ANNUAL
................................................................................
FINANCIAL REPORT
................................................................................
STI CLASSIC FUNDS
................................................................................
A Family of Mutual Funds
................................................................................
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
May 31, 2000
(LOGO) [GRAPHIC OMITTED]
<PAGE>
<PAGE>
Dear Valued STI Classic Trust Shareholder:
The period corresponding to the STI Classic Funds' fiscal year ending May 31,
2000 is perhaps one of the most unusual in the history of modern financial
markets. The U.S. economy continued on its growth path, extending the longest
period of uninterrupted expansion. In fact, economic growth actually
accelerated, prompting the Federal Reserve (the "Fed") to announce a series of
rate increases. The capital markets responded by rewarding risk in equity
securities and punishing it in fixed income markets. On the equity side,
technology stocks were prominent, as evidenced by the 37.7% rise in the NASDAQ
Composite Index and even greater 59.1% appreciation in the larger stocks of the
NASDAQ 100 Index. Small cap stocks did well, predominantly because of technology
and biotechnology stocks; the S&P 600 Small Cap Index rose 14.2%. Mid-cap stocks
did even better, with the S&P 400 Mid-Cap Index up 21.5%, but again due to
technology. Overall, many stocks did not do well as Fed tightening weighed
heavily on performance. The broader S&P 500 Composite Index was up a more modest
10.5%, while the Dow Jones Industrial Average only achieved a 1.2% positive
return. Within style categories, growth stocks enjoyed a record advantage over
value stocks, a condition which began to reverse only in the last three months
of the STI Classic Funds fiscal year.
On the fixed income side, total returns in bonds were modest, as typified by the
1.9% gain in the Lehman U.S. Government/Corporate Bond Index for longer term
taxable bonds, the 3.5% return in the Merrill Lynch 1-5 Year U.S. Corporate/
Government Index, and very modest returns in short to intermediate-term
municipal bonds. Within the bond arena, investment grade and high yield bonds
were under pressure, while top quality Government bonds prospered. To repeat,
there was a disconnect between risk/reward as equity investors were very
positive and bond investors were negative.
As the new fiscal year begins for the STI Classic Fund family, we are encouraged
by the broadening out of the equity market. Technology stocks have recently
corrected significantly and small and mid-caps have done better. Importantly,
value oriented stocks outperformed in March/April/May. Tight Fed policy and
rising money market rates due to rapid economic growth are not good for stocks.
Thus, recent signs of slower economic growth are welcome and stocks will do
better once the Fed suspends its tight monetary stance. We also believe the very
wide yield spreads available in non-Government fixed income securities will
prove rewarding over the next 12-24 months. The STI Classic Funds have never
been stronger in terms of product breadth and potential for long-term growth. We
thank all Fund shareholders for their confidence in the STI Classic Family. We
will work hard to deliver competitive results in the months and years ahead.
Sincerely
/S/signature omitted
Douglas S. Phillips
President and Chief Investment Officer
Trusco Capital Management, Inc.
1
<PAGE>
STI CLASSIC PRIME QUALITY MONEY MARKET FUND
-------------------------------------------
The investment objective of the STI Classic Prime Quality Money Market Fund (the
"Fund") is to provide as high a level of current income as is consistent with
the preservation of capital and liquidity by investing exclusively in high
quality money market instruments. The investment discipline, which we use in
managing the Fund, emphasizes adding incremental value through yield curve,
sector and credit analysis. Investments are made in those sectors, credits, and
segments of the yield curve within the universe of money market eligible
securities, which offer the most attractive risk/reward trade-off and current
yield. The maturity structure and average maturity of the Fund are actively
managed to maximize the yield of the Fund based on the current market rates and
conditions and our market outlook.
The Federal Reserve raised the Federal Funds rate six times and a total of 1.75%
during the Fund's fiscal year ending May 31, 2000. The Fed Funds rate increases
led to a similar increase in the yields for short-term money market securities
and money market funds.
The Fund shifted to a below average maturity and increased its holdings of
floating rate securities during the year ending May 31, 2000. This strategy,
along with good security selection allowed the Fund to maximize its yield during
the rising rate environment, which led to a very competitive return as compared
to its peer money market funds.
The Fund (Trust Shares) had a one year return of 5.20% for the year ending May
31, 2000. The Fund's peer group return, as measured by the iMoneyNet, Inc. First
Tier Money Fund Average, was 5.01% for the same period.
/s/signature omitted
David S. Yealy
Vice President
STI CLASSIC TAX-EXEMPT MONEY MARKET FUND
-------------------------------------------
The STI Classic Tax-Exempt Money Market Fund (the "Fund") seeks to provide as
high a level of current interest income exempt from regular federal income tax
as is consistent with preserving capital and liquidity. The Fund invests in high
quality, U.S. dollar-denominated municipal securities of issuers located in all
fifty states, the District of Columbia, and Puerto Rico.
During most of this period, the Fund maintained a shorter average maturity to
take advantage of higher interest rates. We continue to look for opportunities
to extend when market conditions are advantageous in order to maximize the yield
of the Fund.
/s/signature omitted
Mary F. Cernilli
Vice President
2
<PAGE>
STI CLASSIC TAX-FREE MONEY MARKET FUND
-------------------------------------------
The STI Classic Tax-Free Money Market Fund ("the Fund") celebrates its first
anniversary in the STI Classic family of mutual funds. We are pleased to be a
part of diversified group of funds offering equity, bond, and money market funds
in a variety of investment styles aimed at helping our clients achieve their
investment goals.
The Fund strives to maximize tax-free investment income for Virginia residents,
while maintaining a stable asset value of $1/share. Our security selection
process for this fund emphasizes high quality and high liquidity municipal
issuers. This fund is intended for clients seeking capital preservation, or
those who wish to improve their tax-exempt income on idle balances.
This investment style, and the Fund in particular, performed well in the year
ended May 31, 2000. The domestic economy continued to show robust growth, with
the length of the current expansion reached an all-time record by February.
Consumer spending remained high, while industrial and manufacturing activity
rebounded with the improved growth in the global economy. The unemployment rate
reached a 30-year low, while consumer optimism reached new highs.
In an environment of strong growth and increased economic pressures, the Federal
Reserve (the "Fed") intervened to raise short-term interest rates in an attempt
to cool the economy and head off rising inflation risks. The initial moves to
restrain the economy were gradual 0.25% increases. However, as the pace of the
economy showed few signs of slowing, the Fed decided to take a more aggressive
stance in May, raising the overnight federal funds rate by 0.50%. This brought
the cumulative of the six interest rate increases to 1.75% over the past year.
Our strategy in this increasingly restrictive environment was to keep the
average maturity of the portfolio relatively short and highly liquid so that the
fund's yield would move higher as the Fed raised interest rates. We believe this
strategy was successful and benefited our shareholders.
Looking ahead, we see increasing signs that the economy will slow under the
weight of the Fed interest rate hikes. As the pace of the expansion slows to a
more sustainable level, the need for higher interest rates should diminish,
representing an opportunity to lock in high current yields.
Again, we thank you for investing in the STI Classic Tax-Free Money Market Fund,
and we look forward to serving your investment needs in the year ahead.
/s/signature omitted
Robert S. Bowman, CFA
Vice President
3
<PAGE>
STI CLASSIC U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
--------------------------------------------------------
The investment objective of the STI Classic U.S. Government Securities Money
Market Fund (the "Fund") is to provide as high a level of current income as is
consistent with the preservation of capital and liquidity by investing
exclusively in eligible money market securities. Eligible securities include
U.S. Treasury securities, U.S. Government Subsidiary Corporation securities that
are backed by the full faith and credit of the U.S. Government, and repurchase
agreements ("repos") collateralized by U.S. Treasury obligations and U.S.
Government Subsidiary Corporation securities. The investment discipline, which
is used in managing the Fund, emphasizes adding incremental value through yield
curve analysis. The maturity structure and average maturity of the Fund are
actively managed to maximize the yield of the Fund over time based on the
current market rates and conditions and our market outlook.
The Federal Reserve raised the Federal Funds Rate six times and a total of 1.75%
during the Fund's fiscal year ending May 31, 2000. The Fed Funds rate increases
led to a similar increase in the yields for short-term money market securities
and money market funds.
The Fund was able to provide a competitive return as compared to its peer money
market funds during the year ending May 31, 2000 by maintaining a shorter than
average maturity with the majority of the Fund's assets invested in extremely
short securities that increased in rates in line with the Fed Funds rate
increases.
/s/signature omitted
David S. Yealy
Vice President
4
<PAGE>
STI CLASSIC U.S. TREASURY MONEY MARKET FUND
-------------------------------------------
The STI Classic U.S. Treasury Money Market Fund ("the Fund") celebrates its
first anniversary in the STI Classic family of mutual funds. We are pleased to
be a part of diversified group of funds offering equity, bond, and money market
funds in a variety of investment styles aimed at helping our clients achieve
their investment goals.
The Fund strives to maximize taxable investment income, while maintaining a
stable asset value of $1/share. The Fund invests solely in short-term U.S.
Treasury securities and repurchase agreements backed by U.S. Treasury
Securities. This Fund is intended for clients seeking capital preservation, or
those who wish to improve their taxable income on idle balances.
This investment style, and the Fund in particular, performed well in the year
ended May 31, 2000. The domestic economy continued to show robust growth, with
the length of the current expansion reached an all-time record by February.
Consumer spending remained high, while industrial and manufacturing activity
rebounded with the improved growth in the global economy. The unemployment rate
reached a 30-year low, while consumer optimism reached new highs.
In an environment of strong growth and increased economic pressures, the Federal
Reserve ("the Fed") intervened to raise short-term interest rates in an attempt
to cool the economy and head off rising inflation risks. The initial moves to
restrain the economy were gradual 0.25% increases. However, as the pace of the
economy showed few signs of slowing, the Fed decided to take a more aggressive
stance in May, raising the overnight federal funds rate by 0.50%. This brought
the cumulative of the six interest rate increases to 1.75% over the past year.
Our strategy in this increasingly restrictive environment was to keep the
average maturity of the portfolio relatively short and highly liquid so that the
Fund's yield would move higher as the Fed raised interest rates. We believe this
strategy was successful and benefited our shareholders.
Looking ahead, we see increasing signs that the economy will slow under the
weight of the Fed interest rate hikes. As the pace of the expansion slows to a
more sustainable level, the need for higher interest rates should diminish,
representing an opportunity to lock in high current yields.
Again, we thank you for investing in the STI Classic U.S. Treasury Money Market
Fund, and we look forward to serving your investment needs in the year ahead.
/s/signature omitted
Robert S. Bowman, CFA
Vice President
5
<PAGE>
STATEMENT OF NET ASSETS
------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
PRIME QUALITY MONEY MARKET FUND
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
COMMERCIAL PAPER (30.4%)
AEROSPACE/DEFENSE EQUIPMENT (0.2%)
United Technologies
6.350%, 06/01/00 $ 10,000 $ 10,000
---------
ELECTRIC PRODUCTS (0.6%)
Emerson Electric
6.770%, 06/01/00 27,000 27,000
---------
FINANCIAL SERVICES (16.3%)
American Express
6.750%, 06/02/00 9,222 9,220
Associates First Capital
6.770%, 06/01/00 170,000 170,000
Bell Atlantic Funding
6.400%, 06/13/00 11,300 11,276
Bell Atlantic Net Funding
6.400%, 06/14/00 30,000 29,931
6.440%, 06/20/00 21,500 21,427
BellSouth Capital
6.800%, 06/01/00 12,000 12,000
Cargill Global
6.790%, 06/01/00 36,610 36,610
KFW International Finance
6.750%, 06/02/00 2,550 2,550
Paccar Financial
6.390%, 06/02/00 4,140 4,139
Progress Capital
6.520%, 06/05/00 13,400 13,390
6.550%, 06/08/00 29,300 29,263
6.550%, 06/08/00 6,400 6,392
6.530%, 06/15/00 12,800 12,768
6.570%, 06/22/00 16,600 16,536
Prudential Funding
6.790%, 06/01/00 175,000 175,000
Teco Finance
6.370%, 06/12/00 60,000 59,883
6.490%, 06/21/00 18,750 18,682
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
FINANCIAL SERVICES--CONTINUED
UBS Finance
6.790%, 06/01/00 $125,000 $ 125,000
---------
754,067
---------
HOUSEHOLD PRODUCTS (0.1%)
Procter & Gamble
6.400%, 06/01/00 4,000 4,000
6.400%, 06/02/00 2,000 2,000
---------
6,000
---------
INSURANCE (0.8%)
Allstate
6.770%, 06/01/00 35,000 35,000
---------
INVESTMENT BANKERS/BROKER DEALERS (3.9%)
Deutsche Bank
6.350%, 06/01/00 1,500 1,500
6.370%, 06/07/00 10,486 10,475
6.500%, 06/09/00 20,000 19,971
Merrill Lynch
6.520%, 06/13/00 4,000 3,991
Morgan Stanley Dean Witter
6.780%, 06/01/00 70,000 70,000
6.880%, 08/24/00 (C) 75,000 75,000
---------
180,937
---------
LEASING EQUIPMENT (0.5%)
Pitney Bowes
6.750%, 06/01/00 24,700 24,700
---------
RETAIL (3.9%)
Albertson's
6.500%, 06/05/00 19,000 18,986
American Greetings
6.340%, 06/06/00 20,000 19,982
Eastman Kodak
6.350%, 06/05/00 2,627 2,625
6
<PAGE>
--------------------------------------------------------------------------------
FACE AMOUNT
(000 VALUE (000)
-------------------------------------------------------------------------------
RETAIL--CONTINUED
Fortune Brands
6.770%, 06/01/00 $ 22,800 $ 22,800
6.400%, 06/08/00 42,000 41,948
Gap
6.550%, 06/26/00 3,100 3,086
Wal-Mart
6.450%, 06/05/00 70,000 69,950
---------
179,377
---------
TELEPHONE & TELECOMMUNICATIONS (0.2%)
BellSouth Telecomm
6.340%, 06/01/00 7,100 7,100
SBC Communications
6.420%, 06/14/00 400 399
---------
7,499
---------
UTILITIES (3.9%)
Consolidated Edison
6.780%, 06/01/00 27,000 27,000
Edison International
6.520%, 06/16/00 29,000 28,921
6.520%, 06/22/00 17,000 16,935
Georgia Power
6.400%, 06/05/00 17,646 17,633
Kansas City P&L
6.420%, 06/12/00 10,700 10,679
Pacific Gas & Electric
6.550%, 06/07/00 2,780 2,777
South Carolina Electric & Gas
6.530%, 06/21/00 12,450 12,405
Southern California Edison
6.520%, 06/22/00 12,000 11,954
Tampa Electric
6.760%, 06/01/00 51,400 51,400
---------
179,704
---------
Total Commercial Paper
(Cost $1,404,284) 1,404,284
---------
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (47.5%)
BANKS (15.6%)
Amsouth Bank (C)
6.659%, 06/22/00 $ 50,000 $ 49,995
6.900%, 07/25/00 50,000 49,990
Bank One, MTN (C)
6.200%, 06/13/00 40,000 39,995
6.241%, 06/23/00 33,945 33,944
6.781%, 08/18/00 500 500
Bankers Trust, MTN (C)
6.240%, 06/16/00 2,400 2,401
Beneficial, MTN (C)
6.181%, 06/01/00 40,000 40,000
Branch Banking & Trust (C)
6.830%, 06/09/00 50,000 49,981
7.030%, 06/15/00 25,000 24,994
6.880%, 08/01/00 65,000 64,978
Comerica Bank (C)
6.563%, 08/30/00 121,000 121,000
Fleet Boston, MTN (C)
6.445%, 07/28/00 40,000 39,999
Fleet National Bank (C)
7.010%, 07/28/00 5,000 5,004
Huntington National Bank (C)
6.360%, 07/21/00 80,000 80,003
Key Bank (C)
7.010%, 07/26/00 20,000 20,016
Keycorp, Ser C, MTN (C)
6.641%, 06/23/00 5,000 5,001
Keycorp, MTN (C)
6.833%, 08/07/00 2,000 2,001
PNC Bank (C)
6.445%, 06/12/00 90,000 89,989
Wachovia Bank (C)
6.255%, 06/28/00 1,500 1,500
---------
721,291
---------
7
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
PRIME QUALITY MONEY MARKET FUND--CONTINUED
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
ENTERTAINMENT (1.4%)
Walt Disney
6.375%, 03/30/01 $ 17,325 $ 17,266
Walt Disney (A)
4.200%, 03/15/01 50,000 49,050
---------
66,316
---------
FINANCE (16.4%)
American Express Centurion (C)
6.730%, 06/19/00 1,000 1,000
6.720%, 06/08/00 35,000 35,000
American General Financial, MTN
5.840%, 01/29/01 6,000 5,961
Associates (A)
6.450%, 09/15/00 5,290 5,288
AT&T Capital, MTN
6.875%, 01/16/01 3,700 3,700
AT&T Capital, MTN (C)
7.594%, 06/14/00 50,000 50,025
6.971%, 07/07/00 30,000 30,103
Bell Atlantic Network Funding
6.550%, 06/27/00 45,000 45,000
Beta Finance (C)
6.430%, 07/25/00 50,000 49,998
Beta Finance, MTN (C)
6.418%, 07/05/00 25,000 25,000
Beta Finance, MTN (A)
6.800%, 02/15/01 25,000 25,000
Caterpillar Finance, MTN (C)
6.680%, 06/26/00 25,000 24,997
6.818%, 07/10/00 18,000 18,000
Caterpillar Financial Services,
MTN (C)
6.281%, 07/17/00 2,000 2,000
Chrysler Financial
5.875%, 02/07/01 1,000 994
Chrysler Financial, MTN
6.080%, 03/09/01 5,000 4,959
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
FINANCE--CONTINUED
Diageo Capital PLC
6.815%, 08/24/00 $ 80,000 $ 80,001
Ford Motor Credit
5.750%, 01/25/01 1,500 1,489
Ford Motor Credit, MTN (C)
6.870%, 08/07/00 5,000 5,000
GMAC, MTN
7.500%, 06/09/00 1,650 1,651
GMAC, MTN (C)
6.390%, 07/24/00 3,000 3,002
GMAC, MTN
6.800%, 05/22/01 3,250 3,240
GMAC, MTN (C)
6.960%, 08/23/00 2,000 2,002
6.375%, 07/31/00 2,500 2,500
GTE California
5.625%, 02/01/01 13,000 12,881
Household Finance, MTN (C)
7.050%, 06/14/00 50,000 49,991
Paccar Financial, MTN (C)
6.219%, 06/05/00 20,000 20,010
Sigma Finance, MTN (A) (C)
6.440%, 08/01/00 50,000 50,000
Sigma Finance, MTN
6.970%, 04/03/01 50,000 50,000
Toyota Motor Credit, MTN (C)
6.460%, 07/25/00 50,000 50,028
6.523%, 08/30/00 100,000 100,000
---------
758,820
---------
FOOD, BEVERAGE & TOBACCO (2.4%)
Sara Lee
6.180%, 06/01/00 11,000 11,000
6.420%, 06/08/00 50,000 50,000
6.550%, 06/19/00 50,000 50,000
---------
111,000
---------
REGIONAL GOVERNMENT AGENCY (0.0%)
Quebec Providence, MTN (C)
8.690%, 02/22/01 1,000 1,012
---------
8
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
INVESTMENT BANKERS/BROKER DEALERS (7.4%)
Bear Stearns (C)
6.710%, 06/26/00 $ 15,000 $ 14,996
Bear Stearns, Euro MTN, (C)
6.765%, 06/30/00 21,600 21,621
Bear Stearns, MTN, (C)
6.275%, 06/07/00 2,500 2,502
6.714%, 06/19/00 13,000 13,005
Bear Stearns, MTN, (C)
6.398%, 06/02/00 12,450 12,465
Bear Stearns, Ser B, MTN (C)
6.331%, 07/10/00 5,450 5,448
6.380%, 06/15/00 5,000 5,001
7.223%, 07/05/00 50,000 50,000
Credit Suisse First Boston
Guernsey, MTN (C)
6.980%, 07/03/00 40,000 40,006
Goldman Sachs Group, MTN (C)
7.060%, 08/23/00 50,000 50,000
JP Morgan, MTN (C)
6.530%, 03/16/01 50,000 50,000
Merrill Lynch
6.500%, 04/01/01 3,438 3,426
Merrill Lynch, MTN (C)
5.920%, 06/07/00 50,000 49,996
Morgan Stanley Dean Witter,
MTN
6.890%, 06/16/00 (C) 5,000 5,000
5.625%, 02/28/01 20,000 19,821
---------
343,287
---------
LEASING EQUIPMENT (2.2%)
International Lease Finance
6.520%, 06/02/00 56,500 56,500
5.875%, 01/15/01 23,000 22,836
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
LEASING EQUIPMENT--CONTINUED
Xerox, MTN (C)
6.633%, 08/08/00 $ 20,000 $ 19,996
---------
99,332
---------
TELEPHONE & TELECOMMUNICATIONS (2.1%)
AT&T (C)
6.683%, 08/07/00 71,000 71,000
AT&T, MTN (C)
6.900%, 06/21/00 26,875 26,982
---------
97,982
---------
Total Corporate Obligations
(Cost $2,199,040) 2,199,040
---------
ASSET BACKED SECURITIES (0.6%)
Navistar Financial Owner Trust,
Ser 2000-A, Cl A1 (C)
6.080%, 03/15/01 3,427 3,426
Nissan Auto Receivables Owner
Trust, Ser 2000-A, Cl A1
6.125%, 02/15/01 19,905 19,904
Union Acceptance, Ser 2000-A,
Cl A1
5.993%, 02/08/01 2,809 2,809
---------
Total Asset Backed Securities
(Cost $26,139) 26,139
---------
BANK NOTES (1.0%)
Fleet National Bank (C)
6.318%, 07/26/00 40,000 39,994
Key Bank (C)
6.331%, 07/17/00 8,000 8,001
---------
Total Bank Notes
(Cost $47,995) 47,995
---------
CERTIFICATES OF DEPOSIT (1.3%)
Bank of America (C)
6.100%, 06/12/00 8,000 8,000
9
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
PRIME QUALITY MONEY MARKET FUND--CONCLUDED
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--CONTINUED
Citicorp (C)
6.510%, 08/10/00 $ 11,585 $ 11,589
Regions Bank
6.700%, 02/02/01 40,000 39,987
---------
Total Certificates of Deposit
(Cost $59,576) 59,576
---------
CERTIFICATES OF DEPOSIT -- YANKEE (13.3%)
Bayerische Landesbank NY (C)
6.543%, 08/30/00 120,000 120,000
Canadian Imperial Bank NY
7.090%, 05/04/01 50,000 49,991
Commerzbank AG NY
6.860%, 04/04/01 25,000 24,994
Deutsche Bank NY
6.660%, 08/30/00 47,000 47,000
6.695%, 02/05/01 50,000 49,894
Landesbank Hessen-Thueringen
7.143%, 05/08/01 75,000 74,995
National Westminster Bank NY
7.260%, 05/09/01 47,000 46,996
Rabobank NY
7.160%, 05/10/01 25,000 24,998
Societe Generale NY (C)
6.573%, 08/29/00 125,000 125,000
UBS AG Stamford
6.850%, 03/28/01 50,000 49,984
---------
Total Certificates of Deposit -- Yankee
(Cost $613,852) 613,852
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.9%)
SLMA, MTN (C)
6.343%, 08/01/00 130,000 130,056
SLMA, Ser 1996-3, Cl A1 (C)
6.383%, 07/25/00 1,717 1,708
SLMA, Ser 1996-4, Cl A1 (C)
6.373%, 07/25/00 600 599
---------
-------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
-------------------------------------------------------------------------------
Total U.S. Government Agency
Obligations
(Cost $132,363) $ 132,363
---------
CASH EQUIVALENT (0.5%)
AIM Liquid Assets
Portfolio 25,000,000 25,000
---------
Total Cash Equivalent
(Cost $25,000) 25,000
---------
REPURCHASE AGREEMENTS (2.4%)
ABN-Amro
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$16,636,510 (collateralized
by FHLMC obligations: total
market value $35,326,201) (B) $ 16,634 16,634
Barclays
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$15,020,276 (collateralized by
FHLMC obligations: total
market value $15,318,468) (B) 15,018 15,018
Deutsche Bank
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$14,005,913 (collateralized
by FNMA obligations: total
market value $14,283,472) (B) 14,003 14,003
JP Morgan
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$4,597,567 (collateralized
by GNMA: total market
value $4,688,678) (B) 4,597 4,597
10
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Merrill Lynch
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$48,484,327 (collateralized
by various FNMA obligations:
total market value
$49,449,162) (B) $ 48,476 $ 48,476
Morgan Stanley Dean Witter
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$5,004,469 (collateralized by
FHLMC obligations: total
market value $5,211,226) (B) 5,004 5,004
Warburg Dillion
6.450%, dated 05/31/00, matures
06/01/00, repurchase price
$8,565,644 (collateralized
by a U.S. Treasury Note: total
market value $8,736,468) (B) 8,564 8,564
---------
Total Repurchase Agreements
(Cost $112,296) 112,296
---------
Total Investments (99.9%)
(Cost $4,620,545) 4,620,545
---------
OTHER ASSETS AND LIABILITIES, NET (0.1%) 6,782
---------
-------------------------------------------------------------------------------
VALUE (000)
-------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 3,311,671,156 outstanding shares
of beneficial interest $3,311,595
Fund shares of the Investor Shares (unlimited
authorization -- no par value) based
on 1,312,667,868 outstanding shares
of beneficial interest 1,312,668
Fund shares of the Flex Shares (unlimited
authorization -- no par value) based
on 3,445,570 outstanding shares of
beneficial interest 3,445
Undistributed net investment income 1
Accumulated net realized loss
on investments (382)
----------
Total Net Assets (100.0%) $4,627,327
==========
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 33.
11
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-EXEMPT MONEY MARKET FUND
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS (98.0%)
ALABAMA (2.3%)
Alabama, Special Care Facilities
Financing Authority,
Depreciable Assets, RB,
FGIC (C) (D)
3.950%, 06/07/00 $ 985 $ 985
Alabama State, Public School
& College Authority,
Putters, Ser 101, RB (C) (D)
5.000%, 06/01/00 9,975 9,975
Cherokee, Industrial
Development Board, BOC
Group Project, RB (C) (D) (E)
4.350%, 06/01/00 3,500 3,500
Lauderdale County, Health
Care Authority, Coffee Health
Group, Ser A, RB, MBIA
3.700%, 07/01/00 1,265 1,265
Mobile, Industrial Development,
Board Dock & Wharf Holnam
Project, Ser A, RB (C) (D) (E)
4.050%, 06/07/00 4,900 4,900
---------
20,625
---------
ARIZONA (1.3%)
Arizona State, Educational Loan
Marketing, Ser A, RB,
AMT (C) (D) (E)
4.150%, 06/07/00 2,500 2,500
Arizona State, Transportation
Board Excise, Maricopa County
Regional Area, Ser A, RB
4.500%, 07/01/00 1,000 1,000
-------------------------------------------------------------------------------
FACE AMOUNT
(000 VALUE (000)
-------------------------------------------------------------------------------
ARIZONA--CONTINUED
Salt River Project, Agricultural
Improvement & Power District,
Electric System, Ser SG-10, RB (C) (D)
4.380%, 06/01/00 $ 7,570 $ 7,570
---------
11,070
---------
CALIFORNIA (0.6%)
California, Higher Education
Authority, Senior Lien,
Ser A-4, RB, AMT (C) (D)
4.350%, 04/01/01 5,000 5,000
---------
COLORADO (1.0%)
Cherry Creek, South Metropolitan
District Number 1, GO (C) (D) (E)
4.400%, 06/01/00 1,250 1,250
Colorado State, Multi-Family
Housing Finance Authority,
St. Moritz Project, Ser H,
RB, FNMA (C) (D)
4.300%, 06/07/00 5,915 5,915
Lowry, Economic Redevelopment
Authority, Ser B, RB (C) (D) (E)
4.100%, 06/07/00 2,000 2,000
---------
9,165
---------
DELAWARE (0.2%)
Delaware State, Educational
Development Authority, RB
(C) (D) (E)
4.725%, 06/01/00 1,875 1,875
---------
DISTRICT OF COLUMBIA (1.7%)
District of Columbia, George
Washington University,
Ser C, RB, MBIA (C) (D)
4.300%, 06/07/00 7,500 7,500
12
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--CONTINUED
District of Columbia, Planned
Parenthood, RB (C) (D) (E)
4.400%, 06/01/00 $ 7,250 $ 7,250
----------
14,750
----------
FLORIDA (7.6%)
Dade County, Water & Sewer
System, RB, FGIC (C) (D)
4.050%, 06/07/00 10,700 10,700
Florida State, Board of Education
Capital Outlay,
Ser 223, GO (C) (D)
4.420%, 06/01/00 5,000 5,000
Florida State, Board of Education,
Eagle Trust, RB Prerefunded
@ 100 (C) (D) (F)
4.400%, 06/01/00 13,315 13,315
Florida State, Board of Education,
Eagle Trust, Ser 94901, RB (C) (D)
4.400%, 06/01/00 16,900 16,900
Jacksonville, Health Facilities,
Taxable Charity OB Group,
Ser C, RB, MBIA (C) (D)
4.100%, 06/07/00 7,000 7,000
St. Lucie County, Pollution
Control Authority, Power
and Light, RB (C) (D)
4.000%, 07/18/00 1,500 1,500
University of North Florida,
Parking System, RB (C) (D) (E)
4.400%, 06/01/00 6,000 6,000
University South Florida, Research
Foundation, University
Technology Center, RB (C) (D) (E)
4.450%, 06/01/00 7,000 7,000
----------
67,415
----------
-------------------------------------------------------------------------------
FACE AMOUNT
(000 VALUE (000)
-------------------------------------------------------------------------------
GEORGIA (5.0%)
Atlanta, Airport Authority,
Ser 313, RB (C) (D)
4.450%, 06/01/00 $ 3,335 $ 3,335
Atlanta, Ser SG-123, GO (C) (D)
4.380%, 06/01/00 9,845 9,845
Cobb County, Development
Authority, Educational
Facilities, Kennesaw State
University Project,
RB, AMBAC (C) (D)
4.350%, 06/01/00 6,290 6,290
Fulton County, Development
Authority, American National
Red Cross Project, RB (C) (D) (E)
4.350%, 06/01/00 1,100 1,100
Fulton County, Development
Authority, Metropolitan YMCA
Project, RB (C) (D) (E)
4.300%, 06/01/00 8,500 8,500
Gordon County, Development
Authority, Sara Lee Project,
RB (C) (D)
4.400%, 06/01/00 1,400 1,400
Gwinnett County, Solid Waste
Disposal Facilities,
Lucent Technology Project,
RB, AMT (C) (D)
4.250%, 06/07/00 3,000 3,000
Lafayette, Industrial Development,
Blue-Bird Project, RB (C) (D)
4.350%, 06/01/00 1,000 1,000
Mitchell County, Industrial
Development Authority,
City of Camille Project, RB
(C) (D) (E)
4.350%, 06/01/00 3,600 3,600
13
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
GEORGIA--CONTINUED
Municipal Electric Authority,
Project One, Sub-Ser E,
RB (C) (D) (E)
4.250%, 06/07/00 $ 4,000 $ 4,000
Summerville, Development
Authority, Exempt Facility,
Image Industries, RB,
AMT (C) (D) (E)
4.500%, 07/06/00 2,000 2,000
---------
44,070
---------
HAWAII (2.2%)
Hawaii State, Highway Authority,
Ser PT 1058, RB (C) (D)
4.380%, 06/01/00 19,790 19,790
---------
IDAHO (0.6%)
Idaho, Housing and Finance
Association, Ser PA-115,
RB (C) (D)
4.430%, 06/01/00 5,401 5,401
---------
ILLINOIS (8.8%)
Bloomington, Airport Authority,
GO (C) (D)
4.350%, 06/07/00 1,200 1,200
Chicago, Airport Special
Facilities,
Centerpoint O'Hare,
RB, AMT (C) (D) (E)
4.350%, 06/07/00 3,500 3,500
Chicago, O'Hare International
Airport, 2nd Lien,
Ser A, RB (C) (D) (E)
3.950%, 06/07/00 2,300 2,300
Chicago, O'Hare International
Airport, 2nd Lien, Ser B, RB
(C) (D) (E)
3.950%, 07/01/00 1,790 1,790
Illinois State, Development
Authority, Pollution Control,
Aces-Illinois Power Company,
Ser C, RB, AMT (C) (D) (E)
4.500%, 06/06/00 3,000 3,000
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
ILLINOIS--CONTINUED
Illinois State, Development
Finance Authority, Derby
Industrial Project,
RB, AMT (C) (D) (E)
4.450%, 06/07/00 $ 800 $ 800
Illinois State, Development
Finance Authority, Pollution
Control, Power Project,
Ser A, RB (C) (D) (E)
4.050%, 06/07/00 5,000 5,000
Illinois State, Development
Finance Authority, Pollution
Control, Power Project,
Ser C, RB (C) (D) (E)
4.050%, 06/22/00 8,000 8,000
Illinois State, Development
Finance Authority,
PT 321, RB (C) (D)
4.500%, 06/01/00 10,000 10,000
Illinois State, Educational
Facilities Authority, Chicago
Childrens Museum, RB (C) (D) (E)
4.300%, 06/07/00 1,600 1,600
Illinois State, Educational Facilities
Authority, Museum of Science
& Industry, RB (C) (D) (E)
4.250%, 06/07/00 5,400 5,400
Illinois State, Health Facilities
Authority, Advocate Health
Care, Ser B, RB (C) (D)
4.250%, 06/07/00 2,900 2,900
Illinois State, Health Facilities
Authority, Proctor Hospital,
RB (C) (D) (E)
4.300%, 06/07/00 5,100 5,100
Illinois State, Health Facilities
Authority, The Streeterville
Project, RB (C) (D) (E)
4.300%, 06/07/00 2,000 2,000
14
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
ILLINOIS--CONTINUED
Illinois State, Housing Development
Authority, Center Apartments,
RB (C) (D) (E)
3.800%, 06/07/00 $10,600 $ 10,600
Illinois State, Pollution Control
Finance Authority, Public
Service, Ser C-1, RB
4.150%, 06/07/00 5,000 5,000
Illinois State, GO
4.250%, 06/01/00 2,500 2,500
Lockport, Industrial Development
Authority, Panduit Project,
RB, AMT (C) (D) (E)
4.350%, 06/07/00 2,000 2,000
Savanna, Industrial Development
Authority, Metform Project,
Ser A, RB, AMT (C) (D) (E)
4.350%, 06/07/00 500 500
Savanna, Industrial Development
Authority, Metform Project,
Ser B, RB, AMT (C) (D) (E)
4.350%, 06/07/00 1,400 1,400
Wheeling, Industrial Development
Authority, Circuit Service Project,
RB, AMT (C) (D) (E)
4.450%, 06/01/00 2,600 2,600
---------
77,190
---------
INDIANA (3.7%)
Elkhart, Industrial Economic
Development Authority,
Godfrey Conveyor Project,
RB, AMT (C) (D) (E)
4.450%, 06/07/00 1,800 1,800
Elkhart, Industrial Economic
Development Authority,
Holly Park, RB, AMT (C) (D) (E)
4.450%, 06/07/00 2,000 2,000
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
INDIANA--CONTINUED
Development Authority, Tech
Project, RB, AMT (C) (D)
4.350%, 06/07/00 $ 1,000 $ 1,000
Indianapolis, Industrial Economic
Development Authority,
Allied Signal Project, RB (C) (D)
4.400%, 06/07/00 3,500 3,500
Indianapolis, Local Public
Improvements, Ser B, RB, MBIA
3.350%, 06/01/00 1,550 1,550
Indiana State, Development
Finance Authority, Educational
Facility, Indiana Historical
Society, RB (C) (D) (E)
4.300%, 06/07/00 1,200 1,200
Indiana State, Educational Facilities
Authority, Educational Facility,
Indiana Wesleyan Project,
Ser B, RB (C) (D) (E)
4.350%, 06/07/00 2,500 2,500
Indiana State, Health Facility
Financing Authority, Clarian
Health Partners, Ser B, RB (C) (D)
4.100%, 06/07/00 2,000 2,000
Indiana State, Transportation
Financing Authority Highway,
Ser PT-1159, RB (C) (D)
4.300%, 02/22/01 9,710 9,710
Jasper, Industrial Economic
Development Authority,
Wabash Valley Produce Project,
RB, AMT (C) (D) (E)
4.450%, 06/01/00 2,000 2,000
La Porte County, Economic
Development Authority, Pedcor
Investments-Woodland,
RB, AMT (C) (D) (E)
4.420%, 06/01/00 2,000 2,000
15
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
INDIANA--CONTINUED
Michigan City, Economic
Development Authority,
Performance Packaging,
RB, AMT (C) (D) (E)
4.500%, 06/07/00 $ 700 $ 700
Muncie, Industrial Development
Authority, Diamond Plastics
Project, RB (C) (D) (E)
4.550%, 06/01/00 1,900 1,900
Munster, School Building,
Ser 269, RB, FSA (C) (D)
4.550%, 06/01/00 1,000 1,000
---------
32,860
---------
IOWA (0.7%)
Sac County, Industrial Authority,
Evapco Project, RB,
AMT (C) (D) (E)
4.550%, 06/01/00 3,500 3,500
West Des Moines, Commercial
Development, Greyhound
Lines Project, RB (C) (D) (E)
4.050%, 06/07/00 2,500 2,500
---------
6,000
---------
KANSAS (1.0%)
Sedgewick & Shawnee Counties,
Ser PT 227, RB (C) (D) (E)
4.500%, 06/01/00 9,000 9,000
---------
KENTUCKY (1.2%)
Jefferson County, Industrial
Building, Fisher-Klosterman
Project, RB, AMT (C) (D) (E)
4.450%, 06/01/00 2,005 2,005
Pulaski County, Solid Waste
Disposal, National Rural
Utility-East Kentucky Power,
Ser B, RB, AMT (C) (D)
4.050%, 08/15/00 3,700 3,700
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
KENTUCKY--CONTINUED
Kentucky State, Economic
Development Finance
Authority, Health Alliance
Project, Ser C, RB,
MBIA (C) (D)
3.950%, 06/07/00 $ 5,000 $ 5,000
---------
10,705
---------
LOUISIANA (1.8%)
Calcasieu Parish, Industrial
Development Board,
Hydroserve Westlake,
RB, AMT (C) (D) (E)
4.250%, 06/07/00 5,000 5,000
Louisiana State, Public Facilites
Authority, Pollution Control,
Ciba-Geigy Project,
RB (C) (D) (E)
4.050%, 06/07/00 2,400 2,400
Loiusiana State, Eagle Trust,
Ser 94180, RB (C) (D)
4.400%, 06/01/00 8,000 8,000
---------
15,400
---------
MAINE (0.6%)
Maine, Housing Authority Mortgage,
Ser 295, RB, AMT (C) (D)
4.650%, 06/01/00 4,893 4,892
---------
MARYLAND (1.9%)
Baltimore County, Industrial
Development Authority,
Allied Signal Project, RB (C) (D)
4.350%, 06/07/00 1,000 1,000
Maryland State, Community
Development Administration,
Ser PA 629R, RB (C) (D)
4.430%, 06/01/00 4,800 4,800
16
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
MARYLAND--CONTINUED
Maryland State, Community
Development Administration,
Ser 170, RB (C) (D)
4.380%, 06/01/00 $ 6,000 $ 6,000
Maryland State, Community
Development Administration,
Ser PT-256, RB, AMT, FHA
(C) (D) (E)
4.430%, 06/01/00 4,590 4,590
---------
16,390
---------
MICHIGAN (2.2%)
Michigan State, Hospital
Finance Authority, Ser A,
RB (C) (D) (E)
4.000%, 06/07/00 9,400 9,400
Michigan State, Housing
Development Authority,
Woodland Meadows Project,
RB, AMT (C) (D) (E)
4.150%, 06/07/00 1,000 1,000
Michigan State, Strategic Fund,
Industrial Development
Authority, Norcor Manufacturing
Project, RB (C) (D) (E)
4.250%, 06/06/00 3,000 3,000
Michigan State, Strategic Fund,
Consolidated Industrial Project,
RB, AMT (C) (D) (E)
4.450%, 06/07/00 2,400 2,400
Oakland County, Economic
Development Authority, Moody
Family Limited Project,
RB, AMT (C) (D) (E)
4.450%, 06/07/00 900 900
Okemos, Public School District,
Ser I, GO Prerefunded @ 102 (F)
6.900%, 05/01/01 3,000 3,126
---------
19,826
---------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
MINNESOTA (0.3%)
Bloomington, Independent
School District, Ser B, GO
5.000%, 02/01/01 $ 2,490 $ 2,502
---------
MISSISSIPPI (0.3%)
Mississippi State, Business
Finance Authority, Choctaw
Generation, RB, AMT (C) (D) (E)
4.150%, 06/07/00 3,000 3,000
---------
MISSOURI (2.0%)
Carthage, Industrial
Development Authority,
Schrieber Project, RB,
AMT (C) (D) (E)
4.350%, 06/07/00 3,100 3,100
Saint Charles County, Industrial
Development Authority,
Casalon Apartment Project,
RB (C) (D) (E)
4.250%, 06/01/00 5,670 5,670
Saint Charles County, Industrial
Development Authority,
Remington Apartments
Project, RB (C) (D) (E)
4.250%, 06/01/00 4,800 4,800
Missouri State, Environmental
Improvement & Energy Resource
Authority, Utilicorp United
Project, RB, AMT (C) (D) (E)
4.350%, 06/07/00 700 700
Missouri State, Health &
Educational Facilities, Christian
Health, Ser A, RB, FGIC
Prerefunded @ 102 (F)
6.875%, 02/15/01 3,400 3,527
---------
17,797
---------
17
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
NEVADA (2.1%)
Clark County, Airport Improvement
Authority, Sub-Lien Ser A-2, RB,
AMT (C) (D) (E)
4.100%, 06/07/00 $ 4,955 $ 4,955
Clark County, School District,
GO (C) (D)
4.400%, 06/01/00 8,345 8,345
Nevada State, Ser SG-114, RB (C) (D)
4.380%, 06/01/00 5,000 5,000
---------
18,300
---------
NEW HAMPSHIRE (1.2%)
New Hampshire State, Housing
Finance Authority, Multi-Family
Housing, Fairways Project,
Ser 1, RB, AMT (C) (D) (E)
4.100%, 06/07/00 5,000 5,000
New Hampshire State, Housing
Finance Authority, Ser PT-348,
RB (C) (D) (E)
4.430%, 06/01/00 5,195 5,195
---------
10,195
---------
NEW YORK (3.8%)
New York City, Municipal Water
Financing Authority,
Ser SGB-27, RB, FSA
4.370%, 06/01/00 9,000 9,000
New York City, Sub-Ser A-7,
GO (C) (D) (E)
4.300%, 06/01/00 9,600 9,600
New York City, Sub-Ser E5,
GO (C) (D) (E)
4.300%, 06/01/00 7,600 7,600
New York State, Dormitory
Authority, Ser PA-541,
RB (C) (D)
4.350%, 06/01/00 4,000 4,000
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
NEW YORK--CONTINUED
Southeast New York, Industrial
Development Agency, Unilock
New York Project, RB,
AMT (C) (D) (E)
4.350%, 06/07/00 $ 2,200 $ 2,200
Syracuse, Ser 207, RB, AMT,
FGIC (C) (D)
4.420%, 06/01/00 1,425 1,425
---------
33,825
---------
NORTH CAROLINA (6.5%)
Charlotte, Airport Authority,
Ser A, RB, AMT, MBIA (C) (D)
4.150%, 06/07/00 1,000 1,000
Cleveland County, Family
YMCA, RB (C) (D) (E)
4.400%, 06/01/00 2,840 2,840
Johnston County, Industrial
Development Authority,
Pollution Control,
Mebane Parking Project, RB
(C) (D) (E)
4.500%, 06/01/00 2,175 2,175
Mecklenburg County, Industrial
Facilities & Pollution Control,
Sterigenics International Project,
RB, AMT (C) (D) (E)
4.300%, 06/07/00 1,700 1,700
Mecklenburg County, Public
Improvement, Ser C, GO
(C) (D) (E)
4.100%, 06/07/00 5,000 5,000
Mecklenburg County,
Ser C, GO (C) (D)
4.300%, 06/01/00 8,850 8,850
North Carolina State, Educational
Facilities Finance Agency,
Charlotte Latin, RB (C) (D) (E)
4.300%, 06/01/00 5,000 5,000
18
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
North Carolina State,
Educational Facilities Finance
Agency, Guilford College,
RB, MBIA (C) (D)
4.300%, 06/07/00 $ 2,200 $ 2,200
North Carolina State, Educational
Facilities Finance Agency,
Johnson Smith University,
RB (C) (D) (E)
4.300%, 06/01/00 5,100 5,100
North Carolina State, Medical
Care Community Hospital,
Angel Medical Center,
RB (C) (D) (E)
4.300%, 06/01/00 3,900 3,900
North Carolina State, Medical
Care Community Hospital,
Carolina Medicorp Project,
RB Prerefunded @ 100 (F)
6.000%, 05/01/01 6,000 6,089
North Carolina State, Medical
Care Community Hospital,
Lutheran Services For The
Aging Project, RB (C) (D) (E)
4.200%, 06/07/00 8,135 8,135
North Carolina State,
Ser PA 342, RB (C) (D)
4.380%, 06/01/00 5,340 5,340
---------
57,329
---------
OHIO (4.8%)
Cuyahoga County, Hospital
Facilities Authority, Cleveland
Clinic Foundation,
Ser A, RB (C) (D)
4.150%, 06/07/00 6,000 6,000
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
OHIO--CONTINUED
Hamilton County, Hospital
Faciltity, Health Alliance,
Ser A, RB, MBIA (C) (D)
3.900%, 06/07/00 $ 7,600 $ 7,600
Ohio State, Air Quality
Development Authority,
Cincinnati Gas & Electric
Project, Ser B, RB (C) (D) (E)
4.300%, 06/01/00 4,400 4,400
Ohio State, Air Quality
Development Authority, JMG
Limited Partnership,
Ser A, RB, AMT (C) (D) (E)
4.000%, 06/07/00 3,000 3,000
Ohio State, Environmental
Improvement Authority,
Newark Group Industries
Project, RB, AMT (C) (D) (E)
4.400%, 06/01/00 4,600 4,600
Ohio State, Higher Education
Facility Commission, Pooled
Financing, RB (C) (D) (E)
4.350%, 06/01/00 4,835 4,835
Ohio State, Public Facilities
Commission, Higher Education
Capital Facilities, Ser II-A, RB
4.500%, 12/01/00 2,405 2,409
Warrren County, Health Care
Improvement, Otterbein Project,
Ser A, RB (C) (D) (E)
4.350%, 06/01/00 9,340 9,340
---------
42,184
---------
OREGON (0.2%)
Oregon State, Housing & Community
Services, Single-Family Mortgage
Project, Ser H, RB, AMT (C) (D)
3.480%, 06/29/00 1,895 1,895
---------
19
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-EXEMPT MONEY MARKET FUND--CONTINUED
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
PENNSYLVANIA (4.5%)
Bethlehem, Area School District,
GO, FGIC Prerefunded @ 100 (F)
5.600%, 03/01/01 $ 9,065 $ 9,154
Delaware County, Hospital
Authority, Crozer-Chester
Medical Center, RB, MBIA
Prerefunded @ 102 (F)
7.150%, 12/15/00 2,550 2,639
Delaware Valley, Regional Finance
Authority, Ser B, RB (C) (D) (E)
4.100%, 06/07/00 8,100 8,100
Pennsylvania State, Higher
Educational Facilities Authority,
Temple University Project,
RB, ETM (C) (D) (E)
4.300%, 06/01/00 4,700 4,700
Pennsylvania State, Intergovern-
mental Cooperation Authority,
Special Tax Revenue,
Ser SG-67, RB (C) (D)
4.350%, 06/01/00 9,630 9,630
Philadelphia, Ser A, TRAN
4.250%, 06/30/00 5,000 5,003
---------
39,226
---------
RHODE ISLAND (1.0%)
Rhode Island State, Health &
Educational Board, Women &
Infants Hospital, RB, FSA (C) (D)
3.850%, 09/01/00 3,365 3,365
Rhode Island State, Multi-Modal,
GO (C) (D)
4.100%, 06/07/00 5,400 5,400
---------
8,765
---------
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
SOUTH CAROLINA (1.1%)
South Carolina State, Jobs
Economic Development
Authority, Anderson Area
YMCA Project, RB (C) (D) (E)
4.450%, 06/01/00 $ 7,100 $ 7,100
South Carolina State, Economic
Development Authority, Kiswire
Project, RB, AMT (C) (D) (E)
4.550%, 06/01/00 3,000 3,000
---------
10,100
---------
TENNESSEE (4.2%)
Covington, Industrial Development
Board, Charms Project,
RB, AMT (C) (D) (E)
4.350%, 06/07/00 3,000 3,000
Memphis-Shelby County,
Industrial Development Board,
Ponderosa Fibres American
Project, RB, AMT (C) (D) (E)
4.500%, 06/01/00 1,000 1,000
Metropolitan Government
Nashville & Davidson County,
Eagle Trust, GO (C) (D)
4.400%, 06/01/00 10,000 10,000
Metropolitan Government
Nashville & Davidson County,
Health & Education Facilities
Board, Vanderbilt University,
Ser B, RB (C) (D)
4.300%, 06/01/00 4,000 4,000
Metropolitan Government
Nashville & Davidson County,
Multi-Family Chimneytop II
Project, RB (C) (D) (E)
4.300%, 06/07/00 1,325 1,325
20
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
TENNESSEE--CONTINUED
Metropolitan Government
Nashville & Davidson County,
Ser 251, GO (C) (D)
4.550%, 06/01/00 $ 3,400 $ 3,400
Rutherford County, Industrial
Development Authority,
Farmers Cooperative Project,
RB, AMT (C) (D) (E)
4.500%, 06/01/00 4,500 4,500
Tennessee State, Housing
Development Agency, Ser 281,
RB, AMT (C) (D)
4.650%, 06/01/00 2,553 2,552
Tennessee State, Ser 108,
GO (C) (D)
5.000%, 06/01/00 2,495 2,495
Sumner County, Health &
Educational Authority, Hospital
Alliance Pooled,
Ser PG-A, RB (C) (D)
4.425%, 06/01/00 5,000 5,000
---------
37,272
---------
TEXAS (9.2%)
Dallas-Fort Worth, International
Airport, RB, MBIA
4.700%, 11/01/00 4,025 4,035
Georgetown, Higher Education
Finance Authority, Southwestern
University Project, RB (C) (D) (E)
4.100%, 06/07/00 2,000 2,000
Harris County, Industrial
Development Authority, Lubrizol
Project, RB (C) (D)
4.050%, 06/07/00 1,600 1,600
Hockley County, Industrial
Development Authority, Amoco
Project, RB (C) (D)
4.300%, 11/01/00 2,500 2,500
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
TEXAS--CONTINUED
Houston, Water & Sewer System
Authority, Ser SG-78, RB (C) (D)
4.380%, 06/01/00 $ 8,835 $ 8,835
Pearland, Independent School
District, Ser SG-106, RB (C) (D)
4.380%, 06/01/00 6,245 6,245
Texas State, Public Facilities,
Eagle Trust, RB (C) (D)
4.400%, 06/01/00 7,180 7,180
4.100%, 06/01/00, TECP 10,000 10,000
Texas State, Eagle Trust,
Ser 991301, GO (C) (D)
4.400%, 06/01/00 9,900 9,900
Texas State, Ser A, TRAN
4.500%, 08/31/00 20,000 20,038
Trinity, River Authority,
Pollution Control, General
Motors Project, RB (C) (D)
4.300%, 06/06/00 8,400 8,400
---------
80,733
---------
UTAH (1.5%)
Morgan County, Solid Waste
Disposal, Holman Project,
RB, AMT (C) (D) (E)
4.150%, 06/01/00 2,200 2,200
Utah State, Housing Finance
Agency, Ser PT-209, RB (C) (D)
4.430%, 06/01/00 10,750 10,750
---------
12,950
---------
VIRGINIA (0.8%)
Front Royal & Warren County,
Industrial Development
Authority, Pen Tab Industries
Project, RB, AMT (C) (D) (E)
4.500%, 06/01/00 2,600 2,600
21
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-EXEMPT MONEY MARKET FUND--CONCLUDED
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Virginia State, Housing
Development Authority,
Ser 301, RB (C) (D)
4.550%, 06/01/00 $ 4,360 $ 4,360
---------
6,960
---------
WASHINGTON (4.5%)
Port Seattle Passenger Facility,
Ser 299, RB, AMT,
AMBAC (C) (D)
4.650%, 06/01/00 2,358 2,357
Port Seattle, GO (C) (D)
3.950%, 06/07/00 1,000 1,000
Seattle, Water Systems Authority,
RB (C) (D) (E)
3.950%, 06/07/00 4,200 4,200
Washington State, Health Care
Facilities, Sunnyside Community
Hospital, RB (C) (D) (E)
4.300%, 06/07/00 3,200 3,200
Washington State, Public Power
Supply System, Nuclear Project
No. 1, Ser 1A-1, RB (C) (D) (E)
3.950%, 06/07/00 4,535 4,535
Washington State, Public Power
Supply System, Nuclear Project
No. 1, Ser 1A-3, RB (C) (D) (E)
3.950%, 06/07/00 3,200 3,200
Washington State, Public Power
Supply System, Nuclear Project
No. 2, Ser 2A-1, RB, MBIA (C) (D)
4.050%, 06/07/00 5,200 5,200
Washington State, Public Power
Supply System, Nuclear Project
No. 3, Ser 3A-3, RB (C) (D) (E)
4.050%, 06/07/00 11,720 11,720
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
WASHINGTON--CONTINUED
Washington State, Ser B, GO
Prerefunded @ 100 (F)
6.700%, 06/01/01 $ 4,000 $ 4,077
---------
39,489
---------
WEST VIRGINIA (2.1%)
Braxton County, Solid Waste
Disposal, Weyerhaeuser
Project, RB, AMT (C) (D)
4.350%, 06/07/00 7,650 7,650
Marshall County, Pollution
Control Authority, AlliedSignal
Project, RB (C) (D)
4.400%, 06/07/00 8,630 8,630
Marshall County, Pollution
Control Authority, PPG
Industries Project, RB (C) (D)
4.600%, 06/01/00 2,000 2,000
---------
18,280
---------
WISCONSIN (2.2%)
Appleton, Industrial Development
Authority, Pro Lable Project,
RB, AMT (C) (D) (E)
4.550%, 06/01/00 870 870
Germantown, Industrial
Development Authority, Speaker
Project, RB, AMT (C) (D) (E)
4.550%, 06/01/00 855 855
Holland, Industrial Development
Authority, White Clover Dairy
Project, RB, AMT (C) (D) (E)
4.450%, 06/01/00 1,500 1,500
Milwaukee, GO
5.000%, 02/01/01 2,000 2,010
Milwaukee, Metropolitan Sewer
District, Ser 288, GO (C) (D)
4.600%, 06/01/00 1,763 1,763
22
<PAGE>
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
WISCONSIN--CONTINUED
Oconomowoc, Industrial
Development Authority, Quest
Technologies Project,
RB, AMT (C) (D) (E)
4.450%, 06/01/00 $ 1,495 $ 1,495
Wisconsin State, Health Facilities
Authorities, Franciscan Health
Care, Ser A-1, RB (C) (D) (E)
3.950%, 06/07/00 6,105 6,105
Wisconsin State, Ser PT 1137,
RB (C) (D)
4.300%, 02/15/01 4,515 4,515
---------
19,113
---------
WYOMING (0.5%)
Sweetwater County, Pollution
Control, Pacificorp Project,
Ser A, RB (C) (D) (E)
4.050%, 06/07/00 4,600 4,600
---------
MULTI-STATE (0.8%)
Tax-Exempt Grantor Trust, IBM,
Ser 1999-A, RB (C) (D)
4.550%, 06/01/00 7,200 7,200
---------
Total Municipal Bonds
(Cost $863,139) 863,139
---------
CASH EQUIVALENTS (1.5%)
Financial Square Tax Free
Portfolio 3,537,267 3,537
SEI Institutional Tax Free
Fund 9,904,203 9,904
---------
-------------------------------------------------------------------------------
VALUE (000)
-------------------------------------------------------------------------------
Total Cash Equivalents
(Cost $13,441) $ 13,441
---------
Total Investments (99.5%)
(Cost $876,580) 876,580
---------
OTHER ASSETS AND LIABILITIES, NET (0.5%) 4,778
---------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 755,887,410 outstanding shares of
beneficial interest 755,887
Fund shares of the Investor Shares (unlimited
authorization -- no par value) based
on 125,512,381 outstanding shares
of beneficial interest 125,512
Distributions in excess of net investment
income (6)
Accumulated net realized loss
on investments (35)
---------
Total Net Assets (100.0%) $881,358
=========
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 33.
23
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
MUNICIPAL BONDS (98.5%)
FLORIDA (2.3%)
Dade County, Water & Sewer
Systems Project, RB (C) (D)
4.380%, 06/07/00 $ 7,000 $ 7,000
---------
ILLINOIS (3.3%)
Illinois State, Health Facility
Authority, Swedish Covenant
Hospital Project, RB,
AMBAC (C) (D)
3.900%, 06/07/00 10,170 10,170
---------
LOUISIANA (3.6%)
Ascension Parish, Pollution
Control Authority, Borden
Project, RB (C) (D) (E)
3.950%, 06/05/00 11,200 11,200
---------
VIRGINIA (88.2%)
Albemarle County, Industrial
Development Authority,
University of Virginia Health
Services Project, RB (C) (D) (E)
4.150%, 06/07/00 4,400 4,400
Alexandria, Industrial
Development Authority,
American Red Cross Project,
RB (C) (D) (E)
4.150%, 06/07/00 4,100 4,100
Alexandria, Industrial
Development Authority,
Pooled Loan Program,
Ser A, RB (C) (D) (E)
4.400%, 06/01/00 6,900 6,900
Alexandria, Industrial
Development Authority,
Pooled Loan Program,
Sub-Ser A, RB (C) (D) (E)
4.400%, 06/01/00 3,500 3,500
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Alexandria, Industrial
Development Authority,
Resource Recovery Project,
RB, AMT (C) (D) (E)
4.550%, 06/01/00 $11,400 $ 11,400
Amelia County, Industrial
Development Authority,
Chambers Waste Systems
Project, RB, AMT (C) (D) (E)
4.250%, 06/07/00 750 750
Arlington County, Industrial
Development Authority,
Multi-Family Housing Authority,
Arna Valley View Apartments
Project, RB (C) (D) (E)
4.400%, 06/01/00 1,350 1,350
Arlington County, Ballston
Public Parking Project,
RB (C) (D) (E)
4.250%, 06/06/00 8,100 8,100
Ashland, Industrial Development
Authority, Interflex Group
Project, RB, AMT (C) (D) (E)
4.500%, 06/01/00 7,000 7,000
Chesapeake Bay, Bridge & Tunnel
Community District Authority,
General Resolution Project,
RB, MBIA (C) (D)
4.400%, 06/01/00 6,755 6,755
Chesterfield County, Industrial
Development Authority,
AlliedSignal Project, RB (C) (D)
4.400%, 06/07/00 3,000 3,000
Chesterfield County, GO
5.500%, 01/15/01 1,905 1,922
Culpeper, Industrial Development
Authority, Baptist Homes
Project, RB (C) (D) (E)
4.400%, 06/01/00 1,495 1,495
24
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Fairfax County, Economic
Development Authority, Flint
Hill School Project,
RB (C) (D) (E)
4.150%, 06/07/00 $ 4,340 $ 4,340
Fairfax County, Industrial
Development Authority,
Fairfax Hospital Project,
Ser A, RB (C) (D)
3.900%, 06/07/00 1,660 1,660
Fairfax County, Industrial
Development Authority,
Fairfax Hospital Project,
Ser B, RB (C) (D)
3.900%, 06/07/00 9,600 9,600
Fairfax County, Industrial
Development Authority,
Fairfax Hospital Project,
Ser D, RB (C) (D)
3.900%, 06/07/00 3,700 3,700
Fairfax County, Ser C, GO
4.600%, 05/01/01 2,800 2,809
Fairfax County,
Ser PA 149, RB (C) (D)
4.350%, 06/01/00 9,890 9,890
Hampton, Redevelopment &
Multi-Family Housing
Authority, Avalon at Hampton
Project, Ser I-A, RB (C) (D) (E)
3.950%, 06/07/00 6,360 6,360
Hampton, Redevelopment &
Multi-Family Housing Authority,
Avalon Pointe Project,
Ser I-A, RB, AMT (C) (D) (E)
4.000%, 06/07/00 5,037 5,037
Hanover County, Industiral
Development Authority,
Covenent Woods Project,
RB (C) (D) (E)
4.450%, 06/01/00 15,000 15,000
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
VIRGINIA--CONTINUED
King George County, Industrial
Development Authority,
Birchwood Power Partners
Project, Ser A, RB,
AMT (C) (D) (E)
4.550%, 06/01/00 $1,500 $ 1,500
Louisa County, Industrial
Development Authority,
Pooled Financing,
RB (C) (D) (E)
4.400%, 06/01/00 2,975 2,975
Norfolk, Industrial Development
Authority, Children's Hospital
Facilities Project, RB (C) (D) (E)
4.400%, 06/01/00 15,300 15,300
Norfolk, Redevelopment &
Housing Authority,
East Ocean View Property
Project, RB (C) (D) (E)
4.400%, 06/01/00 3,890 3,890
Norfolk, Water Authority, RB FSA
4.000%, 11/01/00 785 785
Peninsula Port Authority,
Dominion Terminal Project,
Ser C, RB (C) (D) (E)
4.350%, 06/01/00 1,450 1,450
Portsmouth, Industrial
Development Authority,
Fairwood Homes Project,
Ser A, RB (C) (D) (E)
4.150%, 06/01/00 1,605 1,605
Prince George County, Industrial
Development Authority,
Metropolitian Span Project,
RB, AMT (C) (D) (E)
4.450%, 06/01/00 4,800 4,800
Prince William County, Public
Improvements, Ser B, GO
5.000%, 08/01/00 1,000 1,002
25
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-FREE MONEY MARKET FUND--CONTINUED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Pulaski County, Industrial
Development Authority, Pulaski
Furniture Project, RB (C) (D) (E)
4.400%, 06/01/00 $ 1,800 $ 1,800
Richmond, Public Utility
Authority, Ser A, RB (C) (D)
4.450%, 06/01/00 3,500 3,500
Richmond, Redevelopment &
Multi-Family Housing Authority,
Ser PT-1022, RB (C) (D)
4.450%, 06/01/00 14,490 14,490
Richmond, Redevelopment &
Multi-Family Housing
Authority, Stony Point Project,
RB (C) (D) (E)
4.400%, 06/01/00 1,660 1,660
Richmond, Public Improvement,
Ser A, GO Prerefunded @ 102 (F)
6.250%, 01/15/01 9,110 9,408
Roanoke, Industrial Development
Authority, Hollins University
Project, RB (C) (D) (E)
4.150%, 06/07/00 4,500 4,500
Roanoke, Industrial Development
Authority, Carilion Health
System Project, Ser B,
RB (C) (D)
4.450%, 06/01/00 1,000 1,000
Roanoke, Industrial Development
Authority, Roanoke Memorial
Hospital Project, Ser C,
RB (C) (D)
4.300%, 06/01/00 1,935 1,935
Roanoke, Industrial Development
Authority, Roanoke Memorial
Hospital Project, RB, MBIA
Prerefunded @100 (F)
6.500%, 07/01/00 5,000 5,012
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Roanoke Public Improvements, GO
4.000%, 08/01/00 $ 2,165 $ 2,165
Roanoke Public Improvements,
Ser B, GO
5.800%, 08/01/00 1,000 1,003
Roanoke, Redevelopment &
Multi-Family Housing Authority,
Stepping Stone Apartments
Project, RB (C) (D)
4.625%, 06/25/00 2,000 2,000
Virginia State, Transportation
Authority, Eagle Trust,
Ser 994601, RB (C) (D)
4.400%, 06/01/00 5,000 5,000
Virginia State Port Authority,
Ser SG 111, RB (C) (D)
4.400%, 06/01/00 10,100 10,100
Virginia State, Public School
Authority, School Financing,
Ser B, GO
5.000%, 08/01/00 4,665 4,674
Virginia State, Public School
Authority, Ser C, RB
5.000%, 08/01/00 4,335 4,346
Virginia State, GO
5.000%, 06/01/00 2,000 2,000
Staunton, Industrial Development
Authority, Diebold-Staunton
Project, RB (C) (D) (E)
4.450%, 06/01/00 530 530
Suffolk, Redevelopment & Multi-
Family Housing Authority,
Windsor Potomac Project,
RB (C) (D)
4.700%, 06/07/00 410 410
Suffolk, Redevelopment & Multi-
Family Housing Authority,
Windsor Fieldstone Project, RB
(C) (D)
4.700%, 06/07/00 4,718 4,718
26
<PAGE>
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Beach, Industrial
Development Authority, Ocean
Ranch Project, RB (C) (D) (E)
4.400%, 06/01/00 $ 626 $ 626
Virginia Beach, Industrial
Development Authority,
LA Quinta Inns Project,
RB (C) (D) (E)
4.450%, 06/01/00 1,125 1,125
Virginia Beach, Development &
Multi-Family Authority,
Ser PT 1213, RB (C) (D)
4.580%, 06/01/00 1,000 1,000
Virginia Beach, Development
Authority, Westminster-
Canterbury Project,
Ser B, RB (C) (D) (E)
4.350%, 06/07/00 3,000 3,000
Virginia Beach, Public
Improvement, GO
5.000%, 03/01/01 3,805 3,828
Virginia College, Building
Authority, 21st Century College
Program, RB
4.125%, 02/01/01 8,185 8,185
Virginia College, Building
Authority, Equipment Leasing
Program, RB
4.250%, 02/01/01 750 750
Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Project, Sub-Ser A, RB
4.150%, 09/12/00 2,500 2,500
Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Project, Sub-Ser A, RB
4.150%, 10/19/00 8,000 8,000
-------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
-------------------------------------------------------------------------------
VIRGINIA--CONTINUED
Virginia State, Housing
Devolopment Authority,
Commonwealth Merlots
Project, Ser CC,
RB (C) (D) (E)
4.350%, 06/07/00 $ 4,500 $ 4,500
Virginia State, Public School
Authority, Ser B, RB
4.700%, 01/01/01 5,000 5,021
Williamsburg, Industrial
Development Authority,
Colonial Williamsburg
Museum Foundation
Project, RB (C) (D) (E
4.700%, 06/07/00 600 600
---------
271,761
---------
PUERTO RICO (1.1%)
Puerto Rico, Commonwealth
Highway & Transportation
Authority, Ser PA 472, RB (C) (D)
3.900%, 06/01/00 3,260 3,260
---------
Total Municipal Bonds
(Cost $303,391) 303,391
---------
CASH EQUIVALENTS (1.0%)
Financial Square Tax Free
Portfolio 2,129,301 2,129
SEI Institutional Tax
Free Fund 1,000,000 1,000
---------
Total Cash Equivalents
(Cost $3,129) 3,129
---------
Total Investments (99.5%)
(Cost $306,520) 306,520
---------
27
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
TAX-FREE MONEY MARKET FUND--CONCLUDED
-------------------------------------------------------------------------------
VALUE (000)
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.5%) $ 1,601
---------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 245,305,124 outstanding shares
of beneficial interest 245,281
Fund shares of the Investor Shares (unlimited
authorization -- no par value) based
on 62,877,446 outstanding shares of
beneficial interest 62,878
Distributions in excess of net investment
income (11)
Accumulated net realized loss
on investments (27)
---------
Total Net Assets (100.0%) $ 308,121
=========
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 33.
28
<PAGE>
-------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
-------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
-------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (17.9%)
U.S. Treasury Bill
5.605%, 10/12/00 $80,000 $ 78,345
U.S. Treasury Note
5.000%, 02/28/01 20,000 19,803
--------
Total U.S. Treasury Obligations
(Cost $98,148) 98,148
--------
CASH EQUIVALENT (4.6%)
AIM Institutional Treasury
Portfolio 25,000,000 25,000
--------
Total Cash Equivalent
(Cost $25,000) 25,000
--------
REPURCHASE AGREEMENTS (77.8%)
ABN-Amro
6.390%, dated 05/31/00, matures
06/01/00, repurchse price $22,345,614
(collateralized by a U.S. Treasury
Note: total market value
$22,788,927) (B) 22,342 22,342
Barclays
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$21,003,728 (collateralized by
various U.S. Treasury
obligations: total market
value $21,420,900) (B) 21,000 21,000
Deutsche Bank
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$21,003,728 (collateralized by a
U.S. Treasury Note: total market
value $21,420,214) (B) 21,000 21,000
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Greenwich Capital
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$21,377,648 (collateralized by a
U.S. Treasury Note: total market
value $21,803,293) (B) $ 21,374 $ 21,374
JP Morgan
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$149,287,464 (collateralized by
various GNMA and U.S. Treasury
obligations: total market value
$152,247,104) (B) 149,261 149,261
Merrill Lynch
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$21,119,076.35 (collateralized
by various GNMA obligations:
total market value
$21,539,555) (B) 21,115 21,115
Morgan Stanley Dean Witter 6.390%,
dated 05/31/00, matures 06/01/00,
repurchase price $127,208,619
(collateralized by various GNMA
obligations: total market value
$131,883,074) (B) 127,186 127,186
29
<PAGE>
STI CLASSIC FUNDS MAY 31, 2000
-------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND--CONCLUDED
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Salomon Smith Barney
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$22,015,463 (collateralized by
various U.S. Treasury
obligations: total market value
$22,548,567) (B) $ 22,012 $ 22,012
Warburg Dillion
6.390%, dated 05/31/00, matures
06/01/00, repurchase price
$21,258,309 (collateralized by a
U.S. Treasury Note: total market
value $21,682,944) (B) 21,254 21,254
--------
Total Repurchase Agreements
(Cost $426,544) 426,544
--------
Total Investments (100.3%)
(Cost $549,692) 549,692
--------
OTHER ASSETS AND LIABILITIES, NET (-0.3%) (1,813)
--------
-------------------------------------------------------------------------------
VALUE (000)
-------------------------------------------------------------------------------
NET ASSETS:
Fund shares of the Trust Shares
(unlimited authorization -- no par
value) based on 468,324,485 outstanding
shares of beneficial interest $468,325
Fund shares of the Investor Shares (unlimited
authorization -- no par value) based
on 79,281,537 outstanding shares
of beneficial interest 79,281
Undistributed net investment income 301
Accumulated net realized loss
on investments (28)
--------
Total Net Assets (100.0%) $547,879
========
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 33.
30
<PAGE>
U.S. TREASURY MONEY MARKET FUND
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (22.7%)
U.S. Treasury Bill
5.840%, 02/01/01 $15,000 $ 14,404
U.S. Treasury Notes
5.875%, 06/30/00 30,000 30,027
5.375%, 07/31/00 15,000 14,999
5.125%, 08/31/00 15,000 14,990
5.625%, 11/30/00 25,000 24,952
5.250%, 01/31/01 30,000 29,832
5.625%, 02/28/01 15,000 14,917
6.500%, 05/31/01 20,000 19,960
--------
Total U.S. Treasury Obligations
(Cost $164,081) 164,081
--------
REPURCHASE AGREEMENTS (77.5%)
ABN-Amro
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$32,875,013 (collateralized by
various U.S. Treasury
obligations: total market value
$33,527,298) (B) 32,869 32,869
Barclays
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$31,873,466 (collateralized by a
U.S. Treasury Note: total
market value $32,506,103) (B) 31,868 31,868
Deutsche Bank
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$25,165,255 (collateralized by a
U.S. Treasury Bond: total
market value $25,664,368) (B) 25,161 25,161
-------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Greenwich Capital
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$176,109,211 (collateralized
by U.S. Treasury obligations:
total market value
$179,602,834) (B) $176,078 $176,078
JP Morgan
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$24,001,317 (collateralized by
U.S. Treasury Note: total
market value $24,477,482) (B) 23,997 23,997
Merrill Lynch
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$31,643,624 (collateralized by
U.S. Treasury Notes: total
market value $32,272,994) (B) 31,638 31,638
Morgan Stanley Dean Witter
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$31,498,071 (collateralized by
a U.S. Treasury Bond: total
market value $32,209,876) (B) 31,493 31,493
Salomon Smith Barney
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$31,832,560 (collateralized by
a U.S. Treasury Note: total
market value $32,934,696) (B) 31,827 31,827
Warburg Dillion
6.310%, dated 05/31/00, matures
06/01/00, repurchase price
$176,047,517 (collateralized by
a U.S. Treasury Note: total
market value $179,541,003) (B) 176,017 176,017
--------
31
<PAGE>
STATEMENTS OF NET ASSETS
-------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
U.S. TREASURY MONEY MARKET FUND--CONCLUDED
-------------------------------------------------------------------------------
VALUE (000)
-------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $560,948) $560,948
--------
Total Investments (100.2%)
(Cost $725,029) 725,029
--------
OTHER ASSETS AND LIABILITIES, NET (-0.2%) (1,752)
--------
NET ASSETS:
Fund shares of the Trust Shares (unlimited
authorization -- no par value) based
on 723,365,117 outstanding shares
of beneficial interest 723,280
Distributions in excess of net investment
income (3)
--------
Total Net Assets (100.0%) $723,277
========
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 33.
32
<PAGE>
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
ETM Escrowed to Maturity
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 and Revenue Anticipation 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 May 31, 2000. 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 a major
bank.
(F) Prerefunded Security. The maturity date shown is the prerefunded date.
33
<PAGE>
This page left intentionally blank.
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 2000
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- 06/01/99-
05/31/00 05/31/00 05/31/00 05/31/00 05/31/00
---------- -------- -------- -------- ---------
Interest Income $241,262 $27,734 $10,990 $25,872 $41,783
-------- ------- ------- ------- -------
Expenses:
<S> <C> <C> <C> <C> <C>
Investment Advisory Fees 27,672 4,158 1,188 3,101 5,091
Less: Investment Advisory
Fees Waived (6,310) (1,060) (4) (537) (855)
Administrator Fees 3,012 535 212 337 579
Transfer Agent Fees-- Trust Shares 20 15 5 16 15
Transfer Agent Fees-- Investor Shares 31 7 10 14 --
Transfer Agent Fees-- Flex Shares 9 -- -- -- --
Transfer Agent Out of Pocket Expenses 160 52 17 3 30
Printing Expenses 278 46 18 4 53
Custody Fees 213 41 16 16 1
Professional Fees 277 49 32 27 14
Trustee Fees 56 5 1 4 1
Registration Fees 146 74 8 28 8
Distribution Fees-- Investor Shares 1,973 194 51 108 --
Less: Distribution Fees Waived--
Investor Shares (320) (49) (25) (31) --
Distribution Fees-- Flex Shares 14 -- -- -- --
Less: Distribution Fees Waived--
Flex Shares (6) -- -- -- --
Insurance and Other Fees 10 15 7 6 --
-------- ------- ------- ------- -------
Total Expenses 27,235 4,082 1,536 3,096 4,937
-------- ------- ------- ------- -------
Net Investment Income 214,027 23,652 9,454 22,776 36,846
-------- ------- ------- ------- -------
Net Realized Loss on
Securities Sold (34) (30) (20) (28) --
-------- ------- ------- ------- -------
Net Increase in Net Assets
from Operations $213,993 $23,622 $ 9,434 $22,748 $36,846
======== ======= ======= ======= =======
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
35
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, AND NOVEMBER 30,
U.S. GOVERNMENT
PRIME QUALITY TAX-EXEMPT TAX-FREE SECURITIES
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------- --------------------- ---------------------------------- -----------------
06/01/99 06/01/98- 06/01/99- 06/01/98- 06/01/99- 12/01/98 12/01/97- 06/01/99- 06/01/98-
05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/99 11/30/98 05/31/00 05/31/99
-------- -------- -------- -------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income .$ 214,027 $ 125,543 $ 23,652 $ 20,454 $ 9,454 $ 3,806 $ 7,024 $ 22,776 $ 20,487
Net Realized Gain
(Loss) on Investments (34) (19) (30) (1) (20) 2 (9) (28) 191
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Increase in Net
Assets from
Operations 213,993 125,524 23,622 20,453 9,434 3,808 7,015 22,748 20,678
---------- ---------- --------- ---------- --------- -------- --------- -------- ---------
Trust Shares ......... (165,267) (99,427) (19,775 (16,665) (9,064 (3,739) (6,778 (19,825) (17,844)
Investor Shares ........(48,632) (26,132) (3,883) (3,788) (400) (91) (239) (2,927) (2,641)
Flex Shares............... (84) -- -- -- -- -- -- --
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Total Distributions ..(213,983) (125,559) (23,658) (20,453) (9,464) (3,830) (7,017) (22,752) (20,485)
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares
Issued 6,299,753 4,698,805 1,113,796 984,432 460,442 246,896 369,536 905,352 739,766
Shares Issued in
Connection
with Crestar Merger .. -- 1,179,761 -- -- -- -- -- -- --
Reinvestment of Cash
Distributions 9,263 4,306 -- -- -- -- -- 3,025 1,170
Cost of Shares
Redeemed .. (6,901,000)(3,859,828) (999,548) (790,815) (485,600)(247,343) (325,471) (844,261) (714,135)
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Increase (Decrease) in
Net Assets From
Trust Share
Transactions (591,984) 2,023,044 114,248 193,617 (25,158) (447) 44,065 64,116 26,801
--------- ---------- --------- ---------- --------- -------- --------- -------- --------
Investor Shares:
Proceeds from Shares
Issued 1,401,995 1,199,739 334,145 356,214 97,834 5,749 22,060 290,823 294,871
Shares Issued in
Connection with
Crestar Merger .. -- 187,089 -- -- -- -- -- -- --
Reinvestment of Cash
Distributions 51,455 24,846 4,155 3,497 415 110 237 3,062 2,578
Cost of Shares
Redeemed .. (1,058,926) (905,401) (341,648) (365,395) (41,326) (8,754) (21,081) (276,049) (294,755)
--------- ---------- --------- ---------- --------- -------- --------- -------- --------
Increase (Decrease) in
Net Assets From
Investor Share
Transactions 394,524 506,273 (3,348) (5,684) 56,923 (2,895) 1,216 17,836 2,694
--------- ---------- --------- ---------- --------- -------- --------- -------- --------
Flex Shares:
Proceeds from Shares Is 6,126 -- -- -- -- -- -- -- --
Reinvestment of Cash
Distributions 70 -- -- -- -- -- -- -- --
Cost of Shares Redeemed ..(2,751) -- -- -- -- -- -- -- --
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Increase in Net Assets
From Flex Share
Transactions 3,445 -- -- -- -- -- -- -- --
---------- ---------- --------- ---------- --------- -------- --------- -------- ---------
Increase (Decrease) in
Net Assets From Share
Transactions (194,015) 2,529,317 110,900 187,933 31,765 (3,342) 45,281 81,952 29,495
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Total Increase
(Decrease) in
Net Assets........ (194,005 2,529,282 110,864 187,933 31,735 (3,364) 45,279 81,948 29,688
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
Net Assets:
Beginning of Period ....4,821,332 2,292,050 770,494 582,561 276,386 279,750 234,471 465,931 436,243
---------- ---------- --------- ---------- --------- -------- --------- -------- --------
End of Period .........$4,627,327 $4,821,332 $ 881,358 $ 770,494 $ 308,121 $276,386 $ 279,750 $547,879 $465,931
========== ========== ========= ========== ========= ======== ========= ======== ========
</TABLE>
STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, AND NOVEMBER 30,
<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET FUND
------------------------------------
06/01/99- 12/01/98- 12/01/97-
05/31/00 05/31/99 11/30/98
--------- --------- ---------
Operations:
<S> <C> <C> <C>
Net Investment Income . $ 36,846 $ 15,437 $ 29,481
Net Realized Gain
(Loss) on Investments -- -- --
---------- -------- --------
Increase in Net
Assets from
Operations 36,846 15,437 29,481
---------- -------- --------
Trust Shares ........ (36,849) (15,522) (29,476)
Investor Shares ..... -- -- --
Flex Shares.......... -- -- --
---------- --------- ----------
Total Distributions (36,849) (15,522) (29,476)
---------- --------- ---------
Capital Transactions (1):
Trust Shares:
Proceeds from Shares
Issued 1,480,905 681,589 1,131,937
Shares Issued in
Connection
with Crestar Merger . -- -- --
Reinvestment of Cash
Distributions 23 1 4
Cost of Shares
Redeemed .. (1,518,481) (620,595) (1,064,404)
---------- --------- ----------
Increase (Decrease) in
Net Assets From
Trust Share
Transactions (37,553) 60,995 67,537
---------- --------- ----------
Investor Shares:
Proceeds from Shares
Issued -- -- --
Shares Issued in
Connection with
Crestar Merger .. -- -- --
Reinvestment of Cash
Distributions -- -- --
Cost of Shares
Redeemed .. -- -- --
---------- --------- ----------
Increase (Decrease) in
Net Assets From
Investor Share
Transactions -- -- --
---------- --------- ----------
Flex Shares:
Proceeds from Shares I -- -- --
Reinvestment of Cash
Distributions -- -- --
Cost of Shares Redeemde -- -- --
---------- --------- ----------
Increase in Net Assets
From Flex Share
Transactions -- -- --
---------- --------- ----------
Increase (Decrease) in
Net Assets From Share
Transactions (37,553) 60,995 67,537
---------- --------- ----------
Total Increase
(Decrease) in
Net Assets........ (37,556 60,910 67,542
---------- --------- ----------
Net Assets:
Beginning of Period ... 760,833 699,923 632,381
---------- --------- ----------
End of Period ......... $ 723,277 $ 760,833 $ 699,923
========== ========= ==========
</TABLE>
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT
PRIME QUALITY TAX-EXEMPT TAX-FREE SECURITIES
MONEY MARKET FUND 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- 06/01/99- 06/01/98
05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/99 11/30/98 05/31/00 05/31/99
-------- -------- -------- --------- -------- -------- --------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(1) Shares Issued and Redeemed:
Trust Shares:
Shares Issued ............ 6,299,749 4,698,805 1,113,795 984,432 460,442 246,896 369,536 905,352 739,766
Shares Issued in
Connection with
Crestar Merger .. -- 1,179,840 -- -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions 9,263 4,306 -- -- -- -- -- 3,024 1,170
Shares Redeemed ..........(6,901,000)(3,859,828) (999,547) (790,815) (485,599) (247,343) (325,471) (844,261) (714,135)
--------- ----------- -------- -------- -------- -------- -------- -------- --------
Net Trust Share
Transactions (591,988) 2,023,123 114,248 193,617 (25,157) (447) 44,065 64,115 26,801
--------- ----------- -------- -------- -------- -------- -------- -------- --------
Investor Shares:
Shares Issued ........... 1,401,995 1,199,740 334,146 356,214 97,834 5,749 22,060 290,823 294,871
Shares Issued in
Connection with
Crestar Merger .. -- 187,089 -- -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions 51,455 24,846 4,155 3,497 415 110 237 3,063 2,578
Shares Redeemed ..........(1,058,894) (905,433 (341,648) (365,395) (41,327) (8,754) (21,081) (276,049) (294,755)
---------- ---------- -------- -------- -------- -------- -------- -------- --------
Net Investor Share
Transactions 394,556 506,242 (3,347 (5,684) 56,922 (2,895) 1,216 17,837 2,694
---------- ---------- -------- -------- -------- -------- -------- -------- --------
Flex Shares
Shares Issued........... 6,126 -- -- -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions 71 -- -- -- -- -- -- -- --
Shares Redeemed......... (2,751) -- -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- -------- -------- --------
Net Flex Share
Transactions 3,446 -- -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- -------- -------- --------
Net Change in Capital
Shares (193,986) 2,529,365 110,901 187,933 31,765 (3,342) 45,281 81,952 29,495
---------- ---------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
--------------------------------------------------------------------------------
U.S. TRESAURY
MONEY MARKET FUND
-------------------------------
06/01/99- 12/01/98 12/01/97-
05/31/00 05/31/99 11/30/98
---------- -------- ---------
(1) Shares Issued and Redeeme
Trust Shares:
Shares Issued ........... 1,480,906 681,589 1,131,937
Shares Issued in
Connection with
Crestar Merger .. -- -- --
Shares Issued in Lieu
of Cash Distributions 23 1 4
Shares Redeemed ......... (1,518,481) (620,595) (1,064,404)
---------- -------- ----------
Net Trust Share
Transactions (37,552) 60,995 65,537
---------- -------- ---------
Investor Shares:
Shares Issued ........... -- -- --
Shares Issued in
Connection with
Crestar Merger .. -- -- --
Shares Issued in Lieu
of Cash Distribution -- -- --
Shares Redeemed ......... -- -- --
---------- -------- ---------
Net Investor Share
Transactions -- -- --
---------- -------- ---------
Flex Shares:
Shares Issued........... -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- --
Shares Redeemed......... -- -- --
---------- -------- ---------
Net Flex Share
Transactions -- -- --
---------- -------- ---------
Net Change in Capital
Shares (37,552) 60,995 67,537
---------- -------- ---------
Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
37
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE NOTED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET NET ASSET
NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END
BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD
------------------- ---------- --------------------- ---------
PRIME QUALITY MONEY MARKET FUND
Trust Shares
<S> <C> <C> <C> <C>
2000 $1.00 $ 0.05 $(0.05) $1.00
1999 1.00 0.05 (0.05) 1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
Investor Shares
2000 $1.00 $ 0.05 $(0.05) $1.00
1999 1.00 0.05 (0.05) 1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
Flex Shares
2000 (A) $1.00 $ 0.03 $(0.03) $1.00
TAX-EXEMPT MONEY MARKET FUND
Trust Shares
2000 $1.00 $ 0.03 $(0.03) $1.00
1999 1.00 0.03 (0.03) 1.00
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
Investor Shares
2000 $1.00 $ 0.03 $(0.03) $1.00
1999 1.00 0.03 (0.03) 1.00
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
TAX-FREE MONEY MARKET FUND (B)
Trust Shares
2000 $1.00 $ 0.03 $(0.03) $1.00
1999** 1.00 0.01 (0.01) 1.00
For the Year Ended November 30:
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
1995 1.00 0.03 (0.03) 1.00
Investor Shares
2000 $1.00 $ 0.03 $(0.03) $1.00
1999** 1.00 0.01 (0.01) 1.00
For the Year Ended November 30:
1998 1.00 0.03 (0.03) 1.00
1997 1.00 0.03 (0.03) 1.00
1996 1.00 0.03 (0.03) 1.00
1995 1.00 0.03 (0.03) 1.00
<FN>
(DAGGER)Total return is for the period indicated and has not been annualized.
* Annualized
** For the period December 1, 1998 to May 31, 1999. All ratios for the period
have been annualized. (A) Commenced operations on October 4, 1999.
(B) 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.
</FN>
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES TO INCOME TO
NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS
TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS
RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS)
-------- ----------- ------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C> <C>
5.20% $3,311,229 0.60% 5.06% 0.75% 4.91%
4.83 3,903,232 0.60 4.69 0.77 4.52
5.22 1,880,229 0.59 5.10 0.77 4.92
5.01 1,086,555 0.58 4.90 0.76 4.72
5.25 1,050,800 0.58 5.11 0.78 4.91
5.02% $1,312,653 0.77% 4.94% 0.95% 4.76%
4.66 918,100 0.77 4.52 0.97 4.32
5.04 411,821 0.76 4.93 0.98 4.71
4.84 283,544 0.75 4.74 0.97 4.52
5.08 215,696 0.75 4.94 1.00 4.69
2.93% $ 3,445 1.50%* 4.46%* 1.99%* 3.97%*
3.19% $ 755,858 0.52% 3.16% 0.66% 3.02%
2.81 641,640 0.52 2.75 0.66 2.61
3.21 448,023 0.51 3.14 0.67 2.98
3.09 333,006 0.50 3.04 0.66 2.88
3.28 273,613 0.50 3.23 0.68 3.05
3.07% $ 125,500 0.64% 3.01% 0.82% 2.83%
2.69 128,854 0.64 2.66 0.82 2.48
3.09 134,538 0.62 3.04 0.83 2.83
2.97 102,013 0.62 2.92 0.83 2.71
3.16 95,223 0.62 3.10 0.85 2.87
3.23% $ 245,243 0.51% 3.19% 0.51% 3.19%
1.27 270,431 0.67 2.51 0.82 2.36
2.97 270,899 0.66 2.92 0.81 2.77
3.06 226,837 0.66 3.02 0.81 2.87
3.14 182,320 0.66 2.88 0.81 2.73
3.26 202,333 0.66 3.19 0.81 3.04
3.07% $ 62,878 0.67% 3.17% 0.73% 3.11%
1.27 5,955 0.67 2.52 1.06 2.13
2.96 8,851 0.67 2.92 1.07 2.52
3.05 7,634 0.68 3.42 1.08 3.02
3.13 2,994 0.67 2.86 1.07 2.46
3.25 1,627 0.67 3.16 1.07 2.76
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
39
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (concluded)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE NOTED) FOR A
SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET ASSET
NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END
BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD
------------------- ---------- --------------------- ---------
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Trust Shares
<S> <C> <C> <C> <C>
2000 $1.00 $ 0.05 $(0.05) $1.00
1999 1.00 0.04 (0.04) 1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
Investor Shares
2000 $1.00 $ 0.05 $(0.05) $1.00
1999 1.00 0.04 (0.04) 1.00
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
U.S. TREASURY MONEY MARKET FUND (A)
Trust Shares
2000 $1.00 $ 0.05 $(0.05) $1.00
1999* 1.00 0.02 (0.02) 1.00
For the Year Ended November 30:
1998 1.00 0.05 (0.05) 1.00
1997 1.00 0.05 (0.05) 1.00
1996 1.00 0.05 (0.05) 1.00
1995 1.00 0.05 (0.05) 1.00
<FN>
* For the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized.
(DAGGER)Total return is for the period indicated and has not been annualized.
(A) On May 24, 1999, the Crestar Tax-Free Money Fund exchanged all of its assets and certain
liabilities for shares of the U.S. Treasury Money Market Fund. The Crestar U.S. Treasury
Money Fund is the accounting survivor in this transaction, and as a result, its basis of
accounting for assets and liabilities and its operating results for the periods prior to
May 24, 1999 have been carried forward in these financial highlights.
</FN>
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES TO INCOME TO
NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS
TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS
RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS)
-------- ----------- ------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C> <C> <C>
4.86% $ 468,568 0.63% 4.80% 0.74% 4.69%
4.57 404,459 0.63 4.47 0.76 4.34
5.04 377,490 0.62 4.92 0.78 4.76
4.83 344,350 0.61 4.73 0.76 4.58
5.14 325,493 0.61 5.02 0.78 4.85
4.71% $ 79,311 0.77% 4.62% 0.93% 4.46%
4.41 61,472 0.77 4.32 0.98 4.11
4.90 58,753 0.76 4.79 0.96 4.59
4.69 63,178 0.75 4.59 0.96 4.38
4.99 58,608 0.75 4.88 0.99 4.64
4.81% $ 723,277 0.63% 4.71% 0.74% 4.60%
2.08 760,833 0.68 4.10 0.83 3.95
4.89 699,923 0.66 4.77 0.81 4.62
4.91 632,381 0.65 4.82 0.80 4.67
4.80 389,051 0.66 4.69 0.81 4.54
5.29 370,454 0.66 5.16 0.81 5.01
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
1. Organization:
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company with thirty-five funds as of May 31, 2000: the
Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund), the
Core Equity Fund, the E-Commerce Opportunity Fund, the Growth and Income Fund,
the International Equity Fund, the International Equity Index Fund, the Life
Vision Moderate Growth Fund (formerly Life Vision Balanced Portfolio), the Life
Vision Growth and Income Fund (formerly Life Vision Growth and Income
Portfolio), the Life Vision Aggressive Growth Fund (formerly Life Vision Maximum
Growth Portfolio), the Mid-Cap Equity Fund, the Small Cap Value Equity Fund
(formerly Small Cap Equity Fund), the Small Cap Growth Stock Fund, the Tax
Sensitive Growth Stock Fund, the Value Income Stock Fund, (collectively the
"Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond
Fund, the High Income Fund, the Investment Grade Bond Fund, the Investment Grade
Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the
Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S.
Treasury Securities Fund, the U.S. Government Securities Fund, the Virginia
Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund,
(collectively the "Fixed Income Funds"), the Prime Quality Money Market Fund,
the Tax-Exempt Money Market Fund, the Tax-Free Money Market Fund, the U.S.
Government Securities Money Market Fund, the U.S. Treasury Money Market Fund
(collectively the "Retail Money Market Funds" 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 Fund are segregated, and a shareholder's
interest is limited to the fund in which shares are held. Each Fund's prospectus
provides a description of the Fund's investment objectives, policies and
strategies. The financial statements presented herein are those of the 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.
Effective May 1999, the Board of Trustees of the STI Classic Funds and Board of
Directors of the CrestFunds Inc. ("CrestFunds") approved an Agreement and Plan
of Reorganization (the "Reorganization Agreement") providing for the transfer of
all assets and certain stated liabilities of the CrestFunds in exchange for the
issuance of shares in the 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, two 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 for
the periods prior to and ending on May 31, 1999 reflect activity beginning
on the first day of the accounting survivor's fiscal year.
42
<PAGE>
--------------------------------------------------------------------------------
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
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 TO SHAREHOLDERS -- 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.
RECLASSIFICATION OF COMPONENTS OF NET ASSETS -- The timing and
characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may
differ from generally accepted accounting principles. As a result, net
investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from
distributions during such period. These book/tax differences may be
temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to paid-in-capital, or accumulated
net realized gain, as appropriate, in the period that the differences
arise. Accordingly, the following permanent differences, primarily
attributable to net operating losses and the classification of short-term
capital gains and ordinary income for tax purposes have been reclassified
to/from the following accounts:
ACCUMULATED UNDISTRIBUTED
REALIZED NET INVESTMENT
GAIN (LOSS) INCOME (LOSS)
(000) (000)
------------ --------------
U.S. Government Securities
Money Market Fund ......... (191) 191
This reclassification has no effect on net assets or net asset values per
share.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
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 the Distributor to manage the
investments of repurchase agreements for the Funds. For its services the
Distributor received $1,846,277 for the year ended May 31, 2000.
The Trust and the Distributor are parties to a Distribution Agreement dated
November 21, 1995. The Distributor does not receive any fees for its
distribution services provided under this agreement.
4. Administration and Transfer Agency Servicing Agreements:
The Trust and the Administrator are parties to an Administration Agreement dated
May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the
Administrator provides administrative services for an annual fee (expressed as a
percentage of the combined average daily net assets of the Trust and STI Classic
Variable Trust) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on
the next $3 billion, .065% on the next $2 billion and .06% for over $10 billion.
Prior to May 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 Adviser"), a
subsidiary of SunTrust Bank, 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 .52 .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 -- -- -- --
44
<PAGE>
--------------------------------------------------------------------------------
The Investment Adviser 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 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:
Subsequent to October 31, 1999, the Funds recognized net capital losses for tax
purposes that have been deferred to 2000 and can be used to offset future
capital gains after May 31, 2000. The Funds had capital loss carryforwards at
May 31, 2000 as follows:
<TABLE>
<CAPTION>
POST 10/31
CARRYOVER EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES DEFERRED
05/31/00 2003 2004 2005 2006 2007 2008 LOSS
(000) (000) (000) (000) (000) (000) (000) (000)
---------- -------- -------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Prime Quality Money
Market Fund $367 $110 $14 $223 $-- $-- $20 $15
Tax-Exempt Money
Market Fund 32 -- 4 -- -- -- 28 3
Tax-Free Money
Market Fund -- -- -- -- -- -- -- 20
U.S. Government Securities
Money Market Fund -- -- -- -- -- -- -- 27
</TABLE>
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
7. CrestFunds Merger:
The Board of Directors and shareholders of the CrestFunds approved a
reorganization of the CrestFunds into the STI Classic Funds which took place
during May 1999.
The following table summarizes certain relevant information of the Funds prior
to and immediately after the business combination in May 1999 and is unaudited:
<TABLE>
<CAPTION>
SHARES
OUTSTANDING SHARES ISSUED NET ASSETS NAV
ON MERGER IN BUSINESS AFTER PER
CRESTFUND DATE STICLASSIC FUND COMBINATION COMBINATION SHARE
------------ ----------- --------------- ------------ ----------- -----
Cash Reserve Prime Quality Money Market (2)
<S> <C> <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
<FN>
(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.
</FN>
</TABLE>
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 Adviser 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 Adviser 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.
9. Subsequent Events:
Effective June 30, 2000, SunTrustBanks, Inc. reorganized all of the investment
management functions of its three institutional money management units,
including SunTrust Bank, into Trusco Capital Management, Inc.
On May 16, 2000, the Board of Trustees of the STI Classic Funds approved the
name change of the Tax-Free Money Market Fund to the Virginia Tax-Free Money
Market Fund.
46
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000
To the Shareholders and Board of Trustees of
STI Classic Funds:
We have audited the accompanying statements of net assets of the Prime Quality
Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S. Government
Securities Money Market, and U.S. Treasury Money Market Funds of STI Classic
Funds (the "Trust") as of May 31, 2000, and the related statements of
operations, changes in net assets, and financial highlights for the periods
presented, excluding the periods indicated below. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The statements of changes for the year
ended November 30, 1998 and financial highlights for the periods presented prior
to May 31, 1999, for the Tax-Free Money Market and U.S. Treasury Money Market
Funds, were audited by other auditors whose report, dated January 15, 1999,
expressed an unqualified opinion on this information.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 2000, by correspondence with the
custodian and the application of alternative auditing procedures with respect to
unsettled securities transactions. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights audited by us
present fairly, in all material respects, the financial position of the Prime
Quality Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S.
Government Securities Money Market, and U.S. Treasury Money Market Funds, of STI
Classic Funds as of May 31, 2000, the results of their operations, changes in
their net assets, and financial highlights for each of the periods described in
the first paragraph above, in conformity with accounting principles generally
accepted in the United States.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
July 18, 2000
47
<PAGE>
NOTICE TO SHAREHOLDERS
--------------------------------------------------------------------------------
STI CLASSIC FUNDS MAY 31, 2000 UNAUDITED
For shareholders that do not have a May 31, 2000 tax year end, this notice is
for informational purposes only. For shareholders with a May 31, 2000, please
consult your tax adviser as to the pertinence of this notice. For the fiscal
year ended May 31, 2000, each portfolio is designating the following items with
regard to distributions paid during the year:
<TABLE>
<CAPTION>
LONG TERM
(20% RATE) ORDINARY
CAPITAL GAIN INCOME TAX-EXEMPT TOTAL QUALIFYING
FUND DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DIVIDENDS (1)
---------------- ------------ ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Prime Quality Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Tax-Exempt Money Market Fund 0.00% 0.04% 99.96% 100.00% 0.00%
Tax Free Fund 0.00% 0.00% 100.00% 100.00% 0.00%
U.S. Government Securities
Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
U.S. Treasury Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
<FN>
-----------------
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a
percentage of "Ordinary Income Distributions".
</FN>
</TABLE>
48
<PAGE>
[BLANK PAGE]
<PAGE>
INVESTMENT ADVISER
Trusco Capital Management, Inc.
STI Classic Funds are not deposits, are not insured or guaranteed
by the FDIC or any other government agency, and are not endorsed
by and do not constitute obligations of SunTrust Banks, Inc. or
any other of its affiliates. Investment in the 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.
<PAGE>
