRDN (FHA) (C) (D)
3.100%, 01/13/00 10,950 10,950
VIRGINIA (3.1%)
Braxton County, Solid Waste
Disposal, Weyerhaeuser Co.
Project, RB, VRDN, AMT (C) (D)
4.050%, 03/01/29 7,650 7,650
Chesterfield County, Industrial
Development Authority, Allied
Signal Project, RB, VRDN (C) (D)
4.050%, 08/01/09 3,000 3,000
Front Royal & Warren County,
Industrial Development Authority,
Pen Tab Industries Project, RB,
VRDN, AMT (C) (D) (E)
4.000%, 04/01/15 2,700 2,700
16
<PAGE>
================================================================================
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
VIRGINIA -- CONTINUED
Prince George County, Industrial
Development Authority, Industrial
Development Revenue, RB,
VRDN, AMT (C) (D) (E)
4.100%, 09/01/19 $ 4,800 $ 4,800
--------
18,150
--------
WASHINGTON (3.5%)
Pierce County, Washington
Economic Development,
Weyerhaeuser Real Estate Project,
RB, VRDN (C) (D) (E)
3.950%, 01/01/27 3,000 3,000
Port of Seattle, GO, VRDN (C) (D)
3.850%, 01/01/05 1,200 1,200
Seattle, Water Systems Revenue,
RB, VRDN (C) (D) (E)
3.850%, 09/01/25 4,200 4,200
South Columbia, RB
5.700%, 12/01/99 1,000 1,000
State, GO, VRDN (C) (D)
3.200%, 12/09/99 3,335 3,335
State, Public Power Supply System,
Nuclear Project No. 1, Ser 1A-1,
RB, VRDN (C) (D) (E)
3.800%, 07/01/17 4,535 4,535
State, Public Power Supply System,
Nuclear Project No. 1, Ser 1A-3,
RB, VRDN (C) (D) (E)
3.700%, 07/01/17 3,200 3,200
-------
20,470
-------
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
WEST VIRGINIA (1.8%)
Marshall County, Pollution Control
Authority, Allied Signal Project,
RB, VRDN (C) (D)
4.050%, 03/01/26 $ 8,630 $ 8,630
Marshall County, Pollution Control
Authority, PPG Industries Project,
RB, VRDN (C) (D)
4.050%, 11/01/12 2,000 2,000
-------
10,630
------
WISCONSIN (1.9%)
Appleton, Industrial Development
Revenue, Pro Lable Project, RB,
VRDN, AMT (C) (D) (E)
4.200%, 11/01/12 870 870
Germantown, Industrial Revenue,
Speaker Project RB, VRDN,
AMT (C) (D)
4.200%, 08/01/11 855 855
Holland, Industrial Development
Revenue, White Clover Dairy
Project, RB, VRDN, AMT (C) (D) (E)
4.100%, 06/01/13 1,500 1,500
Oconomowoc, Industrial
Development Revenue, Quest
Technologies Project, RB, VRDN,
AMT (C) (D) (E)
4.100%, 05/01/18 1,550 1,550
State, Health Facilities, Franciscan
Health Care, Ser A-1, RB,
VRDN (C) (D) (E)
3.850%, 01/01/16 6,105 6,105
State, Health Facilities, Saint Lukes
Medical Center, RB, VRDN
(C) (D) (E) 3.900%, 12/01/17 300 300
--------
11,180
--------
17
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
TAX-EXEMPT MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
WYOMING (0.8%)
Sweetwater, RB, VRDN (C) (D) (E)
3.750%, 07/01/15 $ 4,600 $ 4,600
--------
Total Municipal Bonds
(Cost $579,838) 579,838
--------
CASH EQUIVALENTS (1.8%)
Financial Square Tax Free
Portfolio 9,801 9,801
SEI Institutional Tax Free
Portfolio 1,053 1,053
--------
Total Cash Equivalents
(Cost $10,854) 10,854
--------
Total Investments (99.7%)
(Cost $590,692) 590,692
--------
OTHER ASSETS AND LIABILITIES, NET (0.4%) 2,349
--------
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 466,177,078 outstanding
shares of beneficial interest $466,177
Fund shares of the Investor Class
(unlimited authorization -- no par value)
based on 126,910,911 outstanding
shares of beneficial
interest 126,911
Distributions in excess of
net investment income (12)
Accumulated net realized loss on
investments (35)
--------
TOTAL NET ASSETS 100.0% $593,041
========
Net Asset Value, Offering and
Redemption Price Per Share --
Trust Shares $1.00
========
Net Asset Value, Offering and
Redemption Price Per Share
-- Investor Shares $1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 26.
18
<PAGE>
================================================================================
(UNAUDITED)
TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (95.3%)
ARIZONA (3.3%)
City of Mesa Arizona, Industrial
Development Authority Discovery
Health Ser B, RB, VRDN (MBIA)
(C) 3.900%, 01/01/29 $10,000 $ 10,000
---------
DISTRICT OF COLUMBIA (1.3%)
District of Columbia, RB (C) (E)
3.900%, 07/01/23 4,000 4,000
---------
ILLINOIS (6.6%)
Chicago, O'Hare International
Airport, RB, AMT (C)
4.030%, 07/01/10 5,000 5,000
State Pollution Control Finance
Authority Central Illinois Public
Service, Ser 93 C-1, RB, VRDN
(C) (E) 3.850%, 08/15/26 10,000 10,000
State, Toll Highway Authority, RB
(FSA) (C) 3.900%, 01/01/16 5,000 5,000
--------
20,000
--------
LOUISIANA (2.5%)
Jefferson Parish, Home Mortgage,
RB (C) 4.030%, 12/01/24 7,720 7,720
---------
MARYLAND (4.8%)
Elkton, Highway Service Ventures,
RB, VRDN (C) (E)
3.950%, 11/01/14 620 620
Montgomery County, Housing
Opportunity Commission, Issue 1,
RB, AMT (C) (E)
3.950%, 06/01/30 10,000 10,000
State, Economic Development,
Dietz & Watson Inc. Project,
RB, VRDN (C)(E)
4.050%, 03/01/19 1,000 1,000
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
MARYLAND -- CONTINUED
State, Health & Higher Educational
Facilities Authority, Pooled Loan
Project, Ser D, RB (C) (E)
3.850%, 01/01/24 $ 2,875 $ 2,875
---------
14,495
---------
MICHIGAN (3.3%)
Detroit, Sewer Disposal, Ser B, RB
(MBIA) (C) 3.900%, 07/01/23 10,000 10,000
---------
MISSOURI (4.2%)
St Charles County, RB, VRDN (C)
3.750%, 02/01/23 12,700 12,700
---------
NEVADA (2.2%)
Clark County, Airport Improvement
Authority, Ser A-1, RB, VRDN
(C) (D) (E) 3.750%, 07/01/25 2,947 2,947
Clark County, Industrial
Development, RB, VRDN (C)
4.180%, 10/01/30 3,700 3,700
---------
6,647
---------
NEW YORK (8.2%)
Long Island, Power Authority,
Electric System Project, RB (C)
4.080%, 12/01/24 4,000 4,000
New York City, GO (C)
4.010%, 06/01/27 11,960 11,960
New York City, Municipal Water
Financing Authority, RB (FSA) (C)
3.940%, 06/15/24 9,000 9,000
---------
24,960
---------
NORTH CAROLINA (0.7%)
State, Educational Facilities,
Bowman Gray School of Medicine
Project, RB, VRDN (C)
3.850%, 09/01/20 2,100 2,100
---------
19
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
TAX-FREE MONEY MARKET FUND--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA (2.6%)
Pittsburgh, GO (FGIC) (C)
3.980%, 03/01/11 $ 8,000 $ 8,000
--------
SOUTH CAROLINA (2.7%)
Florence County, McLeod Regional
Medical Center Project, Ser A, RB
(FGIC) (C) (E)
3.900%, 11/01/15 8,200 8,200
--------
TENNESSEE (1.6%)
Shelby County, Health, Educational
& Housing Facilities, Multi Family
Housing, Ser A, RB, AMT (C) (E)
4.100%, 12/01/37 5,000 5,000
--------
TEXAS (5.8%)
Harris County, Multi Family
Housing Idelwood Park, Ser A,
RB, VRDN (C)
3.970%, 06/01/05 2,700 2,700
Houston, Water & Sewer System,
RB (FGIC) (C)
3.980%, 12/01/23 5,000 5,000
State, TRAN
4.500%, 08/31/00 10,000 10,058
-------
17,758
-------
VIRGINIA (41.1%)
Alexandria Industrial Development
Authority, American Red Cross
Project, RB, VRDN (C) (E)
3.900%, 01/01/09 4,485 4,485
Alexandria, Industrial Development,
Pooled Loan Project, Ser A, RB
(C) (E) 3.900%, 07/01/26 7,075 7,075
Alexandria, Industrial Development,
Ser A, RB (C)
3.900%, 07/01/26 3,500 3,500
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
Almermarle County, Industrial
Development, Health Services,
RB (C) 3.900%, 10/01/22 $ 4,400 $ 4,400
Ashland, Industrial Development
Authority, RB, AMT, VRDN (C)
4.050%, 07/01/19 7,000 7,000
Culpeper Baptist Homes Res Care
Facility, RB, VRDN (C) (E)
3.900%, 11/01/17 800 800
Fairfax County, Industrial
Development Authority Fairfax
Hospital Project, Ser B , RB,
VRDN (C)
3.850%, 10/01/25 9,600 9,600
Fairfax County, Economic
Development, Flint Hill School
Project, RB (C) (E)
3.850%, 09/01/21 4,340 4,340
Fairfax County, Public
Improvements, GO (C)
3.980%, 06/01/13 6,300 6,300
Hanover County, Residential Care
Facility Ida Covenant Woods
Project, RB, VRDN (C) (E)
3.950%, 07/01/29 12,000 12,000
Louisa County, Industrial
Development, RB (C) (E)
3.900%, 01/01/20 2,975 2,975
Norfolk, Industrial Development
Authority, Children Hospital
Project, RB, VRDN (C) (E)
3.900%, 06/01/20 11,900 11,900
Prince William County, GO
5.000%, 08/01/00 1,000 1,009
Richmond, Redevelopment &
Housing Authority, Multi Family
Housing, RB (C)
4.130%, 11/01/29 13,000 13,000
20
<PAGE>
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
VIRGINIA -- CONTINUED
Roanoke, Industrial Development
Authority, Memorial Hospital
Projects, RB, Prerefunded
07/01/00 @100 (MBIA) (D)
6.500%, 07/01/25 $ 5,000 $ 5,085
Roanoke, Industrial Development
Authority, Roanoke Memorial
Hospital Project, Ser C, RB (C) (E)
3.850%, 07/01/19 1,935 1,935
Roanoke, Industrial Development
Authority, Carilion Health System
Ser B, RB, VRDN (C)
3.800%, 07/01/27 4,000 4,000
State, Public School Authority, RB
5.000%, 08/01/00 4,335 4,377
State, Public School Authority,
Ser B, GO
5.000%, 08/01/00 4,665 4,701
State, Port Authority, RB, AMT
(MBIA) (C)
4.030%, 07/01/24 10,100 10,100
State, University & Hospital &
Public Improvements, GO
5.000%, 06/01/00 2,000 2,017
Suffolk, Redevelopment &
Housing Authority, Multi Family
Housing, Windsor Fieldstone
Project, RB (C) 4.400%, 12/01/07 4,218 4,218
--------
124,817
--------
WASHINGTON (4.4%)
Eagle Trust, TECP
3.850%, 03/22/00 13,300 13,300
--------
Total Municipal Bonds
(Cost $289,697) 289,697
--------
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS (4.2%)
Financial Square Tax Free
Portfolio $ 5,890 $ 5,890
SEI Institutional Tax Free
Portfolio 7,014 7,014
--------
Total Cash Equivalents
(Cost $12,904) 12,904
--------
Total Investments (99.5%)
(Cost $302,601) 302,601
--------
OTHER ASSETS AND LIABILITIES, NET (0.5%) 1,442
--------
NET ASSETS:
Fund shares of the Trust Class
(unlimited authorization --
no par value) based on 295,666,361
outstanding shares of beneficial interest 295,643
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 8,408,509 outstanding
shares of beneficial interest 8,408
Distributions in excess of
net investment income (1)
Accumulated net realized loss on investments (7)
s --------
TOTAL NET ASSETS (100.0%) $304,043
========
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Shares $1.00
Net Asset Value, Offering and Redemption
Price Per Share -- Investor Shares $1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 26.
21
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATION (11.8%)
U.S. Treasury Note
5.500%, 02/29/00 $50,000 $ 50,084
---------
Total U.S. Treasury Obligation
(Cost $50,084) 50,084
---------
CASH EQUIVALENTS (8.9%)
AIM Institutional Treasury
Portfolio 19,000 19,000
SEI Daily Income Trust Treasury
II Portfolio 19,000 19,000
--------
Total Cash Equivalents
(Cost $38,000) 38,000
--------
REPURCHASE AGREEMENTS (79.5%)
ABN-AMRO
5.62%, dated 11/30/99, matures
12/01/99, repurchse price
$9,089,046 (collateralized by U.S.
Treasury Note: total market value
$9,271,005) (B) 9,089 9,089
Barclays
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$19,020,757 (collateralized by U.S.
Treasury Note: total market
value $19,401,277) (B) 19,021 19,021
Deutsche Bank
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$19,513,570 (collateralized by U.S.
Treasury Note: total market
value $19,904,606) (B) 19,514 19,514
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
Goldman Sachs
5.40%, dated 11/30/99, matures
12/01/99, repurchase price
$15,000,000 (collateralized by
U.S. Treasury Note: total market
value $15,300,000) (B)
5.400%, 12/01/99 $15,000 $ 15,000
Greenwich
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$19,343,054 (collateralized by
U.S. Treasury Note: total market
value $19,731,928) (B) 19,343 19,343
J.P. Morgan
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$17,003,150 (collateralized by
U.S. Treasury Note: total market
value $17,343,271) (B) 17,003 17,003
Merrill Lynch
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$103,307,996 (collateralized by
various GNMA obligations: total
market value $105,375,152) (B) 103,308 103,308
Morgan Stanley
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$102,970,112 (collateralized by
various GNMA obligations: total
market value $106,589,578) (B) 102,970 102,970
22
<PAGE>
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
Salomon Brothers
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$14,079,779 (collateralized by U.S.
Treasury Note: total market value
$15,030,775) (B) $14,080 $ 14,080
SBC Warburg
5.62%, dated 11/30/99, matures
12/01/99, repurchase price
$19,096,451 (collateralized by
U.S. Treasury Bond: total market
value $19,482,240) (B) 19,096 19,096
---------
Total Repurchase Agreements
(Cost $338,424) 338,424
---------
Total Investments (100.2%)
(Cost $426,508) 426,508
---------
OTHER ASSETS AND LIABILITIES, NET (-0.2%) (874)
---------
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Class
(unlimited authorization -- no par
value) based on 366,513,591
outstanding shares of beneficial interest $366,514
Fund shares of the Investor Class
(unlimited authorization -- no par
value) based on 58,843,366
outstanding shares of beneficial interest 58,843
Accumulated net realized gain on
investments 277
--------
TOTAL NET ASSETS (100.0%) $425,634
========
Net Asset Value, Offering and
Redemption Price Per Share --
Trust Shares $1.00
========
Net Asset Value, Offering and
Redemption Price Per Share
-- Investor Shares $1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 26.
23
<PAGE>
STATEMENTS OF NET ASSETS
================================================================================
STI CLASSIC FUNDS NOVEMBER 30, 1999
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (15.9%)
U.S. Treasury Notes
5.625%, 12/31/99 $15,000 $ 15,011
5.875%, 02/15/00 15,000 15,029
5.500%, 03/31/00 25,000 25,041
6.375%, 05/15/00 30,000 30,177
5.375%, 07/31/00 15,000 14,997
5.125%, 08/31/00 15,000 14,970
--------
Total U.S. Treasury Obligations
(Cost $115,225) 115,225
--------
REPURCHASE AGREEMENTS (84.3%)
ABN-AMRO
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$34,926,383 (collateralized by a
U.S. Treasury Note: total market
value $35,624,958) (B) 34,926 34,926
Barclays
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$34,551,241 (collateralized by a
U.S. Treasury Note: total market
value $35,242,905) (B) 34,551 34,551
Deutsche Bank
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$36,966,774 (collateralized by
U.S. Treasury Note: total market
value $35,666,273) (B) 34,967 34,967
Greenwich Bank
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$178,811,704 (collateralized by
various U.S. Treasury obligations:
total market value
$182,390,917) (B) 178,812 178,812
- --------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
J.P. Morgan
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$35,006,247 (collateralized by a
U.S. Treasury Bond: total
market value $35,707,048) (B) $34,455 $ 34,455
Merrill Lynch
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$34,654,348 (collateralized by a
U.S. Treasury Note: total market
value $35,347,656) (B) 34,654 34,654
Morgan Stanley
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$34,454,608 (collateralized by
a U.S. Treasury Note: total
market value $35,321,745) (B) 35,006 35,006
SBC Warburg
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$178,348,011 (collateralized by
a U.S. Treasury Note: total
market value $181,917,918) (B) 178,348 178,348
Dresdner Bank
5.25%, dated 11/30/99, matures
12/01/99, repurchase price
$10,000,000 (collateralized by a
U.S. Treasury Note: total market
value $10,200,000) (B) 10,000 10,000
24
<PAGE>
================================================================================
(UNAUDITED)
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- CONTINUED
Salomon Brothers
5.61%, dated 11/30/99, matures
12/01/99, repurchase price
$35,169,104 (collateralized by
various U.S. Treasury Notes: total
market value $36,023,616) (B) $35,169 $ 35,169
--------
Total Repurchase Agreements
(Cost $610,888) 610,888
--------
Total Investments (100.2%)
(Cost $726,113) 726,113
--------
OTHER ASSETS AND LIABILITIES, NET (-0.2%) (1,846)
--------
NET ASSETS:
Fund shares of the Trust Class
(unlimited authorization -- no
par value) based on 724,348,814
outstanding shares of beneficial interest 724,265
Undistributed net investment income 2
--------
TOTAL NET ASSETS (100.0%) $724,267
========
Net Asset Value, Offering and
Redemption Price Per Share
-- Trust Shares $1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 26.
25
<PAGE>
================================================================================
(UNAUDITED)
KEY TO ABBREVIATIONS USED IN
THE STATEMENT OF NET ASSETS
AMBAC Security insured by the American Municipal Bond Assurance
Corporation
AMT Alternative Minimum Tax
Cl Class
FGIC Security insured by the Financial Guaranty Insurance Company
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Security insured by Financial Securities Assurance
GNMA Government National Mortgage Association
GO General Obligation
MBIA Security insured by the Municipal Bond Insurance Association
MTN Medium Term Note
RB Revenue Bond
Ser Series
SLMA Student Loan Marketing Association
TECP Tax Exempt Commercial Paper
TRAN Tax & Revenue Anticipation Note
VRDN Variable Rate Demand Note
(A) Private Placement Security
(B) Tri-Party Repurchase Agreement
(C) 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.
(D) Put and demand features exist requiring the issuer to repurchase
the instrument prior to maturity.
(E) Securities are held in connection with a letter of credit issued by
a major bank.
26
<PAGE>
STATEMENTS OF OPERATIONS (000)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
TAX-EXEMPT TAX-FREE U.S. GOVERNMENT
PRIME QUALITY MONEY MONEY SECURITIES U.S. TREASURY
MONEY MARKET MARKET MARKET MONEY MARKET MONEY
FUND FUND FUND FUND MARKET FUND
------------ ---------- ---------- ------------ -------------
06/01/99- 06/01/99- 06/01/99- 06/01/99- 06/01/98-
11/30/99 11/30/99 11/30/99 11/30/99 05/31/99
---------- ---------- --------- -------- -----------
Interest Income ........................ $113,767 $12,908 $4,759 $11,044 $18,899
-------- ------- ------ ------- -------
Expenses:
<S> <C> <C> <C> <C> <C>
Investment Advisory Fees ............ 14,060 2,128 562 1,514 2,446
Less: Investment Advisory
Fees Waived/Reimbursed ........ (3,223) (504) (9) (269) (491)
Administrator Fees 1,533 274 100 156 266
Transfer Agent Fees-- Trust Shares .. 3 6 10 6 11
Transfer Agent Fees-- Investor Shares 10 -- 8 16 --
Transfer Agent Fees-- Flex Shares ... 2 -- -- -- --
Transfer Agent Out of Pocket Fees ... 150 34 13 20 34
Printing Expenses ................... 108 19 9 11 19
Custody Fees ........................ 128 15 6 9 15
Professional Fees ................... 87 15 6 9 15
Trustee Fees ........................ 22 4 1 2 4
Registration Fees ................... 87 15 10 9 29
Distribution Fees-- Investor Shares . 940 102 21 53 --
Less: Distribution Fees Waived --
Investor Shares ................ (150) (20) (21) (25) --
Distribution Fees-- Flex Shares ..... 2 -- -- -- --
Less: Distribution Fees Waived--
Flex Shares .................... (2) -- -- -- --
Insurance and Other Fees ............ 21 -- 9 3 (21)
Amortization of Deferred
Organizational Costs ........... -- -- -- -- 43
------- ------- ------ ------- -------
Total Expenses ...................... 13,778 2,088 725 1,514 2,370
------- ------- ------ ------- -------
Net Investment Income ............... 99,989 10,820 4,034 9,530 16,529
------- ------- ------ ------- -------
Net Realized Gain (Loss) on
Securities Sold ................ (13) (30) -- 86 --
------- ------- ------ ------- --------
Net Increase in Net Assets
FROM OPERATIONS ................ $99,976 $10,790 $4,034 $ 9,616 $16,529
======= ======= ====== ======= ========
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
27
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
================================================================================
<TABLE>
<CAPTION>
STI CLASSIC FUNDS FOR THE PERIODS ENDED NOVEMBER 30, 1999, MAY 31, 1999, AND NOVEMBER 30, 1998
PRIME QUALITY TAX-EXEMPT TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------ ------------------- ----------------------------
06/01/99- 06/01/98- 06/01/99- 06/01/98- 06/01/99- 12/01/98- 12/01/97-
11/30/99 05/31/99 11/30/99 05/31/99 11/30/99 05/31/99 11/30/98
--------- --------- --------- --------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME ..... $ 99,989 $ 125,543 $ 10,820 $ 20,454 $ 4,034 $ 3,806 $ 7,024
Net Realized Gain (Loss)
on Investments (13) (19) (30) (1) -- -- (9)
--------- -------- -------- -------- -------- ------- -------
Increase in Net Assets
from Operations 99,976 125,524 10,790 20,453 4,034 3,808 7,015
--------- -------- -------- -------- -------- ------- -------
Distributions to Shareholders:
Net Investment Income:
Trust Shares .............. (78,547) (99,427) (8,978) (16,665) (3,894) (3,739) (6,778)
Investor Shares ........... (21,094) (26,132) (1,854) (3,788) (140) (91) (239)
Flex Shares................ (9) -- -- -- -- -- --
--------- -------- -------- -------- -------- ------- -------
Total Distributions ..... (99,650) (125,559) (10,832) (20,453) (4,034) (3,830) (7,017)
--------- -------- -------- -------- -------- ------- -------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued 3,497,130 4,698,805 295,775 984,432 204,843 246,896 369,536
Shares Issued in Connection
with Crestar Merger ... -- 1,179,761 -- -- -- -- --
Reinvestment of Cash
Distributions 4,055 4,306 -- -- -- -- --
Cost of Shares Redeemed ... (4,399,167)(3,859,828) (471,237) (790,815)(179,639) (247,343) (325,471)
---------- ---------- -------- -------- -------- -------- --------
Increase (Decrease) in Net
Assets From
Trust Share Transactions (897,982) 2,023,044 (175,462) 193,617 25,204 (447) 44,065
---------- ---------- -------- -------- -------- -------- --------
Investor Shares:
Proceeds from Shares Issued 568,351 1,199,739 227,234 356,214 16,385 5,749 22,060
Shares Issued in Connection
with Crestar Merger ... -- 187,089 -- -- -- -- --
Reinvestment of Cash
Distributions 23,857 24,846 2,137 3,497 155 110 237
Cost of Shares Redeemed ... (571,787) (905,401) (231,320) (365,395) (14,087) (8,754) (21,081)
---------- ---------- -------- -------- -------- -------- --------
Increase (Decrease) in Net
Assets From Investor
Share Transactions 20,421 506,273 (1,949) (5,684) 2,453 (2,895) 1,216
---------- ---------- -------- -------- -------- -------- --------
Flex Shares:
Proceeds from Shares Issued 2,237 -- -- -- -- -- --
Reinvestment of Cash
Distributions 9 -- -- -- -- -- --
Cost of Shares Redeemed ... (238) -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- --------
Increase (Decrease) in Net
Assets From
Flex Share Transactions 2,008 -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- --------
Increase (Decrease) in Net
Assets From Share
Transactions (875,553) 2,529,317 (177,411) 187,933 27,657 (2,895) 45,281
---------- ---------- -------- -------- -------- -------- --------
Total Increase (Decrease) in
Net Assets.......... (875,227) 2,529,282 (177,453) 187,933 27,657 (3,364) 5,279
---------- ---------- -------- -------- -------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
STI CLASSIC FUNDS FOR THE PERIODS ENDED NOVEMBER 30, 1999, MAY 31, 1999, AND NOVEMBER 30, 1998
U.S. GOVERNMENT U.S. TREASURY
SECURITIES SECURITIES
MONEY MARKET FUND MONEY MARKET FUND
------------------- ---------------------------
06/01/99-06/01/98- 06/01/99 12/01/98- 12/01/97-
11/30/99 05/31/99 11/30/99 05/31/99 11/30/98
--------- -------- -------- --------- ---------
NET INVESTMENT INCOME ..... $ 9,530 $ 20,487 $ 16,529 $ 15,437 $ 29,481
<S> <C> <C> <C> <C> <C>
Net Realized Gain (Loss)
on Investments 86 191 -- -- --
--------- -------- -------- -------- ---------
Increase in Net Assets
from Operations 9,616 20,678 16,529 15,437 29,481
--------- -------- -------- -------- ---------
Distributions to Shareholders:
Net Investment Income:
Trust Shares .............. (8,297) (17,844) (16,527) (15,522) (29,476)
Investor Shares ........... (1,319) (2,641) -- -- --
Flex Shares................ -- -- -- -- --
--------- -------- -------- -------- ---------
Total Distributions ..... (9,616) (20,485) (16,527) (15,522) (29,476)
--------- -------- -------- -------- ---------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares Issued 289,826 739,766 535,124 681,589 1,131,937
Shares Issued in Connection
with Crestar Merger ... -- -- -- -- --
Reinvestment of Cash
Distributions 827 1,170 7 1 4
Cost of Shares Redeemed ... (328,348) (714,135) (571,699) (620,595)(1,064,404)
--------- -------- -------- -------- ----------
Increase (Decrease) in Net
Assets From
Trust Share Transactions (37,695) 26,801 (36,568) 60,995 67,537
--------- -------- -------- -------- ----------
Investor Shares:
Proceeds from Shares Issued 129,598 294,871 -- -- --
Shares Issued in Connection
with Crestar Merger ... -- -- -- -- --
Reinvestment of Cash
Distributions 1,475 2,578 -- -- --
Cost of Shares Redeemed ... (133,675) (294,755) -- -- --
--------- -------- -------- -------- ----------
Increase (Decrease) in Net
Assets From Investor
Share Transactions (2,602) 2,694 -- -- --
--------- -------- -------- -------- ----------
Flex Shares:
Proceeds from Shares Issued -- -- -- -- --
Reinvestment of Cash
Distributions -- -- -- -- --
Cost of Shares Redeemed ... -- -- -- -- --
--------- -------- -------- -------- ----------
Increase (Decrease) in Net
Assets From
Flex Share Transactions -- -- -- -- --
--------- -------- -------- -------- ----------
Increase (Decrease) in Net
Assets From Share
Transactions (40,297) 29,495 (36,568) 60,995 67,537
--------- -------- -------- -------- ----------
Total Increase (Decrease) in
Net Assets.......... (40,297) 29,688 (36,566) 60,910 67,542
--------- -------- -------- -------- ----------
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
================================================================================
(UNAUDITED)
<TABLE>
<CAPTION>
PRIME QUALITY TAX-EXEMPT TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------ --------------------- -----------------------------
06/01/99-06/01/98- 06/01/99- 06/01/98- 06/01/99- 12/01/98- 12/01/97-
11/30/99 05/31/99 11/30/99 05/31/99 11/30/99 05/31/99 11/30/98
-------- --------- --------- --------- --------- --------- ---------
Net Assets:
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period ......... $4,821,332 $2,292,050 $770,494 $ 582,561 $ 276,386 $279,750 $234,471
---------- ---------- -------- ---------- --------- -------- --------
END OF PERIOD ............... 3,946,105 4,821,332 593,041 770,494 304,043 276,386 279,750
========== ========== ======== ========== ========= ======== ========
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued ............. 3,497,130 4,698,805 295,775 984,432 204,843 246,896 369,536
Shares Issued in Connection with
Crestar Merger ... -- 1,179,840 -- -- -- -- --
Shares Issued in Lieu of
Cash Distributions 4,055 4,306 -- -- -- -- --
Shares Redeemed ........... (4,399,004)(3,859,828) (471,237) (790,815) (179,639) (247,343)(325,471)
---------- ---------- -------- ---------- --------- -------- --------
Net Trust Share Transactions (897,819) 2,023,123 (175,462) 193,617 25,204 (447) 44,065
---------- ---------- -------- ---------- --------- -------- --------
Investor Shares:
Shares Issued ............. 568,351 1,199,740 227,234 356,214 16,385 5,749 22,060
Shares Issued in Connection with
Crestar Merger ... -- 187,089 -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions 23,857 24,846 2,137 3,497 155 110 237
Shares Redeemed ........... (571,786) (905,433) (231,320) (365,395) (14,087) (8,754) (21,081)
---------- --------- -------- ---------- --------- -------- --------
Net Investor Share
Transactions 20,422 506,242 (1,949) (5,684) 2,453 (2,895) 1,216
--------- --------- -------- ---------- --------- -------- --------
Flex Shares:
Shares Issued............ 2,237 -- -- -- -- -- --
Shares Issued in Lieu of Cash
Distributions 9 -- -- -- -- -- --
Shares Redeemed.......... (238) -- -- -- -- -- --
--------- --------- -------- ---------- --------- -------- --------
Net Flex Share Transactions 2,008 -- -- -- -- -- --
--------- --------- -------- ---------- --------- -------- --------
Net Change in Capital Shares (875,389) 2,529,365 177,411 187,933 27,657 (3,342) 45,281
--------- --------- -------- ---------- --------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT U.S. TREASURY
SECURITIES SECURITIES
MONEY MARKET FUND MONEY MARKET FUND
--------------------- ---------------------------
06/01/99- 06/01/98- 06/01/9- 12/01/98- 12/01/97-
11/30/99 05/31/99 11/30/99 05/31/99 11/30/98
---------- --------- ----------------------------
Net Assets:
<S> <C> <C> <C> <C> <C>
Beginning of Period ......... $465,931 $436,243 $760,833 $ 699,923 $ 632,381
-------- -------- -------- --------- ---------
END OF PERIOD ............... 425,634 465,931 724,267 760,833 699,923
======== ======== ======== ========= =========
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued ............. 289,826 739,766 535,124 681,589 1,131,937
Shares Issued in Connection with
Crestar Merger ... -- -- -- -- --
Shares Issued in Lieu of
Cash Distributions 827 1,170 7 1 4
Shares Redeemed ........... (328,348) (714,135) (571,699) (620,595)(1,064,404)
-------- -------- -------- --------- ---------
Net Trust Share Transactions (37,695) 26,801 (36,568) 60,995 67,537
-------- -------- -------- --------- ---------
Investor Shares:
Shares Issued ............. 129,598 294,871 -- -- --
Shares Issued in Connection with
Crestar Merger ... -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions 1,475 2,578 -- -- --
Shares Redeemed ........... (133,675) (294,755) -- -- --
-------- -------- -------- --------- ---------
Net Investor Share
Transactions (2,602) 2,694 -- -- --
-------- -------- -------- --------- ---------
Flex Shares:
Shares Issued............ -- -- -- -- --
Shares Issued in Lieu of Cash
Distributions -- -- -- -- --
Shares Redeemed.......... -- -- -- -- --
-------- -------- -------- --------- ---------
Net Flex Share Transactions -- -- -- -- --
-------- -------- -------- --------- ---------
Net Change in Capital Shares (40,297) 29,495 (36,568) 60,995 67,537
-------- -------- -------- --------- ---------
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 1999 AND THE YEARS ENDED MAY
31, (UNLESS OTHERWISE NOTED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET
NET ASSET VALUE INVESTMENT
BEGINNING OF PERIOD INCOME
------------------- ----------
PRIME QUALITY MONEY MARKET FUND
Trust Shares
1999* $1.00 $ 0.02
1999 1.00 0.05
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.05
Investor Shares
1999* $1.00 $ 0.02
1999 1.00 0.05
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.05
Flex Shares
1999* $1.00 $ 0.01
TAX-EXEMPT MONEY MARKET FUND
Trust Shares
1999* $1.00 $ 0.01
1999 1.00 0.03
1998 1.00 0.03
1997 1.00 0.03
1996 1.00 0.03
1995 1.00 0.03
Investor Shares
1999* $1.00 $ 0.01
1999 1.00 0.03
1998 1.00 0.03
1997 1.00 0.03
1996 1.00 0.03
1995 1.00 0.03
TAX-FREE MONEY MARKET FUND (A)
Trust Shares
1999* $1.00 $0.01
1999** 1.00 0.01
For the Year Ended November 30:
1998 1.00 0.03
1997 1.00 0.03
1996 1.00 0.03
1995 1.00 0.03
Investor Shares
1999* $1.00 $0.01
1999** 1.00 0.01
For the Year Ended November 30:
1998 1.00 0.03
1997 1.00 0.03
1996 1.00 0.03
1995 1.00 0.03
NET ASSET
DISTRIBUTIONS FROM VALUE END
NET INVESTMENT INCOME OF PERIOD
------------------- ----------
PRIME QUALITY MONEY MARKET FUND
Trust Shares
1999* $(0.02) $1.00
1999 (0.05) 1.00
1998 (0.05) 1.00
1997 (0.05) 1.00
1996 (0.05) 1.00
1995 (0.05) 1.00
Investor Shares
1999* $(0.02) $1.00
1999 (0.05) 1.00
1998 (0.05) 1.00
1997 (0.05) 1.00
1996 (0.05) 1.00
1995 (0.05) 1.00
Flex Shares
1999* $(0.01) $1.00
TAX-EXEMPT MONEY MARKET FUND
Trust Shares
1999* $(0.01) $1.00
1999 (0.03) 1.00
1998 (0.03) 1.00
1997 (0.03) 1.00
1996 (0.03) 1.00
1995 (0.03) 1.00
Investor Shares
1999* $(0.01) $1.00
1999 (0.03) 1.00
1998 (0.03) 1.00
1997 (0.03) 1.00
1996 (0.03) 1.00
1995 (0.03) 1.00
TAX-FREE MONEY MARKET FUND (A)
Trust Shares
1999* $(0.01) $1.00
1999** (0.01) 1.00
For the Year Ended November 30:
1998 (0.03) 1.00
1997 (0.03) 1.00
1996 (0.03) 1.00
1995 (0.03) 1.00
Investor Shares
1999* $(0.01) $1.00
1999** (0.01) 1.00
For the Year Ended November 30:
1998 $(0.03) 1.00
1997 (0.03) 1.00
1996 (0.03) 1.00
1995 (0.03) 1.00
+ Total return is for the period indicated and has not been annualized.
* For the six month period ended November 30, 1999. All ratios have been
annualized. Total return is for the period indicated and has not been
annualized.
** For the period December 1, 1998 to May 31, 1999. All ratios for the period
have been annualized.
(A) On May 24, 1999, the CrestFund Tax-Free Money Fund exchanged all of its
assets and certain liabilities for shares of the Tax-Free Money Market Fund.
The CrestFund Tax-Free 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.
Amounts designated as "--" are either $0 or round to $0.
<PAGE>
================================================================================
NET ASSETS RATIO OF
TOTAL END OF EXPENSES TO
RETURN+ PERIOD (000) AVERAGE NET ASSETS
-------- ---------- ------------------
2.36% $3,005,510 0.60%
4.83% 3,903,232 0.60%
5.22% 1,880,229 0.59%
5.01% 1,086,555 0.58%
5.25% 1,050,800 0.58%
4.79% 799,189 0.58%
2.27% $ 938,587 0.77%
4.66% 918,100 0.77%
5.04% 411,821 0.76%
4.84% 283,544 0.75%
5.08% 215,696 0.75%
4.62% 157,616 0.75%
0.63% $ 2,008 0.48%
1.43% $ 466,143 0.52%
2.81% 641,640 0.52%
3.21% 448,023 0.51%
3.09% 333,006 0.50%
3.28% 273,613 0.50%
3.10% 215,413 0.45%
1.37% $ 126,898 0.63%
2.69% 128,854 0.64%
3.09% 134,538 0.62%
2.97% 102,013 0.62%
3.16% 95,223 0.62%
3.00% 87,647 0.55%
1.45% $ 295,634 0.51%
1.27% 270,431 0.67%
2.97% 270,899 0.66%
3.06% 226,837 0.66%
3.14% 182,320 0.66%
3.26% 202,333 0.66%
1.37% $ 8,409 0.67%
1.27% 5,955 0.67%
2.96% 8,851 0.67%
3.05% 7,634 0.68%
3.13% 2,994 0.67%
3.25% 1,627 0.67%
RATIO OF NET INVESTMENT
RATIO OF EXPENSES TO INCOME TO
NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS
INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS
AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS)
------------------ ------------------ ------------------
4.66% 0.75% 4.51%
4.69% 0.77% 4.52%
5.10% 0.77% 4.92%
4.90% 0.76% 4.72%
5.11% 0.78% 4.91%
4.77% 0.79% 4.56%
4.50% 0.92% 4.35%
4.52% 0.97% 4.32%
4.93% 0.98% 4.71%
4.74% 0.97% 4.52%
4.94% 1.00% 4.69%
4.55% 1.01% 4.29%
1.29% 0.78% 0.99%
2.81% 0.65% 2.68%
2.75% 0.66% 2.61%
3.14% 0.67% 2.98%
3.04% 0.66% 2.88%
3.23% 0.68% 3.05%
3.12% 0.70% 2.87%
2.72% 0.79% 2.56%
2.66% 0.82% 2.48%
3.04% 0.83% 2.83%
2.92% 0.83% 2.71%
3.10% 0.85% 2.87%
3.00% 0.87% 2.68%
2.88% 0.52% 2.87%
2.51% 0.82% 2.36%
2.92% 0.81% 2.77%
3.02% 0.81% 2.87%
2.88% 0.81% 2.73%
3.19% 0.81% 3.04%
2.70% 1.07% 2.30%
2.52% 1.06% 2.13%
2.92% 1.07% 2.52%
3.42% 1.08% 3.02%
2.86% 1.07% 2.46%
3.16% 1.07% 2.76%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
31
<PAGE>
FINANCIAL HIGHLIGHTS (concluded)
================================================================================
STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 1999 AND THE YEARS ENDED MAY
31, (UNLESS OTHERWISE NOTED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET
NET ASSET VALUE INVESTMENT
BEGINNING OF PERIOD INCOME
------------------- ----------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Trust Shares
1999*** $1.00 $ 0.02
1999 1.00 0.04
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.05
Investor Shares
1999*** $1.00 $ 0.02
1999 1.00 0.04
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.04
U.S. TREASURY MONEY MARKET FUND (A)
Trust Shares
1999*** $1.00 $ 0.02
1999** 1.00 0.02
For the Year Ended November 30:
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.05
NET ASSET
DISTRIBUTIONS FROM VALUE END
NET INVESTMENT INCOME OF PERIOD
------------------- ----------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Trust Shares
1999*** $1.00 $ 0.02
1999 1.00 0.04
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.05
Investor Shares
1999*** $1.00 $ 0.02
1999 1.00 0.04
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.04
U.S. TREASURY MONEY MARKET FUND (A)
Trust Shares
1999*** $1.00 $ 0.02
1999** 1.00 0.02
For the Year Ended November 30:
1998 1.00 0.05
1997 1.00 0.05
1996 1.00 0.05
1995 1.00 0.05
+ Total return is for the period indicated and has not been annualized.
* For the six month period ended November 30, 1999. All ratios have been
annualized. Total return is for the period indicated and has not been
annualized.
** For the period December 1, 1998 to May 31, 1999. All ratios for the period
have been annualized.
(A) On May 24, 1999, the CrestFund Tax-Free Money Fund exchanged all of its
assets and certain liabilities for shares of the Tax-Free Money Market Fund.
The CrestFund Tax-Free 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.
32
<PAGE>
================================================================================
(UNAUDITED)
NET ASSETS RATIO OF
TOTAL END OF EXPENSES TO
RETURN+ PERIOD (000) AVERAGE NET ASSETS
-------- ---------- ------------------
2.23% $ 366,763 0.63%
4.57% 404,459 0.63%
5.04% 377,490 0.62%
4.83% 344,350 0.61%
5.14% 325,493 0.61%
4.67% 434,111 0.61%
2.16% $ 58,871 0.77%
4.41% 61,472 0.77%
4.90% 58,753 0.76%
4.69% 63,178 0.75%
4.99% 58,608 0.75%
4.51% 46,639 0.75%
2.22% $ 724,267 0.63%
2.08% 760,833 0.68%
4.89% 699,923 0.66%
4.91% 632,381 0.65%
4.80% 389,051 0.66%
5.29% 370,454 0.66%
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES TO INCOME TO
NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS
INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS
AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS)
------------------ ------------------ ------------------
4.40% 0.75% 4.27%
4.47% 0.76% 4.34%
4.92% 0.78% 4.76%
4.73% 0.76% 4.58%
5.02% 0.78% 4.85%
4.64% 0.80% 4.45%
4.26% 0.97% 4.06%
4.32% 0.98% 4.11%
4.79% 0.96% 4.59%
4.59% 0.96% 4.38%
4.88% 0.99% 4.64%
4.51% 1.02% 4.24%
4.39% 0.76% 4.26%
4.10% 0.83% 3.95%
4.77% 0.81% 4.62%
4.82% 0.80% 4.67%
4.69% 0.81% 4.54%
5.16% 0.81% 5.01%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
<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 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, 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" or the "Funds"), the Classic
Institutional Cash Management Money Market Fund, the Classic Institutional U.S.
Government Securities Money Market Fund and the Classic Institutional U.S.
Treasury Securities Money Market Fund, (collectively the "Institutional Money
Market Funds"). The assets of each portfolio are segregated, and a shareholder's
interest is limited to the fund in which shares are held. Each fund's prospectus
provides a description of the fund's investment objectives, policies and
strategies. The financial statements presented herein are those of the Retail
Money Market Funds. The financial statements of the Equity Funds, the Fixed
Income Funds and the Institutional 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 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 Trust 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 CrestFunds in a tax-free business
combination. While each Fund now exists as a 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 Funds are stated at
amortized cost, which approximates market value.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company for Federal income tax purposes and distribute
34
<PAGE>
================================================================================
(UNAUDITED)
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. Transactions with Affiliates:
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 SEI Investments 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.
35
<PAGE>
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.
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 agreements, the Funds are charged the following annual fees
based upon average daily net assets:
MAXIMUM MAXIMUM
MAXIMUM TRUST INVESTOR INVESTOR FLEX FLEX
ANNUAL SHARE SHARE SHARE SHARE SHARE
ADVISORY MAXIMUM DISTRIBUTION MAXIMUM DISTRIBUTION MAXIMUM
FEE EXPENSE FEE EXPENSE FEE EXPENSE
-------- --------- ------------ ---------- ------------ ----------
Prime
Quality
Money
Market
Fund .65% .60% .20% .77% .75% 1.50%
Tax-Exempt
Money
Market
Fund .55 .62 .15 .64 -- --
Tax-Free
Money
Market
Fund .40 .51 .40 .67 -- --
U.S. Government
Securities
Money
Market
Fund .65 .63 .17 .77 -- --
U.S. Treasury
Money
Market
Fund .65 .63 -- -- -- --
The Investment Advisor has 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, Crestar Asset Management Company ("CAMCO") provided
investment advisory services to the CrestFunds. CAMCO was paid for advisory
services to each CrestFund money market fund at an annual rate of .40% of
each CrestFund money market fund's average daily net assets for the first
$500 million of net assets, .35% of each Fund's average daily net assets on the
next $500 million of net assets, .30% of each money market fund's average
daily net assets on all remaining net assets.
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.
6. Investment Transactions:
At May 31, 1999, the Prime Quality Money Market Fund and the Tax-Exempt Money
Market Fund had capital loss carryforwards for Federal tax purposes of $314,064
and $3,830, respectively, resulting from security sales. For tax purposes, the
losses in the Funds can be carried forward for a maximum of eight years to
offset any net realized capital gains. The carryforward for the Prime Quality
Money Market Fund expires between May 2003 and May 2005 and the carryforward for
the Tax-Exempt Money Market Fund expires between May 2004 and May 2007.
36
<PAGE>
================================================================================
(UNAUDITED)
7. CrestFunds Merger:
The Board of Directors and shareholders of the CrestFunds approved a
reorganization of the CrestFunds into the STI Classic Funds which was effective
on May 17, 1999 for the Prime Quality Money Market Fund and May 24, 1999 for the
Tax-Free Money Market Fund and U.S. Treasury Money Market Fund.
The following table summarizes certain relevant information of the Funds prior
to and immediately after 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
CRESTFUND DATE STI CLASSIC FUND COMBINATION COMBINATION SHARE
------------ ------------- ------------------------- ------------ -------------- ------------
Cash Reserve Prime Quality Money Market (2)
<S> <C> <C> <C> <C>
Trust Shares 1,179,840,320 Trust Shares 1,179,992,513 3,898,000,842 $1.00
Investor Class A 187,019,982 Investor Shares 187,134,402 897,327,829 1.00
Investor Class B (1) 68,609 Flex Shares n/a n/a n/a
U.S. Treasury Money Fund (2) U.S. Treasury Money Market
Trust Shares 278,919,943 Trust Shares 278,919,943 278,898,164 1.00
Investor Class A 5,967,857 Investor Shares 5,967,857 5,968,442 1.00
Tax Free Money Fund (2) Tax-Free Money Market
Trust Shares 732,825,211 Trust Shares 732,825,211 732,779,926 1.00
</TABLE>
(1) Investor Class B Shares of the CrestFunds Cash Reserve Fund were exchanged
for Investor Shares of the STI Classic Prime Quality Money Market Fund.
(2) Represents the accounting survivor in this business combination.
8. Concentration of Credit Risk:
The Prime Quality Money Market Fund invests primarily in high quality money
market instruments rated in the highest short-term rating category by Standard &
Poor's Ratings Group ("S&P") or Moody's Investors Services, Inc. (Moody's) or,
if not rated, are determined by the Investment Advisor to be of comparable
quality. The Tax-Exempt Money Market and Tax-Free Money Market Funds invest in
high quality, U.S. dollar denominated municipal securities rated in one of the
two highest short-term rating categories or, if not rated, are determined by the
Investment Advisor to be of comparable quality. The U.S. Government Securities
Money Market and U.S. Treasury Money Market Funds invest exclusively 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.
37
<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.
