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Sensible Investing for Generations
SEMI-ANNUAL
Report
TO SHAREHOLDERS
MARCH 31, 1999
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TABLE OF CONTENTS
Letter from the Chairman and the Investment Advisor
Page 2
Performance Report
Page 2
Statements of Assets and Liabilities
Page 15
Statements of Operations
Page 22
Statements of Changes in Net Assets
Page 26
Schedules of Portfolio Investments
Page 33
Notes to Financial Statements
Page 64
Financial Highlights
Page 81
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Letter from the Chairman and the Investment Advisor
Dear Shareholders:
We are pleased to send you this semiannual report for the six months ended
March 31, 1999. This was a period during which the financial markets once again
proved that what you see is not always what you get.
At first glance, circumstances could not have been better, especially for
equity investors. Many market indices, recovering from last summer's sharp
correction, resumed their upward momentum and regularly set new records. For
example, on March 29 the Dow Jones Industrial Average/1/ closed for the first
time above the 10,000 mark, once considered a nearly unapproachable level.
On the bond front, conditions looked equally rosy. Since global economic
conditions had begun to deteriorate in Asia in the summer of 1997--a decline
that accelerated when Russia defaulted on its debt and Brazil devalued its
currency--U.S. Treasury bonds had been the destination of millions of investors
fleeing from international markets in pursuit of quality and stability. Bond
yields had plummeted, driving up bond prices (rates and prices move inversely
to one another) and making many fixed-income shareholders feel very good about
their investments.
With all this evidence, it would be reasonable to believe that stocks and bonds
delivered robust performance during the six months just passed. But all was not
as it seemed.
Stocks: A Very Narrow Target
During the period, large growth stocks, particularly those issues with high
fundamental valuations, did well. The same held true for Internet stocks, many
of which produced little or no profit.
As for the rest of the market, the vast majority of stocks remained flat or
actually lost money. To illustrate, according to the Salomon Smith Barney
Laggards Indicator, nearly 80 percent of publicly traded companies trailed the
S&P 500 Stock Index's/2/ leading performers by more than 15 percent for the
previous 12 months. This narrow participation in the market's seeming recovery
made it difficult for most value-oriented investors, especially those drawn to
mid-cap and small-cap issues.
As we entered a new period in April, the disparity in the performance of large-
and small-cap stocks was just about the widest it had ever been. However, in
recent weeks, we caught a glimpse that indicated market sentiment might be
shifting toward value stocks. With concerns about future earnings growth
abating somewhat, investors appear less inclined to pay rich multiples for
growth stocks, and more willing to consider the merits of a value-driven
approach.
Bonds: Interest-Rate Cuts Helped, for a While
The big news in the fixed-income market was the Federal Reserve Board's
decision to cut short-term interest rates three times in the last 13 weeks of
1998. After lowering the Fed Funds rate--the rate banks charge one another for
overnight loans--in September, the Fed surprisingly cut the rate again in mid-
October, the first time in nearly five years that the Fed changed rates outside
of a scheduled policy meeting. A third rate cut followed in November.
Powered by lower rates and the vestiges of investors' earlier flight to U.S.
Treasury securities, bonds staged a powerful run in the third quarter of
calendar year 1998. But the good times did not last. In late 1998 and early
1999, rates began to edge higher, the shine came off Treasuries, and many
investors were drawn back to non-investment grade bonds and debt issued outside
the United States. February was a particularly tough month, with
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/1/The Dow Jones Industrial Average is a price weighted average based on the
price only performance of 30 blue chip stocks.
/2/The S&P 500 Stock Index is an unmanaged index that consists of 500 stocks
chosen for market size, liquidity and group representation and is one of the
most widely used benchmarks of U.S. equity performers.
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Treasuries posting their worst loss in 18 years. As is so often the case, other
fixed-income investments followed suit. During our six-month reporting period,
bonds of nearly every stripe gave up ground.
The Next Six Months: Cautious Optimism
With economic data for the first quarter of 1999 now in hand, we look ahead
with relatively positive outlooks for both stocks and bonds over the
intermediate to long term. As we mentioned earlier, we believe that the type of
value stocks in which most of our equity funds invest are attractively priced,
and could be coming back into vogue after a lengthy period of underperformance.
We also believe that interest rates could remain in a fairly narrow range for
the rest of the year, which could help bonds perform moderately well.
Other positives include continued economic growth (though perhaps at a slower
rate than in recent years), historically low unemployment (which bodes well for
consumer spending) and virtually nonexistent inflation. All of these factors
could serve to support both stock and bond prices in the United States.
We also see some attractive opportunities in selected international markets. We
encourage long-term investors to consider adding an element of foreign
diversification through the BB&T International Equity Fund.
Still, we doubt whether we will see a slowdown in volatility, which has now
become a fact of life in all markets. In light of this volatility, we recommend
that shareholders take the time to review their goals, determine whether they
are taking an appropriate amount of risk and then make any appropriate
adjustments to their investment program. As always, we remain ready to help you
meet your objectives.
We thank you for continued support and look forward to serving your investment
needs.
Sincerely,
/s/ Walter B. Grimm
Walter B. Grimm
Chairman
BB&T Funds
/s/ David C. McMahon
David C. McMahon
Executive Vice President and Chief Investment Officer
Branch Banking and Trust Company
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Past performance is not indicative of future results.
This report is authorized for distribution only when preceded or accompanied by
a prospectus. Please read the prospectus carefully before investing or sending
money. The BB&T Funds are distributed by BISYS Fund Services LP.
The BB&T Funds are NOT FDIC INSURED and are not deposits or obligations of, or
guaranteed or endorsed by, Branch Banking and Trust Company or its affiliates.
Investment products involve investment risk, including the possible loss of
principal.
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The BB&T International Equity Fund/1/
Throughout the period, growth outperformed value in most foreign markets, just
as it did in the United States. The main reason behind the dominance of growth
stocks was slow economic growth throughout Europe and the Pacific Basin. With
the sluggishness of so many economies, investors reacted by focusing on
companies with any kind of earnings growth; investors were willing to pay
generous price-to-earnings multiples in order to secure the relative certainty
of earnings growth. It was this situation that led to growth stocks
outperforming the type of value equities we generally favor.
Progress Is on the Horizon
The end of the period, however, saw a number of countries cut interest rates in
an attempt to revive their economies, and we have recently begun to see some
evidence that the trend toward lower rates has begun to stimulate economic
growth. Economic indicators throughout Europe are rising, and consumer
confidence has risen to very high levels.
We also believe that Asia has addressed its problems quite significantly.
Interest rates in Japan have been lowered to virtually zero, and the government
has been able to stop the nation's economy from sliding any further. The banking
situation has improved, as has the housing market--all of which bodes well for a
future recovery. The currency devaluations in many other Asian nations have made
their economies more competitive in the world's markets. These countries have a
tremendous amount of modern manufacturing capacity in place and ready to be
used. Therefore, we believe, Asia is in a good position to benefit from any
pickup in world economic growth.
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Average Annual Total Return+
As of 3/31/99
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Inception Since
Class Date 6Month++ 1 Year Inception
- ------------------------------------------------------
A Shares* 1/2/97 11.92% -6.44% 6.11%
B Shares** 1/2/97 11.92% -6.46% 6.44%
Trust Shares 1/2/97 17.43% -1.82% 8.69%
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* Reflects 4.50% maximum sales charge
** Refelects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
With investment opportunities in Asia looking increasingly attractive, we
decided over the last six months to take part of the Fund's portfolio out of
the United Kingdom and Continental Europe and put it to work in selected Asian
stocks, especially those in Japan.
As of March 31, 1999, approximately 41.3% of the Fund's holdings was invested
in Continental Europe, 22.4% in the United Kingdom, 21.3% in Japan, 6.1% in
other Pacific Basin countries, 6.9% in the world's emerging markets and 2% in
cash and cash equivalents./2/
The top five equity holdings in the Fund were BP Amoco Co. (2.2% of the
portfolio's net assets), Telecom Italia (1.8%), Glaxo Wellcome PLC (1.8%),
British Telecom PLC (1.6%) and TOTAL SA (1.6%)./2/
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Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return for the period would have been lower.
/1/International investing involves increased risk and volatility.
/2/The composition of the Fund's holdings is subject to change.
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The BB&T Small Company Growth Fund/1/
The last six months continued to present challenges for small-cap stocks. We
saw a very narrow market leadership during the period; most of the overall
market gain was confined to a handful of large-cap growth stocks, a sector that
does not include the type of equities we favor.
Our Internet Holdings Delivered Outstanding Returns
In keeping with our disciplined investment approach, we maintained our core
holdings in four sectors: technology, consumer goods, health care, and
commercial and business services. A number of stocks did very well for us. In
the retail sector, we scored with Ann Taylor Stores (1.4% of the portfolio's net
holdings), Pacific Sunwear (1.2%) and Children's Place (0.8%). On the technology
side, we enjoyed significant gains from computer software companies such as
GeoTel Communications (1.6%), Peregrine Systems (2.0%) and New Era of Networks
(1.4%)./2/
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Average Annual Total Return+
As of 3/31/99
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Inception Since
Class Date 6 Month++ 1 Year Inception
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A Shares * 12/7/94 20.88% -6.50% 19.45%
B Shares** 1/2/96 21.14% -6.72% 19.78%
Trust Shares 12/7/94 26.78% -1.84% 21.06%
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* Reflects 4.5% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
Our other major play during the period was a select group of Internet stocks.
We started venturing into this sector about a year ago and now hold a widely
diversified selection of names with ties to the Internet. One particular
success for us was VeriSign, Inc. (2.3%); our cost basis is just under $44 a
share, and the stock has soared to about $150 a share. We are also pleased with
our investment in Infoseek Corp. (1.3%), a premier Web search engine; we have a
cost basis around $47 a share, and the price recently rose to $79 a share./2/
We are not market prognosticators, and we do not know when the small-cap sector
will recover. But we will say this: we believe that small-cap stocks, right
now, are more undervalued, relative to the broader market, than they have been
in three decades; we believe the relative valuations make a compelling case for
investing in small caps. With that in mind, we see a tremendous opportunity in
the types of stocks we buy. Investors may need some patience, but we believe
the opportunity exists for potentially sizable gains over the long term.
As of March 31, 1999, the top five equity holdings in the Fund were Metromedia
Fiber Network (2.5%), VeriSign Inc. (2.3%), Carrier Access Corp. (2.3%), Linens
'N Things, Inc. (2.2%) and MIPS Tech. Inc. (2.1%)./2/
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Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return would have been lower.
/1/Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure and, historically, their
stocks have experienced a greater degree of market volatility than stocks on
average.
/2/The composition of the Fund's holdings is subject to change.
Performance for the B Shares prior to the date the shares commenced operations
(1/2/96) is based on the performance of the A Shares as adjusted to reflect the
12b-1 fees and CDSC of B Shares.
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The BB&T Large Company Growth Fund
Throughout the period, owning large-cap growth stocks, the kind of securities
in which we invest, was the surest road to positive returns. To illustrate,
during the last six months, the S&P 500 Index/1/ rose more than 27%, while the
Russell 2000 Index/2/ was up only 10%. With investors throughout the world
nervous about corporate earnings in many sectors, shares of large, well-known
companies with proven earnings growth were bid up to rich levels.
Technology, Retail and Health Care Were big Winners
The Fund participated in this large-cap rally, in part because our portfolio
carries an above-average market capitalization; our typical market cap is $100-
$103 billion, while the S&P 500's average market cap was roughly $98 billion at
the end of the period.
We also benefited from our heavy weighting in the technology sector, where
outstanding performers included Cisco Systems, Inc. (2.8% of the portfolio's
net holdings), Microsoft Corp. (2.7%) and America Online (2.8%). Our decision
in late November to buy shares of America Online was particularly profitable.
To be honest, we thought that AOL's valuations were high, but the stock had
terrific price momentum, which continued to build after we bought in. By the
end of the period, AOL had contributed significantly to our gains./3/
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Average Annual Total Return+
As of 3/31/99
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Inception Since
Class Date 6 Month++ 1 Year Inception
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A Shares * 10/3/97 23.72% 12.26% 13.36%
B Shares** 10/3/97 24.09% 12.67% 13.68%
Trust Shares 10/3/97 29.84% 17.83% 17.28%
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* Reflects 4.5% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
Other winning positions included retailers such as Gap Stores (1.9%) and Wal-
Mart Stores, Inc. (2.6%) and health-care names such as Pfizer, Inc. (2.5%) and
Merck & Co. (2.1%). Overall, we held just 70 stocks in our portfolio at the end
of the period, a typical number for the Fund. We believe in buying a relatively
small, selective group of stocks, rather than diversifying too broadly./3/
Going forward, we will continue to follow our proven buy-and-sell strategy:
adding to core positions when specific issues become less expensive and selling
shares of stocks that advance too quickly and become too large a portion of the
portfolio.
As of March 31, 1999, the top five equity holdings in the Fund were Cisco
Systems Inc. (2.8%), America Online (2.8%), Microsoft Corp. (2.7%), Wal-Mart
Stores, Inc. (2.6%) and Home Depot Inc. (2.5%)./3/
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Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return for the period would have been lower.
/1/The S&P 500 Stock Index is an unmanaged index that consists of 500 stocks
chosen for market size, liquidity and group representation and is one of the
most widely used benchmarks of U.S. equity performers.
/2/The Russell 2000 Index is an unmanaged index, which represents the
performance of domestically traded common stocks of small to mid-sized
companies.
/3/The composition of the Fund's holdings is subject to change.
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The BB&T Growth and Income Stock Fund
The last six months was a tough period for the type of value-oriented stocks we
own. The market favored a very narrow group of large-cap growth stocks. This
group possesses characteristics that go against just about every valuation
standard we favor. Most of the recent market leaders do not pay dividends--
while we pursue above-average yields for our shareholders--and trade at
earnings multiples of 70 times last year's estimated earnings, or higher. These
factors led to a huge divergence between the performance of just a few, very
large growth stocks and the rest of the market.
A Relentless Commitment to Value
We remained true to our investment philosophy: enabling shareholders to
participate in the market's performance, while providing above-average current
income that can dampen short-term volatility. The portfolio maintains the same
characteristics that it has had for years: a high dividend yield, a
significantly low price-to-earnings ratio, relatively low turnover, and
diversification across major economic sectors.
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Average Annual Total Return+
As of 3/31/99
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Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
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A Shares* 10/9/92 5.91% -6.41% 17.22% 15.55%
B Shares** 1/2/96 5.44% -6.48% 17.62% 15.92%
Trust Shares 10/9/92 11.00% -1.76% 18.62% 16.66%
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* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
We avoid making large economic sector bets. But as a result of our value stock-
picking, we ended the period with a slight underweighting in technology and a
slight overweighting in consumer nondurables and basic materials. As always, we
have been seeking what we perceive to be the most undervalued stocks in all
sectors.
We believe that, over time, our lower risk profile and relentless commitment to
value can deliver competitive returns while smoothing out short-term
fluctuations. Investors need to maintain a long-term perspective about their
objectives and their plans for achieving those goals. Stocks run in cycles--one
year, growth is in vogue, while the next year, value can be the most productive
style--and it's essentially impossible to make accurate predictions about which
type of stocks will have the hot hand at any given time. Therefore, we
recommend that investors remain as committed to their long-term strategy as we
do in providing long-term value.
As of March 31, 1999, the top five equity holdings in the Fund were AT&T Corp.
(3.0% of the portfolio's net assets), Johnson & Johnson (2.9%), SBC
Communications, Inc. (2.7%), Hewlett-Packard Co. (2.5%) and Abbott Labs
(2.5%)./1/
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Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return would have been lower.
/1/The composition of the Fund's holdings is subject to change.
Performance for the B Shares prior to the date the shares commenced operations
(1/2/96) is based on the performance of the A Shares as adjusted to reflect the
12b-1 fees and CDSC of B Shares.
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The BB&T Balanced Fund
Coming into October 1998, the start of our most recent six-month period, we had
what we considered to be a normal stock market correction. We felt that this
decline in stock prices created a tremendous opportunity. Consequently, during
the first few months of the period, we increased our equity exposure from 56
percent of the portfolio to 66 percent; this represented a significant shift to
stocks.
Later, in mid-March, we reduced our equity exposure back down to roughly 60
percent, and added to our fixed-income allocation. This move was based on the
fact that bond yields rose to higher levels, while stocks rallied strongly; the
overall situation made bonds somewhat more attractive, relative to stocks. We
also shifted some of our bond allocation from U.S. Treasuries to government
agency bonds and pass-through mortgage securities, which offered significantly
higher yields.
Typically, we avoid making changes to the Fund's asset allocation. But when we
saw the opportunity to take advantage of movement in the equity and fixed-
income markets, we acted.
The Market's Narrow Bias Continued
Overall, the Fund's performance was compromised by a continuing bias in the
stock market, which favored a handful of large-company growth issues. The market
really focused on this narrow group of companies, many of which had exceptional
valuations. In fact, only 17 stocks accounted for the total return for the S&P
500/1/ during the period.
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Average Annual Total Return+
As of 3/31/99
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Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
A Shares* 7/1/93 1.94% -2.49% 12.27% 10.76%
B Shares* 1/2/96 1.23% -2.48% 12.57% 11.02%
Trust Shares 7/1/93 6.81% 2.29% 13.55% 11.88%
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* Reflects 4.50% maximum sales charge
** Reflect the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
We believe that, in the long run, broad diversification has proven to be a time-
tested, constructive investment strategy. It is important to point out that the
type of companies in which we invest are organizations whose earnings have been
growing. We feel that their earnings growth is strong and dependable; these
stocks just were not the names that were favored in the most recent period.
As of March 31, 1999, approximately 60.6% of the portfolio's holdings was
invested in stocks, 34% in fixed-income holdings and 5.4% in cash and cash
equivalents./2/
The Fund's top five equity holdings were IBM Corp. (1.9% of the portfolio's net
holdings), Adobe Systems, Inc. (1.7%), Anheuser-Busch Co. (1.7%), J.P. Morgan
(1.6%) and Merck & Co. (1.5%). The Fund's fixed-income holdings were invested
in U.S. Treasury, government agency and mortgage-backed securities. The average
maturity of the fixed-income portfolio was approximately 5.9 years; the average
credit quality was AAA./2/
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Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return would have been lower.
/1/The S&P 500 Stock Index is an unmanaged index that consists of 500 stocks
chosen for market size, liquidity and group representation and is one of the
most widely used benchmarks of U.S. equity performers.
/2/The composition of the Fund's holdings is subject to change.
Performance for the B Shares prior to the date the shares commenced operations
(1/2/96) is based on the performance of the A Shares as adjusted to reflect the
12b-1 fees and CDSC of B Shares.
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The BB&T Capital Manager Funds
Conservative Growth Fund
Moderate Growth Fund
Growth Fund
The BB&T Capital Manager Funds--Conservative Growth Fund, Moderate Growth Fund
and Growth Fund--invest in underlying funds from the BB&T family. The Capital
Manager Funds seek varying degrees of capital appreciation and income, based on
each portfolio's specific and separate asset allocation mix.
The BB&T Capital Manager Growth Fund
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Average Annual Total Return+
As of 3/31/99
- --------------------------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year Inception
- --------------------------------------------------------------------------------
A Shares * 1/29/98 8.46% -1.05% 4.28%
Trust Shares 10/2/97 13.52% 3.68% 7.61%
- --------------------------------------------------------------------------------
The BB&T Capital Manager Moderate Growth Fund
- --------------------------------------------------------------------------------
Average Annual Total Return+
As of 3/31/99
- --------------------------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year Inception
- --------------------------------------------------------------------------------
A Shares * 1/29/98 5.51% -0.88% 4.07%
Trust Shares 10/2/97 10.67% 4.07% 7.51%
- --------------------------------------------------------------------------------
The BB&T Capital Manager Conservative Growth Fund
- --------------------------------------------------------------------------------
Average Annual Total Return+
As of 3/31/99
- --------------------------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year Inception
- --------------------------------------------------------------------------------
A Shares * 1/29/98 1.67% -0.87% 3.52%
Trust Shares 10/2/97 6.68% 4.39% 7.17%
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* Reflects 4.5% maximum sales charge
++ Aggregate Total Return
We Followed our Asset-Allocation Discipline
The investment strategy practiced by the Capital Manager Funds enabled us to
participate, in varying degrees, in the stock market's enthusiasm for large-cap
growth issues; the BB&T Large Company Growth Fund is an underlying portfolio
available to all of the Capital Manager Funds. Early in the period, we also
took advantage of opportunities in the small-cap/1/ and international
sectors/2/, by buying more shares of the BB&T Small Company Growth Fund and the
BB&T International Equity Fund.
Our investment discipline leads us to buy shares of specific sectors when they
are relatively cheap, and sell those shares that are relatively expensive. We
believe that, in the long run, this asset allocation strategy helps us reduce
volatility for our shareholders, while providing competitive returns.
Throughout the period, the Funds' relative performances matched our
expectations: With equity markets rebounding from their late-summer correction,
more aggressive portfolios were rewarded with greater returns. This is
consistent with our expectations for the Funds' respective asset allocation
mixes, which blend varying levels of stock, bond and money market fund shares.
As of March 31, 1999, each Fund's asset allocation mix was in line with its
respective target exposures. Despite continued volatility in many markets, we
believed it was prudent to take the "target" amount of risk as determined for
each Fund. Volatile market conditions often offer attractive opportunities.
With the Capital Manager Funds, shareholders can choose a risk/reward mix that
supports their individual time horizons and investment objectives.
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Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+ A portion of the Fund's fees have been voluntarily waived. If the fees had
not been waived, the Fund's total return for the period would have been
lower.
/1/Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure and, historically, their
stocks have experienced a greater degree of market volatility than stocks on
average.
/2/International investing involves increased risk and volatility.
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<PAGE>
The BB&T North Carolina Intermediate Tax-Free Fund/1/, /2/
In our last report, we noted that the Federal Reserve had cut the Fed Funds
rate by 25 basis points (0.25%) on September 29, and we predicted one or two
more rate cuts by the end of 1998. Our forecast was correct, as the Fed did
lower the rate twice, bringing the Fed Funds rate down to 4.75%.
Municipal Bonds Participated in the Broad Rally
These cuts in interest rates helped many types of bonds appreciate in price
(falling rates generally boost bond prices). Even though the municipal bond
market often lags behind in such price moves, the fall in rates was dramatic
enough to help the municipal market rapidly catch up. And with its neutral-to-
long average maturity--a productive position in an environment of lower interest
rates--the Fund realized generous price appreciation during the first half of
the period.
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Average Annual Total Return+
As of 3/31/99
- ----------------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
- ----------------------------------------------------------------------
A Shares* 10/16/92 -1.35% 2.55% 4.57% 4.13%
Trust Shares 10/16/92 0.70% 4.89% 5.16% 4.60%
======================================================================
* Reflects 2.00% maximum sales charge
++ Aggregate Total Return
On the flip side, a negative for municipal bond holders was the lower coupon
rate attached to many of the new issues. With lower rates available, municipal
issuers throughout North Carolina rushed to bring new bonds to market, and
these new issues offered historically low coupons. Overall, bond holders
received higher-than-normal price appreciation and lower-than-normal current
income during the fourth calendar quarter of 1998. In the first calendar
quarter of 1999, however, an unexpected rise in rates worked against the Fund.
Throughout the period, we retained a fairly high concentration of municipal
paper from the Charlotte/Mecklinburg area. However, we slowly pared down these
positions to diversify the portfolio across North Carolina. In other activity,
we moved into a significant position in hospital bonds. And we reduced our
exposure to North Carolina Municipal Power and Catawba Power issues, due to
concerns we had about credit quality.
As of March 31, 1999, the Fund's entire portfolio was invested in debt
instruments issued by government entities in the state of North Carolina.
Approximately 63.5% of our holdings were general obligation bonds, 35.5% were
revenue bonds and 1% was in cash and cash equivalents. The effective maturity
of our portfolio was 7.3 years, and the average credit quality was AAA./3/
- --------------------------------------------------------------------------------
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return for the period would have been lower.
/1/Investing in a regional fund may involve more risk, since the companies are
located in the same geographical area.
/2/The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
/3/The composition of the Fund's holdings is subject to change.
-10-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
The BB&T South Carolina Intermediate Tax-Free Fund/1/, /2/
In our last report, we noted that the Federal Reserve had cut the Fed Funds
rate by 25 basis points (0.25%) on September 29, and we predicted one or two
more rate cuts by the end of 1998. Our forecast was correct, as the Fed did
lower the rate twice, bringing the Fed Funds rate down to 4.75%.
Municipal Bonds Participated in the Broad Rally
These cuts in interest rates helped many types of bonds appreciate in price
(falling rates generally boost bond prices). Even though the municipal bond
market often lags behind in such price moves, the fall in rates was dramatic
enough to help the municipal market rapidly catch up. And with its neutral-to-
long average maturity--a productive position in an environment of lower interest
rates--the Fund realized generous price appreciation during the first half of
the period.
=============================================================
Average Annual Total Return+
As of 3/31/99
- -------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year Inception
- -------------------------------------------------------------
A Shares* 10/19/97 -1.56% 2.66% 4.27%
Trust Shares 10/19/97 0.48% 4.93% 5.84%
=============================================================
* Reflects 2.00% maximum sales charge
++ Aggregate Total Return
On the flip side, a negative for municipal bond holders was the lower coupon
rate attached to many new issues. With lower rates available, municipal issuers
throughout South Carolina rushed to bring new bonds to market, and these new
issues offered historically low coupons. Overall, bond holders received higher-
than-normal price appreciation and lower-than-normal current income during the
fourth calendar quarter of 1998. In the first calendar quarter of 1999, however,
an unexpected rise in rates worked against the Fund.
Another development during the period was the availability of more general
obligation bonds backed by the State of South Carolina. The State has been
working very hard to perform due diligence and provide full disclosure to
potential investors, in an effort to earn and justify a AAA rating for South
Carolina paper. At the same time, the size of new issues in the state remains a
significant problem; issues are generally so small, we either have to buy an
issue's entire maturity or pass on the opportunity.
As of March 31, 1999, the Fund's entire portfolio was invested in debt
instruments issued by government entities in the state of South Carolina.
Approximately 50.4% of our holdings was general obligations bonds, 49.4% was
revenue bonds and 0.2% was in cash and cash equivalents. The effective maturity
of our holdings was 8.33 years, and the average credit quality was AAA./3/
- --------------------------------------------------------------------------------
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return for the period would have been lower.
/1/Investing in a regional fund may involve more risk, since the companies are
located in the same geographical area.
/2/The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
/3/The composition of the Fund's holdings is subject to change.
-11-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
The BB&T Intermediate U.S. Government Bond Fund
The BB&T Short-Intermediate U.S. Government Income Fund
Beginning with this report, the Funds will each use a new index to compare
relative performance. The Intermediate U.S. Government Bond Fund's new
benchmark will be the Merrill Lynch 5-10-Year U.S. Government Index/1/. The
Short-Intermediate U.S. Government Index Fund's new benchmark will be the
Merrill Lynch 1-5-Year U.S. Government Index./2/ We believe these new indices
better represent the interest rate risk we are managing against, given each
fund's duration and maturity range.
For the six months ended March 31, 1999, the Intermediate U.S. Government Bond
Fund produced a total return of -1.58% (Trust Shares) compared to its
benchmarks the Merrill Lynch 5-10-Year U.S. Government Index and the Lehman
Brothers Intermediate Government Index which produced returns of -2.18% and -
0.02%, respectively.
For the six months ended March 31, 1999, the Short-Intermediate U.S. Government
Income Fund produced a total return of 0.42% (Trust Shares) compared to its
benchmarks the Merrill Lynch 1-5-Year U.S. Government Index and the Merrill
Lynch 1-3-Year Government Index which produced returns of 0.80% and 1.42%,
respectively.
The BB&T Intermediate
U.S. Government Bond Fund
=====================================================================
Average Annual Total Return+
As of 3/31/99
- ---------------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
- ---------------------------------------------------------------------
A Shares* 10/9/92 -6.15% 1.65% 5.70% 5.40%
B Shares* 1/2/96 -6.83% 1.64% 5.85% 5.63%
Trust Shares 10/9/92 -1.58% 6.79% 6.96% 6.42%
=====================================================================
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
The BB&T Short-Intermediate
U.S. Government Income Fund
========================================================================
Average Annual Total Return+
As of 3/31/99
- ------------------------------------------------------------------------
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
- ------------------------------------------------------------------------
A Shares*** 11/30/92 -1.76% 3.46% 5.04% 4.92%
Trust Shares 11/30/92 0.42% 5.84% 5.74% 5.49%
========================================================================
*** Reflects 2.00% maximum charge
Interest Rates Rose While Investors Embraced Risk
The resilient U.S. economy, which grew faster than expected during the six-
month period, drove interest rates higher--with rates in the short-to-
intermediate range rising more than 80 basis points (0.80%). At the same time,
we saw a "reverse flight to quality," with money rushing out of Treasuries and
into riskier securities as investors became more willing to accept risk.
- --------------------------------------------------------------------------------
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
+A portion of the Fund's fees have been voluntarily waived. If the fees had not
been waived, the Fund's total return for the period would have been lower.
/1/The Merrill Lynch 5-10-Year U.S. Government Index is an unmanaged index
comprised of U.S. Treasury and Agency Securities with a stated maturity of 5-10
years.
/2/The Merrill Lynch 1-5-Year U.S. Government Index is an unmanaged index
comprised of U.S. Treasury and Agency Securities with a stated maturity of 1-5
years.
Performance for the B shares prior to the date the shares commenced operations
(1/2/96) is based on the performance of the A shares as adjusted to reflect the
12b-1 fees and CDSC of B Shares.
-12-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Throughout the period, we worked to reduce our higher-than-average maturity,
unwinding many of our longer positions and adding more spread products--such as
mortgage-backed and agency securities. These actions have made the portfolios
less sensitive to interest-rate fluctuations and enabled us to capitalize on
some of the better values in these sectors.
As of March 31, 1999, the effective maturity of the Intermediate U.S.
Government Bond Fund was 7.0 years. Approximately 31.3% of the portfolio was
invested in securities issued by the U.S. Treasury, 16.6% in corporate debt,
37.2% in mortgage-backed securities and 14.9% in U.S. government agency
securities. The portfolio's average credit quality was AAA.*
As of March 31, 1999, the effective maturity of the Short-Intermediate U.S.
Government Income Fund was 3.5 years. Approximately 37% of the portfolio was
invested in securities issued by the U.S. Treasury, 44.7% in mortgage-backed
securities, 7.3% in corporate debt and 11% in U.S. government agency
securities. The portfolio's average credit quality was AAA.*
- --------------------------------------------------------------------------------
*The composition of the Funds' holdings is subject to change.
-13-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
The BB&T Prime Money Market Fund
The BB&T U.S. Treasury Money Market Fund
The Federal Reserve cut the Fed Funds rate--the benchmark rate banks charge one
another for overnight loans--on September 29, 1998, at the end of our last
reporting period. Since then, the Fed lowered the rate twice more. After the
third cut, the rate stood at 4.75%, down from its 5.50% level before the
September action. The series of cuts had a gradual impact on the yields we
generated in the money market funds. However, with inflation at remarkably low
levels, shareholders enjoyed "real returns" (total returns minus inflation)
that were attractive on a historical basis.
The BB&T Prime Money Market Fund responded to the Fed's action by lengthening
the portfolio's average maturity and increasing our holdings in variable rate
notes. As always, we remained committed to keeping the Fund's credit quality at
a high level. Consequently, we refrained from buying foreign securities during
the period; our credit analysts determined that such instruments might pose a
credit risk.
The BB&T U.S. Treasury Money Market Fund also took prudent action to secure
incremental yield. While the Fed lowered interest rates twice during the
period, the short end of the yield curve (where the Fund operates) became much
steeper. We took advantage of these circumstances by lengthening the
portfolio's average maturity--essentially, at the longer end of this segment of
the yield curve--to pick up additional yield for our shareholders. We also
reduced our position in repurchase agreements and increased our holdings in
Treasury securities.
As of March 31, 1999, approximately 80% of the Prime Money Market Fund's
portfolio was invested in commercial paper and 20% in variable rate notes. The
average maturity of the Fund's holdings was 57 days, and the average credit
quality was A1.*
As of March 31, 1999, approximately 57% of the U.S. Treasury Money Market
Fund's portfolio was invested in repurchase agreements and 43% in U.S. Treasury
securities. The average maturity of the Fund's holdings was 54 days, and the
average credit quality was AAA.*
- --------------------------------------------------------------------------------
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so that shares,
when redeemed, may be worth more or less than their original cost.
An investment in the Fund is not insured or guaranteed by the FDIC or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
*The composition of the Funds' holdings is subject to change.
-14-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
Continued
<TABLE>
<CAPTION>
Short-
Prime U.S. Treasury Intermediate Intermediate U.S.
Money Market Money Market U.S. Government Government
Fund Fund Income Fund Bond Fund
------------ ------------- --------------- -----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $61,903,553;
$135,532,792;
$201,326,473;
$248,962,498
respectively)........... $61,903,553 $135,532,792 $200,836,305 $250,194,832
Repurchase agreements,
at cost................. -- 176,487,921 8,342,681 10,578,982
----------- ------------ ------------ ------------
Total investments.... 61,903,553 312,020,713 209,178,986 260,773,814
Cash.................... 743 -- -- --
Interest and dividends
receivable.............. 129,893 1,082,819 1,837,928 1,954,478
Receivable for capital
shares issued........... -- 34,265 -- 4,921
Unamortized organization
costs................... 1,199 -- -- --
Receivable for expense
reimbursement........... 127 -- -- --
Prepaid expenses and
other................... 6,809 3,583 2,156 3,132
----------- ------------ ------------ ------------
Total Assets......... 62,042,324 313,141,380 211,019,070 262,736,345
----------- ------------ ------------ ------------
LIABILITIES:
Payable for return of
collateral received for
securities on loan...... -- -- 51,087,503 59,391,619
Dividends payable....... 252,467 1,118,327 702,373 828,787
Payable for capital
shares redeemed......... -- 75,778 -- --
Accrued expenses and
other payables:
Investment advisory
fees................... 11,284 80,221 65,832 79,201
Administration fees.... 428 6,487 3,236 5,388
Distribution fees--
Class A................ 612 9,363 931 744
Distribution fees--
Class B................ 1,070 1,635 -- 1,725
Other.................. 7,958 20,424 39,485 28,651
----------- ------------ ------------ ------------
Total Liabilities.... 273,819 1,312,235 51,899,360 60,336,115
----------- ------------ ------------ ------------
NET ASSETS:
Capital................. 61,764,585 311,828,899 159,571,974 199,287,279
Undistibuted
(distributions in excess
of) net investment
income.................. 4,811 246 57,106 45,613
Net unrealized
appreciation
(depreciation) on
investments............. -- -- (490,168) 1,232,334
Accumulated
undistributed net
realized gains (losses)
on investment
transactions............ (891) -- (19,202) 1,835,004
----------- ------------ ------------ ------------
Net Assets........... $61,768,505 $311,829,145 $159,119,710 $202,400,230
=========== ============ ============ ============
</TABLE>
Continued
-15-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
See notes to financial statements
<TABLE>
<CAPTION>
Short-
Prime U.S. Treasury Intermediate Intermediate U.S.
Money Market Money Market U.S. Government Government
Fund Fund Income Fund Bond Fund
------------ ------------- --------------- -----------------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $ 3,212,268 $ 46,011,718 $ 4,495,160 $ 3,496,224
Class B................ 1,341,595 1,956,035 -- 2,051,770
Trust Class............ 57,214,642 263,861,392 154,624,550 196,852,236
----------- ------------ ------------ ------------
Total.................. $61,768,505 $311,829,145 $159,119,710 $202,400,230
=========== ============ ============ ============
Outstanding units of
beneficial interest
(shares)
Class A................ 3,212,034 46,011,781 457,239 348,561
Class B................ 1,341,540 1,956,033 -- 205,097
Trust Class............ 57,215,822 263,861,178 15,715,219 19,596,653
----------- ------------ ------------ ------------
Total.................. 61,769,396 311,828,992 16,172,458 20,150,311
=========== ============ ============ ============
Net asset value
Class A--redemption
price per share........ $ 1.00 $ 1.00 $ 9.83 $ 10.03
Class B--offering price
per share.............. $ 1.00 $ 1.00 $ -- $ 10.00
Trust Class--offering
and redemption price
per share.............. $ 1.00 $ 1.00 $ 9.84 $ 10.05
----------- ------------ ------------ ------------
Maximum Sales Charge--
Class A................. N/A N/A 2.00% 4.50%
=========== ============ ============ ============
Maximum Offering Price
(100%/(100%-Maximum
Sales Charge) of net as-
set value adjusted to
nearest cent) per
share--Class A.......... $ 1.00 $ 1.00 $ 10.03 $ 10.50
=========== ============ ============ ============
Maximum Redemption Price
(100%/(100%-Maximum Re-
demption Charge) of net
asset value adjusted to
nearest cent) per
share--Class B*......... $ 1.00 $ 1.00 N/A $ 10.53
=========== ============ ============ ============
</TABLE>
- ----
* Redemption price per share (Class B) varies by length of time shares are
held.
See notes to financial statements
-16-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
Continued
<TABLE>
<CAPTION>
North Carolina South Carolina Growth and
Intermediate Intermediate Income Balanced
Tax-Free Bond Tax-Free Bond Stock Fund Fund
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $76,530,726;
$18,447,622;
$317,125,908;
$136,840,646 respective-
ly)..................... $79,218,037 $18,848,450 $444,209,011 $159,580,481
Interest and dividends
receivable.............. 1,201,390 227,651 682,793 961,528
Receivable for capital
shares issued........... -- -- 10,000 1,999
Receivable for invest-
ments sold.............. 2,356,675 -- 1,658,983 --
Unamortized organization
costs................... -- 6,311 -- --
Receivable for expense
reimbursement........... -- 5,586 -- --
Prepaid expenses and
other................... 1,050 136 9,071 7,574
----------- ----------- ------------ ------------
Total Assets......... 82,777,152 19,088,134 446,569,858 160,551,582
----------- ----------- ------------ ------------
LIABILITIES:
Dividends payable....... 282,371 62,659 599,848 379,768
Payable for capital
shares redeemed......... -- -- 31,912 700
Payable for investments
purchased............... 2,471,243 -- 147,800 --
Accrued expenses and
other payables:
Investment advisory
fees................... 35,023 4,835 197,647 68,476
Administration fees.... 1,649 130 12,411 4,411
Distribution fees--
Class A................ 1,606 93 8,634 4,546
Distribution fees--
Class B................ -- -- 31,963 16,167
Other.................. 19,368 9,023 69,513 37,010
----------- ----------- ------------ ------------
Total Liabilities.... 2,811,260 76,740 1,099,728 511,078
----------- ----------- ------------ ------------
NET ASSETS:
Capital................. 77,001,355 18,574,170 300,985,774 135,683,414
Undistibuted (distribu-
tions in excess of) net
investment income....... 28,295 1,008 -- --
Net unrealized apprecia-
tion (depreciation) on
investments............. 2,687,311 400,828 127,083,103 22,739,835
Accumulated
undistributed net
realized gains (losses)
on investment
transactions............ 248,931 35,388 17,401,253 1,617,255
----------- ----------- ------------ ------------
Net Assets........... $79,965,892 $19,011,394 $445,470,130 $160,040,504
=========== =========== ============ ============
</TABLE>
Continued
-17-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
See notes to financial statements
<TABLE>
<CAPTION>
North Carolina South Carolina Growth and
Intermediate Intermediate Income Balanced
Tax-Free Bond Tax-Free Bond Stock Fund Fund
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $12,670,055 $ 813,345 $ 40,005,213 $ 20,957,184
Class B................ -- -- 37,335,209 19,338,085
Trust Class............ 67,295,837 18,198,049 368,129,708 119,745,235
----------- ----------- ------------ ------------
Total................ $79,965,892 $19,011,394 $445,470,130 $160,040,504
=========== =========== ============ ============
Outstanding units of
beneficial interest
(shares)
Class A................ 1,228,534 79,451 2,041,341 1,510,336
Class B................ -- -- 1,912,726 1,401,160
Trust Class............ 6,523,816 1,788,323 18,746,688 8,649,203
----------- ----------- ------------ ------------
Total................ 7,752,350 1,867,774 22,700,755 11,560,699
=========== =========== ============ ============
Net asset value
Class A--redemption
price per share........ $ 10.31 $ 10.24 $ 19.60 $ 13.88
Class B--offering
price per share........ $ -- $ -- $ 19.52 $ 13.80
Trust Class--offering
and redemption price
per share.............. $ 10.32 $ 10.18 $ 19.64 $ 13.84
=========== =========== ============ ============
Maximum Sales Charge--
Class A................. 2.00% 2.00% 4.50% 4.50%
=========== =========== ============ ============
Maximum Offering Price
(100%/(100%-Maximum
Sales Charge) of net as-
set value adjusted to
nearest cent) per
share--Class A.......... $ 10.52 $ 10.45 $ 20.52 $ 14.53
=========== =========== ============ ============
Maximum Redemption Price
(100%/(100%-Maximum
Redemption Charge) of
net asset value adjusted
to nearest cent) per
share--Class B*......... $ N/A $ N/A $ 20.55 $ 14.53
=========== =========== ============ ============
</TABLE>
- ----
* Redemption price per share (Class B) varies by length of time shares are
held.
See notes to financial statements
-18-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
Continued
<TABLE>
<CAPTION>
Large Company Small Company International Capital Manager
Growth Growth Equity Conservative
Fund Fund Fund Growth Fund
------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $54,980,642;
$86,522,487;
$81,153,153; $0 respec-
tively)................. $79,367,360 $116,953,681 $89,302,401 $ --
Investments from invest-
ment company shares, at
value (Cost
$32,371,137)............ -- -- -- 32,640,153
Repurchase agreements,
at cost................. -- 3,642,640 -- --
----------- ------------ ----------- -----------
Total investments.... 79,367,360 120,596,321 89,302,401 32,640,153
Cash.................... -- 14,934 -- --
Interest and dividends
receivable.............. 55,904 -- 262,886 92,010
Receivable for invest-
ments sold.............. -- 1,396,526 651,754 --
Receivable for closed
currency contracts...... -- -- 35,446 --
Tax reclaim receivable.. -- -- 49,440 --
Unamortized organization
costs................... 6,161 -- -- 3,573
Foreign currency (Cost
$15,513)................ -- -- 15,499 --
Prepaid expenses and
other................... 10,179 9,065 12,751 119
----------- ------------ ----------- -----------
Total Assets......... 79,439,604 122,016,846 90,330,177 32,735,855
----------- ------------ ----------- -----------
LIABILITIES:
Payable for return of
collateral received for
securities on loan...... -- 6,642,202 -- --
Dividends payable....... -- -- -- 229,485
Payable for capital
shares redeemed......... -- 25,307 3,907 --
Payable for investments
purchased............... -- 3,812,950 686,132 --
Net payable for varia-
tion margin on futures
contracts............... -- 106,400 -- --
Unrealized foreign cur-
rency losses............ -- -- 7,249 --
Accrued expenses and
other payables:
Investment advisory
fees................... 33,227 90,382 74,211 1,365
Administration fees.... 2,159 2,972 2,415 222
Distribution fees--
Class A................ 771 2,399 332 50
Distribution fees--
Class B................ 6,557 8,498 1,834 --
Other.................. 17,572 28,568 17,101 8,438
----------- ------------ ----------- -----------
Total Liabilities.... 60,286 10,719,678 793,181 239,560
----------- ------------ ----------- -----------
NET ASSETS:
Capital................. 54,232,056 83,882,460 82,914,197 31,634,298
Undistibuted (distribu-
tions in excess of) net
investment income....... (29,791) (532,481) (135,239) (2,004)
Net unrealized apprecia-
tion (depreciation) on
investments, foreign
currency and futures
transactions............ 24,386,718 30,300,569 8,139,429 269,016
Accumulated undistrib-
uted net realized gains
(losses) on investment
transactions............ 790,335 (2,353,380) (1,381,391) 594,985
----------- ------------ ----------- -----------
Net Assets........... $79,379,318 $111,297,168 $89,536,996 $32,496,295
=========== ============ =========== ===========
</TABLE>
Continued
-19-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Large Company Small Company International Capital Manager
Growth Growth Equity Conservative
Fund Fund Fund Growth Fund
------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $ 4,004,791 $ 10,708,821 $ 1,619,392 $ 473,498
Class B................ 8,179,889 10,509,336 2,198,332 5,456
Trust Class............ 67,194,638 90,079,011 85,719,272 32,017,341
----------- ------------ ----------- -----------
Total................ $79,379,318 $111,297,168 $89,536,996 $32,496,295
=========== ============ =========== ===========
Outstanding units of
beneficial interest
(shares)
Class A................ 338,494 483,052 142,030 45,641
Class B................ 696,586 486,102 194,282 526
Trust Class............ 5,662,093 4,014,569 7,478,137 3,073,982
----------- ------------ ----------- -----------
Total................ 6,697,173 4,983,723 7,814,449 3,120,149
=========== ============ =========== ===========
Net asset value
Class A--redemption
price per share........ $ 11.83 $ 22.17 $ 11.40 $ 10.37
Class B--offering
price per share........ $ 11.74 $ 21.62 $ 11.32 $ 10.38
Trust Class--offering
and redemption price
per share.............. $ 11.87 $ 22.44 $ 11.46 $ 10.42
=========== ============ =========== ===========
Maximum Sales Charge--
Class A................. 4.50% 4.50% 4.50% 4.50%
=========== ============ =========== ===========
Maximum Offering Price
(100%/(100%-Maximum
Sales Charge) of net as-
set value adjusted to
nearest cent) per
share--Class A.......... $ 12.39 $ 23.21 $ 11.94 $ 10.86
=========== ============ =========== ===========
Maximum Redemption Price
(100%/(100%-Maximum
Redemption Charge) of
net asset value adjusted
to nearest cent) per
share--Class B*......... $ 12.36 $ 22.76 $ 11.92 $ 10.93
=========== ============ =========== ===========
</TABLE>
- ----
* Redemption price per share (Class B) varies by length of time shares are
held.
See notes to financial statements
-20-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Assets and Liabilities
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Capital Manager Capital
Moderate Manager
Growth Fund Growth Fund
--------------- -----------
<S> <C> <C>
ASSETS:
Investments from investment company shares, at
value (Cost $25,827,367; $23,755,324,
respectively)..................................... $26,300,367 $24,271,395
Interest and dividends receivable................. 54,787 39,259
Unamortized organization costs.................... 3,573 3,573
Prepaid expenses and other........................ 116 584
----------- -----------
Total Assets................................... 26,358,843 24,314,811
----------- -----------
LIABILITIES:
Dividends payable................................. 119,368 76,538
Accrued expenses and other payables:
Investment advisory fees......................... 1,110 1,024
Administration fees.............................. 180 166
Distribution fees--Class A....................... 342 178
Distribution fees--Class B....................... -- --
Other............................................ 9,306 8,931
----------- -----------
Total Liabilities.............................. 130,306 86,837
----------- -----------
NET ASSETS:
Capital........................................... 25,118,077 23,001,682
Undistibuted (distributions in excess of) net
investment income................................. (2,004) (2,004)
Net unrealized appreciation (depreciation) on
investments....................................... 473,000 516,071
Accumulated undistributed net realized gains
(losses) on investment transactions............... 639,464 712,225
----------- -----------
Net Assets....................................... $26,228,537 $24,227,974
=========== ===========
Net Assets
Class A.......................................... $ 1,646,502 $ 863,774
Class B.......................................... 84,914 4,955
Trust Class...................................... 24,497,121 23,359,245
----------- -----------
Total.......................................... $26,228,537 $24,227,974
=========== ===========
Outstanding units of beneficial interest (shares)
Class A.......................................... 156,783 81,779
Class B.......................................... 8,091 469
Trust Class...................................... 2,331,851 2,213,205
----------- -----------
Total.......................................... 2,496,725 2,295,453
=========== ===========
Net asset value
Class A--redemption price per share.............. $ 10.50 $ 10.56
Class B--offering price per share................ $ 10.50 $ 10.56
Trust Class--offering and redemption price per
share............................................ $ 10.51 $ 10.55
=========== ===========
Maximum Sales Charge--Class A..................... 4.50% 4.50%
=========== ===========
Maximum Offering Price (100%/(100%-Maximum Sales
Charge) of net asset value adjusted to nearest
cent) per share--Class A.......................... $ 10.99 $ 11.06
=========== ===========
Maximum Redemption Price (100%/(100%-Maximum
Redemption Charge) of net asset value adjusted to
nearest cent) per share--Class B*................. $ 11.05 $ 11.12
=========== ===========
</TABLE>
- ----
* Redemption price per share (Class B) varies by length of time shares are
held.
See notes to financial statements
-21-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Short-
Prime U.S. Treasury Intermediate Intermediate U.S.
Money Market Money Market U.S. Government Government
Fund Fund Income Fund Bond Fund
------------ ------------- --------------- -----------------
For the For the For the For the
period ended period ended period ended period ended
March 31, March 31, March 31, March 31,
1999 1999 1999 1999
------------ ------------- --------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $1,373,252 $7,471,925 $4,727,399 $ 5,455,867
Dividend income.......... -- -- 35,323 49,739
Securities lending
income................... -- 1,268 45,394 53,487
---------- ---------- ---------- ------------
Total Income.......... 1,373,252 7,473,193 4,808,116 5,559,093
---------- ---------- ---------- ------------
EXPENSES:
Investment advisory
fees..................... 106,656 617,845 469,364 553,117
Administration fees...... 53,329 308,923 156,455 184,374
Distribution fees--Class
A........................ 3,762 53,925 11,026 10,428
Distribution fees--Class
B........................ 4,241 8,904 -- 8,215
Custodian fees........... 8,210 8,637 5,734 5,745
Accounting fees.......... 25,685 56,967 33,268 41,165
Organization costs....... 1,152 -- -- --
Trustees' fees and
expenses................. 503 4,938 2,352 3,118
Transfer agent fees...... 23,799 54,156 22,288 37,026
Registration and filing
fees..................... 1,646 5,326 3,330 2,180
Printing costs........... 5,833 31,189 18,233 20,072
Other.................... 4,610 42,666 23,507 16,297
---------- ---------- ---------- ------------
Gross Expenses........ 239,426 1,193,476 745,557 881,737
Expenses waived....... (93,182) (231,051) (122,854) (97,401)
Expenses voluntarily
reimbursed............ (127) -- -- --
---------- ---------- ---------- ------------
Total Expenses........ 146,117 962,425 622,703 784,336
---------- ---------- ---------- ------------
Net Investment Income.... 1,227,135 6,510,768 4,185,413 4,774,757
---------- ---------- ---------- ------------
REALIZED/UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains
(losses) from investment
transactions............. 3,555 -- 1,593,382 3,673,107
Net change in unrealized
appreciation/depreciation
from investments......... -- -- (5,183,303) (11,463,968)
---------- ---------- ---------- ------------
Net realized/unrealized
gains (losses) on
investments.............. 3,555 -- (3,589,921) (7,790,861)
---------- ---------- ---------- ------------
Change in net assets
resulting from
operations............... $1,230,690 $6,510,768 $ 595,492 $ (3,016,104)
========== ========== ========== ============
</TABLE>
See notes to financial statements
-22-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
North Carolina South Carolina Growth and
Intermediate Intermediate Income Balanced
Tax-Free Bond Tax-Free Bond Stock Fund Fund
-------------- -------------- ------------ ------------
For the For the For the For the
period ended period ended period ended period ended
March 31, March 31, March 31, March 31,
1999 1999 1999 1999
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $ 2,035,440 $ 427,411 $ 225,553 $1,619,417
Dividend income.......... 17,720 7,093 4,925,035 1,128,251
----------- --------- ----------- ----------
Total Income.......... 2,053,160 434,504 5,150,588 2,747,668
----------- --------- ----------- ----------
EXPENSES:
Investment advisory
fees..................... 253,250 55,734 1,726,865 583,074
Administration fees...... 84,417 18,578 466,698 157,589
Distribution fees--Class
A........................ 31,081 1,181 105,116 55,936
Distribution fees--Class
B........................ -- -- 184,161 88,382
Custodian fees........... 5,073 4,783 6,058 6,016
Accounting fees.......... 21,329 14,874 82,222 37,635
Organization costs....... -- 6,332 -- --
Trustees' fees and
expenses................. 1,309 231 6,525 2,289
Transfer agent fees...... 21,315 16,304 156,803 75,670
Registration and filing
fees..................... 10 1,627 11,898 5,349
Printing costs........... 9,935 2,533 53,565 18,084
Other.................... 12,300 2,627 39,482 21,245
----------- --------- ----------- ----------
Gross Expenses........ 440,019 124,804 2,839,393 1,051,269
Expenses waived....... (85,070) (42,627) (612,693) (217,073)
Expenses voluntarily
reimbursed............ -- (5,586) -- --
----------- --------- ----------- ----------
Total Expenses........ 354,949 76,591 2,226,700 834,196
----------- --------- ----------- ----------
Net Investment Income.... 1,698,211 357,913 2,923,888 1,913,472
----------- --------- ----------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains
(losses) from investment
transactions............. 316,617 70,072 18,312,667 4,605,542
Net change in unrealized
appreciation/depreciation
from investments......... (1,437,364) (350,785) 25,730,410 3,245,795
----------- --------- ----------- ----------
Net realized/unrealized
gains (losses) on
investments.............. (1,120,747) (280,713) 44,043,077 7,851,337
----------- --------- ----------- ----------
Change in net assets
resulting from
operations............... $ 577,464 $ 77,200 $46,966,965 $9,764,809
=========== ========= =========== ==========
</TABLE>
See notes to financial statements
-23-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Large Company Small Company International Capital Manager
Growth Growth Equity Conservative Growth
Fund Fund Fund Fund
------------- ------------- ------------- -------------------
For the For the For the For the
period ended period ended period ended period ended
March 31, March 31, March 31, March 31,
1999 1999 1999 1999
------------- ------------- ------------- -------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $ 174 $ 264,505 $ -- $ --
Dividend income.......... 367,381 13,232 598,700 --
Securities lending
income................... -- 36,641 -- --
Dividend from investment
company shares........... -- -- -- 520,409
Foreign tax withholding.. -- -- (66,755) --
----------- ----------- ----------- ----------
Total Income.......... 367,555 314,378 531,945 520,409
----------- ----------- ----------- ----------
EXPENSES:
Investment advisory
fees..................... 261,830 495,946 419,940 35,739
Administration fees...... 70,766 99,190 83,989 7,148
Distribution fees--Class
A........................ 6,730 26,682 3,684 450
Distribution fees--Class
B........................ 30,070 47,667 10,674 2
Custodian fees........... 6,793 32,412 37,082 4,425
Accounting fees.......... 27,381 29,145 37,826 11,318
Organization costs....... 6,119 -- -- 3,564
Trustees' fees and
expenses................. 907 1,330 1,292 326
Transfer agent fees...... 50,822 87,434 46,176 16,297
Registration and filing
fees..................... 3,476 4,820 6,170 3,204
Printing costs........... 8,359 18,579 10,499 3,097
Other.................... 5,847 11,400 7,186 3,252
----------- ----------- ----------- ----------
Gross Expenses........ 479,100 854,605 664,518 88,822
Expenses waived....... (88,283) (13,341) (1,842) (28,818)
Expenses voluntarily
reimbursed............ -- -- -- --
----------- ----------- ----------- ----------
Total Expenses........ 390,817 841,264 662,676 60,004
----------- ----------- ----------- ----------
Net Investment Income.... (23,262) (526,886) (130,731) 460,405
----------- ----------- ----------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains
(losses) from investment
transactions, foreign
currency and futures
transactions............. 854,714 1,536 (1,381,392) --
Net realized gains from
sales of investment
company shares........... -- -- -- 148,623
Net realized gains
distributions from
investment company
shares................... -- -- -- 517,386
Net change in unrealized
appreciation/depreciation
from investments, foreign
currency and futures
transactions............. 17,060,338 25,116,826 14,468,777 --
Net change in unrealized
appreciation/depreciation
from investments during
the six months........... -- -- -- 473,526
----------- ----------- ----------- ----------
Net realized/unrealized
gains (losses) on
investments ............. 17,915,052 25,118,362 13,087,385 1,139,535
----------- ----------- ----------- ----------
Change in net assets
resulting from
operations............... $17,891,790 $24,591,476 $12,956,654 $1,599,940
=========== =========== =========== ==========
</TABLE>
See notes to financial statements
-24-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Capital Manager
Moderate Growth Capital Manager
Fund Growth Fund
--------------- ---------------
For the For the
period ended period ended
March 31, March 31,
1999 1999
--------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend income from affiliates................ $ 328,898 $ 221,062
---------- ----------
Total Income................................ 328,898 221,062
---------- ----------
EXPENSES:
Investment advisory fees....................... 30,988 29,350
Administration fees............................ 6,198 5,870
Distribution fees--Class A..................... 3,706 1,526
Distribution fees--Class B..................... 41 3
Custodian fees................................. 4,656 4,408
Accounting fees................................ 11,318 11,318
Organization costs............................. 3,564 3,564
Trustees' fees and expenses.................... 326 315
Transfer agent fees............................ 16,244 16,286
Registration and filing fees................... 3,252 3,325
Printing costs................................. 3,041 2,904
Other.......................................... 3,809 3,101
---------- ----------
Gross Expenses.............................. 87,143 81,970
Expenses waived............................. (26,684) (24,246)
Expenses voluntarily reimbursed............. -- --
---------- ----------
Total Expenses.............................. 60,459 57,724
---------- ----------
Net Investment Income.......................... 268,439 163,338
---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) ON INVEST-
MENTS:
Net realized gains from sales of investment
company shares................................. 107,950 125,237
Net realized gains distributions from
investment company shares...................... 616,231 668,967
Net change in unrealized
appreciation/depreciation from investments
during the six months.......................... 1,415,698 1,986,787
---------- ----------
Net realized/unrealized gains (losses) on
investments.................................... 2,139,879 2,780,991
---------- ----------
Change in net assets resulting from
operations..................................... $2,408,318 $2,944,329
---------- ----------
</TABLE>
See notes to financial statements
-25-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. Treasury
Prime Money Market Fund Money Market Fund
--------------------------- ----------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 (a)(b) 1999 1998
------------ ------------- ------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.. $ 1,227,135 $ 2,630,730 $ 6,510,768 $ 14,034,307
Net realized gains
(losses) from
investment
transactions........... 3,555 (4,446) -- --
------------ ------------- ------------- -------------
Change in net assets
resulting from
operations.............. 1,230,690 2,626,284 6,510,768 14,034,307
------------ ------------- ------------- -------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................. (66,186) (57,024) (863,506) (1,750,905)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income................. (15,308) (697) (28,913) (48,142)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................. (1,145,640) (2,573,009) (5,618,349) (12,235,260)
------------ ------------- ------------- -------------
Change in net assets
resulting from
shareholder
distributions........... (1,227,134) (2,630,730) (6,510,768) (14,034,307)
------------ ------------- ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 88,424,725 200,254,241 288,365,747 487,187,835
Dividends reinvested... 67,536 48,575 2,166,449 4,337,585
Cost of shares
redeemed............... (68,059,158) (158,966,524) (257,232,147) (513,879,583)
------------ ------------- ------------- -------------
Change in net assets
from capital
transactions............ 20,433,103 41,336,292 33,300,049 (22,354,163)
------------ ------------- ------------- -------------
Change in net assets.... 20,436,659 41,331,846 33,300,049 (22,354,163)
NET ASSETS:
Beginning of period.... 41,331,846 -- 278,529,096 300,883,259
------------ ------------- ------------- -------------
End of period.......... $ 61,768,505 $ 41,331,846 $ 311,829,145 $ 278,529,096
============ ============= ============= =============
SHARE TRANSACTIONS:
Issued................. 88,424,725 200,254,242 288,365,747 487,187,834
Reinvested............. 67,536 48,575 2,166,449 4,337,585
Redeemed............... (68,059,158) (158,966,524) (257,232,147) (513,879,582)
------------ ------------- ------------- -------------
Change in shares........ 20,433,103 41,336,293 33,300,049 (22,354,163)
============ ============= ============= =============
</TABLE>
- ----
(a) The Fund commenced operations on October 1, 1997.
(b) The Fund commenced offering Class B Shares on September 2, 1998.
See notes to financial statements
-26-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Short-
Intermediate Intermediate U.S.
U.S. Government Government
Income Fund Bond Fund
---------------------------- ----------------------------
For the For the
For the year ended For the year ended
period ended September 30, period ended September 30,
March 31, 1999 1998 March 31, 1999 1998
-------------- ------------- -------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ 4,185,413 $ 8,305,561 $ 4,774,757 $ 9,686,818
Net realized gains (loss-
es) from investment
transactions............. 1,593,382 (29,919) 3,673,107 2,329,818
Net change in unrealized
appreciation/depreciation
from investments......... (5,183,303) 4,916,929 (11,463,968) 11,098,366
------------ ------------ ------------ ------------
Change in net assets re-
sulting from operations... 595,492 13,192,571 (3,016,104) 23,115,002
------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment in-
come..................... (115,473) (236,423) (102,783) (218,025)
In excess of net invest-
ment income.............. -- -- -- (217)
From net realized gains
from investment transac-
tions.................... -- -- (45,700) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment in-
come..................... -- -- (34,657) (38,128)
In excess of net invest-
ment income.............. -- -- -- (25)
From net realized gains
from investment transac-
tions.................... -- -- (15,100) --
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment in-
come..................... (4,169,940) (8,069,138) (4,637,317) (9,522,727)
In excess of net invest-
ment income.............. -- -- -- (9,865)
From net realized gains
from investment transac-
tions.................... -- -- (1,898,850) --
------------ ------------ ------------ ------------
Change in net assets re-
sulting from shareholder
distributions............. (4,285,413) (8,305,561) (6,734,407) (9,788,987)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares is-
sued..................... 19,852,695 73,721,908 47,492,049 77,526,507
Dividends reinvested..... 265,655 545,311 1,944,084 3,081,065
Cost of shares redeemed.. (19,113,794) (26,023,271) (29,417,813) (49,180,401)
------------ ------------ ------------ ------------
Change in net assets from
capital transactions...... 1,004,556 48,243,948 20,018,320 31,427,171
------------ ------------ ------------ ------------
Change in net assets...... (2,685,365) 53,130,958 10,267,809 44,753,186
NET ASSETS:
Beginning of period...... 161,805,075 108,674,117 192,132,421 147,379,235
------------ ------------ ------------ ------------
End of period............ $159,119,710 $161,805,075 $202,400,230 $192,132,421
============ ============ ============ ============
SHARE TRANSACTIONS:
Issued................... 2,004,734 7,530,796 4,662,460 7,760,028
Reinvested............... 26,687 55,526 187,944 306,797
Redeemed................. (1,923,006) (2,646,733) (2,847,793) (4,876,621)
------------ ------------ ------------ ------------
Change in shares.......... 108,415 4,939,589 2,002,611 3,190,204
============ ============ ============ ============
</TABLE>
See notes to financial statements
-27-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
North Carolina South Carolina
Intermediate Tax-Free Bond Intermediate Tax-Free Bond
---------------------------- ----------------------------
For the For the
For the year ended For the year ended
period ended September 30, period ended September 30,
March 31, 1999 1998 March 31, 1999 1998 (a)
-------------- ------------- -------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ 1,698,211 $ 3,470,478 $ 357,913 $ 706,343
Net realized gains (loss-
es) from investment
transactions............. 316,617 618,990 70,072 114,696
Net change in unrealized
appreciation/depreciation
from investments......... (1,437,364) 1,532,666 (350,785) 712,599
------------ ------------ ----------- -----------
Change in net assets re-
sulting from operations... 577,464 5,622,134 77,200 1,533,638
------------ ------------ ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment in-
come..................... (242,362) (402,433) (8,835) (7,750)
From net realized gains
from investment transac-
tions.................... (85,491) -- (2,388) --
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment in-
come..................... (1,455,850) (3,068,045) (349,078) (698,593)
From net realized gains
from investment transac-
tions.................... (507,030) -- (142,552) (4,440)
------------ ------------ ----------- -----------
Change in net assets re-
sulting from shareholder
distributions............. (2,290,733) (3,470,478) (502,853) (710,783)
------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares is-
sued..................... 7,311,356 35,765,794 2,072,363 25,741,437
Dividends reinvested..... 268,705 364,565 6,700 9,639
Cost of shares redeemed.. (10,946,971) (23,775,790) (1,180,980) (8,034,967)
------------ ------------ ----------- -----------
Change in net assets from
capital transactions...... (3,366,910) 12,354,569 898,083 17,716,109
------------ ------------ ----------- -----------
Change in net assets...... (5,080,179) 14,506,225 472,430 18,538,964
NET ASSETS:
Beginning of period...... 85,046,071 70,539,846 18,538,964 --
------------ ------------ ----------- -----------
End of period............ $ 79,965,892 $ 85,046,071 $19,011,394 $18,538,964
============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued................... 699,924 3,473,673 201,378 2,562,664
Reinvested............... 25,726 35,317 646 951
Redeemed................. (1,052,847) (2,295,775) (114,815) (783,050)
------------ ------------ ----------- -----------
Change in shares.......... (327,197) 1,213,215 87,209 1,780,565
============ ============ =========== ===========
</TABLE>
- ----
(a) For the period from October 20, 1997 (commencement of operations) through
September 30, 1998.
See notes to financial statements
-28-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Growth and Income Balanced
Stock Fund Fund
---------------------------- ----------------------------
For the For the
For the year ended For the year ended
period ended September 30, period ended September 30,
March 31, 1999 1998 March 31, 1999 1998
-------------- ------------- -------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ 2,923,888 $ 5,652,299 $ 1,913,472 $ 3,997,983
Net realized gains (loss-
es) from investment
transactions............. 18,312,667 21,641,916 4,605,542 5,078,608
Net change in unrealized
appreciation/depreciation
from investments......... 25,730,410 (29,688,415) 3,245,795 (685,286)
------------ ------------ ------------ ------------
Change in net assets re-
sulting from operations... 46,966,965 (2,394,200) 9,764,809 8,391,305
------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment in-
come..................... (231,195) (469,768) (259,967) (610,172)
From net realized gains
from investment transac-
tions.................... (1,704,986) (2,344,787) (1,111,931) (488,936)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment in-
come..................... (79,871) (125,661) (146,080) (227,269)
From net realized gains
from investment transac-
tions.................... (1,455,060) (1,273,210) (856,840) (195,167)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment in-
come..................... (2,612,822) (5,052,761) (1,523,017) (3,171,488)
From net realized gains
from investment transac-
tions.................... (15,578,825) (20,939,456) (5,781,527) (2,542,690)
------------ ------------ ------------ ------------
Change in net assets re-
sulting from shareholder
distributions............. (21,662,759) (30,205,643) (9,679,362) (7,235,722)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares is-
sued..................... 46,776,226 164,375,541 17,381,495 53,945,233
Dividends reinvested..... 11,183,618 15,611,037 7,444,564 5,439,685
Cost of shares redeemed.. (58,679,003) (86,854,516) (10,943,838) (26,585,285)
------------ ------------ ------------ ------------
Change in net assets from
capital transactions...... (719,159) 93,132,062 13,882,221 32,799,633
------------ ------------ ------------ ------------
Change in net assets...... 24,585,047 60,532,219 13,967,668 33,955,216
NET ASSETS:
Beginning of period...... 420,885,083 360,352,864 146,072,836 112,117,620
------------ ------------ ------------ ------------
End of period............ $445,470,130 $420,885,083 $160,040,504 $146,072,836
============ ============ ============ ============
SHARE TRANSACTIONS:
Issued................... 2,339,905 8,269,791 1,221,886 3,856,203
Reinvested............... 552,184 807,285 520,039 394,306
Redeemed................. (2,930,138) (4,346,118) (769,729) (1,905,688)
------------ ------------ ------------ ------------
Change in shares.......... (38,049) 4,730,958 972,196 2,344,821
============ ============ ============ ============
</TABLE>
See notes to financial statements
-29-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Large Company Small Company
Growth Fund Growth Fund
---------------------------- ----------------------------
For the For the
For the year ended For the year ended
period ended September 30, period ended September 30,
March 31, 1999 1998 (a) March 31, 1999 1998
-------------- ------------- -------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ (23,262) $ 190,518 $ (526,886) $ (1,111,591)
Net realized gains
(losses) from investment
and futures
transactions............. 854,714 4,017,265 1,536 (671,786)
Net change in unrealized
appreciation/depreciation
from investments and
futures.................. 17,060,338 (5,752,976) 25,116,826 (21,630,763)
----------- ------------ ------------ ------------
Change in net assets re-
sulting from operations... 17,891,790 (1,545,193) 24,591,476 (23,414,140)
----------- ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment in-
come..................... -- (1,120) -- --
From net realized gains
from investment transac-
tions.................... (124,106) (1,053) -- --
In excess of net realized
gains from investment
transactions............. -- -- -- (166,425)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment in-
come..................... -- (382) -- --
From net realized gains
from investment transac-
tions.................... (279,203) (2,298) -- --
In excess of net realized
gains from investment
transactions............. -- -- -- (128,891)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment in-
come..................... (24,125) (189,016) -- --
From net realized gains
from investment transac-
tions.................... (3,203,980) (471,004) -- --
In excess of net realized
gains from investment
transactions............. -- -- -- (933,116)
----------- ------------ ------------ ------------
Change in net assets re-
sulting from shareholder
distributions............. (3,631,414) (664,873) -- (1,228,432)
----------- ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares is-
sued..................... 15,746,442 95,063,688 47,948,065 90,705,910
Dividends reinvested..... 460,407 13,188 -- 743,235
Cost of shares redeemed.. (7,985,711) (35,969,006) (44,487,414) (63,766,251)
----------- ------------ ------------ ------------
Change in net assets from
capital transactions...... 8,221,138 59,107,870 3,460,651 27,682,894
----------- ------------ ------------ ------------
Change in net assets...... 22,481,514 56,897,804 28,052,127 3,040,322
NET ASSETS:
Beginning of period...... 56,897,804 -- 83,245,041 80,204,719
----------- ------------ ------------ ------------
End of period............ $79,379,318 $ 56,897,804 $111,297,168 $ 83,245,041
=========== ============ ============ ============
SHARE TRANSACTIONS:
Issued................... 1,454,892 9,532,115 2,495,828 4,350,347
Reinvested............... 43,579 1,324 -- 35,920
Redeemed................. (711,345) (3,623,392) (2,239,136) (3,081,871)
----------- ------------ ------------ ------------
Change in shares.......... 787,126 5,910,047 256,692 1,304,396
=========== ============ ============ ============
</TABLE>
- ----
(a) For the period from October 3, 1997 (commencement of operations) through
September 30, 1998.
See notes to financial statements
-30-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Capital Manager
International Conservative
Equity Fund Growth Fund
---------------------------- --------------------------------
For the For the
For the year ended For the year ended
period ended September 30, period ended September 30,
March 31, 1999 1998 March 31, 1999 (a) 1998 (a)
-------------- ------------- ------------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ (130,731) $ 333,237 $ 460,405 $ 706,230
Net realized gains
(losses) from investment
and foreign currency
transactions............. (1,381,392) 1,651,855 666,009 369,305
Net change in unrealized
appreciation/depreciation
from investments......... 14,468,777 (9,954,036) 473,526 (204,510)
----------- ----------- ----------- -----------
Change in net assets re-
sulting from operations... 12,956,654 (7,968,944) 1,599,940 871,025
----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment in-
come..................... (4,037) (3,734) (4,952) (1,053)
In excess of net invest-
ment income.............. -- (1,175) -- --
From net realized gains
from investment transac-
tions.................... (22,804) (18,552) (2,027) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment in-
come..................... (2,136) -- (39) --
In excess of net invest-
ment income.............. -- (2,052) -- --
From net realized gains
from investment transac-
tions.................... (34,567) (29,878) -- --
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment in-
come..................... (273,843) (342,214) (496,422) (705,177)
In excess of net invest-
ment income.............. -- (17,843) -- --
From net realized gains
from investment transac-
tions.................... (1,288,928) (1,229,598) (400,054) --
----------- ----------- ----------- -----------
Change in net assets re-
sulting from shareholder
distributions............. (1,626,315) (1,645,046) (903,494) (706,230)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares is-
sued..................... 9,758,490 37,976,546 8,185,766 23,734,446
Dividends reinvested..... 481,379 576,374 42,237 319
Cost of shares redeemed.. (5,626,881) (9,730,326) (320,226) (7,488)
----------- ----------- ----------- -----------
Change in net assets from
capital transactions...... 4,612,988 28,822,594 7,907,777 23,727,277
----------- ----------- ----------- -----------
Change in net assets...... 15,943,327 19,208,604 8,604,223 23,892,072
NET ASSETS:
Beginning of period...... 73,593,669 54,385,065 23,892,072 --
----------- ----------- ----------- -----------
End of period............ $89,536,996 $73,593,669 $32,496,295 $23,892,072
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................... 891,011 3,389,581 777,618 2,369,887
Reinvested............... 44,008 53,679 4,021 31
Redeemed................. (518,257) (868,492) (30,673) (735)
----------- ----------- ----------- -----------
Change in shares.......... 416,762 2,574,768 750,966 2,369,183
=========== =========== =========== ===========
</TABLE>
- ----
(a) The Fund commenced offering Trust Shares on October 2, 1997, Class A Shares
on January 29, 1998, and Class B Shares on January 29, 1999.
See notes to financial statements
-31-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Capital Manager
Moderate Growth Capital Manager
Fund Growth Fund
-------------------------------- --------------------------------
For the For the
For the year ended For the year ended
period ended September 30, period ended September 30,
March 31, 1999 (a) 1998 (a) March 31, 1999 (a) 1998 (a)
------------------ ------------- ------------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ 268,439 $ 498,721 $ 163,338 $ 344,249
Net realized gains (loss-
es) from investment
transactions............. 724,181 560,017 794,204 725,624
Net change in unrealized
appreciation/depreciation
from investments......... 1,415,698 (942,698) 1,986,787 (1,470,716)
----------- ----------- ----------- -----------
Change in net assets re-
sulting from operations... 2,408,318 116,040 2,944,329 (400,843)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment in-
come..................... (19,300) (5,356) (6,983) (1,661)
From net realized gains
from investment transac-
tions.................... (36,656) -- (15,042) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment in-
come..................... (390) -- (16) --
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment in-
come..................... (319,554) (493,365) (246,136) (342,588)
From net realized gains
from investment transac-
tions.................... (540,033) -- (705,524) --
----------- ----------- ----------- -----------
Change in net assets
resulting from shareholder
distributions............. (915,933) (498,721) (973,701) (344,249)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares is-
sued..................... 1,974,540 23,215,874 678,187 22,390,339
Dividends reinvested..... 52,747 310 24,588 1,147
Cost of shares redeemed.. (118,805) (5,833) (91,823) --
----------- ----------- ----------- -----------
Change in net assets from
capital transactions...... 1,908,482 23,210,351 610,952 22,391,486
----------- ----------- ----------- -----------
Change in net assets...... 3,400,867 22,827,670 2,581,580 21,646,394
NET ASSETS:
Beginning of period...... 22,827,670 -- 21,646,394 --
----------- ----------- ----------- -----------
End of period............ $26,228,537 $22,827,670 $24,227,974 $21,646,394
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................... 186,655 2,316,995 64,440 2,237,201
Reinvested............... 5,053 30 2,353 109
Redeemed................. (11,419) (589) (8,650) --
----------- ----------- ----------- -----------
Change in shares.......... 180,289 2,316,436 58,143 2,237,310
=========== =========== =========== ===========
</TABLE>
- ----
(a) The Fund commenced offering Trust Shares on October 2, 1997, Class A Shares
on January 29, 1998, and Class B Shares on January 29, 1999.
See notes to financial statements
-32-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Certificate of Deposit (4.9%):
Banks (4.9%):
$2,000,000 Fleet National Bank, 5.07%, 4/9/99, A1, P1........... $ 2,000,000
1,000,000 Nationsbank, 5.00%, 1/6/00, A1+, P1.................. 999,852
-----------
Total Certificate of Deposit 2,999,852
-----------
Commercial Paper (55.5%):
Aircraft Engines & parts (3.2%):
2,000,000 Allied Signal, 4.81%, 4/19/99, A1, P1................ 1,995,190
-----------
Automotive Parts--Replacement (2.4%):
1,500,000 Daimler-Benz North America, 4.96%, 5/21/99, A1, P1... 1,489,667
-----------
Banks (3.2%):
2,000,000 National City Credit Corp, 4.83%, 4/20/99, A1, P1.... 1,994,902
-----------
Business Credit Institutions (6.4%):
2,000,000 General Electric Capital Corp., 4.89%, 6/9/99, A1+,
P1................................................... 1,981,255
2,000,000 Sears Roebuck Acceptance Corp., 4.85%, 6/23/99, A2,
P1................................................... 1,977,636
-----------
3,958,891
-----------
Chemicals & Allied Products (3.2%):
2,000,000 Great Lakes Chemical Corp., 4.82%, 5/14/99, A1, P1... 1,988,486
-----------
Communications Equipment (3.2%):
2,000,000 Alcatel Alsthom, Inc., 4.87%, 8/19/99, A1, P1........ 1,962,122
-----------
Insurance (3.2%):
2,000,000 Prudential Funding Corp., 4.75%, 7/15/99, A1, P1..... 1,972,292
-----------
Insurance Agent & Brokerage Services (3.2%):
2,000,000 Marsh And Mclennan Co., 4.93%, 4/28/99, A1+, P1...... 1,992,605
-----------
Manufacturing (4.8%):
3,000,000 Fortune Brands, 4.81%, 8/16/99, A1, P1............... 2,945,086
-----------
Newspaper Publishing & Printing (3.6%):
2,220,000 Times Mirror, 4.85%, 5/21/99, A1, P1................. 2,205,046
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Commercial Paper, continued:
Personal Credit Institution (9.6%):
$2,000,000 Associates First Capital Corp., 4.97%, 4/28/99, A1,
P1................................................... $ 1,992,544
2,000,000 Ford Motor Credit Corp., 4.83%, 6/18/99, A1, P1...... 1,979,070
2,000,000 Norwest Financial, Inc., 4.78%, 5/24/99, A1+, P1..... 1,985,926
-----------
5,957,540
-----------
Pharmaceuticals (3.1%):
1,900,000 Johnson & Johnson, 4.80%, 5/6/99, A1+, P1............ 1,891,133
-----------
Plastic Synthetic & Resin (3.2%):
2,000,000 Dupont (EI) De Nemours & Co., 4.87%, 6/8/99, A1+,
P1................................................... 1,981,602
-----------
Services--Miscellaneous Amusement (3.2%):
2,000,000 Walt Disney Co., 4.89%, 9/14/99, A1, P1.............. 1,954,903
-----------
Total Commercial Paper 34,289,465
-----------
U.S. Government Agencies (20.2%):
Federal Home Loan Bank (8.0%):
5,000,000 4.70%, 6/30/99....................................... 4,941,250
-----------
Federal Home Loan Mortgage Corp. (12.2%):
7,563,000 4.82%, 4/1/99........................................ 7,563,000
-----------
Total U.S. Government Agencies 12,504,250
-----------
Variable Rate Notes (19.6%):
Banks (2.6%):
1,600,000 Corestates Capital Corp., 4.96%*, 5/28/99............ 1,600,171
-----------
Chemicals (4.9%):
3,000,000 Dow Chemical Co., 4.90%*, 3/15/00.................... 2,998,939
-----------
Financial Services (12.1%):
2,000,000 American Honda Finance, 5.03%*, 4/9/99(b)............ 2,000,000
2,500,000 Beneficial Corp., 4.91%*, 5/4/99..................... 2,499,981
3,000,000 Merrill Lynch & Co., Inc., 5.40%*, 2/15/00........... 3,010,895
-----------
7,510,876
-----------
Total Variable Rate Notes 12,109,986
-----------
</TABLE>
Continued
-33-
[BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------ -----------
<C> <S> <C>
Total Investments
(Amortized Cost $61,903,553)(a)--
100.2% $61,903,553
Liabilities in excess of other
assets--(0.2)% (135,048)
-----------
TOTAL NET ASSETS--100.0% $61,768,505
===========
</TABLE>
- ----
(a) Cost for federal income tax and financial reporting
purposes are the same.
(b) Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors.
The board of trustees has deemed these securities
to be liquid.
* The rate reflected is the rate in effect at March
31, 1999. The maturity reflected is the next rate
change date.
See notes to financial statements
-34-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ---------------------------------------------------- ------------
<C> <S> <C>
U.S. Treasury Bills (20.9%):
U.S. Treasury Bills (20.9%):
$ 7,000,000 4/1/99.............................................. $ 7,000,000
37,500,000 4/22/99............................................. 37,396,794
7,000,000 5/27/99............................................. 6,951,490
7,000,000 6/24/99............................................. 6,934,667
7,000,000 7/22/99............................................. 6,909,404
------------
Total U.S. Treasury Bills 65,192,355
------------
U.S. Treasury Notes (22.6%):
7,000,000 6.25%, 5/31/99...................................... 7,008,635
7,000,000 6.75%, 5/31/99...................................... 7,022,844
7,000,000 6.00%, 8/15/99...................................... 7,041,434
7,000,000 5.75%, 9/30/99...................................... 7,039,026
7,000,000 5.625%, 10/31/99.................................... 7,037,063
14,000,000 5.875%, 11/15/99.................................... 14,095,757
7,000,000 5.625%, 12/31/99.................................... 7,042,409
14,000,000 5.375%, 1/31/00..................................... 14,053,269
------------
Total U.S. Treasury Notes 70,340,437
------------
</TABLE>
- ----
(a) Cost for federal income tax and financial reporting
purposes are the same.
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Repurchase Agreements (56.6%):
$70,000,000 First Boston, 4.90%, 4/1/99......................... $ 70,000,000
14,000,000 Lehman Brothers, 4.80%, 4/1/99...................... 14,000,000
13,000,000 Merrill Lynch, 4.65%, 4/1/99........................ 13,000,000
65,487,921 Nationsbank, 4.92%, 4/1/99.......................... 65,487,921
14,000,000 Smith Barney, 4.875%, 4/1/99........................ 14,000,000
------------
Total Repurchase Agreements 176,487,921
------------
Total Investments
(Amortized Cost $312,020,713) (a)--100.1% 312,020,713
Liabilities in excess of other assets--(0.1)% (191,568)
------------
TOTAL NET ASSETS--100.0% $311,829,145
============
</TABLE>
See notes to financial statements
-35-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds (7.4%):
Banks (4.0%):
$ 3,000,000 Nationsbank Corp., 6.125%, 7/15/04.................. $ 3,022,500
3,000,000 SunTrust Banks, 7.375%, 7/1/02...................... 3,127,500
------------
6,150,000
------------
Financial Services (0.6%):
1,000,000 Ford Motor Credit Co., 6.55%, 9/10/02............... 1,021,250
------------
Industrial Goods & Services (1.9%):
3,000,000 IBM Corp., 6.22%, 8/1/27, Putable 8/1/04 @ 100...... 3,075,000
------------
Technology--Software (0.9%):
1,500,000 AT&T Corp., 5.625%, 3/15/04......................... 1,492,500
------------
Total Corporate Bonds 11,738,750
------------
Mortgage Securities (44.7%):
Federal Home Loan Mortgage Corp. (22.3%):
1,179,409 6.50%, 2/1/11, Pool # G10473........................ 1,195,992
1,561,446 6.00%, 3/1/11, Pool # E20228........................ 1,558,511
2,451,317 6.50%, 12/1/12,
Gold Pool # E00523.................................. 2,478,895
3,332,822 6.5%, 2/1/13, Pool # E00532......................... 3,370,316
4,472,826 6.50%, 5/1/13, Pool # E00548........................ 4,517,554
3,366,809 6.50%, 11/01/13, Pool # G10844...................... 3,400,477
5,000,000 6.00%, 8/15/14, Series 2103 TA CMO.................. 4,978,200
5,000,000 6.00%, 11/15/16, Series 2103 PY CMO................. 5,015,800
5,000,000 6.25%, 1/15/20, Series 1583 G CMO................... 5,043,600
3,968,231 6.00%, 11/1/28, Pool # C00680....................... 3,859,104
------------
35,418,449
------------
Federal National Mortgage Assoc. (22.4%):
1,188,819 7.00%, 6/1/08, Pool # 50751......................... 1,223,734
1,607,587 7.50%, 12/1/08, Pool # 190611....................... 1,662,840
1,703,408 6.00%, 3/1/09, Pool # 50986......................... 1,697,548
1,802,382 6.00%, 4/1/09, Pool # 190759........................ 1,796,181
1,579,500 6.50%, 4/1/09, Pool # 250009........................ 1,601,218
5,182,125 6.00%, 12/1/09, Pool # 313658....................... 5,162,693
2,750,098 6.00%, 4/1/13, Pool #251656......................... 2,730,324
5,000,000 6.25%, 7/18/13, Series 1998-36 PA CMO............... 5,011,750
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Mortgage Securitiess, continued:
Federal National Mortgage Assoc., continued:
$ 4,821,653 6.00%, 11/1/13, Pool # 323363....................... $ 4,780,958
5,000,000 6.125%, 12/18/21, Series 1998-24 QE CMO............. 5,005,100
5,000,000 6.00%, 11/18/22, Series 1998-36 PN CMO.............. 4,977,300
------------
35,649,646
------------
Total Mortgage Securities 71,068,095
------------
U.S. Government Agencies (10.9%):
Federal Home Loan Bank (5.0%):
3,000,000 6.17%, 3/8/01....................................... 3,048,930
5,000,000 5.125%, 9/15/03(b).................................. 4,922,750
------------
7,971,680
------------
Federal Home Loan Mortgage Corp. (1.9%):
2,000,000 4.75%, 12/14/01(b).................................. 1,973,960
1,000,000 5.75%, 4/15/08...................................... 993,020
------------
2,966,980
------------
Federal National Mortgage Assoc. (4.0%):
5,000,000 4.625%, 10/15/01.................................... 4,925,300
1,500,000 5.125%, 2/13/04..................................... 1,474,275
------------
6,399,575
------------
Total U.S. Government Agencies 17,338,235
------------
U.S. Treasury Notes (34.9%):
11,000,000 6.50%, 4/30/99(b)................................... 11,015,290
9,500,000 8.00%, 8/15/99(b)................................... 9,616,565
11,000,000 5.625%, 10/31/99(b)................................. 11,052,030
12,500,000 6.75%, 4/30/00(b)................................... 12,735,750
6,000,000 5.625%, 2/28/01(b).................................. 6,067,260
5,000,000 5.875%, 11/30/01(b)................................. 5,097,500
------------
Total U.S. Treasury Notes 55,584,395
------------
Investment Companies (1.5%):
2,362,008 Federated Short Term U.S. Government Fund........... 2,362,008
------------
Total Investment Companies 2,362,008
------------
Short Term Securities as Collateral (32.1%):
Commercial Paper (23.1%):
4,000,000 Bavaria Universal Funding,
4.90%, 4/20/99...................................... 3,982,033
</TABLE>
Continued
-36-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Short Term Securities as Collateral, continued:
Commercial Paper, continued:
$11,000,000 Chrysler Funding, 4.90%, 4/14/99.................... $ 10,863,753
9,000,000 Lyon Short Term, 4.91%, 4/12/99..................... 8,952,128
9,000,000 Prudential Financial, 4.92%, 4/15/99................ 8,964,330
4,000,000 TI Group, 4.90%, 4/26/99............................ 3,982,578
------------
36,744,822
------------
Medium Term Note (3.8%):
6,000,000 GMAC, 5.27%, 11/13/00............................... 6,000,000
------------
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and
differs from value by net unrealized depreciation
of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................... $ 511,094
Unrealized deprecia-
tion................... (1,001,262)
-----------
Unrealized deprecia-
tion................... $ (490,168)
===========
</TABLE>
(b) All or part of this security has been loaned at March 31, 1999.
CMO--Collateralized Mortgage Obligation.
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------- ------------
<C> <S> <C>
Short Term Securities as Collateral, continued:
Repurchase Agreements (5.2%):
$ 8,342,681 Lehman Brothers Triparty Agreement, 5.125%,
4/1/99, (see Significant Accounting Policies,
Lending Portfolio Securities in the Notes to
Financial Statements for Collateral description).. $ 8,342,681
------------
Total Short Term Securities Held as Collateral 51,087,503
------------
Total Investments
(Cost $209,669,154)(a)--131.5% 209,178,986
Liabilities in excess of other assets--(31.5%) (50,059,276)
------------
TOTAL NET ASSETS--100.0% $159,119,710
============
</TABLE>
See notes to financial statements
-37-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERMEDIATE U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds (16.5%):
Banks (4.0%):
$ 3,000,000 AmSouth Bank, 6.45%, 2/1/18, Putable/Callable
2/1/08 @........................................... $ 3,003,750
5,000,000 SunTrust Banks, 7.375%, 7/1/02..................... 5,212,500
------------
8,216,250
------------
Consumer Goods & Services (1.5%):
3,000,000 Kimberly--Clark Corp., 6.25%, 7/15/18.............. 2,940,000
------------
Financial Services (3.5%):
2,000,000 Ford Motor Credit Co., 6.55%, 9/10/02.............. 2,042,500
5,000,000 Morgan Stanley Dean Witter, 6.375%, 8/1/02......... 5,075,000
------------
7,117,500
------------
Industrial Goods & Services (2.0%):
4,000,000 IBM Corp., 6.22%, 8/1/27, Putable 8/1/04 @ 100..... 4,100,000
------------
Leisure Time Industries (2.6%):
5,000,000 The Walt Disney Co., 6.75%, 3/30/06................ 5,225,000
------------
Technology-Software (2.9%):
2,500,000 AT&T Corp., 6.00%, 3/15/09......................... 2,484,375
2,000,000 Lucent Technologies, 5.50%, 11/15/08............... 1,925,000
1,500,000 Lucent Technologies, 6.45%, 3/15/29................ 1,464,375
------------
5,873,750
------------
Total Corporate Bonds 33,472,500
------------
Mortgage Securities (37.3%):
Federal Home Loan Mortgage Corp. (19.0%):
1,379,573 7.50%, 7/1/07, Pool # E00108....................... 1,428,285
1,403,885 6.50%, 2/1/11, Pool # G10473....................... 1,423,623
1,561,446 6.00%, 3/1/11, Pool # E20228....................... 1,558,511
2,667,407 6.50%, 4/1/11, Pool # E20235....................... 2,707,418
3,268,423 6.50%, 12/1/12, Gold Pool # E00523................. 3,305,193
4,472,826 6.50%, 5/1/13, Pool # E00548....................... 4,517,554
3,366,809 6.50%, 11/01/13, Pool # G10844..................... 3,400,477
5,000,000 6.00%, 8/15/14, Series 2103 TA CMO................. 4,978,200
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Mortgage Securities, continued:
Federal Home Loan Mortgage Corp., continued:
$ 5,000,000 6.00%, 11/15/16, Series 2103 PY CMO................. $ 5,015,800
5,000,000 6.25%, 1/15/20, Series 1583 G CMO................... 5,043,599
4,960,289 6.00%, 11/1/28, Pool # C00680....................... 4,823,881
------------
38,202,541
------------
Federal National Mortgage Assoc. (16.7%):
3,521,492 6.00%, 6/1/08, Pool # 124885........................ 3,529,169
2,207,806 7.00%, 6/1/08, Pool # 50751......................... 2,272,650
2,220,911 6.00%, 12/1/09, Pool # 313658....................... 2,212,582
3,666,797 6.00%, 4/1/13, Pool #251656......................... 3,640,432
4,849,537 6.00%, 11/1/13, Pool #323363........................ 4,808,607
5,000,000 6.125%, 12/18/21, Series 1998-24 QE CMO............. 5,005,099
5,000,000 6.00%, 11/18/22, Series 1998-36 PN CMO.............. 4,977,300
2,572,123 7.00%, 4/1/24, Pool # 250005........................ 2,621,148
4,973,957 6.00%, 1/1/29, Pool # 252211........................ 4,832,498
------------
33,899,485
------------
Government National Mortgage Assoc. (1.6%):
3,123,834 7.00%, 8/15/23, Pool # 354627....................... 3,188,248
------------
Total Mortgage Securities 75,290,274
------------
U.S. Government Agencies (14.7%):
Federal Home Loan Bank (4.9%):
5,000,000 5.125%, 9/15/03(b).................................. 4,922,750
2,000,000 6.789%, 2/5/07...................................... 2,107,600
3,000,000 5.84%, 7/14/08(b)................................... 2,980,590
------------
10,010,940
------------
Federal Home Loan Mortgage Corp. (1.0%):
2,000,000 5.75%, 4/15/08...................................... 1,986,040
Federal National Mortgage Assoc. (8.8%):
5,000,000 4.625%, 10/15/01(b)................................. 4,925,300
8,000,000 5.125%, 2/13/04..................................... 7,862,800
5,000,000 6.00%, 5/15/08(b)................................... 5,055,550
------------
17,843,650
------------
Total U.S. Government Agencies 29,840,630
------------
</TABLE>
Continued
-38-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERMEDIATE U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
U.S. Treasury Bonds (3.3%):
$ 2,500,000 7.50%, 11/15/16(b).................................. $ 2,935,825
3,750,000 6.00%, 2/15/26...................................... 3,812,813
------------
Total U.S. Treasury Bonds 6,748,638
------------
U.S. Treasury Notes (26.1%):
9,500,000 6.375%, 8/15/02..................................... 9,849,695
7,250,000 6.25%, 2/15/03(b)................................... 7,513,538
4,000,000 7.25%, 8/15/04(b)................................... 4,367,600
6,500,000 5.875%, 11/15/05(b)................................. 6,683,560
11,000,000 6.50%, 10/15/06(b).................................. 11,719,950
12,000,000 6.25%, 2/15/07(b)................................... 12,630,960
------------
Total U.S. Treasury Notes 52,765,303
------------
Investment Companies (1.6%):
3,264,850 Federated Short Term U.S. Government Fund........... 3,264,850
------------
Total Investment Companies 3,264,850
------------
Short Term Securities Held as Collateral (29.3%):
Commercial Paper (20.6%):
16,000,000 Bavaria Universal Funding, 4.90%, 4/20/99........... 15,928,133
6,000,000 Lyon Short Term, 4.91%, 4/12/99..................... 5,968,085
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------- ------------
<C> <S> <C>
Short Term Securities Held as Collateral, continued:
Commercial Paper, continued:
$ 9,000,000 Prudential Financial, 4.92%, 4/15/99.............. $ 8,964,330
11,000,000 TI Group, 4.90%, 4/26/99.......................... 10,952,089
------------
41,812,637
------------
Medium Term Note (3.5%):
7,000,000 GMAC, 5.27%, 11/13/00............................. 7,000,000
------------
Repurchase Agreements (5.2%):
10,578,982 Lehman Brothers Triparty Agreement, 5.125%,
4/1/99, (see Significant Accounting Policies,
Lending Portfolio Securities in the Notes to
Financial Statements for Collateral description).. 10,578,982
------------
Total Short-Term Securities Held as Collateral 59,391,619
------------
Total Investments
(Cost $259,541,480)(a)--128.8% 260,773,814
Liabilities in excess of other assets--(28.8%) (58,373,584)
------------
TOTAL NET ASSETS--100.0% $202,400,230
============
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................... $2,466,140
Unrealized deprecia-
tion.................... (1,233,806)
----------
Net unrealized apprecia-
tion.................... $1,232,334
==========
</TABLE>
(b) All or part of this security has been loaned at March 31, 1999.
CMO-Collateralized Mortgage Obligation.
See notes to financial statements
-39-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds (98.7%):
Education Bonds (2.9%):
$ 500,000 Appalachian State University, North Carolina, 5.00%,
5/15/18, Callable 5/15/08 @ 102, MBIA................ $ 501,240
500,000 North Carolina, Educational Facilities, 5.00%,
10/1/17, Callable 10/1/06 @ 102...................... 501,500
550,000 University of North Carolina, Asheville Revenue,
5.15%, 6/1/18, Callable 6/1/07 @102, AMBAC........... 558,536
250,000 University of North Carolina, University Revenues,
4.90%, 8/1/03, Callable 8/1/02 @ 102................. 261,285
500,000 University of North Carolina, University Revenues,
5.20%, 5/15/05....................................... 531,995
-----------
2,354,556
-----------
General Obligation Bonds (67.1%):
250,000 Alamance County, North Carolina, 4.30%, 5/1/09....... 249,870
150,000 Alamance County, North Carolina, 4.40%, 5/1/10,
Callable 5/1/09 @ 100.5.............................. 149,214
300,000 Asheville, North Carolina, 6.00%, 3/1/01............. 313,758
250,000 Asheville, North Carolina, 5.00%, 6/1/09, Callable
6/1/07 @ 101, MBIA................................... 261,585
500,000 Buncombe County, North Carolina, 5.00%, 3/1/01....... 513,930
500,000 Buncombe County, North Carolina, 5.00%, 3/1/03....... 522,555
350,000 Buncombe County, North Carolina, 5.10%, 3/1/04....... 369,096
500,000 Buncombe County, North Carolina, 5.80%, 2/1/05,
Callable 2/1/04 @ 100.5.............................. 541,460
1,000,000 Buncombe County, North Carolina, 5.10%, 3/1/07....... 1,060,740
500,000 Buncombe County, North Carolina, 5.30%, 3/1/08, FSA.. 534,395
500,000 Burke County, North Carolina, 6.30%, 3/1/01, MBIA.... 525,745
400,000 Burlington, North Carolina, 5.10%, 2/1/07............ 424,072
500,000 Cabarrus County, North Carolina, 5.30%, 2/1/11,
Callable 2/1/07 @ 102, MBIA.......................... 531,065
1,500,000 Cabarrus County, North Carolina, 5.30%, 2/1/13,
Callable 2/1/07 @ 102, MBIA.......................... 1,580,984
500,000 Cary, North Carolina, 5.50%, 2/1/01.................. 517,790
500,000 Catawba County, North Carolina, 5.70%, 6/1/06,
Callable 6/1/04 @ 101................................ 540,930
250,000 Charlotte, North Carolina, 5.00%, 2/1/20, Callable
2/1/08 @ 102......................................... 249,023
500,000 Charlotte, North Carolina, Series A, 5.50%, 7/1/06,
Callable 7/1/02 @ 102................................ 530,455
1,000,000 Charlotte, North Carolina, Water & Sewer, 6.20%,
6/1/01............................................... 1,054,950
500,000 Chatham County, North Carolina, 5.40%, 4/1/11,
Callable 4/1/06 @102................................. 532,720
600,000 Cleveland County, North Carolina, 5.10%, 6/1/03,
FGIC................................................. 630,708
1,000,000 Craven County, North Carolina, 5.50%, 6/1/07,
Callable 6/1/06 @ 100.5, MBIA........................ 1,084,030
500,000 Craven County, North Carolina, 5.50%, 6/1/09,
Callable 6/1/06 @ 102, MBIA.......................... 540,235
1,000,000 Craven County, North Carolina, 5.50%, 6/1/16,
Callable 6/1/06 @ 102, MBIA.......................... 1,056,820
500,000 Cumberland County, North Carolina, Certificate of
Participation, Civic Center Project-Series A, 5.80%,
12/1/03, AMBAC....................................... 541,920
400,000 Davidson County, North Carolina, Certificate of
Participation, 5.00%, 6/1/18, Callable 6/1/08 @ 101,
MBIA................................................. 397,048
500,000 Durham & Wake Counties, North Carolina, 5.75%,
4/1/02............................................... 529,875
500,000 Durham County, North Carolina, 5.40%, 2/1/02......... 523,695
250,000 Durham County, North Carolina, 5.20%, 3/1/03,
Callable 3/1/02 @ 100.5.............................. 261,253
500,000 Durham County, North Carolina, 4.90%, 2/1/04......... 523,150
500,000 Durham County, North Carolina, 5.00%, 2/1/05......... 526,820
340,000 Durham County, North Carolina, 5.20%, 3/1/05,
Callable 3/1/02 @ 101.5.............................. 356,041
500,000 Durham County, North Carolina, Certificate of
Participation, 5.00%, 5/1/14, Callable 5/1/08 @ 102.. 507,210
500,000 Fayetteville, North Carolina, 6.50%, 3/1/14, FGIC.... 524,860
500,000 Forsyth County, North Carolina, 6.20%, 3/1/04,
Callable 3/1/01 @ 101.5.............................. 531,460
1,000,000 Forsyth County, North Carolina, 5.20%, 6/1/02........ 1,046,520
</TABLE>
Continued
-40-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds, continued:
General Obligation Bonds, continued:
$ 500,000 Forsyth County, North Carolina, 5.60%, 8/1/03,
Callable 8/1/02 @ 100.5.............................. $ 531,880
265,000 Forsyth County, North Carolina, 5.40%, 6/1/04,
Callable 6/1/02 @101................................. 279,551
500,000 Forsyth County, North Carolina, 5.10%, 8/1/04........ 530,095
500,000 Forsyth County, North Carolina, 4.75%, 2/1/12,
Callable 2/1/06 @ 102................................ 506,210
500,000 Gaston County, North Carolina, 5.00%, 3/1/08,
Callable 3/1/06 @ 101, AMBAC......................... 525,375
1,000,000 Gaston County, North Carolina, 5.50%, 5/1/09,
Callable 5/1/07 @ 101, FGIC.......................... 1,087,510
500,000 Gaston County, North Carolina, 5.00%, 3/1/14, FGIC... 511,080
500,000 Goldsboro, North Carolina, 4.90%, 6/1/01............. 514,670
500,000 Greensboro, North Carolina, 5.40%, 4/1/02............ 524,650
500,000 Greensboro, North Carolina, 4.70%, 4/1/12, Callable,
4/1/08 @ 102......................................... 503,100
500,000 Greensboro, North Carolina, 5.20%, 6/1/12, Callable
6/1/07 @ 102......................................... 523,780
700,000 Henderson County, North Carolina, 6.50%, 6/1/01...... 743,106
300,000 Hickory County, North Carolina, 6.50%, 5/1/01........ 317,796
500,000 Johnston County, North Carolina, 5.00%, 5/1/09,
Callable 5/1/07 @ 101, FGIC.......................... 525,115
500,000 Johnston County, North Carolina, 5.00%, 5/1/17,
Callable 5/1/07 @ 102, FGIC.......................... 502,945
500,000 Lee County, North Carolina, 5.50%, 2/1/00............ 509,785
500,000 Lincoln County, North Carolina, 4.70%, 6/1/01, FGIC.. 512,605
750,000 Lincoln County, North Carolina, 4.80%, 6/1/04, FGIC.. 781,988
500,000 Mecklenburg County, North Carolina, 5.75%, 3/1/03,
Callable 3/1/02 @ 100.5.............................. 530,035
1,000,000 Mecklenburg County, North Carolina, 5.40%, 4/1/03.... 1,061,910
500,000 Mecklenburg County, North Carolina, 4.80%, 3/1/10,
Callable 3/1/06 @ 102................................ 514,985
500,000 Mecklenburg County, North Carolina, 5.50%, 4/1/11,
Callable 4/1/04 @ 102................................ 537,165
625,000 New Hanover County, North Carolina, 5.30%, 5/1/09,
Callable 5/1/06 @ 101.5.............................. 667,356
250,000 New Hanover County, North Carolina, 4.80%, 2/1/12,
Callable 2/1/08 @ 102................................ 253,095
500,000 New Hanover County, North Carolina, 5.30%, 5/1/13,
Callable 5/1/06 @ 102................................ 525,630
500,000 New Hanover County, North Carolina, 4.80%, 2/1/14,
Callable 2/1/08 @ 102................................ 500,810
500,000 North Carolina State, 5.60%, 4/1/00.................. 512,215
250,000 North Carolina State, 6.10%, 3/1/03, Callable 3/1/02
@ 100.5.............................................. 267,653
500,000 North Carolina State, 5.10%, 3/1/05.................. 529,785
400,000 North Carolina State, 4.70%, 2/1/06, Callable 2/1/04
@ 101................................................ 414,404
250,000 North Carolina State, 5.10%, 3/1/06.................. 265,535
500,000 North Carolina State, 4.60%, 5/1/08, Callable 5/1/07
@ 100.5.............................................. 514,195
1,000,000 North Carolina State, 5.10%, 6/1/09, Callable 6/1/06
@ 101.5.............................................. 1,059,890
500,000 North Carolina State, 4.75%, 4/1/12, Callable 4/1/08
@ 102................................................ 506,300
915,000 North Carolina, State Clean Water, 5.00%, 6/1/13,
Callable 6/1/09 @ 102................................ 944,060
250,000 North Carolina, State Highway, 4.50%, 5/1/07......... 255,778
500,000 Onslow County, North Carolina, 5.30%, 5/1/05......... 535,050
500,000 Orange County, North Carolina, 5.10%, 6/1/00......... 510,500
500,000 Orange County, North Carolina, 5.10%, 6/1/06,
Callable 6/1/03 @ 101.5.............................. 525,280
500,000 Orange County, North Carolina, 5.10%, 6/1/07,
Callable 6/1/03 @ 102................................ 525,420
500,000 Raleigh, North Carolina, 4.30%, 6/1/10, Callable
6/1/08 @ 101......................................... 493,430
500,000 Rocky Mount, North Carolina, 6.10%, 5/1/03, Callable
5/1/02 @ 100.5....................................... 538,655
625,000 Rowan County, North Carolina, 5.50%, 4/1/04, MBIA.... 670,619
700,000 Rowan County, North Carolina, 5.50%, 4/1/05, MBIA.... 755,909
225,000 Rowan County, North Carolina, 5.50%, 2/1/07, Callable
2/1/06 @ 100.5, MBIA................................. 243,191
</TABLE>
Continued
-41-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds, continued:
General Obligation Bonds, continued:
$ 250,000 Stokes County, North Carolina, 4.80%, 6/1/00, FGIC... $ 254,515
650,000 Stokes County, North Carolina, 4.80%, 6/1/08, FGIC... 678,379
500,000 Stokes County, North Carolina, 5.00%, 6/1/13,
Callable 6/1/08 @ 102, FGIC.......................... 515,880
1,000,000 Surry County, North Carolina, 6.25%, 4/1/00, AMBAC... 1,030,480
500,000 Surry County, North Carolina, 6.25%, 4/1/01, AMBAC... 525,940
500,000 Union County, North Carolina, 5.20%, 6/1/13, Callable
6/1/05 @ 102, MBIA................................... 520,890
800,000 Wake County, North Carolina, 4.50%, 3/1/10, Callable
3/1/08 @ 101......................................... 803,400
500,000 Wake County, North Carolina, 4.90%, 2/1/11, Callable
2/1/04 @ 102......................................... 515,575
250,000 Wayne County, North Carolina, 4.80%, 4/1/02.......... 257,958
500,000 Wayne County, North Carolina, 4.80%, 4/1/03.......... 518,955
500,000 Wilkes County, North Carolina, 5.00%, 6/1/01, AMBAC.. 515,705
500,000 Wilkes County, North Carolina, 5.00%, 6/1/02, AMBAC.. 519,835
500,000 Wilkes County, North Carolina, 5.30%, 6/1/08,
Callable 6/1/03 @ 102................................ 526,840
850,000 Wilmington, North Carolina, 5.00%, 4/1/10, FGIC...... 895,611
350,000 Winston-Salem, North Carolina, 6.25%, 4/1/07,
Callable 4/1/02 @ 102................................ 381,500
-----------
53,637,541
-----------
Health Care Bonds (10.8%):
245,000 Charlotte-Mecklenberg Hospital Authority, North
Carolina, Health Care System Revenue, 5.70%, 1/1/01.. 253,803
200,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 5.70%, 1/1/01.. 207,290
185,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 5.90%, 1/1/02.. 195,438
110,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 6.00%, 1/1/03,
Pre Refunded 1/1/02 @ 102............................ 118,479
190,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 6.00%, 1/1/03,
Callable 1/1/02 @ 102................................ 203,507
500,000 North Carolina Health Care, Duke University, Health
Care System Revenue, 4.70%, 6/1/10,
Callable 6/1/08 @ 101................................ 503,430
500,000 North Carolina Health Care, Duke University, Health
Care System Revenue, 5.00%, 6/1/18,
Callable 6/1/08 @101................................. 490,895
500,000 North Carolina Medical Care Community, Hospital
Revenue, 5.10%, 11/1/09, Callable 11/1/07 @ 100,
AMBAC................................................ 522,885
1,000,000 North Carolina Medical Care Community, Hospital
Revenue, 5.00%, 10/1/10, Callable 10/1/07 @ 102,
MBIA................................................. 1,041,479
500,000 North Carolina Medical Care, Common Health Care
Revenue, 5.00%, 10/1/08.............................. 523,485
500,000 North Carolina, Medical Care, 4.50%, 6/1/08.......... 502,960
500,000 North Carolina, Medical Care, 4.38%, 6/1/09, Callable
6/1/08 @ 101......................................... 494,515
250,000 North Carolina, Medical Care, 5.13%, 10/1/11,
Callable 10/1/08 @ 101, MBIA......................... 259,583
1,000,000 North Carolina, Medical Care, 5.00%, 6/1/17, Callable
6/1/08 @ 101......................................... 988,180
500,000 Pitt County, North Carolina, Memorial Hospital
Revenue, 4.40%, 12/1/08.............................. 497,250
1,000,000 Pitt County, North Carolina, Memorial Hospital
Revenue, 5.50%, 12/1/15, Callable 12/1/05 @ 102...... 1,068,849
500,000 University of North Carolina, Chapel Hill Hospital,
4.95%, 2/15/08, Callable 2/15/06 @ 102............... 521,490
250,000 University of North Carolina, Chapel Hill Hospital
Revenue, 5.05%, 2/15/09, Callable 2/15/06 @ 102...... 260,883
-----------
8,654,401
-----------
</TABLE>
Continued
-42-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds, continued:
Housing Bonds (1.5%):
$ 250,000 Centennial Authority, North Carolina, Hotel, Tax
Revenue Arena, 5.00%, 9/1/12, Callable 9/1/07 @ 102,
FSA.................................................. $ 255,285
500,000 Centennial Authority, North Carolina, Hotel, Tax
Revenue Arena, 5.00%, 9/1/11, Callable 9/1/07 @102,
FSA.................................................. 512,640
240,000 North Carolina Housing Finance Agency, 5.65%,
9/1/02............................................... 249,396
140,000 North Carolina Housing Finance Agency, 6.35%, 9/1/04,
Callable 9/1/02 @ 102................................ 147,969
-----------
1,165,290
-----------
Utility Bonds (16.4%):
500,000 Asheville, North Carolina, Water System Revenue,
5.30%, 8/1/09, Callable 8/1/06 @ 102, FGIC........... 535,690
1,500,000 Asheville, North Carolina, Water System Revenue,
5.63%, 8/1/16, Callable 8/1/06 @ 102, FGIC........... 1,595,594
600,000 Charlotte, North Carolina, Water & Sewer, 5.70%,
2/1/06, Callable 2/1/04 @ 101........................ 652,098
1,000,000 Charlotte, North Carolina, Water & Sewer, 5.60%,
5/1/21, Callable 5/1/06 @ 102........................ 1,107,020
500,000 Charlotte, North Carolina, Water & Sewer, 5.60%,
5/1/17, Callable 5/1/06 @ 102........................ 553,510
1,000,000 Charlotte, North Carolina, Water & Sewer, 5.25%,
12/1/21, Callable 12/1/06 @ 102...................... 1,014,310
500,000 Durham, North Carolina, Water & Sewer, 4.90%, 6/1/13,
Callable 6/1/08 @ 101................................ 505,370
500,000 Gastonia County, North Carolina, Utilities Revenue,
4.75%, 5/1/15, Callable 5/1/08 @ 102, MBIA........... 492,795
305,000 Gastonia, North Carolina, Comb Utilities Revenue,
5.00%, 5/1/08, MBIA.................................. 320,436
500,000 Greensboro, North Carolina, Enterprise System
Revenue, Water Utility Improvements, 5.38%, 6/1/19,
Callable 6/1/05 @ 102................................ 516,470
500,000 Lincolnton, North Carolina, Enterprise System
Revenue, Water & Sewer Improvement, 5.10%, 5/1/09,
Callable 11/1/06 @ 102, MBIA......................... 528,710
500,000 North Carolina Catawba Power Agency, 5.10%, 1/1/07,
Callable 1/1/06 @ 102, AMBAC......................... 527,105
785,000 North Carolina, Eastern Power Agency, 5.00%, 1/1/17.. 799,789
1,000,000 North Carolina, Municipal Power Agency, No 1, Catawba
Electric Revenue, 5.13%, 1/1/17...................... 1,005,640
325,000 North Carolina, Municipal Power Agency, No. 1,
Catawba Electric Revenue, 5.00%, 1/1/20.............. 327,490
500,000 Raleigh, North Carolina, Combined Enterprise, 5.13%,
3/1/22, Callable 3/1/07 @ 102........................ 498,305
1,000,000 Shelby, North Carolina, Combined Enterprise System
Revenue, 5.63%, 5/1/14, Callable 5/1/05 @ 102........ 1,052,640
1,025,000 Winston-Salem, North Carolina, Water & Sewer, 5.00%,
6/1/12, Callable 6/1/07 @ 102........................ 1,051,466
-----------
13,084,438
-----------
Total Municipal Bonds 78,896,226
-----------
Investment Companies (0.4%):
321,811 Federated Municipal Obligations Fund................. 321,811
-----------
Total Investment Companies 321,811
-----------
Total Investments (Cost $76,530,726) (a)--99.1% 79,218,037
Other assets in excess of liabilities--0.9% 747,855
-----------
TOTAL NET ASSETS--100.0% $79,965,892
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.. $2,804,816
Unrealized depreciation.. (117,505)
----------
Net unrealized apprecia-
tion..................... $2,687,311
==========
</TABLE>
(b) Investment in affiliate.
AMBAC--AMBAC Indemnity Corporation.
FGIC--Insured by Financial Guaranty Insurance Corporation.
FSA--Insured by Financial Security Assurance
MBIA--Municipal Bond Insurance Association.
See notes to financial statements
-43-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds (96.3%):
Certificate Participation (2.9%):
$250,000 Greenville, South Carolina, Cops, 4.20%, 3/1/08,
AMBAC................................................. $ 247,610
300,000 Myrtle Beach, South Carolina, Cops, 5.00%, 7/1/13,
Callable 7/1/08 @ 101, MBIA........................... 302,031
-----------
549,641
-----------
Education Bonds (23.8%):
350,000 Beaufort County, South Carolina, School District,
6.75%, 3/1/00......................................... 361,295
250,000 Beaufort County, South Carolina, School District,
Series B, 5.00%, 3/1/06, Callable 3/1/04 @ 101........ 261,305
250,000 Brookland Cayce, South Carolina, School District,
5.00%, 3/1/11, Callable 3/1/05 @ 101 256,898
250,000 Cherokee County, South Carolina, School District No.
1, 5.00%, 3/1/09, Callable 3/1/07 @ 101............... 261,520
250,000 Cherokee County, South Carolina, School District No.
1, 5.00%, 3/1/01...................................... 257,013
500,000 Citadel Military College, South Carolina, 5.13%,
4/1/12, Callable 4/1/06 @ 102......................... 516,230
500,000 Dorchester County, South Carolina, School District,
5.15%, 7/1/08, Callable 7/1/03 @ 102.................. 522,485
250,000 Horry County, South Carolina, School District, 5.60%,
1/1/16, Callable 1/1/05 @ 100......................... 261,100
250,000 Horry County, South Carolina, School District, Series
A, 5.10%, 3/1/09, Callable 3/1/05 @ 101............... 260,480
250,000 Richland County, Educational Facilities Revenue,
5.13%, 1/1/18, Callable 1/1/08 @ 102.................. 247,455
500,000 South Carolina, Educational Facilities Authority,
Private Nonprofit Institutions, Furman University,
Project Revenue, Series A, 5.50%, 10/1/16, Callable
10/1/06 @ 102, MBIA................................... 522,955
500,000 University of South Carolina, University Revenues,
5.65%, 6/1/12, Callable 6/1/06 @ 101, MBIA............ 535,699
250,000 York County, South Carolina, School District, 5.00%,
7/1/14, Callable 7/1/05 @ 102......................... 252,505
-----------
4,516,940
-----------
General Obligation Bonds (35.3%):
250,000 Beaufort County, South Carolina, School District,
Series B, 4.20%, 2/1/10, Callable 2/1/07 @ 101,
SCSDE................................................. 243,235
250,000 Beaufort County, South Carolina, School Improvements,
Series B, 5.00%, 2/1/07, SCSDE........................ 262,708
500,000 Charleston County, South Carolina, 5.00%, 2/1/08,
Callable 2/1/05 @ 102................................. 524,054
200,000 Charleston County, South Carolina, 5.50%, 6/1/06,
Callable 6/1/04 @102.................................. 216,052
200,000 Cherokee County, South Carolina, School District,
5.00%, 3/1/17, Callable 3/1/07 @ 101, SCSDE........... 200,276
250,000 Georgetown County, South Carolina, School District,
4.80%, 3/1/11, Callable 3/1/09 @ 100, MBIA............ 253,738
500,000 Hilton Head Island, 4.70%, 12/1/08, Callable 12/1/06 @
101, FGIC............................................. 515,409
250,000 Hilton Head Island, 4.90%, 12/1/10, Callable 12/1/06 @
101, FGIC 256,770
250,000 Irmo-Chapin, South Carolina, Recreation lmprovements,
5.00%, 2/1/15, Callable 2/1/08 @ 100, FGIC............ 254,993
250,000 Lancaster County, South Carolina, School District,
4.80%, 7/1/11, Callable 7/1/08 @ 101.................. 253,828
250,000 Myrtle Beach, South Carolina, Water & Sewer, 5.10%,
3/1/08, Callable 3/1/05 @ 102......................... 262,948
250,000 Richland County, South Carolina, Recreation District,
4.70%, 3/1/09......................................... 259,428
500,000 South Carolina State, 5.75%, 3/1/01................... 521,104
250,000 South Carolina State, Public Service Authority
Revenue, 5.20%, 7/1/04, Callable 1/1/03 @ 102, MBIA... 264,793
250,000 South Carolina State, Public Service Authority
Revenue, 5.13%, 1/1/21, Callable 1/1/03 @ 102, AMBAC.. 248,520
500,000 South Carolina State, State Highway, Series B,
5.65%,................................................ 532,559
300,000 South Carolina State, State Highway, Series B, 5.63%,
7/1/13, Callable 1/1/06 @ 102......................... 323,840
275,000 South Carolina, Capital Improvement, 4.25%, 3/1/09,
Callable 3/1/04 @ 102................................. 274,332
500,000 South Carolina, State Highway, 5.63%, 7/1/09, Callable
7/1/06 @ 102.......................................... 548,529
250,000 South Carolina, State Institution, 5.00%, 4/1/13,
Callable 4/1/06 @ 102................................. 255,823
250,000 York County, South Carolina, School District, Series
A, 5.00%, 3/1/10, Callable 3/1/06 @ 101, SCSDE........ 258,903
-----------
6,731,842
-----------
Health Care Bonds (8.6%):
250,000 Charleston County, South Carolina, Health Care
Services, Series A, 5.00%, 8/15/12, Callable 8/15/09 @
101, FSA.............................................. 254,378
235,000 Charleston County, South Carolina, Health Care
Services, Series A, 5.00%, 8/15/05, FSA............... 246,879
250,000 Charleston County, South Carolina, Health Care
Services, Series A, 4.38%, 8/15/10, Callable 8/15/09 @
101, FSA.............................................. 243,108
</TABLE>
Continued
-44-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued:
Health Care Bonds, continued:
$300,000 Charleston County, South Carolina, Hospital
Facilities, 5.50%, 10/1/19, Callable 10/1/02 @ 102,
MBIA.................................................. $ 317,144
250,000 Greenville Hospital System, South Carolina, Hospital
Facilities Revenue, Series A, 5.75%, 5/1/14, Callable
5/1/06 @ 102.......................................... 265,230
300,000 Lexington County, South Carolina, Health Services,
5.00%, 11/1/10, Callable 11/1/08 @ 102 306,612
-----------
1,633,351
-----------
Pollution Control Bonds (4.2%):
500,000 Charleston County, South Carolina, Solid Waste, 5.60%,
1/1/04................................................ 536,500
250,000 Oconee County, South Carolina, Pollution Revenue,
5.80%, 4/1/14, Callable 4/1/03 @ 102.................. 263,245
-----------
799,745
-----------
Transportation Bonds (2.8%):
250,000 South Carolina, Highway Improvements, Series A, 5.00%,
10/1/08, MBIA......................................... 263,133
250,000 South Carolina, Highway Improvements, Series A, 5.00%,
10/1/07, MBIA......................................... 263,807
-----------
526,940
-----------
Utility Bonds (18.7%):
500,000 Beaufort-Jasper, South Carolina, Water & Sewer
Authority, Waterworks & Sewer System Revenue, 6.50%,
3/1/13, Callable 3/1/02 @ 102......................... 542,254
200,000 Camden, South Carolina, Public Utility Revenue, 5.50%,
3/1/22, Callable 3/1/07 @ 102......................... 208,688
250,000 Charleston, South Carolina, Waterworks & Sewer, 5.13%,
1/1/12................................................ 261,798
250,000 Charleston, South Carolina, Waterworks & Sewer, 5.25%,
1/1/10, Callable 1/1/09 @ 101......................... 265,605
500,000 Columbia, South Carolina, Water & Sewer, 5.50%,
2/1/09................................................ 545,574
500,000 Greenville, South Carolina, Waterworks, 5.30%, 2/1/14,
Callable 2/1/07 @ 102................................. 521,290
250,000 Greenwood, South Carolina, Utility Revenue, 4.50%,
12/1/08, FSA.......................................... 253,513
250,000 Hilton Head, South Carolina, Water & Sewer, 5.00%,
12/01/18, Callable 12/01/08 @ 100, FSA................ 247,513
200,000 Piedmont, Municipal Power Revenue, 5.50%, 1/1/13,
MBIA.................................................. 216,900
250,000 South Carolina, State Publishing Service Authority
Revenue, 5.00%, 1/1/18, Callable 1/1/03 @ 102, FGIC... 247,283
250,000 Spartanburg, South Carolina, Water Works, 5.00%,
6/1/17, Callable 6/1/07 @ 101......................... 249,393
-----------
3,559,811
-----------
Total Municipal Bonds 18,318,270
-----------
Investment Companies (2.8%):
530,180 Federated Municipal Obligations Fund.................. 530,180
-----------
Total Investment Companies 530,180
-----------
Total Investments (Cost $18,447,622)(a)--99.1% 18,848,450
Other assets in excess of liabilities--0.9% 162,944
-----------
TOTAL NET ASSETS--100.0% $19,011,394
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $448,511
Unrealized depreciation.... (47,683)
--------
Net unrealized apprecia-
tion....................... $400,828
========
</TABLE>
AMBAC--AMBAC Indemnity Corporation.
FGIC--Insured by Financial Guaranty Insurance Corporation
FSA--Insured by Financial Security Assurance
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements
-45-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME STOCK FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (97.4%):
Aerospace/Defense (5.3%):
171,600 Lockheed Martin Corp. ................................ $ 6,467,175
149,000 Parker Hannifin Corp. ................................ 5,103,250
96,700 Raytheon Co.--Class A................................. 5,584,425
109,000 Raytheon Co.--Class B................................. 6,390,125
------------
23,544,975
------------
Apparel (1.0%):
93,200 V. F. Corp. .......................................... 4,397,875
------------
Automobiles & Trucks (1.0%):
79,815 Ford Motor Co. ....................................... 4,529,501
------------
Banks (6.2%):
79,560 J.P. Morgan & Co. .................................... 9,815,714
96,722 Old Kent Financial Corp. ............................. 4,086,505
217,200 Pacific Century Financial Corp. ...................... 4,534,050
65,000 U.S. Bancorp.......................................... 2,214,063
84,700 Wachovia Corp. ....................................... 6,876,580
------------
27,526,912
------------
Beverages (2.3%):
133,905 Anheuser-Busch Cos. .................................. 10,201,887
------------
Business Equipment & Services (2.9%):
289,700 Harris Corp. ......................................... 8,292,663
72,300 Pitney Bowes, Inc. ................................... 4,609,125
------------
12,901,788
------------
Chemicals (1.4%):
114,600 Air Products & Chemicals, Inc. ....................... 3,925,050
51,900 Vulcan Materials Co. ................................. 2,144,119
------------
6,069,169
------------
Computer Software (2.6%):
143,000 Adobe Systems, Inc. .................................. 8,115,250
95,000 Computer Associates International, Inc. .............. 3,378,438
------------
11,493,688
------------
Computers (4.8%):
163,000 Hewlett-Packard Co. .................................. 11,053,438
57,400 IBM Corp. ............................................ 10,174,150
------------
21,227,588
------------
Consumer Goods & Services (2.8%):
197,500 American Greetings Corp. ............................. 5,011,563
158,000 Kimberly-Clark Corp. ................................. 7,574,125
------------
12,585,688
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Containers (0.7%):
143,725 Sonoco Products Co. .................................. $ 3,305,675
------------
Electrical Equipment (1.8%):
154,370 Emerson Electric...................................... 8,171,962
------------
Electronic Components (1.3%):
160,600 Avnet, Inc. .......................................... 5,881,975
------------
Electronic Instruments (1.0%):
169,850 Tektronix, Inc. ...................................... 4,288,713
------------
Engineering (0.5%):
77,000 Fluor Corp. .......................................... 2,079,000
------------
Food & Related (5.8%):
232,000 Bob Evans Farms....................................... 4,640,000
105,900 Dean Foods Co. ....................................... 3,772,688
90,000 Dole Food Co. ........................................ 2,677,500
502,400 SUPERVALU, Inc. ...................................... 10,361,999
210,000 Universal Foods Corp. ................................ 4,331,250
------------
25,783,437
------------
Forest & Paper Products (1.5%):
120,900 Weyerhaeuser Co. ..................................... 6,709,950
------------
Household--Major Appliances (0.9%):
74,200 Whirlpool Corp. ...................................... 4,034,625
------------
Household Products/Wares (1.7%):
111,000 Unilever NV, New York Shares.......................... 7,374,563
------------
Insurance (8.0%):
78,000 Aetna Services, Inc. ................................. 6,474,000
75,175 AON Corp. ............................................ 4,754,819
99,700 Lincoln National Corp. ............................... 9,857,837
236,800 SAFECO Corp. ......................................... 9,575,599
163,000 St. Paul Cos., Inc. .................................. 5,063,188
------------
35,725,443
------------
Leisure Time Industries (1.7%):
258,275 Hasbro, Inc. ......................................... 7,473,833
------------
Machinery & Equipment (1.0%):
158,500 Trinity Industries.................................... 4,655,938
------------
Materials (1.1%):
84,700 Corning, Inc. ........................................ 5,082,000
------------
Media (2.6%):
231,000 Banta Corp. .......................................... 4,389,000
151,400 Media General, Inc. .................................. 7,077,950
------------
11,466,950
------------
</TABLE>
Continued
-46-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME STOCK FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Medical Equipment & Supplies (7.0%):
162,000 Bausch & Lomb......................................... $ 10,530,000
138,300 Johnson & Johnson..................................... 12,956,980
291,000 Mallinckrodt, Inc. ................................... 7,747,875
------------
31,234,855
------------
Petroleum (5.7%):
130,000 Ashland, Inc. ........................................ 5,321,875
89,030 Chevron Corp. ........................................ 7,873,591
37,200 Mobil Corp. .......................................... 3,273,600
187,200 Phillips Petroleum Co. ............................... 8,845,200
------------
25,314,266
------------
Petroleum--International (1.1%):
92,600 Royal Dutch Petroleum Co.--NY Shares.................. 4,815,200
------------
Pharmaceuticals (5.6%):
236,000 Abbott Laboratories................................... 11,047,750
149,480 Bristol-Myers Squibb Co. ............................. 9,613,433
80,400 Schering-Plough Corp. ................................ 4,447,125
------------
25,108,308
------------
Publishing (1.2%):
110,000 Houghton Mifflin Co. ................................. 5,156,250
------------
Railroad (0.5%):
56,000 CSX Corp. ............................................ 2,180,500
------------
Retail (1.4%):
162,750 May Department Stores Co. ............................ 6,367,594
------------
Retail--Food Stores (1.1%):
154,000 American Stores Co. .................................. 5,082,000
------------
Security Brokers & Dealers (1.6%):
217,762 Edwards (A.G.), Inc. ................................. 7,118,095
------------
</TABLE>
- ----
* Represents Discount Note.
(a) Represents cost for federal income tax purposes and
differs from value by net unrealized appreciation
of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................... $142,047,449
Unrealized deprecia-
tion................... (14,964,347)
------------
Net unrealized appreci-
ation.................. $127,083,103
============
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Tobacco (1.6%):
94,290 Philip Morris, Inc. .................................. $ 3,317,829
152,600 UST, Inc. ............................................ 3,986,675
------------
7,304,504
------------
Transportation--Marine (0.6%):
131,500 Alexander & Baldwin................................... 2,580,688
------------
Utilities--Electric (2.1%):
116,400 New Century Energies, Inc.(b)......................... 3,964,875
206,000 Western Resources, Inc. .............................. 5,497,625
------------
9,462,500
------------
Utilities--Gas & Pipeline (0.8%):
100,800 NICOR, Inc. .......................................... 3,622,500
------------
Utilities--Telephone (7.2%):
169,415 AT&T Corp. ........................................... 13,521,434
254,400 SBC Communications, Inc. ............................. 11,988,600
68,200 Sprint Corp. ......................................... 6,692,125
------------
32,202,159
------------
Total Common Stocks 434,062,554
------------
U.S. Government Agencies (1.1%):
Federal Home Loan Bank (1.1%):
5,000,000 0.00%, 8/04/99*....................................... 4,918,750
------------
Total U.S. Government Agencies 4,918,750
------------
Investment Companies (1.2%):
5,227,707 Federated Short Term U.S. Government Fund............. 5,227,707
------------
Total Investment Companies 5,227,707
------------
Total Investments (Cost $317,125,908)(a)--99.7% 444,209,011
Other assets in excess of liabilities--0.3% 1,261,119
------------
TOTAL NET ASSETS--100.0% $445,470,130
============
</TABLE>
See notes to financial statements
-47-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (60.3%):
Aerospace/Defense (1.9%):
28,000 Lockheed Martin Corp. ................................ $ 1,055,250
30,000 Parker Hannifin Corp. ................................ 1,027,500
6,000 Raytheon Co.--Class A................................. 346,500
10,000 Raytheon Co.--Class B................................. 586,250
------------
3,015,500
------------
Apparel (0.8%):
28,500 V. F. Corp. .......................................... 1,344,844
------------
Automobiles & Trucks (1.0%):
28,000 Ford Motor Co. ....................................... 1,589,000
------------
Banks (3.9%):
40,000 Bank One Corp. ....................................... 2,202,500
20,000 J.P. Morgan & Co. .................................... 2,467,499
20,000 Wachovia Corp. ....................................... 1,623,750
------------
6,293,749
------------
Beverages (1.7%):
35,000 Anheuser-Busch Cos. .................................. 2,666,563
------------
Business Equipment & Services (1.5%):
60,000 Harris Corp. ......................................... 1,717,500
10,800 Pitney Bowes, Inc. ................................... 688,500
------------
2,406,000
------------
Chemicals (1.1%):
25,000 Air Products & Chemicals, Inc. ....................... 856,250
21,000 Vulcan Materials Co. ................................. 867,563
------------
1,723,813
------------
Chemicals--Plastics (0.3%):
30,000 Schulman (A.), Inc. .................................. 408,750
------------
Computer Software (1.7%):
47,000 Adobe Systems, Inc. .................................. 2,667,250
------------
Computers (3.3%):
30,000 Comdisco, Inc. ....................................... 536,250
26,000 Hewlett-Packard Co. .................................. 1,763,125
17,000 IBM Corp. ............................................ 3,013,250
------------
5,312,625
------------
Containers (0.4%):
30,000 Sonoco Products Co. .................................. 690,000
------------
Diversified Products (0.3%):
7,500 E.I. duPont de Nemours Co. ........................... 435,469
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Electrical & Electronic (0.9%):
20,000 Honeywell, Inc. ...................................... $ 1,516,250
------------
Electrical Equipment (0.7%):
20,000 Emerson Electric ..................................... 1,058,750
------------
Electronic Components (0.8%):
35,000 Avnet, Inc. .......................................... 1,281,875
------------
Electronic Instruments (0.9%):
58,000 Tektronix, Inc. ...................................... 1,464,500
------------
Food & Related (3.2%):
28,000 Dean Foods Co. ....................................... 997,500
26,000 Dole Food Co. ........................................ 773,500
32,000 Sara Lee Corp. ....................................... 792,000
80,000 SUPERVALU, Inc. ...................................... 1,650,000
46,000 Universal Foods Corp. ................................ 948,750
------------
5,161,750
------------
Forest & Paper Products (0.8%):
23,000 Weyerhaeuser Co. ..................................... 1,276,500
------------
Health Care (0.2%):
20,000 Columbia HCA Healthcare Corp. ........................ 378,750
------------
Household--Major Appliances (0.9%):
27,000 Whirlpool Corp. ...................................... 1,468,125
------------
Household Products/Wares (0.4%):
9,500 Unilever NV, New York Shares.......................... 631,156
------------
Insurance (5.4%):
26,000 American General Corp. ............................... 1,832,999
27,500 Cigna Corp. .......................................... 2,304,843
17,000 Lincoln National Corp. ............................... 1,680,875
24,000 SAFECO Corp. ......................................... 970,500
27,000 St. Paul Cos., Inc. .................................. 838,688
29,000 Torchmark Corp. ...................................... 917,125
------------
8,545,030
------------
Machinery & Equipment (1.4%):
30,000 Ingersoll-Rand Co. ................................... 1,488,750
26,000 Trinity Industries.................................... 763,750
------------
2,252,500
------------
Media (0.9%):
16,000 Banta Corp. .......................................... 304,000
14,500 Gannett Co., Inc. .................................... 913,500
5,000 Media General, Inc. .................................. 233,750
------------
1,451,250
------------
</TABLE>
Continued
-48-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Medical Equipment & Supplies (3.0%):
16,750 Bausch & Lomb......................................... $ 1,088,750
22,500 Johnson & Johnson..................................... 2,107,969
63,000 Mallinckrodt, Inc. ................................... 1,677,375
------------
4,874,094
------------
Medical Instruments (0.5%):
21,500 Becton Dickinson & Co. ............................... 823,719
------------
Office Equipment & Services (1.3%):
38,000 Xerox Corp............................................ 2,028,250
------------
Petroleum (3.6%):
34,000 Ashland, Inc.......................................... 1,391,875
12,000 Mobil Corp. .......................................... 1,056,000
32,000 Phillips Petroleum Co................................. 1,512,000
10,000 Schlumberger Ltd...................................... 601,875
21,000 Texaco, Inc. ......................................... 1,191,750
------------
5,753,500
------------
Petroleum--International (0.7%):
23,000 Royal Dutch Petroleum Co.--NY Shares.................. 1,196,000
------------
Pharmaceuticals (3.9%):
49,800 Abbott Laboratories................................... 2,331,263
24,000 Bristol-Myers Squibb Co. ............................. 1,543,500
30,000 Merck & Co., Inc. .................................... 2,405,625
------------
6,280,388
------------
Railroad (0.5%):
22,000 CSX Corp. ............................................ 856,625
------------
Retail (2.2%):
23,000 Dayton Hudson Corp.................................... 1,532,375
49,500 May Department Stores Co.............................. 1,936,688
------------
3,469,063
------------
Retail--Drug Stores (0.4%):
24,000 Rite-Aid Corp......................................... 600,000
------------
Retail--Food Stores (1.2%):
35,000 Albertson's, Inc. .................................... 1,900,938
------------
Security Brokers & Dealers (0.5%):
24,000 Edwards (A.G.), Inc. ................................. 784,500
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Tobacco (1.2%):
32,500 Philip Morris, Inc.................................... $ 1,143,594
30,000 UST, Inc. ............................................ 783,750
------------
1,927,344
------------
Transportation--Marine (0.1%):
10,750 Alexander & Baldwin................................... 210,969
------------
Utilities--Electric (1.2%):
12,000 FPL Group, Inc........................................ 639,000
36,000 Scana Corp. .......................................... 780,750
20,000 Western Resources, Inc................................ 533,750
------------
1,953,500
------------
Utilities--Gas & Pipeline (0.5%):
22,000 NICOR, Inc. .......................................... 790,625
------------
Utilities--Telephone (5.1%):
30,000 AT&T Corp............................................. 2,394,374
35,000 BellSouth Corp........................................ 1,402,188
42,500 SBC Communications, Inc............................... 2,002,813
24,000 Sprint Corp........................................... 2,354,999
------------
8,154,374
------------
Total Common Stocks 96,643,888
------------
Mortgage Securities (2.7%):
Federal Home Loan Mortgage Corp. (1.6%):
486,699 7.50%, 7/1/07, Pool # E00108.......................... 503,884
1,984,115 6.00%, 11/1/28, Pool # C00680......................... 1,929,552
------------
2,433,436
------------
Federal National Mortgage Assoc. (1.1%):
1,053,000 6.50%, 4/1/09, Pool # 250009.......................... 1,067,479
746,517 7.00%, 4/1/24, Pool # 250005.......................... 760,746
------------
1,828,225
------------
Total Mortgage Securities 4,261,661
------------
Pass-through Mortgage Securities (5.8%):
Federal Home Loan Mortgage Corp. (3.8%):
4,575,992 6.00%, 3/1/13, Pool # 1728............................ 4,550,229
1,420,100 6.00%, 6/1/13, Pool # E00553.......................... 1,410,329
------------
5,960,558
------------
</TABLE>
Continued
-49-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Pass-through Mortgage Securities, continued:
Federal National Mortgage Assoc. (2.0%):
1,377,206 6.00%, 6/1/03, Pool # 250581.......................... $ 1,378,060
915,141 6.50%, 1/1/09, Pool # 50974........................... 927,724
947,651 7.00%, 5/1/09, Pool # 250055.......................... 971,636
------------
3,277,420
------------
Total Pass-through Mortgage Securities 9,237,978
------------
U.S. Government Agencies (13.1%):
Federal Farm Credit Bank (1.9%):
3,000,000 5.92%, 12/29/04....................................... 3,046,290
------------
Federal Home Loan Bank (4.4%):
2,000,000 5.13%, 9/15/03........................................ 1,969,100
3,000,000 5.84%, 7/14/08........................................ 2,980,590
2,000,000 5.80%, 9/2/08......................................... 1,989,860
------------
6,939,550
------------
Federal Home Loan Mortgage Corp. (4.3%):
4,000,000 5.00%, 1/15/04........................................ 3,911,520
3,000,000 5.75%, 4/15/08........................................ 2,979,060
------------
6,890,580
------------
Federal National Mortgage Assoc. (2.5%):
4,000,000 6.00%, 5/15/08........................................ 4,044,440
------------
Total U.S. Government Agencies 20,920,860
------------
</TABLE>
- ----
(a) Cost for federal income tax purposes differs from
value by net unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................... $26,831,624
Unrealized deprecia-
tion.................... (4,091,789)
-----------
Net unrealized apprecia-
tion.................... $22,739,835
===========
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
U.S. Treasury Notes (12.2%):
3,000,000 7.88%, 11/15/04....................................... $ 3,370,710
4,000,000 7.50%, 2/15/05........................................ 4,436,440
5,000,000 6.50%, 10/15/06....................................... 5,327,250
4,000,000 6.63%, 5/15/07........................................ 4,313,160
2,000,000 6.13%, 8/15/07........................................ 2,093,880
------------
Total U.S. Treasury Notes 19,541,440
------------
Investment Companies (5.6%):
1,845,702 BB&T U.S. Treasury Money Market Sweep................. 1,845,702
7,128,952 Federated Short Term U.S. Government Fund............. 7,128,952
------------
Total Investment Companies 8,974,654
------------
Total Investments (Cost $136,840,646) (a)--99.7% 159,580,481
Other assets in excess of liabilities--0.3% 460,023
------------
TOTAL NET ASSETS--100.0% $160,040,504
============
</TABLE>
See notes to financial statements
-50-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (95.1%):
Banks (2.0%):
10,500 Mellon Bank Corp. ........................................ $ 738,938
10,000 State Street Corp. ....................................... 821,875
-----------
1,560,813
-----------
Chemicals (1.0%):
22,000 Ecolab, Inc. ............................................. 781,000
-----------
Commercial Services (1.2%):
20,000 Paychex, Inc. ............................................ 948,750
-----------
Computer--Peripherals (1.4%):
10,000 Lexmark Intl Group, Inc.(b)............................... 1,117,500
-----------
Computer Software (6.5%):
20,000 Cisco Systems, Inc.(b).................................... 2,191,250
24,000 Microsoft Corp.(b)........................................ 2,151,000
30,000 Oracle Corporation(b)..................................... 791,250
-----------
5,133,500
-----------
Computers (7.3%):
20,000 Compaq Computer Corp. .................................... 633,750
26,000 Dell Computer Corp.(b).................................... 1,062,750
7,300 EMC Corp. ................................................ 932,575
7,500 Hewlett-Packard Co. ...................................... 508,594
10,500 IBM Corp. ................................................ 1,861,124
7,000 Sun Microsystems, Inc.(b)................................. 874,563
-----------
5,873,356
-----------
Diversified Products (6.9%):
14,000 Colgate-Palmolive Co. .................................... 1,288,000
11,000 E.I. duPont de Nemours Co. ............................... 638,688
17,500 General Electric Co. ..................................... 1,935,937
28,000 Gillette Co. ............................................. 1,664,250
-----------
5,526,875
-----------
Electronic Components (6.0%):
16,000 Intel Corp. .............................................. 1,906,000
13,000 Johnson Controls, Inc. ................................... 810,875
12,000 Kla-Tencor Corp.(b)....................................... 582,750
30,000 Solectron Corp.(b)........................................ 1,456,875
-----------
4,756,500
-----------
Financial Services (3.7%):
7,000 American Express Co. ..................................... 822,500
25,000 Concord EFS, Inc.(b)...................................... 689,063
15,000 Schwab (Charles) Corp. ................................... 1,441,875
-----------
2,953,438
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Household Products/Wares (3.5%):
10,000 Clorox Co. ............................................... $ 1,171,875
16,000 Procter & Gamble Co. ..................................... 1,567,000
-----------
2,738,875
-----------
Insurance (3.3%):
9,000 Aegon N.V. ............................................... 808,875
15,000 American International Group, Inc. ....................... 1,809,375
-----------
2,618,250
-----------
Internet Services (2.8%):
15,000 America Online, Inc. ..................................... 2,190,000
-----------
Machinery & Equipment (0.8%):
10,000 Applied Materials, Inc.(b)................................ 616,875
-----------
Manufacturing (1.4%):
15,000 Tyco International Ltd. .................................. 1,076,250
-----------
Medical Equipment & Supplies (1.8%):
15,000 Johnson & Johnson......................................... 1,405,313
-----------
Medical Instruments (3.8%):
16,000 Guidant Corp. ............................................ 968,000
20,000 Medtronic, Inc. .......................................... 1,435,000
6,000 Minimed, Inc.(b).......................................... 609,750
-----------
3,012,750
-----------
Office Equipment & Services (1.6%):
24,000 Xerox Corp. .............................................. 1,281,000
-----------
Petroleum (2.1%):
12,000 Enron Corp. .............................................. 771,000
10,000 Mobil Corp. .............................................. 880,000
-----------
1,651,000
-----------
Pharmaceuticals (14.1%):
21,700 Abbott Laboratories....................................... 1,015,831
20,000 American Home Products Corp. ............................. 1,305,000
22,000 Bristol-Myers Squibb Co. ................................. 1,414,875
30,000 Jones Pharma, Inc. ....................................... 1,042,500
15,000 Lilly (Eli) & Co. ........................................ 1,273,125
20,600 Merck & Co., Inc. ........................................ 1,651,863
14,300 Pfizer, Inc. ............................................. 1,984,124
28,000 Schering-Plough Corp. .................................... 1,548,750
-----------
11,236,068
-----------
Restaurants (0.6%):
15,000 Outback Steakhouse, Inc.(b)............................... 491,250
-----------
</TABLE>
Continued
-51-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Retail (5.9%):
22,500 Gap, Inc. ................................................ $ 1,514,531
22,000 Wal-Mart Stores, Inc. .................................... 2,028,125
40,000 Walgreen Co. ............................................. 1,130,000
-----------
4,672,656
-----------
Retail--Apparel (0.6%):
10,000 Intimate Brands, Inc. .................................... 481,250
-----------
Retail--General Merchandise (1.0%):
30,000 BJ's Wholesale Club, Inc.(b).............................. 793,125
-----------
Retail--Speciality Stores (3.5%):
32,000 Home Depot, Inc. ......................................... 1,992,000
22,000 TJX Cos., Inc. ........................................... 748,000
-----------
2,740,000
-----------
Telecommunication--Equipment (4.6%):
15,000 Lucent Technologies, Inc. ................................ 1,616,250
10,000 Nokia Corp.--ADR.......................................... 1,557,500
8,000 Plantronics, Inc.(b)...................................... 500,500
-----------
3,674,250
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Transportation Services (1.2%):
10,000 FDX Corp.(b)........................................... $ 928,125
-----------
Utilities--Telephone (6.5%):
34,000 BellSouth Corp. ....................................... 1,362,125
12,000 Century Telephone Enterprise........................... 843,000
20,000 MCI Worldcom, Inc.(b).................................. 1,771,250
27,200 SBC Communications, Inc. .............................. 1,281,800
-----------
5,258,175
-----------
Total Common Stocks 75,516,944
-----------
Investment Companies (4.9%):
1,000,000 BB&T U.S. Treasury Money Market Sweep.................. 1,000,000
2,850,416 Federated Short Term U.S. Government Fund.............. 2,850,416
-----------
Total Investment Companies 3,850,416
-----------
Total Investments
(Cost--$54,980,642) (a)--100.0% 79,367,360
Other assets in excess of liabilities--0.0% 11,958
-----------
TOTAL NET ASSETS--100.0% $79,379,318
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................... $25,455,877
Unrealized deprecia-
tion.................... (1,069,159)
-----------
Net unrealized apprecia-
tion.................... $24,386,718
===========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements
-52-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (92.7%):
Advertising (2.7%):
20,900 Catalina Marketing Corp.(b)........................... $ 1,794,787
19,500 TMP Worldwide, Inc.(b)(c)............................. 1,263,844
------------
3,058,631
------------
Banks (0.4%):
15,100 Investors Financial Services Corp. ................... 434,125
------------
Beverages (0.2%):
8,415 Celestial Seasonings, Inc.(b)......................... 181,974
------------
Collectibles (0.7%):
26,900 Action Performance Cos., Inc.(b)(c)................... 810,363
------------
Commercial Services (5.6%):
13,100 Insurance Management Solutions Group, Inc.(b)......... 117,900
7,400 Kroll-O'Gara Co.(b)................................... 200,725
25,900 Lason, Inc.(b)........................................ 1,456,875
39,400 National Computer Systems, Inc. ...................... 965,300
24,450 NCO Group, Inc.(b).................................... 904,650
21,100 Nielsen Media Research, Inc. ......................... 520,906
27,000 Quanta Services, Inc.(b).............................. 686,813
33,300 Usweb Corp.(b)........................................ 1,373,625
------------
6,226,794
------------
Computer Services (2.0%):
21,600 Affiliated Computer Services, Inc.(b)................. 988,200
15,300 Answerthink Consulting Group(b)(c).................... 428,400
4,500 Factset Research Systems, Inc. ....................... 194,625
30,300 Whittman-Hart, Inc.(b)................................ 651,450
------------
2,262,675
------------
Computer Software (18.2%):
5,600 Bindview Development Corp.(b)......................... 174,300
17,400 Check Point Software Technologies Ltd.(b)............. 748,200
43,800 Clarify, Inc.(b)...................................... 1,168,913
21,700 Concord Communications, Inc.(b)....................... 1,236,900
46,400 CSG Systems International, Inc.(b).................... 1,829,900
12,000 Dendrite International, Inc.(b)....................... 267,750
6,281 Eclipsys, Corp.(b).................................... 132,686
8,000 Great Plains Software, Inc.(b)........................ 309,500
31,742 International Network Services(b)..................... 2,219,955
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Computer Software, continued:
13,700 ISS Group, Inc.(b).................................... $ 1,089,150
44,000 Macromedia, Inc.(b)................................... 1,993,750
46,400 Mercury Interactive Corp.(b).......................... 1,653,000
24,500 New Era of Networks, Inc.(b).......................... 1,659,875
71,600 Peregrine Systems, Inc.(b)............................ 2,407,549
20,300 Performance Systems International(b).................. 864,019
27,300 Progress Software Corp.(b)............................ 931,613
18,650 VERITAS Software Corp.(b)............................. 1,505,988
------------
20,193,048
------------
Educational Services (1.8%):
32,200 Advantage Learning Systems, Inc.(b)................... 1,000,212
1,200 Bright Horizons Family Solutions(b)................... 26,252
20,800 DeVry, Inc.(b)........................................ 603,200
15,350 Sylvan Learning Systems, Inc.(b)...................... 420,206
------------
2,049,870
------------
Electronic Components (9.7%):
28,600 Flextronics International Ltd.(b)..................... 1,458,600
40,300 Mips Technologies, Inc.(b)............................ 2,458,299
20,600 Pmc-Sierra, Inc.(b)................................... 1,466,463
14,800 Power Integrations(b)................................. 469,900
19,200 QLogic Corp.(b)....................................... 1,288,800
9,600 Sandisk Corporation(b)................................ 254,400
2,600 SDL, Inc.(b).......................................... 235,950
1,100 Semtech Corp.(b)...................................... 35,063
40,100 Transwitch Corp.(b)................................... 1,814,524
24,399 Vitesse Semiconductor Corp.(b)........................ 1,235,199
------------
10,717,198
------------
Entertainment (3.3%):
25,100 Championship Auto Racing(b)........................... 731,038
62,000 Cinar Films, Inc.(b).................................. 1,426,000
36,400 Speedway Motorsports, Inc.(b)......................... 1,501,500
------------
3,658,538
------------
Food & Related (0.1%):
10,900 Merkert American Corp.(b)............................. 118,538
------------
Health Care--General (0.5%):
14,300 Healtheon Corp.(b).................................... 608,197
------------
</TABLE>
Continued
-53-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Home Furnishings (0.4%):
15,500 Select Comfort Corp.(b)............................... $ 432,063
------------
Internet Content (1.8%):
5,700 CNET, Inc. (b) (c).................................... 525,113
9,500 Marketwatch.Com, Inc.(b).............................. 701,813
22,000 Ziff-Davis, Inc.(b)................................... 791,999
------------
2,018,925
------------
Internet Services (11.2%):
9,600 Abovenet Communications, Inc.(b)...................... 1,256,400
19,000 Concentric Network Corp.(b)........................... 1,420,250
2,400 Critical Path, Inc.(b)................................ 184,800
4,500 Doubleclick, Inc.(b)(c)............................... 819,281
11,100 Earthlink Network, Inc.(b)............................ 666,000
5,100 Excite, Inc.(b)....................................... 714,000
20,800 Infoseek Corp.(b)..................................... 1,539,200
10,200 Inktomi Corp.(b)...................................... 874,650
8,000 Intervu, Inc.(b)...................................... 355,000
8,300 Mindspring Enterprises, Inc.(b)....................... 714,319
8,000 Verio, Inc.(b)........................................ 369,000
18,000 Verisign, Inc.(b)..................................... 2,771,999
8,400 Vignette Corp.(b)..................................... 632,100
------------
12,316,999
------------
Machinery & Equipment (1.1%):
17,400 Advanced Energy Industries(b)......................... 409,987
14,800 Brooks Automation, Inc.(b)............................ 331,150
18,092 Helix Technology Corp. ............................... 278,165
11,000 PRI Automation, Inc.(b)............................... 231,000
------------
1,250,302
------------
Medical--Biotechnology (1.2%):
33,000 Millennium Pharmaceuticals, Inc.(b)................... 1,031,249
23,800 Serologicals Corp.(b)................................. 322,788
1 Sonosight, Inc.(b).................................... 14
------------
1,354,051
------------
Medical--Hospital Management & Services (2.2%):
45,700 Medquist, Inc.(b)..................................... 1,371,000
53,450 Renal Care Group, Inc.(b)............................. 1,048,956
------------
2,419,956
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Medical Equipment & Supplies (0.4%):
15,000 Hanger Orthopedic Group, Inc.(b)...................... $ 202,500
6,100 Perclose, Inc.(b)..................................... 189,100
------------
391,600
------------
Medical Instruments (2.5%):
10,700 Minimed, Inc.(b)...................................... 1,087,387
19,500 Osteotech, Inc.(b).................................... 670,313
24,250 Patterson Dental Co.(b)............................... 1,048,813
------------
2,806,513
------------
Petroleum (0.5%):
10,600 Atwood Oceanics, Inc.(b).............................. 318,000
15,600 Core Laboratories N.V.(b)............................. 273,975
------------
591,975
------------
Pharmaceuticals (3.5%):
31,000 Alkermes, Inc.(b)..................................... 844,750
2,300 Andrx Corp.(b)........................................ 209,588
64,700 Catalytica, Inc.(b)................................... 711,700
34,800 Coulter Pharmaceutical, Inc.(b)....................... 756,900
59,000 Shire Pharmaceuticals Group PLC(b).................... 1,345,937
------------
3,868,875
------------
Product Manufacturing : Auto Parts (0.7%):
35,800 Gentex Corporation(b)................................. 771,938
------------
Radio (0.5%):
16,100 Entercom Communications Corp.(b)...................... 569,538
------------
Restaurants (1.0%):
24,725 Papa John's International, Inc.(b).................... 1,090,991
------------
Retail--Apparel (4.0%):
38,400 AnnTaylor Stores Corp.(b)(c).......................... 1,696,800
33,900 Children's Place(b)................................... 913,181
14,400 dELiA*s, Inc.(b)...................................... 453,600
41,000 Pacific Sunwear of California(b)...................... 1,424,750
------------
4,488,331
------------
Retail--General Merchandise (0.5%):
18,000 Cost Plus, Inc.(b).................................... 528,750
------------
Retail--Other Specialty (0.7%):
27,200 CSK Auto Corp.(b)..................................... 814,300
------------
</TABLE>
Continued
-54-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Retail--Speciality Stores (3.7%):
38,400 Claire's Stores, Inc. ................................ $ 1,156,800
57,500 Linens 'N Things, Inc.(b)............................. 2,609,063
11,300 Tweeter Home Entertainment Group, Inc.(b)............. 364,425
------------
4,130,288
------------
Retail--Video (0.2%):
12,700 Hollywood Entertainment Corp.(b)...................... 236,538
------------
Retirement/Aged Care (1.1%):
27,600 Sunrise Assisted Living, Inc.(b)(c)................... 1,257,525
------------
Software & Computer Services (0.2%):
6,883 Business Objects, Inc.(b)............................. 204,339
------------
Telecommunication--Equipment (7.8%):
25,500 Aware, Inc.(b)........................................ 1,198,500
34,900 Carrier Access Corp. ................................. 2,698,206
3,900 Com21, Inc. .......................................... 102,375
57,900 Metromedia Fiber Network(b)........................... 2,999,943
34,000 Pinnacle Holdings, Inc.(b)............................ 514,250
9,600 RF Micro Devices, Inc.(b)............................. 918,600
6,000 Terayon Communication Systems, Inc. .................. 240,000
------------
8,671,874
------------
Telecommunications (2.0%):
41,600 Geotel Communications Corp.(b)........................ 1,908,400
4,800 ITC Deltacom, Inc.(b)................................. 104,700
9,000 Powerwave Technologies, Inc. ......................... 255,375
------------
2,268,475
------------
Veterinary Diagnostics & Drugs (0.1%):
7,400 Veterinary Centers Of America, Inc.(b)................ 104,525
------------
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and
differs from value by net unrealized appreciation
of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................... $33,662,499
Unrealized deprecia-
tion.................... (3,231,305)
-----------
Net unrealized apprecia-
tion.................... $30,431,194
===========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at
March 31, 1999
PLC--Public Limited Company
Open Futures Contracts
<TABLE>
<CAPTION>
Number of Contract Expiration Unrealized
Contracts Value Date Gain/Loss
--------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Standard & Poor's 500 Stock Index
Futures............................ 19 $6,273,800 6/18/99 $(130,625)
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Wholesale Distribution (0.2%):
4,900 Aviation Sales Co.(b)............................... $ 218,050
------------
Total Common Stocks 103,126,672
------------
Pass-through Mortgage Securities (0.6%):
Federal Home Loan Mortgage Corp. (0.6%):
700,000 4/14/99............................................. 698,803
------------
Total Pass-through Mortgage Securities 698,803
------------
U.S. Government Agencies (9.1%):
Federal Home Loan Mortgage Corp. (9.1%):
10,130,000 4.82%, 4/1/99....................................... 10,128,644
------------
Total U.S. Government Agencies 10,128,644
------------
Short Term Securities Held as Collateral (6.0%):
Commercial Paper (2.7%):
3,000,000 IMC Global, 5.25%, 4/1/99........................... 2,999,562
------------
Repurchase Agreements (3.3%):
3,642,640 Lehman Brothers Triparty Agreement, 5.125%, 4/1/99,
(See Significant Accounting Policies, Lending
Portfolio Securities in the Notes to Financial
Statements for collateral description).............. 3,642,640
------------
Total Short Term Securities Held as Collateral 6,642,202
------------
Total Investments
(Cost $90,165,127)(a)--108.4% 120,596,321
Liabilities in excess of other assets--(8.4)% (9,299,153)
------------
TOTAL NET ASSETS--100.0% $111,297,168
============
</TABLE>
See notes to financial statements
-55-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (97.0%):
Australia (1.1%):
Banks (0.3%):
17,000 National Australia Bank Ltd. ............................ $ 307,571
-----------
Food & Related (0.2%):
150,000 Goodman Fielder Ltd. .................................... 154,686
-----------
Metals--Diversified (0.2%):
120,000 North Ltd. .............................................. 190,207
-----------
Publishing (0.2%):
74,000 John Fairfax Holdings Ltd. .............................. 182,251
-----------
Telecommunications (0.2%):
37,000 Telstra Corporation Ltd. ................................ 192,882
-----------
1,027,597
-----------
Denmark (0.6%):
Telecommunications (0.6%):
5,000 Tele Danmark............................................. 495,313
-----------
Finland (0.9%):
Communication Equipment (0.9%):
5,000 Nokia Oyj................................................ 804,830
-----------
France (10.9%):
Banks (0.6%):
4,150 Dexia France............................................. 580,195
-----------
Building & Construction (1.0%):
10,000 Lafarge SA............................................... 901,452
-----------
Communication Equipment (0.5%):
5,300 France Telecom SA(b)..................................... 428,562
-----------
Diversified Products (2.4%):
5,700 Suez Lyonnaise des Eaux.................................. 1,054,733
4,000 Vivendi (Ex-Generale des Eaux)........................... 984,148
-----------
2,038,881
-----------
Energy (0.8%):
5,200 FRF ELF Aquitaine........................................ 706,220
-----------
Food & Related (1.1%):
4,000 Groupe Danone............................................ 1,006,604
-----------
Insurance--Multiline (1.4%):
9,450 Axa...................................................... 1,252,814
-----------
Petroleum (1.5%):
11,250 Total SA-B............................................... 1,385,781
-----------
Technology (0.3%):
11,440 S.O.I.T.E.C.(b).......................................... 293,693
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
France, continued:
Telecommunications (1.3%):
10,000 FRF Alcatel.............................................. $ 1,149,757
-----------
9,743,959
-----------
Germany (6.7%):
Automobiles & Trucks (2.3%):
10,500 Daimlerchrysler AG....................................... 913,652
26,000 Edscha AG(b)............................................. 364,899
30,000 Man AG................................................... 840,456
-----------
2,119,007
-----------
Chemicals (0.5%):
9,800 Hoechst AG............................................... 424,784
-----------
Diversified Products (1.5%):
8,000 Siemens AG............................................... 534,610
15,000 VEBA AG.................................................. 788,636
-----------
1,323,246
-----------
Insurance--Property & Casualty (1.0%):
2,875 Allianz AG............................................... 875,272
-----------
Machinery & Equipment (1.4%):
8,000 GEA AG................................................... 175,324
8,300 Mannesmann AG............................................ 1,060,033
-----------
1,235,357
-----------
5,977,666
-----------
Great Britain (22.5%):
Aerospace/Defense (0.6%):
78,000 British Aerospace PLC.................................... 520,975
-----------
Banks (3.9%):
34,000 Abbey National PLC....................................... 706,386
19,500 Barclays PLC............................................. 566,935
12,000 GBP National Westminster Bank............................ 278,951
40,000 Halifax PLC.............................................. 496,559
19,000 HSBC Holdings PLC........................................ 614,048
58,000 Lloyds TSB Group PLC..................................... 884,798
-----------
3,547,677
-----------
Building & Construction (0.3%):
140,000 Bryant Group PLC......................................... 281,373
-----------
Communication Equipment (1.6%):
85,000 British Telecommunications PLC........................... 1,396,855
-----------
</TABLE>
Continued
-56-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Great Britain, continued:
Diversified Products (1.2%):
58,000 General Electric Co. PLC................................. $ 527,134
28,000 Granada Group PLC........................................ 573,142
-----------
1,100,276
-----------
Food & Related (1.7%):
185,000 Asda Group PLC........................................... 453,942
32,000 Cadbury Schweppes PLC.................................... 466,985
51,000 Diageo PLC............................................... 575,894
-----------
1,496,821
-----------
Hotel Management & Related Services (0.3%):
100,000 Jarvis Hotels PLC........................................ 246,988
-----------
Household--General Products (0.2%):
215,000 Limelight Group PLC(b)................................... 164,861
-----------
Insurance--Life (1.6%):
50,000 Norwich Union PLC........................................ 346,671
35,000 Prudential Corp. PLC..................................... 459,067
66,000 Royal & Sun Alliance Insurance Group PLC................. 624,347
-----------
1,430,085
-----------
Petroleum (2.1%):
113,000 British Petroleum Co. PLC................................ 1,926,313
-----------
Pharmaceuticals (3.6%):
47,000 Glaxo Wellcome PLC....................................... 1,572,829
80,000 SmithKline Beecham PLC................................... 1,170,691
13,000 Zeneca Group PLC......................................... 614,048
-----------
3,357,568
-----------
Real Estate (0.4%):
24,000 Land Securities PLC...................................... 317,501
-----------
Restaurants (0.4%):
25,948 Whitbread PLC............................................ 402,124
-----------
Retail--General Merchandise (0.9%):
16,500 Boots Co. PLC............................................ 237,992
42,000 Kingfisher PLC........................................... 530,541
-----------
768,533
-----------
Telecommunications (1.4%):
23,000 Cable & Wireless PLC..................................... 288,492
50,000 Vodafone Group PLC....................................... 933,873
-----------
1,222,365
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Great Britain, continued:
Transportation (0.6%):
36,000 Peninsular and Oriential Steam Navigation Co. ......... $ 525,939
-----------
Utilities--Electric (0.5%):
53,000 Scottish & Southern Energy PLC......................... 481,264
-----------
Utilities--Gas (0.8%):
117,000 BG PLC................................................. 691,748
-----------
Utilities--Water (0.4%):
47,000 Yorkshire Water PLC.................................... 338,011
-----------
20,217,277
-----------
Greece (0.5%):
Banks (0.5%):
32,000 National Bank of Greece GDR(b)......................... 425,600
-----------
Hong Kong (1.7%):
Banks (0.3%):
85,000 Dao Heng Bank Group Ltd. .............................. 280,791
-----------
Diversified Products (0.4%):
42,000 Hutchison Whampoa...................................... 330,600
-----------
Household--General Products (0.3%):
315,000 Guangdong Kelon Electrical Holdings.................... 231,691
-----------
Machinery & Equipment (0.1%):
640,000 First Tractor Co. ..................................... 121,401
-----------
Publishing (0.2%):
364,000 South China Morning Post............................... 201,973
-----------
Utilities--Electric (0.4%):
128,000 Hongkong Electric Holdings............................. 387,325
-----------
1,553,781
-----------
Hungary (0.5%):
Utilities--Telephone (0.5%):
15,500 Matav Rt-Sponsored ADR................................. 414,625
-----------
Indionesia (0.7%):
Diversified Products (0.1%):
1,071,000 Astra International.................................... 95,680
-----------
Forest Products--Paper (0.1%):
332,000 Indah Kiat Pulp & Paper................................ 93,764
-----------
Telecommunications (0.4%):
930,000 Telekomunikasi......................................... 302,851
-----------
</TABLE>
Continued
-57-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Indonesia, continued:
Tobacco (0.1%):
73,000 Gudang Garam............................................. $ 96,983
-----------
589,278
-----------
Italy (6.3%):
Banks (1.5%):
80,000 Banca Nazionale Lavoro Ord.(b)........................... 279,828
200,000 Credito Italiano SpA..................................... 1,079,584
-----------
1,359,412
-----------
Insurance--Multiline (1.2%):
370,000 Instituto Naztionale Delle Assicurazioni................. 1,118,449
-----------
Petroleum (1.1%):
150,000 ENI SpA.................................................. 955,432
-----------
Telecommunications (2.5%):
80,000 Telecom Italia Mobile SpA................................ 538,065
155,000 Telecom Italia SpA....................................... 1,646,580
-----------
2,184,645
-----------
5,617,938
-----------
Japan (21.3%):
Automobiles & Trucks (1.5%):
13,000 Honda Motor Co. Ltd. .................................... 587,267
38,000 Suzuki Motor Corp. ...................................... 504,078
9,000 Toyota Motor Corp. ...................................... 260,660
-----------
1,352,005
-----------
Banks (3.2%):
148,000 Daiwa Securities Co. Ltd. ............................... 793,548
91,000 Industrial Bank Of Japan................................. 614,709
65,000 Sanwa Bank Ltd. ......................................... 705,269
58,000 Sumitomo Trust & Banking................................. 785,054
-----------
2,898,580
-----------
Building & Construction (0.8%):
130,000 Nishimatsu Construction.................................. 684,961
-----------
Chemicals--Petroleum & Inorganic (1.4%):
84,000 Sekisui Chemical Co. .................................... 597,923
25,000 Shin-Etsu Chemical Co. Ltd. ............................. 656,505
-----------
1,254,428
-----------
Cosmetics & Toiletries (0.4%):
28,000 Shiseido Co. Ltd. ....................................... 387,739
-----------
Data Processing (0.7%):
60,000 Ricoh Co. Ltd. .......................................... 626,699
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Japan, continued:
Electrical Equipment (1.2%):
39,000 Matsushita Electric Industrial Co. Ltd. ................. $ 760,702
3,000 Sony Corp. .............................................. 277,379
-----------
1,038,081
-----------
Electronic Components (1.9%):
80,000 Hitachi Ltd. ............................................ 592,417
9,500 Mabuchi Motor Co. Ltd. .................................. 707,507
56,000 Toshiba Corp. ........................................... 382,538
-----------
1,682,462
-----------
Industrial Hardware (0.4%):
71,000 NSK Ltd. ................................................ 329,731
-----------
Insurance--Property & Casualty (1.0%):
142,000 Sumitomo Marine & Fire................................... 908,857
-----------
Manufacturing (0.7%):
142,000 Mitsubishi Heavy Industries, Ltd. ....................... 641,476
-----------
Metals--Diversified (0.3%):
40,000 Tsubaki Nakashima Co. Ltd. .............................. 268,513
-----------
Pharmaceuticals (0.8%):
35,000 Eisai Co. Ltd. .......................................... 731,445
-----------
Photographic Equipment (0.8%):
20,000 Fuji Photo Film.......................................... 756,565
-----------
Real Estate (0.9%):
94,000 Mitsui Fudosan........................................... 846,897
-----------
Retail--General Merchandise (0.8%):
11,000 ITO-Yokado Co. Ltd. ..................................... 707,760
-----------
Telecommunications (1.2%):
83 NTT Corp. ............................................... 812,970
5 NTT Mobile Communications................................ 246,981
-----------
1,059,951
-----------
Textiles (1.6%):
72,000 Kuraray Co. Ltd. ........................................ 781,221
162,000 Teijin Ltd. ............................................. 653,854
-----------
1,435,075
-----------
Tire & Rubber Products (1.0%):
35,000 Bridgestone Corp. ....................................... 892,510
-----------
Toys/Games/Hobbies (0.7%):
6,800 Nintendo Company Ltd. ................................... 586,811
-----------
19,090,546
-----------
</TABLE>
Continued
-58-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Netherlands (7.3%):
Banks (0.9%):
14,000 ING Grouep N.V. ......................................... $ 771,578
-----------
Business Services (0.6%):
22,641 Vedior N.V. ............................................. 524,299
-----------
Computer Hardware (1.0%):
11,500 Equant N.V.(b)........................................... 874,031
-----------
Electronic Components (1.3%):
14,000 Philips Electronics...................................... 1,140,364
-----------
Food & Related (1.2%):
30,000 Ahold N.V. .............................................. 1,149,757
-----------
Publishing (1.2%):
30,000 VNU-Verenigde Nederalndse Uitgeversbedrijven............. 1,169,189
-----------
Retail--General Merchandise (0.6%):
8,400 Laurus N.V. ............................................. 204,041
12,000 Vendex N.V. ............................................. 289,545
-----------
493,586
-----------
Technology (0.5%):
28,000 Seagull Holding Co.(b)................................... 415,640
-----------
6,538,444
-----------
Norway (0.2%):
Petroleum (0.2%):
14,100 Petroleum Geo-Services(b)................................ 215,275
-----------
Peru (0.4%):
Telecommunications (0.4%):
26,200 Telefonica del Peru ADR.................................. 334,050
-----------
Philippines (0.6%):
Banks (0.3%):
27,000 Metropolitan Bank & Trust................................ 214,258
-----------
Food & Related (0.1%):
66,000 San Miguel Corp. Class B................................. 109,858
-----------
Multi-Media (0.1%):
500,000 Benpres Holdings Corp.(b)................................ 77,419
-----------
Utilities--Telephone (0.1%):
5,000 Philippine Long Distance Telephone....................... 131,613
-----------
533,148
-----------
Poland (0.6%):
Banks (0.6%):
45,400 Bank Handlowy Warszawie GDR.............................. 534,453
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Republic of Ireland (Eire) (0.8%):
Banks (0.8%):
36,000 Bank of Ireland.......................................... $ 751,134
-----------
Singapore (3.1%):
Airlines (0.3%):
41,000 Singapore Airlines Ltd. ................................. 296,502
-----------
Banks (0.9%):
65,000 Development Bank of Singapore Ltd. ...................... 492,628
52,000 United Overseas Bank Ltd.(b)............................. 324,908
-----------
817,536
-----------
Electrical Equipment (0.4%):
220,000 GP Batteries International............................... 322,015
-----------
Publishing (0.7%):
59,987 Singapore Press Holdings................................. 662,863
-----------
Telecommunications (0.8%):
482,000 Singapore Telecommunications............................. 685,986
-----------
2,784,902
-----------
South Africa (0.5%):
Financial--Investment Companies (0.5%):
12,000 Anglo American Corp. SA.................................. 415,196
-----------
South Korea (0.9%):
Banks (0.9%):
40,000 Housing & Commercial Bank GDR............................ 798,696
-----------
Spain (2.4%):
Banks (1.0%):
38,500 Argentaria Corp. Bancaria De Espana SA................... 925,214
-----------
Communication Equipment (1.0%):
20,950 Telefonica de Espana..................................... 888,633
-----------
Utilities--Electric (0.4%):
15,000 Endesa SA................................................ 378,610
-----------
2,192,457
-----------
Switzerland (4.4%):
Banks (1.4%):
2,500 Credit Suisse Group--Registered.......................... 466,170
2,600 UBS AG--Registered(b).................................... 816,812
-----------
1,282,982
-----------
Food & Related (0.8%):
415 Nestle SA--Registered.................................... 753,936
-----------
</TABLE>
Continued
-59-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Switzerland, continued:
Pharmaceuticals (2.2%):
450 Novartis AG.............................................. $ 729,962
95 Roche Holding AG--Genussshein............................ 1,158,500
-----------
1,888,462
-----------
3,925,380
-----------
Taiwan (0.5%):
Insurance--Property & Casualty (0.2%):
22,000 Fubon Insurance Co Ltd. GDR(b)(b)........................ 204,600
-----------
Technology (0.3%):
34,000 Acer Inc.--GDR(b)........................................ 208,250
-----------
412,850
-----------
Thailand (1.6%):
Banks (0.4%):
207,000 Bangkok Bank--FOR REG.................................... 424,304
-----------
Building & Construction (0.4%):
17,000 Siam Cement Co. Ltd...................................... 343,937
-----------
Energy (0.2%):
16,600 PTT Exploration & Prod--Foreign.......................... 129,035
6,400 PTT Exploration & Production--Local...................... 50,089
-----------
179,124
-----------
Real Estate (0.2%):
490,000 Golden Land Property..................................... 156,529
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Thailand, continued:
Transportation (0.4%):
500,000 Bangkok Expressway Public Co.(b)....................... $ 359,377
-----------
1,463,271
-----------
Total Common Stocks 86,857,666
-----------
Preferred Stocks (0.6%):
Germany (0.6%):
Machinery & Equipment (0.6%):
28,000 GEA AG................................................. 559,224
-----------
Total Preferred Stocks 559,224
-----------
Warrants and Rights (0.0%):
France (0.0%):
Diversified Products (0.0%):
4,000 Vivendi (Ex-Generale des Eaux)(b)...................... 9,846
-----------
Total Warrants and Rights 9,846
-----------
Cash Sweep (2.1%):
1,875,665 Bank of New York, Brussels Cash Account................ 1,875,665
-----------
Total Cash Sweep 1,875,665
-----------
Total Investments (Cost $81,153,153)(a)--99.7% 89,302,401
Other assets in excess of liabilities--0.3% 234,595
-----------
TOTAL NET ASSETS--100.0% $89,536,996
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................... $12,722,510
Unrealized deprecia-
tion.................... (4,573,262)
-----------
Net unrealized apprecia-
tion.................... $ 8,149,248
===========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt.
AG--Aktiengesellschaft (German Stock Co.).
GDR--Global Depository Reciept.
NV--Naamloze Vennootschap (Dutch Corp.)
PLC--Public Limited Company.
SA--Societe Anonyme (French Corp.).
SpA--Societa per Azioni (Italian Corp.).
At March 31, 1999, the International Equity Fund's open forward foreign
currency exchange contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Contract Market Appreciation/
Currency Date Price** Amount Value Value (Depreciation)
- -------- -------- ---------- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Short Contracts:
Japanese Yen........... 8/23/99 116.947879 184,666,739 $1,579,052 $1,586,301 $(7,249)
</TABLE>
** Contract Price is in local currency.
See notes to financial statements
-60-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------ -----------
<C> <S> <C>
Investment Companies (100.4%):
459,509 BB&T Balanced Fund.................................... $ 6,359,610
191,808 BB&T Growth and Income Stock Fund..................... 3,767,118
703,695 BB&T Intermediate U.S. Government Bond Fund........... 7,072,131
168,832 BB&T International Equity Fund........................ 1,934,814
139,296 BB&T Large Company Growth Fund........................ 1,653,446
819,327 BB&T Short-Intermediate U.S. Government Income Fund... 8,062,181
74,214 BB&T Small Company Growth Fund(b)..................... 1,665,373
2,125,480 BB&T U.S. Treasury Money Market Fund.................. 2,125,480
-----------
Total Investment Companies 32,640,153
-----------
Total Investments (Cost $32,371,137)(a)--100.4% 32,640,153
Liabilities in excess of other assets--(0.4)% (143,858)
-----------
TOTAL NET ASSETS--100.0% $32,496,295
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and
differs from value by net unrealized appreciation
of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $363,006
Unrealized depreciation.... (93,990)
--------
Net unrealized apprecia-
tion....................... $269,016
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements
-61-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------ -----------
<C> <S> <C>
Investment Companies (100.2%):
86,798 BB&T Balanced Fund.................................... $ 1,201,283
434,293 BB&T Growth and Income Stock Fund..................... 8,529,515
314,253 BB&T Intermediate U.S. Government Bond Fund........... 3,158,242
255,151 BB&T International Equity Fund........................ 2,924,035
314,392 BB&T Large Company Growth Fund........................ 3,731,830
123,822 BB&T Short-Intermediate U.S. Government Income Fund... 1,218,404
100,938 BB&T Small Company Growth Fund(b)..................... 2,265,050
1,243,036 BB&T U.S. Treasury Money Market Fund.................. 1,243,036
-----------
Total Investment Companies..................................... 24,271,395
-----------
Total Investments
(Cost $23,755,324)(a)--100.2%.................................. 24,271,395
Liabilities in excess of other assets--(0.2)%.................. (43,421)
-----------
TOTAL NET ASSETS--100.0%....................................... $24,227,974
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and
differs from value by net unrealized appreciation
of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.. $ 750,207
Unrealized depreciation.. (234,136)
---------
Net unrealized apprecia-
tion..................... $ 516,071
=========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements
-62-
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<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER MODERATE GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -----------
<C> <S> <C>
Investment Companies (100.3%):
281,491 BB&T Balanced Fund..................................... $ 3,895,835
313,244 BB&T Growth and Income Stock Fund...................... 6,152,103
365,762 BB&T Intermediate U.S. Government Bond Fund............ 3,675,905
229,845 BB&T International Equity Fund......................... 2,634,029
226,805 BB&T Large Company Growth Fund......................... 2,692,174
401,537 BB&T Short-Intermediate U.S. Government Income Fund.... 3,951,124
84,859 BB&T Small Company Growth Fund(b)...................... 1,904,241
1,394,956 BB&T U.S. Treasury Money Market Fund................... 1,394,956
-----------
Total Investment Companies 26,300,367
-----------
Total Investments (Cost $25,827,367)(a)--100.3% 26,300,367
Liabilities in excess of other assets--(0.3)% (71,830)
-----------
TOTAL NET ASSETS--100.0% $26,228,537
===========
</TABLE>
- ----
(a) Represents cost for federal income tax purposes and
differs from value by net unrealized appreciation
of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.. $ 608,298
Unrealized depreciation.. (135,298)
---------
Net unrealized apprecia-
tion..................... $ 473,000
=========
</TABLE>
(b) Represents non-income producing securities.
Seed notes to financial statements
-63-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements
March 31, 1999
(Unaudited)
1. Organization:
The BB&T Mutual Funds Group ("The Group") commenced operations on October 5,
1992 and is registered under the Investment Company Act of 1940, as amended
("the 1940 Act"), as a diversified, open-end investment company established
as a Massachusetts business trust.
The Group is authorized to issue an unlimited number of shares without par
value. The Group offers shares of the Prime Money Market Fund, the U.S.
Treasury Money Market Fund, the Short-Intermediate U.S. Government Income
Fund, the Intermediate U.S. Government Bond Fund, the North Carolina
Intermediate Tax-Free Fund, the South Carolina Intermediate Tax-Free Fund,
the Growth and Income Stock Fund, the Balanced Fund, the Large Company Growth
Fund, the Small Company Growth Fund, the International Equity Fund, the
Capital Manager Conservative Growth Fund, the Capital Manager Moderate Growth
Fund, and the Capital Manager Growth Fund (referred to individually as a
"Fund" and collectively as the "Funds"). The Capital Manager Conservative
Growth Fund, the Capital Manager Moderate Growth Fund, and the Capital
Manager Growth Fund are referred to as the "Funds of Funds". The Fund offers
up to three classes of shares: Class A Shares, Class B Shares, and Trust
Shares. Class B Shares are currently only offered in the Prime Money Market
Fund, the U.S. Treasury Money Market Fund, the Intermediate U.S. Government
Bond Fund, the Growth and Income Stock Fund, the Balanced Fund, the Large
Company Growth Fund, the Small Company Growth Fund, the International Equity
Fund, the Capital Manager Conservative Growth Fund, the Capital Manager
Moderate Growth Fund, and the Capital Manager Growth Fund. Class A Shares are
offered with a front-end sales charge. Class B Shares are offered subject to
a contingent deferred sales charge which varies based on the length of time
Class B Shares are held. The contingent deferred sales charges are as
follows:
<TABLE>
<CAPTION>
Years Since
Purchase Percent
----------- -------
<S> <C>
0-1 5.00%
1-2 4.00%
2-4 3.00%
4-5 2.00%
5-6 1.00%
6 or more none
</TABLE>
Each class of shares has identical rights and privileges except with respect
to the distribution fees borne by the Class A Shares and Class B Shares,
expenses allocable exclusively to each class of shares, voting rights on
matters affecting a single class of shares and the exchange privilege of each
class of shares. Sales of shares of the Group may be made to customers of
Branch Banking & Trust Company ("BB&T") and its affiliates, to all accounts
of correspondent banks of BB&T and to the general public. BB&T serves as
investment advisor to the Group.
The Prime Money Market and the U.S. Treasury Money Market Fund (the "money
market funds") seek current income with liquidity and stability of principal.
The Short-Intermediate U.S. Government Income Fund and the Intermediate U.S.
Government Bond Fund seek current income consistent with the preservation of
Continued
-64-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
capital through investment in obligations issued or guaranteed by the U.S.
Government or its agencies or instrumentalities. The North Carolina
Intermediate Tax-Free Fund and the South Carolina Intermediate Tax-Free Fund
seek to produce a high level of current interest income that is exempt from
both federal and North and South Carolina state income tax, respectively. The
Growth and Income Stock Fund seeks capital growth, current income or both.
The Balanced Fund seeks long-term capital growth and current income. The
Large Company Growth Fund and the Small Company Growth Fund seek long-term
capital appreciation through investments primarily in equity securities of
growth companies. The International Equity Fund seeks long-term capital
appreciation through investments primarily in equity securities of foreign
issuers. The Capital Manager Conservative Growth Fund seeks capital
appreciation and income by investing primarily in a group of diversified BB&T
mutual funds which invest primarily in equity and fixed income securities.
The Capital Manager Moderate Growth Fund seeks capital appreciation, and
secondarily, income by investing primarily in a group of diversified BB&T
mutual funds which invest primarily in equity and fixed income securities.
The Capital Manager Growth Fund seeks capital appreciation by investing
primarily in a group of diversified BB&T mutual funds which invest primarily
in equity securities.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Group in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
Securities Valuation:
Investments of the money market funds are valued at amortized cost, which
approximates market value. Under the amortized cost method, discount or
premium is amortized on a constant basis to the maturity of the security.
Investments in common stocks, commercial paper, corporate bonds, municipal
securities, U.S. Government securities, and U.S. Government agency securities
of the Funds, excluding the money markets, are valued at their market values
determined on the latest available bid prices in the principal market
(closing sales prices if the principal market is an exchange) in which such
securities are normally traded. The Funds, excluding the money market funds,
may also use an independent pricing service approved by the Board of Trustees
to value certain securities. Such prices reflect market values which may be
established through the use of electronic and matrix techniques. Investments
in investment companies are valued at their respective net asset values as
reported by such companies. The differences between cost and market values of
investments are reflected as unrealized appreciation or depreciation.
Foreign Currency Translation:
The market value of investment securities, other assets and liabilities of
the International Equity Fund denominated in a foreign currency are
translated into U.S. dollars at the current exchange rate. Purchases and
Continued
-65-
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<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
sales of securities, income receipts and expense payments are translated into
U.S. dollars at the exchange rate on the dates of the transactions.
The International Equity Fund does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on investments
from the fluctuation arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gains or losses from investments.
Realized foreign exchange gains or losses arise from sales and maturities of
foreign securities, sales of foreign currencies, currency exchange
fluctuations between the trade and settlement dates on securities
transactions, and the difference between the amount of assets and liabilities
recorded and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in
the value of assets and liabilities, including investments in securities,
resulting from changes in exchange rates.
Forward Foreign Currency Exchange Contracts:
The International Equity Fund may enter into forward foreign currency
exchange contracts. The purpose of these contracts is to hedge against
fluctuation in the value of the underlying currency of certain portfolio
investments. A forward foreign currency exchange contract is an agreement to
purchase or sell a specified currency at a specified price on a future date.
Risks associated with the contract include changes in the value of the
foreign currency relative to the U.S. dollar and/or the counterparty's
potential inability to perform under the contract.
The forward foreign currency exchange contracts are valued daily using the
current exchange rate of the underlying currency with any fluctuations
recorded as unrealized gains or losses. Realized gains or losses are
recognized when entering a closing or offsetting forward foreign currency
contract with the same settlement date and broker.
Risks Associated with Foreign Securities and Currencies:
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of domestic issuers.
Such risks include future political and economic developments, and the
possible imposition of exchange controls or other foreign governmental laws
and restrictions. In addition, with respect to certain countries, there is
the possibility of expropriation of assets, confiscatory taxation, political
or social instability or diplomatic developments which could adversely affect
investments in those countries.
Certain countries may also impose substantial restrictions on investments in
their capital markets by foreign entities, including restrictions on
investments in issuers of industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available in
the International Equity Fund and result in a lack of liquidity and a high
price volatility with respect to securities of issuers from developing
countries.
Continued
-66-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
Securities Transactions and Related Income:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization/accretion of
premium or discount. Dividend income is recorded on the ex-dividend date.
Gains or losses realized from sales of securities are determined by comparing
the identified cost of the security lot sold with the net sales proceeds.
When-Issued and Forward Commitments:
The Funds, with the exception of the U.S. Treasury Money Market Fund, may
purchase securities on a "when-issued" basis. The Prime Money Market Fund,
the Large Company Growth Fund, the Small Company Growth Fund, and the
International Equity Fund may also purchase or sell securities on a forward
commitment basis. The Funds record when-issued securities on the trade date
and maintain security positions such that sufficient liquid assets will be
available to make payment for the securities purchased. The value of the
securities underlying when-issued or forward commitments to purchase
securities, and any subsequent fluctuation in their value, is taken into
account when determining the net asset value of the Funds commencing with the
date the funds agree to purchase the securities. The Funds do not accrue
interest or dividends on "when-issued" securities until the underlying
securities are received. While the Funds purchased securities on a "when-
issued" basis during the year, the Funds held no such securities as of March
31, 1999.
Repurchase Agreements:
Each Fund may enter into repurchase agreements with member banks of the
Federal Deposit Insurance Corporation and with registered broker/dealers that
BB&T deems creditworthy under guidelines approved by the Board of Trustees,
subject to the seller's agreement to repurchase such securities at a mutually
agreed-upon date and price. The repurchase price generally equals the price
paid by the Fund plus interest negotiated on the basis of current short-term
rates, which may be more or less than the rate on the underlying portfolio
securities. The seller, under a repurchase agreement, is required to maintain
the value of collateral held pursuant to the agreement at not less than the
repurchase price (including accrued interest). Securities subject to
repurchase agreements are held by the Funds' custodian, another qualified
custodian or in the Federal Reserve/Treasury book-entry system. In the event
of counterparty default, the Fund has the right to use the collateral to
offset losses incurred. There is potential for loss to the Fund in the event
the Fund is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value
of the underlying securities during the period while the Fund seeks to assert
its rights.
Lending Portfolio Securities:
To generate additional income, each Fund, except the North Carolina
Intermediate Tax-Free Fund and the South Carolina Intermediate Tax-Free Fund,
may lend up to 33 1/3% of it's total assets pursuant to agreements requiring
that the loan be continuously secured by collateral equal at all times to at
least 100% of the market value plus accrued interest on the securities lent.
Collateral for such loans may include cash, securities of the
Continued
-67-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
U.S. Government, or its agencies or instrumentalities, or any combination
there of. Each Fund continues to earn interest and dividends on securities
lent while simultaneously seeking to earn interest on the investment
collateral.
When cash is received as collateral for securities loaned, each Fund may
invest such cash in short-term U.S. Government securities, repurchase
agreements, or other short-term corporate securities. The cash or subsequent
short-term investments are recorded as assets of the Fund, offset by a
corresponding liability to repay the cash at the termination of the loan. In
addition, the short-term securities purchased with the cash collateral are
included in the accompanying schedules of portfolio investments. Fixed income
securities received as collateral are not recorded as assets or liabilities
of the Fund because the Fund does not have effective control of such
securities.
There may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers deemed by BB&T to
be of good standing and creditworthy under guidelines established by the
Board of Trustees and when, in the judgment of BB&T, the consideration which
can be earned currently from such securities loans justifies the attendant
risks. Loans are subject to termination by the Funds or the borrower at any
time, and are, therefore, not considered to be illiquid investments.
As disclosed in the schedules of portfolio investments the Intermediate U.S.
Government Fund, Short-Intermediate U.S. Government Income Fund and the Small
Company Growth Fund collectively invested cash collateral in a Lehman
Brothers Tri Party Repurchase Agreement with an interest rate of 5.125% and a
maturity of 4/1/99 which was collateralized by the following securities:
<TABLE>
<CAPTION>
Principle Description Market Value
--------- ----------- ------------
<C> <S> <C>
$1,593,000 ABN Amro Mortgage Corporation, 6.75%, 4/25/29..... $1,492,302
Countrywide Alternative Loan Trust, 6.75%,
2,095,845 8/25/28........................................... 1,526,798
1,813,000 Countrywide Home Loans, 6.50%, 4/15/29............ 969,298
1,465,000 Countrywide Home Loans, 8.00%, 8/25/27............ 1,391,803
414,157 Countrywide Home Loans, 8.00%, 8/25/27............ 393,464
695,000 Countrywide Home Loans, 6.50%, 4/15/29............ 516,294
GE Capital Mortgage Services, Inc., 6.00%,
1,745,000 12/25/28.......................................... 1,182,384
GE Capital Mortgage Services, Inc., 6.25%,
2,088,000 1/25/14........................................... 1,442,159
GE Capital Mortgage Services, Inc., 6.00%,
342,000 12/25/28.......................................... 231,734
Headlands Mortgage Securities, Inc., 7.75%,
2,021,000 3/25/27........................................... 1,574,982
Headlands Mortgage Securities, Inc., 7.75%,
1,507,000 5/25/27........................................... 1,173,270
Norwest Asset Securities Corporation, 6.00%,
2,015,000 3/25/29........................................... 1,732,632
Norwest Asset Securities Corporation, 6.00%,
1,929,000 3/25/29........................................... 1,792,438
Norwest Asset Securities Corporation, 6.50%,
1,050,000 2/25/29........................................... 720,198
Residential Asset Securitization Trust, 6.72%,
1,995,888 3/25/29........................................... 1,835,389
Residential Funding Mortgage Securities, 6.75%,
1,567,000 10/25/28.......................................... 1,129,518
Residential Funding Mortgage Securities, 6.50%,
1,561,400 10/25/28.......................................... 1,086,293
Structured Asset Securities Corporation, 6.75%,
1,687,000 3/25/29........................................... 1,024,068
Structured Asset Securities Corporation, 6.50%,
1,824,871 3/25/29........................................... 1,806,275
</TABLE>
Continued
-68-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
Financial Futures Contracts:
The Funds may invest in financial futures contracts for the purpose of
hedging their existing portfolio securities or securities the Fund intend to
purchase, against fluctuations in fair value caused by changes in prevailing
market interest rates. Upon entering into a financial futures contract, the
Fund is required to pledge to the broker an amount of cash and/or other
assets equal to a certain percentage of the contract amount (initial margin
deposit). Subsequent payments, known as "variation margin", are made or
received by the Fund each day, depending on the daily fluctuations in the
fair value of the underlying security. The Fund recognizes a gain or loss
equal to the daily variation margin. Should market conditions move
unexpectedly, the Fund may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Dividends to Shareholders:
Dividends from net investment income are declared daily and paid monthly for
the Prime Money Market Fund, the U.S. Treasury Money Market Fund, the Short-
Intermediate U.S. Government Income Fund, the Intermediate U.S. Government
Bond Fund, the North Carolina Intermediate Tax-Free Fund, and the South
Carolina Intermediate Tax-Free Fund. Dividends from net investment income are
declared and paid monthly for the Growth and Income Stock Fund and the
Balanced Fund. Dividends from net investment income are declared and paid
quarterly for the Large Company Growth Fund, the Small Company Growth Fund,
the International Equity Fund, and the Funds of Funds. Distributable net
realized capital gains, if any, are declared and distributed at least
annually.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent they
exceed net investment income and net realized gains for tax purposes, they
are reported as distributions of capital.
Federal Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
timely, all of its net investment company taxable and net capital gains to
shareholders. Therefore, no federal income tax provision is required. (Under
the applicable foreign tax law, a withholding tax may be imposed on interest,
dividends and capital gains earned on foreign investments at various rates.
Where available, the Fund will file for claims on foreign taxes withheld.)
Continued
-69-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
Other:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Group are prorated to the
Funds on the basis of relative net assets. Expenses of the Funds of Funds do
not reflect the expenses of the underlying funds. All expenses in connection
with the Prime Money Market Fund, the South Carolina Intermediate Tax-Free
Fund, the Large Company Growth Fund, the International Equity Fund, the
Capital Manager Conservative Growth Fund, the Capital Manager Moderate Growth
Fund, and the Capital Manager Growth Fund's organization and registration
under the 1940 Act and the Securities Act of 1933 were paid by the respective
Fund. Such expenses are being capitalized and amortized over a period of two
years commencing with the initial public offering.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
year ended March 31, 1999 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ -----------
<S> <C> <C>
Short-Intermediate U.S. Government Income Fund.... $ 79,508,765 $84,125,194
Intermediate U.S. Government Bond Fund............ $106,249,814 $90,628,418
North Carolina Intermediate Tax-Free Fund......... $ 11,100,430 $14,146,750
South Carolina Intermediate Tax-Free Fund......... $ 4,647,008 $ 4,109,285
Growth and Income Stock Fund...................... $ 33,224,334 $44,572,989
Balanced Fund..................................... $ 23,907,847 $23,404,827
Large Company Growth Fund......................... $ 30,942,123 $27,739,588
Small Company Growth Fund......................... $ 88,861,564 $80,290,295
International Equity Fund......................... $ 36,281,424 $27,979,245
Capital Manager Conservative Growth Fund.......... $ 10,412,980 $ 3,189,600
Capital Manager Moderate Growth Fund.............. $ 4,878,700 $ 3,069,000
Capital Manager Growth Fund....................... $ 3,208,900 $ 2,816,000
</TABLE>
4. Related Party Transactions:
Investment advisory services are provided to the Group by BB&T. Under the
terms of the investment advisory agreement, BB&T is entitled to receive fees
based on a percentage of the average net assets of each of the Funds.
Pursuant to a Sub-Advisory Agreement with BB&T, BlackRock Financial
Management, Inc., an indirect wholly-owned subsidiary of PNC Bank, National
Association ("PNC Bank") manages the Small Company Growth Fund subject to the
general supervision of the Group's Board of Trustees and BB&T. For its
services, BlackRock Financial Management Inc. is entitled to a fee, payable
by BB&T, at the following annual rates as a percentage of the Small Company
Growth Fund's average daily net assets: (1) 0.50% of net assets up to $50
million, (2) 0.45% of the next $50 million in net assets, and (3) 0.40% of
net assets in excess of $100 million. Pursuant to a Sub-Advisory agreement
with BB&T, BlackRock International, Ltd. serves as the Sub-Advisor to the
International Equity Fund. Under the agreement, BlackRock International, Ltd.
manages the International Equity Fund subject to the general supervision of
the Group's Board of Trustees
Continued
-70-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
and BB&T. For its services, BlackRock International, Ltd. is entitled to a
fee, payable by BB&T, at the following annual rates as a percentage of the
International Equity Fund's average daily net assets: (1) 0.50% of net assets
up to $50 million, (2) 0.45% of the next $50 million in net assets, and (3)
0.40% of the net assets over $100 million. Pursuant to a Sub-Advisory
agreement with BB&T, BlackRock Institutional Management Corporation serves as
the Sub-Advisor to the Prime Money Market Fund. Under the agreement,
BlackRock Institutional Management Corporation manages the Prime Money Market
Fund subject to the general supervision of the Group's Board of Trustees and
BB&T. For its services, BlackRock Institutional Management Corporation is
entitled to a fee, payable by BB&T at 0.09% of the Prime Money Market Fund's
average daily net assets.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of the BISYS Group, Inc. BISYS, with whom certain
trustees and officers of the Funds are affiliated, serves the Funds as
administrator and distributor. Such officers and trustees are paid no fees
directly by the Funds for serving as officers of the Funds. Fees payable to
BISYS for administration services are established under terms of the
administration contract at the annual rate of 0.20% of the average daily net
assets of each Fund with the exception of the Funds of Funds which are
charged a fee of 0.05% of the average daily net assets. BISYS Ohio, serves
the Funds as transfer agent and fund accountant.
The Funds have adopted a Distribution and Shareholder Services Plan (the
"Plan") in accordance with Rule 12b-1 under the 1940 Act. The Plan provides
for payments to the distributor of up to 0.50% and 1.00% of the average daily
net assets of the Class A Shares and Class B Shares, respectively. The fees
may be used by BISYS to pay banks, including the advisor, broker dealers and
other institutions. As distributor, BISYS is entitled to receive commissions
on sales of shares of the variable net asset value funds. For the six months
ended March 31, 1999, BISYS received $735,699 from commissions earned on
sales of shares of the Group's variable net asset value funds, of which
$652,643 was allowed to affiliated broker/dealers of the Group.
BB&T, BISYS, and BISYS Ohio may voluntarily reduce or reimburse fees to
assist the Funds in maintaining competitive expense ratios. BB&T reimbursed
the Prime Money Market Fund and the South Carolina Intermediate Tax-Free Fund
$127 and $5,586, respectively.
Continued
-71-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
Information regarding these transactions is as follows for the six months
ended March 31, 1999:
<TABLE>
<CAPTION>
Investment Advisory Administration Distribution Distribution
Fees Fees Fees Fees
--------------------- -------------- ------------ ------------
As a Class A Class B
Percentage Voluntary Voluntary Voluntary Voluntary
Of Average Fee Fee Fee Fee
Net Assets Reductions Reductions Reductions Reductions
---------- ---------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Prime Money Mar-
ket Fund....... .40% $ 53,214 $39,968 $ -- $--
U.S. Treasury
Money Market
Fund........... .40% $154,034 $77,017 -- --
Short-Intermedi-
ate U.S. Gov-
ernment Income
Fund........... .60% $ 78,228 $39,113 $ 5,513 --
Intermediate
U.S. Government
Bond Fund...... .60% $ 92,187 -- $ 5,214 --
North Carolina
Intermediate
Tax- Free
Fund........... .60% $ 42,209 $21,104 $21,757 --
South Carolina
Intermediate
Tax- Free
Fund........... .60% $ 27,867 $13,933 $ 827 --
Growth and In-
come Stock
Fund........... .74% $560,132 -- $52,561 --
Balanced Fund... .74% $189,105 -- $27,968 --
Large Company
Growth Fund ... .74% $ 84,918 -- $ 3,365 --
Small Company
Growth Fund.... 1.00% -- -- $13,341 --
International
Equity Fund.... 1.00% -- -- $ 1,842 --
Capital Manager
Conservative
Growth Fund..... .25% $ 28,591 -- $ 227 $ 2
Capital Manager
Moderate
Growth Fund..... .25% $ 24,790 -- $ 1,894 $41
Captial Manager
Growth Fund.... .25% $ 23,480 -- $ 766 $ 3
</TABLE>
5. Concentration of Credit Risk
The North Carolina Intermediate Tax-Free Fund and the South Carolina
Intermediate Tax-Free Fund invest in debt instruments of municipal issuers.
The issuers' abilities to meet their obligations may be affected by economic
developments in a specific state or region.
Continued
-72-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
These funds invest in securities which include revenue bonds, tax exempt
commercial paper, tax and revenue anticipation notes, and general obligation
bonds. At March 31, 1999, the percentage of portfolio investments by each
revenue source were as follows:
<TABLE>
<CAPTION>
North Carolina South Carolina
Intermediate Intermediate
Tax-Free Tax-Free
Fund Fund
-------------- --------------
<S> <C> <C>
Revenue Bonds:
Facilities Bonds............................. 0.68% 1.30%
General Bonds................................ 3.07% 1.59%
Higher Education Bonds....................... 4.01% 9.59%
Medical Bonds................................ 8.96% 5.62%
Pollution Bonds.............................. 0.67% 4.21%
Power Bonds ................................. 3.31% 5.14%
School District Bonds........................ -- 19.52%
Single Family Housing Bonds.................. 0.50% --
Transportation Bonds ........................ -- 2.77%
Utility Bonds ............................... 5.53% 12.07%
Water Bonds ................................. 3.29% 5.59%
General Obligation Bonds..................... 64.43% 22.22%
Investment Companies......................... 0.40% 2.80%
</TABLE>
Continued
-73-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
6. Capital Share Transactions:
Transactions in capital shares for the Funds were as follows:
<TABLE>
<CAPTION>
Prime U.S. Treasury
Money Market Money Market
Fund Fund
--------------------------- ----------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 (a)(b) 1999 1998
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 3,479,500 $ 6,606,837 $ 56,555,162 $ 88,087,627
Dividends reinvested... 66,814 45,693 866,308 1,697,458
Cost of shares re-
deemed................. (3,596,804) (3,390,007) (52,887,310) (80,848,886)
------------ ------------- ------------- -------------
Change in net assets
from Class A Share
transactions........... $ (50,490) $ 3,262,523 $ 4,534,160 $ 8,936,199
============ ============= ============= =============
Class B Shares:
Proceeds from shares
issued................. $ 1,040,808 $ 300,010 $ 1,572,240 $ 1,533,442
Dividends reinvested... 722 -- 22,792 48,607
Cost of shares re-
deemed................. -- -- (894,161) (1,828,809)
------------ ------------- ------------- -------------
Change in net assets
from Class B Share
transactions........... $ 1,041,530 $ 300,010 $ 700,871 $ (246,760)
============ ============= ============= =============
Trust Shares:
Proceeds from shares
issued................. $ 83,904,417 $ 193,347,394 $ 230,238,345 $ 397,566,766
Dividends reinvested... -- 2,882 1,277,349 2,591,520
Cost of shares re-
deemed................. (64,462,354) (155,576,517) (203,450,676) (431,201,888)
------------ ------------- ------------- -------------
Change in net assets
from Trust Share trans-
actions................ $ 19,442,063 $ 37,773,759 $ 28,065,018 $ (31,043,602)
============ ============= ============= =============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 3,479,500 6,606,838 56,555,162 88,087,627
Reinvested............. 66,814 45,693 866,308 1,697,458
Redeemed............... (3,596,804) (3,390,007) (52,887,310) (80,848,885)
------------ ------------- ------------- -------------
Change in Class A
Shares................. (50,490) 3,262,524 4,534,160 8,936,200
============ ============= ============= =============
Class B Shares:
Issued................. 1,040,808 300,010 1,572,240 1,533,441
Reinvested............. 722 -- 22,792 48,607
Redeemed............... -- -- (894,161) (1,828,809)
------------ ------------- ------------- -------------
Change in Class B
Shares................. 1,041,530 300,010 700,871 (246,761)
============ ============= ============= =============
Trust Shares:
Issued................. 83,904,417 193,347,394 230,238,345 397,566,766
Reinvested............. -- 2,882 1,277,349 2,591,520
Redeemed............... (64,462,354) (155,576,517) (203,450,676) (431,201,888)
------------ ------------- ------------- -------------
Change in Trust
Shares................. 19,442,063 37,773,759 28,065,018 (31,043,602)
============ ============= ============= =============
</TABLE>
- ----
(a) The Fund commenced operations on October 1, 1997.
(b) The Fund commenced offering Class B Shares on September 2, 1998.
Continued
-74-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Short-
Intermediate Intermediate U.S.
U.S. Government Government
Income Fund Bond Fund
--------------------------- ---------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 1999 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 346,970 $ 192,328 $ 1,071,463 $ 950,380
Dividends reinvested... 85,773 177,946 123,298 164,571
Cost of shares
redeemed............... (308,801) (1,181,875) (2,042,578) (1,072,325)
------------ ------------ ------------ ------------
Change in net assets
from Class A Share
transactions........... $ 123,942 $ (811,601) $ (847,817) $ 42,626
============ ============ ============ ============
Class B Shares:
Proceeds from shares
issued................. $ 862,783 $ 694,364
Dividends reinvested... 41,971 31,042
Cost of shares
redeemed............... (81,133) (107,776)
------------ ------------
Change in net assets
from Class B Share
transactions........... $ 823,621 $ 617,630
============ ============
Trust Shares:
Proceeds from shares
issued................. $ 19,505,725 $ 73,529,580 $ 45,557,803 $ 75,881,763
Dividends reinvested... 179,882 367,365 1,778,815 2,885,452
Cost of shares
redeemed............... (18,804,993) (24,841,396) (27,294,102) (48,000,300)
------------ ------------ ------------ ------------
Change in net assets
from Trust Share
transactions........... $ 880,614 $ 49,055,549 $ 20,042,516 $ 30,766,915
============ ============ ============ ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 35,136 19,489 104,569 93,931
Reinvested............. 8,621 18,128 11,926 16,400
Redeemed............... (31,202) (120,560) (199,422) (106,747)
------------ ------------ ------------ ------------
Change in Class A
Shares................. 12,555 (82,943) (82,927) 3,584
============ ============ ============ ============
Class B Shares:
Issued................. 84,345 68,849
Reinvested............. 4,065 3,099
Redeemed............... (7,963) (10,797)
------------ ------------
Change in Class B
Shares................. 80,447 61,151
============ ============
Trust Shares:
Issued................. 1,969,598 7,511,307 4,473,546 7,597,248
Reinvested............. 18,066 37,398 171,953 287,298
Redeemed............... (1,891,804) (2,526,173) (2,640,408) (4,759,077)
------------ ------------ ------------ ------------
Change in Trust
Shares................. 95,860 5,022,532 2,005,091 3,125,469
============ ============ ============ ============
</TABLE>
Continued
-75-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
North Carolina South Carolina
Intermediate Intermediate
Tax-Free Bond Tax-Free Bond
--------------------------- ---------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 1999 1998 (a)
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 1,825,789 $ 3,137,339 $ 528,262 $ 291,303
Dividends reinvested... 268,705 327,585 6,700 3,952
Cost of shares
redeemed............... (761,452) (1,548,708) (7,000) (5,000)
------------ ------------ ----------- -----------
Change in net assets
from Class A Share
transactions........... $ 1,333,042 $ 1,916,216 $ 527,962 $ 290,255
============ ============ =========== ===========
Trust Shares:
Proceeds from shares
issued................. $ 5,485,567 $ 32,628,455 $ 1,544,101 $25,450,134
Dividends reinvested... -- 36,980 -- 5,687
Cost of shares
redeemed............... (10,185,519) (22,227,082) (1,173,980) (8,029,967)
------------ ------------ ----------- -----------
Change in net assets
from Trust Share
transactions........... $ (4,699,952) $ 10,438,353 $ 370,121 $17,425,854
============ ============ =========== ===========
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 173,968 302,092 51,151 28,435
Reinvested............. 25,726 31,718 646 385
Redeemed............... (72,645) (149,421) (677) (489)
------------ ------------ ----------- -----------
Change in Class A
Shares................. 127,049 184,389 51,120 28,331
============ ============ =========== ===========
Trust Shares:
Issued................. 525,956 3,171,581 150,227 2,534,229
Reinvested............. -- 3,599 -- 566
Redeemed............... (980,202) (2,146,354) (114,138) (782,561)
------------ ------------ ----------- -----------
Change in Trust
Shares................. (454,246) 1,028,826 36,089 1,752,234
============ ============ =========== ===========
</TABLE>
- ----
(a) For the period from October 20, 1997 (commencement of operations) through
September 30, 1998.
Continued
-76-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Growth and Income Balanced
Stock Fund Fund
--------------------------- ---------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 1999 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 3,637,926 $ 11,309,607 $ 1,559,558 $ 7,590,706
Dividends reinvested... 1,898,178 2,764,969 1,346,827 1,073,391
Cost of shares
redeemed............... (7,799,400) (5,601,439) (3,990,580) (4,132,034)
------------ ------------ ----------- ------------
Change in net assets
from Class A Share
transactions........... $ (2,263,296) $ 8,473,137 $(1,084,195) $ 4,532,063
============ ============ =========== ============
Class B Shares:
Proceeds from shares
issued................. $ 4,235,386 $ 19,294,501 $ 4,220,255 $ 9,624,926
Dividends reinvested... 1,525,102 1,383,073 991,668 407,643
Cost of shares
redeemed............... (2,736,014) (2,045,175) (985,415) (1,109,354)
------------ ------------ ----------- ------------
Change in net assets
from Class B Share
transactions........... $ 3,024,474 $ 18,632,399 $ 4,226,508 $ 8,923,215
============ ============ =========== ============
Trust Shares:
Proceeds from shares
issued................. $ 38,902,914 $133,771,433 $11,601,682 $ 36,729,601
Dividends reinvested... 7,760,338 11,462,995 5,106,069 3,958,651
Cost of shares
redeemed............... (48,143,589) (79,207,902) (5,967,843) (21,343,897)
------------ ------------ ----------- ------------
Change in net assets
from Trust Share
transactions........... $ (1,480,337) $ 66,026,526 $10,739,908 $ 19,344,355
============ ============ =========== ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 180,123 557,701 108,738 542,438
Reinvested............. 93,819 143,264 93,881 77,637
Redeemed............... (387,077) (282,239) (279,819) (297,325)
------------ ------------ ----------- ------------
Change in Class A
Shares................. (113,135) 418,726 (77,200) 322,750
============ ============ =========== ============
Class B Shares:
Issued................. 212,479 956,590 297,604 684,576
Reinvested............. 75,560 72,036 69,455 29,651
Redeemed............... (136,983) (104,546) (69,564) (79,403)
------------ ------------ ----------- ------------
Change in Class B
Shares................. 151,056 924,080 297,495 634,824
============ ============ =========== ============
Trust Shares:
Issued................. 1,947,303 6,755,500 815,544 2,629,189
Reinvested............. 382,805 591,985 356,703 287,018
Redeemed............... (2,406,078) (3,959,333) (420,346) (1,528,960)
------------ ------------ ----------- ------------
Change in Trust
Shares................. (75,970) 3,388,152 751,901 1,387,247
============ ============ =========== ============
</TABLE>
Continued
-77-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Large Company Small Company
Growth Fund Growth Fund
--------------------------- ---------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 (a) 1999 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 1,765,232 $ 2,203,499 $ 29,278,909 $ 38,525,136
Dividends reinvested... 123,138 2,142 -- 166,111
Cost of shares
redeemed............... (350,344) (90,348) (30,824,604) (38,915,077)
----------- ------------ ------------ ------------
Change in net assets
from Class A Share
transactions........... $ 1,538,026 $ 2,115,293 $ (1,545,695) $ (223,830)
=========== ============ ============ ============
Class B Shares:
Proceeds from shares
issued................. $ 3,146,016 $ 4,439,304 $ 833,939 $ 3,614,978
Dividends reinvested... 275,410 2,680 -- 128,534
Cost of shares
redeemed............... (370,892) (119,504) (1,192,128) (1,255,729)
----------- ------------ ------------ ------------
Change in net assets
from Class B Share
transactions........... $ 3,050,534 $ 4,322,480 $ (358,189) $ 2,487,783
=========== ============ ============ ============
Trust Shares:
Proceeds from shares
issued................. $10,835,194 $ 88,420,885 $ 17,835,217 $ 48,565,796
Dividends reinvested... 61,859 8,366 -- 448,590
Cost of shares
redeemed............... (7,264,475) (35,759,154) (12,470,682) (23,595,445)
----------- ------------ ------------ ------------
Change in net assets
from Trust Share
transactions........... $ 3,632,578 $ 52,670,097 $ 5,364,535 $ 25,418,941
=========== ============ ============ ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 157,659 210,050 1,505,050 1,884,457
Reinvested............. 11,626 210 -- 8,052
Redeemed............... (32,338) (8,713) (1,562,312) (1,895,528)
----------- ------------ ------------ ------------
Change in Class A
Shares................. 136,947 201,547 (57,262) (3,019)
=========== ============ ============ ============
Class B Shares:
Issued................. 288,446 427,380 43,956 172,660
Reinvested............. 26,130 272 -- 6,322
Redeemed............... (33,992) (11,650) (60,343) (61,803)
----------- ------------ ------------ ------------
Change in Class B
Shares................. 280,584 416,002 (16,387) 117,179
=========== ============ ============ ============
Trust Shares:
Issued................. 1,008,787 8,894,685 946,822 2,293,230
Reinvested............. 5,823 842 -- 21,546
Redeemed............... (645,015) (3,603,029) (616,481) (1,124,540)
----------- ------------ ------------ ------------
Change in Trust
Shares................. 369,595 5,292,498 330,341 1,190,236
=========== ============ ============ ============
</TABLE>
- ----
(a) For the period from October 3, 1997 (commencement of operations) through
September 30, 1998.
Continued
-78-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
International Capital Manager
Equity Conservative Growth
Fund Fund
--------------------------- --------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 1999 1998 (a)
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued.................. $ 342,374 $ 722,522 $ 352,367 $ 120,882
Dividends reinvested.... 26,800 21,801 3,774 294
Cost of shares
redeemed................ (259,069) (72,663) (2,250) --
----------- ----------- ---------- -----------
Change in net assets
from Class A Share
transactions............ $ 110,105 $ 671,660 $ 353,891 $ 121,176
=========== =========== ========== ===========
Class B Shares:
Proceeds from shares
issued.................. $ 272,410 $ 1,222,446 $ 5,500
Dividends reinvested.... 36,730 31,847 --
Cost of shares
redeemed................ (319,534) (225,132) (3)
----------- ----------- ----------
Change in net assets
from Class B Share
transactions............ $ (10,394) $ 1,029,161 $ 5,497
=========== =========== ==========
Trust Shares:
Proceeds from shares
issued.................. $ 9,143,706 $36,031,578 $7,827,899 $23,613,564
Dividends reinvested.... 417,849 522,726 38,463 25
Cost of shares
redeemed................ (5,048,278) (9,432,531) (317,973) (7,488)
----------- ----------- ---------- -----------
Change in net assets
from Trust Share
transactions............ $ 4,513,277 $27,121,773 $7,548,389 $23,606,101
=========== =========== ========== ===========
SHARE TRANSACTIONS:
Class A Shares:
Issued.................. 30,713 63,018 33,697 11,769
Reinvested.............. 2,462 2,033 362 28
Redeemed................ (23,826) (6,464) (215) --
----------- ----------- ---------- -----------
Change in Class A
Shares.................. 9,349 58,587 33,844 11,797
=========== =========== ========== ===========
Class B Shares:
Issued.................. 24,794 108,028 526
Reinvested.............. 3,408 3,026 --
Redeemed................ (29,205) (20,736) --
----------- ----------- ----------
Change in Class B
Shares.................. (1,003) 90,318 526
=========== =========== ==========
Trust Shares:
Issued.................. 835,504 3,218,535 743,395 2,358,118
Reinvested.............. 38,138 48,620 3,659 3
Redeemed................ (465,226) (841,292) (30,458) (735)
----------- ----------- ---------- -----------
Change in Trust Shares.. 408,416 2,425,863 716,596 2,357,386
=========== =========== ========== ===========
</TABLE>
- ----
(a) The Fund commenced offering Trust Shares on October 2, 1997, Class A Shares
on January 29, 1998, and Class B Shares on January 29, 1999.
Continued
-79-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
Notes to Financial Statements, Continued
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Capital Manager
Moderate Growth Capital Manager
Fund Growth Fund
-------------------------- --------------------------
For the For the For the For the
period ended year ended period ended year ended
March 31, September 30, March 31, September 30,
1999 1998 (a) 1999 1998 (a)
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares is-
sued.................... $ 446,603 $ 1,214,302 $583,723 $ 298,699
Dividends reinvested.... 52,452 292 23,127 979
Cost of shares re-
deemed.................. (75,157) (5,833) (47,503) --
---------- ----------- -------- -----------
Change in net assets
from Class A Share
transactions............ $ 423,898 $ 1,208,761 $559,347 $ 299,678
========== =========== ======== ===========
Class B Shares:
Proceeds from shares is-
sued.................... $ 84,409 $ 5,000
Dividends reinvested.... -- --
Cost of shares re-
deemed.................. (5) (6)
---------- --------
Change in net assets
from Class B Share
transactions............ $ 84,404 $ 4,994
========== ========
Trust Shares:
Proceeds from shares is-
sued.................... $1,443,528 $22,001,572 $ 89,464 $22,091,640
Dividends reinvested.... 295 18 1,461 168
Cost of shares re-
deemed.................. (43,643) -- (44,314) --
---------- ----------- -------- -----------
Change in net assets
from Trust Share trans-
actions................. $1,400,180 $22,001,590 $ 46,611 $22,091,808
========== =========== ======== ===========
SHARE TRANSACTIONS:
Class A Shares:
Issued.................. 42,732 116,838 55,480 28,479
Reinvested.............. 5,025 28 2,212 93
Redeemed................ (7,251) (589) (4,485) --
---------- ----------- -------- -----------
Change in Class A
Shares.................. 40,506 116,277 53,207 28,572
========== =========== ======== ===========
Class B Shares:
Issued.................. 8,091 470
Reinvested.............. -- --
Redeemed................ -- (1)
---------- --------
Change in Class B
Shares.................. 8,091 469
========== ========
Trust Shares:
Issued.................. 135,832 2,200,157 8,490 2,208,722
Reinvested.............. 28 2 141 16
Redeemed................ (4,168) -- (4,164) --
---------- ----------- -------- -----------
Change in Trust Shares.. 131,692 2,200,159 4,467 2,208,738
========== =========== ======== ===========
</TABLE>
- ----
(a) The Fund commenced offering Trust Shares on October 2, 1997, Class A Shares
on January 29, 1998, and Class B Shares on January 29, 1999.
Continued
-80-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 1,
months ended 1997 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $ 1.000 $ 1.000
------- -------
Investment Activities
Net investment income............................ 0.022 0.048
------- -------
Total from Investment Activities................ 0.022 0.048
------- -------
Distributions
Net investment income............................ (0.022) (0.048)
------- -------
Total Distributions............................. (0.022) (0.048)
------- -------
Net Asset Value, End of Period.................... $ 1.000 $ 1.000
======= =======
Total Return (excludes sales charge).............. 2.21%(b) 4.93%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $ 3,212 $ 3,262
Ratio of expenses to average net assets.......... 0.79%(c) 0.83%(c)
Ratio of net investment income to average net as-
sets............................................. 4.40%(c) 4.83%(c)
Ratio of expenses to average net assets*......... 1.14%(c) 1.43%(c)
Ratio of net investment income to average net as-
sets*............................................ 4.05%(c) 4.23%(c)
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such voluntary fee reductions or reimbursements had not occurred, the ratios
would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
-81-
[LOGO OF BB&T MUTUAL FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six
months September 2,
ended 1998 to
March 31, September 30,
1999 1998 (a)
----------- -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $ 1.000 $ 1.000
------- -------
Investment Activities
Net investment income............................ 0.018 0.003
------- -------
Total from Investment Activities................ 0.018 0.003
------- -------
Distributions
Net investment income............................ (0.018) (0.003)
------- -------
Total Distributions............................. (0.018) (0.003)
------- -------
Net Asset Value, End of Period.................... $ 1.000 $ 1.000
======= =======
Total Return (excludes redemption charge)......... 1.83%(b) 0.32%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $ 1,342 $ 300
Ratio of expenses to average net assets.......... 1.51%(c) 1.64%(c)
Ratio of net investment income to average net as-
sets............................................. 3.61%(c) 3.98%(c)
Ratio of expenses to average net assets*......... 1.86%(c) 1.99%(c)
Ratio of net investment income to average net as-
sets*............................................ 3.26%(c) 3.63%(c)
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such voluntary fee reductions or reimbursements had not occurred, the ratios
would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
-82-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 1,
months ended 1998 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............... $ 1.000 $ 1.000
------- -------
Investment Activities
Net investment income............................. 0.023 0.051
------- -------
Total from Investment Activities................. 0.023 0.051
------- -------
Distributions
Net investment income............................. (0.023) (0.051)
------- -------
Total Distributions.............................. (0.023) (0.051)
------- -------
Net Asset Value, End of Period..................... $ 1.000 $ 1.000
======= =======
Total Return....................................... 2.34%(b) 5.23%
Ratios/Supplementary Data:
Net Assets, End of Period (000)................... $57,215 $37,769
Ratio of expenses to average net assets........... 0.52%(c) 0.55%
Ratio of net investment income to average net as-
sets.............................................. 4.62%(c) 5.11%
Ratio of expenses to average net assets*.......... 0.86%(c) 0.91%
Ratio of net investment income to average net as-
sets*............................................. 4.27%(c) 4.75%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such voluntary fee reductions or reimbursements had not occurred, the ratios
would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
-83-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ------- ------- ------- ------- ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000
------- ------- ------- ------- ------- ------
Investment Activities
Net investment income.. 0.020 0.046 0.044 0.044 0.047 0.027
------- ------- ------- ------- ------- ------
Total from Investment
Activities............ 0.020 0.046 0.044 0.044 0.047 0.027
------- ------- ------- ------- ------- ------
Distributions
Net investment income.. (0.020) (0.046) (0.044) (0.044) (0.047) (0.027)
------- ------- ------- ------- ------- ------
Total Distributions... (0.020) (0.046) (0.044) (0.044) (0.047) (0.027)
------- ------- ------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000
======= ======= ======= ======= ======= ======
Total Return (excludes
sales charge)........... 2.01%(a) 4.75% 4.50% 4.49% 4.81% 2.76%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $46,012 $41,478 $32,541 $27,931 $13,948 $1,486
Ratio of expenses to
average net assets..... 0.83%(b) 0.86% 0.95% 0.99% 0.98% 0.94%
Ratio of net investment
income to average net
assets................. 4.00%(b) 4.65% 4.41% 4.37% 4.81% 2.89%
Ratio of expenses to
average net assets*.... 0.98%(b) 1.26% 1.25% 1.25% 1.24% 1.32%
Ratio of net investment
income to average net
assets*................ 3.85%(b) 4.25% 4.11% 4.11% 4.55% 2.51%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
-84-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year For the year January 1,
months ended ended ended 1996 to
March 31, September 30, September 30, September 30,
1999 1998 1997 1996 (a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
Investment Activities
Net investment income.. 0.016 0.039 0.036 0.025
------- ------- ------- -------
Total from Investment
Activities............ 0.016 0.039 0.036 0.025
------- ------- ------- -------
Distributions
Net investment income.. (0.016) (0.039) (0.036) (0.025)
------- ------- ------- -------
Total Distributions... (0.016) (0.039) (0.036) (0.025)
------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= =======
Total Return (excludes
redemption charge)...... 1.63%(b) 3.97% 3.67% 2.53%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $ 1,956 $ 1,255 $ 1,502 $ 1,305
Ratio of expenses to
average net assets..... 1.58%(c) 1.61% 1.75% 1.75%(c)
Ratio of net investment
income to average net
assets................. 3.25%(c) 3.90% 3.61% 3.55%(c)
Ratio of expenses to
average net assets*.... 1.73%(c) 1.76% ** **
Ratio of net investment
income to average net
assets*................ 3.10%(c) 3.75% ** **
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
** There were no voluntary fee reductions during this period.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
-85-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended September 30,
-----------------------------------------------
For the six
months
ended
March 31, 1999 1998 1997 1996 1995 1994
-------------- -------- -------- -------- -------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------
Investment Activities:
Net investment income.. 0.021 0.049 0.046 0.046 0.050 0.030
-------- -------- -------- -------- -------- -------
Total from Investment
Activities............ 0.021 0.049 0.046 0.046 0.050 0.030
-------- -------- -------- -------- -------- -------
Distributions:
Net investment income.. (0.021) (0.049) (0.046) (0.046) (0.050) (0.030)
-------- -------- -------- -------- -------- -------
Total Distributions... (0.021) (0.049) (0.046) (0.046) (0.050) (0.030)
-------- -------- -------- -------- -------- -------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== =======
Total Return............ 2.14%(a) 5.01% 4.71% 4.74% 5.07% 3.01%
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $263,861 $235,796 $266,840 $205,974 $120,083 $77,464
Ratio of expenses to
average net assets..... 0.58%(b) 0.61% 0.75% 0.75% 0.72% 0.67%
Ratio of net investment
income to average net
assets................. 4.25%(b) 4.90% 4.61% 4.63% 4.97% 2.97%
Ratio of expenses to
average net assets*.... 0.73%(b) 0.76% 0.75% 0.75% 0.75% 0.83%
Ratio of net investment
income to average net
assets*................ 4.10%(b) 4.75% 4.61% 4.63% 4.95% 2.82%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
-86-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ---------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ------ ------ ------ ------ -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $10.06 $ 9.76 $ 9.73 $ 9.88 $ 9.60 $ 10.29
------ ------ ------ ------ ------ -------
Investment Activities
Net investment income.. 0.25 0.51 0.54 0.55 0.53 0.50
Net realized and
unrealized gains
(losses) on
investments............ (0.22) 0.30 0.03 (0.15) 0.29 (0.68)
------ ------ ------ ------ ------ -------
Total from Investment
Activities............ 0.03 0.81 0.57 0.40 0.82 (0.18)
------ ------ ------ ------ ------ -------
Distributions
Net investment income.. (0.26) (0.51) (0.54) (0.55) (0.54) (0.50)
Net realized gains..... -- -- -- -- -- (0.01)
------ ------ ------ ------ ------ -------
Total Distributions... (0.26) (0.51) (0.54) (0.55) (0.54) (0.51)
------ ------ ------ ------ ------ -------
Net Asset Value, End of
Period.................. $ 9.83 $10.06 $ 9.76 $ 9.73 $ 9.88 $ 9.60
====== ====== ====== ====== ====== =======
Total Return (excludes
sales charge)........... 0.30%(b) 8.50% 6.07% 4.09% 8.74% (1.86%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $4,495 $4,476 $5,151 $6,356 $7,102 $10,345
Ratio of expenses to
average net assets..... 1.04%(c) 1.06% 1.11% 1.19% 1.17% 0.89%
Ratio of net investment
income to average
net assets............. 5.11%(c) 5.15% 5.60% 5.55% 5.50% 5.01%
Ratio of expenses to
average net assets*.... 1.44%(c) 1.44% 1.46% 1.54% 1.58% 1.58%
Ratio of net investment
income to average
net assets*............ 4.71%(c) 4.77% 5.25% 5.20% 5.09% 4.32%
Portfolio Turnover(a).. 52.57% 53.74% 87.99% 54.82% 106.81% 7.06%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-87-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, --------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ -------- -------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 10.07 $ 9.77 $ 9.74 $ 9.89 $ 9.61 $ 10.30
-------- -------- -------- ------- ------- -------
Investment Activities
Net investment income.. 0.26 0.53 0.57 0.57 0.56 0.52
Net realized and
unrealized gains
(losses) on
investments............ (0.22) 0.30 0.03 (0.15) 0.28 (0.68)
-------- -------- -------- ------- ------- -------
Total from Investment
Activities............ 0.04 0.83 0.60 0.42 0.84 (0.16)
-------- -------- -------- ------- ------- -------
Distributions
Net investment income.. (0.27) (0.53) (0.57) (0.57) (0.56) (0.52)
Net realized gains..... -- -- -- -- -- (0.01)
-------- -------- -------- ------- ------- -------
Total Distributions... (0.27) (0.53) (0.57) (0.57) (0.56) (0.53)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 9.84 $ 10.07 $ 9.77 $ 9.74 $ 9.89 $ 9.61
======== ======== ======== ======= ======= =======
Total Return............ 0.42%(b) 8.77% 6.33% 4.36% 9.01% (1.66%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $154,625 $157,329 $103,523 $62,621 $45,005 $38,208
Ratio of expenses to
average net assets..... 0.79%(c) 0.81% 0.86% 0.93% 0.93% 0.71%
Ratio of net investment
income to average net
assets................. 5.36%(c) 5.40% 5.85% 5.81% 5.78% 5.20%
Ratio of expenses to
average net assets*.... 0.94%(c) 0.94% 0.96% 1.03% 1.08% 1.08%
Ratio of net investment
income to average net
assets*................ 5.21%(c) 5.27% 5.75% 5.71% 5.64% 4.83%
Portfolio Turnover(a).. 52.57% 53.74% 87.99% 54.82% 106.81% 7.06%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-88-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year ended September 30,
months ended --------------------------------------
March 31, 1999 1998 1997 1996 1995 1994
-------------- ------ ------ ------ ------ ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $10.57 $ 9.84 $ 9.63 $ 9.88 $ 9.33 $10.39
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income.. 0.25 0.51 0.53 0.56 0.59 0.59
Net realized and
unrealized gains (loss-
es) on investments..... (0.43) 0.74 0.21 (0.25) 0.55 (1.04)
------ ------ ------ ------ ------ ------
Total from Investment
Activities............ (0.18) 1.25 0.74 0.31 1.14 (0.45)
------ ------ ------ ------ ------ ------
Distributions
Net investment income.. (0.25) (0.52) (0.53) (0.56) (0.59) (0.59)
Net realized gains..... (0.11) -- -- -- -- (0.02)
------ ------ ------ ------ ------ ------
Total Distributions... (0.36) (0.52) (0.53) (0.56) (0.59) (0.61)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period.................. $10.03 $10.57 $ 9.84 $ 9.63 $ 9.88 $ 9.33
====== ====== ====== ====== ====== ======
Total Return (excludes
sales charge)........... (1.71)%(b) 13.07% 7.93% 3.17% 12.63% (4.48%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $3,496 $4,562 $4,211 $3,659 $5,173 $6,772
Ratio of expenses to
average net assets..... 1.09%(c) 1.09% 1.12% 1.13% 1.09% 0.96%
Ratio of net investment
income to average net
assets................. 4.94%(c) 5.10% 5.49% 5.68% 6.22% 6.03%
Ratio of expenses to
average net assets*.... 1.44%(c) 1.44% 1.47% 1.48% 1.50% 1.56%
Ratio of net investment
income to average net
assets*................ 4.58%(c) 4.75% 5.14% 5.33% 5.81% 5.43%
Portfolio Turnover(a).. 49.19% 60.98% 62.45% 76.29% 68.91% 0.38%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-89-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year For the year January 1,
months ended ended 1996 to
ended September 30, September 30, September 30,
March 31, 1999 1998 1997 1996 (a)
-------------- ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $10.54 $ 9.81 $ 9.60 $10.17
------ ------ ------ ------
Investment Activities
Net investment income.. 0.21 0.43 0.46 0.31
Net realized and
unrealized gains (loss-
es) on investments..... (0.43) 0.74 0.21 (0.57)
------ ------ ------ ------
Total from Investment
Activities............ (0.22) 1.17 0.67 (0.26)
------ ------ ------ ------
Distributions
Net investment income.. (0.21) (0.44) (0.46) (0.31)
Net Realized Gains..... (0.11) -- -- --
------ ------ ------ ------
Total Distributions... (0.32) (0.44) (0.46) (0.31)
------ ------ ------ ------
Net Asset Value, End of
Period.................. $10.00 $10.54 $ 9.81 $ 9.60
====== ====== ====== ======
Total Return (excludes
redemption charge)...... (2.08%)(b) 12.26% 7.14% (2.48%)(b)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $2,052 $1,314 $ 623 $ 353
Ratio of expenses to
average net assets..... 1.83%(c) 1.84% 1.87% 1.85%(c)
Ratio of net investment
income to average net
assets................. 4.21%(c) 4.35% 4.74% 5.01%(c)
Ratio of expenses to
average net assets*.... 1.93%(c) 1.94% 1.97% 1.95%(c)
Ratio of net investment
income to average net
assets*................ 4.11%(c) 4.25% 4.64% 4.91%(c)
Portfolio Turnover(d).. 49.19% 60.98% 62.45% 76.29%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-90-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended September 30,
----------------------------------------------
For the six
months
ended
March 31, 1999 1998 1997 1996 1995 1994
--------------- -------- -------- -------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 10.59 $ 9.85 $ 9.64 $ 9.89 $ 9.34 $ 10.40
-------- -------- -------- -------- ------- -------
Investment Activities
Net investment income.. 0.27 0.54 0.56 0.58 0.61 0.62
Net realized and
unrealized gains (loss-
es) on investments..... (0.43) 0.75 0.21 (0.25) 0.55 (1.04)
-------- -------- -------- -------- ------- -------
Total from Investment
Activities............ (0.16) 1.29 0.77 0.33 1.16 (0.42)
-------- -------- -------- -------- ------- -------
Distributions
Net investment income.. (0.27) (0.55) (0.56) (0.58) (0.61) (0.62)
Net realized gains..... (0.11) -- -- -- -- (0.02)
-------- -------- -------- -------- ------- -------
Total Distributions... (0.38) (0.55) (0.56) (0.58) (0.61) (0.64)
-------- -------- -------- -------- ------- -------
Net Asset Value, End of
Period.................. $ 10.05 $ 10.59 $ 9.85 $ 9.64 $ 9.89 $ 9.34
======== ======== ======== ======== ======= =======
Total Return............ (1.58%)(b) 13.46% 8.20% 3.43% 12.91% (4.23%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $196,852 $186,256 $142,545 $119,633 $78,578 $68,451
Ratio of expenses to
average net assets..... 0.84%(c) 0.84% 0.87% 0.87% 0.85% 0.70%
Ratio of net investment
income to average net
assets................. 5.19%(c) 5.35% 5.74% 5.94% 6.43% 6.27%
Ratio of expenses to
average net assets*.... 0.94%(c) 0.94% 0.97% 0.97% 1.00% 1.06%
Ratio of net investment
income to average net
assets*................ 5.09%(c) 5.25% 5.64% 5.84% 6.28% 5.91%
Portfolio Turnover(a).. 49.19% 60.98% 62.45% 76.29% 68.91% 0.38%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-91-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended September 30,
----------------------------------------
For the six
months ended
March 31,
1999 1998 1997 1996 1995 1994
------------ ------- ------ ------ ------ -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 10.52 $ 10.27 $10.05 $10.15 $ 9.78 $ 10.29
------- ------- ------ ------ ------ -------
Investment Activities
Net investment income.. 0.20 0.42 0.40 0.36 0.36 0.36
Net realized and
unrealized gains (loss-
es) on investments..... (0.14) 0.25 0.22 (0.10) 0.37 (0.50)
------- ------- ------ ------ ------ -------
Total from Investment
Activities............ 0.06 0.67 0.62 0.26 0.73 (0.14)
------- ------- ------ ------ ------ -------
Distributions
Net investment income.. (0.20) (0.42) (0.40) (0.36) (0.36) (0.36)
Net realized gains..... (0.07) -- -- -- -- (0.01)
------- ------- ------ ------ ------ -------
Total Distributions... (0.27) (0.42) (0.40) (0.36) (0.36) (0.37)
------- ------- ------ ------ ------ -------
Net Asset Value, End of
Period.................. $ 10.31 $ 10.52 $10.27 $10.05 $10.15 $ 9.78
======= ======= ====== ====== ====== =======
Total Return (excludes
sales charge)........... 0.62%(b) 6.63% 6.28% 2.61% 7.61% (1.33%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000).............. $12,670 $11,592 $9,419 $9,261 $8,717 $11,083
Ratio of expenses to
average net assets..... 0.97%(c) 0.96% 1.00% 1.11% 1.05% 0.75%
Ratio of net investment
income to average net
assets................. 3.90%(c) 4.03% 3.94% 3.58% 3.63% 3.63%
Ratio of expenses to
average net assets*.... 1.47%(c) 1.48% 1.50% 1.61% 1.63% 1.66%
Ratio of net investment
income to average net
assets*................ 3.40%(c) 3.51% 3.44% 3.08% 3.05% 2.72%
Portfolio Turnover(a).. 13.45% 32.63% 16.98% 20.90% 9.38% 0.56%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-92-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended September 30,
-------------------------------------------
For the six
months
ended
March 31, 1999 1998 1997 1996 1995 1994
--------------- ------- ------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 10.53 $ 10.27 $ 10.05 $ 10.15 $ 9.78 $ 10.29
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.21 0.43 0.41 0.38 0.37 0.38
Net realized and
unrealized gains (loss-
es) on investments..... (0.14) 0.26 0.22 (0.10) 0.37 (0.50)
------- ------- ------- ------- ------- -------
Total from Investment
Activities............ 0.07 0.69 0.63 0.28 0.74 (0.12)
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (0.21) (0.43) (0.41) (0.38) (0.37) (0.38)
Net realized gains..... (0.07) -- -- -- -- (0.01)
------- ------- ------- ------- ------- -------
Total Distributions... (0.28) (0.43) (0.41) (0.38) (0.37) (0.39)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 10.32 $ 10.53 $ 10.27 $ 10.05 $ 10.15 $ 9.78
======= ======= ======= ======= ======= =======
Total Return............ 0.70%(b) 6.90% 6.43% 2.77% 7.77% (1.18%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $67,296 $73,454 $61,120 $28,443 $28,091 $27,770
Ratio of expenses to
average net assets..... 0.82%(c) 0.81% 0.85% 0.96% 0.91% 0.63%
Ratio of net investment
income to average net
assets................. 4.05%(c) 4.18% 4.13% 3.72% 3.78% 3.77%
Ratio of expenses to
average net assets*.... 0.97%(c) 0.98% 1.00% 1.11% 1.13% 1.17%
Ratio of net investment
income to average net
assets*................ 3.90%(c) 4.01% 3.98% 3.57% 3.55% 3.24%
Portfolio Turnover(a).. 13.45% 32.63% 16.98% 20.90% 9.38% 0.56%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-93-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 20,
months ended 1997 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $10.47 $10.00
------ ------
Investment Activities
Net investment income............................ 0.19 0.31
Net realized and unrealized gains (losses) on in-
vestments........................................ (0.15) 0.47
------ ------
Total from Investment Activities................ 0.04 0.78
------ ------
Distributions
Net investment income............................ (0.19) (0.31)
Net realized Gains............................... (0.08) --
------ ------
Total Distributions............................. (0.27) (0.31)
------ ------
Net Asset Value, End of Period.................... $10.24 $10.47
====== ======
Total Return (excludes sales charge).............. 0.41%(b) 7.91%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $ 813 $ 297
Ratio of expenses to average net assets.......... 0.96%(c) 1.04%(c)
Ratio of net investment income to average net as-
sets............................................. 3.72%(c) 3.71%(c)
Ratio of expenses to average net assets*......... 1.79%(c) 1.97%(c)
Ratio of net investment income to average net as-
sets*............................................ 2.89%(c) 2.78%(c)
Portfolio Turnover(d)............................ 22.62% 58.80%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced and reimbursed. If
such voluntary fee reductions and reimbursements had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-94-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 20,
months ended 1997 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $ 10.41 $ 10.00
------- -------
Investment Activities
Net investment income............................ 0.20 0.38
Net realized and unrealized gains (losses) on in-
vestments........................................ (0.15) 0.41
------- -------
Total from Investment Activities................ 0.05 0.79
------- -------
Distributions
Net investment income............................ (0.20) (0.38)
Net realized gains............................... (0.08) --
------- -------
Total Distributions............................. (0.28) (0.38)
------- -------
Net Asset Value, End of Period.................... $ 10.18 $ 10.41
======= =======
Total Return...................................... 0.48%(b) 8.02%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $18,198 $18,242
Ratio of expenses to average net assets.......... 0.82%(c) 0.88%(c)
Ratio of net investment income to average net as-
sets............................................. 3.86%(c) 3.88%(c)
Ratio of expenses to average net assets*......... 1.33%(c) 1.39%(c)
Ratio of net investment income to average net as-
sets*............................................ 3.35%(c) 3.37%(c)
Portfolio Turnover(d)............................ 22.62% 58.80%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced and reimbursed. If
such voluntary fee reductions and reimbursements had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-95-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME STOCK FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ------- ------- ------- ------- ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 18.48 $ 19.98 $ 15.31 $ 12.97 $ 11.26 $11.26
------- ------- ------- ------- ------- ------
Investment Activities
Net investment income.. 0.11 0.23 0.26 0.26 0.25 0.25
Net realized and
unrealized gains (loss-
es) on investments..... 1.93 (0.17) 5.30 2.43 1.98 0.12
------- ------- ------- ------- ------- ------
Total from Investment
Activities............ 2.04 0.06 5.56 2.69 2.23 0.37
------- ------- ------- ------- ------- ------
Distributions
Net investment income.. (0.11) (0.23) (0.26) (0.26) (0.25) (0.26)
Net realized gains..... (0.81) (1.33) (0.63) (0.09) (0.12) (0.11)
In excess of net real-
ized gains............. -- -- -- -- (0.15) --
------- ------- ------- ------- ------- ------
Total Distributions... (0.92) (1.56) (0.89) (0.35) (0.52) (0.37)
------- ------- ------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 19.60 $ 18.48 $ 19.98 $ 15.31 $ 12.97 $11.26
======= ======= ======= ======= ======= ======
Total Return (excludes
sales charge)........... 10.89%(b) 0.10% 37.80% 20.97% 20.62% 3.33%
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $40,005 $39,817 $34,679 $18,949 $10,842 $7,973
Ratio of expenses to
average net assets..... 1.10%(c) 1.10% 1.09% 1.11% 1.07% 0.92%
Ratio of net investment
income to average net
assets................. 1.10%(c) 1.18% 1.52% 1.82% 2.15% 2.26%
Ratio of expenses to
average net assets*.... 1.59%(c) 1.59% 1.58% 1.60% 1.60% 1.65%
Ratio of net investment
income to average net
assets*................ 0.61%(c) 0.69% 1.03% 1.33% 1.62% 1.52%
Portfolio Turnover(a).. 7.48% 13.17% 22.66% 19.82% 8.73% 21.30%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-96-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME STOCK FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the January 1,
months ended year ended year ended 1996 to
March 31, September 30, September 30, September 30,
1999 1998 1997 1996 (a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 18.42 $ 19.93 $ 15.29 $13.78
------- ------- ------- ------
Investment Activities
Net investment income.. 0.03 0.09 0.13 0.13
Net realized and
unrealized gains (loss-
es) on investments..... 1.92 (0.18) 5.28 1.52
------- ------- ------- ------
Total from Investment
Activities............ 1.95 (0.09) 5.41 1.65
------- ------- ------- ------
Distributions
Net investment income.. (0.04) (0.09) (0.14) (0.14)
Net realized gains..... (0.81) (1.33) (0.63) --
------- ------- ------- ------
Total Distributions... (0.85) (1.42) (0.77) (0.14)
------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 19.52 $ 18.42 $ 19.93 $15.29
======= ======= ======= ======
Total Return (excludes
redemption charge)...... 10.44%(b) (.67%) 36.70% 12.01%(b)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $37,335 $32,455 $16,690 $3,880
Ratio of expenses to
average net assets..... 1.85%(c) 1.85% 1.84% 1.85%(c)
Ratio of net investment
income to average net
assets................. 0.36%(c) 0.43% 0.77% 1.13%(c)
Ratio of expenses to
average net assets*.... 2.09%(c) 2.09% 2.08% 2.09%(c)
Ratio of net investment
income to average net
assets*................ 0.12%(c) 0.19% 0.53% 0.89%(c)
Portfolio Turnover(d).. 7.48% 13.17% 22.66% 19.82%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-97-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME STOCK FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended September 30,
-----------------------------------------------
For the six
months
ended
March 31, 1999 1998 1997 1996 1995 1994
-------------- -------- -------- -------- -------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 18.52 $ 20.02 $ 15.34 $ 12.99 $ 11.28 $ 11.28
-------- -------- -------- -------- -------- -------
Investment Activities
Net investment income.. 0.14 0.28 0.30 0.29 0.28 0.28
Net realized and
unrealized gains (loss-
es) on investments..... 1.93 (0.17) 5.31 2.44 1.98 0.11
-------- -------- -------- -------- -------- -------
Total from Investment
Activities............ 2.07 0.11 5.61 2.73 2.26 0.39
-------- -------- -------- -------- -------- -------
Distributions
Net investment income.. (0.14) (0.28) (0.30) (0.29) (0.28) (0.28)
Net realized gains..... (0.81) (1.33) (0.63) (0.09) (0.12) (0.11)
In excess of net real-
ized gains............. -- -- -- -- (0.15) --
-------- -------- -------- -------- -------- -------
Total Distributions... (0.95) (1.61) (0.93) (0.38) (0.55) (0.39)
-------- -------- -------- -------- -------- -------
Net Asset Value, End of
Period.................. $ 19.64 $ 18.52 $ 20.02 $ 15.34 $ 12.99 $ 11.28
======== ======== ======== ======== ======== =======
Total Return............ 11.00%(b) 0.35% 38.13% 21.31% 20.88% 3.58%
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $368,130 $348,613 $308,984 $206,659 $145,603 $89,355
Ratio of expenses to
average net assets..... 0.85%(c) 0.85% 0.84% 0.86% 0.82% 0.66%
Ratio of net investment
income to average net
assets................. 1.35%(c) 1.43% 1.77% 2.07% 2.40% 2.51%
Ratio of expenses to
average net assets*.... 1.09%(c) 1.09% 1.08% 1.10% 1.10% 1.15%
Ratio of net investment
income to average net
assets*................ 1.11%(c) 1.19% 1.53% 1.83% 2.11% 2.02%
Portfolio Turnover(a).. 7.48% 13.17% 22.66% 19.82% 8.73% 21.30%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-98-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
BALANCED FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended September 30,
-----------------------------------------
For the six
months
ended
March 31, 1999 1998 1997 1996 1995 1994
-------------- ------- ------- ------- ------ ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 13.82 $ 13.63 $ 11.96 $ 11.04 $ 9.76 $10.20
------- ------- ------- ------- ------ ------
Investment Activities
Net investment income.. 0.17 0.39 0.45 0.43 0.44 0.38
Net realized and
unrealized gains (loss-
es) on investments..... 0.79 0.54 2.04 0.92 1.27 (0.44)
------- ------- ------- ------- ------ ------
Total from Investment
Activities............ 0.96 0.93 2.49 1.35 1.71 (0.06)
------- ------- ------- ------- ------ ------
Distributions
Net investment income.. (0.17) (0.39) (0.45) (0.43) (0.43) (0.38)
Net realized gains..... (0.73) (0.35) (0.37) -- -- --
------- ------- ------- ------- ------ ------
Total Distributions... (0.90) (0.74) (0.82) (0.43) (0.43) (0.38)
------- ------- ------- ------- ------ ------
Net Asset Value, End of
Period.................. $ 13.88 $ 13.82 $ 13.63 $ 11.96 $11.04 $ 9.76
======= ======= ======= ======= ====== ======
Total Return (excludes
sales charge)........... 6.74%(b) 6.89% 21.76% 12.43% 18.00% (0.64%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $20,957 $21,948 $17,234 $12,456 $9,257 $8,560
Ratio of expenses to
average net assets..... 1.16%(c) 1.17% 1.18% 1.20% 1.17% 0.98%
Ratio of net investment
income to average net
assets................. 2.32%(c) 2.75% 3.63% 3.78% 4.27% 4.02%
Ratio of expenses to
average net assets*.... 1.65%(c) 1.66% 1.67% 1.69% 1.71% 1.75%
Ratio of net investment
income to average net
assets*................ 1.83%(c) 2.26% 3.14% 3.29% 3.73% 3.25%
Portfolio Turnover(a).. 15.43% 31.85% 27.07% 19.87% 23.68% 12.91%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-99-
[LOGO OF BB&T APPEARS HEE]
<PAGE>
- --------------------------------------------------------------------------------
BALANCED FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the January 1,
months ended year ended year ended 1996 to
March 31, September 30, September 30, September 30,
1999 1998 1997 1996 (a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 13.76 $ 13.57 $11.91 $11.54
------- ------- ------ ------
Investment Activities
Net investment income.. 0.11 0.28 0.36 0.27
Net realized and
unrealized gains (loss-
es) on investments..... 0.77 0.55 2.04 0.37
------- ------- ------ ------
Total from Investment
Activities............ 0.88 0.83 2.40 0.64
------- ------- ------ ------
Distributions
Net investment income.. (0.11) (0.29) (0.37) (0.27)
Net realized gains..... (0.73) (0.35) (0.37) --
------- ------- ------ ------
Total Distributions... (0.84) (0.64) (0.74) (0.27)
------- ------- ------ ------
Net Asset Value, End of
Period.................. $ 13.80 $ 13.76 $13.57 $11.91
======= ======= ====== ======
Total Return (excludes
redemption charge)...... 6.23%(b) 6.16% 20.90% 5.67%(b)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $19,338 $15,183 $6,360 $2,339
Ratio of expenses to
average net assets..... 1.91%(c) 1.92% 1.93% 1.95%(c)
Ratio of net investment
income to average net
assets................. 1.58%(c) 1.98% 2.88% 3.13%(c)
Ratio of expenses to
average net assets*.... 2.15%(c) 2.16% 2.17% 2.18%(c)
Ratio of net investment
income to average net
assets*................ 1.34%(c) 1.74% 2.64% 2.90%(c)
Portfolio Turnover(d).. 15.43% 31.85% 27.07% 19.87%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-100-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
BALANCED FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, --------------------------------------------
1999 1998 1997 1996 1995 1994
------------ -------- ------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 13.79 $ 13.60 $ 11.93 $ 11.01 $ 9.74 $ 10.18
-------- -------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.18 0.42 0.49 0.46 0.46 0.40
Net realized and
unrealized gains (loss-
es) on investments..... 0.78 0.54 2.04 0.92 1.27 (0.44)
-------- -------- ------- ------- ------- -------
Total from Investment
Activities............ 0.96 0.96 2.53 1.38 1.73 (0.04)
-------- -------- ------- ------- ------- -------
Distributions
Net investment income.. (0.18) (0.42) (0.49) (0.46) (0.46) (0.40)
Net realized gains..... (0.73) (0.35) (0.37) -- -- --
-------- -------- ------- ------- ------- -------
Total Distributions... (0.91) (0.77) (0.86) (0.46) (0.46) (0.40)
-------- -------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 13.84 $ 13.79 $ 13.60 $ 11.93 $ 11.01 $ 9.74
======== ======== ======= ======= ======= =======
Total Return............ 6.81%(b) 7.18% 22.11% 12.74% 18.23% (0.42%)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $119,745 $108,943 $88,524 $69,374 $49,794 $39,715
Ratio of expenses to
average net assets..... 0.91%(c) 0.92% 0.93% 0.95% 0.92% 0.73%
Ratio of net investment
income to average net
assets................. 2.57%(c) 3.00% 3.88% 4.03% 4.51% 4.22%
Ratio of expenses to
average net assets*.... 1.15%(c) 1.16% 1.17% 1.19% 1.21% 1.25%
Ratio of net investment
income to average net
assets*................ 2.33%(c) 2.76% 3.64% 3.79% 4.22% 3.70%
Portfolio Turnover(a).. 15.43% 31.85% 27.07% 19.87% 23.68% 12.91%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
(b) Not annualized.
(c) Annualized.
-101-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 3,
months ended 1997 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............ $ 9.62 $10.00
------ ------
Investment Activities
Net investment income (loss)................... (0.01) --
Net realized and unrealized gains (losses) on
investments.................................... 2.78 (0.25)
------ ------
Total from Investment Activities.............. 2.77 (0.25)
------ ------
Distributions
Net investment income.......................... -- (0.03)
Net realized gains............................. (0.56) (0.10)
------ ------
Total Distributions........................... (0.56) (0.13)
------ ------
Net Asset Value, End of Period.................. $11.83 $ 9.62
====== ======
Total Return (excludes sales charge)............ 29.51% (b) (2.54%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................ $4,005 $1,938
Ratio of expenses to average net assets........ 1.25% (c) 1.39% (c)
Ratio of net investment income (loss) to aver-
age net assets................................. (0.23%)(c) (0.04%)(c)
Ratio of expenses to average net assets*....... 1.74% (c) 1.87% (c)
Ratio of net investment income (loss) to aver-
age net assets*................................ (0.72%)(c) (0.52%)(c)
Portfolio Turnover(d).......................... 40.99% 108.36%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-102-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 3,
months 1997 to
ended September 30,
March 31, 1999 1998 (a)
-------------- -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period........... $ 9.58 $10.00
------ ------
Investment Activities
Net investment income (loss).................. (0.03) (0.02)
Net realized and unrealized gains (losses) on
investments................................... 2.75 (0.29)
------ ------
Total from Investment Activities............. 2.72 (0.31)
------ ------
Distributions
Net investment income......................... -- (0.01)
Net realized gains............................ (0.56) (0.10)
------ ------
Total Distributions.......................... (0.56) (0.11)
------ ------
Net Asset Value, End of Period................. $11.74 $ 9.58
====== ======
Total Return (excludes redemption charge)...... 29.09% (b) (3.13%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)............... $8,180 $3,985
Ratio of expenses to average net assets....... 1.99% (c) 2.14% (c)
Ratio of net investment income (loss) to aver-
age net assets................................ (0.98%)(c) (0.78%)(c)
Ratio of expenses to average net assets*...... 2.23% (c) 2.37% (c)
Ratio of net investment income (loss) to aver-
age net assets*............................... (1.21%)(c) (1.01%)(c)
Portfolio Turnover(d)......................... 40.99% 108.36%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-103-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 3,
months ended 1997 to
March 31, September 30,
1999 1998(a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............ $ 9.63 $ 10.00
------- -------
Investment Activities
Net investment income.......................... -- 0.04
Net realized and unrealized gains (losses) on
investments.................................... 2.80 (0.27)
------- -------
Total from Investment Activities.............. 2.80 (0.23)
------- -------
Distributions
Net investment income.......................... -- (0.04)
Net realized gains............................. (0.56) (0.10)
------- -------
Total Distributions........................... (0.56) (0.14)
------- -------
Net Asset Value, End of Period.................. $ 11.87 $ 9.63
======= =======
Total Return.................................... 29.84% (b) (2.33%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................ $67,195 $50,975
Ratio of expenses to average net assets........ 1.01% (c) 1.06% (c)
Ratio of net investment income to average net
assets......................................... 0.03% (c) 0.41% (c)
Ratio of expenses to average net assets*....... 1.25% (c) 1.30% (c)
Ratio of net investment income to average net
assets*........................................ (.21%)(c) 0.17% (c)
Portfolio Turnover(d).......................... 40.99% 108.36%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-104-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the year ended
September 30,
-------------------------
For the six December 7, 1994
months ended to September 30,
March 31, 1999 1998 1997 1996 1995(a)
-------------- ------ ------- ------ ----------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 17.50 $23.33 $ 21.06 $14.53 $10.00
------- ------ ------- ------ ------
Investment Activities
Net investment income
(loss)................. (0.14) (0.29) (0.15) (0.20) (0.08)
Net realized and
unrealized gains (loss-
es) on investments..... 4.81 (5.23) 2.44 6.73 4.61
------- ------ ------- ------ ------
Total from Investment
Activities............ 4.67 (5.52) 2.29 6.53 4.53
------- ------ ------- ------ ------
Distributions
In excess of net real-
ized gains............. -- (0.31) (0.02) -- --
------- ------ ------- ------ ------
Total Distributions... -- (0.31) (0.02) -- --
------- ------ ------- ------ ------
Net Asset Value, End of
Period.................. $ 22.17 $17.50 $ 23.33 $21.06 $14.53
======= ====== ======= ====== ======
Total Return (excludes
sales charge)........... 26.61% (b) (23.81%) 10.90% 44.94% 45.30% (b)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $10,709 $9,456 $12,676 $7,413 $1,096
Ratio of expenses to
average net assets..... 1.82% (c) 1.86% 1.89% 2.01% 2.50% (c)
Ratio of net investment
income (loss) to aver-
age net assets......... (1.18%)(c) (1.36%) (1.29%) (1.26%) (1.56%)(c)
Ratio of expenses to
average net assets*.... 2.07% (c) 2.11% 2.14% 2.26% 2.84% (c)
Ratio of net investment
income (loss) to aver-
age net assets*........ (1.43%)(c) (1.61%) (1.54%) (1.51%) (1.90%)(c)
Portfolio Turnover(d).. 89.37% 157.44% 80.66% 71.62% 46.97%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-105-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the January 1,
months ended year ended year ended 1996 to
March 31, September 30, September 30, September 30,
1999 1998 1997 1996(a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 17.13 $ 23.02 $ 20.92 $ 15.24
------- ------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.20) (0.39) (0.20) (0.21)
Net realized and
unrealized gains (loss-
es) on investments..... 4.69 (5.19) 2.32 5.89
------- ------- ------- -------
Total from Investment
Activities............ 4.49 (5.58) 2.12 5.68
------- ------- ------- -------
Distributions
In excess of net real-
ized gains............. -- (0.31) (0.02) --
------- ------- ------- -------
Total Distributions... -- (0.31) (0.02) --
------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 21.62 $ 17.13 $ 23.02 $ 20.92
======= ======= ======= =======
Total Return (excludes
redemption charge)...... 26.14%(b) (24.40%) 10.16% 37.27% (b)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $10,509 $ 8,609 $ 8,869 $ 3,200
Ratio of expenses to
average net assets..... 2.57% (c) 2.61% 2.64% 2.72% (c)
Ratio of net investment
income to average net
assets................. (1.94)%(c) (2.11%) (2.04%) (2.01%)(c)
Portfolio Turnover(d).. 89.37% 157.44% 80.66% 71.62%
</TABLE>
- ----
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-106-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year ended December 7,
months ended September 30, 1994 to
March 31, --------------------------- September 30,
1999 1998 1997 1996 1995(a)
------------ ------- ------- ------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period.......... $ 17.69 $ 23.52 $ 21.18 $ 14.57 $ 10.00
------- ------- ------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.09) (0.20) (0.11) (0.17) (0.07)
Net realized and
unrealized gains (loss-
es) on investments..... 4.84 (5.32) 2.47 6.78 4.64
------- ------- ------- ------- -------
Total from Investment
Activities............ 4.75 (5.52) 2.36 6.61 4.57
------- ------- ------- ------- -------
Distributions
In excess of net real-
ized gains............. -- (0.31) (0.02) -- --
------- ------- ------- ------- -------
Total Distributions... -- (0.31) (0.02) -- --
------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 22.44 $ 17.69 $ 23.52 $ 21.18 $ 14.57
======= ======= ======= ======= =======
Total Return............ 26.78% (b) (23.62%) 11.17% 45.37% 45.70% (b)
Ratios/Supplementary Da-
ta:
Net Assets, End of Pe-
riod (000)............. $90,079 $65,180 $58,660 $36,373 $16,962
Ratio of expenses to
average net assets..... 1.57% (c) 1.61% 1.64% 1.79% 2.33% (c)
Ratio of net investment
income (loss) to aver-
age net assets......... (0.94%)(c) (1.11%) (1.04%) (1.00%) (1.34%)(c)
Ratio of expenses to
average net assets*.... 1.57% (c) 1.61% 1.64% 1.79% 2.24% (c)
Ratio of net investment
income (loss) to aver-
age net assets*........ (.94%)(c) (1.11%) (1.04%) (1.00%) (1.43%)(c)
Portfolio Turnover(d).. 89.37% 157.44% 80.66% 71.62% 46.97%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-107-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the January 2,
months ended year ended 1997 to
March 31, September 30, September 30,
1999 1998 1997 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Pe-
riod.............................. $ 9.91 $11.24 $10.00
------ ------ ------
Investment Activities
Net investment income............ (0.04) 0.03 0.03
Net realized and unrealized gains
(losses) on investments and for-
eign currency transactions....... 1.74 (1.09) 1.25
------ ------ ------
Total from Investment Activi-
ties............................ 1.70 (1.06) 1.28
------ ------ ------
Distributions
Net investment income............ (0.03) (0.03) (0.02)
Net realized gains............... (0.18) (0.23) --
In excess of net investment in-
come............................. -- (0.01) (0.02)
------ ------ ------
Total Distributions............. (0.21) (0.27) (0.04)
------ ------ ------
Net Asset Value, End of Period.... $11.40 $ 9.91 $11.24
====== ====== ======
Total Return (excludes sales
charge)........................... 17.23% (b) (9.60%) 12.84% (b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).. $1,619 $1,314 $ 833
Ratio of expenses to average net
assets........................... 1.80% (c) 1.75% 1.97% (c)
Ratio of net investment income
(loss) to average net assets..... (0.53%)(c) 0.26% 0.14% (c)
Ratio of expenses to average net
assets*.......................... 2.05% (c) 2.01% 2.24% (c)
Ratio of net investment income
(loss) to average net assets*.... (.78%)(c) 0.00% (0.13%)(c)
Portfolio Turnover(d)............ 34.88% 53.27% 41.45%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-108-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six For the January 2,
months year ended 1997 to
ended September 30, September 30,
March 31, 1999 1998 1997 (a)
-------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period........................... $ 9.85 $ 11.23 $10.00
------ ------- ------
Investment Activities
Net investment income (loss).... (0.08) (0.04) (0.01)
Net realized and unrealized
gains (losses) on investments
and foreign currency
transactions.................... 1.74 (1.10) 1.26
------ ------- ------
Total from Investment
Activities..................... 1.66 (1.14) 1.25
------ ------- ------
Distributions
Net investment income........... (0.01) -- --
Net realized gains.............. (0.18) (0.23) --
In excess of net investment
income.......................... -- (0.01) (0.02)
------ ------- ------
Total Distributions............ (0.19) (0.24) (0.02)
------ ------- ------
Net Asset Value, End of Period... $11.32 $ 9.85 $11.23
====== ======= ======
Total Return (excludes redemption
charge).......................... 16.92% (b) (10.29%) 12.51% (b)
Ratios/Supplementary Data:
Net Assets, End of Period
(000)........................... $2,198 $ 1,923 $1,179
Ratio of expenses to average net
assets.......................... 2.55% (c) 2.50% 2.69% (c)
Ratio of net investment income
(loss) to average net assets.... (1.29%)(c) (0.50%) (0.62%)(c)
Ratio of expenses to average net
assets*......................... 2.55% (c) 2.51% 2.74% (c)
Ratio of net investment income
(loss) to average net assets*... (1.29%)(c) (0.51%) (0.66%)(c)
Portfolio Turnover(d)........... 34.88% 53.27% 41.45%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-109-
[LOGO OF BB&T FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the
For the six year January 2,
months ended 1997 to
ended September 30, September 30,
March 31, 1999 1998 1997 (a)
-------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 9.95 $ 11.28 $ 10.00
------- ------- -------
Investment Activities
Net investment income............ (0.02) 0.06 0.03
Net realized and unrealized gains
(losses) on investments and
foreign currency transactions.... 1.75 (1.10) 1.30
------- ------- -------
Total from Investment
Activities...................... 1.73 (1.04) 1.33
------- ------- -------
Distributions
Net investment income............ (0.04) (0.06) (0.02)
Net realized gains............... (0.18) (0.23) --
In excess of net investment
income........................... -- -- (0.03)
------- ------- -------
Total Distributions............. (0.22) (0.29) (0.05)
------- ------- -------
Net Asset Value, End of Period.... $ 11.46 $ 9.95 $ 11.28
======= ======= =======
Total Return...................... 17.43% (b) (9.45%) 13.34%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).. $85,719 $70,356 $52,373
Ratio of expenses to average net
assets........................... 1.55% (c) 1.50% 1.79%(c)
Ratio of net investment income to
average net assets............... (0.28%)(c) 0.50% 0.32%(c)
Ratio of expenses to average net
assets*.......................... 1.55% (c) 1.51% 1.81%(c)
Ratio of net investment income to
average net assets*.............. (0.28%)(c) 0.49% 0.30%(c)
Portfolio Turnover(d)............ 34.88% 53.27% 41.45%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-110-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six January 29,
months 1998 to
ended September 30,
March 31, 1999 1998 (a)
-------------- -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $10.05 $10.09
------ ------
Investment Activities
Net investment income........................... (2.30) 0.19
Net realized and unrealized gains (losses) on
investments with affiliates..................... 2.95 (0.01)
------ ------
Total from Investment Activities............... 0.65 0.18
------ ------
Distributions
Net investment income........................... (0.16) (0.22)
Net realized gains.............................. (0.17) --
------ ------
Total Distributions............................ (0.33) (0.22)
------ ------
Net Asset Value, End of Period................... $10.37 $10.05
====== ======
Total Return (excludes sales charge)............. 6.43%(b) 1.89%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $ 473 $ 119
Ratio of expenses to average net assets......... 0.65%(c) 0.83%(c)
Ratio of net investment income to average net
assets.......................................... 3.19%(c) 2.91%(c)
Ratio of expenses to average net assets*........ 1.10%(c) 1.33%(c)
Ratio of net investment income to average net
assets*......................................... 2.75%(c) 2.41%(c)
Portfolio Turnover(d)........................... 11.71% 4.28%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-111-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
January 29,
1999 to
March 31,
1999 (a)
-----------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period............................ $10.54
------
Investment Activities
Net investment income.......................................... 0.01
Net realized and unrealized gains (losses) on investments with
affiliates..................................................... (0.10)
------
Total from Investment Activities.............................. (0.09)
------
Distributions
Net investment income.......................................... (0.07)
------
Total Distributions........................................... (0.07)
------
Net Asset Value, End of Period.................................. $10.38
======
Total Return (excludes redemption charge)....................... (0.82)%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................................ $ 5
Ratio of expenses to average net assets........................ 0.13%(c)
Ratio of net investment income to average net assets........... 1.67%(c)
Ratio of expenses to average net assets*....................... 0.42%(c)
Ratio of net investment income to average net assets*.......... 1.38%(c)
Portfolio Turnover(d).......................................... 11.71%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-112-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
October 2,
For the six 1997 to
months ended September 30,
March 31, 1999 1998 (a)
-------------- -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 10.08 $ 10.00
------- -------
Investment Activities
Net investment income........................... 0.15 0.32
Net realized and unrealized gains (losses) on
investments with affiliates..................... 0.52 0.08
------- -------
Total from Investment Activities............... 0.67 0.40
------- -------
Distributions
Net investment income........................... (0.16) (0.32)
Net realized gains.............................. (0.17) --
------- -------
Total Distributions............................ (0.33) (0.32)
------- -------
Net Asset Value, End of Period................... $ 10.42 $ 10.08
======= =======
Total Return..................................... 6.68%(b) 3.95%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $32,017 $23,773
Ratio of expenses to average net assets......... 0.42%(c) 0.47%(c)
Ratio of net investment income to average net
assets.......................................... 3.22%(c) 3.12%(c)
Ratio of expenses to average net assets*........ 0.62%(c) 0.67%(c)
Ratio of net investment income to average net
assets*......................................... 3.02%(c) 2.92%(c)
Portfolio Turnover(d)........................... 11.71% 4.28%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-113-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER MODERATE GROWTH FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six January 29,
months 1998 to
ended September 30,
March 31, 1999 1998 (a)
-------------- -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 9.85 $10.01
------ ------
Investment Activities
Net investment income........................... (0.04) 0.15
Net realized and unrealized gains (losses) on
investments with affiliates..................... 1.07 (0.15)
------ ------
Total from Investment Activities............... 1.03 --
------ ------
Distributions
Net investment income........................... (0.13) (0.16)
Net realized gains.............................. (0.25)
------ ------
Total Distributions............................ (0.38) (0.16)
------ ------
Net Asset Value, End of Period................... $10.50 $ 9.85
====== ======
Total Return (excludes sales charge)............. 10.44%(b) 0.10%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $1,647 $1,146
Ratio of expenses to average net assets......... 0.72%(c) 0.93%(c)
Ratio of net investment income to average net
assets.......................................... 1.96%(c) 1.93%(c)
Ratio of expenses to average net assets*........ 1.16%(c) 1.39%(c)
Ratio of net investment income to average net
assets*......................................... 1.51%(c) 1.47%(c)
Portfolio Turnover(d)........................... 13.09% 4.85%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-114-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER MODERATE GROWTH FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
January 29,
1999 to
March 31,
1999 (a)
-----------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period............................ $10.64
------
Investment Activities
Net investment income.......................................... 0.02
Net realized and unrealized gains (losses) on investments with
affiliates..................................................... (0.11)
------
Total from Investment Activities.............................. (0.09)
------
Distributions
Net investment income.......................................... (0.05)
------
Total Distributions........................................... (0.05)
------
Net Asset Value, End of Period.................................. $10.50
======
Total Return (excludes redemption charge)....................... (0.86%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................................ $ 85
Ratio of expenses to average net assets........................ 0.14%(c)
Ratio of net investment income to average net assets........... 1.13%(c)
Ratio of expenses to average net assets*....................... 0.53%(c)
Ratio of net investment income to average net assets*.......... 0.74%(c)
Portfolio Turnover(d).......................................... 13.09%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-115-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER MODERATE GROWTH FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 2,
months ended 1997 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $ 9.85 $ 10.00
------- -------
Investment Activities
Net investment income............................ 0.11 0.23
Net realized and unrealized gains (losses) on
investments with affiliates...................... 0.94 (0.16)
------- -------
Total from Investment Activities................ 1.05 0.07
------- -------
Distributions
Net investment income............................ (0.14) (0.22)
Net realized gains............................... (0.25)
------- -------
Total Distributions............................. (0.39) (0.22)
------- -------
Net Asset Value, End of Period.................... $ 10.51 $ 9.85
======= =======
Total Return...................................... 10.67%(b) 0.68%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $24,497 $21,682
Ratio of expenses to average net assets.......... 0.47%(c) 0.46%(c)
Ratio of net investment income to average net
assets........................................... 2.18%(c) 2.21%(c)
Ratio of expenses to average net assets*......... 0.67%(c) 0.66%(c)
Ratio of net investment income to average net
assets*.......................................... 1.98%(c) 2.01%(c)
Portfolio Turnover(d)............................ 13.09% 4.85%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-116-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER GROWTH FUND
Class A Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six January 29,
months ended 1998 to
March 31, September 30,
1999 1998 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 9.67 $ 9.93
------ ------
Investment Activities
Net investment income........................... (1.91) 0.10
Net realized and unrealized gains (losses) on
investments with affiliates..................... 3.22 (0.26)
------ ------
Total from Investment Activities............... 1.31 (0.16)
------ ------
Distributions
Net investment income........................... (0.10) (0.10)
Net realized gains.............................. (0.32)
------ ------
Total Distributions............................ (0.42) (0.10)
------ ------
Net Asset Value, End of Period................... $10.56 $ 9.67
====== ======
Total Return (excludes sales charge)............. 13.62%(b) (1.45%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $ 864 $ 276
Ratio of expenses to average net assets......... 0.71%(c) 0.90% (c)
Ratio of net investment income to average net
assets.......................................... 1.26%(c) 1.16% (c)
Ratio of expenses to average net assets*........ 1.15%(c) 1.38% (c)
Ratio of net investment income to average net
assets*......................................... 0.81%(c) 0.68% (c)
Portfolio Turnover(d)........................... 12.61% 7.69%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-117-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER GROWTH FUND
Class B Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
January 29,
1999 to
March 31, 1999 (a)
------------------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period........................ $10.69
------
Investment Activities
Net investment income...................................... 0.01
Net realized and unrealized gains (losses) on investments
with affiliates............................................ (0.11)
------
Total from Investment Activities.......................... (0.10)
------
Distributions
Net investment income...................................... (0.03)
------
Total Distributions....................................... (0.03)
------
Net Asset Value, End of Period.............................. $10.56
======
Total Return (excludes redemption charge)................... (0.90%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)............................ $ 5
Ratio of expenses to average net assets.................... 0.13% (c)
Ratio of net investment income to average net assets....... 0.70% (c)
Ratio of expenses to average net assets*................... 0.53% (c)
Ratio of net investment income to average net assets*...... 0.29% (c)
Portfolio Turnover(d)...................................... 12.61%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-118-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL MANAGER GROWTH FUND
Trust Shares
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the six October 2,
months 1997 to
ended September 30,
March 31, 1999 1998 (a)
-------------- -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 9.68 $ 10.00
------- -------
Investment Activities
Net investment income........................... 0.07 0.16
Net realized and unrealized gains (losses) on
investments with affiliates..................... 1.23 (0.32)
------- -------
Total from Investment Activities............... 1.30 (0.16)
------- -------
Distributions
Net investment income........................... (0.11) (0.16)
Net realized gains.............................. (0.32) --
------- -------
Total Distributions............................ (0.43) (0.16)
------- -------
Net Asset Value, End of Period................... $ 10.55 $ 9.68
======= =======
Total Return..................................... 13.52%(b) (1.72)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $23,359 $21,370
Ratio of expenses to average net assets......... 0.49%(c) 0.47%(c)
Ratio of net investment income to average net
assets.......................................... 1.39%(c) 1.53%(c)
Ratio of expenses to average net assets*........ 0.69%(c) 0.67%(c)
Ratio of net investment income to average net
assets*......................................... 1.19%(c) 1.33%(c)
Portfolio Turnover(d)........................... 12.61% 7.69%
</TABLE>
- ----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
-119-
[LOGO OF BB&T APPEARS HERE]
<PAGE>
[LOGO OF BB&T FUNDS APPEARS HERE]
Sensible Investing for Generations
Semi-Annual Report
To Shareholders
INVESTMENT ADVISOR
Branch Banking and Trust Company
434 Fayetteville Street Mall
Raleigh, NC 27601
DISTRIBUTOR
BISYS Fund Services LP
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Ropes & Gray
1301 K Street, N.W.
Suite 800 E.
Washington, D.C. 20005
TRAVEL AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
AUDITORS
KPMG LLP
Two Nationwide Plaza, Suite 1600
Columbus, OH 43215
March 31, 1999
5/99
[ARTWORK APPEARS HERE]
